Document:

Exhibit 10.9

 

NEITHER THIS SECURITY NOR THE SECURITY INTO WHICH
THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

 

	
  Warrant No. W-April08-1

  	
   

  	
  75,000 Warrants

  

 

COMMON STOCK

PURCHASE WARRANT

 

OF

 

VIRIUM
PHARMACEUTICALS INC.

 

VIRIUM PHARMACEUTICALS INC., a New
York corporation (the “Company”), hereby certifies that, for value
received, Dr. Jon Rogers, M.D., (the “Warrant Holder”) is
the owner of the number of common stock purchase warrants (“Warrants”)
specified above, each of which entitles the holder thereof to purchase, at any
time during the period commencing on the Commencement Date (as defined herein)
and ending on the Expiration Date (as defined herein), one fully paid and
non-assessable share of common stock, par value $0.001 per share, of the
Company (the “Common Stock”) at a purchase price equal to the Exercise
Price (as defined below) in lawful money of the United States of America in
cash, subject to adjustment as hereinafter provided.

 

1.                                       WARRANT; EXERCISE PRICE.

 

1.1                                 This Warrant is issued pursuant
to a Subscription Agreement dated as of the date hereof, by and between the
Company and the Subscriber set forth therein (the “Subscription Agreement”).

 

1.2                                 Each Warrant shall entitle the
Warrant Holder to purchase one share of Common Stock of the Company
(individually, a “Warrant Share” severally, the “Warrant Shares”).

 

 

1.3                                 The purchase price payable upon
exercise of each Warrant (“Exercise Price”) shall initially be $0.60.
The Exercise Price and number of Warrant Shares purchasable pursuant to each
Warrant are subject to adjustment as provided in Section 8.

 

2.                                       EXERCISE OF WARRANT; EXPIRATION
DATE.

 

2.1                                 This Warrant is exercisable at
any time and from time to time commencing the date hereof (“Commencement
Date”) and ending at 5:00 p.m., Eastern Time on April           ,
2013 (the “Expiration Date”), in whole or from time to time in part, at
the option of the Warrant Holder, upon surrender of this Warrant to the Company
together with a duly completed Notice of Exercise in the form attached hereto
and payment of an amount equal to the then applicable Exercise Price multiplied
by the number of Warrant Shares then being purchased upon such exercise.

 

2.2                                 Each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of
business on the day on which this Warrant shall have been surrendered to the Company
as provided in Section 2.1.  At such
time, the person or persons in whose name or names any certificates for Warrant
Shares shall be issuable upon such exercise as provided in Section 2.3
below shall be deemed to have become the holder or holders of record of the
Warrant Shares represented by such certificates.

 

2.3                                 Within five business days after
the exercise of the purchase right represented by this Warrant, the Company at
its expense will use its reasonable best efforts to cause to be issued in the
name of, and delivered to, the Warrant Holder, or, subject to the terms and
conditions hereof, to such other individual or entity as such Warrant Holder
(upon payment by such Warrant Holder of any applicable transfer taxes) may
direct:

 

(a)                                  a certificate or certificates
for the number of full Warrant Shares to which such Warrant Holder shall be
entitled upon such exercise plus, in lieu of any fractional share to which such
Warrant Holder would otherwise be entitled, cash in an amount determined
pursuant to Section 2.4 hereof, and

 

(b)                                 in case such exercise is in part
only, a new Warrant or Warrants (dated the date hereof) of like tenor, stating
on the face or faces thereof the number of shares currently stated on the face
of this Warrant minus the number of such shares purchased by the Warrant Holder
upon such exercise as provided in Section 2.2 (in each case prior to any
adjustments made thereto pursuant to the provisions of this Warrant).

 

2.4                                 The Company shall not be
required upon the exercise of this Warrant to issue any fractional shares, but
shall make an adjustment thereof in cash on the basis of the “last sale price”
(as defined below) of the Company’s Common Stock on the trading day immediately
prior to the date of exercise.  For
purposes of this Section 2.4, “last sale price” shall mean (i) if the
Common Stock is listed on an Exchange or quoted on the Nasdaq markets or NASD
OTC Bulletin Board (or successor such as the Bulletin Board Exchange), the last
sale price of the Common Stock in the principal trading market for the Common
Stock as reported by the Exchange, Nasdaq or the NASD, as the case may be; (ii) if
the Common Stock is not listed on an

 

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Exchange
or quoted on the Nasdaq markets, or the NASD OTC Bulletin Board (or successor
such as the Bulletin Board Exchange), but is traded in the over-the-counter
market, the closing bid price for the Common Stock on the last trading day
preceding the date in question for which such quotations are reported by the
Pink Sheets, LLC or similar publisher of such quotations; and (iii) if the
fair market value of the Common Stock cannot be determined pursuant to clause (i) or
(ii) above, such price as the Board of Directors of the Company shall
determine, in good faith, in the Board’s sole discretion.

 

3.                                       REGISTRATION AND TRANSFER ON
COMPANY BOOKS.

 

3.1                                 The Company (or an agent of the
Company) will maintain a register containing the names and addresses of the
Warrant Holders.  Any Warrant Holder may
change its, his or her address as shown on the warrant register by written
notice to the Company requesting such change.

 

3.2                                 The Company shall register upon
its books any transfer of a Warrant upon surrender of same as provided in Section 5.

 

4.                                       RESERVATION OF SHARES.  The Company will at all times reserve and
keep available, solely for issuance and delivery upon the exercise of this
Warrant, such Warrant Shares and other stock, securities and property, as from
time to time shall be issuable upon the exercise of this Warrant.  As long as the Warrant shall be
outstanding, the Company shall use its commercially reasonable efforts to cause
all Warrant Shares issuable upon exercise of the Warrants to be listed (subject
to official notice of issuance) on each Exchange (or, if applicable on Nasdaq, NASD
OTC Bulletin Board or Pink Sheets, LLC or any successor electronic quotation
service and trading market) on which the Common Stock is then listed and/or
quoted, if any.

 

5.                                       EXCHANGE,
TRANSFER, ASSIGNMENT OR LOSS OR MUTILATION OF WARRANTS.  This Warrant is exchangeable, without expense,
at the option of the Warrant Holder, upon presentation and surrender hereof to
the Company for other warrants of different denominations entitling the holder
thereof to purchase in the aggregate the same number of shares of Common Stock
purchasable hereunder.  Subject to the
terms of Sections 6 and 7, upon surrender of this Warrant to the Company at its
principal office or at the office of its transfer agent, if any, with the
Assignment Form annexed hereto duly executed and funds sufficient to pay any
transfer tax, the Company shall, without charge, execute and deliver a new
Warrant in the name of the assignee named in such instrument of assignment and
this Warrant shall be promptly canceled. 
Subject to the terms of Sections 6 and 7, this Warrant may be divided or
combined with other warrants which carry the same rights upon presentation
hereof at the principal office of the Company together with a written notice
specifying the names and denominations in which new Warrants are to be issued
and signed by the Warrant Holder hereof. 
The term “Warrant” as used herein includes any Warrants into which this
Warrant may be divided or exchanged. 
Upon receipt by the Company of reasonable evidence of the ownership of
and the loss, theft, destruction or mutilation of this Warrant and, in the case
of loss, theft or destruction, of indemnity reasonably satisfactory to the
Company, or, in the case of mutilation,

 

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upon
surrender and cancellation of the mutilated Warrant, the Company shall execute
and deliver in lieu thereof a new Warrant of like tenor and date representing
an equal number of Warrants.

 

6.                                       LIMITATION
ON EXERCISE AND SALES.

 

(a)                                  Each holder of this Warrant
acknowledges that this Warrant and the Warrant Shares have not been registered
under the Securities Act, as of the date of issuance hereof.  This Warrant only may be transferred in
compliance with this Section 6 and Section 7. The Company shall be
under no obligation to issue the shares covered by such exercise unless and
until the Warrant Holder shall have executed the form of exercise annexed
hereto that states that at the time of such exercise that it is then an “accredited
investor” within the meaning of Rule 501 of Regulation D, is acquiring
such shares for its own account, and will not transfer the Warrant Shares
unless pursuant to an effective and current registration statement under the
Securities Act or an exemption from the registration requirements of the
Securities Act and any other applicable restrictions, in which event the
Warrant Holder shall be bound by the provisions of a legend or legends to such
effect that shall be endorsed upon the certificate(s) representing the
Warrant Shares issued pursuant to such exercise.  In such event, the Warrant Shares issued upon
exercise hereof shall be imprinted with a legend in substantially the form
provided in Section 7(b).

 

(b)                                 Warrant
Holder represents and warrants that it is acquiring this Warrant for its own
account, for purposes of investment, and not with a view to, or for sale in
connection with, any distribution thereof within the meaning of the Securities
Act and the rules and regulations promulgated thereunder.  Warrant Holder represents, warrants and
agrees that it will not sell, exercise, transfer or otherwise dispose of this
Warrant (or any interest therein) or any of the Common Stock purchasable upon
exercise hereof, except pursuant to (i) an effective registration
statement under the Securities Act and applicable state securities laws or (ii) an
opinion of counsel, satisfactory to Company, that an exemption from
registration under the Securities Act and such laws is available.  Warrant Holder further acknowledges and
agrees that Company is not required, legally or contractually, so to register
or qualify the Warrant or such Common Stock or to take any action to make such
an exemption available.  Warrant Holder
understands that Company will be relying upon the truth and accuracy of the
representations and warranties contained in this Section 6 in issuing this
Warrant and such Common Stock without first registering the issuance thereof
under the Securities Act or qualifying or registering the issuance thereof
under any state securities laws that may be applicable.

 

(c)                                  Warrant
Holder acknowledges that (i) there is not now, and there may not be in the
future, any public market for the Warrant, (ii) although there currently
is not a public trading market for the Common Stock, there can be no assurance
that any such market will be created and sustained, and (iii) there can be
no assurance that Warrant Holder will be able to liquidate its investment in
Company.  Warrant Holder represents and
warrants that it is familiar with and understands the terms and conditions of Rule 144
promulgated under the Securities Act.

 

(d)                                 Warrant
Holder represents and warrants to Company that (i) it has such knowledge
and experience in financial and business matters as is necessary to enable it
to evaluate the merits and risks of any investments in Company and is not utilizing
any other person to be a purchaser representative in connection with evaluation
of such merits and risks; (ii) it has

 

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no need for liquidity in an investment in Company and
is able to bear the risk of that investment for an indefinite period and to
afford a complete loss thereof; and (iii) it is an “accredited investor”
as that term is defined in Rule 501(a) of Regulation D under the
Securities Act.

 

(e)                                  Warrant
Holder represents and warrants that it has had access to, and has been
furnished with, all of the information it has requested from Company and has
had an opportunity to review the books and records of Company and to discuss
with management and members of the board of directors of Company the business
and financial affairs of Company.

 

(f)                                    Warrant
Holder agrees that at the time of each exercise of this Warrant, unless the
issuance of shares of Common Stock issuable thereupon is pursuant to an
effective registration statement under the Securities Act and under applicable
state blue sky laws, Warrant Holder will provide Company with a letter
embodying the representations and warranties set forth in subsections (b) through
(e), in form and substance satisfactory to Company, and agrees that the certificate(s) representing
any shares issued to it upon any exercise of this Warrant may bear such
restrictive legend as Company may deem necessary to reflect the restricted
status of such shares under the Securities Act unless Company shall have
received from Warrant Holder an opinion of counsel to Warrant Holder,
reasonably satisfactory in form and substance to Company and its counsel, that
such restrictive legend is not required.

 

7.                                       TRANSFER
RESTRICTIONS.

 

(a)                                  If,
at the time of the surrender of this Warrant in connection with any transfer of
this Warrant, the transfer of this Warrant shall not be registered pursuant to
an effective registration statement under the Securities Act and under
applicable state securities or blue sky laws, the Company may require, as a
condition of allowing such transfer (i) that the Warrant Holder or
transferee of this Warrant, as the case may be, furnish to the Company a
written opinion of counsel (which opinion shall be in form, substance and scope
customary for opinions of counsel in comparable transactions and reasonably
satisfactory to counsel for the Company) to the effect that such transfer may
be made without registration under the Securities Act and under applicable
state securities or blue sky laws, (ii) that the holder or transferee
execute and deliver to the Company an investment letter in form and substance
acceptable to the Company, (iii) that transferee agree in writing with the
Company to be bound by the terms and conditions of this Warrant applicable to
the Warrant Holder and (iv) that the transferee be an “accredited investor”
as defined in Regulation D promulgated under the Securities Act.

 

(b)                                 The
Common Stock issuable on the exercise of the Warrant shall bear the following
legend:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION, OR THE SECURITIES COMMISSION OF ANY STATE, IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT

 

5

 

SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.

 

(c)                                  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

 

8.                                       ADJUSTMENT OF EXERCISE PRICE AND
NUMBER OF SHARES DELIVERABLE.
 The Exercise Price and the number of
Warrant Shares purchasable pursuant to each Warrant shall be subject to
adjustment from time to time as hereinafter set forth in this Section 8:

 

(a)                                  In case, prior to the expiration
of this Warrant by exercise or by its terms, the Company shall issue any shares
of its Common Stock as a stock dividend or subdivide the number of outstanding
shares of its Common Stock into a greater number of shares, then in either of
such cases, the then applicable Exercise Price per Warrant Share purchasable
pursuant to this Warrant in effect at the time of such action shall be
proportionately reduced and the number of Warrant Shares at that time
purchasable pursuant to this Warrant shall be proportionately increased; and
conversely, in the event the Company shall reduce the number of outstanding
shares of Common Stock by combining such shares into a smaller number of
shares, then, in such case, the then applicable Exercise Price per Warrant
Share purchasable pursuant to this Warrant in effect at the time of such action
shall be proportionately increased and the number of Warrant Shares at that
time purchasable pursuant to this Warrant shall be proportionately
decreased.  If the Company shall, at any
time during the life of this Warrant, declare a dividend payable in cash on its
Common Stock and shall at substantially the same time offer to its stockholders
a right to purchase new Common Stock from the proceeds of such dividend or for
an amount substantially equal to the dividend, all Common Stock so issued
shall, for the purpose of this Warrant, be deemed to have been issued as a
stock dividend.  Any dividend paid or
distributed upon the Common Stock in stock of any other class of securities
convertible into shares of Common Stock shall be treated as a dividend paid in
Common Stock to the extent that shares of Common Stock are issuable upon
conversion thereof.

 

(b)                                 In case, prior to the expiration
of this Warrant by exercise or by its terms, the Company shall be recapitalized
by reclassifying its outstanding Common Stock, (other than a change in par
value to no par value), or the corporation or a successor corporation shall
consolidate or merge with or convey all or substantially all of its or of any
successor corporation’s property and assets to any other corporation or
corporations (any such other corporations being included within the meaning of
the term “successor corporation” hereinbefore used in the event of any
consolidation or merger of any such other corporation with, or the sale of all
or substantially all of the property of any such other corporation to, another
corporation or corporations), then, as a condition of such recapitalization,
consolidation, merger or conveyance, lawful and adequate provision shall be
made whereby the holder of this Warrant shall thereafter have the right to
purchase, upon the basis and on the terms and conditions specified in this

 

6

 

Warrant, in lieu of the Warrant Shares
theretofore purchasable upon the exercise of this Warrant, such shares of
stock, securities or assets as may be issued or payable with respect to, or in
exchange for, the number of Warrant Shares theretofore purchasable upon the
exercise of this Warrant had such recapitalization, consolidation, merger, or
conveyance not taken place; and in any such event, the rights of the Warrant
Holder to any adjustment in the number of Warrant Shares purchasable upon the
exercise of this Warrant, as herein provided, shall continue and be preserved
in respect of any stock which the Warrant Holder becomes entitled to purchase.

 

(c)                                  In case the Company at any time
while this Warrant shall remain unexpired and unexercised shall sell all or
substantially all of its property or dissolve, liquidate, or wind up its
affairs, lawful provision shall be made as part of the terms of any such sale,
dissolution, liquidation or winding up, so that the holder of this Warrant may
thereafter receive upon exercise hereof in lieu of each Warrant Share that it
would have been entitled to receive, the same kind and amount of any securities
or assets as may be issuable, distributable or payable upon any such sale,
dissolution, liquidation or winding up with respect to each share of Common
Stock of the Company, provided, however, that in any case of any such sale or
of dissolution, liquidation or winding up, the right to exercise this Warrant
shall terminate on a date fixed by the Company; such date so fixed to be not
earlier than 5:00 p.m., Eastern Time, on the forty-fifth day next
succeeding the date on which notice of such termination of the right to
exercise this Warrant has been given by mail to the registered holder of this
Warrant at its address as it appears on the books of the Company.

 

9.                                       VOLUNTARY ADJUSTMENT BY THE
COMPANY.  The Company may, at its option, at any time
during the term of the Warrants, reduce the then current Exercise Price to any
amount deemed appropriate by the Board of Directors of the Company and/or
extend the date of the expiration of the Warrants.

 

10.                                 RIGHTS OF THE HOLDER. The Warrant Holder shall not,
by virtue hereof, be entitled to any rights of a stockholder in the Company,
either at law or equity, and the rights of the Warrant Holder are limited to
those expressed in this Warrant and are not enforceable against the Company except
to the extent set forth herein. This Warrant does not entitle the Holder to any
voting rights or other rights as a shareholder of the Company prior to the
Exercise Date and then only with respect to the Warrant Shares to be issued
with respect thereto.

 

11.                                 SUCCESSORS.  The rights and obligations of the parties to
this Warrant will inure to the benefit of and be binding upon the parties
hereto and their respective heirs, successors, assigns, pledgees, transferees
and purchasers.

 

12.                                 CHANGE OR WAIVER.  Any term of this Warrant may be changed or
waived only by an instrument in writing signed by the party against whom
enforcement of the change or waiver is sought.

 

13.                                 HEADINGS.  The headings in this Warrant are for purposes
of reference only and shall not limit or otherwise affect the meaning of any
provision of this Warrant. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid

 

7

 

under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

 

14.                                 GOVERNING
LAW.  This Warrant shall be governed by and
construed in accordance with the laws of the State of New York.  Any action brought by either party against
the other concerning the transactions contemplated by this Note shall be
brought only in the state courts of New York or in the federal courts located
in the state of New York.  The prevailing
party shall be entitled to recover from the other party its reasonable attorney’s
fees and costs.

 

15.                                 MAILING OF NOTICES, ETC.  All
notices and other communications required or permitted hereunder shall be in
writing and shall be deemed to have been duly given one (1) business day
after delivery to an overnight carrier with instructions to deliver to the
applicable address set forth below, or, if sent by facsimile, upon receipt of a
confirmation of delivery:

 

	
  Registered Holder:

  	
   

  	
  To his or her last known address as
  indicated on the Company’s books and records.

  
	
   

  	
   

  	
   

  
	
  The Company:

  	
   

  	
  Virium Pharmaceuticals Inc.

  
	
   

  	
   

  	
  116 Village Blvd.

  
	
   

  	
   

  	
  Suite 200

  
	
   

  	
   

  	
  Princeton, NJ 08540

  
	
   

  	
   

  	
  Attention:  President

  
	
   

  	
   

  	
  Fax: (908) 292-1096

  

 

[Signature Page Follows]

 

8

 

IN WITNESS WHEREOF, the Company has
caused this Warrant to be signed by its duly authorized officer as of April 17,
2008.

 

 

	
   

  	
  VIRIUM PHARMACEUTICALS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James M. Pachence

  
	
   

  	
  Name:
  

  	
  James
  M. Pachence

  
	
   

  	
  Title:

  	
  President
  

  

 

9

 

Notice of Exercise

To Be Executed by the Warrant
Holder

In Order to Exercise Warrants

 

TO:
  Virium Pharmaceuticals Inc.

 

The undersigned hereby: (1) irrevocably
subscribes for and offers to purchase               
shares of the common stock, par value $.001 per share (“Common Stock”),
of Virium Pharmaceuticals Inc., pursuant to Warrant No.       
heretofore issued to                                       
on April         , 2008 and (2) encloses
a cash payment of $                    
representing the aggregate exercise price for such shares.

 

The undersigned hereby represents and warrants to
the Company that it is an “Accredited Investor” within the meaning of Rule 501
of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities
Act”), and is acquiring these securities for its own account and not with a
view to, or for sale in connection with, any distribution thereof, nor with any
present intention of distributing or selling the same.  The undersigned further represents that it
does not have any contract, agreement, understanding or arrangement with any
person to sell, transfer or grant the shares of Common Stock issuable under
this Warrant.  The undersigned
understands that the shares it will be receiving are “restricted securities”
under Federal securities laws inasmuch as they are being acquired from Virium
Pharmaceuticals Inc., in transactions not including any public offering and
that under such laws, such shares may only be sold pursuant to an effective and
current registration statement under the Securities Act or an exemption from
the registration requirements of the Securities Act and any other applicable
restrictions, in which event a legend or legends will be placed upon the
certificate(s) representing the Common Stock issuable under this Warrant
denoting such restrictions.  The undersigned
understands and acknowledges that the Company will rely on the accuracy of
these representations and warranties in issuing the securities underlying the
Warrant.

 

[warrant notice of exercise
signature page to follow]

 

10

 

[warrant notice of exercise
signature page]

 

Date:

 

Warrant Holder Name:

 

Taxpayer Identification Number:

 

By:

 

Printed Name:

 

Title:

 

Address:

 

Note: The above signature should correspond exactly
with the name on the face of this Warrant or with the name of assignee
appearing in assignment form below.

 

AND,
if said number of shares shall be less than the total number of shares
purchasable under the Warrant, a new Warrant is to be issued in the name of
said undersigned for the balance remaining of the shares purchasable thereunder
less any fraction of a share paid in cash and delivered to the address stated
above.

 

 

ASSIGNMENT FORM

To
be executed by the Warrant Holder

In
order to Assign Warrants

 

FOR
VALUE RECEIVED,                                                                        
hereby sell, assigns and transfer unto

 

PLEASE
INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

 

 

 

	
   

  
	
   

  
	
   

  
	
   

  
	
   

  

(Please print or type name
and address)

 

                                            
of the Warrants represented by this Warrant, and hereby irrevocably constitutes
and appoints                                                 
Attorney to transfer this Warrant on the books of the Company, with full power
of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature
  of Registered Holder)

  

 

 

In
addition to executing this Assignment Form, the Warrant Holder and the
transferee must comply with the other requirements for transfer set forth in
Sections 6 and 7 of the Warrant.

 

CERTIFICATION OF STATUS OF TRANSFEREE

TO BE EXECUTED BY THE TRANSFEREE OF THIS WARRANT

 

The
undersigned transferee hereby certifies to the registered holder of this
Warrant and to VIRIUM PHARMACEUTICALS INC. that the transferee is an “accredited
investor” within the meaning of Rule 501 of Regulation D promulgated under
the Securities Act of 1933, as amended.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature of Transferee)

  

 

12Exhibit 10.10

 

NEITHER THIS SECURITY NOR THE SECURITY INTO WHICH
THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

 

	
  Warrant No.

  	
  W-PA-1

  	
   

  	
  50,000

  	
  Warrants

  

 

Void after 5:00 p.m.,
Eastern Standard Time on May 30, 2012

 

COMMON STOCK

PURCHASE WARRANT

 

OF

 

VIRIUM
PHARMACEUTICALS INC.

 

VIRIUM PHARMACEUTICALS INC., a New
York corporation (the “Company”), hereby certifies that, for value received,                 
(the “Warrant
Holder”) is the owner of the number of common stock purchase warrants (“Warrants”)
specified above, each of which entitles the holder thereof to purchase, at any
time during the period commencing on the Commencement Date (as defined herein)
and ending on the Expiration Date (as defined herein), one fully paid and
non-assessable share of common stock, par value $0.001 per share, of the
Company (the “Common Stock”) at a purchase price equal to the Exercise
Price (as defined below) in lawful money of the United States of America in
cash, subject to adjustment as hereinafter provided.

 

1.             WARRANT; EXERCISE PRICE.

 

1.1           This Warrant is issued pursuant to a Subscription Agreement
dated as of the date hereof, by and among the Company and the Subscribers set
forth therein (the “Subscription Agreement”).

 

1.2           Each Warrant shall entitle the Warrant Holder to purchase
one share of Common Stock of the Company (individually, a “Warrant Share”
severally, the “Warrant Shares”).

 

 

1.3           The purchase price payable upon exercise of each Warrant (“Exercise
Price”) shall initially be $1.00. The Exercise Price and number of Warrant
Shares purchasable pursuant to each Warrant are subject to adjustment as
provided in Section 8.

 

2.             EXERCISE OF  WARRANT; EXPIRATION DATE.

 

2.1           This Warrant is exercisable at any time and from time to
time commencing the date hereof (“Commencement Date”) and ending at 5:00 p.m.,
Eastern Time on May 30, 2012 (the “Expiration Date”), in whole or
from time to time in part, at the option of the Warrant Holder, upon surrender
of this Warrant to the Company together with a duly completed Notice of
Exercise in the form attached hereto and payment of an amount equal to the then
applicable Exercise Price multiplied by the number of Warrant Shares then being
purchased upon such exercise.

 

2.2           Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the day on which this
Warrant shall have been surrendered to the Company as provided in Section 2.1.  At such time, the person or persons in whose
name or names any certificates for Warrant Shares shall be issuable upon such
exercise as provided in Section 2.3 below shall be deemed to have become
the holder or holders of record of the Warrant Shares represented by such
certificates.

 

2.3           Within three business days after the exercise of the
purchase right represented by this Warrant, the Company at its expense will use
its reasonable best efforts to cause to be issued in the name of, and delivered
to, the Warrant Holder, or, subject to the terms and conditions hereof, to such
other individual or entity as such Warrant Holder (upon payment by such Warrant
Holder of any applicable transfer taxes) may direct:

 

(a)           a certificate or certificates for the number of full Warrant
Shares to which such Warrant Holder shall be entitled upon such exercise plus,
in lieu of any fractional share to which such Warrant Holder would otherwise be
entitled, cash in an amount determined pursuant to Section 2.4 hereof, and

 

(b)           in case such exercise is in part only, a new Warrant or
Warrants (dated the date hereof) of like tenor, stating on the face or faces
thereof the number of shares currently stated on the face of this Warrant minus
the number of such shares purchased by the Warrant Holder upon such exercise as
provided in Section 2.2 (in each case prior to any adjustments made
thereto pursuant to the provisions of this Warrant).

 

2.4           The Company shall not be required upon the exercise of this
Warrant to issue any fractional shares, but shall make an adjustment thereof in
cash on the basis of the “last sale price” (as defined below) of the Company’s
Common Stock on the trading day immediately prior to the date of exercise.  For purposes of this Section 2.4, “last
sale price” shall mean (i) if the Common Stock is listed on an Exchange or
quoted on the Nasdaq markets or NASD OTC Bulletin Board (or successor such as
the Bulletin Board Exchange), the last sale price of the Common Stock in the
principal trading market for the Common Stock as reported by the Exchange,
Nasdaq or the NASD, as the case may be; (ii) if the Common Stock is not
listed on an

 

2

 

Exchange or quoted on the Nasdaq markets, or
the NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange),
but is traded in the over-the-counter market, the closing bid price for the
Common Stock on the last trading day preceding the date in question for which
such quotations are reported by the Pink Sheets, LLC or similar publisher of
such quotations; and (iii) if the fair market value of the Common Stock
cannot be determined pursuant to clause (i) or (ii) above, such price
as the Board of Directors of the Company shall determine, in good faith, in the
Board’s sole discretion.

 

3.             REGISTRATION AND TRANSFER ON
COMPANY BOOKS.

 

3.1           The Company (or an agent of the Company) will maintain a
register containing the names and addresses of the Warrant Holders.  Any Warrant Holder may change its, his or her
address as shown on the warrant register by written notice to the Company
requesting such change.

 

3.2           The Company shall register upon its books any transfer of a
Warrant upon surrender of same as provided in Section 5.

 

4.             RESERVATION OF SHARES.  The Company will at all times reserve and
keep available, solely for issuance and delivery upon the exercise of this
Warrant, such Warrant Shares and other stock, securities and property, as from
time to time shall be issuable upon the exercise of this Warrant.  As long as the Warrant shall be
outstanding, the Company shall use its commercially reasonable efforts to cause
all Warrant Shares issuable upon exercise of the Warrants to be listed (subject
to official notice of issuance) on each Exchange (or, if applicable on Nasdaq, NASD
OTC Bulletin Board or Pink Sheets, LLC or any successor electronic quotation
service and trading market) on which the Common Stock is then listed and/or
quoted, if any.

 

5.             EXCHANGE,
TRANSFER, ASSIGNMENT OR LOSS OR MUTILATION OF 
WARRANTS.  This Warrant is
exchangeable, without expense, at the option of the Warrant Holder, upon
presentation and surrender hereof to the Company for other warrants of
different denominations entitling the holder thereof to purchase in the
aggregate the same number of shares of Common Stock purchasable hereunder.  Subject to the terms of Sections 6 and 7,
upon surrender of this Warrant to the Company at its principal office or at the
office of its transfer agent, if any, with the Assignment Form annexed
hereto duly executed and funds sufficient to pay any transfer tax, the Company
shall, without charge, execute and deliver a new Warrant in the name of the
assignee named in such instrument of assignment and this Warrant shall be
promptly canceled.  Subject to the terms
of Sections 6 and 7, this Warrant may be divided or combined with other
warrants which carry the same rights upon presentation hereof at the principal
office of the Company together with a written notice specifying the names and
denominations in which new Warrants are to be issued and signed by the Warrant
Holder hereof.  The term “Warrant” as
used herein includes any Warrants into which this Warrant may be divided or
exchanged.  Upon receipt by the Company
of reasonable evidence of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and, in the case of loss, theft or destruction, of
indemnity reasonably satisfactory to the Company, or, in the case of
mutilation,

 

3

 

upon surrender and cancellation of the
mutilated Warrant, the Company shall execute and deliver in lieu thereof a new
Warrant of like tenor and date representing an equal number of Warrants.

 

6.             LIMITATION
ON EXERCISE AND SALES.

 

(a)           Each holder of this Warrant acknowledges
that this Warrant and the Warrant Shares have not been registered under the
Securities Act, as of the date of issuance hereof.  This Warrant only may be transferred in
compliance with this Section 6 and Section 7. The Company shall be
under no obligation to issue the shares covered by such exercise unless and
until the Warrant Holder shall have executed the form of exercise annexed
hereto that states that at the time of such exercise that it is then an “accredited
investor” within the meaning of Rule 501 of Regulation D, is acquiring
such shares for its own account, and will not transfer the Warrant Shares
unless pursuant to an effective and current registration statement under the
Securities Act or an exemption from the registration requirements of the
Securities Act and any other applicable restrictions, in which event the
Warrant Holder shall be bound by the provisions of a legend or legends to such
effect that shall be endorsed upon the certificate(s) representing the
Warrant Shares issued pursuant to such exercise.  In such event, the Warrant Shares issued upon
exercise hereof shall be imprinted with a legend in substantially the form
provided in Section 7(b).

 

(b)           Warrant Holder
represents and warrants that it is acquiring this Warrant for its own account,
for purposes of investment, and not with a view to, or for sale in connection
with, any distribution thereof within the meaning of the Securities Act and the
rules and regulations promulgated thereunder.  Warrant Holder represents, warrants and
agrees that it will not sell, exercise, transfer or otherwise dispose of this
Warrant (or any interest therein) or any of the Common Stock purchasable upon
exercise hereof, except pursuant to (i) an effective registration
statement under the Securities Act and applicable state securities laws or (ii) an
opinion of counsel, satisfactory to Company, that an exemption from
registration under the Securities Act and such laws is available.  Warrant Holder further acknowledges and
agrees that Company is not required, legally or contractually, so to register
or qualify the Warrant or such Common Stock or to take any action to make such
an exemption available.  Warrant Holder
understands that Company will be relying upon the truth and accuracy of the
representations and warranties contained in this Section 6 in issuing this
Warrant and such Common Stock without first registering the issuance thereof
under the Securities Act or qualifying or registering the issuance thereof
under any state securities laws that may be applicable.

 

(c)           Warrant Holder
acknowledges that (i) there is not now, and there may not be in the
future, any public market for the Warrant, (ii) although there currently
is not a public trading market for the Common Stock, there can be no assurance
that any such market will be created and sustained, and (iii) there can be
no assurance that Warrant Holder will be able to liquidate its investment in
Company.  Warrant Holder represents and
warrants that it is familiar with and understands the terms and conditions of Rule 144
promulgated under the Securities Act.

 

(d)           Warrant Holder
represents and warrants to Company that (i) it has such knowledge and
experience in financial and business matters as is necessary to enable it to
evaluate the merits and risks of any investments in Company and is not
utilizing any other person to be a purchaser representative in connection with
evaluation of such merits and risks; and (ii) it

 

4

 

has no need for liquidity
in an investment in Company and is able to bear the risk of that investment for
an indefinite period and to afford a complete loss thereof.

 

(e)           Warrant Holder
represents and warrants that it has had access to, and has been furnished with,
all of the information it has requested from Company and has had an opportunity
to review the books and records of Company and to discuss with management and
members of the board of directors of Company the business and financial affairs
of Company.

 

(f)            Warrant Holder agrees
that at the time of each exercise of this Warrant, unless the issuance of
shares of Common Stock issuable thereupon is pursuant to an effective
registration statement under the Securities Act and under applicable state blue
sky laws, Warrant Holder will provide Company with a letter embodying the
representations and warranties set forth in subsections (b) through (e),
in form and substance satisfactory to Company, and agrees that the certificate(s) representing
any shares issued to it upon any exercise of this Warrant may bear such
restrictive legend as Company may deem necessary to reflect the restricted
status of such shares under the Securities Act unless Company shall have
received from Warrant Holder an opinion of counsel to Warrant Holder,
reasonably satisfactory in form and substance to Company and its counsel, that
such restrictive legend is not required.

 

7.             TRANSFER
RESTRICTIONS.

 

(a)           If, at the time of the
surrender of this Warrant in connection with any transfer of this Warrant, the
transfer of this Warrant shall not be registered pursuant to an effective
registration statement under the Securities Act and under applicable state
securities or blue sky laws, the Company may require, as a condition of
allowing such transfer (i) that the Warrant Holder or transferee of this
Warrant, as the case may be, furnish to the Company a written opinion of
counsel (which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions and reasonably satisfactory to
counsel for the Company) to the effect that such transfer may be made without
registration under the Securities Act and under applicable state securities or
blue sky laws, (ii) that the holder or transferee execute and deliver to
the Company an investment letter in form and substance acceptable to the
Company, (iii) that transferee agree in writing with the Company to be
bound by the terms and conditions of this Warrant applicable to the Warrant
Holder and (iv) that the transferee be an “accredited investor” as defined
in Regulation D promulgated under the Securities Act.

 

(b)           The Common Stock
issuable on the exercise of the Warrant shall bear the following legend:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION, OR THE SECURITIES COMMISSION OF ANY STATE, IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT

 

5

 

AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH
SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

(c)           The Holder acknowledges
that the Warrant Shares acquired upon the exercise of this Warrant, if not
registered, will have restrictions upon resale imposed by state and federal
securities laws.

 

8.             ADJUSTMENT OF EXERCISE PRICE AND
NUMBER OF SHARES DELIVERABLE.
 The Exercise Price and the number of
Warrant Shares purchasable pursuant to each Warrant shall be subject to
adjustment from time to time as hereinafter set forth in this Section 8:

 

(a)           In case, prior to the expiration
of this Warrant by exercise or by its terms, the Company shall issue any shares
of its Common Stock as a stock dividend or subdivide the number of outstanding
shares of its Common Stock into a greater number of shares, then in either of
such cases, the then applicable Exercise Price per Warrant Share purchasable
pursuant to this Warrant in effect at the time of such action shall be proportionately
reduced and the number of Warrant Shares at that time purchasable pursuant to
this Warrant shall be proportionately increased; and conversely, in the event
the Company shall reduce the number of outstanding shares of Common Stock by
combining such shares into a smaller number of shares, then, in such case, the
then applicable Exercise Price per Warrant Share purchasable pursuant to this
Warrant in effect at the time of such action shall be proportionately increased
and the number of Warrant Shares at that time purchasable pursuant to this
Warrant shall be proportionately decreased. 
If the Company shall, at any time during the life of this Warrant,
declare a dividend payable in cash on its Common Stock and shall at
substantially the same time offer to its stockholders a right to purchase new
Common Stock from the proceeds of such dividend or for an amount substantially
equal to the dividend, all Common Stock so issued shall, for the purpose of
this Warrant, be deemed to have been issued as a stock dividend.  Any dividend paid or distributed upon the
Common Stock in stock of any other class of securities convertible into shares
of Common Stock shall be treated as a dividend paid in Common Stock to the
extent that shares of Common Stock are issuable upon conversion thereof.

 

(b)           In case, prior to the expiration
of this Warrant by exercise or by its terms, the Company shall be recapitalized
by reclassifying its outstanding Common Stock, (other than a change in par
value to no par value), or the corporation or a successor corporation shall
consolidate or merge with or convey all or substantially all of its or of any
successor corporation’s property and assets to any other corporation or
corporations (any such other corporations being included within the meaning of
the term “successor corporation” hereinbefore used in the event of any
consolidation or merger of any such other corporation with, or the sale of all
or substantially all of the property of any such other corporation to, another
corporation or corporations), then, as a condition of such recapitalization,
consolidation, merger or conveyance, lawful and adequate provision shall be
made whereby the holder of this Warrant shall thereafter have the right to
purchase, upon the basis and on the terms and conditions specified in this
Warrant, in lieu of the Warrant Shares theretofore purchasable upon the
exercise of this Warrant,

 

6

 

such shares of
stock, securities or assets as may be issued or payable with respect to, or in
exchange for, the number of Warrant Shares theretofore purchasable upon the
exercise of this Warrant had such recapitalization, consolidation, merger, or
conveyance not taken place; and in any such event, the rights of the Warrant
Holder to any adjustment in the number of Warrant Shares purchasable upon the
exercise of this Warrant, as herein provided, shall continue and be preserved
in respect of any stock which the Warrant Holder becomes entitled to purchase.

 

(c)           In case the Company at any time
while this Warrant shall remain unexpired and unexercised shall sell all or
substantially all of its property or dissolve, liquidate, or wind up its
affairs, lawful provision shall be made as part of the terms of any such sale,
dissolution, liquidation or winding up, so that the holder of this Warrant may
thereafter receive upon exercise hereof in lieu of each Warrant Share that it
would have been entitled to receive, the same kind and amount of any securities
or assets as may be issuable, distributable or payable upon any such sale,
dissolution, liquidation or winding up with respect to each share of Common
Stock of the Company, provided, however, that in any case of any such sale or
of dissolution, liquidation or winding up, the right to exercise this Warrant
shall terminate on a date fixed by the Company; such date so fixed to be not
earlier than 5:00 p.m., Eastern Time, on the forty-fifth day next
succeeding the date on which notice of such termination of the right to
exercise this Warrant has been given by mail to the registered holder of this
Warrant at its address as it appears on the books of the Company.

 

9.             VOLUNTARY ADJUSTMENT BY THE
COMPANY.  The Company may, at its option, at any time
during the term of the Warrants, reduce the then current Exercise Price to any
amount deemed appropriate by the Board of Directors of the Company and/or
extend the date of the expiration of the Warrants.

 

10.           RIGHTS OF THE HOLDER. The Warrant Holder shall not,
by virtue hereof, be entitled to any rights of a stockholder in the Company,
either at law or equity, and the rights of the Warrant Holder are limited to
those expressed in this Warrant and are not enforceable against the Company
except to the extent set forth herein. This Warrant does not entitle the Holder
to any voting rights or other rights as a shareholder of the Company prior to
the Exercise Date and then only with respect to the Warrant Shares to be issued
with respect thereto.

 

11.           NOTICES OF RECORD DATE.  In case:

 

(a)           the Company shall take a record
of the holders of its Common Stock (or other stock or securities at the time
deliverable upon the exercise of this Warrant) for the purpose of entitling or
enabling them to receive any dividend or other distribution, or to receive any
right to subscribe for or purchase any shares of any class or any other
securities, or to receive any other right, or

 

(b)           of any capital reorganization of
the Company, any reclassification of the capital stock of the Company, any
consolidation or merger of the Company with or into another corporation (other
than a consolidation or merger in which the Company is the surviving entity),
or any transfer of all or substantially all of the assets of the Company, or

 

7

 

(c)           of the voluntary or involuntary
dissolution, liquidation or winding-up of the Company,

 

then, and in each such case, the Company will
mail or cause to be mailed to the Warrant Holder a notice specifying, as the
case may be, (i) the date on which a record is to be taken for the purpose
of such dividend, distribution or right, and stating the amount and character
of such dividend, distribution or right, or (ii) the effective date on
which such reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up is to take place, and the time, if any
is to be fixed, as of which the holders of record of Common Stock (or such
other stock or securities at the time deliverable upon the exercise of
this  Warrant) shall be entitled to
exchange their shares of Common Stock (or such other stock or securities) for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding-up.  Such notice shall be mailed
at least ten days prior to the record date or effective date for the event
specified in such notice, provided that the failure to mail such notice shall
not affect the legality or validity of any such action.

 

12.           SUCCESSORS.  The rights and obligations of the parties to
this Warrant will inure to the benefit of and be binding upon the parties
hereto and their respective heirs, successors, assigns, pledgees, transferees
and purchasers.

 

13.           CHANGE OR WAIVER.  Any term of this Warrant may be changed or waived
only by an instrument in writing signed by the party against whom enforcement
of the change or waiver is sought.

 

14.           HEADINGS.  The headings in this Warrant are for purposes
of reference only and shall not limit or otherwise affect the meaning of any
provision of this Warrant. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

 

15.           GOVERNING
LAW.  This Note shall be governed by and construed
in accordance with the laws of the State of New York.  Any action brought by either party against
the other concerning the transactions contemplated by this Note shall be
brought only in the state courts of New York or in the federal courts located
in the state of New York.  The prevailing
party shall be entitled to recover from the other party its reasonable attorney’s
fees and costs.

 

16.           MAILING
OF NOTICES, ETC.  All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed to have been duly given one (1) business
day after delivery to an overnight carrier with instructions to deliver to the
applicable address set forth below, or, if sent by facsimile, upon receipt of a
confirmation of delivery:

 

8

 

	
  Registered Holder:

  	
   

  	
  To his or her last known address as indicated on the
  Company’s books and records.

  
	
   

  	
   

  	
   

  
	
  The Company:

  	
   

  	
  Virium Pharmaceuticals Inc.

  
	
   

  	
   

  	
  116 Village Blvd.

  
	
   

  	
   

  	
  Suite 200

  
	
   

  	
   

  	
  Princeton, NJ 08540

  
	
   

  	
   

  	
  Attention: President

  
	
   

  	
   

  	
  Fax: (908) 292-1096

  

 

[Signature Page Follows]

 

9

 

IN WITNESS WHEREOF, the Company has
caused this Warrant to be signed by its duly authorized officer as of May 30, 2008.

 

 

	
   

  	
  VIRIUM PHARMACEUTICALS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James M. Pachence

  
	
   

  	
  Name:
  

  	
  James
  M. Pachence

  
	
   

  	
  Title:
   

  	
  President/CEO

  

 

10

 

Notice of Exercise

To Be Executed by the Warrant
Holder

In Order to Exercise Warrants

 

TO:
  Virium Pharmaceuticals Inc.

 

The undersigned hereby: (1) irrevocably
subscribes for and offers to purchase               
shares of the common stock, par value $.001 per share (“Common Stock”),
of Virium Pharmaceuticals Inc., pursuant to Warrant No. W-PA-1 heretofore issued to Dawson James Securities, Inc.
on May 30, 2007 and (2) encloses a cash payment of $                    
representing the aggregate exercise price for such shares.

 

The undersigned hereby represents and warrants to
the Company that it is an “Accredited Investor” within the meaning of Rule 501
of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities
Act”), and is acquiring these securities for its own account and not with a
view to, or for sale in connection with, any distribution thereof, nor with any
present intention of distributing or selling the same.  The undersigned further represents that it
does not have any contract, agreement, understanding or arrangement with any
person to sell, transfer or grant the shares of Common Stock issuable under
this Warrant.  The undersigned
understands that the shares it will be receiving are “restricted securities”
under Federal securities laws inasmuch as they are being acquired from Virium
Pharmaceuticals Inc., in transactions not including any public offering and
that under such laws, such shares may only be sold pursuant to an effective and
current registration statement under the Securities Act or an exemption from
the registration requirements of the Securities Act and any other applicable
restrictions, in which event a legend or legends will be placed upon the
certificate(s) representing the Common Stock issuable under this Warrant
denoting such restrictions.  The
undersigned understands and acknowledges that the Company will rely on the
accuracy of these representations and warranties in issuing the securities
underlying the Warrant.

 

[warrant notice of exercise
signature page to follow]

 

11

 

[warrant notice of exercise
signature page]

 

	
  Date:

  
	
   

  
	
  Warrant Holder Name:

  
	
   

  
	
  Taxpayer Identification Number:

  
	
   

  
	
  By:

  
	
   

  
	
  Printed Name:

  
	
   

  
	
  Title:

  
	
   

  
	
  Address:

  

 

Note: The above signature should correspond exactly
with the name on the face of this Warrant or with the name of assignee
appearing in assignment form below.

 

AND,
if said number of shares shall be less than the total number of shares
purchasable under the Warrant, a new Warrant is to be issued in the name of
said undersigned for the balance remaining of the shares purchasable thereunder
less any fraction of a share paid in cash and delivered to the address stated
above.

 

 

ASSIGNMENT FORM

To
be executed by the Warrant Holder

In
order to Assign Warrants

 

FOR
VALUE RECEIVED,                                                                        
hereby sell, assigns and transfer unto

 

	
  PLEASE
  INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  

 

(Please print or type name
and address)

 

                                            
of the Warrants represented by this Warrant, and hereby irrevocably constitutes
and appoints                                                 
Attorney to transfer this Warrant on the books of the Company, with full power
of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature
  of Registered Holder)

  

 

 

In addition
to executing this Assignment Form, the Warrant Holder and the transferee must
comply with the other requirements for transfer set forth in Sections 6 and 7
of the Warrant.

 

CERTIFICATION OF STATUS OF TRANSFEREE

TO BE EXECUTED BY THE TRANSFEREE OF THIS WARRANT

 

The
undersigned transferee hereby certifies to the registered holder of this
Warrant and to VIRIUM PHARMACEUTICALS INC. that the transferee is an “accredited
investor” within the meaning of Rule 501 of Regulation D promulgated under
the Securities Act of 1933, as amended.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature of Transferee)

  

 

13

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