Document:

Separation Agreement and Release

 Exhibit 10.1 
 SEPARATION AGREEMENT AND RELEASE 
 This Separation Agreement and Release
(“Agreement”) is made by and between Edward Wilson (“Employee”) and Akesis Pharmaceuticals, Inc. (“Company”) (collectively referred to as the “Parties”):

 RECITALS 
 WHEREAS,
Employee provided services to the Company pursuant to an Employment Offer Letter dated December 13, 2004 (the “Offer Letter”); 
 WHEREAS, the Company and Employee have entered into a Stand-Alone Stock Option Agreement (the “Stock Option Agreement”) dated January 24, 2005 granting Employee an option to purchase up to
862,499 shares of the Company’s common stock; 
 WHEREAS, Employee executed an Employee Confidentiality and Inventions Assignment
Agreement (the “Propriety Information Agreement”); 
 WHEREAS, Employee intends to terminate his employment with the
Company; and 
 WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions and
demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of, or in any way related to Employee’s relationship with, or separation as an
employee and director from, the Company. 
 NOW THEREFORE, in consideration of the mutual promises made herein, the Company and Employee
hereby agree as follows: 
 1. Consideration. 
 a. Cash. 
 i. Salary. The Company agrees to pay Employee all accrued wages. This payment will be made to Employee within ten (10) business days of the Effective Date of this Agreement. 
 ii. Reimbursements. In addition, the Company agrees to reimburse Employee within ten (10) business days of receipt by the Company,
all expenses properly incurred by Employee on behalf of the Company through the Effective Date of this Agreement. 
 b.
Stock Option Agreement Termination. The Parties agree that as of the Effective Date of this Agreement, the Stand-Alone Stock Option Agreement dated as of January 24, 2005 is hereby cancelled and that all rights to purchase any shares
(including any and all vested shares) are hereby terminated, notwithstanding the terms and conditions of the Stock Option Agreement to the contrary. 

 c. Warrant. The Company shall issue a warrant to Employee in substantially the
form attached hereto as Exhibit A as of the Effective Date of this Agreement to purchase 250,000 shares at an exercise price per share equal to the ten-day trailing average closing price of the Company’s common stock as reported on the
Over-The-Counter Bulletin Board on the date the Board approves such issuance. The aggregate purchase price of the Warrant shall be $2,500.00 payable by Employee to the Company on the date hereof. 
 d. Offer Letter Termination. Other than as set forth herein and the terms that survive termination, the Parties hereby mutually
terminate the Offer Letter. 
 e. Return of Company Property. Employee shall return all of the Company’s property
and confidential and proprietary information in his possession to the Company on the date Employee ceases to be a service provider, except that Employee may keep any property whose purchase Employee and the Company have previously agreed upon. The
Company agrees to sell, and Employee agrees to buy, furniture and equipment from the office of the Company formerly in Phoenix, Arizona currently under the control of Employee, for the purchase price of $100.00. The purchase price of any such
property may be deducted from any cash consideration owed to Employee pursuant to this Section 1. 
 f. Proprietary
Information Agreement. All of the terms of the Proprietary Information Agreement that survive termination shall remain in full force and effect. 
 2. Release of Claims. Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers,
directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations and assigns (the “Releasees”). Employee, on his own behalf, and on
behalf of his respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute or pursue, any claim, complaint, charge, duty,
obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts or facts that have occurred up
until and including the Effective Date of this Agreement including, without limitation, 
 a. any and all claims relating to
or arising from Employee’s relationship with the Company and the termination of that relationship; 
 b. any and all
claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under
applicable state corporate law, and securities fraud under any state or federal law; 
 c. any and all claims for wrongful
discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective 

 
economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false
imprisonment; conversion; workers’ compensation and disability benefits; 
 d. any and all claims for violation of any
federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990; the Fair Labor Standards Act; the Fair Credit Reporting
Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the
Sarbanes-Oxley Act of 2002; the California Family Rights Act; the California Labor Code, except as prohibited by law; the California Workers’ Compensation Act; and the California Fair Employment and Housing Act; 
 e. any and all claims for violation of the federal, or any state, constitution; 
 f. any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; 
 g. any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of
the proceeds received by Employee as a result of this Agreement; and 
 h. any and all claims for attorneys’ fees and
costs. 
 Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the
matters released. This release does not extend to any obligations incurred under this Agreement. 
 3. Acknowledgment of Waiver of Claims
under ADEA. Employee acknowledges that he is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary. Employee
agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release Agreement is in
addition to anything of value to which Employee was already entitled. Employee further acknowledges that he has been advised by this writing that: (a) he should consult with an attorney prior to executing this Agreement; (b) he has
twenty-one (21) days within which to consider this Agreement; (c) he has seven (7) days following his execution of this Agreement to revoke the Agreement; (d) this Agreement shall be effective on the first day after the 7-day
revocation period referred to above has expired, provided Employee has not revoked this Agreement during that time (the “Effective Date”); and (e) nothing in this Agreement prevents or precludes Employee from challenging
or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized by federal law. In the event Employee signs this
Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this Agreement. 

 4. California Civil Code Section 1542. Employee represents that he is not aware of any claims
against any of the Releasees. Employee acknowledges that he has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 Employee, being aware of said code
section, agrees to expressly waive any rights he may have thereunder, as well as under any other statute or common law principles of similar effect. 
 5. No Pending or Future Lawsuits. Employee represents that he has no lawsuits, claims, or actions pending in his name, or on behalf of any other person or entity, against the Company or any of the other
Releasees. Employee also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company or any of the other Releasees. The Company represents that it has no
lawsuits, claims, or actions pending in its name, or on behalf of any other person or entity, against Employee. The Company also represents that it does not intend to bring any claims on its own behalf or on behalf
of any other person or entity against Employee. 
 6. Application for Employment. Employee understands and agrees that, as a condition
of this Agreement, Employee shall not be entitled to any employment with the Company, and Employee hereby waives any right, or alleged right, of employment with the Company. Employee further agrees not to apply for employment with the Company.

 7. No Cooperation. Employee agrees that he will not knowingly encourage, counsel, or assist any attorneys or their clients in the
presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so. Employee agrees both to immediately notify
the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order. 
 8. Non-Disparagement. Employee agrees to refrain from any disparagement, defamation, libel or slander of the Company, or tortious interference
with the contracts and relationships of the Company. All inquiries by potential future employers of Employee will be directed to the Chairman of the Board of Directors or Kevin Kinsella, where appropriate. Upon inquiry, the Company shall only state
the following: Employee’s last position and dates of employment. 
 9. No Admission of Liability. Employee understands and
acknowledges that this Agreement constitutes a compromise and settlement of any and all claims. No action taken by the Company hereto, either previously or in connection with this Agreement, shall be deemed or construed to be: (a) an admission
of the truth or falsity of any potential claims; or (b) an 

 
acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third party. 
 10. Non-Solicitation. Employee agrees that for a period of twelve (12) months immediately following the Effective Date of this Agreement,
Employee shall not directly or indirectly solicit or recruit any of the Company’s employees to leave their employment at the Company. 
 11. Costs. The Parties shall each bear their own costs, attorneys’ fees and other fees incurred in connection with the preparation of this Agreement. 
 12. ARBITRATION. THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SAN
DIEGO COUNTY, BEFORE THE AMERICAN ARBITRATION ASSOCIATION UNDER ITS NATIONAL RULES FOR THE RESOLUTION OF COMMERCIAL DISPUTES AND CALIFORNIA LAW. THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE DECISION OF THE ARBITRATOR
SHALL BE FINAL, CONCLUSIVE AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO ITS ATTORNEY FEES. ALSO, THE PREVAILING PARTY SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY
COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY. 
 13. Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company
and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to bind them to the terms and
conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein. 
 14. No Representations. Employee represents that he has had an opportunity to consult with an attorney, and has carefully read and understands the
scope and effect of the provisions of this Agreement. Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement. 
 15. Severability. In the event that any provision or any portion of any provision hereof becomes or is declared by a court of competent
jurisdiction or arbitrator to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision or portion of provision. 
 16. Attorneys’ Fees. In the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing party shall be entitled to recover its costs and expenses, 

 
including the costs of mediation, arbitration, litigation, court fees, plus reasonable attorneys’ fees, incurred in connection with such an action.

 17. Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning
the subject matter hereof and Employee’s relationship with and separation from the Company as an employee and the events leading thereto and associated therewith, and supersede and replace any and all prior agreements and understandings
concerning the subject matter of this Agreement and Employee’s relationship with the Company as an employee with the exception of the Offer Letter, the Stock Option Agreement, and the Proprietary Agreement. 
 18. No Oral Modification. This Agreement may only be amended in a writing signed by Employee and a duly authorized officer of the Company.

 19. Governing Law. This Agreement shall be governed by the laws of the State of California, without regard for choice-of-law
provisions. 
 20. Counterparts. This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile
shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
 21. Assignment. The rights and obligations of the Employee shall not inure to the benefit of any successors, heirs, executors or administrators. The Company may assign its rights and obligations hereunder to any successor entity or
person. 
 22. Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on
the part or behalf of the Parties hereto, with the full intent of releasing all claims as set forth herein. The Parties acknowledge that: 
  

	 	(a)	They have read this Agreement; 

  

	 	(b)	They have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice or have elected not to retain legal counsel;

  

	 	(c)	They understand the terms and consequences of this Agreement and of the releases it contains; 

  

	 	(d)	They are fully aware of the legal and binding effect of this Agreement. 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

  

									
	Dated: October 2, 2006	 		 	Akesis Pharmaceuticals, Inc.
					
		 		 		 	 By:
	 	/s/ Kevin Kinsella
		 		 		 		 	Kevin Kinsella, Director

  

									
	Dated: October 2, 2006	 		 	/s/ Edward Wilson
		 		 		 	 Edward Wilson, an individual

 Exhibit A 
 Form of WarrantWarrant to Purchase Common Stock

 Exhibit 10.2 
 THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED. 
 Issue Date: October 2, 2006 
 AKESIS PHARMACEUTICALS, INC. 
 WARRANT TO PURCHASE COMMON STOCK 
 This Warrant to Purchase Common Stock (the “Warrant”) is issued to Edward Wilson (the “Holder”) by Akesis Pharmaceuticals, Inc., a Nevada corporation (the “Company”),
pursuant to the terms of that certain Severance Agreement and Release (the “Release”) dated as of October 2, 2006 between the Company and the Holder. 
 1. Purchase of Shares. Subject to the terms and conditions hereinafter set forth and set forth in the Release, in consideration of the aggregate
payment of $2,500 by the Holder to the Company, the Holder of this Warrant is entitled during the Exercise Period, upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the Holder
hereof in writing), to purchase, in whole or in part, from the Company 250,000 fully paid and nonassessable Shares, at an exercise price per share equal to the Exercise Price (as defined below). 
 2. Definitions. 
 (a)
“Act” shall mean the Securities Act of 1933, as amended. 
 (b) “Exercise
Price” shall mean $0.94, the 10-day trailing average closing price of the Company’s Common Stock as reported on the Over-The-Counter Bulletin Board on October 2, the date of grant by the Board of Directors of the Company.

 (c) “Exercise Period” shall mean the term commencing on the date of issuance of this Warrant and
ending on the expiration of this Warrant pursuant to Section 14 hereof. 
 (d) “Shares” shall
mean shares of the Company’s Common Stock. 
 (e) “Change of Control” shall mean (i) a sale,
lease or disposition of all or substantially all of the assets of the Company, or (ii) a merger or consolidation (in a single transaction or a series of related transactions) of the Company with or into any other corporation or corporations or
other entity, or any other corporate reorganization, where the stockholders of the Company immediately prior to such event do not retain more than fifty percent (50%) of the 

 
voting power of and interest in the successor entity (excluding any transactions if the primary purpose of the transaction is to obtain financing from new or
existing investors). 
 3. Method of Exercise. While this Warrant remains outstanding and exercisable in accordance with
Section 1 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by: 
 (a) the surrender of the Warrant, together with a notice of exercise to the Secretary of the Company at its principal offices; and 
 (b) the payment to the Company of an amount equal to the aggregate Exercise Price for the number of Shares being purchased. 
 4. Net Exercise. In lieu of cash exercising this Warrant, the Holder of this Warrant may elect to receive shares equal to the value of this
Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice of such election, in which event the Company shall issue to the Holder hereof a number of Shares computed using
the following formula: 
  

			
	X=	  	Y (A - B)
	  	      A

 Where 
  

			
	X—	  	The number of Shares to be issued to the Holder of this Warrant.
		
	Y—	  	The number of Shares purchasable under this Warrant.
		
	A—	  	The fair market value of one Share.
		
	B—	  	The Exercise Price (as adjusted to the date of such calculations).

 For purposes of this Section 4, the fair market value of a Share shall mean the average of
the closing bid and asked prices of Shares quoted in the over-the-counter market in which the Shares are traded or the closing price quoted on any exchange on which the Shares are listed, whichever is applicable, as published in the Western Edition
of The Wall Street Journal for the ten (10) trading days prior to the date of determination of fair market value (or such shorter period of time during which such stock was traded over-the-counter or on such exchange). If the Shares are
not traded on the over-the-counter market or on an exchange, the fair market value shall be the price per Share that the Company could obtain from a willing buyer for Shares sold by the Company from authorized but unissued Shares, as such prices
shall be determined in good faith by the Company’s Board of Directors. 
 5. Certificates for Shares. Upon the exercise of the
purchase rights evidenced by this Warrant, one or more certificates for the number of Shares so purchased shall be issued as soon as practicable thereafter, and in any event within thirty (30) days of the delivery of the subscription notice.

  

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

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 9. Representations of the Company. The Company represents that all corporate actions on the part
of the Company, its officers, directors and stockholders necessary for the sale and issuance of this Warrant have been taken. 
 10.
Holder Representations. 
 (a) No Registration The Holder understands that the Warrant and the Shares issuable upon
exercise hereof (the “Securities”) have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”) by reason of a specific exemption from the registration
provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Holder’s representations as expressed herein or otherwise made pursuant hereto.

 (b) Investment Intent. The Holder is acquiring the Securities for investment for its own account, not as a nominee or
agent, and not with the view to, or for resale in connection with, any distribution thereof. 
 (c) Investment Experience. The
Holder has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to the Company and acknowledges that such Holder can protect its own interests. Such Holder has such knowledge and
experience in financial and business matters so that such Holder is capable of evaluating the merits and risks of its investment in the Company. 
 (d) Speculative Nature of Investment. The Holder understands and acknowledges that the Company has a limited financial and operating history and that an investment in the Company is highly speculative and involves
substantial risks. Such Holder can bear the economic risk of such Holder’s investment and is able, without impairing such Holder’s financial condition, to hold the Securities for an indefinite period of time and to suffer a complete loss
of such Holder’s investment. 
 (e) Access to Data. The Holder has had an opportunity to discuss the Company’s
business, management and financial affairs with the Company’s management. The Holder has also had an opportunity to ask questions of officers of the Company, which questions were answered to its satisfaction. The Holder understands that such
discussions, as well as any information issued by the Company, were intended to describe certain aspects of the Company’s business and prospects, but were not necessarily a thorough or exhaustive description. The Holder acknowledges that any
business plans prepared by the Company have been, and continue to be, subject to change and that any projections included in such business plans or otherwise are necessarily speculative in nature, and it can be expected that some or all of the
assumptions underlying the projections will not materialize or will vary significantly from actual results. 
  

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 11. Restrictive Legend. The Shares (unless registered under the Act) shall be stamped or imprinted
with a legend in substantially the following form: 
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT
WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SHARES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS
CERTIFICATE TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY. 
 12. Rights of Stockholders. No
holder of this Warrant shall be entitled, as a Warrant holder, to vote or receive dividends or be deemed the holder of the Shares or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor
shall anything contained herein be construed to confer upon the Holder of this Warrant, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value, consolidation, merger, conveyance, or otherwise) or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise until the Warrant shall have been exercised and the Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein. 
 13. Expiration of Warrant; Notice of Certain Events Terminating This Warrant. 
 (a) This Warrant shall expire and shall no longer be exercisable upon the earliest to occur of: 
 (i) 5:00 p.m., California local time, on the date of the third anniversary of the Issue Date set forth above; or 
 (ii) Any Change of Control. 
 (b) The Company shall provide at least ten (10) days prior written notice of any event set forth in Section 13(a)(ii). 
 14. Notices. All notices and other communications required or permitted hereunder shall be in writing, shall be effective when given, and shall in any event be deemed to be given upon receipt or, if earlier,
(a) five (5) days after deposit with the U.S. Postal Service or other applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one business day after the business
day of deposit with Federal Express or similar overnight courier, freight prepaid or (d) one business day after the business day of facsimile transmission, if delivered by facsimile transmission with copy by first class mail, postage prepaid,
and shall be addressed (i) if to the Holder, at the Holder’s address as set forth in 

  

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the Company’s records, and (ii) if to the Company, at the address of its principal corporate offices (attention: President), or at such other
address as a party may designate by ten days advance written notice to the other party pursuant to the provisions above. 
 15. Governing
Law. This Warrant and all actions arising out of or in connection with this Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflicts of law provisions of the State of
California or of any other state. 
 16. Rights and Obligations Survive Exercise of Warrant. Unless otherwise provided herein, the
rights and obligations of the Company, of the Holder of this Warrant and of the holder of the Shares issued upon exercise of this Warrant, shall survive the exercise of this Warrant. 
 [Remainder of page intentionally left blank.] 
  

 -6- 

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

			
	AKESIS PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Kevin Kinsella

		 	 Kevin Kinsella, Director

 AKESIS PHARMACEUTICALS, INC. 
 SIGNATURE PAGE TO WARRANT TO PURCHASE COMMON
STOCK 

 EXHIBIT A 
 NOTICE OF EXERCISE 
  

	TO:	Akesis Pharmaceuticals, Inc. 

 Attention: President

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

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

  

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

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

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

					
			
	 	 		 	   
		 		 	(Signature)
			
	 	 		 	   
		 		 	(Name)
			
	   	 		 	   
	(Date)	 		 	(Title)

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