Document:

Exhibit 10.5

 

NEITHER THIS SECURITY NOR THE SECURITY INTO WHICH
THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

 

	
  Warrant No. W-May07-2

  	
   

  	
  250,000 Warrants

  

 

Void after 5:00 p.m.,
Eastern Standard Time on November 30, 2012

 

COMMON STOCK

PURCHASE WARRANT

 

OF

 

VIRIUM
PHARMACEUTICALS INC.

 

VIRIUM PHARMACEUTICALS INC., a New
York corporation (the “Company”), hereby certifies that, for value
received, Strategic Capital Resources, Inc. (the “Warrant Holder”) is
the owner of the number of common stock purchase warrants (“Warrants”)
specified above, each of which entitles the holder thereof to purchase, at any
time during the period commencing on the Commencement Date (as defined herein)
and ending on the Expiration Date (as defined herein), one fully paid and
non-assessable share of common stock, par value $0.001 per share, of the
Company (the “Common Stock”) at a purchase price equal to the Exercise
Price (as defined below) in lawful money of the United States of America in
cash, subject to adjustment as hereinafter provided.

 

1.             WARRANT; EXERCISE PRICE.

 

1.1           This Warrant is issued pursuant to a Subscription Agreement
dated as of May 30, 2007, by and among the Company and the Subscribers set
forth therein (the “Subscription Agreement”) and that certain Amendment
to Convertible Promissory Note dated as of November 26, 2007, by and
between the Company and the Warrant Holder.

 

 

1.2           Each Warrant shall entitle the Warrant Holder to purchase
one share of Common Stock of the Company (individually, a “Warrant Share”
severally, the “Warrant Shares”).

 

1.3           The purchase price payable upon exercise of each Warrant (“Exercise
Price”) shall initially be $1.00. The Exercise Price and number of Warrant
Shares purchasable pursuant to each Warrant are subject to adjustment as
provided in Section 8.

 

2.             EXERCISE OF WARRANT; EXPIRATION
DATE.

 

2.1           This Warrant is exercisable at any time and from time to
time commencing the date hereof (“Commencement Date”) and ending at 5:00 p.m.,
Eastern Time on November 30, 2012 (the “Expiration Date”), in whole
or from time to time in part, at the option of the Warrant Holder, upon
surrender of this Warrant to the Company together with a duly completed Notice
of Exercise in the form attached hereto and payment of an amount equal to the
then applicable Exercise Price multiplied by the number of Warrant Shares then
being purchased upon such exercise.

 

2.2           Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the day on which this
Warrant shall have been surrendered to the Company as provided in Section 2.1.  At such time, the person or persons in whose
name or names any certificates for Warrant Shares shall be issuable upon such
exercise as provided in Section 2.3 below shall be deemed to have become
the holder or holders of record of the Warrant Shares represented by such
certificates.

 

2.3           Within three business days after the exercise of the
purchase right represented by this Warrant, the Company at its expense will use
its reasonable best efforts to cause to be issued in the name of, and delivered
to, the Warrant Holder, or, subject to the terms and conditions hereof, to such
other individual or entity as such Warrant Holder (upon payment by such Warrant
Holder of any applicable transfer taxes) may direct:

 

(a)           a certificate or certificates for the number of full Warrant
Shares to which such Warrant Holder shall be entitled upon such exercise plus,
in lieu of any fractional share to which such Warrant Holder would otherwise be
entitled, cash in an amount determined pursuant to Section 2.4 hereof, and

 

(b)           in case such exercise is in part only, a new Warrant or
Warrants (dated the date hereof) of like tenor, stating on the face or faces
thereof the number of shares currently stated on the face of this Warrant minus
the number of such shares purchased by the Warrant Holder upon such exercise as
provided in Section 2.2 (in each case prior to any adjustments made
thereto pursuant to the provisions of this Warrant).

 

2.4           The Company shall not be required upon the exercise of this
Warrant to issue any fractional shares, but shall make an adjustment thereof in
cash on the basis of the “last sale price” (as defined below) of the Company’s
Common Stock on the trading day immediately prior to the date of exercise.  For purposes of this Section 2.4, “last
sale price” shall mean (i) if the Common Stock is listed on an Exchange or
quoted on the Nasdaq markets or NASD OTC

 

2

 

Bulletin Board (or successor such as the
Bulletin Board Exchange), the last sale price of the Common Stock in the
principal trading market for the Common Stock as reported by the Exchange,
Nasdaq or the NASD, as the case may be; (ii) if the Common Stock is not
listed on an Exchange or quoted on the Nasdaq markets, or the NASD OTC Bulletin
Board (or successor such as the Bulletin Board Exchange), but is traded in the
over-the-counter market, the closing bid price for the Common Stock on the last
trading day preceding the date in question for which such quotations are
reported by the Pink Sheets, LLC or similar publisher of such quotations; and (iii) if
the fair market value of the Common Stock cannot be determined pursuant to
clause (i) or (ii) above, such price as the Board of Directors of the
Company shall determine, in good faith, in the Board’s sole discretion.

 

3.             REGISTRATION AND TRANSFER ON
COMPANY BOOKS.

 

3.1           The Company (or an agent of the Company) will maintain a
register containing the names and addresses of the Warrant Holders.  Any Warrant Holder may change its, his or her
address as shown on the warrant register by written notice to the Company
requesting such change.

 

3.2           The Company shall register upon its books any transfer of a
Warrant upon surrender of same as provided in Section 5.

 

4.             RESERVATION OF SHARES.  The Company will at all times reserve and
keep available, solely for issuance and delivery upon the exercise of this
Warrant, such Warrant Shares and other stock, securities and property, as from
time to time shall be issuable upon the exercise of this Warrant.  As long as the Warrant shall be
outstanding, the Company shall use its commercially reasonable efforts to cause
all Warrant Shares issuable upon exercise of the Warrants to be listed (subject
to official notice of issuance) on each Exchange (or, if applicable on Nasdaq, NASD
OTC Bulletin Board or Pink Sheets, LLC or any successor electronic quotation
service and trading market) on which the Common Stock is then listed and/or
quoted, if any.

 

5.             EXCHANGE,
TRANSFER, ASSIGNMENT OR LOSS OR MUTILATION OF WARRANTS.  This Warrant is exchangeable, without
expense, at the option of the Warrant Holder, upon presentation and surrender
hereof to the Company for other warrants of different denominations entitling
the holder thereof to purchase in the aggregate the same number of shares of
Common Stock purchasable hereunder. 
Subject to the terms of Sections 6 and 7, upon surrender of this Warrant
to the Company at its principal office or at the office of its 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 be promptly canceled.  Subject to the terms of Sections 6 and 7, this
Warrant may be divided or combined with other warrants which carry the same
rights upon presentation hereof at the principal office of the Company together
with a written notice specifying the names and denominations in which new
Warrants are to be issued and signed by the Warrant Holder hereof.  The term “Warrant” as used herein includes
any Warrants into which this Warrant may be divided or exchanged.  Upon receipt by the Company of reasonable
evidence of the ownership of

 

3

 

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, or, in the case of mutilation, upon
surrender and cancellation of the mutilated Warrant, the Company shall execute
and deliver in lieu thereof a new Warrant of like tenor and date representing
an equal number of Warrants.

 

6.             LIMITATION
ON EXERCISE AND SALES.

 

(a)           Each holder of this Warrant
acknowledges that this Warrant and the Warrant Shares have not been registered
under the Securities Act, as of the date of issuance hereof.  This Warrant only may be transferred in
compliance with this Section 6 and Section 7. The Company shall be
under no obligation to issue the shares covered by such exercise unless and
until the Warrant Holder shall have executed the form of exercise annexed
hereto that states that at the time of such exercise that it is then an “accredited
investor” within the meaning of Rule 501 of Regulation D, is acquiring
such shares for its own account, and will not transfer the Warrant Shares
unless pursuant to an effective and current registration statement under the
Securities Act or an exemption from the registration requirements of the
Securities Act and any other applicable restrictions, in which event the
Warrant Holder shall be bound by the provisions of a legend or legends to such
effect that shall be endorsed upon the certificate(s) representing the
Warrant Shares issued pursuant to such exercise.  In such event, the Warrant Shares issued upon
exercise hereof shall be imprinted with a legend in substantially the form
provided in Section 7(b).

 

(b)           Warrant
Holder represents and warrants that it is acquiring this Warrant for its own
account, for purposes of investment, and not with a view to, or for sale in
connection with, any distribution thereof within the meaning of the Securities
Act and the rules and regulations promulgated thereunder.  Warrant Holder represents, warrants and
agrees that it will not sell, exercise, transfer or otherwise dispose of this
Warrant (or any interest therein) or any of the Common Stock purchasable upon
exercise hereof, except pursuant to (i) an effective registration
statement under the Securities Act and applicable state securities laws or (ii) an
opinion of counsel, satisfactory to Company, that an exemption from
registration under the Securities Act and such laws is available.  Warrant Holder further acknowledges and
agrees that Company is not required, legally or contractually, so to register
or qualify the Warrant or such Common Stock or to take any action to make such
an exemption available.  Warrant Holder
understands that Company will be relying upon the truth and accuracy of the
representations and warranties contained in this Section 6 in issuing this
Warrant and such Common Stock without first registering the issuance thereof
under the Securities Act or qualifying or registering the issuance thereof
under any state securities laws that may be applicable.

 

(c)           Warrant
Holder acknowledges that (i) there is not now, and there may not be in the
future, any public market for the Warrant, (ii) although there currently
is not a public trading market for the Common Stock, there can be no assurance
that any such market will be created and sustained, and (iii) there can be
no assurance that Warrant Holder will be able to liquidate its investment in
Company.  Warrant Holder represents and
warrants that it is familiar with and understands the terms and conditions of Rule 144
promulgated under the Securities Act.

 

(d)           Warrant
Holder represents and warrants to Company that (i) it has such knowledge
and experience in financial and business matters as is necessary to enable it
to

 

4

 

evaluate the merits and
risks of any investments in Company and is not utilizing any other person to be
a purchaser representative in connection with evaluation of such merits and
risks; and (ii) it has no need for liquidity in an investment in Company
and is able to bear the risk of that investment for an indefinite period and to
afford a complete loss thereof.

 

(e)           Warrant
Holder represents and warrants that it has had access to, and has been
furnished with, all of the information it has requested from Company and has
had an opportunity to review the books and records of Company and to discuss
with management and members of the board of directors of Company the business
and financial affairs of Company.

 

(f)            Warrant
Holder agrees that at the time of each exercise of this Warrant, unless the
issuance of shares of Common Stock issuable thereupon is pursuant to an
effective registration statement under the Securities Act and under applicable
state blue sky laws, Warrant Holder will provide Company with a letter
embodying the representations and warranties set forth in subsections (b) through
(e), in form and substance satisfactory to Company, and agrees that the
certificate(s) representing any shares issued to it upon any exercise of
this Warrant may bear such restrictive legend as Company may deem necessary to
reflect the restricted status of such shares under the Securities Act unless
Company shall have received from Warrant Holder an opinion of counsel to
Warrant Holder, reasonably satisfactory in form and substance to Company and
its counsel, that such restrictive legend is not required.

 

7.             TRANSFER
RESTRICTIONS.

 

(a)           If,
at the time of the surrender of this Warrant in connection with any transfer of
this Warrant, the transfer of this Warrant shall not be registered pursuant to
an effective registration statement under the Securities Act and under
applicable state securities or blue sky laws, the Company may require, as a
condition of allowing such transfer (i) that the Warrant Holder or
transferee of this Warrant, as the case may be, furnish to the Company a
written opinion of counsel (which opinion shall be in form, substance and scope
customary for opinions of counsel in comparable transactions and reasonably
satisfactory to counsel for the Company) to the effect that such transfer may
be made without registration under the Securities Act and under applicable
state securities or blue sky laws, (ii) that the holder or transferee
execute and deliver to the Company an investment letter in form and substance
acceptable to the Company, (iii) that transferee agree in writing with the
Company to be bound by the terms and conditions of this Warrant applicable to
the Warrant Holder and (iv) that the transferee be an “accredited investor”
as defined in Regulation D promulgated under the Securities Act.

 

(b)           The
Common Stock issuable on the exercise of the Warrant shall bear the following
legend:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION, OR THE SECURITIES COMMISSION OF ANY STATE, IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR

 

5

 

PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.

 

(c)           The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

 

8.             ADJUSTMENT OF EXERCISE PRICE AND
NUMBER OF SHARES DELIVERABLE.
 The Exercise Price and the number of
Warrant Shares purchasable pursuant to each Warrant shall be subject to
adjustment from time to time as hereinafter set forth in this Section 8:

 

(a)           In case, prior to the expiration of this Warrant by exercise
or by its terms, the Company shall issue any shares of its Common Stock as a
stock dividend or subdivide the number of outstanding shares of its Common
Stock into a greater number of shares, then in either of such cases, the then
applicable Exercise Price per Warrant Share purchasable pursuant to this
Warrant in effect at the time of such action shall be proportionately reduced
and the number of Warrant Shares at that time purchasable pursuant to this Warrant
shall be proportionately increased; and conversely, in the event the Company
shall reduce the number of outstanding shares of Common Stock by combining such
shares into a smaller number of shares, then, in such case, the then applicable
Exercise Price per Warrant Share purchasable pursuant to this Warrant in effect
at the time of such action shall be proportionately increased and the number of
Warrant Shares at that time purchasable pursuant to this Warrant shall be
proportionately decreased.  If the Company
shall, at any time during the life of this Warrant, declare a dividend payable
in cash on its Common Stock and shall at substantially the same time offer to
its stockholders a right to purchase new Common Stock from the proceeds of such
dividend or for an amount substantially equal to the dividend, all Common Stock
so issued shall, for the purpose of this Warrant, be deemed to have been issued
as a stock dividend.  Any dividend paid
or distributed upon the Common Stock in stock of any other class of securities
convertible into shares of Common Stock shall be treated as a dividend paid in
Common Stock to the extent that shares of Common Stock are issuable upon
conversion thereof.

 

(b)           In case, prior to the expiration of this Warrant by exercise
or by its terms, the Company shall be recapitalized by reclassifying its
outstanding Common Stock, (other than a change in par value to no par value),
or the corporation or a successor corporation shall consolidate or merge with
or convey all or substantially all of its or of any successor corporation’s
property and assets to any other corporation or corporations (any such other
corporations being included within the meaning of the term “successor
corporation” hereinbefore used in the event of any consolidation or merger of
any such other corporation with, or the sale of all or substantially all of the
property of any such other corporation to, another corporation or
corporations), then, as a condition of such recapitalization, consolidation,
merger or conveyance, lawful and adequate provision shall be made whereby the
holder of this Warrant shall thereafter have the right to purchase, upon the
basis and on the terms and conditions specified in this

 

6

 

Warrant, in lieu of
the Warrant Shares theretofore purchasable upon the exercise of this Warrant,
such shares of stock, securities or assets as may be issued or payable with
respect to, or in exchange for, the number of Warrant Shares theretofore
purchasable upon the exercise of this Warrant had such recapitalization,
consolidation, merger, or conveyance not taken place; and in any such event,
the rights of the Warrant Holder to any adjustment in the number of Warrant
Shares purchasable upon the exercise of this Warrant, as herein provided, shall
continue and be preserved in respect of any stock which the Warrant Holder
becomes entitled to purchase.

 

(c)           In case the Company at any time while this Warrant shall
remain unexpired and unexercised shall sell all or substantially all of its
property or dissolve, liquidate, or wind up its affairs, lawful provision shall
be made as part of the terms of any such sale, dissolution, liquidation or
winding up, so that the holder of this Warrant may thereafter receive upon
exercise hereof in lieu of each Warrant Share that it would have been entitled
to receive, the same kind and amount of any securities or assets as may be
issuable, distributable or payable upon any such sale, dissolution, liquidation
or winding up with respect to each share of Common Stock of the Company,
provided, however, that in any case of any such sale or of dissolution,
liquidation or winding up, the right to exercise this Warrant shall terminate
on a date fixed by the Company; such date so fixed to be not earlier than 5:00 p.m.,
Eastern Time, on the forty-fifth day next succeeding the date on which notice
of such termination of the right to exercise this Warrant has been given by
mail to the registered holder of this Warrant at its address as it appears on
the books of the Company.

 

9.             VOLUNTARY ADJUSTMENT BY THE
COMPANY.  The Company may, at its option, at any time
during the term of the Warrants, reduce the then current Exercise Price to any
amount deemed appropriate by the Board of Directors of the Company and/or
extend the date of the expiration of the Warrants.

 

10.           RIGHTS OF THE HOLDER. The Warrant Holder shall not,
by virtue hereof, be entitled to any rights of a stockholder in the Company,
either at law or equity, and the rights of the Warrant Holder are limited to
those expressed in this Warrant and are not enforceable against the Company
except to the extent set forth herein. This Warrant does not entitle the Holder
to any voting rights or other rights as a shareholder of the Company prior to
the Exercise Date and then only with respect to the Warrant Shares to be issued
with respect thereto.

 

11.           NOTICES OF RECORD DATE.  In case:

 

(a)           the Company shall take a record of the holders of its Common
Stock (or other stock or securities at the time deliverable upon the exercise
of this Warrant) for the purpose of entitling or enabling them to receive any
dividend or other distribution, or to receive any right to subscribe for or
purchase any shares of any class or any other securities, or to receive any
other right, or

 

(b)           of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation (other than a
consolidation or merger in which the Company is the surviving entity), or any
transfer of all or substantially all of the assets of the Company, or

 

7

 

(c)           of the voluntary or involuntary 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 Warrant Holder 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 effective date on
which such reorganization, reclassification, consolidation, merger, transfer,
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
other stock or securities at the time deliverable 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, transfer, dissolution, liquidation or
winding-up.  Such notice shall be mailed
at least ten days prior to the record date or effective date for the event
specified in such notice, provided that the failure to mail such notice shall
not affect the legality or validity of any such action.  The Company shall not be required to deliver
any such notice with respect to the transactions contemplated by the Agreement
and Plan of Merger, dated as of May 25, 2007, by and among the Company,
REIT Americas, Inc., a Maryland Corporation, Virium Pharmaceuticals, Inc.,
a Delaware corporation and Virium Merger Sub, Inc., a Delaware
corporation.

 

12.           SUCCESSORS.  The rights and obligations of the parties to
this Warrant will inure to the benefit of and be binding upon the parties
hereto and their respective heirs, successors, assigns, pledgees, transferees
and purchasers.

 

13.           CHANGE OR WAIVER.  Any term of this Warrant may be changed or waived
only by an instrument in writing signed by the party against whom enforcement
of the change or waiver is sought.

 

14.           HEADINGS.  The headings in this Warrant are for purposes
of reference only and shall not limit or otherwise affect the meaning of any
provision of this Warrant. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

 

15.           GOVERNING LAW.  This Note shall be governed by and construed
in accordance with the laws of the State of New York.  Any action brought by either party against
the other concerning the transactions contemplated by this Note shall be
brought only in the state courts of Florida or in the federal courts located in
the state of Florida.  The prevailing
party shall be entitled to recover from the other party its reasonable attorney’s
fees and costs.

 

16.           MAILING OF NOTICES, ETC.  All
notices and other communications required or permitted hereunder shall be in
writing and shall be deemed to have been duly given one (1) business day
after delivery to an overnight carrier with instructions to deliver to the
applicable

 

8

 

address set forth below, or, if
sent by facsimile, upon receipt of a confirmation of delivery:

 

	
   

  	
  Registered Holder:

  	
  To his or her last known address as
  indicated on the Company’s books and records.

  
	
   

  	
   

  
	
   

  	
  The Company:

  	
  Virium Pharmaceuticals Inc.

  
	
   

  	
  116 Village Blvd.

  
	
   

  	
  Suite 200

  
	
   

  	
  Princeton, NJ 08540

  
	
   

  	
  Attention:  President

  
	
   

  	
  Fax: (908) 292-1096

  

 

[Signature Page Follows]

 

9

 

IN WITNESS WHEREOF, the Company has
caused this Warrant to be signed by its duly authorized officer as of November 26,
2007

 

 

	
   

  	
  VIRIUM PHARMACEUTICALS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James M. Pachence

  
	
   

  	
  Name: James
  M. Pachence

  
	
   

  	
  Title: President
  and Chief Executive Officer

  

 

10

 

Notice of Exercise

To Be Executed by the
Warrant Holder

In Order to Exercise
Warrants

 

TO:
  Virium
Pharmaceuticals Inc.

 

The undersigned hereby: (1) irrevocably
subscribes for and offers to purchase               
shares of the common stock, par value $.001 per share (“Common Stock”),
of Virium Pharmaceuticals Inc., pursuant to Warrant No.                       
heretofore issued to                                       
on November 26, 2007 and (2) encloses a cash payment of $                    
representing the aggregate exercise price for such shares.

 

The undersigned hereby represents and warrants to
the Company that it is an “Accredited Investor” within the meaning of Rule 501
of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities
Act”), and is acquiring these securities for its own account and not with a
view to, or for sale in connection with, any distribution thereof, nor with any
present intention of distributing or selling the same.  The undersigned further represents that it
does not have any contract, agreement, understanding or arrangement with any person
to sell, transfer or grant the shares of Common Stock issuable under this
Warrant.  The undersigned understands
that the shares it will be receiving are “restricted securities” under Federal
securities laws inasmuch as they are being acquired from Virium Pharmaceuticals
Inc., in transactions not including any public offering and that under such
laws, such shares may only be sold pursuant to an effective and current
registration statement under the Securities Act or an exemption from the
registration requirements of the Securities Act and any other applicable
restrictions, in which event a legend or legends will be placed upon the
certificate(s) representing the Common Stock issuable under this Warrant
denoting such restrictions.  The
undersigned understands and acknowledges that the Company will rely on the
accuracy of these representations and warranties in issuing the securities
underlying the Warrant.

 

[warrant notice of exercise
signature page to follow]

 

11

 

[warrant notice of exercise
signature page]

 

	
  Date:

  	
   

  
	
   

  
	
  Warrant Holder Name:

  	
   

  
	
   

  
	
  Taxpayer Identification Number:

  	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  
	
  Printed Name:

  	
   

  
	
   

  
	
  Title:

  	
   

  
	
   

  
	
  Address:

  	
   

  
								

 

Note: The above signature should correspond exactly
with the name on the face of this Warrant or with the name of assignee
appearing in assignment form below.

 

AND,
if said number of shares shall be less than the total number of shares
purchasable under the Warrant, a new Warrant is to be issued in the name of
said undersigned for the balance remaining of the shares purchasable thereunder
less any fraction of a share paid in cash and delivered to the address stated
above.

 

 

ASSIGNMENT FORM

To
be executed by the Warrant Holder

In
order to Assign Warrants

 

FOR
VALUE RECEIVED,                                                                        
hereby sells, assigns and transfers unto

 

PLEASE
INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

 

 

 

	
   

  
	
   

  
	
   

  
	
   

  
	
   

  

(Please print or type name
and address)

 

                                            
of the Warrants represented by this Warrant, and hereby irrevocably constitutes
and appoints                                                 
Attorney to transfer this Warrant on the books of the Company, with full power
of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature
  of Registered Holder)

  

 

 

In
addition to executing this Assignment Form, the Warrant Holder and the
transferee must comply with the other requirements for transfer set forth in
Sections 6 and 7 of the Warrant.

 

CERTIFICATION OF STATUS OF TRANSFEREE

TO BE EXECUTED BY THE TRANSFEREE OF THIS WARRANT

 

The
undersigned transferee hereby certifies to the registered holder of this
Warrant and to VIRIUM PHARMACEUTICALS INC. that the transferee is an “accredited
investor” within the meaning of Rule 501 of Regulation D promulgated under
the Securities Act of 1933, as amended.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature
  of Transferee)

  

 

13Exhibit
10.6

 

AMENDMENT NO. 2 TO
CONVERTIBLE PROMISSORY NOTE

AND

AMENDMENT TO WARRANTS

 

This Amendment, dated as of March 26, 2008, (the “Amendment”)
is by and between Virium Pharmaceuticals, Inc., a New York corporation
(the “Company”) and Strategic Capital Resources, Inc (the “Holder”)
and, among other things, amends certain provisions of (i) the Convertible
Promissory Note in the original principal amount of $500,000, issued by the
Company as Certificate No. PN-May-1 and dated as of May 30, 2007 (as
amended pursuant to Amendment No. 1 (defined below), the “Note”), (ii) the
Warrant (Warrant No. W-May07-1) representing the right to purchase up to
250,000 shares of the Company’s common stock, par value $0.001 per share (the “Common
Stock”) and issued to the Holder on May 30, 2007 (the “May 2007
Warrant”) and (iii) the Warrant (Warrant No. W-May07-2)
representing the right to purchase up to 250,000 shares of Common Stock and
issued to the Holder on November 30, 2007 (the “November 2007
Warrant”).

 

WHEREAS, pursuant
to the Subscription Agreement, dated as of May 30, 2007, by and between
the Company and the Holder (the “Subscription Agreement”), the Company
issued to the Holder the Note and the May 2007 Warrant;

 

WHEREAS, pursuant to the Amendment to Convertible Promissory Note Due November 26,
2007 dated as of November 26, 2007, by and between the Company and the
Holder (“Amendment No. 1”), the parties made certain modifications
to the terms and conditions of the Note and the Company issued to the Holder
the November 2007 Warrant;

 

WHEREAS, the
Company is currently contemplating a potential merger transaction pursuant to
which the Company would be acquired by a third party (the “Merger
Transaction”); and

 

WHEREAS, the
Company and Holder have agreed to modify certain terms and conditions of the
Note, the May 2007 Warrant and the November 2007 Warrant as
specifically set forth in this Amendment.

 

NOW, THEREFORE, in
consideration of the mutual agreements contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Amendments to the Note.  The Note is hereby amended such that
references to “March 26, 2008” in the Note are hereby deleted and replaced
with “April 25, 2008.”

 

2.             Amendments to the Warrants.  Each of the May 2007 Warrant and the November 2007
Warrant is hereby amended by deleting the first sentence in Section 1.3 

 

 

thereof and
replacing it with the following:  “The
purchase price payable upon exercise of each Warrant (“Exercise Price”)
shall initially be $0.60.”

 

3.             Effectiveness.  This Amendment shall be effective as of March 26,
2008.

 

4.             Payment of
Interest and Fee. Upon the earlier of (a) the consummation of the
Merger Transaction and (b) April 18, 2008, the Company shall promptly
pay to the Holder in cash all accrued and unpaid interest on the Note through
the date of such payment plus a $10,000 loan modification fee in connection
with the amendments set forth in Sections 1 and 2 above.  For avoidance of doubt, any interest paid in
cash shall not be eligible for conversion in accordance with the terms of the
Note.

 

5.             Ratification, Etc.  Except as expressly amended hereby, all terms
and conditions of the Note, the May 2007 Warrant and the November 2007
Warrant are hereby ratified and confirmed in all respects and shall continue in
full force and effect.  The obligations
under the Note shall be deemed to be continuously outstanding and shall not be
deemed to have been repaid and readvanced or refinanced hereunder or
hereby.  All references to the Note shall
hereafter refer to such Note, as amended hereby. All references to the May 2007
Warrant shall hereafter refer to such May 2007 Warrant, as amended hereby.
All references to the November 2007 Warrant shall hereafter refer to such November 2007
Warrant, as amended hereby.

 

6.             No Novation.  THE COMPANY AND HOLDER HAVE ENTERED INTO THIS
AMENDMENT, AMONG OTHER THINGS, TO AMEND CERTAIN OF THE TERMS OF THE NOTE.  THEY DO NOT INTEND THIS AMENDMENT NOR THE TRANSACTIONS
CONTEMPLATED HEREBY TO BE, AND THIS AMENDMENT AND THE TRANSACTION CONTEMPLATED
HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING
UNDER OR IN CONNECTION WITH THE NOTE.

 

7.             No Waiver.  Nothing contained herein shall constitute a
waiver of, impair or otherwise affect, any obligation of the Company under the
Note, the May 2007 Warrant, the November 2007 Warrant or any rights
of the Holder consequent thereon.

 

8.             Counterparts.  This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original but which together
shall constitute one and the same instrument. 
Any executed counterpart of this Amendment delivered by facsimile or
other means of electronic image transmission shall be valid and binding in all
respects and shall have the same force and effect as an original thereof.

 

9.             Governing  Law.  This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York (without
reference to conflict of laws).

 

[Signature
page follows]

 

2

 

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment as a document under
seal as of the date first above written.

 

	
   

  	
  Company:

  
	
   

  	
   

  
	
   

  	
  VIRIUM PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James M. Pachence

  
	
   

  	
   

  	
  Name: James M. Pachence

  
	
   

  	
   

  	
  Title: President and Chief Executive 

  
	
   

  	
   

  	
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Holder:

  
	
   

  	
   

  
	
   

  	
  STRATEGIC CAPITAL RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David D. Miller

  
	
   

  	
   

  	
  Name: David D. Miller

  
	
   

  	
   

  	
  Title: President

  

 

3

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