Document:

Exhibit 4.3

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”)
is made and entered into as of March 21, 2006, by and among Valentis, Inc., a
Delaware corporation (the “Company”), and the investors
signatory hereto (each a “Purchaser” and collectively, the “Purchasers”).

 

This Agreement is made pursuant to the
Securities Purchase Agreement, dated as of the date hereof, among the Company
and the Purchasers (the “Purchase Agreement”).

 

NOW, THEREFORE, IN CONSIDERATION of the mutual
covenants contained in this Agreement, and for other good and valuable
consideration the receipt and adequacy of which are hereby acknowledged, the
Company and the Purchasers agree as follows:

 

1.             Definitions.  Capitalized terms used and not otherwise defined
herein that are defined in the Purchase Agreement shall have the meanings given
such terms in the Purchase Agreement.  As used in this Agreement, the
following terms shall have the respective meanings set forth in this Section 1:

 

“Effective Date”
means the date that the Registration Statement filed pursuant to Section 2(a)
is first declared effective by the Commission.

 

“Effectiveness Date”
means: (a) with respect to the initial Registration Statement required to be
filed to cover the resale by the Holders of the Registrable Securities, the
earlier of: (i) the 105th day following the Closing and (ii) the fifth Trading
Day following the date on which the Company is notified by the Commission that
the initial Registration Statement will not be reviewed or is no longer subject
to further review and comments, and (b) with respect to any additional
Registration Statements that may be required pursuant to Section 2(a) hereof,
the earlier of: (i) the 105th day following the date on which the Company first
knows, or reasonably should have known, that such additional Registration
Statement is required under such Section and (ii) the fifth Trading Day
following the date on which the Company is notified by the Commission that such
additional Registration Statement will not be reviewed or is no longer subject
to further review and comments.  “Effectiveness Date”
shall also have the meaning specified in Section 2(b).

 

“Effectiveness Period”
shall have the meaning set forth in Section 2(a).

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Filing Date”
means: (a) with respect to the initial Registration Statement required to be
filed to cover the resale by the Holders of the Registrable Securities, the 30th
day following the Closing, and (b) with respect to any additional Registration
Statements that may be required pursuant to Section 2(a) hereof, the 30th day
following the date on which the Company first knows, or reasonably should have
known, that such additional Registration Statement is required under such
Section.

 

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“Holder” or “Holders” means the holder or holders, as the case may be,
from time to time of Registrable Securities.

 

“Indemnified Party”
shall have the meaning set forth in Section 5(c).

 

“Indemnifying Party”
shall have the meaning set forth in Section 5(c).

 

“Losses” shall
have the meaning set forth in Section 5(a).

 

“Person”
means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity
of any kind.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from
a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Registration
Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

 

“Registrable Securities”
means the Shares issued pursuant to the Purchase Agreement and the Warrant
Shares, together with any securities issued or issuable upon any stock split,
dividend or other distribution, recapitalization or similar event, or any conversion
price adjustment with respect thereto.

 

“Registration Statement”
means each of the following:  (i) an initial registration statement which
is required to register the resale of the Registrable Securities, and (ii) each
additional registration statement, if any, contemplated by Section 2(b), and
including, in each case, the Prospectus, amendments and supplements to each
such registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

 

“Rule 144” means
Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

 

“Rule 415” means
Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

 

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“Rule 424” means
Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Shares” shall
have the meaning set forth in the Purchase Agreement.

 

“Warrant Shares”
shall have the meaning set forth in the Purchase Agreement.

 

2.             Registration.

 

(a)           On or prior to each Filing Date, the Company shall prepare and file
with the Commission a Registration Statement covering the resale of all
Registrable Securities not already covered by an existing and effective
Registration Statement for an offering to be made on a continuous basis
pursuant to Rule 415.  The Registration Statement shall be on Form S-3
(except if the Company is not then eligible to register for resale the
Registrable Securities on Form S-3, in which case such registration shall
be on another appropriate form for such purpose) and shall contain (except if
otherwise required pursuant to written comments received from the Commission
upon a review of such Registration Statement) the “Plan of Distribution” in
substantially the form attached hereto as Annex A.  The Company
shall cause the Registration Statement to be declared effective under the
Securities Act as soon as possible but, in any event, no later than the
Effectiveness Date, and shall use its best efforts to keep the Registration
Statement continuously effective under the Securities Act until the date which
is two years after the date that the Registration Statement is declared
effective by the Commission or such earlier date when all Registrable
Securities covered by the Registration Statement have been sold or may be sold
without volume restrictions pursuant to Rule 144(k) as determined by the
counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company’s transfer agent and the affected
Holders (the “Effectiveness Period”). Such Registration Statement shall also cover, to the extent
allowable under the Securities Act and the rules and regulations promulgated
thereunder (including Rule 416), such indeterminate number of additional shares
of Common Stock resulting from stock splits, stock dividends or similar
transactions with respect to the Registrable Securities. It is agreed and
understood that the Company shall, from time to time, be obligated to file one
or more additional Registration Statements to cover any Registrable Securities
which are not registered for resale pursuant to a pre-existing Registration
Statement.

 

(b)           If for any reason the Commission does not permit all of the Registrable
Securities to be included in the Registration Statement filed pursuant to
Section 2(a), then the Company shall prepare and file as soon as possible after
the date on which the Commission shall indicate as being the first date or time
that such filing may be made, but in any event by the 30th day following such date, an additional
Registration Statement covering the resale of all Registrable Securities not
already covered by an existing and effective Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415, on Form S-3
(except if the Company is not then eligible to register for resale the
Registrable Securities on Form S-3, in 

 

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which
case such registration shall be on another appropriate form for such
purpose).  Each such Registration Statement shall contain (except if
otherwise required pursuant to written comments received from the Commission
upon a review of such Registration Statement) the “Plan of Distribution” in
substantially the form attached hereto as Annex A.  The Company
shall cause each such Registration Statement to be declared effective under the
Securities Act as soon as possible but, in any event, no later than the 90th day following the date on which the Company
becomes aware that such Registration Statement is required to be filed under
this Agreement (each such 90th day, the “Effectiveness Date” for such Registration Statement), and
shall use its best efforts to keep such Registration Statement continuously
effective under the Securities Act during the entire Effectiveness Period.

 

(c)           If: (i) a Registration Statement is not filed on or prior to its Filing
Date (if the Company files a Registration Statement without affording the
Holders the opportunity to review and comment on the same as required by
Section 3(a) hereof, the Company shall not be deemed to have satisfied this
clause (i)), (ii) a Registration Statement is not declared effective by the
Commission on or prior to its required Effectiveness Date, (iii) the Company
fails to file with the Commission a request for acceleration in accordance with
Rule 461 promulgated under the Securities Act, within five (5) Trading Days of
the date on which the Company is notified (orally or in writing, whichever is
earlier) by the Commission that a Registration Statement will not be reviewed
or is not subject to further review, or (iv) after its Effective Date,
such Registration Statement ceases for any reason to be effective and available
to the Holders as to all Registrable Securities to which it is required to
cover at any time prior to the expiration of its Effectiveness Period for an
aggregate of more than 20 consecutive Trading Days or an aggregate of 40
Trading Days (which need not be consecutive), (any such failure or breach being
referred to as an “Event,” and for
purposes of clauses (i) or (ii) the date on which such Event occurs, and for
purposes of clause (iii) the date on which such five Trading Day period is
exceeded and for purposes of clause (iv) the date on which such 20 consecutive
or 40 Trading Day-period (as applicable) is exceeded, being referred to as the “Event Date”), then,
in addition to any other rights available to the Holders: (x) on such Event
Date the Company shall pay to each Holder an amount in cash, as liquidated
damages and not as a penalty, equal to 1% of the aggregate purchase price paid
by such Holder pursuant to the Purchase Agreement; and (y) on each monthly
anniversary of each such Event Date thereof (if the applicable Event shall not
have been cured by such date) until the applicable Event is cured, the Company
shall pay to each Holder an amount in cash, as partial liquidated damages and
not as a penalty, equal to 1.5% of the aggregate purchase price paid by such
Holder pursuant to the Purchase Agreement, provided, that all periods
shall be tolled, with respect to a Holder, by the number of Trading Days in
excess of five (5) during which such Holder fails to provide the Company with
information regarding such Holder which was requested by the Company in order
to effect the registration of such Holder’s Registrable Securities. It shall be
a condition precedent to the obligations of the Company to pay any liquidated
damages pursuant to this Section 2 with respect to the Registrable Securities
of any Holder that such Holder shall furnish to the Company such information
regarding itself and the Registrable Securities held by it. If the Company
fails to pay any liquidated damages pursuant to this Section in full within
seven days after the date payable, the Company will pay interest thereon at a
rate of 12% per annum (or such lesser maximum amount that is permitted to be
paid by applicable law) to the Holder, accruing daily from the date such
partial liquidated damages are due until such amounts, plus all such interest
thereon, are 

 

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paid in
full.  The partial liquidated damages pursuant to the terms hereof shall
apply on a pro rata basis for any portion of a month prior to the cure of an
Event. Notwithstanding any provisions of this Agreement to the contrary, in no
event shall the Company be obligated to pay any liquidated damages to any
Holder in respect of any Registrable Securities in an amount that exceeds 10%
of the purchase price paid to the Company for such Registrable Securities.

 

(d)           The Company shall not, from the date hereof until the Effective Date of
the Registration Statement, prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others
under the Securities Act of any of its equity securities other than a
Registration Statement on Form S-8.

 

3.             Registration Procedures

 

In connection with the Company’s registration
obligations hereunder, the Company shall:

 

(a)           Not less than four Trading Days prior to the filing of a Registration
Statement or any related Prospectus or any amendment or supplement thereto, the
Company shall furnish to the Holders copies of all such documents proposed to
be filed which documents (other than those incorporated by reference) will be
subject to the review of such Holders. The Company shall not file a
Registration Statement or any such Prospectus or any amendments or supplements
thereto to which the Holders of a majority of the Registrable Securities shall
reasonably object in good faith.

 

(b)           (i)  Prepare and file with the Commission such amendments,
including post-effective amendments, to each Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep such
Registration Statement continuously effective as to the applicable Registrable
Securities for its Effectiveness Period and prepare and file with the Commission
such additional Registration Statements in order to register for resale under
the Securities Act all of the Registrable Securities; (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement,
and as so supplemented or amended to be filed pursuant to Rule 424; (iii)
respond as promptly as reasonably possible, and in any event within ten Trading
Days, to any comments received from the Commission with respect to each
Registration Statement or any amendment thereto and, as promptly as reasonably
possible provide the Holders true and complete copies of all correspondence
from and to the Commission relating to such Registration Statement that
pertains to the Holders as Selling Stockholders but not any comments that would
result in the disclosure to the Holders of material and non-public information
concerning the Company; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the
Registration Statements and the disposition of all Registrable Securities
covered by each Registration Statement.

 

(c)           Notify the Holders as promptly as reasonably possible (and, in the case
of (i)(A) below, not less than three Trading Days prior to such filing) and (if
requested by any such Person) confirm such notice in writing no later than one
Trading Day following the day: (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to a Registration 

 

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Statement
is proposed to be filed; (B) when the Commission notifies the Company whether
there will be a “review” of such Registration Statement and whenever the
Commission comments in writing on such Registration Statement (in which case the
Company shall provide true and complete copies thereof and all written
responses thereto to each of the Holders that pertain to the Holders as a
Selling Stockholder or to the Plan of Distribution, but not information which
the Company believes would constitute material and non-public information); and
(C) with respect to each Registration Statement or any post-effective
amendment, when the same has been declared effective; (ii) of any request by
the Commission or any other Federal or state governmental authority for
amendments or supplements to a Registration Statement or Prospectus or for
additional information that pertains to the Holders as Selling Stockholders or
the Plan of Distribution; (iii) of the issuance by the Commission of any stop
order suspending the effectiveness of a Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction, or the initiation or
threatening of any Proceeding for such purpose; and (v) of the occurrence of
any event or passage of time that makes the financial statements included in a
Registration Statement ineligible for inclusion therein or any statement made
in such Registration Statement or Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect
or that requires any revisions to such Registration Statement, Prospectus or
other documents so that, in the case of such Registration Statement or the
Prospectus, as the case may be, it will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

(d)           Use its best efforts to avoid the issuance of, or, if issued, obtain
the withdrawal of (i) any order suspending the effectiveness of a Registration
Statement, or (ii) any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment.

 

(e)           Furnish to each Holder, without charge, at least one conformed copy of
each Registration Statement and each amendment thereto and all exhibits to the
extent requested by such Person (including those previously furnished or
incorporated by reference) promptly after the filing of such documents with the
Commission; provided, that the Company shall have no obligation to provide any
document pursuant to this clause that is available on the EDGAR system.

 

(f)            Promptly deliver to each Holder, without charge, as many copies of each
Prospectus or Prospectuses (including each form of prospectus) and each
amendment or supplement thereto as such Persons may reasonably request. 
The Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders in connection with the
offering and sale of the Registrable Securities covered by such Prospectus and
any amendment or supplement thereto.

 

(g)           Prior to any public offering of Registrable Securities, use its best
efforts to register or qualify or cooperate with the selling Holders in
connection with the registration or 

 

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qualification
(or exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of those
jurisdictions within the United States as any Holder reasonably requests in
writing to keep each such registration or qualification (or exemption
therefrom) effective during the Effectiveness Period and to do any and all
other acts or things necessary or advisable to enable the disposition in such
jurisdictions of the Registrable Securities covered by the Registration
Statements; provided, that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified
or subject the Company to any material tax in any such jurisdiction where it is
not then so subject.

 

(h)           Cooperate with the Holders to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be delivered to
a transferee pursuant to the Registration Statements, which certificates shall
be free, to the extent permitted by the Purchase Agreement, of all restrictive
legends, and to enable such Registrable Securities to be in such denominations
and registered in such names as any such Holders may request. In connection
therewith, if required by the Company’s transfer agent, the Company shall
promptly after the effectiveness of the Registration Statement cause an opinion
of counsel as to the effectiveness of the Registration Statement to be
delivered to and maintained with its transfer agent, together with any other
authorizations, certificates and directions required by the transfer agent
which authorize and direct the transfer agent to issue such Registrable
Securities without legend upon sale by the holder of such shares of Registrable
Securities under the Registration Statement.

 

(i)            Upon the occurrence of any event contemplated by Section 3(c)(v), as
promptly as reasonably possible, prepare a supplement or amendment, including a
post-effective amendment, to the affected Registration Statements or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, no Registration Statement nor any Prospectus
will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

 

(j)            The Company may require each selling Holder to furnish to the Company a
certified statement as to the number of shares of Common Stock beneficially
owned by such Holder and any Affiliate thereof.

 

(k)           The Company has read and understands the exercise
limitations contained in certain of the Warrants and, except as may be required
by applicable law or rules or regulations of the Commission, will not take a
position in any Registration Statement or other filing with the Commission that
a Holder whose Warrant contains such exercise limitations is the beneficial
owner of more than the percentage of Common Stock permitted to be beneficially
owned by such Holder absent an affirmative written statement by such Holder to
such effect. It is understood and agreed that current law, rules and
regulations of the Commission do not require the adoption of a position that a
Holder whose Warrant contains such exercise limitations is the beneficial owner
of more than the percentage of Common Stock permitted to be beneficially owned
by such Holder pursuant to the exercise limitations contained in the Warrants.

 

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4.             Registration Expenses. All fees and expenses incident to the Company’s
performance of or compliance with its obligations under this Agreement
(excluding any underwriting discounts and selling commissions and all legal
fees and expenses of legal counsel for any Holder) shall be borne by the
Company whether or not any Registrable Securities are sold pursuant to a
Registration Statement.  The fees and expenses referred to in the
foregoing sentence shall include, without limitation, (i) all registration and
filing fees (including, without limitation, fees and expenses (A) with respect
to filings required to be made with the Trading Market on which the Common
Stock is then listed for trading, and (B) in compliance with applicable state
securities or Blue Sky laws), (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities and of
printing prospectuses if the printing of prospectuses is reasonably requested
by the holders of a majority of the Registrable Securities included in the
Registration Statement), (iii) messenger, telephone and delivery expenses, (iv)
fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses
of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement.  In
addition, the Company shall be responsible for all of its internal expenses
incurred in connection with the consummation of the transactions contemplated
by this Agreement (including, without limitation, all salaries and expenses of
its officers and employees performing legal or accounting duties), the expense
of any annual audit and the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange as required
hereunder.

 

5.             Indemnification.

 

(a)           Indemnification
by the Company.  The Company shall, notwithstanding any termination of
this Agreement, indemnify and hold harmless each Holder, the officers,
directors, agents, partners, members, stockholders and employees of each of
them, each Person who controls any such Holder (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents and employees of each such controlling Person, to the fullest
extent permitted by applicable law, from and against any and all losses,
claims, damages, liabilities, costs (including, without limitation, reasonable
costs of preparation and reasonable attorneys’ fees) and expenses
(collectively, “Losses”), as incurred, arising out
of or relating to any untrue or alleged untrue statement of a material fact
contained in any Registration Statement, any Prospectus or any form of prospectus
or in any amendment or supplement thereto (it being understood that the Holder
has approved Annex A hereto for this purpose) or in any preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
(in the case of any Prospectus or form of prospectus or supplement thereto, in
light of the circumstances under which they were made) not misleading, except
to the extent, but only to the extent, that (1) such untrue statements, alleged
untrue statements, omissions or alleged omissions are based solely upon
information regarding such Holder furnished in writing to the Company by such
Holder expressly for use therein, or to the extent that such information
relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by
such Holder expressly for use in the Registration Statement, such Prospectus or
such form of Prospectus or in any amendment or supplement thereto (it being
understood that the Holder has approved Annex A hereto for this purpose) or (2)

 

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in the case of
an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the
use by such Holder of an outdated or defective Prospectus after the Company has
notified such Holder in writing that the Prospectus is outdated or defective
and prior to the receipt by such Holder of an Advice (as defined below) or an
amended or supplemented Prospectus, but only if and to the extent that
following the receipt of the Advice or the amended or supplemented Prospectus
the misstatement or omission giving rise to such Loss would have been
corrected.  The Company shall notify the Holders promptly of the
institution, threat or assertion of any Proceeding of which the Company is
aware in connection with the transactions contemplated by this Agreement.

 

(b)           Indemnification by Holders. Each
Holder shall, notwithstanding any termination of this Agreement, severally and
not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and
the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses, as
incurred, arising solely out of or based solely upon: (x) if the Company has
notified such Holder that the Company is no longer a “Seasoned Issuer” and the
prospectus delivery requirements of the Securities Act apply to sales by such
Holder, such Holder’s failure to comply with the prospectus delivery
requirements of the Securities Act or (y) any untrue statement of a material
fact contained in any Registration Statement, any Prospectus, or any form of
prospectus, or in any amendment or supplement thereto, or arising solely out of
or based solely upon any omission of a material fact required to be stated
therein or necessary to make the statements therein (in the case of any
Prospectus, or any form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading to the extent, but
only to the extent that, (1) such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder’s proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement (it
being understood that the Holder has approved Annex A hereto for this purpose),
such Prospectus or such form of Prospectus or in any amendment or supplement
thereto or (2) in the case of an occurrence of an event of the type specified
in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of an Advice or
an amended or supplemented Prospectus, but only if and to the extent that
following the receipt of the Advice or the amended or supplemented Prospectus
the misstatement or omission giving rise to such Loss would have been corrected.  In no event
shall the liability of any selling Holder hereunder be greater in amount than
the dollar amount of the net proceeds received by such Holder upon the sale of
the Registrable Securities giving rise to such indemnification obligation.

 

(c)           Conduct of Indemnification Proceedings. If any
Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying Party”) in
writing, and the Indemnifying Party shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to the Indemnified 

 

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Party and
the payment of all fees and expenses incurred in connection with defense
thereof; provided, that the failure of any Indemnified Party to give such
notice shall not relieve the Indemnifying Party of its obligations or
liabilities pursuant to this Agreement, except (and only) to the extent that it
shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) that such failure
shall have proximately and materially adversely prejudiced the Indemnifying
Party.

 

An Indemnified Party shall have the right to
employ separate counsel in any such Proceeding and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party or Parties unless:  (1) the Indemnifying Party has
agreed in writing to pay such fees and expenses; (2) the Indemnifying Party
shall have failed promptly to assume the defense of such Proceeding and to
employ counsel reasonably satisfactory to such Indemnified Party in any such
Proceeding; or (3) the named parties to any such Proceeding (including any
impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and such Indemnified Party shall have been advised by counsel that a
conflict of interest is likely to exist if the same counsel were to represent
such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified
Party notifies the Indemnifying Party in writing that it elects to employ
separate counsel at the expense of the Indemnifying Party, the Indemnifying
Party shall not have the right to assume the defense thereof and such counsel
shall be at the expense of the Indemnifying Party), provided, that the
Indemnifying Party shall not be liable for the fees and expenses of more than
one separate firm of attorneys at any time for all Indemnified Parties. 
The Indemnifying Party shall not be liable for any settlement of any such
Proceeding effected without its written consent, which consent shall not be
unreasonably withheld.  No Indemnifying Party shall, without the prior
written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding.

 

All fees and expenses of the Indemnified Party
(including reasonable fees and expenses to the extent incurred in connection
with investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten Trading Days of written notice thereof to the Indemnifying
Party (regardless of whether it is ultimately determined that an Indemnified
Party is not entitled to indemnification hereunder; provided, that the
Indemnifying Party may require such Indemnified Party to undertake to reimburse
all such fees and expenses to the extent it is finally judicially determined
that such Indemnified Party is not entitled to indemnification hereunder).

 

(d)           Contribution. If a claim for indemnification
under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason of
public policy or otherwise), then each Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and Indemnified Party in connection with the actions, statements or
omissions that resulted in such Losses as well as any other relevant equitable
considerations.  The relative fault of such Indemnifying Party and
Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or 

 

10

 

alleged
omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission.  The amount paid or
payable by a party as a result of any Losses shall be deemed to include,
subject to the limitations set forth in Section 5(c), any reasonable attorneys’
or other reasonable fees or expenses incurred by such party in connection with
any Proceeding to the extent such party would have been indemnified for such
fees or expenses if the indemnification provided for in this Section was
available to such party in accordance with its terms.

 

The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 5(d) were
determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the
immediately preceding paragraph.  Notwithstanding the provisions of this
Section 5(d), no Holder shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the proceeds actually received by such
Holder from the sale of the Registrable Securities subject to the Proceeding
exceeds the amount of any damages that such Holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

 

The indemnity and contribution agreements
contained in this Section are in addition to any liability that the
Indemnifying Parties may have to the Indemnified Parties and are not in
diminution or limitation of the indemnification provisions under the Purchase
Agreement.

 

6.             Miscellaneous

 

(a)           Remedies. In the event of a breach by the
Company or by a Holder, of any of their obligations under this Agreement, each
Holder or the Company, as the case may be, in addition to being entitled to
exercise all rights granted by law and under this Agreement, including recovery
of damages, will be entitled to specific performance of its rights under this
Agreement.  The Company and each Holder agree that monetary damages would
not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees
that, in the event of any action for specific performance in respect of such
breach, it shall waive the defense that a remedy at law would be adequate.

 

(b)           Compliance.  Each Holder covenants and
agrees that it will comply with the prospectus delivery requirements of the
Securities Act as applicable to it in connection with sales of Registrable
Securities pursuant to the Registration Statement.

 

(c)           Discontinued Disposition. 
Each Holder agrees by its acquisition of such Registrable Securities that, upon
receipt of a notice from the Company of the occurrence of any event of the kind
described in Section 3(c), such Holder will forthwith discontinue disposition
of such Registrable Securities under the Registration Statement until such
Holder’s receipt of the 

 

11

 

copies of
the supplemented Prospectus and/or amended Registration Statement or until it
is advised in writing (the “Advice”) by the Company that the
use of the applicable Prospectus may be resumed, and, in either case, has
received copies of any additional or supplemental filings that are incorporated
or deemed to be incorporated by reference in such Prospectus or Registration
Statement.  The Company may provide appropriate stop orders to enforce the
provisions of this paragraph.

 

(d)           Amendments and Waivers. No
provision of this Agreement may be waived or amended except in a written
instrument signed by the Company and the Holder or Holders (as applicable) of
no less than two-thirds of the then outstanding Registrable Securities. 
The Company shall provide prior notice to all Holders of any proposed waiver or
amendment.  No waiver of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair
the exercise of any such right.

 

(e)           Notices. Any and all notices or other
communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of
(i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to 5:00 p.m.
(California time) on a Business Day, (ii) the Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Agreement later than 5:00 p.m.
(California time) on any date and earlier than 11:59 p.m. (California time) on
such date, (iii) the Business Day following the date of mailing, if sent by
nationally recognized overnight courier service, or (iv) upon actual receipt by
the party to whom such notice is required to be given.  The address for
such notices and communications shall be as follows:

 

	
   

  	
  If to the Company:

  	
   

  	
  Valentis, Inc.

  
	
   

  	
   

  	
   

  	
  863A Mitten Road

  
	
   

  	
   

  	
   

  	
  Burlingame, CA 94010

  
	
   

  	
   

  	
   

  	
  Attention:  Benjamin F. McGraw III, Pharm. D.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
   

  	
  Latham & Watkins LLP

  
	
   

  	
   

  	
   

  	
  135 Commonwealth Drive

  
	
   

  	
   

  	
   

  	
  Menlo Park, CA 94025

  
	
   

  	
   

  	
   

  	
  Attention: Patrick A. Pohlen

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to a Purchaser:

  	
   

  	
  To the address set forth under such Purchaser’s name on the signature
  pages hereto

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to any other Person who is then the registered Holder:

  	
   

  	
  To the address of such Holder as it appears in the stock transfer
  books of the Company

  

 

12

 

or such other address as may be designated in writing hereafter, in the
same manner, by such Person.

 

(f)            Successors and Assigns. This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties and shall inure to the benefit of each
Holder.  The Company may not assign its rights or obligations hereunder
without the prior written consent of the Holders of no less than two-thirds of the
then outstanding Registrable Securities.  Each Holder may assign its
respective rights hereunder in the manner and to the Persons as permitted under
the Purchase Agreement.

 

(g)           Execution and Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and, all of which taken together
shall constitute one and the same Agreement.  In the event that any
signature is delivered by facsimile transmission, such signature shall create a
valid binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

 

(h)           Governing Law. All questions concerning
the construction, validity, enforcement and interpretation of this Agreement
shall be governed by and construed and enforced in accordance with the internal
laws of the State of California, without regard to the principles of conflicts
of law thereof.  Each party agrees that all Proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by
this Agreement (whether brought against a party hereto or its respective
Affiliates, employees or agents) may be commenced in the state and federal
courts sitting in the City of San Francisco (the “California Courts”).  Each party hereto hereby irrevocably submits to the
non-exclusive jurisdiction of the California Courts for the adjudication of any
dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any Proceeding, any claim that it is not personally
subject to the jurisdiction of any California Court, or that such Proceeding has
been commenced in an improper or inconvenient forum.  Each party hereto
hereby irrevocably waives personal service of process and consents to process
being served in any such Proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any
right to serve process in any manner permitted by law.  Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any Proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby.  If either
party shall commence a Proceeding to enforce any provisions of this Agreement,
then the prevailing party in such Proceeding shall be reimbursed by the other
party for its attorney’s fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.

 

(i)            Cumulative Remedies. The
remedies provided herein are cumulative and not exclusive of any remedies
provided by law.

 

13

 

(j)            Severability. If any term, provision,
covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated, and the parties hereto shall use their reasonable efforts to find
and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or
restriction.  It is hereby stipulated and declared to be the intention of
the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter
declared invalid, illegal, void or unenforceable.

 

(k)           Headings. The headings in this Agreement
are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof.

 

(l)            Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser hereunder is several and not joint
with the obligations of any other Purchaser hereunder, and no Purchaser shall
be responsible in any way for the performance of the obligations of any other
Purchaser hereunder.  The decision of each Purchaser to purchase
Securities pursuant to the Transaction Documents has been made independently of
any other Purchaser.  Nothing contained herein or in any other agreement
or document delivered at any closing, and no action taken by any Purchaser
pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert with
respect to such obligations or the transactions contemplated by this
Agreement.  Each Purchaser acknowledges that no other Purchaser has acted
as agent for such Purchaser in connection with making its investment hereunder
and that no Purchaser will be acting as agent of such Purchaser in connection
with monitoring its investment in the Securities or enforcing its rights under
the Transaction Documents.  Each Purchaser shall be entitled to protect
and enforce its rights, including without limitation the rights arising out of
this Agreement, and it shall not be necessary for any other Purchaser to be
joined as an additional party in any proceeding for such purpose.

 

14

 

IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

 

 

	
   

  	
  VALENTIS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Benjamin F. McGraw, III, Pharm.D.

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
					

 

 

IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

 

	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
   

  	
   

  
	
   

  	
  Attn.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Facsimile No.:

  	
   

  	
   

  
	
   

  	
  Attn:

  	
   

  	
   

  
											

 

 

ANNEX
A

 

PLAN
OF DISTRIBUTION

 

The Selling Stockholders and any of their
pledgees, donees, transferees, assignees or other successors-in-interest may,
from time to time, sell, transfer or otherwise dispose of any or all of their
shares of Common Stock or interests in shares of Common Stock on any stock
exchange, market or trading facility on which the shares are traded or in
private transactions.  These dispositions may be at fixed prices, at
prevailing market prices at the time of sale, at prices related to the
prevailing market price, at varying prices determined at the time of sale, or
at negotiated prices. The Selling Stockholders may use one or more of the
following methods when disposing of the shares or interests therein:

 

•                  ordinary
brokerage transactions and transactions in which the broker-dealer solicits
purchasers;

 

•                  block trades in
which the broker-dealer will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the
transaction;

 

•                  purchases by a
broker-dealer as principal and resale by the broker-dealer for its account;

 

•                  an exchange
distribution in accordance with the rules of the applicable exchange;

 

•                  privately
negotiated transactions;

 

•                  short sales
entered into after the effective date of the registration statement of which
this prospectus is a part;

 

•                  through the
writing or settlement of options or other hedging transactions, whether through
an options exchange or otherwise;

 

•                  broker-dealers
may agree with the Selling Stockholders to sell a specified number of such
shares at a stipulated price per share;

 

•                  a combination of
any such methods of disposition; and

 

•                  any other method
permitted pursuant to applicable law.

 

The Selling Stockholders may also sell shares
under Rule 144 under the Securities Act, if available, rather than under this
prospectus.

 

Broker-dealers engaged by the Selling
Stockholders may arrange for other broker-dealers to participate in
sales.  Broker-dealers may receive commissions or discounts from the
Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser
of shares, from the 

 

2

 

purchaser) in
amounts to be negotiated.  The Selling Stockholders do not expect these
commissions and discounts to exceed what is customary in the types of
transactions involved.

 

The Selling Stockholders may from time to
time pledge or grant a security interest in some or all of the Shares owned by
them and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell shares of Common Stock from time
to time under this prospectus, or under an amendment to this prospectus under
Rule 424(b)(3) or other applicable provision of the Securities Act of 1933
amending the list of selling stockholders to include the pledgee, transferee or
other successors in interest as selling stockholders under this prospectus.

 

Upon the Company being notified in writing by
a Selling Stockholder that any material arrangement has been entered into with
a broker-dealer for the sale of Common Stock through a block trade, special
offering, exchange distribution or secondary distribution or a purchase by a
broker or dealer, a supplement to this prospectus will be filed, if required,
pursuant to Rule 424(b) under the Securities Act, disclosing (i) the name of
each such Selling Stockholder and of the participating broker-dealer(s), (ii)
the number of shares involved, (iii) the price at which such shares of Common
Stock were sold, (iv) the commissions paid or discounts or concessions allowed
to such broker-dealer(s), where applicable, (v) that such broker-dealer(s) did
not conduct any investigation to verify the information set out or incorporated
by reference in this prospectus, and (vi) other facts material to the
transaction.  In addition, upon the Company being notified in writing by a
Selling Stockholder that a donee or pledge intends to sell more than 500 shares
of Common Stock, a supplement to this prospectus will be filed if then required
in accordance with applicable securities law.

 

The Selling Stockholders also may transfer
the shares of common stock in other circumstances, in which case the
transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.

 

In connection
with the sale of the shares of Common Stock or interests in shares of Common
Stock, the Selling Stockholders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in
short sales of the common stock in the course of hedging the positions they
assume. The Selling Stockholders may also sell shares of Common Stock short and
deliver these securities to close out their short positions, or loan or pledge
the common stock to broker-dealers that in turn may sell these securities. The
Selling Stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more
derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

 

The Selling Stockholders and any
broker-dealers or agents that are involved in selling the shares may be deemed
to be “underwriters” within the meaning of the Securities Act in connection
with such sales.  In such event, any commissions received by such
broker-dealers or agents and any profit on the resale of the shares purchased
by them may be deemed to be underwriting commissions or discounts under the
Securities Act.

 

3

 

The Company has advised the Selling
Stockholders that they are required to comply with Regulation M promulgated
under the Securities and Exchange Act during such time as they may be engaged
in a distribution of the shares.  The foregoing may affect the marketability
of the common stock.

 

The Company is required to pay all fees and
expenses incident to the registration of the shares.  The Company has
agreed to indemnify the Selling Stockholders against certain losses, claims,
damages and liabilities, including liabilities under the Securities Act or
otherwise.

 

The
Company has agreed with the Selling Stockholders to keep the registration
statement of which this prospectus constitutes a part effective until the
earlier of (a) such time as all of the shares covered by this prospectus have
been disposed of pursuant to and in accordance with the registration statement
or (b) the date on which the shares may be sold without any volume limitations
pursuant to Rule 144(k) of the Securities Act.

 

4Exhibit
10.44

 

COMMON
STOCK AND WARRANT PURCHASE AGREEMENT

 

THIS COMMON
STOCK AND WARRANT PURCHASE AGREEMENT (“Agreement”) is made as of the 17th
day of March 2006 by and among Sunesis Pharmaceuticals, Inc., a
Delaware corporation (the “Company”), and the other Persons set forth on
the signature pages hereto (each an “Investor” and collectively the
“Investors”).

 

Recitals

 

A.            The
Company and the Investors are executing and delivering this Agreement in
reliance upon the exemption from securities registration afforded by the
provisions of Regulation D (“Regulation D”), as promulgated by the
Securities and Exchange Commission (the “SEC”) under the Securities Act
of 1933, as amended, and the rules and regulations promulgated thereunder
(the “Securities Act”);

 

B.            The
Investors wish to purchase from the Company, and the Company wishes to sell and
issue to the Investors, upon the terms and subject to the conditions set forth
in this Agreement, an aggregate of 7,246,377 shares (the “Shares”) of
the Company’s common stock, par value $0.0001 per share (the “Common Stock”)
and warrants (the “Warrants”) to purchase an aggregate of 2,173,914 shares of
Common Stock (subject to adjustment pursuant to Section 4 of the Warrants)
in the form of Exhibit A hereto for a purchase price of $6.2475 per
Share and associated Warrant, for an aggregate purchase price of $45,271,740.43,
it being understood that the aggregate fair market value of the warrants, if
issued apart from the Shares, is $271,739.26;

 

C.            Contemporaneous
with the sale of the Shares, the parties hereto will execute and deliver a
Registration Rights Agreement, in the form attached hereto as Exhibit B
(the “Registration Rights Agreement”), pursuant to which the Company
will agree to provide certain registration rights under the Securities Act; and

 

D.            This
Agreement shall be binding upon the Company and the Investors only upon
delivery of the signatures pages hereto by the Company and the Investors.

 

Agreement

 

In
consideration of the mutual promises made herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Definitions.  In addition to those terms defined above and
elsewhere in this Agreement, for the purposes of this Agreement, the following
terms shall have the meanings set forth below:

 

 

“Affiliate”
means, with respect to any Person, any other Person which directly or
indirectly through one or more intermediaries controls, is controlled by, or is
under common control with, such Person.

 

“Business
Day” means a day, other than a Saturday or Sunday, on which banks in New
York City are open for the general transaction of business.

 

“Confidential
Information” means trade secrets, confidential information and know-how
(including but not limited to ideas, formulae, compositions, processes,
procedures and techniques, research and development information, performance
specifications, support documentation, drawings, specifications, designs,
business and marketing plans, and supplier lists and related information).

 

“Effective
Date” means the date on which the Registration Statement is declared
effective by the SEC.

 

“Effectiveness
Deadline” means the date on which the Registration Statement is required to
be declared effective by the SEC under the terms of the Registration Rights
Agreement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

“Intellectual
Property” means all of the following: (i) patents, patent
applications, patent disclosures and inventions (whether or not patentable and
whether or not reduced to practice); (ii) trademarks, service marks, trade
dress, trade names, corporate names, logos, slogans and Internet domain names,
together with all goodwill associated with each of the foregoing; (iii) copyrights
and copyrightable works; and (iv) registrations, applications and renewals
for any of the foregoing.

 

“Lockup
Agreement” means a Lockup Agreement in the form of Exhibit C
hereto.

 

“Material Adverse
Effect” means an event, change or occurrence that, individually or together
with any other event, change or occurrence, has a material adverse impact on
the Company’s financial position, business, results of operations or prospects,
excluding any event, change or occurrence resulting from the announcement or
consummation of the transactions contemplated by the Transaction Documents.

 

“Nasdaq”
means The Nasdaq Stock Market, Inc.

 

“Permitted
Liens” means (i) mechanics’, carriers’, or workmen’s, repairmen’s or
similar liens arising or incurred in the ordinary course of business, (ii) liens
for taxes, assessments and other governmental charges that are not due and
payable or which may hereafter be paid without penalty or which are being
contested in good faith by appropriate proceedings

 

2

 

and (iii) other imperfections of title or encumbrances, if any,
that do not, individually or in the aggregate, materially impair the use or
value of the property to which they relate.

 

“Person”
means an individual, corporation, partnership, limited liability company,
trust, business trust, association, joint stock company, joint venture, sole
proprietorship, unincorporated organization, governmental authority or any other
form of entity not specifically listed herein.

 

“Registration
Statement” has the meaning set forth in the Registration Rights Agreement.

 

“SEC
Filings” has the meaning set forth in Section 4.6.

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

“Subsidiary”
of any Person means another Person, an amount of the voting securities, other
voting ownership or voting partnership interests of which is sufficient to
elect at least a majority of its Board of Directors or other governing body (or,
if there are no such voting interests, 50% or more of the equity interests of
which) is owned directly or indirectly by such first Person.

 

“Transaction
Documents” means this Agreement, the Registration Rights Agreement and the
Warrants.

 

“Warrant
Shares” mean the shares of Common Stock issuable upon exercise of the
Warrants (including shares of Common Stock issuable upon adjustment pursuant to
Section 4 of the Warrants).

 

2.             Purchase
and Sale of the Shares and the Warrants. 
Upon the terms and subject to the conditions set forth in this
Agreement, at the Closing, each of the Investors shall, severally and not
jointly, purchase, and the Company shall sell and issue to the Investors, the
Shares and the Warrants in the respective amounts set forth below the Investors’
names on the signature pages hereto.

 

3.             Closing.  The purchase and sale of the Shares and the
Warrants pursuant to Section 2 shall take place at the offices of Latham &
Watkins LLP, 135 Commonwealth Drive, Menlo Park, California 94025 on March 17,
2006, or at such other location and on such other date as the Company and the
Investors shall mutually agree (which time and place are designated as the “Closing”).  At the Closing, the Company shall deliver to
each Investor a certificate or certificates representing the number of Shares
and a Warrant for the number of shares of Common Stock each as set forth below
such Investor’s name on the signature pages hereto against payment of the
purchase price therefor by wire transfer of immediately available funds to a
bank account designated by the Company.

 

3

 

4.             Representations
and Warranties of the Company.  The
Company hereby represents and warrants to the Investors that, except as disclosed
in the SEC Filings or as set forth in the schedules delivered herewith
(collectively, the “Disclosure Schedules”):

 

4. 1          Organization,
Good Standing and Qualification.  The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite corporate power
and authority to carry on its business as now conducted and to own its
properties.  The Company is duly
qualified to do business as a foreign corporation and is in good standing in
each jurisdiction in which the conduct of its business or its ownership or
leasing of property makes such qualification necessary, except where the
failure to so qualify, individually or in the aggregate, would not have a
Material Adverse Effect.  To the Company’s
knowledge, no proceeding has been instituted in any jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail, such power and
authority or qualification. The Company has no Subsidiaries.

 

4.2           Authorization.  The Company has full corporate power and
authority and has taken all requisite action on the part of the Company, its
officers, directors and stockholders necessary for (i) the authorization,
execution and delivery of the Transaction Documents, (ii) the
authorization of the performance of all obligations of the Company hereunder or
thereunder and (iii) the authorization, issuance, sale and delivery of the
Securities.  The Transaction Documents
constitute the legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their respective terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’
rights generally.

 

4.3           Capitalization.  Schedule 4.3 sets forth as of the
date hereof (a) the authorized capital stock of the Company; (b) the
number of shares of capital stock issued and outstanding; (c) the number
of shares of capital stock available for issuance pursuant to the Company’s
stock plans; and (d) the number of shares of capital stock issuable and
reserved for issuance pursuant to securities exercisable for, or convertible
into or exchangeable for any shares of capital stock of the Company.  All of the issued and outstanding shares of
the Company’s capital stock have been duly authorized and validly issued and
are fully paid, nonassessable and free of preemptive rights.  No Person is entitled to pre-emptive or
similar statutory or contractual rights with respect to any securities of the Company.  There are no outstanding warrants, options,
convertible securities or other rights, agreements or arrangements under which
the Company is obligated to issue equity securities.  Except as contemplated under this Agreement,
there are no contracts, commitments, understandings or arrangements by which
the Company is bound to issue additional shares of capital stock of the Company
or options, securities or rights convertible into shares of capital stock of
the Company. Except as provided in the Registration Rights Agreement, no Person
has the right to require the Company to register any securities of the Company
under the Securities Act, whether on a demand basis or in connection with the
registration of securities of the Company for its own account or for the
account of any other Person.  The issue
and sale of the Securities will not result in the right of any holder of
Company securities to adjust the exercise, conversion or exchange price under
such securities.

 

4

 

4.4           Valid
Issuance.  The Shares and the
Warrants have been duly and validly authorized and, when issued and paid for
pursuant to this Agreement, will be validly issued, fully paid and
nonassessable, and will be free of encumbrances and restrictions (other than
those created by the Investors), except for restrictions on transfer set forth
in the Transaction Documents or imposed by applicable securities laws. The
Warrant Shares have been reserved for issuance and, upon issuance pursuant to
the Warrants, will be duly and validly authorized and fully paid and
nonassessable.

 

4.5           Consents.  The execution, delivery and performance by
the Company of the Transaction Documents and the offer, issuance and sale of
the Securities and the Warrant Shares requires no consent of, action by or in
respect of, or filing with, any Person, governmental body, agency, or official
other than filings that have been made pursuant to applicable state securities
laws and post-sale filings pursuant to applicable state and federal securities
laws which the Company undertakes to file within the applicable time periods.

 

4.6           Delivery
of SEC Filings.  The Company has made
available to the Investors through the EDGAR system, true and complete copies
of (a) the Company’s Registration Statement on Form S-1 filed with
the SEC on September 27, 2005 including all exhibits thereto and documents
incorporated by reference therein (the “IPO Registration Statement”), (b) the
Company’s Quarterly Report on Form 10-Q for the quarter ended September 30,
2005 filed with the SEC on November 14, 2005 including all exhibits thereto
and documents incorporated by reference therein and (c) the Company’s
Current Reports on Form 8-K filed with the SEC on November 14, 2005, January 6,
2006 and February 15, 2006 including all exhibits thereto and documents
incorporated by reference therein (the “Periodic Filings” and, together
with the IPO Registration Statement, the “SEC Filings”).  The Periodic Filings are the only periodic
filings required of the Company pursuant to the Exchange Act through the date
hereof.

 

4.7           Use
of Proceeds.  The net proceeds of the
sale of the Shares and the Warrants hereunder shall be used by the Company for
working capital and general corporate purposes.

 

4.8           No
Material Adverse Change.  Since September 30,
2005, there has not been:

 

(i)            any
change in the consolidated assets, liabilities, financial condition or
operating results of the Company from that reflected in the financial
statements included in the Company’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2005, except for changes in the ordinary
course of business which would not have, individually or in the aggregate, a
Material Adverse Effect;

 

(ii)           any
declaration or payment of any dividend, or any authorization or payment of any
distribution, on any of the capital stock of the Company, or any redemption or
repurchase of any securities of the Company (other than in connection with a
termination of employment);

 

5

 

(iii)          any
material damage, destruction or loss to any assets or properties of the
Company;

 

(iv)          any
waiver, not in the ordinary course of business, by the Company of a material
right or of a material debt owed to it;

 

(v)           any
change or amendment to the Company’s Certificate of Incorporation or Bylaws, or
change to any material contract or arrangement by which the Company is bound or
to which its assets or properties is subject;

 

(vi)          any
material labor difficulties or labor union organizing activities with respect
to employees of the Company;

 

(vii)         any
transaction entered into by the Company other than in the ordinary course of
business;

 

(viii)        the
loss of the services of any key employee, or material change in the composition
or duties of the senior management of the Company; or

 

(ix)           any
other event or condition of any character that has had or would reasonably be
expected to have a Material Adverse Effect.

 

4.9           SEC
Filings.  At the time of filing
thereof, the SEC Filings complied as to form in all material respects with the
requirements of the Exchange Act and did not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they
were made, not misleading.

 

4.10         No
Conflict, Breach, Violation or Default. 
Neither the execution, delivery and performance of the Transaction
Documents by the Company nor the consummation of any of the transactions
contemplated hereby (including without limitation the issuance and sale of the
Securities) will conflict with or result in violation of any of the terms and
provisions of the Company’s Certificate of 
Incorporation or Bylaws, both as in effect on the date hereof or will
give rise to the right to terminate or accelerate the due date of any payment
under or conflict with or result in a breach of any term or provision of, or
constitute a default (or any event which with notice or lapse of time or both
would constitute a default) under, or require any consent or waiver under or
result in the execution or imposition of any lien, charge or encumbrance upon
the properties or assets of the Company pursuant to the terms of any indenture,
mortgage, deed of trust or other agreement or instrument to which the Company
is a party or by which the Company is bound or to which any of its assets or
properties is subject or any license, permit, statute, rule, regulation,
judgment, decree or order of any governmental agency or body or any court,
domestic or foreign, having jurisdiction over the Company or any of its assets
or properties, other than a conflict, breach or default that would not have a
Material Adverse Effect.

 

4.11         Tax
Matters.  The Company has timely
prepared and filed all tax returns required to have been filed by the Company
with all appropriate governmental agencies and

 

6

 

timely paid all taxes shown thereon or otherwise owed by it, except as
would not have a Material Adverse Effect. 
The charges, accruals and reserves on the books of the Company in
respect of taxes for all fiscal periods are adequate in all material respects,
and there are no material unpaid assessments against the Company.  All taxes and other assessments and levies
that the Company is required to withhold or to collect for payment have been
duly withheld and collected and paid to the proper governmental entity or third
party when due.  There are no tax liens
or claims pending or, to the Company’s knowledge, threatened against the Company
or any of its assets or property, other than Permitted Liens.  There are no tax audits or investigations
pending, which if adversely determined would result in a Material Adverse
Effect. There are no outstanding tax sharing agreements or other such
arrangements between the Company and any other Person.  The Company does not have any deferred
compensation arrangements and has not paid or is not required to pay any
deferred compensation which would be subject to Section 409A of the
Internal Revenue Code.

 

4.12         Title
to Properties.  The Company has good
and marketable title to all properties and assets owned by it, in each case
free from liens, encumbrances and defects, other than Permitted Liens.  The Company holds any leased real or Personal
property under valid and enforceable leases. 
The Company does not own any real property.

 

4.13         Certificates,
Authorities and Permits.  The Company
possesses adequate certificates, approvals, authorities or permits (“Permits”)
issued by governmental agencies or bodies necessary to own, lease and license
its assets and properties and conduct the business now operated by it, all of
which are valid and in full force and effect, except where the lack of such
Permits, individually or in the aggregate, would not have a Material Adverse
Effect.  The Company has performed in all
material respects all of its material obligations with respect to such Permits
and no event has occurred that allows, or after notice or lapse of time, would
allow, revocation or termination thereof. The Company has not received any
written notice of proceedings relating to the revocation or modification of any
such certificate, authority or permit that, if determined adversely to the
Company, would, individually or in the aggregate, have a Material Adverse
Effect.

 

4.14         Labor
Matters.

 

(a)           The
Company is not a party to or bound by any collective bargaining agreement.  The Company has not violated in any material
respect any laws, regulations, orders or contract terms, affecting the
collective bargaining rights of employees, labor organizations or any laws,
regulations or orders affecting employment discrimination, equal opportunity
employment or employees’ health, safety, welfare, wages and hours.

 

(b)           (i) There
are no labor disputes existing, or to the Company’s knowledge, threatened,
involving strikes, slow-downs, work stoppages, job actions, disputes, lockouts
or any other disruptions of or by the Company’s employees, (ii) there are
no unfair labor practices or petitions for election pending or, to the Company’s
knowledge, threatened before the National Labor Relations Board or any other
federal, state or local labor commission relating to the Company’s employees, (iii) no
demand for recognition or certification heretofore made by any labor organization
or group of employees is pending with respect to the Company and (iv) to
the

 

7

 

Company’s knowledge, the Company enjoys good labor and employee
relations with its employees.

 

(c)           The
Company is in compliance in all material respects with applicable laws
respecting employment (including laws relating to classification of employees
and independent contractors) and employment practices, terms and conditions of
employment, wages and hours, and immigration and naturalization.  No claims are pending against the Company
before the Equal Employment Opportunity Commission or any other administrative
body or in any court asserting any violation of Title VII of the Civil Rights Act
of 1964, the Age Discrimination Act of 1967, 42 U.S.C. §§ 1981 or 1983 or
any other federal, state or local law, statute or ordinance barring
discrimination in employment.

 

(d)           The
Company is not a party to, or bound by, any employment or other contract or
agreement that contains any severance, termination pay or change of control
liability or obligation, including, without limitation, any “excess parachute
payment,” as defined in Section 280G(b) of the Internal Revenue Code
of 1986, as amended.

 

4.15         Intellectual
Property.

 

(a)           To
the Company’s knowledge, all Intellectual Property of the Company is valid and
enforceable.  No Intellectual Property
owned or licensed by the Company that is necessary for the conduct of Company’s
business as currently conducted or as proposed to be conducted as described in
the SEC Filings is involved in any cancellation, dispute or litigation, and, to
the Company’s knowledge, no such action is threatened.  No issued patent owned by the Company is
involved in any interference, reissue, re-examination or opposition proceeding.

 

(b)           All
of the in-bound licenses and sublicenses and consent, royalty or other
agreements concerning Intellectual Property which are necessary for the conduct
of the Company’s business as currently conducted and as proposed to be
conducted as described in the SEC Filings to which the Company is a party
(other than  generally commercially available, non-custom, off-the-shelf
software application programs having a retail acquisition price of less than
$50,000 per license) (collectively, “In-Bound License Agreements”) are,
to the Company’s knowledge, valid and binding obligations of the Company,
enforceable in accordance with their terms, except to the extent that
enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights generally, and, to the Company’s knowledge,
the Company is not in material breach of any of its obligations under any such
In-Bound License Agreements.

 

(c)           The
Company owns or has the valid right to use all of the Intellectual Property
that is necessary for the conduct of the Company’s business as currently
conducted and as proposed to be conducted as described in the SEC Filings and
for the ownership, maintenance and operation of the Company’s properties and
assets, free and clear of all liens, encumbrances, adverse claims or, with
respect to Intellectual Property owned by the Company, obligations to license
such Intellectual Property, other than licenses of the Intellectual Property
owned by the Company that are entered into in the ordinary course of the
Company’s business.  To the Company’s
knowledge, the Company has a valid and enforceable right to use all third party

 

8

 

Intellectual Property and Confidential Information used or held for use
in the business of the Company.

 

(d)           To
the Company’s knowledge, the conduct of the Company’s business as currently
conducted or as proposed to be conducted as described in the SEC Filings, the
use or exploitation of any Intellectual Property owned by the Company, or to
its knowledge, the use or exploitation of any Intellectual Property licensed by
the Company does not infringe, misappropriate or otherwise materially impair or
conflict with (collectively, “Infringe”) any Intellectual Property
rights of any third party and, to the Company’s knowledge, the Intellectual
Property owned by the Company which is necessary for the conduct of Company’s
business as currently conducted or as proposed to be conducted as set forth in
the SEC Filings is not being Infringed by any third party.  There is no litigation, court order, claim or
assertion pending or outstanding or, to the Company’s knowledge, threatened,
that seeks to limit or challenge the ownership, use, validity or enforceability
of any Intellectual Property owned or licensed by the Company or the Company’s
use of any Intellectual Property owned by a third party.

 

(e)           To
the Company’s knowledge, the consummation of the transactions contemplated
hereby and by the other Transaction Documents will not result in the (i) loss,
material impairment of or material restriction on any of the Intellectual
Property or Confidential Information owned by the Company which is necessary
for the conduct of Company’s business as currently conducted or as proposed to
be conducted as set forth in the SEC Filings or (ii) material breach of
any In-Bound License Agreement.

 

(f)            The
Company has taken reasonable steps to protect the Company’s rights in its Intellectual
Property and Confidential Information. 
Each employee and consultant who has access to the Company’s
Confidential Information necessary for the conduct of Company’s business as
currently conducted has executed an agreement to maintain the confidentiality
of such Confidential Information.  To the
Company’s knowledge, and except pursuant to non-disclosure agreements entered
into between the Company and third parties in the ordinary course of business,
there has been no disclosure of the Company’s Intellectual Property or
Confidential Information to any third party. 
To the Company’s knowledge, there have been no misappropriations or
infringements by any Person of any Intellectual Property used in the conduct or
operation of the Company’s business.

 

4.16         Environmental
Matters.  The Company is not in
violation of any statute, rule, regulation, decision or order of any
governmental agency or body or any court, domestic or foreign, relating to the
use, disposal or release of hazardous or toxic substances or relating to the
protection or restoration of the environment or human exposure to hazardous or
toxic substances (collectively, “Environmental Laws”).  The Company does not own or operate any real
property contaminated with any substance that is subject to any Environmental
Laws, is not liable for any off-site disposal or contamination pursuant to any
Environmental Laws, and is not subject to any claim relating to any
Environmental Laws, which violation, contamination, liability or claim would
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.  There is no pending or,
to the Company’s knowledge, threatened investigation that might lead to such a
claim.

 

9

 

4.17         Litigation.  There are no pending or, to the Company’s
knowledge, threatened actions, suits, proceedings, inquiries or investigations
against or affecting the Company or any of its properties or any of the Company’s
officers and directors in their capacities as such.

 

4.18         Financial
Statements.  The financial statements
included in each SEC Filing present fairly, in all material respects, the
financial position of the Company as of the dates shown and its results of
operations and cash flows for the periods shown, and such financial statements
have been prepared in conformity with United States generally accepted
accounting principles applied on a consistent basis (“GAAP”) (except as
may be disclosed therein or in the notes thereto, and, in the case of quarterly
financial statements, as permitted by Form 10-Q under the Exchange
Act).  Except as set forth in the
financial statements of the Company included in the SEC Filings filed prior to
the date hereof, the Company has not incurred any liabilities, contingent or
otherwise, except those incurred in the ordinary course of business, consistent
with past practices since the date of such financial statements, none of which,
individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect.

 

4.19         Insurance
Coverage.  The Company maintains in
full force and effect insurance coverage that is customary for comparably
situated companies for the business being conducted and properties owned or
leased by the Company.

 

4.20         Compliance
with Nasdaq Continued Listing Requirements. 
The Company is in compliance with applicable Nasdaq continued listing
requirements.  The Company has not
received any written notice with respect to the delisting of the Common Stock
from the Nasdaq National Market.

 

4.21         Brokers
and Finders.  Other than Cowen &
Co.. LLC, the fees of which shall be paid by the Company, no Person will have,
as a result of the transactions contemplated by the Transaction Documents, any
valid right, interest or claim for any commission, fee or other compensation
pursuant to any agreement, arrangement or understanding entered into by or on
behalf of the Company.

 

4.22         No
Directed Selling Efforts or General Solicitation.  Neither the Company nor any Person acting on
its behalf has conducted any general solicitation or general advertising (as
those terms are used in Regulation D under the Securities Act) in connection
with the offer or sale of the Securities.

 

4.23         No
Integrated Offering.  Neither the
Company nor any Person acting on its behalf has, directly or indirectly, made
any offers or sales of any Company security or solicited any offers to buy any
security, under circumstances that would adversely affect reliance by the
Company on Section 4(2) of the Securities Act for the exemption from
registration for the transactions contemplated hereby or would require
registration of the Securities under the Securities Act or would be integrated
under the Nasdaq Marketplace Rules.

 

10

 

4.24         Private
Placement.  Subject to the accuracy
of each Investor’s representations in Section 5 hereof, the offer and sale
of the Securities to the Investors as contemplated hereby is exempt from the
registration requirements of the Securities Act.

 

4.25         Questionable
Payments.  Neither
the Company nor, to the Company’s knowledge, any of its directors, officers,
employees, agents or other Persons acting on behalf of the Company, has on
behalf of the Company or in connection with its business: (a) used any
corporate funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to political activity; (b) made any direct or
indirect unlawful payments to any governmental officials or employees from
corporate funds; (c) established or maintained any unlawful or unrecorded
fund of corporate monies or other assets; (d) made any false or fictitious
entries on the books and records of the Company; or (e) made any unlawful
bribe, rebate, payoff, influence payment, kickback or other unlawful payment of
any nature.

 

4.26         Transactions
with Affiliates.  None of the
officers or directors of the Company and, to the Company’s knowledge, none of
the employees of the Company is presently a party to any transaction with the
Company (other than as holders of stock options and/or warrants, and for
services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or Personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the Company’s
knowledge, any entity in which any officer, director, or any such employee has
a substantial interest or is an officer, director, trustee or partner.

 

4.27         Internal Controls.  The Company is in material compliance with
the provisions of the Sarbanes-Oxley Act of 2002 currently applicable to the
Company.  The Company maintains a system
of internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with GAAP and to
maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences. The Company has established disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and
designed such disclosure controls and procedures to ensure that material
information relating to the Company is made known to the certifying officers by
others within those entities.  The
Company’s certifying officers have evaluated the effectiveness of the Company’s
controls and procedures as of the end of the period covered by the most
recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”).  The Company presented in its
most recently filed periodic report under the Exchange Act the conclusions of
the certifying officers about the effectiveness of the disclosure controls and procedures
based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no
significant changes in the Company’s internal controls (as such term is defined
in Item 307(b) of Regulation S-K) or, to the Company’s knowledge, in other
factors that could significantly affect the Company’s internal controls.  The books, records and accounts of the
Company accurately and fairly reflect, in all material respects, the
transactions in, and dispositions of, the assets of,

 

11

 

and the results of operations of, the Company.  The Company maintains and will continue to
maintain a standard system of accounting established and administered in
accordance with GAAP and the applicable requirements of the Exchange Act.

 

4.28         Independent
Accountants.  Ernst & Young
LLP is the Company’s independent registered public accounting firm as required
by the Exchange Act, and the rules and regulations of the SEC thereunder.

 

4.29         Investment Company.  The Company is not and, after giving effect
to the offering and sale of the Securities, will not be an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

 

4.30         Regulatory
Compliance.  The human clinical
trials, animal studies and other preclinical tests conducted by the Company or
in which the Company has participated or that are described in the SEC Filings
or the results of which are referred to in the SEC Filings, and such studies
and tests conducted on behalf of the Company or that the Company intends to
rely on in support of regulatory approval by the United States Food and Drug
Administration (the “FDA”) or foreign regulatory agencies, were and, if still
pending, are being conducted in all material respects in accordance with
experimental protocols, procedures and controls generally used by qualified
experts in the preclinical or clinical study of new drugs; the descriptions of
the results of such studies, test and trials contained in the SEC Filings are
accurate and complete in all material respects, and, except as set forth in the
SEC Filings, the Company has no knowledge of any other trials, studies or
tests, the results of which the Company believes reasonably call into question
the clinical trial results described or referred to in the SEC Filings when
viewed in the context in which such results are described and the clinical
state of development; and the Company has not received any notices or
correspondence from the FDA or any other domestic or foreign governmental
agency requiring the termination, suspension or material modification, other
than modifications customarily implemented during the drug development process,
of any preclinical tests or clinical trials conducted by or on behalf of the
Company or in which the Company has participated that are described in the SEC
Filings or the results of which are referred to in the SEC Filings.

 

4.31         Material
Contracts.  All material documents,
contracts or other agreements of the Company required to be filed with the SEC have
been filed with the SEC and are included in the exhibits to the SEC Filings.  The description of the contracts, documents
or other agreements contained in the SEC Filings (as the case may be) reflect
in all material respects the terms of the underlying contract, document or
other agreement.   Each such contract,
document or other agreement is in full force and effect and is valid and
enforceable by and against the Company in accordance with its terms.  The Company is not in default in the
observance or performance of any term or obligation to be performed by it under
any such agreement, and no event has occurred which with notice or lapse of
time or both would constitute such a default, in any such case which default or
event, individually or in the aggregate, would result in a Material Adverse
Effect.

 

5.             Representations
and Warranties of the Investors. 
Each of the Investors hereby, severally and not jointly, represents and
warrants to the Company that:

 

12

 

5.1           Organization
and Existence.  Such Investor is a
validly existing corporation, limited partnership or limited liability company
and has all requisite corporate, partnership or limited liability company power
and authority to invest in the Securities pursuant to this Agreement.

 

5.2           Authorization.  The execution, delivery and performance by
such Investor of the Transaction Documents have been duly authorized, and the
Transaction Documents constitute the valid and legally binding obligations of
such Investor, enforceable against such Investor in accordance with their
respective terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability, relating
to or affecting creditors’ rights generally.

 

5.3           Purchase
Entirely for Own Account.  The
Securities to be received by such Investor hereunder will be acquired for such
Investor’s own account, not as nominee or agent, and not with a view to the
resale or distribution of any part thereof in violation of the Securities Act,
and such Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same in violation of the
Securities Act.  Such Investor is not a
broker-dealer registered with the SEC under the Exchange Act or an entity
engaged in a business that would require it to be so registered.

 

5.4           Investment
Experience.  Such Investor
acknowledges that it can bear the economic risk and complete loss of its
investment in the Securities and has such knowledge and experience in financial
or business matters that it is capable of evaluating the merits and risks of
the investment in the Securities contemplated hereby.

 

5.5           Disclosure
of Information.  Such Investor has
had an opportunity to receive all information related to the Company requested
by it and to ask questions of and receive answers from the Company regarding
the Company, its business and the terms and conditions of the offering of the
Securities.  Such Investor acknowledges
receipt of copies of the SEC Filings.

 

5.6           Restricted
Securities.  Such Investor
understands that the Securities are characterized as “restricted securities”
under the U.S. federal securities laws inasmuch as they are being acquired from
the Company in a transaction not involving a public offering and that under
such laws and applicable regulations such securities may be resold without
registration under the Securities Act only in certain limited circumstances.

 

5.7           Legends.  It is understood that, except as provided
below, certificates evidencing the Securities may bear the following or any
similar legend:

 

(a)           “The
securities represented hereby have not been registered under the Securities Act
of 1933, as amended (the “Securities Act”), or any state securities laws.  The securities represented hereby may not be
transferred unless (i) such securities have been registered for sale
pursuant to the Securities Act, (ii) such securities may be sold pursuant
to Rule 144(k), or (iii) the Company has received an opinion of
counsel reasonably satisfactory to it

 

13

 

that such transfer may lawfully be made without registration under the
Securities Act or qualification under applicable state securities laws.”

 

(b)           If
required by the authorities of any state in connection with the issuance of
sale of the Securities, the legend required by such state authority.

 

5.8           Accredited
Investor.  Such Investor is an
accredited investor as defined in Rule 501(a) of Regulation D, as
amended, under the Securities Act.

 

5.9           No
General Solicitation.  Such Investor
did not learn of the investment in the Securities as a result of any public
advertising or general solicitation.

 

5.10         Brokers
and Finders.  No Person will have, as
a result of the transactions contemplated by the Transaction Documents, any
valid right, interest or claim against or upon the Company or an Investor for
any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of such Investor.

 

5.11         Prohibited
Transactions.  During the last thirty
(30) days prior to the date hereof, neither such Investor nor any Affiliate of
such Investor which (x) had knowledge of the transactions contemplated hereby,
(y) has or shares discretion relating to such Investor’s investments or trading
or information concerning such Investor’s investments, including in respect of
the Securities, or (z) is subject to such Investor’s review or input concerning
such Affiliate’s investments or trading (collectively, “Trading Affiliates”)
has, directly or indirectly, (a) acquired, agreed to acquired (other than
pursuant to this Agreement), offered for sale, sold, pledged or otherwise
disposed of any Common Stock, (b) effected or agreed to effect any short
sale, whether or not against the box, established any “put equivalent position”
(as defined in Rule 16a-1(h) under the Exchange Act) with respect to
the Common Stock, granted any other right (including, without limitation, any
put or call option) with respect to the Common Stock or with respect to any
security that includes, relates to or derived any significant part of its value
from the Common Stock or otherwise sought to hedge its position in the Shares
or (c) entered into any swap or other derivatives transaction that
transfers to another, in whole or in part, any of the economic benefits or
risks of ownership of any securities of the Company, whether any such
transaction described in clauses (a), (b) or (c) was or is to be
settled by delivery of securities of the Company, other securities, cash or
otherwise (each, a “Prohibited Transaction”).  Prior to the earliest to occur of (i) the
termination of this Agreement, (ii) the Effective Date or (iii) the
Effectiveness Deadline, such Investor shall not, and shall cause its Trading
Affiliates not to, engage, directly or indirectly, in a Prohibited
Transaction.  Such Investor acknowledges
that the representations, warranties and covenants contained in this Section 5.11
are being made for the benefit of the Investors as well as the Company and that
each of the other Investors shall have an independent right to assert any
claims against such Investor arising out of any breach or violation of the
provisions of this Section 5.11.

 

14

 

6.             Conditions
to Closing.

 

6.1           Conditions
to the Investors’ Obligations. The obligation of each Investor to purchase
the Shares and the Warrants at the Closing is subject to the satisfaction, on
or prior to the Closing Date, of the following conditions, any of which may be
waived by such Investor (as to itself only):

 

(a)           The
representations and warranties made by the Company in Section 4 hereof
qualified as to materiality shall be true and correct on the date hereof and on
the Closing Date (except to the extent any such representation or warranty
expressly speaks as of a specific date, in which case such representation or
warranty shall be true and correct as of such date), and the representations
and warranties made by the Company in Section 4 hereof not qualified as to
materiality shall be true and correct in all material respects on the date
hereof and on the Closing Date (except to the extent any such representation or
warranty expressly speaks as of a specific date, in which case such representation
or warranty shall be true and correct in all material respects as of such
specific date).  The Company shall have
performed in all material respects all obligations and covenants herein
required to be performed by it on or prior to the Closing Date.  The Company shall have delivered a
certificate, executed on behalf of the Company by its Chief Executive Officer
or its Chief Financial Officer, dated as of the Closing Date, certifying to the
fulfillment of the condition specified in this Section 6.1(a).

 

(b)           The
Company shall have obtained any and all consents, permits, approvals,
registrations and waivers necessary or appropriate for consummation of the
purchase and sale of the Securities and the consummation of the other
transactions contemplated by the Transaction Documents to be consummated on or
prior to the Closing Date, all of which shall be in full force and effect.

 

(c)           The
Company shall have executed and delivered the Transaction Documents.

 

(d)           No
judgment, writ, order, injunction, award or decree of or by any court, or
judge, justice or magistrate, including any bankruptcy court or judge, or any
order of or by any governmental authority, shall have been issued, and no
action or proceeding shall have been instituted by any governmental authority,
enjoining or preventing the consummation of the transactions contemplated by
the Transaction Documents.

 

(e)           The
Company shall have delivered a certificate, executed on behalf of the Company
by its Secretary, dated as of the Closing Date, certifying the resolutions
adopted by the Board of Directors of the Company approving the transactions
contemplated by the Transaction Documents, certifying the current versions of
the Certificate of Incorporation and Bylaws of the Company and certifying as to
the signatures and authority of Persons signing the Transaction Documents and
related documents on behalf of the Company.

 

(f)            The
Investors shall have received an opinion from Latham & Watkins LLP,
the Company’s counsel, dated as of the Closing Date, in the form attached
hereto as Exhibit D.

 

15

 

(g)           No
stop order or suspension of trading shall have been imposed by Nasdaq, the SEC
or any other governmental or regulatory body with respect to public trading in
the Common Stock. The Company shall not have received notice of any delisting
on Nasdaq or that it is violation of any Nasdaq rule, regulation or
interpretation which could lead to delisting.

 

(h)           The aggregate purchase
price for the Shares and the Warrants shall be at least $40,000,000, of which
at least $17,000,000 and not more than $20,000,000 of the aggregate purchase
price shall represent investment by Alta BioPharma Partners III, L.P., Alta
BioPharma Partners III GmbH & Co. Beteiligungs KG and Alta Embarcadero
BioPharma Partners III, LLC (collectively, “Alta BioPharma Partners”)
and Persons that are (i) stockholders of the Company as of the date hereof
and (ii) affiliated with members of the board of directors.

 

(i)            The Company’s delivery
(i) to its transfer agent of 
irrevocable instructions to issue and deliver to each Investor (or in
such nominee name(s) as designated by such Investor in writing) certificates evidencing
such number of Shares as set forth on the signature pages to this
Agreement, and (ii) duly executed copies of the Warrants to the Investor.

 

(j)            The
Company’s delivery to the Investors of an executed Lockup Agreement from
Venrock Associates, Warburg Pincus and each of the Company’s directors and
executive officers.

 

(k)           The
Nondisclosure Agreement dated as of January 25, 2006 between Alta
BioPharma Partners and the Company shall be amended or terminated, as mutually
agreeable to Alta BioPharma Partners and the Company, to permit the
transactions contemplated by this Agreement.

 

6.2           Conditions
to Obligations of the Company. The Company’s obligation to sell and issue
the Shares and the Warrants at the Closing is subject to the satisfaction on or
prior to the Closing Date of the following conditions, any of which may be
waived by the Company:

 

(a)           The
representations and warranties made by the Investors in Section 5 hereof
shall be true and correct in all material respects when made and as of the
Closing Date with the same force and effect as if they had been made on and as
of said date (except to the extent any such representation or warranty
expressly speaks as of a specific date, in which case such representation or
warranty shall be true and correct in all material respects as of such specific
date).

 

(b)           The
Investors shall have executed and delivered this Agreement and the Registration
Rights Agreement.

 

(c)           No
judgment, writ, order, injunction, award or decree of or by any court, or
judge, justice or magistrate, including any bankruptcy court or judge, or any
order of or by any governmental authority, shall have been issued, and no
action or proceeding shall have been instituted by any governmental authority,
enjoining or preventing the consummation of the transactions contemplated by
the Transaction Documents.

 

16

 

(d)           The
Investors shall have delivered the Purchase Price for the Shares and the
Warrants to the Company.

 

6.3           Termination
of Obligations to Effect Closing; Effects. 
The obligation of the Company, on the one hand, and the Investors, on the
other hand, to effect the Closing shall terminate as follows:

 

(a)           Upon
the mutual written consent of the Company and the Investors;

 

(b)           By
the Company if any of the conditions set forth in Section 6.2 shall have
become incapable of fulfillment, and shall not have been waived by the Company;

 

(c)           By
an Investor (with respect to itself only) if any of the conditions set forth in
Section 6.1 shall have become incapable of fulfillment, and shall not have
been waived by the Investor; or

 

(d)           By
either the Company or any Investor (with respect to itself only) if the Closing
has not occurred on or prior to April 30, 2006;

 

provided,
however, that, except in the case of clause (i) above,
the party seeking to terminate its obligation to effect the Closing shall not
then be in breach of any of its representations, warranties, covenants or
agreements contained in this Agreement if such breach has resulted in the
circumstances giving rise to such party’s seeking to terminate its obligation
to effect the Closing.

 

7.             Covenants
and Agreements.

 

7.1           No
Conflicting Agreements.  The Company
will not take any action, enter into any agreement or make any commitment that
would conflict or interfere in any material respect with the Company’s
obligations to the Investors under the Transaction Documents.

 

7.2           Insurance.  The Company shall not materially reduce the
insurance coverages described in Section 4.19.

 

7.3           Compliance
with Laws.  The Company will comply
in all material respects with all applicable laws, rules, regulations, orders
and decrees of all governmental authorities.

 

7.4           Listing
of Underlying Shares and Related Matters. 
Promptly following the date hereof, the Company shall take all necessary
action to cause the Shares and the Warrant Shares to be listed on the Nasdaq
National Market.  The Company will use
commercially reasonable efforts to continue the listing and trading of its
Common Stock on the Nasdaq National Market and, in accordance, therewith, will
use commercially reasonable efforts to comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of such
market or exchange, as applicable.

 

17

 

7.5           Termination
of Covenants.  The provisions of
Sections 7.1 through 7.4 shall terminate and be of no further force and effect
on the date on which the Company’s obligations under the Registration Rights
Agreement to register or maintain the effectiveness of any registration
covering the Registrable Securities (as such term is defined in the
Registration Rights Agreement) shall terminate.

 

7.6           Removal
of Legends.   Upon the earlier of (i) the sale pursuant
to the Registration Statement and receipt by the Company or its agents of the
Investor’s written confirmation that such Shares or the Warrant Shares were
disposed of in compliance with the prospectus delivery requirements of the
Securities Act or (ii) Rule 144(k) under the Securities Act becoming
available for the resale of the Investor’s Shares or the Warrant Shares, the
Company shall within three (3) Business Days of an Investor’s written
request, cause certificates evidencing the Investor’s Shares or Warrant Shares
to be replaced with certificates which do not bear such restrictive legends.

 

7.7           Release
From Lockup Agreement.  Without the
prior written consent of Alta BioPharma Partners, the Company shall not release
any Person from his, her or its respective obligations under any Lockup
Agreement.

 

8.             Survival
and Indemnification.

 

8.1           Survival.  The representations, warranties, covenants
and agreements contained in this Agreement shall survive the Closing of the
transactions contemplated by this Agreement for a period of two years, except
as otherwise expressly provided in this Agreement.

 

8.2           Indemnification.  The Company agrees to indemnify and hold
harmless each Investor and its Affiliates and their respective directors,
officers, employees and agents and each person who controls an Investor within
the meaning of the Securities Act from and against any and all losses, claims,
damages, liabilities and expenses (including without limitation reasonable
attorneys’ fees and disbursements and other expenses incurred in connection
with investigating, preparing or defending any action, claim or proceeding,
pending or threatened and the costs of enforcement thereof) (collectively, “Losses”)
to which such Person may become subject as a result of any breach of
representation, warranty, covenant or agreement made by or to be performed on
the part of the Company under the Transaction Documents.  Each Investor agrees, severally and not
jointly, to indemnify and hold harmless the Company and its directors,
officers, employees and agents from and against any and all Losses to which
such Person may become subject as a result of any breach of representation,
warranty, covenant or agreement made by or to be performed on the part of such
Investor under the Transaction Documents.

 

8.3           Conduct
of Indemnification Proceedings.  Any Person entitled to
indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim with respect to which it seeks indemnification and (ii) permit
such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party; provided that any
Person entitled to indemnification hereunder shall have the right to employ
separate

 

18

 

counsel and to participate in the defense of such claim, but the fees
and expenses of such counsel shall be at the expense of such Person unless (a) the
indemnifying party has agreed to pay such fees or expenses, or (b) the
indemnifying party shall have failed to assume the defense of such claim within
five (5) Business Days after written notice thereof and employ counsel
reasonably satisfactory to such Person or (c) in the reasonable judgment
of any such Person, considering the advice of counsel, a conflict of interest
exists between such Person and the indemnifying party with respect to such
claims (in which case, if the Person notifies the indemnifying party in writing
that such Person elects to employ separate counsel at the expense of the
indemnifying party, the indemnifying party shall not have the right to assume
the defense of such claim on behalf of such Person); and provided,
further, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations
hereunder, except to the extent that such failure to give notice shall
materially adversely affect the indemnifying party in the defense of any such
claim or litigation, but the omission so to deliver notice to the indemnifying
party will not relieve it of any liability that it may have to any indemnified
party otherwise than under this Section 8. 
It is understood that the indemnifying party shall not, in connection
with any proceeding in the same jurisdiction, be liable for fees or expenses of
more than one additional firm of attorneys at any time for all such indemnified
parties.  No indemnifying party will,
except with the consent of the indemnified party, consent to entry of any
judgment or enter into any settlement that does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party
of a release from all liability in respect of such claim or litigation.

 

9.             Miscellaneous.

 

9.1           Successors
and Assigns.  This Agreement may not
be assigned by a party hereto without the prior written consent of the Company
or the Investors, as applicable, provided, however, that an Investor may assign
its rights and delegate its duties hereunder in whole or in part to an
Affiliate acquiring some or all of its Shares or Warrant Shares after notice
duly given by such Investor to the Company, provided that no such
assignment or obligation shall affect the obligations of such Investor
hereunder.  The provisions of this
Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties.  Nothing in this Agreement, express or implied,
is intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

 

9.2           Counterparts;
Faxes.  This Agreement may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.  This Agreement may also be
executed via facsimile, which shall be deemed an original.

 

9.3           Titles
and Subtitles.  The titles and
subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

 

19

 

9.4           Notices.  Unless otherwise provided, any notice
required or permitted under this Agreement shall be given in writing and shall
be deemed effectively given as hereinafter described (i) if given by
Personal delivery, then such notice shall be deemed given upon such delivery, (ii) if
given by telex or telecopier, then such notice shall be deemed given upon
receipt of confirmation of complete transmittal, (iii) if given by mail,
then such notice shall be deemed given upon the earlier of (A) receipt of
such notice by the recipient or (B) three days after such notice is
deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be
deemed given one Business Day after delivery to such carrier.  All notices shall be addressed to the party
to be notified at the address as follows, or at such other address as such
party may designate by ten days’ advance written notice to the other party:

 

	
  If to the
  Company:

  	
   

  
	
   

  	
   

  
	
  Sunesis Pharmaceuticals, Inc.

  	
   

  
	
  341 Oyster Point Boulevard

  	
   

  
	
  South San Francisco, California 94080

  	
   

  
	
  Attention: General Counsel

  	
   

  
	
  Fax: (650) 266-3505

  	
   

  
	
   

  	
   

  
	
  With a copy
  to:

  	
   

  
	
   

  	
   

  
	
  Latham & Watkins LLP

  	
   

  
	
  135 Commonwealth Drive

  	
   

  
	
  Menlo Park, California 94025

  
	
  Attention:

  	
  Alan
  Mendelson

  
	
   

  	
  William
  Davisson

  
	
  Fax: (650) 463-2600

  
	
   

  
	
  If to the
  Investors, to the addresses set forth on the signature pages hereto.

  
			

 

9.5           Expenses.  The parties hereto shall pay their own costs
and expenses in connection herewith, provided that the Company shall pay
the reasonable fees and expenses, not to exceed $50,000 in the aggregate, of
Cooley Godward LLP as counsel to Alta BioPharma Partners.  In the event that legal proceedings are
commenced by any party to this Agreement against another party to this
Agreement in connection with this Agreement or the other Transaction Documents,
the party or parties which do not prevail in such proceedings shall severally,
but not jointly, pay their pro rata share of the reasonable attorneys’ fees and
other reasonable out-of-pocket costs and expenses incurred by the prevailing
party in such proceedings.

 

9.6           Amendments
and Waivers.  Any term of this
Agreement may be amended and the observance of any term of this Agreement may
be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and the Investors.  Any amendment or
waiver effected in accordance with this

 

20

 

paragraph shall be binding upon each holder of any Securities purchased
under this Agreement at the time outstanding, each future holder of all such
Securities, and the Company.

 

9.7           Publicity.  Except as set forth below, no public release
or announcement concerning the transactions contemplated hereby shall be issued
by the Company or the Investors without the prior consent of the Company (in
the case of a release or announcement by the Investors) or the Investors (in
the case of a release or announcement by the Company) (which consents shall not
be unreasonably withheld), except as such release or announcement may be
required by law or the applicable rules or regulations of Nasdaq, any
securities exchange or other securities market. 
On the trading day immediately following the date hereof, the Company
shall issue a press release disclosing the transactions contemplated by this
Agreement.  No later than the fourth
trading day following the date hereof, the Company will file a Current Report
on Form 8-K describing the Transaction Documents and attaching the press
release described in the foregoing sentence. 
In addition, the Company will make such other filings (including filing
the Transaction Documents with the SEC) and notices in the manner and time required
by the SEC or Nasdaq.

 

9.8           Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof but shall be interpreted as if it
were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.  To the extent
permitted by applicable law, the parties hereby waive any provision of law
which renders any provision hereof prohibited or unenforceable in any respect.

 

9.9           Entire
Agreement.  This Agreement, including
the exhibits and the Disclosure Schedules, and the other Transaction Documents
constitute the entire agreement among the parties hereof with respect to the
subject matter hereof and thereof and supersede all prior agreements and
understandings, both oral and written, between the parties with respect to the
subject matter hereof and thereof.

 

9.10         Further
Assurances.  The parties shall
execute and deliver all such further instruments and documents and take all
such other actions as may reasonably be required to carry out the transactions
contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

 

9.11         Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of California
without regard to the choice of law principles thereof.  Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of California
located in San Mateo County and the United States District Court for the
Northern District of California for the purpose of any suit, action, proceeding
or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby.  Service of process
in connection with any such suit, action or proceeding may be served on each
party hereto anywhere in the world by the same methods as are specified for the
giving of notices under this Agreement. 
Each of the 

 

21

 

parties hereto irrevocably consents to the jurisdiction of any such
court in any such suit, action or proceeding and to the laying of venue in such
court.  Each party hereto irrevocably
waives any objection to the laying of venue of any such suit, action or
proceeding brought in such courts and irrevocably waives any claim that any
such suit, action or proceeding brought in any such court has been brought in
an inconvenient forum.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO
REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

9.12         Independent
Nature of Investors’ Obligations and Rights.  The obligations of each Investor under any
Transaction Document are several and not joint with the obligations of any
other Investor, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor under any Transaction
Document.  The decision of each Investor
to purchase Securities pursuant to the Transaction Documents has been made by
such Investor independently of any other Investor.  Nothing contained herein or in any
Transaction Document, and no action taken by any Investor pursuant thereto,
shall be deemed to constitute the Investors as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the
Investors are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Documents.  Each Investor acknowledges that no other
Investor has acted as agent for such Investor in connection with making its
investment hereunder and that no Investor will be acting as agent of such
Investor in connection with monitoring its investment in the Securities or
enforcing its rights under the Transaction Documents.  Each Investor shall be entitled to
independently protect and enforce its rights, including, without limitation,
the rights arising out of this Agreement or out of the other Transaction Documents,
and it shall not be necessary for any other Investor to be joined as an
additional party in any proceeding for such purpose.  The Company acknowledges that each of the
Investors has been provided with the same Transaction Documents for the purpose
of closing a transaction with multiple Investors and not because it was
required or requested to do so by any Investor.

 

(Signature page follows)

 

22

 

IN WITNESS
WHEREOF, the parties have executed this Common Stock Purchase Agreement as of
the date first above written.

 

	
  The Company:

  	
  SUNESIS
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Daniel
  N. Swisher, Jr.

  
	
   

  	
  Name: 

  	
  Daniel N.
  Swisher, Jr.

  
	
   

  	
  Title:

  	
  President and
  Chief Executive Officer

  
				

 

 

	
  The
  Investors:

  	
  ABINGWORTH
  BIOEQUITIES MASTER FUND LTD.

  
	
   

  	
  BY:

  	
  Its Manager,
  Abingworth Management

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ James
  Abell

  	
   

  
	
   

  	
  Name: James
  Abell

  
	
   

  	
  Title:
  Director

  
	
   

  	
   

  
	
   

  
	
  Purchase
  Price: $2,917,513.82

  
	
  Number of
  Shares: 466,989

  
	
  Number of
  shares of Common

  
	
  Stock underlying Warrant: 140,097

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Abingworth Bioequities Master Fund Ltd.

  
	
   

  	
  c/o Bisys Hedge Fund Services (Ireland) LTD

  
	
   

  	
  Attention: Glenn Kennedy

  
	
   

  	
  One Georges Quay Plaza, 6th Floor

  
	
   

  	
  Dublin 2, Ireland

  
						

 

 

	
  The
  Investors:

  	
  ALTA
  BIOPHARMA PARTNERS III, L.P.

  
	
   

  	
  BY:

  	
  ALTA
  BIOPHARMA MANAGEMENT III, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Hilary
  Strain

  	
   

  
	
   

  	
  Name:   Hilary
  Strain

  
	
   

  	
  Title: Vice
  President, Finance and Administration

  
	
   

  	
   

  
	
   

  
	
  Purchase
  Price: $11,057,918.75

  
	
  Number of
  Shares: 1,769,975

  
	
  Number of
  shares of Common

  
	
  Stock underlying Warrant: 530,992

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Alta BioPharma Partners III, L.P.

  
	
   

  	
  Attention: Elaine Penny

  
	
   

  	
  One Embarcadero Center, 37th Floor

  
	
   

  	
  San Francisco, CA 94111

  
	
   

  	
   

  
	
  TAX ID
  NUMBER: 

  	
   

  
								

 

 

	
  The
  Investors:

  	
  Alta
  BioPharma Partners III GmbH & Co. Beteiligungs KG

  
	
   

  	
  BY:

  	
  ALTA
  BIOPHARMA MANAGEMENT III, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Hilary
  Strain

  	
   

  
	
   

  	
   

  	
  Name: Hilary
  Strain

  
	
   

  	
   

  	
  Title: Vice
  President, Finance and Administration

  
	
   

  	
   

  
	
   

  	
   

  
	
  Purchase
  Price: $742,640.33

  	
   

  
	
  Number of
  Shares: 118,870

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 35,661

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Alta BioPharma Partners III GmbH & Co. 

  Beteiligungs KG

  
	
   

  	
  Attention: Elaine Penny

  
	
   

  	
  One Embarcadero Center, 37th Floor

  
	
   

  	
  San Francisco, CA 94111

  
	
   

  	
   

  
	
  TAX ID
  NUMBER:

  	
   

  
							

 

 

	
  The
  Investors:

  	
  ALTA
  EMBARCADERO BIOPHARMA PARTNERS III, LLC

  
	
   

  
	
   

  
	
   

  	
  By:

  	
    /s/ Hilary
  Strain

  	
   

  
	
   

  	
  Name:  Hilary
  Strain

  
	
   

  	
  Title: Vice
  President, Finance and Administration

  
	
   

  
	
   

  
	
  Purchase
  Price: $272,509.74

  	
   

  
	
  Number of
  Shares: 43,619

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 13,086

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Alta Embarcadero BioPharma Partners III, LLC

  
	
   

  	
  Attention: Elaine Penny

  
	
   

  	
  One Embarcadero Center, 37th Floor

  
	
   

  	
  San Francisco, CA 94111

  
	
   

  	
   

  
	
  TAX ID
  NUMBER:

  	
   

  
							

 

 

	
  The
  Investors:

  	
  BIOTECHNOLOGY
  VALUE FUND, L.P.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Mark
  Lambert

  	
   

  
	
   

  	
  Name:

  	
  Mark Lambert

  
	
   

  	
  Title:

  	
  President of
  BVF Inc.

  
	
   

  	
  General
  Partner of BVF Partners L.P.

  
	
   

  	
  General
  Partner of Biotechnology Value Fund, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Purchase
  Price: $654,319.43

  	
   

  
	
  Number of
  Shares: 104,733

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 31,420

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Biotechnology Value Fund, L.P.

  
	
   

  	
  Attention: Elizabeth Delaney

  
	
   

  	
  900 N. Michigan Avenue

  
	
   

  	
  Suite 1100

  
	
   

  	
  Chicago, IL 60611

  
						

 

 

	
  The
  Investors:

  	
  BIOTECHNOLOGY
  VALUE FUND II, L.P.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Mark
  Lambert

  	
   

  
	
   

  	
  Name: Mark
  Lambert

  
	
   

  	
  Title:

  	
  President of
  BVF Inc.

  
	
   

  	
  General
  Partner of BVF Partners L.P.

  
	
   

  	
  General
  Partner of Biotechnology Value Fund, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Purchase
  Price: $449,195.25

  	
   

  
	
  Number of Shares:
  71,900

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 21,570

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  	
   

  
	
   

  	
  Biotechnology Value Fund II, L.P.

  
	
   

  	
  Attention: Elizabeth Delaney

  
	
   

  	
  900 N. Michigan Avenue

  
	
   

  	
  Suite 1100

  
	
   

  	
  Chicago, IL 60611

  
					

 

 

	
  The
  Investors:

  	
  INVESTMENT
  10, L.L.C.

  
	
   

  	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Mark
  Lambert

  	
   

  
	
   

  	
  Name:

  	
  Mark Lambert

  
	
   

  	
  Title:

  	
  President of
  BVF Inc.

  
	
   

  	
  General
  Partner of BVF Partners L.P.

  
	
   

  	
  General
  Partner of Biotechnology Value Fund, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Purchase
  Price: $190,042.74

  	
   

  
	
  Number of
  Shares: 30,419

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 9,126

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  	
   

  
	
   

  	
  Investment 10, L.L.C.

  
	
   

  	
  Attention: Elizabeth Delaney

  
	
   

  	
  900 N. Michigan Avenue

  
	
   

  	
  Suite 1100

  
	
   

  	
  Chicago, IL 60611

  
					

 

 

	
  The
  Investors:

  	
  BVF
  INVESTMENTS, L.L.C.

  
	
   

  	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Mark
  Lambert

  	
   

  
	
   

  	
  Name: Mark
  Lambert

  
	
   

  	
  Title:

  	
  President of
  BVF Inc.

  
	
   

  	
  General
  Partner of BVF Partners L.P.

  
	
   

  	
  General
  Partner of Biotechnology Value Fund, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Purchase
  Price: $1,724,559.90

  	
   

  
	
  Number of
  Shares: 276,040

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 82,812

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  	
   

  
	
   

  	
  BVF Investments, L.L.C.

  
	
   

  	
  Attention: Elizabeth Delaney

  
	
   

  	
  900 N. Michigan Avenue

  
	
   

  	
  Suite 1100

  
	
   

  	
  Chicago, IL 60611

  
					

 

 

	
  The
  Investors:

  	
  DOMAIN
  PUBLIC EQUITY PARTNERS, L.P.

  
	
   

  	
  BY: Domain
  Public Equity Associates, L.L.C.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Nicole
  Vitullo

  	
   

  
	
   

  	
  Name:

  	
  Nicole
  Vitullo

  
	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $5,030,193.38

  	
   

  
	
  Number of
  Shares: 805,153

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 241,546

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  	
   

  
	
   

  	
  Domain Public Equity Partners, L.P.

  
	
   

  	
  c/o Domain Associates

  
	
   

  	
  One Palmer Sq. Suite 515

  
	
   

  	
  Princeton, NJ 08542

  
						

 

 

	
  The
  Investors:

  	
  THE
  BOARD OF TRUSTEES OF THE LELAND

  
	
   

  	
  STANFORD
  JUNIOR UNIVERSITY (SBST)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Martina
  S. Poquet

  	
   

  
	
   

  	
  Name:
  Martina S. Poquet

  
	
   

  	
  Title:

  	
  Director,
  Separate Investments Division

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $99,997.51

  	
   

  
	
  Number of
  Shares: 16,006

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 4,802

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  	
   

  
	
   

  	
  The Board of Trustees of the Leland Stanford Junior 

  University (SBST)

  
	
   

  	
  c/o Stanford Management Company

  
	
   

  	
  Attention: Martina Poquet

  
	
   

  	
  2770 Sand Hill Road

  
	
   

  	
  Menlo Park, CA 94025

  
					

 

 

	
  The
  Investors:

  	
  Warburg, Pincus Equity Partners, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Warburg
  Pincus Partners, LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Warburg,
  Pincus & Co.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  Jonathan Leff

  	
   

  
	
   

  	
  Name: Jonathan Leff

  
	
   

  	
  Title:  Partner

  
	
   

  	
   

  
	
  Purchase
  Price: $4,753,535.32

  	
   

  	
   

  
	
  Number of
  Shares: 760,870

  	
   

  	
   

  
	
  Number of
  shares of Common

  	
   

  	
   

  
	
  Stock underlying Warrant: 228,261

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address for
  Notice:

  	
   

  	
   

  
	
   

  	
   

  	
  Warburg, Pincus Equity Partners, L.P.

  
	
   

  	
   

  	
  Attention: Jonathan Leff

  
	
   

  	
   

  	
  466 Lexington Avenue

  
	
   

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
   

  
	
  TAX ID NUMBER:

  	
   

  	
   

  
						

 

 

	
  The
  Investors:

  	
  Warburg, Pincus Netherlands Equity Partners I, C.V.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Warburg Pincus
  Partners, LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Warburg,
  Pincus & Co.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  Jonathan Leff

  	
   

  
	
   

  	
  Name:  Jonathan Leff

  
	
   

  	
  Title:   Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $251,505.60

  	
   

  
	
  Number of
  Shares: 40,257

  	
   

  	
   

  
	
  Number of
  shares of Common

  	
   

  	
   

  
	
  Stock underlying Warrant: 12,077

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address for
  Notice:

  	
   

  	
   

  
	
   

  	
   

  	
  Warburg, Pincus Netherlands Equity Partners I, C.V.

  
	
   

  	
   

  	
  Attention: Jonathan Leff

  
	
   

  	
   

  	
  466 Lexington Avenue

  
	
   

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
   

  
	
  TAX ID NUMBER:

  	
   

  	
   

  
						

 

 

	
  The
  Investors:

  	
  Warburg, Pincus Netherlands Equity Partners III, C.V.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Warburg
  Pincus Partners, LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Warburg,
  Pincus & Co.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/  Jonathan Leff

  	
   

  
	
   

  	
  Name: Jonathan
  Leff

  
	
   

  	
  Title:   Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase Price:
  $25,152.46

  	
   

  
	
  Number of
  Shares: 4,026

  	
   

  	
   

  
	
  Number of
  shares of Common

  	
   

  	
   

  
	
  Stock underlying Warrant: 1,208

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address for
  Notice:

  	
   

  	
   

  
	
   

  	
   

  	
  Warburg, Pincus Netherlands Equity Partners III, C.V.

  
	
   

  	
   

  	
  Attention: Jonathan Leff

  
	
   

  	
   

  	
  466 Lexington Avenue

  
	
   

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
   

  
	
  TAX ID NUMBER:

  	
   

  	
   

  
						

 

 

	
  The
  Investors:

  	
  Deerfield
  Special Situations Fund International, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Darren
  Levine

  	
   

  
	
   

  	
  Name: Darren
  Levine

  
	
   

  	
  Title:   CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $3,498,475.00

  	
   

  
	
  Number of
  Shares: 560,000

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 167,000

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Deerfield Special Situations Fund International, Ltd.

  
	
   

  	
  Attention: Darren Levine

  
	
   

  	
  780 Third Avenue - 37th Floor

  
	
   

  	
  New York, NY 10017

  
						

 

 

	
  The
  Investors:

  	
  Deerfield
  Special Situations Fund, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Darren
  Levine

  	
   

  
	
   

  	
  Name: Darren
  Levine

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $1,886,670.00

  	
   

  
	
  Number of
  Shares: 302,000

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 90,000

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Deerfield Special Situations Fund, Ltd.

  
	
   

  	
  Attention: Darren Levine

  
	
   

  	
  780 Third Avenue - 37th Floor

  
	
   

  	
  New York, NY 10017

  
						

 

 

	
  The
  Investors:

  	
  Deerfield
  Partners, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Darren
  Levine

  	
   

  
	
   

  	
  Name: Darren
  Levine

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $2,020,116.76

  	
   

  
	
  Number of
  Shares: 323,306

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 99,092

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Deerfield Partners, L.P.

  
	
   

  	
  Attention: Darren Levine

  
	
   

  	
  780 Third Avenue - 37th Floor

  
	
   

  	
  New York, NY 10017

  
						

 

 

	
  The
  Investors:

  	
  Deerfield
  International Limited

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Darren
  Levine

  	
   

  
	
   

  	
  Name: Darren
  Levine

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $2,655,125.00

  	
   

  
	
  Number of
  Shares: 425,000

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 127,000

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Deerfield International Limited

  
	
   

  	
  Attention: Darren Levine

  
	
   

  	
  780 Third Avenue - 37th Floor

  
	
   

  	
  New York, NY 10017

  
						

 

 

	
  The
  Investors:

  	
  Baker
  Bros. Investments, L.P.

  
	
   

  	
  BY: Baker
  Bros. Capital, L.P. (general partner)

  
	
   

  	
  BY: Baker
  Bros. Capital (GP), LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Julian
  Baker

  	
   

  
	
   

  	
  Name: Julian
  Baker

  
	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $214,807.81

  	
   

  
	
  Number of
  Shares: 34,383

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 10,315

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Baker Bros. Investments, L.P.

  
	
   

  	
  Attention: Julian Baker

  
	
   

  	
  667 Madison Avenue, 17th Floor

  
	
   

  	
  New York, NY 10021

  
						

 

 

	
  The
  Investors:

  	
  Baker
  Bros. Investments II, L.P.

  
	
   

  	
  BY: Baker
  Bros. Capital, L.P. (general partner)

  
	
   

  	
  BY: Baker
  Bros. Capital (GP), LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Julian
  Baker

  	
   

  
	
   

  	
  Name: Julian
  Baker

  
	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $190,705.00

  	
   

  
	
  Number of
  Shares: 30,525

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 9,158

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Baker Bros. Investments II, L.P.

  
	
   

  	
  Attention: Julian Baker

  
	
   

  	
  667 Madison Avenue, 17th Floor

  
	
   

  	
  New York, NY 10021

  
						

 

 

	
  The
  Investors:

  	
  Baker
  Biotech Fund I, L.P.

  
	
   

  	
  BY: Baker
  Bros. Capital, L.P. (general partner)

  
	
   

  	
  BY: Baker
  Bros. Capital (GP), LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Julian
  Baker

  	
   

  
	
   

  	
  Name:  Julian
  Baker

  
	
   

  	
  Title:

  	
   Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $2,129,297.91

  	
   

  
	
  Number of
  Shares: 340,824

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 102,247

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Baker Biotech Fund I, L.P.

  
	
   

  	
  Attention: Julian Baker

  
	
   

  	
  667 Madison Avenue, 17th Floor

  
	
   

  	
  New York, NY 10021

  
						

 

 

	
  The
  Investors:

  	
  Baker
  Biotech Fund II, L.P.

  
	
   

  	
  BY: Baker
  Bros. Capital II, L.P. (general partner)

  
	
   

  	
  BY: Baker
  Bros. Capital II (GP), LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Julian
  Baker

  	
   

  
	
   

  	
  Name: Julian
  Baker

  
	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $1,940,942.13

  	
   

  
	
  Number of
  Shares: 310,675

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 93,203

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Baker Biotech Fund II, L.P.

  
	
   

  	
  Attention: Julian Baker

  
	
   

  	
  667 Madison Avenue, 17th Floor

  
	
   

  	
  New York, NY 10021

  
						

 

 

	
  The
  Investors:

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

  
	
   

  	
  BY: Baker
  Bros. Capital II (Z), L.P. (general partner)

  
	
   

  	
  BY: Baker
  Bros. Capital II (Z) (GP), LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Julian
  Baker

  	
   

  
	
   

  	
  Name: Julian
  Baker

  
	
   

  	
  Title:  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $253,504.80

  	
   

  
	
  Number of
  Shares: 40,577

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 12,173

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

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

  
	
   

  	
  Attention: Julian Baker

  
	
   

  	
  667 Madison Avenue, 17th Floor

  
	
   

  	
  New York, NY 10021

  
					

 

 

	
  The
  Investors:

  	
  Baker
  Biotech Fund III, L.P.

  
	
   

  	
  BY: Baker
  Bros. Capital III, L.P. (general partner)

  
	
   

  	
  BY: Baker
  Bros. Capital III (GP), LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Julian
  Baker

  	
   

  
	
   

  	
  Name: Julian
  Baker

  
	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $1,876,742.79

  	
   

  
	
  Number of
  Shares: 300,399

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 90,120

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  Baker Biotech Fund III, L.P.

  
	
   

  	
  Attention: Julian Baker

  
	
   

  	
  667 Madison Avenue, 17th Floor

  
	
   

  	
  New York, NY 10021

  
						

 

 

	
  The
  Investors:

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

  
	
   

  	
  BY: Baker
  Bros. Capital III (Z), L.P. (general partner)

  
	
   

  	
  BY: Baker
  Bros. Capital III (Z) (GP), LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Julian
  Baker

  	
   

  
	
   

  	
  Name:   Julian
  Baker

  
	
   

  	
  Title:

  	
    Managing
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $306,771.00

  	
   

  
	
  Number of
  Shares: 49,103

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 14,731

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

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

  
	
   

  	
  Attention: Julian Baker

  
	
   

  	
  667 Madison Avenue, 17th Floor

  
	
   

  	
  New York, NY 10021

  
						

 

 

	
  The
  Investors:

  	
  14159,
  L.P.

  
	
   

  	
  BY: 14159
  Capital, L.P. (general partner)

  
	
   

  	
  BY: 14159
  Capital (GP), LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Julian
  Baker

  	
   

  
	
   

  	
  Name: Julian
  Baker

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase
  Price: $129,498.00

  	
   

  
	
  Number of
  Shares: 20,728

  	
   

  
	
  Number of
  shares of Common

  	
   

  
	
  Stock underlying Warrant: 6,217

  	
   

  
	
   

  	
   

  
	
  Address for
  Notice:

  
	
   

  	
  14159, L.P.

  
	
   

  	
  Attention: Julian Baker

  
	
   

  	
  667 Madison Avenue, 17th Floor

  
	
   

  	
  New York, NY 10021

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]