Document:

Exhibit 10.1

 

FIRST MODIFICATION TO AMENDED AND
RESTATED

LOAN AND SECURITY AGREEMENT

(ACCOUNTS AND INVENTORY)

 

This
First Modification to Amended and Restated Loan and Security Agreement
(Accounts and Inventory) (this “Modification”) is entered into by and between
INFOSONICS CORPORATION, a Maryland corporation (“Borrower”), and COMERICA BANK
(“Bank”) as of this 29th day of September 2005.

 

RECITALS

 

This
Modification is entered into upon the basis of the following facts and
understandings of the parties, which facts and understandings are acknowledged
by the parties to be true and accurate:

 

Bank
and Borrower previously entered into that certain Amended and Restated Loan and
Security Agreement (Accounts and inventory) dated August 12, 2005, as may
be modified, amended, supplemented or revised from time to time (the “Agreement”).

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as set forth below.

 

AGREEMENT

 

1.                                       Incorporation
by Reference.  The Recitals and the
documents referred to therein are incorporated herein by this reference.  Except as otherwise noted, the terms not
defined herein shall have the meaning set forth in the Note or Agreement.

 

2.                                       Modification
to the Agreement.  The Agreement is
hereby modified as set forth below:

 

A.                                   Subsection 1.11
of the Agreement is hereby amended to provide that commencing September 29,
2005, the Credit Limit is hereby temporarily increased by Three Million and
00/100 Dollars ($3,000,000.00) from Fifteen Million and 00/100 Dollars
($15,000,000.00) to Eighteen Million and 00/100 Dollars ($18,000,000.00), and
that effective October 8, 2005 and thereafter the Credit Limit shall
revert back to Fifteen Million and 00/100 Dollars ($15,000,000.00).

 

B.                                     Section 2.2
of the Agreement is hereby amended by adding the following provision to the end
of the Section:

 

“Any
daily balance outstanding in excess of $15,000,000 shall bear interest at the
Base Rate plus one-half (0.50%) percentage points per annum for the period
commencing September 29, 2005 through and including October 7, 2005
or the date which the indebtedness has been reduced to $15,000,000 or less.”

 

 

3.                                       Legal
Effect.

 

a.                                       Except
as specifically set forth in this Modification, all of the terms and conditions
of the Agreement remain in full force and affect.  Except as expressly set forth herein, the
execution, delivery and performance of this Modification shall not operate as a
waiver of, or as an amendment of, any right, power or remedy of Bank under the
Agreement, as in effect prior to the date hereof.  Borrower hereby ratifies and reaffirms the
continuing effectiveness of all promissory notes, guarantee, security
agreement, mortgages, deeds of trust, environmental agreements, and all other
instruments, documents and agreements entered into in connection with the
Agreement.

 

b.                                      Borrower
represents and warrants that the Representations and Warranties contained in
the Agreement are true and correct as of the date of this Modification, and that
no Event of Default has occurred and is continuing.

 

c.                                       The
effectiveness of this Modification and each of the documents, instruments and
agreements entered into in connection with this Modification is conditioned
upon receipt by Bank of this Modification and any other documents which Bank
may require to carry out the terms thereof.

 

4.                                       Miscellaneous
Provisions:

 

a.                                       This
is an integrated Modification and supersedes all prior negotiations and
agreements regarding the subject matter hereof. 
All amendments hereto must be in writing and signed by the parties.

 

b.                                      This
Modification may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one
instrument.

 

IN
WITNESS WHEREOF, the parties have signed as of the date first set forth above.

 

	
  INFOSONICS
  CORPORATION

  	
  COMERICA BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Joseph Ram

  	
   

  	
  By:

  	
  /s/ Tomas
  Schmidt

  	
   

  
	
  Title:

  	
   

  	
  Tomas Schmidt

  
	
   

  	
   

  	
  Vice
  President-Western Division

  
						

 

2Exhibit 4.12

 

METABASIS THERAPEUTICS, INC.

 

SECURITIES PURCHASE AGREEMENT

 

SEPTEMBER 30, 2005

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  1

  	
  AUTHORIZATION AND SALE OF
  COMMON SHARES AND WARRANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Authorization

  	
   

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Sale
  of Common Shares and Warrants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2

  	
  CLOSING DATES; DELIVERY

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Closing Date

  	
   

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Delivery

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  	
  REPRESENTATIONS AND
  WARRANTIES OF THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Organization
  and Standing

  	
   

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Corporate
  Power; Authorization

  	
   

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Issuance
  and Delivery of the Shares

  	
   

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  SEC
  Documents; Financial Statements

  	
   

  
	
   

  	
   

  	
   

  
	
  3.5

  	
  Governmental
  Consents

  	
   

  
	
   

  	
   

  	
   

  
	
  3.6

  	
  No
  Material Adverse Change

  	
   

  
	
   

  	
   

  	
   

  
	
  3.7

  	
  Authorized
  Capital Stock

  	
   

  
	
   

  	
   

  	
   

  
	
  3.8

  	
  Litigation

  	
   

  
	
   

  	
   

  	
   

  
	
  3.9

  	
  Eligibility
  to Use Form S-3

  	
   

  
	
   

  	
   

  	
   

  
	
  3.10

  	
  Company
  not an “Investment Company.”

  	
   

  
	
   

  	
   

  	
   

  
	
  3.11

  	
  NASDAQ
  Compliance

  	
   

  
	
   

  	
   

  	
   

  
	
  3.12

  	
  Use of Proceeds

  	
   

  
	
   

  	
   

  	
   

  
	
  3.13

  	
  Brokers and
  Finders

  	
   

  
	
   

  	
   

  	
   

  
	
  3.14

  	
  No
  Directed Selling Efforts or General Solicitation

  	
   

  
	
   

  	
   

  	
   

  
	
  3.15

  	
  No
  Integrated Offering

  	
   

  
	
   

  	
   

  	
   

  
	
  3.16

  	
  Private
  Placement

  	
   

  
	
   

  	
   

  	
   

  
	
  3.17

  	
  Intellectual
  Property

  	
   

  
	
   

  	
   

  	
   

  
	
  3.18

  	
  Questionable
  Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  3.19

  	
  Transactions
  with Affiliates

  	
   

  
	
   

  	
   

  	
   

  
	
  3.20

  	
  Disclosure

  	
   

  
	
   

  	
   

  	
   

  
	
  3.21

  	
  Dilution; Sales By
  Purchasers

  	
   

  
	
   

  	
   

  	
   

  
	
  3.22

  	
  Sarbanes-Oxley;
  Disclosure Controls and Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  3.23

  	
  Taxes

  	
   

  

 

i

 

	
  3.24

  	
  Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4

  	
  REPRESENTATIONS, WARRANTIES
  AND COVENANTS OF THE PURCHASERS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Authorization

  	
   

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Investment
  Experience

  	
   

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Investment
  Intent

  	
   

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  Registration
  or Exemption Requirements

  	
   

  
	
   

  	
   

  	
   

  
	
  4.5

  	
  Dispositions

  	
   

  
	
   

  	
   

  	
   

  
	
  4.6

  	
  No
  Legal, Tax or Investment Advice

  	
   

  
	
   

  	
   

  	
   

  
	
  4.7

  	
  Confidentiality

  	
   

  
	
   

  	
   

  	
   

  
	
  4.8

  	
  Residency

  	
   

  
	
   

  	
   

  	
   

  
	
  4.9

  	
  Governmental
  Review

  	
   

  
	
   

  	
   

  	
   

  
	
  4.10

  	
  Legend

  	
   

  
	
   

  	
   

  	
   

  
	
  4.11

  	
  Foreign
  Investors

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  	
  CONDITIONS TO CLOSING
  OBLIGATIONS OF PURCHASERS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Representations
  and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Certificates

  	
   

  
	
   

  	
   

  	
   

  
	
  5.4

  	
  Legal Opinion

  	
   

  
	
   

  	
   

  	
   

  
	
  5.5

  	
  Listing

  	
   

  
	
   

  	
   

  	
   

  
	
  5.6

  	
  Officer’s
  Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
  5.7

  	
  Judgments

  	
   

  
	
   

  	
   

  	
   

  
	
  5.8

  	
  Secretary’s
  Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
  5.9

  	
  Stop Orders

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  	
  CONDITIONS TO CLOSING
  OBLIGATIONS OF COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Receipt of
  Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Representations
  and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Delivery
  of Purchaser Questionnaire

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Definitions

  	
   

  

 

ii

 

	
  7.2

  	
  Registration
  Procedures and Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Prospectus
  Delivery

  	
   

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  Termination
  of Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  7.6

  	
  Reporting
  Requirements

  	
   

  
	
   

  	
   

  	
   

  
	
  7.7

  	
  Blue Sky

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  8

  	
  RESTRICTIONS ON
  TRANSFERABILITY OF SECURITIES; COMPLIANCE WITH SECURITIES ACT

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Restrictions
  on Transferability

  	
   

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Instruction
  Sheet

  	
   

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Transfer
  of Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Purchaser
  Information

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  Waivers
  and Amendments

  	
   

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  Broker’s Fee

  	
   

  
	
   

  	
   

  	
   

  
	
  9.4

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  9.5

  	
  Survival

  	
   

  
	
   

  	
   

  	
   

  
	
  9.6

  	
  Successors
  and Assigns

  	
   

  
	
   

  	
   

  	
   

  
	
  9.7

  	
  Entire
  Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  9.8

  	
  Notices, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  9.9

  	
  Severability
  of this Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  9.10

  	
  Counterparts;
  Facsimile

  	
   

  
	
   

  	
   

  	
   

  
	
  9.11

  	
  Further
  Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  9.12

  	
  Currency

  	
   

  
	
   

  	
   

  	
   

  
	
  9.13

  	
  Waiver of
  Conflicts

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A – Form of
  Warrant

  	
   

  
	
  Exhibit B – Form of
  Purchaser Questionnaire

  	
   

  
	
  Exhibit C – Form of
  Company Counsel Opinion

  	
   

  
	
  Exhibit D – Instruction
  Sheet

  	
   

  
	
  Exhibit E – Form of
  Purchaser’s Certificate of Subsequent Sale

  	
   

  

 

iii

 

METABASIS THERAPEUTICS, INC.

 

SECURITIES PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”)
is made as of September 30, 2005, by and among METABASIS
THERAPEUTICS, INC., a
Delaware corporation (the “Company”)
with its principal office at 9390 Towne Centre Drive, Building 300, San Diego,
California 92121, and the individuals and entities identified on the signature
pages hereto (the “Purchasers”).

 

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 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 up to 7,000,000 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 2,450,000 shares of the Common Stock at an exercise price of
$6.74 per share, 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
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, including without limitation, the conditions set forth in Article 5
and Article 6 of this Agreement, the Company shall issue and

 

1

 

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 $5.86 per share and the portion of
the “Purchase Price” attributable to each full Warrant to purchase shares of
the Common Stock is $0.125 per 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 LLP (“Cooley Godward”),
4401 Eastgate Mall, San Diego, California 92121, at 10:00 a.m. California time
on the date hereof, 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 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 this Agreement, 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 this Agreement. This Agreement
constitutes, and upon

 

2

 

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 this
Agreement does not, the performance of this Agreement 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.

 

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 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 this Agreement except for (a) compliance

 

3

 

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 (as defined herein) and any
amendments thereto with the SEC as contemplated by Section 7.2 of this
Agreement, (c) the filing of the Nasdaq National Market Notification Form with The
Nasdaq Stock Market, Inc. National Market (the “Nasdaq National Market”) 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 June 30, 2005, 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 September 28, 2005, 18,235,013 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 this Agreement.

 

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.

 

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 National Market, 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 National
Market, nor has the Company received any notification that the SEC or the
National Association of Securities Dealers, Inc. is contemplating terminating
such registration or listing.

 

4

 

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, other
than SG Cowen & Co., LLC as lead placement agent and Rodman & Renshaw,
LLC as co-placement agent with respect to the offer and sale of the Securities.

 

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.

 

(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

 

5

 

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 this Agreement, 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 this Agreement and the
Warrants, including without limitation its 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 8 hereof 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

 

6

 

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 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 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

 

7

 

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 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 Warrants.

 

4.3                               Investment
Intent.  Purchaser is purchasing the
Common Shares and 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 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 has completed or
caused to be completed the Purchaser Questionnaire attached hereto as Exhibit B for use in preparation of the Registration
Statement, and the responses provided therein shall be true and correct as of
the Closing Date and will be true and correct as of the effective date of the
Registration Statement. Purchaser, in connection with its decision to purchase
the Common Shares and 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.

 

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

 

8

 

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, SG
Cowen & Co., LLC, Rodman & Renshaw, LLC 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 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 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.

 

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

 

9

 

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; provided,
however, that, if Rule 172 under the Securities Act (“Rule 172”) is then in effect, such
Purchaser shall have confirmed that a current prospectus is deemed to be
delivered in connection with such sale, or (ii) an exemption therefrom.

 

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

 

10

 

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.

 

ARTICLE 5

CONDITIONS TO CLOSING OBLIGATIONS OF PURCHASERS

 

Each Purchaser’s
obligation to purchase the Common Shares and 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 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 the Warrants
(in such denominations as indicated below such Purchaser’s name on the applicable
signature page hereto).

 

5.4                               Legal
Opinion.  The Purchasers shall have
received on the Closing Date an opinion of Cooley Godward, counsel for the
Company, dated the Closing Date, in substantially the form of Exhibit C.

 

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

 

5.6                               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.

 

5.7                               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.

 

11

 

5.8                               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 this Agreement 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.

 

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

 

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 for the Company’s use in preparing the
Registration Statement pursuant to Article 7 below.

 

12

 

ARTICLE
7

COVENANTS

 

7.1                               Definitions.
 For the purpose of this
Article 7:

 

(a)                                  the
term “Registration
Statement” shall
mean any registration statement required to be filed by Section 7.2 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.

 

7.2                               Registration
Procedures and Expenses.  The Company
shall:

 

(a)                                  use
its best efforts to file a Registration Statement with the SEC on or before the
date 30 days following the Closing Date (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
hereunder, 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 7.2(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);

 

(b)                                  use
its best efforts, subject to receipt of necessary information from the Purchasers,
to cause any such Registration Statement filed pursuant to Section 7.2(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 Closing Date; 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 Closing Date; 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
hereunder, 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 7.2(b) constitute a reasonable estimate of the

 

13

 

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);

 

(c)                                  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 7.5 below, subject to the Company’s
right to suspend pursuant to Section 7.4;

 

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

 

(e)                                  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;

 

(f)                                    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;

 

(g)                                 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;

 

(h)                                 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;

 

14

 

(i)                                    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;

 

(j)                                    bear
all expenses in connection with the procedures in paragraphs (a)
through (i) of this Section 7.2 and the registration of the
Registrable Shares on such Registration Statement and the satisfaction of the
blue sky laws of such states; and

 

(k)                                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 provisions of Section 11(a) of the Securities Act,
including Rule 158 promulgated thereunder (for the purpose of this subsection
7.2(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).

 

7.3                               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
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, if Rule 172 is then in effect, such Purchaser failed to
confirm that a final prospectus was deemed to be delivered prior to, the
delivery of written confirmation of the sale by such Purchaser to the person
asserting the claim

 

15

 

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, if Rule 172 is then in effect, notified by the
Company that such amended or supplemented prospectus has been filed with the
SEC, such Purchaser thereafter fails to deliver such prospectus as so amended
or supplemented, with or prior to, or, if Rule 172 is then in effect, such
Purchaser fails to confirm that the prospectus as so amended or supplemented
was deemed to be delivered prior to, the delivery of written confirmation of
the sale of a Registrable Share to the person asserting the claim from which
such Loss resulted or (iii) such Purchaser sold Registrable Shares in violation
of such Purchaser’s covenant contained in Section 7.4 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 7.3(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 7.3, 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

 

16

 

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.

 

(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 7.3 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.

 

7.4                               Prospectus
Delivery.  Each Purchaser hereby
covenants with the Company not to make any sale of the Registrable Shares
without complying with Section 8.3.  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

 

17

 

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 the Securities pursuant to Sections 8.3(a) and 8.3(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 7.4, 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 hereunder, 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 7.4 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).

 

7.5                               Termination
of Obligations.  The obligations of
the Company pursuant to Section 7.2 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
resold in a three-month period pursuant to Rule 144, or (c) the second
anniversary of the Closing Date.

 

7.6                               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 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

 

18

 

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.

 

7.7                               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.

 

ARTICLE 8

RESTRICTIONS ON TRANSFERABILITY OF SECURITIES;

COMPLIANCE WITH SECURITIES ACT

 

8.1                               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.

 

8.2                               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).

 

8.3                               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; provided, however, that, if Rule 172 is then in effect, such
Purchaser shall have confirmed that a current prospectus is deemed to be
delivered in connection with such sale; 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

 

19

 

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 Godward.

 

8.4                               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.

 

ARTICLE 9

MISCELLANEOUS

 

9.1                               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 9.1 all further obligations
of the Company to such Purchaser and of such Purchaser shall terminate; provided, 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
9.

 

9.2                               Waivers
and Amendments.  The terms of this
Agreement may be waived or amended with the written consent of the Company and
each Purchaser; provided, however, that with
respect to Article 7 hereof, 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 9.2 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.

 

9.3                               Broker’s
Fee.  Each Purchaser acknowledges
that the Company intends to pay a fee to SG Cowen & Co., LLC as lead
placement agent and to Rodman & Renshaw, LLC as co-placement agent in
respect of the sale of the Securities. 
Each of the parties to this Agreement

 

20

 

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.

 

9.4                               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.

 

9.5                               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.

 

9.6                               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
8.3(a)(iii) or 8.3(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.

 

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

 

9.8                               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.

 

9.9                               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.

 

9.10                        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.

 

9.11                        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.

 

21

 

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

 

9.13                        Waiver
of Conflicts.  Each party to this
Agreement acknowledges that legal counsel for the Company, Cooley Godward, 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 Godward 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 Godward’s representation
of the Company in the transactions contemplated by this Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

22

 

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
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)

  	
   

  	
  Baker
  Biotech Fund II, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital II, L.P. 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General
  Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital II (GP),

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LLC
  (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price

  	
  $

  	
  386,967.31

  	
   

  	
  65,546

  	
   

  	
  22,942

  	
   

  
								

 

[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)

  	
   

  	
  Baker
  Biotech Fund III, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital III, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General
  Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital III (GP),

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LLC
  (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  860,046.46

  	
   

  	
  145,678

  	
   

  	
  50,987

  	
   

  
								

 

[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)

  	
   

  	
  Baker
  Biotech Fund III (Z), L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital III (Z),

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  L.P.
  (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital III

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Z)(GP),
  LLC (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  175,925.89

  	
   

  	
  29,799

  	
   

  	
  10,430

  	
   

  
								

 

[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)

  	
   

  	
  Baker
  Biotech Fund II (Z), L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital II (Z),

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  L.P.
  (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital II

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Z)(GP),
  LLC (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  108,097.73

  	
   

  	
  18,310

  	
   

  	
  6,409

  	
   

  
								

 

[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)

  	
   

  	
  14159,
  L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  14159
  Capital, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General
  Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  14159
  Capital (GP), LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General
  Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  64,203.25

  	
   

  	
  10,875

  	
   

  	
  3,806

  	
   

  
								

 

[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)

  	
   

  	
  Baker
  Bros. Investments II, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Bros. Capital, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General
  Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Bros. Capital (GP), LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General
  Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  23,573.61

  	
   

  	
  3,993

  	
   

  	
  1,397

  	
   

  
								

 

[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)

  	
   

  	
  Baker
  Biotech Fund I, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix
  Baker, Ph.D.

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General
  Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Baker
  Biotech Capital (GP),

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LLC
  (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
   264,889.36

  	
   

  	
  44,868

  	
   

  	
  15,703

  	
   

  
								

 

[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)

  	
   

  	
  Biotechnology
  Value Fund, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Mark
  Lampert

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark
  Lampert

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President
  of BVF, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Partner of BVF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Partners,
  L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Partner of

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Biotechnology
  Value Fund, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  900
  North Michigan, Suite 1100

  	
   

  
	
   

  	
   

  	
  Chicago,
  IL 60611

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  754,499.25

  	
   

  	
  127,800

  	
   

  	
  44,730

  	
   

  
								

 

[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)

  	
   

  	
  Biotechnology
  Value Fund II

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Mark
  Lampert

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark
  Lampert

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President
  of BVF, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Partner of BVF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Partners,
  L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Partner of

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Biotechnology
  Value Fund II

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  900
  North Michigan, Suite 1100

  	
   

  
	
   

  	
   

  	
  Chicago,
  IL 60611

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  477,849.53

  	
   

  	
  80,940

  	
   

  	
  28,329

  	
   

  
								

 

[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)

  	
   

  	
  BVF
  Investments, LLC

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Mark
  Lampert

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark
  Lampert

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President
  of BVF, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Partner of BVF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Partners,
  L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Manager
  of BVF Investments,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  900
  North Michigan, Suite 1100

  	
   

  
	
   

  	
   

  	
  Chicago,
  IL 60611

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  1,156,898.85

  	
   

  	
  195,960

  	
   

  	
  68,586

  	
   

  
								

 

[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)

  	
   

  	
  Capital
  Ventures International

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Martin
  Kobinger

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Martin
  Kobinger

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Investment
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  101
  California Street, Suite 325a

  	
   

  
	
   

  	
   

  	
  San
  Francisco, CA 94133

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  1,003,637.50

  	
   

  	
  170,000

  	
   

  	
  59,500

  	
   

  
								

 

[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)

  	
   

  	
  Deerfield
  International Limited

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/James
  Flynn

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  James
  Flynn

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  780
  3rd Avenue, 37th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10017

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  2,618,667.35

  	
   

  	
  443,560

  	
   

  	
  155,246

  	
   

  
								

 

[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)

  	
   

  	
  Deerfield
  Partners, LP

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/James
  Flynn

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  James
  Flynn

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  780
  3rd Ave., 37th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10017

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  2,417,231.40

  	
   

  	
  409,440

  	
   

  	
  143,304

  	
   

  
								

 

[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
  L. Slutzkin

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Craig
  L. Slutzkin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  United
  States

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  11
  Madison Ave., 13th Floor 

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10010

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  22,747.21

  	
   

  	
  3,853

  	
   

  	
  1,349

  	
   

  
								

 

 

[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

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Domain
  Public Equity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Associates,
  LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  c/o
  Domain Associates

  	
   

  
	
   

  	
   

  	
  One
  Palmer Square, Suite 515

  	
   

  
	
   

  	
   

  	
  Princeton,
  NJ 08542

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  1,505,456.25

  	
   

  	
  255,000

  	
   

  	
  89,250

  	
   

  
								

 

[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 Fund

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Lawrence
  Ariana

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Lawrence
  Ariana, V.P.

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Portfolio
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  15,107,696.25

  	
   

  	
  2,559,000

  	
   

  	
  895,650

  	
   

  
								

 

[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/Thomas
  Rosch

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas
  Rosch

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  California

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  2710
  Sand Hill Road, 2nd Floor

  	
   

  
	
   

  	
   

  	
  Menlo
  Park, CA 94025

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  2,403,558.27

  	
   

  	
  407,124

  	
   

  	
  142,493

  	
   

  
								

 

[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/Thomas
  Rosch

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas
  Rosch

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  California

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  2710
  Sand Hill Road, 2nd Floor

  	
   

  
	
   

  	
   

  	
  Menlo
  Park, CA 94025

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price

  	
  $

  	
  115,105.42

  	
   

  	
  19,497

  	
   

  	
  6,824

  	
   

  
								

 

[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)

  	
   

  	
  Investment
  10, LLC

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/Mark
  Lambert

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark
  Lambert

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President
  of BVF, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Partner of BVF Partners,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Attorney-in-Fact
  for Investment

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  10,
  LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  900
  North Michigan, Suite 1100

  	
   

  
	
   

  	
   

  	
  Chicago,
  IL 60611

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price

  	
  $

  	
  125,749.88

  	
   

  	
  21,300

  	
   

  	
  7,455

  	
   

  
								

 

[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:

  	
   

  
	
  /s/
  Judith S. Sandler

  	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
  Judith
  S. Sandler

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
  1724
  Hillside Road

  	
   

  	
   

  	
   

  
	
  Stevenson,
  MD 21152

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price

  	
  $

  	
  100,363.75

  	
   

  	
  17,000

  	
   

  	
  5,950

  	
   

  
								

 

[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)

  	
   

  	
  Maverick
  Fund II, Ltd.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  John T. McCafferty

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John
  T. McCafferty

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Principal
  and General Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Maverick
  Capital, Ltd., its

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Investment
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Cayman
  Islands

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  c/o
  Maverick Capital, Ltd

  	
   

  
	
   

  	
   

  	
  300
  Crescent Court, 18th Floor

  	
   

  
	
   

  	
   

  	
  Dallas,
  TX 75201

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price

  	
  $

  	
  1,486,009.29

  	
   

  	
  251,706

  	
   

  	
  88,097

  	
   

  
								

 

[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:

  	
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  111
  Huntington Ave., 31st St.

  	
   

  
	
   

  	
   

  	
  Boston,
  MA 02199

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  64,026.08

  	
   

  	
  10,845

  	
   

  	
  3,795

  	
   

  
								

 

[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. Parallell –

  	
   

  
	
   

  	
   

  	
  Beteiligungs
  KG

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  Luke Evnin

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Luke
  Evnin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  111
  Huntington Ave., 31st Floor

  	
   

  
	
   

  	
   

  	
  Boston,
  MA 02199

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  978,953.97

  	
   

  	
  165,819

  	
   

  	
  58,037

  	
   

  
								

 

[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:

  	
  /s/
  Luke Evnin

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Luke
  Evnin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  111
  Huntington Ave., 31st Floor

  	
   

  
	
   

  	
   

  	
  Boston,
  MA 02199

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  306,906.48

  	
   

  	
  51,985

  	
   

  	
  18,195

  	
   

  
								

 

[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:

  	
  /s/
  Luke Evnin

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Luke
  Evnin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  111
  Huntington Ave., 31st Floor

  	
   

  
	
   

  	
   

  	
  Boston,
  MA 02199

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price

  	
  $

  	
  2,780,725.35

  	
   

  	
  471,010

  	
   

  	
  164,854

  	
   

  
								

 

[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 (QP), L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  Matt Zuga

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matt
  Zuga

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member of Red Abbey

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Venture Partners, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  2330
  West Topper Road, Ste 330

  	
   

  
	
   

  	
   

  	
  Baltimore,
  MD 21903

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  756,105.05

  	
   

  	
  128,072

  	
   

  	
  44,825

  	
   

  
								

 

[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, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  Matt Zuga

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matt
  Zuga

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member of Red Abbey

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Venture Partners, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  2330
  West Topper Road, Ste 330

  	
   

  
	
   

  	
   

  	
  Lutherville,
  MD 21013

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  210,356.54

  	
   

  	
  35,631

  	
   

  	
  12,471

  	
   

  
								

 

[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 CEO’s Fund, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  Matt Zuga

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matt
  Zuga

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member of Red Abbey

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Venture Partners, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (General Partner)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  2330
  West Topper Road, Ste 330

  	
   

  
	
   

  	
   

  	
  Baltimore,
  MD 21013

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  41,001.58

  	
   

  	
  6,945

  	
   

  	
  2,431

  	
   

  
								

 

[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)

  	
   

  	
  Special
  Situations Fund III, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  David Greenhouse

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  David
  Greenhouse

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  153
  East 53rd Street, 55th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10022

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  805,271.50

  	
   

  	
  136,400

  	
   

  	
  47,740

  	
   

  
								

 

[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)

  	
   

  	
  Special
  Situations Cayman Fund, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  David Greenhouse

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  David
  Greenhouse

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  153
  East 53rd Street, 55th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10022

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  201,317.88

  	
   

  	
  34,100

  	
   

  	
  11,935

  	
   

  
								

 

[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)

  	
   

  	
  Special
  Situations Private Equity Fund, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  David Greenhouse

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  David
  Greenhouse

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  153
  East 53rd Street, 55th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10022

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  1,006,589.38

  	
   

  	
  170,500

  	
   

  	
  59,675

  	
   

  
								

 

[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, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  Craig L. Slutzkin

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Craig
  L. Slutzkin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact
  DLJ LBO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Plans
  Management Corp. II, its

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  United
  States

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  11
  Madison Avenue, 13th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10010

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  86,655.21

  	
   

  	
  14,678

  	
   

  	
  5,137

  	
   

  
								

 

[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, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  Craig L. Slutzkin

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Craig
  L. Slutzkin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact
  DLJ Capital

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corp.,
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  United
  States

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  11
  Madison Ave., 13th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10010

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  7,480

  	
   

  	
  1,267

  	
   

  	
  443

  	
   

  
								

 

[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, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  Craig L. Slutzkin

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Craig
  L. Slutzkin

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney-in-Fact
  DLJ Capital

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Corp.,
  its General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  11
  Madison Ave., 13th Floor

  	
   

  
	
   

  	
   

  	
  New
  York, NY 10010

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  1,898,049.77

  	
   

  	
  321,499

  	
   

  	
  112,525

  	
   

  
								

 

[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)

  	
   

  	
  Tang
  Capital Partners, L.P.

  	
   

  
	
   

  	
   

  	
  Print
  name of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
  By:

  	
  /s/
  Kevin C. Tang

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Kevin
  C. Tang

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  jurisdiction of organization of entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:
  

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
  4401
  Eastgate Mall

  	
   

  
	
   

  	
   

  	
  San
  Diego, CA 92121

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  COMMON SHARES

  	
   

  	
  WARRANT SHARES

  	
   

  
	
  Purchase Price 

  	
  $

  	
  1,003,637.50

  	
   

  	
  170,000

  	
   

  	
  59,500

  	
   

  
								

 

[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 October 5, 2005.

 

 

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. 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
– Registration Statement Questionnaire:

 

Provide the information requested by the Registration Statement Questionnaire.

 

4.                                      Exhibit B-3
– 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.

 

5.                                      Return
the signed Securities Purchase Agreement to:

 

Charles J. Bair, Esq.

Cooley Godward 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
Securities Purchase Agreement, the Purchaser:

 

(i)                                    must
deliver a current prospectus to the buyer; provided, however,
that, if Rule 172 is then in effect, such Purchaser must confirm that a current
prospectus is deemed to be delivered to such buyer; 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.

 

 

B.1.

 

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:

  	
   

  	
   

  

 

 

B-1.1

 

EXHIBIT B-2

 

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.

 

 

B-2.1.

 

1.                                      As
of SEPTEMBER 30, 2005, 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 SEPTEMBER 30, 2005, 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

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

As of NOVEMBER 29, 2005, 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

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

B-2.2.

 

(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.

 

 

 

 

 

 

B-2.3.

 

C.                                    NASD Questions

 

1.                                      Are you (i) a “member”(1)
of the National Association of Securities Dealers, Inc. (the “NASD”), (ii) an “affiliate”(2)
of a member of the NASD, (iii) a “person associated with a member” or an “associated
person of a member”(3) of the NASD 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 o                     No
o

 

Description:

 

 

(1)                                  NASD defines a “member” as any broker or
dealer admitted to membership in the NASD, 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 NASD 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 NASD.

(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 NASD or any other
broker/dealer. 

 

 

B-2.4.

 

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 o                     No
o

 

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 NASD, affiliate of a member of the NASD, person associated with a
member or associated person of a member of the NASD 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 o                     No
o

 

(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.

 

 

B-2.5.

 

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)

  

 

 

B-2.6.

 

EXHIBIT B-3

 

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.

 

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

 

o  
(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;

 

o  
(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.

 

 

B-3.1.

 

EXHIBIT B-3

 

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:

 

 ̈                                    Limited
Partnership

 

 ̈                                    General
Partnership

 

 ̈                                    Corporation

 

 ̈                                    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.)

 

 ̈                                    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.)

 

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

 

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

 

 

B-3.2.

 

(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.

 

o   (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;

 

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

 

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

 

o   (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;

 

o   (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;

 

o   (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;

 

o   (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;

 

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

 

o   (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;

 

o   (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;

 

 

B-3.3.

 

o   (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

  	
   

  

 

 

B-3.4.

 

EXHIBIT C

 

OPINION OF COMPANY COUNSEL

 

	
   

  	
  ATTORNEYS AT LAW

  	
  Broomfield, CO

  
	
   

  	
   

  	
  720 566-4000

  
	
   

  	
  4401 Eastgate Mall

  	
  Palo Alto, CA

  
	
   

  	
  San Diego, CA

  	
  650 843-5000

  
	
   

  	
  92121-1909

  	
  Reston, VA

  
	
   

  	
  Main

  	
  858 550-6000

  	
  703 456-8000

  
	
   

  	
  Fax

  	
  858 550-6420

  	
  San Francisco, CA

  
	
   

  	
   

  	
  415 693-2000

  
	
  September 30, 2005

  	
  www.cooley.com

  	
  Washington, DC

  
	
   

  	
   

  	
  202 842-7800

  
	
   

  	
   

  	
   

  
	
   

  	
  STEVEN M. PRZESMICKI

  	
   

  
	
  To the Purchasers Named on Exhibit A Hereto

  	
  (858) 550-6070

  	
   

  
	
   

  	
  przes@cooley.com

  	
   

  

 

Re:                             Metabasis
Therapeutics, Inc.

 

Ladies and Gentlemen:

 

We have acted as counsel for Metabasis Therapeutics,
Inc. a Delaware corporation (the “Company”),
in connection with the issuance
and sale of (i) an aggregate of 7,000,000 shares (the “Shares”)
of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and (ii) warrants
(the “Warrants”) to purchase up to an
aggregate of 2,450,000 shares of Common Stock (the “Warrant
Shares”), to the Purchasers at the Closing under the Securities
Purchase Agreement dated as of September 30, 2005 (the “Purchase
Agreement”).  We are
rendering this opinion pursuant to Section 5.4 of the Purchase Agreement.  Capitalized terms used but not defined herein
have the respective meanings given to them in the Purchase Agreement.

 

In connection with this opinion, we have examined and
relied upon the representations and warranties as to factual matters contained
in and made pursuant to the Purchase Agreement by the various parties and
originals or copies certified to our satisfaction, of such records, documents,
certificates, opinions, memoranda and other instruments as in our judgment are
necessary or appropriate to enable us to render the opinion expressed below.

 

As to certain factual matters, we have relied upon a
certificate executed by officers of the Company and have not sought to
independently verify such matters.  Where
we render an opinion “to our knowledge” or concerning an item “of which we are
aware” or our opinion otherwise refers to our knowledge, it is based solely
upon (i) an inquiry of attorneys within this firm who have represented the
Company in this transaction, (ii) receipt of a certificate executed by officers
of the Company covering such matters and (iii) such other investigation, if
any, that we specifically set forth herein.

 

In rendering this opinion, we have assumed: the
authenticity of all documents submitted to us as originals; the conformity to
originals of all documents submitted to us as copies; the accuracy,
completeness and authenticity of certificates of public officials; the due
authorization, execution and delivery of all documents (except the due
authorization, execution and delivery by the Company of the Purchase Agreement
and the Warrants (together, the “Financing Agreements”)),
where authorization, execution and delivery are prerequisites to the
effectiveness of such documents; and the genuineness and authenticity of all signatures
on original documents (except the signatures on behalf of the Company on the
Financing Agreements).  We have also
assumed:  that all individuals executing
and delivering documents had the legal capacity to so execute and deliver; that
the Financing Agreements are obligations binding upon the parties thereto other
than the

 

 

Company; that the parties to the Financing Agreements
other than the Company have filed any required California franchise or income
tax returns and have paid any required California franchise or income taxes;
and that there are no extrinsic agreements or understandings among the parties
to the Financing Agreements that would modify or interpret the terms of any of
the Financing Agreements or the respective rights or obligations of the parties
thereunder.

 

Our opinion is expressed only with respect to the
federal laws of the United States of America, the laws of the State of California and the General Corporation Law of
the State of Delaware. We express no opinion as to whether the laws of
any particular jurisdiction apply, and no opinion to the extent that the laws
of any jurisdiction other than those identified above are applicable to the
subject matter hereof.

 

We are not rendering any opinion as to any statute,
rule, regulation, ordinance, decree or decisional law relating to antitrust,
banking, land use, environmental, pension, employee benefit, tax, fraudulent
conveyance, usury, laws governing the legality of investments for regulated
entities, regulations T, U or X of the Board of Governors of the Federal
Reserve System or local law. 
Furthermore, we express no opinion with respect to compliance with
antifraud laws, rules or regulations relating to securities or the offer and
sale thereof; compliance with fiduciary duties by the Company’s Board of
Directors or stockholders; compliance with safe harbors for disinterested Board
of Director or stockholder approvals; compliance with state securities or blue
sky laws except as specifically set forth below; compliance with the Investment
Company Act of 1940; or compliance with laws that place limitations on
corporate distributions.

 

With regard to our opinion in paragraphs 1 and 3 below with respect to
the good standing of the Company, we have relied solely upon certificates of
the Secretaries of State of the indicated jurisdictions as of a recent date.

 

With regard to our opinion in paragraph 3 below with respect to the
Company’s qualification to do business as a foreign corporation, we have based
our opinion solely upon a certificate executed by officers of the Company as to
the states in which the Company maintains an office, has employees or owns or
leases property, and an examination of the status of the Company in such
states.

 

With regard to our opinion in paragraph 6 below, we express no opinion
to the extent that, notwithstanding its current reservation of shares of Common
Stock, future issuance of securities of the Company and/or antidilution
adjustments to outstanding securities of the Company cause the Warrants to be
exercisable for more shares of Common Stock than the number that then remain
authorized but unissued.

 

With regard to our opinion in paragraph 9 below, our
opinion is expressed only with respect to the offer and sale of the Shares and
the Warrants without regard to any offers or sales of securities occurring
prior to or subsequent to the date hereof.

 

2

 

On the basis of the foregoing, in reliance thereon and
with the foregoing qualifications, we are of the opinion that:

 

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

 

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

 

3.                                      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.

 

4.                                      The
Company has the corporate power to execute, deliver and perform its obligations
under the Financing Agreements.

 

5.                                      Each
of the Financing Agreements 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 7.4 of the Purchase 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.

 

6.                                      The
Shares have been duly authorized, and upon issuance and delivery against
payment therefor in accordance with the terms of the Purchase Agreement, the
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.

 

7.                                      The
execution and delivery of the Financing Agreements by the Company and the
issuance of the Shares and the Warrants pursuant thereto 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 Financing Agreements 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.

 

3

 

8.                                      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 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).

 

9.                                      The
offer and sale of the 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.

 

This opinion is intended solely for your benefit and is not to be made
available to or be relied upon by any other person, firm, or entity without our
prior written consent.

 

Sincerely,

 

	
  COOLEY GODWARD LLP

  
	
   

  
	
   

  
	
  Steven M. Przesmicki

  

 

4

 

EXHIBIT A

 

PURCHASERS

 

 

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, IF RULE
172 UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, IS THEN IN EFFECT, THE HOLDER HAS CONFIRMED THAT A CURRENT PROSPECTUS
IS DEEMED TO BE DELIVERED IN CONNECTION WITH SUCH RESALE; 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 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 shares of the Common Stock of Metabasis

  
	
   

  	
  [fill in name of selling
  securityholder]

  	
   

  
	
  Therapeutics, Inc. and
  that such

  	
   

  	
   shares were
  sold on either (i) in file number [             ],
  in which case

  
	
   

  	
  [date]

  	
   

  
	
  accordance with the registration  statement on Form S-3 with the selling
  securityholder certifies that such selling securityholder has

  
				

delivered a current prospectus in connection with such
sale; provided, however, that, if Rule 172
under the Securities Act of 1933 is then in effect, such selling securityholder
has confirmed that a current prospectus is deemed to be delivered in connection
with such sale, 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:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]