Document:

Warrant

 Exhibit 4.9 
  

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AN EXEMPTION FROM SUCH REGISTRATION, OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED. 
  
 Issue Date: March 25, 2008 
  
 AKESIS
PHARMACEUTICALS, INC. 
  
 WARRANT TO PURCHASE COMMON STOCK

  
 This Warrant to Purchase Common Stock (the
“Warrant”) is issued to Avalon Ventures VII, L.P. (the “Holder”) by Akesis Pharmaceuticals, Inc., a Nevada corporation (the “Company”), pursuant to the terms of that certain
Securities Purchase Agreement (the “Purchase Agreement”) dated as of March 25, 2008 by and among the Company and the Holder. 
  
 1. Purchase of Shares. Subject to the terms and conditions hereinafter set forth and set forth in the Purchase Agreement, the Holder of this
Warrant is entitled during the Exercise Period, upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the Holder hereof in writing), to purchase, in whole or in part, from the
Company 352,941 fully paid and nonassessable Shares, at an exercise price per share equal to the Exercise Price (as defined below). 
  
 2. Definitions. 
  
 (a) “Act” shall mean the Securities Act of 1933, as amended. 
  
 (b) “Exercise Price” shall mean
$0.85. 
  
 (c) “Exercise
Period” shall mean the term commencing on the date of issuance of this Warrant and ending on the expiration of this Warrant pursuant to Section 12 hereof. 
  
 (d) “Shares” shall mean shares of the Company’s Common Stock. 
  
 (e) “Change of Control” shall mean
(i) a sale, lease or disposition of all or substantially all of the assets of the Company, or (ii) a merger or consolidation (in a single transaction or a series of related transactions) of the Company with or into any other corporation or
corporations or other entity, or any other corporate reorganization, where the stockholders of the Company immediately prior to such event do not retain more than fifty percent (50%) of the voting power of and interest in the successor entity
(excluding any transactions if the primary purpose of the transaction is to obtain financing from new or existing investors). 

 3. Method of Exercise. While this Warrant remains outstanding and exercisable in accordance with
Section 1 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by: 
  
 (a) the surrender of the Warrant, together with a notice of exercise to the Secretary of the Company at its principal offices; and

  
 (b) the payment to the Company of an amount
equal to the aggregate Exercise Price for the number of Shares being purchased. 
  
 4. Net Exercise. In lieu of cash exercising this Warrant, the Holder of this Warrant may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this
Warrant at the principal office of the Company together with notice of such election, in which event the Company shall issue to the Holder hereof a number of Shares computed using the following formula: 
  

					
	X =	  	 Y (A - B)

	  	 
	  	        A	  	 

  
 Where 
  
 X — The number of Shares to be issued to the Holder of this Warrant.

  
 Y — The number of Shares purchasable under this Warrant.

  
 A — The fair market value of one Share. 
  
 B — The Exercise Price (as adjusted to the date of such calculations).

  
 For purposes of this Section 4, the fair market value of
a Share shall mean the average of the closing bid and asked prices of Shares quoted in the over-the-counter market in which the Shares are traded or the closing price quoted on any exchange on which the Shares are listed, whichever is applicable, as
published in the Western Edition of The Wall Street Journal for the five (5) trading days prior to the date of determination of fair market value (or such shorter period of time during which such stock was traded over-the-counter or on
such exchange). If the Shares are not traded on the over-the-counter market or on an exchange, the fair market value shall be the price per Share that the Company could obtain from a willing buyer for Shares sold by the Company from authorized but
unissued Shares, as such prices shall be determined in good faith by the Company’s Board of Directors. 
  
 5. Certificates for Shares. Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates for the number of Shares
so purchased shall be issued as soon as practicable thereafter, and in any event within thirty (30) days of the delivery of the subscription notice. 
  
 6. Issuance of Shares. The Company covenants that the Shares, when issued pursuant to the exercise of this Warrant, will be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens, and charges with respect to the issuance thereof. 

 7. Adjustment of Exercise Price and Number of Shares. The number of and kind of securities
purchasable upon exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows: 
  
 (a) Subdivisions, Combinations and Other Issuances. If the Company shall at any time prior to the expiration of this Warrant
subdivide the Shares, by split-up or otherwise, or combine its Shares, or issue additional shares of its Shares as a dividend, the number of Shares issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of
a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the purchase price payable per share, but the aggregate purchase price payable for the total number of Shares
purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 7(a) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of
such dividend, or in the event that no record date is fixed, upon the making of such dividend. 
  
 (b) Reclassification, Reorganization and Consolidation. In case of any reclassification, capital reorganization, or change in the
capital stock of the Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section 7(a) above), then the Company shall make appropriate provision so that the Holder of this Warrant shall have the right
at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable in connection with such
reclassification, reorganization, or change by a Holder of the same number of Shares as were purchasable by the Holder of this Warrant immediately prior to such reclassification, reorganization, or change. In any such case appropriate provisions
shall be made with respect to the rights and interest of the Holder of this Warrant so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise hereof,
and appropriate adjustments shall be made to the purchase price per share payable hereunder, provided the aggregate purchase price shall remain the same. 
  
 (c) Notice of Adjustment. When any adjustment is required to be made in the number or kind of shares purchasable upon exercise of
the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the number of Shares or other securities or property thereafter purchasable upon exercise of this Warrant. 
  
 8. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this Warrant, but in lieu of such fractional shares the Company shall make a cash payment therefor on the basis of the Exercise Price then in effect. 
  
 9. Representations of the Company and the Holder. The Company
represents that all corporate actions on the part of the Company, its officers, directors and stockholders necessary for the sale and issuance of this Warrant have been taken. The Holder represents and acknowledges that the Warrant may be
transferred in accordance with transfer restrictions set forth in the Purchase Agreement. 

 10. Restrictive Legend. The Shares (unless registered under the Act) shall be stamped or imprinted
with a legend in substantially the following form (in addition to any other applicable legends as set forth in the Purchase Agreement): 
  
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SHARES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE
OFFICES OF THE COMPANY. 
  
 11. Rights of Stockholders. No
holder of this Warrant shall be entitled, as a Warrant holder, to vote or receive dividends or be deemed the holder of the Shares or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor
shall anything contained herein be construed to confer upon the Holder of this Warrant, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value, consolidation, merger, conveyance, or otherwise) or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise until the Warrant shall have been exercised and the Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein. 
  
 12. Expiration of Warrant; Notice of Certain Events Terminating This
Warrant. 
  
 (a) This Warrant shall expire
and shall no longer be exercisable upon the earliest to occur of: 
  
 (i) 5:00 p.m., California local time, on the date of the third anniversary of the Closing (as defined in the Purchase Agreement); or 
  

 (ii) Any Change of Control. 
  
 (b) The Company shall provide at least ten (10) days prior written notice of any event set forth in Section 12(a)(ii).

  
 13. Notices. All notices and other communications
required or permitted hereunder shall be made pursuant to the notice provisions of the Purchase Agreement. 
  
 14. Governing Law. This Warrant and all actions arising out of or in connection with this Agreement shall be governed by and construed in
accordance with the laws of the State of California, without regard to the conflicts of law provisions of the State of California or of any other state. 

 15. Rights and Obligations Survive Exercise of Warrant. Unless otherwise provided herein, the
rights and obligations of the Company, of the Holder of this Warrant and of the holder of the Shares issued upon exercise of this Warrant, shall survive the exercise of this Warrant. 
  
 16. Transfer of Warrant. Subject to applicable laws, this Warrant and all rights hereunder are transferable, by the
Holder in person or by duly authorized attorney, upon delivery of this Warrant, to any transferee designated by Holder. The transferee shall sign an investment letter in form and substance satisfactory to the Company. 
  
 17. Modifications and Waiver. This Warrant and any provision hereof
may be changed, waived, discharged or terminated only by an instrument in writing signed by the Company and the Holder. 
  
 [Remainder of page intentionally left blank.] 

 This Warrant to Purchase Common Stock is issued as of the date first set forth above. 
  

			
	AKESIS PHARMACEUTICALS, INC.
		
	 By:
	 	/s/ Jay Lichter
	 	 	 Jay Lichter
 President and Chief Executive Officer

 EXHIBIT A 
  

 NOTICE OF EXERCISE 
  

	TO:	Akesis Pharmaceuticals, Inc. 

 Attention: President

  
 1. The undersigned hereby elects to purchase
                 Shares of Common Stock of Akesis Pharmaceuticals, Inc. pursuant to the terms of the attached Warrant. 
  
 2. Method of Exercise (Please initial the applicable blank): 
  

	 	•	 	 The undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders herewith payment in full for the purchase price of the shares being
purchased, together with all applicable transfer taxes, if any. 

  

	 	•	 	 The undersigned elects to exercise the attached Warrant by means of the net exercise provisions of Section 4 of the Warrant. 

  
 3. Please issue a certificate or certificates representing said Shares in the
name of the undersigned or in such other name as is specified below: 
  

 (Name) 

  

 (Address) 
  
 4. The undersigned hereby represents and warrants that the aforesaid Shares are being acquired for the account of the undersigned for investment and not
with a view to, or for resale, in connection with the distribution thereof, and that the undersigned has no present intention of distributing or reselling such shares and all representations and warranties of the undersigned set forth in
Section 4 of the Purchase Agreement (as defined in the Warrant) are true and correct as of the date hereof. 
  

					
			
	  	 	 	 	  
	  	 	 	 	(Signature)
	  	 	 	 	(Name)
	(Date)	 	 	 	(Title)Securities Purchase Agreement

 Exhibit 10.15 
  
 AKESIS PHARMACEUTICALS, INC. 
  

SECURITIES PURCHASE AGREEMENT 
  
 This Securities Purchase Agreement (the “Agreement”) is made as of March 25, 2008 by and among Akesis Pharmaceuticals, Inc.,
a Nevada corporation (the “Company”), and Avalon Ventures VII, L.P. (the “Investor”). 
  
 In consideration of the mutual covenants and representations set forth below, the parties hereto agree as follows: 
  
 1. Authorization; Purchase and Sale of Common Stock and Warrant;
Closing.
  
 (a) Authorization. The
Company will authorize the sale and issuance of 2,352,942 shares of the Company’s Common Stock (the “Shares”) at a purchase price per share equal to $0.85, and the issuance of a warrant (the
“Warrant”) to purchase up to 352,941 shares of the Company’s Common Stock. The Warrant shall be in substantially the form attached hereto as Exhibit A, and shall be exercisable for shares of Common Stock at an
exercise price per share of $0.85. The shares of the Company’s Common Stock issuable upon exercise of the Warrant are hereinafter referred to as the “Warrant Shares”. 
  
 (b) Purchase and Sale of Shares; Issuance of Warrant.

  
 (i) At the Closing (as defined in
Section 1(c)), the Company agrees to issue and sell to the Investor, and, subject to all of the terms and conditions hereof, the Investor agrees to purchase the Shares for an aggregate purchase price of $2,000,000.70 (the “Purchase
Price”). 
  
 (ii) At the Closing,
the Company will issue to the Investor the Warrant. 
  
 (c) Closing; Delivery. The sale and purchase of the Shares and the issuance of the Warrant shall take place at the offices of Paul, Hastings, Janofsky & Walker LLP, located at 3579 Valley Centre Drive, San Diego, California,
92130, at 3:00 PM California time, on the date of this Agreement, or at such other time and place as the Company and the Investor mutually agree upon orally or in writing (which time and place are designated as the
“Closing”). At the Closing, the Company will deliver to the Investor the respective Shares and the Warrant, against receipt by the Company of the Purchase Price by check or wire transfer, or any combination thereof.

  
 2. Representations and Warranties of the Company.
Except as set forth (a) on the Schedule of Exceptions attached hereto as Exhibit B or (b) in the Annual Report on Form 10-K, Quarterly Reports on Form 10-QSB, Current Reports on Form 8-K and Proxy Statements of the Company,
each as amended and supplemented through the date hereof, filed by the Company with the Securities and Exchange Commission (the “SEC”) since November 1, 2006 (the “SEC Documents”), the Company
hereby represents and warrants to the Investor as of the date of the Closing as follows: 
  
 (a) Organization; Good Standing; Qualification. The Company is a corporation duly organized and validly existing and in good
standing under the laws of the State of Nevada. The Company is duly qualified and is authorized to transact business and is in good standing as a foreign corporation in each jurisdiction in which the failure to so qualify would have a material
adverse effect on the Company’s business, properties or financial condition. 

 (b) Subsidiaries. The Company has no subsidiaries and does not own or
control, directly or indirectly, any interest in any other corporation, partnership, limited liability company, trust, joint venture, association, or other entity. The Company is not a participant in any joint venture, partnership, or similar
arrangement. 
  
 (c)
Corporate Power. The Company has all requisite corporate power and authority (i) to own and operate its properties and assets and to carry on its business as presently conducted, (ii) to execute and deliver this Agreement,
(iii) to sell and issue the Shares and the Warrant and (iv) to carry out and perform the provisions of this Agreement and the Warrant. 
  
 (d) Authorization. All corporate action on the part of the Company, its officers, and directors necessary for the
authorization, execution and delivery of this Agreement, the performance of all obligations of the Company hereunder, and the issuance, sale and delivery of the Shares and the Warrant has been taken or will be taken prior to the Closing. This
Agreement and the Warrant, when executed and delivered by the Company, will constitute valid and binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies. 
  
 (e) Capitalization and
Voting Rights.
  
 (i) Authorized
Stock. The authorized capital of the Company consists, or will consist immediately prior to the Closing, of (i) 50,000,000 shares of Common Stock, par value $0.001 per share (“Common Stock”), 22,580,884 of which
shares are issued and outstanding, and (ii) 10,000,000 shares of Preferred Stock, par value $0.001 per share, none of which shares are issued and outstanding. 
  
 (ii) Other than (1) the Shares and Warrant issued pursuant to this Agreement, (2) options and
rights to purchase shares of the Company’s Common Stock pursuant to the Company’s 2005 Stock Plan, (3) options to purchase shares pursuant to Stand-Alone Stock Option Agreements between the Company and each of John T. Hendrick, Carl
LeBel, Jay Lichter and Kevin Sayer, (4) warrants to purchase shares issued pursuant to the Common Stock and Warrant Purchase Agreement dated December 30, 2005, (5) warrants to purchase shares issued pursuant to the Finder Agreements,
dated January 5, 2006, between the Company and VRIM, Inc., (6) warrants to purchase shares issued pursuant to the Finder Agreement, dated January 5, 2006, between the Company and Phil McConkey, (7) warrants to purchase shares
issued to former employees of the Company, (8) warrants to purchase shares issued pursuant to the Common Stock and Warrant Purchase Agreement dated March 31, 2006, (9) warrants to purchase shares issued pursuant to the Securities
Purchase Agreement dated November 21, 2006, 

 
(10) warrants to purchase shares issued pursuant to the Securities Purchase Agreement dated December 15, 2006, and (11) a warrant to purchase
shares issued pursuant to the Loan and Security Agreement, dated December 15, 2006, between the Company and Square 1 Bank, there are no outstanding options, warrants, rights (including conversion or preemptive rights) or agreements for the
purchase or acquisition from the Company of any of its securities. The Company is not a party or subject to any agreement or understanding, and, to the Company’s knowledge, there is no agreement or understanding between any persons that affects
or relates to the voting or giving of written consents with respect to any security or the voting by a director of the Company. 
  
 (f) Valid Issuance of Securities. The Shares and Warrant, each when issued and paid for as provided in this Agreement, will be
duly authorized and validly issued, fully paid, and nonassessable. The Shares and Warrant Shares have been or will be, as applicable, duly and validly reserved for issuance and upon issuance in accordance with this Agreement and Warrant, as
applicable, will be duly authorized and validly issued, fully paid, and nonassessable, and will be free of any liens, encumbrances, or restrictions on transfer (other than those created by applicable state and/or federal securities laws).

  
 (g) Offering. Subject in part to
the truth and accuracy of the Investor’s representations set forth in Section 3 of this Agreement, the offer, sale and issuance of the Shares and the Warrant as contemplated by this Agreement are exempt from the registration requirements
of Section 5 of the Securities Act of 1933, as amended (the “Securities Act”), and neither the Company nor any authorized agent acting on its behalf will take any action hereafter that would cause the loss of such
exemption. 
  
 (h) Compliance with Other
Instruments. The Company is not in violation or default of any provision of its charter or bylaws (both as amended to date) or of any provision of any mortgage, indenture, agreement, instrument or contract to which it is a party or by which
it is bound or, to its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company. The execution, delivery and performance by the Company of this Agreement and the consummation of the
transactions contemplated hereby, will not result in any such violation or be in conflict with or constitute, with or without the passage of time or giving of notice, either a default under any such provision or an event that results in the creation
of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations or
any of its assets or properties. 
  
 (i)
Intellectual Property.
  
 (i) To the
knowledge of the Company, the Company owns or possesses sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses (software or otherwise), information, processes and similar proprietary
rights (“Intellectual Property”) necessary to the business of the Company as presently conducted, the lack of which could reasonably be expected to have a material adverse effect on the Company’s financial condition or
business as now conducted (a “Material Adverse Effect”). Except as disclosed in the SEC Documents, there are no outstanding options, licenses or agreements relating to the Intellectual Property, and the 

 
Company is not bound by or a party to any options, licenses or agreements with respect to the Intellectual Property of any other person or entity. The
Company has not received any written communication alleging that the Company has violated any of the Intellectual Property of any other person or entity, nor is the Company aware of any basis therefor. The Company is not obligated to make any
payments by way of royalties, fees or otherwise to any owner or licensor of or claimant to any Intellectual Property with respect to the use thereof in connection with the conduct of its business as presently conducted. 
  
 (ii) The Company is not aware that any of its employees is
obligated under any contract or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would materially interfere with the use of his or her efforts to promote the interests of the Company or that
would conflict with the Company’s business as presently conducted. Neither the execution nor delivery of this Agreement, nor the carrying on of the Company’s business by the employees of the Company, nor the conduct of the Company’s
business as presently conducted, will, to the Company’s knowledge, conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant or instrument under which any of such
employees is now obligated. The Company does not believe it is or will be necessary to use any inventions of any of its employees made prior to their employment by the Company. 
  
 (j) Proprietary Information and Invention Assignment. Each employee of the Company has executed a
confidential information and invention assignment agreement. 
  
 (k) Title to Properties and Assets; Liens. The Company has good and marketable title to its properties and assets, and has good title to all its leasehold interests, in each case subject to no material
mortgage, pledge, lien, lease, encumbrance or charge, other than (i) liens for current taxes not yet due and payable, (ii) liens imposed by law and incurred in the ordinary course of business for obligations not past due, (iii) liens
in respect of pledges or deposits under workers’ compensation laws or similar legislation, and (iv) liens, encumbrances and defects in title which do not in any case materially detract from the value of the property subject thereto or have
a Material Adverse Effect, and which have not arisen otherwise than in the ordinary course of business. With respect to the property and assets it leases, the Company is in compliance with such leases in all material respects and, to its knowledge,
holds a valid leasehold interest free of any liens, claims or encumbrances, subject to clauses (i)-(iv) above. 
  
 (l) Litigation. There is no action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently
threatened against the Company that might result, either individually or in the aggregate, in any material adverse change in the Company’s business, properties or financial condition, or in any material change in the current equity ownership of
the Company, nor, to the Company’s knowledge is there any reasonable basis therefor. The foregoing includes, without limitation, any action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently threatened
involving the prior employment of any of the Company’s employees, their use in connection with the Company’s business of any information or techniques allegedly proprietary to any of their former employers or their obligations under any
agreement with their former employers. The Company is not a party to or, to its knowledge, named in or subject to any order, writ, injunction, judgment or decree of any court, government agency or instrumentality. There is no action, suit,
proceeding or investigation by the Company currently pending or that the Company currently intends to initiate. 

 (m) SEC Documents; Financial Statements. Since January 1, 2007, the Company
has filed all reports required to be filed by it with the SEC under the Securities Exchange Act of 1934 (the “Exchange Act”). The Company has made available to the Investor and its representatives through the SEC’s
website at http://www.sec.gov, true and complete copies of the SEC Documents. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the Exchange Act or the Securities Act, as the case may be, and
the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company disclosed in the
SEC Documents and the related notes (the “Financial Statements”) complied as to form in all material respects with applicable accounting requirements and 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, during the periods involved (except (i) as may be otherwise indicated in such Financial Statements, or (ii) in
the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and, fairly present in all material respects the financial position of the Company as of the dates thereof and the results
of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). All material agreements that were required to be filed as exhibits to the SEC Documents under
Item 601 of Regulation S-K (collectively, the “Material Agreements”) to which the Company or any Subsidiary of the Company is a party, or the property or assets of the Company or any Subsidiary of the Company are
subject, have been filed as exhibits to the SEC Documents. All Material Agreements are valid and enforceable against the Company in accordance with their respective terms, except (i) as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, or moratorium or similar laws affecting creditors’ and contracting parties’ rights generally, and (ii) as enforceability may be subject to general principles of equity and except as rights to indemnity and
contribution may be limited by state or federal securities laws or public policy underlying such laws. The Company is not in breach of or default under any of the Material Agreements, and to the Company’s knowledge, no other party to a Material
Agreement is in breach of or default under such Material Agreement, except in each case, for such breaches or defaults as would not reasonably be expected to have a Material Adverse Effect. The Company has not received a notice of termination nor is
the Company otherwise aware of any threats to terminate any of the Material Agreements. 
  
 (n) Obligations to Related Parties. To the Company’s knowledge, no employee, officer or director of the Company has any direct
or indirect ownership interest in any firm or corporation with which the Company is affiliated or with which the Company has a business relationship. To the Company’s knowledge, no employee, officer or director, nor any member of their
immediate families, is, directly or indirectly, interested in any material contract with the Company (other than such contracts as relate to any such person’s ownership of capital stock or other securities of the Company). 

 (o) Environmental and Safety Laws. To its knowledge, the Company is not in
violation of any applicable statute, law, or regulation relating to the environment or occupational health and safety, and to its knowledge, no material expenditures are or will be required in order to comply with any such existing statute, law, or
regulation. 
  
 (p) Brokers or
Finders. The Company has not incurred, and will not incur, directly or indirectly, as a result of any action taken by the Company, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in
connection with this Agreement or any of the transactions contemplated hereby. 
  
 (q) Disclosure Controls and Procedures. 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, including any consolidated subsidiaries, is made
known to its chief executive officer and chief financial officer by others within those entities. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of the end of the period
covered by the 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 disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes in the
Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Exchange Act) or, to the Company’s knowledge, in other factors that could significantly affect the Company’s internal controls.

  
 (r) Accounting Controls. Except
as disclosed in the SEC Documents, the Company maintains a system of accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorization,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles as applied in the United States and to maintain accountability for assets, (iii) access
to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with
respect to any differences. 
  
 (s) No
Material Adverse Change. Since December 31, 2006, except as described or referred to in the SEC Documents and except for cash expenditures in the ordinary course of business, there has not been any change in the assets, business,
properties, financial condition or results of operations of the Company that would reasonably be expected to have a Material Adverse Effect. Since December 31, 2006, (i) there has not been any dividend or distribution of any kind declared,
set aside for payment, paid or made by the Company on any class of capital stock, (ii) the Company has not sustained any material loss or interference with the Company’s business from fire, explosion, flood or other calamity, whether or
not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, and (iii) the Company has not incurred any liabilities except in the ordinary
course of business. 

 3. Representations, Warranties and Covenants of the Investor . The Investor hereby represents,
warrants and covenants to the Company, as of the date of the Closing as follows: 
  
 (a) Power; Authorization. The Investor has all requisite power and authority to execute and deliver this Agreement. This Agreement,
when executed and delivered by the Investor, will constitute valid and legally binding obligations of the Investor, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 
  
 (b) Purchase Entirely for Own Account. This Agreement
is made with the Investor in reliance upon the Investor’s representation to the Company, which by the Investor’s execution of this Agreement the Investor hereby confirms, that the Investor’s Shares, the Warrant and the Warrant Shares
(collectively, the “Securities”) will be acquired for investment for the Investor’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Investor has
no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Investor further represents that the Investor does not have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participations to such person or to any third person with respect to any of the Securities. 
  
 (c) Reliance upon Investor’s Representations. The Investor understands that the Securities are not registered under the
Securities Act on the ground that the sale provided for in this Agreement and the issuance of the Shares and Warrant hereunder is exempt from registration under the Securities Act pursuant to Section 4(2) thereof, and that the Company’s
reliance on such exemption is predicated on the Investor’s representations set forth herein. 
  
 (d) Disclosure of Information. The Investor has had an opportunity to ask questions and receive answers from the Company
regarding the terms and conditions of the offering of the Securities and the Company’s business, properties, prospects and financial condition and to obtain additional information (to the extent the Company possessed such information or could
acquire it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to the Investor or to which the Investor had access. The foregoing, however, does not limit or modify the representations and warranties
of the Company in Section 2 of this Agreement or the right of the Investor to rely thereon. 
  
 (e) Investment Experience; Economic Risk. The Investor understands that the Company has a limited financial and operating
history and that an investment in the Company involves substantial risks. The Investor is experienced in evaluating and investing in private placement transactions of securities of companies in a similar stage of development to that of the Company
and acknowledges that the Investor is able to fend for himself, herself or itself. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of the investment in
the Securities. The Investor can bear the economic risk of the Investor’s investment and is able, without impairing the Investor’s financial condition, to hold the Securities for an indefinite period of time and to suffer a complete loss
of the Investor’s investment. 

 (f) Accredited Investor Status. The Investor represents to the Company that the
Investor is an “accredited investor” within the meaning of Regulation D, Rule 501, as presently in effect, promulgated by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such
further assurances of such status as may be reasonably requested by the Company. 
  
 (g) Residency. The Investor’s principal place of business is correctly set forth on the signature page hereto. 
  
 (h) Restricted Securities. The Investor understands
that the Securities are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such federal securities
laws and applicable regulations such Securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, the Investor represents that it is aware of the provisions of Rule 144 promulgated
under the Securities Act which permit limited resale of securities purchased in a private placement subject to the satisfaction of certain conditions, including, among other things, the existence of a public market for the securities, the
availability of certain current public information about the Company, the resale occurring not less than one year after a party has purchased and paid for the security to be sold, the sale being effected through a “broker’s
transaction” or in transactions directly with a “market maker” and the number of shares being sold during any three-month period not exceeding specified limitations. 
  
 (i) Brokers or Finders. The Company has not, and will not, incur, directly or indirectly, as a result
of any action taken by the Investor, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement. 
  
 (j) Tax Liability. The Investor has reviewed with its own tax advisors the federal, state, local and
foreign tax consequences of this investment and the transactions contemplated by this Agreement. The Investor relies solely on such advisors and not on any statements or representations of the Company, the Company’s counsel, or any of the
Company’s agents. The Investor understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. 
  
 (k) Further Limitations on Disposition. Without in
any way limiting the representations set forth above, the Investor further agrees not to make any disposition of all or any portion of the Securities unless and until (X) there is then in effect a registration statement under the Securities Act
covering such proposed disposition and such disposition is made in accordance with such registration statement or (Y) the Investor shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, the Investor shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition
will be exempt from registration under the Securities Act. Notwithstanding the foregoing, no such registration statement or opinion of counsel shall be necessary for a transfer by the Investor (i) to a fund, partnership, limited liability
company or other entity that is affiliated with such transferring Investor, (ii) to a partner or 

 
member (or retired partner or member) of such transferring Investor, or to the estate of any such partner or member (or retired partner or member),
(iii) to such transferring Investor’s spouse, siblings, lineal descendants or ancestors by gift, will or intestate succession or (iv) in compliance with Rule 144(k) (or any successor provision) of the Securities Act so long as the
Company is furnished with satisfactory evidence of compliance with such rule; provided, however, that, in the case of (i), (ii) or (iii), the transferee agrees in writing to be subject to the terms hereof to the same extent as if he or
she were an original Investor hereunder. 
  
 (l)
Legends. The Investor understands and agrees that the certificates evidencing the Securities shall bear the following legend (in addition to any legend required under applicable state securities laws): 
  
 “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, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR
UNLESS THE CORPORATION HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.” 
  
 4. Conditions to Closings.
  

(a) Conditions to Closing of the Investor. The obligations of the Investor under Section 1 of this Agreement are subject to
the fulfillment on or before the Closing of each of the following conditions by the Company: 
  
 (i) Representations and Warranties Correct. The representations and warranties made by the Company in Section 2
shall be true and correct in all material respects as of the Closing, with the same effect as if made on and as of the Closing. 
  
 (ii) Covenants. All covenants, agreements and conditions contained in this Agreement to be performed by the Company on or prior to
the Closing shall have been performed or complied with in all material respects. 
  
 (iii) Blue Sky. The Company shall have obtained all necessary Blue Sky law permits and qualifications, or have the availability of
exemptions therefrom, required by any state for the offer, sale and issuance of the Shares and the Warrant. 
  
 (b) Conditions to Closings of the Company. The obligations of the Company to the Investor under this Agreement are subject to
fulfillment on or before the Closing of each of the following conditions by the Investor: 
  
 (i) Representations. The representations and warranties made by the Investor in Section 3 shall be true and correct as of such
Closing, with the same effect as if made on and as of such Closing. 

 (ii) Blue Sky. The Company shall have obtained all necessary Blue Sky law permits
and qualifications, or have the availability of exemptions therefrom, required by any state for the offer, sale and issuance of the Shares and the Warrant. 
  
 5. Miscellaneous.
  
 (a) Governing Law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS BY THE INTERNAL LAWS OF THE STATE OF CALIFORNIA AS APPLIED TO
AGREEMENTS ENTERED INTO AMONG CALIFORNIA RESIDENTS TO BE PERFORMED ENTIRELY WITHIN CALIFORNIA, WITHOUT REGARD TO CONFLICT OF LAWS RULES. 
  
 (b) Entire Agreement. This Agreement, including the exhibits attached hereto, and the other documents delivered pursuant hereto
constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof and no party shall be liable or bound to any other party in any manner by any warranties, representations, or covenants
except as specifically set forth herein or therein. 
  
 (c) Amendments; Waivers. With the written consent of the Company and the Investor, the rights and obligations of the Company and the Investor may be waived, amended or modified (either generally or in a particular instance, either
retroactively or prospectively and either for a specified period of time or indefinitely). Upon the effectuation of each such waiver, amendment or modification, the Company shall promptly give written notice thereof to the Investor who have not
previously consented thereto in writing. Neither this Agreement nor any provisions hereof may be waived, amended or modified orally, but only by a signed statement in writing. 
  
 (d) Successors and Assigns. Except as otherwise expressly provided in this Agreement or the Warrant,
the provisions of this Agreement and the Warrant shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. 
  
 (e) Notices, etc. All notices and other communications required or permitted hereunder shall be in
writing and shall be delivered personally by hand or by courier, mailed by United States first-class mail, postage prepaid, sent by facsimile or sent by electronic mail directed: 
  
 (i) if to the Investor, to its address, facsimile number or electronic mail address set forth on its
signature page to this Agreement, or at such other address, facsimile number or electronic mail address as the Investor may designate by ten (10) days’ advance written notice to the Company; or 
  
 (ii) if to the Company, to its address, facsimile number or
electronic mail address set forth on its signature page to this Agreement and directed to the attention of the President, or at such other address, facsimile number or electronic mail address as the Company may designate by ten (10) days’
advance written notice to the Investor. 

 All such notices and other communications shall be deemed given upon personal delivery, on the date of
mailing, upon confirmation of facsimile transfer or upon confirmation of electronic mail delivery. With respect to any notice given by the Company under any provision of the Nevada Revised Statutes or the Company’s charter or bylaws, the
Investor agrees that such notice may given by facsimile or by electronic mail. 
  
 (f) Expenses. The Company and the Investor shall each pay their own expenses in connection with the transactions contemplated
by this Agreement. 
  
 (g)
Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said
provision; provided that no such severability shall be effective if it materially changes the economic benefit of this Agreement to any party. 
  
 (h) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable, and all of
which together shall constitute one instrument. 
  
 (i) Telecopy Execution and Delivery. A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more parties hereto, and an executed copy of this Agreement may be delivered by one or more parties
hereto by facsimile or similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. At the
request of any party hereto, all parties hereto agree to execute an original of this Agreement as well as any facsimile, telecopy or other reproduction hereof. 
  

[Remainder of page intentionally left blank.] 

 IN WITNESS WHEREOF, the parties have executed this Agreement on the date first set forth above.

  

	
	AKESIS PHARMACEUTICALS, INC.
	
	/s/ Jay Lichter
	Signature

  

			
	Jay Lichter, President and CEO
		
	Address:	 	888 Prospect Street, Suite 320
		
	 	 	La Jolla, CA 92037
		
	Telephone:	 	(858) 454-4311
		
	Facsimile:	 	(858) 348-2183
		
	E-mail:	 	jlichter@avalon-ventures.com

  

	
	
	AVALON VENTURES VII, L.P.
	
	/s/ Kevin Kinsella
	Signature
	
	Kevin Kinsella
	Print Name

  

			
		
	Address:	 	888 Prospect Street, Suite 320
	 	 	La Jolla, CA 92037
		
	Telephone:	 	(858) 454-4311
		
	Facsimile:	 	(858) 348-2183
		
	E-mail:	 	kkinsella@avalon-ventures.com

 AKESIS PHARMACEUTICALS, INC. 
 SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT

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