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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
      STATES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
      DC 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM
      8-K</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
      REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported): January 19, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GENEREX
      BIOTECHNOLOGY CORPORATION</font>&#160;</div>
    <div>
      <hr style="COLOR: black" align="center" noshade size="2" width="90%">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in Its Charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table border="1" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
            <td width="1%">&#160;</td>
            <td valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">000-25169</font></div>
            </td>
            <td width="1%">&#160;</td>
            <td valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98-0178636</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="27%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or Other Jurisdiction of Incorporation)</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td valign="top" width="27%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                File Number)</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td valign="top" width="27%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer Identification Number)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
      <table border="1" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="40%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33
                Harbour Square, Suite 202, Toronto, Ontario Canada</font></div>
            </td>
            <td width="1%">&#160;</td>
            <td valign="top" width="40%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">M5J
                2G2</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="40%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                of Principal Executive Offices)</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td valign="top" width="40%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                Code)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      telephone number, including area code: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>(416)
      364-2551</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font>&#160;</div>
    <div>
      <hr style="COLOR: black" align="center" noshade size="2" width="75%">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      name or former address, if changed since last report.)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>see</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      General
      Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol">&#129;</font></strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol"><strong>&#129;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol"><strong>&#129;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol"><strong>&#129;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
      into a Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.03.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Creation
      of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Arrangement
      of a Registrant.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.02.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Unregistered
      Sales of Equity Securities.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      previously reported on the Current Report on Form 8-K of Generex Biotechnology
      Corporation (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Company</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      filed
      with the Securities and Exchange Commission (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>SEC</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      on
      November 12, 2004 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>November
      Current Report</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      the
      Company closed a private placement with four accredited investors, Cranshire
      Capital, L.P., Omicron Master Trust, Iroquois Capital, L.P. and Smithfield
      Fiduciary, LLC (collectively, the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Investors</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      on
      November 12, 2004, pursuant to which the Company issued 6% Secured Convertible
      Debentures (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Debentures</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      and
      Warrants to the Investors for an aggregate purchase price of $4,000,000. In
      connection with the issuance of the Debentures and Warrants, the Company granted
      an Additional Investment Right to each Investor. A brief description of the
      terms of the Debentures, Warrants and Additional Investment Rights is set forth
      under the caption &#8220;Financial Condition, Liquidity and Resources&#8221; in the
      Company&#8217;s Annual Report on Form 10-K filed with the SEC on October 31, 2005. In
      connection with the foregoing private placement, the Company and the Investors
      entered into a Securities Purchase Agreement dated November 10, 2004 (the
&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Securities
      Purchase Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      and a
      Registration Rights Agreement, dated November 10, 2004 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Registration
      Rights Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      both
      of which are discussed in and filed as exhibits to the November Current Report.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      described in the Company&#8217;s Current Reports on Form 8-K filed with the SEC on
      June 17, 2005, September 9, 2005 and December 15, 2005 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Subsequent
      Current Reports</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      the
      Company and the Investors have entered into subsequent amendments to the
      Securities Purchase Agreement and the Registration Rights Agreement pursuant
      to
      which the Investors have exercised outstanding Additional Investment Rights
      and
      the Company has granted the Investors further Additional Investment Rights.
      The
      brief descriptions of the foregoing are set forth in the Subsequent Current
      Reports, which disclosures are incorporated herein by reference. The Company&#8217;s
      file number with the SEC under the Securities Exchange Act of 1934, as amended,
      is 000-25169. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 19, 2006, the Company and each of the Investors entered into Amendment
      No. 4 to the Securities Purchase Agreement and Registration Rights Agreement
      (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Fourth
      Amendment</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      pursuant to which the Investors agreed to exercise an aggregate of $4,00,000
      in
      principal amount of the further Additional Investment Rights (collectively,
      the
&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Additional
      AIRs</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      previously granted to them in connection with Amendment No. 3 to the Securities
      Purchase Agreement and Registration Rights Agreement (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Third
      Amendment</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;).
      Pursuant to each such Additional AIR granted in connection with the Third
      Amendment, each Investor had the right to purchase detachable units consisting
      of (a) additional AIR Debentures in principal amount of $1,000,000 with a
      conversion price of $1.25 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Additional
      AIR Debentures</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      and
      (b) additional AIR Warrants entitling the holder thereof to purchase a number
      of
      shares of the Company&#8217;s common stock equal to 100% of the shares of common stock
      issuable upon the conversion in full at a $1.25 conversion price (subject to
      adjustment as set forth therein) (without regard to any restrictions on
      conversion therein contained) of the Additional AIR Debentures contemplated
      in
      clause (a) above, at an exercise price equal to the &#8220;AIR Warrant Exercise Price&#8221;
(as such term is defined in the Additional AIRs) (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Additional
      AIR Warrants</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Fourth Amendment, the Company and the Investors amended the terms of
      the
      Additional AIRs previously granted to the Investors in connection with the
      Third
      Amendment to accelerate the initial exercise date of such Additional AIRs to
      January 19, 2006 in consideration of their exercise by the
      Investors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the exercise of each Additional AIR granted in connection with
      the Third Amendment, each Investor purchased a $1,000,000 principal amount
      AIR
      Debenture with a reduced conversion price of $1.05 and AIR Warrants entitling
      the Investor to purchase a number of shares of the Company&#8217;s common stock equal
      to 100% of the shares of common stock issuable upon the conversion in full
      at a
      reduced conversion price of $1.05 (subject to adjustment as set forth therein)
      (without regard to any restrictions on conversion therein contained) of the
      AIR
      Debenture at an exercise price equal to the &#8220;AIR Warrant Exercise Price&#8221; (as
      such term is defined in the Additional AIR). Accordingly, the Company issued
      to
      the Investors AIR Debentures in the aggregate amount of $4,000,000 and AIR
      Warrants to purchase an aggregate of 3,809,524 shares of the Company&#8217;s common
      stock, exercisable for five years commencing six months following the issuance
      thereof. Under the terms of the Fourth Amendment, the reduction in the
      conversion price of the AIR Debentures and the exercise price of the AIR
      Warrants will not trigger any anti-dilution adjustments to any outstanding
      securities issued to the Investors. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company received proceeds of approximately $4,000,000 in connection with the
      Investors&#8217; exercise of their Additional AIRs granted in connection with the
      Third Amendment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      AIR
      Debentures have a term of fifteen months and amortize over thirteen months
      in
      thirteen equal monthly installments beginning on the first day of the third
      month following their issuance. Interest on the principal amount outstanding
      will accrue at a rate of 6% per annum. The Company may pay principal and accrued
      interest in cash or, at its option, in shares of common stock. If the Company
      elects to pay principal and interest in shares of its common stock, the value
      of
      each share of common stock will be equal to the lesser of (i) $1.05 and (ii)
      ninety percent (90%) of the average of the daily volume weighted average price
      for the common stock over the twenty trading day period immediately preceding
      the date of payment. At the option of the holder of each AIR Debenture, the
      principal amount outstanding under each AIR Debenture is initially convertible
      at any time after the closing of the Fourth Amendment into shares of the
      Company&#8217;s common stock at a conversion price of $1.05.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      the
      occurrence of an &#8220;Event of Default,&#8221; including a default in payment of principal
      or interest (including late fees) which is not cured within three trading days,
      the full principal amount of each AIR Debenture, together with interest and
      other amounts owing in respect thereof, to the date of acceleration will become,
      at the holder&#8217;s election, due and payable in cash. The aggregate amount payable
      upon an Event of Default shall be equal to the &#8220;Mandatory Prepayment Amount.&#8221;
The Mandatory Prepayment Amount for any AIR Debentures shall equal the sum
      of
      (i) the greater of: (A) 130% of the principal amount of AIR Debentures to be
      prepaid, plus all accrued and unpaid interest thereon, or (B) the principal
      amount of AIR Debentures to be prepaid, plus all other accrued and unpaid
      interest thereof, divided by the conversion price on (x) the date the Mandatory
      Prepayment Amount is demanded or otherwise due or (y) the date the Mandatory
      Prepayment Amount is paid in full, whichever is less, multiplied by the daily
      volume weighted average price of the common stock on (x) the date the Mandatory
      Prepayment Amount is demanded or otherwise due or (y) the date the Mandatory
      Prepayment Amount is paid in full, whichever is greater, and (ii) all other
      amounts, costs, expenses and liquidated damages due in respect of such AIR
      Debentures. The interest rate on the AIR Debentures will accrue at the rate
      of
      18% per annum, or such lower maximum amount of interest permitted to be charged
      under applicable law, beginning five days after the occurrence of any Event
      of
      Default that results in the acceleration of the AIR Debentures. A late fee
      of
      18% per annum, or such lower maximum amount of interest permitted to be charged
      under applicable law, will accrue on a daily basis on all overdue accrued and
      unpaid interest under the AIR Debentures from the due date to the date of
      payment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      AIR
      Warrants issued to the Investors on January 19, 2006 are initially exercisable
      into an aggregate of 3,809,524 shares of the Company&#8217;s common stock, and the
      initial exercise price of each AIR Warrant is equal to $1.05. The conversion
      price of the AIR Debentures and the exercise price of the AIR Warrants are
      each
      subject to an anti-dilution adjustment upon the issuance by the Company of
      securities at a price per share less than the then conversion price or exercise
      price, as applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, in consideration of each Investor&#8217;s exercise of its Additional AIR
      granted in connection with the Third Amendment, the Company granted to each
      Investor a further Additional Investment Right (each a &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>New
      Additional AIR</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
and
      collectively, the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>New
      Additional AIRs</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      pursuant to which each Investor will have the right to purchase detachable
      units
      consisting of (a) additional AIR Debentures in principal amount of $1,000,000
      with a conversion price of $1.25 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>New
      Additional AIR Debentures</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      and
      (b) additional AIR Warrants entitling the holder thereof to purchase a number
      of
      shares of the Company&#8217;s common stock equal to 100% of the shares of common stock
      issuable upon the conversion in full at a $1.25 conversion price (subject to
      adjustment as set forth therein) (without regard to any restrictions on
      conversion therein contained) of the Additional AIR Debentures contemplated
      in
      clause (a) above, at an exercise price equal to the &#8220;AIR Warrant Exercise Price&#8221;
(as such term is defined in the Additional AIRs) (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>New
      Additional AIR Warrants</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      terms of the Fourth Amendment, the Company also agreed to register for resale
      the securities issuable upon conversion/exercise of the New Additional AIR
      Debentures and the New Additional AIR Warrants, consistent with the Investors&#8217;
existing registration rights under the Registration Rights Agreement. The
      Company agreed to register such securities on the registration statement
      contemplated by the Third Amendment, the requisite filing of which has been
      extended to January 26, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      Investor may exercise its New Additional AIR at any time on or after the 181st
      day after closing and on or prior to the earlier of (i) the close of business
      on
      the one-year anniversary after the registration statement for the shares of
      common stock underlying the New Additional AIR Debentures and New Additional
      AIR
      Warrants has gone effective and (ii) the two year anniversary of the closing
      of
      the transactions contemplated by the Fourth Amendment. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, in connection with the transactions contemplated by the Fourth
      Amendment, the Company will issue to a placement agent (i) 266,667 shares of
      common stock in lieu of a cash fee equal to 7% of the gross proceeds received
      by
      the Company and (ii) warrants exercisable into approximately 120,000 shares
      of
      common stock at the same exercise price as the AIR Warrants. These shares will
      also be registered for resale.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company undertook the offer and sale of the AIR Debentures, AIR Warrants and
      New
      Additional AIRs (including the underlying New Additional AIR Debentures and
      New
      Additional AIR Warrants), as well as the shares of common stock and warrants
      issued to the placement agent, in reliance upon Rule 506 of Regulation D and
      Section 18(b)(4)(D) of the Securities Act of 1933, as amended. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THE
      ABOVE
      DESCRIPTION OF, AMONG OTHER THINGS, THE TERMS OF THE FOURTH AMENDMENT, THE
      AIR
      DEBENTURES, THE AIR WARRANTS, AND THE NEW ADDITIONAL AIRS IS QUALIFIED IN ITS
      ENTIRETY BY THE FOURTH AMENDMENT, THE AIR DEBENTURES, THE AIR WARRANTS, AND
      THE
      NEW ADDITIONAL AIRS WHICH ARE INCORPORATED BY REFERENCE HEREIN. THE COMPANY
      IS
      FILING THE FOURTH AMENDMENT, THE FORM OF THE AIR DEBENTURES, THE FORM OF THE
      AIR
      WARRANTS AND THE FORM OF THE NEW ADDITIONAL AIRS AS EXHIBITS 4.1, 4.2, 4.3
      AND
      4.4, RESPECTIVELY, TO THIS CURRENT REPORT ON FORM 8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements and Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font></div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
            </td>
            <td align="left" valign="top" width="65%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 4 to Securities Purchase Agreement and Registration Rights Agreement
                entered into by and between Generex Biotechnology Corporation and
                the
                Purchasers listed on the signature pages thereto</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2</font></div>
            </td>
            <td align="left" valign="top" width="65%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of AIR Debentures</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.3</font></div>
            </td>
            <td align="left" valign="top" width="65%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of AIR Warrants</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.4</font></div>
            </td>
            <td align="left" valign="top" width="65%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of New Additional AIRs</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>SIGNATURE</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="2" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GENEREX
                BIOTECHNOLOGY CORPORATION</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;January
                20, 2006</font></div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></div>
            </td>
            <td align="left" valign="top" width="37%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                Rose C. Perri</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Operating Officer and</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(principal
                financial officer) </font></div>
            </td>
          </tr>

      </table>
    </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      INDEX</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
            </td>
            <td align="left" valign="top" width="65%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 4 to Securities Purchase Agreement and Registration Rights Agreement
                entered into by and between Generex Biotechnology Corporation and
                the
                Purchasers listed on the signature pages thereto</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2</font></div>
            </td>
            <td align="left" valign="top" width="65%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of AIR Debentures</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.3</font></div>
            </td>
            <td align="left" valign="top" width="65%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of AIR Warrants</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.4</font></div>
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                of New Additional AIRs</font></div>
            </td>
          </tr>

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{"company-data": {"conformed-name": "GENEREX BIOTECHNOLOGY CORP", "cik": "0001059784", "assigned-sic": "2834", "irs-number": "820490211", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-25169", "film-number": "06541198"}, "business-address": {"street1": "33 HARBOUR SQ", "street2": "STE 202", "city": "TORONTO ONTARIO CANADA", "state": "A1", "zip": "M5J 2G2", "phone": "4163642551"}, "mail-address": {"street1": "33 HARBOUR SQ", "street2": "STE 202", "city": "TORONTO ONTARIO CA", "state": "A1", "zip": "M5J 2G2"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      DC 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
      of
      Report (Date of earliest event reported): January 19, 2006
GENEREX
      BIOTECHNOLOGY CORPORATION
(Exact
      Name of Registrant as Specified in Its Charter)
Delaware
000-25169
98-0178636
(State
                or Other Jurisdiction of Incorporation)
(Commission
                File Number)
(IRS
                Employer Identification Number)
33
                Harbour Square, Suite 202, Toronto, Ontario Canada
M5J
                2G2
(Address
                of Principal Executive Offices)
(Zip
                Code)
Registrant's
      telephone number, including area code:
(416)
      364-2551
N/A
(Former
      name or former address, if changed since last report.)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2. below):

Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))
Item
      1.01.
Entry
      into a Material Definitive Agreement.
Item
      2.03.
Creation
      of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement
      of a Registrant.
Item
      3.02.
Unregistered
      Sales of Equity Securities.
As
      previously reported on the Current Report on Form 8-K of Generex Biotechnology
      Corporation (the "
Company
")
      filed
      with the Securities and Exchange Commission (the "
SEC
")
      on
      November 12, 2004 (the "
November
      Current Report
"),
      the
      Company closed a private placement with four accredited investors, Cranshire
      Capital, L.P., Omicron Master Trust, Iroquois Capital, L.P. and Smithfield
      Fiduciary, LLC (collectively, the "
Investors
")
      on
      November 12, 2004, pursuant to which the Company issued 6% Secured Convertible
      Debentures (the "
Debentures
")
      and
      Warrants to the Investors for an aggregate purchase price of $4,000,000. In
      connection with the issuance of the Debentures and Warrants, the Company granted
      an Additional Investment Right to each Investor. A brief description of the
      terms of the Debentures, Warrants and Additional Investment Rights is set forth
      under the caption "Financial Condition, Liquidity and Resources" in the
      Company's Annual Report on Form 10-K filed with the SEC on October 31, 2005. In
      connection with the foregoing private placement, the Company and the Investors
      entered into a Securities Purchase Agreement dated November 10, 2004 (the
"
Securities
      Purchase Agreement
"),
      and a
      Registration Rights Agreement, dated November 10, 2004 (the "
Registration
      Rights Agreement
"),
      both
      of which are discussed in and filed as exhibits to the November Current Report.
As
      described in the Company's Current Reports on Form 8-K filed with the SEC on
      June 17, 2005, September 9, 2005 and December 15, 2005 (the "
Subsequent
      Current Reports
"),
      the
      Company and the Investors have entered into subsequent amendments to the
      Securities Purchase Agreement and the Registration Rights Agreement pursuant
      to
      which the Investors have exercised outstanding Additional Investment Rights
      and
      the Company has granted the Investors further Additional Investment Rights.
      The
      brief descriptions of the foregoing are set forth in the Subsequent Current
      Reports, which disclosures are incorporated herein by reference. The Company's
      file number with the SEC under the Securities Exchange Act of 1934, as amended,
      is 000-25169.
On
      January 19, 2006, the Company and each of the Investors entered into Amendment
      No. 4 to the Securities Purchase Agreement and Registration Rights Agreement
      (the "
Fourth
      Amendment
"),
      pursuant to which the Investors agreed to exercise an aggregate of $4,00,000
      in
      principal amount of the further Additional Investment Rights (collectively,
      the
"
Additional
      AIRs
")
      previously granted to them in connection with Amendment No. 3 to the Securities
      Purchase Agreement and Registration Rights Agreement (the "
Third
      Amendment
").
      Pursuant to each such Additional AIR granted in connection with the Third
      Amendment, each Investor had the right to purchase detachable units consisting
      of (a) additional AIR Debentures in principal amount of $1,000,000 with a
      conversion price of $1.25 (the "
Additional
      AIR Debentures
")
      and
      (b) additional AIR Warrants entitling the holder thereof to purchase a number
      of
      shares of the Company's common stock equal to 100% of the shares of common stock
      issuable upon the conversion in full at a $1.25 conversion price (subject to
      adjustment as set forth therein) (without regard to any restrictions on
      conversion therein contained) of the Additional AIR Debentures contemplated
      in
      clause (a) above, at an exercise price equal to the "AIR Warrant Exercise Price"
(as such term is defined in the Additional AIRs) (the "
Additional
      AIR Warrants
").
Pursuant
      to the Fourth Amendment, the Company and the Investors amended the terms of
      the
      Additional AIRs previously granted to the Investors in connection with the
      Third
      Amendment to accelerate the initial exercise date of such Additional AIRs to
      January 19, 2006 in consideration of their exercise by the
      Investors.
In
      connection with the exercise of each Additional AIR granted in connection with
      the Third Amendment, each Investor purchased a $1,000,000 principal amount
      AIR
      Debenture with a reduced conversion price of $1.05 and AIR Warrants entitling
      the Investor to purchase a number of shares of the Company's common stock equal
      to 100% of the shares of common stock issuable upon the conversion in full
      at a
      reduced conversion price of $1.05 (subject to adjustment as set forth therein)
      (without regard to any restrictions on conversion therein contained) of the
      AIR
      Debenture at an exercise price equal to the "AIR Warrant Exercise Price" (as
      such term is defined in the Additional AIR). Accordingly, the Company issued
      to
      the Investors AIR Debentures in the aggregate amount of $4,000,000 and AIR
      Warrants to purchase an aggregate of 3,809,524 shares of the Company's common
      stock, exercisable for five years commencing six months following the issuance
      thereof. Under the terms of the Fourth Amendment, the reduction in the
      conversion price of the AIR Debentures and the exercise price of the AIR
      Warrants will not trigger any anti-dilution adjustments to any outstanding
      securities issued to the Investors.
The
      Company received proceeds of approximately $4,000,000 in connection with the
      Investors' exercise of their Additional AIRs granted in connection with the
      Third Amendment.
The
      AIR
      Debentures have a term of fifteen months and amortize over thirteen months
      in
      thirteen equal monthly installments beginning on the first day of the third
      month following their issuance. Interest on the principal amount outstanding
      will accrue at a rate of 6% per annum. The Company may pay principal and accrued
      interest in cash or, at its option, in shares of common stock. If the Company
      elects to pay principal and interest in shares of its common stock, the value
      of
      each share of common stock will be equal to the lesser of (i) $1.05 and (ii)
      ninety percent (90%) of the average of the daily volume weighted average price
      for the common stock over the twenty trading day period immediately preceding
      the date of payment. At the option of the holder of each AIR Debenture, the
      principal amount outstanding under each AIR Debenture is initially convertible
      at any time after the closing of the Fourth Amendment into shares of the
      Company's common stock at a conversion price of $1.05.
Upon
      the
      occurrence of an "Event of Default," including a default in payment of principal
      or interest (including late fees) which is not cured within three trading days,
      the full principal amount of each AIR Debenture, together with interest and
      other amounts owing in respect thereof, to the date of acceleration will become,
      at the holder's election, due and payable in cash. The aggregate amount payable
      upon an Event of Default shall be equal to the "Mandatory Prepayment Amount."
The Mandatory Prepayment Amount for any AIR Debentures shall equal the sum
      of
      (i) the greater of: (A) 130% of the principal amount of AIR Debentures to be
      prepaid, plus all accrued and unpaid interest thereon, or (B) the principal
      amount of AIR Debentures to be prepaid, plus all other accrued and unpaid
      interest thereof, divided by the conversion price on (x) the date the Mandatory
      Prepayment Amount is demanded or otherwise due or (y) the date the Mandatory
      Prepayment Amount is paid in full, whichever is less, multiplied by the daily
      volume weighted average price of the common stock on (x) the date the Mandatory
      Prepayment Amount is demanded or otherwise due or (y) the date the Mandatory
      Prepayment Amount is paid in full, whichever is greater, and (ii) all other
      amounts, costs, expenses and liquidated damages due in respect of such AIR
      Debentures. The interest rate on the AIR Debentures will accrue at the rate
      of
      18% per annum, or such lower maximum amount of interest permitted to be charged
      under applicable law, beginning five days after the occurrence of any Event
      of
      Default that results in the acceleration of the AIR Debentures. A late fee
      of
      18% per annum, or such lower maximum amount of interest permitted to be charged
      under applicable law, will accrue on a daily basis on all overdue accrued and
      unpaid interest under the AIR Debentures from the due date to the date of
      payment.
The
      AIR
      Warrants issued to the Investors on January 19, 2006 are initially exercisable
      into an aggregate of 3,809,524 shares of the Company's common stock, and the
      initial exercise price of each AIR Warrant is equal to $1.05. The conversion
      price of the AIR Debentures and the exercise price of the AIR Warrants are
      each
      subject to an anti-dilution adjustment upon the issuance by the Company of
      securities at a price per share less than the then conversion price or exercise
      price, as applicable.
In
      addition, in consideration of each Investor's exercise of its Additional AIR
      granted in connection with the Third Amendment, the Company granted to each
      Investor a further Additional Investment Right (each a "
New
      Additional AIR
"
and
      collectively, the "
New
      Additional AIRs
"),
      pursuant to which each Investor will have the right to purchase detachable
      units
      consisting of (a) additional AIR Debentures in principal amount of $1,000,000
      with a conversion price of $1.25 (the "
New
      Additional AIR Debentures
")
      and
      (b) additional AIR Warrants entitling the holder thereof to purchase a number
      of
      shares of the Company's common stock equal to 100% of the shares of common stock
      issuable upon the conversion in full at a $1.25 conversion price (subject to
      adjustment as set forth therein) (without regard to any restrictions on
      conversion therein contained) of the Additional AIR Debentures contemplated
      in
      clause (a) above, at an exercise price equal to the "AIR Warrant Exercise Price"
(as such term is defined in the Additional AIRs) (the "
New
      Additional AIR Warrants
").
Under
      the
      terms of the Fourth Amendment, the Company also agreed to register for resale
      the securities issuable upon conversion/exercise of the New Additional AIR
      Debentures and the New Additional AIR Warrants, consistent with the Investors'
existing registration rights under the Registration Rights Agreement. The
      Company agreed to register such securities on the registration statement
      contemplated by the Third Amendment, the requisite filing of which has been
      extended to January 26, 2006.
Each
      Investor may exercise its New Additional AIR at any time on or after the 181st
      day after closing and on or prior to the earlier of (i) the close of business
      on
      the one-year anniversary after the registration statement for the shares of
      common stock underlying the New Additional AIR Debentures and New Additional
      AIR
      Warrants has gone effective and (ii) the two year anniversary of the closing
      of
      the transactions contemplated by the Fourth Amendment.
In
      addition, in connection with the transactions contemplated by the Fourth
      Amendment, the Company will issue to a placement agent (i) 266,667 shares of
      common stock in lieu of a cash fee equal to 7% of the gross proceeds received
      by
      the Company and (ii) warrants exercisable into approximately 120,000 shares
      of
      common stock at the same exercise price as the AIR Warrants. These shares will
      also be registered for resale.
The
      Company undertook the offer and sale of the AIR Debentures, AIR Warrants and
      New
      Additional AIRs (including the underlying New Additional AIR Debentures and
      New
      Additional AIR Warrants), as well as the shares of common stock and warrants
      issued to the placement agent, in reliance upon Rule 506 of Regulation D and
      Section 18(b)(4)(D) of the Securities Act of 1933, as amended.
THE
      ABOVE
      DESCRIPTION OF, AMONG OTHER THINGS, THE TERMS OF THE FOURTH AMENDMENT, THE
      AIR
      DEBENTURES, THE AIR WARRANTS, AND THE NEW ADDITIONAL AIRS IS QUALIFIED IN ITS
      ENTIRETY BY THE FOURTH AMENDMENT, THE AIR DEBENTURES, THE AIR WARRANTS, AND
      THE
      NEW ADDITIONAL AIRS WHICH ARE INCORPORATED BY REFERENCE HEREIN. THE COMPANY
      IS
      FILING THE FOURTH AMENDMENT, THE FORM OF THE AIR DEBENTURES, THE FORM OF THE
      AIR
      WARRANTS AND THE FORM OF THE NEW ADDITIONAL AIRS AS EXHIBITS 4.1, 4.2, 4.3
      AND
      4.4, RESPECTIVELY, TO THIS CURRENT REPORT ON FORM 8-K.
Item
      9.01.
Financial
      Statements and Exhibits.
(d)
Exhibits.
4.1
Amendment
                No. 4 to Securities Purchase Agreement and Registration Rights Agreement
                entered into by and between Generex Biotechnology Corporation and
                the
                Purchasers listed on the signature pages thereto
4.2
Form
                of AIR Debentures
4.3
Form
                of AIR Warrants
4.4
Form
                of New Additional AIRs
SIGNATURE
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
GENEREX
                BIOTECHNOLOGY CORPORATION
Date: January
                20, 2006
By:
/s/
                Rose C. Perri
Chief
                Operating Officer and
Chief
                Financial Officer
(principal
                financial officer)
EXHIBIT
      INDEX
4.1
Amendment
                No. 4 to Securities Purchase Agreement and Registration Rights Agreement
                entered into by and between Generex Biotechnology Corporation and
                the
                Purchasers listed on the signature pages thereto
4.2
Form
                of AIR Debentures
4.3
Form
                of AIR Warrants
4.4
Form
                of New Additional AIRs