Document:

Exhibit
      10.10

    

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”)
      OR
      UNDER THE SECURITIES LAWS OF ANY STATE OR JURISDICTION AND MAY NOT BE SOLD,
      OFFERED FOR SALE OR OTHERWISE TRANSFERRED UNLESS REGISTERED OR QUALIFIED UNDER
      THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS THE COMPANY RECEIVES
      AN
      OPINION, IN REASONABLY ACCEPTABLE FORM AND SCOPE, OF COUNSEL REASONABLY
      SATISFACTORY TO THE COMPANY, THAT REGISTRATION, QUALIFICATION OR OTHER SUCH
      ACTIONS ARE NOT REQUIRED UNDER ANY SUCH LAWS. 

    

    LAPOLLA
      INDUSTRIES, INC.

     

    WARRANT
      TO PURCHASE SHARES OF COMMON STOCK

    (Expires
      February 29, 2012)

    

    
      	
              Warrant
                No. CV-4

            	
              250,000
                Shares of Common Stock

            

    

    

    FOR
      VALUE
      RECEIVED, subject to the provisions set forth below, the undersigned, LAPOLLA
      INDUSTRIES, INC., a Delaware corporation (the “Company”),
      hereby certifies that ComVest Capital, LLC,
      a
      Delaware limited liability company, or its registered assigns (the “Holder”),
      is
      entitled to purchase from the Company up to two hundred fifty thousand (250,000)
      fully paid and nonassessable shares (the “Warrant
      Shares”)
      of the
      Company’s common stock, $.01 par value per share (the “Common
      Shares”),
      for
      cash at a price of $0.55 per share (the “Exercise Price”) at any time and from
      time to time from and after the date hereof and until 5:00 p.m. (Central time)
      on February 29, 2012 (the “Expiration
      Date”)
      upon
      surrender to the Company at its principal office (or at such other location
      as
      the Company may advise the Holder in writing) of this Warrant properly endorsed
      with the Notice of Exercise attached hereto duly filled in and signed and,
      if
      applicable, upon payment in cash or by check of the aggregate Exercise Price
      for
      the number of shares for which this Warrant is being exercised determined in
      accordance with the provisions hereof. The Exercise Price and the number of
      shares purchasable hereunder are subject to adjustment as provided in
      Section 3 of this Warrant.

    

    
      	 	
              1.

            	
              Exercise
                of Warrant.

            

    

    

    1.1.    Exercise.
      This
      Warrant shall be exercisable from the date hereof until the Expiration Date,
      and
      this Warrant shall expire on the Expiration Date. Upon exercise of this Warrant,
      the Exercise Price shall be payable in cash or by check. This Warrant may be
      exercised in whole or in part so long as any exercise in part hereof would
      not
      involve the issuance of fractional Warrant Shares. If exercised in part, the
      Company shall deliver to the Holder a new Warrant, identical in form to this
      Warrant, in the name of the Holder, evidencing the right to purchase the number
      of Warrant Shares as to which this Warrant has not been exercised, which new
      Warrant shall be signed by an appropriate officer of the Company. The term
      “Warrant” as used herein shall include any subsequent Warrant issued as provided
      herein.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.2.    Exercise
      Procedures; Delivery of Certificate.
      Upon
      surrender of this Warrant with a duly executed Notice of Exercise in the form
      of
Annex A
      attached
      hereto, together with payment of the Exercise Price for the Warrant Shares
      purchased, at the Company’s principal executive offices (the “Designated
      Office”),
      the
      Holder shall be entitled to receive a certificate or certificates for the
      Warrant Shares so purchased. The Company agrees that the Warrant Shares shall
      be
      deemed to have been issued to the Holder as of the close of business on the
      date
      on which this Warrant shall have been surrendered together with the Notice
      of
      Exercise and payment for such Warrant Shares.

    

    1.3.    Cashless
      Exercise.
      In
      connection with any exercise of this Warrant, in lieu of payment of the Exercise
      Price, the Holder may exercise this Warrant, in whole or in part, by
      presentation and surrender of this Warrant to the Company, together with a
      Cashless Exercise Form in the form attached hereto as Annex B
      (or a
      reasonable facsimile thereof) duly executed (a “Cashless
      Exercise”).
      Acceptance by the Company of such presentation and surrender shall be deemed
      a
      waiver of the Holder's obligation to pay all or any portion of the Exercise
      Price, as the case may be. In the event of a Cashless Exercise, the Holder
      shall
      exchange this Warrant for that number of Common Shares determined by multiplying
      the number of Common Shares for which this Warrant is being exercised by a
      fraction, (a) the numerator of which shall be the difference between (i) the
      then current market price per Common Share, and (ii) the Exercise Price, and
      (b)
      the denominator of which shall be the then current market price per Common
      Share. For purposes of any computation under this Section l.3, the then current
      market price per Common Share at any date shall be deemed to be the average
      of
      the daily trading price for the ten (10) consecutive trading days immediately
      prior to the Cashless Exercise. If, during such measuring period, there shall
      occur any event which gives rise to any adjustment of the Exercise Price, then
      a
      corresponding adjustment shall be made with respect to the closing prices of
      the
      Common Shares for the days prior to the Effective Date of such adjustment event.
      As used herein, the term “trading price” on any relevant date means (A) if the
      Common Stock is listed for trading on the New York Stock Exchange, the American
      Stock Exchange, the NASDAQ National Market, or the NASDAQ Capital Market, the
      closing sale price (or, if no closing sale price is reported, the last reported
      sale price) of the Common Stock (regular way), or (B) if the Common Stock is
      not
      so listed but quotations for the Common Stock are reported on the OTC Bulletin
      Board, the most recent closing price as reported on the OTC Bulletin
      Board.

    

    
      	 	
              2.

            	
              Transfer;
                Issuance of Stock Certificates; Restrictive
                Legends

            

    

    

    2.1.    Transfer.
      Each
      transfer of this Warrant and all rights hereunder, in whole or in part, shall
      be
      registered on the books of the Company to be maintained for such purpose, upon
      surrender of this Warrant at the Designated Office, together with a written
      assignment of this Warrant in the form of Annex C
      attached
      hereto duly executed by the Holder or its agent or attorney. Upon such surrender
      and delivery, the Company shall execute and deliver a new Warrant or Warrants
      in
      the name of the assignee or assignees and in the denominations specified in
      such
      instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, if any. A Warrant may
      be
      exercised by the new Holder for the purchase of Warrant Shares without having
      a
      new Warrant issued. Prior to due presentment for registration of transfer
      thereof, the Company may deem and treat the registered Holder of this Warrant
      as
      the absolute owner hereof (notwithstanding any notations of ownership or writing
      thereon made by anyone other than a duly authorized officer of the Company)
      for
      all purposes and shall not be affected by any notice to the contrary. All
      Warrants issued upon any assignment of Warrants shall be the valid obligations
      of the Company, evidencing the same rights and entitled to the same benefits
      as
      the Warrants surrendered upon such registration of transfer or
      exchange.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    2.2.    Stock
      Certificates.
      Certificates for the Warrant Shares shall be delivered to the Holder within
      five
      (5) business days after the rights represented by this Warrant shall have been
      exercised pursuant to Section 1, and a new Warrant representing the right to
      purchase the Common Shares, if any, with respect to which this Warrant shall
      not
      then have been exercised shall also be issued to the Holder within such time.
      The issuance of certificates for Warrant Shares upon the exercise of this
      Warrant shall be made without charge to the Holder hereof including, without
      limitation, any documentary, stamp or similar tax that may be payable in respect
      thereof; provided,
      however,
      that
      the Company shall not be required to pay any income tax to which the Holder
      hereof may be subject in connection with the issuance of this Warrant or the
      Warrant Shares.

    

    2.3.    Restrictive
      Legend.
      Except
      as otherwise provided in this Section 2, each certificate for Warrant Shares
      initially issued upon the exercise of this Warrant and each certificate for
      Warrant Shares issued to any subsequent transferee of any such certificate,
      shall be stamped or otherwise imprinted with a legend in substantially the
      following form:

    

    “THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
      UNDER SUCH ACT OR AN OPINION IN FORM AND FROM COUNSEL REASONABLY SATISFACTORY
      TO
      THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

    

    Notwithstanding
      the foregoing, the legend requirements of this Section 2.3 shall terminate
      as to
      any particular Warrant Shares when (i) such Warrant Shares are transferred
      pursuant to an effective resale registration statement, as contemplated in
      the
      Registration Rights Agreement between the Company and the Holder dated as of
      February 21, 2007, or (ii) the Company shall have received from the Holder
      thereof an opinion of counsel in form and substance reasonably acceptable to
      the
      Company that such legend is not required in order to ensure compliance with
      the
      Securities Act. Whenever the restrictions imposed by this Section 2.3 shall
      terminate, the Holder or subsequent transferee, as the case may be, shall be
      entitled to receive from the Company without cost to such Holder or transferee
      a
      certificate for the Warrant Shares without such restrictive legend.

    

    3.    Adjustment
      of Number of Shares; Exercise Price; Nature of Securities Issuable Upon Exercise
      of Warrants. 

    

    3.1.    Exercise
      Price; Adjustment of Number of Shares.
      The
      Exercise Price and the number of shares purchasable hereunder shall be subject
      to adjustment from time to time as hereinafter provided; provided,
      however,
      that,
      notwithstanding the below, in no case shall the Exercise Price be reduced to
      below the par value per share of the class of stock for which this Warrant
      is
      exercisable at such time.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    3.2.    Adjustments
      Upon Distribution, Subdivision or Combination.
      If the
      Company, at any time or from time to time after the issuance of this Warrant,
      shall (a) make a dividend or distribution on its Common Shares payable in
      Common Shares, (b) subdivide or reclassify the outstanding Common Shares
      into a greater number of shares, or (c) combine or reclassify the
      outstanding Common Shares into a smaller number of shares, the Exercise Price
      in
      effect at that time and the number of Warrant Shares into which the Warrant
      is
      exercisable at that time shall be proportionately adjusted effective as of
      the
      record date for the dividend or distribution or the effective date of the
      subdivision, combination or reclassification. 

    

    3.3.    Adjustment
      Upon Other Distributions.
      If the
      Company, at any time or from time to time after the issuance of this Warrant,
      makes a distribution to the holders of Common Shares which is payable in
      securities of the Company other than Common Shares, then, in each such event,
      provision shall be made so that the Holder shall receive upon exercise of this
      Warrant, in addition to the number of Warrant Shares, the amount of such
      securities of the Company which would have been received if the portion of
      the
      Warrant so exercised had been exercised for Warrant Shares on the date of such
      event, subject to adjustments subsequent to the date of such event with respect
      to such distributed securities which shall be on terms as nearly equivalent
      as
      practicable to the adjustments provided in this Section 3 and all other
      adjustments under this Section 3.

    

    3.4.    Adjustment
      Upon Merger, Consolidation or Exchange.
      If at
      any time or from time to time after the issuance of this Warrant there occurs
      any merger, consolidation, arrangement or statutory share exchange of the
      Company with or into any other person or company, then, in each such event,
      provision shall be made so that the Holder shall receive upon exercise of this
      Warrant the kind and amount of shares and other securities and property
      (including cash) which would have been received upon such merger, consolidation,
      arrangement or statutory share exchange by the Holder if the portion of this
      Warrant so exercised had been exercised for Warrant Shares immediately prior
      to
      such merger, consolidation, arrangement or statutory share exchange, subject
      to
      adjustments for events subsequent to the effective date of such merger,
      consolidation, arrangement or statutory share exchange with respect to such
      shares and other securities which shall be on terms as nearly equivalent as
      practicable to the adjustments provided in this Section 3 and all other
      adjustments under this Section 3.

    

    3.5.    Adjustments
      for Recapitalization or Reclassification.
      If, at
      any time or from time to time after the issuance of this Warrant, the Warrant
      Shares issuable upon exercise of this Warrant are changed into the same or
      a
      different number of securities of any class of the Company, whether by
      recapitalization, reclassification or otherwise (other than a merger,
      consolidation, arrangement or statutory share exchange provided for elsewhere
      in
      this Section 3), then, in each such event, provision shall be made so that
      the Holder shall receive upon exercise of this Warrant the kind and amount
      of
      securities or other property which would have been received in connection with
      such recapitalization, reclassification or other change by the Holder if the
      portion of this Warrant so exercised had been exercised immediately prior to
      such recapitalization, reclassification or change, subject to adjustments for
      events subsequent to the effective date of such recapitalization,
      reclassification or other change with respect to such securities which shall
      be
      on terms as nearly equivalent as practicable to the adjustments provided in
      this
      Section 3 and all other adjustments under this
      Section 3.

    
      
        
        

      

      
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    3.6.    Extraordinary
      Dividends or Distributions.
      If, at
      any time or from time to time after the issuance of this Warrant, the Company
      shall declare a dividend or any other distribution upon the Common Shares
      payable otherwise than out of current earnings, retained earnings or earned
      surplus and otherwise than in Common Shares, then the Exercise Price in effect
      immediately prior to such declaration shall be reduced by an amount equal,
      in
      the case of a dividend or distribution in cash, to the amount thereof payable
      per Common Share or, in the case of any other dividend or distribution, to
      the
      value thereof per Common Share at the time such dividend or distribution was
      declared, as determined by the Board of Directors of the Company in good faith.
      Such reductions shall take effect as of the date on which a record is taken
      for
      the purposes of the subject dividend or distribution, or, if a record is not
      taken, the date as of which the holders of record of Common Shares entitled
      to
      such dividend or distribution are to be determined.

    

    
      	 	
              3.7

            	
              Adjustment
                Upon Certain Issuances of Common
                Stock.

            

    

    

    (a)    If
      the
      Company, at any time or from time to time, issues or sells any Additional Shares
      of Common Stock (as defined below), other than as provided in the foregoing
      subsections of this Section 3, for a price per share (which, in the case of
      options, warrants, convertible securities or other rights, includes the amounts
      paid therefor plus the exercise price, conversion price or other such amounts
      payable thereunder) that is less than the
      Exercise Price then in effect, then and in each such case, the then applicable
      Exercise Price shall automatically be reduced as of the opening of business
      on
      the date of such issue or sale, to a price determined by multiplying the
      Exercise Price then in effect by a fraction (i) the numerator of which
      shall be (A) the number of Common Shares deemed outstanding (as determined
      below) immediately prior to such issue or sale, plus (B) the number of
      Common Shares which the aggregate consideration received by the Company for
      the
      total number of Additional Shares of Common Stock so issued would purchase
      at
      such Exercise Price, and (ii) the denominator of which shall be the number
      of Common Shares deemed outstanding (as defined below) immediately prior to
      such
      issue or sale plus the total number of Additional Shares of Common Stock so
      issued; provided,
      however,
      that
      upon the expiration or other termination of options, warrants or other rights
      to
      purchase or acquire Common Shares which triggered any adjustment under this
      Section 3.7, and upon the expiration or termination of the right to convert
      or
      exchange convertible or exchangeable securities (whether by reason of redemption
      or otherwise) which triggered any adjustment under this Section 3.7, if any
      thereof shall not have been exercised, converted or exchanged, as applicable,
      the number of Common Shares deemed to be outstanding pursuant to this
      Section 3.7(a) shall be reduced by the number of shares as to which
      options, warrants, and rights to purchase or acquire Common Shares shall have
      expired or terminated unexercised, and as to which conversion or exchange rights
      shall have expired or terminated unexercised, and such number of shares shall
      no
      longer be deemed to be outstanding; and the Exercise Price then in effect shall
      forthwith be readjusted and thereafter be the price that it would have been
      had
      adjustment been made on the basis of the issuance only of the Common Shares
      actually issued. For purposes of the preceding sentence, the number of Common
      Shares deemed to be outstanding as of a given date shall be the sum of
      (x) the number of Common Shares actually outstanding, (y) the number
      of Common Shares for which this Warrant could be exercised on the day
      immediately preceding the given date, and (z) the number of Common Shares
      which could be obtained through the exercise or conversion of all other rights,
      options and convertible securities outstanding on the day immediately preceding
      the given date. “Additional
      Shares of Common Stock”
shall
      mean all Common Shares, and all options, warrants, convertible securities or
      other rights to purchase or acquire Common Shares, issued by the Company other
      than (i) Common Shares issued pursuant to the exercise of options, warrants
      or convertible securities outstanding on the date hereof (including, without
      limitation, the Term Note and all of the Warrants issued pursuant to the
      Revolving Credit and Term Loan Agreement dated as of February 21, 2007 (as
      amended) by and between ComVest Capital, LLC and the Company), or hereafter
      issued from time to time pursuant to and in accordance with stock purchase
      or
      stock option plans as in effect on the date hereof, and (ii) Common Shares
      and/or options, warrants or other Common Share purchase rights for up to an
      aggregate of 900,000 Common Shares (such number to be subject to adjustment
      in
      accordance with Section 3.2 above), where such options, warrants or other rights
      are issued both (A) with exercise prices per Common Share at the then-current
      fair market value of a Common Share, as determined in good faith by the Board
      of
      Directors of the Company or the Compensation Committee thereof, and (B) to
      employees, officers or directors of, or consultants to, the Company or any
      subsidiary pursuant to stock purchase or stock option plans or other
      arrangements that are approved by the Company’s Board of Directors or the
      Compensation Committee thereof, and by the Company’s
      stockholders.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (b)    In
      the
      event that the exercise price, conversion price, purchase price or other price
      at which Common Shares are purchasable pursuant to any options, warrants,
      convertible securities or other rights to purchase or acquire Common Shares
      is
      reduced at any time or from time to time (other than under or by reason of
      provisions designed to protect against dilution), then, upon such reduction
      becoming effective, the Exercise Price then in effect hereunder shall forthwith
      be decreased to such Exercise Price as would have been obtained had the
      adjustments made and required under this Section 3.7 upon the issuance of such
      options, warrants, convertible securities or other rights been made upon the
      basis of (and the total consideration received therefor) (i) the issuance of
      the
      number of Common Shares theretofore actually delivered upon the exercise,
      conversion or exchange of such options, warrants, convertible securities or
      other rights, (ii) the issuance of all of the Common Shares and all other
      options, warrants, convertible securities and other rights to purchase or
      acquire Common Shares issued after the issuance of the modified options,
      warrants, convertible securities or other rights, and (iii) the original
      issuance at the time of the reduction of any such options, warrants, convertible
      securities or other rights then still outstanding.

    

    (c)    In
      no
      event shall an adjustment under this Section 3.7 be made if it would result
      in an increase in the then applicable Exercise Price.

    

    3.8.   Certificate
      of Adjustment.
      Whenever the Exercise Price and/or the number of Warrant Shares receivable
      upon
      exercise of this Warrant is adjusted, the Company shall promptly deliver to
      the
      Holder a certificate of adjustment, setting forth the Exercise Price and/or
      Warrant Shares issuable after adjustment, a brief statement of the facts
      requiring the adjustment and the computation by which the adjustment was made.
      The certificate of adjustment shall be prima facie evidence of the correctness
      of the adjustment.

    
      
        
        

      

      
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    3.9.    Successive
      Adjustments.
      The
      provisions of this Section 3 shall be applicable successively to each event
      described herein which may occur subsequent to the issuance of this Warrant
      and
      prior to the exercise in full of this Warrant.

    

    4.    Registration;
      Exchange and Replacement of Warrant; Reservation of Shares.
      The
      Company shall keep at the Designated Office a register in which the Company
      shall provide for the registration, transfer and exchange of this Warrant.
      The
      Company shall not at any time, except upon the dissolution, liquidation or
      winding-up of the Company, close such register so as to result in preventing
      or
      delaying the exercise or transfer of this Warrant.

    

    The
      Company may deem and treat the person in whose name this Warrant is registered
      as the Holder and owner hereof for all purposes and shall not be affected by
      any
      notice to the contrary, until presentation of this Warrant for registration
      or
      transfer as provided in this Section 4.

    

    Upon
      receipt by the Company of evidence reasonably satisfactory to it of the loss,
      theft, destruction or mutilation of this Warrant and (in case of loss, theft
      or
      destruction) of the Holder’s indemnity in form satisfactory to the Company, and
      (in the case of mutilation) upon surrender and cancellation of this Warrant,
      the
      Company will (in the absence of notice to the Company that the Warrant has
      been
      acquired by a bona fide purchaser) make and deliver a new Warrant of like tenor
      in lieu of this Warrant, without requiring the posting of any bond or the giving
      of any security.

    

    The
      Company shall at all times reserve and keep available out of its authorized
      shares of capital stock, solely for the purpose of issuance upon the exercise
      of
      this Warrant, such number of Common Shares as shall be issuable upon the
      exercise hereof. The Company covenants and agrees that, upon exercise of this
      Warrant and payment of the Exercise Price therefor, if applicable, all Warrant
      Shares issuable upon such exercise shall be duly and validly authorized and
      issued, fully paid and non-assessable.

    

    5.    Investment
      Representations.
      The
      Holder, by accepting this Warrant, covenants and agrees that, at the time of
      exercise of this Warrant, if the Warrant Shares shall not then be the subject
      of
      an effective registration statement under the Act, the securities acquired
      by
      the Holder upon exercise hereof are for the account of the Holder or are being
      acquired for its own account for investment and are not acquired with a view
      to,
      or for sale in connection with, any distribution thereof (or any portion
      thereof) and with no present intention (at such time) of offering and
      distributing such securities (or any portion thereof), except in compliance
      with
      applicable federal and state securities laws.

    

    6.    Fractional
      Warrants and Fractional Shares.
      If the
      number of Warrant Shares purchasable upon the exercise of this Warrant is
      adjusted pursuant to Section 3 hereof, the Company shall nevertheless not be
      required to issue fractions of shares upon exercise of this Warrant or
      otherwise, or to distribute certificates that evidence fractional shares. With
      respect to any fraction of a share called for upon any exercise hereof, the
      Company shall pay to the Holder an amount in cash equal to such fraction
      multiplied by the current market value of a Common Share (determined in
      accordance with the last sentence of Section 1.3).

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    7.    Warrant
      Holders Not Deemed Stockholders.
      No
      Holder of this Warrant shall, as such, be entitled to vote or to receive
      dividends or be deemed the holder of Warrant Shares that may at any time be
      issuable upon exercise of this Warrant, nor shall anything contained herein
      be
      construed to confer upon the Holder of this Warrant, as such, any of the rights
      of a stockholder of the Company or any right to vote for the election of
      directors or upon any matter submitted to stockholders at any meeting thereof,
      or to give or withhold consent to any corporate action (whether upon any
      recapitalization, issue or reclassification of stock, change of par value or
      change of stock to no par value, consolidation, merger or conveyance or
      otherwise), or to receive notice of meetings, or subscription rights, until
      such
      Holder shall have exercised this Warrant and been issued Warrant Shares or
      deemed to have been issued Warrant Shares in accordance with the provisions
      hereof.

    

    8.    Notices.
      Any
      notice which is required to be given by this Warrant must be in writing, and
      shall be given or served, unless otherwise expressly provided herein, by
      depositing the same in the United States Mail, postpaid and certified and
      addressed to the party to be notified, with return receipt requested, or by
      delivering the same by courier or in person to such party (or, if the party
      or
      parties to be notified be incorporated, to an officer of such party). Notice
      deposited in the mail, postpaid and certified with return receipt requested,
      shall be deemed received and effective upon the deposit in a proper United
      States depository. Notice given in any other manner shall be effective only
      if
      and when received by the party to be notified. For the purposes of notice,
      the
      addresses of the parties for the receipt of notice hereunder are:

    

    If
      to
      the Company:

    LaPolla
      Industries, Inc.

    15402
      Vantage Parkway East, Suite 322

    Houston,
      Texas 77032

    Telephone:
      (281) 219-4700

    Fax:
      (281) 219-4710

    Attention:
      Michael T. Adams, EVP and Secretary

    

    If
      to
      the Holder:

    ComVest
      Capital, LLC

    One
      North
      Clematis, Suite 300

    West
      Palm
      Beach, Florida 33401

    Attention:
      Chief Financial Officer

    Telephone:
      (281) 468-0434

    e-mail:
      larryl@comvest.com

    

    Any
      party
      shall have the right from time to time, and at any time, to change its address
      for the receipt of notice by giving at least five (5) days’ prior written notice
      of the change of its address to the other parties in the manner specified
      herein. 

    

    9.    Successors.
      All the
      covenants, agreements, representations and warranties contained in this Warrant
      shall bind the parties hereto and their respective heirs, executors,
      administrators, distributees, successors, assigns and
      transferees.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    10.   Law
      Governing.
      THIS
      WARRANT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
      STATE
      OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES
      THEREOF.

    

    11.   Entire
      Agreement; Amendments and Waivers.
      This
      Warrant, together with the Registration Rights Agreement of even date herewith
      executed by the Company for the benefit of the Holder, sets forth the entire
      understanding of the parties with respect to the subject matter hereof. The
      failure of any party to seek redress for the violation or to insist upon the
      strict performance of any term of this Warrant shall not constitute a waiver
      of
      such term and such party shall be entitled to enforce such term without regard
      to such forbearance. This Warrant may be amended, and any breach of or
      compliance with any covenant, agreement, warranty or representation may be
      waived, only if the Company has obtained the written consent or written waiver
      of the Holder, and then such consent or waiver shall be effective only in the
      specific instance and for the specific purpose for which given.

    

    12.   Severability;
      Headings.
      If any
      term of this Warrant as applied to any person or to any circumstance is
      prohibited, void, invalid or unenforceable in any jurisdiction, such term shall,
      as to such jurisdiction, be ineffective to the extent of such prohibition or
      invalidity without in any way affecting any other term of this Warrant or
      affecting the validity or enforceability of this Warrant or of such provision
      in
      any other jurisdiction. The Section headings in this Warrant have been inserted
      for purposes of convenience only and shall have no substantive
      effect.

    

    [The
      remainder of this page is intentionally blank]

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as
      of
      the 12th
      day of
      June, 2007.

    

    
      	 	
              LAPOLLA
                INDUSTRIES, INC.

            
	 	 	 
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Michael T. Adams, EVP

            
	 	
              Name:

            	
              Michael
                T. Adams

            
	 	
              Title:

            	
              Executive
                Vice President

            

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    ANNEX A

     

    NOTICE
      OF EXERCISE

    

    (To
      be executed upon partial or full

    exercise
      of the within Warrant)

    

    The
      undersigned hereby irrevocably elects to exercise the right to purchase
      __________ shares of Common Stock of LaPolla Industries, Inc. covered by the
      within Warrant according to the conditions hereof and herewith makes payment
      of
      the Exercise Price of such shares in full in the amount of
      $______________.

     

    
      	 	
              By:

            	
               
                

            
	 	 	
              (Signature
                of Registered Holder)

            

    

     

     

    
      	
              Dated:

            	   
	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      B

    

    CASHLESS
      EXERCISE FORM

    

    (To
      be executed upon partial or full

    exercise
      of Warrants pursuant to Section 1.3 of the Warrant)

    

    The
      undersigned hereby irrevocably elects to surrender ____________ shares of Common
      Stock of LaPolla Industries, Inc. purchasable under the Warrants for such shares
      of Common Stock issuable in exchange therefor pursuant to the Cashless Exercise
      provisions of the within Warrants, as provided for in Section 1.3 of such
      Warrant.

    

    Please
      issue a certificate or certificates for such Common Stock in the name of, and
      pay cash for fractional shares in the name of:

    

    (Please
      print name, address, and social security number/tax identification
      number:)

    

    

    

    and,
      if
      said number of shares of Common Stock shall not be all the shares of Common
      Stock purchasable thereunder, that a new Warrant for the balance remaining
      of
      the shares of Common Stock purchasable under the within Warrants be registered
      in the name of the undersigned Holder or its transferee as below indicated
      and
      delivered to the address stated below.

    

    
      	
              Dated:

            	   
	 

    

    

    
      	Name
              of Warrant Holder	 
	
              or
                transferee:

            	    

	
               

            	
               (Please
                Print)

            	 

    

     

    
      	
              Address:

            	  

	 	 
	
              Signature:

            	  

    

    

    
      	
              NOTICE:

            	
              The
                signature on this form must correspond with the name as written upon
                the
                face of this Warrant in every particular, without alteration or
                enlargement or any change
                whatsoever.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX C

    

    ASSIGNMENT
      FORM

    

    FOR
      VALUE
      RECEIVED the undersigned registered owner of this Warrant hereby sells, assigns
      and transfers unto the Assignee named below all of the rights of the undersigned
      under this Warrant, with respect to the number of shares of Common Stock set
      forth below:

    

    

    
      	
              Name
                and Address of Assignee

            	
              No.
                of Shares of 

            
	 	
              Common
                Stock

            
	 	 

    

    

     

    and
      does
      hereby irrevocably constitute and appoint _______________________
      attorney-in-fact to register such transfer onto the books of LaPolla Industries,
      Inc. maintained for the purpose, with full power of substitution in the
      premises.

    

    
      	
              Dated:
                

            	   
	 	
              Print
                Name:

            	  

	 	 	 	
               

            	 
	 	 	 	
              Signature:

            	  

	 	 	 	 	 
	 	 	 	
              Witness:

            	  

    

    

    

    
      	
              NOTICE:

            	
              The
                signature on this assignment must correspond with the name as written
                upon
                the face of this Warrant in every particular, without alteration
                or
                enlargement or any change
                whatsoever.formofwarrant.htm

    
      

        NEITHER
          THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
          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 (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 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.  THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE
          OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
          ACCOUNT
          SECURED BY SUCH SECURITIES.

         

        BIOSANTE
          PHARMACEUTICALS, INC.

         

        WARRANT

         

         Date
          of Original Issuance:  June 13, 2007

         

        BioSante
          Pharmaceuticals, Inc., a Delaware corporation (the
“Company”), hereby certifies that, for value received,
          «Name» or its registered assigns (the
“Holder”), is entitled to purchase from the
          Company up to a
          total of «Shares» shares of common stock, par value $0.0001 per share (the
“Common Stock”), of the Company (each such share, a
“Warrant Share” and all such shares, the “Warrant
          Shares”) at an exercise price equal to $8.00 per share (as adjusted
          from time to time as provided in Section 9, the “Exercise
          Price”), at any time and from time to time from and after
          December 14, 2007 (the “Initial Exercise Date”) and through and
          including December 13, 2010 (the “Expiration
          Date”), and subject to the following terms and conditions:

         

        1.  Definitions.  In
          addition to the terms defined elsewhere in this Warrant, capitalized terms
          that
          are not otherwise defined herein shall have the meanings given to such
          terms in
          the Subscription Agreement of even date herewith to which the Company and
          the
          original Holder are parties (the “Purchase
          Agreement”).

         

        2.  Registration
          of Warrant.  The Company shall register this Warrant, upon records
          to be maintained by the Company for that purpose (the “Warrant
          Register”), in the name of the record Holder hereof from time to
          time.  The Company may deem and treat the registered Holder of this
          Warrant as the absolute owner hereof for the purpose of any exercise hereof
          or
          any distribution to the Holder, and for all other purposes, absent actual
          notice
          to the contrary.

         

        3.  Registration
          of Transfers.  Except as otherwise provided below, the Company
          shall register the transfer of any portion of this Warrant in the Warrant
          Register, upon surrender of this Warrant, with the Form of Assignment attached
          hereto duly completed and signed, to the Company at its address specified
          herein.  Upon any such registration or transfer, a new Warrant to
          purchase Common Stock, in substantially the form of this Warrant (any such
          new
          Warrant, a “New Warrant”), evidencing the portion of this
          Warrant so transferred shall be issued to the transferee and a New Warrant
          evidencing the remaining portion of this Warrant not so transferred, if
          any,
          shall be issued to the transferring Holder. The acceptance of the New Warrant
          by
          the transferee thereof shall be deemed the acceptance by such transferee
          of all
          of the rights and obligations of a holder of a Warrant.

         

        4.  Exercise
          of Warrants.

         

        (a)  This
          Warrant shall be exercisable by the registered Holder at any time and from
          time
          to time on or after the Initial Exercise Date to and including the Expiration
          Date.  At 6:30 p.m., New York City time on the Expiration Date, the
          portion of this Warrant not exercised prior thereto shall be and become
          void and
          of no value. The Company may not call or redeem all or any portion of this
          Warrant without the prior written consent of the Holder.

         

        (b)  The
          Company shall not effect any exercise of this Warrant, and a  Holder
          shall not have the right to exercise any portion of this Warrant, pursuant
          to
          Section 4 or otherwise, to the extent that after giving effect to such
          issuance
          after exercise as set forth on the applicable Notice of Exercise, such
          Holder
          (together with such Holder’s Affiliates (as defined in the Purchase Agreement),
          and any other person or entity acting as a group together with such Holder
          or
          any of such Holder’s Affiliates), as set forth on the applicable Notice of
          Exercise, would beneficially own in excess of the Beneficial Ownership
          Limitation (as hereinafter defined).  For purposes of the foregoing
          sentence, the number of shares of Common Stock beneficially owned by such
          Holder
          and its Affiliates shall include the number of shares of Common Stock issuable
          upon exercise of this Warrant with respect to which such determination
          is being
          made, but shall exclude the number of shares of Common Stock which would
          be
          issuable upon (A) exercise of the remaining, nonexercised portion of this
          Warrant beneficially owned by such Holder or any of its Affiliates and
          (B)
          exercise or conversion of the unexercised or nonconverted portion of any
          other
          securities of the Company (including, without limitation, any other Warrants)
          subject to a limitation on conversion or exercise analogous to the limitation
          contained herein beneficially owned by such Holder or any of its
          affiliates.  Except as set forth in the preceding sentence, for purposes of
          this Section 4(b), beneficial ownership shall be calculated in accordance
          with
          Section 13(d) of the Exchange Act and the rules and regulations promulgated
          thereunder, it being acknowledged by a Holder that the Company is not
          representing to such Holder that such calculation is in compliance with
          Section
          13(d) of the Exchange Act and such Holder is solely responsible for any
          schedules required to be filed in accordance therewith.  To the extent
          that the limitation contained in this Section 4(b) applies, the determination
          of
          whether this Warrant is exercisable (in relation to other securities owned
          by
          such Holder together with any Affiliates) and of which a portion of this
          Warrant
          is exercisable shall be in the sole discretion of a Holder, and the submission
          of an Exercise shall be deemed to be each Holder’s determination of whether this
          Warrant is exercisable (in relation to other securities owned by such Holder
          together with any Affiliates) and of which portion of this Warrant is
          exercisable, in each case subject to such aggregate percentage limitation,
          and
          the Company shall have no obligation to verify or confirm the accuracy
          of such
          determination.   In addition, a determination as to any group
          status as contemplated above shall be determined in accordance with Section
          13(d) of the Exchange Act and the rules and regulations promulgated
          thereunder.  For purposes of this Section 2(d), in determining the
          number of outstanding shares of Common Stock, a Holder may rely on the
          number of
          outstanding shares of Common Stock as reflected in (x) the Company’s most recent
          Form 10-Q or Form 10-K, as the case may be, (y) a more recent public
          announcement by the Company or (z) any other notice by the Company or the
          Company’s transfer agent setting forth the number of shares of Common Stock
          outstanding.  Upon the written or oral request of a Holder, the Company
          shall within two trading days confirm orally and in writing to such Holder
          the
          number of shares of Common Stock then outstanding.  In any case, the number
          of outstanding shares of Common Stock shall be determined after giving
          effect to
          the conversion or exercise of securities of the Company, including this
          Warrant,
          by such Holder or its Affiliates since the date as of which such number
          of
          outstanding shares of Common Stock was reported.  The
“Beneficial Ownership Limitation” shall be 4.99% of the number
          of shares of the Common Stock outstanding immediately after giving effect
          to the
          issuance of shares of Common Stock issuable upon exercise of this
          Warrant.  The Beneficial Ownership Limitation provisions of this
          Section 4(b) may be waived by such Holder, at the election of such Holder,
          upon
          not less than 61 days’ prior notice to the Company to change the Beneficial
          Ownership Limitation to 9.99% of the number of shares of the Common Stock
          outstanding immediately after giving effect to the issuance of shares of
          Common
          Stock upon exercise of this Warrant, and the provisions of this Section
          4(b)
          shall continue to apply.  Upon such a change by a Holder of the
          Beneficial Ownership Limitation from such 4.99% limitation to such 9.99%
          limitation, the Beneficial Ownership Limitation may not be further waived
          by
          such Holder.  The provisions of this paragraph shall be construed and
          implemented in a manner otherwise than in strict conformity with the terms
          of
          this Section 4(b) to correct this paragraph (or any portion hereof) which
          may be
          defective or inconsistent with the intended Beneficial Ownership Limitation
          herein contained or to make changes or supplements necessary or desirable
          to
          properly give effect to such limitation. The limitations contained in this
          paragraph shall apply to a successor holder of this Warrant.

         

        5.  Delivery
          of Warrant Shares.

         

        (a)  To
          effect
          exercises hereunder, the Holder shall not be required to physically surrender
          this Warrant unless the aggregate Warrant Shares represented by this Warrant
          is
          being exercised.  Upon delivery of the Exercise Notice to the Company
          (with the attached Warrant Shares Exercise Log) at its address for notice
          set
          forth herein and upon payment of the Exercise Price multiplied by the number
          of
          Warrant Shares that the Holder intends to purchase hereunder, the Company
          shall
          promptly (but in no event later than five business days after the Date
          of
          Exercise (as defined herein)) issue and deliver to the Holder, a certificate
          for
          the Warrant Shares issuable upon such exercise, which, unless otherwise
          required
          by the Purchase Agreement, shall be free of restrictive
          legends.  Certificates for Warrant Shares purchased hereunder shall be
          transmitted by the transfer agent of the Company to the Holder by crediting
          the
          account of the Holder’s prime broker with the Depository Trust Company through
          its Deposit Withdrawal Agent Commission (“DWAC”) system
          if the Company or its transfer agent is a participant in such system and
          if the
          Holder makes certain representations as set forth in the Exercise Notice
          and
          otherwise by physical delivery to the address specified by the Holder in
          the
          Exercise Notice within 3 trading days from the delivery to the Company
          of the
          Exercise Date (as hereinafter defined) and surrender of this Warrant (if
          required) (“Warrant Share Delivery
          Date”).  This Warrant shall be deemed to have been
          exercised on the date the Exercise Price is received by the
          Company.  The Warrant Shares shall be deemed to have been issued, and
          Holder or any other person so designated to be named therein shall be deemed
          to
          have become a holder of record of such shares for all purposes, as of the
          date
          the Warrant has been exercised by payment to the Company of the Exercise
          Price
          (or by cashless exercise).  A “Date of Exercise”
means the date on which the Holder shall have delivered
          to Company: (i) the
          Exercise Notice (with the Warrant Exercise Log attached to it), appropriately
          completed and duly signed and (ii) if such Holder is not utilizing the
          cashless
          exercise provisions set forth in this Warrant, payment of the Exercise
          Price for
          the number of Warrant Shares so indicated by the Holder to be
          purchased.

         

        (b)  If
          by the
          fifth business day after a Date of Exercise the Company fails to deliver
          the
          required number of Warrant Shares in the manner required pursuant to Section
          5(a), then the Holder will have the right to rescind such exercise.

         

        (c)  In
          addition to any other rights available to the Holder, if the Company fails
          to
          cause its transfer agent to transmit to the Holder a certificate or certificates
          representing the Warrant Shares pursuant to an exercise on or before the
          second
          business day following the Warrant Share Delivery Date, and if after such
          date
          the Holder is required by its broker to purchase (in an open market transaction
          or otherwise) shares of Common Stock to deliver in satisfaction of a sale
          by the
          Holder of the Warrant Shares which the Holder anticipated receiving upon
          such
          exercise (a “Buy-In”), then the Company shall (1) pay in
          cash to the Holder the amount by which (x) the Holder’s total purchase price
          (including brokerage commissions, if any) for the shares of Common Stock
          so
          purchased exceeds (y) the amount obtained by multiplying (A) the number
          of
          Warrant Shares that the Company was required to deliver to the Holder in
          connection with the exercise at issue times (B) the price at which the
          sell
          order giving rise to such purchase obligation was executed, and (2) at
          the
          option of the Holder, either reinstate the portion of the Warrant and equivalent
          number of Warrant Shares for which such exercise was not honored or deliver
          to
          the Holder the number of shares of Common Stock that would have been issued
          had
          the Company timely complied with its exercise and delivery obligations
          hereunder.  For example, if the Holder purchases Common Stock having a
          total purchase price of $11,000 to cover a Buy-In with respect to an attempted
          exercise of shares of Common Stock with an aggregate sale price giving
          rise to
          such purchase obligation of $10,000, under clause (1) of the immediately
          preceding sentence the Company shall be required to pay the Holder $1,000.
          The
          Holder shall provide the Company written notice indicating the amounts
          payable
          to the Holder in respect of the Buy-In and, upon request of the Company,
          evidence of the amount of such loss.  Nothing herein shall limit a
          Holder’s right to pursue any other remedies available to it hereunder, at law
          or
          in equity including, without limitation, a decree of specific performance
          and/or
          injunctive relief with respect to the Company’s failure to timely deliver
          certificates representing shares of Common Stock upon exercise of the Warrant
          as
          required pursuant to the terms hereof.

         

        (d)  The
          Company’s obligations to issue and deliver Warrant Shares in accordance with the
          terms hereof are absolute and unconditional, irrespective of any action
          or
          inaction by the Holder to enforce the same, any waiver or consent with
          respect
          to any provision hereof, the recovery of any judgment against any Person
          or any
          action to enforce the same, or any setoff, counterclaim, recoupment, limitation
          or termination, or any breach or alleged breach by the Holder or any other
          Person of any obligation to the Company or any violation or alleged violation
          of
          law by the Holder or any other Person, and irrespective of any other
          circumstance which might otherwise limit such obligation of the Company
          to the
          Holder in connection with the issuance of Warrant Shares.  Nothing
          herein shall limit a Holder’s right to pursue any other remedies available to it
          hereunder, at law or in equity including, without limitation, a decree
          of
          specific performance and/or injunctive relief with respect to the Company’s
          failure to timely deliver certificates representing shares of Common Stock
          upon
          exercise of the Warrant as required pursuant to the terms hereof.

         

        6.  Charges,
          Taxes and Expenses.  Issuance and delivery of certificates for
          shares of Common Stock upon exercise of this Warrant shall be made without
          charge to the Holder for any issue or transfer tax, withholding tax, transfer
          agent fee or other incidental tax or expense in respect of the issuance
          of such
          certificates, all of which taxes and expenses shall be paid by the Company;
          provided, however, that the Company shall not be required to pay any tax
          which
          may be payable in respect of any transfer involved in the registration
          of any
          certificates for Warrant Shares or Warrants in a name other than that of
          the
          Holder.  The Holder shall be responsible for all other tax liability
          that may arise as a result of holding or transferring this Warrant or receiving
          Warrant Shares upon exercise hereof.

         

        7.  Replacement
          of Warrant.  If this Warrant is mutilated, lost, stolen or
          destroyed, the Company shall issue or cause to be issued in exchange and
          substitution for and upon cancellation hereof, or in lieu of and substitution
          for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
          satisfactory to the Company of such loss, theft or destruction and customary
          and
          reasonable indemnity (which shall not include a surety bond), if
          requested.  Applicants for a New Warrant under such circumstances
          shall also comply with such other reasonable regulations and procedures
          and pay
          such other reasonable third-party costs as the Company may
          prescribe.  If a New Warrant is requested as a result of a mutilation
          of this Warrant, then the Holder shall deliver such mutilated Warrant to
          the
          Company as a condition precedent to the Company’s obligation to issue the New
          Warrant.

         

        8.  Reservation
          of Warrant Shares.  The Company covenants that it will at all
          times reserve and keep available out of the aggregate of its authorized
          but
          unissued and otherwise unreserved Common Stock, solely for the purpose
          of
          enabling it to issue Warrant Shares upon exercise of this Warrant as herein
          provided, the number of Warrant Shares which are then issuable and deliverable
          upon the exercise of this entire Warrant, free from preemptive rights or
          any
          other contingent purchase rights of persons other than the Holder (taking
          into
          account the adjustments and restrictions of Section 9). The Company
          covenants that all Warrant Shares so issuable and deliverable shall, upon
          issuance and the payment of the applicable Exercise Price in accordance
          with the
          terms hereof, be duly and validly authorized, issued and fully paid and
          nonassessable.

         

        9.  Certain
          Adjustments.  The Exercise Price and number of Warrant Shares
          issuable upon exercise of this Warrant are subject to adjustment from time
          to
          time as set forth in this Section 9.

         

        (a)  Stock
          Dividends and Splits.  If the Company, at any time while this
          Warrant is outstanding, (i) pays a stock dividend on its Common Stock or
          otherwise makes a distribution on any class of capital stock that is payable
          in
          shares of Common Stock, (ii) subdivides outstanding shares of Common Stock
          into
          a larger number of shares, or (iii) combines outstanding shares of Common
          Stock
          into a smaller number of shares, then in each such case the Exercise Price
          shall
          be multiplied by a fraction of which the numerator shall be the number
          of shares
          of Common Stock outstanding immediately before such event and of which
          the
          denominator shall be the number of shares of Common Stock outstanding
          immediately after such event.  Any adjustment made pursuant to clause
          (i) of this paragraph shall become effective immediately after the record
          date
          for the determination of stockholders entitled to receive such dividend
          or
          distribution, and any adjustment pursuant to clause (ii) or (iii) of this
          paragraph shall become effective immediately after the effective date of
          such
          subdivision or combination. If any event requiring an adjustment under
          this
          paragraph occurs during the period that an Exercise Price is calculated
          hereunder, then the calculation of such Exercise Price shall be adjusted
          appropriately to reflect such event.

         

        (b)  Fundamental
          Transactions.  If, at any time while this Warrant is outstanding,
          (1) the Company effects any merger or consolidation of the Company with
          or into
          another Person, (2) the Company effects any sale of all or substantially
          all of
          its assets in one or a series of related transactions, (3) any tender offer
          or
          exchange offer (whether by the Company or another Person) is completed
          pursuant
          to which holders of Common Stock are permitted to tender or exchange their
          shares for other securities, cash or property, or (4) the Company effects
          any
          reclassification of the Common Stock or any compulsory share exchange pursuant
          to which the Common Stock is effectively converted into or exchanged for
          other
          securities, cash or property (in any such case, a “Fundamental
          Transaction”), then the Holder shall have the right thereafter to
          receive, upon exercise of this Warrant, the same amount and kind of securities,
          cash or property as it would have been entitled to receive upon the occurrence
          of such Fundamental Transaction if it had been, immediately prior to such
          Fundamental Transaction, the holder of the number of Warrant Shares then
          issuable upon exercise in full of this Warrant (the “Alternate
          Consideration”).  For purposes of any such exercise, the
          determination of the Exercise Price shall be appropriately adjusted to
          apply to
          such Alternate Consideration based on the amount of Alternate Consideration
          issuable in respect of one share of Common Stock in such Fundamental
          Transaction, and the Company shall apportion the Exercise Price among the
          Alternate Consideration in a reasonable manner reflecting the relative
          value of
          any different components of the Alternate Consideration.  If holders
          of Common Stock are given any choice as to the securities, cash or property
          to
          be received in a Fundamental Transaction, then the Holder shall be given
          the
          same choice as to the Alternate Consideration it receives upon any exercise
          of
          this Warrant following such Fundamental Transaction.  Any successor to
          the Company or surviving entity in such Fundamental Transaction shall issue
          to
          the Holder a new warrant substantially in the form of this Warrant and
          consistent with the foregoing provisions and evidencing the Holder’s right to
          purchase the Alternate Consideration for the aggregate Exercise Price upon
          exercise thereof. The terms of any agreement pursuant to which a Fundamental
          Transaction is effected shall include terms requiring any such successor
          or
          surviving entity to comply with the provisions of this paragraph (b) and
          insuring that the Warrant (or any such replacement security) will be similarly
          adjusted upon any subsequent transaction analogous to a Fundamental
          Transaction.

         

        (c)  Number
          of Warrant Shares.  Simultaneously with any adjustment to the
          Exercise Price pursuant to paragraph (a) of this Section, the number of
          Warrant
          Shares that may be purchased upon exercise of this Warrant shall be increased
          or
          decreased proportionately, so that after such adjustment the aggregate
          Exercise
          Price payable hereunder for the adjusted number of Warrant Shares shall
          be the
          same as the aggregate Exercise Price in effect immediately prior to such
          adjustment.

         

        (d)  Calculations.  All
          calculations under this Section 9 shall be made to the nearest cent or
          the nearest 1/100th of
          a share, as
          applicable.  The number of shares of Common Stock outstanding at any
          given time shall not include shares owned or held by or for the account
          of the
          Company, and the disposition of any such shares shall be considered an
          issue or
          sale of Common Stock.

         

        (e)  Notice
          of Adjustments.  Upon the occurrence of each adjustment pursuant
          to this Section 9, the Company at its expense will promptly compute such
          adjustment in accordance with the terms of this Warrant and prepare a
          certificate setting forth such adjustment, including a statement of the adjusted
          Exercise Price and adjusted number or type of Warrant Shares or other securities
          issuable upon exercise of this Warrant (as applicable), describing the
          transactions giving rise to such adjustments and showing in detail the
          facts
          upon which such adjustment is based.  Upon written request, the
          Company will promptly deliver a copy of each such certificate to the Holder
          and
          to the Company’s transfer agent.

         

        (f)  Notice
          to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or
          any other distribution in whatever form) on the Common Stock; (B) the Company
          shall declare a special nonrecurring cash dividend on or a redemption of
          the
          Common Stock; (C) the Company shall authorize the granting to all holders
          of the
          Common Stock rights or warrants to subscribe for or purchase any shares
          of
          capital stock of any class or of any rights; (D) the approval of any
          stockholders of the Company shall be required in connection with any
          reclassification of the Common Stock, any consolidation or merger to which
          the
          Company is a party, any sale or transfer of all or substantially all of
          the
          assets of the Company, of any compulsory share exchange whereby the Common
          Stock
          is converted into other securities, cash or property; (E) the Company shall
          authorize the voluntary or involuntary dissolution, liquidation or winding
          up of
          the affairs of the Company; then, in each case, the Company shall cause
          to be
          mailed to the Holder at its last address as it shall appear upon the warrant
          register of the Company, at least 10 calendar days prior to the applicable
          record or effective date hereinafter specified, a notice stating (x) the
          date on
          which a record is to be taken for the purpose of such dividend, distribution,
          redemption, rights or warrants, or if a record is not to be taken, the
          date as
          of which the holders of the Common Stock of record to be entitled to such
          dividend, distributions, redemption, rights or warrants are to be determined
          or
          (y) the date on which such reclassification, consolidation, merger, sale,
          transfer or share exchange is expected to become effective or close, and
          the
          date as of which it is expected that holders of the Common Stock of record
          shall
          be entitled to exchange their shares of the Common Stock for securities,
          cash or
          other property deliverable upon such reclassification, consolidation, merger,
          sale, transfer or share exchange; provided that the failure to mail such
          notice
          or any defect therein or in the mailing thereof shall not affect the validity
          of
          the corporate action required to be specified in such notice.

         

        10.  Payment
          of
          Exercise Price.
The
          Holder
          may pay the Exercise Price in one of the following manners:

         

        (a)  Cash
          Exercise.  The Holder may deliver immediately available funds;
          or

         

        (b)  Cashless
          Exercise.  If at any time after one year from the date of the
          Purchase Agreement there is no effective registration statement registering,
          or
          no current prospectus available for, the resale of the Warrant Shares by
          the
          Holder, the Holder may notify the Company, during any such periods, in
          an
          Exercise Notice of its election to utilize cashless exercise, in which
          event the
          Company shall issue to the Holder the number of Warrant Shares determined
          as
          follows:

         

        X
          = Y
          [(A-B)/A]

         

        where:

         

        X
          = the
          number of Warrant Shares to be issued to the Holder.

         

        Y
          = the
          number of Warrant Shares with respect to which this Warrant is being
          exercised.

         

        A
          = the
          VWAP on the trading day immediately prior to the Exercise Date.

         

        B
          = the
          Exercise Price.

         

        For
          purposes of Rule 144 promulgated under the Securities Act, it is intended,
          understood and acknowledged that the Warrant Shares issued in a cashless
          exercise transaction shall be deemed to have been acquired by the Holder,
          and
          the holding period for the Warrant Shares shall be deemed to have commenced,
          on
          the date this Warrant was originally issued.

         

        “VWAP”
          means, for any date, the price determined by the first of the following
          clauses
          that applies: (a) if the Common Stock is then listed or quoted on the American
          Stock Exchange (“AMEX”), Nasdaq or another national securities exchange, the
          daily volume weighted average price of the Common Stock for such date (or
          the
          nearest preceding date) on AMEX, Nasdaq or another national securities
          exchange
          on which the Common Stock is then listed or quoted for trading as reported
          by
          Bloomberg Financial L.P. (based on a trading day from 9:30 a.m. (New York
          City
          time) to 4:02 p.m. (New York City time); (b)  if the Common Stock is not so
          listed or quoted for trading, the volume weighted average price of the
          Common
          Stock for such date (or the nearest preceding date) on the OTC Bulletin
          Board;
          (c) if the Common Stock is not then quoted for trading on the OTC Bulletin
          Board
          and if prices for the Common Stock are then reported in the “Pink Sheets”
published by Pink Sheets, LLC (or a similar organization or agency succeeding
          to
          its functions of reporting prices), the most recent bid price per share
          of the
          Common Stock so reported; or (d) in all other cases, the fair market value
          of a share of Common Stock as determined by an independent appraiser selected
          in
          good faith by the Holder and reasonably acceptable to the Company.

         

        11.  No
          Fractional Shares.  No fractional shares of Warrant Shares will be
          issued in connection with any exercise of this Warrant.  In lieu of
          any fractional shares which would, otherwise be issuable, the Company shall
          pay
          cash equal to the product of such fraction multiplied by the closing price
          of
          one Warrant Share as reported by the American Stock Exchange or such other
          national exchange on which the Common Stock is then traded on the date
          of
          exercise.

         

        12.  Notices.  Any
          and all notices or other communications or deliveries hereunder (including,
          without limitation, any Exercise Notice) shall be in writing and shall
          be deemed
          given and effective on the earliest of (i) the date of transmission, if
          such
          notice or communication is delivered via facsimile at the facsimile number
          specified in this Section prior to 6:30 p.m. (New York City time) on a
          business
          day, (ii) the next business day after the date of transmission, if such
          notice
          or communication is delivered via facsimile at the facsimile number specified
          in
          this Section on a day that is not a business day or later than 6:30 p.m.
          (New
          York City time) on any business day, (iii) the business day following the
          date
          of mailing, if sent by nationally recognized overnight courier service,
          or (iv)
          upon actual receipt by the party to whom such notice is required to be
          given.  The addresses for such communications shall be:  (i)
          if to the Company, to BioSante Pharmaceuticals, Inc., Attn: Chief Financial
          Officer, Facsimile No.: (847) 478-9263, or (ii) if to the Holder, to the
          address
          or facsimile number appearing on the Warrant Register or such other address
          or
          facsimile number as the Holder may provide to the Company in accordance
          with
          this Section.

         

        13.  Warrant
          Agent.  The Company shall serve as warrant agent under this
          Warrant.  Upon 30 days’ notice to the Holder, the Company may appoint
          a new warrant agent.  Any corporation into which the Company or any
          new warrant agent may be merged or any corporation resulting from any
          consolidation to which the Company or any new warrant agent shall be a
          party or
          any corporation to which the Company or any new warrant agent transfers
          substantially all of its corporate trust or shareholders services business
          shall
          be a successor warrant agent under this Warrant without any further
          act.  Any such successor warrant agent shall promptly cause notice of
          its succession as warrant agent to be mailed (by first class mail, postage
          prepaid) to the Holder at the Holder’s last address as shown on the Warrant
          Register.

         

        14.  Miscellaneous.

         

        (a)  This
          Warrant does not entitle the Holder to any voting or other rights as a
          stockholder of the Company prior to exercise and payment for the Warrant
          Price
          in accordance with the terms hereof.

         

        (b)  Any
          notice, request or other document required or permitted to be given or
          delivered
          to the Holder by the Company shall be delivered in accordance with the
          notice
          provisions of the Purchase Agreement.

         

        (c)  No
          provision hereof, in the absence of any affirmative action by Holder to
          exercise
          this Warrant to purchase Warrant Shares, and no enumeration herein of the
          rights
          or privileges of Holder, shall give rise to any liability of Holder for
          the
          purchase price of any Common Stock or as a stockholder of the Company,
          whether
          such liability is asserted by the Company or by creditors of the
          Company.

         

        (d)  The
          Holder, in addition to being entitled to exercise all rights granted by
          law,
          including recovery of damages, will be entitled to specific performance
          of its
          rights under this Warrant.  The Company agrees that monetary damages
          would not be adequate compensation for any loss incurred by reason of a
          breach
          by it of the provisions of this Warrant and hereby agrees to waive and
          not to
          assert the defense in any action for specific performance that a remedy
          at law
          would be adequate.

         

        (e)  This
          Warrant shall be binding on and inure to the benefit of the parties hereto
          and
          their respective successors and assigns.  Subject to the preceding
          sentence, nothing in this Warrant shall be construed to give to any Person
          other
          than the Company and the Holder any legal or equitable right, remedy or
          cause of
          action under this Warrant.  This Warrant may be amended only in
          writing signed by the Company and the Holder and their successors and
          assigns.

         

        (f)  All
          questions concerning the construction, validity, enforcement and interpretation
          of this Warrant shall be governed by and construed and enforced in accordance
          with the internal laws of the State of New York, without regard to the
          principles of conflicts of law thereof.  Each party hereto hereby
          irrevocably waives, to the fullest extent permitted by applicable law,
          any and
          all right to trial by jury in any legal proceeding arising out of or relating
          to
          this Warrant or the transactions contemplated hereby.  If either party
          shall commence a proceeding to enforce any provisions of this Warrant,
          then the
          prevailing party in such proceeding shall be reimbursed by the other party
          for
          its attorney’s fees and other costs and expenses incurred with the
          investigation, preparation and prosecution of such Proceeding.

         

        (g)  The
          headings herein are for convenience only, do not constitute a part of this
          Warrant and shall not be deemed to limit or affect any of the provisions
          hereof.

         

        (h)  In
          case
          any one or more of the provisions of this Warrant shall be invalid or
          unenforceable in any respect, the validity and enforceability of the remaining
          terms and provisions of this Warrant shall not in any way be affected or
          impaired thereby and the parties will attempt in good faith to agree upon
          a
          valid and enforceable provision which shall be a commercially reasonable
          substitute therefor, and upon so agreeing, shall incorporate such substitute
          provision in this Warrant.

         

        [REMAINDER
          OF PAGE INTENTIONALLY LEFT BLANK,

         

        SIGNATURE
          PAGE FOLLOWS]

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        IN
          WITNESS WHEREOF, the Company has caused this Warrant to be duly executed
          by its
          authorized officer as of the date first indicated above.

         

         

        
          	
                   

                	
                  BIOSANTE
                    PHARMACEUTICALS, INC.

                

        

         

        By:                                                      

        

        Name:                      Phillip
          B. Donenberg

        Title:                      Chief
          Financial Officer

        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        BIOSANTE
          PHARMACEUTICALS, INC.

         

        WARRANT
          ORIGINALLY ISSUED [      ],
          2007

         

        WARRANT
          NO. [ ]

         

        EXERCISE
          NOTICE

         

        To           BIOSANTE
          PHARMACEUTICALS, INC.:

         

        (1)  The
          undersigned hereby elects to purchase ________ Warrant Shares of the Company
          pursuant to the terms of the attached Warrant (only if exercised in full),
          and
          tenders herewith payment of the exercise price in full, together with all
          applicable transfer taxes, if any.

         

        (2)  Payment
          shall take the form of (check applicable box):

         

        [  ]
          in lawful money of the United States; or

         

        [
          ] [if
          permitted] the cancellation of such number of Warrant Shares as is necessary,
          in
          accordance with the formula set forth in subsection 10(b), to exercise
          this
          Warrant with respect to the maximum number of Warrant Shares purchasable
          pursuant to the cashless exercise procedure set forth in subsection
          10(b).

         

        (3)  Please
          issue a certificate or certificates representing said Warrant Shares in
          the name
          of the undersigned or in such other name as is specified below:

         

        _______________________________

         

        The
          Warrant Shares shall be delivered to the following DWAC Account Number
          or by
          physical delivery of a certificate to:

         

        _______________________________

         

        _______________________________

         

        _______________________________

         

        (4)  Accredited
          Investor.  The undersigned is an “accredited investor” as defined
          in Regulation D promulgated under the Securities Act of 1933, as
          amended.

         

        (5)  The
          undersigned hereby agrees that it will sell the Warrant Shares issuable
          in
          connection with this Notice of Exercise pursuant to either the registration
          requirements of the Securities Act of 1933, as amended, including any applicable
          prospectus delivery requirements, or an exemption therefrom, and that if
          Warrant
          Shares are sold pursuant to a Registration Statement, they will be sold
          in
          compliance with the plan of distribution set forth therein, and the undersigned
          hereby acknowledges that the removal of the restrictive legend from certificates
          representing the Warrant Shares is predicated upon the Company's reliance
          upon
          this understanding and representation.

         

        [SIGNATURE
          OF HOLDER]

        

        Name
          of
          Investing Entity:

        Signature
          of Authorized Signatory of Investing Entity:

        Name
          of
          Authorized Signatory:

        Title
          of
          Authorized Signatory:

        Date:

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        Warrant
          Shares Exercise Log

         

        
          	
                  Date

                	
                  Number
                    of Warrant Shares Available to be Exercised

                	
                  Number
                    of Warrant Shares Exercised

                	
                  Number
                    of Warrant Shares Remaining to be Exercised

                
	 	 	 	 

        

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        BIOSANTE
          PHARMACEUTICALS, INC.

         

        WARRANT
          ORIGINALLY ISSUED [        ],
          2007

         

        WARRANT
          NO. [ ]

         

        FORM
          OF ASSIGNMENT

         

        [To
          be
          completed and signed only upon transfer of Warrant]

         

        FOR
          VALUE
          RECEIVED, the undersigned hereby sells, assigns and transfers unto
          ________________________________ the right represented by the above-captioned
          Warrant to purchase  ____________ shares of Common Stock to which such
          Warrant relates and appoints ________________ attorney to transfer said
          right on
          the books of the Company with full power of substitution in the
          premises.

         

        Dated:                      _______________,
          ____

         

         

        _______________________________________

         

         

        (Signature
          must conform in all respects to name of holder as specified on the face
          of the
          Warrant)

         

         

        _______________________________________

         

         

        Address
          of Transferee

         

         

        _______________________________________

         

         

        

         

         

        _______________________________________

         

        In
          the
          presence of:

         

         

        __________________________

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