Document:

Exhibit
10.3

 

 

310 Goddard, Suite 150

Irvine, CA 92618

 

tel. 949.753.0624

fax 949.753.0510

 

www.combimatrix.com

 

 

Aug
11, 2010

 

R.
Judd Jessup

[Address]

 

Dear
Judd,

 

We
are pleased to offer you the position of President and Chief Executive Officer
for CombiMatrix Corporation (“CBMX”) with the following terms.

 

You
will be expected to perform various duties consistent with your position and
according to the needs of the company. 
You will report to the Chairman of the Board of Directors.  Of course, CBMX may change your duties from
time to time as it deems necessary during the course of employment.

 

Start date

Your
start date will be August 23, 2010.

 

Cash Compensation Equity and Benefits

Your
compensation packages with CBMX will be as follows:

 

Base Salary

Your
base pay will be $16,153.85 on a bi-weekly basis (which is equivalent to
$420,000 annually) less payroll deductions and applicable taxes.

 

Benefits

You
will be eligible for the following standard CBMX benefits, which include paid
time off, health insurance, dental and vision care, and stock options. You will
be eligible to earn and accrue 15 paid days off per year as well as eight (8) additional
company-designated holidays.  You will be
eligible for health benefits beginning on the first day of the month following
your date of hire.  Details about these
benefits will be provided to you upon acceptance of this offer.  CBMX may modify benefits from time to time as
it deems necessary.  You will also be
eligible to participate in CBMX’s Executive Change of Control Severance Plan
(the “Plan”), as amended.

 

1

 

You
will be eligible to participate in all other corporate benefits offered to
employees of CBMX, providing that you meet all eligibility requirements of those
plans.

 

Equity

You
will receive a stock option grant of 400,000 shares of Common Stock of CBMX at
an exercise price equal to 100% of the fair market value of the company’s
common stock on the date of the grant. Such option will be subject to vesting over
four (4) years so long as you continue to be employed with the CBMX, with
25% of the shares subject to such option vesting on your one-year anniversary
date and the remaining 75% on a monthly vesting schedule of 1/48th of the original grant per month over the
subsequent three (3) years.

 

Management Bonus

Subject
to board approval in its discretion, you will also be eligible to receive an
annual performance bonus. Bonus is based on both company and individual
performance as determined by the Compensation Committee of the Board of
Directors. Bonus payments will be subject to payroll deductions and all
required withholdings.

 

Additional Information Regarding Employment at CBMX

As
a Company employee, you will be expected to abide by Company rules and
regulations and acknowledge in writing that you have read the Company’s
Policies and Procedures that will govern the terms and conditions of your
employment. The Company’s Policies and Procedures may be modified from time to
time at the sole discretion of the Company.

 

In
your work for CBMX, you will be expected not to use or disclose any
confidential information, including trade secrets, of any former employer or
other person to whom you have an obligation of confidentiality. You agree that
you will not bring onto CBMX premises any unpublished documents or property
belonging to any former employer or other person to whom you have an obligation
of confidentiality. In the performance of your duties for CBMX you will be
expected to use only that information which is generally known and used by
persons with training and experience comparable to your own, which is common
knowledge in the industry or otherwise legally in the public domain, or which
is otherwise provided or developed by CBMX.

 

Your
employment with CBMX is not for a guaranteed or definite period of time.
Rather, your employment relationship is “at will”. This means that you may
terminate your employment with CBMX at any time and for any reason whatsoever
simply by notifying the company. Likewise, CBMX may terminate your employment
at any time and for any reason whatsoever, with or without cause or advance
notice. This at-will employment relationship cannot be changed except in
writing signed by the Chairman of the Board.

 

By
signing this offer letter, you are acknowledging that you have never been and
are not currently debarred, excluded or banned from any federal healthcare
program. Your signature further acknowledges that you have not been convicted
of a felony involving fraud or deceit. 
You agree to notify CBMX immediately should you become debarred,
excluded or banned from any federal healthcare program or should you be
convicted of a felony involving fraud or deceit.

 

Please
note that this offer of employment is contingent upon the results of an outside
background check on you being without any adverse disclosures whatsoever.
Criminal, social security number, driving record, and or degree verification
screenings may be performed.  We reserve
the right, in our sole discretion, to rescind this offer based on the results
of the background check.

 

2

 

Conditions of Employment

This offer of employment is contingent on the
following:

 

1.    Employment Authorization. You must produce within three working
days of hire, documentation showing identity and eligibility to work in the
United States.

2.    Satisfactory Reference and Background
Check. This offer
is contingent upon receiving satisfactory references and an acceptable
background check.

3.    Employee Intellectual Property
Agreement. This
offer is contingent upon your execution of the Employee Intellectual Property
Agreement.

4.    Conflict of Interest. Without pre-approval from the company
you cannot perform work for others in a field of similar interest to CBMX.

5.    Non-Disparagement. During your employment and after you
are no longer an employee of CBMX, regardless of the reason for not being an
employee, you agree not to make any disparaging statements to any current or
former Company employees, customers, or any media or to any other person
concerning the Company or any of its Affiliates. A disparaging statement is any
comment oral or written, which would tend to cause humiliation or embarrassment
or cause the recipient to question the business condition, integrity, competence
or good character of the Company or any of its Affiliates.

 

Confidential and Trade Secret
Information of a Former Employer or Other Third Party

By signing this offer letter you represent that your
performance of all of the terms of this agreement will not breach any agreement
to keep in confidence information acquired by you in confidence or in trust
prior to or outside your employment with CBMX. You agree that you have
disclosed all agreements that you have entered into with prior employers that
contain provisions that extend beyond the employment relationship. You have not
brought and will not bring will not bring with you to CBMX for use in the
performance of your duties any materials, documents or information of a former
employer or third party that are not generally available to the public unless
you have obtained the express written authorization from the owner for their
possession and use by and for CBMX.  You
further represent that execution of this agreement, employments with CBMX and
the performance of your proposed duties to CBMX in the development of its
business will not violate any obligations you have to any former employer and
understand that CBMX does not want you to violate agreements with any former
employer.

Initial R.J.J.

 

This letter together with conditions of employment
forms the complete and exclusive statement of the terms of your employment with
CBMX. The employment terms in this letter supersede any other agreements or
promises made to you by anyone, whether oral or written.  This Agreement will be binding upon your
heirs, executors, administrators and other legal representatives and will be
for the benefit of CBMX, its successors, and assigns.

 

Please sign, date and return this letter by
August 12, 2010, if you wish to accept employment with CBMX under the
terms described above.

 

Judd, we are confident you will be an outstanding
leader for CBMX and look forward to your favorable reply.

 

3

 

	
  Sincerely,

  	
   

  	 

	 
	
   

  	
   

  
	 
	
   

  	
   

  
	
  /s/ MARK MCGOWAN

  	
   

  	 

	
  Mark McGowan

  	
   

  	 

	
  Chairman of the Board

  	
   

  	 

					

 

 

Accepted by:

 

 

	
  /s/ R. JUDD JESSUP

  	
   

  	 

	
  R. Judd Jessup

  	
   

  	 

	
   

  	
   

  	 

	 
	
  August 11, 2010

  	
   

  
					

 

4EXHIBIT 4.1

 

THE SECURITIES REPRESENTED
BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SAID ACT AND, IF
REQUESTED BY THE COMPANY, UPON DELIVERY OF AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER IS EXEMPT FROM SAID ACT.

 

	
  WARRANT NO.

  	
  NUMBER OF SHARES:

  
	
  DATE OF ISSUANCE:                        
  , 2010

  	
  (subject
  to adjustment)

  

 

WARRANT
TO PURCHASE SHARES

OF
COMMON STOCK OF

 

ARYx Therapeutics, Inc.

 

This Warrant is issued
to            , or its registered assigns
in accordance with the terms hereof (the “Purchaser”), pursuant to that
certain Secured Note and Warrant Purchase Agreement, dated as of August 13,
2010, among ARYx Therapeutics, Inc., a Delaware corporation (the “Company”),
the Purchaser and certain other purchasers thereunder (the “Purchase
Agreement”), and is subject to the terms and conditions of the Purchase
Agreement. This Warrant, together with such other warrants issued pursuant to
the terms of the Purchase Agreement, shall collectively be referred to as the “Warrants.”

 

1.                                   EXERCISE OF
WARRANT.

 

(a)                    Method of Exercise. 
Subject to the terms and conditions herein set forth, upon surrender of this
Warrant at the principal office of the Company and upon payment of the Warrant
Price (as defined below) by wire transfer to the Company or cashier’s check
drawn on a United States bank made to the order of the Company, or exercise of
the right to credit the Warrant Price against the fair market value of the
Warrant Stock (as defined below) at the time of exercise (the “Net Exercise
Right”) pursuant to Section 1(b), Purchaser is entitled to purchase
from the Company, at any time after the date hereof and on or before the date
that is five (5) years from the Date of Issuance set forth above (the “Expiration
Date”), up to                shares (as adjusted from time to time
pursuant to the provisions of this Warrant, the “Warrant Stock”) of
Common Stock, par value $0.001 per share (“Common Stock”) of the
Company, at a purchase price of $0.50 per share (the “Warrant Price”).

 

(b)                    Net Exercise Right. 
If the Company shall receive written notice from the holder of this Warrant at
the time of exercise of this Warrant that the holder elects to exercise the Net
Exercise Right, the Company shall deliver to such holder (without payment by
the Purchaser of any exercise price in cash) that number of fully paid and
nonassessable shares of Common Stock equal to the quotient obtained by dividing
(y) the value of this Warrant (or the specified portion thereof) on the
date of exercise, which value shall be determined by subtracting (1) the
aggregate Warrant Price of the Warrant Stock (or the specified portion thereof)
immediately prior to the exercise of this Warrant from (2) the Aggregate
Fair Market Value (as defined below) of the Warrant Stock (or the specified
portion thereof) issuable upon exercise of this Warrant (or specified portion
thereof) on the date of exercise by (z) the Fair Market Value (as defined
below) of one share of Common Stock on the date of exercise.  The “Fair

 

 

Market Value” of a share of
Common Stock shall mean the average of the closing or last reported sale prices
of the Common Stock on the NASDAQ Global Market or other principal exchange or
quotation system on which the Common Stock is then traded for the five (5) consecutive
trading days immediately prior to date of exercise as reported by the NASDAQ
Global Market or such other principal exchange or quotation system or, if the
Common Stock is not publicly traded, the price of a share of Common Stock
determined in good faith by the Company’s Board of Directors.  The “Aggregate
Fair Market Value” of the Warrant Stock shall be determined by multiplying
the number of shares of Warrant Stock by the Fair Market Value of one share of
Warrant Stock.

 

2.                                CERTAIN
ADJUSTMENTS.

 

(a)                       Mergers or
Consolidations.  If at any time while this Warrant is exercisable
there shall be a capital reorganization (other than a combination or
subdivision of Warrant Stock otherwise provided for herein) (a “Reorganization”),
or a merger or consolidation of the Company with another corporation (other
than a merger with another corporation in which the Company is a continuing
corporation or a merger effected exclusively for the purpose of changing the
domicile of the Company, and which in either case does not result in any
reclassification or change of outstanding securities issuable upon exercise of
this Warrant) (a “Merger”), then, as a part of such Reorganization or
Merger, the Company shall use its best efforts to ensure Purchaser shall
thereafter be entitled to receive upon exercise of this Warrant, during the
period specified in this Warrant and upon payment of the Warrant Price, the
same amount and kind of securities, cash or other property of the Company or
the successor corporation resulting from such Reorganization or Merger, to
which a holder of the Common Stock deliverable upon exercise of this Warrant
would have been entitled under the provisions of the agreement in such
Reorganization or Merger if this Warrant had been exercised immediately before
that Reorganization or Merger. In any such case, appropriate adjustment (as
determined in good faith by the Company’s Board of Directors) shall be made in
the application of the provisions of this Warrant with respect to the rights
and interests of the Purchaser after the Reorganization or Merger to the end
that the provisions of this Warrant (including adjustment of the Warrant Price
then in effect and the number of shares of Warrant Stock) shall be applicable
after that event, as near as reasonably may be, in relation to any shares or
other property deliverable after that event upon exercise of this Warrant.  Notwithstanding the foregoing, in the event
any successor to the Company, surviving entity or the corporation purchasing or
otherwise acquiring such assets or other appropriate corporation or entity does
not agree to assume this Warrant in connection with a Reorganization or Merger,
then this Warrant shall terminate and be of no further force or effect unless
exercised pursuant to Section 1 hereof prior to the date of closing of
such Reorganization or Merger.

 

(b)                       Splits and
Subdivisions; Dividends.  In the event the Company should at any time,
or from time to time, fix a record date for the effectuation of a split or
subdivision of the outstanding shares of Common Stock or the determination of
the holders of Common Stock entitled to receive a dividend or other
distribution payable in additional shares of Common Stock or other securities
or rights convertible into, or entitling the holder thereof to receive directly
or indirectly, additional shares of Common Stock (hereinafter referred to as
the “Common Stock Equivalents”) without payment of any consideration by
such holder for the additional shares of Common Stock or Common Stock
Equivalents (including the additional shares of Common Stock issuable upon
conversion or exercise thereof), then, as of such record date (or the date of
such distribution, split or subdivision if no record date is fixed), the per
share Warrant Price shall be appropriately decreased and the number of shares
of Warrant Stock shall be appropriately increased in proportion to such
increase (or potential increase) of outstanding shares.

 

(c)                       Combination of Shares. 
If the number of shares of Common Stock outstanding at any time after the date
hereof is decreased by a combination of the outstanding shares of Common Stock,
the per share Warrant Price shall be appropriately increased and the number of
shares of Warrant Stock 

 

2

 

shall be appropriately
decreased in proportion to such decrease in outstanding shares.

 

(d)                       Adjustments for Other
Distributions.  In the event the Company shall declare a distribution
payable in securities of other persons, evidences of indebtedness issued by the
Company or other persons, assets (excluding cash dividends paid out of net
profits) or options or rights not referred to in Section 2(b), then, in
each such case for the purpose of this Section 2(d), upon exercise of this
Warrant the holder hereof shall be entitled to a proportionate share of any
such distribution as though such holder was the holder of the number of shares
of Common Stock into which this Warrant may be exercised as of the record date
fixed for the determination of the holders of Common Stock entitled to receive
such distribution.

 

(e)         Certificate of Adjustment.  Whenever the Warrant
Price or number or type of securities issuable upon exercise of this Warrant is
adjusted, as herein provided, the Company shall, at its expense, promptly
deliver to the record holder of this Warrant a certificate of an officer of the
Company setting forth the nature of such adjustment and showing in detail the
facts upon which such adjustment is based.

 

3.                                   NO FRACTIONAL
SHARES.  No fractional shares of Warrant Shares will be issued in
connection with any exercise of this Warrant.  In lieu of any fractional
shares which would otherwise be issuable, the Company shall pay cash equal to
the product of such fraction multiplied by the Fair Market Value of one share
of Warrant Stock.

 

4.                                   NO
STOCKHOLDER RIGHTS.  Until the exercise of this Warrant or any portion of
this Warrant, the Purchaser shall not have nor exercise any rights by virtue
hereof as a stockholder of the Company (including without limitation the right
to notification of stockholder meetings or the right to receive any notice or
other communication concerning the business and affairs of the Company).

 

5.                                   RESERVATION
OF STOCK.  The Company covenants that during the period this Warrant is
exercisable, the Company will reserve from its authorized and unissued Common
Stock a sufficient number of shares of Common Stock (or other securities, if
applicable) to provide for the issuance of Warrant Stock (or other securities)
upon the exercise of this Warrant.  The Company agrees that its issuance
of this Warrant shall constitute full authority to its officers who are charged
with the duty of executing stock certificates to execute and issue the
necessary certificates for the Warrant Stock upon the exercise of this Warrant.

 

6.                                   MECHANICS OF
EXERCISE.  This Warrant may be exercised by the holder hereof, in whole or
in part, by the surrender of this Warrant and the Notice of Exercise attached
hereto as Exhibit A duly completed and executed on behalf of the
holder hereof, at the principal office of the Company together with payment in
full of the Warrant Price then in effect with respect to the number of shares
of Warrant Stock as to which the Warrant is being exercised.  This Warrant
shall be deemed to have been exercised immediately prior to the close of
business on the date of its surrender for exercise as provided above, and the
person entitled to receive the Warrant Stock issuable upon such exercise shall
be treated for all purposes as the holder of such shares of record as of the
close of business on such date.  As promptly as practicable on or after
such date, the Company at its expense shall cause to be issued and delivered to
the person or persons entitled to receive the same, a certificate or
certificates for the number of full shares of Warrant Stock issuable upon such
exercise, together with cash in lieu of any fraction of a share as provided
above.  The shares of Warrant Stock issuable upon exercise hereof shall,
upon their issuance, be validly issued, fully paid and nonassessable, and free
from all preemptive rights, taxes, liens and charges with respect to the issue
thereof.  In the event that this Warrant is exercised in part, the Company
at its expense will execute and deliver a new Warrant of like tenor exercisable
for the number of shares for which this Warrant may then be exercised.

 

3

 

7.                                   REPRESENTATIONS
OF PURCHASER.  As of the date hereof, the Purchaser hereby confirms the
representations and warranties made by the Purchaser in Section 5 of the
Purchase Agreement.

 

8.                                   TRANSFER
RESTRICTIONS.

 

(a)                    Unregistered Security. 
The holder of this Warrant acknowledges that this Warrant and the Warrant Stock
have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”) or applicable state securities laws (collectively, the “Acts”),
and agrees not to sell, encumber or otherwise transfer this Warrant or any
Warrant Stock issued upon its exercise unless (i) there is an effective
registration statement under the Securities Act covering the transaction,
(ii) the Company receives an opinion of counsel satisfactory to the
Company that such registration is not required, or (iii) the Company
otherwise is reasonably satisfied that registration is not required.  Each
certificate or other instrument for Warrant Stock issued upon the exercise of
this Warrant shall bear a legend substantially to the foregoing effect.

 

(b)                    No Transfer. 
This Warrant is not transferable without the Company’s prior written consent; provided,
however, such consent shall not be required in connection with the transfer
by the Purchaser of such Warrant (but only with all related obligations)
without consideration to a Qualifying Holder (as such term is defined in the
Registration Rights Agreement among the Company, the Purchaser and certain
other investors thereunder entered into in connection with the Purchase
Agreement), provided that (i) written notice (in the form of Exhibit B
as attached hereto) is provided to the Company at least five (5) business
days prior to any such transfer, (ii) the transferee is an “accredited
investor” as defined in Rule 501(a) of Regulation D promulgated under
the Securities Act and (iii) the transferee agrees in writing to be bound
by all of the provisions of this Warrant.

 

9.                                   NOTICES OF
RECORD DATE.  In the event of:

 

(a)                    any taking by the Company of
a record of the holders of any class of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend (other
than a cash dividend payable out of earned surplus of the Company) or other
distribution, or any right to subscribe for, purchase or otherwise acquire any
shares of stock of any class or any other securities or property, or to receive
any other right; or

 

(b)                    any Reorganization or
Merger; or

 

(c)                    any voluntary or involuntary
dissolution, liquidation or winding-up of the Company,

 

then and in each such event
the Company will mail or cause to be mailed to the Purchaser (or a permitted
transferee pursuant to Section 8(b) above) a notice specifying
(i) the date on which any such record is to be taken for the purpose of
such dividend, distribution or right, and stating the amount and character of
such dividend, distribution or right and (ii) the date on which any such
Reorganization, Merger, dissolution, liquidation or winding-up is to take
place, and the time, if any, as of which the holders of record of Common Stock
(or other securities) shall be entitled to exchange their shares of Common
Stock (or other securities) for securities or other property deliverable upon
such Reorganization, Merger, dissolution, liquidation or winding-up.  Such
notice shall be mailed at least ten (10) business days prior to the date
therein specified.

 

4

 

10.                                 REPLACEMENT OF
WARRANTS.  On receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant and, in the case
of any such loss, theft, destruction or mutilation of this Warrant, on delivery
of an indemnity agreement or security reasonably satisfactory in form and
amount to the Company or, in the case of any such mutilation, on surrender and
cancellation of such Warrant, the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

 

11.                                 SATURDAYS,
SUNDAYS, HOLIDAYS, ETC.  If the last or appointed day for the taking
of any action or the expiration of any right required or granted herein shall
be a Saturday or Sunday or shall be a legal U.S. holiday, then such action may
be taken or such right may be exercised on the next succeeding day not a
Saturday, Sunday or legal U.S. holiday.

 

12.                                 MISCELLANEOUS. 
This Warrant shall be governed by the laws of the State of California. 
The headings in this Warrant are for purposes of convenience and reference
only, and shall not be deemed to constitute a part hereof.  Neither this
Warrant nor any term hereof may be changed, waived, discharged or terminated
except by an instrument in writing signed by the Company and each holder of
Warrants, provided that following any assignment of any of the Warrants, such
consent may be given by any holder or group of holders of greater than fifty
percent (50%) of the Warrant Stock represented by outstanding Warrants,
and provided further that all Warrants are similarly affected.  Upon the
effectuation of any such amendment, discharge or waiver in conformance with
this Section 12, the Company shall promptly give written notice thereof to
the record holders of the Warrants who have not previously consented thereto in
writing. All notices required or permitted under this Warrant 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 electronic mail or
facsimile if sent during normal business hours of the recipient, if not, then
on the next business day, (c) three business (3) days after having
been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) 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 at the
address listed below and to Purchaser at the address set forth in the Purchase
Agreement or at such other address as the Company or Purchaser may designate by
ten (10) days’ advance written notice to the other party hereto. The
invalidity or unenforceability of any provision hereof shall in no way affect
the validity or enforceability of any other provisions. Receipt of this Warrant
by the Purchaser shall constitute acceptance of and agreement to all of the
terms and conditions contained herein.

 

[SIGNATURE
PAGE FOLLOWS]

 

5

 

IN WITNESS WHEREOF, this
Warrant to purchase shares of Common Stock of ARYx Therapeutics, Inc. is
issued effective as of the Date of Issuance first set forth above.

 

	
   

  	
  ARYx Therapeutics, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Paul Goddard, Ph.D.

  
	
   

  	
   

  	
  Chairman of the Board and
  Chief

  
	
   

  	
   

  	
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  6300 Dumbarton Circle

  
	
   

  	
   

  	
  Fremont, CA 94555

  
	
   

  	
   

  	
  Attention: Paul Goddard,
  Ph.D.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  with a copy to (which shall not constitute notice):

  
	
   

  	
   

  
	
   

  	
  Cooley LLP

  
	
   

  	
  Five Palo Alto Square

  
	
   

  	
  3000
  El Camino Real

  
	
   

  	
  Palo
  Alto, CA 94306

  
	
   

  	
  Attention:
  Jim F. Fulton, Jr., Esq.

  
				

 

 

SIGNATURE PAGE TO ARYx THERAPEUTICS, INC.

WARRANT

 

 

EXHIBIT A

 

NOTICE
OF INTENT TO EXERCISE

(To
be signed only upon exercise of Warrant)

 

To:  ARYx Therapeutics, Inc.

 

The undersigned, the
Purchaser of the attached Warrant, hereby irrevocably elects to exercise the
purchase right represented by such Warrant for, and to purchase thereunder,
                            
(                )
shares of Common Stock of ARYx Therapeutics, Inc. and (choose one)

 

o herewith makes payment of
                                    
Dollars ($                  )
thereof;

 

or

 

o exercises the Net Exercise Right pursuant to Section 1(b) thereof;

 

and requests that the
certificates for such shares be issued in the name of, and delivered to
                                                      ,
                           
whose                                           
address is
                                                                                                                                                                                      .

 

As of the date hereof, the
Purchaser hereby confirms as to itself the representations and warranties made
in Section 5 of the Purchase Agreement.

 

 

	
  DATED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature must conform in
  all respects to name of the Purchaser as specified on the face of the
  Warrant)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Address)

  

 

 

EXHIBIT B

 

NOTICE
OF ASSIGNMENT FORM

 

FOR VALUE RECEIVED,
                                            
(the “Assignor”) hereby sells, assigns and transfers all of the rights
of the undersigned Assignor under the attached Warrant with respect to the
number of shares of Common Stock of ARYx Therapeutics, Inc. (the “Company”)
covered thereby set forth below, to the following “Assignee” and, in
connection with such transfer, represents and warrants to the Company that (i) such
Assignee is a Qualifying Holder (as such term is defined in the Registration
Rights Agreement among the Company, the Assignor and the other investors thereunder
entered into in connection with the Purchase Agreement (as defined in the
attached Warrant)) of the Assignor and (ii) the transfer is otherwise in
compliance with Section 8(b) of the Warrant:

 

	
  NAME
  OF ASSIGNEE

  	
   

  	
  ADDRESS/FAX
  NUMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  Signature: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Witness:

  	
   

  
					

 

 

ASSIGNEE
ACKNOWLEDGMENT

 

The undersigned Assignee
acknowledges that it has reviewed the attached Warrant and by its signature
below it hereby represents and warrants that it is a Qualifying Holder and an “accredited
investor” as defined in Rule 501(a) of Regulation D promulgated under
the Securities Act of 1933, as amended, and agrees to be bound by the terms and
conditions of the attached Warrant as of the date hereof.

 

	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
  Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]