Document:

Exhibit 4.2

    
      

    

    Exhibit
      4.2

     

    FORM
      OF

    

    SUBSCRIPTION
      AGREEMENT

    

    RICK’S
      CABARET INTERNATIONAL, INC.

    

    

    

    Rick's
      Cabaret
      International, Inc.

    10959
      Cutten Road

    Houston,
      Texas 77066

    

    

    The
      undersigned, ____________ (the "Subscriber"), understands that Rick's
      Cabaret
      International, Inc., a Texas Corporation (the "Company") is offering for sale
      to
      the undersigned ________ shares of Common Stock (ACommon
      Stock@)
      at a
      purchase price of $9.40 per share, for a total aggregate purchase price of
      $__________. The Subscriber acknowledges and understands that the offering
      of
      the Common Stock (the "Offering") is being made without registration of the
      Common Stock under the Securities Act of 1933, as amended (the "Act"), or any
      securities "blue sky" or other similar laws of any state. 

    

    
      	
              1.

            	
              Subscription.
                Subject to the terms and conditions hereof, the Subscriber hereby
                subscribes for and agrees to purchase ________ shares of Common Stock
                for
                the aggregate purchase price of $_____________ upon acceptance of
                this
                Subscription Agreement.

            

    

    

    
      	
              2.

            	
              Payment
                for the Common Stock.
                The undersigned encloses herewith $___________ required to purchase
                the
                Common Stock subscribed for hereunder. If this subscription is not
                accepted by the Company for any reason, all documents will be returned
                to
                the Subscriber.

            

    

    

    
      	
              3.

            	
              Representations
                and Warranties of the Subscriber.
                The Subscriber hereby represents and warrants to and covenants with
                the
                Company, as well as each officer, director and agent of the Company
                as
                follows:

            

    

    

    
      	 	
              (a)

            	
              General

            

    

    

    (i)    The
      Subscriber has all requisite authority to enter into this Subscription Agreement
      and to perform all the obligations required to be performed by the Subscriber
      hereunder.

    

    (ii)   The
      Subscriber is
      the sole party in interest and is not acquiring the Common Stock as an agent
      or
      otherwise for any other person. The Subscriber is a resident of the state set
      forth opposite its name on the signature page hereto and (a) if a corporation,
      partnership, trust or other form of business organization, it has its principal
      office within such state; (b) if an individual, he or she has his or her
      principal residence in such state; and (c) if a corporation, partnership, trust
      or other form of business organization which was organized for the specific
      purpose or acquiring the Common Stock, all of the beneficial owners are
      residents of such state.

    

    (iii)         
      The Subscriber recognizes that the total amount of funds tendered to purchase
      the Common Stock is placed at the risk of the business and may be completely
      lost. The purchase of the Common Stock of the Company as an investment involves
      extreme risk.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (iv)        
      The Subscriber realizes that the Common Stock cannot readily be sold as the
      shares of Common Stock are restricted securities, that it may not be possible
      to
      sell or dispose of the Common Stock and therefore the Common Stock must not
      be
      purchased unless the Subscriber has liquid assets sufficient to assure that
      such
      purchase will cause no undue financial difficulties and the Subscriber can
      provide for current needs and personal contingencies.

    

    (v)   The
      Subscriber
      confirms and represents that it is able (a) to bear the economic risk of its
      investment, (b) to hold the securities for an indefinite period of time, and
      (c)
      to afford a complete loss of its investment. The Subscriber also represents
      that
      it has (x) adequate means of providing for its current needs and personal
      contingencies, and (y) has no need for liquidity in this particular investment.
      

    

    (vi)        
      The Subscriber has not become aware of the offering of Common Stock of the
      Company by any form of general solicitation or advertising, including, but
      not
      limited to advertisements, articles, notices or other communications published
      in any newspaper, magazine or other similar media or broadcast over television
      or radio or any seminar or meeting where those individuals that have attended
      have been invited by any such or similar means of general solicitation or
      advertising.

    

    
      	 	
              (b)

            	
              Information
                Concerning the Company.

            

    

    

    (i)    The
      Subscriber acknowledges that it has received all current information about
      the
      Company including the Company’s (A) Form 10-KSB for the fiscal year ended
      September 30, 2006, (B) Form 10-QSB for the Company's quarters ended December
      31, 2006, June 30, 2006 and March 31, 2006; and (C) Forms 8-K of the Company
      filed February 6, 2007, November 14, 2006, October 12, 2006, August 28, 2006,
      August 10, 2006, July 13, 2006, and July 12, 2006 (“Filed
      Documents”).

    

    (ii)   The
      Subscriber or its representative is familiar with the business and financial
      condition, properties, operations and prospects of the Company, and, at a
      reasonable time prior to the execution of this Subscription Agreement, that
      its
      representative has been afforded the opportunity to ask questions of and receive
      satisfactory answers from the Company's officers and directors, or other persons
      acting on the Company's behalf, concerning the business and financial condition,
      properties, operations and prospects of the Company and concerning the terms
      and
      conditions of the offering of the Common Stock and has asked such questions
      as
      its representative desires to ask and all such questions have been answered
      to
      the full satisfaction of the Subscriber.

    

    (iii)        
      The
      Subscriber has been furnished, has carefully read, and has relied solely (except
      for information obtained pursuant to (iv) below, on the information contained
      in
      the Filed Documents, and Subscriber has not received any other offering
      literature or prospectus, and no verbal or written representations or warranties
      have been made to Subscriber by the Company, or its employees or agents, other
      than the representations of the Company set forth herein and in the Filed
      Documents.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (iv)        
      The
      Subscriber has had an unrestricted opportunity to: (i) obtain additional
      information concerning the offering of Common Stocks, the Common Stock, the
      Company and any other matters relating directly or indirectly to Subscriber’s
      purchase of the Common Stock; and (ii) ask questions of, and receive answers
      from the Company concerning the terms and conditions of the Offering and to
      obtain such additional information as may have been necessary to verify the
      accuracy of the information contained in the Filed Documents.

    

    (v)   The
      Subscriber
      understands that, unless the Subscriber notifies the Company in writing to
      the
      contrary, all the representations and warranties contained in this Subscription
      Agreement will be deemed to have been reaffirmed and confirmed, taking into
      account all information received by the Subscriber.

    

    (vi)         
      The Subscriber understands that the purchase of the Common Stock involves
      various risks, including, but not limited to, those outlined in this
      Subscription Agreement and the Filed Documents.

    

    (vii)        The
      Subscriber acknowledges that no representations or warranties have been made
      to
      the Subscriber by the Company as to the tax consequences of this investment,
      or
      as to profits, losses or cash flow which may be received or sustained as a
      result of this investment.

    

    (viii)       
      All documents, records and books pertaining to a proposed investment in the
      Common Stock which the Subscriber or its representative has requested have
      been
      made available to the Subscriber.

    

    (ix)   The
      Subscriber or
      its representative has been provided access to all information requested in
      evaluating its purchase of the Common Stock. 

    

    
      	 	
              (c)

            	
              Status
                of the Subscriber

            

    

    

    (i)    The
      Subscriber represents that the Subscriber is an Accredited Investor as that
      term
      is defined pursuant to Section 501 of Regulation D under the Act. 

    

    (ii)   The
      Subscriber agrees to furnish any additional information requested to assure
      compliance with applicable Federal and state securities laws in connection
      with
      the purchase and sale of the Common Stock.

    

    
      	 	
              (d)

            	
              Restrictions
                on Transfer or Sale of the Common
                Stock

            

    

    

    (i)    The
      Subscriber is acquiring the Common Stock subscribed solely for the Subscriber's
      own beneficial account, for investment purposes, and not with view to, or for
      resale in connection with, any distribution of the Common Stock. The Subscriber
      understands that the offer and the sale of the Common Stock has not been
      registered under the Act or any state securities laws by reason of specific
      exemptions under the provisions thereof which depend in part upon the investment
      intent of the Subscriber and of the other representations made by the Subscriber
      in this Subscription Agreement. The Subscriber understands that the Company
      is
      relying upon the representations, covenants and agreements contained in this
      Subscription Agreement (and any supplemental information) for the purposes
      of
      determining whether this transaction meets the requirements for such
      exemptions.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (ii)   The
      Subscriber
      understands that the shares of Common Stock are "restricted securities" under
      applicable federal securities laws and that the Act and the rules of the
      Securities and Exchange Commission (the "Commission") provide in substance
      that
      the Subscriber may dispose of the Common Stock only pursuant to an effective
      registration statement under the Act or an exemption therefrom. The certificates
      evidencing the shares of Common stock offered hereby will bear a legend which
      clearly sets forth this restriction. The Subscriber understands that the
      Subscriber may not at any time demand the purchase by the Company of the
      Subscriber's Common Stock.

    

    (iii)         
      The Subscriber agrees: (A) that the Subscriber will not sell, assign, pledge,
      give, transfer or otherwise dispose of the Common Stock or any interest therein,
      or make any offer or attempt to do any of the foregoing, except pursuant to
      a
      registration of the Common Stock under the Act and all applicable state
      securities laws or in a transaction which is exempt from the registration
      provisions of the Act and all applicable state securities laws; (B) that the
      Company and any transfer agent for the Common Stock shall not be required to
      give effect to any purported transfer of any of the Common Stock except upon
      compliance with the foregoing restrictions; and (C) that a restrictive legend
      will be placed on the certificates representing the Common Stock.

    

    (iv)        
      The Subscriber has not offered or sold any portion of the subscribed for Common
      Stock and has no present intention of dividing such Common Stock with others
      or
      of reselling or otherwise disposing of any portion of such Common Stock either
      currently or after the passage of a fixed or determinable period of time or
      upon
      the occurrence or nonoccurrence of any predetermined event or
      circumstance.

    

    
      	4.	
              Registration
                Rights.
                The Company shall prepare and file with the Commission a registration
                statement covering the shares of Common Stock purchased hereby within
                thirty (30) days after the closing of this transaction(the “Registration
                Statement”). The Registration Statement shall be on Form SB-2 or Form S-3,
                or such other appropriate form. The Company shall use its best efforts
                to
                cause the Registration Statement to be declared effective by the
                Commission and shall use its best efforts to keep the Registration
                Statement continuously effective under the Securities Act until the
                second
                anniversary of the Effective Date or such earlier date when all shares
                covered by the Registration Statement have been sold publicly (the
                “Effectiveness
                Period”).

            

    

     

    
      	
              5.

            	
              Survival
                and Indemnification.
                All representations, warranties and covenants contained in this Agreement
                and the indemnification contained in this Paragraph 5 shall survive
                (i)
                the acceptance of the Subscription Agreement by the Company and (ii)
                the
                death or disability of the Subscriber. The Subscriber acknowledges
                the
                meaning and legal consequences of the representations, warranties
                and
                covenants in Paragraph 3 hereof and that the Company has relied upon
                such
                representations, warranties and covenants in determining the Subscriber's
                qualification and suitability to purchase the Common Stock. The Subscriber
                hereby agrees to indemnify, defend and hold harmless the Company,
                and its
                officers, directors, employees, agents and controlling persons, from
                and
                against any and all losses, claims, damages, liabilities, expenses
                (including attorneys' fees and disbursements), judgment or amounts
                paid in
                settlement of actions arising out of or resulting from the untruth
                of any
                representation herein or the breach of any warranty or covenant herein.
                Notwithstanding the foregoing, however, no representation, warranty,
                covenant or acknowledgment made herein by the Subscriber shall in
                any
                manner be deemed to constitute a waiver of any rights granted to
                it under
                the federal securities or state securities
                laws.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              6.

            	
              Notices.
                All notices and other communications provided for herein shall be
                in
                writing and shall be deemed to have been duly given if delivered
                personally or sent by registered or certified mail, return receipt
                requested, postage prepaid, or overnight air courier guaranteeing
                next day
                delivery:

            

    

    

    
      	 	
              (a)

            	
              if
                to the Company, to it at the following
                address:

            

    

    

    RICK'S
      CABARET
      INTERNATIONAL, INC.

    10959
      Cutten Road

    Houston,
      Texas 77066

    Attn:
      Eric Langan

    

    Telephone
      No. (281) 397 6730

    Facsimile
      No: (281) 397 6765

    

    
      	 	
              (b)

            	
              if
                to the Subscriber, at the address set forth on the first page hereof
                or
                directly to the Subscriber at the address set forth on the signature
                page
                hereto, or at such other address as either party shall have specified
                by
                notice in writing to the other.

            

    

    

    All
      notice and communications shall be deemed to have been duly given: at the time
      delivered by hand, if personally delivered; two days after being deposited
      in
      the mail, postage prepaid, if mailed; and the next day after timely delivery
      to
      the courier, if sent by overnight air courier guaranteeing next day
      delivery.

    

    If
      a
      notice or communication is mailed in the manner provided above within the time
      prescribed, it is duly given, whether or not the addressee receives
      it.

    

    
      	
              7.

            	
              Assignability.
                This Subscription Agreement is not assignable by the Subscriber,
                and may
                not be modified, waived or terminated except by an instrument in
                writing
                signed by each of the parties
                hereto.

            

    

    

    
      	
              8.

            	
              Binding
                Effect.
                Except as otherwise provided herein, this Subscription Agreement
                shall be
                binding upon and inure to the benefit of the parties and their heirs,
                executors, administrators, successors, legal representatives and
                assigns,
                and the agreements, representations, warranties and acknowledgments
                contained herein shall be deemed to be made by and be binding upon
                such
                heirs, executors, administrators, successors, legal representatives
                and
                assigns. If the Subscriber is more than one person, the obligation
                of the
                Subscriber shall be joint and several and the agreements, representations,
                warranties and acknowledgments contained herein shall be deemed to
                be made
                by and be binding upon each such person and his heirs, executors,
                administrators and successors.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              9.

            	
              Entire
                Agreement.
                This Subscription Agreement constitutes the entire agreement of the
                Subscriber and the Company relating to the matters contained herein,
                superseding all prior contracts or agreements, whether oral or
                written.

            

    

    

    
      	
              10.

            	
              Governing
                Law.
                This Subscription Agreement shall be governed and controlled as to
                the
                validity, enforcement, interpretations, construction and effect and
                in all
                other aspects by the substantive laws of the State of Texas. In any
                action
                between or among any of the parties, whether arising out of this
                Agreement
                or otherwise, each of the parties irrevocably consents to the exclusive
                jurisdiction and venue of the federal and state courts located in
                Harris
                County, Texas.

            

    

    

    
      	
              11.

            	
              Severability.
                If any provision of this Subscription Agreement or the application
                thereof
                to any Subscriber or circumstance shall be held invalid or unenforceable
                to any extent, the remainder of this Subscription Agreement and the
                application of such provision to other subscriptions or circumstances
                shall not be affected thereby and shall be enforced to the greatest
                extent
                permitted by law.

            

    

    

    
      	
              12.

            	
              Headings.
                The headings in this Subscription Agreement are inserted for convenience
                and identification only and are not intended to describe, interpret,
                define, or limit the scope, extent or intent of this Subscription
                Agreement or any provision hereof.

            

    

    

    
      	
              13.

            	
              Amount
                of Common Stock Subscribed For.
                The Subscriber hereby subscribes to purchase _________ shares of
                Common
                Stock of the Company at $9.40 per share for a total consideration
                of
                $____________. 

            

    

    

    
      	
              14.

            	
              Counterparts
                and Facsimiles.
                This Subscription Agreement may be executed in multiple counterparts
                and
                in any number of counterparts, each of which shall be deemed an original
                but all of which taken together shall constitute and be deemed to
                be one
                and the same instrument and each of which shall be considered and
                deemed
                an original for all purposes. This Agreement shall be effective with
                the
                facsimile signature of any of the parties set forth below and the
                facsimile signature shall be deemed as an original signature for
                all
                purposes and the Agreement shall be deemed as an original for all
                purposes.

            

    

     

    [SIGNATURES
      APPEAR ON THE FOLLOWING PAGE.]

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned Subscriber has executed this Subscription
      Agreement this ____ day of March, 2007.

    

     

    
      	 	 	    
	 	 
	 	 	
              Signature
                of Investor

            	 	 
	 	 	 	 	 	 
	 	 	    
	 	 
	 	 	
              Name
                (Please type or print)

            	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	
              Signature
                of Spouse or Co-Owner if funds are to be invested as joint tenants
                by the
                entirety or community property.

            	 
	 	 	 	 	 	 
	 	 	    
	 
	 	 	
              Name
                (Please type or print)

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	    
	 
	 	 	
              Street
                Address

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	    
	   
	   
	 
	 	 	
              City

            	
              State

            	
              Zip

            	 

    

     

    
      

      

    

    ACCEPTED
      by the Company this the ____ day of _______________, 2007. 

    

    Rick’s
      Cabaret International, Inc.

    

    

    
      	
              By:

            	
               
                

            	 
	 	
              Eric
                Langan, President

            	 

    

     

     

     7Exhibit
      10.1

    

    

    AMENDMENT
      NO. 1 TO REGISTRATION RIGHTS AGREEMENT

    

    

    This
      AMENDMENT
      NO. 1 TO REGSITRATION RIGHTS AGREEMENT (this
      “Amendment”)
      dated
      May 14, 2007 and effective as of April 30, 2007, is entered into by and among
      Alteon Inc., a Delaware corporation (the “Company”),
      and
      the purchasers (the “Purchasers”)
      identified on the signature pages to that certain Registration Rights Agreement
      dated as of January 11, 2007 (the “Registration
      Rights Agreement”).
      

    

    WHEREAS,
      in connection with the execution and delivery of that certain Note and Warrant
      Purchase Agreement, dated as of January 11, 2007, by and among the Company
      and
      the Purchasers, the Company issued and sold to the Purchasers (i) an aggregate
      of $3,000,000 of its Senior Convertible Secured Promissory Notes (the
“Notes”),
      each
      dated January 11, 2007, and (ii) warrants (the “Warrants”),
      each
      dated January 11, 2007, to purchase and aggregate of 25,734,453 shares of the
      common stock, $0.01 par value per share (the “Common
      Stock”)
      of the
      Company, and the Company granted the Purchasers certain registration rights
      with
      respect to the Common Stock issuable upon conversion of the Notes and exercise
      of the Warrants pursuant to the Registration Rights Agreement, and 

    

    WHEREAS,
      in accordance with Section 6(g) of the Registration Rights Agreement, the
      Company and the Purchasers desire to amend the Registration Rights Agreement
      as
      set forth herein.

    

    NOW
      THEREFORE, in consideration of the mutual covenants contained herein, and for
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the Company and each of the Purchasers agree as follows:

    

    1.  Amendment
      to Registration Rights Agreement.
      The
      definition of Filing Date is hereby deleted in its entirety and replaced with
      the following:

     

    “Filing
      Date”
means,
      with respect to the initial Registration Statement required hereunder, June
      15,
      2007, with respect to any additional Registration Statements which may be
      required pursuant to Section 3(c), the 30th
      day
      following the date on which the Company first knows, or reasonably should have
      known that such additional Registration Statement is required
      hereunder.

     

    2.  Ratification.
      The
      parties hereby ratify and confirm in all respects the Registration Rights
      Agreement, as amended by this Amendment.

     

    3.  Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of the Registration Rights Agreement shall be governed by and construed and
      enforced in accordance with the internal laws of the State of New York, without
      regard to the principles of conflicts of law thereof. 

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    4.  Other
      Matters.
      The
      Company hereby acknowledges and agrees that the execution and delivery by the
      Purchasers of this Amendment shall not be deemed to create a course of dealing
      or otherwise obligate the Purchasers to execute similar extensions, amendments
      or waivers under the same or similar circumstances in the future.

     

    5.  Execution.
      This
      Amendment may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission or by e-mail delivery of a “.pdf” format data file, such signature
      shall create a valid and binding obligation of the party executing (or on whose
      behalf such signature is executed) with the same force and effect as if such
      facsimile or “.pdf” signature page were an original thereof.

     

    

     

    [remainder
      left intentionally blank]

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the undersigned hereby executes this Amendment No. 1 as of
      the
      date first set forth above..

     

    

    
      	
              ALTEON
                INC.

               

               

            	
              Address
                for Notice:

            
	
              By:/s/
                Noah
                Berkowitz                                                   

              Name:
                Noah Berkowitz

              Title:
                President

               

            	
              221
                West Grand Avenue

              Montvale,
                NJ 07645

            
	
              With
                a copy to (which shall not constitute notice):

               

              Mintz
                Levin Cohn Ferris Glovsky and Popeo, P.C.

              One
                Financial Center

              Boston,
                MA 02111

              Attn:
                William T. Whelan, Esq.

            	 

    

    

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE FOR PURCHASER FOLLOWS]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the undersigned hereby executes this Amendment No. 1 as of
      the
      date first set forth above. 

    

    
      	
              THE
                PURCHASERS:

               

              BAKER/TISCH
                INVESTMENTS, L.P.

              By:   Baker/Tisch
                Capital, L.P.,

                  
    its
                general partner

              By:   Baker/Tisch
                Capital (GP), LLC,

                  
    its
                general partner

               

              By:   /s/
                Felix
                Baker                             
                  

              Name:
                Felix Baker, Ph.D.

              Title:
                Managing Member

               

              BAKER
                BIOTECH FUND I, L.P.

              By:   Baker
                Biotech Capital, L.P., 

                  
    its
                general partner

              By:   Baker
                Biotech Capital (GP), LLC,

                  
    its
                general partner

               

              By:         
                /s/
                Felix
                Baker                                

              Name:
                Felix Baker, Ph.D.

              Title:
                Managing Member

               

              Baker
                Brothers Life Sciences, L.P.

              By:   Baker
                Brothers Life Sciences Capital, L.P.

                  
    its
                general partner

              By:   Baker
                Brothers Life Sciences Capital (GP), LLC 

                  
    is
                general partner

               

              By:   /s/
                Felix
                Baker                               
                

                 
    Name:
                Felix Baker, Ph.D.

                  
    Title:
                Managing Member

               

              14159,
                L.P.

              By:   14159
                Capital, L.P., 

                  
    its
                general partner

              By:   14159
                Capital (GP), LLC, 

                  
    is
                general partner

               

              By:   /s/
                Felix
                Baker                               
                

                  
    Name:
                Felix Baker, Ph.D.

                  
    Title:
                Managing Member

            	
               

               

              Address
                for Notice:

              667
                Madison Avenue

              17th
                Floor

              New
                York, NY 10021

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