Document:

Exhibit
4.7

    

    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.

    

    VENTRUS
BIOSCIENCES, INC.

    CONVERTIBLE
PROMISSORY NOTE

    

    
      	 
      	
              New
      York, NY

            
	
              $___________

            	
              ___________
      ___, 2010

            

    

    

    1.           Principal and
Interest

    

    VENTRUS BIOSCIENCES, 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 in the applicable Purchase Agreement (as defined 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 annually, on the unpaid principal amount from the date hereof until
such principal amount is paid in full at the rate of eight percent (8%), 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 on an annual basis.  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 September 10, 2010 (the “Due Date”); provided, however, that during
the continuance of an Event of Default (as defined herein), the interest rate on
this Note shall be increased to twelve percent (12%) per annum.

    

    This Note is one of a series of
convertible promissory notes of like tenor and ranking (collectively, the
“Notes”) made by the Company in favor of certain investors and issued, from time
to time, on and after the date hereof, all upon terms set forth in that certain
Confidential Private Placement Memorandum, dated April __, 2010, as same may be
amended and supplemented from time (collectively referred to herein as the
“Memorandum”), which has been issued by the Company.

    

    The Notes are unsecured obligations of
the Company and rank pari passu with the Company’s other existing indebtedness,
and no new indebtedness which is secured or senior to the Notes may be issued by
the Company without the consent of the Holders of Notes representing at least
sixty six and two thirds percent (662⁄3%) of the principal amount of all
outstanding Notes.  No consent of the Holders of the Notes is required
for issuances by the Company of unsecured indebtedness that ranks pari passu
with, or junior to, the Notes.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2.           Conversion.

    

    2.1          (a)
All unpaid principal and accrued unpaid interest on this Note shall be
automatically converted into the Company’s common stock, par value $0.001
(“Common Stock”) upon a Qualified IPO (as defined below) at a conversion price
equal to 70% of the price at which such securities of the Company are sold in a
Qualified IPO (the “IPO Price”), and on
such other terms and conditions on which such securities are sold in the
Qualified IPO.  For purposes hereof, “Qualified IPO” means
the consummation of an underwritten initial public offering of equity securities
by the Company resulting in aggregate gross cash proceeds (before commissions or
other expenses) to the Company of at least $10,000,000.

    

    (b)       In
the event that the Company consummates a merger, share exchange, or other
similar transaction (or series of related transactions), other than in
connection with a Qualified IPO, in which (i) the Company merges into or
otherwise becomes a wholly-owned subsidiary of a company that (A) is subject to
the public company reporting requirements of the Securities Exchange Act of
1934, as amended, and (B) does not engage in any active operations, and (ii) the
aggregate consideration payable to the Company or its stockholders in such
transaction(s) (the “Reverse Merger
Consideration”) is greater than or equal to $10,000,000 (a “Reverse Merger”),
then immediately prior to such Reverse Merger, all unpaid principal and accrued
but unpaid interest on this Note shall be automatically converted into Common
Stock at a conversion price per share equal to 70% of the quotient obtained by
dividing (i) the Reverse Merger Consideration less the amount of unpaid
principal and accrued but unpaid interest on all Notes, 2010 Notes (as defined
below), Bridge Notes (as defined below) and the Existing Notes (as defined
below) immediately prior to the Reverse Merger by (ii) the number of shares of
Common Stock of the Company then outstanding, on a fully diluted basis (the
“Outstanding
Shares”).  For this purpose, Outstanding Shares shall (i)
exclude any shares of Common Stock issuable upon conversion of the Notes, 2010
Notes, Bridge Notes or the Existing Notes or upon exercise of the warrants
issued to the Placement Agent in connection with the sale of the Notes or 2010
Notes  but (ii) include all shares of Common Stock issuable upon the
exercise of (A) options and other warrants outstanding (to the extent that such
options or warrants are exercised or assumed in connection with the Reverse
Merger) and (B) options that the Company is required by agreement to issue to
one or more employees, consultants, or licensors of the Company in connection
with such Reverse Merger to maintain a specified percentage interest in the
Company (but which have not yet been issued)).  For purposes hereof, “Existing Notes” shall
mean collectively, (1) that certain Future Advance Promissory Note dated April
24, 2009, in favor of the Capretti Grandi, LLC and (2) that certain Future
Advance Promissory Note dated June 23, 2008, as amended on July 23, 2009, in
favor of Paramount Biosciences, LLC and “Bridge Notes” shall
mean the notes issued pursuant to those certain Note Purchase Agreements dated
December 21, 2007, January 22, 2008, February 15, 2008 and March 11, 2008. For
purposes hereof, “2010
Notes” shall mean the notes issued pursuant to those certain Subscription
Agreements dated February 26, 2010 and March 31, 2010.

    

    The
shares of Common Stock issuable pursuant to clause 2.1(b) above shall be issued
effective prior to the consummation of the Reverse Merger and conditioned upon
the consummation of such Reverse Merger.  As a holder of such shares of
Common Stock, the Holder will receive the consideration payable in connection
with such Reverse Merger on a share-for-share basis with all other stockholders
of the Company and in like kind, at the same time and upon the same conditions
as all other stockholders of the Company. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    If any
Reverse Merger Consideration is other than cash, its value will be deemed to be
its fair market value as determined, in good faith, by the Board of Directors of
the Company.  The value of any securities shall be determined by the Board
of Directors of the Company as set forth for a Sale of the Company in Section
2.1(c) below.

    

    (c)      
The Notes plus any unpaid accrued interest thereon shall automatically convert
into shares of Common Stock of the Company effective immediately prior to the
consummation of a Sale of the Company.  For purposes hereof, “Sale of the Company”
shall mean a transaction (or series of related transactions) with one or more
non-affiliates of the Company, pursuant to which such party or parties acquire
(i) capital stock of the Company or the surviving entity possessing the voting
power to elect a majority of the board of directors of the Company or the
surviving entity (whether by merger, consolidation, sale or transfer of the
Company’s capital stock or otherwise) (a “Stock Acquisition”);
or (ii) all or substantially all of the Company’s assets determined on a
consolidated basis (an “Asset Sale”);
provided, however, that notwithstanding anything to the contrary contained
herein, to the extent any transaction (or series of related transactions)
qualifies as a Qualified Financing or a Reverse Merger, such transaction(s)
shall not be deemed to constitute a Sale of the Company.  For purposes
hereof, “Sale
Proceeds” shall mean (i) in the event of a Stock Acquisition, the cash or
securities paid by the acquirer to the Company or the selling stockholders to
acquire such shares; and (ii) in the event of an Asset Sale, the cash or
securities legally available for distribution to the Company’s stockholders,
after creation of adequate reserves for liabilities of the
Company.  

    

    The price
per share at which the Notes will convert into Common Stock of the Company upon
a Sale of the Company will be equal to the lesser of (i) 70% of the quotient
obtained by dividing (x) the value of the Sale Proceeds received in such
transaction less the unpaid principal and accrued but unpaid interest on the
Notes, 2010 Notes, Bridge Notes and the Existing Notes immediately prior to the
Sale of the Company by (y) the number of Outstanding Shares, and (ii) the
quotient obtained by dividing (x) $50,000,000 less the unpaid principal and
accrued but unpaid interest on the Notes, 2010 Notes, the Bridge Notes and the
Existing Notes by (y) the number of Outstanding Shares.  For purposes
of this Section 2.1(c), Outstanding Shares shall be determined as set forth in
Section 2.1(b) of this Note, except that it shall not include any shares of
Common Stock issuable upon the exercise of any options and warrants outstanding
immediately prior to such Sale of the Company if such options or warrants have
an exercise price in excess of the Note conversion price determined under this
Section 2.1(c)).

    

    (d)       In
the event the Company completes (in one or a series of related transactions) a
merger, consolidation, sale or transfer of more than fifty percent (50%) of the
Company’s capital stock, in each case, which does not constitute a Sale of the
Company, a Reverse Merger or a Qualified Financing (an “Other Transaction”),
then the term “Securities” as used herein shall thereafter refer to the equity
securities or securities convertible into or exchangeable for equity securities
of the surviving, resulting, combined or acquiring entity in such merger,
consolidation, sale or transfer.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2.2          Upon
conversion of this Note in accordance with the terms of this Section 2, 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.  Such conversion
shall be deemed to have been made concurrently with the close of the Qualified
IPO, Sale of the Company or Reverse Merger.  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. 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 2 shall be binding upon the Holder
hereof.

    

    3.           Prepayment.  The
Notes may not be prepaid at any time, in whole or in part, prior to their
maturity.

    

    4.           Events of
Default.  The entire unpaid principal amount under this Note
and the interest due thereon shall become and be due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived, if any one or more of the following events (herein
called “Events of Default”) shall have occurred (for any reason whatsoever and
whether such happening shall be voluntary or involuntary or come about or be
effected by operation of law or pursuant to or in compliance with any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body) and be continuing at the time of such
notice, that is to say:

    

    (a)          the
Company shall default in the performance of, or violate any of the covenants and
agreements contained in this Note or the Subscription Agreement executed in
connection with the Memorandum, including without limitation, the failure to pay
the Note on the Due Date;

     

    (c)          there
shall be a dissolution, termination of existence, suspension or discontinuance
of the Company’s business for a continuous period of 60 days or it ceases to
operate as going concern;

     

    (d)          if
the Company shall:

     

    (i)        admit
in writing its inability to pay its debts generally as they become
due;

    (ii)       file
a petition in bankruptcy or a petition to take advantage of any insolvency
act;

    (iii)      convey
any material portion of the assets of the Company to a trustee, mortgage or
liquidating agent or make an assignment for the benefit of
creditors;

    

    (iv)      consent
to the appointment of a receiver, trustee, custodian or similar official, for
the Company or any material portion of the property or assets of the Company;
or

    

    (v)       on
a petition in bankruptcy filed against it, be adjudicated a bankrupt;
or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (vi)      file
a petition or answer seeking reorganization or arrangement under the federal
bankruptcy laws or any other applicable law or statute of the United States of
America or any State, district or territory thereof;

    

    (e)          if
a court of competent jurisdiction shall enter an order, judgment, or decree
appointing, without the consent of the Company, a receiver of the whole or any
substantial part of the Company’s assets, and such order, judgment or decree
shall not be vacated or set aside or stayed within 60 days from the date of
entry thereof;

     

    (f)          if,
under the provisions of any other law for the relief or aid of debtors, any
court of competent jurisdiction shall assume custody or control of the whole or
any substantial part of the Company’s assets and such custody or control shall
not be terminated or stayed within 60 days from the date of assumption of such
custody or control;

     

    (g)          the
Company shall default in any of its obligations under any Bridge Note or
Existing Note or any other promissory note, indenture or any mortgage, credit
agreement or other facility, indenture agreement, factoring agreement or other
instrument under which there may be issued, or by which there may be evidenced
any indebtedness for borrowed money or money due in an amount exceeding $50,000,
whether such indebtedness now exists or shall hereafter be created and such
default shall result in such indebtedness becoming or being declared due and
payable prior to the date on which it would otherwise become due and payable;
or

     

    (h)         any
representation or warranty made by the Company in the Subscription Agreement
was, when made, untrue or misleading, the result of which is reasonably likely
to have a Material Adverse Effect.

     

    If any
Event of Default shall have occurred and be continuing, the Holder may proceed
to protect and enforce the Holder’s rights either by suit in equity and/or by
action at law, whether for the specific performance of any covenant or agreement
contained in this Note or in aid of the exercise of any power granted in this
Note, or may proceed to enforce the payment of all sums due upon this Note or to
enforce any other legal or equitable right of the Holder.

     

    5.           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.

    

    6.           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 LLP, 4101 Lake Boone Trail Suite
300, Raleigh, NC 27607-7506.  The Company shall notify the Holder in
writing at least five (5) days prior to the closing of a Qualified IPO, Sale of
the Company or Reverse Merger.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    7.           Notice of Proposed
Transfers.  Prior to any proposed transfer of this Note or the
Common Stock, unless there is in effect a registration statement under 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 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 Common Stock
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 Common Stock 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.

    

    8.           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.

    

    9.           No Dilution or
Impairment.  The Company will not, by amendment of its
Certificate 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.

    

    10.         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 Delaware, without regard to the conflicts of laws provisions
thereof.

    

    11.         No Stockholder
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 stockholder of the Company.

    

    12.         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 Notes, even without the consent of the
Holder hereof.  Any amendment effected in accordance with this Section
12 shall be binding upon each holder of any Note, each future holder of all such
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 Notes.  The Company
shall promptly give notice to all holders of outstanding Notes of any amendment
effected in accordance with this Section 12.

    

    [SIGNATURE
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    ISSUED as
of the date first above written.

    

    
      
        
          
            	 
      	
                    VENTRUS
      BIOSCIENCES, INC.

                  
	 
      	 
      	 
      	 
	 
      	
                    By:

                  	 
      	 
	 
      	
                    Name:

                  	 
      	 
	 
      	
                    Title:Exhibit
4.8

    

    Warrant
No. [___________]

    

    VENTRUS
BIOSCIENCES, INC.

    COMMON
STOCK WARRANT

     

    THIS
WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR
UNDER THE SECURITIES LAWS OF ANY STATE.  THIS WARRANT IS SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  THE ISSUER OF THIS
WARRANT MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO
THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE
WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

     

    This
certifies that [_____________] (the “Holder”), its
designees or permitted assigns, at any time or from time to time up to and
including 5:00 p.m. (Eastern Time) on February __, 2015 (the “Expiration Date”), is
entitled to purchase from Ventrus Biosciences, Inc., a Delaware corporation (the
“Company”),
that number of fully-paid and nonassessable shares (the “Warrant Shares”) of
the Company’s Common Stock, $0.001 par value per share (the “Common Stock”), equal
to (x) the number of Units purchased by Holder pursuant to the Company’s
Confidential Offering Memorandum dated January 5, 2010, as the same may be
amended or supplemented from time to time (the “Memorandum”) multiplied by (y)
the quotient obtained by dividing (i) $12,500 by  (ii) the price at
which securities of the Company are sold in a Qualified IPO (the “IPO Price”).  To exercise this
warrant (the “Warrant”), the Holder must surrender to the Company at its
principal office (or at such other location as the Company may advise the Holder
in writing) this Warrant properly endorsed with the Form of Subscription
attached hereto duly completed and signed and with payment of the aggregate
Exercise Price (as defined below) for the number of Warrant Shares for which
this Warrant is being exercised determined in accordance with the provisions
hereof.  The per share exercise price (the “Exercise Price”) per
Warrant Share issuable pursuant to this Common Stock Warrant shall be equal to
110% of the IPO Price, payable in accordance with Section 1(b) hereof.
Notwithstanding the foregoing, if a Qualified IPO does not occur on or before
February __, 2012, then, at the sole option of the Holder, (x) this Common Stock
Warrant will be exercisable for that number of Warrant Shares equal to fifty
percent (50%) of the principal amount of the Note purchased by the Holder
pursuant to the Memorandum divided by $1.00 and (y) the Exercise Price shall be
$1.00. The Exercise Price is subject to adjustment as provided in Section 3 of
this Warrant.  Notwithstanding the foregoing, the Company shall have
the right to redeem this Warrant as described in Section 4 hereof.  If
no Qualified IPO has occurred by February __, 2012 and should the Holder elect
to adjust the Per Share Warrant Price to $1.00 herein, he may do so at any time
relating to any unexercised portion of this Warrant by providing written notice
to the Company of such election.  All capitalized terms not defined
herein shall have the meaning assigned to such terms in that certain Convertible
Promissory Note dated February __, 2010 issued by the Company to the Holder (the
“Note”).

     

    The
Company shall notify the Holder in writing at least five (5) days prior to the
closing of a Qualified IPO to advise Holder as to the number of Warrant Shares
and the Exercise Price of this Warrant.  Upon request of the Holder,
upon return to the Company of this Warrant, or upon receipt of a lost warrant
affidavit in form and substance reasonably acceptable to the Company in the
event this Warrant shall be lost or destroyed, the Company shall provide Holder
with a new Warrant setting forth the number of Warrant Shares underlying this
Warrant and the Exercise Price thereof.  Notices hereunder shall be
sent by the same means and notices sent pursuant to Section 4(b)
hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This
Warrant is issued subject to the following terms and conditions:

     

    1.           Exercise, Issuance of
Certificates.  Subject to Section 4 hereof, the Holder may
exercise this Warrant at any time or from time to time after the earlier to
occur of a Qualified IPO or the second anniversary of the Initial Closing, and
on or prior to the Expiration Date for all or any part of the Warrant Shares
(but not for a fraction of a share) that may be purchased hereunder, as that
number may be adjusted pursuant to Section 3 of this Warrant.  The
Company agrees that the Warrant Shares purchased under this Warrant shall be and
are deemed to be issued to the Holder hereof as the record owner of such Warrant
Shares as of the close of business on the date on which this Warrant shall have
been surrendered, properly endorsed, the completed and executed Form of
Subscription delivered, and payment made for such Warrant Shares (such date, a
“Date of
Exercise”).  Certificates for the Warrant Shares so purchased,
together with any other securities or property to which the Holder hereof is
entitled upon such exercise, shall be delivered to the Holder hereof by the
Company at the Company’s expense as soon as practicable after the rights
represented by this Warrant have been so exercised, but in any event not later
than ten (10) business days following the Date of Exercise.  In case
of a purchase of less than all the Warrant Shares which may be purchased under
this Warrant, the Company shall cancel this Warrant and execute and deliver to
the Holder hereof within a reasonable time a new Warrant or Warrants of like
tenor for the balance of the Warrant Shares purchasable under the Warrant
surrendered upon such purchase.  Each stock certificate so delivered
shall be registered in the name of such Holder and issued with a legend in
substantially the form of the legend placed on the front of this
Warrant.

     

    (a)           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.  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.

     

    (b)           The
Holder shall pay the Exercise Price by delivering immediately available funds to
the Company.

     

    2.           Shares to be Fully Paid;
Reservation of Shares.  The Company covenants and agrees that
all Warrant Shares will, upon issuance and payment of the applicable Exercise
Price, be duly authorized, validly issued, fully paid and nonassessable, and
free of all preemptive rights, liens and encumbrances, except for restrictions
on transfer provided for herein.  The Company shall at all times
reserve and keep available out of its authorized and unissued Common Stock,
solely for the purpose of providing for the exercise of the rights to purchase
all Warrant Shares granted pursuant to this Warrant, such number of shares of
Common Stock as shall, from time to time, be sufficient therefor.

     

    3.           Adjustment of Exercise Price
and Number of Shares.  The Exercise Price and the total number
of Warrant Shares shall be subject to adjustment from time to time upon the
occurrence of certain events described in this Section 3.

     

    (a)           Subdivision or Combination
of Stock.  In the event the outstanding shares of the Company’s
Common Stock shall be increased by a stock dividend payable in Common Stock,
stock split, subdivision, or other similar transaction occurring after the date
hereof into a greater number of shares of Common Stock, the Exercise Price in
effect immediately prior to such subdivision shall be proportionately reduced
and the number of Warrant Shares issuable hereunder proportionately
increased.  Conversely, in the event the outstanding shares of the
Company’s Common Stock shall be decreased by reverse stock split, combination,
consolidation, or other similar transaction occurring after the date hereof into
a lesser number of shares of Common Stock, the Exercise Price in effect
immediately prior to such combination shall be proportionately increased and the
number of Warrant Shares issuable hereunder proportionately
decreased.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Reclassification.  If
any reclassification of the capital stock of the Company or any reorganization,
consolidation, merger, or any sale, lease, license, exchange or other transfer
(in one transaction or a series of related transactions) of all or substantially
all, of the business and/or assets of the Company (the “Reclassification
Events”) shall be effected in such a way that holders of Common Stock
shall be entitled to receive stock, securities, or other assets or property,
then, as a condition of such Reclassification Event, lawful and adequate
provisions shall be made whereby the Holder hereof shall thereafter have the
right to purchase and receive (in lieu of the shares of Common Stock of the
Company immediately theretofore purchasable and receivable upon the exercise of
the rights represented hereby) such shares of stock, securities, or other assets
or property as may be issued or payable with respect to or in exchange for a
number of outstanding shares of such Common Stock equal to the number of shares
of such stock immediately theretofore purchasable and receivable upon the
exercise of the rights represented hereby.  In any Reclassification
Event, appropriate provision shall be made with respect to the rights and
interests of the Holder of this Warrant to the end that the provisions hereof
(including, without limitation, provisions for adjustments of the Exercise Price
and of the number of Warrant Shares), shall thereafter be applicable, as nearly
as may be, in relation to any shares of stock, securities, or assets thereafter
deliverable upon the exercise hereof.

     

    (c)           Notice of
Adjustment.  Upon any adjustment of the Exercise Price or any
increase or decrease in the number of Warrant Shares, the Company shall give
written notice thereof, by first class mail postage prepaid, addressed to the
registered Holder of this Warrant at the address of such Holder as shown on the
books of the Company.  The notice shall be prepared and signed by the
Company’s Chief Financial Officer and shall state the Exercise Price resulting
from such adjustment and the increase or decrease, if any, in the number of
shares purchasable at such price upon the exercise of this Warrant, setting
forth in reasonable detail the method of calculation and the facts upon which
such calculation is based.

    

    4.           Redemption of
Warrants.

     

    (a)           Redemption.  This
Warrant may be redeemed at the option of the Company, at any time after the date
the Common Stock is traded on the Over-the-Counter Bulletin Board (the “OTCBB”), Small Cap
Market System or on a national securities exchange, following a period of thirty
(30) consecutive calendar days in which the per share average closing sale price
of the Common Stock equals or exceeds an amount that is twice the Exercise Price, on
notice as set forth in Section 4(b) hereof, and at a redemption price equal to
$0.001 (the “Redemption Price”)
for each Warrant Share purchasable under this Warrant; provided, however, that this
Warrant may not be redeemed by the Company unless the resale of the Warrant
Shares purchasable hereunder has been registered under the Securities Act of
1933, as amended (the “Act”) or are
otherwise freely tradable.  For purposes of this Section, the closing
sale price of the Common Stock shall be determined by the closing price as
reported by the OTCBB so long as the Common Stock is quoted on the OTCBB, and if
the Common Stock is hereafter listed or quoted on the SmallCap Market Systems or
a national securities exchange, shall be determined by the last reported sale
price on the primary exchange or market on which the Common Stock is
traded.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Notice of
Redemption.  In the case of any redemption of this Warrant, the
Company shall give notice of such redemption to the Holder hereof as provided in
this Section 4(b).  Notice of redemption to the Holder of this Warrant
shall be given in person, by recognized overnight courier, mailed by certified
or registered mail, return receipt requested, or by confirmed facsimile
transmission, to the Holder’s last address and/or facsimile of record with the
Company not less than thirty (30) days prior to the date fixed for
redemption.  Any notice which is given in the manner herein provided
shall be conclusively presumed to have been duly given, whether or not the
Holder receives the notice.  Each such notice shall specify the date
fixed for redemption, the place of redemption and the aggregate Redemption
Price, and shall state that payment of the Redemption Price will be made upon
surrender of this Warrant at such place of redemption, and that if not exercised
by the close of business on the date fixed for redemption, the exercise rights
of the Warrant shall expire unless extended by the Company.  Such
notice shall also state the current Exercise Price and the date on which the
right to exercise the Warrant will expire unless extended by the
Company.

     

    (c)           Payment of Redemption
Price.  If notice of redemption shall have been given as
provided in Section 4(b), the Redemption Price shall, unless the Warrant is
theretofore exercised pursuant to the terms hereof, become due and payable on
the date and at the place stated in such notice.  On and after such
date of redemption, the exercise rights of this Warrant shall expire and this
Warrant shall be null and void on presentation and surrender of this Warrant at
such place of payment in such notice specified, this Warrant shall be paid and
redeemed at the Redemption Price per Warrant Share within ten (10) days
thereafter.

     

    5.           No Voting or Dividend
Rights.  Nothing contained in this Warrant shall be construed
as conferring upon the holder hereof the right to vote or to consent to receive
notice as a stockholder of the Company on any other matters or any rights
whatsoever as a shareholder of the Company.  No dividends or interest
shall be payable or accrued in respect of this Warrant or the interest
represented hereby or the shares purchasable hereunder until, and only to the
extent that, this Warrant shall have been exercised.

     

    6.           Compliance with Securities
Act. The Holder of this Warrant, by acceptance hereof, agrees that this
Warrant is being acquired for its own account and not for any other person or
persons, for investment purposes and that it will not offer, sell, or otherwise
dispose of this Warrant except under circumstances which will not result in a
violation of the Act or any applicable state securities laws.

     

    7.           Limited
Transferability.  The Holder represents that by accepting this
Warrant it understands that this Warrant and any securities obtainable upon
exercise of this Warrant have not been registered for sale under Federal or
state securities laws and are being offered and sold to the Holder pursuant to
one or more exemptions from the registration requirements of such securities
laws.  In the absence of an effective registration of such securities
or an exemption therefrom, any certificates for such securities shall bear the
legend set forth on the first page hereof.  The Holder understands
that it must bear the economic risk of its investment in this Warrant and any
securities obtainable upon exercise of this Warrant for an indefinite period of
time, as this Warrant and such securities have not been registered under Federal
or state securities laws and therefore cannot be sold unless subsequently
registered under such laws, unless an exemption from such registration is
available.

     

    8.           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
any provisions hereof may be amended, waived, discharged or terminated upon the
written consent of the Company and the Super Majority of the
Holders.  For purposes hereof, “Super Majority of the
Holders” shall mean Holders of more than sixty-six and two-thirds percent (662⁄3%)
of the Warrant Shares then issuable upon exercise of then outstanding
warrants of like tenor to this Warrant issued by the Company in connection with
the issuance of Notes (as defined in the Note).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.           Notices.  Any
notice, request, or other document required or permitted to be given or
delivered to the Holder hereof or the Company shall be delivered as set forth in
the Purchase Agreement.

     

    10.         Governing
Law.  This Warrant shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Delaware.

     

    11.         Lost or Stolen
Warrant.  Upon receipt of evidence reasonably satisfactory to
the Company of the loss, theft, destruction, or mutilation of this Warrant and,
in the case of any such loss, theft or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation,
upon surrender and cancellation of such Warrant, the Company, at its expense,
will make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen,
destroyed or mutilated Warrant.

     

    12.         Fractional
Shares.  No fractional shares shall be issued upon exercise of
this Warrant.  The Company shall, in lieu of issuing any fractional
share, pay the Holder entitled to such fraction a sum in cash equal to such
fraction (calculated to the nearest 1/100th of a share) multiplied by the then
effective Exercise Price on the date the Form of Subscription is received by the
Company.

     

    13.         Successors and
Assigns.  This Warrant and the rights evidenced hereby shall
inure to the benefit of and be binding upon the successors of the Company and
the successors and assigns of the Holder.  The provisions of this
Warrant are intended to be for the benefit of all Holders from time to time of
this Warrant, and shall be enforceable by any such Holder.

     

    14.         Severability of
Provisions. 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.

     

    [Signature
Page Follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
4.8

    

    Warrant
No. [___________]

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of
this ___ day of ____________, 20__.

    

    
      
        
          
            	
                    Ventrus
      Biosciences, Inc.

                  
	 
      	 
      
	
                    By:

                  	 
      
	 
      	 
      
	
                    Name: 

                  	 
      
	 
      	 
      
	
                    Title:

                  	 
      

          

        

      

    

    

    Signature
Page—Common Stock Warrant

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    FORM
OF SUBSCRIPTION

     

    (To be
signed only upon exercise of Warrant)

     

    To:         Ventrus
Biosciences, Inc.

     

    The
undersigned, the holder of the attached Common Stock Warrant, hereby elects to
exercise the purchase right represented by such Warrant for, and to purchase
thereunder,                                    
shares of Common Stock of Ventrus Biosciences, Inc. and such holder herewith
makes payment of $_________ therefor.

     

    The
undersigned requests that certificates for such shares be issued in the name of,
and delivered
to: ____________________________________________________________________________________________
whose
address
is: ____________________________________________________________.

     

    DATED:  _______________________

    

    
      
        
          
            
              	 
      	
                        

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

                    
	 
      	 
      
	 
      	
                      Name: 

                    	 
      
	 
      	 
      	 
      
	 
      	
                      Title:

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