Document:

Exhibit 4.2

 

METABASIS THERAPEUTICS, INC.

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”)
is made as of April 14, 2008, by and among METABASIS
THERAPEUTICS, INC., a
Delaware corporation (the “Company”)
with its principal office at 11119 North Torrey Pines Road, La Jolla,
California 92037, and the individuals and entities identified on the signature pages hereto
(the “Purchasers”).  Capitalized terms used herein but not
otherwise defined shall have the meanings set forth in that certain
Registration Rights Agreement of even date herewith in the form attached hereto
as Exhibit F, by and among the
Company and the individuals and entities identified on the signature pages thereto
(the “Registration Rights Agreement”).

 

RECITALS

 

WHEREAS, the Company has authorized the sale and issuance of
the Common Shares and the Warrants (each as defined herein);

 

WHEREAS, the Company and the Purchasers are executing and
delivering this Agreement in reliance upon the exemption from securities
registration afforded by the provisions of Regulation D, as promulgated by the
SEC (as defined herein) under the Securities Act (as defined herein); and

 

WHEREAS, at the Closing (as defined herein), the Company
desires to sell, and each Purchaser desires severally, and not jointly, to
purchase, the Common Shares and/or the Warrants, each as indicated below such
Purchaser’s name on the applicable signature page hereto, upon the terms
and conditions stated in this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual promises, representations, warranties and covenants hereinafter set
forth and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
1

AUTHORIZATION AND SALE OF COMMON SHARES AND WARRANTS

 

1.1          Authorization.  The Company has authorized (a) the
sale and issuance of 2,485,103 shares (the “Common
Shares”) of the Company’s common stock, par value $0.001 per
share (the “Common
Stock”) and (b) the
sale and issuance of warrants, in the form attached hereto as Exhibit A (the “Warrants”),
to purchase up to 1,057,196 shares of the Common Stock at an exercise price per
share equal to 115% of the closing consolidated bid price of the Common Stock
on the NASDAQ Global Market as of April 11, 2008, pursuant to this
Agreement.  The shares of Common Stock
issuable upon exercise of or otherwise pursuant to the Warrants are referred to
herein as the “Warrant Shares.”  The Common Shares and the Warrant Shares are 

 

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collectively referred to
herein as the “Shares.” 
The Shares and the Warrants are collectively referred to herein as the “Securities.”

 

1.2          Sale of Common Shares and Warrants.  At the Closing
(as defined herein), subject to the terms and conditions of this Agreement and
the Registration Rights Agreement, including without limitation, the conditions
set forth in Article 5 and Article 6 of this Agreement, the Company
shall issue and sell to each Purchaser and each Purchaser shall severally, and
not jointly, purchase from the Company Common Shares in the amount indicated
below such Purchaser’s name on the applicable signature page hereto and
Warrants to purchase shares of the Common Stock in the amount indicated below
such Purchaser’s name on the applicable signature page hereto, in exchange
for the cash consideration set forth as the “Purchase Price” indicated below
such Purchaser’s name on the applicable signature page hereto.  The portion of the “Purchase Price”
attributable to the Common Shares is $2.34 per share and the portion of the “Purchase
Price” attributable to each Warrant to purchase one share of the Common Stock
is $0.125 per whole share.

 

ARTICLE 2

CLOSING DATES; DELIVERY

 

2.1          Closing Date.  Subject to the satisfaction (or
waiver) of the conditions thereto set forth in Article 5 and Article 6
of this Agreement, the closing of the purchase and sale of the Common Shares
and Warrants hereunder (the “Closing”)
shall be held at the offices of Cooley Godward Kronish LLP (“Cooley”), 4401
Eastgate Mall, San Diego, California 92121, at 10:00 a.m. California time
on April 16, 2008, or at such other time and place upon which the Company
and the Purchasers purchasing a majority of the Common Shares at the Closing
shall agree.  The date of the Closing is
hereinafter referred to as the “Closing Date.”

 

2.2          Delivery.  At the Closing, the Company will deliver or
cause to be delivered to each Purchaser a duly executed Warrant and a certificate
representing the number of Common Shares purchased by such Purchaser,
registered in such Purchaser’s name as indicated on the Stock Certificate
Questionnaire completed by such Purchaser in the form attached hereto as Exhibit B-1. 
Such delivery shall be against payment of the purchase price therefor by
each such Purchaser as set forth as the “Purchase Price” indicated below such
Purchaser’s name on the applicable signature page hereto by wire transfer
of immediately available funds to the Company in accordance with the Company’s
written wiring instructions.

 

ARTICLE
3

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants to the Purchasers
on and as of the date hereof:

 

3.1          Organization and Standing.  The Company is
a corporation duly organized and validly existing under, and by virtue of, the
laws of the State of Delaware and is in good standing as a domestic corporation
under the laws of said state.  Except as
disclosed in the SEC 

 

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Documents (as defined
herein), the Company does not own or control any equity security or other
interest of any corporation, limited partnership or other business entity.

 

3.2          Corporate Power; Authorization.  The Company has
all requisite legal and corporate power and has taken all requisite corporate
action to execute and deliver the Transaction Documents (as defined below), to
sell and issue the Common Shares and Warrants, to issue the Warrant Shares upon
exercise of the Warrants in accordance with the terms of such Warrants, and to
carry out and perform all of its obligations under the Transaction Documents.
The Transaction Documents constitute, and upon execution and delivery by the
Company of the Warrants, the Warrants will constitute, legal, valid and binding
obligations of the Company, enforceable against the Company in accordance with
their respective terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization or similar laws relating to or affecting the
enforcement of creditors’ rights generally and (b) as limited by equitable
principles generally. The execution and delivery of the Transaction Documents
does not, the performance of the Transaction Documents and the compliance with
the provisions hereof will not, and the issuance, sale and delivery of the
Common Shares and the Warrants by the Company will not, materially conflict
with, or result in a material breach or violation of the terms, conditions or
provisions of, or constitute a material default under, or result in the
creation or imposition of any material lien pursuant to the terms of, the
Company’s Amended and Restated Certificate of Incorporation, as amended (the “Restated Certificate”)
or the Company’s Amended and Restated Bylaws (the “Bylaws”)
or any statute, law, rule or regulation or any state or federal order,
judgment or decree or any indenture, mortgage, lease or other material
agreement or instrument to which the Company or any of its properties is
subject.  For purposes of this Agreement,
“Transaction Documents” means this
Agreement, the Registration Rights Agreement and any other documents or
agreements executed in connection with the transactions contemplated hereunder
or thereunder.

 

3.3          Issuance and Delivery of the Shares. 
When
issued in compliance with the provisions of this Agreement and the Restated
Certificate, the Common Shares will be validly issued, fully paid and
nonassessable.  Upon exercise of the
Warrants in accordance with the terms thereof, the Warrant Shares will be
validly issued, fully paid and nonassessable. 
The issuance and delivery of the Common Shares and the Warrants is not
subject to preemptive or any other similar rights of the stockholders of the
Company or to any liens or encumbrances imposed by the Company.

 

3.4          SEC Documents; Financial Statements.  The Company has
filed in a timely manner all documents that the Company was required to file
with the Securities and Exchange Commission (the “SEC”)
under Sections 13, 14(a) and 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”),
during the 12 months preceding the date of this Agreement.  As of their respective filing dates, all
documents filed by the Company with the SEC (the “SEC
Documents”) complied in all material respects with the
requirements of the Exchange Act or the Securities Act of 1933, as amended (the
“Securities Act”), as
applicable.  None of the SEC Documents as
of their respective dates contained any untrue statement of material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements made therein, in light of the circumstances under which
they were made, not misleading.  The
financial statements of the Company included in the SEC Documents (the “Financial Statements”) comply as to
form in all material respects with applicable accounting 

 

3

 

requirements and with the
published rules and regulations of the SEC with respect thereto.  The Financial Statements have been prepared
in accordance with generally accepted accounting principles consistently
applied and fairly present the consolidated financial position of the Company
and any subsidiaries at the dates thereof and the consolidated results of their
operations and consolidated cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal, recurring adjustments or to the
extent that such unaudited statements do not include footnotes).

 

3.5          Governmental Consents.  No consent,
approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any federal, state, or local
governmental authority on the part of the Company is required in connection
with the consummation of the transactions contemplated by the Transaction
Documents except for (a) compliance with the securities and blue sky laws
in the states in which the Common Shares and Warrants are offered and/or sold,
which compliance will be effected in accordance with such laws, (b) the
filing of the Registration Statement and any amendments thereto with the SEC as
contemplated by the Registration Rights Agreement, (c) the filing of the
NASDAQ Stock Market Notification Form with the NASDAQ Stock Market (“NASDAQ”) and (d) the
filing of a Form D with the SEC.

 

3.6          No Material Adverse Change.  Except as
otherwise disclosed herein or in the SEC Documents, since December 31,
2007, there have not been any changes in the assets, liabilities, financial
condition, business prospects or operations of the Company from that reflected
in the Financial Statements except changes in the ordinary course of business
which have not been, either individually or in the aggregate, materially
adverse.

 

3.7          Authorized Capital Stock.  The authorized
capital stock of the Company consists of (a) 100,000,000 shares of Common
Stock, $0.001 par value, of which, as of March 3, 2008, 30,756,906 shares were outstanding, and (b) 5,000,000
shares of Preferred Stock, $0.001 par value, none of which shares are currently
outstanding.  Except as disclosed in the
SEC Documents and as contemplated by this Agreement, there are no outstanding
warrants, options, convertible securities or other rights, agreements or
arrangements of any character under which the Company is or may be obligated to
issue any equity securities of any kind.

 

3.8          Litigation.  There are no actions, suits, proceedings or
investigations pending or, to the best of the Company’s knowledge, threatened
against the Company or any of its properties before or by any court or
arbitrator or any governmental body, agency or official in which there is a
reasonable likelihood (in the judgment of the Company) of an adverse decision
that (a) could have a material adverse effect on the Company’s properties
or assets or the business of the Company as currently conducted or (b) could
impair the ability of the Company to perform in any material respect its
obligations under the Transaction Documents.

 

3.9          Eligibility to Use Form S-3.  The Company is
eligible to use Form S-3 for the registration of its securities under the
Securities Act which are offered in transactions involving secondary offerings, subject to any limitation on the number of
securities registered in the event the SEC deems such registration statement to
constitute a primary offering of securities by the Company.

 

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3.10        Company not an “Investment Company.”  The Company
has been advised of the rules and requirements under the Investment
Company Act of 1940, as amended (the “Investment Company Act”).  The Company is not, and immediately after
receipt of payment for the Shares will not be, an “investment company” or an
entity “controlled” by an “investment company” within the meaning of the
Investment Company Act and shall conduct its business in a manner so that it
will not become subject to the Investment Company Act.

 

3.11        NASDAQ Compliance.  The Common Stock is registered
pursuant to Section 12(g) of the Exchange Act and is listed on the
NASDAQ, and the Company has taken no action designed to, or likely to have the
effect of, terminating the registration of the Common Stock under the Exchange
Act or de-listing the Common Stock from the NASDAQ, nor has the Company
received any notification that the SEC, the Financial Industry Regulatory
Authority or the NASDAQ is contemplating terminating such registration or
listing.

 

3.12        Use of Proceeds.  The proceeds of the sale of
the Common Shares and the Warrants hereunder shall be used by the Company for
working capital and general corporate purposes.

 

3.13        Brokers and Finders.  No person or
entity will have, as a result of the transactions contemplated by this
Agreement, any valid right, interest or claim against or upon the Company or a
Purchaser for any commission, fee or other compensation pursuant to any
agreement, arrangement or understanding entered into by or on behalf of the
Company with respect to the offer and sale of the Securities, except for
dealings with Collins Stewart LLC (the “Placement Agent”),
whose commissions and fees will be paid by the Company.

 

3.14        No Directed Selling Efforts or General Solicitation. 
Neither the Company nor any person or entity acting on its behalf has
conducted any general solicitation or general advertising (as those terms are
used in Regulation D under the Securities Act) in connection with the offer or
sale of any of the Securities.

 

3.15        No Integrated Offering.  Neither the
Company nor any of its affiliates, nor any person or entity acting on its or
their behalf has, directly or indirectly, made any offers or sales of any Company
security or solicited any offers to buy any security, under circumstances that
would adversely affect reliance by the Company on Section 4(2) of the
Securities Act for the exemption from registration for the transactions
contemplated hereby or would require registration of the Securities under the
Securities Act.

 

3.16        Private Placement.  Assuming the accuracy of the
representations and warranties of the Purchasers contained in Sections 4.2 and
4.3 hereof, the offer and sale of the Securities to the Purchasers as
contemplated hereby is exempt from the registration requirements of the
Securities Act.

 

3.17        Intellectual Property.

 

(a)           “Intellectual
Property” shall mean patents, trademarks, service marks, trade
names, copyrights, trade secrets, licenses, information and other proprietary
rights and processes.

 

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(b)           Except as disclosed in the SEC Documents and to the
knowledge of the Company, the Company owns or has the valid right to use all of
the Intellectual Property that is necessary for the conduct of the Company’s
business as currently conducted or as currently proposed to be conducted as
described in the SEC Documents, free and clear of all material liens and
encumbrances.

 

(c)           Except as disclosed in the SEC Documents, the conduct
of the Company’s business as currently conducted does not infringe or otherwise
conflict with (collectively, “Infringe”)
any Intellectual Property rights of any third party or any confidentiality
obligation owed by the Company to a third party, and, to the knowledge of the
Company, the Intellectual Property and confidential information of the Company
are not being Infringed by any third party.

 

(d)           Each employee, consultant and contractor of the
Company who has had access to confidential information of the Company that is
necessary for the conduct of Company’s business as currently conducted or as
currently proposed to be conducted has executed an agreement to maintain the
confidentiality of such confidential information that is substantially
consistent with the Company’s standard forms thereof.

 

3.18        Questionable Payments.  Neither the
Company nor, to the knowledge of the Company, any of its current or former
stockholders, directors, officers, employees, agents or other persons acting on
behalf of the Company, has on behalf of the Company or in connection with its
business: (a) used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity; (b) made
any direct or indirect unlawful payments to any governmental officials or
employees from corporate funds; (c) established or maintained any unlawful
or unrecorded fund of corporate monies or other assets; (d) made any false
or fictitious entries on the books and records of the Company; or (e) made
any unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment of any nature.

 

3.19        Transactions with Affiliates.  Except as
disclosed in the SEC Documents and as contemplated pursuant to the Transaction
Documents, none of the officers or directors of the Company and, to the
knowledge of the Company, none of the employees of the Company is presently a
party to any transaction with the Company or to a presently contemplated
transaction (other than for services as employees, officers and directors) that
would be required to be disclosed pursuant to Item 404 of Regulation S-K
promulgated under the Securities Act.

 

3.20        Disclosure.  The information contained in the Exchange Act
Documents as of the date hereof does not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. 
For purposes herein, “Exchange Act Documents” are the documents filed by
the Company under the Exchange Act, since the end of its most recently
completed fiscal year through the date hereof, including, without limitation,
its most recent report on Form 10-K.

 

3.21        Dilution; Sales By Purchasers.  The Company acknowledges that the issuance of
the Securities may result in dilution of the outstanding shares of Common
Stock, which dilution may be substantial under certain market conditions.  The Company further acknowledges that its
obligations under the Transaction Documents and the Warrants, including without
limitation its 

 

6

 

obligation to issue the
Warrants, are unconditional and absolute and not subject to any right of setoff,
counterclaim, delay or reduction, regardless of the effect of any such dilution
or any claim the Company may have against any Purchaser and
regardless of the dilutive effect that such issuance may have on the ownership
of the other stockholders of the Company. 
Anything in this Agreement or elsewhere herein to the contrary
notwithstanding (except for Section 4.5 and Article 7 hereof, Article 3
of the Registration Rights Agreement and Section 4.3 of the Warrants), it
is understood and agreed by the Company (i) that none of the Purchasers
have been asked by the Company to agree, nor has any Purchaser agreed, to
desist from purchasing or selling, long and/or short, securities of the
Company, or “derivative” securities based on securities issued by the Company
or to hold the Securities for any specified term; (ii) that future open
market or other transactions by any Purchaser, including short sales, and
specifically including, without limitation, short sales or “derivative”
transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) that any Purchaser, and counter parties
in “derivative” transactions to which any such Purchaser is a party, directly
or indirectly, presently may have a “short” position in the Common Stock, and (iv) that
each Purchaser shall not be deemed to have any affiliation with or control over
any arm’s length counter-party in any “derivative” transaction.

 

3.22        Sarbanes-Oxley; Disclosure Controls and Procedures. 
The Company is in compliance in all material respects with all of the
provisions of the Sarbanes-Oxley Act of 2002 that are applicable to it.  Except as disclosed in the SEC Documents, the
Company has established and maintains disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) that are
effective in all material respects to ensure that material information relating
to the Company is made known to its chief executive officer and chief financial
officer by others within the Company. 
The Company’s certifying officers have evaluated the effectiveness of
the Company’s disclosure controls and procedures as of the end of the period
covered by its most recently filed quarterly or annual periodic report under
the Exchange Act (such date, the “Evaluation Date”).  The Company presented in its most recently
filed quarterly or annual periodic report under the Exchange Act the
conclusions of the certifying officers about the effectiveness of the Company’s
disclosure controls and procedures based on their evaluations as of the
Evaluation Date.  Since the Evaluation
Date, there has been no change in the Company’s internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
that has materially affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting.

 

3.23        Taxes.  The Company has filed (or
has obtained an extension of time within which to file) all necessary federal,
state and foreign income and franchise tax returns and has paid all taxes shown
as due on such tax returns, except where the failure to so file or the failure
to so pay would not reasonably be expected to have a material adverse effect on
the Company.

 

3.24        Insurance.  The Company is insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as the Company believes are prudent and customary for a company (i) in
the business in which the Company is engaged, (ii) with the resources of
the Company and (iii) at a similar stage of development as the
Company.  The Company has not received
any written notice that the Company will not be able to renew its existing
insurance coverage as and when such coverage expires.  The Company 

 

7

 

believes it will be able
to obtain similar coverage at reasonable cost from similar insurers as may be
necessary to continue its business.

 

ARTICLE 4

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASERS

 

Each Purchaser hereby severally, and not jointly,
represents and warrants to the Company on and as of the date hereof:

 

4.1          Authorization.  Purchaser represents and
warrants to the Company that: (a) Purchaser has all requisite legal and
corporate or other power and capacity and has taken all requisite corporate or
other action to execute and deliver this Agreement, to purchase the Common
Shares and/or the Warrants to be purchased by it and to carry out and perform
all of its obligations under this Agreement; and (b) this Agreement
constitutes the legal, valid and binding obligation of such Purchaser,
enforceable against such Purchaser in accordance with its terms, except (i) as
limited by applicable bankruptcy, insolvency, reorganization or similar laws
relating to or affecting the enforcement of creditors’ rights generally and (ii) as
limited by equitable principles generally.

 

4.2          Investment Experience.  Purchaser is an
“accredited investor” as defined in Rule 501(a) under the Securities
Act.  Purchaser is aware of the Company’s
business affairs and financial condition and has had access to and has acquired
sufficient information about the Company to reach an informed and knowledgeable
decision to acquire the Common Shares and/or the Warrants.  Purchaser has such business and financial
experience as is required to give it the capacity to protect its own interests
in connection with the purchase of the Common Shares and/or Warrants.

 

4.3          Investment Intent.  Purchaser is
purchasing the Common Shares and/or the Warrants for its own account as
principal, for investment purposes only, and not with a present view to, or
for, resale, distribution or fractionalization thereof, in whole or in part,
within the meaning of the Securities Act, other than as contemplated by Article 7.
Purchaser understands that its acquisition of the Common Shares and/or the
Warrants has not been registered under the Securities Act or registered or
qualified under any state securities law in reliance on specific exemptions
therefrom, which exemptions may depend upon, among other things, the bona fide
nature of Purchaser’s investment intent as expressed herein. Purchaser, in
connection with its decision to purchase the Common Shares and/or the Warrants,
has relied solely upon the SEC Documents and the representations and warranties
of the Company contained herein. Purchaser will not, directly or indirectly,
offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of) any of the Securities
except in compliance with the Securities Act and the rules and regulations
promulgated thereunder.

 

4.4          Registration or Exemption Requirements.  Purchaser
further acknowledges and understands that the Securities may not be resold or
otherwise transferred except in a transaction registered under the Securities
Act or unless an exemption from such registration is available.

 

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4.5          Dispositions.

 

(a)           Purchaser will not, prior to the
effectiveness of the Registration Statement, if then prohibited by law or
regulation: (i) sell, offer to sell, solicit offers to buy, dispose of,
loan, pledge or grant any right with respect to (collectively, a “Disposition”) the Securities; or (ii) engage
in any hedging or other transaction which is designed or could reasonably be
expected to lead to or result in a Disposition of Securities by such Purchaser
or an affiliate.  In addition, Purchaser
agrees that for so long as it owns any Shares, it will not enter into any short
sale of the Common Stock executed at a time when the Purchaser has no
equivalent offsetting long position in the Common Stock.  For purposes of determining whether the
Purchaser has an equivalent offsetting long position in the Common Stock,
shares of Common Stock that the Purchaser is entitled to receive within 60 days
(whether pursuant to contract or upon conversion or exercise of convertible
securities) will be included as if held long by the Purchaser.

 

(b)           Purchaser has not directly or indirectly, nor has
any Person acting on behalf of or pursuant to any understanding with such
Purchaser, engaged in any transactions in the Company’s securities (including,
without limitation, any Short Sales involving the Company’s securities) since
the time that such Purchaser was first contacted by the Company, the Placement
Agent or any other
Person regarding the transactions contemplated hereby.  Such Purchaser covenants that neither it nor
any Person acting on its behalf or pursuant to any understanding with it will
engage in any transactions in the Company’s securities (including, without limitation, any Short Sales involving
the Company’s securities) prior to the time that the transactions
contemplated by this Agreement are publicly disclosed.

 

For purposes of this Section 4.5(b), (i) “Person” shall include, without
limitation, any individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company or joint
stock company and (ii) “Short Sales”
shall include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act and all types of direct
and indirect stock pledges, forward sale contracts, options, puts, calls, short
sales, swaps and similar arrangements (including on a total return basis), and
sales and other transactions through non-U.S. broker-dealers or foreign
regulated brokers.

 

4.6          No Legal, Tax or Investment Advice.  Purchaser
understands that nothing in this Agreement or any other materials presented to
Purchaser in connection with the purchase and sale of the Common Shares and/or
the Warrants constitutes legal, tax or investment advice.  Purchaser has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of the Common Shares and/or the
Warrants.

 

4.7          Confidentiality.  Purchaser will hold in confidence all
information concerning this Agreement and the placement of the Securities
hereunder until the earlier of such time as (a) the Company has made a
public announcement concerning the Agreement and the placement of the
Securities hereunder or (b) this Agreement is terminated.

 

4.8          Residency.  Purchaser’s executive offices in which
its investment decision was made are in the jurisdiction indicated below such
Purchaser’s name on the applicable signature page hereto.

 

9

 

4.9          Governmental Review.  Purchaser understands that no United
States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

 

4.10        Legend.

 

(a)           Purchaser understands that, until such time as the Registration
Statement has been declared effective or the Securities may be sold pursuant to
Rule 144 under the Securities Act (“Rule 144”)
without any restriction as to the number of securities as of a particular date
that can then be immediately sold, the Securities may bear a restrictive legend
in substantially the following form (and a stop transfer order may be placed
against transfer of the certificates for the Shares):

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR IN ANY OTHER JURISDICTION.  THE SECURITIES REPRESENTED HEREBY MAY NOT
BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS UNLESS OFFERED,
SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THOSE LAWS.”

 

(b)           The Company agrees that at such time as such legend is
no longer required under this Section 4.10, it will, no later than three
business days following the delivery by a Purchaser to the Company or the
Company’s transfer agent of a certificate representing Common Shares or Warrant
Shares, as applicable, issued with a restrictive legend and a signed and
completed certificate of sale in substantially the form of Exhibit E
attached hereto, deliver or cause to be delivered to such Purchaser a
certificate representing such shares that is free from any legend referring to
the Securities Act.  The Company shall
not make any notation on its records or give instructions to any transfer agent
of the Company that enlarge the restrictions on transfer set forth in this
Section.  Certificates for Securities
subject to legend removal hereunder shall be transmitted by the transfer agent
of the Company to the Purchasers by crediting the account of the Purchaser’s
prime broker with the Depository Trust Company. 
All costs and expenses related to the removal of the legends and the
reissuance of any Securities shall be borne by the Company.

 

(c)           Each Purchaser, severally and not jointly with the
other Purchasers, agrees that the removal of the restrictive legend from
certificates representing Securities as set forth in this Section 4.10 is
predicated upon the Company’s reliance that the Purchaser will sell any
Securities pursuant to either (i) the registration requirements of the
Securities Act and such Purchaser shall have delivered a current prospectus in
connection with such sale or such Purchaser shall have confirmed that a current
prospectus is deemed to be delivered in connection with such sale in accordance
with Rule 172 under the Securities Act (“Rule 172”)
or (ii) an exemption therefrom.

 

10

 

4.11        Foreign Investors.  If Purchaser is
not a United States person (as defined by Section 7701(a)(30) of the
Internal Revenue Code of 1986, as amended), Purchaser hereby represents that it
has satisfied itself as to the full observance of the laws of its jurisdiction
in connection with any invitation to subscribe for the Securities or any use of
this Agreement, including (a) the legal requirements within its
jurisdiction for the purchase of the Securities, (b) any foreign exchange
restrictions applicable to such purchase or acquisition, (c) any
government or other consents that may need to be obtained, and (d) the
income tax and other tax consequences, if any, that may be relevant to the
purchase, holding, redemption, sale or transfer of the Securities.  Purchaser’s subscription and payment for and
continued beneficial ownership of the Securities will not violate any
applicable securities or other laws of Purchaser’s jurisdiction.

 

4.12        Acknowledgements Regarding Placement Agent.

 

(a)           The Purchaser acknowledges that the Placement Agent is
acting as the exclusive placement agent on a “best efforts” basis for the
Securities being offered hereby and will be compensated by the Company for
acting in such capacity.  The Purchaser
represents that (i) the Purchaser has a pre-existing relationship with the
Placement Agent, (ii) the Purchaser was contacted regarding the sale of
the Shares by the Placement Agent (or an authorized agent or representative
thereof) with whom the Purchaser entered into a confidentiality agreement and (iii) no
Securities were offered or sold to it by means of any form of general
solicitation or general advertising.

 

(b)           The Purchaser acknowledges that the Placement Agent
and its directors, officers, employees, representatives and controlling persons
have no responsibility for making any independent investigation of the Company’s
SEC Documents and make no representation or warranty to the Purchaser, express
or implied, with respect to the Company or the Securities or the accuracy,
completeness or adequacy of the Company’s SEC Documents or any other publicly
available information, nor shall any of the foregoing persons be liable for any
loss or damages of any kind resulting from the use of the information contained
therein or otherwise supplied to the Purchaser. 
In addition, the Purchaser acknowledges that it has not relied on
information provided by any of such persons but has conducted its own
investigation.

 

ARTICLE 5

CONDITIONS TO CLOSING OBLIGATIONS OF PURCHASERS

 

Each Purchaser’s obligation to purchase the Common
Shares and/or the Warrants at the Closing is, at the option of such Purchaser,
subject to the fulfillment or waiver as of the Closing Date of the following
conditions:

 

5.1          Representations and Warranties.  The representations and warranties made
by the Company in Article 3 hereof qualified as to materiality shall be
true and correct at all times prior to and on the Closing Date, except to the
extent any such representation or warranty expressly speaks as of an earlier
date, in which case such representation or warranty shall be true and correct
as of such earlier date, and the representations and warranties made by the
Company in Article 3 hereof not qualified as to materiality shall be true
and correct in all material respects 

 

11

 

at all times prior to and
on the Closing Date, except to the extent any such representation or warranty
expressly speaks as of an earlier date, in which case such representation or
warranty shall be true and correct in all material respects as of such earlier
date.

 

5.2          Covenants.  All covenants, agreements and conditions
contained in this Agreement to be performed by the Company on or prior to the
Closing Date shall have been performed or complied with in all material
respects.

 

5.3          Certificates.  The Company shall have
delivered to the Purchasers duly executed certificates for the Common Shares
and/or the Warrants (in such denominations as indicated below such Purchaser’s
name on the applicable signature page hereto).

 

5.4          Registration Rights Agreement.  The Company
shall have duly executed and delivered to the Purchasers the Registration
Rights Agreement.

 

5.5          Legal Opinion.  The Purchasers shall have
received on the Closing Date an opinion of Cooley Godward Kronish LLP (“Cooley”), counsel for the Company,
dated the Closing Date, in substantially the form of Exhibit C.

 

5.6          Listing.  The Company shall have complied with all
requirements with respect to the listing of the Shares on NASDAQ, except for
such requirements not required until after the issuance of the Shares, such
requirements to be complied with promptly after the Closing.

 

5.7          Officer’s Certificate.  The Company
shall have delivered a Certificate, executed on behalf of the Company by its
Chief Executive Officer or Chief Financial Officer, dated as of the Closing
Date, certifying to the fulfillment of the conditions specified in Sections 5.1
and 5.2.

 

5.8          Judgments.  No judgment, writ, order, injunction, award
or decree of or by any court, or judge, justice or magistrate, including any
bankruptcy court or judge, or any order of or by any governmental authority,
shall have been issued, and no action or proceeding shall have been instituted
by any governmental authority, enjoining or preventing the consummation of the
transactions contemplated hereby.

 

5.9          Secretary’s Certificate.  The Company
shall have delivered a Certificate, executed on behalf of the Company by its
Secretary, dated as of the Closing Date, certifying the resolutions adopted by
the Board of Directors of the Company (or an authorized committee thereof)
approving the transactions contemplated by the Transaction Documents and the
issuance of the Securities, certifying the current versions of the Restated
Certificate and the Bylaws and certifying as to the signatures and authority of
persons signing this Agreement and related documents on behalf of the Company.

 

5.10        Stop Orders.  No stop order or suspension of trading shall
have been imposed by NASDAQ, the SEC or any other governmental regulatory body
with respect to public trading in the Common Stock.

 

12

 

ARTICLE 6

CONDITIONS TO CLOSING OBLIGATIONS OF COMPANY

 

The Company’s obligation to sell and issue the Common
Shares and the Warrants at the Closing is, at the option of the Company,
subject to the fulfillment or waiver as of the Closing Date of the following
conditions:

 

6.1          Receipt of Payment.  The Purchasers
shall have delivered payment of the purchase price to the Company for the Common
Shares and the Warrants being issued hereunder.

 

6.2          Representations and Warranties.  The
representations and warranties made by the Purchasers in Article 4 hereof
qualified as to materiality shall be true and correct at all times prior to and
on the Closing Date, except to the extent any such representation or warranty
expressly speaks as of an earlier date, in which case such representation or
warranty shall be true and correct as of such earlier date, and, the
representations and warranties made by the Purchasers in Article 4 hereof
not qualified as to materiality shall be true and correct in all material
respects at all times prior to and on the Closing Date, except to the extent
any such representation or warranty expressly speaks as of an earlier date, in
which case such representation or warranty shall be true and correct in all
material respects as of such earlier date.

 

6.3          Covenants.  All covenants, agreements and conditions
contained in this Agreement to be performed by the Purchasers on or prior to
the Closing Date shall have been performed or complied with in all material
respects.

 

6.4          Delivery of Purchaser Questionnaire.  The Company
shall have received from each Purchaser a fully completed Purchaser
Questionnaire in the form attached hereto as Exhibit B
prior to the Closing.

 

ARTICLE 7

RESTRICTIONS ON TRANSFERABILITY OF SECURITIES;

COMPLIANCE WITH SECURITIES ACT

 

7.1          Restrictions on Transferability.  The Securities
shall not be transferable in the absence of a registration under the Securities
Act or an exemption therefrom. The Company shall be entitled to give stop
transfer instructions to its transfer agent with respect to the Securities in
order to enforce the foregoing restrictions.

 

7.2          Instruction Sheet.  Each
certificate representing Registrable Shares shall bear the Instruction Sheet
attached hereto as Exhibit D
(in addition to any legends required under applicable securities laws).

 

7.3          Transfer of Securities.

 

(a)           Each Purchaser hereby covenants with the Company not
to make any sale of the Securities except:

 

13

 

(i)            in accordance with the Registration Statement, in
which case such Purchaser shall have delivered a current prospectus in
connection with such sale or such Purchaser shall have confirmed that a current
prospectus is deemed to be delivered in connection with such sale in accordance
with Rule 172; or

 

(ii)           in accordance with Rule 144, in which case
Purchaser covenants to comply with Rule 144; or

 

(iii)         (A) If the transferee has agreed in writing to be
bound by the terms of this Agreement and (B) such Purchaser shall have
furnished the Company with an opinion of counsel, reasonably satisfactory to
the Company, that such disposition will not require registration of such shares
under the Securities Act.

 

(b)           Notwithstanding the provisions of subsection (a) above,
no such restriction shall apply to a transfer by a Purchaser that is (i) a
partnership transferring to its partners or former partners in accordance with
partnership interests, (ii) a corporation transferring to a wholly-owned
subsidiary or a parent corporation that owns all of the capital stock of the
Purchaser, (iii) a limited liability company transferring to its members
or former members in accordance with their interest in the limited liability
company or (iv) an individual transferring to the Purchaser’s family
member or trust for the benefit of an individual Purchaser and/or the Purchaser’s
family member; provided that in each case the
transferee will agree in writing to be subject to the terms of this Agreement
to the same extent as if such transferee were an original Purchaser hereunder.

 

(c)           Purchaser further acknowledges and agrees that, if a
Purchaser is selling the Securities using the prospectus forming a part of the
Registration Statement, such Securities are not transferable on the books of
the Company unless the certificate evidencing such Securities is submitted to
the Company’s transfer agent and a separate certificate executed by an officer
of, or other person duly authorized by, the Purchaser in the form attached
hereto as Exhibit E is submitted to Cooley.

 

ARTICLE
8

MISCELLANEOUS

 

8.1            Termination.

 

(a)           This Agreement may be terminated and the sale and
purchase of the Common Shares and the Warrants abandoned at any time prior to
the Closing, by written notice of any individual Purchaser, if the Closing has
not occurred within five business days of the date hereof (other than as a
result of the failure on the part of the party giving such notice of termination
to perform its covenants and obligations under this Agreement in all material
respects); provided, however,
that the abandonment of the sale and purchase of the Common Shares and the
Warrants shall be applicable only to such Purchaser providing such written
notice.

 

(b)           If this Agreement is terminated pursuant to this Section 8.1
all further obligations of the Company to such Purchaser and of such Purchaser
shall terminate; provided, 

 

14

 

however, that (i) no party shall be
relieved of any liability arising from any breach by such party of any
provision of this Agreement and (ii) the parties shall, in all events,
remain bound by and continue to be subject to the provisions set forth in this Article 8.

 

8.2          Waivers and Amendments.  The terms of
this Agreement may be waived or amended with the written consent of the Company
and each Purchaser.

 

8.3          Broker’s Fee.  Each Purchaser acknowledges that
the Company intends to pay a fee to the Placement Agent in respect of the sale
of the Securities.  Each of the parties
to this Agreement represents that, on the basis of any actions and agreements
by it, there are no other brokers or finders entitled to compensation in
connection with the sale of Securities to the Purchasers.

 

8.4          Governing Law.  This Agreement shall be governed
in all respects by and construed in accordance with the laws of the State of
California without any regard to conflicts of laws principles.

 

8.5          Survival.  The representations, warranties, covenants and
agreements made in this Agreement shall survive any investigation made by the
Company or the Purchasers and the Closing.

 

8.6          Successors and Assigns.  The provisions
hereof shall inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors and administrators of the parties to this
Agreement.  Upon a permitted transfer of
a Purchaser’s Securities on the books of the Company in accordance with the
terms of Sections 7.3(a)(iii) or 7.3(b), the Purchaser may assign this
Agreement to the permitted transferee upon prior written notice to the
Company.  Except as set forth in the
previous sentence, no Purchaser shall assign this Agreement without the prior
written consent of the Company.

 

8.7          Entire Agreement.  This Agreement
(including all schedules and exhibits hereto) constitutes the full and entire
understanding and agreement between the parties with regard to the subjects
thereof.

 

8.8          Notices, etc.  All notices and other
communications required or permitted under this Agreement shall be in writing
and shall be deemed effectively given: (a) upon personal delivery to the
party to be notified, (b) when sent by confirmed telex or facsimile if
sent during normal business hours of the recipient, if not, then on the next
business day, (c) five days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d) one day
after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt.  All communications shall be sent to the
Company or the Purchasers, as the case may be, at their respective addresses
set forth at the beginning of this Agreement or indicated below such Purchaser’s
name on the applicable signature page hereto, as appropriate, or at such
other address as the Company or the Purchasers may designate by 10 days advance
written notice to the other party.

 

8.9          Severability of this Agreement.  If any
provision of this Agreement shall be judicially determined to be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

15

 

8.10        Counterparts; Facsimile.  This Agreement
may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument.  Facsimile signatures shall be treated the
same as original signatures.

 

8.11        Further Assurances.  Each party to this Agreement shall do and
perform or cause to be done and performed all such further acts and things and
shall execute and deliver all such other agreements, certificates, instruments
and documents as the other party hereto may reasonably request in order to
carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

 

8.12        Currency.  All references to “dollars” or “$” in this
Agreement shall be deemed to refer to United States dollars.

 

8.13        Waiver of Conflicts.  Each party to
this Agreement acknowledges that legal counsel for the Company, Cooley, has in
the past and may continue in the future to perform legal services for one or
more of the Purchasers or their affiliates in matters unrelated to the transactions
contemplated by this Agreement, including, but not limited to, the
representation of the Purchasers in matters of a similar nature to the
transactions contemplated herein.  Each
party to this Agreement hereby: (a) acknowledges that it has had an
opportunity to ask for and have obtained information relevant to such
representation, including disclosure of the reasonably foreseeable adverse
consequences of such representation; (b) acknowledges that with respect to
the transactions contemplated herein, Cooley has represented the Company and
not any individual Purchaser or any individual stockholder, director or
employee of the Company; and (c) gives its informed consent to Cooley’s
representation of the Company in the transactions contemplated by this
Agreement.

 

8.14        Independent Nature of Purchasers’ Obligations and Rights. 
The obligations of each Purchaser under this Agreement are several and
not joint with the obligations of any other Purchaser, and no Purchaser shall
be responsible in any way for the representations and warranties of, or the
performance of the obligations of any other Purchaser under this Agreement.
Nothing contained herein and no action taken by any Purchaser pursuant thereto,
shall be deemed to constitute the Purchasers as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group, or are deemed
affiliates (as such term is defined under the Exchange Act) with respect to such
obligations or the transactions contemplated by this Agreement.  Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation the
rights arising out of this Agreement, and it shall not be necessary for any
other Purchaser to be joined as an additional party in any proceeding for such
purpose.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

16

 

The foregoing agreement is hereby executed as of the
date first above written.

 

	
   

  	
  METABASIS THERAPEUTICS, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Paul K. Laikind, Ph.D.

  
	
   

  	
   

  	
  Paul K. Laikind, Ph.D.

  
	
   

  	
   

  	
  President and Chief Executive Officer

  
				

 

 

[SIGNATURE PAGE
TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Hale BioPharma Ventures LLC

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ David F. Hale

  
	
   

  	
   

  	
   

  	
  Name:

  	
  David F. Hale

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Chairman and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  California

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  P.O. Box 8925

  
	
                                                                  

  	
   

  	
  Rancho Santa Fe, CA 92067

  
	
                                                                  

  	
   

  	
   

  
						

 

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price $23,775.00

  	
   

  	
  10,000

  	
   

  	
  3,000

  	
   

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    DLJ Capital Corporation 

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
  /s/ Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney in Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                                                    

  	
   

  	
  11 Madison Avenue

  
	
                                                                                                    

  	
   

  	
  New York, NY 10010

  
	
                                                                                                   

  	
   

  	
   

  
						

 

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price $5,318.95

  	
   

  	
  2,223

  	
   

  	
  937

  	
   

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Sprout Entrepreneurs Fund, LP

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney in Fact for GP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                                                    

  	
   

  	
  11 Madison Avenue

  
	
                                                                                                    

  	
   

  	
  New York, NY 10010

  
	
                                                                                                   

  	
   

  	
   

  
						

 

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price $1,739.69

  	
   

  	
  727

  	
   

  	
  308

  	
   

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE
AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Sprout Capital IX, LP

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney in Fact for GP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Delaware

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  11 Madison Avenue

  
	
                                                                  

  	
   

  	
  New York, NY 10010

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $443,192.78

  	
   

  	
  185,228

  	
   

  	
  78,074

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Sprout IX Plan Investors, LP

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney in Fact for GP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Delaware

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  11 Madison Avenue

  
	
                                                                  

  	
   

  	
  New York, NY 10010

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $20,230.33

  	
   

  	
  8,455

  	
   

  	
  3,565

  

 

[SIGNATURE PAGE TO SECURITIES PURCHASE
AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Domain Public Equity Partners, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Nicole Vitullo

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Nicole Vitullo

  
	
   

  	
   

  	
   

  	
  Title:

  	
  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  One Palmer Sq. Suite 515

  
	
                                                                  

  	
   

  	
  Princeton, NJ 08542

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $652,232.73

  	
   

  	
  273,397

  	
   

  	
  99,870

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE
AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Federated Kaufmann Fund, a portfolio of Federated Equity
  Funds

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Lawrence Auriana

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Lawrence Auriana

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President, Federated Global Investment

  
	
   

  	
   

  	
  Management,as attorney-in-fact for Federated Kaufmann

  
	
   

  	
   

  	
  Fund, a portfolio of Federated Equity Funds

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  140 East 45th St.

  
	
                                                                  

  	
   

  	
  New York, NY 10017

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price
  $1,904,180.16

  	
   

  	
  791,499

  	
   

  	
  416,580

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    MPM BioVentures II, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
  MPM Asset Management II, L.P., its General Partner

  
	
   

  	
   

  	
  By:

  	
  MPM Asset Management II LLC, its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Luke Evnin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Luke Evnin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  200 Clarendon Street, 54th Floor

  
	
                                                                  

  	
   

  	
  Boston, MA 02116

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $13,150.73

  	
   

  	
  5,340

  	
   

  	
  5,241

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    MPM BioVentures II-QP, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
  MPM Asset Management II, L.P., its General Partner

  
	
   

  	
   

  	
  By:

  	
  MPM Asset Management II LLC, its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Luke Evnin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Luke Evnin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  200 Clarendon Street, 54th Floor

  
	
                                                                  

  	
   

  	
  Boston, MA 02116

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate
dollar amount of Common Shares and Warrant Shares committed to be purchased
pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $119,142.49

  	
   

  	
  48,379

  	
   

  	
  47,485

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    MPM BioVentures Gmbh & Co. Parallel-Beteiligungs
  KG

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
  MPM Asset Management II, L.P., in its as the Special Limited Partner

  
	
   

  	
   

  	
  By:

  	
  MPM Asset Management II LLC, its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Luke Evnin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Luke Evnin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  200 Clarendon Street, 54th Floor

  
	
                                                                  

  	
   

  	
  Boston, MA 02116

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $41,944.63

  	
   

  	
  17,032

  	
   

  	
  16,718

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    MPM Asset Management Investors 2000 B LLC

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Luke Evnin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Luke Evnin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  200 Clarendon Street, 54th Floor

  
	
                                                                  

  	
   

  	
  Boston, MA 02116

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $2,745.86

  	
   

  	
  1,115

  	
   

  	
  1,094

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Red Abbey Venture Partners, LP

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Matt Zuga

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matt Zuga

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member of Red Abbey Venture Partners, 

  
	
   

  	
   

  	
  LLC (General Partner)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  2330 W. Joppa Rd. Suite 330

  
	
                                                                  

  	
   

  	
  Lutherville, MD 21093

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $360,239.03

  	
   

  	
  150,892

  	
   

  	
  57,214

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    InterWest Partners VII, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ W. Stephen Holmes

  
	
   

  	
   

  	
   

  	
  Name:

  	
  W. Stephen Holmes

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  California

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  2710 Sand Hill Rd., 2nd Floor

  
	
                                                                  

  	
   

  	
  Menlo Park, CA 94025

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  
	
  Purchase Price $2,251,671.81

  	
   

  	
  945,577

  	
   

  	
  312,173

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement or
caused its duly authorized officers to execute this Agreement as of the date
first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    InterWest Investors VII, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ W. Stephen Holmes

  
	
   

  	
   

  	
   

  	
  Name:

  	
  W. Stephen Holmes

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    California

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                  

  	
   

  	
  2710 Sand Hill Rd., 2nd Floor

  
	
                                                                  

  	
   

  	
  Menlo Park, CA 94025

  
	
                                                                  

  	
   

  	
   

  
						

 

Aggregate dollar amount of Common Shares and Warrant Shares committed
to be purchased pursuant to the terms of the Agreement:

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase
  Price $107,726.39

  	
   

  	
  45,239

  	
   

  	
  14,937

  	
   

  

 

 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

EXHIBIT A

 

FORM OF WARRANT

 

See Form of Warrant filed as an exhibit to the Form 8-K
filed on April 22, 2008.

 

 

EXHIBIT B

 

PURCHASER QUESTIONNAIRE

 

INSTRUCTION SHEET FOR PURCHASER

(to be read in conjunction with
the entire Securities Purchase Agreement)

 

A.                                    Complete the following items in the
Securities Purchase Agreement:

 

1.                                      Provide the information regarding the
Purchaser requested on the signature page (please note that the Company
will complete the aggregate dollar amount of Common Shares and
Warrants committed to be purchased pursuant to the terms of the Agreement based
upon information provided in the participation notice and final share
allocations). The
Securities Purchase Agreement must be executed by an individual authorized to
bind the Purchaser.

 

2.                                      Exhibit B-1 – Stock Certificate Questionnaire:

 

Provide the information requested by the Stock Certificate
Questionnaire.

 

3.                                      Exhibit B-2 – Purchaser Certificate:

 

Provide the information requested by the Certificate for Individual
Purchasers or the Certificate for Corporate, Partnership, Trust, Foundation and
Joint Purchasers, as applicable.

 

4.                                      Return the signed Securities Purchase
Agreement to:

 

Charles J. Bair, Esq.

Cooley Godward Kronish LLP

4401 Eastgate Mall

San Diego, California 92121

Fax: 858.550.6420

 

B.                                    Instructions regarding the transfer of
funds for the purchase of Securities will be telecopied to the Purchaser at a
later date.

 

C.                                    Upon the resale of the Registrable Shares
by the Purchaser after the Registration Statement covering the Registrable
Shares is effective, as described in the Registration Rights Agreement, the
Purchaser:

 

(i)                                    must deliver a current prospectus to the
buyer or such Purchaser must confirm that a current prospectus is deemed to be
delivered to such buyer in accordance with Rule 172; and

 

(ii)                                must send a letter in the form of Exhibit E to the Securities Purchase
Agreement to the Company so that the Registrable Shares may be properly
transferred.

 

 

EXHIBIT B-1

 

METABASIS THERAPEUTICS, INC.

STOCK CERTIFICATE QUESTIONNAIRE

 

Pursuant to Section 4.3 of the Agreement, please
provide us with the following information:

 

	
  1.   The
  exact name that the Securities are to be registered in (this is the name that
  will appear on the stock certificate(s)). You may use a nominee name if
  appropriate:

  	
   

  	
                                                                

  
	
   

  	
   

  	
   

  
	
  2.   The
  relationship between the Purchaser of the Securities and the Registered
  Holder listed in response to item 1 above:

  	
   

  	
                                                                

  
	
   

  	
   

  	
   

  
	
  3.   The
  mailing address of the Registered Holder listed in response to item 1 above:

  	
   

  	
                                                                

  
	
   

  	
   

  	
                                                                

  
	
   

  	
   

  	
                                                                

  
	
  4.   The
  Tax Identification Number of the Registered Holder listed in response to item
  1 above:

  	
   

  	
                                                                

  

 

 

EXHIBIT B-2

 

METABASIS THERAPEUTICS, INC.

CERTIFICATE FOR INDIVIDUAL
PURCHASERS

 

If the investor is an individual Purchaser (or married
couple) the Purchaser must complete, date and sign this Certificate.

 

CERTIFICATE

 

I certify that the representations and responses below
are true and accurate:

 

In order for the Company to offer and sell the
Securities in conformance with state and federal securities laws, the following
information must be obtained regarding your investor status.  Please initial each category
applicable to you as an investor in the Company.

 

          
(1)        A
natural person whose net worth(1), either individually or jointly with such
person’s spouse exceeds $1,000,000;

 

          
(2)        A
natural person who had an income(2) in excess of $200,000, or joint income
with the person’s spouse in excess of $300,000, in 2003 and 2004, and
reasonably expects to have individual income reaching the same level in 2005;

 

          
(3)        An
executive officer or director of the Company.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
  Name(s) of
  Purchaser

  
	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
					

 

(1)   For purposes of this Certificate, “net worth”
means the excess of total assets at fair market value over total liabilities,
except that the principal residence owned by a natural person shall be valued
either (a) at cost, including the cost of improvements, net of current
encumbrances upon the property, or (b) at the appraised value of the
residence as determined upon a written appraisal used by an institutional
lender making a loan to the individual secured by the property, including the
cost of subsequent improvements, net of current encumbrances upon the
property.  As used in the preceding
sentence, “institutional lender” means a bank, savings and loan company,
industrial loan company, credit union or personal property broker or a company
whose principal business is as a lender of loans secured by real property and
which has such loans receivable in the amount of $2,000,000 or more.

 

(2)   For purposes of this Certificate, “income”
means adjusted gross income, as reported for federal income tax purposes,
increased by the following amounts:  (a) the
amount of any tax exempt interest income received, (b) the amount of
losses claimed as a limited partner in a limited partnership, (c) any
deduction claimed for depletion, (d) amounts contributed to an IRA or
Keogh retirement plan, (e) alimony paid, and (f) any amounts by which
income from long-term capital gains has been reduced in arriving at adjusted
gross income pursuant to the provisions of Section 1202 of the Internal
Revenue Code.

 

 

EXHIBIT B-2

 

METABASIS THERAPEUTICS, INC.

CERTIFICATE FOR CORPORATE,
PARTNERSHIP,

TRUST, FOUNDATION, AND JOINT PURCHASERS

 

If the investor is a corporation, partnership, trust,
pension plan, foundation, joint purchaser (other than a married couple) or
other entity, an authorized officer, partner, or trustee must complete, date
and sign this Certificate.

 

CERTIFICATE

 

The undersigned certifies that the representations and
responses below are true and accurate:

 

(a)           The investor has been duly formed and is validly existing and has full
power and authority to invest in the Company. The person signing on behalf of
the undersigned has the authority to execute and deliver the Securities
Purchase Agreement on behalf of the Purchaser and to take other actions with respect
thereto.

 

(b)           Indicate the form of entity of the undersigned:

 

o                                    Limited Partnership

 

o                                    General Partnership

 

o                                    Corporation

 

o                                    Revocable Trust (identify each grantor
and indicate under what circumstances the trust is revocable by the grantor:                                  

                                                                                                                       

                                                                                                                       

(Continue on a separate piece of paper, if necessary.)

 

o                                    Other Type of Trust (indicate type of
trust and, for trusts other than pension trusts, name the grantors and
beneficiaries:                                  

                                                                                                                       

                                                                                                                       

 (Continue on a separate piece of
paper, if necessary.)

 

o                                    Other form of organization (indicate form
of organization (                      ).

 

(c)           Indicate the approximate date the
undersigned entity was formed:                          .

 

 

(d)           In order for the Company to offer and sell the Securities in
conformance with state and federal securities laws, the following information
must be obtained regarding your investor status. Please initial
each category applicable to you as an investor in the Company.

 

              
(1)    A
bank as defined in Section 3(a)(2) of the Securities Act, or any
savings and loan association or other institution as defined in Section 3(a)(5)(A) of
the Securities Act whether acting in its individual or fiduciary capacity;

 

              
(2)    A
broker or dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934;

 

              
(3)    An
insurance company as defined in Section 2(13) of the Securities Act;

 

              
(4)    An
investment company registered under the Investment Company Act of 1940 or a
business development company as defined in Section 2(a)(48) of that Act;

 

              
(5)    A
Small Business Investment Company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958;

 

              
(6)    A
plan established and maintained by a state, its political subdivisions, or any
agency or instrumentality of a state or its political subdivisions, for the
benefit of its employees, if such plan has total assets in excess of
$5,000,000;

 

              
(7)    An
employee benefit plan within the meaning of the Employee Retirement Income
Security Act of 1974, if the investment decision is made by a plan fiduciary,
as defined in Section 3(21) of such act, which is either a bank, savings
and loan association, insurance company, or registered investment adviser, or
if the employee benefit plan has total assets in excess of $5,000,000 or, if a
self-directed plan, with investment decisions made solely by persons that are
accredited investors;

 

              
(8)    A
private business development company as defined in Section 202(a)(22) of
the Investment Advisers Act of 1940;

 

              
(9)    An
organization described in Section 501(c)(3) of the Internal Revenue
Code, a corporation, Massachusetts or similar business trust, or partnership,
not formed for the specific purpose of acquiring the Securities, with total
assets in excess of $5,000,000;

 

              
(10)  A
trust, with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the Securities, whose purchase is directed by a
sophisticated person who has such knowledge and experience in financial and
business matters that such person is capable of evaluating the merits and risks
of investing in the Company;

 

              
(11)  An
entity in which all of the equity owners qualify under any of 

 

 

the above subparagraphs. If the undersigned belongs to
this investor category only, list the equity owners of the undersigned, and the
investor category which each such equity owner satisfies:

                                                                                                                       

                                                                                                                       

  (Continue on
a separate piece of paper, if necessary.)

 

	
  Dated:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  Name of investor

  
	
   

  
	
   

  	
   

  
	
  Signature and title of
  authorized

  

officer, partner or
trustee

 

 

EXHIBIT C

 

FORM OF OPINION OF COMPANY
COUNSEL

 

The following opinions shall
be given, subject to customary assumptions, qualifications and exceptions to be
set forth in the final opinion letter:

 

1.                                      The Company has
been duly incorporated and is a validly existing corporation in good standing
under the laws of the State of Delaware.

 

1.                                      The Company has
the requisite corporate power to own its property and assets and to conduct its
business as it is currently being conducted.

 

2.                                      The Company is
duly qualified to do business as a foreign corporation and is in good  standing under the laws of  the
State of California.

 

3.                                      The Company has
the requisite corporate power to execute, deliver and perform its obligations
under the Securities Purchase Agreement and the Registration Rights Agreement.

 

4.                                      Each of the
Securities Purchase Agreement and the Registration Rights Agreement has been
duly and validly authorized, executed and delivered by the Company and each
such agreement constitutes a valid and binding agreement of the Company
enforceable against the Company in accordance with its respective terms, except
as rights to indemnity and contribution under Section 1.3 of the  Registration
Rights Agreement may be limited by applicable laws and except as
enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, arrangement, moratorium or other similar laws affecting
creditors’ rights, and subject to general equity principles and to limitations
on availability of equitable relief, including specific performance.

 

5.                                      The Common
Shares have been duly authorized, and upon issuance and delivery against
payment therefor in accordance with the terms of the Securities Purchase
Agreement, the Common Shares will be validly issued, outstanding, fully paid
and nonassessable.  The Warrant Shares
have been duly authorized, and upon issuance and delivery upon exercise of the Warrants
in accordance with the terms of the Warrants, the Warrant Shares will be
validly issued, outstanding, fully paid and nonassessable.

 

6.                                      The execution
and delivery of the Securities Purchase Agreement and the Registration Rights
Agreement by the Company and the issuance of the Common Shares and the Warrants
pursuant to the Securities Purchase Agreement do not violate any provision of
the Company’s Amended and Restated
Certificate of Incorporation or the Company’s Amended and Restated Bylaws
and do not violate (a) any governmental statute, rule or regulation
which in our experience is typically applicable to transactions of the nature
contemplated by the Securities Purchase Agreement and the Registration Rights
Agreement or (b) any order, writ, judgment, injunction, decree,
determination or award which has been entered against the Company and of which
we are aware, in each case to the extent the violation of which would
materially and adversely affect the Company.

 

 

7.                                      All consents,
approvals, authorizations, or orders of, and filings, registrations, and
qualifications with, any U.S. federal or California regulatory authority or governmental body required for
the issuance of the Common Shares and the Warrants have been made or obtained,
except for the filing of (a) a Form D pursuant to Securities and
Exchange Commission Regulation D and (b) the notice to be filed under California Corporations Code Section 25102.1(d).

 

8.                                      The offer and
sale of the Common Shares and the Warrants are exempt from the registration
requirements of the Securities Act of 1933, as amended, subject to the timely
filing of a Form D pursuant to Securities and Exchange Commission
Regulation D.

 

 

EXHIBIT D

 

METABASIS THERAPEUTICS, INC.

 

IMPORTANT - DO NOT REMOVE THIS INSTRUCTION SHEET FROM
THE ATTACHED SHARE CERTIFICATE UNLESS AND UNTIL THE SHARES ARE SOLD AS FOLLOWS:

 

(1)   THE SHARES
ARE RESOLD PURSUANT TO THE REGISTRATION STATEMENT ON FORM S-3 (NO.
[                                ]),
AND, IN CONNECTION WITH SUCH RESALE, THE HOLDER HAS PROVIDED TO THE COMPANY OR
TO THE TRANSFER AGENT FOR THE COMPANY’S STOCK A PURCHASER’S CERTIFICATE OF
SUBSEQUENT SALE AND THE HOLDER HAS DELIVERED A CURRENT PROSPECTUS, OR THE
HOLDER HAS CONFIRMED THAT A CURRENT PROSPECTUS IS DEEMED TO BE DELIVERED IN
CONNECTION WITH SUCH RESALE IN ACCORDANCE WITH RULE 172 UNDER THE  SECURITIES ACT OF 1933, AS AMENDED; OR

 

(2)   THE SHARES
ARE RESOLD IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT OF 1933, AS AMENDED, PROVIDED THAT, PRIOR TO SUCH RESALE, THE
HOLDER HAS NOTIFIED THE COMPANY OF SUCH DISPOSITION AND PROVIDED THE COMPANY
WITH WRITTEN ASSURANCES, IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY
OF COMPLIANCE WITH THE REQUIREMENTS OF SUCH EXEMPTION.

 

 

DO NOT REMOVE THIS
INSTRUCTION SHEET FROM

THE ATTACHED SHARE CERTIFICATE

EXCEPT IN ACCORDANCE WITH

THE INSTRUCTIONS SET FORTH ABOVE.

 

 

EXHIBIT E

 

PURCHASER’S CERTIFICATE OF
SUBSEQUENT SALE

 

To:  Cooley Godward Kronish LLP

 

Attention: 
Charles J. Bair, Esq.

 

The undersigned, the selling securityholder or an
officer of, or other duly authorized person, hereby certifies that
                                                                          
represents that it has sold

 

[fill in name of selling securityholder]

shares of the Common Stock of Metabasis Therapeutics, Inc.
and that such shares were sold on
                                  
either (i) in accordance with the registration statement on Form S-3
with

 

[date]

file number [                        ],
in which case the selling securityholder certifies that such selling
securityholder has delivered a current prospectus in connection with such sale
or such selling securityholder has confirmed that a current prospectus is
deemed to be delivered in connection with such sale in accordance with Rule 172
under the Securities Act of 1933, or (ii) in accordance with Rule 144
under the Securities Act of 1933 (“Rule 144”),
in which case the selling securityholder certifies that it has complied with
the requirements of Rule 144.

 

	
  Print or type:

  
	
   

  
	
  Number of shares 

  sold (if sold
  on multiple 

  dates, please provide a 

  breakdown by date):

  	
   

  
	
   

  
	
  Name of selling 

  securityholder:

  	
   

  
	
   

  
	
  Name of 

  individual representing 

  selling securityholder (if 

  an institution):

  	
   

  
	
   

  
	
  Title of individual 

  representing selling 

  securityholder
  (if an 

  institution):

  	
   

  
	
   

  
	
  Signature by:

  
	
   

  
	
  Selling 

  securityholder or 

  individual representative:

  	
   

  

 

 

EXHIBIT F

 

REGISTRATION RIGHTS AGREEMENT

 

See Registration Rights Agreement  filed as an exhibit to the Form 8-K filed
on April 22, 2008.Exhibit 4.3

 

METABASIS THERAPEUTICS, INC.

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”)
is made as of April 14, 2008, by and among METABASIS
THERAPEUTICS, INC., a
Delaware corporation (the “Company”)
with its principal office at 11119 North Torrey Pines Road, La Jolla,
California 92037, and the individuals and entities identified on the signature pages hereto
(the “Purchasers”).

 

RECITALS

 

WHEREAS, the
Company previously issued warrants pursuant to that certain Series D
Preferred Stock Purchase Agreement dated October 18, 2001 (the “Series D Warrants”) by and
among the Company and the investors listed on Annex A thereto and Warrants to
Purchase Common Stock pursuant to that certain Securities Purchase Agreement
dated September 30, 2005 (the “2005 PIPE Warrants”)
by and among the Company and the individuals and entities identified on the
signature pages thereto;

 

WHEREAS,
certain of the Series D Warrants 
and 2005 PIPE Warrants are being exercised (the “Exercised
Warrants”) pursuant to those certain Warrant Exercise Agreements
of even date herewith (the “Warrant Exercise
Agreements”) by and between the Company and the holders of such Series D
Warrants and 2005 PIPE Warrants;

 

WHEREAS,
pursuant to a Securities Purchase Agreement of even date herewith by and among
the Company and the individuals and entities identified on the signature pages thereto
(the “Purchase Agreement”), the
Company has authorized the sale and issuance of the Common Shares and the
Warrants (each as defined in the Purchase Agreement); and

 

WHEREAS, the
Company and the Purchasers desire to provide for registration under the
Securities Act of 1933, as amended (the “Securities Act”)
of (i) the shares of the Company’s Common Stock (the “Common
Stock”) issued or issuable pursuant to the exercise of the
Exercised Warrants and the Warrants (the “Warrant Shares”)
and (ii) the Common Shares.

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the
mutual promises, representations, warranties and covenants hereinafter set
forth and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1

 

ARTICLE
1

 

REGISTRATION

 

1.1                               Definitions.
 For the purpose of this Agreement:

 

(a)                                  the
term “Registration
Statement” shall
mean any registration statement required to be filed by Section 1.2 below,
and shall include any preliminary prospectus, final prospectus, exhibit or
amendment included in or relating to such registration statements; and

 

(b)                                  the
term “Registrable
Shares”  shall mean all of the Common Shares and the Warrant Shares.

 

1.2                               Registration
Procedures and Expenses.  The Company
shall:

 

(a)                                  use
its best efforts to file a Registration Statement with the Securities and
Exchange Commission (the “SEC”) on or
before the date 30 days following the date hereof (the “Filing
Date”) to register the Registrable Shares on Form S-3 under
the Securities Act (providing for shelf registration of such Registrable Shares
under SEC Rule 415) or on such other form which is appropriate to register
such Registrable Shares for resale from time to time by the Purchasers; provided, however, that if a Registration Statement is not
filed with the SEC on or before the Filing Date, then for each 30-day period
following the Filing Date (or any portion thereof), until but excluding the
date the Registration Statement is filed, the Company shall pay each Purchaser,
as liquidated damages and not as a penalty, an amount equal to 1% of the
purchase price attributable to the Common Shares purchased by such Purchaser
under the Purchase Agreement, for such 30-day period (or prorated for any
portion thereof), and for any such period, such payment shall be made no later
than the first business day of the calendar month next succeeding the last
month in which such period occurs (the parties hereto agreeing that the
liquidated damages provided for in this Section 1.2(a) constitute a
reasonable estimate of the damages that may be incurred by the Purchasers by
reason of the failure of the Registration Statement to be filed in accordance
with the provisions hereof); provided further, however,
that, notwithstanding anything contained in this Agreement to the
contrary, in the event that the SEC limits the amount of Registrable Shares
that may be included and sold by Purchasers in the Registration Statement
because the SEC deems such Registration Statement to constitute a primary
offering of securities by the Company (in any case, an “SEC
Limitation”), the Company may reduce the number of Registrable
Shares included in the Registration Statement on behalf of the Purchasers, and
delay the filing of a Registration Statement with respect to the Registrable
Shares so reduced, as described in Section 1.2(b) below (provided
that in case of such a reduction of such Registrable Securities, such reduction
shall first reduce Registrable Shares held by affiliates of the Company on a
pro rata basis among them and then reduce Registrable Shares held by other
Purchasers on a pro rata basis among them, in each case in proportion to the
respective numbers of Registrable Shares requested to be registered by each
such Purchaser over the total amount of Registrable Shares requested to be
registered by all such Purchasers);

 

(b)                                  in
the case of an SEC Limitation, include in the Registration Statement the
maximum number of Registrable Securities that can be included therein without
causing the Registration Statement to be deemed to register a primary offering
by the Company and use its 

 

2

 

best efforts at the first opportunity that is permitted by the SEC, but
in no event later than the later of 60 days from the date substantially all of
the Registrable Shares registered under the Registration Statement have been
sold by the Purchasers or six months from the date the Registration Statement
was declared effective, to register for resale the Registrable Shares that have
been excluded from being registered and in such event, give the Purchasers
prompt notice of the number of the Registrable Shares excluded (the “Additional Registration Statement”).
If all excluded Registrable Securities cannot be registered on the Additional
Registration Statement, then the Company will be obligated to file a second
Additional Registration Statement as soon as is permitted by the SEC to cover
as many additional excluded Registrable Securities as possible, although the
Company will not be obligated to file any more than two (2) Additional
Registration Statements for excluded Registrable Securities.  The Company’s obligations under this
Agreement with respect to the first Additional Registration Statement and
second Additional Registration Statement shall be the same as its obligations for
the original Registration Statement, provided that the “Filing Date” for the first Additional
Registration Statement shall be the Additional Filing Date, and the “Effectiveness Deadline Date”
(as defined below) for the Additional Registration Statement shall be delayed
by the number of days that elapses between the Filing Date and Additional
Filing Date;

 

(c)                                  use
its best efforts, subject to receipt of necessary information from the
Purchasers, to cause any such Registration Statement filed pursuant to Section 1.2(a) above
to become effective as promptly after filing of such Registration Statement as
practicable but in any event by the date (the “Effectiveness
Deadline Date”) that is 90 days following the date hereof; provided, however, that in the event that such Registration
Statement is reviewed by the SEC, then the Effectiveness Deadline Date shall
mean, with respect to any Registration Statement, the date that is 120 days
following the date hereof; provided, however,
that if the Registration Statement is not declared effective by the SEC on or
prior to the Effectiveness Deadline Date, then for each 30-day period following
the Effectiveness Deadline Date (or any portion thereof), until but excluding
the date the Registration Statement is declared effective, the Company shall
pay each Purchaser, as liquidated damages and not as a penalty, an amount equal
to 1% of the purchase price attributable to the Common Shares purchased by such
Purchaser under the Purchase Agreement, for such 30-day period (or prorated for
any portion thereof), and for any such period, such payment shall be made no
later than the first business day of the calendar month next succeeding the
last month in which such period occurs (the parties hereto agreeing that the
liquidated damages provided for in this Section 1.2(b) constitute a
reasonable estimate of the damages that may be incurred by the Purchasers by
reason of the failure of the Registration Statement to be declared effective in
accordance with the provisions hereof);

 

(d)                                  prepare
and file with the SEC such amendments and supplements to such Registration
Statement and the prospectus used in connection therewith as may be necessary
to keep such Registration Statement continuously effective until termination of
such obligation as provided in Section 1.5 below, subject to the Company’s
right to suspend pursuant to Section 1.4;

 

(e)                                  furnish
to each Purchaser (and to each underwriter, if any, of such Registrable Shares)
such number of copies of prospectuses in conformity with the requirements of
the Securities Act and such other documents as the Purchasers may reasonably
request, in 

 

3

 

order to facilitate the public sale or other disposition of all or any
of the Registrable Shares by the Purchasers;

 

(f)                                    file
such documents as may be required of the Company for normal securities law
clearance for the resale of the Registrable Shares in such states of the United
States as may be reasonably requested by each Purchaser; provided,
however, that the Company shall not be required in connection with
this paragraph (e) to qualify as a foreign corporation or execute a
general consent to service of process in any jurisdiction;

 

(g)                                 upon
notification by the SEC that that the Registration Statement will not be
reviewed or is not subject to further review by the SEC, the Company shall
within five business days following the date of such notification request
acceleration of such Registration Statement;

 

(h)                                 upon
notification by the SEC that that the Registration Statement has been declared
effective by the SEC, the Company shall file the final prospectus under Rule 424
of the Securities Act (“Rule 424”)
within the applicable time period prescribed by Rule 424;

 

(i)                                    advise
each Purchaser promptly:

 

(i)                                    of
the effectiveness of the Registration Statement or any post-effective
amendments thereto;

 

(ii)                                of
any request by the SEC for amendments to the Registration Statement or
amendments to the prospectus or for additional information relating thereto;

 

(iii)                            of
the issuance by the SEC of any stop order suspending the effectiveness of the
Registration Statement under the Securities Act or of the suspension by any
state securities commission of the qualification of the Registrable Shares for
offering or sale in any jurisdiction, or the initiation of any proceeding for
any of the preceding purposes; and

 

(iv)                               of
the existence of any fact and the happening of any event that makes any
statement of a material fact made in the Registration Statement, the prospectus
and amendment or supplement thereto, or any document incorporated by reference
therein, untrue, or that requires the making of any additions to or changes in
the Registration Statement or the prospectus in order to make the statements
therein not misleading;

 

(j)                                    use
its best efforts to cause all Registrable Shares to be listed on each
securities exchange, if any, on which equity securities by the Company are then
listed;

 

(k)                                bear
all expenses in connection with the procedures in paragraphs (a) through (i) of
this Section 1.2 and the registration of the Registrable Shares on such
Registration Statement and the satisfaction of the blue sky laws of such
states; and

 

(l)                                    otherwise
use commercially reasonable efforts to make available to the Purchasers holding
Shares as of the date thereof, no later than the Availability Date (as defined
below), an earnings statement covering a period of at least 12 months,
beginning after the effective date of each Registration Statement, which
earnings statement shall satisfy the 

 

4

 

provisions of Section 11(a) of the Securities Act, including Rule 158
promulgated thereunder (for the purpose of this subsection 1.2(k), “Availability
Date” means the 45th day following the end of the fourth fiscal
quarter after the fiscal quarter that includes the effective date of such
Registration Statement, except that, if such fourth fiscal quarter is the last
quarter of the Company’s fiscal year, “Availability Date” means the 90th
day after the end of such fourth fiscal quarter).

 

1.3                               Indemnification.

 

(a)                                  The
Company agrees to indemnify and hold harmless each Purchaser, the partners,
members, officers and directors of each Purchaser and each person, if any, who
controls such Purchaser within the meaning of the Securities Act or the
Securities Exchange Act of 1934, as amended (the “Exchange
Act”), from and against any losses, claims, damages or
liabilities to which they may become subject (under the Securities Act or
otherwise) insofar as such losses, claims, damages or liabilities (or actions
or proceedings in respect thereof) arise out of, or are based upon, any
material breach of this Agreement by the Company or any untrue statement or
alleged untrue statement of a material fact contained in the Registration
Statement or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading or arise
out of any failure by the Company to fulfill any undertaking included in the
Registration Statement and the Company will, as incurred, reimburse such
Purchaser, partner, member, officer, director or controlling person for any
legal or other expenses reasonably incurred in investigating, defending or
preparing to defend any such action, proceeding or claim; provided,
however, that the Company shall not be liable in any such case to
the extent that such loss, claim, damage or liability (collectively, “Loss”) arises out of,
or is based upon, an untrue statement or omission or alleged untrue statement
or omission made in such Registration Statement in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such Purchaser, partner, member, officer, director or controlling person
specifically for use in preparation of the Registration Statement or any breach
of this Agreement by such Purchaser; provided
further, however, that the Company shall not be liable to any
Purchaser of Registrable Shares (or any partner, member, officer, director or
controlling person of such Purchaser) to the extent that any such Loss is
caused by an untrue statement or omission or alleged untrue statement or
omission made in any preliminary prospectus if either (i) (A) such
Purchaser failed to send or deliver a copy of the final prospectus with or
prior to, or such Purchaser failed to confirm that a final prospectus was
deemed to be delivered prior to (in accordance with Rule 172 under the
Securities Act (“Rule 172”)), the
delivery of written confirmation of the sale by such Purchaser to the person
asserting the claim from which such Loss resulted and (B) the final
prospectus corrected such untrue statement or omission, (ii) (X) such
untrue statement or omission is corrected in an amendment or supplement to the
prospectus and (Y) having previously been furnished by or on behalf of the
Company with copies of the prospectus as so amended or supplemented or notified
by the Company that such amended or supplemented prospectus has been filed with
the SEC in accordance with Rule 172, such Purchaser thereafter fails to
deliver such prospectus as so amended or supplemented, with or prior to, or
such Purchaser fails to confirm that the prospectus as so amended or supplemented
was deemed to be delivered prior to (in accordance with Rule 172), the
delivery of written confirmation of the sale of a Registrable Share to the
person asserting the claim from which such 

 

5

 

Loss resulted or (iii) such Purchaser sold Registrable Shares in
violation of such Purchaser’s covenant contained in Section 1.4 of this
Agreement.

 

(b)                                  Each
Purchaser, severally and not jointly, agrees to indemnify and hold harmless the
Company (and each person, if any, who controls the Company within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange
Act, each officer of the Company who signs the Registration Statement and each
director of the Company), from and against any losses, claims, damages or
liabilities to which the Company (or any such officer, director or controlling
person) may become subject (under the Securities Act or otherwise), insofar as
such losses, claims, damages or liabilities (or actions or proceedings in respect
thereof) arise out of, or are based upon, any material breach of this Agreement
by such Purchaser or any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement or any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading in each case, on the effective date
thereof, if, and to the extent, such untrue statement or omission or alleged
untrue statement or omission was made in reliance upon and in conformity with
written information furnished by or on behalf of such Purchaser specifically
for use in preparation of the Registration Statement, and such Purchaser will
reimburse the Company (and each of its officers, directors or controlling
persons) for any legal or other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim; provided, however, that in no event shall any indemnity
under this Section 1.3(b) be greater in amount than the dollar amount
of the proceeds (net of (i) the purchase price of the Registrable Shares
included in the Registration Statement giving rise to such indemnification
obligation and (ii) the amount of any damages such Purchaser has otherwise
been required to pay by reason of such untrue statement or omission or alleged
untrue statement or omission) received by such Purchaser upon the sale of such
Registrable Shares.

 

(c)                                  Promptly
after receipt by any indemnified person of a notice of a claim or the beginning
of any action in respect of which indemnity is to be sought against an
indemnifying person pursuant to this Section 1.3, such indemnified person
shall notify the indemnifying person in writing of such claim or of the
commencement of such action, and, subject to the provisions hereinafter stated,
in case any such action shall be brought against an indemnified person and such
indemnifying person shall have been notified thereof, such indemnifying person
shall be entitled to participate therein, and, to the extent that it shall
wish, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified person. After notice from the indemnifying person to such indemnified
person of its election to assume the defense thereof, such indemnifying person
shall not be liable to such indemnified person for any legal expenses
subsequently incurred by such indemnified person in connection with the defense
thereof; provided, however, that if there exists
or shall exist a conflict of interest that would make it inappropriate in the
reasonable judgment of the indemnified person for the same counsel to represent
both the indemnified person and such indemnifying person or any affiliate or
associate thereof, the indemnified person shall be entitled to retain its own
counsel at the expense of such indemnifying person; provided,
further, that no indemnifying person shall be responsible for the
fees and expense of more than one separate counsel for all indemnified parties.
The indemnifying party shall not settle an action without the consent of the
indemnified party, which consent shall not be unreasonably withheld.

 

6

 

(d)                                  If
after proper notice of a claim or the commencement of any action against the
indemnified party, the indemnifying party does not choose to participate, then
the indemnified party shall assume the defense thereof and upon written notice
by the indemnified party requesting advance payment of a stated amount for its
reasonable defense costs and expenses, the indemnifying party shall advance
payment for such reasonable defense costs and expenses (the “Advance Indemnification Payment”) to
the indemnified party.  In the event that
the indemnified party’s actual defense costs and expenses exceed the amount of
the Advance Indemnification Payment, then upon written request by the
indemnified party, the indemnifying party shall reimburse the indemnified party
for such difference; in the event that the Advance Indemnification Payment
exceeds the indemnified party’s actual costs and expenses, the indemnified
party shall promptly remit payment of such difference to the indemnifying
party.

 

(e)                                  If
the indemnification provided for in this Section 1.3 is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect
to any losses, claims, damages or liabilities referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable law contribute to the amount paid
or payable by such indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the
other, as well as any other relevant equitable considerations; provided, that in no event shall any contribution by an
indemnifying party hereunder be greater in amount than the dollar amount of the
proceeds (net of (i) the purchase price of the Registrable Shares included
in the Registration Statement giving rise to such indemnification obligation
and (ii) the amount of any damages such indemnifying party has otherwise
been required to pay by reason of such untrue statement or omission or alleged
untrue statement or omission) received by such indemnifying party upon the sale
of such Registrable Shares.

 

1.4                               Prospectus
Delivery.  Each Purchaser hereby
covenants with the Company not to make any sale of the Registrable Shares
without complying with Section 2.3. 
The Purchaser acknowledges that there may be times when the Company must
suspend the use of the prospectus forming a part of the Registration Statement
until such time as an amendment to the Registration Statement has been filed by
the Company and declared effective by the SEC, or until such time as the
Company has filed an appropriate report with the SEC pursuant to the Exchange
Act.  The Purchaser hereby covenants that
it will not sell any Registrable Shares pursuant to said prospectus during the
period commencing at the time at which the Company gives the Purchaser notice
of the suspension of the use of said prospectus and ending at the time the
Company gives the Purchaser notice that the Purchaser may thereafter effect
sales pursuant to said prospectus; provided, that
such suspension periods shall in no event exceed 30 days in any 12 month period
and that, in the good faith judgment of the Company’s Board of Directors, the
Company would, in the absence of such delay or suspension hereunder, be
required under state or federal securities laws to disclose any corporate
development, a potentially significant transaction or event involving the
Company, or any negotiations, discussions, or proposals directly relating
thereto, in either case the disclosure of which would reasonably be expected to
have a material adverse effect upon the Company or its stockholders; provided further, that the Company may suspend the use of
the prospectus forming a part of the Registration Statement to the extent
necessary to file any post-effective amendment to the Registration Statement in
order to amend the table of selling stockholders within the Registration
Statement to reflect transfers of 

 

7

 

the Securities pursuant to Sections 2.3(a) and 2.3(b).  If, after the Registration Statement has been
declared effective by the SEC, sales cannot be made pursuant to such
Registration Statement, except as excused pursuant to this Section 1.4,
then for each 30-day period following the date sales cannot be made pursuant to
such Registration Statement (or any portion thereof), until but excluding the
date sales can again be made pursuant to such Registration Statement, the Company
shall pay each Purchaser, as liquidated damages and not as a penalty, an amount
equal to 1% of the purchase price attributable to the Common Shares purchased
by such Purchaser under the Purchase Agreement, for such 30-day period (or
prorated for any portion thereof), and for any such period, such payment shall
be made no later than the first business day of the calendar month next
succeeding the last month in which such period occurs (the parties hereto
agreeing that the liquidated damages provided for in this Section 1.4
constitute a reasonable estimate of the damages that may be incurred by the
Purchasers by reason of the failure of the Registration Statement to remain
effective in accordance with the provisions hereof).

 

1.5                               Termination
of Obligations.  The obligations of
the Company pursuant to Section 1.2 hereof shall cease and terminate upon
the earlier to occur of (a) such time as all of the Registrable Shares
have been resold, (b) such time as all of the Registrable Shares may be
freely resold by the Purchaser pursuant to Rule 144 under the Securities
Act (“Rule 144”), or (c) the
second anniversary of the date hereof.

 

1.6                               Reporting
Requirements.

 

(a)                                  With
a view to making available the benefits of certain rules and regulations
of the SEC that may at any time permit the sale of the Common Shares, Warrant
Shares and the Warrants (collectively, the “Securities”)
to the public without registration or pursuant to a registration statement on Form S-3,
the Company agrees to use its best efforts to:

 

(i)                                    make
and keep public information available, as those terms are understood and
defined in Rule 144;

 

(ii)                                file
with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

 

(iii)                            so
long as any of the Purchasers own Registrable Shares, to furnish to such
Purchaser upon request (A) a written statement by the Company as to
whether it is in compliance with the reporting requirements of Rule 144,
the Securities Act and the Exchange Act, or whether it is qualified as a
registrant whose securities may be resold pursuant to SEC Form S-3 and (B) a
copy of the most recent annual or quarterly report of the Company and such
other reports and documents so filed by the Company.

 

1.7                               Blue
Sky.  The Company shall obtain and
maintain all necessary blue sky law permits and qualifications, or secured
exemptions therefrom, required by any state for the offer and sale of
Securities.

 

8

 

ARTICLE 2

 

RESTRICTIONS ON
TRANSFERABILITY OF SECURITIES;

COMPLIANCE WITH SECURITIES ACT

 

2.1                               Restrictions
on Transferability.  The Securities
shall not be transferable in the absence of a registration under the Securities
Act or an exemption therefrom. The Company shall be entitled to give stop
transfer instructions to its transfer agent with respect to the Securities in
order to enforce the foregoing restrictions.

 

2.2                               Transfer
of Securities.

 

(a)                                  Each
Purchaser hereby covenants with the Company not to make any sale of the
Securities except:

 

(i)                                    in
accordance with the Registration Statement, in which case such Purchaser shall
have delivered a current prospectus in connection with such sale or such
Purchaser shall have confirmed that a current prospectus is deemed to be delivered
in connection with such sale in accordance with Rule 172; or

 

(ii)                                in
accordance with Rule 144, in which case Purchaser covenants to comply with
Rule 144; or

 

(iii)                            (A) If
the transferee has agreed in writing to be bound by the terms of this Agreement
and (B) such Purchaser shall have furnished the Company with an opinion of
counsel, reasonably satisfactory to the Company, that such disposition will not
require registration of such shares under the Securities Act.

 

(b)                                  Notwithstanding
the provisions of subsection (a) above, no such restriction shall apply to
a transfer by a Purchaser that is (i) a partnership transferring to its
partners or former partners in accordance with partnership interests, (ii) a
corporation transferring to a wholly-owned subsidiary or a parent corporation
that owns all of the capital stock of the Purchaser, (iii) a limited
liability company transferring to its members or former members in accordance
with their interest in the limited liability company or (iv) an individual
transferring to the Purchaser’s family member or trust for the benefit of an
individual Purchaser and/or the Purchaser’s family member; provided
that in each case the transferee will agree in writing to be subject to the
terms of this Agreement to the same extent as if such transferee were an
original Purchaser hereunder.

 

2.3                               Purchaser
Information.  Each Purchaser
covenants that it will promptly notify the Company of any change in the
information set forth in the Registration Statement regarding such Purchaser or
such Purchaser’s “Plan of Distribution,” to the extent such change is required
to be disclosed under applicable federal securities laws.

 

9

 

ARTICLE 3

 

REPRESENTATIONS,
WARRANTIES AND COVENANTS OF THE PURCHASERS

 

Each Purchaser
hereby severally, and not jointly, represents and warrants to the Company on
and as of the date hereof:

 

3.1                               Dispositions.

 

(a)                                  Purchaser will not, prior to the effectiveness of
the Registration Statement, if then prohibited by law or regulation: (i) sell,
offer to sell, solicit offers to buy, dispose of, loan, pledge or grant any
right with respect to (collectively, a “Disposition”)
the Securities; or (ii) engage in any hedging or other transaction which
is designed or could reasonably be expected to lead to or result in a
Disposition of Securities by such Purchaser or an affiliate.  In addition, Purchaser agrees that for so
long as it owns any Common Shares or Warrant Shares, it will not enter into any
short sale of the Common Stock executed at a time when the Purchaser has no
equivalent offsetting long position in the Common Stock.  For purposes of determining whether the
Purchaser has an equivalent offsetting long position in the Common Stock,
shares of Common Stock that the Purchaser is entitled to receive within 60 days
(whether pursuant to contract or upon conversion or exercise of convertible
securities) will be included as if held long by the Purchaser.

 

(b)                                  Purchaser has not directly or indirectly, nor has
any Person acting on behalf of or pursuant to any understanding with such
Purchaser, engaged in any transactions in the Company’s securities (including,
without limitation, any Short Sales involving the Company’s securities) since
the time that such Purchaser was first contacted by the Company or any
other Person regarding the transactions contemplated hereby.  Such Purchaser covenants that neither it nor
any Person acting on its behalf or pursuant to any understanding with it will
engage in any transactions in the Company’s securities (including, without limitation, any Short Sales involving
the Company’s securities) prior to the time that the transactions
contemplated by the Warrant Exercise Agreements and the Purchase Agreement are
publicly disclosed.

 

For purposes of this Section 3.1(b), (i) “Person” shall include, without
limitation, any individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company or joint
stock company and (ii) “Short Sales”
shall include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act and all types of direct
and indirect stock pledges, forward sale contracts, options, puts, calls, short
sales, swaps and similar arrangements (including on a total return basis), and
sales and other transactions through non-U.S. broker-dealers or foreign
regulated brokers.

 

3.2                               Legend.

 

(a)                                  Purchaser
understands that, until such time as the Registration Statement has been
declared effective or the Securities may be sold pursuant to Rule 144
without any restriction as to the number of securities as of a particular date
that can then be immediately sold,

 

10

 

the Securities may bear a restrictive legend in substantially the
following form (and a stop transfer order may be placed against transfer of the
certificates for the Shares):

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR IN ANY OTHER JURISDICTION.  THE SECURITIES REPRESENTED HEREBY MAY NOT
BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS UNLESS OFFERED,
SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THOSE LAWS.”

 

(b)                                  Each
Purchaser, severally and not jointly with the other Purchasers, agrees that any
removal of the restrictive legend from certificates representing Securities as
set forth in this Section 3.2 is predicated upon the Company’s reliance
that the Purchaser will sell any Securities pursuant to either (i) the
registration requirements of the Securities Act and such Purchaser shall have
delivered a current prospectus in connection with such sale or such Purchaser
shall have confirmed that a current prospectus is deemed to be delivered in
connection with such sale in accordance with Rule 172, or (ii) an
exemption therefrom.

 

3.3                               Delivery
of Registration Statement Questionnaire. 
The Company shall have received from each Purchaser a fully completed
Registration Statement Questionnaire in the form attached hereto as Exhibit A on or  prior to the
date hereof for the Company’s use in preparing the Registration Statement
pursuant to Article 1 above, and the responses provided therein shall be
true and correct as of the date hereof and will be true and correct as of the
effective date of the Registration Statement.

 

ARTICLE
4

MISCELLANEOUS

 

4.1                               Waivers
and Amendments.  The terms of this
Agreement may be waived or amended with the written consent of the Company and
the record holders of a majority in interest of the Registrable Shares and any
such amendment or waiver shall be binding upon the Company and all holders of
Registrable Shares; provided further,
that any amendment pursuant to this Section 4.1 that would adversely
affect the rights of any Purchaser in a manner different than the rights of
other Purchasers shall also require the written consent of such Purchaser.

 

4.2                               Governing
Law.  This Agreement shall be
governed in all respects by and construed in accordance with the laws of the
State of California without any regard to conflicts of laws principles.

 

11

 

4.3                               Survival.
 The representations, warranties,
covenants and agreements made in this Agreement shall survive any investigation
made by the Company or the Purchasers and the date hereof.

 

4.4                               Successors
and Assigns.  The provisions hereof
shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors and administrators of the parties to this Agreement.  Upon a permitted transfer of a Purchaser’s
Securities on the books of the Company in accordance with the terms of Sections
2.2(a)(iii) or 2.2(b), the Purchaser may assign this Agreement to the
permitted transferee upon prior written notice to the Company.  Except as set forth in the previous sentence,
no Purchaser shall assign this Agreement without the prior written consent of
the Company.

 

4.5                               Entire
Agreement.  This Agreement
constitutes the full and entire understanding and agreement between the parties
with regard to the subjects thereof.

 

4.6                               Notices,
etc.  All notices and other
communications required or permitted under this Agreement shall be in writing
and shall be deemed effectively given: (a) upon personal delivery to the
party to be notified, (b) when sent by confirmed telex or facsimile if
sent during normal business hours of the recipient, if not, then on the next
business day, (c) five days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d) one day
after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt.  All communications shall be sent to the
Company or the Purchasers, as the case may be, at their respective addresses
set forth at the beginning of this Agreement or indicated below such Purchaser’s
name on the applicable signature page hereto, as appropriate, or at such
other address as the Company or the Purchasers may designate by 10 days advance
written notice to the other party.

 

4.7                               Severability
of this Agreement.  If any provision
of this Agreement shall be judicially determined to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

4.8                               Counterparts;
Facsimile.  This Agreement may be
executed in any number of counterparts, each of which shall be an original, but
all of which together shall constitute one instrument.  Facsimile signatures shall be treated the
same as original signatures.

 

4.9                               Further
Assurances.  Each party to this
Agreement shall do and perform or cause to be done and performed all such
further acts and things and shall execute and deliver all such other
agreements, certificates, instruments and documents as the other party hereto
may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

12

 

The foregoing agreement is hereby executed as of the
date first above written.

 

	
   

  	
  METABASIS THERAPEUTICS, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul K. Laikind

  
	
   

  	
   

  	
  Paul
  K. Laikind, Ph.D.

  
	
   

  	
   

  	
  President and Chief Executive Officer

  

 

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Hale BioPharma Ventures LLC

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ David F. Hale

  
	
   

  	
   

  	
   

  	
  Name:

  	
   David F. Hale

  
	
   

  	
   

  	
   

  	
  Title:

  	
   Chairman and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  California

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
                                                                                                    

  	
   

  	
  P.O. Box 8925

  
	
                                                                                                    

  	
   

  	
  Rancho Santa Fe, CA 92067

  
	
   

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    DLJ Capital Corporation

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
  /s/ Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Title:

  	
   Attorney in Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Delaware

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                                                    

  	
   

  	
  11 Madison Avenue  

  
	
                                                                                                    

  	
   

  	
  New York, NY 10010

  
	
   

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Sprout Entrepreneurs Fund, LP

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Title:

  	
   Attorney in Fact for GP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Delaware

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                                                

  	
   

  	
  11 Madison Avenue  

  
	
                                                                                                

  	
   

  	
  New York, NY 10010

  
	
                                                                                                

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Sprout Capital IX, LP

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Title:

  	
   Attorney in Fact for GP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Delaware

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                                                

  	
   

  	
  11 Madison Avenue  

  
	
                                                                                                

  	
   

  	
  New York, NY 10010

  
	
                                                                                                

  	
   

  	
                                                                                                

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Sprout IX Plan Investors, LP

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   Craig Slutzkin

  
	
   

  	
   

  	
   

  	
  Title:

  	
   Attorney in Fact for GP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Delaware

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                                                

  	
   

  	
  11 Madison Avenue  

  
	
                                                                                                

  	
   

  	
  New York, NY 10010

  
	
                                                                                                

  	
   

  	
                                                                                                

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Domain Public Equity Partners, L.P. 

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Nicole Vitullo 

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   Nicole Vitullo 

  
	
   

  	
   

  	
   

  	
  Title:

  	
   managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                                                

  	
   

  	
  One Palmer Sq. Suite 515

  
	
                                                                                                

  	
   

  	
  Princeton, NJ 08542

  
	
                                                                                                

  	
   

  	
                                                                                                

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

 

	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
    TRUST, ESTATE OR OTHER ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Federated Kaufmann Fund, a portfolio of 

  
	
   

  	
   

  	
  Federated Equity Funds

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Lawrence Auriana

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   Lawrence Auriana

  
	
   

  	
   

  	
   

  	
  Title:

  	
   Vice President, Federated
  Global

  
	
   

  	
   

  	
  Investment Management,a s attorney-in-fact

  
	
   

  	
   

  	
  for Federated Kaufmann Fund, a portfolio of 

  
	
   

  	
   

  	
  Federated Equity Funds

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                                                

  	
   

  	
  140 East 45th St.

  
	
                                                                                                

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  
	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
  TRUST, ESTATE OR OTHER
  ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    MPM
  BioVentures II, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:  MPM Asset Management II,
  L.P., its 

  
	
   

  	
   

  	
  General Partner  

  
	
   

  	
   

  	
  By: MPM Asset Management II LLC, its 

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Luke Evnin

  
	
   

  	
   

  	
   

  	
  Name:

  	
    Luke Evnin

  
	
   

  	
   

  	
   

  	
  Title:

  	
    Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                  

  	
   

  	
  200 Clarendon Street, 54th Floor  

  
	
                                                                  

  	
   

  	
  Boston, MA 02116

  
	
                                                                  

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  
	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
  TRUST, ESTATE OR OTHER
  ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    MPM
  BioVentures II-QP, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:  MPM Asset Management II, L.P., its 

  
	
   

  	
   

  	
  General Partner  

  
	
   

  	
   

  	
  By:  MPM Asset Management II LLC, its 

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Luke Evnin

  
	
   

  	
   

  	
   

  	
  Name:

  	
    Luke Evnin

  
	
   

  	
   

  	
   

  	
  Title:

  	
    Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                  

  	
   

  	
  200 Clarendon Street, 54th Floor  

  
	
                                                                  

  	
   

  	
  Boston, MA 02116

  
	
                                                                  

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  
	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
  TRUST, ESTATE OR OTHER
  ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    MPM
  BioVentures Gmbh & Co. Parallel-

  
	
   

  	
   

  	
  Beteiligungs KG

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:  MPM Asset Management II, L.P., in its 

  
	
   

  	
   

  	
  as the Special Limited Partner

  
	
   

  	
   

  	
  By:  MPM Asset Management II LLC, its 

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Luke Evnin

  
	
   

  	
   

  	
   

  	
  Name:

  	
    Luke Evnin

  
	
   

  	
   

  	
   

  	
  Title:

  	
    Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                  

  	
   

  	
  200 Clarendon Street, 54th Floor  

  
	
                                                                  

  	
   

  	
  Boston, MA 02116

  
	
                                                                  

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  
	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
  TRUST, ESTATE OR OTHER
  ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    MPM Asset
  Management Investors 2000 B 

  
	
   

  	
   

  	
  LLC

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Luke Evnin

  
	
   

  	
   

  	
   

  	
  Name:

  	
    Luke Evnin

  
	
   

  	
   

  	
   

  	
  Title:

  	
    Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                  

  	
   

  	
  200 Clarendon Street, 54th Floor  

  
	
                                                                  

  	
   

  	
  Boston, MA 02116

  
	
                                                                  

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  
	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
  TRUST, ESTATE OR OTHER
  ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    Red Abbey
  Venture Partners, LP

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ Matt Zuga

  
	
   

  	
   

  	
   

  	
  Name:

  	
    Matt Zuga

  
	
   

  	
   

  	
   

  	
  Title:

  	
    Managing Member of Red Abbey 

  
	
   

  	
   

  	
  Venture Partners, LLC (General 

  
	
   

  	
   

  	
  Partner)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                  

  	
   

  	
  2330 W. Joppa Rd. Suite 330

  
	
                                                                  

  	
   

  	
  Lutherville, MD 21093

  
	
                                                                  

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  
	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
  TRUST, ESTATE OR OTHER
  ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    InterWest
  Partners VII, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ W. Stephen Holmes

  
	
   

  	
   

  	
   

  	
  Name:

  	
    W. Stephen Holmes

  
	
   

  	
   

  	
   

  	
  Title:

  	
    Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    California

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                  

  	
   

  	
  2710 Sand Hill Rd., 2nd Floor

  
	
                                                                  

  	
   

  	
  Menlo Park, CA 94025

  
	
                                                                  

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO REGISTRATION
RIGHTS AGREEMENT]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Agreement or caused its duly authorized officers
to execute this Agreement as of the date first above written.

 

	
   

  	
   

  	
   

  
	
  IF AN INDIVIDUAL:

  	
   

  	
  IF A CORPORATION, PARTNERSHIP,

  
	
   

  	
   

  	
  TRUST, ESTATE OR OTHER
  ENTITY:

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
    InterWest Investors
  VII, L.P.

  
	
   

  	
   

  	
  Print name of entity

  
	
   

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
  By:

  	
    /s/ W. Stephen Holmes

  
	
   

  	
   

  	
   

  	
  Name:

  	
    W. Stephen Holmes

  
	
   

  	
   

  	
   

  	
  Title:

  	
    Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    California

  
	
   

  	
   

  	
  Print jurisdiction of organization of entity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:  

  
	
                                                                  

  	
   

  	
  2710 Sand Hill Rd., 2nd Floor

  
	
                                                                  

  	
   

  	
  Menlo Park, CA 94025

  
	
                                                                  

  	
   

  	
   

  
						

 

[SIGNATURE PAGE TO
REGISTRATION RIGHTS AGREEMENT]

 

 

EXHIBIT A

 

METABASIS THERAPEUTICS, INC.

 

REGISTRATION STATEMENT
QUESTIONNAIRE

 

In connection with the
preparation of the Registration Statement, please provide us with the following
information regarding the Purchaser.

 

A.            GENERAL INFORMATION

 

1.             Please
state your organization’s name exactly as it should appear in the Registration
Statement:

 

2.             Have
you or your organization had any position, office or other material
relationship within the past three years with the Company or its affiliates
other than as disclosed in the Prospectus included in the Registration
Statement?

 

	
   ̈  Yes     ̈  No

  

 

If yes, please indicate the nature of any such
relationships below:

 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

 

B.            SECURITIES HOLDINGS

 

Please fill in all blanks in the following questions
related to your beneficial ownership  of the
Company’s capital stock.  Generally, the
term “beneficial ownership” refers
to any direct or indirect interest in the securities which entitles you to any
of the rights or benefits of ownership, even though you may not be the holder
of record of the securities.  For
example, securities held in “street name” over which you exercise voting or
investment power would be considered beneficially owned
by you.  Other examples of indirect
ownership include ownership by a partnership in which you are a partner or by
an estate or trust of which you or any member of your immediate
family is a beneficiary. 
Ownership of securities held in the names of your spouse, minor children
or other relatives who live in the same household may be attributed to you.

 

PLEASE NOTE: IF YOU HAVE ANY
REASON TO BELIEVE THAT ANY INTEREST IN SECURITIES OF THE COMPANY WHICH YOU MAY HAVE,
HOWEVER REMOTE, IS A BENEFICIAL INTEREST, PLEASE DESCRIBE SUCH INTEREST.  FOR PURPOSES OF RESPONDING TO THIS
QUESTIONNAIRE, IT IS PREFERABLE TO ERR ON THE SIDE OF INCLUSION RATHER THAN
EXCLUSION.  WHERE THE SEC’S
INTERPRETATION OF  BENEFICIAL OWNERSHIP
WOULD REQUIRE DISCLOSURE OF YOUR INTEREST OR POSSIBLE INTEREST IN CERTAIN
SECURITIES OF THE COMPANY, AND YOU BELIEVE THAT YOU DO NOT ACTUALLY POSSESS THE
ATTRIBUTES OF BENEFICIAL OWNERSHIP, AN APPROPRIATE RESPONSE IS TO DISCLOSE THE
INTEREST AND AT THE SAME TIME DISCLAIM BENEFICIAL OWNERSHIP OF THE SECURITIES.

 

A-1

 

1.             As
of APRIL 11, 2008, I owned outright
(including shares registered in my name individually or jointly with others,
shares held in the name of a bank, broker, nominee, depository or in “street
name” for my account), the following number of shares of the Company’s capital
stock: 
                                  .

 

2.             In
addition to the number of shares I own outright as indicated by my answer to
question B(1), as of APRIL 11, 2008,
I had or shared voting power or investment power, directly or indirectly,
through a contract, arrangement, understanding, relationship or otherwise, over
the following number of shares of the Company’s capital stock: 
                                  .

 

If the answer to this question B(2) was not “zero,”
please complete the following:  with whom
shared; and the nature of the relationship and any underlying voting trust
agreement, investment arrangement or the like:

 

SHARED VOTING POWER:

 

	
  Number of Shares

  	
   

  	
  With Whom Shared

  	
   

  	
  Nature of Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

SHARED INVESTMENT POWER:

 

	
  Number of Shares

  	
   

  	
  With Whom Shared

  	
   

  	
  Nature of Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-2

 

As of JUNE 10, 2008,
I will have the right to acquire
                
shares of the Company’s capital stock pursuant to outstanding stock options
issued under the Company’s stock option plans and
             shares
pursuant to the exercise of outstanding warrants (none, indicated by “0”
above).

 

	
  Options and Warrants

  
	
  Class

  	
   

  	
  Number of Shares

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

(4)           Please identify the natural person or persons who have
voting and/or investment control over the Company’s securities that you own,
and state whether such person(s) disclaims beneficial ownership of the
securities.  For example, if you are a
general partnership, please identify the general partners in the partnership.

 

                                                                                                                                                                                                       

A-3

 

C.                                    FINRA QUESTIONS

 

1.             Are you (i) a “member”(1) of the Financial
Industry Regulatory Authority  (the “FINRA”),
(ii) an “affiliate”(2) of a member of the FINRA, (iii) a “person
associated with a member” or an “associated person of a member”(3) of the
FINRA or (iv) an immediate family member(4) of any of the foregoing
persons?  If yes,
please identify the member and describe such relationship (whether direct or
indirect), and please respond to Question Number 2 below; if no,
please proceed directly to Question Number 3.

 

	
  Yes   ̈    No   ̈

  

 

Description:

 

 

(1)           FINRA
defines a “member” as any broker or dealer admitted to membership in the FINRA,
or any officer or partner or branch manager of such a member, or any person
occupying a similar status or performing a similar function for such a member.

 

(2)           The term “affiliate”
means a person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is in common control with, the person
specified.  Persons who have acted or are
acting on behalf of or for the benefit of a person include, but are not
necessarily limited to, directors, officers, employees, agents, consultants and
sales representatives.  The following
should apply for purposes of the foregoing:

 

(i)            a
person should be presumed to control a Member if the person beneficially owns
10 percent or more the outstanding voting securities of a Member which is a
corporation, or beneficially owns a partnership interest in 10 percent or more
of the distributable profits or losses of a Member which is a partnership;

 

(ii)           a
Member should be presumed to control a person if the Member and Persons
Associated With a Member beneficially own 10 percent or more of the outstanding
voting securities of a person which is a corporation, or beneficially own a
partnership interest in 10 percent or more of the distributable profits or
losses of a person which is a partnership;

 

(iii)          a person should be presumed to be under
common control with a Member if:

 

(1)           the same person
controls both the Member and another person by beneficially owning 10 percent
or more of the outstanding voting securities of a Member or person which is a
corporation, or by beneficially owning a partnership interest in 10 percent or
more of the distributable profits or losses of a Member or person which is a
partnership; or

 

(2)           a person having the
power to direct or cause the direction of the management or policies of the
Member or such person also has the power to direct or cause the direction of
the management or policies of the other entity in question.

 

(3)           The FINRA
defines a “person associated with a member” or 
an “associated person of a member” as being every sole proprietor,
partner, equity owner, officer, director or branch manager of any member, or
any natural person occupying a similar status or performing similar functions,
or any natural person engaged in the investment banking or securities business
who directly or indirectly controls or is controlled by such member (for
example, any employee), whether or not any such person is registered or exempt
from registration with the FINRA.

 

(4)           Immediate
family includes parents, mother-in-law, father-in-law, husband or wife, brother
or sister, brother-in-law or sister-in-law, son-in-law or daughter-in-law, and
children, or any other person who is supported, directly or indirectly, to a
material extent, by a person associated with a member of the FINRA or any other
broker/dealer.

 

A-4

 

2.             If you answered “yes” to Question
Number 1, please furnish any information as to whether any such member intends
to participate in any capacity in the public offering, including the details of
such participation:

 

Description:

 

 

3.             Are you or have you been an “underwriter or related
person”(5) or a person associated with an underwriter or related person,
including, without limitation, with respect to the proposed public
offering?  If yes, please identify the
underwriter or related person and describe such relationship (whether direct or
indirect).

 

	
  Yes   ̈    No   ̈

  

 

Description:

 

 

4.             If known, please describe in detail any underwriting
compensations, arrangements or dealings entered into during the previous twelve
months, or proposed to be consummated in the next twelve months, between (i) any
underwriter or related person, member of the FINRA, affiliate of a member of
the FINRA, person associated with a member or associated person of a member of
the FINRA or any immediate family member thereof, on the one hand, and (ii) the
Company, or any director, officer or stockholder thereof, on the other hand,
which provides for the receipt of any item of value and/or the transfer of any
warrants, options or other securities from the Company to any such person
(other than the information relating to the arrangements with any investment
firm or underwriting organization which may participate in the proposed public
offering).

 

Description:

 

 

5.             Have you purchased the securities in the ordinary course
of business?

 

	
  Yes   ̈    No   ̈

  

 

(5)   The term
“underwriter or related person” includes underwriters, underwriters’ counsel,
financial consultants and advisors, finders, members of the selling or
distribution group, and any and all other persons associated with or related to
any of such persons, including members of the immediate family of such persons.

 

A-5

 

The answers to the foregoing questions are correctly
stated to the best of my information and belief.  I shall advise Charles J. Bair at
858.550.6142, the Company’s outside counsel, promptly of any changes in the
foregoing information prior to the effectiveness of the Registration Statement.

 

 

	
   

  	
   

  
	
   

  	
  (Print name of
  Selling Security Holder)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  (Name and title
  of signatory, if stockholder is an entity)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Date)

  

 

A-6

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