Document:

Form of Restricted Stock Unit Agreement

 Exhibit 10.2 
 EAGLE MATERIALS INC. 
 INCENTIVE PLAN 
 RESTRICTED STOCK UNIT AGREEMENT 
 This restricted stock unit agreement (the “Restricted Stock Unit Agreement” or “Agreement”) entered into between EAGLE MATERIALS INC., a Delaware corporation (the
“Company”), and
                                        
(the “Grantee”), an employee of the Company or its Affiliates, with respect to a right (the “Award”) of              restricted stock units (“Restricted
Stock Units”) representing shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), granted to the Grantee under the Eagle Materials Inc. Incentive Plan, as amended (the “Plan”), on
August 21, 2008 (the “Award Date”), such number of units subject to adjustment as provided in the Plan, and further subject to the following terms and conditions: 
  

	 	1.	Relationship to Plan. 

 This
Award is subject to all of the terms, conditions and provisions of the Plan and administrative interpretations thereunder, if any, which have been adopted by the Company’s Compensation Committee (“Committee”) and are in effect on the
date hereof. Except as defined herein, capitalized terms shall have the same meanings ascribed to them under the Plan. For the purposes of this Restricted Stock Unit Agreement: 
 (a) “ARFR” means the Company’s Accidents Recordable Frequency Rate, as certified by the Committee consistent with OSHA/MSHA
definitions of such term. 
 (b) “Disability” shall have the meaning assigned to such term under the Plan, however, in the
case of a Director, for purposes of this Agreement, Disability shall be determined by the Committee. 
 (c) “EBITDA” means
the Company’s earnings before interest, taxes, depreciation and amortization, as certified by the Committee. 
 (d) “Vesting
Date” means March 31, 2009. 
 (e) “Vesting Period” means the period commencing on July 1, 2008 and
ending on March 31, 2009. 
  

	 	2.	Vesting and Payment. 

 (a)
EBITDA Vesting Schedule.              Restricted Stock Units of the Award (the “EBITDA RSUs”) shall vest in accordance with the schedule attached to this
Agreement as Exhibit A. 
 At the end of the Vesting Period, if any EBITDA RSUs remain unvested, such EBITDA RSUs shall be forfeited.

 The Grantee must be in continuous employment with the Company or any of its Affiliates or serve as a Director from the Award Date through
the Vesting Date in order for the EBITDA RSUs to vest as provided in this Section 2(a). 

 (b) ARFR Vesting Schedule.
             Restricted Stock Units of the Award (the “ARFR RSUs”) shall vest in accordance with the schedule attached to this Agreement as Exhibit B.

 At the end of the Vesting Period, if any ARFR RSUs remain unvested, such ARFR RSUs shall be forfeited. 
 The Grantee must be in continuous employment with the Company or any of its Affiliates or serve as a Director from the Award Date through the Vesting
Date in order for the ARFR RSUs to vest as provided in this Section 2(b). 
 (c) Payment. The Restricted Stock Units that
vest in accordance with the provisions of Section 2(a) or 2(b) (including Dividend Equivalent Payments under Section 4 hereof) shall become payable on the first anniversary of the Award Date (the “Anniversary Date”). The Grantee
must be in continuous employment with the Company or any of its Affiliates or serve as a Director from the Award Date through the Anniversary Date in order for any Restricted Stock Units to become payable on the Anniversary Date; provided, that if
the Grantee’s employment and service as a Director terminates by reason of death or Disability between the Vesting Date and the Anniversary Date, the Restricted Stock Units (including Dividend Equivalent Payments under Section 4 hereof)
shall be payable on the Anniversary Date. 
 (d) Calculations. The Committee shall have the sole authority to approve the
calculation of EBITDA and ARFR for purposes of vesting, and its approval of such calculations shall be final, conclusive, and binding on all parties. 
 (e) Change in Control. This Award shall become fully vested and payable without regard to the limitations set forth in subparagraph (a) or (b) above, provided that the Grantee has been in
continuous employment with the Company or any of its Affiliates or served as a Director since the Award Date, upon the occurrence of a Change in Control (as defined in Exhibit C to this Agreement), and fully payable (without regard to
the limitations set forth in subparagraph (c) above) upon a Change in Control with respect to any Restricted Stock Units which have not been theretofore forfeited, unless either (i) the Committee determines that the terms of the
transaction giving rise to the Change in Control provide that the Award is to be replaced within a reasonable time after the Change in Control with an award of equivalent value of shares of the surviving parent corporation or (ii) the Award is
to be settled in cash in accordance with the last sentence of this subparagraph (e). Upon a Change in Control, pursuant to Section 16 of the Plan, the Company may, in its discretion, settle the Award by a cash payment that the Committee shall
determine in its sole discretion is equal to the fair market value of the Award on the date of such event. 
 (f) Business
Acquisitions. In the event the Company makes an acquisition or disposition (e.g. assets, stock or other equity interest), then the Compensation Committee may, in its discretion, make any adjustments to: (1) the method of calculating
EBITDA and/or ARFR; or (2) the structure of vesting tables, as it deems appropriate to fulfill the intents and purposes of the vesting criteria, taking into consideration the effect of the acquisition or disposition on vesting opportunities.

  

	 	3.	Forfeiture of Award. 

 Except
as provided in any other agreement between the Grantee and the Company, if the Grantee’s employment and service as Director terminates (a) for any reason prior to the Vesting Date, or (b) for reasons other than death or Disability
between the Vesting Date and the Anniversary Date, the entire Award shall be forfeited. In the event Grantee’s employment and service as Director terminates by reason of death or Disability between the Vesting Date and the Anniversary Date, the
Restricted Stock Units (including Dividend Equivalent Payments under Section 4 hereof) shall not be forfeited, but shall be payable on the Anniversary Date in accordance with Section 2(c) of this Agreement. 
  

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	 	4.	Dividend Equivalent Payments. 

 During the period of time between the Award Date and the earlier of the date the Restricted Stock Units are paid or settled, the Restricted Stock Units will be evidenced by book entry registration. As of each date that dividends are paid
with respect to Common Stock after the end of the Vesting Period, the Grantee shall have a number of additional Restricted Stock Units credited to his or her account with respect to such dividends. The additional Restricted Stock Units credited with
respect to such dividends shall be equal to: (i) the amount of the dividend paid per share of Common Stock as of such dividend payment date multiplied by the number of vested Restricted Stock Units credited to the Grantee’s account
immediately prior to such dividend payment date; divided by (ii) the Fair Market Value of the Common Stock on such dividend payment date. 
  

	 	5.	Delivery of Shares. 

 The
Company shall not be obligated to deliver any shares of Common Stock if counsel to the Company determines that such sale or delivery would violate any applicable law or any rule or regulations of any governmental authority or any rule or regulation
of, or agreement of the Company with, any securities exchange or association upon which the Common Stock is listed or quoted. The Company shall in no event be obligated to take any affirmative action in order to cause the delivery of shares of
Common Stock to comply with any such law, rule, regulations or agreement. 
  

	 	6.	Notices. 

 Notice or other
communication to the Company with respect to this Award must be made in the following manner, using such forms as the Company may from time to time provide: 
 (a) by electronic means as designated by the Committee; 
 (b) by registered or certified United States mail,
postage prepaid, to Eagle Materials Inc., Attention: Secretary, 3811 Turtle Creek Blvd, Suite 1100, Dallas, Texas 75219; or 
 (c) by hand
delivery or otherwise to Eagle Materials Inc., Attention: Secretary, 3811 Turtle Creek Blvd, Suite 1100, Dallas, Texas 75219. 
 Notwithstanding the foregoing, in the event that the address of the Company is changed, any such notice shall instead be made pursuant to the foregoing provisions at the Company’s current address. 
 Any notices provided for in this Restricted Stock Unit Agreement or in the Plan shall be given in writing or by such electronic means, as permitted by
the Committee, and shall be deemed effectively delivered or given upon receipt or, in the case of notices delivered by the Company to the Grantee, five days after deposit in the United States mail, postage prepaid, addressed to the Grantee at the
address specified at the end of this Agreement or at such other address as the Grantee hereafter designates by written notice to the Company. 
  

	 	7.	Assignment of Award. 

 Except
as otherwise permitted by the Committee, the Grantee’s rights under the Plan and this Restricted Stock Unit Agreement are personal; no assignment or transfer of the Grantee’s rights under and interest in this Award may be made by the
Grantee other than by will, by beneficiary designation, by the laws of descent and distribution or by a qualified domestic relations order; and this Award is payable only to the Grantee during his lifetime except as otherwise expressly provided in
this Agreement. 
  

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 After the death of the Grantee, payment of the Award shall be permitted only to the Grantee’s
designated beneficiary or, in the absence of a designated beneficiary, the Grantee’s executor or the personal representative of the Grantee’s estate (or by his assignee, in the event of a permitted assignment) to the extent that the Award
was payable on the date of the Grantee’s death. 
  

	 	8.	Stock Certificates. 

 Certificates representing the Common Stock issued pursuant to the Award will bear all legends required by law and necessary or advisable to effectuate the provisions of the Plan and this Award. The Company may place a “stop
transfer” order against shares of the Common Stock issued pursuant to this Award until all restrictions and conditions set forth in the Plan or this Agreement and in the legends referred to in this Section 8 have been complied with.

  

	 	9.	Withholding. 

 No certificates
representing shares of Common Stock awarded hereunder shall be delivered to or in respect of a Grantee unless the amount of all federal, state and other governmental withholding tax requirements imposed upon the Company with respect to the issuance
of such shares of Common Stock has been remitted to the Company or unless provisions to pay such withholding requirements have been made to the satisfaction of the Committee. The Committee may make such provisions as it may deem appropriate for the
withholding of any taxes which it determines is required in connection with this Award. The Grantee may pay all or any portion of the taxes required to be withheld by the Company or paid by the Grantee in connection with this Award by delivering
cash, or, with the Committee’s approval, by electing to have the Company withhold shares of Common Stock, or by delivering previously owned shares of Common Stock, having a Fair Market Value equal to the amount required to be withheld or
paid. The Grantee must make the foregoing election on or before the date that the amount of tax to be withheld is determined. 
  

	 	10.	Shareholder Rights. 

 The
Grantee shall have no rights of a shareholder with respect to shares of Common Stock subject to the Award unless and until such time as the Award has been paid pursuant to Section 2 and shares of Common Stock have been transferred to the
Grantee. 
  

	 	11.	Successors and Assigns. 

 This
Agreement shall bind and inure to the benefit of and be enforceable by the Grantee, the Company and their respective permitted successors and assigns (including personal representatives, heirs and legatees), except that the Grantee may not assign
any rights or obligations under this Agreement except to the extent and in the manner expressly permitted herein. 
  

	 	12.	No Employment Guaranteed. 

 No
provision of this Restricted Stock Unit Agreement shall confer any right upon the Grantee to continued employment with the Company or any Affiliate. 
  

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	 	13.	Governing Law. 

 This
Restricted Stock Unit Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Texas. 
  

	 	14.	Amendment. 

 This Agreement
cannot be modified, altered or amended except by an agreement, in writing, signed by both the Company and the Grantee. 
  

					
		 	EAGLE MATERIALS INC.
			
	Date:                     	 	By:	 	  

		 	Name:	 	Steven R. Rowley
		 	Title:	 	President and CEO

 The Grantee hereby accepts the foregoing Restricted Stock Unit Agreement, subject to the terms and
provisions of the Plan and administrative interpretations thereof referred to above. 
  

			
		 	GRANTEE:
		
	Date:                     	 	  

		 	[Name]
		 	Eagle Materials Inc.
		 	3811 Turtle Creek Blvd.
		 	Suite 1100
		 	Dallas, Texas 75219

  

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 EXHIBIT A 
 EBITDA RSUs Vesting Schedule 
 [intentionally omitted] 
  

 A-1 

 EXHIBIT B 
 ARFR RSUs Vesting Schedule 
 [intentionally omitted] 
  

 B-1 

 EXHIBIT C 
 Change in Control 
 For the purpose of this Agreement, a “Change in Control” shall mean the
occurrence of any of the following events: 
 (a) The acquisition by any Person of beneficial ownership of securities of the Company
(including any such acquisition of beneficial ownership deemed to have occurred pursuant to Rule 13d-5 under the Exchange Act) if, immediately thereafter, such Person is the beneficial owner of (i) 50% or more of the total number of outstanding
shares of any single class of Company Common Stock or (ii) 40% or more of the total number of outstanding shares of all classes of Company Common Stock, unless such acquisition is made (a) directly from the Company in a transaction
approved by a majority of the members of the Incumbent Board or (b) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; 
 (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board (or who is otherwise designated as a member of the Incumbent Board by such a vote) shall be considered as though such individual were a member of the Incumbent Board, except that any such individual shall not be
considered a member of the Incumbent Board if his or her initial assumption of office occurs as a result of either an actual or threatened election contest (as such term is used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or
other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; 
 (c) The consummation of a
Business Combination, unless, immediately following such Business Combination, (i) more than 50% of both the total number of then outstanding shares of common stock of the parent corporation resulting from such Business Combination and the
combined voting power of the then outstanding voting securities of such parent corporation entitled to vote generally in the election of directors will be (or is) then beneficially owned, directly or indirectly, by all or substantially all of the
Persons who were the beneficial owners, respectively, of the outstanding shares of Company Common Stock immediately prior to such Business Combination in substantially the same proportions as their ownership immediately prior to such Business
Combination of the outstanding shares of Company Common Stock, (ii) no Person (other than any employee benefit plan (or related trust) of the Company or any corporation resulting from such Business Combination) beneficially owns, directly or
indirectly, 40% or more of the total number of then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation entitled to
vote generally in the election of directors and (iii) at least a majority of the members of the board of directors of the parent corporation resulting from such Business Combination were members of the Incumbent Board immediately prior to the
consummation of such Business Combination; or 
  

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 (d) Approval by the Board and the shareholders of the Company of (i) a complete liquidation or
dissolution of the Company or (ii) a Major Asset Disposition (or, if there is no such approval by shareholders, consummation of such Major Asset Disposition) unless, immediately following such Major Asset Disposition, (A) Persons that were
beneficial owners of the outstanding shares of Company Common Stock immediately prior to such Major Asset Disposition beneficially own, directly or indirectly, more than 50% of the total number of then outstanding shares of common stock and the
combined voting power of the then outstanding shares of voting stock of the Company (if it continues to exist) and of the Acquiring Entity in substantially the same proportions as their ownership immediately prior to such Major Asset Disposition of
the outstanding shares of Company Common Stock; (B) no Person (other than any employee benefit plan (or related trust) of the Company or such entity) beneficially owns, directly or indirectly, 40% or more of the then outstanding shares of
common stock or the combined voting power of the then outstanding voting securities of the Company (if it continues to exist) and of the Acquiring Entity entitled to vote generally in the election of directors and (C) at least a majority of the
members of the Board of the Company (if it continues to exist) and of the Acquiring Entity were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such Major Asset Disposition.

 For purposes of the foregoing, 
  

	 	(i)	the term “Person” means an individual, entity or group; 

  

	 	(ii)	the term “group” is used as it is defined for purposes of Section 13(d)(3) of the Exchange Act; 

  

	 	(iii)	the terms “beneficial owner”, “beneficial ownership” and “beneficially own” are used as defined for purposes of Rule 13d-3 under the Exchange Act;

  

	 	(iv)	the term “Business Combination” means (x) a merger, consolidation or share exchange involving the Company or its stock or (y) an acquisition by the Company,
directly or through one or more subsidiaries, of another entity or its stock or assets; 

  

	 	(v)	the term “Company Common Stock” shall mean the Common Stock, par value $.01 per share, of the Company; 

  

	 	(vi)	the term “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

  

	 	(vii)	the phrase “parent corporation resulting from a Business Combination” means the Company if its stock is not acquired or converted in the Business Combination and otherwise
means the entity which as a result of such Business Combination owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries; 

  

 C-2 

	 	(viii)	the term “Major Asset Disposition” means the sale or other disposition in one transaction or a series of related transactions of 50% or more of the assets of the Company
and its subsidiaries on a consolidated basis; and any specified percentage or portion of the assets of the Company shall be based on fair market value, as determined by a majority of the members of the Incumbent Board; 

  

	 	(ix)	the term “Acquiring Entity” means the entity that acquires the largest portion of the assets sold or otherwise disposed of in a Major Asset Disposition (or the entity, if
any, that owns a majority of the outstanding voting stock of such acquiring entity entitled to vote generally in the election of directors or members of a comparable governing body); and 

  

	 	(x)	the phrase “substantially the same proportions,” when used with reference to ownership interests in the parent corporation resulting from a Business Combination or in an
Acquiring Entity, means substantially in proportion to the number of shares of Company Common Stock beneficially owned by the applicable Persons immediately prior to the Business Combination or Major Asset Disposition, but is not to be construed in
such a manner as to require that the same ratio or number of shares of such parent corporation or Acquiring Entity be issued, paid or delivered in exchange for or in respect of the shares of each class of Company Common Stock.

  

 C-3Form of Stand-Alone Stock Option Agreement

 Exhibit 10.1 
 AKESIS PHARMACEUTICALS, INC. 
 STAND-ALONE STOCK OPTION AGREEMENT 
  

	I.	NOTICE OF STOCK OPTION GRANT 

  

					
	Name:	  	 	  	
			
	Address:	  	 	  	
		  	 	  	

 You have been granted a Nonstatutory Stock Option to purchase Common Stock of the Company, subject
to the terms and conditions of this Agreement, as follows: 
  

			
		
	 Date of Grant
	  	November 3, 2008
		
	 Vesting Commencement Date
	  	November 3, 2008
		
	 Exercise Price per Share
	  	$0.22
		
	 Total Number of Shares Granted
	  	 
		
	 Total Exercise Price
	  	November 3, 2018
		
	 Term/Expiration Date:
	  	 

 Vesting Schedule: 
 This Option will vest and may be exercised, in whole or in part, in accordance with the following schedule: 
 1/36th of the Shares subject to the Option shall vest each month following the Vesting Commencement Date, so that the Option will be fully vested three
(3) years from the Vesting Commencement Date, subject to the Optionee continuing to be a Service Provider on such dates. 
 Notwithstanding the foregoing, 100% of the Shares subject to this Option will fully vest and become exercisable upon a Change of Control. For purposes herein, “Change of Control” means the occurrence of any of the following
events: (i) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; (ii) the consummation of a merger or consolidation of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or
its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation (provided that the sale by
the Company of its securities for the purposes of raising additional funds shall not constitute 

 
a Change of Control hereunder); or (iii) the consummation of the sale or disposition by the Company for aggregate gross proceeds to the Company of no
less than $50,000,000 of (a) one of the two issued RX patents held by the Company as of the date hereof, or (b) the pending RX patent held by the Company as of the date hereof, as approved by the Company’s board of directors.

 Termination Period: 
 Subject to the provisions of Section 10(c) of the Agreement, this Option may be exercised for three (3) months after Optionee ceases to be a Service Provider in accordance with Section 7 of this Agreement. Upon the death or
Disability of the Optionee, this Option may be exercised for one (1) year after the Optionee ceases to be a Service Provider in accordance with Sections 8 and 9 of this Agreement. In no event will this Option be exercised later than the
Term/Expiration Date provided above. 
  

	II.	AGREEMENT 

 1. Definitions. As used herein,
the following definitions will apply: 
 (a) “Agreement” means this stock option agreement between the Company and
Optionee evidencing the terms and conditions of this Option. 
 (b) “Applicable Laws” means the requirements
relating to the administration of stock options under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any
foreign country or jurisdiction that may apply to this Option. 
 (c) “Board” means the Board of Directors of
the Company or any committee of the Board that has been designated by the Board to administer this Agreement. 
 (d)
“Change of Control” means the occurrence of any of the following events: 
 (1) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing
fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; 
 (2) the approval by the stockholders of the Company of a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; 
 (3) the approval by stockholders of the Company of a merger or consolidation of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation. 
  

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 (e) “Code” means the Internal Revenue Code of 1986, as amended.

 (f) “Common Stock” means the common stock of the Company. 
 (g) “Company” means Akesis Pharmaceuticals, Inc., a Nevada corporation. 
 (h) “Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render
services to such entity. 
 (i) “Director” means a member of the Board. 
 (j) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 
 (k) “Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of
the Company. An Employee will not cease to be such in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor.
Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company. 
 (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (m) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
 (1) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value will be
the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems
reliable; 
 (2) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value will be the mean between the high bid and low asked prices for the Common Stock on the day of determination; or 
 (3) In the absence of an established market for the Common Stock, the Fair Market Value thereof will be determined in good faith by the Board. 
 (n) “Nonstatutory Stock Option” means an Option not intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code and the regulations promulgated thereunder. 
  

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 (o) “Notice of Grant” means a written notice, in Part I of this
Agreement, evidencing certain terms and conditions of this Option grant. The Notice of Grant is part of the Option Agreement. 
 (p) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (q) “Option” means this stock option. 
 (r) “Optioned Stock” means the Common Stock subject to this Option. 
 (s) “Optionee” means the person named in the Notice of Stock Option Grant or such person’s successor. 
 (t) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e)
of the Code. 
 (u) “Service Provider” means an Employee, Director or Consultant. 
 (v) “Share” means a share of the Common Stock, as adjusted in accordance with Section 11 of this Agreement.

 (w) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined
in Section 424(t) of the Code. 
 2. Grant of Option. The Board hereby grants to the Optionee named in the Notice of Grant
attached as Part I of this Agreement the Option to purchase the number of Shares, as set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the “Exercise Price”), subject to the terms and
conditions of this Agreement. 
 3. Exercise of Option. 
 (a) Right to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of
Grant and the applicable provisions of this Agreement. 
 (b) Method of Exercise. This Option is exercisable by
delivery of an exercise notice, in the form attached as Exhibit A (the “Exercise Notice”), which will state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the
“Exercised Shares”), and such other representations and agreements as may be required by the Company. The Exercise Notice will be completed by the Optionee and delivered to the Human Resources Specialist of the Company or such other person
as the Company may designate. The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares. This Option will be deemed to be exercised upon receipt by the Company of such fully executed Exercise
Notice accompanied by such aggregate Exercise Price. 
  

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 (c) Legal Compliance. No Shares will be issued pursuant to the exercise of this
Option unless such issuance and exercise comply with Applicable Laws. Assuming such compliance, for income tax purposes the Exercised Shares will be considered transferred to the Optionee on the date the Option is exercised with respect to such
Exercised Shares. 
 4. Method of Payment. Payment of the aggregate Exercise Price will be by any of the following, or a combination
thereof, at the election of the Optionee: 
 (a) cash or check; or 
 (b) with the Board’s consent, consideration received by the Company under a cashless exercise program implemented by the Company.

 5. Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent
or distribution and may be exercised during the lifetime of Optionee only by the Optionee. The terms of this Agreement will be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
 6. Term of Option. This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in
accordance with the terms of this Agreement. 
 7. Termination of Relationship as a Service Provider. If the Optionee ceases to be a
Service Provider (other than for death or Disability), this Option may be exercised for a period of three (3) months after the date of such termination (but in no event later than the expiration date of this Option as set forth in the Notice of
Grant) to the extent that the Option is vested on the date of such termination. To the extent that the Optionee does not exercise this Option within the time specified herein, the Option will terminate. 
 8. Disability of Optionee. If the Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, this Option may be
exercised for a period of twelve (12) months after the date of such termination (but in no event later than the expiration date of this Option as set forth in the Notice of Grant) to the extent that the Option is vested on the date of such
termination. To the extent that Optionee does not exercise this Option within the time specified herein, the Option will terminate. 
 9.
Death of Optionee. If the Optionee dies while a Service Provider, the Option may be exercised at any time within twelve (12) months following the date of death (but in no event later than the expiration date of this Option as set forth
in the Notice of Grant), by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent that the Optionee was entitled to exercise the Option at the date of death. If,
after death, the Optionee’s estate or a person who acquired the right to exercise the Option by bequest or inheritance does not exercise the Option within the time specified herein, the option will terminate. 
  

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 10. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 
 (a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or
other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate
structure of the Company affecting the Shares occurs, the Board, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under this Option, may (in its sole discretion) adjust the number,
class, and Exercise Price of Shares covered by this Option. 
 (b) Dissolution or Liquidation. In the event of the
proposed dissolution or liquidation of the Company, the Board will notify Optionee as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, the Option will terminate
immediately prior to the consummation of such proposed 
 (c) Change of Control. In the event of a Change of Control,
the Option will be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the Option, the
Optionee will fully vest in and have the right to exercise the Option as to all of the Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable. If the Option becomes fully vested and exercisable in lieu of
assumption or substitution in the event of a Change of Control, the Board will notify the Optionee in writing or electronically that the Option will be fully exercisable for a period of time determined by the Board, and the Option will terminate
upon the expiration of such period. For the purposes of this paragraph, the Option will be considered assumed if, following the Change of Control, the option confers the right to purchase or receive, for each Share subject to the Option immediately
prior to the Change of Control, the consideration (whether stock, cash, or other securities or property) received in the Change of Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were
offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change of Control is not solely common stock of the successor
corporation or its Parent, the Board may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share subject to the Option, to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Change of Control. 
 11. Notices. Any notice to be given to the Company hereunder will be in writing and will be addressed to the Company at its then current principal executive office or to such other address as the Company may hereafter designate to
the Optionee by notice as provided in this Section. Any notice to be given to the Optionee hereunder will be addressed to the Optionee at the address set forth beneath his signature hereto, or at such other address as the Optionee may hereafter
designate to the Company by notice as provided herein. A notice will be deemed to have been duly given when personally delivered or mailed by registered or certified mail to the party entitled to receive it. 
  

 -6- 

 12. Withholding Taxes. Optionee agrees to make appropriate arrangements with the Company (or the
Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state, and local income and employment tax withholding requirements applicable to the Option exercise. Optionee acknowledges and agrees that the Company may
refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise. 
 13.
Entire Agreement: Governing Law. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes in their entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. This agreement is governed by the internal substantive laws, but not the choice
of law rules, of California. 
 14. NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES
PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT
ALL, AND WILL NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE. 
 [Remainder of page intentionally left blank] 
  

 -7- 

 By Optionee’s signature and the signature of the Company’s representative below, Optionee and
the Company agree that this Option is granted under and governed by the terms and conditions of this Agreement. Optionee has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to executing this
Agreement and fully understands all provisions of this Agreement. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions relating to this Agreement. Optionee further agrees
to notify the Company upon any change in the residence address indicated below. 
  

					
	OPTIONEE	 		 	AKESIS PHARMACEUTICALS, INC.
			
	  	 		 	  
	Signature	 		 	By
			
	 	 		 	 
	Print Name	 		 	Name
			
	 	 		 	
			
	 	 		 	 
	Residence Address	 		 	Title

  

 -8- 

 EXHIBIT A 
 AKESIS PHARMACEUTICALS, INC. 
 EXERCISE NOTICE 
 Akesis Pharmaceuticals, Inc. 
 888 Prospect Street, Suite 320 
 La Jolla, California 92037 
 Attention: President 
 1. Exercise of Option. Effective as of today,             , 20__, the
undersigned (“Purchaser”) hereby elects to purchase              shares (the “Shares”) of the Common Stock of Akesis Pharmaceuticals, Inc. (the
“Company”) under the option (the “Option”) represented by the Stock Option Agreement dated              (the “Option Agreement”). 
 2. Delivery of Payment. Purchaser herewith delivers to the Company the full purchase price for the Shares together with any required withholding
taxes to be paid in connection with the exercise of the Option. 
 3. Representations of Purchaser. Purchaser acknowledges that
Purchaser has received, read and understood the Option Agreement and agrees to abide by and be bound by its terms and conditions. 
 4.
Rights as Shareholder. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a
stockholder will exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Shares so acquired will be issued to the Purchaser as soon as practicable after exercise of the Option. No adjustment will be made for a
dividend or other right for which the record date is prior to the date of issuance, except as provided in Section 11 of the Option Agreement. 
 5. Tax Consultation. Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice. 
 6. Successors and Assigns. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this Exercise Notice will inure to the benefit of the successors and assigns
of the Company. Subject to the restrictions on transfer herein set forth, this Exercise Notice will be binding upon the Purchaser and his or her heirs, executors, administrators, successors and assigns. 
 7. Interpretation. Any dispute regarding the interpretation of this Exercise Notice will be submitted by the Purchaser or by the Company forthwith
to the Board, which will review such dispute at its next regular meeting. The resolution of such a dispute by the Board will be final and binding on all parties. 

 8. Entire Agreement: Governing Law. The Option Agreement is incorporated herein by reference
together with any documents incorporated by reference therein. This Agreement, and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser. This agreement is governed by
the internal substantive laws, but not the choice of law rules, of California. 
  

					
	Submitted by:	 		 	Accepted by:
			
	OPTIONEE	 		 	AKESIS PHARMACEUTICALS, INC.
			
	 	 		 	 
	Signature	 		 	By
	 	 		 	 
	Print Name	 		 	Title
			
	 	 		 	Address
	 	 		 	888 Prospect Street, Suite 320
	Address	 		 	La Jolla, California 92037
			
		 		 	Date Received: ________________________________________

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