Document:

Exhibit
10.2

    

    ASSIGNMENT
AND ASSUMPTION AGREEMENT

    

    This
ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”) dated as of August 2,
2007 (the “Effective Date”), is entered into between Paramount Biosciences, LLC,
a New York limited liability company (“Seller”), with a place of business at 787
7th Avenue, 48th Floor, New York, NY 10019, and Ventrus Biosciences, Inc., a
Delaware corporation (“Buyer”), with a place of business at 8400 E. Crescent
Pkwy, Suite 600, Greenwood Village, CO 80111. The parties hereby agree as
follows:

    

    1.           Assignment and
Assumption.  As of the Effective Date, Seller hereby
irrevocably and unconditionally sells, assigns and transfers to Buyer (a) all of
Seller’s right, title and interest in, and all of Seller’s liabilities,
obligations and restrictions under, the Exclusive License Agreement, dated as of
March 23, 2007, between S.L.A. Pharma AG and Seller (the “Assigned Agreement”),
(b) all discoveries, inventions, data, compilations, formulae, models,
procedures, processes, projections, protocols, results of experimentation and
testing, specifications, strategies, techniques, and other information and
technology generated by or on behalf of Seller relating to the subject matter of
the Assigned Agreement, and (c) all intellectual property rights in or to the
foregoing (collectively, the “Assigned Property”).  Buyer hereby
purchases and accepts the Assigned Property, and assumes and agrees to
discharge, perform and observe all the liabilities, obligations and restrictions
under the Assigned Agreement.

    

    2.           Consideration.  Buyer
shall pay to Seller an amount equal to the aggregate costs and expenses incurred
or accrued by Seller to obtain, generate or perfect its right, title and
interest in and to the Assigned Property, as set forth on Exhibit A
hereto.

    

    3.           Deliverables.  Seller
shall deliver to Buyer all tangible property related to the Assigned
Property.

    

    4.           Further
Assurances.  Upon Buyer’s reasonable request, Seller promptly
shall take such actions (including, without limitation, the prompt execution and
delivery of documents in recordable form) as may be reasonably necessary to
vest, secure, perfect, protect or enforce the right, title and interest of Buyer
in and to the Assigned Property.  If Buyer is unable, after reasonable
notice to Seller, for any reason whatsoever, to secure Seller’s signature to any
document which Seller is required to execute pursuant to this Section 4, Seller
hereby irrevocably designates and appoints Buyer and its duly authorized
officers and agents as Seller’s agents and attorneys-in-fact, to act for and on
its behalf and instead of Seller, to execute and file any such documents and to
do all other lawfully permitted acts to further the purposes of this Section 4
with the same legal force and effect as if executed by Seller.

    

    5.           Miscellaneous.

    

    (a)           No Other
Amendments.  Except as expressly set forth herein, the Assigned
Agreement remains in full force and effect in accordance with its terms and
nothing contained herein shall be deemed to be a waiver, amendment, modification
or other change of any term, condition or provision of the Assigned
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     Exhibit
10.2

    

    (b)         No Third Party
Beneficiaries.  This Agreement is for the sole and exclusive
benefit of the parties hereto and their respective successors and permitted
assigns and nothing herein is intended or shall be construed to confer upon any
person other than the parties hereto and their respective successors and
permitted assigns any rights, remedies or claims under, or by any reason of,
this Agreement or any term, covenant or condition hereof.

    

    (c)         Binding
Effect.  This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors and
assigns.

    

    (d)         Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to the
conflicts of law principles thereof.

    

    (e)         Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

    

    [Signature
page follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     Exhibit
10.2

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Effective
Date.

    

    
      
        
          	
                  PARAMOUNT
      BIOSCIENCES, LLC

                	 
      	
                  VENTRUS
      BIOSCIENCES, INC.

                
	 
      	 
      	 
      	 
      	 
      
	
                  By:

                	
                  /s/ Lindsay A. Rosenwald

                	 
      	
                  By:

                	
                  /s/ Thomas Rowland

                
	 
      	 
      	 
      	 
      	 
      
	
                  Name: 

                	
                  Lindsay
      A. Rosenwald, M.D.

                	 
      	
                  Name: 

                	
                  Thomas
      Rowland, Ph.D.

                
	 
      	 
      	 
      	 
      	 
      
	
                  Title:

                	
                  Sole
      Member

                	 
      	
                  Title:

                	
                  President
      & CEO

                

        

      

    

    

    
      
        
          	 
      	
                  Legal
      Approval

                	 
      
	
                  Initial: 

                	
                  MHD

                	 
      
	
                  Date:

                	 
      	 
      

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.2

    

    EXHIBIT
A

    

    Consideration

    

    
      
        
          
            
              	 
      	
                      Payee

                    	
                      Date
      Paid

                    	 	
                      Amount

                    	 
	 
      	 
      	 
      	 	 	 
	
                      PBS

                    	
                      Paid
      by PBS-SLA

                    	
                      4/1/2007

                    	 	 	258,000.00	 
	
                      PBS

                    	
                      Paid
      by PBS-SLA

                    	
                      5/4/2007

                    	 	 	116,476.00	 
	
                      PBS

                    	
                      Paid
      by PBS-SLA

                    	
                      5/31/2007

                    	 	 	204,078.00	 
	
                      PBS

                    	
                      Paid
      by PBS-SLA

                    	
                      6/29/2007

                    	 	 	231,032.00	 
	
                      PBS

                    	
                      Paid
      by PBS-SLA

                    	
                      7/30/2007

                    	 	 	278,290.00	 
	 
      	 
      	 
      	 	 	 	 
	 
      	
                      Total

                    	 
      	 	$	1,087,876.00Exhibit
10.3

    Portions
of this exhibit marked [*]

    are
requested to be treated confidentially.

    EXECUTION
COPY

    

    LICENSE
AGREEMENT

    

    THIS
LICENSE AGREEMENT is entered into as of the 10th day of
March, 2008 (the “Effective Date”) between and among Sam Amer
& Co, Inc., a California company, having its principal place of
business at P.O. Box 5685, Montecito, CA 93150 (“Sam Amer”), Ventrus
Biosciences, Inc., a Delaware corporation, having a place of business at
8400 E Crescent Pkwy, Suite 600, Greenwood Village, CO 80111 (“Licensee”) and Paramount
BioSciences, a New York limited liability company, having a place of business at
787 Seventh Avenue, 48th Floor, New York, NY 10019 (“Guarantor”). Sam Amer and
Licensee may be referred to herein individually as a “Party” and collectively as the
“Parties”.

    

    RECITALS

    

    Sam Amer
owns or controls the rights to a patented, proprietary drug product, more
particularly described hereafter as “Iferanserin”;

    

    Licensee
desires to exclusively license certain rights to utilize Iferanserin to deliver
a rectal ointment compound for the treatment of hemorrhoids in humans, and Sam
Amer desires to grant such license pursuant to the terms and conditions of this
Agreement.

    

    NOW, THEREFORE, in
consideration of the foregoing and the premises and covenants hereafter recited,
theParties, intending to be legally bound, agree as follows:

    

    1.  DEFINITIONS. As
used in this Agreement, each of the following terms shall have the meanings as
set forth below:

    

    “Acceptable FDA Response”
means that, after submission of a request for an SPA by Licensee, the final
protocol accepted by FDA is within 150% (One Hundred Fifty Percent) of the
expected study protocol cost set forth in the initially submitted SPA to FDA.
For clarification purposes, to establish the expected study protocol cost,
Ventrus will select a Clinical Research Organization (CRO) using JDC (as defined
below) input for a quote on the Phase III trial(s) and based on the initially
submitted SPA protocol. Once the final FDA accepted protocol is received, it
shall be submitted to the same CRO for a follow-up quote. As long as that quote
is less than 150% (One Hundred Fifty Percent) of the original quote, the FDA
response shall be considered acceptable and the Phase III trial(s) shall
proceed.

    

    “Affiliate” means, with
respect to a Party, any Person that, directly or indirectly, whether through one
or more intermediaries, controls, is controlled by, or is under common control
with such Party, where “control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management or the policies
of a Person, whether through ownership of voting securities or by agreement or
otherwise, but only for so long as such Person meets these
requirements.

    

    “Agreement” means this
Agreement, schedules, exhibits and/or attachments to this
Agreement.

    

    “Applicable Authority” means
any governmental authority, agency or other governmental body of a country in
the Territory responsible for administering Applicable Laws relating to the
Licensed Product in the Field of Use. An example, and not in limitation of the
foregoing, is the FDA in the United States.

    

    “Applicable Laws” means all
federal, state, and local laws, rules and regulations of a country in the
Territory applicable to (i) the development, Commercialization, manufacture,
sale, use, marketing, distribution and importation of the Licensed Products
(including without limitation the United States Food, Drug and Cosmetics Act and
all applicable rules and regulations of the FDA related thereto), or (ii) the
performance of either Party’s obligations under this Agreement.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    “Calendar Quarter” means each
calendar quarter ending on March 31, June 30, September 30, or December
31.

     

    “Calendar Year” means the
twelve-month period ending on December 31.

    

    “Commercialization” (and its
correlative term, “Commercialize”) shall have the meaning set forth in Section 4.1.

    

    “Commercial Launch” means the
First Commercial Sale of such Licensed Product.

    

    “Commercially Reasonable
Efforts” means such efforts which are commensurate with the efforts that,
applying customary pharmaceutical company practice, a pharmaceutical company of
equivalent capitalization would expend or has expended with respect to a product
at a similar stage taking into account its safety and efficacy, the cost to
develop and commercialize the product, the establishment of the product in the
marketplace, the competitiveness of the marketplace, the patent and other
proprietary position of the product, the regulatory structure involved and
likelihood of obtaining Regulatory Approval, the profitability of the product
and all other relevant factors. These efforts shall be made irrespective of the
product’s position in Licensee’s product or pipeline portfolio.

    

    “Confidential Information”
means, with respect to each Party, any non-public proprietary data or
information which belongs in whole or in part to such Party and/or information
designated as Confidential Information of such Party hereunder.

    

    “Development Costs” means the
costs incurred in development of the Licensed Product(s).

    

    “Data” shall mean any and all
results, studies and information, including test results (including but not
limited to pre-clinical and patient tests), and developmental, manufacturing and
pharmaceutical information, whether or not proprietary, and any related
technical data or operating information with respect to any of the foregoing,
generated by or resulting or derived from the efforts or obligations of either
Sam Amer or Licensee as set forth herein and as solely and directly related to
Iferanserin. Licensee will provide Data to Sam Amer upon request and no more
than two (2) times per calendar year and all such Data shall be deemed to be
Confidential Information.

    

    “Ex-U.S. Gross Sales” means
invoiced sales to or by Third Parties outside the United States (“ex-U.S.”), as
to which Licensee or its Third Party Sublicensee has received payment, for each
applicable period.

    

    “Effective Date” means with
respect to the Licensed Product, the date as set forth in the
Preamble.

    

    “FDA” means the United States
Food and Drug Administration, or any successor agency thereto.

    

    “Field of Use” means the field
consisting of the topical treatment of any anorectal disorders in
humans.

    

    “First Commercial Sale” means
the first sale of a Licensed Product by or on behalf of Licensee to a Third
Party in the United States or any other country in the Territory after such
Licensed Product has been granted Regulatory Approval (including marketing
authorization). First Commercial Sale shall not include any sales or other
distribution for use in clinical trials.

    

    “GAAP” means United States
Generally Accepted Accounting Principles, applied consistently with past
practices.

    

    “Iferanserin” means the
serotonin (5-HT2) receptor antagonist S-MPEC (iferanserin (INN) = (E)-2’-{2-
[(2S)-l-methyl-2-piperidyl]ethyl}cinnamanilide serotonin receptor antagonist
C23H28N2O, CAS
58754-46- 4). The definition includes all its various chemical forms, including
derivatives acids, bases, esters, salts, isomers, enantiomers, pro-drug forms,
metabolites, hydrates, solvates, polymorphs and degradants thereof in crystal,
powder or other form and improvements, including new formulations and
combinations and in addition, any back-up compounds to be provided by Sam
Amer.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Improvements” means any
improvement, modification, or variation of the inventions, methods, apparatuses,
or technology (each whether patentable or not) claimed or described in the Sam
Amer Patents, and relating to Iferanserin including all patent applications and
patents resulting there from.

    

    “Intellectual Property Rights”
means all intellectual property rights throughout the world, whether existing
now or in the future, including without limitation: (a) all patent rights and
other rights in inventions and ornamental designs; (b) all copyrights and other
rights in works of authorship, software, mask works, databases, compilations,
and collections of information; (c) all rights in trademarks, service marks, and
other proprietary trade designations; and (d) all rights in know-how and trade
secrets.

    

    “Joint Commercialization
Committee” or “JCC” shall have the meaning
set forth in Section
4.2.1.

    

    “Joint Development Committee”
or “JDC” shall have the
meaning set forth in Section
3.2.1.

    

    “Know-How” means with respect
to Iferanserin, any and all Sam Amer Improvements, technical information,
know-how, processes, procedures, devices, methods, protocols, techniques,
designs, drawings, algorithms, schematics, trade secrets, technical information
and specifications owned or controlled by Sam Amer (not including Licensee
Improvements), relating to and embodying Sam Amer’s experience in the
manufacture, processing, formulation and quality control for the Iferanserin,
together with any additions, alterations, modifications, Sam Amer Improvements,
design changes or other improvements thereto created by or for Sam Amer or
licensed to Sam Amer, whether or not patentable. Without limiting the foregoing,
the Sam Amer Know-How shall include the technical information in all current
patent applications, manuals, formulae, batch records, specifications, test data
and procedures, methods, processes, apparatus plans, drawings and designs owned
or controlled by Sam Amer to Licensee during the term of this Agreement, whether
contained in documentary form or electronic media, communicated orally, or by
giving access to facilities at which the Sam Amer Know-How is practiced;
provided, however that the Sam Amer Know-How shall not include any information
of Third Parties which is subject to confidentiality or non-disclosure
obligations between Sam Amer and such Third Parties.

    

    “Know-How License” shall mean
the Licensed Know-How and Intellectual Property Rights embodied
therein.

    

    “Knowledge” means the actual
knowledge of the management personnel of a Party.

    

    “Licensee Intellectual
Property” means any Patent or technology or Improvement discovered or
reduced to practice by Licensee that embody inventions arising under this
Agreement invented solely by Licensee that would be infringed by an unlicensed
Third Party’s manufacture, use, sale, importation, development or
commercialization of a Licensed Product.

    

    “Licensed Know-How” means the
Sam Amer Know-How.

    

    “Licensed Patents” means the
Sam Amer Patents, together with all Patents resulting from the Sam Amer
Improvements.

    

    “Licensed Product(s)” means
collectively, (i) a product containing Iferanserin as an active ingredient, and
(ii) any additional licensed products as agreed to by the Parties from time to
time.

    

    “License Fees” shall have the
meaning set forth in Section
6.1.

    

    “Net Sales” means, with
respect to sales of Licensed Products by Licensee or a Third Party Sublicensee
within the United States, the gross sales to Third Parties (“Gross Sales”), less
only the following documented expenses (such deductible expenses referred to
herein as “Permitted
Deductions”):

    

    
      	
               
      

            	
              (i)

            	
              credits
      or allowances actually granted for damaged products, returns or rejections
      of product;

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              governmental
      and other rebates (or equivalents thereof, including chargebacks) granted
      to managed health care organizations, pharmacy benefit managers (or
      equivalents thereof), federal, state/provincial, local and other
      governments, their agencies and purchasers and
  reimbursers;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              normal
      and customary trade, cash and quantity discounts, allowances and credits
      actually allowed or paid;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              chargebacks;

            

    

    

    
      	
               
      

            	
              (v)

            	
              discounts,
      allowances, and credits actually allowed or paid for wholesaler fee for
      service agreements or inventory management
  agreements;

            

    

    

    
      	
               
      

            	
              (vi)

            	
              transportation
      costs, including insurance, for outbound freight related to delivery of
      the product to the extent included in the gross amount
      invoiced;

            

    

    

    
      	
               
      

            	
              (vii)

            	
              monies
      actually paid for product liability insurance specific to Iferanserin;
      and

            

    

    

    
      	
               
      

            	
              (viii)

            	
              Cost
      of goods sold, which shall mean the direct, incremental costs incurred by
      Licensee in manufacturing or purchasing Licensed Products, sales taxes,
      VAT taxes and other taxes directly linked to the sales of products to the
      extent included in the gross amount
invoiced.

            

    

    

    Rebate
reductions (item (ii) above) to Gross Sales shall not exceed twenty percent
(20%) of Gross Sales. The maximum total reduction to Net Sales from all items
listed above shall not exceed thirty percent (30%) of Gross Sales.

    

    Permitted
Deductions shall not include any development, research, formulation, marketing,
or promotional expenses expended by Licensee. The Permitted Deductions shall be
verified by reference to the books and records of Licensee maintained in
accordance with GAAP. Net Sales shall not include sales between or among
Licensee and Licensee Affiliates. Licensed Products shall be deemed sold when
accounted for as a sale in the books and records of Licensee in accordance with
GAAP.

    

    If
Permitted Deductions for a calendar quarter (a “Prior Quarter”) are not known
to Licensee or its Third Party Sublicensee until the next calendar quarter (a
“Subsequent Quarter”),
then Licensee or its Third Party Sublicensee may credit the amount of Permitted
Deductions for the Prior Quarter against Net Sales computed for purposes of
determining the royalties due to Licensor in the Subsequent
Quarter.

    

    “Patent(s)” means any and all
(a) U.S. or foreign patents, (b) U.S. or foreign patent applications, including,
without limitation, all provisional applications, substitutions, continuations,
continuations-in-part, divisions, renewals, and all patents granted thereon, (c)
all U.S. or foreign patents-of-addition, reissues, reexaminations and extensions
or restorations by existing or future extension or restoration mechanisms,
including, without limitation, supplementary protection certificates or the
equivalent thereof, and (d) any other form of government-issued right
substantially similar to any of the foregoing.

    

    “Patent License” shall mean
the Licensed Patents and the Intellectual Property Rights embodied
therein.

    

    “Permitted Deductions” shall
have the meaning set forth in the definition of Net Sales.

    

    “Person” means any individual,
corporation, partnership, firm, limited liability company, trust, or other
organization or entity.

    

    “Product License(s)” shall
have the meaning set forth in Section 2.1
below.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    “Reduced Royalty Period” shall
mean, with respect to any particular Licensed Product in any particular country
in the Territory, the period of time beginning on the date of expiration of the
last to expire of any Valid Claim included in the Patent License in such country
which would be infringed but for the license granted hereunder and extending so
long as Licensee is engaged in sales of Licensed Product in such
country.

    

    “Regulatory Approval” means
(a) in the United States, approval by the FDA of a New Drug Application (“NDA”), Abbreviated New Drug
Application (“ANDA”) or
similar application, for marketing approval, together with satisfaction of any
related applicable FDA registration and notification requirements necessary to
permit the sale of Licensed Products commercially in the United States in
accordance with Applicable Laws, and (b) in any country other than the United
States, approval by Applicable Authorities having jurisdiction over such country
of a single application or set of applications comparable to a NDA or ANDA,
together with satisfaction of any related applicable regulatory and notification
requirements and other approvals required under the Applicable Laws, including,
without limitation, approvals necessary to permit the manufacture and sale of
the Licensed Products commercially in such country.

    

    “Royalty Rate” means the
percent (%), specified in this Agreement and subject to adjustment as set forth
in this Agreement.

    

    “Royalty Period” means with
respect to any particular Licensed Product in any particular country in the
Territory, the period of time beginning on the First Commercial Sale of such
Licensed Product in such country and extending until the date of expiration of
the last to expire of any Valid Claim included in the Patent License in such
country which would be infringed but for the license granted
hereunder.

    

    “Sam Amer Confidential Technical
Information” means and includes all technical information of Sam Amer
(not including Licensee Improvements) relating to the Sam Amer Patents and/or
Iferanserin, including, without limitation, the Sam Amer Know-How, and all
technology, intellectual property, mechanisms, technical drawings, algorithms,
research, techniques, chemical formulations, recipes, batch records,
architecture, know-how, formulas, processes, ideas, inventions (whether or not
patentable), Sam Amer Improvements, schematics and other similar technical
information, including the manner in which any such information may derive or be
combined with other information, or synthesized, or used by Sam Amer, regardless
of whether (i) disclosed to Licensee orally, in writing, electronically or
visually after the Effective Date of this Agreement or in connection with the
Mutual Confidentiality Agreements dated June 24, 2005 and June 6, 2006, or (ii)
such information is marked or designated as “confidential” or
“proprietary.”

    

    “Sam Amer Improvement(s)”
means Improvements inside the Field of Use conceived, made, reduced to practice,
invented or developed by or on behalf of Sam Amer or owned or controlled by Sam
Amer during the term of this Agreement.

    

    “Sam Amer Know-How” means
Know-How and Sam Amer Confidential Technical Information.

    

    “Sam Amer Patents” means the
(i) Patents listed on Schedule
A, and (ii) any Patents relating to Iferanserin owned or controlled by
Sam Amer after the Effective Date during the term of this Agreement which are
necessary or useful within the Field of Use.

    

    “SPA” means Special Protocol
Assessment by the FDA.

    

    “Successful Completion of Phase III
Trials” means that the Licensed Product achieved a statistically
significant improvement of the primary endpoint with a p-level of less than or
equal to 0.05, as defined in a protocol for such trial to be designed by the
Licensee and the JDC, and no safety issues arose that would inhibit filing of
the NDA.

    

    “Territory” means all
countries of the world.

    

    “Third Party” means any Person
that is not a Party or an Affiliate of a Party.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    “Trademark” means any means
any U.S. or foreign trademark, brand, logo, trade dress or design, whether
registered or unregistered, owned by or registered to Licensee.

    

    “Valid Claim” means any claim
of an unexpired Patent included in the Licensed Patents or Sam Amer Improvements
that (i) has not been held unenforceable, unpatentable or invalid by a final
decision of a court or other governmental agency of competent jurisdiction
following exhaustion of all possible appeal processes, (ii) has not been
admitted to be invalid or unenforceable through reissue, reexamination or
disclaimer and (iii) would be infringed by the making, having made, using,
selling or importation of the Licensed Products.

    

    2.  LICENSE

    

    2.1         Grant. Subject to the terms and
conditions set forth in this Agreement, Sam Amer hereby grants to Licensee, and
Licensee hereby accepts from Sam Amer, a non-transferable, non-sublicensable
(except in accordance with Section 2.3 or Section 5.1), royalty-bearing
license under the Patent License and the Know-How License (the “Product License”), solely within the Field of
Use within the Territory to:

    

    
      	
               
      

            	
              (i)

            	
              Research,
      develop or Commercialize, or have researched, developed or commercialized
      the Licensed Products;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Make
      and use the applicable Licensed
Products;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Have
      made the applicable Licensed Products in accordance with Section 5.1
      below;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Sell,
      offer for sale, promote and market the applicable Licensed Products (by
      itself, an Affiliate or through one or more Third Parties);
      and

            

    

    

    
      	
               
      

            	
              (v)

            	
              Import
      or have imported each Licensed
Product.

            

    

    

    2.2         Exclusivity. Unless otherwise set forth
in this Agreement, the Product License shall be exclusive (even as to Sam Amer
and its Affiliates) within the Field of Use in the Territory. By way of
clarification, Licensee shall have no rights in, and Sam Amer shall be free to
use and/or license, the Licensed Patents and Licensed Know-How for any purpose
whatsoever, outside of the Field of Use. Amer retains the right to license
and/or develop a water-based product to be indicated for wound healing or uses
other than hemorrhoids. Such product will not be packaged in a single use,
application tube for insertion into the rectum. Amer retains the right to
develop Iferanserin for other indications. Notwithstanding the foregoing, Sam
Amer shall not use and/or license the Licensed Patents and Licensed Know-How to
develop or commercialize a product which would be deemed pharmaceutically or
therapeutically equivalent to a Licensed Product by an Applicable Authority and
which is to be sold for (whether on an approved or off-. label use or other
basis), or after being sold is used for, the same indication(s) as a Licensed
Product.

    

    2.3         Right of
Sublicense.
Licensee shall have the right to engage Third Party sublicensees to develop and
Commercialize Licensed Products provided that Licensee satisfies the conditions
of this Section. At Licensee’s request, Sam Amer shall permit Licensee to grant
a Third Party sublicensee (“Third Party Sublicensee”) a
sublicense under the Licensed Patents and Licensed Know-How to develop and
Commercialize, solely for Licensee, Licensed Products and components thereof,
provided, however that (i) Licensee provides Sam Amer with a reasonably detailed
description of the proposed sublicense arrangement, (ii) said Third Party
Sublicensee agrees to protect the confidential information of Sam Amer
consistent with the terms and provisions of Section 10; and (iii) Licensee
obtains the prior written approval of Sam Amer of said Third Party Sublicensee,
such approval not to be unreasonably withheld or delayed. Sam Amer shall not be
deemed to have unreasonably withheld such approval if such proposed sublicense
(i) is contrary to or negates the effect of any provision of this Agreement or
(ii) puts Sam Amer in a less advantageous position than it would be absent such
sublicense, including with respect to the guarantee obligations of the
Guarantor. For avoidance of doubt Third Party Sublicensees shall not include
CROs or contract manufacturers.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    2.4         License
Restrictions. The
Product License is intended to permit Licensee and its Third Party Sublicensee
to sell Licensed Products at wholesale or retail for its own account. Except as
otherwise set forth herein, a Product License is not intended to permit or
enable any development or manufacturing activities by Third Parties, or to
permit Licensee to undertake any development or manufacturing activities on
behalf of any Third Parties. Notwithstanding the foregoing or any other
provision herein to the contrary, Licensee shall be free to enter into
agreements with CROs and Third Party manufacturers (as further set forth in
Section 5.1) to
facilitate and/or satisfy Licensee’s obligations under this Agreement without
the prior written consent of Sam Amer.

    

    2.5         Modifications
to Licensed Products. The Parties contemplate: (i)
the addition of at least one over- the-counter (“OTC”) formulation of a
Licensed Product; (ii) development of formulations and specifications for
additional licensed products; and (iii) modification from time to time of the
formulations and specifications to the Licensed Product as well as any
additional Licensed Products, all within the applicable Field of Use. Licensee
shall notify Sam Amer of any modifications to a Licensed Product at least sixty
(60) days prior to the First Commercial Sale of such Licensed Product as
modified. For the avoidance of doubt, multiple License Fees or royalties shall
not be payable on such modified Licensed Products unless such Licensed Products
are mutually agreed by the Parties to be new Licensed Products.

    

    3.  DEVELOPMENT
AND REGULATORY APPROVALS

    

    3.1         Commencement; Roles; Efforts.
Licensee will commence and pay for the pre-clinical and clinical studies and
development of Licensed Product as soon as practicable following the Effective
Date, including the following studies and development steps (within the meaning
of FDA regulations as applicable and, if no FDA regulation is applicable,
customary pharmaceutical industry practice):

    

    3.1.1      Submission
of an SPA to the FDA within ninety (60) days of the Effective Date.

    

    
      	
               
      

            	
              3.1.2

            	
              Conducting,
      as required by the FDA, all remaining, clinical and pre-clinical studies
      needed for inclusion in the NDA dossier for submission to the FDA,
      including the following (which are listed without reference to sequence
      and may be conducted
simultaneously):

            

    

    

    (i)           QTC
Study;

    

    (ii)          Pharmacology
Studies:

    Pharmacokinetic/Pharmacodynamic

    Age
Related

    Hemorrhoid

    Hepatic

    Renal

    Drug-Drug;

    

    (iii)         Efficacy
Trial(s) ((phase III) 700-1,000 patients);

    

    (iv)         Long
term toxicology (rats and dogs) and carcinogenicity (rats and mice);
and

    

    (v)     
    Segment III pre and post-natal reproductive toxicity
studies in rats.

    

    Procurement
of clinical supply of Licensed Product will be initiated within ninety (90) days
of Effective Date. The first patient will be enrolled within ninety (90) days of
the later to occur of (i) Licensee receiving an Acceptable FDA Response to the
SPA and (ii) when clinical supplies of Licensed Product are reasonably available
so that clinical trials can be conducted. All pre-clinical and clinical trials
are to be completed not later than completion of the carcinogenicity studies and
final reports.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Licensee
shall be solely responsible for the pre-clinical and clinical studies, final
development, manufacturing scale-up and production of Licensed Product and all
other development costs related thereto. Licensee shall use Commercially
Reasonable Efforts to develop and prepare each Licensed Product for Commercial
Launch, and will provide the Joint Development Committee, with reasonably
detailed updates as set forth in Section 3.2 on the
development, manufacturing scale-up, manufacturing of sufficient supplies of the
each Licensed Product for commercial distribution, and other progress toward
Commercial Launch of such Licensed Product until the actual First Commercial
Sale thereof. Licensee will notify Sam Amer promptly upon the discovery or
identification of any obstacles to achieving First Commercial Sale of a Licensed
Product.

    

    3.2         Joint
Development Committee.
The Parties recognize that it is in both of their interests to (i) foster
the development of the Licensed Product in the Territory, including regulatory
submissions; (ii) minimize the time to First Commercial Sale of the Licensed
Product in the Territory during the term of this Agreement; and (iii) coordinate
the activities of both Parties with respect to the development and time to First
Commercial Sale of the Licensed Product in the Territory.

    

    3.2.1       Accordingly,
the Parties hereby establish a development committee made up of an equal number
of representatives of each Party set forth in Schedule B hereto (the “Joint
Development Committee” or “JDC”). Both Parties shall have the right from time to
time to substitute individuals, on a permanent or temporary basis, for any of
its previously designated members of the JDC. The members appointed by each
Party shall be vested with appropriate decision-making authority and power by
such Party. Either Party shall have the right to engage Third Parties to assist
as members of the JDC, provided, however, (i) said Third Party agrees to protect
the confidential information of both Parties consistent with the terms and
provisions of Section
10; and (ii) the applicable Party obtains the prior written approval of
the other Party of said Third Party, such approval not to be unreasonably
withheld or delayed.

    

    3.2.2       The
JDC shall meet: (i) once every six months prior to the First Commercial Sale, or
more often as needed, on a date and at a location to be agreed to by the JDC,
and (ii) upon written notice by either Party to the other that a meeting is
required or requested, in which case a meeting will be held within fourteen (14)
calendar days of such notice on a date and at a location to be agreed to by the
Parties. After the First Commercial Sale the JDC shall meet on an as needed
basis. Notice requesting a meeting shall include adequate information describing
the activity to be reviewed. Any meetings of the JDC may be held in person at a
location to be agreed to by the Parties, or by videoconference or
teleconference. Other representatives of the Parties may attend JDC meetings as
participants. The Parties shall agree, at the first meeting of the JDC, upon
procedures for maintaining meeting minutes.

    

    3.2.3       The
purpose of the JDC is to serve as an advisory committee and to make
recommendations and to coordinate the development and clinical study efforts of
the Parties with respect to the development effort of the Licensed Product in
the Territory and to minimize the time to First Commercial Sale thereof.
Accordingly, the JDC shall discuss and resolve, to the extent possible, any
issues that arise under this Agreement including, without limitation, the
following:

    

    (a)
Review of the Licensee’s development plan for the Licensed Product, including
clinical study requirements and protocol needed for FDA approval ;

    (b)
Determining the analytical methods, validation, and stability of Licensed
Product to be provided by Licensee for use in the Territory; and

    (c)
Determining the optimal concentration of Licensed Product and packaging of the
Licensed Product in preparation for First Commercial Sale.

    

    3.2.4       In
the event of a JDC dispute that cannot be otherwise resolved, Licensee’s
President shall have final authority. That authority may be exercised in
Licensee’s President’s discretion, provided it is consistent with the terms of
this Agreement.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    3.
3         Regulatory
Approvals.
Licensee shall be solely responsible for obtaining all Regulatory Approvals, if
any, necessary to manufacture, market, sell and otherwise exploit the Licensed
Products in accordance with this Agreement. Licensee shall use Commercially
Reasonable Efforts to conduct all tests and field trials necessary to obtain any
necessary Regulatory Approvals of the Licensed Products with the Applicable
Authorities. Licensee shall use Commercially Reasonable Efforts consistent with
Applicable Laws and this Agreement to file for and obtain all necessary
Regulatory Approvals. Licensee shall be solely responsible for all matters with
Applicable Authorities concerning the Licensed Products, and to the extent
permitted by law, will be the sole contact with such agencies. Regulatory
Approvals for the Licensed Products shall be in Licensee’s name, and Licensee
shall own and control all submissions in connection therewith, provided, that
Sam Amer shall be provided with copies of proposed submissions in advance of
their submission to the FDA, and Sam Amer shall have the opportunity to comment
thereon to Licensee. In the event Licensee is provided short notice with which
to provide submissions to the FDA in respect of Regulatory Approvals, then
Licensee shall use its best efforts to provide Sam Amer the opportunity to
comment on such submissions.

    

    3.4          Investigation,
Testing and Research. Sam Amer shall not be
responsible for the performance of any investigations, testing and research
necessary to ensure that each Licensed Product and the manufacture thereof
complies with all Applicable Laws or that the Licensed Product is suitable for
the purposes for which it is intended.

    

    3.5          Know-How
Disclosure by Sam Amer. Sam Amer shall provide to
Licensee, within thirty (30) days of the Effective Date and at no charge to
Licensee, copies of any Licensed Know-How not already provided by Sam Amer to
Licensee, to be used to assist Licensee in clinical trials, registration,
manufacturing scale-up or other related development purposes (provided such
disclosure will not breach any Third Party confidentiality or non-disclosure
obligations) including, but not limited to research, synthesis, testing, pilot
or laboratory scale manufacturing know-how, procedures manuals and regulatory
data.  All disclosures by Sam Amer under this Section 3.5 shall be treated
by Licensee as the Confidential Information of Sam Amer in accordance with Section 10 below and subject
to the restrictions on the Know-How License set forth herein.

    

    4.           COMMERCIALIZATION

    

    4.1          Efforts. Licensee shall use
Commercially Reasonable Efforts, consistent with Applicable Laws and this
Agreement, to manufacture or have manufactured (in accordance with Section 5.1 below), promote or
have promoted, market, sell, and distribute or have distributed the Licensed
Products (collectively, “Commercialize” or “Commercialization”), and
maintain a sales and marketing organization of personnel knowledgeable about the
Licensed Products and experienced in the use, promotion and sales of similar
products. Beginning four (4) Calendar Quarters prior to the anticipated First
Commercial Sale, Licensee shall provide Sam Amer each Calendar Quarter, a
non-binding (except for purposes of Section 6.3 below), rolling
forecast of Licensee’s good faith estimates of unit sales of Licensed Products
for the next following four (4) Calendar Quarters.

    

    4.2          Joint
Commercialization Committee. The Parties recognize that
it is in both of their interests to (i) maximize the sales of the Licensed
Product in the Territory; (ii) maximize the marketing of the Licensed Product in
the Territory during the term of the Agreement; and (iii) to coordinate the
activities of both Parties with respect to the promotion of the Licensed Product
in the Territory.

    

    4.2.1       Accordingly,
the Parties hereby establish a commercialization committee made up of an equal
number of representatives of each Party set forth in Schedule B hereto (the “Joint
Commercialization Committee” or “JCC”). Both Parties shall have the right from
time to time to substitute individuals, on a permanent or temporary basis, for
any of its previously designated members of the JCC. The members appointed by
each Party shall be vested with appropriate decision-making authority and power
by such Party. Either Party shall have the right to engage Third Parties to
assist as members of the JDC, provided, however, (i) said Third Party agrees to
protect the confidential information of both Parties consistent with the terms
and provisions of Section
10; and (ii) the applicable Party obtains the prior written approval of
the other Party of said Third Party, such approval not to be unreasonably
withheld or delayed.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    4.2.2       The
JCC shall meet: (i) once every six months after filing of the NDA by Licensee,
or more often as needed, on a date and at a location to be agreed to by the JCC,
and (ii) upon written notice by either Party to the other that a meeting is
required or requested, in which case a meeting will be held within fourteen (14)
calendar days of such notice on a date and at a location to be agreed to by the
Parties. Notice requesting a meeting shall include adequate information
describing the activity to be reviewed. Any meetings of the JCC may be held in
person at a location to be agreed to by the Parties, or by videoconference or
teleconference. Other representatives of the Parties may attend JCC meetings as
participants. The Parties shall agree, at the first meeting of the JCC, upon
procedures for maintaining meeting minutes.

    

    4.2.3       The
purpose of the JCC is to serve as an advisory committee to make recommendations
and to coordinate the marketing and promotional efforts of the Parties with
respect to the promotional effort of the Licensed Product in the Territory and
to maximize the sales thereof. Accordingly, the  JCC shall discuss and
resolve, to the extent possible, any issues that arise under this
Agreement  including, without limitation, the following:

    

    (a)
Review of the Licensee’s annual detailed marketing plan for the Licensed
Product, including product and appropriate sales force training;

    (b)
Determining the reasonable quantities of Licensed Product samples to be provided
by Licensee for use in the Territory; and

    (c)
Determining the schedule of delivery of Licensed Product samples and promotional
sales, marketing, and educational materials for the Licensed Product to
Licensee’s sales representatives and to physicians called upon by Licensee’s
sales force.

    

    4.2.4       In
the event of a JCC dispute that cannot be otherwise resolved, Licensee’s
President shall have final authority. That authority may be exercised in
Licensee’s President’s discretion, provided it is consistent with the terms of
this Agreement

    

    4.3         Commercialization
Costs. Licensee
shall be responsible for and shall pay all costs incurred by it in connection
with the marketing, development and Commercialization of the Licensed
Products.

    

    4.4          Know-How
Disclosure by Sam Amer. Sam Amer shall provide to
Licensee, within thirty (30) days of the Effective Date and at no charge to
Licensee, copies of any Licensed Know-How not previously provided by Sam Amer to
Licensee, to be used to assist Licensee in manufacturing scale-up or other
related commercial purposes (provided such disclosure will not breach any Third
Party confidentiality or nondisclosure obligations). All disclosures by Sam Amer
under this Section 4.4
shall be treated by Licensee as the Confidential Information of Sam Amer in
accordance with Section
10 below and subject to the restrictions on the Know-How License set
forth herein.

    

    4.5          Consistent
with Section 2.5 of this
Agreement, Licensee shall use Commercially Reasonable Efforts to develop at
least one OTC formulation of a Licensed Product.

    

    5.  MANUFACTURING

    

    5.1          Manufacturer. Licensee shall be solely
responsible for the manufacture of the Licensed Products for all development and
Commercialization purposes at a cGMP-licensed facility. Licensee may subcontract
the manufacturing to a Third Party manufacturer at a cGMP-licensed facility
provided that said Third Party agrees to protect the confidential information of
Sam Amer consistent with the terms and provisions of Section 10.

    

    5.2          Patent
Marking. Licensee
agrees to mark or cause to be marked labeling for Licensed Products sold or
otherwise distributed pursuant to this Agreement in accordance with the
Applicable Laws of the country or countries of manufacture and sale thereof,
including without limitation Section 287(a) of the United States Patent Act in
the United States, as to any Patents within the Licensed Patents that may be
embodied in such Licensed Products.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    6.  LICENSEE
FEES, ROYALTIES AND ACCOUNTING

    

    6.1          License
Fees. As
consideration for the licenses granted hereunder, including of the Sam Amer
Patents and the Sam Amer Know-How, Licensee shall pay Sam Amer the license fees
(“License Fees”) as set
forth below within thirty (30) days after achievement of the applicable
milestone event. Each License Fee shall be payable one time only, regardless of
the number of Licensed Products that satisfy the condition that triggers such
payment.

    

    
      
        
          	
                  Milestone

                  U.S. Territory

                	 
      	
                  License Fee

                  to Amer

                
	 
      	 
      	 
      
	
                  Execution
      this Agreement.

                	 
      	 
      
	 
      	 
      	 
      
	
                  No
      contingencies on initial License Fee beyond execution of this
      Agreement.

                	 
      	
                  $2,050,000
      to be paid as follows; (a) Initial payment of $550,000 upon execution of
      this Agreement; and (b) remaining $1,500,000 to be paid in three equal
      installments of $500,000 every 4 months thereafter.

                
	 
      	 
      	 
      
	
                  Successful
      Completion of Phase III Trials.

                	 
      	
                  $1
      (one) million

                
	 
      	 
      	 
      
	
                  If
      the Phase III Trials are not successfully completed by July 2009, Licensee
      shall pay $7,500 per month to Sam Amer until the Successful Completion of
      the Phase III Trials. Such payments will begin at July
    2009.

                	 
      	 
      
	 
      	 
      	 
      
	
                  Notwithstanding
      the foregoing, if safety, efficacy or other regulatory issues prevent the
      completion of the Phase III Trials (a “Non-completion Event”), then
      Licensee’s payment of $7,500 per month shall cease upon the Non-Completion
      Event.

                	 
      	 
      
	 
      	 
      	 
      
	
                  Upon
      Licensee’s Submission of an NDA to the FDA.

                	 
      	
                  $1
      (one) million

                
	 
      	 
      	 
      
	
                  If
      an NDA is not submitted by September 2010 $7,500 per month will be paid
      until such submission. Payment will begin at September
    2010.

                	 
      	 
      
	 
      	 
      	 
      
	
                  Notwithstanding
      the foregoing, if safety, efficacy or other regulatory issues prevent the
      submission of NDA (a “Non-completion Event”), then Licensee’s payment of
      $7,500 per month shall cease upon the Non-Completion
Event.

                	 
      	 
      
	 
      	 
      	 
      
	
                  NDA
      Approval by FDA

                	 
      	
                  $[*]

                
	 
      	 
      	 
      
	
                  At
      one (1) Year Anniversary following NDA Approval by FDA

                	 
      	
                  $[*]

                
	 
      	 
      	 
      
	
                  At
      $[*] cumulative lifecycle Net Sales attainment

                	 
      	
                  $[*]

                
	 
      	 
      	 
      
	
                  At
      $[*] cumulative lifecycle Net Sales attainment

                	 
      	
                  $[*]

                
	 
      	 
      	 
      
	
                  At
      $[*] cumulative lifecycle Net Sales attainment

                	 
      	
                  $[*]

                
	 
      	 
      	 
      
	
                  At
      Regulatory Approval for OTC sale

                	
                    

                	
                  $[*]

                

        

      

    

     

    
      
        

      

      [*]
Confidential treatment requested; certain information omitted and filed
separately with the SEC.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    6.2          Royalties. (a) As additional
consideration for the Product License granted hereunder, during the Royalty
Period Licensee shall pay to Sam Amer the royalty percentages for each
applicable country or countries as set forth below:

    

    U.S. Sales
Royalties

    

    
      
        	
                Royalty Payments on U.S. Sales:

              	 
      	 
      
	
                $[*]
      to $[*] annual Net Sales

              	 
      	
                [*]%
      ([*] percent)

              
	
                Over
      $[*] to $[*] annual Net Sales

              	 
      	
                [*]%
      ([*] percent)

              
	
                Over
      $[*] to $[*] annual Net Sales.

              	 
      	
                [*]%
      ([*] percent)

              
	
                Over
      $[*] annual Net Sales

              	
                  

              	
                [*]%
      ([*] percent)

              

      

    

    

    Ex-U.S. Sales
Royalties

    

    Ex-U.S.
sales royalties shall be based on Ex-U.S. Gross Sales.

    

    
      
        	
                Royalties on Ex-U.S. Gross Sales

                within the Ex-U.S. Territory

              	 
      	
                Royalty fee to Amer

              
	
                $[*]
      to $[*] annual Ex-U.S. Gross Sales

              	 
      	
                [*]%
      ([*] percent)

              
	
                Over
      $[*] to $[*] annual Ex-U.S. Gross Sales

              	 
      	
                [*]%
      ([*] percent)

              
	
                Over
      $[*] to $[*] annual Ex-U.S. Gross Sales

              	 
      	
                [*]%
      ([*] percent)

              
	
                Over
      $[*] annual Ex-U.S. Gross Sales

              	
                  

              	
                [*]%
      ([*] percent)

              

      

    

    

    (b)         
 As additional consideration for the license of Sam Amer Know-How granted
hereunder, during the Reduced Royalty Period, Licensee shall pay to Sam Amer
royalties on Net Sales in each applicable country or countries at a rate equal
to [*] percent ([*]%) of the rate applicable to such country or countries
pursuant to Section
6.2(a) of this Agreement.

    

    (c)         
 Royalties shall be reported and paid quarterly in accordance with Section 6.4
below.

    

    6.3       
  Guaranteed
Minimum Royalty.
As additional consideration for the licenses granted hereunder, during the
Royalty Period and the Reduced Royalty Period, Licensee shall guarantee to Sam
Amer a minimum yearly royalty. The guaranteed minimum royalty shall be the
royalty that would have been received if Net Sales equaled fifty percent (50%)
of the Net Sales expectations set forth in the applicable forecast referred to
in Section 4.1 of this
Agreement Such guaranteed minimum royalty shall apply to both expected U.S. Net
Sales and expected Ex-U.S. Gross Sales.

    

    6.4       
  Accounting.

    

    (a)           Payment
of Royalties.
Royalties shall be due and payable at the same time as Quarterly Reports are due
as provided below.

    

    (b)          Sales and
Royalty Reports.
Within sixty (60) days after the end of each Calendar Quarter during the Term,
Licensee shall deliver to Sam Amer an accurate and complete written accounting
of (i) Licensee’s and Third Party Sublicensee’s U.S. Net Sales and (ii)
Licensee’s and Third Party Sublicensees’ Ex-U.S. Gross Sales, and (iii) the
royalties due to Sam Amer for such quarter (“Quarterly Reports”). The Quarterly
Reports shall be in English and include the applicable Net Sales or Ex-U.S.
Gross Sales of each Licensed Product on a country-by-country basis (expressed in
United States Dollars). Quarterly Reports shall be provided for each Calendar
Quarter after the First Commercial Sale of the Licensed Products, regardless of
whether any sales occur during such Calendar Quarter.

      

      
        

      

    

    
      [*]
Confidential treatment requested; certain information omitted and filed
separately with the SEC.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (c)          Audits. Licensee shall keep complete
and accurate records of the latest three years of sales of Licensed Products on
which royalties are due hereunder as well as records supporting Licensee’s
calculation of Net Sales with respect to such sales. Sam Amer shall have the
right, no more than once each calendar year, to retain an independent certified
public accountant reasonably acceptable to Licensee, to review such records in
the location where such records are regularly maintained, upon reasonable notice
and during regular business hours, for the purpose of certifying the amount of
royalties due hereunder. Before permitting such independent certified public
accountant to have access to such books and records, Licensee may require such
accounting firm and its personnel involved in such review to sign
confidentiality agreement in form and substance reasonably acceptable to
Licensee. Each such review shall be limited to the pertinent books and records
for any year ending not more than three years prior to the first day of the
calendar year during which such request was made, and Sam Amer shall not be
permitted to review the same period of time more than once. Results of such
review shall be made available to Sam Amer and to Licensee. The accounting firm
may not reveal any information learned in the course of such audit other than
the amount of discrepancies in payments of royalties under this Agreement. If
such independent certified public accountant determines there was an
underpayment to Sam Amer, such underpayment shall be promptly remitted to Sam
Amer, together with interest at LIBOR plus two percent.  If such
independent certified public accountant determines there was an overpayment to
Sam Amer, Sam Amer shall promptly refund the amount of the overpayment, together
with interest calculated at LIBOR plus two percent. Such review shall be at the
sole expense of Sam Amer; provided, however, that if the underpayment of
royalties is equal to or greater than five percent, then Licensee shall promptly
reimburse Sam Amer for all of the reasonable costs of such review.

    

    (d)          Exchange
Rates and Currency Translation. All payments shall be made
and reported in United States Dollars. The rate of exchange to be used in
computing the amount of the royalties due Sam Amer on Ex- U.S. Gross Sales shall
be the rate of exchange published in the Wall Street Journal on the first day of
the month that the calculations are initiated.

    

    (e)           Withholding
Taxes. Licensee
shall have no liability for any income taxes levied against Sam Amer on account
of royalties or other payments paid hereunder. If laws or regulations require
that any such taxes be withheld by Licensee, Licensee shall deduct such taxes
from the payment due Sam Amer, pay the taxes so withheld to the proper taxing
authority, and send proof of payment to Sam Amer with the next applicable
quarterly payment. If Sam Amer desires to obtain a refund of any taxes so
withheld and paid to a taxing authority, Licensee shall reasonably cooperate at
Sam Amer’s expense in the pursuit of such refund.

    

    6.5         Consulting
Fee. Licensee
will pay Sam Amer a consulting fee of $7,500 per month for the first twelve (12)
months following the Effective Date of this Agreement.

    

    7.  TRADEMARKS
AND TRADE NAMES

    

    7.1         Selection;
License; Expenses. Licensee may select and file
a U.S. trademark application with the U.S. Patent and Trademark Office in its
name, for one or more Trademarks, as appropriate, for the marketing of the
Licensed Products; provided that such Trademarks do not reflect unfavorably on
the Licensed Products. Such Trademarks and any and all Intellectual Property
Rights embodies therein shall be owned solely by Licensee. Expenses for
registration of the Trademarks shall be borne solely by Licensee. Sam Amer shall
have no right or license under this Agreement to use any Trademarks owned or
controlled by Licensee or its Affiliates. All goodwill attributable and/or
accruing to the Trademarks shall be owned by and inure to the benefit of
Licensee.

    

    7.2         Sam Amer
Trademarks.
Notwithstanding the provisions of Section 7.1, Licensee shall
have no right or license under this Agreement to use any trademarks owned or
controlled by Sam Amer or its Affiliates. Any use of any such Trademarks shall
be pursuant to a separate mutually acceptable trademark license agreement
executed by the Parties.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    8.  OWNERSHIP

    

    8.1         Ownership
of Iferanserin Patent. Licensee acknowledges and
agrees that, as between Sam Amer and Licensee, Sam Amer owns and will retain all
right, title and interest in and to the Sam Amer Patents and the Intellectual
Property Rights embodied therein, including without limitation the Licensed
Patents and the Sam Amer Know-How.

    

    8.2         Ownership of
Improvements.

    

    (a)           Sam Amer
Improvements. As
between Sam Amer and Licensee, Sam Amer will own exclusively all Sam Amer
Improvements. All Sam Amer Improvements within the Field of Use shall
automatically be included in the Patent License or Know-How License as
applicable. Sam Amer shall promptly provide Licensee with notice of any Sam Amer
Improvement within the Field of Use and shall transfer any data and materials in
respect of such Improvement to Licensee at no charge and for use solely in
accordance with the terms and conditions set forth herein.

    

    (b)           Licensee
Intellectual Property. Licensee shall own all
right, title and interest in and to

    Licensee
Intellectual Property. Upon expiration of this Agreement or termination by Sam
Amer for cause, Licensee agrees to assign to Sam Amer all right, title and
interest in and to Licensee Intellectual Property. In the event Licensee
terminates this Agreement for cause, Licensee and Sam Amer shall negotiate the
terms by which Licensee will grant to Sam Amer a license under the Licensee
Intellectual Property.

    

    9.  PROSECUTION,
ENFORCEMENT AND DEFENSE.

    

    9.1         Maintenance. Licensee shall pay all
government, counsel and other fees required to maintain the Licensed Patents in
force (“Maintenance”).
Sam Amer or its patent counsel shall promptly provide Licensee with information
as to Maintenance as necessary to keep the Licensed Patents in good standing.
Licensee shall prosecute (“Prosecution”) all Licensed
Patents as necessary and will pay all fees and costs related thereto. Sam Amer
will reasonably cooperate with Licensee at Licensee’s expense in the Prosecution
of all Licensed Patents, including executing and delivering to Licensee, at
Licensee’s request, all instruments and documents, including powers of attorney,
needed to Prosecute the Licensed Patents. If so requested by Sam Amer, Licensee
will deal directly with Sam Amer’s patent counsel with respect to Maintenance.
Licensor’s breach of its obligations .under this Section 9.1 and with respect
to the countries of the United States, the United Kingdom, Germany, Italy,
France, Spain and Japan shall be deemed to be a material breach.

    

    9.2         Notice. Each Party shall give prompt
written notice (“Infringement
Notice”) to the other if it becomes aware of any infringement or
suspected infringement of the Licensed Patents or misappropriation of the
Licensed Know-How (“Potential
Infringement”) by any Third Party (“Potential
Infringer”).

    

    9.3         Enforcement Against
Infringers.

    

    (a)           By
Sam Amer. Sam Amer shall have the right (but not the obligation) to take and
thereafter diligently pursue in good faith such actions, as it reasonably deems
appropriate, whether by action, suit, proceeding or otherwise, at its own
expense to prevent or eliminate the Potential Infringement by the Potential
Infringer and to collect damages. Licensee agrees to cooperate with Sam Amer in
any reasonable manner including, but not limited to, being named as a
co-plaintiff in an action brought by Sam Amer. Any damages recovered by Sam Amer
shall be used to compensate Sam Amer and Licensee for their respective
out-of-pocket expenses incurred in the prosecution of any such action, suit, or
proceeding for infringement.  Any remaining damages recovered by Sam
Amer shall be apportioned to Sam Amer and Licensee so that Sam Amer receives the
Royalty Rate then in effect on such remaining damages which shall be considered
Net Sales and Licensee receives the remainder.

    
      
         

      

      
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    (b)           By
Licensee. In the event that Sam Amer does not take or declines to take such
actions to prevent or eliminate such Potential Infringement pursuant to Section 9.3(a) within thirty
(30) days after the Infringement Notice, then (i) Licensee may, at its option,
take such action as it deems appropriate against the Potential Infringer to
prevent or eliminate such infringement and recover damages, and (ii) the Royalty
Rate in any applicable jurisdiction affected by the Potential Infringement will
be reduced by twenty-five percent (25%) for so long as such Potential
Infringement is continuing. If Licensee gives notice to Sam Amer of Licensee’s
intent to take action as set forth in this subsection, Sam Amer shall no longer
have the right to take action as set forth in Section 9.3(a) unless
otherwise agreed by Sam Amer and Licensee. Such action by Licensee may be
undertaken in the name of Sam Amer, if necessary, and Sam Amer agrees to
cooperate with Licensee, and execute any necessary documents relating to such
action. Licensee may deduct the reasonable costs and expenses (including,
without limitation, attorneys’ fees) of the prosecution of any such action from
the royalty payment due hereunder. Licensee shall submit written reports showing
the expenses of such litigation. Any recoveries in any such action shall be used
to compensate Licensee and Sam Amer for their respective expenses incurred in
the prosecution of any such action, suit or proceeding and the remainder shall
be retained by Licensee and shall be considered Net Sales with respect to the
quarter in which such recovery was received.

    

    9.4         Participation
and Cooperation.
The Party not prosecuting a Potential Infringer or defending a Third Party suit
against the Licensed Patents shall be entitled to participate therein with
counsel of its choice and at its own cost and expense (subject to reimbursement
out of any recovery in such action).

    

    10.  CONFIDENTIALITY
AND NONDISCLOSURE

    

    10.1       Confidentiality. Except to the extent
expressly authorized by this Agreement or otherwise agreed in writing, the
Parties agree that, for the term of this Agreement and for five (5) years
thereafter, each Party receiving any Confidential Information of the other Party
hereunder shall keep such Confidential Information confidential and shall not
publish or otherwise disclose or use such Confidential Information for any
purpose other than as provided for in this Agreement. Each Party will protect
the other Party’s Confidential Information from unauthorized use, access, and
disclosure in the same manner that it protects its own Confidential Information
of a similar nature, and with no less than a reasonable degree of care. The
Confidentiality Agreement previously entered into by the Parties shall remain in
effect coextensively with this Agreement

    

    10.2       Exceptions. Any particular item of
information shall not be considered Confidential Information for purposes of
this Agreement at such time, and to the extent, such information is: (a) known
to the receiving Party prior to any disclosure by or on behalf of the disclosing
Party; (b) rightfully acquired by the receiving Party on a non-confidential
basis from a Third Party legally entitled to disclose such information; (c)
placed in the public domain through no wrongful act or fault of the receiving
Party; or (d) independently developed by the receiving Party without reference
to or reliance on the Confidential Information of the disclosing
Party.

    

    10.3       Required
Disclosures. If
either Party is requested to disclose any Confidential Information of the other
Party under any Applicable Law or in any judicial or administrative proceeding,
then, except as otherwise required to comply with any court order or other
Applicable Law, the Party agrees to promptly notify the other Party of such
request so that the Party may resist such disclosure or seek an appropriate
protective order. If either Party is nonetheless compelled to disclose any
Confidential Information of the other Party under Applicable Law or in such
judicial or administrative proceeding, the Party shall limit its disclosure to
that which is required by Applicable Law or the relevant judicial or
administrative body.

    

    10.4       Return or
Destruction. Upon
the expiration or termination of this Agreement for any reason, each Party
shall, at the election of the other Party, promptly return or destroy any and
all Confidential Information of the other Party in its possession or control
(including copies thereof) related to the Agreement provided that each Party may
retain one archival copy of the Confidential Information for its records, which
copy shall be subject to the restrictions on access, use and disclosure set
forth above.

    
      
         

      

      
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    11.  TERM
AND TERMINATION

    

    11.1       Term of
Agreement. The
term of this Agreement shall commence as of the Effective Date and shall
continue in full force and effect unless and until terminated in accordance with
the provisions of this Section
11.

    

    11.2       Termination
for Cause. Either
Party may terminate this Agreement for cause upon written notice to the other
Party if the other Party materially breaches this Agreement and fails to cure
the breach within (i) thirty (30) days with respect to a failure to pay amounts
when due (“Payment
Default”), and (ii) sixty (60) days with respect to all other breaches,
in each case after written notice of such breach from the non-breaching Party
and failure to cure such breach within such sixty (60) day cure period;
provided, however, that if any breach other than Payment Default is not
reasonably curable within sixty (60) days and so long as the breaching party is
using Commercially Reasonable Efforts to cure such breach, the breaching party
shall be permitted a reasonable time to cure such breach before termination of
this Agreement becomes effective.

    

    11.3     
 Termination
for Safety or Regulatory Issues. Licensee shall have the
right to terminate this Agreement with thirty (30) days written
notice:

    

    (i)      
     if, applying customary pharmaceutical company
practice, documented safety or efficacy issues prevent development or
Commercialization of the Licensed Product; or

    

    (ii)           if,
applying customary pharmaceutical company practice, documented and regulatory
issues raised in writing by the FDA prevent development or Commercialization of
the Licensed Product.

    

    11.4      Termination
of the Know-How License.
At any time subsequent to expiration of the Royalty Period for any
Licensed Product either Licensee or Sam Amer may terminate the Know-How License
for such Licensed Product by providing ninety (90) days prior written notice to
the other Party. Upon any such termination, neither Licensee nor any Person
acting for or on behalf of Licensee shall have any further right under this
Agreement to use the Licensed Know-How with regard to such Licensed Product for
any purpose including sale of Licensed Product in such country of the
Territory.

    

    11.5       Termination
Upon Insolvency.
Either Party may, subject to the provisions set forth herein, terminate this
Agreement by giving the other Party written termination notice if, at any time,
the other Party shall: (a) file in any court pursuant to any statute a petition
for bankruptcy or insolvency, or for reorganization in bankruptcy, or for an
arrangement or for the appointment of a receiver, trustee or administrator of
such Party or of its assets; (b) be served with an involuntary petition against
it, filed in any insolvency proceeding, and such petition shall not be dismissed
within sixty (60) days after the filing thereof; (c) propose or be a Party to
any dissolution; or (d) make an assignment for the benefit of its creditors.
Should Sam Amer become a Party to a bankruptcy proceeding and such proceeding is
not dismissed within sixty (60) days then, to the extent permitted by law, this
Agreement and the licenses granted by Sam Amer hereunder shall be adopted by any
bankruptcy trustee or relevant Third Party charged with the disposition of same,
and shall not be rejected by same, it being the Parties’ intent that, in such
event, Licensee and its Affiliates and sub licensees shall be entitled to retain
the rights granted to them hereunder by Sam Amer. In this regard, the Parties
acknowledge that this Agreement is an executory contract as provided in Section
365(n) of the Bankruptcy Code, that the Licensed Know-How, Licensed Patents and
other intellectual property licensed hereunder are “intellectual property” as
defined in Section 101(a)(35) of the U.S. Bankruptcy Code and that Licensee will
have the right to exercise all rights provided by Section 365(n) with respect to
the licensed intellectual property. Sam Amer acknowledges and agrees that if it
as debtor in possession or a trustee in bankruptcy in a case under the
Bankruptcy Court rejects this Agreement, Licensee may elect to retain its rights
under this Agreement as provided in Section 365(n) of the Bankruptcy Code,
including the right to the Licensed Know-How, Licensed Patents and other
intellectual property licensed hereunder to the fullest extent permitted by law.
Sam Amer or such bankruptcy trustee shall not interfere with the rights of
Licensee as provided in this Agreement except as otherwise permitted by law or
equity.

    
      
         

      

      
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    11.6       Effects
of Termination.
Upon termination or expiration of this Agreement for any reason or no reason:
(i) all rights and licenses granted in this Agreement shall immediately and
automatically cease; (ii) each receiving Party shall return the Data and any
other information (Confidential or Non-Confidential) of the other Party in
accordance with the provisions of Section 10.5; and (iii) Sections 6.1, 6.2, 6.4, 8, 9, 10, 11.8, 12, 13, 14, 15 and 16 of this Agreement will
survive the termination or expiration of this Agreement for any reason.
Expiration or termination of this Agreement for any reason shall be without
prejudice to any right which shall have accrued to the benefit of either Party
prior to such termination. Notwithstanding the foregoing, Sam Amer shall permit
Licensee to sell any remaining inventory of Licensed Products remaining in the
system following termination of this Agreement with appropriate royalties paid.
Data generated by Licensee shall be delivered to Sam Amer at no
cost.

    

    12.  INDEMNIFICATION
AND INSURANCE

    

    12.1       By
Licensee.
Licensee shall indemnify, defend and hold harmless Sam Amer and its Affiliates,
and their respective officers, directors, managers, agents and employees from
and against any and all claims (including any claims for personal injury or
property damage), demands, suits, actions, prosecutions and other proceedings
brought by or on behalf of a third Party, and all resulting damages,
liabilities, losses, fines, penalties, judgments, awards, settlements, costs and
expenses (including reasonable attorneys’ fees and costs), arising from or
related to (i) the gross negligence or willful misconduct of Licensee in
performing its obligations hereunder, (ii) Licensee’s breach of any
representation, warranty or covenant set forth in this Agreement, (iii) the
manufacture, use, distribution, handling, storage, sale or other disposition of
any Licensed Products by Licensee, its Affiliates, agents or sublicensees,
except to the extent arising out of or relating to Iferanserin in the Licensed
Product, or (iv) any claim or allegation of infringement of any Third Party’s
Intellectual Property Rights arising from or related to any inactive ingredients
in any Licensed Products not originally an ingredient in such Licensed Product
prior to the Effective Date; provided, however, Licensee shall have no such
obligation under this Section
12.1 to the extent any claim, suit or proceeding arises out of result
from any claim for which Sam Amer is required to indemnify Licensee pursuant to
Section
12.2.

    

    12.2       By Sam
Amer. Sam Amer
shall indemnify, defend and hold harmless Licensee and its Affiliates, and their
respective officers, directors, managers, agents and employees from and against
any and all claims (including any claims for personal injury or property
damage), demands, suits, actions, prosecutions and other proceedings brought by
or on behalf of a third Party, and all resulting damages, liabilities, losses,
fines, penalties, judgments, awards, settlements, costs and expenses (including
reasonable attorneys’ fees and costs), arising from or related to (i) the gross
negligence or willful misconduct of Sam Amer in performing its obligations
hereunder, (ii) Sam Amer’s breach of any representation, warranty or covenant
set forth in this Agreement, or (iii) any claim or allegation that Iferanserin,
standing alone and with or without the addition of inactive ingredients included
in any Licensed Product, or the Product Licenses infringe, misappropriate or
otherwise violate the Intellectual Property Rights of a Third Party; provided,
however, Sam Amer shall have no such obligation hereunder to the extent any
claim, suit or proceeding arises out of or results from any claim for which
Licensee is required to indemnify Sam Amer pursuant to Section 12.1. Without limiting
the other obligations of Sam Amer under this Agreement, Sam Amer will exercise
its best efforts to obtain licenses from any Third Party of such Third Party’s
Intellectual Property Rights as may be necessary for Sam Amer to license the
Product Licenses to Licensee and otherwise perform its obligations under this
Agreement.

    

    12.3       Procedure. Each Party shall promptly
notify the other Party of any notice of the commencement or filing of any claim
for which the other Party is entitled to indemnification hereunder. Failure to
give or delay in giving such notice shall not relieve either Party of its
indemnification obligations hereunder, except to the extent that the defense of
such claim is prejudiced thereby. The indemnifying Party shall have sole control
of the defense and settlement of any claim; provided, however, that (a) if Sam
Amer is the indemnifying Party, Sam Amer shall have demonstrated, to the
reasonable satisfaction of Licensee, Sam Amer’s financial capacity and capital
resources to prosecute the defense and settlement, and (b) no compromise or
settlement may be committed to without the indemnified Party’s prior written
consent unless (i) it includes a full discharge and release of liability for the
indemnified Party, (ii) it has no effect on any rights or obligations of the
indemnified Party, or on any claims that may be made by or against the
indemnified Party, and (iii) there is no injunctive or other equitable relief
entered against the indemnified Party. The indemnifying Party shall defend any
claim hereunder with counsel reasonably acceptable to the indemnified Party. The
indemnified Party shall provide reasonable assistance, at the indemnifying
Party’s request and sole expense, needed in the defense or settlement of any
claim. The indemnified Party also may elect to participate in the defense of any
claim at its own expense with counsel of its choice.

    
      
         

      

      
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    12.4       Insurance.

    

    (a)           At
all times while this Agreement is in effect, Licensee shall: (a) maintain
Commercial General Liability insurance (including, without limitation, bodily
injury and property damage coverage) at limits not less than US $10,000,000 per
occurrence/US $10,000,000 aggregate; (b) maintain Clinical Trial insurance; (c)
maintain Product Liability Insurance (together the “Insurance Policies”) at
limits not less than US $10,000,000 per occurrence/US $10,000,000 aggregate; (d)
if Licensee terminates the Insurance Policies during the term of this Agreement,
obtain and maintain the maximum available Extended Discovery Period insurance;
(e) include Sam Amer as “Additional Insured” under the Insurance Policies; (f)
provide, within thirty (30) days of Sam Amer’s request, Certificates of
Insurance verifying insurance limits agreed upon as well as a thirty (30) day
Notice of Cancellation or Non-Renewal; (g) maintain Property insurance at limits
not less than US $10,000,000 per occurrence/US $10,000,000 aggregate; and (h)
maintain Automobile/Fleet insurance (with a third Party liability including
bodily injury and property damage of aggregate for Automobile) at limits not
less than US $1,000,000 per occurrence/US $1,000,000 aggregate. Licensee shall
obtain all the insurance policies described in clauses (a) through (g) from
insurers having A.M. Best ratings reasonably satisfactory to Sam
Amer.

    

    13.  REPRESENTATIONS
AND WARRANTIES

    

    13.1       Effective
Date. The
representations and warranties of each Party made in this Section 13, shall be deemed
made as of the Effective Date of this Agreement.

    

    13.2       Existence
and Power. Each
Party hereto, including Guarantor, represents and warrants to the other Party
that it (a) is duly organized, validly existing and in good standing under the
laws of the state in which it is created, and (b) has full power and authority
and the legal right to own and operate its property and assets and to carry on
its business as it is now being conducted and as contemplated in this Agreement,
including the right to grant the licenses granted hereunder. Guarantor further
represents and warrants that it has the financial resources to perform its
guarantee obligations hereunder.

    

    13.3       Authority. Each Party hereto, including
Guarantor, represents and warrants to the other Party that (i) it has the power
and authority and the legal right to enter into this Agreement and perform its
obligations hereunder; (ii) it has taken all necessary action on its part
required to authorize the execution and delivery of the Agreement and the
performance of its obligations hereunder; and (iii) this Agreement has been duly
executed and delivered on behalf of such Party, and constitutes a legal, valid,
binding obligation of such Party and is enforceable against it in accordance
with its terms subject to the effects of bankruptcy, insolvency or other laws of
general application affecting the enforcement of creditor rights and judicial
principles affecting the availability of specific performance and general
principles of equity whether enforceability is considered in a proceeding at law
or equity.

    

    13.4       Absence
of Litigation.
Each Party represents and warrants to the other Party that to the best of its
Knowledge there is no pending or threatened litigation (and has not received any
communication) which alleges that such Party’s activities under this Agreement
or the Licensed Patents have violated, or that by conducting the activities as
contemplated herein such Party would violate, any of the Intellectual Property
Rights of any Third Party.

     

    13.5       No
Approvals or Consents. Except as otherwise
described in this Agreement, each Party represents and warrants to the other
that it has all necessary consents, approvals and authorizations of all
applicable persons or entities required to be obtained by such Party in order to
enter into this Agreement.

     

    
      
        
        

      

      
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    13.6       Additional
Representations of Sam Amer. Sam Amer represents and
warrants that: (i) Sam Amer exclusively owns all rights, title, and interests in
the Licensed Patents and the Licensed Know-How free and clear of any liens,
charges, encumbrances, licenses, or other claim of right or ownership by any
Third Party. (ii) to the best of its Knowledge, Iferanserin and the Licensed
Products do not violate any Intellectual Property Rights of any other Person;
(iii) Sam Amer has received no communication alleging that it has violated or,
by conducting its business as contemplated by this Agreement would violate, any
of the Intellectual Property Rights of any other Person; (iv) Sam Amer has not
previously granted and will not grant any rights inconsistent with the rights
and license granted herein; (v) Sam Amer has provided and will provide to
Licensee all documents in its files, as well as all other information, that are
included within the Licensed Know-How and Licensed Patents, including, without
limitation, any information that relates to the patentability or validity of the
Licensed Patents; (vi) to the best of Sam Amer’s knowledge, the Licensed Patents
are valid and enforceable, and there are no patent rights or similar
intellectual property rights of a Third Party that the development, manufacture,
use or sale of the Licensed Products would infringe if Licensee did not have a
license thereto; and (vii) the Licensed Patents and Licensed Know-How is not
subject to any funding agreement with any government or governmental
agency.

    

    13.7       Iferanserin. Licensee represents and
warrants that: (i) to its Knowledge, its use of Iferanserin alone or in
conjunction with inactive ingredients, as contemplated by this Agreement does
not violate any Intellectual Property Rights of any other Person; and (ii) it
has received no communication alleging that it has violated or by conducting its
business as contemplated by this Agreement would violate any of the Intellectual
Property Rights of any other Person.

    

    13.8       Compliance. Each Party represents and
warrants to the other Party that it shall, and shall cause its Affiliates to,
comply in all material respects with all applicable federal, state, local and
foreign laws, statutes, rules and regulations applicable to their and their
Affiliates’ respective activities under this Agreement.

    

    13.9       No
Conflict. Each
Party represents and warrants to the other Party that the execution and delivery
of this Agreement and the performance of its obligations hereunder: (a) does not
conflict with or violate any requirement of applicable law or regulation or any
provision of the limited liability company agreements of such Party, and (b)
does not conflict with, violate or breach or constitute a default or require any
consent under, any contractual obligation or court or administrative order by
which such Party is bound.

    

    13.10     Continuous
Nature. Except as
expressly stated otherwise, all representations and warranties made by the
Parties in this Agreement shall be deemed first made on the Effective Date and
shall run continuously thereafter. Each Party shall promptly notify the other
Party if any material change in circumstance makes any representation
inaccurate, or causes or is likely to cause a breach any warranty, and shall
provide any and all information and cooperation reasonably requested in
connection therewith.

    

    14.  LIMITATIONS
OF LIABILITY.

    

    14.1       NO
PARTY WILL BE LIABLE TO THE OTHER PARTY FOR PUNITIVE, EXEMPLARY, SPECIAL,
INCIDENTAL, CONSEQUENTIAL OR OTHER INDIRECT DAMAGES (INCLUDING WITHOUT
LIMITATION LOST PROFITS, BUSINESS OR GOODWILL) ATTRIBUTABLE TO ANY BREACH OR
DEFAULT BY SUCH PARTY UNDER THIS AGREEMENT. THIS LIMITATION SHALL SURVIVE ANY
FAILURE OF THE ESSENTIAL PURPOSE OF A LIMITED OR EXCLUSIVE REMEDY SET FORTH
HEREIN.

    

    14.2       THE
LIMITATIONS ON LIABILITY SET FORTH IN SECTION 14.1 ABOVE SHALL NOT
APPLY TO, AND NOTHING CONTAINED IN THIS AGREEMENT SHALL LIMIT THE LIABILITY OF
EITHER PARTY FOR A PARTY’S INDEMNIFICATION AND DEFENSE OBLIGATIONS UNDER SECTION 12.

    
      
         

      

      
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    15.  GOVERNING
LAW; ALTERNATIVE DISPUTE RESOLUTION

    

    15.1       Governing Law. This Agreement
shall be governed by the laws in effect in the State of New York, without regard
to its conflict of laws principles that would require the application of the
laws of any other jurisdiction. The Parties expressly agree that the United
Nations Convention on Contracts of the International Sale of Goods does not and
shall not apply to this Agreement

    

    15.2       Alternative
Dispute Resolution.

    

    (a)           In
the event of any dispute relating to this Agreement or a Product License, other
than a dispute relating to the Intellectual Property Rights of any Party, the
Parties shall, prior to instituting any arbitration proceeding or lawsuit (if
applicable) on account of such dispute, refer such dispute to the President of
Licensee and the President of Sam Amer, who shall, as soon as is practicable,
and with the assistance of a mediator as provided below, attempt in good faith
to resolve the dispute. The Parties shall select a mediator who shall serve as
an impartial facilitator of such discussion. If the Parties are unable to agree
upon a mediator, a mediator shall be designated by the American Arbitration
Association (“AAA”). The
mediation shall be treated as a settlement discussion and therefore will be
privileged and confidential. The mediator may not testify for either Party or
serve as an arbitrator in any later proceeding relating to the dispute, and no
recording or transcript shall be made of the mediation proceedings. Each Party
shall bear its own costs in the mediation and the fees and expenses of the
mediator shall be shared equally by the Parties.  If such dispute is
not resolved within ninety (90) days of the first written request for mediation,
either Party may seek arbitration of the matter as set forth herein.
Notwithstanding anything in this Agreement to the contrary, any Party shall be
entitled to seek equitable relief any time if the same shall be necessary to
prevent irreparable harm to any Party.

    

    (b)           Except
with respect to equitable relief and disputes relating to the Intellectual
Property Rights of any Party, which may be obtained in a court of competent
jurisdiction, if the Parties are unable to resolve any dispute through the
mediation provisions set forth above, such dispute shall be finally resolved by
arbitration. The arbitration shall be in accordance with the Commercial
Arbitration Rules (“Rules”) of the AAA which
shall administer the arbitration and act as appointing authority; provided that
the arbitrator(s) appointed with regard to the arbitration proceeding shall not
be the same persons who served as mediated in any mediation between the Parties.
In addition to such discovery as may be provided for in the Rules, the Parties
agree to permit (i) up to three depositions per Party and (ii) up to 15
interrogatories per Party, provided that the arbitrator(s) agree that such
depositions and interrogatories are appropriate after hearing the Parties on the
subject thereof. In the, event of any conflict between the Rules and the
provisions of this Section
15.2, the provisions of this Section 15.2 shall govern. If
the amount in controversy exceeds $50,000, then the arbitration shall be heard
and determined by a panel of three arbitrators selected in accordance with the
procedures of the AAA. The arbitration, including the rendering of the award,
shall take place at such location as the Parties may agree and, if no location
can be agreed, at such location as the AAA directs. Judgment upon the award of
the arbitrators may be entered in any court having jurisdiction thereof. In the
event of any arbitration or other legal proceeding brought by any Party against
another Party with regard to any matter arising out of or related to this
Agreement, each Party hereby expressly agrees that the final award may also
provide for an allocation and division between or among the Parties to the
arbitration, on a basis which is just and equitable under the circumstances, of
all costs of arbitration, including court costs and arbitrators’ fees but not
attorneys’ fees; provided, however, that attorneys’ fees may be awarded against
a Party if the arbitrators specifically find willful misconduct by that
Party.

    
      
         

      

      
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    16.  MISCELLANEOUS
PROVISIONS

    

    16.1       Press Releases. All press
releases or other public communication by any Party relating to this Agreement
or a Product License (other than those communications required by law) shall be
subject to the prior written approval of each Party, such approval not to be
unreasonably withheld or delayed. To the extent a disclosure is required by
Applicable Laws or regulations (including SEC regulations), each Party shall
provide the other with prior written notification of such disclosure. Licensee
shall be free to develop and distribute marketing materials pertaining to
Licensed Products without prior review and approval of Sam Amer. If Sam Amer is
mentioned in marketing materials, distribution of such materials shall require
Sam Amer’s prior written consent (solely as to approval of use of Sam Amber’s
name in connection with such materials), not to be unreasonably withheld or
delayed.

    

    16.2       Use of Names, Logos or
Symbols. Except as otherwise set forth herein and as required by
Applicable Law or regulations, neither Party hereto shall use the name,
Trademarks, logos, physical likeness, employee names or owner symbol of the
other Party hereto for any purpose, without the prior written consent of the
affected Party, such consent not to be unreasonably withheld or delayed so long
as such use of name is limited to objective statements of fact, rather than for
endorsement purposes. Notwithstanding the foregoing, Licensee may, without the
consent of Sam Amer, identify Sam Amer as licensor under this Agreement to
actual or potential investors and investment bankers.

    

    16.3       Notices. All notices required
or permitted to be given under this Agreement or any Product License shall be in
writing and shall be deemed given, upon receipt, if mailed by registered or
certified mail (return receipt requested), postage prepaid, or sent by overnight
delivery (receipt verified) to the address below, or given personally or
transmitted by facsimile to the number indicated below (with confirmation). All
notices to Licensee shall be addressed to Licensee as follows:

    

    Ventrus
Biosciences, Inc.

    8400 E
Crescent Pkwy, Suite 600

    Greenwood
Village, CO 80111

    Attention:
President

    

    Paramount
Biosciences, LLC

    787
Seventh Avenue, 48th
Floor

    New York,
NY I0019

    Attention:
Counsel

    

    All
notices to Sam Amer shall be addressed as follows:

    

    Sam Amer
& Co, Inc.

    PO Box
5685

    Montecito,
CA 93150

    Fax:
805/684-0344

    Attention:
Sam Amer

    

    With a
copy to:

    

    Charles
R. Jacob III, Esq.

    Miller
& Wrubel P.C.

    250 Park
Avenue

    New York,
NY 10177

    Fax:
212/336-3555

    

    Either
Party may, by written notice to the other, designate a new address or fax number
to which notices to it shall thereafter be mailed or faxed.

    
      
         

      

      
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    16.4       Force Majeure. If either Party
is affected by any extraordinary, unexpected and unavoidable event such as acts
of God, floods, fires, riots, war, accidents, labor disturbances, breakdown of
plant or equipment, lack or failure of transportation facilities, unavailability
of equipment, sources of supply or labor, raw materials, power or supplies,
infectious diseases of animals, or by the reason of any law, order,
proclamation, regulation, ordinance, demand or requirement of the relevant
government or any sub-division, authority or representative thereof, or by
reason of any other cause whatsoever beyond its reasonable control (provided
that in all such cases the Party claiming relief on account of such event can
demonstrate that such event was extraordinary, unexpected and unavoidable by the
exercise of reasonable care) (“Force Majeure”) it shall as soon as reasonably
practicable notify the other Party of the nature and extent thereof and take all
reasonable steps to overcome the Force Majeure and to minimize the loss
occasioned to that other Party. Neither Party shall be deemed to be in breach of
this Agreement or otherwise be liable to the other Party by reason of any delay
in performance or nonperformance of any of its obligations hereunder to the
extent that such delay and nonperformance is due to any Force Majeure of which
it has notified the other Party and the time for performance of that obligation
shall be extended accordingly.

    

    16.5       Entirety of Agreement. This
Agreement, including the exhibits and/or attachments, and the CDA set forth the
entire agreement and understanding of the Parties relating to the subject matter
contained herein and merge and supersede all prior and contemporaneous
discussions and agreements between them, whether written or oral. No Party shall
be bound by any representation other than as expressly stated in this Agreement,
or by a written amendment to this Agreement signed by authorized representatives
of both Parties.

    

    16.6       Non-Waiver. The failure of a
Party in any one or more instances to insist upon strict performance of any of
the terms and conditions of this Agreement shall not be construed as a waiver or
relinquishment, to any extent, of the right to assert or rely upon any such
terms or conditions on any future occasion.

    

    16.7       Construction. The section
headings contained in this Agreement are for reference purposes only and will
not affect in any way the meaning or interpretation of this
Agreement.  As used in this Agreement the words “include” and
“including,” and variations thereof, will not be deemed to be terms of
limitation, but rather will be deemed to be followed by the words “without
limitation.” When used in this Agreement, the words “hereof,” “herein,”
“hereunder” and words of similar import shall refer to the Agreement as a whole
and not to any particular provision of this Agreement.  Any rule of
construction to the effect that ambiguities are to be resolved against the
drafting Party will not be applied in the construction or interpretation of this
Agreement.

    

    16.8       Disclaimer of Agency. The
Parties hereto are independent contractors. Nothing in this Agreement will be
deemed to create an agency, employment, partnership, fiduciary or joint venture
relationship between the Parties. Neither Party has, and nor will it represent
to any Third Party that it has, the power or authority to represent, act for,
bind or otherwise create or assume any obligation on behalf of the other Party
for any purpose whatsoever.

    

    16.9       Severability. If any term,
covenant or condition of this Agreement or , or the application thereof to any
Party or circumstance shall, to any extent, be held to be invalid or
unenforceable, then: (a) such provision will be changed and interpreted to
accomplish the objectives of such provision to the greatest extent possible
under applicable law, and (b) the remainder of this Agreement, or the
application of such term, covenant or condition to Parties or circumstances
other than those as to which it is held invalid or unenforceable, shall not be
affected thereby and each term, covenant or condition of this Agreement shall be
valid and be enforced to the fullest extent permitted by law.

    

    16.10     Assignment. Neither Party may
assign or transfer this Agreement, in whole or in part, by operation of law or
otherwise, without the prior written consent of the other Party (which consent
shall not be unreasonably withheld), except as set forth herein. Notwithstanding
the foregoing, Sam Amer’s approval shall not be required for (i) an assignment
in connection with a sale of all or substantially all Licensee’s assets to a
Third Party, or a merger or other business reorganization of Licensee (in such
instance, Licensee shall provide Sam Amer with notice thereof), or (ii) an
assignment to an Affiliate of Licensee. Licensee shall not assign this Agreement
prior to the termination or fulfillment of Guarantor’s obligations under Section 17.1 without the prior
written consent of Sam Amer. The Parties may discharge any obligations and
exercise any right hereunder through an Affiliate, provided that the Parties
shall remain ultimately responsible for the proper discharge of all obligations
hereunder notwithstanding any assignment or delegation to any such Affiliate.
Any attempted assignment or transfer in violation of the foregoing provisions
shall be null and void from the beginning any of no force or effect. This
Agreement shall be binding on and inure to the benefit of the Parties and their
respective successors and permitted assigns.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    16.11     Interpretation. This Agreement
has been jointly prepared by the Parties and their respective legal counsel and
shall not be strictly construed against either Party.

    

    16.13     Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be an original
and all of which shall constitute together the same document.

    

    16.14     Further Actions. Each Party
agrees to execute, acknowledge, and deliver such further instruments, and to do
all such other acts, as may be necessary or appropriate to carry out the
purposes and intent of this Agreement (including any Product
Schedule).

    

    17.  GUARANTEE

    

    17.1       Guarantee. Subject to the
terms and conditions set forth in this Section 17, Guarantor
unconditionally and irrevocably guarantees to Sam Amer the full and timely
payment of all License Fees set forth in Section 6.1 of this Agreement,
the consulting fees set forth in Section 6.5 of this Agreement
and all other payment obligations of Licensee hereunder. The guarantee
obligation set forth in this Section 17 shall automatically
terminate upon (i) Licensee’s completion of financings resulting in Licensee’s
actual receipt of ten million dollars ($10,000,000) in the aggregate or (ii)
upon execution of a sublicense pursuant to Section 2.3.

    

    17.2       Guarantor
agrees that this Guaranty constitutes a guaranty of payment and waiver of any
obligation of Licensor to pursue any remedies against Licensee otherwise
available under Applicable Laws, provided that Licensor has made due demand upon
Licensee and Licensee has defaulted upon payment.

    

    17.3       Guarantor
hereby expressly waives and surrenders any defense to Guarantor’s liability
hereunder based upon any of the following:

    

    (a)  
        any extension or renewal of any
of the obligations of Licensee, in whole or in part,without notice to, or
further assent from, Guarantor;

    

    (b)           the
voluntary or involuntary liquidation, dissolution, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of Licensee;

    

    (c)           forbearance
or delay or other act or omission of Sam Amer or its failure to proceed promptly
or otherwise, or by reason of any further dealings between Licensee and Sam
Amer, solely to the extent the foregoing does not materially affect the rights
and/or remedies of Guarantor under Applicable Law; or

    

    (d)           any
other circumstances that might otherwise constitute a legal or equitable
discharge of Licensee (including a discharge in bankruptcy), it being the
purpose, intent and understanding of Guarantor that Guarantor’s obligations
hereunder are absolute and unconditional under any and all circumstances except
as herein provided.

    

    [Signatures
on next page]

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the
date first written

    above.

    

    THIS
AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE
PARTIES.

    

    
      
        
          
            
              
                
                  
                    	Ventrus,
  Inc.
	 	 
	
                            By: 

                          	
                            /s/ Thomas Rowland

                          
	
                              Thomas
      Rowland

                          
	
                            Title:            President

                          
	 
      
	
                            Date:

                          	
                            3-7-08

                          
	 
      
	
                            Sam
      Amer & Co, Inc.

                          
	 
      
	
                            By: 

                          	
                            /s/ Sam Amer

                          
	
                              Sam
      Amer

                          
	
                            Title:            President

                          
	 
      
	
                            Date:

                          	
                            2-17-08

                          

                  

                

              

            

          

        

      

    

    

    Guarantor
hereby acknowledges and undertakes to perform the obligations described in Sections 13 and
17.

    

    
      
        	
                Paramount
      Biosciences, LLC

              
	 
      
	
                By:

              	
                /s/ J. Jay
      Lobell  03/10/2008

              
	
                 J.
      Jay Lobell

              
	
                Title:       President
      & COO

              

      

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    SCHEDULE
A

    

    Licensed
Patents

    

    Annex
1A (AMR-11)

    

    
      
        
          
            
              
                
                  
                    
                      	
                              COUNTRY

                            	 
      	
                              APPLICATION NO.

                            	 
      	
                              FILING DATE

                            	 
      	
                              PATENT NO.

                            	 
      	
                               GRANT DATE

                            	 
      	
                              TITLE

                            	 
      	
                              STATUS

                            
	
                              Australia

                            	 
      	
                              60377/98

                            	 
      	
                              01/23/93

                            	 
      	
                              750603

                            	 
      	
                              12/12/02

                            	 
      	
                              S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                              CINNAMANILIDE

                            	 
      	
                              Active

                            
	
                              Canada

                               

                            	 
      	
                              2282840

                            	 
      	
                              01/23/98

                            	 
      	 
      	 
      	 
      	 
      	
                              S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                              CINNAMANILIDE

                            	 
      	
                              Active

                            
	
                              EPO

                            	 
      	
                              98903668.6

                            	 
      	
                              01/23/98

                            	 
      	
                              973741

                            	 
      	
                              6/11/03

                            	 
      	
                              S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                              CINNAMANILIDE

                            	 
      	
                              Active

                            
	
                              France

                            	 
      	
                              98903668.6

                            	 
      	
                              1/23/98

                            	 
      	
                              0973741

                            	 
      	
                              6/11/03

                            	 
      	
                              S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                              CINNAMANILIDE

                            	 
      	
                              Active

                            
	
                              Germany

                            	 
      	
                              98903668.6

                            	 
      	
                              1/23/98

                            	 
      	
                              69815518.1

                            	 
      	
                              6/11/03

                            	 
      	
                              S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                              CINNAMANILIDE

                            	 
      	
                              Active

                            
	
                              Italy

                            	 
      	
                              98903668.6

                            	 
      	
                              1/23/98

                            	 
      	
                              EP973741

                            	 
      	
                              6/11/03

                            	 
      	
                              S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                              CINNAMANILIDE

                            	 
      	
                              Active

                            
	
                              Spain

                            	 
      	
                              98903668.6

                            	 
      	
                              1/23/98

                            	 
      	
                              EP973741

                            	 
      	
                              6/11/03

                            	 
      	
                              S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                              CINNAMANILIDE

                            	 
      	
                              Active

                            
	
                              Switzerland

                            	
                                

                            	
                              98903668.6

                            	
                                

                            	
                              1/23/98

                            	
                                

                            	
                              EP973741

                            	
                                

                            	
                              6/11/03

                            	
                                

                            	
                              S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                              CINNAMANILIDE

                            	
                                

                            	
                              Active

                            

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    AMR-11

    

    
      
        	
                United
      Kingdom

              	 
      	
                98903668.6

              	 
      	
                1/23/98

              	 
      	
                EP973741

              	 
      	
                6/11/03

              	 
      	
                S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                CINNAMANILIDE

              	 
      	
                Active

              
	
                Hong
      Kong

              	 
      	
                00104603.1

              	 
      	
                07/25/00

              	 
      	 
      	 
      	 
      	 
      	
                S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                CINNAMANILIDE

              	 
      	
                Abandoned

              
	
                Japan

              	 
      	
                520835/98

              	 
      	
                01/23/98

              	 
      	
                3492378

              	 
      	 
      	 
      	
                S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                CINNAMANILIDE

              	 
      	
                Active

              
	
                Korea

              	 
      	
                10-997007763

              	 
      	
                01/23/98

              	 
      	 
      	 
      	 
      	 
      	
                S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                CINNAMANILIDE

              	 
      	
                Pending

              
	
                Norway

              	 
      	
                19994181

              	 
      	
                01/23/98

              	 
      	 
      	 
      	 
      	 
      	
                S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                CINNAMANILIDE

              	 
      	
                Pending

              
	
                United
      States

              	
                  

              	
                08/810,503

              	
                  

              	
                02/28/97

              	
                  

              	
                5,780,487

              	
                  

              	
                 07/14/98

              	
                  

              	
                S-2'-[2-(1-METHYL-2-
      PIPERIDYL)ETHYL]

                CINNAMANILIDE

              	
                  

              	
                Active

              

      

    

    

    Annex
1B (AMER 818389)

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                COUNTRY

                              	 
      	
                                APPLICATION NO.

                              	 
      	
                                FILING DATE

                              	 
      	
                                PATENT NO.

                              	 
      	
                                GRANT DATE

                              	 
      	
                                TITLE

                              	 
      	
                                STATUS

                              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                United
      States

                              	 
      	
                                07/818,389

                              	 
      	
                                01/09/92

                              	 
      	
                                5,266,571

                              	 
      	
                                11/30/93

                              	 
      	
                                Treatment
      of Hemorrhoids with 5-HT2 Antagonists

                              	 
      	
                                Active

                              
	
                                United
      States

                              	 
      	
                                08/512,235

                              	 
      	
                                08/07/95

                              	 
      	
                                5,605,902

                              	 
      	
                                02/25/97

                              	 
      	
                                5-HT2
      Receptor Antagonist Compositions Useful in Treating Venous
      Conditions

                              	 
      	
                                Active

                              
	
                                EPO

                              	 
      	
                                 9390697935

                              	 
      	
                                02/19/93

                              	 
      	
                                684816

                              	 
      	
                                02/04/04

                              	 
      	
                                5-HT2
      Receptor Antagonist Compositions Useful in Treating Venous
      Conditions

                              	 
      	
                                Active

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
              Korea

            	 
      	
              703438/95

            	 
      	
              02/19/93

            	 
      	
              0278522

            	 
      	
              10/20/00

            	 
      	
              5-HT2
      Receptor Antagonist Compositions Useful in Treating Venous
      Conditions

            	 
      	
              Active

            
	
              Japan

            	 
      	
              518914/94

            	 
      	
              02/19/93

            	 
      	
              2807092

            	 
      	
              07/24/98

            	 
      	
              5-HT2
      Receptor Antagonist Compositions Useful in Treating Venous
      Conditions

            	 
      	
              Active

            
	
              Australia

            	 
      	
              37748/93

            	 
      	
              02/19/93

            	 
      	 
      	 
      	 
      	 
      	
              5-HT2
      Receptor Antagonist Compositions Useful in Treating Venous
      Conditions

            	 
      	
              Abandoned

            
	
              Canada

               

            	
                

            	
              2156481

            	
                

            	
              2/19/93

            	
                

            	 
      	
                

            	 
      	
                

            	
              5-HT2
      Receptor Antagonist Compositions Useful in Treating Venous
      Conditions

            	
                

            	
              Active

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
B

    

    Committee
Members

    

    Joint Development Committee
(JDC)

    

    Sam Amer
members:

    1.  [*]

    2.  [*]

    3.  [*]

    

    Licensee
members:

    1.

    2.

    3.

    

    Joint Commercialization
Committee (JCC)

    

    Sam Amer
members:

    1.  [*]

    2.  [*]

    3.  [*]

    

    Licensee
members:

    1.

    2.

    3.

    

    Confidential

    
       

      
        
 
[*] Confidential treatment requested; certain information omitted and filed
separately with the SEC.

    

    
 

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    AMENDMENT
NO. 1 TO LICENSE AGREEMENT

    

    AMENDMENT NO. 1 TO LICENSE
AGREEMENT, dated July 31, 2008 (this “Amendment”), between
SAM AMER & CO., INC.
(the “Licensor”), VENTRUS BIOSCIENCES, INC. (the
“Licensee”),
and PARAMOUNT BIOSCIENCES,
LLC (the “Guarantor”).

    

    WHEREAS, the Licensor, the
Licensee, and the Guarantor have entered into that certain License Agreement,
dated as of March 10, 2008 (the “License
Agreement”);

    

    WHEREAS, the parties hereto
desire to amend the License Agreement as set forth herein.

    

    NOW, THEREFORE, in
consideration of the foregoing and for other consideration the sufficiency and
receipt of which is hereby acknowledged by the parties, it is hereby agreed by
and between the parties as follows:

    

    1.           Capitalized
Terms. Terms used
herein but not otherwise defined shall have the meaning ascribed thereto in the
License Agreement

    

    2.           Amendments. Section 6.1 of the License
Agreement is hereby deleted in its entirety and replaced with the following new
Section 6.1:

    

    6.1           License Fees. As
consideration for the licenses granted hereunder, including of the Sam Amer
Patents and the Sam Amer Know-How, Licensee shall pay Sam Amer the license fees
(“License Fees”) as set forth below within thirty (30) days after achievement of
the applicable milestone event.  Each License Fee shall be payable one
time only, regardless of the number of Licensed Products that satisfy the
condition that triggers such payment.

     

    
      	
              Milestone

              U.S. Territory

            	 
      	
              License Fee

              to Amer

            
	
              Execution
      of this Agreement

               

              No
      contingencies on initial License Fee beyond execution of this
      Agreement.

            	 
      	
              $2,050,000
      to be paid as follows: (a) Initial payment of $550,000 upon execution of
      this Agreement; and (b) remaining $1,500,000 to be paid in three equal
      installments
      of $500,000 on the following dates: September 15, 2008; November 10, 2008;
      and March 10, 2009. In addition, a one-time payment of $15,000 to be paid
      on or before August 8, 2008.

            
	 	 	 
	
              Successful
      Completion of Phase III Trials.

            	 
      	
              $1
      (one) million

            
	 	 	 
	
              If
      the Phase III Trials are not successfully completed by July 2009, Licensee
      shall pay $7,500 per month to Sam Amer until the Successful Completion of
      the Phase III Trials. Such payments will begin at July
    2009.

            	 
      	 
      
	 	 	 
	
              Notwithstanding
      the foregoing, if safety, efficacy or other regulatory issues prevent the
      completion of the Phase Ill Trials (a “Non-completion Event”), then
      Licensee’s payment of $7,500 per month shall cease upon the Non-Completion
      Event.

            	 
      	 
      
	 	 	 
	
              Upon
      Licensee’s Submission of an NDA to the FDA.

            	 
      	
              $1
      (one) million

            
	 	 	 
	
              If
      an NDA is not submitted by September 2010 $7,500 per month will be paid
      until such submission. Payment will begin at September
    2010.

            	 
      	 
      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  	
                          Notwithstanding
      the foregoing, if safety, efficacy or other regulatory issues prevent the
      submission of NDA (a “Non-completion Event”), then Licensee’s payment of
      $7,500 per month shall cease upon the Non-Completion
Event.

                        	 
      	 
      
	 	 	 
	
                          NDA
      Approval by FDA

                        	 
      	
                          $[*]

                        
	 	 	 
	
                          At
      one (1) Year Anniversary following NDA

                          Approval
      by FDA

                        	 
      	
                          $[*]

                        
	 	 	 
	
                          At
      $[*] cumulative lifecycle Net Sales

                          attainment

                        	 
      	
                          $[*]

                        
	 	 	 
	
                          At
      $[*] cumulative lifecycle Net Sales

                          attainment

                        	 
      	
                          $[*]

                        
	 	 	 
	
                          At
      $[*] cumulative lifecycle Net Sales

                          attainment

                        	 
      	
                          $[*]

                        
	 	 	 
	
                          At
      Regulatory Approval for OTC sale

                        	
                            

                        	
                          $[*]

                        

                

              

            

          

        

      

    

     

    3.           Counterparts. This Amendment may be
executed in any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument. Facsimile counterpart signatures to this Amendment shall be
acceptable and binding.

    

    4.           Applicable
Law. This
Amendment shall be governed by and construed in accordance with the laws of New
York without regard to its conflict of law principles that would require the
application of the laws of any other jurisdiction. The parties hereto expressly
agree that the United Nations Convention on Contracts of the International Sale
of Goods does not and shall not apply to this Amendment.

     

    5.           No Other
Amendments.
Except as expressly set forth herein, the License Agreement remains in full
force and effect in accordance with its terms and nothing contained herein shall
be deemed to be a waiver, amendment, modification or other change of any term,
condition or provision of the License Agreement.

    

    
      
        

      

    

     
[*] Confidential treatment requested; certain information omitted and filed
separately with the SEC.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    6.           Effectiveness. This Amendment shall become
effective immediately upon the date hereof.

    

    7.           References
to the License Agreement. From and after the date
hereof, all references in the License Agreement and any other documents to the
License Agreement shall be deemed to be references to the License Agreement
after giving effect to this Amendment.

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Amendment No. 1 to License Agreement as of the
date first written above.

    

    
      
        
          
            	
                    SAM
      AMER & CO., INC.

                  	 
      	
                    VENTRUS
      BIOSCIENCES, INC.

                  
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	
                    /s/ M. S.
      Amer       
    7/30/08

                  	 
      	
                    By:

                  	
                    /s/ Thomas Rowland

                  
	 
      	
                     Name:  M.
      S. Amer

                  	 
      	 
      	
                     
      Name:  Thomas Rowland

                  
	 
      	
                     Title:  President

                  	 
      	 
      	
                     
      Title:  President &
CEO

                  

          

        

      

    

    

    
      
        	 
      
	
                PARAMOUNT
      BIOSCIENCES, LLC

              

      

    

    

    
      
        
          
            
              
                
                  
                    	
                            By:  

                          	/s/
      Lindsay A. Rosenwald, MD 
	 
      	
                             
      Name:

                          	
                            Lindsay
      A. Rosenwald, MD

                          
	 
      	
                             
      Title:

                          	
                            Sole
      Member

                          
	 
      	 
      	 
      
	 
      	 
      	
                            Legal
      Approval

                          
	 
      	
                             
      Initial:

                          	
                            MHD

                          
	 
      	
                             
      Date:

                          	 
      

                  

                

              

            

          

        

      

    

    

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    AMENDMENT
NO. 2 TO LICENSE AGREEMENT

    

    AMENDMENT NO. 2 TO LICENSE
AGREEMENT, dated September 29, 2008 (this “Amendment”), between
SAM AMER & CO., INC.
(the “Licensor”), VENTRUS BIOSCIENCES, INC. (the “Licensee”), and PARAMOUNT BIOSCIENCES, LLC
(the “Guarantor”).

    

    WHEREAS, the Licensor, the
Licensee, and the Guarantor have entered into that certain License Agreement,
dated as of March 10, 2008, and Amendment No. 1 to License Agreement, dated as
of July 31, 2008 (together with all amendments and modifications to date, the
“License
Agreement”);

    

    WHEREAS, the parties hereto
desire to amend the License Agreement as set forth herein.

    

    NOW, THEREFORE, in
consideration of the foregoing and for other consideration the sufficiency and
receipt of which is hereby acknowledged by the parties, it is hereby agreed by
and between the parties as follows:

    

    1.           Capitalized
Terms. Terms used
herein but not otherwise defined shall have the meaning ascribed thereto in the
License Agreement.

    

    2a.           Amendments. Section 6.1 of the License
Agreement is hereby deleted in its entirety and replaced with the following new
Section 6.1:

    

    
      	
               
      

            	
              6.1

            	
              License Fees.
      As consideration for the licenses granted hereunder, including of the Sam
      Amer Patents and the Sam Amer Know-How, Licensee shall pay Sam Amer the
      license fees (“License Fees”) as set forth below within thirty (30) days
      after achievement of the applicable milestone event. Each License Fee
      shall be payable one time only, regardless of the number of Licensed
      Products that satisfy the condition that triggers such
      payment.

            

    

    

    
      
        
          
            
              	
                      Milestone

                      U.S. Territory

                    	 
      	
                      License Fee

                      to Amer

                    
	
                      Execution
      of this Agreement.

                       

                      No
      contingencies on initial License Fee beyond execution of this
      Agreement.

                    	 
      	
                      $2,050,000
      to be paid as follows: (a) Initial payment of $550,000 upon execution of
      this Agreement (which amount each of the parties acknowledge has been
      paid); and (b) remaining $1,500,000 to be paid in two installments as
      follows: $1,000,000 to be paid on or before November 15, 2008; $500,000 to
      be paid on or before March 10, 2009. In addition, a one-time payment of
      $15,000 to be paid on or before August 8, 2008 (which amount each of the
      parties acknowledge has been paid); and a one-time payment of $25,000 to
      be paid on or before October 10, 2008. For the avoidance of doubt, the
      thirty (30) day payment period referenced in this Section 6.1 shall not
      apply to either the $1,000,000 November 15th
      payment or the $25,000 October 10th
      payment.  Said 30 day payment period will continue to apply to
      the installment payment of $500,000 due on or before March 10,
      2009.

                    

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Successful
      Completion of Phase III Trials.

                                    	 
      	
                                      $1
      (one) million

                                    
	 	 	 
	
                                      If
      the Phase III Trials are not successfully completed by July 2009, Licensee
      shall pay $7,500 per month to Sam Amer until the Successful Completion of
      the Phase III Trials. Such payments will begin at July
    2009.

                                    	 
      	 
      
	 	 	 
	
                                      Notwithstanding
      the foregoing, if safety, efficacy or other regulatory issues prevent the
      completion of the Phase III Trials (a “Non-completion Event”), then
      Licensee’s payment of $7,500 per month shall cease upon the
      Non-Cornpletion Event.

                                    	 
      	 
      
	 	 	 
	
                                      Upon
      Licensee’s Submission of an NDA to the FDA.

                                    	 
      	
                                      $1
      (one) million

                                    
	 	 	 
	
                                      If
      an NDA is not submitted by September 2010 $7,500 per month will be paid
      until such submission. Payment will begin at September
    2010.

                                    	 
      	 
      
	 	 	 
	
                                      Notwithstanding
      the foregoing, if safety, efficacy or other regulatory issues prevent the
      submission of NDA (a “Non-completion Event”), then Licensee’s payment of
      $7,500 per Month shall cease upon the Non-Completion
Event.

                                    	 
      	 
      
	 	 	 
	
                                      NDA
      Approval by FDA

                                    	 
      	
                                      $[*]

                                    
	 	 	 
	
                                      At
      one (1) Year Anniversary following NDA Approval by FDA

                                    	 
      	
                                      $[*]

                                    
	 	 	 
	
                                      At
      $[*] cumulative lifecycle Net Sales attainment

                                    	 
      	
                                      $[*]

                                    
	 	 	 
	
                                      At
      $[*] cumulative lifecycle Net life cycle attainment

                                    	 
      	
                                      $[*]

                                    
	 	 	 
	
                                      At
      $[*] cumulative life cycle Net Sales attainment

                                    	 
      	
                                      $[*]

                                    
	 	 	 
	
                                      At
      Regulatory Approval for OTC sale

                                    	
                                        

                                    	
                                      $[*]

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    2b.           Amendments. Section 6.5 of the License
Agreement is hereby deleted in its entirety and replaced with the following new
Section 6.5:

    

    
      	
               
      

            	
              6.5

            	
              Consulting Fee.
      Licensee will pay Sam Amer a consulting fee of $7,500.00 per month for the
      first sixteen (16) months following the effective date of this
      Agreement.

            

    

    

    3.           Counterparts. This Amendment may be
executed in any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument. Facsimile counterpart signatures to this Amendment shall be
acceptable and binding.

    
       

      
        
 
[*] Confidential treatment requested; certain information omitted and filed
separately with the SEC.

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4.           Applicable
Law. This
Amendment shall be governed by and construed in accordance with the laws of New
York without regard to its conflict of law principles that would require the
application of the laws of any other jurisdiction. The parties hereto expressly
agree that the United Nations Convention on Contracts of the International Sale
of Goods does not and shall not apply to this Amendment.

    

    5.           No Other
Amendments.
Except as expressly set forth herein, the License Agreement remains in full
force and effect in accordance with its terms and nothing contained herein shall
be deemed to be a waiver, amendment, modification or other change of any term,
condition or provision of the License Agreement.

    

    6.           Effectiveness. This Amendment shall become
effective immediately upon the date hereof.

    

    7.           References
to the License Agreement. From and after the date
hereof, all references in the License Agreement and any other documents to the
License Agreement shall be deemed to be references to the License Agreement
after giving effect to this Amendment.

    

    * * * *
*

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this Amendment No. 2 to License Agreement as of the
date first written above.

    

    
      
        
          
            	
                    SAM
      AMER & CO., INC.

                  	 
      	
                    VENTRUS
      BIOSCIENCES, INC.

                  
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	
                    /s/ Sam Amer

                  	 
      	
                    By:

                  	
                    /s/ Thomas Rowland

                  
	 
      	
                     
      Name:  Sam Amer

                  	 
      	 
      	
                     
      Name:  Thomas Rowland

                  
	 
      	
                     
      Title:  President

                  	 
      	 
      	
                     
      Title:  President &
CEO

                  

          

        

      

    

    

    
      
        	 
      
	
                PARAMOUNT
      BIOSCIENCES, LLC

              

      

    

    

    
      
        
          
            
              	
                      By:

                    	
                      /s/ Lindsay A. Rosenwald,
  MD

                    
	 
      	
                       Name:

                    	
                      Lindsay
      A. Rosenwald, MD

                    
	 
      	
                       Title:

                    	
                      Sole
      Member

                    
	 
      	 
      	 
      
	 
      	 
      	
                      Legal
      Approval

                    
	 
      	
                       Initial:

                    	
                      MHD

                    
	 
      	
                       Date:

                    	 
      

            

          

        

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    AMENDMENT
NO. 3 TO LICENSE AGREEMENT

    

    AMENDMENT NO. 3 TO LICENSE
AGREEMENT, dated November 17, 2008 (this “Amendment”), between
SAM AMER & CO., INC.
(the “Licensor”), VENTRUS
BIOSCIENCES, INC. (the “Licensee”), and PARAMOUNT BIOSCIENCES, LLC
(the “Guarantor”).

    

    WHEREAS, the Licensor, the
Licensee, and the Guarantor have entered into that certain License Agreement,
dated as of March 10, 2008, and Amendment No .1 to License Agreement, dated as
of July 31, 2008, and Amendment No. 2 to License Agreement, dated as of
September 29, 2008 (together with all amendments and modifications to date, the
“License
Agreement”);

    

    WHEREAS, the parties hereto
desire to amend the License Agreement as set forth herein.

    

    NOW, THEREFORE, in
consideration of the foregoing and for other consideration the sufficiency and
receipt of which is hereby acknowledged by the parties, it is hereby agreed by
and between the parties as follows:

    

    1.           Capitalized
Terms. Terms used
herein but not otherwise defined shall have the meaning ascribed thereto in the
License Agreement.

    

    2.           Amendments. Section 6.1 of the License
Agreement is hereby deleted in its entirety and replaced with the following new
Section 6.1:

    

    
      	
               
      

            	
              6.1

            	
              License Fees.
      As consideration for the licenses granted hereunder, including of the Sam
      Amer Patents and the Sam Amer Know-How, Licensee shall pay Sam Amer the
      license fees (“License Fees”) as set forth below within thirty (30) days
      after achievement of the applicable milestone event. Each License Fee
      shall be payable one time only, regardless of the number of Licensed
      Products that satisfy the condition that triggers such
      payment.

            

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Milestone

                                        U.S. Territory

                                      	 
      	
                                        License Fee

                                        to Amer

                                      
	
                                        Execution
      of this Agreement.

                                         

                                        No
      contingencies on initial License Fee beyond execution of this
      Agreement.

                                      	 
      	
                                        $2,050,000
      to be paid as follows:  (a) Initial payment of $550,000 upon
      execution of this Agreement (which amount each of the parties acknowledge
      has been paid); and (b) remaining $1,500,000 to be paid in installments as
      follows:

                                      
	 	 	 
	 	 	
                                        $50,000
      to be paid on or before November 17, 2008;

                                        $100,000
      to be paid on or before January 15, 2009;

                                        $100,000
      to be paid on or before February 15, 2009;

                                        $500,000
      to be paid on or before March 10, 2009; and

                                        $750,000
      to be paid on or before March 15, 2009.

                                      
	 	 	 
	 	 	In
      addition, (i) a one-time penalty payment of $15,000 to be paid on or
      before August 8, 2008 (which amount each of the parties acknowledge has
      been paid), (ii) a one-time penalty payment of $25,000 to be paid on or
      before October 10, 2008 (which amount each of the parties acknowledge has
      been paid), and (iii) a one-time penalty payment of $100,000 to be paid on
      or before November 17,
2008.

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                  	 	For
      the avoidance of doubt, the thirty (30) day payment period referenced in
      this Section 6.1 shall not apply to the installment payments listed in
      this section that are due November 17, 2008, January 15, 2009, February
      15, 2009, or March 15, 2009.  Said 30 day payment period shall
      continue to apply to the installment payment due March 10,
  2009.
	 	 	 
	 	 	
                                    Notwithstanding
      any of the foregoing to the contrary, in the event Licensee has sold its
      equity securities to investors with aggregate gross proceeds to Licensee
      of at least $10,000,000 (a “Financing”) on or before March 15, 2009, then
      the Installment payments due as of March 15, 2009 shall be accelerated
      such that the balance of such remaining installments shall be due to
      Licensor within thirty (30) days of the closing of the Financing or March
      15, 2009 whichever is earlier.

                                  
	 	 	 
	
                                    Successful
      Completion of Phase III Trials.

                                  	 
      	
                                    $1
      (one) million

                                  
	 	 	 
	
                                    If
      the Phase III Trials are not successfully completed by July 2009, Licensee
      shall pay $7,500 per month to Sam Amer until the Successful Completion of
      the Phase III Trials. Such payments will begin at July
    2009.

                                  	 
      	 
      
	 	 	 
	
                                    Notwithstanding
      the foregoing, if safety, efficacy or other regulatory issues prevent the
      completion of the Phase III Trials (a “Non-completion Event”), then
      Licensee’s payment of $7,500 per month shall cease upon the Non-Completion
      Event.

                                  	 
      	 
      
	 	 	 
	
                                    Upon
      Licensee’s Submission of an NDA to the

                                    FDA.

                                  	 
      	
                                    $1
      (one) million

                                  
	 	 	 
	
                                    If
      an NDA is not submitted by September 2010 $7,500 per month will be paid
      until such submission. Payment will begin at September
    2010.

                                  	 
      	 
      
	 	 	 
	
                                    Notwithstanding
      the foregoing, if safety, efficacy or other regulatory issues prevent the
      submission of NDA (a “Non-completion Event”), then Licensee’s payment of
      $7,500 per month shall cease upon the Non-Completion
Event.

                                  	 
      	 
      
	 	 	 
	
                                    NDA
      Approval by FDA

                                  	 
      	
                                    $[*]

                                  
	 	 	 
	
                                    At
      one (1) Year Anniversary following NDA Approval by FDA

                                  	 
      	
                                    $[*]

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        

      

    

    [*]
Confidential treatment requested; certain information omitted and filed
separately with the SEC.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

      
        
          
            	
                    At
      $[*] cumulative lifecycle Net Sales attainment

                  	 
      	
                    $[*]

                  
	 	 	 
	
                    At
      $[*] cumulative lifecycle Net life cycle attainment

                  	 
      	
                    $[*]

                  
	 	 	 
	
                    At
      $[*] cumulative life cycle Net Sales attainment

                  	 
      	
                    $[*]

                  
	 	 	 
	
                    At
      Regulatory Approval for OTC sale

                  	
                      

                  	
                    $[*]

                  

          

        

      

    

    

    3.           Consulting
Fee. The parties
hereby agree that, in satisfaction of outstanding consulting fee payments due to
the Licensor under Section 6.5 of the License Agreement, the Licensee (or the
Guarantor on behalf of the Licensee) shall pay to the Licensor an amount of
$15,000 on or before November 17, 2008. Regular monthly payments to Licensor of
consulting fees equal to $7,500 per month pursuant to Section 6.5 of the License
Agreement shall resume on a monthly basis beginning on or before December 1,
2008.

    

    4.           Counterparts. This Amendment may be
executed in any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument. Facsimile counterpart signatures to this Amendment shall be
acceptable and binding.

    

    5.           Applicable
Law. This
Amendment shall be governed by and construed in accordance with the laws of New
York without regard to its conflict of law principles that would require the
application of the laws of any other jurisdiction. The parties hereto expressly
agree that the United Nations Convention on Contracts of the International Sale
of Goods does not and shall not apply to this Amendment.

    

    6.           No Other
Amendments.
Except as expressly set forth herein, the License Agreement remains in full
force and effect in accordance with its terms and nothing contained herein shall
be deemed to be a waiver, amendment, modification or other change of any term,
condition or provision of the License Agreement.

    

    7.           Effectiveness. This Amendment shall become
effective immediately upon the date hereof.

    

    8.           References
to the License Agreement. From and after the date
hereof, all references in the License Agreement and any other documents to the
License Agreement shall be deemed to be references to the License Agreement
after giving effect to this Amendment.

    

    * * * *
*

    
       

      
        
 
[*] Confidential treatment requested; certain information omitted and filed
separately with the SEC.

    

    

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this Amendment No. 3 to License Agreement as of the
date first written above.

    

    
      
        
          
            	
                    SAM
      AMER & CO., INC.

                  	 
      	
                    VENTRUS
      BIOSCIENCES, INC.

                  
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	
                    /s/ Sam Amer     
      11-18-08

                  	 
      	
                    By:

                  	
                    /s/ Thomas Rowland

                  
	 
      	
                     
      Name:  Sam Amer

                  	 
      	 
      	
                     
      Name:  Thomas Rowland

                  
	 
      	
                     
      Title:  President

                  	 
      	 
      	
                     
      Title:  President &
CEO

                  

          

        

      

    

     

    
      
        
          
            
              	
                      PARAMOUNT
      BIOSCIENCES, LLC

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                      Legal
      Approval

                    
	
                      By:

                    	
                      /s/ Lindsay A. Rosenwald,
MD

                    	 
      	
                      Initial:

                    	
                      MHD

                    
	 
      	
                       
      Name:  Lindsay A. Rosenwald, MD

                    	 
      	
                      Date:

                    	 
      
	 
      	
                       
      Title:  Sole Member

                    	 
      	 
      	 
      

            

          

        

      

    

     

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    ExecutionVENTRUS
BIOSCIENCES, INC.

    8400 E.
Crescent Pkwy, Suite 600

    Greenwood
Village, CO 80111

    

    
      	 
      	
              March
      13, 2009

            

    

     

    Sam Amer
& Co., Inc.

     P.O.
Box 5685

     Montecito,
CA 93150

    Attn: Sam
Amer

    

    Dear
Sam:

    

    Reference
is hereby made to the License Agreement, dated as of March 10, 2008, between Sam
Amer & Co., Inc. (“Amer”), Ventrus
Biosciences, Inc. (“Ventrus”), and
Paramount Biosciences, LLC (“Paramount”) as
amended by Amendment No .1 to License Agreement, dated as of July 31, 2008,
Amendment No. 2 to License Agreement, dated as of September 29, 2008, and
Amendment No. 3 to License Agreement, dated as of November 17, 2008 (taken
together, including all amendments and alterations to date, the “License Agreement”).
To the extent this letter agreement is in conflict with any provision of the
License Agreement, such provision of the License Agreement is hereby superseded
and replaced in all respects by the content of this Letter
Agreement.

    

    Amer,
Ventrus, and Paramount hereby agree that the payments due to Amer under the
License Agreement by Ventrus (or Paramount, as guarantor) on (i) March 10, 2009
(subject to a 30-day payment period thereafter), and (ii) March 15, 2009 (not
subject to any payment period) (together, the “Remaining Execution
Payments”) shall be, and are, hereby amended such that: (a) US$110,000
shall be due to Amer by Ventrus (or Paramount, as guarantor) no later than March
25, 2009, with US$100,000 of such payment to be applied to the balance of the
Remaining Execution Payments, and US$10,000 of such payment representing a late
payment fee; (b) US$110,000 shall be due to Amer by Ventrus (or Paramount, as
guarantor) no later than April 20, 2009, with US$100,000 of such payment to be
applied to the balance of the Remaining Execution Payments, and US$10,000 of
such payment representing a late payment fee; and (c) US$1,050,000, representing
the entire combined amount still outstanding of the Remaining Execution Payments
at such time, shall be due to Amer by Ventrus (or Paramount, as guarantor) no
later than May 20, 2009. No payment period shall apply to such payment
deadline.

    

    Notwithstanding
any of the foregoing to the contrary, in the event Ventrus has sold its equity
securities to investors with aggregate gross proceeds to Ventrus of at least
$10,000,000 (a “Financing”) on or
before May 20, 2009, then the Remaining Execution Payments shall be accelerated
such that they shall be due to Amer within thirty (30) days of the closing of
the Financing, or May 20, 2009, whichever is earlier.

    

    Except as
specified herein, the License Agreement, including consulting fee payment
obligations, remains in full force and in good standing among Amer, Ventrus, and
Paramount.

    

    * * * *
*

      

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    If the
foregoing correctly sets forth your understanding of our agreement with respect
to the matters addressed above, please indicate your acceptance and approval
below.

    

    
      
        
          
            
              
                
                  
                    
                      	
                              VENTRUS
      BIOSCIENCES, INC.

                            
	 
      	 
      
	
                              By:

                            	
                              /s/ Thomas
      Rowland       
      3/20/09

                            
	 
      	
                               
      Name:  Thomas Rowland

                            
	 
      	
                               
      Title:  President & CEO

                            
	 
      	 
      
	
                              PARAMOUNT
      BIOSCIENCES, LLC

                            
	 
      	 
      
	
                              By:

                            	
                              /s/ Lindsay A. Rosenwald,
  MD

                            
	 
      	
                               Name:  Lindsay
      A. Rosenwald, MD

                            
	 
      	
                               Title:  Sole
      Member

                            

                    

                  

                

              

            

          

        

      

    

    

    
      
        
          
            
              	
                      AGREED
      AND ACKNOWLEDGED:

                    
	 
      	 
      
	
                      SAM
      AMER & CO., INC.

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Sam Amer      
      3/8/09

                    
	 
      	
                       
      Name:  Sam Amer

                    
	 
      	
                       
      Title:  President

                    

            

          

        

      

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    VENTRUS
BIOSCIENCES, INC.

    8400 E.
Crescent Pkwy, Suite 600

    Greenwood
Village, CO 80111

    

    
      	 
      	
              August
      18, 2009

            

    

    

    Sam Amer
& Co., Inc.

    P.O. Box
5685

    Montecito,
CA 93150

    Attn: Sam
Amer

    

    Dear
Sam:

    

    Reference
is hereby made to the License Agreement, dated as of March 10, 2008, between Sam
Amer & Co., Inc. (“Amer”), Ventrus Biosciences, Inc. (“Ventrus”), and
Paramount Biosciences, LLC (“Paramount”) as amended by Amendment No. 1 to
License Agreement, dated as of July 31, 2008, Amendment No. 2 to License
Agreement, dated as of September 29, 2008, and Amendment No. 3 to License
Agreement, dated as of November 17, 2008, and Letter Agreements dated as of
March 13, 2009 and May 13, 2009 (taken together, including all amendments and
alterations to date, the “License Agreement”). To the extent this letter
agreement is in conflict with any provision of the License Agreement, such
provision of the License Agreement is hereby superseded and replaced in all
respects by the content of this Letter Agreement.

    

    Amer,
Ventrus, and Paramount hereby agree that the remaining payments due to Amer
under the License Agreement by Ventrus (or Paramount, as guarantor) are: (i)
$1,115,000, which is due and payable on August l5, 2009 and constitutes the
“Remaining Execution Payments” and (ii) a monthly consulting fee of $7,500. In
addition, Amer, Ventrus and Paramount acknowledge and agree that pursuant to the
Letter Agreement dated May 13, 2009, Ventrus paid to Amer a $10,000 interest fee
for the months of June, July and August, as well as the $7,500 monthly
consulting fee for each such month.

    

    In
accordance with and upon execution of this Letter Agreement, the remaining
payments due to Amer under the License Agreement shall consist of (i)
$1,115,000, less all Monthly Principal Payments (defined hereafter), which is
due and payable on December 20, 2009 and constitutes the “Remaining Execution
Payments” and (ii) an aggregate monthly fee of $77,500, payable on the twentieth
of each month commencing August 20, 2009 and continuing through and until
December 20, 2009, which shall consist of (A) $25,000 per month in Monthly
Principal Payments to be offset against the Remaining Execution Payments, (B)
$7,500 per month in monthly consulting fees; and (C) $45,000 in monthly interest
fees. No payment period shall apply to any such payment deadline (provided that
the first Monthly Principal Payment shall be permitted to be made within five
(5) business days of August 20, 2009).

    

    Notwithstanding
any of the foregoing to the contrary, in the event Ventrus has sold its equity
securities to investors with aggregate gross proceeds to Ventrus of at least
$10,000,000 (a “Financing”) on or before December 20, 2009, then the Remaining
Execution Payments shall be accelerated such that they shall be due to Amer
within thirty (30) days of the closing of the Financing, or December 20, 2009,
whichever is earlier.

    

    Except as
specified herein, the License Agreement, including consulting fee payment
obligations, remains in full force and in good standing among Amer, Ventrus, and
Paramount.

    

    * * * *
*

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    If the
foregoing correctly sets forth your understanding of our agreement with respect
to the matters addressed above, please indicate your acceptance and approval
below.

     

    
      
        
          
            	 	
                    VENTRUS
      BIOSCIENCES, INC.

                  
	 	 
      	 
      
	 	
                    By:

                  	
                    /s/ Thomas Rowland

                  
	 	 
      	
                     
      Name:  Thomas Rowland

                  
	 	 
      	
                     
      Title:  President & CEO

                  
	 	 
      	 
      
	 	
                    PARAMOUNT
      BIOSCIENCES, LLC

                  
	 	 
      	 
      
	 	
                    By:

                  	
                    /s/ Lindsay Rosenwald

                  
	 	 
      	
                     
      Name:  Lindsay Rosenwald

                  
	 	 
      	
                     
      Title:  Sole
Member

                  

          

        

      

    

     

    
      
        
          
            
              	
                      AGREED
      AND ACKNOWLEDGED:

                    
	 
      	 
      
	
                      SAM
      AMER & CO., INC.

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Sam Amer

                    
	 
      	
                       
      Name:  Sam Amer

                    
	 
      	
                       
      Title:  President     
      8/18/09

                    

            

          

        

      

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    PARAMOUNT
BIOSCIENCES, LLC

    8400 E
Crescent Pkwy, Suite 600

    Greenwood
Village, CO 80111

    

    
      	 
      	
              May
      13, 2009

            

    

    

    Sam Amer
& Co., Inc.

    P.O. Box
5685

    Montecito,
CA  93150

    Attn: Sam
Amer

    

    Dear
Sam:

    

    Reference
is hereby made to the License Agreement, dated as of March 10, 2008, between Sam
Amer & Co., Inc. (“Amer”), Ventrus
Biosciences, Inc. (“Ventrus”), and
Paramount Biosciences, LLC (“Paramount”) as
amended by Amendment No. 1 to License Agreement, dated as of July 31, 2008,
Amendment No. 2 to License Agreement, dated as of September 29, 2008, Amendment
No. 3 to License Agreement, dated as of November 17, 2008 and Letter Agreement
dated as of March 13, 2009 (taken together, including all amendments and
alterations to date, the “License
Agreement”).  To the extent this letter agreement is in
conflict with any provision of the License Agreement, such provision of the
License Agreement is hereby superseded and replaced in all respects by the
content of this Letter Agreement.

    

    Amer,
Ventrus, and Paramount hereby agree that the remaining execution payments due to
Amer under the License Agreement as modified by the Letter of March 13, 2009 by
Ventrus (or Paramount, as guarantor) are (i) Apri1 20, 2009 payment of $110,000
and (ii) May 20, 2009 payment of $1,050,000 (together, the “Remaining Execution
Payments”).  The parties further agree that there is an
outstanding unpaid balance of $15,000 as April and May 2009 consulting fees
(together “Past Due
Consulting Fees”).

    

    Amer,
Ventrus and Paramount hereby agree that the Remaining Execution Payments will be
due to Amer by Ventrus (or Paramount as guarantor) no later than August 15,
2009.  No payment period shall apply to such payment
deadline.

    

    Beginning
June 1, 2009 and continuing on July 1, 2009 and August 1, 2009, Ventrus (or
Paramount as guarantor) will pay Amer a $10,000 interest fee per month and
continue to pay Amer the $7500 Consulting fee per month.

    

    Upon
execution of this Letter Agreement, Ventrus (or Paramount as guarantor) will pay
Amer the $15,000 past due Consulting fee together with $10,000 representing
interest on the past due Execution instalment of April 20, 2009.

    

    Notwithstanding
any of the foregoing to the contrary, in the event Ventrus has sold its equity
securities to investors with aggregate gross proceeds to Ventrus of at least
$10,000,000 (a “Financing”) on or
before August 15, 2009, then the Remaining Execution Payments shall be
accelerated such that they shall be due to Amer within thirty (30) days of the
closing of the Financing, or August 15.2009, whichever is earlier.

    

    Except as
specified herein, the License Agreement remains in full force and in good
standing among Amer, Ventrus, and Paramount.

    

    * * * *
*

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    If the
foregoing correctly sets forth your understanding of our agreement with respect
to the matters addressed above, please indicate your acceptance and approval
below.

    

    
      
        
          
            
              
                
                  
                    
                      	 	
                              VENTRUS
      BIOSCIENCES, INC.

                            
	 	 
      	 
      
	 	
                              By:

                            	
                              /s/ Thomas Rowland

                            
	 	 
      	
                               
      Name:  Thomas Rowland

                            
	 	 
      	
                               
      Title:  President & CEO

                            
	 	 
      	 
      
	 	
                              PARAMOUNT
      BIOSCIENCES, LLC

                            
	 	 
      	 
      
	 	
                              By:

                            	
                              /s/ Lindsay A. Rosenwald

                            
	 	 
      	
                               
      Name:  Lindsay A. Rosenwald, MD

                            
	 	 
      	
                               
      Title:  Sole
Member

                            

                    

                  

                

              

            

          

        

      

    

    

    
      
        
          
            
              	
                      AGREED
      AND ACKNOWLEDGED:

                    
	 
      	 
      
	
                      SAM
      AMER & CO., INC.

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Sam Amer

                    
	 
      	
                       
      Name:  Sam Amer

                    
	 
      	
                       
      Title:  President

                    

            

          

        

      

    

     

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    VENTRUS
BIOSCIENCES, INC.

    8400 E.
Crescent Pkwy, Suite 600

    Greenwood
Village, CO 80111

    

    
      	 
      	
              December
      15, 2009

            

    

    

    Sam Amer
& Co., Inc.

    P.O. Box
5685

    Montecito,
CA 93150

    Attn: Sam
Amer

    

    Dear
Sam:

    

    Reference
is hereby made to the License Agreement, dated as of March 10, 2008, between
Sam Amer
& Co., Inc. (“Amer”), Ventrus Biosciences, Inc. (“Ventrus”), and Paramount
Biosciences, LLC (“Paramount”) as amended by Amendment No .1 to License
Agreement, dated as of July 31, 2008, Amendment No. 2 to License Agreement,
dated as of September 29, 2008, and Amendment No. 3 to License Agreement, dated
as of November 17, 2008, and Letter Agreements dated as of March 13, 2009, May
13, 2009 and August 18, 2009 (taken together, including all amendments and
alterations to date, the “License Agreement”). To the extent this letter
agreement is in conflict with any provision of the License Agreement, such
provision of the License Agreement is hereby superseded and replaced in all
respects by the content of this Letter Agreement.

    

    Amer,
Ventrus, and Paramount hereby agree that the remaining payments due to Amer
under the License Agreement by Ventrus (or Paramount, as guarantor) are: (i)
$1,015,000 which is due and payable on December 20, 2009 and constitutes the
“Remaining Execution Payments” and (ii) a monthly consulting fee of $7,500. In
addition, Amer. Ventrus and Paramount acknowledge and agree that pursuant to the
Letter Agreement dated August 18, 2009, Ventrus paid to Amer a $45,000 interest
fee for the months of September, October and November, as well as $25,000
monthly principal payments and the $7,500 monthly consulting fee for each such
month.

    

    Amer,
Ventrus and Paramount further acknowledge and agree that the penalty late fee of
$7500/mo due to commence July 2009 has not been paid and continues to accrue
under terms of the Licensing Agreement. Parties agree that this arrearage will
be paid and these monthly late fees will commence June 20, 2010.

    

    In
accordance with and upon execution of this Letter Agreement, the remaining
Execution payments due to Amer under the License Agreement shall consist of
$1,015,000 “Remaining Execution Payments” which shall be paid as follows:
$250,000 on December 28, 2009 with balance on June 20, 2010, which balance will
be offset by Monthly Principal Payments as defined in (A) below. In addiction
Amer will receive an aggregate monthly fee of $97,500 payable on the twentieth
of each month commencing December 20, 2009 and continuing through and until the
final payment on May 20, 2010, which shall consist of (A) $25,000 per month in
Monthly Principal

    Payments
to be offset against the Remaining Execution Payments; (B) $7,500 per month in
monthly consulting fees; (C) $45,000 in monthly interest fees; and (D) $20,000
per month in additional Licensing Fees not to be offset against the balance of
Execution Payments or any other payments originally appearing in the Licensing
Agreement. No grace period shall apply to any payment deadline listed above.
Notwithstanding the foregoing, the payments payable hereunder on January 20,
2010 shall be due and payable on January 31, 2010.

    

    Amer,
Ventrus and Paramount acknowledge the critical importance of prompt development
of Product and agree and commit to submit the Special Protocol Assessment to the
FDA no later than March 1, 2010.

    

    Except as
specified herein, the License Agreement, including consulting fee payment
obligations, and late penalty fee payments obligations remains in full force and
in good standing among Amer, Ventrus, and Paramount.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    If the
foregoing correctly sets forth your understanding of our agreement with respect
to the matters addressed above, please indicate your acceptance and approval
below.

    

    
      
        
          
            
              
                
                  
                    	 	
                            VENTRUS
      BIOSCIENCES, INC.

                          
	 	 
      	 
      
	 	
                            By:

                          	
                            /s/ Thomas Rowland

                          
	 	 
      	
                             
      Name:  Thomas Rowland

                          
	 	 
      	
                             
      Title:  President

                          
	 	 
      	 
      
	 	
                            PARAMOUNT
      BIOSCIENCES, LLC

                          
	 	 
      	 
      
	 	
                            By:

                          	
                            /s/ Lindsay A. Rosenwald,
  MD

                          
	 	 
      	
                             
      Name:  Lindsay A. Rosenwald, MD

                          
	 	 
      	
                             
      Title:  Sole
Member

                          

                  

                

              

            

          

        

      

    

    

    
      
        
          
            
              	
                      AGREED
      AND ACKNOWLEDGED:

                    
	 
      	 
      
	
                      SAM
      AMER & CO., INC.

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Sam Amer

                    
	 
      	
                       
      Name:  Sam Amer

                    
	 
      	
                       
      Title:  President

                    

            

          

        

      

    

    

    
      
        
           

        

        
          2

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