Document:

Form
        of
        Placement Agent Warrant

      

      THIS
        WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN ACQUIRED
        FOR
        INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
        AS
        AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAW. THIS WARRANT AND SUCH
        SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE PLEDGED, TRANSFERRED OR
        HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR DELIVERY OF AN OPINION
        OF
        COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY THAT
        SUCH
        OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE WITH THE
        ACT
        OR UNLESS SOLD IN FULL COMPLIANCE WITH RULE 144 UNDER THE ACT.

      

      

      ZIOPHARM
        Oncology, Inc.

      

      

      

      Warrant
        for the Purchase of Shares of

      Common
        Stock

      

      
        	
                No. 2006P-[__]

              	
                [______]
                  Shares

              

      

      

      

      FOR
        VALUE
        RECEIVED, ZIOPHARM Oncology, Inc., a Delaware corporation (the “Company”),
        hereby certifies that [_______________], its designee or its permitted assigns
        is entitled to purchase from the Company, at any time or from time to time
        commencing on May 2, 2006 and prior to 5:00 P.M., New York City time, on
        May 2,
        2013 (the “Exercise
        Period”),
        fully
        paid and non-assessable shares of common stock, $0.001 par value per share,
        of
        the Company for a purchase price per share of $5.09. Hereinafter, (i) said
        common stock, $0.001 par value per share, of the Company, is referred to
        as the
“Common
        Stock”;
        (ii)
        the shares of the Common Stock (subject to adjustment as set forth herein)
        purchasable hereunder or under any other Warrant (as hereinafter defined)
        are
        referred to as the “Warrant
        Shares”;
        (iii)
        the aggregate purchase price payable for the Warrant Shares purchasable
        hereunder is referred to as the “Aggregate
        Warrant Price”;
        (iv)
        the price payable (initially $5.09 per share subject to adjustment as set
        forth
        herein) for each of the Warrant Shares hereunder is referred to as the
“Per
        Share Warrant Price”;
        (v)
        this Warrant, any similar Warrants issued on the date hereof and any warrants
        hereafter issued in exchange or substitution for this Warrant or such similar
        Warrants are referred to as the “Warrants”;
        (vi)
        the holder of this Warrant is referred to as the “Holder”
and
        the
        holder of this Warrant and all other Warrants and Warrant Shares are referred
        to
        as the “Holders”
and
        Holders of more than fifty percent (50%) of the Warrant Shares then issuable
        upon exercise of then outstanding Warrants are referred to as the “Majority
        of the Holders”;
        and
        (vii) the then “Current
        Market Price”
per
        share of the Common Stock shall be deemed to be the last reported sale price
        of
        the Common Stock on the Trading Day (as defined below) immediately prior
        to such
        date or, in case no such reported sales take place on such day, the average
        of
        the last reported bid and asked prices of the Common Stock on such day, in
        either case on the principal national securities exchange on which the Common
        Stock is admitted to trading or listed, or if not listed or admitted to trading
        on any such exchange, the representative closing sale price of the Common
        Stock
        as reported by the National Association of Securities Dealers, Inc. Automated
        Quotations System (“NASDAQ”),
        or
        other similar organization if NASDAQ is no longer reporting such information,
        or, if the Common Stock is not reported on NASDAQ, the per share sale price
        for
        the Common Stock in the over-the-counter market as reported by the National
        Quotation Bureau or similar organization, or if not so available, the fair
        market value of the Common Stock as determined in good faith by the Company’s
        Board of Directors. A “Trading
        Day”
shall
        mean any day on which shares of the Company’s Common Stock are sold, or eligible
        for sale, on the respective exchange, quotation system or over-the-counter
        market. The Aggregate Warrant Price is not subject to adjustment.

       

      
        
           

          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      This
        Warrant, together with any warrants of like tenor, constituting in the aggregate
        Warrants to purchase [________] Warrant Shares, was originally issued pursuant
        to a Placement
        Agency
        Agreement dated as of March 13, 2006 (the “Agency
        Agreement”)
        between the Company and the Holder.
        

      

      1. Exercise
        of Warrant.
        

      

      (a) This
        Warrant may be exercised in whole at any time, or in part from time to time,
        by
        the Holder during the Exercise Period:

      

      (i) by
        the
        surrender of this Warrant (with the subscription form at the end hereof duly
        executed) at the address set forth in subsection 9(a) hereof, together with
        proper payment of the Aggregate Warrant Price, or the proportionate part
        thereof
        if this Warrant is exercised in part, with payment for the Warrant Shares
        made
        by certified or official bank check payable to the order of, or wire transfer
        of
        immediately available funds to, the Company; or

      

      (ii) by
        the
        surrender of this Warrant (with the cashless exercise form at the end hereof
        duly executed) (a “Cashless
        Exercise”)
        at the
        address set forth in subsection 9(a) hereof. Such presentation and surrender
        shall be deemed a waiver of the Holder's obligation to pay the Aggregate
        Warrant
        Price, or the proportionate part thereof if this Warrant is exercised in
        part.
        In the event of a Cashless Exercise, the Holder shall exchange its Warrant
        for
        that number of Warrant Shares subject to such Cashless Exercise multiplied
        by a
        fraction, the numerator of which shall be the difference between the then
        Current Market Price and the Per Share Warrant Price, and the denominator
        of
        which shall be the then Current Market Price. For purposes of any computation
        under this subsection 1(a), the then Current Market Price shall be based
        on the
        Trading Day immediately preceding such Cashless Exercise.

      

      (b) If
        this
        Warrant is exercised in part, this Warrant must be exercised for a number
        of
        whole shares of the Common Stock and the Holder is entitled to receive a
        new
        Warrant covering the Warrant Shares that have not been exercised and setting
        forth the proportionate part of the Aggregate Warrant Price applicable to
        such
        Warrant Shares. Upon surrender of this Warrant in connection with the exercise
        of this Warrant pursuant to the terms hereof, the Company will (i) issue
        a
        certificate or certificates in the name of the Holder for the largest number
        of
        whole shares of the Common Stock to which the Holder shall be entitled upon
        such
        exercise and, if this Warrant is exercised in whole, in lieu of any fractional
        share of the Common Stock to which the Holder shall be entitled, pay to the
        Holder cash in an amount equal to the fair value of such fractional share
        (determined in such reasonable manner as the Board of Directors of the Company
        shall determine), and (ii) deliver the other securities and properties
        receivable upon the exercise of this Warrant, or the proportionate part thereof,
        if this Warrant is exercised in part, pursuant to the provisions of this
        Warrant. 

      

      2. Reservation
        of Warrant Shares; Listing.
        

      

      The
        Company agrees that, prior to the expiration of this Warrant, the Company
        shall
        at all times (a) have authorized and in reserve, and shall keep available,
        solely for issuance and delivery upon the exercise of this Warrant, the shares
        of the Common Stock and other securities and properties as from time to time
        shall be receivable upon the exercise of this Warrant, free and clear of
        all
        restrictions on sale or transfer, other than under Federal or state securities
        laws, and free and clear of all preemptive rights and rights of first refusal
        and (b) if the Company hereafter lists its Common Stock on any national
        securities exchange, the NASDAQ National Market or the NASDAQ Capital Market,
        use its commercially reasonable efforts to keep the Warrant Shares authorized
        for listing on such exchange upon notice of issuance.

       

      
        
           

          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      3. Certain
        Adjustments.
        

      

      (a) In
        case
        the Company shall hereafter (i) pay a dividend or make a distribution on
        its
        Common Stock in shares of Common Stock, (ii) subdivide its outstanding shares
        of
        Common Stock into a greater number of shares, (iii) combine or reverse-split
        its
        outstanding shares of Common Stock into a smaller number of shares or (iv)
        issue
        by reclassification of its Common Stock any shares of capital stock of the
        Company, then the Per Share Warrant Price and the number of Warrant Shares
        shall
        forthwith be proportionately decreased and increased, respectively, in the
        case
        of a subdivision, distribution or stock dividend, or proportionately increased
        and decreased, respectively, in the case of a combination or reverse stock
        split. The Aggregate Warrant Price payable for the then total number Warrant
        Shares available for exercise under this Warrant shall remain the same.
        Adjustments made pursuant to this subsection 3(a) shall become effective
        on the
        record date in the case of a dividend or distribution, and shall become
        effective immediately after the effective date in the case of a subdivision,
        combination or reclassification. If such dividend, distribution, subdivision
        or
        combination is not consummated in full, the Per Share Warrant Price and Warrant
        Shares shall be readjusted accordingly.

      

      (b) In
        case
        of any capital reorganization or reclassification, or any consolidation or
        merger to which the Company is a party other than a merger or consolidation
        in
        which the Company is the continuing corporation, or in case of any sale or
        conveyance to another entity of all or substantially all of the assets of
        the
        Company, or in the case of any statutory exchange of securities with another
        corporation (including any exchange effected in connection with a merger
        of a
        third corporation into the Company but excluding any exchange of securities
        or
        merger with another corporation in which the Company is a continuing corporation
        and that does not result in any reclassification of or similar change in
        the
        Common Stock), the Holder of this Warrant shall have the right thereafter
        to
        receive on the exercise of this Warrant the kind and amount of securities,
        cash
        or other property which the Holder would have owned or have been entitled
        to
        receive immediately after such reorganization, reclassification, consolidation,
        merger, statutory exchange, sale or conveyance had this Warrant been exercised
        immediately prior to the effective date of such reorganization,
        reclassification, consolidation, merger, statutory exchange, sale or conveyance
        and in any such case, if necessary, appropriate adjustment shall be made
        in the
        application of the provisions set forth in this Section 3 with respect to
        the
        rights and interests thereafter of the Holder of this Warrant to the end
        that
        the provisions set forth in this Section 3 shall thereafter correspondingly
        be
        made applicable, as nearly as may reasonably be, in relation to any shares
        of
        stock or other securities or property thereafter deliverable on the exercise
        of
        this Warrant. The above provisions of this subsection 3(b) shall similarly
        apply
        to successive reorganizations, reclassifications, consolidations, mergers,
        statutory exchanges, sales or conveyances. The Company shall require the
        issuer
        of any shares of stock or other securities or property thereafter deliverable
        on
        the exercise of this Warrant to be responsible for all of the agreements
        and
        obligations of the Company hereunder. A sale of all or substantially all
        of the
        assets of the Company for a consideration consisting primarily of securities
        shall be deemed a consolidation or merger for the foregoing
        purposes.

      
        
           

          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      (c) No
        adjustment in the Per Share Warrant Price shall be required unless such
        adjustment would require an increase or decrease of at least $0.01 per share
        of
        Common Stock; provided,
        however,
        that
        any adjustments which by reason of this subsection 3(c) are not required
        to be
        made shall be carried forward and taken into account in any subsequent
        adjustment; provided,
        further,
        however, that adjustments shall be required and made in accordance with the
        provisions of this Section 3 (other than this subsection 3(c)) not later
        than
        such time as may be required in order to preserve the tax-free nature of
        a
        distribution, if any, to the Holder of this Warrant or Common Stock issuable
        upon the exercise hereof. All calculations under this Section 3 shall be
        made to
        the nearest cent or to the nearest 1/100th of a share, as the case may be.
        Anything in this Section 3 to the contrary notwithstanding, the Company shall
        be
        entitled to make such reductions in the Per Share Warrant Price, in addition
        to
        those required by this Section 3, as it in its discretion shall deem to be
        advisable in order that any stock dividend, subdivision of shares or
        distribution of rights to purchase stock or securities convertible or
        exchangeable for stock hereafter made by the Company to its stockholders
        shall
        not be taxable.

      

      (d) Whenever
        the Per Share Warrant Price is adjusted as provided in this Section 3 and
        upon
        any modification of the rights of a Holder of Warrants in accordance with
        this
        Section 3, the Company shall promptly prepare a brief statement of the facts
        requiring such adjustment or modification and the manner of computing the
        same
        and cause copies of such certificate to be mailed to the Holders of the
        Warrants. The Company may, but shall not be obligated to unless requested
        by a
        Majority of the Holders, obtain, at its expense, a certificate of a firm
        of
        independent public accountants of recognized standing selected by the Board
        of
        Directors (who may be the regular auditors of the Company) setting forth
        the Per
        Share Warrant Price and the number of Warrant Shares in effect after such
        adjustment or the effect of such modification, a brief statement of the facts
        requiring such adjustment or modification and the manner of computing the
        same
        and cause copies of such certificate to be mailed to the Holders of the
        Warrants.

      

      (e) If
        the
        Board of Directors of the Company shall declare any dividend or other
        distribution with respect to the Common Stock other than a cash distribution
        out
        of earned surplus, the Company shall mail notice thereof to the Holders of
        the
        Warrants not less than ten (10) days prior to the record date fixed for
        determining stockholders entitled to participate in such dividend or other
        distribution.

      

      (f) If,
        as a
        result of an adjustment made pursuant to this Section 3, the Holder of any
        Warrant thereafter surrendered for exercise shall become entitled to receive
        shares of two or more classes of capital stock or shares of Common Stock
        and
        other capital stock of the Company, the Board of Directors (whose determination
        shall be conclusive and shall be described
        in a written notice to the Holder of any Warrant promptly after such adjustment)
        shall determine,
        in good
        faith,
        the
        allocation of the adjusted Per Share Warrant Price between or among shares
        or
        such classes of capital stock or shares of Common Stock and other capital
        stock.

      
        
           

          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      (g) Upon
        the
        expiration of any rights, options, warrants or conversion privileges with
        respect to the issuance of which an adjustment to the Per Share Warrant Price
        had been made, if such option, right warrant or conversion shall not have
        been
        exercised, the number of Warrant Shares purchasable upon exercise of this
        Warrant, to the extent this Warrant has not then been exercised, shall, upon
        such expiration, be readjusted and shall thereafter be such as they would
        have
        been had they been originally adjusted (or had the original adjustment not
        been
        required, as the case may be) on the basis of (A) the fact that Common Stock,
        if
        any, actually issued or sold upon the exercise of such rights, options, warrants
        or conversion privileges, and (B) the fact that such shares of Common Stock,
        if
        any, were issued or sold for the consideration actually received by the Company
        upon such exercise plus the consideration, if any, actually received by the
        Company for the issuance, sale or grant of all such rights, options, warrants
        or
        conversion privileges whether or not exercised; provided,
        however,
        that no
        such readjustment shall have the effect of decreasing the number of Warrant
        Shares purchasable upon exercise of this Warrant by an amount in excess of
        the
        amount of the adjustment initially made in respect of the issuance, sale
        or
        grant of such rights, options, warrants or conversion privileges.

      

      (h) In
        case
        any event shall occur as to which the other provisions of this Section 3
        are not
        strictly applicable but as to which the failure to make any adjustment would
        not
        fairly protect the purchase rights represented by this Warrant in accordance
        with the essential intent and principles of the adjustments set forth in
        this
        Section 3 then, in each such case, the Board of Directors of the Company
        shall
        in good faith determine the adjustment, if any, on a basis consistent with
        the
        essential intent and principles established herein, necessary to preserve
        the
        purchase rights represented by the Warrants. Upon such determination, the
        Company will promptly mail a copy thereof to the Holder of this Warrant and
        shall make the adjustments described therein.

      

      4. Fully
        Paid Stock; Taxes.
        The
        shares of the Common Stock represented by each and every certificate for
        Warrant
        Shares delivered on the exercise of this Warrant shall, subject to compliance
        by
        the Holder with the terms hereof, at the time of such delivery, be duly
        authorized, validly issued and outstanding, fully paid and nonassessable,
        and
        not subject to preemptive rights or rights of first refusal imposed by any
        agreement to which the Company is a party, and the Company will take all
        such
        actions as may be necessary to assure that the par value, if any, per share
        of
        the Common Stock is at all times equal to or less than the then Per Share
        Warrant Price. The Company shall pay, when due and payable, any and all Federal
        and state stamp, original issue or similar taxes which may be payable in
        respect
        of the issue of any Warrant Share or any certificate thereof to the extent
        required because of the issuance by the Company of such security.

      

      5. Registration
        Under Securities Act of 1933.

      

      The
        Holder shall have the right to participate in the registration rights granted
        to
        purchasers of Common Stock pursuant to Section 5 of the Subscription Agreement
        (the “Subscription
        Agreement”)
        entered into between each such purchaser and the Company in connection with
        the
        issuance and sale of the Common Stock on or about the date hereof, to the
        same
        extent as if the Holder were a party thereto. The Company shall have the
        same
        obligations to the Holder as it has under Section 5 of the Subscription
        Agreement to the “Subscribers” and the “Holders” thereunder, and the Holder
        shall be entitled to enforce such obligations against the Company as if the
        Holder were a party thereto. By acceptance of this Warrant, the Holder agrees
        to
        comply with the provisions in Section 5 of the Subscription Agreement to
        the
        same extent as if it were a party thereto.

       

      
        
           

          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      6. Investment
        Intent; Limited Transferability. 

      

      (a) By
        accepting this Warrant, the Holder represents to the Company that it understands
        that this Warrant and any securities obtainable upon exercise of this Warrant
        have not been registered for sale under Federal or state securities laws
        and are
        being offered and sold to the Holder pursuant to one or more exemptions from
        the
        registration requirements of such securities laws. In the absence of an
        effective registration of such securities or an exemption therefrom, any
        certificates for such securities shall bear the legend set forth on the first
        page hereof; provided however, that following the effective date of the
        Registration Statement (as such term is defined in the Subscription Agreement),
        such legend may, at the request of the Holder, be removed from the certificates
        evidencing such Warrant Shares prior to the resale thereof and the Company
        will
        rescind any stop transfer orders with respect to such shares given to the
        Company’s transfer agent, provided that the Holder represents and covenants to
        the Company in writing (in a form reasonably acceptable to the Company and
        its
        counsel) that (1) such Holder will sell such Warrant Shares only pursuant
        to and
        in the manner contemplated by the Registration Statement, including the Plan
        of
        Distribution section contained therein, and otherwise in compliance with
        the
        Act, including the prospectus delivery requirements of such Act, (2) the
        Holder
        will indemnify the Company for any damages or losses resulting to the Company
        for the Holder’s breach of its representation and covenant described in the
        foregoing clause (1), and (3) such other agreements or covenants as the Company
        or its counsel may reasonably request. Subject to the foregoing, at such
        time
        and to the extent a legend is no longer required for the Warrant Shares,
        the
        Company will use its best efforts to no later than three (3) trading days
        following the delivery to the Company or the Company’s transfer agent by the
        holder of such Warrant Shares of a legended certificate representing such
        Warrant Shares (together with such accompanying documentation or representations
        as reasonably required by counsel to the Company), deliver or cause to be
        delivered a certificate representing such Warrant Shares that is free from
        the
        foregoing legend. The Holder understands that it must bear the economic risk
        of
        its investment in this Warrant and any securities obtainable upon exercise
        of
        this Warrant for an indefinite period of time, as this Warrant and such
        securities have not been registered under Federal or state securities laws
        and
        therefore cannot be sold unless subsequently registered under such laws,
        unless
        an exemption from such registration is available. The Holder further represents
        to the Company, by accepting this Warrant, that it has full power and authority
        to accept this Warrant and make the representations set forth
        herein.

       

      (b) The
        Holder, by its acceptance of this Warrant, represents to the Company that
        it is
        acquiring this Warrant and will acquire any securities obtainable upon exercise
        of this Warrant for its own account for investment and not with a view to,
        or
        for sale in connection with, any distribution thereof in violation of the
        Act.
        The Holder agrees, by acceptance of this Warrant, that this Warrant and any
        such
        securities issuable
        under this Warrant will
        not
        be sold or otherwise transferred unless
        (i) a registration statement with respect to such transfer is effective under
        the Act and any applicable state securities laws or (ii) such sale or transfer
        is made pursuant to one or more exemptions from the Act. 

      
        
           

          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      (c) In
        addition to the limitations set forth in Section 1 and in accordance with
        the
        legend on the first page hereof, this Warrant may not be sold, transferred,
        assigned or hypothecated by the Holder except in compliance with the provisions
        of the Act and the applicable state securities “blue sky” laws, and is so
        transferable only upon the books of the Company which it shall cause to be
        maintained for such purpose. The Company may treat the registered Holder
        of this
        Warrant as it appears on the Company's books at any time as the Holder for
        all
        purposes. The Company shall permit any Holder of a Warrant or its duly
        authorized attorney, upon written request during ordinary business hours,
        to
        inspect and copy or make extracts from its books showing the registered Holders
        of Warrant. All Warrants issued upon the transfer or assignment of this Warrant
        will be dated the same date as this Warrant, and all rights of the holder
        thereof shall be identical to those of the Holder unless, in each case,
        otherwise prohibited by applicable law.

      

      (d) The
        Holder has been afforded (i) the opportunity to ask such questions as it
        has
        deemed necessary of, and to receive answers from, representatives of the
        Company
        concerning the terms and conditions of the Warrants or the exercise of the
        Warrants; and (ii) the opportunity to request such additional information
        which
        the Company possesses or can acquire without unreasonable effort or
        expense.

      

      (e) The
        Holder did not (i) receive or review any advertisement, article, notice or
        other
        communication published in a newspaper or magazine or similar media or broadcast
        over television or radio, whether closed circuit, or generally available;
        or
        (ii) attend any seminar, meeting or investor or other conference whose attendees
        were, to such Holder’s knowledge, invited by any general solicitation or general
        advertising.

      

      (f) The
        Holder is an “accredited investor” within the meaning of Regulation D under the
        Act. Such Holder is acquiring the Warrants for its own account and not with
        a
        present view to, or for sale in connection with, any distribution thereof
        in
        violation of the registration requirements of the Act, without prejudice,
        however, to such Holder’s right, subject to the provisions of the Placement
        Agency
        Agreement and this
        Warrant, at all times to sell or otherwise dispose of all or any part of
        such
        Warrants and Warrant Shares.

      

      (g) Either
        by
        reason of such Holder’s business or financial experience or the business or
        financial experience of its professional advisors (who are unaffiliated with
        and
        who are not compensated by the Company or any affiliate, finder or selling
        agent
        of the Company, directly or indirectly), such Holder has the capacity to
        protect
        such Holder’s interests in connection with the transactions contemplated by this
        Warrant and the Placement
        Agency
        Agreement.
        The
        Holder, by its acceptance of this Warrant, represents to the Company that
        it is
        able to fend for itself, can bear the economic risk of its investment and
        has
        such knowledge and experience in financial or business matters that it is
        capable of evaluating the merits and risks of the investment in this Warrant.
        Holder also represents it has not been organized for the purpose of acquiring
        this Warrant.

       

      
        
           

          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      7. Loss,
        etc., of Warrant.
        Upon
        receipt of evidence reasonably satisfactory to the Company of the loss, theft,
        destruction or mutilation of this Warrant, and of indemnity reasonably
        satisfactory to the Company, if lost, stolen or destroyed, and upon surrender
        and cancellation of this Warrant, if mutilated, the Company shall execute
        and
        deliver to the Holder a new Warrant of like date, tenor and
        denomination.

      

      8. Warrant
        Holder Not Stockholder.
        This
        Warrant does not confer upon the Holder any right to vote on or consent to
        or
        receive notice as a stockholder of the Company, as such, in respect of any
        matters whatsoever, nor any other rights or liabilities as a stockholder,
        prior
        to the exercise hereof; this Warrant does, however, require certain notices
        to
        Holders as set forth herein.

      

      9. Communication.
        No
        notice or other communication under this Warrant shall be effective or deemed
        to
        have been given unless, the same is in writing and is mailed by first-class
        mail, postage prepaid, or via recognized overnight courier with confirmed
        receipt, addressed to:

      

      (a) the
        Company at ZIOPHARM Oncology, Inc., 197 Eighth Street, Suite 300, Charlestown,
        MA 02129, Attn: President, or other such address as the Company has designated
        in writing to the Holder; or

      (b) the
        Holder, c/o Paramount BioCapital, Inc., at 787 Seventh Avenue, 48th
        Floor,
        New York, New York 10019, or other such address as the Holder has designated
        in
        writing to the Company.

      

      10. Headings.
        The
        headings of this Warrant have been inserted as a matter of convenience and
        shall
        not affect the construction hereof.

      

      11. Applicable
        Law.
        This
        Warrant shall be governed by and construed in accordance with the law of
        the
        State of New York without giving effect to the principles of conflicts of
        law
        thereof.

      

      12. Amendment,
        Waiver, etc.
        Except
        as expressly provided herein, neither this Warrant nor any term hereof may
        be
        amended, waived, discharged or terminated other than by a written instrument
        signed by the party against whom enforcement of any such amendment, waiver,
        discharge or termination is sought; provided, however, that any provisions
        hereof may be amended, waived, discharged or terminated upon the written
        consent
        of the Company and the Majority of the Holders.

      

      *
        * * *
        *

       

      
        
           

          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Warrant to be signed by the undersigned duly authorized
        officer as of May 3, 2006.

       

      
        	 	 	 
	 	ZIOPHARM
                Oncology, Inc. 
	 
 	 
 	 
 
	 	By:  	 
	 	
                
                  

                

                Richard E. Bagley, President
                  Chief Operating 

                Officer
                  and Treasurer

              
	 	 

      

       

      
        
           

          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      SUBSCRIPTION (cash)

      

      The
        undersigned, ___________________, pursuant to the provisions of the foregoing
        Warrant, hereby agrees to subscribe for and purchase ____________________
        shares
        of the Common Stock, par value $0.001 per share, of ZIOPHARM Oncology, Inc.
        covered by said Warrant, and makes payment therefor in full at the price
        per
        share provided by said Warrant.

      
        	 	 	 
	 
 	 
 	 
 
	Dated: ___________________________	 	Signature:   
                __________________________
	
                 

                 

              	
                 

                Address:    
                  __________________________

              
	 	 

      

       

       

      CASHLESS
        EXERCISE

      

      The
        undersigned _____________, pursuant to the provisions of the foregoing Warrant,
        hereby elects to exchange its Warrant for ___________________ shares of Common
        Stock, par value $0.001 per share, of ZIOPHARM Oncology, Inc. pursuant to
        the
        Cashless Exercise provisions of the Warrant.

      
        	 	 	 
	 
 	 
 	 
 
	Dated: ___________________________	 	Signature:   
                __________________________
	
                 

                 

              	
                 

                Address:    
                  __________________________

              
	 	 

      

       

      
        
           

          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED _______________ (“Assignor”) hereby sells, assigns and transfers unto
        ____________________ (“Transferee”) the foregoing Warrant and all rights
        evidenced thereby, and does irrevocably constitute and appoint
        _____________________, attorney, to transfer said Warrant on the books of
        ZIOPHARM Oncology, Inc. By acceptance of the foregoing Warrant, Transferee
        shall
        become a Holder under said Warrant and subject to the rights, obligations
        and
        representations of Holder set forth in said Warrant.

      

      ASSIGNOR:

      
        	 	 	 
	 
 	 
 	 
 
	Dated: ___________________________	 	Signature: 
                __________________________
	
                 

                 

              	
                 

                Address:   
                  __________________________

              
	 	 

      

       

      TRANSFEREE:

      
        	 	 	 
	 
 	 
 	 
 
	Dated: ___________________________	 	Signature:  
                __________________________
	
                 

                 

              	
                 

                Address:   
                  __________________________

              
	 	 

      PARTIAL
        ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED _______________ (“Assignor”) hereby assigns and transfers unto
        ____________________ (“Transferee”) the right to purchase _______ shares of
        Common Stock, par value $0.001 per share, of ZIOPHARM Oncology, Inc. covered
        by
        the foregoing Warrant, and a proportionate part of said Warrant and the rights
        evidenced thereby, and does irrevocably constitute and appoint
        ____________________, attorney, to transfer such part of said Warrant on
        the
        books of ZIOPHARM Oncology, Inc. By acceptance of the proportionate part
        of
        foregoing Warrant, Transferee shall become a Holder under said proportionate
        part of said Warrant and subject to the rights, obligations and representations
        of Holder set forth in said Warrant.

      

      ASSIGNOR:

      
        	 	 	 
	 
 	 
 	 
 
	Dated: ___________________________	 	Signature:   
                __________________________
	
                 

                 

              	
                 

                Address:   
                  __________________________

              
	 	 

      

      TRANSFEREE:

      
        	 	 	 
	 
 	 
 	 
 
	Dated: ___________________________	 	Signature:   __________________________
	
                 

                 

              	
                 

                Address:   
                  __________________________

              
	 	 

      
         

        
          
             

          

          
            11SUBSCRIPTION
      AGREEMENT

    

    THIS
      SUBSCRIPTION AGREEMENT (this “Agreement”)
      made
      as of the date set forth on the signature page hereof between ZIOPHARM Oncology,
      Inc., a Delaware corporation having a place of business at 1180 Avenue of the
      Americas, 19th
      Floor,
      New York, New York 10036 (the “Company”),
      and
      the undersigned (the “Subscriber”).

    

    WITNESSETH:

    

    WHEREAS,
      the
      Company is offering (the “Offering”)
      to a
      limited number of persons who qualify as “accredited investors” as defined in
      Rule 501(a) of Regulation D (“Regulation
      D”)
      promulgated under the Securities Act of 1933, as amended (the “Securities
      Act”),
      shares (the “Shares”)
      of its
      common stock, par value $0.001 per share (“Common
      Stock”),
      and
      warrants to purchase shares of Common Stock (the “Warrants”
and
      collectively with the Shares, the “Securities”)
      on the
      terms and conditions described in this Agreement;

    

    WHEREAS,
      the
      Offering is contingent upon the Company making sales of a number of shares
      of
      Common Stock which would provide
      the Company with aggregate gross proceeds of at least $15,000,000
      (the
“Minimum
      Offering Amount”).
      The
      Company
      will sell a maximum number
      of
      shares of Common Stock which would provide the Company with aggregate gross
      proceeds of $37,000,000 (the “Maximum
      Offering Amount”).
      

    

    WHEREAS,
      Paramount
      BioCapital, Inc. (“Paramount”)
      and
      Griffin Securities, Inc. (“Griffin”),
      are
      acting as co-exclusive placement agents (the “Placement
      Agents”)
      for
      the Offering; and

    

    WHEREAS,
      on
      the
      terms and conditions hereinafter set forth, the Subscriber desires to purchase
      from the Company, and the Company desires to sell to the Subscriber, a number
      of
      Securities.

    

    NOW,
      THEREFORE, in
      consideration of the promises and the mutual representations and covenants
      hereinafter set forth, the parties hereto do hereby agree as
      follows:

    

    
      	1.            	
              PURCHASE
                AND SALE OF SECURITIES.

            

    

     

    1.1  Offering.
      The
      Company is offering the Securities to a limited number of persons who qualify
      as
“accredited investors,” as defined in Rule 501(a) of Regulation D of the
      Securities Act, on the terms and conditions described in this Agreement. The
      Minimum Offering Amount will be offered on an “all or none, best efforts" basis.
      Amounts in excess of the Minimum Offering Amount up to the Maximum Offering
      Amount will be offered on a “best efforts” basis. The Subscriber understands,
      however, that this purchase and sale of the Securities is contingent upon the
      Company making aggregate sales equal to or exceeding the Minimum Offering
      Amount. The per Share price shall be equal to the lesser of (i) $4.63; and
      (ii)
      the volume weighted average price of the Company’s Common Stock as reported on
      the OTC Bulletin Board® (or, if applicable, the national securities exchange on
      which such Common Stock is listed, the Nasdaq National Market, the Nasdaq
      Capital Market, or other nationally recognized trading system) for the five
      (5)
      trading days immediately prior to the applicable Closing Date (as defined below)
      (the
      “Purchase
      Price”).
      The
      minimum number of Shares purchasable by any single investor shall be equal
      to
      $100,000 divided by the Purchase Price, subject to the discretion of the Company
      and the Placement Agents to accept subscriptions for lesser amounts.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.2  Closing.
      At the
      closing (the “Closing,”
and
      the date thereof, the “Closing
      Date”),
      provided the Company has received the Minimum Offering Amount, the Company
      shall
      issue and sell to the Subscriber and the Subscriber shall purchase from the
      Company, a number of Shares equal to the quotient resulting from dividing (i)
      the total dollar amount of the Subscriber’s subscription as set forth on the
      signature page hereof that is accepted by the Company and the Placement Agents
      (the “Aggregate
      Purchase Price,”
as
      further defined below) by (ii) the Purchase Price, rounded to the nearest whole
      Share (the “Subscription
      Amount”).
      In
      addition to the Shares, each Subscriber shall receive a number of Warrants
      equal
      to 30% of the number of Shares purchased in the Offering by such Subscriber,
      rounded to the nearest whole share. The Warrants shall be in substantially
      the
      form attached to the Memorandum (as defined below) and shall have an exercise
      price equal to 120% of the Purchase Price (the “Warrant
      Exercise Price”)
      and
      shall be exercisable at any time prior to the fifth anniversary of the date
      of
      issuance. 

     

    1.3  Closing
      Mechanics.
      The
      Closing shall be held at a date and time designated by the Company and the
      Placement Agents prior to 11:59 p.m. Eastern Standard Time on April 30, 2006
      (subject to extension at the discretion of the Company and the Placement Agents
      without notice to the Subscriber of up to 30 days), which date shall be no
      later
      than five (5) Business Days (as defined in Article 5) after satisfaction or
      waiver of the closing conditions set forth in Article 4 hereof. The Closing
      shall occur at the offices of Paramount, located at 787 Seventh Avenue, New
      York, New York 10019. Upon
      satisfaction or waiver of all conditions to the Closing, the Placement Agents
      and the Company shall instruct an escrow agent (the “Escrow
      Agent”)
      to
      release the proceeds of the Offering to the Company, less fees and expenses
      due
      to the Placement Agents. Interest, if any, that has accrued with respect to
      the
      Aggregate Purchase Price while in escrow shall also be distributed to the
      Company at the Closing and the Subscriber will have no right to such interest,
      even if there is no Closing.

     

    1.4  Payment
      of Aggregate Purchase Price.
      Upon,
      or prior to, the execution of this Agreement by the Subscriber, the Subscriber
      shall deposit the amount of readily available funds equal to the Aggregate
      Purchase Price in a segregated escrow account with the Escrow Agent (the
“Escrow
      Account”)
      by
      check or wire transfer of immediately available funds pursuant to the
      instructions provided below. Subject to the terms and conditions of this
      Agreement (including, without limitation, the Company’s and the Placement
      Agents’ option, each at its sole discretion, to refuse to accept subscriptions,
      in whole or in part, from any Subscriber), the Subscriber hereby subscribes
      for
      and agrees to purchase from the Company such number of Securities and the
      Company agrees to sell such number of Securities to the Subscriber as is set
      forth upon the signature page hereof at the Aggregate Purchase Price as accepted
      by the Company and the Placement Agents.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    US
      Bank Trust National Association

    ABA
      Routing Number: 091000022

    US
      Bank and Trust Corp. Account Number: 180121167365

    For:
      Paramount –
      ZIOPHARM & Griffin Escrow

    SEI
      Number: 791749000

    Reference:
      [Investor Name]

    Attn:
      Angela Rieger

    

    The
      Subscriber must complete and return a duly executed, unaltered copy of this
      Agreement (including the completed Confidential Investor Questionnaire included
      in Article 7 hereof (the “Confidential
      Investor Questionnaire”))
      to
      either Placement Agent at such Placement Agent’s address indicated in the
      Memorandum on or before the date indicated to the Subscriber by the Placement
      Agents to be eligible to participate in the Offering. The Company and the
      Placement Agents retain complete discretion to accept or reject any subscription
      unless and until the Company executes a counterpart to this Agreement that
      includes such Subscriber’s signature.

    

    1.5  Delivery
      of Certificates.
      The
      Company shall deliver, or cause to be delivered, the certificates representing
      the Securities purchased by the Subscriber hereunder as soon as practical after
      the Closing, and in any event within five business days, to the Subscriber’s
      residential or business address indicated on the signature page
      hereto.

     

    
      	2.	 	
              REPRESENTATIONS
                AND WARRANTIES OF SUBSCRIBER.

            

    

    

    The
      Subscriber hereby represents and warrants to the Company as of the date hereof
      and the relevant Closing Date as follows:

    

    2.1     
       The
      Subscriber understands, acknowledges and agrees that the purchase of the
      Securities involves a high degree of risk including, but not limited to, the
      following: (i) an investment in the Company is highly speculative, and only
      investors who can afford the loss of their entire investment should consider
      investing in the Company and the Securities; (ii) the Subscriber may not be
      able
      to liquidate its investment; (iii) transferability of the Securities is
      extremely limited; (iv) in the event of a disposition of the Securities, the
      Subscriber could sustain the loss of its entire investment; and (v) since the
      Company has been a publicly-traded company, the Company has not paid any
      dividends on its Common Stock and does not anticipate the payment of dividends
      in the foreseeable future.

    

    2.2     
       The
      Subscriber is an “accredited investor” as such term is defined in Rule 501(a) of
      Regulation D promulgated under the Securities Act, as indicated by the
      Subscriber’s responses to the questions contained in the Confidential Investor
      Questionnaire, which are true and correct as of the date hereof and shall be
      true and correct as of the relevant Closing Date, and that the Subscriber is
      able to bear the economic risk of an investment in the Company. If the
      Subscriber is a natural person, the Subscriber has reached the age of majority
      in the state or other jurisdiction in which the Subscriber resides, has adequate
      means of providing for the Subscriber’s current financial needs and
      contingencies, is able to bear the substantial economic risks of an investment
      in the Securities for an indefinite period of time, has no need for liquidity
      in
      such investment and, at the present time, could afford a complete loss of such
      investment.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    2.3  The
      Subscriber understands, acknowledges and agrees that: (i) the Subscriber is
      knowledgeable, sophisticated and has experience in making, and is qualified
      to
      make, decisions with respect to investments representing an investment decision
      like that involved in the purchase of the Securities and has prior investment
      experience, including investments in securities which are non-listed,
      unregistered and/or not traded on the New York Stock Exchange, AMEX, the
      National Market or Capital Market of the National Association of Securities
      Dealers, Inc. (“NASD”)
      Automated Quotation System or any other national stock exchange; (ii) the
      investment in the Securities is of a highly speculative nature and involves
      a
      significant degree of risk, that the market price of the Common Stock has been
      and continues to be volatile and that Subscriber has carefully evaluated the
      risks of an investment in the Securities, including without limitation those
      set
      forth in the Memorandum; and (iii) the Subscriber is able to bear the economic
      risk of an investment in the Securities and the potential loss of such
      investment, which risk the Subscriber hereby assumes.

    

    2.4  The
      Subscriber has received and carefully reviewed this Agreement, the Company’s
      Confidential Offering Memorandum dated March 21, 2006 (together with all
      exhibits, appendices, supplements or amendments thereto, the “Memorandum”)
      (exhibits and appendices to the Memorandum, including any supplements or
      amendments thereto, that have been filed with the Securities and Exchange
      Commission (the “SEC”)
      are
      collectively referred to herein as the “SEC
      Filings”).
      For
      purposes of this representation, the parties agree that any information that
      that Company subsequently files with the SEC under Sections 13(a), 13(c), 14
      or
      15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”)
      that
      is delivered to the Subscriber prior to the Closing will automatically update
      and supersede any previous information that is part of the Memorandum. The
      Subscriber further represents that the Subscriber has been furnished by the
      Company during the course of this transaction with all information regarding
      the
      Company which the Subscriber, its investment advisor, attorney and/or accountant
      has requested or desired to know or which is otherwise relevant to an investment
      decision, has been afforded the opportunity to ask questions of and receive
      answers from duly authorized officers or other representatives of the Company
      concerning the terms and conditions of the Offering, and has received any
      additional information which the Subscriber or its advisors or agents has
      requested.

    

    2.5     
       (a) The
      Subscriber has relied solely upon its own due diligence investigations and
      information provided by the Company in making the decision to invest in the
      Securities. The Subscriber is familiar with and understands the terms of the
      Offering, including the rights to which the Subscriber is entitled under this
      Agreement. In evaluating the suitability of an investment in the Company, the
      Subscriber has not relied upon any representation or other information (whether
      oral or written) from the Company, or any agent, employee or Affiliate (as
      defined in Article 5) of the Company other than as set forth in the Memorandum,
      in this Agreement or resulting from the Subscriber’s own independent
      investigation. The Subscriber understands and acknowledges that nothing in
      this
      Agreement, the Memorandum or any other materials provided to the Subscriber
      in
      connection with the subscription for the Securities or sale of the Securities
      constitutes investment, tax or legal advice. To the extent deemed necessary
      or
      advisable by the Subscriber in its sole discretion, the Subscriber has retained,
      at its sole expense, and relied upon appropriate professional advice regarding
      the investment, tax and legal merits and consequences of this Agreement and
      its
      purchase of the Securities hereunder. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b) No
      Securities were offered or sold to the Subscriber by means of any form of
      general solicitation or general advertising, and in connection therewith the
      Subscriber did not: (i) receive or review any advertisement, article, notice
      or
      other communication published in a newspaper or magazine or similar media or
      broadcast over television or radio whether closed circuit, or generally
      available; or (ii) attend any seminar meeting or industry investor conference
      whose attendees were invited by any general solicitation or general
      advertising.

    

    2.6     
       The
      Subscriber, either by reason of the Subscriber’s business or financial
      experience or the business or financial experience of the Subscriber’s
      professional advisors, has the capacity to protect the Subscriber’s own
      interests in connection with the transaction contemplated hereby. 

    

    2.7     
       The
      Subscriber understands, acknowledges and agrees that the Offering has not been
      reviewed, recommended or endorsed by the SEC or any state securities regulatory
      authority or other governmental body or agency, since the Offering is intended
      to be exempt from the registration requirements of Section 5 of the Securities
      Act pursuant to Regulation D promulgated under the Securities Act. The
      Subscriber shall not sell or otherwise transfer the Securities unless such
      transfer is registered under the Securities Act or unless an exemption from
      such
      registration is available. The Subscriber understands that if required by the
      laws or regulations or any applicable jurisdictions, the Offering contemplated
      hereby will be submitted to the appropriate authorities of such state(s) for
      registration or exemption therefrom. 

    

    2.8     
       The
      Subscriber understands, acknowledges and agrees that the Securities have not
      been registered under the Securities Act in reliance upon a claimed exemption
      under the provisions of the Securities Act which depends, in part, upon the
      Subscriber’s investment intention and the truth and accuracy of, and
      Subscriber’s compliance with, the representations, warranties, acknowledgments
      and covenants of Subscriber set forth herein. In this connection, the Subscriber
      hereby represents that the representations, warranties, acknowledgments and
      covenants of Subscriber set forth herein are true and correct, the Subscriber
      will comply with the covenants set forth herein, and the Subscriber is
      purchasing the Securities for the Subscriber’s own account for investment
      purposes only and not with a present view toward the resale or distribution
      to
      others and has no contract, undertaking, agreement or other arrangement, in
      existence or contemplated, to sell, pledge, assign or otherwise transfer the
      Securities to any other Person (as defined in Article 5). The Subscriber, if
      an
      entity, also represents that it was not formed for the purpose of purchasing
      the
      Securities. As of the date of this Agreement, the Subscriber has no current
      plans to effect a “change of control” of the Company, as such term is understood
      in Rule 13d of the Exchange Act.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    2.9     
       The
      Subscriber understands that the Securities will not be registered or available
      for sale in the public markets except as specifically provided herein, and
      Rule
      144 promulgated under the Securities Act (“Rule
      144”)
      requires, among other conditions, a one-year holding period prior to the resale
      (in limited amounts) of securities acquired in a non-public offering (and a
      two-year holding period for unlimited sales by non-Affiliates of the Company)
      without having to satisfy the registration requirements under the Securities
      Act. The Subscriber understands and hereby acknowledges that the Company is
      under no obligation to register any of the Securities under the Securities
      Act
      or any state securities or “blue sky” laws or assist the Subscriber in obtaining
      an exemption from various registration requirements, other than as set forth
      in
      Article 5 herein. 

    

    2.10  
       The
      Subscriber acknowledges that the certificates representing the Shares, the
      Warrants and, upon the exercise of the Warrants, the shares of Common Stock
      issuable upon exercise of the Warrants (the “Warrant
      Shares”),
      be
      stamped or otherwise imprinted with a legend substantially in the following
      form:

    

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES
      NOR
      ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
      DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER SUCH ACT OR
      AN
      EXEMPTION FROM REGISTRATION, WHICH, IN THE OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO THIS CORPORATION, IS AVAILABLE.

    

    Certificates
      evidencing the Shares and the Warrant Shares shall not be required to contain
      such legend or any other legend (i) following any sale of such Shares or Warrant
      Shares pursuant to Rule 144, or (ii) if such Shares or Warrant Shares are
      eligible for sale under Rule 144(k) or have been sold pursuant to the
      Registration Statement (as hereafter defined) and in compliance with the
      obligations set forth in Section 5.7, below, or (iii) such legend is not
      required under applicable requirements of the Securities Act (including judicial
      interpretations and pronouncements issued by the Staff of the Securities and
      Exchange Commission), in each such case of (iii) to the extent reasonably
      determined by the Company’s legal counsel. Notwithstanding the foregoing,
      following the effective date of the Registration Statement, the legend set
      forth
      above shall, at the request of the Subscriber, be removed from the certificates
      evidencing such Shares and Warrant Shares prior to the resale thereof and the
      Company will rescind any stop transfer orders with respect to such shares given
      to the Company’s transfer agent, provided that such Subscriber represents and
      covenants to the Company in writing (in a form reasonably acceptable to the
      Company and its counsel) that (1) the Subscriber will sell such shares only
      pursuant to and in the manner contemplated by the Registration Statement,
      including the Plan of Distribution section contained therein, and otherwise
      in
      compliance with the Securities Act, including the prospectus delivery
      requirements of such act, (2) the Subscriber will indemnify the Company for
      any
      damages or losses resulting to the Company for the Subscriber’s breach of its
      representation and covenant described in the foregoing clause (1), and (3)
      such
      other agreements or covenants as the Company or its counsel may reasonably
      request. Subject to the foregoing, at such time and to the extent a legend
      is no
      longer required for the Shares or Warrant Shares, the Company will use its
      best
      efforts to no later than three (3) trading days following the delivery by a
      Subscriber to the Company or the Company’s transfer agent of a legended
      certificate representing such Shares or Warrant Shares (together with such
      accompanying documentation or representations as reasonably required by counsel
      to the Company), to cause the transfer agent of the Company to credit the
      account of the holder’s prime broker with Depositary Trust Company System with,
      or at the request of such holder, to deliver or cause to be delivered a
      certificate representing such Shares or Warrant Shares that is free from the
      foregoing legend.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    2.11  
       The
      Subscriber agrees to supply
      the Company, within a reasonable period after receiving a request therefor
      from
      the Company, with such additional information concerning the Subscriber as
      the
      Company reasonably deems necessary or advisable in order to establish or verify
      the Subscriber’s representations contained herein.

    

    2.12   
       The
      address of the Subscriber furnished by the Subscriber on the signature page
      hereof is the Subscriber’s principal residence if Subscriber is an individual or
      its principal business address if it is a corporation or other
      entity.

    

    2.13   
       The
      Subscriber has full power and authority (corporate or otherwise) to execute,
      deliver, and perform this Agreement and to purchase the Securities and has
      taken
      all action necessary to authorize the execution, delivery and performance of
      this Agreement. This Agreement constitutes the legal, valid and binding
      obligation of the Subscriber, enforceable against the Subscriber in accordance
      with its terms, subject to laws of general application relating to bankruptcy,
      insolvency and the relief of debtors and rules of law governing specific
      performance, injunctive relief or other equitable remedies, and to limitations
      of public policy.

    

    2.14   
       If
      the
      Subscriber is a corporation, partnership, limited liability company, trust,
      employee benefit plan, individual retirement account, Keogh Plan, or other
      entity (i) it is authorized and qualified to become an investor in the Company
      and the Person signing this Agreement on behalf of such entity has been duly
      authorized by such entity to do so and (ii) it is duly organized, validly
      existing and in good standing under the laws of the jurisdiction of its
      organization.

    

    2.15   
       The
      Subscriber acknowledges that if he or she is a “Registered Representative” of an
      NASD member firm, he or she must give such firm the notice required by the
      NASD
      Rules of Fair Practice, receipt of which must be acknowledged by such firm
      in
      Section 7.4 below in accordance with such rules.

    

    2.16   
       The
      Subscriber understands, acknowledges and agrees that this subscription may
      be
      rejected, in whole or in part, by the Company or the Placement Agents, in each
      of their sole and absolute discretion, at any time before any Closing Date
      notwithstanding prior receipt by the Subscriber of notice of acceptance of
      the
      Subscriber’s subscription. The Subscriber hereby authorizes and directs the
      Company to return, without interest, any funds for unaccepted subscriptions
      to
      the same account from which the funds were drawn, including any customer account
      maintained by the Subscriber with the Placement Agents.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    2.17   
       The
      Subscriber understands, acknowledges and agrees with the Company that except
      as
      otherwise set forth herein, the subscription hereunder is irrevocable by the
      Subscriber, that, except as required by law or as otherwise set forth herein,
      the Subscriber is not entitled to cancel, terminate or revoke this Agreement
      or
      any agreements of the Subscriber hereunder and that this Agreement and such
      other agreements shall survive the death or disability of the Subscriber and
      shall be binding upon and inure to the benefit of the parties and their heirs,
      executors, administrators, successors, legal representatives and permitted
      assigns. If the Subscriber is more than one Person, the obligations of the
      Subscriber hereunder shall be joint and several and the agreements,
      representations, warranties and acknowledgments herein contained shall be deemed
      to be made by and be binding upon each such Person and its heirs, executors,
      administrators, successors, legal representatives and permitted
      assigns.

    

    2.18   
       The
      Subscriber understands, acknowledges and agrees with the Company that, the
      Offering is intended to be exempt from registration under the Securities Act
      by
      virtue of Section 4(2) of the Securities Act and the provisions of Regulation
      D,
      and/or the provisions of Regulation S which are in part dependent upon the
      truth, completeness and accuracy of the statements made by the
      Subscriber.

    

    2.19   
       The
      Subscriber understands, acknowledges and agrees that there can be no assurance
      that the Subscriber will be able to sell or dispose of the Securities. It is
      understood that in order not to jeopardize the Offering’s exempt status under
      Section 4(2) of the Securities Act and Regulation D, in addition to any other
      restrictions on transfer set forth herein or in the Warrants, the Company may,
      at a minimum, require any transferee to fulfill the Subscriber suitability
      requirements thereunder and make the representations, warranties and covenants
      of Subscriber hereunder.

    

    2.20   
       (a)
      The
      Subscriber represents and warrants that during the period commencing upon the
      date that the Subscriber was first contacted with respect to the Offering (the
“First
      Date”)
      the
      Subscriber has not, directly or indirectly, through related parties, Affiliates
      or otherwise, sold “short” or “short against the box” (as such terms are
      generally understood) and from the First Date through the relevant Closing
      Date
      or termination of this Agreement has not and will not take any action the intent
      of which is to reduce the trading price of the Common Stock. Notwithstanding
      the
      foregoing, in the case of a Subscriber that is a multi-managed investment
      vehicle whereby separate portfolio managers manage separate portions of such
      Subscriber’s assets and the portfolio managers have no direct knowledge of the
      investment decisions made by the portfolio managers managing other portions
      of
      such Subscriber’s assets, the representation set forth above shall only apply
      with respect to the portion of assets managed by the portfolio manager that
      made
      the investment decision to purchase the securities covered by this Agreement.
      

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (b)
      If
      the Subscriber has previously entered into a subscription agreement with
      ZIOPHARM, Inc., the Company’s predecessor, governing ZIOPHARM, Inc.’s offering
      of Series A Convertible Preferred Stock (the “Series
      A Agreement”),
      which
      Series A Agreement prohibits the Subscriber from directly or indirectly, through
      related parties, affiliates or otherwise, selling “short” or “short against the
      box” (as those terms are generally understood) any equity security of the
      Company during the period in which the Subscriber holds any Securities or
      Registrable Securities (each as defined in the Series A Agreement), then,
      subject to compliance with applicable securities laws, the Company agrees that
      nothing contained in the Series A Agreement, including Section 1.18 thereof,
      shall prohibit the Subscriber from directly or indirectly, through related
      parties, affiliates or otherwise, selling “short” or “short against the box” (as
      those terms are generally understood) equity securities of the Company to the
      extent that the Subscriber’s “short” position does not exceed the sum of the
      number of Shares and Warrant Shares then held by the Subscriber. 

    

    2.21    
      The
      Subscriber understands, acknowledges and agrees that the information contained
      in this Agreement, the Memorandum or otherwise made available to the Subscriber
      by the Company (collectively, the “Confidential
      Information”)
      is to
      be used solely for the purpose of evaluating a possible investment in the
      Securities and is confidential and non-public and agrees that all such
      Confidential Information shall be kept in confidence by the Subscriber and
      neither used by the Subscriber for the Subscriber’s personal benefit (other than
      in connection with evaluating a possible investment in the Securities) nor
      disclosed to any third party for any reason and in any manner, notwithstanding
      that a Subscriber’s subscription may not be accepted by the Company;
provided,
      however,
      that
      this obligation shall not apply to any such Confidential Information that (i)
      is
      part of the public knowledge or literature and readily accessible at the date
      hereof (except as a result of a breach of this provision by any party), (ii)
      becomes part of the public knowledge or literature and readily accessible by
      publication (except as a result of a breach of this provision by any party),
      or
      (iii) is required to be disclosed by the Subscriber pursuant to applicable
      law
      or legal process.

    

    2.22   
       If
      the
      Subscriber is purchasing the Securities in a fiduciary capacity for another
      Person, including without limitation a corporation, partnership, trust or any
      other entity, the Subscriber has been duly authorized and empowered to execute
      this Agreement and all other subscription documents, and such other Person
      fulfills all the requirements for purchase of the Securities as such
      requirements are set forth herein, concurs in the purchase of the Securities
      and
      agrees to be bound by the obligations, representations, warranties and covenants
      contained herein. The Subscriber will provide true, complete and correct copies
      of all organizational documents of the Subscriber reasonably requested by the
      Company, the Placement Agents or their respective legal counsel authorizing
      its
      investment in the Company and/or evidencing the satisfaction of the
      foregoing.

    

    2.23   
       No
      authorization, approval, consent or license of any Person is required to be
      obtained for the purchase of the Securities
      by the
      Subscriber, other than as have been obtained and are in full force and effect.
      The execution and delivery of this Agreement does not, and the consummation
      of
      the transactions contemplated hereby will not, result in any violation of or
      constitute a default under any material agreement or other instrument to which
      the Subscriber is a party or by which the Subscriber or any of its properties
      are bound, or to the best of the Subscriber’s knowledge, any permit, franchise,
      judgment, order, decree, statute, rule or regulation to which the Subscriber
      or
      any of its businesses or properties is subject.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    2.24   
       The
      Subscriber understands, acknowledges and agrees that the representations,
      warranties and agreements of the Subscriber contained herein (including the
      Confidential Investor Questionnaire), in the Registration Questionnaire attached
      hereto as Appendix
      A
      (the
“Registration
      Questionnaire”)
      and in
      any other writing delivered in connection with the transactions contemplated
      hereby shall be true and correct on the date hereof and as of the relevant
      Closing Date as if made on and as of such date (except for representations,
      warranties and agreements as of a specific date, which shall be true and correct
      as of such date) and shall survive the execution and delivery of this Agreement
      and the purchase of the Securities. The Subscriber agrees that the Placement
      Agents shall be entitled to rely on the representations, warranties and
      agreements of the Subscriber contained herein as if such representations,
      warranties and agreements were made or provided directly to the Placement
      Agents.

    

    2.25   
       The
      Subscriber hereby covenants with the Company not to make any sale of the
      Securities under the Registration Statement without effectively causing the
      prospectus delivery requirements under the Securities Act to be satisfied or,
      if
      relying on Rule 172 of the Securities Act, without confirming that the
      Subscriber is exempt from such prospectus delivery requirements in reliance
      on
      Rule 172, and further agrees to comply with reasonable requests of the Company
      or its transfer agent to provide all necessary additional information and
      representations concerning such sale.

    

    2.26   
       (a)
      The
      Subscriber agrees, acknowledges and understands that the Placement Agents are
      acting as co-exclusive placement agent for the Securities being offered hereby
      and will be compensated by the Company for acting in such capacity, including,
      but not limited to, by: (i) placement fees in cash equal to up to seven percent
      (7%) of the proceeds received by the Company at each Closing; and (ii) warrants
      (the “Placement
      Warrants”)
      to
      purchase a number of shares of Common Stock (the “Placement
      Warrant Shares”)
      equal
      to ten percent (10%) of the number of Shares actually sold by the Company in
      connection with the Offering (not including shares of Common Stock issuable
      upon
      exercise or conversion of warrants or other securities for which no cash
      consideration was received upon issuance); and (iii) reimbursement of its
      reasonable, documented expenses (including reasonable legal fees) incurred
      in
      connection with the Offering (which reimbursement shall not exceed $100,000
      in
      the aggregate). The Placement Warrants shall have an exercise price per share
      equal to 110% of the Purchase Price per Share. The Subscriber shall not be
      entitled to reimbursement of any expenses incurred by the Subscriber in
      connection with the Offering.

    

    (b)
      The
      Subscriber agrees, acknowledges and understands that the Paramount may engage
      other Persons, selected by it in its discretion, who are members of the NASD
      or
      who are located outside the United States, to assist the Placement Agents in
      connection with this Offering. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	3.	 	
              REPRESENTATIONS
                BY AND COVENANTS OF THE COMPANY.

            

    

     

    The
      Company hereby represents and warrants to, and covenants with, the Subscriber
      as
      of the date hereof and each Closing Date that:

    

    3.1 Organization,
      Good Standing and Qualification.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of its jurisdiction of organization and has full corporate power
      and authority to conduct its business as currently conducted. The Company is
      duly qualified as a foreign corporation to do business and is in good standing
      in every jurisdiction in which such qualification is necessary, except to the
      extent that the failure to be so qualified or in good standing would not
      reasonably be expected to have, individually or in the aggregate, either a
      material adverse effect on the business, operations, conditions (financial
      or
      otherwise), assets or results of operations of the Company as a whole, or
      prevent the Company from consummating the Offering and the other transactions
      contemplated by this Agreement (a “Material
      Adverse Effect”).

     

    3.2 Capitalization.
      (a) The
      authorized capital stock of the Company consists of 280,000,000 shares of
      capital stock. As of the date of the Memorandum, there were 7,272,992 shares
      of
      Common Stock issued and outstanding, all of which are duly authorized, validly
      issued, fully paid and non-assessable. In addition, there are 1,576,980 shares
      of Common Stock reserved for issuance pursuant to outstanding options and
      warrants. All of the securities issued by the Company have been issued in
      accordance with all applicable federal and state securities laws. Other than
      as
      set forth above, there are no other options, warrants, calls, rights,
      commitments or agreements of any character to which the Company is a party
      or by
      which the Company is bound or obligating the Company to issue, deliver, sell,
      repurchase or redeem, or cause to be issued, delivered, sold, repurchased or
      redeemed, any shares of the capital stock of the Company or obligating the
      Company to grant, extend or enter into any such option, warrant, call, right,
      commitment or agreement. There are no preemptive rights or rights of first
      refusal or similar rights which are binding on the Company permitting any Person
      to subscribe for or purchase from the Company shares of its capital stock
      pursuant to any provision of law, the Company’s Certificate of Incorporation as
      in effect on the date hereof (the “Certificate
      of Incorporation”)
      or the
      Company’s By-laws, as in effect on the date hereof (the “By-laws”)
      or
      pursuant to any agreement, contract or understanding to which the Company is
      a
      party. There are no securities or instruments containing anti-dilution or
      similar provisions that will be triggered by the issuance of the Securities
      as
      described in this Agreement. The Company does not own, directly or indirectly,
      any stock, partnership interest, joint venture interest or any other equity
      interest in, or security issued by, any Person.

     

    (b) The
      Securities have been duly authorized and, when issued, delivered and paid for
      in
      the manner set forth in this Agreement, will be duly authorized, validly issued,
      fully paid and non-assessable. Except for the subscribers in the Offering and
      selling stockholders listed in the Company’s currently effective registration
      statements on Form SB-2 (SEC File Nos. 333-129020 and 333-129680), no
      stockholder of the Company has any right to request or require the Company
      to
      register the sale of any shares owned by such stockholder under the Securities
      Act. No further approval or authority of the stockholders or the Board of
      Directors of the Company will be required for the issuance and sale of the
      Securities to be sold by the Company as contemplated herein.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    3.3     
       Authorization;
      Enforceability.
      The
      Company has full power and authority (corporate or otherwise) to enter into
      this
      Agreement and to consummate the transactions contemplated hereby. All corporate
      action on the part of the Company, its directors and stockholders necessary
      for
      the authorization, execution, delivery and performance of this Agreement by
      the
      Company, the authorization, sale, issuance and delivery of the Securities
      contemplated herein and the performance of the Company’s obligations hereunder
      has been taken. This Agreement and the Warrants have been duly executed and
      delivered by the Company and constitute a legal, valid and binding obligation
      of
      the Company, enforceable against the Company in accordance with their respective
      terms, subject to laws of general application relating to bankruptcy, insolvency
      and the relief of debtors and rules of law governing specific performance,
      injunctive relief or other equitable remedies, and to limitations of public
      policy. 

    

    3.4     
       No
      Conflict; Governmental and Other Consents.
      (a) 
      The
      execution and delivery by the Company of this Agreement and the Warrants and
      the
      consummation of the transactions contemplated hereby and thereby will not result
      in the violation of any law, statute, rule, regulation, order, writ, injunction,
      judgment or decree of any court or governmental authority to or by which the
      Company is bound, or of any provision of the Certificate of Incorporation or
      By-Laws of the Company, and will not conflict with, or result in a breach or
      violation of, any of the terms or provisions of, or constitute (with due notice
      or lapse of time or both) a default under, any lease, loan agreement, mortgage,
      security agreement, trust indenture or other agreement or instrument to which
      the Company is a party or by which it is bound or to which any of its properties
      or assets is subject, nor result in the creation or imposition of any lien
      upon
      any of the properties or assets of the Company where such violation, breach,
      default or imposition would reasonably be likely to result in a Material Adverse
      Effect.

    

    (b) No
      material consent, approval, authorization or other order of any governmental
      authority or other third-party is required to be obtained by the Company thereof
      in connection with the authorization, execution and delivery of this Agreement
      or with the authorization, issue and sale of the Securities, except such filings
      as may be required to be made with the SEC, the NASD and with any state or
      foreign blue sky or securities regulatory authority, which will be timely made
      by the Company.

    

    3.5  Litigation.
      There
      is no pending, or to the knowledge of the Company, threatened, legal or
      governmental proceedings to which the Company is a party which is reasonably
      expected to result in a Material Adverse Effect.

    

    3.6  Accuracy
      of Public Reports.
      All
      reports required to be filed by the Company within three years prior to the
      date
      of this Agreement under the Exchange Act (collectively, the “Public
      Reports”)
      have
      been duly filed with the SEC, complied at the time of filing in all material
      respects with the requirements of their respective forms and the rules and
      regulations thereunder, except to the extent updated or superseded by any
      subsequently filed report, were complete and correct in all material respects
      as
      of the dates at which the information was furnished, and such reports did not
      contain (as of their respective dates) any untrue statements of a material
      fact
      nor omitted to state any material fact necessary in order to make the statements
      contained therein, in light of the circumstances under which they were made,
      not
      misleading, or if amended, as so amended. The financial statements of the
      Company included in the Public Reports complied in all material respects with
      applicable accounting requirements and the rules and regulations of applicable
      securities laws with respect thereto as in effect at the time of filing. Such
      financial statements have been prepared in accordance with generally accepted
      accounting principles applied on a consistent basis during the periods involved
      (“GAAP”),
      except as may be otherwise specified in such financial statements or the notes
      thereto and except that unaudited financial statements may not contain all
      footnotes required by GAAP, and fairly present in all material respects the
      financial position of the Company as of and for 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, immaterial, year-end audit
      adjustments.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    3.7     
       Investment
      Company.
      The
      Company is not an “investment company” within the meaning of such term under the
      Investment Company Act of 1940, as amended, and the rules and regulations of
      the
      SEC thereunder.

    

    3.8     
       Proprietary
      Rights.
      To the
      Company’s knowledge, the Company owns or possesses adequate and enforceable
      rights to use all patents, patent applications, trademarks, trade names,
      corporate names, copyrights, trade secrets, licenses, inventions, formulations,
      technology and know-how and other intangible property used in the conduct of
      its
      business as presently conducted and described in the Memorandum (the
“Proprietary
      Rights”).
      Except as described in the Memorandum, the Company has not received any notice
      of, and there are no facts known to the Company that reasonably indicate the
      existence of (i) any infringement or misappropriation by any third party of
      any
      of the Proprietary Rights or (ii) any claim by a third party contesting the
      validity of any of the Proprietary Rights. The Company has not received any
      notice of and there are no facts known to the Company that indicate any
      infringement, misappropriation or violation by the Company or any of its
      employees of any Proprietary Rights of third parties. To the Company’s
      knowledge, all Proprietary Rights used by the Company are
      enforceable.

    

    3.9     
       Taxes.
      The
      Company has timely filed (subject to available extensions) all federal, state,
      local and foreign tax returns that are required to have been filed by it and
      all
      such returns are true and correct in all material respects. The Company has
      paid
      all taxes pursuant to such returns or pursuant to any assessments received
      by it
      or which it is obligated to withhold from amounts owing to any employee,
      creditor or third party. The tax returns of the Company have never been audited
      by any state, local or federal authorities. The Company has no knowledge of
      a
      material tax deficiency that has been asserted or threatened by the
      Company.

    

    3.10   
       No
      Integration.
      To the
      Company’s knowledge, there exists no fact or set of facts which may cause the
      Offering to be integrated with any other offering of the Company’s securities or
      which would cause this Offering to lose its exemption under Regulation D.

    

    3.11   
       Use
      of
      Proceeds.
      The
      Company intends to use the net proceeds in the Offering as described in the
      Memorandum. Except as described in the Memorandum, the Company shall not use
      any
      proceeds it receives in the Offering for the satisfaction of the Company’s debt
      (other than such trade debt it has incurred in the ordinary course of business).
      

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    3.12   
       Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of the Company, is imminent
      with respect to any of the employees of the Company which could reasonably
      be
      expected to result in a Material Adverse Effect.

    

    3.13.  
       Compliance.
      The
      Company (i) is not in default under or in violation of (and no event has
      occurred that has not been waived that, with notice or lapse of time or both,
      would result in a default by the Company under), nor has the Company received
      notice of a claim that it is in default under or that it is in violation of,
      any
      indenture, loan or credit agreement or any other agreement or instrument to
      which it is a party or by which it or any of its properties is bound (whether
      or
      not such default or violation has been waived), (ii) is not in violation of
      any
      order of any court, arbitrator or governmental body, or (iii) is not or has
      not
      been in violation of any statute, rule or regulation of any governmental
      authority, including without limitation all foreign, federal, state and local
      laws applicable to its business except in each case as could not have a Material
      Adverse Effect.

    

    3.14   
       Regulatory
      Permits.
      The
      Company possesses all certificates, authorizations and permits issued by the
      appropriate federal, state, local or foreign regulatory authorities necessary
      to
      conduct its business as described in the Memorandum, except where the failure
      to
      possess such permits would not, individually or in the aggregate, have or
      reasonably be expected to result in a Material Adverse Effect (“Material
      Permits”),
      and
      the Company has not received any notice of proceedings relating to the
      revocation or modification of any Material Permit.

    

    3.15   
       Title
      to Assets.
      The
      Company has good and marketable title to all real and personal property owned
      by
      them that is material to the business of the Company, in each case free and
      clear of any liens, encumbrances or other restrictions. Any real property and
      facilities held under lease by the Company is held by it under valid, subsisting
      and enforceable leases with which the Company are in compliance.

    

    3.16   
       Insurance.
      The
      Company is insured by insurers of recognized financial responsibility against
      such losses and risks and in such amounts as are prudent and customary in the
      businesses in which the Company is engaged, including directors and officers
      insurance. 

    

    3.17   
       Transactions
      with Affiliates and Employees.
      Except
      as set forth in the Memorandum, none of the officers or directors of the Company
      and, to the knowledge of the Company, none of the employees of the Company
      is
      presently a party to any transaction with the Company (other than for services
      as employees, officers and directors), including any contract, agreement or
      other arrangement providing for the furnishing of services to or by, providing
      for rental of real or personal property to or from, or otherwise requiring
      payments to or from any officer, director or such employee or, to the knowledge
      of the Company, any entity in which any officer, director, or any such employee
      has a substantial interest or is an officer, director, trustee or partner,
      in
      each case in excess of $50,000 other than (i) for payment of salary or
      consulting fees for services rendered, (ii) reimbursement for expenses incurred
      on behalf of the Company and (iii) for other employee benefits, including stock
      option agreements under any stock option plan of the Company.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    3.18   
       Sarbanes-Oxley;
      Internal Controls.
      Except
      as expressly set forth in the Memorandum and the Public Reports, the Company
      is
      in material compliance with all provisions of the Sarbanes-Oxley Act of 2002
      which are applicable to it as of each Closing Date. The Company has established
      disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
      and l5d-15(e)) for the Company and designed such disclosure controls and
      procedures to ensure that information required to be disclosed by the Company
      in
      its periodic reports under the Exchange Act is accumulated and communicated
      to
      the Company’s management, including the Company’s certifying officers, as
      appropriate to allow timely decisions regarding required disclosure. The
      Company’s management has evaluated, under the supervision and with the
      participation of the Company’s Chief Executive Officer and Treasurer, the
      effectiveness of the Company’s disclosure controls and procedures as of the end
      of the Company’s last fiscal quarter with respect to which the Company has
      filed, or was required to have filed, as of the date hereof, its periodic report
      under the Exchange Act (such date, the “Evaluation
      Date”).
      The
      Company presented in its most recently filed periodic report under the Exchange
      Act the conclusions of the Company’s Chief Executive Officer and Treasurer about
      the effectiveness of the disclosure controls and procedures based on their
      evaluations as of the Evaluation Date. Except as set forth in the Memorandum
      and
      the Public Reports, since the Evaluation Date, there have been no significant
      changes in the Company’s internal controls (as such term is defined in Item
      307(b) of Regulation S-K under the Exchange Act) or, to the Company’s knowledge,
      in other factors that could significantly affect the Company’s internal
      controls. The Company maintains and will continue to maintain a system of
      accounting established and administered in accordance with GAAP and the
      applicable requirements of the Exchange Act. 

    

    3.19   
       Application
      of Takeover Protections.
      The
      Company and its Board of Directors have taken, or will take prior to the initial
      Closing, all action, if any, necessary to render inapplicable any control share
      acquisition, business combination, poison pill (including any distribution
      under
      a rights agreement) or other similar anti-takeover provision under the Company’s
      Certificate of Incorporation (or similar charter documents) or the laws of
      its
      state of incorporation that otherwise is or would become applicable to the
      consummation of the transactions contemplated by this Agreement, including
      without limitation the Company’s issuance of the Securities and the Subscriber’s
      ownership of the Securities.

    

    3.20   
       No
      General Solicitation.
      Neither
      the Company nor any Person acting on behalf of the Company has offered or sold
      any of the Securities by any form of general solicitation or general
      advertising. The Company has offered the Securities for sale only to each
      Subscriber in the Offering and certain other “accredited investors” within the
      meaning of Rule 501(a) under the Securities Act.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    3.21     Foreign
      Corrupt Practices.
      Neither
      the Company, nor to the knowledge of the Company, any agent or other Person
      acting on behalf of the Company, has (i) directly or indirectly, used any
      corrupt funds for unlawful contributions, gifts, entertainment or other unlawful
      expenses related to foreign or domestic political activity, (ii) made any
      unlawful payment to foreign or domestic government officials or employees or
      to
      any foreign or domestic political parties or campaigns from corporate funds,
      (iii) failed to disclose fully any contribution made by the Company (or made
      by
      any Person acting on its behalf of which the Company is aware) which is in
      violation of law, or (iv) violated in any material respect any provision of
      the
      Foreign Corrupt Practices Act of 1977, as amended. Neither the issuance of
      the
      Shares and Warrants to the Subscriber, nor the use of the respective proceeds
      thereof, shall cause the Subscribers to violate the U.S. Bank Secrecy Act,
      as
      amended, and any applicable regulations thereunder or any of the sanctions
      programs administered by the U.S. Department of the Treasury’s Office of Foreign
      Assets Control (“OFAC”)
      of the
      United States Department of Treasury, any regulations promulgated thereunder
      by
      OFAC or under any affiliated or successor governmental or quasi-governmental
      office, bureau or agency and any enabling legislation or executive order
      relating thereto. Without limiting the foregoing, the Company (i) is not a
      person whose property or interests in property are blocked or subject to
      blocking pursuant to Section 1 of Executive Order 13224 of September 23, 200l
      Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten
      to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) does not
      engage in any dealings or transactions prohibited by Section 2 of such executive
      order, or is otherwise associated with any such person in any manner violative
      of Section 2, or (iii) is not a person on the list of Specially Designated
      Nationals and Blocked Persons or subject to the limitations or prohibitions
      under any other OFAC regulation or executive order. The Company is in
      compliance, in all material respects, with the Uniting and Strengthening of
      America by Providing the Appropriate Tools Required to Intercept and Obstruct
      Terrorism Act of 2001. 

    

    3.22     Accountants.
      The
      Company’s accountants are set forth in the Public Reports. To the Company’s
      knowledge, such accountants, who the Company expects will express their opinion
      with respect to the financial statements to be included in the Company’s
      upcoming annual report, are a registered public accounting firm as required
      by
      the Securities Act. There are no disagreements of any kind presently existing,
      or currently reasonably anticipated by the Company to arise, between the Company
      and the accountants formerly or presently employed by the Company that would
      cause the Company to be required to file a Current Report on Form 8-K under
      Items 4.01 or 4.02.

    

    3.23     Indebtedness.
      The
      Company has not materially increased its indebtedness from that described in
      the
      Memorandum, except in the ordinary course of business.

    

    3.24     Additional
      Covenants of the Company.
      (a)
      Until the earlier of the final Closing Date and the Termination Date (as defined
      below), the Company will not issue or sell any securities to any party, other
      than (i) the issuances and sales contemplated by this Agreement; (ii) pursuant
      to the terms of previously granted employee stock options and previously issued
      warrants, options and convertible securities; and (iii) additional issuances
      of
      equity incentives that are currently reserved for issuance under the Company’s
      2003 Stock Option Plan or are reserved in the future based on any amendment
      to
      the 2003 Stock Option Plan that has been approved by the Company’s
      stockholders.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    

    (b)
      So
      long
      as the Subscriber continues to hold Shares or Warrant Shares, the Company
      covenants and agrees that neither it nor any other Person acting on its behalf
      will provide the Subscriber or, the Subscriber’s agents or counsel on the
      Subscriber’s behalf, with information that the Company believes constitutes
      material non-public information at the time it is provided, unless prior thereto
      the Subscriber shall have entered into an agreement regarding the
      confidentiality and use of such information. The Company understands and
      acknowledges that the Subscriber will rely on the foregoing covenant in
      effecting transactions in securities of the Company.

    

    3.25     Environmental
      Laws. 
      The Company (i) is in compliance with any and all Environmental Laws (as
      hereinafter defined), (ii) has received all permits, licenses or other approvals
      required of it under applicable Environmental Laws to conduct its business
      and
      (iii) is in compliance with all terms and conditions of any such permit, license
      or approval where, in each of the foregoing clauses (i), (ii) and (iii), the
      failure to so comply would reasonably be expected to have, individually or
      in
      the aggregate, a Material Adverse Effect.  The term “Environmental
      Laws”
means
      all federal, state, local or foreign laws relating to pollution or protection
      of
      human health or the environment (including, without limitation, ambient air,
      surface water, groundwater, land surface or subsurface strata), including,
      without limitation, laws relating to emissions, discharges, releases or
      threatened releases of chemicals, pollutants, contaminants, or toxic or
      hazardous substances or wastes (collectively, “Hazardous
      Materials”)
      into
      the environment, or otherwise relating to the manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling of
      Hazardous Materials, as well as all authorizations, codes, decrees, demands
      or
      demand letters, injunctions, judgments, licenses, notices or notice letters,
      orders, permits, plans or regulations issued, entered, promulgated or approved
      thereunder.

    

    3.26     Employee
      Relations; Employee Benefit Plans.
      The
      Company is not a party to any collective bargaining agreement and does not
      employ any member of a union.  The Company believes that its relations with
      its employees are satisfactory.  No executive officer of the Company (as
      defined in Rule 501(f) of the Securities Act) has notified the Company that
      such
      officer intends to leave the Company or otherwise terminate such officer's
      employment with the Company. The Company is in compliance with all federal,
      state, local and foreign laws and regulations respecting employment and
      employment practices, terms and conditions of employment and wages and hours,
      except where failure to be in compliance would not, either individually or
      in
      the aggregate, reasonably be expected to result in a Material Adverse
      Effect.  Except as disclosed in the Memorandum, the Company does not
      maintain any compensation or benefit plan, agreement, arrangement or commitment
      (including, but not limited to, “employee benefit plans”, as defined in Section
      3(3) of the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”))
      for
      any present or former employees, officers or directors of the Company or with
      respect to which the Company has liability or makes or has an obligation to
      make
      contributions, other than any such plans, agreements, arrangements or
      commitments made generally available to the Company’s
      employees.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    3.27     Form
      of Subscription Agreement.
      Each
      Subscriber purchasing Shares and Warrants in the Offering has or will execute
      a
      Subscription Agreement substantially similar to this Agreement;
      provided, however,
      that
      Warrants to be issued to certain Subscribers may contain, at the request of
      such
      Subscribers, a provision limiting the number of shares of Common Stock issuable
      upon exercise of such Warrants to prevent such Subscribers from acquiring more
      than a specific percentage (e.g., 4.99% or 9.99%) of the Company’s Common Stock
      outstanding immediately after giving effect to such exercise.

    

    3.28    No
      Material Adverse Change.
      Since
      the date of the latest audited financial statements included within the current
      or periodic reports of the Company filed with the SEC, the “Securities
      s Law Reports”),
      except as specifically disclosed in the Securities Law Reports or the
      Memorandum: (i) there has been no event, occurrence or development that has
      had
      a Material Adverse Effect; (ii) the Company has not incurred any liabilities
      (contingent or otherwise) other than (A) trade payables and accrued expenses
      incurred in the ordinary course of business consistent with past practice and
      (B) liabilities not required to be reflected in the Company’s financial
      statements pursuant to GAAP or required to be disclosed in filings made with
      the
      regulatory authorities; (iii) the Company has not altered its method of
      accounting; (iv) the Company has not declared or made any dividend or
      distribution of cash or other property to its stockholder or purchased, redeemed
      or made any agreements to purchase or redeem any shares of its capital stock;
      and (v) the Company has not issued any equity securities to any officer,
      director or Affiliate, except pursuant to existing Company equity incentive
      plans. The Company does not have pending before any regulatory authorities
      any
      request for confidential treatment of information.

    

    3.29    Disclosure.
      All
      disclosure provided to the Subscriber regarding the Company, its business and
      the transactions contemplated hereby, or furnished by or on behalf of the
      Company with respect to the representations and warranties made herein, are
      true
      and correct in all material respects with respect to such representations and
      warranties and do not contain any untrue statement of a material fact or omit
      to
      state any material fact necessary in order to make the statements made therein,
      in light of the circumstances under which they were made, and when taken as
      a
      whole, not misleading. The Company acknowledges and agrees that the Subscriber
      makes no representations or warranties with respect to the transactions
      contemplated hereby other than those specifically set forth in this
      Agreement.

    

    
      	4.	 	
              CONDITIONS
                TO OBLIGATIONS OF EACH PARTY.

            

    

    

    4.1 
         Conditions
      to Obligations of the Company.
      The
      Company’s obligation to complete the sale and issuance of the Securities and
      deliver the Shares and Warrants to the Subscriber at a Closing is subject to
      the
      fulfillment on or prior to such Closing of the following conditions, which
      conditions may be waived at the option of the Company to the extent permitted
      by
      law:

    

    (a)   
 Representations
      and Warranties Correct.
      The
      representations and warranties made by the Subscriber in Article 2 hereof shall
      be true and correct when made, and shall be true and correct on and as of the
      Closing Date as if made on and as of the Closing Date (except for any
      representation or warranty that speaks as of a specific date, which shall be
      true and correct as of such date).

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    (b)     Covenants.
      All
      covenants, agreements and conditions contained in this Agreement to be performed
      by the Subscriber on or prior to such sale and issuance shall have been
      performed or complied with in all material respects.

    

    (c)     No
      Legal Order Pending.
      There
      shall not then be in effect any legal or other order enjoining or restraining
      the transactions contemplated by this Agreement.

    

    (d)  No
      Law
      Prohibiting or Restricting Such Sale.
      There
      shall not be in effect any law, rule or regulation prohibiting or restricting
      the issuance and sale of the Securities or requiring any consent or approval
      of
      any Person which shall not have been obtained to issue or sell the Securities,
      or in either case to otherwise consummate the transactions contemplated hereby
      (except as otherwise provided in this Agreement).

    

    (e)  Payment
      of Consideration.
      The
      Company shall have received the full amount of the Aggregate Purchase Price
      for
      the Securities being purchased hereunder at such Closing.

    

    (f)  Questionnaires.
      The
      Subscriber shall have completed, executed and delivered to the Company the
      Confidential Investor Questionnaire and the Registration Questionnaire, which
      questionnaires shall be true and correct as of such Closing and shall be
      satisfactory to the Placement Agents and the Company, each in their sole
      discretion.

    

    (g)  Minimum
      Offering Amount.
      The
      Company shall have received duly executed subscriptions and corresponding
      readily available funds concurrently with this Closing from Subscribers
      executing Subscription Agreements substantially similar to this Agreement
      (except as otherwise contemplated by Section 3.27) equal to or in excess of
      the
      Minimum Offering Amount.

    

    4.2     The
      Subscriber’s obligation to purchase the Securities at a Closing is subject to
      the fulfillment on or prior to such Closing of the following conditions, which
      conditions may be waived at the option of each Subscriber to the extent
      permitted by law:

    

    (a)     Representations
      and Warranties Correct.
      The
      representations and warranties made by the Company in Article 3 hereof shall
      be
      true and correct when made, and shall be true and correct on and as of the
      Closing Date (except for any representation or warranty that speaks as of a
      specific date, which shall be true and correct as of such date).

    

    (b)     Covenants.
      All
      covenants, agreements and conditions contained in this Agreement to be performed
      by the Company on or prior to such purchase shall have been performed or
      complied with in all material respects.

    

    (c)    
No
      Legal Order Pending.
      There
      shall not then be in effect any legal or other order enjoining or restraining
      the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    (d)  No
      Law
      Prohibiting or Restricting Such Sale.
      There
      shall not be in effect any law, rule or regulation prohibiting or restricting
      the issuance and sale of the Securities or requiring any consent or approval
      of
      any Person which shall not have been obtained to issue or sell the Securities,
      or in either case to otherwise consummate the transactions contemplated hereby
      (except as otherwise provided in this Agreement).

    

    (e)  Minimum
      Offering.
      The
      Company shall have received duly executed subscriptions and corresponding
      readily available funds concurrently with this Closing from Subscribers
      executing Subscription Agreements substantially similar to this Agreement
      (except as otherwise contemplated by Section 3.27) equal to or in excess of
      the
      Minimum Offering Amount.

    

    (f)  Legal
      Opinion.
      The
      Placement Agent shall have received, on behalf of the Subscribers, an opinion
      of
      counsel to the Company, in substantially the form attached hereto as
Appendix
      B.

    

    
      	5.	
              REGISTRATION
                RIGHTS.

            

    

    

    5.1 As
      used
      in this Agreement, the following terms shall have the following
      meanings:

    

    (a) “Affiliate”
shall
      mean, with respect to any Person (as defined below), any other Person
      controlling, controlled by or under direct or indirect common control with
      such
      Person (for the purposes of this definition “control,” when used with respect to
      any specified Person, shall mean the power to direct the management and policies
      of such Person, directly or indirectly, whether through ownership of voting
      securities, by contract or otherwise; and the terms “controlling” and
“controlled” shall have meanings correlative to the foregoing).

    

    (b) “Business
      Day”
shall
      mean a day Monday through Friday on which banks are generally open for business
      in New York, New York.

    

    (c) “Holders”
shall
      mean the Subscribers and any Person holding Registrable Securities or any Person
      to whom the rights under Article 5 have been transferred in accordance with
      Section 5.10 hereof.

    

    (d) “Person”
shall
      mean any person, individual, corporation, limited liability company,
      partnership, trust or other nongovernmental entity or any governmental agency,
      court, authority or other body (whether foreign, federal, state, local or
      otherwise).

    

    (e) The
      terms
“register,”
      “registered”
and
      “registration”
refer
      to the registration effected by preparing and filing a registration statement
      in
      compliance with the Securities Act, and the declaration or ordering of the
      effectiveness of such registration statement under the Securities
      Act.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    (f) “Registrable
      Securities”
shall
      mean the Shares, the Warrant Shares and the Placement Warrant Shares and any
      shares of Common Stock issued as a dividend or distribution with respect to
      or
      in replacement of the Common Stock issued, directly or indirectly, in connection
      with this Offering; provided,
      however,
      that
      such securities shall only be treated as Registrable Securities if and only
      for
      so long as (i) they have not been sold (A) pursuant to a registration statement;
      and/or (B) in a transaction exempt from the registration and prospectus delivery
      requirements of the Securities Act under Section 4(1) thereof, including without
      limitation pursuant to Rule 144 (or any successor thereto) under the Securities
      Act, so that all transfer restrictions and restrictive legends with respect
      thereto, if any, are removed upon the consummation of such sale; (ii) they
      are
      held by a Holder or a permitted transferee; or (iii) all such securities held
      by
      a Holder (or permitted transferee) may not be sold by such Holder (or permitted
      transferee) without regard to volume limitations pursuant to Rule 144(k) (or
      any
      successor thereto) under the Securities Act. 

    

     
        (g) “Registration
      Expenses”
shall
      mean all expenses incurred by the Company in complying with Section 5.2 hereof,
      including, without limitation, all registration, qualification and filing fees,
      printing expenses, escrow fees, fees and expenses of counsel for the Company,
      blue sky fees and expenses and the expense of any special audits incident to
      or
      required by any such registration (but excluding the fees of legal counsel
      for
      any Holder).

    

       
      (h) “Selling
      Expenses”
shall
      mean all underwriting discounts and selling commissions applicable to the sale
      of Registrable Securities, if any, and, except to the extent set forth in the
      definition of Registration Expenses, all fees and expenses of legal counsel
      for
      any Holder.

    

    5.2     (a)
      Subject to the terms, conditions and limitations set forth herein, the Company
      will use its best efforts to (a) file a registration statement with the SEC
      on
      the
      appropriate form (the
      “Registration
      Statement”)
      within
      30 days following the Closing Date (the end of such 30-day period, the
“Outside
      Filing Date”;
      and
      the date such Registration Statement is filed, the “Filing
      Date”)
      to
      allow the resale of the Registrable Securities under the Securities Act, and
      use
      its reasonable commercial efforts to have such Registration Statement declared
      effective by the SEC prior to the date which is 120 days after the Closing
      Date
      (the “Registration
      Effective Date”);
      and
      (b) use its reasonable commercial efforts to cause such Registration Statement
      to remain effective (the “Registration
      Period”)
      until
      the earliest of (i) the date on which the Subscriber may sell all of the Shares
      and the Warrant Shares then held by the Subscriber pursuant to Rule 144(k)
      of
      the Securities Act without regard to volume restrictions; and (ii) such time
      as
      all Securities held by the Subscriber and registered under the Registration
      Statement have been sold (A) pursuant to a registration statement; and/or (B)
      in
      a transaction exempt from the registration and prospectus delivery requirements
      of the Securities Act under Section 4(1) thereof, including without limitation
      pursuant to Rule 144 (or any successor thereto) under the Securities Act, so
      that all transfer restrictions and restrictive legends with respect thereto,
      if
      any, are removed upon the consummation of such sale. To the extent permissible,
      such Registration Statement also shall include, or subsequently be amended
      to
      include, to the extent allowable under the Securities Act and the rules
      promulgated thereunder (including Rule 416 under the Securities Act), such
      indeterminate number of additional shares of Common Stock resulting from stock
      splits, stock dividends or similar transactions with respect to the Registrable
      Securities. 

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (b) In
      the
      event the Company has not filed the Registration Statement by the Filing Date,
      then the Company shall make compensatory payments to the Holder in an amount
      equal to one percent (1%) of the aggregate Offering Price paid by the Holder
      for
      the Shares for each monthly period thereafter (or prorated portion thereof)
      in
      which the Registration Statement remains unfiled. The Company shall make any
      such payment to the Holder by check or wire transfer within five (5) business
      days after the earlier of the end of each monthly period following the Outside
      Filing Date or Filing Date, as applicable. Notwithstanding anything to the
      contrary contained herein, in no event shall any amount owed by the Company
      to
      any Subscriber pursuant to this Section 5.2(b) exceed ten percent (10%) of
      the
      Aggregate Purchase Price paid by such Subscriber.

    

    5.3     All
      Registration Expenses incurred in connection with any registration,
      qualification, exemption or compliance pursuant to Section 5.2 shall be borne
      by
      the Company. All Selling Expenses relating to the sale of securities registered
      by or on behalf of Holders shall be borne by such Holders.

    

    5.4     In
      the
      case of the registration, qualification, exemption or compliance effected by
      the
      Company pursuant to this Agreement, the Company shall, upon reasonable request,
      inform each Holder as to the status of such registration, qualification,
      exemption and compliance. At its expense the Company shall: 

    

    (a) use
      commercially reasonable efforts to keep such registration, and any
      qualification, exemption or compliance under state or federal securities laws
      which the Company determines to obtain, continuously effective until the
      termination of the Registration Period; 

    

    (b) advise
      the Holders as soon as reasonably practicable:

    

    (i) when
      the
      Registration Statement or any amendment thereto has been filed with the SEC
      and
      when the Registration Statement or any post-effective amendment thereto has
      become effective;

    

    (ii) of
      the
      issuance by the SEC of any stop order suspending the effectiveness of the
      Registration Statement or the initiation of any proceedings for such
      purpose;

    

    (iv) of
      the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification of the Registrable Securities included therein for sale in any
      jurisdiction or the initiation or threatening of any proceeding for such
      purpose; and

    

    (v) of
      the
      happening of any event that requires the making of any changes in the
      Registration Statement or the prospectus so that, as of such date, the
      statements therein are not misleading and do not omit to state a material fact
      required to be stated therein or necessary to make the statements therein (in
      the case of the prospectus, in the light of the circumstances under which they
      were made) not misleading (which notice will be accompanied by an instruction
      to
      suspend the use of the prospectus until such changes have been
      made);

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    (c) make
      every reasonable effort to obtain the withdrawal of any order suspending the
      effectiveness of any Registration Statement at the earliest possible
      time;

    

    (d) notify
      each Holder promptly of a pending proceeding against the Company under Section
      8A of the Securities Act in connection with the offering of the Registrable
      Securities.

    

    (e) furnish
      to each Holder, without charge, at least one copy of such Registration Statement
      and any post-effective amendment thereto, including financial statements and
      schedules, and, if the Holder so requests in writing, all exhibits (including
      those incorporated by reference) in the form filed with the SEC;

    

    (f) during
      the Registration Period, deliver to each Holder, without charge, as many copies
      of the prospectus included in such Registration Statement and any amendment
      or
      supplement thereto as such Holder may reasonably request; and the Company
      consents to the use, consistent with the provisions hereof, of the prospectus
      or
      any amendment or supplement thereto by each of the selling Holders of
      Registrable Securities in connection with the offering and sale of the
      Registrable Securities covered by the prospectus or any amendment or supplement
      thereto;

    

    (g) prior
      to
      any public offering of Registrable Securities pursuant to the Registration
      Statement, register or qualify or obtain an exemption for offer and sale under
      the securities or blue sky laws of such jurisdictions as any such Holders
      reasonably request in writing, provided that the Company shall not for any
      such
      purpose be required to qualify generally to transact business as a foreign
      corporation in any jurisdiction where it is not so qualified or to consent
      to
      general service of process in any such jurisdiction, and do any and all other
      acts or things reasonably necessary or advisable to enable the offer and sale
      in
      such jurisdictions of the Registrable Securities covered by such Registration
      Statement in the sole discretion of the Company;

    

    (h) to
      the
      extent permitted under applicable rules and regulations promulgated under the
      Securities Act, cooperate with the Holders to facilitate the timely preparation
      and delivery of certificates representing Registrable Securities to be sold
      pursuant to any Registration Statement free of any restrictive legends to the
      extent not required at such time and in such denominations and registered in
      such names as Holders may request at least five (5) Business Days prior to
      sales
      of Registrable Securities pursuant to such Registration
      Statement;

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    (i) upon
      the
      occurrence of any event contemplated by Section 5.4(b)(v) above, the Company
      shall promptly prepare a post-effective amendment to the Registration Statement
      or a supplement to the related prospectus, or file any other required document
      so that, as thereafter promptly delivered to purchasers of the Registrable
      Securities included therein, the prospectus will not include any untrue
      statement of a material fact or omit to state any material fact necessary to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading;

    

    (j) use
      commercially reasonable efforts to comply with all applicable rules and
      regulations of the SEC, and use commercially reasonable efforts to make
      generally available to its security holders not later than 45 days (or 90 days
      if the fiscal quarter is the fourth fiscal quarter) after the end of its fiscal
      quarter in which the first anniversary date of the effective date of the
      Registration Statement occurs, an earnings statement satisfying the provisions
      of Section 11(a) of the Securities Act; and

    

    (k) file
      each
      Registration Statement and any amendments and/or supplements thereto
      electronically on EDGAR.

    

    Notwithstanding
      the foregoing, it shall be a condition precedent to the obligations of the
      Company to take any action pursuant to paragraphs (a) through (k) of this
      Section 5.4, that the Holder shall furnish to the Company such information
      regarding itself, the Securities to be sold by the Holder and the intended
      method of disposition of such Securities as shall be required to effect the
      registration of the Securities, all of which information shall be furnished
      to
      the Company in writing specifically for use in the Registration
      Statement.

    

    5.5     The
      Holders shall have no right to take any action to restrain, enjoin or otherwise
      delay any registration pursuant to Section 5.2 hereof as a result of any
      controversy that may arise with respect to the interpretation or implementation
      of this Agreement. 

    

    5.6    
 (a) To
      the
      extent permitted by law, the Company shall indemnify each Holder with respect
      to
      (i) any registration, qualification or compliance has been effected pursuant
      to
      this Agreement, against all claims, losses, damages and liabilities (or actions
      in respect thereof), including any of the foregoing incurred in settlement
      of
      any litigation, commenced or threatened (subject to Section 5.6(c) below),
      arising out of or based on any untrue statement (or alleged untrue statement)
      of
      a material fact contained in the Registration Statement, or any amendment or
      supplement thereof, incident to any such registration, qualification or
      compliance, or based on any omission (or alleged omission) to state therein
      a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, in light of the circumstances in which they were made,
      (ii) any violation or alleged violation by the Company of the Securities Act,
      the Exchange Act, or any rule or regulation promulgated under the Securities
      Act, or the Exchange Act, and will reimburse each Holder for reasonable legal
      and other expenses reasonably incurred in connection with investigating or
      defending any such claim, loss, damage, liability or action as incurred, or
      (iii) claims, losses, damages and liabilities (or actions in respect thereof),
      including any of the foregoing incurred in settlement of any litigation,
      commenced or threatened (subject to Section 5.6(c) below), arising out of or
      based on a breach by the Company of its obligations under Section 5.4(b) or
      5.4(d) of this Agreement; provided,
      that
      the Company will not be liable in any such case to the extent that any such
      claim, loss, damage, liability or action arises out of, relates to or is based
      upon: (i) any untrue statement or omission or allegation thereof is made in
      reliance upon and in strict conformity with written information furnished to
      the
      Company by or on behalf of such Holder and stated to be specifically for use
      in
      preparation of such Registration Statement, prospectus or offering circular;
      or
      (ii) the failure of the Holder to comply with the covenants and agreements
      contained in this Agreement respecting sales of Registrable Securities.
      Notwithstanding the foregoing, the Company will not be liable in any such case
      where the claim, loss, damage, liability or action arises out of or is related
      to the failure of the Holder to comply with the covenants and agreements
      contained in this Agreement respecting sales of Registrable Securities, and
      except that the foregoing indemnity agreement is subject to the condition that,
      insofar as it relates primarily to any such untrue statement or alleged untrue
      statement or omission or alleged omission made in the preliminary prospectus
      but
      eliminated or remedied in the amended prospectus on file with the SEC at the
      time the Registration Statement becomes effective or in the amended prospectus
      filed with the Commission pursuant to Rule 424(b) or in the prospectus subject
      to completion under Rule 434 promulgated under the Securities Act, which
      together meet the requirements of Section 10(a) of the Securities Act (the
      “Final
      Prospectus”),
      such
      indemnity agreement shall not inure to the benefit of any such Holder, any
      such
      underwriter or any such controlling Person, if a copy of the Final Prospectus
      furnished by the Company to the Holder for delivery was not furnished by the
      Holder to the Person or entity asserting the loss, liability, claim, damage
      or
      at or prior to the time such furnishing is required by the Securities Act and
      the Final Prospectus would have cured the defect giving rise to such loss,
      liability, claim, damage or action.

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    (b) Each
      Holder will severally, and not jointly, if Registrable Securities held by such
      Holder are included in the securities as to which such registration,
      qualification or compliance is being effected, indemnify the Company, each
      of
      its directors and officers, each underwriter of the Registrable Securities
      and
      each Person who controls the Company within the meaning of Section 15 of the
      Securities Act, against all claims, losses, damages and liabilities (or actions
      in respect thereof), including any of the foregoing incurred in settlement
      of
      any litigation, commenced or threatened (subject to Section 5.6(c) below)
      (“Losses”),
      arising out of or based on any untrue statement (or alleged untrue statement)
      of
      a material fact contained in any registration statement, prospectus or offering
      circular, or any amendment or supplement thereof, incident to any such
      registration, qualification or compliance, or based on any omission (or alleged
      omission) to state therein a material fact required to be stated therein or
      necessary to make the statements therein not misleading, in light of the
      circumstances in which they were made, and will reimburse the Company, such
      directors and officers, each underwriter of the Registrable Securities and
      each
      Person controlling the Company for reasonable legal and any other expenses
      reasonably incurred in connection with investigating or defending any such
      claim, loss, damage, liability or action as incurred, in each case to the
      extent, but only to the extent, that such untrue statement or omission or
      allegation thereof is made in reliance upon and in strict conformity with
      written information furnished to the Company by or on behalf of the Holder
      and
      stated to be specifically for use in preparation of such registration statement,
      prospectus or offering circular. Notwithstanding the foregoing, (i) in no event
      shall a Holder be liable for any such claims, losses, damages or liabilities
      in
      excess of the net proceeds received by such Holder in the offering, except
      in
      the event of fraud or intentional misrepresentation by such Holder, and (ii)
      there shall be no indemnity obligation hereunder to the extent that Losses
      are
      the result of the fraud, bad faith, willful misconduct or gross negligence
      of
      the Company.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    (c) Each
      party entitled to indemnification under this Section 5.6 (the “Indemnified
      Party”)
      shall
      give notice to the party required to provide indemnification (the “Indemnifying
      Party”)
      promptly after such Indemnified Party has actual knowledge of any claim as
      to
      which indemnity may be sought, and shall permit the Indemnifying Party to assume
      the defense of any such claim or any litigation resulting therefrom, provided
      that counsel for the Indemnifying Party, who shall conduct the defense of such
      claim or litigation, shall be approved by the Indemnified Party (whose approval
      shall not unreasonably be withheld), and the Indemnified Party may participate
      in such defense at such Indemnified Party’s expense, and provided further that
      the failure of any Indemnified Party to give notice as provided herein shall
      not
      relieve the Indemnifying Party of its obligations under this Agreement, unless
      such failure is materially prejudicial to the Indemnifying Party in defending
      such claim or litigation. An Indemnifying Party shall not be liable for any
      settlement of an action or claim effected without its written consent (which
      consent will not be unreasonably withheld).

    

    (d) If
      the
      indemnification provided for in this Section 5.6 is held by a court of competent
      jurisdiction to be unavailable to an Indemnified Party with respect to any
      loss,
      liability, claim, damage or expense referred to therein, then the Indemnifying
      Party, in lieu of indemnifying such Indemnified Party thereunder, shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of such loss, liability, claim, damage or expense in such proportion as is
      appropriate to reflect the relative fault of the Indemnifying Party on the
      one
      hand and of the Indemnified Party on the other in connection with the statements
      or omissions which resulted in such loss, liability, claim, damage or expense
      as
      well as any other relevant equitable considerations. The relative fault of
      the
      Indemnifying Party and of the Indemnified Party shall be determined by reference
      to, among other things, whether the untrue or alleged untrue statement of a
      material fact or the omission to state a material fact relates to information
      supplied by the Indemnifying Party or by the Indemnified Party and the parties’
relative intent, knowledge, access to information and opportunity to correct
      or
      prevent such statement or omission. The Company and the Holders agree that
      it
      would not be just and equitable if contribution pursuant to this Section 5.6(d)
      was based solely upon the number of entities from whom contribution was
      requested or by any other method of allocation which does not take account
      of
      the equitable considerations referred to above in this Section 5.6(d). The
      amount paid or payable by an Indemnified Party as a result of the losses,
      claims, damages and liabilities (or actions in respect thereof) referred to
      above in this Section 5.6(d) shall be deemed to include any legal or other
      expenses reasonably incurred by such Indemnified Party in connection with
      investigating or defending any such action or claim, subject to the provisions
      of Section 5.6(d) hereof. The parties agree that it would not be just and
      equitable if contributions pursuant to this Section 5.6 were determined by
      pro
      rata allocation or by any other method of allocation which does not take account
      of the equitable considerations as set forth in this Section 5.6.
      Notwithstanding the provisions of this Section 5.6(d), in no event shall a
      Holder be required to contribute any amount or make any other payments under
      this Agreement which in the aggregate exceed the net proceeds received by such
      Holder from the sale of Registrable Securities covered by such Registration
      Statement. No Person guilty of fraudulent misrepresentation (within the meaning
      of the Securities Act) shall be entitled to contribution from any Person who
      was
      not guilty of such fraudulent misrepresentation.

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    5.7     Each
      Subscriber agrees that it will 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. Each Subscriber
      further agrees that, upon receipt of a notice from the Company of the occurrence
      of any event of the kind described in Section 5.4(b), such Subscriber will
      discontinue disposition of such Registrable Securities under the Registration
      Statement until such Subscriber’s receipt of the copies of the supplemented
      prospectus and/or amended Registration Statement contemplated by Section 5.4(i),
      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. The
      Company may provide appropriate stop orders to enforce the provisions of this
      paragraph.

    

    5.8    
 (a) Each
      Holder agrees that, upon receipt of any notice from the Company of (i)
the
      need
      for an amendment or supplement to the Registration Statement or the prospectus
      forming a part thereof, (ii) that the Board of Directors has determined in
      good
      faith that offers and sales pursuant to the prospectus forming part of the
      Registration Statement should not be made by reason of the presence of material
      undisclosed circumstances or developments with respect to which the disclosure
      that would be required in the Registration Statement would be premature or
      would
      have a Material Adverse Effect or (iii) in
      connection with a primary underwritten offering of equity securities of the
      Company,
      each
      Holder will forthwith discontinue disposition of Registrable Securities pursuant
      to the Registration Statement contemplated by Section 5.2 until its receipt
      of
      copies of the supplemented or amended prospectus from the Company or
      confirmation of the filing of such report with the SEC by the Company, any
      such
      prospectus to be forwarded promptly to the Holder by the Company, and, if so
      directed by the Company, each Holder shall deliver to the Company all copies,
      other than permanent file copies then in such Holder’s possession, of the
      prospectus covering such Registrable Securities current at the time of receipt
      of such notice; provided,
      that
      the Company, may suspend the disposition of Registrable Securities pursuant
      to
      the Registration Statement pursuant to clause (ii) above not more
      than
      one time (not to exceed 30 days) during any
      three
      month period, nor
      more
      than two times (not to exceed 30 days each) in any twelve-month period.

    

    (b) As
      a
      condition to the inclusion of its Registrable Securities, each Holder shall
      furnish to the Company such information regarding such Holder and the
      distribution proposed by such Holder as the Company may reasonably request
      in
      writing or as shall be required in connection with any registration,
      qualification or compliance referred to in this Article 5, including the
      information required by the Registration Questionnaire.

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

    (c) Each
      Holder hereby covenants with the Company not to make any sale of the Registrable
      Securities without effectively causing the prospectus delivery requirements
      under the Securities Act to be satisfied.

    

    (d) Each
      Holder acknowledges and agrees that the Registrable Securities sold pursuant
      to
      the Registration Statement described in this Section are not transferable on
      the
      books of the Company unless the stock certificate submitted to the transfer
      agent evidencing such Registrable Securities is accompanied by a certificate
      reasonably satisfactory to the Company to the effect that (i) the
      Registrable Securities have been sold in accordance with such Registration
      Statement and (ii) the requirement of delivering a current prospectus has
      been satisfied, or, if relying on Rule 172 of the Securities Act, that the
      Holder has confirmed the availability of the exemption from the prospectus
      delivery requirement provided by Rule 172 of the Securities Act.

    

    (e) Each
      Holder agrees not to take any action with respect to any distribution deemed
      to
      be made pursuant to such registration statement which would constitute a
      violation of Regulation M under the Exchange Act or any other applicable rule,
      regulation or law. 

    

    (f) At
      the
      end of the period during which the Company is obligated to keep the Registration
      Statement current and effective as described above, the Holders of Registrable
      Securities included in the Registration Statement shall discontinue sales of
      shares pursuant to such Registration Statement upon receipt of notice from
      the
      Company of its intention to remove from registration the shares covered by
      such
      Registration Statement which remain unsold, and such Holders shall notify the
      Company of the number of shares registered which remain unsold immediately
      upon
      receipt of such notice from the Company.

    

    5.9    
 With
      a
      view to making available to the Holders the benefits of certain rules and
      regulations of the SEC that at any time permit the sale of the Registrable
      Securities to the public without registration, the Company shall use
      commercially reasonable efforts to:

    

    (a) make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144 under the Securities Act, at all times;

    

    (b) file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the Exchange Act; and 

    

    (c) so
      long
      as a Holder owns any unregistered Registrable Securities, furnish to such
      Holder, upon any reasonable request, a written statement by the Company as
      to
      its compliance with Rule 144 under the Securities Act, and of the Exchange
      Act, a copy of the most recent annual or quarterly report of the Company, and
      such other reports and documents of the Company as such Holder may reasonably
      request in availing itself of any rule or regulation of the SEC allowing a
      Holder to sell any such securities without registration.

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

    5.10    The
      right
      to cause the Company to register Registrable Securities granted to the Holders
      by the Company under Section 5.2 may be assigned in full by a Holder in
      connection with a transfer by such Holder of its Registrable Securities
      (including, without limitation, an assignment in connection with the
      distribution of Registrable Securities to a Holder’s partners, members and other
      beneficial owners), but only if: (i) such transfer may otherwise be effected
      in
      accordance with applicable securities laws; (ii) such Holder gives prior written
      notice of the proposed transfer to the Company including the name and address
      of
      such transferee and a copy of the transfer documents and agreements; (iii)
      such
      transferee agrees in writing with the Company to be bound by and comply with
      the
      terms and provisions of this Agreement; (iv) the transferee is an “accredited
      investor” as that term is defined in Rule 501(a) of Regulation D; and (v) such
      transfer is otherwise in compliance with this Agreement. Except as specifically
      permitted by this Section 5.10, the rights of a Holder with respect to
      Registrable Securities as set out herein shall not be transferable to any other
      Person, the Company may impose stop transfer orders with respect to any such
      transfer or attempted transfer, and any such transfer or attempted transfer
      shall be null and void. 

    

    5.11    The
      Company shall cause all Registrable Securities covered by a Registration
      Statement to be listed on each securities exchange, interdealer quotation system
      or other market on which similar securities issued by the Company are then
      listed.

    

    5.12    With
      the
      written consent of the Company and the Holders holding at least two-thirds
      of
      the Registrable Securities that are then outstanding, any provision of this
      Article 5 may be waived (either generally or in a particular instance, either
      retroactively or prospectively and either for a specified period of time or
      indefinitely) or amended. Upon the effectuation of each such waiver or
      amendment, the Company shall promptly give written notice thereof to the
      Holders, if any, who have not previously received notice thereof or consented
      thereto in writing.

    

    
      	6.	
              MISCELLANEOUS.

            

    

    

    6.1     
      The
      Company and the Placement Agents reserve the right to reject the subscription
      made hereby in whole or in part in each of their sole discretion. Unless
      terminated earlier in the Placement Agents’ or the Company’s sole discretion,
      the Offering will expire on April 30, 2006, (as such date may be extended by
      agreement of the Placement Agents and the Company in their sole discretion
      without notice to the Subscribers for an additional 30 days the “Termination
      Date”),
      if
      the conditions to Closing set forth in Article 4 have not been satisfied or
      waived by such time.

    

    6.2     
      The
      Company’s agreement with each Subscriber is a separate agreement and each sale
      of the Securities to each Subscriber is a separate sale.

    

    6.3 
          All
      notices, requests and other communications under this Agreement shall be in
      writing, and shall be sufficiently given if delivered to the addressees in
      person or by recognized overnight courier, mailed by certified or registered
      mail, return receipt requested, or by facsimile or e-mail transmission, as
      follows:

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

      
        	
                If
                  to the Company:

              	
                ZIOPHARM
                  Oncology, Inc.

                1180
                  Avenue of the Americas

                19th
                  Floor

                New
                  York, New York 10036

                Facsimile:
                  (617) 241-2855

                Attn:
                  Chief Executive Officer

              
	 	 
	
                With
                  a copy to:

              	
                Maslon
                  Edelman Borman & Brand, LLP

                3300
                  Wells Fargo Center

                90
                  South 7th Street

                Minneapolis,
                  Minnesota 55402

                Facsimile:
                  (612) 642-8381

                Attn:
                  Alan M. Gilbert, Esq.

              

      

      
        
 

      

    

    If
      to a
      Subscriber, at such address as such Subscriber shall have provided in writing
      to
      the Company or such other addresses as such Subscriber furnishes by notice
      given
      in accordance with this Section 7.1 or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person. 

    

    6.4     Except
      as
      provided in Section 5.12 above, this Agreement shall not be changed, modified
      or
      amended except by a writing signed by the parties to be charged, and this
      Agreement may not be discharged except by performance in accordance with its
      terms or by a writing signed by the party to be charged.

    

    6.5    
 Subject
      to the provisions of Section 5.10, this Agreement shall be binding upon and
      inure to the benefit of the parties hereto and to their respective heirs, legal
      representatives, successors and permitted assigns. This Agreement sets forth
      the
      entire agreement and understanding between the parties as to the subject matter
      hereof and merges and supersedes all prior discussions, agreements and
      understandings of any and every nature between them.

    

    6.6     Upon
      the
      execution and delivery of this Agreement by the Subscriber, this Agreement
      shall
      become a binding obligation of the Subscriber with respect to the purchase
      of
      the Securities as herein provided; subject, however, to the right hereby
      reserved to the Company and the Placement Agents to reject this subscription
      in
      accordance with Section 2.16, enter into the same agreements with other
      subscribers and to add and/or delete other Persons as subscribers. 

    

    6.7     Notwithstanding
      the place where this Agreement may be executed by any of the parties hereto,
      the
      parties expressly agree that all the terms and provisions hereof shall be
      construed in accordance with and governed by the laws of the State of New York
      without regard to principles of conflicts of law.

    

    6.8     The
      holding of any provision of this Agreement to be invalid or unenforceable by
      a
      court of competent jurisdiction shall not affect any other provision of this
      Agreement, which shall remain in full force and effect. If any provision of
      this
      Agreement shall be declared by a court of competent jurisdiction to be invalid,
      illegal or incapable of being enforced in whole or in part, such provision
      shall
      be interpreted so as to remain enforceable to the maximum extent permissible
      consistent with applicable law and the remaining conditions and provisions
      or
      portions thereof shall nevertheless remain in full force and effect and
      enforceable to the extent they are valid, legal and enforceable, and no
      provisions shall be deemed dependent upon any other covenant or provision unless
      so expressed herein.

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    

    6.9     It
      is
      agreed that a waiver by either party of a breach of any provision of this
      Agreement shall not operate, or be construed, as a waiver of any subsequent
      breach by that same party.

    

    6.10       The
      parties agree to execute and deliver all such further documents, agreements
      and
      instruments and take such other and further action as may be necessary or
      appropriate to carry out the purposes and intent of this Agreement.

    

    6.11    This
      Agreement may be executed in two or more counterparts each of which shall be
      deemed an original, but all of which shall together constitute one and the
      same
      instrument.

    

    6.12    (a) The
      Subscriber agrees not to issue any public statement with respect to the
      Subscriber’s investment or proposed investment in the Company or the terms of
      any agreement or covenant between them and the Company without the Company’s
      prior written consent, except such disclosures as may be required under
      applicable law or under any applicable order, rule or regulation.

    

    (b) The
      Company agrees not to disclose the names, addresses or any other information
      about the Subscriber, except as required by law or court order and to satisfy
      its obligations under Article 5.

    

    6.13    The
      Subscriber represents and warrants that it has neither engaged, consented to
      nor
      authorized any broker, finder or intermediary to act on its behalf, directly
      or
      indirectly, as a broker, finder or intermediary in connection with the
      transactions contemplated by this Agreement (other than the Placement Agents).
      The Subscriber hereby agrees to indemnify and hold harmless the Company from
      and
      against all fees, commissions or other payments owing to any such Person (other
      than the Placement Agents) acting on behalf of the Subscriber
      hereunder.

    

    6.14    This
      Agreement (including all exhibits, schedules and amendments hereto) (i)
      constitutes the entire Agreement and understandings of the parties hereto and
      supersedes all prior agreements and understandings, both written and oral,
      between the parties hereto with respect to the subject matter hereof and (ii)
      is
      not intended to confer upon any other Person other than the parties hereto
      any
      rights or remedies hereunder (except for the holders of Registrable Securities
      as set forth in Article 5).

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    

    6.15    The
      obligations of each Subscriber under any Transaction Document are several and
      not joint with the obligations of any other Subscriber, and no Subscriber shall
      be responsible in any way for the performance of the obligations of any other
      Subscriber under any Transaction Document. Nothing contained herein or in any
      Transaction Document, and no action taken by any Subscriber pursuant thereto,
      shall be deemed to constitute the Subscribers as a partnership, an association,
      a joint venture or any other kind of entity, or create a presumption that the
      Subscribers 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
      Subscriber shall be entitled to independently protect and enforce its rights,
      including without limitation the rights arising out of this Agreement or out
      of
      the other Transaction Documents, and it shall not be necessary for any other
      Subscriber to be joined as an additional party in any Proceeding for such
      purpose. Each Subscriber has been represented by its own separate legal counsel
      in their review and negotiation of the Transaction Documents.

    

    [REMAINDER
      OF PAGE LEFT BLANK - ARTICLE 7 FOLLOWS]

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

    7.
       CONFIDENTIAL
      INVESTOR QUESTIONNAIRE.

    

    7.1 The
      Subscriber represents and warrants that he, she or it comes within one category
      marked below, and that for any category marked, he, she or it has truthfully
      set
      forth, where applicable, the factual basis or reason the Subscriber comes within
      that category. ALL INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT STRICTLY
      CONFIDENTIAL except as otherwise required by law or as necessary for inclusion
      in the Registration Statement. The undersigned agrees to furnish any additional
      information which the Company deems necessary in order to verify the answers
      set
      forth below.

    

    
      	
              Category
                A ____

            	 	
              The
                undersigned is an individual (not a partnership, corporation, etc.)
                whose
                individual net worth, or joint net worth with his or her spouse,
                presently
                exceeds $1,000,000.

            
	 	 	 
	 	 	
              Explanation:
                In calculating net worth you may include equity in personal property
                and
                real estate, including your principal residence, cash, short-term
                investments, stock and securities. Equity in personal property and
                real
                estate should be based on the fair market value of such property
                less debt
                secured by such property.

            
	 	 	 
	
              Category
                B ____

            	 	
              The
                undersigned is an individual (not a partnership, corporation, etc.)
                who
                had an income in excess of $200,000 in each of the two most recent
                years,
                or joint income with his or her spouse in excess of $300,000 in each
                of
                those years (in each case including foreign income, tax exempt income
                and
                full amount of capital gains and losses but excluding any income
                of other
                family members and any unrealized capital appreciation) and has a
                reasonable expectation of reaching the same income level in the current
                year.

            
	 	 	 
	
              Category
                C ____

            	 	
              The
                undersigned is a director or executive officer of the Company which
                is
                issuing and selling the Securities.

            
	 	 	 
	
              Category
                D ____

            	 	
              The
                undersigned is a bank; a savings and loan association; insurance
                company;
                registered investment company; registered business development company;
                licensed small business investment company (“SBIC”); or employee benefit
                plan within the meaning of Title 1 of ERISA and (a) the investment
                decision is made by a plan fiduciary which is either a bank, savings
                and
                loan association, insurance company or registered investment advisor,
                or
                (b) the plan has total assets in excess of $5,000,000 or (c) is a
                self
                directed plan with investment decisions made solely by persons that
                are
                accredited investors. (describe entity)

            
	 	 	 
	 	 	 

    

    

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

    
      	
              Category
                E ____

            	 	
              The
                undersigned is a private business development company as defined
                in
                section 202(a)(22) of the Investment Advisors Act of 1940. (describe
                entity) 

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              Category
                F ____

            	 	
              The
                undersigned is either a corporation, partnership, Massachusetts business
                trust, or non-profit organization within the meaning of Section 501(c)(3)
                of the Internal Revenue Code, in each case not formed for the specific
                purpose of acquiring the Securities and with total assets in excess
                of
                $5,000,000.(describe entity)

            
	 	 	 
	
              Category
                G ____

            	 	
              The
                undersigned is a trust with total assets in excess of $5,000,000,
                not
                formed for the specific purpose of acquiring the Securities, where
                the
                purchase is directed by a “sophisticated investor“ as defined in
                Regulation 506(b)(2)(ii) under the Securities Act.

            
	 	 	 
	
              Category
                H ____

            	 	
              The
                undersigned is an entity (other than a trust) in which all of the
                equity
                owners are “accredited investors” within one or more of the above
                categories. If relying upon this Category alone, each equity owner
                must
                complete a separate copy of this Agreement. (describe
                entity)

            
	 	 	 
	 	 	 
	
              Category
                I ____

            	 	
              The
                undersigned is not within any of the categories above and is therefore
                not
                an accredited investor.

            

    

    

    The
      undersigned agrees that the undersigned will notify the Company at any time
      on
      or prior to the Closing Date in the event that the representations and
      warranties in this Agreement shall cease to be true, accurate and
      complete.

    

    7.2
       SUITABILITY
      (please
      answer each question)

    

    (a)
      For
      an individual Subscriber, please describe your current employment, including
      the
      company by which you are employed and its principal business:

    

    
      	 	 
	 	 
	 	 
	 	 

    

    

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    

    (b)
      For
      an individual Subscriber, please describe any college or graduate degrees held
      by you:

    

    
      	 	 
	 	 
	 	 

    

    

    (c)
      For
      all Subscribers, please state whether you have you participated in other
private
      placements
      before:

    

    YES_______  NO_______

    

    (d)
      If
      your answer to question (d) above was “YES”, please indicate frequency of such
      prior participation in private
      placements
      of:

    

    
      	 	 	
              Public
                

              Companies

            	 	
              Private
                

              Companies

            	 	
              Public
                or Private 

              Biopharmaceutical
                Companies

            
	 	 	 	 	 	 	 
	
              Frequently

            	 	 	 	 	 	 
	
              Occasionally

            	 	 	 	 	 	 
	
              Never

            	 	 	 	 	 	 

    

    

    (e)
      For
      individual Subscribers, do you expect your current level of income to
      significantly decrease in the foreseeable future:

    

    YES_______  NO_______

    

    (f)
      For
      trust, corporate, partnership and other institutional Subscribers, do you expect
      your total assets to significantly decrease in the foreseeable future:

    

    YES_______  NO_______

    

    (g)
      For
      all Subscribers, do you have any other investments or contingent liabilities
      which you reasonably anticipate could cause you to need sudden cash requirements
      in excess of cash readily available to you: 

    

    YES_______  NO_______

    

    (h)
      For
      all Subscribers, are you familiar with the risk aspects and the non-liquidity
      of
      investments such as the securities for which you seek to subscribe?

    

    YES_______  NO_______

    

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

    (h)  For
      all
      Subscribers, do you understand that there is no guarantee of financial return
      on
      this investment, that an investment in the Securities is highly speculative
      and
      risky and that you run the risk of losing your entire investment?

    
YES_______  NO_______

    

    (j)
       For
      all
      Subscribers, will you have sufficient readily available cash to fund your
      obligation to purchase Securities at the Closing pursuant to your subscription
      if and when the Closing occurs?

    

    YES_______  NO_______

    

    7.3
       MANNER
      IN WHICH TITLE IS TO BE HELD.
      (circle
      one)

    

    
      	
              (a)

            	
              Individual
                Ownership

            
	
              (b)

            	
              Community
                Property

            
	
              (c)

            	
              Joint
                Tenant with Right of 

            
	 	
              Survivorship
                (both parties

            
	 	
              must
                sign)

            
	
              (d)

            	
              Partnership*

            
	
              (e)

            	
              Tenants
                in Common

            
	
              (f)

            	
              Corporation*

            
	
              (g)

            	
              Limited
                Liability Company*

            
	
              (h)

            	
              Trust*

            
	
              (i)

            	
              Other

            

    

    

    *If
      Securities are being subscribed for by an entity, the attached Certificate
      of
      Signatory must also be completed.

    

    7.4
       NASD
      AFFILIATION.

    

    Are
      you
      affiliated or associated with an NASD member firm (please check
      one):

    

    Yes
      _________ No
      __________

    

    If
      Yes,
      please describe:

    

    
      	 	 
	 	 
	 	 

    

    

    *If
      Subscriber is a Registered Representative with an NASD member firm, have the
      following acknowledgment signed by the appropriate party:

    

    The
      undersigned NASD member firm acknowledges receipt of the notice required by
      Article 3, Sections 28(a) and (b) of the Rules of Fair
      Practice.

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    

    _________________________________

    Name
      of
      NASD Member Firm

    

    By:
      ______________________________

    Authorized
      Officer

    

    Date:
      ____________________________

    

    7.5 The
      undersigned is informed of the significance to the Company of the foregoing
      representations and answers contained in the Confidential Investor Questionnaire
      contained in this Section 7 and such answers have been provided under the
      assumption that the Company will rely on them.

    

    
      	
              Signature:

            	
              __________________________________

            
	 	 
	 	
              __________________________________

            
	 	
              (If
                purchased jointly)

            
	 	 
	
              Print:

            	
              __________________________________

            
	 	 
	 	
              __________________________________

            
	 	
              (If
                purchased jointly)

            
	 	 
	
              Date:

            	
              __________________________________

            

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE TO FOLLOW]

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

    [Signature
      Page]

    

    $_____________________
      / Purchase Price = ______________________ Shares 

    

    
      	 	 	 
	
              Signature

            	 	
              Signature
                (if purchasing jointly)

            

    

    

    
      	 	 	 
	
              Name
                Typed or Printed

            	 	
              Name
                Typed or Printed

            

    

    

    
      	 	 	 
	
              Entity
                Name

            	 	
              Entity
                Name

            

    

    

    
      	 	 	 
	
              Address

            	 	
              Address

            

    

    

    
      	 	 	 
	
              City,
                State and Zip Code

            	 	
              City,
                State and Zip Code

            

    

    

    
      	 	 	 
	
              Telephone-Business

            	 	
              Telephone—Business

            

    

    

    
      	 	 	 
	
              Telephone-Residence

            	 	
              Telephone—Residence

            

    

    

    
      	 	 	 
	
              Facsimile-Business

            	 	
              Facsimile—Business

            

    

    

    
      	 	 	 
	
              Facsimile-Residence

            	 	
              Facsimile—Residence

            

    

    

    
      	 	 	 
	
              Email
                Address

            	 	
              Email
                Address

            

    

    

    
      	 	 	 
	
              Tax
                ID # or Social Security #

            	 	
              Tax
                ID # or Social Security #

            

    

    

    
      	
              Name
                in which securities should be issued:

            	 	 

    

    

    
      	
              Dated:

            	 	
              ,
                2006

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    This
      Subscription Agreement is agreed to and accepted by the Company as of May 2,
      2006.

    

     

    
      	 	 	 
	 	ZIOPHARM
              ONCOLOGY,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
              _____________________________
	 	Title:
              _____________________________

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    CERTIFICATE
      OF SIGNATORY

    

    (To
      be
      completed if Securities are

    being
      subscribed for by an entity)

    

    I,____________________________,
      am the____________________________ of __________________________________________
      (the “Entity”).

    

    I
      certify
      that I am empowered and duly authorized by the Entity to execute and carry
      out
      the terms of the Subscription Agreement and to purchase and hold the Securities,
      and certify further that the Subscription Agreement has been duly and validly
      executed on behalf of the Entity and constitutes a legal and binding obligation
      of the Entity.

    

    IN
      WITNESS WHEREOF, I have set my hand this ______ day of _________________,
      2006.

    

    
      	 	 	 
	 	  	 
	 	
              
(Signature)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]