Document:

Unassociated Document

    
      Exhibit
10.71

    

     

    SUNESIS
PHARMACEUTICALS, INC.

    2006
EMPLOYMENT COMMENCEMENT INCENTIVE PLAN

     

    STOCK
OPTION GRANT NOTICE AND STOCK OPTION AGREEMENT

    

    Sunesis
Pharmaceuticals, Inc. (the “Company”),
pursuant to the Sunesis Pharmaceuticals, Inc.  2006 Employment
Commencement Incentive Plan (the “Plan”),
hereby grants to the Optionee listed below (“Optionee”),
an option to purchase the number of shares of the Company’s Stock set forth
below (the “Option”).  This
Option is subject to all of the terms and conditions as set forth herein and in
the Stock Option Agreement and the Plan, each of which are attached hereto and
incorporated herein by reference.  Capitalized terms not specifically
defined herein shall have the meanings specified in the Plan.

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Optionee:

                            	 
      	 
      
	 	 	 
	
                              Date
      of Stock Option Agreement:

                            	 
      	 
      
	 	 	 
	
                              Grant
      Date:

                            	 
      	 
      
	 	 	 
	
                              Vesting
      Commencement Date:

                            	 
      	 
      
	 	 	 
	
                              Exercise
      Price per Share:

                            	 
      	
                              $

                            
	 	 	 
	
                              Total
      Number of Shares Granted:

                            	 
      	 
      
	 	 	 
	
                              Total
      Exercise Price:

                            	 
      	
                              $

                            
	 	 	 
	
                              Expiration
      Date:

                            	 
      	 
      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            	Type of Option:
    	Non-Qualified
      Stock Option
	 	 
	
                    Vesting
      Schedule:

                  	
                    [Twenty-five
      percent (25%) of the shares subject to the Option shall vest twelve months
      after the Vesting Commencement Date, and 1/48th
      of the shares subject to the Option shall vest each month thereafter on
      the same day of the month as the Vesting Commencement Date, subject to the
      Optionee’s continued service with the
Company.]

                  

          

        

      

    

     

    By his or
her signature and the Company's signature below, Optionee agrees to be bound by
the terms and conditions of the Plan and the Stock Option Agreement attached
hereto.  Optionee has reviewed the Stock Option Agreement and the Plan
in their entirety, has had an opportunity to obtain the advice of counsel prior
to executing this Option and fully understands all provisions of the Grant
Notice, the Stock Option Agreement and the Plan.  Optionee agrees that
Optionee has not been previously employed in any capacity by the Company or a
Subsidiary, or if previously employed, has had a bona-fide period of
non-employment, and that the grant of this Option is an inducement material to
Optionee’s agreement to enter into employment with the Company or
Subsidiary.  Optionee hereby agrees to accept as binding, conclusive
and final all decisions or interpretations of the Committee upon any questions
arising under the Plan or this Option.  Optionee further agrees to
notify the Company upon any change in the residence address indicated
below.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	SUNESIS
      PHARMACEUTICALS, INC.Optionee:	 	OPTIONEE
	 	 	 	 	 
	By:	      
      	
                                                              
                                                                  

                                                    	 	By:	    
      	
                                                               
                                                               

                                                    
	Print
      Name:	
                                                    	 	Print
      Name:	
                                                       

                                                    
	Title:	
                                                    	 	 	 	 
      
	Address:	
                                                      395
      Oyster Point Blvd., Suite 400

                                                      South
      San Francisco, CA 94080

                                                    	 	Address:	
                                                       

                                                       

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          GRANT
NOTICE PAGE 1

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SUNESIS
PHARMACEUTICALS, INC.

    2006
EMPLOYMENT COMMENCEMENT INCENTIVE PLAN

     

    STOCK
OPTION AGREEMENT

     

    Pursuant
to the Stock Option Grant Notice (“Grant
Notice”) to which this Stock Option Agreement (this “Agreement”)
is attached, Sunesis Pharmaceuticals, Inc. (the “Company”)
has granted to the Optionee set forth in the Grant Notice (the “Optionee”)
an option under the Sunesis Pharmaceuticals, Inc. 2006 Employment Commencement
Incentive Plan (the “Plan”) to
purchase the number of shares of Stock indicated in the Grant Notice at the
exercise price indicated in the Grant Notice (the “Option”).  The
Option is subject to all of the terms and conditions set forth herein and in the
Grant Notice and the Plan.

     

    ARTICLE
I

    DEFINITIONS;
INCORPORATION OF TERMS

     

    1.1           Definitions.  Capitalized
terms not specifically defined herein shall have the meanings specified in the
Plan.

     

    1.2           Incorporation of Terms of
Plan.  The Option is subject to the terms and conditions of the
Plan which are incorporated herein by reference.

     

    ARTICLE
II

    GRANT
OF OPTION

     

    2.1           Grant of
Option.  In consideration of the Optionee’s agreement to
commence and remain in the employ of the Company or its Subsidiaries and for
other good and valuable consideration, effective as of the Grant Date set forth
in the Grant Notice (the “Grant
Date”), the Company irrevocably grants to the Optionee the Option to
purchase any part or all of an aggregate of the number of shares of Stock set
forth in the Grant Notice, upon the terms and conditions set forth in this
Agreement.  The Option shall be a Non-Qualified Stock
Option.

     

    2.2           Purchase
Price.  The exercise price per share of the Stock subject to
the Option shall be as set forth in the Grant Notice, without commission or
other charge; provided,
however, that in no event shall such exercise price be less than 100% of
the Fair Market Value of a share of Stock on the Grant Date or than the par
value of a share of Stock, unless otherwise permitted by applicable
law.

     

    2.3           Consideration to the
Company.  In consideration of the granting of the Option by the
Company, the Optionee agrees to render faithful and efficient services to the
Company or any Subsidiary, with such duties and responsibilities as the Company
shall from time to time prescribe.  Nothing in the Plan or this
Agreement shall confer upon the Optionee any right to continue in the employ of
the Company or any Subsidiary or shall interfere with or restrict in any way the
rights of the Company and its Subsidiaries, which are hereby expressly reserved,
to discharge the Optionee at any time for any reason whatsoever, with or without
cause, except to the extent expressly provided otherwise in a written agreement
between the Company and the Optionee.

     

    
      
        
        

      

      
        STOCK
OPTION AGREEMENT PAGE 1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
III

    PERIOD
OF EXERCISABILITY

     

    3.1           Commencement of
Exercisability.

     

    (a)           Subject
to Sections 3.3 and 5. 9, the Option shall become exercisable upon becoming
vested in such amounts and at such times as are set forth in the Grant
Notice.

     

    (b)           No
portion of the Option which has not become vested and exercisable at Termination
of Service (as defined in Section 3.3 below) shall thereafter become
exercisable, except as may be otherwise provided by the Committee or as set
forth in a written agreement between the Company and the Optionee.

     

    3.2           Duration of
Exercisability.  The installments provided for in
Section 3.1(a) are cumulative.  Each such installment which
becomes vested and exercisable pursuant to Section 3.1 shall remain
exercisable until it becomes unexercisable under Section 3.3.

     

    3.3           Expiration of
Option.  The Option may not be exercised to any extent by
anyone after the first to occur of the following events:

     

    (a)           The
expiration of ten years from the Grant Date; or

     

    (b)           The
expiration of three months following the date of the Optionee’s Termination of
Service, unless such Termination of Service occurs by reason of the Optionee’s
death or Disability or unless a different period is set forth in a written
agreement between the Optionee and the Company, as approved by the Committee;
or

     

    (c)           The
expiration of twelve months following
the date of the Optionee’s Termination of Service by reason of the Optionee’s
death or Disability.

     

    (e)           For
purposes of this Agreement, “Termination of
Service” means the time when the employment relationship between the
Optionee and the Company or any Subsidiary is terminated for any reason, with or
without cause, including, but not by way of limitation, a termination by
resignation, discharge, death or Disability; but excluding (a) a termination
where there is a simultaneous reemployment or continuing employment of the
Optionee by the Company or any Subsidiary or a parent corporation thereof
(within the meaning of Section 422 of the Code), (b) at the discretion of the
Committee, a termination which results in a temporary severance of the
employee-employer relationship, and (c) at the discretion of the Committee, a
termination which is followed by the simultaneous establishment of a consulting
relationship by the Company or a Subsidiary with the former
Employee.  The Committee, in its absolute discretion, shall determine
the effect of all matters and questions relating to Termination of Service for
the purposes of this Agreement, and all questions of whether particular leaves
of absence for Optionees constitute Terminations of
Service.  Notwithstanding any other provision of the Plan or this
Agreement, the Company or any Subsidiary has an absolute and unrestricted right
to terminate the Optionee’s employment and/or consultancy at any time for any
reason whatsoever, with or without cause, except to the extent expressly
provided otherwise in a written agreement between the Company and the
Optionee.

     

    
      
        
        

      

      
        STOCK
OPTION AGREEMENT PAGE 2

        
          

        

      

      
        
        

      

    

     

    ARTICLE
IV

    EXERCISE
OF OPTION

     

    4.1           Person Eligible to
Exercise.  Except as provided in Sections 5.2(b) and 5.2(c),
during the lifetime of the Optionee, only the Optionee may exercise the Option
or any portion thereof.

     

    4.2           Partial
Exercise.  Any vested and exercisable portion of the Option or
the entire Option, if then wholly vested and exercisable, may be exercised in
whole or in part at any time prior to the time when the Option or portion
thereof becomes unexercisable under Section 3.3.

     

    4.3           Manner of
Exercise.  The Option, or any exercisable portion thereof, may
be exercised solely by delivery to the Secretary of the Company or the
Secretary’s office of all of the following prior to the time when the Option or
such portion thereof becomes unexercisable under Section 3.3:

     

    (a)           An
Exercise Notice in writing signed by the Optionee or the other person then
entitled to exercise the Option or portion thereof, stating that the Option or
portion thereof is thereby exercised, such notice complying with all applicable
rules established by the Committee.  Such notice shall be
substantially in the form attached as Exhibit A (or such
other form as is prescribed by the Committee); and

     

    (b)           (i)           Full
payment (in cash or by check) for the shares with respect to which the Option or
portion thereof is exercised, to the extent permitted under applicable laws;
or

     

    (ii)           To
the extent permitted under applicable laws, through the delivery of a notice
that the Optionee has placed a market sell order with a broker with respect to
shares of Stock then issuable upon exercise of the Option, and that the broker
has been directed to pay a sufficient portion of the net proceeds of the sale to
the Company in satisfaction of the Option exercise price, provided, that payment of
such proceeds is made to the Company upon settlement of such sale;
or

     

    (iii)           With
the consent of the Committee, any combination of the consideration provided in
the foregoing subparagraphs (i) and (ii); and

     

    (c)           A
bona fide written representation and agreement, in such form as is prescribed by
the Committee, signed by the Optionee or other person then entitled to exercise
such Option or portion thereof, stating that the shares of Stock are being
acquired for the Optionee’s own account, for investment and without any present
intention of distributing or reselling said shares or any of them except as may
be permitted under the Securities Act of 1933, as amended (the “Securities
Act”), and then applicable rules and regulations thereunder, and that the
Optionee or other person then entitled to exercise such Option or portion
thereof will indemnify the Company against and hold it free and harmless from
any loss, damage, expense or liability resulting to the Company if any sale or
distribution of the shares by such person is contrary to the representation and
agreement referred to above.  The Committee may, in its absolute
discretion, take whatever additional actions it deems appropriate to ensure the
observance and performance of such representation and agreement and to effect
compliance with the Securities Act and any other federal or state securities
laws or regulations.  Without limiting the generality of the
foregoing, the Committee may require an opinion of counsel acceptable to it to
the effect that any subsequent transfer of shares acquired on an Option exercise
does not violate the Securities Act, and may issue stop-transfer orders covering
such shares.  Share certificates evidencing Stock issued on exercise
of the Option shall bear an appropriate legend referring to the provisions of
this subsection (c) and the agreements herein.  The written
representation and agreement referred to in the first sentence of this
subsection (c) shall, however, not be required if the shares to be issued
pursuant to such exercise have been registered under the Securities Act, and
such registration is then effective in respect of such shares; and

     

    
      
        
        

      

      
        STOCK
OPTION AGREEMENT PAGE 3

        
          

        

      

      
        
        

      

    

     

    (d)           Full
payment to the Company (or other employer corporation) of all amounts which,
under federal, state, local or foreign tax law, it is required to withhold upon
exercise of the Option.  With the consent of the Committee, shares of
Stock issuable to the Optionee upon exercise of the Option, having a Fair Market
Value at the date of Option exercise equal to the statutory minimum sums
required to be withheld, may be used to make all or part of such payment;
and

    

    (e)           In
the event the Option or portion thereof shall be exercised pursuant to
Section 4.1 by any person or persons other than the Optionee, appropriate
proof of the right of such person or persons to exercise the
Option.

     

    4.4           Conditions to Issuance of
Stock Certificates.  The shares of Stock deliverable upon the
exercise of the Option, or any portion thereof, shall be fully paid and
nonassessable.  The Company shall not be required to issue or deliver
any certificate or certificates for shares of Stock purchased upon the exercise
of the Option or portion thereof prior to fulfillment of all of the following
conditions:

     

    (a)           The
admission of such shares to listing on all stock exchanges on which such Stock
is then listed; and

     

    (b)           The
completion of any registration or other qualification of such shares under any
state or federal law or under rulings or regulations of the Securities and
Exchange Commission or of any other governmental regulatory body, which the
Committee shall, in its absolute discretion, deem necessary or advisable;
and

     

    (c)           The
obtaining of any approval or other clearance from any state or federal
governmental agency which the Committee shall, in its absolute discretion,
determine to be necessary or advisable; and

     

    (d)           The
receipt by the Company of full payment for such shares, including payment of all
amounts which, under federal, state or local tax law, the Company (or other
employer corporation) is required to withhold upon exercise of the Option;
and

     

    (e)           The
lapse of such reasonable period of time following the exercise of the Option as
the Committee may from time to time establish for reasons of administrative
convenience.

     

    4.5           Rights as
Stockholder.  The holder of the Option shall not be, nor have
any of the rights or privileges of, a stockholder of the Company in respect of
any shares purchasable upon the exercise of any part of the Option unless and
until such shares of Stock have been issued (as evidenced by an appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company.)

     

    ARTICLE
V

    OTHER
PROVISIONS

     

    5.1           Administration.  The
Committee shall have the power to interpret the Plan and this Agreement and to
adopt such rules for the administration, interpretation and application of the
Plan as are consistent therewith and to interpret, amend or revoke any such
rules.  All actions taken and all interpretations and determinations
made by the Committee in good faith shall be final and binding upon the
Optionee, the Company and all other interested persons.  No member of
the Committee shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan, this Agreement or
the Option.  In its absolute discretion, the Board may at any time and
from time to time exercise any and all rights and duties of the Committee under
the Plan and this Agreement; provided, however, any action
taken by the Board in connection with the administration of the Plan shall not
be deemed approved by the Board unless such actions are approved by a majority
of the Independent Directors.

     

    
      
        
        

      

      
        STOCK
OPTION AGREEMENT PAGE 4

        
          

        

      

      
        
        

      

    

     

    5.2           Option Not
Transferable.

     

    (a)           Subject
to Section 5.2(b), the Option may not be sold, pledged, assigned or transferred
in any manner other than by will or the laws of descent and distribution unless
and until the Option has been exercised, or the shares underlying such Option
have been issued, and all restrictions applicable to such shares have
lapsed.  Neither the Option nor any interest or right therein shall be
liable for the debts, contracts or engagements of the Optionee or his or her
successors in interest or shall be subject to disposition by transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means
whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted disposition thereof shall
be null and void and of no effect, except to the extent that such disposition is
permitted by the preceding sentence.

     

    (b)           Notwithstanding
any other provision in this Agreement, with the consent of the Committee, the
Option may be transferred to, exercised by and paid to certain persons or
entities related to the Optionee, including but not limited to members of the
Optionee’s family, charitable institutes or trusts or other entities whose
beneficiaries or beneficial owners are members of the Optionee’s family or to
such other persons or entities as may be expressly approved by the Committee
(each a “Permitted
Transferee”), pursuant to such conditions and procedures as the Committee
may require.

     

    (c)           Unless
transferred to a Permitted Transferee in accordance with Section 5.2(b), during
the lifetime of the Optionee, only the Optionee may exercise the Option or any
portion thereof.  Subject to such conditions and procedures as the
Committee may require, a Permitted Transferee may exercise the Option or any
portion thereof in accordance with this Agreement.  After the death of
the Optionee, any exercisable portion of the Option may, prior to the time when
the Option becomes unexercisable under Section 3.3, be exercised by the
Permitted Transferee or the Optionee’s beneficiary designated in accordance with
Section 9.4 of the Plan, as applicable.  If no beneficiary has been
designated or survives the Optionee, the Option may be exercised by the person
entitled to such exercise pursuant to the Optionee’s will or the laws of descent
and distribution.

     

    5.3           Restrictive Legends and
Stop-Transfer Orders.

     

    (a)           The
share certificate or certificates evidencing the shares of Stock purchased
hereunder shall be endorsed with any legends that may be required by state or
federal securities laws.

     

    (b)           The
Optionee agrees that, in order to ensure compliance with the restrictions
referred to herein, the Company may issue appropriate “stop transfer”
instructions to its transfer agent, if any, and that, if the Company transfers
its own securities, it may make appropriate notations to the same effect in its
own records.

     

    (c)           The
Company shall not be required:  (i) to transfer on its books any
shares of Stock that have been sold or otherwise transferred in violation of any
of the provisions of this Agreement, or (ii) to treat as owner of such shares of
Stock or to accord the right to vote or pay dividends to any purchaser or other
transferee to whom such shares shall have been so transferred.

     

    
      
        
        

      

      
        STOCK
OPTION AGREEMENT PAGE 5

        
          

        

      

      
        
        

      

    

     

    5.4           Shares to Be
Reserved.  The Company shall at all times during the term of
the Option reserve and keep available such number of shares of Stock as will be
sufficient to satisfy the requirements of this Agreement.

     

    5.5           Notices.  Any
notice to be given under the terms of this Agreement to the Company shall be
addressed to the Company in care of the Secretary, and any notice to be given to
the Optionee shall be addressed to the Optionee at the address given beneath the
Optionee’s signature on the Grant Notice.  By a notice given pursuant
to this Section 5.5, either party may hereafter designate a different
address for notices to be given to that party.  Any notice which is
required to be given to the Optionee shall, if the Optionee is then deceased, be
given to the Optionee’s designated beneficiary if any, or the person otherwise
entitled to exercise his or her Option pursuant to Section 4.1 by written notice
under this Section 5.5.  Any notice shall be deemed duly given when
sent via email or enclosed in a properly sealed envelope or wrapper addressed as
aforesaid and deposited (with postage prepaid) in a post office or branch post
office regularly maintained by the United States Postal Service.

     

    5.6           Titles.  Titles
are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

     

    5.7           Stockholder Approval Not
Required.  The Plan will not be submitted for approval by the
Company’s stockholders.  As more particularly described in Section
15.1 of the Plan, pursuant to NASD
Rule 4350(i)(1)(A)(iv), the issuance of this Option and the shares of Common
Stock issuable upon exercise or vesting of such Option pursuant to the Plan are
not subject to the approval of the Company’s stockholders.

     

    5.8           Construction.  This
Agreement shall be administered, interpreted and enforced under the laws of the
State of Delaware without regard to conflicts of laws thereof.

     

    5.9           Conformity to Applicable
Laws.  The Optionee acknowledges that the Plan is intended to
conform to the extent necessary with all provisions of the Securities Act and
the Securities Exchange Act of 1934, as amended and any and all regulations and
rules promulgated by the Securities and Exchange Commission thereunder, and
state securities laws and regulations.  The Optionee also acknowledges
that the Plan is intended to conform with the requirements of rules promulgated
by the NASD and, without limiting the foregoing, in particular NASD Rule
4350(i)(1)(A)(iv).  Notwithstanding anything herein to the
contrary, the Plan shall be administered, and the Option is granted and may be
exercised, only in such a manner as to conform to such laws, rules and
regulations.  To the extent permitted by applicable law, the Plan and
this Agreement shall be deemed amended to the extent necessary to conform to
such laws, rules and regulations.

     

    5.10           Amendments.  This
Agreement may not be modified, amended or terminated except by an instrument in
writing, signed by the Optionee or such other person as may be permitted to
exercise the Option pursuant to Section 4.1 and by a duly authorized
representative of the Company.

     

    
      
        
        

      

      
        STOCK
OPTION AGREEMENT PAGE 6

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

    TO
GRANT NOTICE AND STOCK OPTION AGREEMENT

     

    FORM
OF EXERCISE NOTICE

     

    Effective as of today, ___________,
_____, the undersigned (“Optionee”)
hereby elects to exercise Optionee’s option to purchase _________ shares of
common stock (the “Shares”)
of Sunesis Pharmaceuticals, Inc. (the “Company”)
under and pursuant to the Sunesis Pharmaceuticals, Inc. 2006 Employment
Commencement Incentive Plan (the “Plan”) and
the Grant Notice and Stock Option Agreement dated _____________, _____ (the
“Option
Agreement”).  Capitalized terms used herein without definition
shall have the meanings given in the Option Agreement.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Grant
      Date:

                              	 
      	____________________________________________________________
	 	 	 
	
                                Number
      of Shares as to which Option is Exercised:

                              	 
      	____________________________________________________________
	 	 	 
	
                                Exercise
      Price per Share:

                              	 
      	
                                $____________

                              	 
	 	 	 	 
	
                                Total
      Exercise Price:

                              	 
      	
                                $____________

                              	 
	 	 	 	 
	
                                Certificate
      to be issued in name of:

                              	 
      	____________________________________________________________
	 	 	 
	
                                Cash
      Payment delivered herewith:

                              	 
      	
                                $____________
      (Representing the full Exercise Price for the Shares, as well as any
      applicable withholding tax)

                              	 

                      

                       

                      Type of
Option:               
 Non-Qualified Stock
Option.

                    

                  

                

              

            

          

        

      

    

    

    1.           Representations of
Optionee.  Optionee acknowledges that Optionee has received,
read and understood the Plan and the Option Agreement.  Optionee
agrees to abide by and be bound by their terms and conditions.

     

    2.           Rights as
Stockholder.  Until the stock certificate evidencing such
Shares is issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to vote
or receive dividends or any other rights as a stockholder shall exist with
respect to Shares subject to the Option, notwithstanding the exercise of the
Option.  The Company shall issue (or cause to be issued) such stock
certificate promptly after the Option is exercised.  No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the stock certificate is issued, except as provided in Article 10 of
the Plan.

     

    3.           Tax
Consultation.  Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee’s purchase or disposition of
the Shares.  Optionee represents that Optionee has consulted with any
tax consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

     

    4.           Successors and
Assigns.  The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the
benefit of the successors and assigns of the Company.  Subject to the
restrictions on transfer herein set forth, this Agreement shall be binding upon
Optionee and his or her heirs, executors, administrators, successors and
assigns.

     

    
      
        
        

      

      
        EXERCISE
NOTICE PAGE 1

        
          

        

      

      
        
        

      

    

     

    5.           Interpretation.  Any
dispute regarding the interpretation of this Agreement shall be submitted by
Optionee or by the Company forthwith to the Committee, which shall review such
dispute at its next regular meeting.  The resolution of such a dispute
by the Committee shall be final and binding on the Company and on
Optionee.

     

    6.           Governing Law;
Severability.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware excluding that
body of law pertaining to conflicts of law.  Should any provision of
this Agreement be determined by a court of law to be illegal or unenforceable,
the other provisions shall nevertheless remain effective and shall remain
enforceable.

     

    7.           Notices.  Any
notice required or permitted hereunder shall be given in accordance with the
provisions set forth in Section 5.5 of the Option Agreement.

     

    8.           Further
Instruments.  The parties agree to execute such further
instruments and to take such further action as may be reasonably necessary to
carry out the purposes and intent of this Agreement.

     

    9.           Entire
Agreement.  The Plan and Option Agreement are incorporated
herein by reference.  This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof.

     

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	ACCEPTED
      BY:	 	
                                              SUBMITTED
      BY:

                                            
	 	 
      	 	 
      
	SUNESIS
      PHARMACEUTICALS, INC.	 	
                                              OPTIONEE

                                            
	 	 
      	 	 
      
	By:	
                                                          
                                                                 

                                            	 	              
      
	Name:	
                                                          
                                                                    

                                            	 	
                                              Optionee

                                            
	Its:	
                                                               
                                                                     

                                            	 	 
      
	 	 
      	 	 
      
	 	 
      	 	
                                              Address:

                                            
	 	 	 	 
	 	 	 	     
      
	 	 	 	            
      
	 	 	 	           
      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
        

      

      
        EXERCISE
NOTICE PAGE 2Unassociated Document

    Exhibit
10.1

    

    AGREEMENT

    

    This
Agreement (the “Agreement”), dated
December 22, 2008 (the “Effective Date”), is
by and among Generex Biotechnology Corporation (the “Company”), and the
investor listed on the signature page hereto (the “Investor”).

    

    RECITALS

    

    A.           Pursuant
to that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated as of March 31, 2008, by and among the Company, the Investor and the other
parties thereto, the Investor purchased the Company’s 8% Senior Secured
Convertible Note in the aggregate principal amount of $5,000,000 (the “Note”). Capitalized
terms used in this Agreement that are not otherwise defined have the meanings
set forth in the Note.

    

    B.           Pursuant
to the Purchase Agreement, the Investor purchased (i) a Series A Warrant to
acquire additional shares of Common Stock (the “Series A Warrants”),
(ii) a Series A-1 Warrant to acquire additional shares of Common Stock (the
“Series A-1
Warrants”), (iii) a Series B Warrant to acquire additional shares of
Common Stock (the “Series B Warrants”),
and (iv) a Series C Warrant to acquire additional shares of Common Stock (the
“Series C
Warrants”), in each case, as set forth on Schedule of Buyers attached to
the Purchase Agreement.  The Series A Warrants, the Series A-1
Warrants, the Series B Warrants, and the Series C Warrants issued to the
Investor are hereinafter collectively called the “Series
Warrants.”

    

    C.           In
connection with the transactions contemplated by the Purchase Agreement, the
Company reduced the strike prices of certain then outstanding warrants held by
the Investor (collectively, the “Pre-Extant Warrants”)
to $1.10 and extended the expiration dates thereof to March 31,
2015.

    

    D.           The
Company, as of the Effective Date, is not in compliance with the Net Cash
Balance Test in the Note and each of the Other Notes, which constitutes an Event
of Default under the Note and each of the Other Notes.

    

    E.           On
December 17, 2008, one of the holders of the Other Notes served on the Company
an Event of Default Redemption Notice with respect to an Event of Default by the
Company under Section 4(a)(xv) of its Other Note (the “Redemption
Notice”).

    

    F.           The
Note requires the Company to pay the Investor on each applicable Installment
Date the Installment Amount due on such date by electing (i) a Company
Conversion if various conditions are satisfied and/or (ii) a Company
Redemption.

    

    G.           As
of the Effective Date, one of the Equity Conditions has not been satisfied in
that the Company received notice from The NASDAQ Stock Market of the Company’s
failure to comply with the minimum bid price requirement of Marketplace Rule
4310(c)(4) (the “Listing Maintenance Equity
Condition”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
AGREEMENT

     

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Investor
hereby agree as follows:

    

    
      	
               
      

            	
              1.

            	
              The
      exercise price of each of the Series Warrants is hereby reduced from $1.21
      to $0.50, subject to further adjustment provided therein, effective from
      and after the Effective Date.

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      exercise price of each of the Pre-Extant Warrants is hereby reduced from
      $1.10 to $0.50, subject to further adjustment provided therein, effective
      from and after the Effective Date.

            

    

    

    
      	
               
      

            	
              3.

            	
              The
      Investor hereby agrees that the number of shares of Common Stock issuable
      upon exercise of the Series Warrants and the Pre-Extant Warrants shall not
      be increased solely as a result of the reductions of the exercise prices
      thereof contemplated by Section 1 and 2 above. The Investor hereby agrees
      that the Conversion Price shall not be reduced solely as a result of the
      reductions of the exercise prices of the Series Warrants and the
      Pre-Extant Warrants contemplated by Section 1 and 2
  above.

            

    

    

    
      	
               
      

            	
              4.

            	
              The
      Company may, at its option and exercisable in its sole discretion, on one
      occasion, upon not less than five (5) Business Days’ prior written notice
      delivered to the Investor  (the “Call Notice”),
      require the Investor to exercise all and not less than all of the
      Investor’s then outstanding Series Warrants and Pre-Extant Warrants if the
      arithmetic average of the VWAP of the Common Stock on the Principal Market
      for a twenty-one (21) consecutive Trading Day period is equal to or
      greater than $1.00 (as adjusted for
      stock splits, combinations and the like from and after the Effective Date)
      (the “Trigger
      Price”) from and after the Effective Date. To be effective, the
      Call Notice must be given within two (2) Business Days after the
      aforementioned twenty-one (21) consecutive Trading Day period. The Call
      Notice shall state the date on which exercise shall be required (the
      “Required
      Exercise Date”), which shall be no less than five (5) Business Days
      after the date of such notice (or, if such date is not a Business Day, on
      the next succeeding Business Day), provided that a Call Notice shall not
      be valid if (i) the Equity Conditions (as defined on Schedule 1 attached
      hereto, which is hereby incorporated by reference into, and made a part
      of, this Agreement) are not satisfied on each day during the period
      commencing on the date of the Call Notice and ending on the Required
      Exercise Date or (ii) as otherwise contemplated below, and in either such
      case any such Call Notice that is not so valid shall be invalid and of no
      force or effect.  The rights and privileges granted pursuant to
      the Series Warrants and the Pre-Extant Warrants which are subject to a
      valid Call Notice shall terminate at 12:00 a.m. on the first Business Day
      following the Required Exercise Date if all of the Series Warrants and the
      Pre-Extant Warrants are not exercised by the Investor (or the successor
      holder thereof) on or prior to 11:59 p.m. (New York time) on the Required
      Exercise Date. If the Company elects to issue a Call Notice, then it must
      simultaneously take the same action with respect to all other similar
      warrants originally issued to holders of the Other Notes. If the Company
      does not comply with the immediately preceding sentence, then the Call
      Notice issued by the Company to the Investor shall be invalid and of no
      force or effect. For clarification purposes, nothing contained in this
      paragraph shall limit the right of the Investor to exercise any of the
      Series Warrants or any of the Pre-Extant Warrants on a cashless
      basis.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              5.

            	
              Promptly
      following the Effective Date, the Company shall issue to the Investor a
      warrant (which will expire on the seven year anniversary of the Required
      Exercise Date) to acquire up to that number of shares of Common Stock that
      is equal to the number of shares of Common Stock acquired by such Investor
      in connection with the Investor’s exercise of the Series Warrants and the
      Pre-Extant Warrants pursuant to a Call Notice (the “Reload
      Warrants”). The per share exercise price of the Reload Warrants
      shall be $1.00 (as adjusted for stock splits, combinations and the like
      from and after the Effective Date). The Reload Warrants shall contain
      standard terms and conditions (including, without limitation, full-ratchet
      anti-dilution protection) and shall be in the same form as the form of the
      Series Warrants.

            

    

    

    
      	
               
      

            	
              6.

            	
              The
      expiration dates of the Series A Warrants and the Series A-1 Warrants are
      hereby extended to March 31, 2016, and such warrants are hereby amended to
      reflect the foregoing.

            

    

    

    
      	
               
      

            	
              7.

            	
              The
      expiration date of the Series C Warrants is hereby extended to September
      30, 2016, and such warrants are hereby amended to reflect the
      foregoing.

            

    

    

    
      	
               
      

            	
              8.

            	
              The
      expiration dates of each of the Pre-Extant Warrants are hereby extended to
      March 31, 2016, and such warrants are hereby amended to reflect the
      foregoing.

            

    

    

    
      	
               
      

            	
              9.

            	
              The
      Investor hereby waives (a) the Event of Default under Section 4(a)(xv) of
      the Note with respect to the Company’s failure to meet Net Cash Balance
      Test in respect of any and all periods prior to the Effective Date, and
      (b) compliance by the Company with the first sentence of Section 13(f) of
      the Note for the period commencing on the Effective Date and ending on the
      30th
      day of January 2009 (the “Reassessment
      Date”).

            

    

    

    
      
        	
              	
                10.

              	
                The
      Company shall honor the Company Installment Notices delivered by the
      Company on December 1, 2008 in respect of the January 1, 2009 Installment
      Date pursuant to which the Company confirmed its intention to redeem 100%
      of the January 1, 2009 Installment Amounts pursuant to a Company
      Redemption, and the Company shall promptly pay the applicable Company
      Redemption Amount when due.

              

      

    

    

    
      
        	
              	
                11.

              	
                In
      addition to the redemption of the January 1, 2009 Installment Amount, on
      January 12, 2009 (the “Additional Installment
      Date”), the Company will repay to the Investor an additional
      portion of the outstanding principal amount of the Note equal to
      $333,333.33, which amount shall be converted in whole pursuant to a
      Company Conversion (such amount is referred to herein as the “Additional Conversion
      Amount” and such additional repayment is referred to herein as the
      “Additional
      Repayment”) in accordance with the remainder of this Section 11. In
      connection with the foregoing, (i) notwithstanding the terms of the Note,
      (a) the Effective Date shall constitute the Installment Notice Due Date
      and the Company Installment Notice Date, in each case, with respect to the
      Additional Installment Date, (b) this Agreement shall constitute (I) the
      Company Installment Notice with respect to the Additional Installment
      Date, (II) the Company’s election of a Company Conversion with respect to
      the Additional Conversion Amount and the Additional Installment Date and
      (III) the Company’s confirmation of the matters required to be confirmed
      in Section 8 of the Note in connection with the Company’s election of a
      Company Conversion with respect to the Additional Conversion Amount and
      the Additional Installment Date and (c) the Pre-Installment Conversion
      Shares with respect to the Additional Conversion Amount and the Additional
      Installment Date shall be delivered no later than December 23, 2008 in
      accordance with Section 8(a) of the Note, (ii) notwithstanding the
      Pre-Installment Conversion Price set forth in the Note, the
      Pre-Installment Conversion Price with respect to the Additional Repayment
      and the Additional Conversion Amount shall be equal to the price which
      shall be computed as 90% of the arithmetic average of the VWAP of the
      Common Stock on each of the twenty (20) consecutive Trading Days
      immediately preceding the Effective Date and (iii) notwithstanding the
      Company Conversion Price set forth in the Note, the Company Conversion
      Price with respect to the Additional Repayment and the Additional
      Conversion Amount shall be equal to the price which shall be computed as
      90% of the arithmetic average of the VWAP of the Common Stock on each of
      the twelve (12) consecutive Trading Days immediately preceding the
      Additional Installment Date. All such determinations to be appropriately
      adjusted for any stock split, stock dividend, stock combination or other
      similar transaction during such measuring periods. Other than as expressly
      set forth in this Agreement, the Company shall deliver Pre-Installment
      Conversion Shares and Conversion Shares in accordance with the terms of
      the Note.

              

      

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                12.

              	
                The
      Investor hereby waives satisfaction of only the Listing Maintenance Equity
      Condition solely with respect to (a) the Additional Repayment and the
      Additional Installment Date, and (b) the Installment Date that is February
      1, 2009 (the “February 1st Installment
      Date”) such that the Company will be entitled to deliver a Company
      Installment Notice in respect of the February 1st
      Installment Date confirming that the applicable Installment Amount due in
      respect of the February 1st
      Installment Date will be converted in whole pursuant to a Company
      Conversion if (i) all other Equity Conditions and (ii) all other
      conditions relating to a Company Conversion, in each case, are satisfied
      in accordance with the terms of the
Note.

              

      

    

    

    
      
        	
              	
                13.

              	
                Solely
      for the purposes of the February 1st
      Installment Date, (a) notwithstanding the terms of the Note, the
      Installment Notice Due Date shall be January 9, 2009 (provided that the
      Company Installment Notice with respect to the February 1st
      Installment Date shall be delivered on January 9, 2009 after 4:00 p.m.
      (New York time)), (b) notwithstanding the Pre-Installment Conversion Price
      set forth in the Note, the Pre-Installment Conversion Price with respect
      to the February 1st
      Installment Date shall be equal to the price which shall be computed as
      90% of the arithmetic average of the VWAP of the Common Stock on each of
      the twelve (12) consecutive Trading Days immediately preceding and ending
      on (and including) January 9, 2009 and (c) notwithstanding the Company
      Conversion Price set forth in the Note, the Company Conversion Price with
      respect to the February 1st
      Installment Date shall be equal to the price which shall be computed as
      90% of the arithmetic average of the VWAP of the Common Stock on each of
      the fourteen (14) consecutive Trading Days immediately preceding the
      February 1st
      Installment Date. All such determinations to be appropriately adjusted for
      any stock split, stock dividend, stock combination or other similar
      transaction during such measuring periods. Other than as expressly set
      forth in this Agreement, the Company shall deliver Pre-Installment
      Conversion Shares and Conversion Shares in accordance with the terms of
      the Note.

              

      

    

    

    
      
        	
              	
                14.

              	
                Prior
      to the opening of the Principal Market on December 23, 2008, the Company
      shall file with the SEC a Form 8-K Current Report describing all of the
      material terms of the transactions contemplated by this Agreement in the
      form required by the 1934 Act and attaching a form of this
      Agreement.

              

      

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                15.

              	
                On
      or before the Reassessment Date, the Company will procure and deliver to
      the Investor an authenticated Control Agreement in respect of each Deposit
      Account of each Grantor. For the purposes of this paragraph, the terms
      “Control Agreement,” “Deposit Account,” and “Grantor” shall have the
      meanings ascribed thereto in the Security Agreement. The Company’s breach
      of the provisions of this paragraph shall constitute, and be deemed to be,
      an Event of Default under Section 4(a)(xiv) of the Note, and the Company
      agrees that such a breach shall be deemed a breach which is not
      curable.  This Agreement shall be deemed to be a Transaction
      Document for purposes of the Purchase Agreement, the Note and all other
      Transaction Documents.

              

      

    

    

    
      
        	
              	
                16.

              	
                Except
      as otherwise expressly provided herein, the Note, the Series Warrants, the
      Pre-Extant Warrants and all other Transaction Documents are, and shall
      continue to be, in full force and effect and are hereby ratified and
      confirmed in all respects. All dollar amounts referred to in this
      Agreement are in United States
Dollars.

              

      

    

    

    
      
        	
              	
                17.

              	
                If
      requested by the Investor, the Company will deliver to the Investor
      amended warrant certificates to the address specified by the Investor that
      reflect the amendments set forth herein within five (5) days after such
      request, and such amended warrant certificates shall replace the Series
      Warrants and the Pre-Extant Warrants and the Investor shall not be
      obligated to return any of such warrants to the Company. For clarification
      purposes, it is understood and agreed that the amendments set forth herein
      are effective as of the date hereof regardless of whether such amended
      warrant certificates are so requested or
  delivered.

              

      

    

    

    
      
        	
              	
                18.

              	
                This
      Agreement may be executed in two or more identical counterparts, all of
      which shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered
      to the other party. In the event that any signature is delivered by
      facsimile transmission or by an e-mail which contains a portable document
      format (.pdf) file of an executed signature page, such signature page
      shall create a valid and binding obligation of the party executing (or on
      whose behalf such signature is executed) with the same force and effect as
      if such signature page were an original
thereof.

              

      

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                19.

              	
                The
      Company represents, warrants and covenants that the Company has not
      entered into, and will not enter into, any agreement with any holder of
      Other Notes or similar warrants on terms or conditions which are more
      favorable to any such holder with respect to the matters addressed
      by this Agreement. To the extent the Company enters into
      any agreement with any holder of Other Notes or similar warrants that
      contains any terms or conditions which are more favorable to any such
      holder with respect to the matters addressed by this Agreement, then
      the Investor, at its option, shall be entitled to the benefit of such more
      favorable terms or conditions (as the case may be) and this Agreement
      shall be automatically amended to reflect such more favorable terms or
      conditions (as the case may
be).

              

      

    

    

    
      
        	
              	
                20.

              	
                The
      obligations of the Investor hereunder are several and not joint with the
      obligations of any other holder of Other Notes or similar warrants, and
      the Investor shall not be responsible in any way for the performance of
      the obligations of any other holder of Other Notes or similar warrants
      under any other similar agreement. Nothing contained herein, and no action
      taken by the Investor pursuant hereto, shall be deemed to constitute the
      Investor and the holders of the Other Notes or similar warrants as, and
      the Company acknowledges that the Investor and the holders of the Other
      Notes and similar warrants do not so constitute, a partnership, an
      association, a joint venture or any other kind of group or entity, or
      create a presumption that the Investor or any holder of Other Notes or
      similar warrants are in any way acting in concert or as a group or entity
      with respect to such obligations or the transactions contemplated by this
      Agreement or any matters, and the Company acknowledges that the Investor
      and the holders of the Other Notes and similar warrants are not acting in
      concert or as a group, and the Company shall not assert any such claim,
      with respect to such obligations or the transactions contemplated by this
      Agreement or any other similar agreement. The decision of the Investor to
      enter into this Agreement has been made by the Investor independently of
      any holder of Other Notes or similar warrants. The Company and the
      Investor confirms that the Investor has independently participated with
      the Company in the negotiation of the transaction contemplated hereby with
      the advice of its own counsel and advisors. The Investor shall be entitled
      to independently protect and enforce its rights, including, without
      limitation, the rights arising out of this Agreement or out of any other
      Transaction Documents, and it shall not be necessary for any other holder
      of Other Notes or similar warrants to be joined as an additional party in
      any proceeding for such purpose. To the extent that any holder of Other
      Notes or similar warrants enters into an agreement with the same or
      similar terms and conditions or pursuant to the same or similar documents,
      all such matters are solely in the control of the Company, not the action
      or decision of the Investor, and would be solely for the convenience of
      the Company and not because it was required or requested the
      Investor.

              

      

    

    

    [signature page
follows]

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
Investor and the Company have caused their respective signature page to this
Agreement to be duly executed as of the Effective Date.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	 
      	
                                                            COMPANY:
       

                                                          	 
	 	 	 
	 
      	
                                                            GENEREX
      BIOTECHNOLOGY CORPORATION

                                                          	 
	 
      	 
      	 
      	 
      	 
	 
      	
                                                            By:

                                                          	           
      	 
	 
      	 
      	
                                                            Name:  

                                                          	
                                                            Rose
      C. Perri

                                                          	 
	 
      	 
      	
                                                            Title:

                                                          	
                                                            Chief
      Financial Officer

                                                          	 
	 
      	 
      	 
      	 
      	 
	 
      	
                                                            By:

                                                          	                       
      	 
	 
      	 
      	
                                                            Name:

                                                          	
                                                            Mark
      A. Fletcher

                                                          	 
	 
      	 
      	
                                                            Title:

                                                          	
                                                            Executive
      Vice President and General Counsel

                                                          	 

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    

    IN WITNESS WHEREOF, the
Investor and the Company have caused their respective signature page to this
Agreement to be duly executed as of the Effective Date.

     

    
      
        
          	 
      	
                  INVESTOR:

                	 
      
	 
      	 
      	 
      
	 
      	
                  CRANSHIRE
      CAPITAL, L.P.

                	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  Downsview
      Capital, Inc. 

                	 
      
	 
      	
                  Its:   

                	
                  General
      Partner

                	 
      
	 
      	 
      	 
      	 
      
	 
      	     
      	 
      
	 
      	
                  By:

                	
                  Mitchell
      P. Kopin            

                	 
      
	 
      	
                  Its:

                	
                  President

                	 
      

        

      

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    Schedule
1

    

    “Equity Conditions” means: (i)
on each day during the period beginning one month prior to the applicable date
of determination and ending on and including the applicable date of
determination either (x) a
registration statement for the resale of all shares of Common Stock issuable
upon exercise of the Series Warrants and the Pre-Extant Warrants on a continuous
basis into the market at prevailing market prices of all shares of Common Stock
issuable upon exercise of the Series Warrants and the Pre-Extant Warrants shall
be effective and the prospectus contained therein shall be available for use or
(y) all shares of Common Stock issuable upon exercise of the Series Warrants and
the Pre-Extant Warrants shall be eligible for sale without restriction and
without the need for registration under any applicable federal or state
securities laws (in each case, disregarding any limitations on exercise);
(ii) on each day during the period beginning three months prior to the
applicable date of determination and ending on and including the applicable date
of determination (the “Equity
Conditions Measuring Period”), the shares of Common Stock are listed or
designated for quotation on an Eligible Market (as defined in the Note) and
shall not have been suspended from trading on an Eligible Market (other than
suspensions of not more than two (2) days and occurring prior to the applicable
date of determination due to business announcements by the Company) nor shall
delisting or suspension by an Eligible Market have been threatened (with a
reasonable prospect of delisting occurring) or pending either (A) in writing by
such Eligible Market or (B) by falling below the minimum listing maintenance
requirements of the Eligible Market on which the shares of Common Stock are then
listed; (iii) on each day during the Equity Conditions Measuring Period, the
Company shall have delivered all shares of Common Stock issuable upon conversion
of the Series Warrants and the Pre-Extant Warrants on a timely basis as set
forth therein and all other shares of capital stock required to be delivered by
the Company on a timely basis as set forth in the Transaction Documents; (iv)
any shares of Common Stock to be issued in connection with the event requiring
determination may be issued in full without violating the “blocker” provisions
thereof or the rules or regulations of the Eligible Market on which the Common
Stock is then listed; (v) on each day during the Equity Conditions Measuring
Period, no public announcement of a pending, proposed or intended Fundamental
Transaction (as defined in the Note) shall have occurred which has not been
abandoned, terminated or consummated; (vi) the Company shall have no knowledge of
any fact that would reasonably be expected to cause (1) the registration
statement described in clause (i) above not to be effective or the prospectus
contained therein not to be available for the resale of at least all of the
shares of Common Stock issuable upon exercise of the Series Warrants and the
Pre-Extant Warrants or (2) any shares of Common Stock issuable upon exercise of
the Series Warrants and the Pre-Extant Warrants not to be eligible for sale
without restriction pursuant to Rule 144 under the 1933 Act (as defined in the
Note) and any applicable state securities laws (in each case, disregarding any
limitations on exercise); (vii) the Investor shall not be in possession of any
material, non-public information provided to the Investor by the Company or any
of its affiliates or representatives; (viii) on each day during the
Equity Conditions Measuring Period, the Company otherwise shall have been in
compliance with and shall not have breached any provision, covenant,
representation or warranty of any Transaction Document (which, for clarification
purposes, includes, without limitation, this Agreement); (ix) on each day during
the Equity Conditions Measuring Period, there shall not have occurred an Event
of Default (as defined in the Note) or an event that with the passage of time or
giving of notice would constitute an Event of Default; and (x) on each day
beginning on the date of the Call Notice and ending on the Required Exercise
Date, no share of Common Stock shall trade for a price less than the Trigger
Price.

     

    
      
         

      

      
        9

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