Document:

Exhibit 10.15  

2007 Success Sharing Plan  

Objectives  

	•
	Provide
strong incentives to achieve revenue and operating income plans

	•
	Allow
employees to share in the company's results

	•
	Provide
managers with the ability to award top performers 

Eligibility/Administrative Guidelines  

	•
	Includes
all full-time employees and certain part-time employees (see second bullet) not on the following plans:

	•
	Commission

	•
	Account
Management

	•
	Business
Development

	•
	Consulting

	•
	Sales
Support

	•
	Part-time
employees must be employed for twelve months prior to payout date

	•
	Employees
hired in first half are eligible for the second half bonus while those hired in the second half are not eligible for a bonus

	•
	Employees
on performance improvement plan at anytime during the 6 month period are not eligible

	•
	Employees
must be actively on payroll at the time of payment to receive an award 

	•
	All
awards calculated on the employee's base salary at the end of the award period 

	 
	 	2006
	 	2007

	Funding Components	 	50% Booking

50% Operating Income	 	50% Bookings

50% Operating Income
	Corporate Performance Funding	 	Revenue
 <95% = 0%

95 – 99% = 50%

> or = 100% = 100%*	 	Bookings
 <95% = 0%

95 – 99% = 50%

> or = 100% = 100%*
	 	 	Operating Income
 <95% = 0%

95 – 99% = 50%

> or = 100% = 100%*	 	Operating Income
 <95% = 0%

95 – 99% = 50%

> or = 100% = 100%*
	Employee Bonus Percent	 	Director: 8%

Manager: 6%

Employee: 4%	 	Director: 10%

Manager: 6%

Employee: 4%
	Individual Payout	 	50% Corporate performance paid out based on employee's bonus percent	 	50% Corporate performance paid out based on employee's bonus percent
	 	 	50% Individual performance paid out based on employee's bonus percent adjustable by managers based on employees performance	 	50% Individual performance paid out based on employee's bonus percent adjustable by managers based on employees performance
	Timing	 	Halves—50% 1H and 50% 2H—stand alone	 	Halves—50% 1H and 50% 2H—year-to-date
	 	 	*Discretionary accelerators for over achievement in both operating income and revenue achievement	 	*Discretionary accelerators for over achievement in both operating income and revenue achievement

Payout Example  

        Assumptions: 

	•
	1H
Corporate attainment is 100% = 100% funding/payout

	•
	Employee
A is an individual contributor with an annual salary of $35,000 and is an average performer

	•
	Employee
B is also an individual contributor with an annual salary of $35,000 and is a top performer 

Employee A  

	 
	 	Corporate Component
	 	Individual Component
	 	Total

	Annual Target	 	$	700.00	 	$	700.00	 	$
	1,400

(35000*.04)
	1H Target	 	$	350.00	 	$	350.00	 	$	700.00
	1H Payout	 	$	350.00	 	$
	175.00

(25% of pool)	 	$	525.00

Employee B  

	 
	 	Corporate Component
	 	Individual Component
	 	Total

	Annual Target	 	$	700.00	 	$	700.00	 	$
	1,400

(35000*.04)
	1H Target	 	$	350.00	 	$	350.00	 	$	700.00
	1H Payout	 	$	350.00	 	$
	525.00

(75% of pool)	 	$	875.00Exhibit 4.3

 

THIS
WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

ARYX
THERAPEUTICS

 

WARRANT TO
PURCHASE SERIES C PREFERRED STOCK

 

	
  No. PCW-2

  	
  September 3, 2003

  

 

Void After
September 3, 2008

 

THIS CERTIFIES THAT,
for value received, Life Science Group, Inc., with its principal office at One
Soundshore Drive 2/Fl., Greenwich, CT 06830, or assigns (the “Holder” or “Purchaser”), is
entitled to subscribe for and purchase at the Exercise Price (defined below)
from ARYx Therapeutics, a California corporation, with its
principal office at 2255 Martin Avenue, Suite F, Santa Clara, CA 95050 (the “Company”) up to 34,006  shares
of Series C Preferred Stock
of the Company (the “Preferred
Stock”), as provided herein.

 

Immediately prior to the closing of the Company’s initial public
offering, this Warrant shall become exercisable for that number of shares of
Common Stock of the Company into which the shares of Preferred Stock issuable
under this Warrant would then be convertible, so long as such shares, if this
Warrant has been exercised prior to such offering, would have been converted
into shares of the Company’s Common Stock pursuant to the automatic conversion
provisions (or otherwise) of the Company’s Restated Articles of Incorporation.

 

This Warrant is being issued pursuant to the terms of the letter
agreement, dated as of October 24, 2001, as amended February 6, 2002 and on May
30, 2002, by and between the Company and the Purchaser.

 

1.             DEFINITIONS.
As used herein, the following
terms shall have the following respective meanings:

 

“Exercise Period”
shall mean the time period commencing with the date hereof and ending on the
earlier to occur of (A) immediately prior to the closing of the Company’s
initial public offering, (B) immediately prior to the closing of a merger,
change in control or sale of substantially all the asset of the Company or (C)
the date of September 3, 2008.

 

“Exercise Price”
shall mean $1.485 per share, subject to adjustment pursuant to Section 5 below.

 

1

 

“Exercise Shares”
shall mean the shares of the Company’s Preferred Stock issuable upon exercise
of this Warrant, subject to adjustment pursuant to the terms herein, including
but not limited to adjustment pursuant to Section 5 below.

 

2.             EXERCISE
OF WARRANT. The rights represented by
this Warrant may be exercised in whole or in part at any time during the
Exercise Period, by delivery of the following to the Company at its address set
forth above (or at such other address as it may designate by notice in writing
to the Holder):

 

(a)           An executed Notice of Exercise in the
form attached hereto;

 

(b)           Payment of the Exercise Price either (i)
in cash or by check, or (ii) by cancellation of indebtedness; and

 

(c)           This Warrant.

 

Upon the exercise of the rights represented by this Warrant, a
certificate or certificates for the Exercise Shares so purchased, registered in
the name of the Holder or persons affiliated with the Holder, if the Holder so designates,
shall be issued and delivered to the Holder within a reasonable time after the
rights represented by this Warrant shall have been so exercised.

 

The person in whose name any
certificate or certificates for Exercise Shares are to be issued upon exercise
of this Warrant shall be deemed to have become the holder of record of such
shares on the date on which this Warrant was surrendered and payment of the
Exercise Price was made, irrespective of the date of delivery of such
certificate or certificates, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such shares at the close of
business on the next succeeding date on which the stock transfer books are
open.

 

2.1          Net
Exercise. Notwithstanding any provisions herein to the contrary, if the
fair market value of one share of the Company’s Preferred Stock is greater than
the Exercise Price (at the date of calculation as set forth below), in lieu of
exercising this Warrant by payment of cash, the Holder may elect (the “Conversion Right”)
to receive shares equal to the value (as determined below) of this Warrant (or
the portion thereof being canceled) by surrender of this Warrant at the
principal office of the Company together with the properly endorsed Notice of
Exercise in which event the Company shall issue to the Holder a number of
shares of Preferred Stock computed using the following formula:

 

X = Y (A-B)

A

 

Where X =             the number of shares
of Preferred Stock to be issued to the Holder

 

	
  Y =

  	
   

  	
  the number of shares of Preferred Stock
  purchasable under the Warrant or, if only a portion of the Warrant is being
  exercised, the portion of the Warrant being canceled (at the date of such calculation)

  
	
   

  	
   

  	
   

  
	
  A =

  	
   

  	
  the fair market value of one share of the
  Company’s Preferred Stock (at the date of such calculation)

  

 

2

 

	
  B =

  	
   

  	
  Exercise Price (as adjusted to the date of
  such calculation)

  

 

For purposes of the above
calculation, the fair market value of one share of Preferred Stock shall be
determined by the Company’s Board of Directors in good faith; provided,
however, that in the event that this Warrant is exercised pursuant to this
Section 2.1 in connection with the Company’s initial public offering of
its Common Stock, the fair market value per share shall be the product of (i)
the per share offering price to the public of the Company’s initial public
offering, and (ii) the number of shares of Common Stock into which each share
of Preferred Stock is convertible at the time of such exercise.

 

3.   COVENANTS
OF THE COMPANY.

 

3.1.         Covenants as to Exercise Shares. The Company covenants and agrees that all
Exercise Shares that may be issued upon the exercise of the rights represented
by this Warrant will, upon issuance, be validly issued and outstanding, fully
paid and nonassessable, and free from all taxes, liens and charges with respect
to the issuance thereof. The Company further covenants and agrees that the
Company will at all times during the Exercise Period, have authorized and
reserved, free from preemptive rights, a sufficient number of shares of its
Preferred Stock to provide for the exercise of the rights represented by this
Warrant. If at any time during the Exercise Period the number of authorized but
unissued shares of Preferred Stock shall not be sufficient to permit exercise
of this Warrant, the Company will take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued
shares of Preferred Stock to such number of shares as shall be sufficient for
such purposes.

 

3.2.         No Impairment. Except and to the extent as waived or
consented to by the Holder, the Company will not, by amendment of its Restated Articles of Incorporation or through
any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms to be observed or
performed hereunder by the Company, but will at all times in good faith assist
in the carrying out of all the provisions of this Warrant and in the taking of
all such action as may be necessary or appropriate in order to protect the
exercise rights of the Holder against impairment.

 

3.3.         Notices of Record Date. In the event of any taking by the Company
of a record of the holders of any class of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend (other
than a cash dividend which is the same as cash dividends paid in previous
quarters) or other distribution, the Company shall mail to the Holder, at least
ten (10) days prior to the date specified herein, a notice specifying the date
on which any such record is to be taken for the purpose of such dividend or
distribution.

 

4.             REPRESENTATIONS
OF HOLDER.

 

4.1.         Acquisition of Warrant for
Personal Account.
The Holder represents and warrants that it is acquiring the Warrant and the
Exercise Shares solely for its account for investment and not with a view to or
for sale or distribution of said Warrant or Exercise Shares 

 

3

 

or any part thereof. The Holder also represents that
the entire legal and beneficial interests of the Warrant and Exercise Shares
the Holder is acquiring is being acquired for, and will be held for, its
account only.

 

4.2.         Securities Are Not Registered.

 

(a)           The Holder
understands that the Warrant and the Exercise Shares have not been registered
under the Securities Act of 1933, as amended (the “Act”) on the basis that no distribution
or public offering of the stock of the Company is to be effected. The Holder
realizes that the basis for the exemption may not be present if,
notwithstanding its representations, the Holder has a present intention of
acquiring the securities for a fixed or determinable period in the future,
selling (in connection with a distribution or otherwise), granting any
participation in, or otherwise distributing the securities. The Holder has no
such present intention.

 

(b)           The Holder
recognizes that the Warrant and the Exercise Shares must be held indefinitely
unless they are subsequently registered under the Act or an exemption from such
registration is available. The Holder recognizes that the Company has no
obligation to register the Warrant or the Exercise Shares of the Company, or to
comply with any exemption from such registration.

 

(c)           The Holder is aware
that neither the Warrant nor the Exercise Shares may be sold pursuant to Rule
144 adopted under the Act unless certain conditions are met, including, among
other things, the existence of a public market for the shares, the availability
of certain current public information about the Company, the resale following the
required holding period under Rule 144 and the number of shares being sold
during any three month period not exceeding specified limitations. Holder is
aware that the conditions for resale set forth in Rule 144 have not been
satisfied and that the Company presently has no plans to satisfy these
conditions in the foreseeable future.

 

4.3.         DISPOSITION OF WARRANT AND EXERCISE
SHARES.

 

(a)           The Holder further
agrees not to make any disposition of all or any part of the Warrant or
Exercise Shares in any event unless and until:

 

(i)            The Company shall
have received a letter secured by the Holder from the Securities and Exchange
Commission stating that no action will be recommended to the Commission with
respect to the proposed disposition;

 

(ii)           There is then in
effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with said registration
statement; or

 

(iii)         The Holder shall have
notified the Company of the proposed disposition and shall have furnished the
Company with a detailed statement of the circumstances surrounding the proposed
disposition, and if reasonably requested by the Company, the Holder shall have
furnished the Company with an opinion of counsel, reasonably satisfactory to
the Company, for the Holder to the effect that such disposition will not
require registration of such Warrant or Exercise Shares under the Act or any
applicable state securities laws.

 

4

 

(b)           The Holder
understands and agrees that all certificates evidencing the shares to be issued
to the Holder may bear the following legend:

 

THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED.

 

5.             ADJUSTMENT OF EXERCISE PRICE. In
the event of changes in the outstanding Preferred Stock of the Company by
reason of stock dividends, split-ups, recapitalizations, reclassifications,
combinations or exchanges of shares, separations, reorganizations,
liquidations, or the like, the number and class of shares available under the
Warrant in the aggregate and the Exercise Price shall be correspondingly
adjusted to give the Holder of the Warrant, on exercise for the same aggregate
Exercise Price, the total number, class, and kind of shares as the Holder would
have owned had the Warrant been exercised prior to the event and had the Holder
continued to hold such shares until after the event requiring adjustment;
provided, however, that such adjustment shall not be made with respect to, and
this Warrant shall terminate if not exercised prior to, the events set forth in
Section 7 below. The form of this Warrant need not be changed because of
any adjustment in the number of Exercise Shares subject to this Warrant.

 

6.             FRACTIONAL
SHARES. No fractional
shares shall be issued upon the exercise of this Warrant as a consequence of
any adjustment pursuant hereto. All Exercise Shares (including fractions)
issuable upon exercise of this Warrant may be aggregated for purposes of
determining whether the exercise would result in the issuance of any fractional
share. If, after aggregation, the exercise would result in the issuance of a
fractional share, the Company shall, in lieu of issuance of any fractional
share, pay the Holder otherwise entitled to such fraction a sum in cash equal
to the product resulting from multiplying the then current fair market value of
an Exercise Share by such fraction.

 

5

 

7.             TERMINATION.
This Warrant shall terminate after the Exercise Period. In
the event of, at any time during the Exercise Period, an initial public
offering of securities of the Company registered under the Act, or any capital
reorganization, or any reclassification of the capital stock of the Company
(other than a change in par value or from par value to no par value or no par
value to par value or as a result of a stock dividend or subdivision, split-up
or combination of shares), or the consolidation or merger of the Company with
or into another corporation (other than a merger solely to effect a
reincorporation of the Company into another state), or the sale or other
disposition of all or substantially all the properties and assets of the
Company in its entirety to any other person, the Company shall provide to the
Holder twenty (20) days advance written notice of such public offering,
reorganization, reclassification, consolidation, merger or sale or other
disposition of the Company’s assets, and this Warrant shall terminate unless
exercised prior to the date such public offering is closed or the occurrence of
such reorganization, reclassification, consolidation, merger or sale or other
disposition of the Company’s assets.

 

8.             MARKET
STAND-OFF AGREEMENT. Holder
shall not sell, dispose of, transfer, make any short sale of, grant any option
for the purchase of, or enter into any hedging or similar transaction with the
same economic effect as a sale, any Common Stock (or other securities) of the
Company held by Holder, for a period of time specified by the managing
underwriter(s) (not to exceed one hundred eighty (180) days) following the
effective date of a registration statement of the Company filed under the Act. Holder
agrees to execute and deliver such other agreements as may be reasonably
requested by the Company and/or the managing underwriter(s) which are
consistent with the foregoing or which are necessary to give further effect
thereto. In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to such Common Stock (or other
securities) until the end of such period. The underwriters of the Company’s
stock are intended third party beneficiaries of this Section 8 and shall have
the right, power and authority to enforce the provisions hereof as though they
were a party hereto.

 

9.             NO STOCKHOLDER
RIGHTS. This Warrant in
and of itself shall not entitle the Holder to any voting rights or other rights
as a stockholder of the Company.

 

10.          TRANSFER
OF WARRANT. Subject to applicable laws
and the restriction on transfer set forth on the first page of this Warrant,
this Warrant and all rights hereunder are transferable, by the Holder in person
or by duly authorized attorney, upon delivery of this Warrant and the form of
assignment attached hereto to any transferee designated by Holder. The
transferee shall sign an investment letter in form and substance satisfactory
to the Company.

 

11.          LOST,
STOLEN, MUTILATED OR DESTROYED WARRANT. If
this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such
terms as to indemnity or otherwise as it may reasonably impose (which shall, in
the case of a mutilated Warrant, include the surrender thereof), issue a new
Warrant of like denomination and tenor as the Warrant so lost, stolen,
mutilated or destroyed. Any such new Warrant shall constitute an original
contractual obligation of the Company, whether or not the allegedly lost,
stolen, mutilated or destroyed Warrant shall be at any time enforceable by
anyone.

 

6

 

12.          NOTICES,
ETC. All notices required or permitted
hereunder 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 (5) days after
having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt. All communications shall be sent to the Company at the
address listed on the signature page and to Holder at One Soundshore Drive
2/Fl., Greenwich, CT 06830 or at such other address as the Company or Holder
may designate by ten (10) days advance written notice to the other parties
hereto.

 

13.          ACCEPTANCE.
Receipt of this Warrant by the Holder shall constitute
acceptance of and agreement to all of the terms and conditions contained
herein.

 

14.          GOVERNING
LAW. This Warrant and all rights, obligations
and liabilities hereunder shall be governed by the laws of the State of California.

 

[REMAINDER OF
THIS PAGE INTENTIONALLY LEFT BLANK]

 

7

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its duly authorized
officer as of the date first written above.

 

	
   

  	
  ARYX THERAPEUTICS

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter G. Milner

  	
   

  
	
   

  	
   

  	
   Peter G. Milner

  
	
   

  	
   

  	
   President and Chief Executive Officer

  

 

8

 

NOTICE OF
EXERCISE

 

TO: 
ARYX THERAPEUTICS

 

(1)           o            The undersigned hereby elects to purchase                 
shares of the Series C Preferred Stock of ARYX THERAPEUTICS (the
“Company”)
pursuant to the terms of the attached Warrant, and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if
any.

 

o            The undersigned hereby
elects to purchase                 
shares of the Series C Preferred Stock of ARYX THERAPEUTICS (the
“Company”)
pursuant to the terms of the net exercise provisions set forth in Section 2.1
of the attached Warrant, and shall tender payment of all applicable transfer
taxes, if any.

 

(2)           Please issue a certificate or certificates
representing said shares of Series C Preferred Stock in the name of the
undersigned or in such other name as is specified below:

 

	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  

 

(3)           The undersigned represents that (i) the
aforesaid shares of Series C Preferred Stock 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; (ii) the
undersigned is aware of the Company’s business affairs and financial condition
and has acquired sufficient information about the Company to reach an informed
and knowledgeable decision regarding its investment in the Company; (iii) the
undersigned is experienced in making investments of this type and has such
knowledge and background in financial and business matters that the undersigned
is capable of evaluating the merits and risks of this investment and protecting
the undersigned’s own interests; (iv) the undersigned understands that the
shares of Series C Preferred Stock issuable upon exercise of this Warrant have
not been 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, which exemption depends upon, among other things, the bona fide
nature of the investment intent as expressed herein, and, because such
securities have not been registered under the Securities Act, they must be held
indefinitely unless subsequently registered under the Securities Act or an exemption
from such registration is available; (v) the undersigned is aware that the
aforesaid shares of Series C Preferred Stock may not be sold pursuant to Rule
144 adopted under the Securities Act unless certain conditions are met and
until the undersigned has held the shares for the number of years prescribed by
Rule 144, that among the conditions for use of the Rule is the availability of
current information to the public about the Company and the Company has not
made such information available and has no present plans to do so; and (vi) the
undersigned agrees not to make any disposition of all or any part of the
aforesaid shares of Series C Preferred Stock unless and until there is then in
effect a registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with said registration
statement, or the undersigned has provided the Company with an opinion of
counsel satisfactory to the Company, stating that such registration is not
required.

 

	
   

  	
   

  	
   

  	
   

  
	
  (Date)

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Print name)

  
	
   

  	
   

  

 

1

 

ASSIGNMENT
FORM

 

(To assign the foregoing
Warrant, execute

this form and supply required information.

Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED,
the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
  Name:

  	
   

  	
   

  
	
  (Please
  Print)

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
  (Please
  Print)

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
  Holder’s

  	
   

  
	
  Signature:

  	
   

  	
   

  
	
  Holder’s

  	
   

  
	
  Address:

  	
   

  	
   

  
					

 

NOTE: 
The signature to this Assignment Form must correspond with the name as
it appears on the face of the Warrant, without alteration or enlargement or any
change whatever. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to
assign the foregoing Warrant.

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]