Document:

Exhibit
        4.3

    

     

    

      

      THE
        WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON
        EXERCISE THEREOF HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
        LAW. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
        OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS AN
        EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE THEREFOR.

      

      

      INNOVIVE
        PHARMACEUTICALS, INC.

      

      

      

      Warrant
        for the Purchase of Shares of

      Common
        Stock

       

      
        	No. W-CS-1	
                 Date:
                  June 28,
                  2005

              

      

       

      FOR
        VALUE
        RECEIVED, INNOVIVE PHARMACEUTICALS, INC., a Delaware corporation (the
“Company”),
        hereby certifies that PARAMOUNT
        BIOCAPITAL, INC.,
        its
        designees or its permitted assigns is entitled to purchase from the Company,
        in
        whole or in part, at any time or from time to time commencing on the date
        that
        is the earlier to occur of (1) a Qualified Financing (as defined in the Notes
        (as defined below)) and (2) the later of the Due Date or the expiration of
        the
        Extended Term (each as defined in the Notes), and prior to 5:00 P.M., New
        York
        City time, on the Expiration Date (as defined below), that
        number of fully paid and non-assessable shares (subject to adjustment pursuant
        to the provisions hereof, the “Warrant
        Shares”)
        of the
        Common Stock, $0.001 par value per share, of the Company (together with any
        other equity securities which may be issued by the Company with respect thereto
        or in substitution therefor, the “Common
        Stock”),
        equal
        to (i) (A) ten percent (10%) multiplied by (B) the total principal amount
        of
        certain Senior Convertible Promissory Notes issued by the Company pursuant
        to
        the Subscription Agreements (as defined below) (the “Notes”),
        divided by (ii) the lowest price per share for securities (the “Next
        Round Price”)
        issued
        by the Company in the next Qualified Financing, for an aggregate purchase
        price
        equal to (y) the number of Warrant Shares for which this Warrant is exercisable,
        multiplied by (z) the Per Share Warrant Price (as defined below)
        (the “Aggregate
        Warrant Price”).
        

      

      Hereinafter,
        (i) the price payable for each of the Warrant Shares hereunder is referred
        to as
        the “Per
        Share Warrant Price,”
        which
        Per Share Warrant Price shall be one
        hundred and ten percent (110%) of the Next Round Price, payable in
        cash;
        (ii)
        this Warrant, all similar Warrants issued on the date hereof and all warrants
        hereafter issued in exchange or substitution for this Warrant or such similar
        Warrants are referred to as the “Warrants”;
        (iii)
        the “Expiration
        Date”
        shall
        be the date that is seven (7) years from the date hereof, (iv) the holder
        of
        this Warrant is referred to as the “Holder”
        and the
        holder(s) of this Warrant and all other Warrants and Warrant Shares are referred
        to as the “Holders”
        and
        Holders of more than fifty percent (50%) of the outstanding Warrants and
        Warrant
        Shares are referred to as the “Majority
        of the Holders”;
        and
        (v) the then Current Market Price per share of Common Stock (the “Current
        Market Price”)
        as of
        any date shall be deemed to be the last sale price of the Common Stock on
        the
        trading day prior to such date or, in case no such reported sales take place
        on
        such day, the average of the last reported bid and asked prices of the Common
        Stock on such day, in either case on the principal national securities exchange
        on which the Common Stock is admitted to trading or listed, or if not listed
        or
        admitted to trading on any such exchange, the representative closing bid
        price
        of the Common Stock as reported by the National Association of Securities
        Dealers, Inc., Automated Quotations System (“NASDAQ”),
        or
        other similar organization if NASDAQ is no longer reporting such information,
        or, if the Common Stock is not reported on NASDAQ, the high per share bid
        price
        for the Common Stock in the over-the-counter market as reported by the National
        Quotation Bureau or similar organization, or if not so available, the fair
        market value of the Common Stock as determined by agreement between the then
        current Majority of the Holders and the Company’s Board of Directors.
In
        the
        event that a Qualified Financing does not occur prior to the Due Date (or
        expiration of the Extended Term), the Next Round Price, for purposes of
        determining the number of Warrant Shares for which this Warrant is exercisable
        and the applicable Per Share Warrant Price, shall be determined by dividing
        a
        $12,500,000 pre-money valuation of the Company by the number of shares of
        Common
        Stock of the Company then outstanding on a fully diluted basis (not including
        conversion of the Bridge Notes (as defined in the Notes)). 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      The
        Aggregate Warrant Price is not subject to adjustment. The Per Share Warrant
        Price is subject to adjustment as hereinafter provided; in the event of any
        such
        adjustment, the number of Warrant Shares deliverable upon exercise of this
        Warrant shall be adjusted by dividing the Aggregate Warrant Price by the
        Per
        Share Warrant Price in effect immediately after such adjustment.

      

      1.   Exercise
        of Warrant.
        

      

      (a)   This
        Warrant may be exercised, in whole or in part at any time and from time to
        time,
        commencing on the date that is the earlier to occur of (1) a Qualified Financing
        and (2) the later of the Due Date or the expiration of the Extended Term,
        and
        prior to 5:00 P.M., New York City time, on the Expiration Date by the
        Holder:

      

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

      

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

      

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

      

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

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

      3.   Protection
        Against Dilution.
        

      

      (a)   In
        case
        the Company shall hereafter (i) pay a dividend or make a distribution on
        its
        capital stock in shares of Common Stock, (ii) subdivide its outstanding shares
        of Common Stock into a greater number of shares, (iii) combine its outstanding
        shares of Common Stock into a smaller number of shares or (iv) issue by
        reclassification of its Common Stock any shares of capital stock of the Company,
        the Per Share Warrant Price shall be adjusted to be equal to a fraction,
        the
        numerator of which shall be the Aggregate Warrant Price and the denominator
        of
        which shall be the number of shares of Common Stock or other capital stock
        of
        the Company which the Holder would have owned immediately following such
        action
        had such Warrants been exercised for Warrant Shares immediately prior thereto.
        An adjustment made pursuant to this Section 3(a) shall become effective
        immediately after the record date in the case of a dividend, or distribution,
        and shall become effective immediately after the effective date in the case
        of a
        subdivision, combination or reclassification.

      

      (b)   In
        case
        of any capital reorganization or reclassification, or any consolidation or
        merger to which the Company is a party other than a merger or consolidation
        in
        which the Company is the continuing corporation, or in case of any sale or
        conveyance to another entity of the property of the Company as an entirety
        or
        substantially as a entirety, or in the case of any statutory exchange of
        securities with another corporation (including any exchange effected in
        connection with a merger of another corporation or other entity into the
        Company), the Holder of this Warrant shall have the right thereafter to receive
        on the exercise of this Warrant the kind and amount of securities, cash or
        other
        property which the Holder would have owned or have been entitled to receive
        immediately after such reorganization, reclassification, consolidation, merger,
        statutory exchange, sale or conveyance had this Warrant been exercised
        immediately prior to the effective date of such reorganization,
        reclassification, consolidation, merger, statutory exchange, sale or conveyance
        and in any such case, if necessary, appropriate adjustment shall be made
        in the
        application of the provisions set forth in this Section 3 with respect to
        the
        rights and interests thereafter of the Holder of this Warrant to the end
        that
        the provisions set forth in this Section 3 shall thereafter correspondingly
        be
        made applicable, as nearly as may reasonably be, in relation to any shares
        of
        stock or other securities or property thereafter deliverable on the exercise
        of
        this Warrant. The above provisions of this Section 3(b) shall similarly apply
        to
        successive reorganizations, reclassifications, consolidations, mergers,
        statutory exchanges, sales or conveyances. The Company shall require the
        issuer
        of any shares of stock or other securities or property thereafter deliverable
        on
        the exercise of this Warrant to be responsible for all of the agreements
        and
        obligations of the Company hereunder. Notice of any such reorganization,
        reclassification, consolidation, merger, statutory exchange, sale or conveyance
        and of said provisions so proposed to be made, shall be mailed to the Holders
        of
        the Warrants not less than thirty (30) days prior to such event. 

      

      (c)   The
        Company will not, by amendment of its certificate of incorporation or through
        reorganization, consolidation, merger, dissolution, sale of assets or any
        other
        voluntary action, avoid or seek to avoid the observance or performance of
        any of
        the terms of this Warrant, but will at all times in good faith assist in
        the
        carrying out of all such terms and in the taking of all such action as may
        be
        necessary or appropriate in order to protect the rights of the Holders against
        dilution or other impairment. In case there is a dispute between the Majority
        of
        the Holders and the Company as to application of this Section 3, or as to
        protection of the rights of the Holders against dilution, then, in such case,
        the Majority of the Holders may appoint a firm of independent public accountants
        of recognized national standing reasonably acceptable to the Company, which
        shall give their opinion as to the adjustment, if any, on a basis consistent
        with the essential intent and principles established herein, necessary to
        preserve the purchase rights represented by the Warrants. Upon receipt of
        such
        opinion, the Company will promptly mail a copy thereof to the Holder of this
        Warrant and shall make the adjustments described therein. The fees and expenses
        of such independent public accountants shall be borne by the
        Company.

      

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

      

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

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

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

      

      5.   Registration
        Under Securities Act of 1933.   The
        Holder shall have the
        right to participate in the registration rights granted to purchasers of
        Notes
        and Warrants pursuant to Section 8 of the Note and Warrant Purchase Agreements
        (the “Subscription
        Agreements”)
        entered into between each such purchaser and the Company in connection with
        the
        issuance and sale of securities of the Company on or about June 28, 2005,
        to the
        same extent as if the Holder were a party thereto. The Company shall have
        the
        same obligations to the Holder as it has under Section 8 of the Subscription
        Agreements to the “Subscribers” thereunder, and the Holder shall be entitled to
        enforce such obligations against the Company as if the Holder were a party
        thereto. By acceptance of this Warrant, the Holder agrees to comply with
        the
        provisions in Section 8 of the Subscription Agreements to the same extent
        as if
        it were a party thereto.

      

      6.   Investment
        Intent; Limited Transferability. 

      

      (a)   The
        Holder represents, by
        accepting this Warrant, that it is an “accredited investor” as that term is
        defined in Rule 501 promulgated under the Act and understands that this Warrant
        and any securities issuable upon exercise of this Warrant have not been
        registered for sale under Federal or state securities laws or “Blue Sky” laws
        and are being offered and sold to the Holder pursuant to one or more exemptions
        from the registration requirements of such securities laws. The Holder further
        represents to the Company that it is acquiring this Warrant and will acquire
        any
        securities issuable upon exercise of this Warrant for its own account for
        investment and not with a view to, or for sale in connection with, any
        distribution thereof in violation of the Act, and agrees that this Warrant
        and
        any such securities will not be sold or otherwise transferred unless (i)
        a
        registration statement with respect to such transfer is effective under the
        Act
        and any applicable state securities laws or “Blue Sky” laws or (ii) such sale or
        transfer is made pursuant to one or more exemptions from the Act and under
        any
        state securities laws or “Blue Sky” laws.

      

      (b)   This
        Warrant and all
        rights hereunder are transferable, in whole or in part, upon (i) notice to
        the
        Company, (ii) surrender of the Warrant to the Company with a properly executed
        assignment (in the form attached at the end hereof) at the address set forth
        in
        Section 9(a) hereof, and (iii) upon delivery to the Company at such address
        of
        an executed agreement by which the transferee of the Warrant agrees to be
        bound
        by all of the terms and conditions of this Warrant. The Company will maintain
        a
        register containing the names and addresses of the registered Holder of this
        Warrant. Any registered Holder may change such registered holder’s address as
        shown on the warrant register by written notice to the Company requesting
        such
        change. The Company may treat the registered Holder of this Warrant as he
        or it
        appears on the warrant register at any time as the Holder for all purposes.
        The
        Company shall permit any Holder of a Warrant or his duly authorized attorney,
        upon written request during ordinary business hours, to inspect and copy
        or make
        extracts from its books showing the registered holders of Warrants. All Warrants
        issued upon the transfer or assignment of this Warrant will be dated the
        same
        date as this Warrant, and all rights of the holder thereof shall be identical
        to
        those of the Holder.

      

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

      

      8.   Warrant
        Holder Not Stockholder.   This
        Warrant does not
        confer upon the Holder any right to vote or to consent to or receive notice
        as a
        stockholder of the Company, as such, in respect of any matters whatsoever,
        or
        any other rights or liabilities as a stockholder, prior to the exercise hereof;
        this Warrant does, however, require certain notices to Holders as set forth
        herein.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      9.   Communication.   All
        notices under this
        Warrant shall be in writing and shall be deemed to have been given if one
        day
        after deposit with a nationally recognized overnight delivery carrier or
        three
        days after mailing by U.S. certified or registered mail, return receipt
        requested, postage prepaid, addressed to:

      

      (a)   the
        Company at 555 Madison Avenue, 25th
        Floor,
        New York, NY 10022, or such other address as the Company has designated in
        writing to the Holder, or

      

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

      

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

      

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

      

      12.   Recovery
        of Litigation Costs.   If
        any legal action or
        other proceeding is brought for the enforcement of this Warrant, or because
        of
        an alleged dispute, breach, default, or misrepresentation in connection with
        any
        of the provisions of this Warrant, the successful or prevailing party or
        parties
        shall be entitled to recover reasonable attorneys’ fees and other costs incurred
        in that action or proceeding, in addition to any other relief to which it
        or
        they may be entitled.

      

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

      

      

      

      [remainder
        of this page intentionally left blank]

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
        President and attested to by its Secretary this 28th
        day of
        June 2005.

      

      
        
          	 	 	 
	 	INNOVIVE
                  PHARMACEUTICALS, INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:
                  Steven Kelly
	 	Title:
                  President and Chief Executive
                  Officer

        

      
        ATTEST:

      

      

      

      

      _____________________________

      Adam
        Craig, Vice President

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      SUBSCRIPTION

      

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

       

      
        	 	 	 
	 
 	 
 	 
 
	Dated:_______________	 	Signature:____________________
	 	
              
	 	Address:______________________
	 	               
                ______________________

      

       

      

      CASHLESS
        EXERCISE

      

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

      
         

        
          	 	 	 
	 
 	 
 	 
 
	Dated:_______________	 	Signature:____________________
	 	
                
	 	Address:______________________
	 	               
                  ______________________

        

        
 

      

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED _______________ hereby sells, assigns and transfers unto
        ____________________ the foregoing Warrant and all rights evidenced thereby,
        and
        does irrevocably constitute and appoint _____________________, attorney,
        to
        transfer said Warrant on the books of Innovive Pharmaceuticals,
        Inc.

      
         

        
          	 	 	 
	 
 	 
 	 
 
	Dated:_______________	 	Signature:____________________
	 	
                
	 	Address:______________________
	 	               
                  ______________________

        

         

      

      

      PARTIAL
        ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED _______________ hereby assigns and transfers unto ____________________
        the right to purchase _______ shares of the Common Stock, par value $0.001
        per
        share, of Innovive Pharmaceuticals, Inc., covered by the foregoing Warrant,
        and
        a proportionate part of said Warrant and the rights evidenced thereby, and
        does
        irrevocably constitute and appoint ____________________, attorney, to transfer
        that part of said Warrant on the books of Innovive Pharmaceuticals,
        Inc.

       

      
         

        
          	 	 	 
	 
 	 
 	 
 
	Dated:_______________	 	Signature:____________________
	 	
                
	 	Address:______________________
	 	               
                  ______________________

        

        
 

        
          
            
            

          

          
            7Exhibit
        4.4

    

     

    

      THIS
        NOTE
        AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), APPLICABLE
        STATE SECURITIES LAWS, OR APPLICABLE LAWS OF ANY FOREIGN JURISDICTION. THIS
        NOTE
        AND SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW
        TO
        DISTRIBUTION OR RESALE, AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED,
        RENOUNCED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
        STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS
        AND
        IN THE ABSENCE OF COMPLIANCE WITH APPLICABLE LAWS OF ANY FOREIGN JURISDICTION,
        OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
        IS
        NOT REQUIRED AND SUCH FOREIGN JURISDICTION LAWS HAVE BEEN
        SATISFIED.

      

      INNOVIVE
        PHARMACEUTICALS, INC.

      SENIOR
        CONVERTIBLE PROMISSORY NOTE

      

      [City,
        State]

      
        	$_________	
                ___________ ___,
                  2005

              

      

       

      1.   Principal
        and Interest

      

      INNOVIVE
        PHARMACEUTICALS, INC. (the “Company”), a Delaware corporation, for value
        received, hereby promises to pay to the order of ______________________,
        or
        assigns (“Holder”), in lawful money of the United States of America at the
        address for notices to Holder set forth below (or such other address as Holder
        shall provide to the Company pursuant hereto), the principal amount of
        ____________ dollars ($___________), together with interest as set forth
        below.

      

      The
        Company promises to pay interest, compounded semi-annually, on the unpaid
        principal amount from the date hereof until such principal amount is paid
        in
        full at the rate of five percent (5%), or such lesser rate as shall be the
        maximum rate allowable under applicable law. Interest from the date hereof
        shall
        be computed on the basis of a 360-day year of twelve 30-day months, and shall
        be
        accrued and added to principal. Unless converted or prepaid earlier as set
        forth
        below, all unpaid principal and unpaid accrued interest on this Note shall
        be
        due and payable on the first anniversary of the final closing of the Company’s
        sale of Bridge Notes (as defined below) (the “Due Date”). Notwithstanding the
        foregoing, at the option of the Company, by written notice to the Holder
        prior
        to the Due Date, the Company may extend the Due Date until the date that
        is one
        year following the initial Due Date (the “Extended Term”); provided, that,
        during the Extended Term, the interest rate hereunder shall be eight percent
        (8%), or such lesser rate as shall be the maximum rate allowable under
        applicable law.

      

      This
        Note
        is being issued pursuant to that certain Note and Warrant Purchase Agreement
        between the Company and the Holder (the “Purchase Agreement”), and is subject to
        its terms.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

        2.   Prepayment.

      

      

      2.1   All
        unpaid principal and unpaid accrued interest of this Note may be prepaid
        without
        penalty, in whole or in part, at any time upon thirty (30) days written notice
        to Holder.

      

      2.2   Any
        prepayment of this Note will be credited first against accrued interest,
        then
        principal. Upon payment in full of the amount of all principal and interest
        payable hereunder, this Note shall be surrendered to the Company for
        cancellation. 

      

      3.   Conversion.

      

      3.1   All
        unpaid principal and accrued unpaid interest on this Note shall be automatically
        converted into the securities (the “Securities”) issued in the Company’s next
        equity financing (or series of related equity financings) involving the
        Company’s sale of securities to venture capital, institutional or private
        investors in which at least $5,000,000 in gross cash proceeds (before brokers’
        fees or other transaction related expenses) are received by the Company
        (excluding any such proceeds resulting from any conversion of notes of like
        tenor issued pursuant to agreements substantially similar to the Purchase
        Agreement (“Bridge Notes”)) (an “Qualified Financing”), at a conversion price
        equal to ninety percent (90%) of the lowest per unit price for Securities
        paid
        in cash by investors in such Qualified Financing, and upon such other terms,
        conditions and agreements as may be applicable in such Qualified
        Financing,
        to which terms,
        conditions and agreements Holder
        will evidence its consent by execution of appropriate documentation.
        For
        example, if the Company sells securities consisting of a class of preferred
        stock with a warrant to purchase shares of common stock in a Qualified
        Financing, the Holder will receive such preferred stock and such warrants
        upon
        conversion.

      

      3.2   Immediately
        prior to the occurrence of a Sale of the Company (as defined below), all
        unpaid
        principal and accrued unpaid interest on this Note shall be automatically
        converted into shares of the Company’s Common Stock at a conversion price per
        share equal to the Sale Conversion Price (as defined below). The Company
        shall
        not issue fractional shares but shall round up the number of shares issued
        to
        the next whole number. Any conversion effected in accordance with this Section
        3.2 shall be binding upon the Holder hereof. “Sale of the Company” shall mean a
        transaction (or series of like transactions) with one or more non-affiliates,
        pursuant to which such party or parties acquire (i) capital stock of the
        Company
        possessing the voting power to elect a majority of the board of directors
        of the
        Company (whether by merger, consolidation, sale or transfer of the Company’s
        capital stock or otherwise) or (ii) all or substantially all of the Company’s
        assets determined on a consolidated basis. The “Sale Conversion Price” shall
        mean a per share price equal to the quotient obtained by dividing (a) the
        aggregate proceeds received in a Sale of the Company less any convertible
        debt
        of the Company then outstanding by (b) the number of shares of the Company’s
        Common Stock then outstanding on a fully-diluted basis. 

      

      3.3   Upon
        conversion of this Note, the applicable amount of outstanding principal and
        accrued unpaid interest of the Note shall be converted without any further
        action by the Holder and whether or not the Note is surrendered to the Company
        or its transfer agent. The Company shall not be obligated to issue certificates
        evidencing the shares of the securities issuable upon such conversion unless
        the
        Note is either delivered to the Company or its transfer agent, or the Holder
        notifies the Company or its transfer agent that such Note has been lost,
        stolen
        or destroyed and executes an agreement satisfactory to the Company to indemnify
        the Company from any loss incurred by it in connection with such Note. The
        Company shall, as soon as practicable after such delivery, or such agreement
        and
        indemnification, issue and deliver to such Holder of such Note, a certificate
        or
        certificates for the securities to which the Holder shall be entitled, a
        check
        payable to the Holder in the amount of any cash amounts payable as the result
        of
        a conversion into fractional shares of the Securities, as determined by the
        Board of Directors. Such conversion shall be deemed to have been made
        concurrently with the close of the Qualified Financing or immediately prior
        to
        the occurrence of a Sale of the Company, as applicable. The person or persons
        entitled to receive securities issuable upon such conversion shall be treated
        for all purposes as the record holder or holders of such securities on such
        date.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

         

      

      4.   Attorney’s
        Fees.
        If the
        indebtedness represented by this Note or any part thereof is collected in
        bankruptcy, receivership or other judicial proceedings or if this Note is
        placed
        in the hands of attorneys for collection after default, the Company agrees
        to
        pay, in addition to the principal and interest payable hereunder, reasonable
        attorneys’ fees and costs incurred by Holder.

      

      5.   Notices.
        Any
        notice, other communication or payment required or permitted hereunder shall
        be
        in writing and shall be deemed to have been given upon delivery to the address
        provided pursuant to the Purchase Agreement. In the case of notice to either
        party, copies should be sent to W. David Mannheim, Esq., Wyrick, Robbins,
        Yates
& Ponton, 4101 Lake Boone Trail, Suite 300, Raleigh, NC 27607. The Company
        shall notify the Holder in writing at least five (5) days prior to the closing
        of a Qualified Financing.

      

      6.   Notice
        of Proposed Transfers.
        Prior
        to any proposed transfer of this Note or the Securities, unless there is
        in
        effect a registration statement under the Securities Act of 1933, as amended
        (the “Securities Act”), covering the proposed transfer, the holder hereof shall
        give written notice to the Company of such holder’s intention to effect such
        transfer. Each such notice shall describe the manner and circumstances of
        the
        proposed transfer in sufficient detail, and shall, if the Company so requests,
        be accompanied (except in transactions in compliance with Rule 144) by an
        unqualified written opinion of legal counsel, who shall be reasonably
        satisfactory to the Company, addressed to the Company and reasonably
        satisfactory in form and substance to the Company’s counsel, to the effect that
        the proposed transfer of the Note or Securities may be effected without
        registration under the Securities Act; provided, however, no such opinion
        of
        counsel shall be necessary for a transfer without consideration by a Holder
        to
        any affiliate of such Holder, or a transfer by a Holder which is a partnership
        to a partner of such partnership or a retired partner of such partnership
        who
        retires after the date hereof, or to the estate of any such partner or retired
        partner or the transfer by gift, will or intestate succession of any partner
        to
        his spouse or lineal descendants or ancestors, if the transferee agrees in
        writing to be subject to the terms hereof to the same extent as if such
        transferee were the original Holder hereunder. Each certificate evidencing
        Securities or the Note transferred as above provided shall bear an appropriate
        restrictive legend, except that the Note or certificate shall not bear such
        restrictive legend if in the opinion of counsel for the Company such legend
        is
        not required in order to establish compliance with any provisions of the
        Securities Act.

      

      7.   Acceleration.
        This
        Note shall become immediately due and payable if (i) the Company commences
        any
        proceeding in bankruptcy or for dissolution, liquidation, winding-up,
        composition or other relief under state or federal bankruptcy laws; or (ii)
        there is any material breach of any material covenant, warranty, representation
        or other term or condition of this Note or the Purchase Agreement at any
        time
        which is not cured within the time periods permitted therein, or if no cure
        period is provided therein, within sixty (60) days after the date on which
        the
        Company receives notice of such breach. 

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

         

      

      8.   No
        Dilution or Impairment.
        The
        Company will not, by amendment of its Articles of Incorporation or Bylaws
        or
        through any reorganization, transfer of assets, consolidation, merger,
        dissolution, issue or sale of securities or any other voluntary action, avoid
        or
        seek to avoid the observance or performance of any of the terms of this Note,
        but will at all times in good faith assist in the carrying out of all such
        terms
        and in the taking of all such action as may be necessary or appropriate in
        order
        to protect the rights of the Holder of this Note against dilution or other
        impairment.

      

      9.   Waivers.
        The
        Company hereby waives presentment, demand for performance, notice of
        non-performance, protest, notice of protest and notice of dishonor. No delay
        on
        the part of Holder in exercising any right hereunder shall operate as a waiver
        of such right or any other right. This Note is being delivered in and shall
        be
        construed in accordance with the laws of the State of New York, without regard
        to the conflicts of laws provisions thereof.

      

      10.   No
        Shareholder Rights.
        Nothing
        contained in this Note shall be construed as conferring upon the Holder or
        any
        other person the right to vote or to consent or to receive notice as a
        shareholder of the Company.

      

      11.   Amendment.
        Any
        term of this Note may be amended with the written consent of the Company
        and the
        holders of not less than sixty-six and two-thirds percent (662⁄3%) of the then
        outstanding principal amount of the other notes (the “Bridge Notes”) issued
        pursuant to a Note and Warrant Purchase Agreement substantially similar to
        the
        Purchase Agreement, even without the consent of the Holder hereof. Any amendment
        effected in accordance with this Section 11 shall be binding upon each holder
        of
        any Bridge Note, each future holder of all such Bridge Notes, and the Company;
        provided,
        however,
        that no
        special consideration or inducement may be given to any such holder in
        connection with such consent that is not given ratably to all such holders,
        and
        that such amendment must apply to all such holders ratably in accordance
        with
        the principal amount of their then outstanding Bridge Notes. The Company
        shall
        promptly give notice to all holders of outstanding Bridge Notes of any amendment
        effected in accordance with this Section 11.

      

      ISSUED
        as
        of the date first above written.

      

      INNOVIVE
        PHARMACEUTICALS, INC.

      

      By:____________________________

      Name:__________________________

      Title:___________________________

       

      

      
        
           

        

        
          4

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