Document:

Exhibit 4.16

 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS
OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED
OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE
SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

WARRANT TO PURCHASE STOCK

	
  Company: TORREYPINES THERAPEUTICS, INC., a
  Delaware corporation

  
	
  Number of Shares: as set forth below

  
	
  Class of Stock: as set forth below

  
	
  Warrant Price: as set forth below

  
	
  Issue Date:     , 2005]

  
	
  Expiration Date: The longer of (i) the 10th
  anniversary after the Issue Date, and (ii) five years after the closing of
  the Company’s initial public offering of its Common Stock, or such earlier
  time as provided in this Warrant.

  

 

THIS WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for
other good and valuable consideration, including without limitation the mutual
promises contained in that certain Loan and Security Agreement of even date
herewith (the “Loan Agreement”) entered into by and among
[       ] (“Holder”),
[       ] and the company named above (the “Company”),
Holder is entitled to purchase the number of fully paid and nonassessable
shares of the class of securities (the “Shares”) of the Company at the Warrant
Price, all as set forth above and as adjusted pursuant to Article 2 of
this Warrant, subject to the provisions and upon the terms and conditions set
forth in this Warrant.  This Warrant is
issued in connection with the Loan Agreement.

As used herein:

The number of “Shares” purchasable under
this Warrant is equal to the Initial Shares plus the Additional Shares, and “Shares”
means the Initial Shares plus the Additional Shares.

“Additional Shares” means that cumulative
number of shares of the then applicable Class of Stock equal to: (a) 2.75% of
each Growth Capital Advance (as defined in the Loan Agreement made to the
Company) made by [       ], divided by (b)
the Warrant Price.

“Certificate” means the Company’s Certificate
of Incorporation, as amended from time to time.

“Class of Stock” means: (i) until the
Qualified Financing occurs, the Company’s Series C Preferred Stock, and (ii) if
the Qualified Financing occurs prior to exercise or termination of this Warrant:

(a)           if the Qualified Financing Stock
Price is greater than the Series C Preferred Price or if the liquidation
preference of the Qualified Financing Stock (with regard to position) is less
than the liquidation preference of the Series C Preferred Stock, then the “Class
of Stock” means the Company’s Series C Preferred Stock, and

(b)           if
the Qualified Financing Stock Price is less than or equal to the Series C
Preferred Price and the Qualified Financing Stock has an equal to or better
liquidation preference (with regard to position) than the Series C Preferred
Stock, then the “Class of Stock” means the Company’s Qualified Financing Stock.

“Initial Shares” means the number of shares of Series C Preferred Stock
equal to the number determined by dividing
[       ] by the Warrant Price (rounded down
to the nearest whole number).

“Qualified Financing” means the first sale (or series of related sales)
of the convertible preferred stock of the Company following the Issue Date to
purchasers which include venture capital investors or other institutional (not
strategic) investors that results in aggregate gross cash proceeds in an amount
not less than $3,000,000 (excluding the conversion of any convertible notes or
other securities).

“Qualified Financing Stock “ means the Company’s convertible preferred
stock sold in the Qualified Financing.

“Qualified Financing Stock Price” means the lowest effective price per
share (on a common stock equivalent basis and taking into account any
securities issued together with the preferred stock) at which shares of
Qualified Financing Stock are sold in the Qualified Financing.

“Series C Price” means $1.50 (as adjusted for any stock split,
dividend, etc.)

“Warrant Price” means: (a) if the Shares are Series C Preferred Stock,
then the Series C Price, and (b) if the Shares are Qualified Financing Stock,
then the Qualified Financing Stock Price.

ARTICLE 1. EXERCISE.

1.1           Method of Exercise. 
Holder may exercise this Warrant by delivering a duly executed Notice of
Exercise in substantially the form attached as Appendix 1 to the principal
office of the Company.  Unless Holder is
exercising the conversion right set forth in Article 1.2, Holder shall also
deliver to the Company a check, wire transfer (to an account designated by the
Company), or other form of payment acceptable to the Company for the aggregate
Warrant Price for the Shares being purchased.

1.2           Conversion Right. 
In lieu of exercising this Warrant as specified in Article 1.1, Holder
may from time to time convert this Warrant, in whole or in part, into a number
of Shares determined by dividing (a) the aggregate fair market value of the 

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Shares or other securities otherwise issuable upon
exercise of this Warrant minus the aggregate Warrant Price of such Shares by
(b) the fair market value of one Share. 
The fair market value of the Shares shall be determined pursuant to
Article 1.3.

1.3           Fair Market Value. 
If the Company’s common stock is traded in a public market and the
Shares are common stock, the fair market value of each Share shall be the
closing price of a Share reported for the business day immediately before
Holder delivers its Notice of Exercise to the Company (or in the instance where
the Warrant is exercised immediately prior to the effectiveness of the Company’s
initial public offering, the “price to public” per share price specified in the
final prospectus relating to such offering). 
If the Company’s common stock is traded in a public market and the
Shares are preferred stock, the fair market value of a Share shall be the closing
price of a share of the Company’s common stock reported for the business day
immediately before Holder delivers its Notice of Exercise to the Company (or,
in the instance where the Warrant is exercised immediately prior to the
effectiveness of the Company’s initial public offering, the initial “price to
public” per share price specified in the final prospectus relating to such
offering), in both cases, multiplied  by
the number of shares of the Company’s common stock into which a Share is
convertible.  If the Company’s common
stock is not traded in a public market, the Board of Directors of the Company
shall determine fair market value in its reasonable good faith judgment.

1.4           Delivery of Certificate and New Warrant.  Promptly after Holder exercises or converts
this Warrant and, if applicable, the Company receives payment of the aggregate
Warrant Price, the Company shall deliver to Holder certificates for the Shares
acquired and, if this Warrant has not been fully exercised or converted and has
not expired, a new Warrant representing the Shares not so acquired.

1.5           Replacement of Warrants.  On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and amount to the Company
or, in the case of mutilation on surrender and cancellation of this Warrant,
the Company shall execute and deliver, in lieu of this Warrant, a new warrant
of like tenor.

1.6           Treatment of Warrant Upon Acquisition of Company.

1.6.1        “Acquisition”. 
For the purpose of this Warrant, “Acquisition” means any sale, license,
or other disposition of all or substantially all of the assets of the Company,
or any reorganization, consolidation, or merger of the Company where the
holders of the Company’s securities before the transaction beneficially own
less than 50% of the outstanding voting securities of the surviving entity
after the transaction.

1.6.2                        Treatment of Warrant at Acquisition.

A)           Upon the written request of the
Company, Holder agrees that, in the event of an Acquisition that is not an
asset sale and in which the sole consideration is cash, either (a) Holder shall
exercise its conversion or purchase right under this Warrant and such exercise
will be deemed effective immediately prior to the consummation of such
Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant
will expire upon the consummation of such Acquisition.  The Company shall provide the Holder with 

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written
notice of its request relating to the foregoing (together with such reasonable
information as the Holder may request in connection with such contemplated
Acquisition giving rise to such notice), which is to be delivered to Holder not
less than ten (10) calendar days prior to the closing of the proposed
Acquisition.

B)            Upon the written request of the Company, Holder agrees
that, in the event of an Acquisition that is an “arms length” sale of all or
substantially all of the Company’s assets (and only its assets) to a third
party that is not an Affiliate (as defined below) of the Company (a “True Asset
Sale”), either (a) Holder shall exercise its conversion or purchase right under
this Warrant and such exercise will be deemed effective immediately prior to
the consummation of such Acquisition or (b) if Holder elects not to exercise
the Warrant, this Warrant will continue until the Expiration Date if the
Company continues as a going concern following the closing of any such True
Asset Sale.  The Company shall provide
the Holder with written notice of its request relating to the foregoing
(together with such reasonable information as the Holder may request in
connection with such contemplated Acquisition giving rise to such notice),
which is to be delivered to Holder not less than ten (10) calendar days prior
to the closing of the proposed Acquisition.

C)            Notwithstanding the foregoing provisions of this Section
1.6, in the event that the acquirer in an Acquisition does not agree to assume
this Warrant at and as of the closing thereof, this Warrant, to the extent not
exercised or converted on or prior to such closing, shall terminate and be of
no further force or effect as of immediately following such closing if all of
the following conditions are met: (i) the acquirer is subject to the reporting
requirements of Section 13 or Section 15(d) of the Securities Exchange Act of
1934, as amended, (ii) the class of stock or other security of the acquirer
that would be received by Holder in connection with such Acquisition were
Holder to exercise or convert this Warrant on or prior to the closing thereof
is listed for trading on a national securities exchange or approved for
quotation on an automated inter-dealer quotation system, (iii) the value
(determined as of the closing of such Acquisition in accordance with the
definitive agreements therefor) of the acquirer stock and/or other securities
that would be received by Holder in respect of each Share were Holder to
exercise or convert this Warrant on or prior to the closing of such Acquisition
is equal to or greater than three (3) times the then-effective Warrant Price,
and (iv) upon the exercise or conversion of this Warrant on or prior to the
closing of such Acquisition, Holder would be able to publicly resell all of the
acquirer stock and/or other securities that would be received by Holder in such
Acquisition within 120 days following the closing thereof pursuant to an
effective registration statement covering such acquirer stock and/or other
securities or pursuant to the provisions of Rule 144 under the Act.

C)            Upon the closing of any Acquisition other than those
particularly described in subsections (A), (B) and (C) above, the successor
entity shall assume the obligations of this Warrant, and this Warrant shall be
exercisable for the same securities, cash, and property as would be payable for
the Shares issuable upon exercise of the unexercised portion of this Warrant as
if such Shares were outstanding on the record date for the Acquisition and
subsequent closing.  The Warrant Price
and/or number of Shares shall be adjusted accordingly.

As used herein “Affiliate” shall mean any person or entity that
owns or controls directly or indirectly ten (10) percent or more of the stock
of Company, any person or entity that controls or is controlled by or is under
common control with such persons or entities, and 

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each of such person’s or entity’s officers, directors, joint venturers
or partners, as applicable.

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

2.1           Stock Dividends, Splits, Etc.  If the Company declares or pays a dividend on
the Shares payable in common stock, or other securities, then upon exercise of
this Warrant, for each Share acquired, Holder shall receive, without cost to
Holder, the total number and kind of securities to which Holder would have been
entitled had Holder owned the Shares of record as of the date the dividend
occurred.  If the Company subdivides the
Shares by reclassification or otherwise into a greater number of shares or
takes any other action which increases the amount of stock into which the
Shares are convertible, the number of shares purchasable hereunder shall be
proportionately increased and the Warrant Price shall be proportionately
decreased.  If the outstanding shares are
combined or consolidated, by reclassification or otherwise, into a lesser
number of shares, the Warrant Price shall be proportionately increased and the
number of Shares shall be proportionately decreased.

2.2           Reclassification, Exchange, Combinations or
Substitution.  Upon any
reclassification, exchange, substitution, or other event that results in a
change of the number and/or class of the securities issuable upon exercise or
conversion of this Warrant, Holder shall be entitled to receive, upon exercise
or conversion of this Warrant, the number and kind of securities and property
that Holder would have received for the Shares if this Warrant had been
exercised immediately before such reclassification, exchange, substitution, or
other event.  Such an event shall include
any automatic conversion of the outstanding or issuable securities of the
Company of the same class or series as the Shares to common stock pursuant to
the terms of the Certificate upon the closing of a registered public offering
of the Company’s common stock or as otherwise provided therein.  The Company or its successor shall promptly
issue to Holder an amendment to this Warrant setting forth the number and kind
of such new securities or other property issuable upon exercise or conversion of
this Warrant as a result of such reclassification, exchange, substitution or
other event that results in a change of the number and/or class of securities
issuable upon exercise or conversion of this Warrant.  The amendment to this Warrant shall provide
for adjustments which shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Article 2 including, without limitation,
adjustments to the Warrant Price and to the number of securities or property
issuable upon exercise of the new Warrant. 
The provisions of this Article 2.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, or other events.

2.3           Adjustments for
Diluting Issuances.  For as long as
the Shares are preferred stock, the number of shares of common stock issuable
upon conversion of the Shares, shall be subject to adjustment, from time to
time in the manner set forth in the Certificate as if the Shares were issued
and outstanding on and as of the date of any such required adjustment.  The provisions set forth for the Shares in the
Certificate relating to the above in effect as of the Issue Date may not be
amended, modified or waived, without the prior written consent of Holder unless
such amendment, modification or waiver affects the rights associated with the
Shares in the same manner as such amendment, modification or waiver affects the
rights associated with all other shares of Series C Preferred Stock (or
Qualified Financing Stock if the Shares hereunder are exercisable for Qualified
Financing Stock).

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2.4           No Impairment. 
The Company shall not, by amendment of its Certificate or through a
reorganization, transfer of assets, consolidation, merger, dissolution, issue,
or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed under
this Warrant by the Company, but shall at all times in good faith assist in
carrying out of all the provisions of this Article 2 and in taking all such
action as may be necessary or appropriate to protect Holder’s rights under this
Article against impairment; provided, however, that notwithstanding the
foregoing, nothing in this Article 2.4 shall restrict or impair the Company’s
right to effect changes to the rights, preferences and privileges associated
with the Shares with the requisite consent of the stockholders as may be
required to amend the Certificate from time to time so long as such amendment
affects the rights, preferences and privileges granted to Holder associated
with the Shares in the same manner as the other holders of Series C Preferred
Stock (or Qualified Financing Stock if the Shares hereunder are exercisable for
Qualified Financing Stock).

2.5           Fractional Shares. 
No fractional Shares shall be issuable upon exercise or conversion of
this Warrant and the number of Shares to be issued shall be rounded down to the
nearest whole Share.  If a fractional
share interest arises upon any exercise or conversion of the Warrant, the
Company shall eliminate such fractional share interest by paying Holder the
amount computed by multiplying the fractional interest by the fair market value
of a full Share.

2.6           Certificate as to Adjustments.  Upon each adjustment of the Warrant Price,
the Company shall promptly notify Holder in writing, and, at the Company’s
expense, promptly compute such adjustment, and furnish Holder with a
certificate of its Chief Financial Officer setting forth such adjustment and
the facts upon which such adjustment is based. 
The Company shall, upon written request, furnish Holder a certificate
setting forth the Warrant Price in effect upon the date thereof and the series
of adjustments leading to such Warrant Price.

ARTICLE 3. REPRESENTATIONS AND COVENANTS
OF THE COMPANY.

3.1           Representations and Warranties.  The Company represents and warrants and
covenants to the Holder as follows:

(a)           The initial Warrant Price referenced on the first page of
this Warrant is not greater than (i) the price per share at which the Shares
were last issued in an arms-length transaction in which at least $500,000 of
the Shares were sold and (ii) the fair market value of the Shares as of the
date of this Warrant.

(b)           All Shares which may be issued upon
the exercise of the purchase right represented by this Warrant, and all
securities, if any, issuable upon conversion of the Shares, shall, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable, and
free of any liens and encumbrances except for restrictions on transfer provided
for herein or under applicable federal and state securities laws; provided,
however, to the extent the Company has not authorized sufficient Series C
Preferred Stock as of the Issue Date for the full exercise of this Warrant, the
Company covenants that it will authorize sufficient Series C Preferred Stock
for the full exercise of 

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this Warrant before the earlier to occur of the
following: (i) 60 days after the Issue Date, and (ii) a Liquidation Event (as
defined in the Certificate).

(c)           The Capitalization Table previously provided to Holder
remains true and complete in all material respects as of the Issue Date.

3.2           Notice of Certain Events.  If the Company proposes at any time (a) to
declare any dividend or distribution upon any of its stock, whether in cash,
property, stock, or other securities and whether or not a regular cash
dividend; or (b) to merge or consolidate with or into any other corporation, or
sell, lease, license, or convey all or substantially all of its assets, or to
liquidate, dissolve or wind up; then, in connection with each such event, the
Company shall give Holder: (1) at least ten (10) calendar days prior written
notice of the date on which a record will be taken for such dividend or
distribution (and specifying the date on which the holders of common stock will
be entitled thereto) or for determining rights to vote, if any, in respect of
the matters referred to in (a) above; and (2) in the case of the matters
referred to in (b) above at least ten (10) calendar days prior written notice
of the date when the same will take place (and specifying the date on which the
holders of common stock will be entitled to exchange their common stock for
securities or other property deliverable upon the occurrence of such
event).  While the Company is a private
company, the Company shall send a concurrent written notice to Holder if the
Company sends any written notice to its preferred stockholders regarding: (a)
the Company offering for sale any shares of the Company’s capital stock (or
other securities convertible into such capital stock), other than (i) pursuant
to the Company’s stock option or other compensatory plans, (ii) in connection
with commercial credit arrangements or equipment financings, or (iii) in
connection with strategic transactions for purposes other than capital raising;
or (b) the Company proposing to effect any reclassification or recapitalization
of any of its stock.  The Company shall
send concurrently to Holder the same notice as the Company gives to the holders
of registration rights if the Company proposes to offer holders of registration
rights the opportunity to participate in an underwritten public offering of the
Company’s securities for cash.

3.3           Registration
under Securities Act of 1933, as amended. 
Subject to obtaining the requisite consent of the holders of the Company’s
preferred stock (which the Company will use commercially reasonable efforts to
solicit), the Company will add the Holder as a party to the Company’s Amended
and Restated Shareholders’ Rights Agreement dated as of September 2, 2004, as
such may be amended from time to time (the “Shareholders’ Rights Agreement”) to
provide Holder with those certain “Piggyback” registration rights with respect
to the Common Stock issuable upon conversion of the Shares, as set forth in
Section 3 of the Shareholders’ Rights Agreement, and subject to any and all
related obligations under the Shareholders’ Rights Agreement, including without
limitation the market-standoff provisions in Section 8 of the Shareholders’
Rights Agreement; provided, however, that if Section 5.3 or Section 5.4 of this
Warrant conflicts with any provisions of the Shareholders’ Rights Agreement,
the provisions of Section 5.3 or Section 5.4 of this Warrant, as applicable,
shall control until this Warrant has been fully exercised or terminated.   The provisions set forth in the Shareholders’
Rights Agreement relating to the above in effect as of the Issue Date may not
be amended, modified or waived without the prior written consent of Holder
unless such amendment, modification or waiver affects the rights associated
with the Shares in the same manner as such amendment, modification, or waiver
affects the rights associated with all other shares of the same series and
class as the Shares granted to the Holder.

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3.4              No Shareholder
Rights.  Except as provided in this
Warrant, the Holder will not have any rights as a shareholder of the Company
until the exercise of this Warrant.

3.5               Information.  So long as the Company is not a public
company and solely after the Company’s obligations to provide financial
information under the Loan Agreement have terminated, upon the request by
Holder, the Company shall provide to the Holder:  (i) the quarterly  reports furnished to certain of Company’s
investors under Section 6.1(b)(i) of the Company’s Series C Stock Purchase
Agreement,  and (ii) the annual reports
furnished to certain of Company’s investors under Section 6.1(a) of the Company’s
Series C Stock Purchase Agreement.

ARTICLE 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER.  The Holder represents and warrants to the
Company as follows:

4.1           Purchase for Own
Account.  This Warrant and the
securities to be acquired upon exercise or conversion of this Warrant (and the
securities issuable upon conversion of such securities) by the Holder will be
acquired for investment for the Holder’s account, not as a nominee or agent,
and not with a view to the public resale or distribution within the meaning of
the Act.  Holder also represents that the
Holder has not been formed for the specific purpose of acquiring this Warrant
or the Shares(and the securities issuable upon conversion of such securities).

4.2           Disclosure of
Information.  The Holder has received
or has had full access to all the information it considers necessary or
appropriate to make an informed investment decision with respect to the
acquisition of this Warrant and its underlying securities.  The Holder further has had an opportunity to
ask questions and receive answers from the Company regarding the terms and
conditions of the offering of this Warrant and its underlying securities and to
obtain additional information (to the extent the Company possessed such
information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to the Holder or to which the
Holder has access.

4.3           Investment
Experience.  The Holder understands
that the purchase of this Warrant and its underlying securities involves
substantial risk.  The Holder has
experience as an investor in securities of companies in the development stage
and acknowledges that the Holder can bear the economic risk of such Holder’s
investment in this Warrant and its underlying securities and has such knowledge
and experience in financial or business matters that the Holder is capable of
evaluating the merits and risks of its investment in this Warrant and its
underlying securities and/or has a preexisting personal or business
relationship with the Company and certain of its officers, directors or
controlling persons of a nature and duration that enables the Holder to be
aware of the character, business acumen and financial circumstances of such
persons.

4.4             Accredited
Investor Status.  The Holder is an “accredited
investor” within the meaning of Regulation D promulgated under the Act.

 

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4.5           The Act.  The
Holder understands that this Warrant and the Shares issuable upon exercise or
conversion hereof (and the securities issuable upon conversion of such
securities) have not been registered under the Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona
fide nature of the Holder’s investment intent as expressed herein.  The Holder understands that this Warrant and
the Shares issued upon any exercise or conversion hereof (and the securities
issuable upon conversion of such securities) must be held indefinitely unless
subsequently registered under the Act and qualified under applicable state
securities laws, or unless exemption from such registration and qualification
are otherwise available.

ARTICLE 5. MISCELLANEOUS.

5.1           Term:  This
Warrant is exercisable in whole or in part at any time and from time to time on
or before the Expiration Date.  

5.2           Legends.                This
Warrant and the Shares (and the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS
OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED
OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE
SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

5.3           Compliance with Securities Laws on Transfer.  This Warrant and the Shares issuable upon
exercise of this Warrant (and the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) may not be transferred or assigned in
whole or in part without compliance with applicable federal and state
securities laws by the transferor and the transferee (including, without
limitation, the delivery of investment representation letters and legal
opinions reasonably satisfactory to the Company, as reasonably requested by the
Company) and the transferee agrees to be bound by all of the terms and
conditions of this Warrant.  The Company
shall not require Holder to provide an opinion of counsel if the transfer is to
any other affiliate of Holder. 
Additionally, the Company shall also not require an opinion of counsel
if there is no material question as to the availability of Rule 144, including
without limitation, the availability of current information as referenced in
Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in
reasonable detail, the selling broker represents that it has complied with Rule
144(f), and the Company is provided with a copy of Holder’s notice of proposed
sale.

5.4           Transfer
Procedure.  Upon receipt by Holder of
the executed Warrant, Holder may transfer this Warrant to any affiliate of
Holder, by execution of an Assignment substantially in the form of Appendix 2
whereby the transferee agrees to be 

 9
 

bound by all obligations of Holder under this Warrant.  Subject to the provisions of Article 5.3 and
upon providing Company with written notice, any subsequent Holder may transfer
all or part of this Warrant or the Shares issuable upon exercise of this
Warrant (or the Shares issuable directly or indirectly, upon conversion of the
Shares, if any) to any transferee, provided, however, in connection with any
such transfer, any subsequent Holder will give the Company notice of the
portion of the Warrant being transferred with the name, address and taxpayer
identification number of the transferee and Holder will surrender this Warrant
to the Company for reissuance to the transferee(s) (and Holder if applicable)
by execution of an Assignment substantially in the form of Appendix 2 whereby
the transferee agrees to be bound by all of the obligations of Holder under
this Warrant.  The Company may refuse to
transfer this Warrant or the Shares to any person who directly competes with
the Company, unless, in either case, the stock of the Company is publicly
traded.

5.5           Notices.  All
notices and other communications from the Company to the Holder, or vice versa,
shall be deemed delivered and effective when given personally or mailed by
first-class registered or certified mail, postage prepaid, at such address as
may have been furnished to the Company or the Holder, as the case may  (or on the first business day after
transmission by facsimile) be, in writing by the Company or such Holder from
time to time.  Effective upon receipt of
the fully executed Warrant and the initial transfer described in Article 5.4
above, all notices to the Holder shall be addressed as follows until the
Company receives notice of a change of address in connection with a transfer or
otherwise:

[       ]

Notice to the Company shall be addressed
as follows until the Holder receives notice of a change in address:

TorreyPines
Therapeutics, Inc..

11085
N. Torrey Pines Road, Suite 300

La
Jolla, CA 92037

Attn:
Craig Johnson, Chief Financial Officer

Telephone:
(858) 623-5665

Facsimile:
(858) 623-5666

5.6           Waiver.  This
Warrant and any term hereof may be changed, waived, discharged or terminated
only by an instrument in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought.

5.7           Attorney’s Fees. 
In the event of any dispute between the parties concerning the terms and
provisions of this Warrant, the party prevailing in such dispute shall be
entitled to collect from the other party all costs incurred in such dispute,
including reasonable attorney’s fees.

5.8           Automatic Conversion upon Expiration.  In the event that, upon the Expiration Date,
the fair market value of one Share (or other security issuable upon the
exercise hereof) as determined in accordance with Article 1.3 above is greater
than the Warrant Price in effect on such date, then this Warrant shall
automatically be deemed on and as of such date to be converted pursuant to
Article 1.2 above as to all Shares (or such other securities) for which it
shall not previously have been exercised or 

 10
 

converted, and the Company shall promptly deliver a
certificate representing the Shares (or such other securities) issued upon such
conversion to the Holder.

5.9           Counterparts. 
This Warrant may be executed in counterparts, all of which together
shall constitute one and the same agreement.

5.10         Governing Law. 
This Warrant shall be governed by and construed in accordance with the
laws of the State of California, without giving effect to its principles
regarding conflicts of law.

[Remainder of page intentionally
left blank; signature page follows]

 

 11
 

 

 

	
  “COMPANY”

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  TORREYPINES THERAPEUTICS, INC.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Name:

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	 

	
   

  	
  (Print)

  	
   

  	
   

  	
   

  	
  (Print)

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Title:

  	
  Chairman of the Board, President or Vice President

  	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer, Secretary, Assistant
  Treasurer or Assistant 

  Secretary

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  “HOLDER”

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  [       ]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  (Print)

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

																					

 

 12

APPENDIX 1

NOTICE OF EXERCISE

1.             Holder
elects to purchase          shares
of the
Common/Series           Preferred
[strike one] Stock of
           pursuant to the
terms of the attached Warrant, and tenders payment of the purchase price of the
shares in full.

[or]

1.             Holder elects to convert the attached Warrant into
Shares/cash [strike one] in the manner specified in the Warrant.  This conversion is exercised for
           of the Shares
covered by the Warrant.

[Strike paragraph that does
not apply.]

2.             Please issue a certificate or certificates representing
the shares in the name specified below:

	
  

  	
   

  	
   

  
	
   

  	
  Holders Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  	
   

  
				

 

3.             By
its execution below and for the benefit of the Company, Holder hereby restates
each of the representations and warranties in Article 4 of the Warrant as the
date hereof.

	
  

  	
  HOLDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Date):

  	
   

  
	
   

  	
   

  	
   

  
							

 

 13

APPENDIX 2

ASSIGNMENT

For value received, [Silicon
Valley Bank/Oxford Finance Corporation] hereby sells, assigns and transfers
unto

Name:

Address:

Tax ID:

that certain Warrant to
Purchase Stock issued by TorreyPines Therapeutics, Inc. (the “Company”), on           ,
200      (the “Warrant”) together with all rights,
title and interest therein.

	
  

  	
  [          ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
								

 

By its execution below, and for the benefit
of the Company, [          ]
makes each of the representations and warranties set forth in Article 4 of the
Warrant and agrees to all other provisions of the Warrant as of the date
hereof.

 

	
  

  	
  [          ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

 14Exhibit 4.19

 

RIGHTS AGREEMENT AMENDMENT

This Amendment, dated as of October 3, 2006 (the “Amendment”), to the Rights
Agreement, dated as of May 13, 2005, as amended June 7, 2006 (the “Rights Agreement”),
is between Axonyx Inc., a Nevada corporation (the “Company”), and The
Nevada Agency and Trust Company (the “Rights Agent”).

Whereas,
the Company entered into an Agreement and Plan of Merger and Reorganization
with TorreyPines Therapeutics, Inc., a Delaware corporation (“TorreyPines”) and Autobahn Acquisition,
Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Merger Sub”),
pursuant to which, among other things, Merger Sub will be merged with and into
TorreyPines, with TorreyPines continuing on as a wholly-owned subsidiary of the
Company (the “Merger”);

Whereas, in
connection with the Merger, the Company will change its name from “Axonyx Inc.”
to “TorreyPines Therapeutics, Inc.”;

 Whereas, immediately prior to the
closing of the Merger and effective upon the filing of a certificate of
conversion with the Delaware Secretary of State (the “Reincorporation
Effective Time”), the Company will reincorporate from the State
of Nevada to the State of Delaware; and

Whereas,
pursuant to Section 27 of the Rights Agreement, the Company and the Rights
Agent may from time to time supplement or amend the Rights Agreement in
accordance with the provisions of Section 27 thereof and the Company
desires and directs the Rights Agent to so amend the Rights Agreement.

In consideration of the foregoing premises and mutual
agreements set forth in the Rights Agreement and this Amendment, the parties
hereto agree as follows:

1.             Effective
as of the Reincorporation Effective Time, the Certificate of Designation of
Axonyx Inc. attached as Exhibit A to
the Rights Agreement, shall be replaced in its entirety by the Certificate of
Incorporation of TorreyPines Therapeutics, Inc. in the form attached hereto as Exhibit A.

2.             Effective
as of the Reincorporation Effective Time, 
Section 32 of the Rights Agreement, is hereby modified and amended to
read in its entirety as follows:

“Governing
Law.  This Agreement, each
Right and each Rights Certificate issued hereunder shall be deemed to be a
contract made under the laws of the State of Delaware and for all purposes
shall be governed by and construed in accordance with the laws of such state
applicable to contracts to be made and to be performed entirely within such
state.”

3.             Except
as expressly amended hereby, the Rights Agreement remains in full force and
effect in accordance with its terms. By executing this Amendment below, the
Company certifies that this Amendment has been executed and delivered in
compliance with the 

terms of Section 27 of the Rights Agreement. This Amendment shall
become effective as of the Reincorporation Effective Time.

 

4.             All
acts and things necessary to make this Amendment a valid agreement according to
its terms have been done and performed, and the execution and delivery of this
Amendment by the Company and the Rights Agent have been in all respects
authorized by the Company and the Rights Agent.

5.             This
Amendment to the Rights Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware.

6.             This
Amendment to the Rights Agreement may be executed in any number of counterparts
and each of such counterparts shall for all purposes be deemed an original, and
all such counterparts shall together constitute but one and the same
instrument.

7.             Except
as expressly set forth herein, this Amendment to the Rights Agreement shall not
by implication or otherwise alter, modify, amend or in any way affect any of
the terms, conditions, obligations, covenants or agreements contained in the
Rights Agreement, all of which are ratified and affirmed in all respects and
shall continue in full force and effect.

8.             If
any term, provision, covenant or restriction of this Amendment is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions
of this Amendment shall remain in full force and effect.

9.             Capitalized
terms used herein but not defined shall have the meanings given to them in the
Rights Agreement.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to the Rights Agreement to be duly executed as of the day and
year first above written.

	
  

  	
   

  	
  Axonyx Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Colin Neill

  	
   

  
	
   

  	
   

  	
   

  	
    Name: S. Colin Neill

  
	
   

  	
   

  	
   

  	
    Title: Chief Financial Officer,
  Treasurer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Nevada Agency and Trust Company,

  as Rights Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Amanda Cardinalli

  	
   

  
	
   

  	
   

  	
   

  	
   Name: Amanda Cardinalli

  
	
   

  	
   

  	
   

  	
   Title: President

  
						

 

 

Exhibit A

Certificate of Incorporation

of 

TorreyPines Therapeutics, Inc.

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