Document:

EXHIBIT
      10.1

     

    SUBSCRIPTION
      AGREEMENT

     

    SUBSCRIPTION
      AGREEMENT
      made as
      of this ___ day of ____________, 2007, between Transdel Pharmaceuticals, Inc.,
      a
      Delaware corporation (the “Company”),
      and
      the undersigned (the “Subscriber”).

     

    WHEREAS,
      pursuant
      to a Confidential Offering Memorandum dated July 30, 2007 (the “PPM”),
      the
      Company is offering in a private placement (the “Offering”)
      to
      accredited investors up to 50 Units at a purchase price of $100,000 per Unit
      for
      a maximum aggregate purchase price of $5,000,000 (the “Maximum
      Offering”).
      Each
      Unit consists of 50,000 shares of the Company’s common stock, par value $0.001
      per share (the “Common
      Stock”),
      and a
      five-year, redeemable warrant to purchase 12,500 shares of Common Stock at
      a
      cash exercise price of $4.00 per share and a cashless exercise price of $5.00
      per share (the “Warrants”).
      As
      used herein, the term “Units” means such Units, and all Common Stock and
      Warrants underlying the Units), and

     

    WHEREAS,
      the
      Subscriber desires to subscribe for the number of Units set forth on the
      signature page hereof, on the terms and conditions hereinafter set
      forth.

     

    NOW,
      THEREFORE,
      for and
      in consideration of the premises and the mutual covenants hereinafter set forth,
      the parties hereto do hereby agree as follows:

     

    
      	 	
              I.

            	
              SUBSCRIPTION
                FOR AND REPRESENTATIONS AND COVENANTS OF
                SUBSCRIBER

            

    

     

    1.1 Subject
      to the terms and conditions hereinafter set forth, the Subscriber hereby
      subscribes for and agrees to purchase from the Company such number of Units
      set
      forth upon the signature page hereof, at a price equal to $100,000 per Unit,
      and
      the Company agrees to sell such to the Subscriber for said purchase price,
      subject to the Company’s right to sell to the Subscriber such lesser number of
      (or no) Units as the Company may, in its sole discretion, deem necessary or
      desirable. The purchase price is payable by wire transfer of immediately
      available funds, pursuant to the wire instructions attached as Exhibit
      D
      to the
      PPM or by check payable to Signature Bank, as Escrow Agent to Transdel
      Pharmaceuticals, Inc.

     

    1.2 The
      Subscriber recognizes that the purchase of Units involves a high degree of
      risk
      in that (i) an investment in the Company is highly speculative and only
      investors who can afford the loss of their entire investment should consider
      investing in the Company and the Units; (ii) the Units are not registered under
      the Securities Act of 1933, as amended (the “Act”),
      or
      any state securities law; (iii) there is no trading market for the Units, none
      is likely ever to develop, and the Subscriber may not be able to liquidate
      his,
      her or its investment; (iv) transferability of the Units is extremely limited;
      and (v) an investor could suffer the loss of his, her or its entire
      investment.

     

    1.3 The
      Subscriber is an “accredited investor,” as such term in defined in Rule 501 of
      Regulation D promulgated under the Act, and the Subscriber is able to bear
      the
      economic risk of an investment in the Units.

     

    
      
         

         

      

      
        
        

        
          

        

      

      
         

      

    

    1.4 The
      Subscriber has prior investment experience (including investment in non-listed
      and non-registered securities), and has read and evaluated, or has employed
      the
      services of an investment advisor, attorney or accountant to read and evaluate,
      all of the documents furnished or made available by the Company to the
      Subscriber and to all other prospective investors in the Units, including the
      PPM, as well as the merits and risks of such an investment by the Subscriber.
      The Subscriber’s overall commitment to investments which are not readily
      marketable is not disproportionate to the Subscriber’s net worth, and the
      Subscriber’s investment in the Units will not cause such overall commitment to
      become excessive. The Subscriber, if an individual, has adequate means of
      providing for his or her current needs and personal and family contingencies
      and
      has no need for liquidity in his or her investment in the Units. The Subscriber
      is financially able to bear the economic risk of this investment, including
      the
      ability to afford holding the Units for an indefinite period or a complete
      loss
      of this investment.

     

    1.5 The
      Subscriber acknowledges receipt and careful review of the PPM, all supplements
      to the PPM, and all other documents furnished in connection with this
      transaction by the Company (collectively, the “Offering
      Documents”)
      and
      has been furnished by the Company during the course of this transaction with
      all
      information regarding the Company which the Subscriber has requested or desires
      to know; and the Subscriber has been afforded the opportunity to ask questions
      of and receive answers from duly authorized officers or other representatives
      of
      the Company concerning the terms and conditions of the Offering, and any
      additional information which the Subscriber has requested.

     

    1.6 The
      Subscriber acknowledges that the purchase of the Units may involve tax
      consequences to the Subscriber and that the contents of the Offering Documents
      do not contain tax advice. The Subscriber acknowledges that the Subscriber
      must
      retain his, her or its own professional advisors to evaluate the tax and other
      consequences to the Subscriber of an investment in the Units. The Subscriber
      acknowledges that it is the responsibility of the Subscriber to determine the
      appropriateness and the merits of a corporate entity to own the Subscriber’s
      Units and the corporate structure of such entity.

     

    1.7 The
      Subscriber acknowledges that this Offering has not been reviewed by the
      Securities and Exchange Commission (the “SEC”)
      or any
      state securities commission, and that no federal or state agency has made any
      finding or determination regarding the fairness or merits of the Offering.
      The
      Subscriber represents that the Units are being purchased for his, her or its
      own
      account, for investment only, and not with a view toward distribution or resale
      to others. The Subscriber agrees that he, she or it will not sell or otherwise
      transfer the Units unless they are registered under the Act or unless an
      exemption from such registration is available.

     

    1.8 The
      Subscriber understands that the provisions of Rule 144 under the Act are not
      available for at least one (1) year to permit resales of the Units or the Common
      Stock and Warrants comprising the Units and there can be no assurance that
      the
      conditions necessary to permit such sales under Rule 144 will ever be satisfied.
      The Subscriber understands that the Company is under no obligation to comply
      with the conditions of Rule 144 or take any other action necessary in order
      to
      make available any exemption from registration for the sale of the Units or
      the
      Common Stock and Warrants comprising the Units.

     

    
      
         

         

      

      
        A-2

        
          

        

      

      
         

      

    

    1.9 The
      Subscriber understands that the Units have not been registered under the Act
      by
      reason of a claimed exemption under the provisions of the Act which depends,
      in
      part, upon his, her or its investment intention. In this connection, the
      Subscriber understands that it is the position of the SEC that the statutory
      basis for such exemption would not be present if his, her or its representation
      merely meant that his, her or its present intention was to hold such securities
      for a short period, such as the capital gains period of tax statutes, for a
      deferred sale, for a market rise, assuming that a market develops, or for any
      other fixed period. The Subscriber realizes that, in the view of the SEC, a
      purchase now with an intent to resell would represent a purchase with an intent
      inconsistent with his, her or its representation to the Company and the SEC
      might regard such a sale or disposition as a deferred sale, for which such
      exemption is not available.

     

    1.10 The
      Subscriber agrees to indemnify and hold the Company, its directors, officers
      and
      controlling persons and their respective heirs, representatives, successors
      and
      assigns harmless against all liabilities, costs and expenses incurred by them
      as
      a result of any misrepresentation made by the Subscriber contained herein or
      any
      sale or distribution by the Subscriber in violation of the Act (including,
      without limitation, the rules promulgated thereunder), any state securities
      laws, or the Company’s Certificate of Incorporation or By-laws, as amended from
      time to time.

     

    1.11 The
      Subscriber consents to the placement of a legend on any certificate or other
      document evidencing the Common Stock or the Warrants stating that such
      securities have not been registered under the Act and setting forth or referring
      to the restrictions on transferability and sale thereof.

     

    1.12 The
      Subscriber understands that the Company will review and rely on this
      Subscription Agreement without making any independent investigation; and it
      is
      agreed that the Company reserves the unrestricted right to reject or limit
      any
      subscription and to withdraw the Offering at any time.

     

    1.13 The
      Subscriber hereby represents that the address of the Subscriber furnished at
      the
      end of this Subscription Agreement is the undersigned’s principal residence, if
      the Subscriber is an individual, or its principal business address if it is
      a
      corporation or other entity.

     

    1.14 The
      Subscriber acknowledges that if the Subscriber is a Registered Representative
      of
      a National Association of Securities Dealers, Inc. (“NASD”)
      member
      firm, the Subscriber must give such firm the notice required by the NASD’s
      Conduct Rules, receipt of which must be acknowledged by such firm on the
      signature page hereof.

     

    1.15 The
      Subscriber hereby acknowledges that neither the Company nor any persons
      associated with the Company who may provide assistance or advice in connection
      with the Offering (other than the placement agent, if one is engaged by the
      Company) are or are expected to be members or associated persons of members
      of
      the NASD or registered broker-dealers under any federal or state securities
      laws.

     

    
      
         

         

      

      
        A-3

        
          

        

      

      
         

      

    

    1.16 The
      Subscriber understands that, pursuant to the terms of the Offering as set forth
      in the PPM, the Company must receive subscriptions for 30 Units for an aggregate
      purchase price of $3,000,000 (the “Minimum
      Offering”)
      in
      order to close on the sale of any Units and that persons affiliated with the
      Company or its consultants, advisors, or placement agents may subscribe for
      Common Stock, in which case the Company may accept subscriptions from such
      affiliated parties in order to reach the Minimum Offering; and that,
      accordingly, no investor should conclude that achieving the Minimum Offering
      is
      the result of any independent assessment of the merits or advantages of the
      Offering or the Company made by Subscribers in the Minimum
      Offering.

     

    1.17 The
      Subscriber hereby represents that, except as expressly set forth in the Offering
      Documents, no representations or warranties have been made to the Subscriber
      by
      the Company or any agent, employee or affiliate of the Company and, in entering
      into this transaction, the Subscriber is not relying on any information other
      than that contained in the Offering Documents and the results of independent
      investigation by the Subscriber.

     

    1.18 All
      information provided by the Subscriber in the Investor Questionnaire attached as
      Exhibit
      B
      to the
      PPM is true and accurate in all respects, and the Subscriber acknowledges that
      the Company will be relying on such information to its possible detriment in
      deciding whether the Company can sell these securities to the Subscriber without
      giving rise to the loss of the exemption from registration under applicable
      securities laws.

     

    
      	 	
              II.

            	
              REPRESENTATIONS
                BY THE COMPANY

            

    

     

    The
      Company represents and warrants to the Subscriber that as of the date of the
      closing of this Offering (the “Closing
      Date”):

     

    (a) The
      Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Delaware and has the corporate power
      to
      conduct the business which it conducts and proposes to conduct.

     

    (b) The
      execution, delivery and performance of this Subscription Agreement by the
      Company have been duly authorized by the Company and all other corporate action
      required to authorize and consummate the offer and sale of the Units has been
      duly taken and approved.

     

    (c) The
      Units
      and the underlying Common Stock have been duly and validly authorized and
      issued.

     

    (d) The
      Company has obtained, or is in the process of obtaining, all licenses, permits
      and other governmental authorizations necessary for the conduct of its business,
      except where the failure to so obtain such licenses, permits and authorizations
      would not have a material adverse effect on the Company. Such licenses, permits
      and other governmental authorizations which have been obtained are in full
      force
      and effect, except where the failure to be so would not have a material adverse
      effect on the Company, and the Company is in all material respects complying
      therewith.

     

    (e) The
      Company knows of no pending or threatened legal or governmental proceedings
      to
      which the Company is a party which would materially adversely affect the
      business, financial condition or operations of the Company.

     

    
      
         

         

      

      
        A-4

        
          

        

      

      
         

      

    

    (f) The
      Company is not in violation of or default under, nor will the execution and
      delivery of this Subscription Agreement or the issuance of the Common Stock,
      or
      the consummation of the transactions herein contemplated, result in a violation
      of, or constitute a default under, the Company’s Certificate of Incorporation or
      By-laws, any material obligations, agreements, covenants or conditions contained
      in any bond, debenture, note or other evidence of indebtedness or in any
      material contract, indenture, mortgage, loan agreement, lease, joint venture
      or
      other agreement or instrument to which the Company is a party or by which it
      or
      any of its properties may be bound or any material order, rule, regulation,
      writ, injunction, or decree of any government, governmental instrumentality
      or
      court, domestic or foreign.

     

    
      	 	
              III.

            	
              COVENANTS
                BY THE COMPANY

            

    

     

    3.1 For
      a
      period of the earlier of (i) twelve (12) months following the Initial Closing
      (as defined in the PPM) or (ii) the date that the “resale” registration
      statement covering the shares of Common Stock and the shares of Common Stock
      underlying the Warrants included within the Units sold in the Offering is
      declared effective by the SEC (the “Adjustment
      Period”),
      in
      the event that the Company sells or grants any option to purchase or sells
      or
      grants any right to reprice, or otherwise disposes of or issues (or announces
      any sale, grant or any option to purchase or other disposition), any Common
      Stock or Common Stock Equivalents entitling any Person to acquire shares of
      Common Stock at an effective price per share that is lower than $2.00 per share
      (such lower price, the “Base
      Price”
and
      such issuances, collectively, a “Dilutive
      Issuance”)
      (if
      the holder of the Common Stock or Common Stock Equivalents so issued shall
      at
      any time, whether by operation of purchase price adjustments, reset provisions,
      floating conversion, exercise or exchange prices or otherwise, or due to
      warrants, options or rights per share which are issued in connection with such
      issuance, be entitled to receive shares of Common Stock at an effective price
      per share that is lower than $2.00 per share, such issuance shall be deemed
      to
      have occurred for less than the $2.00 per share on such date of the Dilutive
      Issuance), then the Company shall issue additional shares of Common Stock to
      the
      Subscriber in an amount sufficient that the subscription price paid hereunder,
      when divided by the total number of shares issued in the Dilutive Issuance
      will
      result in an actual price paid by the Subscriber per share of Common Stock
      equal
      to the Base Price. Such adjustment shall be made whenever any Dilutive Issuance
      is made within the Adjustment Period. Notwithstanding the foregoing, no
      adjustment will be made under this Section 3.1 in respect of an Exempt Issuance.
      The Company shall notify the Subscriber in writing, no later than 1 business
      day
      following a Dilutive Issuance, indicating therein the applicable issuance price,
      or applicable reset price, exchange price, conversion price and other pricing
      terms (such notice, the “Dilutive
      Issuance Notice”).
      For
      purposes of clarification, whether or not the Company provides a Dilutive
      Issuance Notice pursuant to this Section 3.1, upon the occurrence of any
      Dilutive Issuance, the Subscriber is entitled to receive a number of shares
      based upon the Base Price on or after the date of such Dilutive Issuance.
      Notwithstanding anything herein or in any related document to the contrary,
      the
      foregoing does not convey to the Subscriber any right to participation in any
      future financings or offerings now or in the future contemplated or undertaken
      by the Company. The Company reserves the right to establish procedures in order
      to effectuate the issuance of additional shares in the event of any dilutive
      issuance requiring an adjustment to the Base Price, in its sole discretion,
      including delivery of such shares to the Subscriber in full and complete
      satisfaction of the Company’s obligation upon a Dilutive Issuance.

     

    
      
         

         

      

      
        A-5

        
          

        

      

      
         

      

    

    “Common
      Stock Equivalents”
means
      any securities of the Company or any of its subsidiaries which would entitle
      the
      holder thereof to acquire at any time Common Stock, including, without
      limitation, any debt, preferred stock, rights, options, warrants or other
      instrument that is at any time convertible into or exercisable or exchangeable
      for, or otherwise entitles the holder thereof to receive, Common
      Stock.

     

    “Exempt
      Issuance”
means
      the issuance of (a) shares of Common Stock or options to employees, officers,
      directors, or consultants of the Company pursuant to any stock or option plan
      duly adopted for such purpose by a majority of the non-employee members of
      the
      Board of Directors of the Company or a majority of the members of a committee
      of
      non-employee directors established, (b) securities upon the exercise or exchange
      of or conversion of any securities issued hereunder and/or other securities
      exercisable or exchangeable for or convertible into shares of Common Stock
      issued and outstanding on the date of this Agreement,
      provided that such securities have not been amended since the date of this
      Agreement to increase the number of such securities or to decrease the exercise,
      exchange or conversion price of such securities; and (c) securities issued
      pursuant to acquisitions or strategic transactions approved by a majority of
      the
      disinterested directors of the Company, provided that any such issuance shall
      only be to a person which is either an owner
      of,
      or an entity that is, itself or through its subsidiaries, an operating company
      in a business synergistic with the business of the Company and in which the
      Company receives benefits in addition to the investment of funds, but shall
      not
      include a transaction in which the Company is issuing securities primarily
      for
      the purpose of raising capital or to an entity whose primary business is
      investing in securities.

     

    3.2 For
      a
      period of 18 months following the Initial Closing, the Company shall not file
      a
      registration statement on any form, including, without limitation, a
      Registration Statement on Form S-8, in order to register with the SEC the sale
      of any securities issued or issuable under an employee benefit plan of the
      Company or any of the Company’s subsidiaries.

     

    
      	 	
              IV.

            	
              TERMS
                OF SUBSCRIPTION

            

    

     

    4.1 Subject
      to Section 4.2 hereof, the subscription period will begin as of the date of
      the
      PPM and will terminate at 11:59 PM Eastern Time, on the earlier of the date
      on
      which the Maximum Offering is sold or the Offering is terminated by the Company
      (the “Termination
      Date”).
      The
      minimum subscription amount is $100,000, although the Company may, in its
      discretion, accept subscriptions for less than $100,000.

     

    4.2 The
      Subscriber has effected a wire transfer in the full amount of the purchase
      price
      for the Units to the Company’s escrow account in accordance with the wire
      instructions attached as Exhibit
      D
      to the
      PPM or has delivered a check in payment of the purchase price for the
      Units.

     

    4.3 Pending
      the sale of the Units, all funds paid hereunder shall be deposited by the
      Company in escrow with the Company’s escrow agent. If the Company shall not have
      obtained subscriptions (including this subscription) for the Minimum Offering
      on
      or before the Termination Date (as such date may be extended by the Company),
      then this subscription shall be void and all funds paid hereunder by the
      Subscriber shall be promptly returned without interest to the Subscriber, to
      the
      same account from which the funds were drawn. If subscriptions are received
      and
      accepted and payment tendered for the Minimum Offering on or prior to the
      Termination Date, then all subscription proceeds (less fees and expenses) shall
      be paid over to the Company within ten (10) days thereafter or such earlier
      date
      that is one business day after the amount of good funds in escrow equals or
      exceeds $3,000,000. In such event, sales of the Units may continue thereafter
      until the earlier of the date on which the Maximum Offering is sold and the
      Termination Date, with subsequent releases of funds from time to time at the
      discretion of the Company.

     

    
      
         

         

      

      
        A-6

        
          

        

      

      
         

      

    

    4.4 The
      Subscriber hereby authorizes and directs the Company and its escrow agent to
      deliver any certificates or other written instruments representing the Units
      to
      be issued to such Subscriber pursuant to this Subscription Agreement to the
      address indicated on the signature page hereof.

     

    4.5 The
      Subscriber hereby authorizes and directs the Company and its escrow agent to
      return any funds, without interest, for unaccepted subscriptions to the same
      account from which the funds were drawn.

     

    4.6 If
      the
      Subscriber is not a United States person, such Subscriber shall immediately
      notify the Company and the Subscriber hereby represents that the Subscriber
      is
      satisfied as to the full observance of the laws of its jurisdiction in
      connection with any invitation to subscribe for the Units or any use of this
      Subscription Agreement, including (i) the legal requirements within its
      jurisdiction for the purchase of the Units, (ii) any foreign exchange
      restrictions applicable to such purchase, (iii) any governmental or other
      consents that may need to be obtained, and (iv) the income tax and other tax
      consequences, if any, that may be relevant to the purchase, holding, redemption,
      sale or transfer of the Units. Such Subscriber’s subscription and payment for,
      and continued beneficial ownership of, the Units will not violate any applicable
      securities or other laws of the Subscriber’s jurisdiction.

     

    
      	 	
              V.

            	
              MISCELLANEOUS

            

    

     

    5.1 Any
      notice or other communication given hereunder shall be deemed sufficient if
      in
      writing and sent by reputable overnight courier, facsimile (with receipt of
      confirmation) or registered or certified mail, return receipt requested,
      addressed to the Company, at the address set forth in the first paragraph
      hereof, Attention: Chief Executive Officer, facsimile: (858) 457-5308, and
      to
      the Subscriber at the address or facsimile number indicated on the signature
      page hereof. Notices shall be deemed to have been given on the date when mailed
      or sent by facsimile transmission or overnight courier, except notices of change
      of address, which shall be deemed to have been given when received.

     

    5.2 This
      Subscription Agreement shall not be changed, modified or amended except by
      a
      writing signed by both (a) the Company and (b) subscribers in the Offering
      holding a majority of the Units issued in the Offering.

     

    5.3 This
      Subscription Agreement shall be binding upon and inure to the benefit of the
      parties hereto and to their respective heirs, legal representatives, successors
      and assigns. This Subscription Agreement sets forth the entire agreement and
      understanding between the parties as to the subject matter hereof and merges
      and
      supersedes all prior discussions, agreements and understandings of any and
      every
      nature among them.

     

    
      
         

         

      

      
        A-7

        
          

        

      

      
         

      

    

    5.4 Notwithstanding
      the place where this Subscription Agreement may be executed by any of the
      parties hereto, the parties expressly agree that all the terms and provisions
      hereof shall be construed in accordance with and governed by the laws of the
      State of Delaware. The parties hereby agree that any dispute which may arise
      between them arising out of or in connection with this Subscription Agreement
      shall be adjudicated only before a Federal court located in Kent County, State
      of Delaware and they hereby submit to the exclusive jurisdiction of the federal
      courts located in Kent County, State of Delaware with respect to any action
      or
      legal proceeding commenced by any party, and irrevocably waive any objection
      they now or hereafter may have respecting the venue of any such action or
      proceeding brought in such a court or respecting the fact that such court is
      an
      inconvenient forum, relating to or arising out of this Subscription Agreement
      or
      any acts or omissions relating to the sale of the securities hereunder, and
      consent to the service of process in any such action or legal proceeding by
      means of registered or certified mail, return receipt requested, in care of
      the
      address set forth below or such other address as the undersigned shall furnish
      in writing to the other. The parties further agree that in the event of any
      dispute, action, suit or other proceeding arising out of or in connection with
      this Subscription Agreement, the PPM or other matters related to this
      subscription brought by a Subscriber (or transferee), the Company (and each
      other defendant) shall recover all of such party’s attorneys’ fees and costs
      incurred in each and every action, suit or other proceeding, including any
      and
      all appeals or petitions therefrom. As used herein, attorney’s fees shall be
      deemed to mean the full and actual costs of any investigation and of legal
      services actually performed in connection with the matters involved, calculated
      on the basis of the usual fee charged by the attorneys performing such
      services.

     

    5.5 This
      Subscription Agreement may be executed in counterparts. Upon the execution
      and
      delivery of this Subscription Agreement by the Subscriber, this Subscription
      Agreement shall become a binding obligation of the Subscriber with respect
      to
      the purchase of Units as herein provided; subject, however, to the right hereby
      reserved by the Company to (i) enter into the same agreements with other
      subscribers, (ii) add and/or delete other persons as subscribers and (iii)
      reduce the amount of or reject any subscription.

     

    5.6 The
      holding of any provision of this Subscription Agreement to be invalid or
      unenforceable by a court of competent jurisdiction shall not affect any other
      provision of this Subscription Agreement, which shall remain in full force
      and
      effect.

     

    5.7 It
      is
      agreed that a waiver by either party of a breach of any provision of this
      Subscription Agreement shall not operate or be construed as a waiver of any
      subsequent breach by that same party.

     

    5.8 The
      parties agree to execute and deliver all such further documents, agreements
      and
      instruments and take such other and further actions as may be necessary or
      appropriate to carry out the purposes and intent of this Subscription
      Agreement.

     

    [Signature
      Pages Follow]

    
      
         

         

      

      
        A-8

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Subscription Agreement as of the day and year first
      written above.

     

    

    
      	
              __________________________

            	
              X
                $100,000 for each Unit

            	
              =
                $_____________________.

            
	
              Number
                of Units subscribed for

            	 	
              Aggregate
                Purchase Price

            

    

    

    Manner
      in which Title is to be held (Please Check One):

     

    
      	
              1.

            	
              ____

            	
              Individual

            	
              7.

            	
              
                ____

              

            	
              Trust/Estate/Pension
                or Profit Sharing Plan

            
	 	 	 	 	
            	
              Date
                Opened:______________ 

            
	
              2.

            	
              
                ____

              

            	
              Joint
                Tenants with Right of Survivorship

            	
              8.

            	
              
                ____

              

            	
              As
                a Custodian for

            
	 	 	 	 	 	
              _____________________________

            
	 	 	 	 	 	Under
              the Uniform Gift to Minors Act of the State of
	 	 	 	 	 	_____________________________
	 	 	 	 	 	 
	
              3.

            	
              
                ____

              

            	
              Community
                Property

            	
              9.

            	
              
                ____

              

            	
              Married
                with Separate Property

            
	 	 	 	 	 	 
	
              4.

            	
              
                ____

              

            	
              Tenants
                in Common

            	
              10.

            	
              
                ____

              

            	
              Keogh

            
	 	 	 	 	 	 
	
              5.

            	
              
                ____

              

            	
              Corporation/Partnership/
                Limited Liability Company

            	
              11.

            	
              
                ____

              

            	
              Tenants
                by the Entirety

            
	 	 	 	 	 	 
	
              6.

            	
              
                ____

              

            	
              IRA

            	
              12.

            	
              
                ____

              

            	
              Foundation
                described in Section 501(c)(3) of the Internal Revenue Code of 1986,
                as
                amended.

            

    

    

    IF
      MORE THAN ONE SUBSCRIBER,
      EACH SUBSCRIBER MUST SIGN:

     

    · INDIVIDUAL
      SUBSCRIBERS MUST COMPLETE PAGE 11

     

    · SUBSCRIBERS
      WHICH ARE ENTITIES MUST COMPLETE PAGE 12

     

    
      
         

         

      

      
        A-9

        
          

        

      

      
         

      

    

    EXECUTION
      BY NATURAL PERSONS

     

    
      	 	 	 
	
              Exact
                Name in Which Title is to be Held 

            	 	 
	 	 	 
	
              Name
                (Please Print)

            	 	
              Name
                of Additional Subscriber

            
	 	 	 
	 	 	 
	
              Residence:
                Number and Street

            	 	
              Address
                of Additional Subscriber

            
	 	 	 
	 	 	 
	
              City,
                State and Zip Code

            	 	
              City,
                State and Zip Code

            
	 	 	 
	 	 	 
	
              Social
                Security Number

            	 	
              Social
                Security Number

            
	 	 	 
	 	 	 
	
              Telephone
                Number

            	 	
              Telephone
                Number

            
	 	 	 
	 	 	 
	
              Fax
                Number (if available)

            	 	
              Fax
                Number (if available)

            
	 	 	 
	 	 	 
	
              E-Mail
                (if available)

            	 	
              E-Mail
                (if available)

            
	 	 	 
	 	 	 
	
              (Signature)

            	 	
              (Signature
                of Additional Subscriber)

            

    

     

     

    
      	 	
              ACCEPTED
                this ___ day of _________ 2007, on behalf of Transdel Pharmaceuticals,
                Inc.

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            	Juliet Singh,
              Ph.D.
	 	 	
              Title:

            	Chief Executive
              Officer

    

     

    
      
         

         

      

      
        A-10

        
          

        

      

      
         

      

    

    EXECUTION
      BY SUBSCRIBER WHICH IS AN ENTITY

     

    
      	
              (Corporation,
                Partnership, Trust, Etc.) 

            
	 
	
              Name
                of Entity (Please Print)

            
	
              Date
                of Incorporation or Organization:

            
	 
	
              State
                of Principal Office:

            
	 
	
              Federal
                Taxpayer Identification Number:

            	 

    

     

     

    
      	 	 
	
              Office
                Address

            	 
	 	 
	
              City,
                State and Zip Code

            	 
	 	 
	
              Telephone
                Number

            	 
	 	 
	
              Fax
                Number (if available)

            	 
	 	 
	
              E-Mail
                (if available)

            	 

    

     

     

    
      
        
          	
                  [seal]

                	 	
                  By:

                	 
	 	 	 	
                  Name:

                
	
                  Attest:

                	 	 	 	
                  Title:

                
	
                  (If
                    Entity is a Corporation)

                	 	 	 
	 	 	 	 
	
                  *If
                    Subscriber is a Registered Representative with an NASD member
                    firm, have
                    the following acknowledgement signed by the appropriate
                    party:

                	 	 
	 	 	 
	
                  The
                    undersigned NASD member firm acknowledges receipt of the notice
                    required
                    by Rule 3050 of the NASD Conduct Rules

                	 	 
	 	 	 
	 	 	
                  ACCEPTED
                    this ____ day of __________ 2007, on behalf of Transdel

                
	
                  Name
                    of NASD Firm

                	 	Pharmaceuticals,
                  Inc.
	 	 	 
	
                  By:

                	 	 	
                  By:

                	 
	
                  Name:

                	 	
                  Name:

                	
                  Juliet
                    Singh, Ph.D.

                
	
                  Title:

                	 	
                  Title:

                	
                  Chief
                    Executive Officer

                

        

      

    

     

    
      
         

      

      
        A-11EXHIBIT
        10.2 

      

      
        	 	
                WARRANT

              	 
	
                NO.
                  TPHI - ___

              	
                TRANSDEL
                  PHARMACEUTICALS, INC. 

              	
                ________
                  Shares

              
	 	 	 

      

      WARRANT
        TO PURCHASE COMMON STOCK

       

      VOID
        AFTER 5:30 P.M., EASTERN 

      TIME,
        ON THE EXPIRATION DATE

       

      THIS
        WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
        BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT
        BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT
        COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE
        FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS
        THEREFROM.

       

      FOR
        VALUE
        RECEIVED, TRANSDEL PHARMACEUTICALS, INC., a Delaware corporation (the
“Company”),
        hereby agrees to sell upon the terms and on the conditions hereinafter set
        forth, but no later than 5:30 p.m., Eastern Time, on the Expiration Date
        (as
        hereinafter defined) to ________________
        or
        registered assigns (the “Holder”),
        under
        the terms as hereinafter set forth, __________________
        (_____________)
        fully
        paid and non-assessable shares of the Company’s Common Stock, par value $0.001
        per share (the “Warrant
        Stock”),
        at a
        cash purchase price of FOUR DOLLARS ($4.00) per share (the “Cash
        Warrant Price”)
        or a
        cashless purchase price of FIVE DOLLARS ($5.00) per share (the “Cashless
        Warrant Price”),
        pursuant to this warrant (this “Warrant”).
        The
        number of shares of Warrant Stock to be so issued and each Warrant Price
        are
        subject to adjustment in certain events as hereinafter set forth. The term
        “Common
        Stock”
shall
        mean, when used herein, unless the context otherwise requires, the stock
        and
        other securities and property at the time receivable upon the exercise of
        this
        Warrant.

       

      
        	
              	1.	
                Exercise
                  of Warrant.

              

      

       

      a. The
        Holder may exercise this Warrant according to its terms by (i) surrendering
        this
        Warrant, properly endorsed, to the Company at the address set forth in Section
        10, (ii) the subscription form attached hereto having then been duly executed
        by
        the Holder, and (iii) payment of the purchase price being made to the Company
        for the number of shares of the Warrant Stock specified in the subscription
        form, or as otherwise provided in this Warrant, prior to 5:30 p.m., Eastern
        Time, on __________________, 2012 (the
        “Expiration
        Date”).
        Such
        exercise shall be effected by the surrender of the Warrant, together with
        a duly
        executed copy of the Form of Exercise attached hereto, to Company at its
        principal office and (i) the payment to the Company of an amount equal to
        the
        aggregate Cash Warrant Price for the number of shares of Warrant Stock being
        purchased in cash, certified check or bank draft or (ii) by surrendering
such
        number of shares of Warrant Stock received upon exercise of this Warrant
        with a
        Fair Market Value (as defined below) equal to the aggregate Cashless Warrant
        Price for the Warrant Stock being purchased (a “Cashless
        Exercise”).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      b. If
        the
        Holder elects the Cashless Exercise method of payment, the Company shall
        issue
        to the Holder a number of shares of Warrant Stock determined in accordance
        with
        the following formula:

      

      
        	
                X
                  

              	
                =

              	
                Y(A
                  - B)

              
	 	 	
                     
                  A

              

      

      

      
        	
                with:

              	
                X
                  =
                  

              	
                the
                  number of shares of Warrant Stock to be issued to the
                  Holder;

              
	 	 	 
	 	
                Y
                  =

              	
                the
                  number of shares of Warrant Stock with respect to which the Warrant
                  is
                  being exercised;

              
	 	 	 
	 	
                A
                  =

              	
                the
                  fair value per share of Common Stock on the date of exercise of
                  this
                  Warrant; and

              
	 	 	 
	 	
                B
                  =

              	
                the
                  then-current Cashless Warrant Price of the
                  Warrant

              

      

      

      For
        the
        purposes of this Section 1b., “fair value” per share of Common Stock shall mean
        (A) the average of the closing sales prices, as quoted on the primary national
        or regional stock exchange on which the Common Stock is listed, or,
        if not
        listed,
        the OTC
        Bulletin Board if quoted thereon, on the ten
        (10)
        trading
        days immediately preceding the date on which the Notice of Exercise is deemed
        to
        have been sent to the Company, or (B) if the Common Stock is not publicly
        traded
        as set forth above, as reasonably and in good faith determined by the Board
        of
        Directors of the Company as of the date which the notice of exercise is deemed
        to have been sent to the Company.

      

      c. This
        Warrant may be exercised in whole or in part so long as any exercise in part
        hereof would not involve the issuance of fractional shares of Warrant Stock.
        If
        exercised in part, the Company shall deliver to the Holder a new Warrant,
        identical in form, in the name of the Holder, evidencing the right to purchase
        the number of shares of Warrant Stock as to which this Warrant has not been
        exercised, which new Warrant shall be signed by the Chairman, Chief Executive
        Officer or President and the Secretary or Assistant Secretary of the Company.
        The term Warrant as used herein shall include any subsequent Warrant issued
        as
        provided herein.

       

      d. No
        fractional shares or scrip representing fractional shares shall be issued
        upon
        the exercise of this Warrant. The Company shall pay cash in lieu of fractions
        with respect to the Warrants based upon the fair market value of such fractional
        shares of Common Stock (which shall be the closing price of such shares on
        the
        exchange or market on which the Common Stock is then traded) at the time
        of
        exercise of this Warrant.

       

      e. In
        the
        event of any exercise of the rights represented by this Warrant, a certificate
        or certificates for the Warrant Stock so purchased, registered in the name
        of
        the Holder, shall be delivered to the Holder within a reasonable time after
        such
        rights shall have been so exercised. The person or entity in whose name any
        certificate for the Warrant Stock is issued upon exercise of the rights
        represented by this Warrant shall for all purposes be deemed to have become
        the
        holder of record of such shares immediately prior to the close of business
        on
        the date on which the Warrant was surrendered and payment of, the Cash Warrant
        Price or the Cashless Warrant Price, as the case may be, and any applicable
        taxes was made, irrespective of the date of delivery of such certificate,
        except
        that, if the date of such surrender and payment is a date when the stock
        transfer books of the Company are closed, such person shall be deemed to
        have
        become the holder of such shares at the opening of business on the next
        succeeding date on which the stock transfer books are open. The Company shall
        pay any and all documentary stamp or similar issue or transfer taxes payable
        in
        respect of the issue or delivery of shares of Common Stock on exercise of
        this
        Warrant.

       

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

       

      
        	
              	2.	
                Disposition
                  of Warrant Stock and Warrant.

              

      

       

      a. The
        Holder hereby acknowledges that this Warrant and any Warrant Stock purchased
        pursuant hereto are, as of the date hereof, not registered: (i) under the
        Securities Act of 1933, as amended (the “Act”),
        on
        the ground that the issuance of this Warrant is exempt from registration
        under
        Section 4(2) of the Act as not involving any public offering or (ii) under
        any
        applicable state securities law because the issuance of this Warrant does
        not
        involve any public offering; and that the Company’s reliance on the Section 4(2)
        exemption of the Act and under applicable state securities laws is predicated
        in
        part on the representations hereby made to the Company by the Holder that
        it is
        acquiring this Warrant and will acquire the Warrant Stock for investment
        for its
        own account, with no present intention of dividing its participation with
        others
        or reselling or otherwise distributing the same, subject, nevertheless, to
        any
        requirement of law that the disposition of its property shall at all times
        be
        within its control.

       

      The
        Holder hereby agrees that it will not sell or transfer all or any part of
        this
        Warrant and/or Warrant Stock unless and until it shall first have given notice
        to the Company describing such sale or transfer and furnished to the Company
        either (i) an opinion, reasonably satisfactory to counsel for the Company,
        of
        counsel (skilled in securities matters, selected by the Holder and reasonably
        satisfactory to the Company) to the effect that the proposed sale or transfer
        may be made without registration under the Act and without registration or
        qualification under any state law, or (ii) an interpretative letter from
        the
        Securities and Exchange Commission to the effect that no enforcement action
        will
        be recommended if the proposed sale or transfer is made without registration
        under the Act.

       

      b. If,
        at
        the time of issuance of the shares issuable upon exercise of this Warrant,
        no
        registration statement is in effect with respect to such shares under applicable
        provisions of the Act, the Company may at its election require that the Holder
        provide the Company with written reconfirmation of the Holder’s investment
        intent and that any stock certificate delivered to the Holder of a surrendered
        Warrant shall bear legends reading substantially as follows:

       

      “THE
        SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
        DISPOSED OF IN THE ABSENCE
        OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 OR
        AN
        OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THIS CERTIFICATE THAT
        REGISTRATION IS NOT REQUIRED UNDER SAID ACT.”

       

      
        
          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

        

      

       

      In
        addition, so long as the foregoing legend may remain on any stock certificate
        delivered to the Holder, the Company may maintain appropriate “stop transfer”
orders with respect to such certificates and the shares represented thereby
        on
        its books and records and with those to whom it may delegate registrar and
        transfer functions.

       

      3. Reservation
        of Shares.
        The
        Company hereby agrees that at all times there shall be reserved for issuance
        upon the exercise of this Warrant such number of shares of its Common Stock
        as
        shall be required for issuance upon exercise of this Warrant. The Company
        further agrees that all shares which may be issued upon the exercise of the
        rights represented by this Warrant will be duly authorized and will, upon
        issuance and against payment of the exercise price, be validly issued, fully
        paid and non-assessable, free from all taxes, liens, charges and preemptive
        rights with respect to the issuance thereof, other than taxes, if any, in
        respect of any transfer occurring contemporaneously with such issuance and
        other
        than transfer restrictions imposed by federal and state securities
        laws.

       

      4. Exchange,
        Transfer or Assignment of Warrant.
        This
        Warrant is exchangeable, without expense, at the option of the Holder, upon
        presentation and surrender hereof to the Company or at the office of its
        stock
        transfer agent, if any, for other Warrants of different denominations, entitling
        the Holder or Holders thereof to purchase in the aggregate the same number
        of
        shares of Common Stock purchasable hereunder. Upon surrender of this Warrant
        to
        the Company or at the office of its stock transfer agent, if any, with the
        Assignment Form annexed hereto duly executed and funds sufficient to pay
        any
        transfer tax, the Company shall, without charge, execute and deliver a new
        Warrant in the name of the assignee named in such instrument of assignment
        and
        this Warrant shall promptly be canceled. This Warrant may be divided or combined
        with other Warrants that carry the same rights upon presentation hereof at
        the
        office of the Company or at the office of its stock transfer agent, if any,
        together with a written notice specifying the names and denominations in
        which
        new Warrants are to be issued and signed by the Holder hereof.

       

      
        5.Capital
          Adjustments.
          This
          Warrant is subject to the following further provisions:

      

       

      a. Until
        the
        earlier of ((i) twelve (12) months following the Initial Closing (as defined
        in
        the PPM) or (ii) the date that the “resale” registration statement covering the
        shares of Common Stock and the shares of Common Stock underlying the Warrants
        included within the Units sold in the Offering is declared effective by the
        Securities and Exchange Commission, in the event the Company issues or sells
        any
        shares of any class of the Company’s common stock or any Common Stock
        Equivalents entitling any person to acquire shares of Common Stock at an
        effective price per share that is lower than $2.00 per share (the “Dilutive
        Issuance”)
        at a
        price less than $2.00 per share (the “New
        Issuance Price”),
        other
        than Excluded Securities, then immediately after such Dilutive Issuance,
        the
        Cash Warrant Price then in effect shall be reduced to 200% of the New Issuance
        Price and the Cashless Warrant Price then in effect shall be reduced to 250%
        of
        the New Issuance Price. 

       

      
        
          
          

        

        
          -
            4
            -

          
            

          

        

        
          
          

        

      

       

      “Common
        Stock Equivalents”
shall
        mean any securities of the Company or any of its subsidiaries which would
        entitle the holder thereof to acquire at any time Common Stock, including,
        without limitation, any debt, preferred stock, rights, options, warrants
        or
        other instrument that is at any time convertible into or exercisable or
        exchangeable for, or otherwise entitles the holder thereof to receive, Common
        Stock

       

      “Excluded
        Securities”
shall
        mean the issuance of: (a) shares of Common Stock or options to employees,
        officers, directors, or consultants of the Company pursuant to any stock
        or
        option plan duly adopted for such purpose by a majority of the non-employee
        members of the Board of Directors of the Company or a majority of the members
        of
        a committee of non-employee directors established, (b) securities upon the
        exercise or exchange of or conversion of any securities issued hereunder
        and/or
        other securities exercisable or exchangeable for or convertible into shares
        of
        Common Stock issued and outstanding on the date of this Warrant, provided
        that
        such securities have not been amended since the date of this Warrant to increase
        the number of such securities or to decrease the exercise, exchange or
        conversion price of such securities; and (c) securities issued pursuant to
        acquisitions or strategic transactions approved by a majority of the
        disinterested directors of the Company, provided that any such issuance shall
        only be to a person which is either an owner of, or an entity that is, itself
        or
        through its subsidiaries, an operating company in a business synergistic
        with
        the business of the Company and in which the Company receives benefits in
        addition to the investment of funds, but shall not include a transaction
        in
        which the Company is issuing securities primarily for the purpose of raising
        capital or to an entity whose primary business is investing in
        securities.

       

      b. If
        any
        recapitalization of the Company or reclassification of its Common Stock or
        any merger or consolidation of the Company into or with a corporation or
        other
        business entity, or the sale or transfer of all or substantially all of the
        Company’s assets or of any successor corporation’s assets to any other
        corporation or business entity (any such corporation or other business entity
        being included within the meaning of the term “successor corporation”) shall be
        effected, at any time while this Warrant remains outstanding and unexpired,
        then, as a condition of such recapitalization, reclassification, merger,
        consolidation, sale or transfer, lawful and adequate provision shall be made
        whereby the Holder of this Warrant thereafter shall have the right to receive
        upon the exercise hereof as provided in Section 1 and in lieu of the shares
        of
        Common Stock immediately theretofore issuable upon the exercise of this Warrant,
        such shares of capital stock, securities or other property as may be issued
        or
        payable with respect to or in exchange for a number of outstanding shares
        of
        Common Stock equal to the number of shares of Common Stock immediately
        theretofore issuable upon the exercise of this Warrant had such
        recapitalization, reclassification, merger, consolidation, sale or transfer
        not
        taken place, and in each such case, the terms of this Warrant shall be
        applicable to the shares of stock or other securities or property receivable
        upon the exercise of this Warrant after such consummation.

       

      c. If
        the
        Company at any time while this Warrant remains outstanding and unexpired
        shall
        subdivide or combine its Common Stock, the number of shares of Warrant Stock
        purchasable upon exercise of this Warrant and each Warrant Price shall be
        proportionately adjusted.

       

      d. If
        the
        Company at any time while this Warrant is outstanding and unexpired shall
        issue
        or pay the holders of its Common Stock, or take a record of the holders of
        its
        Common Stock for the purpose of entitling them to receive, a dividend payable
        in, or other distribution of, Common Stock, then (i) each Warrant Price shall
        be
        adjusted in accordance with Section 5(f) and (ii) the number of shares of
        Warrant Stock purchasable upon exercise of this Warrant shall be adjusted
        to the
        number of shares of Common Stock that the Holder would have owned immediately
        following such action had this Warrant been exercised immediately prior
        thereto.

       

      
        
          
          

        

        
          -
            5
            -

          
            

          

        

        
          
          

        

      

       

      e. If
        the
        Company shall at any time after the date of issuance of this Warrant distribute
        to all holders of its Common Stock any shares of capital stock of the Company
        (other than Common Stock) or evidences of its indebtedness or assets (excluding
        cash dividends or distributions paid from retained earnings or current year’s or
        prior year’s earnings of the Company) or rights or warrants to subscribe for or
        purchase any of its securities (excluding those referred to in the immediately
        preceding paragraph) (any of the foregoing being hereinafter in this paragraph
        called the “Securities”), then in each such case, the Company shall reserve
        shares or other units of such securities for distribution to the Holder upon
        exercise of this Warrant so that, in addition to the shares of the Common
        Stock
        to which such Holder is entitled, such Holder will receive upon such exercise
        the amount and kind of such Securities which such Holder would have received
        if
        the Holder had, immediately prior to the record date for the distribution
        of the
        Securities, exercised this Warrant.

       

      f. Except
        as
        otherwise provided herein, whenever the number of shares of Warrant Stock
        purchasable upon exercise of this Warrant is adjusted, as herein provided,
        each
        Warrant Price payable upon the exercise of this Warrant shall be adjusted
        to
        that price determined by multiplying such Warrant Price immediately prior
        to
        such adjustment by a fraction (i) the numerator of which shall be the number
        of
        shares of Warrant Stock purchasable upon exercise of this Warrant immediately
        prior to such adjustment, and (ii) the denominator of which shall be the
        number
        of shares of Warrant Stock purchasable upon exercise of this Warrant immediately
        thereafter.

       

      g. The
        number of shares of Common Stock outstanding at any given time for purposes
        of
        the adjustments set forth in this Section 5 shall exclude any shares then
        directly or indirectly held in the treasury of the Company.

       

      h. The
        Company shall not be required to make any adjustment pursuant to this Section
        5
        if the amount of such adjustment would be less than one percent (1%) of both
        Warrant Prices in effect immediately before the event that would otherwise
        have
        given rise to such adjustment. In such case, however, any adjustment that
        would
        otherwise have been required to be made shall be made at the time of and
        together with the next subsequent adjustment which, together with any adjustment
        or adjustments so carried forward, shall amount to not less than one percent
        (1%) of both Warrant Prices in effect immediately before the event giving
        rise
        to such next subsequent adjustment.

       

      i. Following
        each computation or readjustment as provided in this Section 5, each new
        adjusted Warrant Price and number of shares of Warrant Stock purchasable
        upon
        exercise of this Warrant shall remain in effect until a further computation
        or
        readjustment thereof is required.

       

      
        
          
          

        

        
          -
            6
            -

          
            

          

        

        
          
          

        

      

       

      6. Redemption.
        This
        Warrant may be redeemed prior to the Expiration Date, at the option of the
        Company, at a price of $0.001 per share of Warrant Stock (“Redemption Price”),
        upon not less than 10 days prior written notice (“Redemption Period”) to Holder
        notifying Holder of the Company’s intent to exercise such right and setting
        forth a time and date for such redemption; provided,
        however,
        that no
        redemption under this Section 6 may occur unless (i) the Company’s Common Stock
        has had a closing sales price greater than $7.50 per share for twenty (20)
        consecutive trading days and (ii) at the date of redemption notice and during
        the entire Redemption Period there is an effective registration statement
        covering the resale of the Warrant Stock. This Warrant may be exercised by
        Holder, for cash, at any time after notice of redemption has been given by
        the
        Company and prior to the time and date fixed for redemption. On and after
        the
        redemption date, the Holder shall have no further rights except to receive,
        upon
        surrender of this Warrant, the Redemption Price.

       

      
        7.Notice
          to Holders.

      

       

      
        a.In
          case:

      

       

      (i) the
        Company shall take a record of the holders of its Common Stock (or other
        stock
        or securities at the time receivable upon the exercise of this Warrant) for
        the
        purpose of entitling them to receive any dividend (other than a cash dividend
        payable out of earned surplus of the Company) or other distribution, or any
        right to subscribe for or purchase any shares of stock of any class or any
        other
        securities, or to receive any other right;

       

      (ii) of
        any
        capital reorganization of the Company, any reclassification of the capital
        stock
        of the Company, any consolidation with or merger of the Company into another
        corporation, or any conveyance of all or substantially all of the assets
        of the
        Company to another corporation; or

       

      (iii) of
        any
        voluntary dissolution, liquidation or winding-up of the Company;

       

      then,
        and
        in each such case, the Company will mail or cause to be mailed to the Holder
        hereof at the time outstanding a notice specifying, as the case may be, (i)
        the
        date on which a record is to be taken for the purpose of such dividend,
        distribution or right, and stating the amount and character of such dividend,
        distribution or right, or (ii) the date on which such reorganization,
        reclassification, consolidation, merger, conveyance, dissolution, liquidation
        or
        winding-up is to take place, and the time, if any, is to be fixed, as of
        which
        the holders of record of Common Stock (or such stock or securities at the
        time receivable upon the exercise of this Warrant) shall be entitled to exchange
        their shares of Common Stock (or such other stock or securities) for securities
        or other property deliverable upon such reorganization, reclassification,
        consolidation, merger, conveyance, dissolution or winding-up. Such notice
        shall
        be mailed at least thirty (30) days prior to the record date therein specified,
        or if no record date shall have been specified therein, at least thirty (30)
        days prior to such specified date, provided, however, failure to provide
        any
        such notice shall not affect the validity of such transaction.

       

      b. Whenever
        any adjustment shall be made pursuant to Section 5 hereof, the Company shall
        promptly make a certificate signed by its Chairman, Chief Executive Officer,
        President, Vice President, Chief Financial Officer or Treasurer, setting
        forth
        in reasonable detail the event requiring the adjustment, the amount of the
        adjustment, the method by which such adjustment was calculated and each Warrant
        Price and number of shares of Warrant Stock purchasable upon exercise of
        this Warrant after giving effect to such adjustment, and shall promptly cause
        copies of such certificates to be mailed (by first class mail, postage prepaid)
        to the Holder of this Warrant.

       

      
        
          
          

        

        
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      8. Loss,
        Theft, Destruction or Mutilation.
        Upon
        receipt by the Company of evidence satisfactory to it, in the exercise of
        its
        reasonable discretion, of the ownership and the loss, theft, destruction
        or
        mutilation of this Warrant and, in the case of loss, theft or destruction,
        of
        indemnity reasonably satisfactory to the Company and, in the case of mutilation,
        upon surrender and cancellation thereof, the Company will execute and deliver
        in
        lieu thereof, without expense to the Holder, a new Warrant of like tenor
        dated
        the date hereof.

       

      9. Warrant
        Holder Not a Stockholder.
        The
        Holder of this Warrant, as such, shall not be entitled by reason of this
        Warrant
        to any rights whatsoever as a stockholder of the Company.

       

      10. Notices.
        Any
        notice required or contemplated by this Warrant shall be deemed to have been
        duly given if transmitted by registered or certified mail, return receipt
        requested, or nationally recognized overnight delivery service,
        to
        the
        Company at its principal executive offices located at 4225 Executive Square,
        Suite 460, La Jolla, California 92037, Attention: Juliet Singh, Ph. D., Chief
        Executive Officer, or to the Holder at the name and address set forth in
        the
        Warrant Register maintained by the Company.

       

      11. Choice
        of Law.
        THIS
        WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED
        IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING
        EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

       

      12. Jurisdiction
        and Venue.
        The
        Company and Holder hereby agree that any dispute which may arise between
        them
        arising out of or in connection with this Warrant shall be adjudicated before
        a
        court located in Kent County, Delaware and they hereby submit to the exclusive
        jurisdiction of the federal and state courts of the State of Delaware located
        in
        Kent County with respect to any action or legal proceeding commenced by any
        party, and irrevocably waive any objection they now or hereafter may have
        respecting the venue of any such action or proceeding brought in such a court
        or
        respecting the fact that such court is an inconvenient forum, relating to
        or
        arising out of this Warrant or any acts or omissions relating to the sale
        of the
        securities hereunder, and consent to the service of process in any such action
        or legal proceeding by means of registered or certified mail, return receipt
        requested, in care of the address set forth herein or such other address
        as
        either party shall furnish in writing to the other.

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
        
          
          

        

        
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      IN
        WITNESS WHEREOF, the Company has duly caused this Warrant to be signed on
        its
        behalf, in its corporate name and by its duly authorized officers, as of
        this __
        day of _____________________, 2007.

       

      
        	
                TRANSDEL
                  PHARMACEUTICALS, INC.

              
	 
	
                By:

              	
                 

              
	 	
                Name:
                  Juliet Singh, Ph.D.

              
	 	
                Title:
                  Chief Executive Officer

              

      

      
        
          
          

        

        
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      FORM
        OF
        EXERCISE

       

      (to
        be
        executed by the registered holder hereof)

       

       

       

      The
        undersigned hereby exercises the right to purchase _________ shares of common
        stock, par value $0.001 per share (“Common Stock”), of Transdel
        Pharmaceuticals,
        Inc.
        evidenced by the within Warrant Certificate for a Cash Warrant Price of $4.00
        per share or a Cashless Warrant Price of $5.00 per share and herewith makes
        payment of the purchase price in full of (i) $__________ in cash or (ii)
        shares
        of Common Stock (pursuant to a Cashless Exercise in accordance with Section
        1b.). Kindly issue certificates for shares of Common Stock (and for the
        unexercised balance of the Warrants evidenced by the within Warrant Certificate,
        if any) in accordance with the instructions given below.

       

       

       

      Dated:____________________
        , 20___ .

      

      

      ______________________________

      Instructions
        for registration of stock

      

      _____________________________

                
          Name
        (Please Print)

      

      Social
        Security or other identifying Number:

      

      Address:__________________________________

                                    
         City/State
        and Zip Code

      

      Instructions
        for registration of certificate representing 

      the
        unexercised balance of Warrants (if any)

      

      _____________________________
        

      Name
        (Please Print)

       

      Social
        Security or other identifying Number: ___________

      

      Address:____________________________________

                                      
        City, State and Zip Code 

      

      
        
          
          

        

        
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