Document:

Warrant Agreement with Hercules Technology II

 Exhibit 10.24 
 THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL) REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933 ACT AS AMENDED, OR
ANY APPLICABLE STATE SECURITIES LAWS. 
 WARRANT AGREEMENT 
 To Purchase Shares of the Series C Convertible Preferred Stock of 
 ELIXIR PHARMACEUTICALS, INC. 

Dated as of November 21, 2006 (the “Effective Date”) 
 WHEREAS, Elixir Pharmaceuticals, Inc., a Delaware corporation (the “Company”), has entered into a Loan and Security Agreement of even
date herewith (the “Loan Agreement”) with Hercules Technology II, L.P., a Delaware limited partnership (the “Warrantholder”); 
 WHEREAS, the Company desires to grant to Warrantholder, in consideration for, among other things, the financial accommodations provided for in the Loan Agreement, the right to purchase shares of its Series C
Convertible Preferred Stock pursuant to this Warrant Agreement (the “Agreement” or the “Warrant”); 
 NOW,
THEREFORE, in consideration of the Warrantholder executing and delivering the Loan Agreement and providing the financial accommodations contemplated therein, and in consideration of the mutual covenants and agreements contained herein, the Company
and Warrantholder agree as follows: 
 SECTION 1. GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK. 
 For value received, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions
hereinafter set forth, to subscribe for and purchase, from the Company, 444,800 shares of Preferred Stock (as defined below), at a purchase price of $1.00 per share (the “Exercise Price”). The number and Exercise Price of such
shares are subject to adjustment as provided in Section 8. As used herein, the following terms shall have the following meanings: 
 “Act” means the Securities Act of 1933, as amended. 
 “Charter” means the Company’s
Certificate of Incorporation, as may be amended and restated from time to time. 
 “Common Stock” means the Company’s
common stock, $0.001 par value per share. 
 “Initial Public Offering” means the initial public offering of the
Company’s Common Stock pursuant to a registration statement under the Act, which public offering has been declared effective by the Securities and Exchange Commission (“SEC”). 
 “Merger Event” means a merger or consolidation involving the Company in which the Company is not the surviving entity, or in which the
outstanding shares of the Company’s capital stock are otherwise converted into or exchanged for shares of capital of another entity. 
  

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 “Preferred Stock” means the Series C Convertible Preferred Stock, $0.001 par value per
share, of the Company and any other stock into or for which the Series C Convertible Preferred Stock may be converted or exchanged, and upon and after the occurrence of an event which results in the automatic or voluntary conversion, redemption or
retirement of all (but not less than all) of the outstanding shares of such Preferred Stock, including, without limitation, the consummation of an Initial Public Offering of the Common Stock in which such a conversion occurs, then from and after the
date upon which such outstanding shares are so converted, redeemed or retired, “Preferred Stock” shall mean such Common Stock. 
 “Purchase Price” means, with respect to any exercise of this Agreement, an amount equal to the Exercise Price as of the relevant time multiplied by the number of shares of Preferred Stock requested to be exercised under
this Agreement pursuant to such exercise. 
 “Rights Agreement” means that certain Amended and Restated Stockholder Rights
Agreement by and among the Company and certain of its shareholders dated June 19, 2006, as may be amended or restated from time to time. 
 “Tranche B Advance” has the meaning given in the Loan Agreement. 
 SECTION 2. TERM OF THE AGREEMENT. 
 Except as otherwise provided for herein, the term of this Agreement and the right to purchase Preferred Stock as granted herein shall commence on the
Effective Date and shall be exercisable for a period ending upon the earlier to occur of (i) seven (7) years from the Effective Date; or (ii) three (3) years after the Initial Public Offering. 
 SECTION 3. EXERCISE OF THE PURCHASE RIGHTS. 
 (a)
Exercise. The purchase rights set forth in this Agreement are exercisable by the Warrantholder, in whole or in part, at any time, or from time to time, prior to the expiration of the term set forth in Section 2, by tendering to the Company at
its principal office a notice of exercise in the form attached hereto as Exhibit I (the “Notice of Exercise”), duly completed and executed. Promptly upon receipt of the Notice of Exercise and the payment of the Purchase Price
in accordance with the terms set forth below, and in no event later than three (3) business days thereafter, the Company shall issue to the Warrantholder a certificate for the number of shares of Preferred Stock purchased and shall execute the
acknowledgment of exercise in the form attached hereto as Exhibit II (the “Acknowledgment of Exercise”) indicating the number of shares which remain subject to future purchases, if any. 
 The Purchase Price may be paid at the Warrantholder’s election either (i) by cash or check, or (ii) by surrender of all or a portion of
the Warrant for shares of Preferred Stock to be exercised under this Agreement and, if applicable, an amended Agreement representing the remaining number of shares purchasable hereunder, as determined below (“Net Issuance”). If the
Warrantholder elects the Net Issuance method, the Company will issue Preferred Stock in accordance with the following formula: 
  

					
	X	 	=	 	Y(A-B)
		 		 	 A

  

									
	Where:	 		 	X	 	=	 	the number of shares of Preferred Stock to be issued to the Warrantholder.

  

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		 		 		 		 	 Y = the number of shares of Preferred Stock requested to be exercised under this Agreement (which shall include both the number of shares of Preferred Stock to
be issued to the Warrantholder and the number of shares of Preferred Stock subject to the portion of the Warrant being cancelled in payment of the exercise price).

		 		 		 		 	 A = the fair market value of one (1) share of Preferred Stock at the time of issuance of such shares of Preferred Stock.

		 		 	B	 	=	 	the Exercise Price.

 For purposes of the above calculation, current fair market value of Preferred Stock shall mean
with respect to each share of Preferred Stock: 
 (i) if the exercise is in connection with an Initial Public Offering, and if
the Company’s Registration Statement relating to such Initial Public Offering has been declared effective by the SEC, then the fair market value per share shall be the product of (x) the initial “Price to Public” of the Common
Stock specified in the final prospectus with respect to the offering and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such exercise; 
 (ii) if the exercise is after, and not in connection with an Initial Public Offering, and: 
 (A) if the Common Stock is traded on a securities exchange, the fair market value shall be deemed to be the product of (x) the
average of the closing prices over a five (5) day period ending three days before the day the current fair market value of the securities is being determined and (y) the number of shares of Common Stock into which each share of Preferred
Stock is convertible at the time of such exercise; or 
 (B) if the Common Stock is traded over-the-counter, the fair market
value shall be deemed to be the product of (x) the average of the closing bid and asked prices quoted on the NASDAQ system (or similar system) over the five (5) day period ending three days before the day the current fair market value of
the securities is being determined and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such exercise; 
 (iii) if at any time the Common Stock is not listed on any securities exchange or quoted in the NASDAQ National Market or the
over-the-counter market, the current fair market value of Preferred Stock shall be the product of (x) the highest price per share which the Company could obtain from a willing buyer (not a current employee or director) for shares of Common
Stock sold by the Company, from authorized but unissued shares, as determined in good faith by its Board of Directors and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such
exercise, unless the Company shall become subject to a Merger Event, in which case the fair market value of Preferred Stock shall be deemed to be the per share value received by the holders of the Company’s Preferred Stock on a common
equivalent basis pursuant to such Merger Event. 
 Upon partial exercise by either cash or Net Issuance, the Company shall promptly issue an
amended Agreement representing the remaining number of shares purchasable hereunder. All other terms and conditions of such amended Agreement shall be identical to those contained herein, including, but not limited to the Effective Date hereof.

  

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 (b) Exercise Prior to Expiration. To the extent this Agreement is not previously exercised as to all
Preferred Stock subject hereto, and if the fair market value of one share of the Preferred Stock is greater than the Exercise Price then in effect, this Agreement shall be deemed automatically exercised pursuant to clause (ii) of
Section 3(a) (even if not surrendered) immediately before its expiration in accordance with Section 2. For purposes of such automatic exercise, the fair market value of one share of the Preferred Stock upon such expiration shall be
determined pursuant to Section 3(a). To the extent this Agreement or any portion thereof is deemed automatically exercised pursuant to this Section 3(b), the Company agrees to promptly notify the Warrantholder of the number of shares of
Preferred Stock, if any, the Warrantholder is to receive by reason of such automatic exercise. 
 SECTION 4. RESERVATION OF SHARES. 
 During the term of this Agreement, the Company will at all times have authorized and reserved a sufficient number of shares of its Preferred Stock to
provide for the exercise of the rights to purchase Preferred Stock as provided for herein, and shall have authorized and reserved a sufficient number of shares of its Common Stock to provide for the conversion of the Preferred Shares available
hereunder. 
 SECTION 5. NO FRACTIONAL SHARES OR SCRIP. 
 No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Agreement pursuant to clause (ii) of Section 3(a), but in lieu of such fractional shares the Company
shall make a cash payment therefor upon the basis of the positive difference (if any) between the fair market value of a single share of Preferred Stock and the Exercise Price then in effect. 
 SECTION 6. NO RIGHTS AS SHAREHOLDER/STOCKHOLDER. 
 This Agreement does not entitle the Warrantholder to any voting rights or other rights as a shareholder/stockholder of the Company prior to the exercise of this Agreement. 
 SECTION 7. WARRANTHOLDER REGISTRY. 
 The Company shall maintain a registry showing the name and
address of the registered holder of this Agreement. Warrantholder’s initial address, for purposes of such registry, is set forth below Warrantholder’s signature on this Agreement. Warrantholder may change such address by giving written
notice of such changed address to the Company. 
 SECTION 8. ADJUSTMENT RIGHTS. 
 The Exercise Price and the number of shares of Preferred Stock purchasable hereunder are subject to adjustment, as follows: 
 (a) If at any time there shall be Merger Event, then, as a part of such Merger Event, lawful provision shall be made so that the Warrantholder shall
thereafter be entitled to receive, upon exercise of this Agreement and in lieu of Preferred Stock, the number of shares of preferred stock or other securities or property of the successor corporation resulting from such Merger Event that would have
been issuable if Warrantholder had exercised this Agreement immediately prior to the Merger Event. In any such case, appropriate adjustment (as determined in good faith by the Company’s Board of Directors) shall be made in the application of
the provisions of this Agreement with respect to the rights and interests of the Warrantholder after the Merger Event to the end that the provisions of this Agreement (including adjustments of the Exercise Price and number of shares of Preferred
Stock purchasable) shall be applicable in their entirety, and to the greatest extent possible. Without limiting the foregoing, in connection with any Merger Event, upon the closing thereof, the successor or surviving entity shall assume the
obligations of this Agreement. In connection with a Merger Event and upon Warrantholder’s written election to the 

  

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Company to participate therein received by the Company within at least five (5) business days after the Company has notified Warrantholder in writing of
the Merger Event, the Company shall cause this Agreement to be exchanged for the consideration that Warrantholder would have received if Warrantholder chose to exercise its right to have shares issued pursuant to the Net Issuance provisions of this
Agreement without actually exercising such right, acquiring such shares and exchanging such shares for such consideration. 
 (b)
Reclassification of Shares. Except as set forth in Section 8(a), if the Company at any time shall, by combination, reclassification, exchange or subdivision of securities or otherwise, change any of the securities as to which purchase rights
under this Agreement exist into the same or a different number of securities of any other class or classes, this Agreement shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result
of such change with respect to the securities which were subject to the purchase rights under this Agreement immediately prior to such combination, reclassification, exchange, subdivision or other change. 
 (c) Subdivision or Combination of Shares. Except as set forth in Section 8(a) and (b), if the Company at any time shall combine or subdivide its
Preferred Stock, (i) in the case of a subdivision, the Exercise Price shall be proportionately decreased, and the number of shares of Preferred Stock issuable upon exercise of this Agreement shall be proportionately increased, or (ii) in
the case of a combination, the Exercise Price shall be proportionately increased, and the number of shares of Preferred Stock issuable upon the exercise of this Agreement shall be proportionately decreased. 
 (d) Stock Dividends. Except as set forth in Section 8(a), (b) and (c), if the Company at any time while this Agreement is outstanding and
unexpired shall: 
 (i) pay a dividend with respect to the Preferred Stock payable in Preferred Stock, then the Exercise Price
shall be adjusted, from and after the date of determination of stockholders entitled to receive such dividend or distribution, to that price determined by multiplying the Exercise Price in effect immediately prior to such date of determination by a
fraction (A) the numerator of which shall be the total number of shares of Preferred Stock outstanding immediately prior to such dividend or distribution, and (B) the denominator of which shall be the total number of shares of Preferred
Stock outstanding immediately after such dividend or distribution; or 
 (ii) make any other distribution with respect to
Preferred Stock (or stock into which the Preferred Stock is convertible), except any distribution specifically provided for in any other clause of this Section 8, then, in each such case, provision shall be made by the Company such that the
Warrantholder shall receive upon exercise or conversion of this Warrant a proportionate share of any such distribution as though it were the holder of the Preferred Stock (or other stock for which the Preferred Stock is convertible) as of the record
date fixed for the determination of the stockholders of the Company entitled to receive such distribution. 
 (e) Antidilution Rights.
Additional antidilution rights contained in the Charter shall be applicable to the Preferred Stock issuable hereunder as if such Preferred Stock were issued and outstanding. The Company shall promptly provide the Warrantholder with any restatement,
amendment, modification or waiver of the Charter; provided, that no such amendment, modification or waiver shall impair or reduce the antidilution rights applicable to the Preferred Stock as of the date hereof unless such amendment,
modification or waiver affects the rights of Warrantholder with respect to the Preferred Stock in the same manner as it affects all other holders of Preferred Stock. If and to the extent that there is any notice under the Charter required to be
provided to holders of Preferred Stock regarding any dilutive event, the Company shall 

  

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provide a copy of such notice to the Warrantholder. For the avoidance of doubt, there shall be no duplicate anti-dilution adjustment pursuant to this
subsection (e), the foregoing subsection (d) and the Charter. 
 (f) Notice of Adjustments. If: (i) the Company shall declare any
dividend or distribution upon its stock, whether in stock, cash, property or other securities (assuming Warrantholder as Lender consents to a dividend involving cash, property or other securities); (ii) the Company shall offer for subscription
prorata to the holders of outstanding shares of Preferred Stock any additional shares of stock of any class or other rights; (iii) there shall be any Merger Event; (iv) there shall be an Initial Public Offering; (v) the Company shall
sell, lease, license or otherwise transfer all or substantially all of its assets; or (vi) there shall be any voluntary dissolution, liquidation or winding up of the Company; then, in connection with each such event, the Company shall send to
the Warrantholder: (A) at least ten (10) days’ (or such longer period as provided to the holders of the outstanding shares of Preferred Stock) prior written notice of the date on which the books of the Company shall close or a record
shall be taken for such dividend, distribution, subscription rights (specifying the date on which the holders of Preferred Stock shall be entitled thereto) or for determining rights to vote in respect of such Merger Event, dissolution, liquidation
or winding up; (B) in the case of any such Merger Event, sale, lease, license or other transfer of all or substantially all assets, dissolution, liquidation or winding up, at least ten (10) days’ (or such longer period as provided to
the holders of the outstanding shares of Preferred Stock) prior written notice of the date when the same shall take place (and specifying the date on which the holders of Preferred Stock shall be entitled to exchange their Preferred Stock for
securities or other property deliverable upon such Merger Event, dissolution, liquidation or winding up); and (C) in the case of an Initial Public Offering, the Company shall give the Warrantholder at least ten (10) days’ (or such
longer period as provided to the holders of the outstanding shares of Preferred Stock) written notice prior to the effective date thereof. 
 Each such written notice shall set forth, in reasonable detail, (i) the event requiring the notice, and (ii) if any adjustment is required to be made, (A) the amount of such adjustment, (B) the method by which such
adjustment was calculated, (C) the adjusted Exercise Price (if such Exercise Price has been adjusted), and (D) the number of shares subject to purchase hereunder after giving effect to such adjustment, and shall be given by first class
mail, postage prepaid, or by reputable overnight courier with all charges prepaid, addressed to the Warrantholder at the address for Warrantholder set forth in the registry referred to in Section 7. 
 (g) Timely Notice. Failure to timely provide such notice required by subsection (f) above shall entitle Warrantholder to retain the benefit of the
applicable notice period notwithstanding anything to the contrary contained in any insufficient notice received by Warrantholder. For purposes of this subsection (g), and notwithstanding anything to the contrary in Section 12(g), the notice
period shall begin on the date Warrantholder actually receives a written notice containing all the information required to be provided in such subsection (f). 
 SECTION 9. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. 
 The Company represents and warrants to the
Warrantholder as of the date first written above: 
 (a) Reservation of Preferred Stock. The Preferred Stock issuable upon exercise of the
Warrantholder’s rights has been duly and validly reserved and, when issued in accordance with the provisions of this Agreement, will be validly issued, fully paid and non-assessable, and will be free of any issuance taxes, liens, charges or
encumbrances of any nature whatsoever; provided, that the Preferred Stock issuable pursuant to this Agreement may be subject to restrictions on transfer under state and/or federal securities laws. The Company has made available to the 

  

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Warrantholder true, correct and complete copies of its Charter and current bylaws. The issuance of certificates for shares of Preferred Stock upon exercise
of this Agreement shall be made without charge to the Warrantholder for any issuance tax in respect thereof, or other cost incurred by the Company in connection with such exercise and the related issuance of shares of Preferred Stock;
provided, that the Company shall not be required to pay any tax which may be payable in respect of any transfer and the issuance and delivery of any certificate in a name other than that of the Warrantholder. 
 (b) Due Authority. The execution and delivery by the Company of this Agreement and the performance of all obligations of the Company hereunder,
including the issuance to Warrantholder of the right to acquire the shares of Preferred Stock and the Common Stock into which it may be converted, have been duly authorized by all necessary corporate action on the part of the Company. This
Agreement: (1) is not inconsistent with the Company’s Charter or current bylaws; (2) does not contravene any law or governmental rule, regulation or order applicable to the Company; and (3) does not and will not contravene any
provision of, or constitute a default under, any indenture, mortgage, contract or other instrument to which the Company is a party or by which it is bound. This Agreement constitutes a legal, valid and binding agreement of the Company, enforceable
in accordance with its respective terms (except as enforceability may be limited by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity relating to
enforceability). 
 (c) Consents and Approvals. No consent or approval of, giving of notice to, registration with, or taking of any
other action in respect of any state, federal or other governmental authority or agency is required with respect to the execution, delivery and performance by the Company of its obligations under this Agreement, except for the filing of notices
pursuant to Regulation D under the Act and any filing required by applicable state securities law, which filings will be effective by the time required thereby. 
 (d) Issued Securities. All issued and outstanding shares of Common Stock, Preferred Stock or any other securities of the Company have been duly authorized and validly issued and are fully paid and
nonassessable. All outstanding shares of Common Stock, Preferred Stock and any other securities were issued in full compliance with all federal and state securities laws. 
 (e) Other Commitments to Register Securities. Except as set forth in this Agreement and the Rights Agreement, the Company is not, pursuant to the terms of any other agreement currently in existence, under any
obligation to register under the Act any of its presently outstanding securities or any of its securities which may hereafter be issued. 
 (f) Exempt Transaction. Subject to the accuracy of the Warrantholder’s representations in Section 10 and compliance with its obligations in Section 11, the issuance of the Preferred Stock upon exercise of this
Agreement, and the issuance of the Common Stock upon conversion of the Preferred Stock, will each constitute a transaction exempt from (i) the registration requirements of Section 5 of the Act, in reliance upon Section 4(2) thereof,
and (ii) the qualification requirements of the applicable state securities laws. 
 (g) Compliance with Rule 144. The provisions
of Section 11 of the Rights Agreement shall be applicable to the Warrantholder as if the Warrantholder were a holder of Restricted Stock (as defined in the Rights Agreement). 
 (h) Information Rights. During the term of this Warrant, if Warrantholder does not have a contractual right to receive the information rights
contain in Section 7.1 of the Loan Agreement, then Company shall deliver to the Warantholder the information provided to holders of Preferred Stock under the Rights Agreement, together with such other business and financial 

  

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information concerning the Company as the Warrantholder may reasonably request from time to time for purposes of valuing the Warrant, provided that the
Warrantholder hereby agrees to treat all such information as confidential information of the Company under Section 11.12 of the Loan Agreement. 
 SECTION 10. REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER. 
 This Agreement has been entered into by the Company in
reliance upon the following representations and covenants of the Warrantholder: 
 (a) Investment Purpose. The right to acquire Preferred
Stock or the Preferred Stock issuable upon exercise of the Warrantholder’s rights contained herein will be acquired for investment and not with a view to the sale or distribution of any part thereof, and the Warrantholder has no present
intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption. 
 (b) Private Issue.
The Warrantholder understands (i) that the Preferred Stock issuable upon exercise of this Agreement is not registered under the Act or qualified under applicable state securities laws on the ground that the issuance contemplated by this
Agreement will be exempt from the registration and qualifications requirements thereof, and (ii) that the Company’s reliance on such exemption is predicated on the representations set forth in this Section 10. 
 (c) Financial Risk. The Warrantholder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and
risks of its investment, and has the ability to bear the economic risks of its investment. 
 (d) Risk of No Registration. The Warrantholder
understands that if the Company does not register with the SEC pursuant to Section 12 of the Securities Exchange Act of 1934 (the “1934 Act”), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration
statement covering the securities under the Act is not in effect when it desires to sell (i) the rights to purchase Preferred Stock pursuant to this Agreement or (ii) the Preferred Stock issuable upon exercise of the right to purchase, it
may be required to hold such securities for an indefinite period. The Warrantholder also understands that any sale of (A) its rights hereunder to purchase Preferred Stock or (B) Preferred Stock issued or issuable hereunder which might be
made by it in reliance upon Rule 144 under the Act may be made only in accordance with the terms and conditions of that Rule. 
 (e)
Accredited Investor. Warrantholder is an “accredited investor” within the meaning of the Securities and Exchange Rule 501 of Regulation D, as presently in effect. 
 SECTION 11. TRANSFERS. 
 Subject to compliance with applicable federal and state securities laws, this
Warrant, the Preferred Stock and the securities into which the Preferred Stock may be converted are transferable, in whole or in part, without charge to the holder hereof (except for transfer taxes) upon surrender of such securities properly
endorsed, provided that without the prior written consent of the Company, not to be unreasonably withheld, this Warrant may be transferred only to an Affiliate (as defined below) of the Warrantholder. Subject to the foregoing, each taker and holder
of this Agreement, by taking or holding the same, consents and agrees that this Agreement, when endorsed in blank, shall be deemed negotiable, and that the holder hereof, when this Agreement shall have been so endorsed and its transfer recorded on
the Company’s books, shall be treated by the Company and all other persons dealing with this Agreement as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented by this Agreement. The transfer of
this Agreement shall be recorded on the books of the Company upon 

  

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receipt by the Company of a notice of transfer in the form attached hereto as Exhibit III (the “Transfer Notice”), at its principal offices
and the payment to the Company of all transfer taxes and other governmental charges imposed on such transfer. Until the Company receives such Transfer Notice, the Company may treat the registered owner hereof as the owner for all purposes. For
purposes of this Agreement, “Affiliate” means, with respect to a Warrantholder which is a partnership or limited liability company, its partners, members, former partners, former members or an entity managed by the same manager or managing
partner or management company, or managed or owned by an entity controlling, controlled by, or under common control with, such manager or managing partner or management company. 
 SECTION 12. MISCELLANEOUS. 
 (a) Effective Date. The provisions of this Agreement shall be construed
and shall be given effect in all respects as if it had been executed and delivered by the Company on the date hereof. This Agreement shall be binding upon any successors or assigns of the Company. 
 (b) Remedies. In the event of any default hereunder, the non-defaulting party may proceed to protect and enforce its rights either by suit in equity
and/or by action at law, including but not limited to an action for damages as a result of any such default, and/or an action for specific performance for any default if the non-defaulting party will not have an adequate remedy at law and where
damages will not be readily ascertainable. The Company expressly agrees that it shall not oppose an application by the Warrantholder or any other person entitled to the benefit of this Agreement requiring specific performance of any or all
provisions hereof or enjoining the Company from continuing to commit any such breach of this Agreement. 
 (c) No Impairment of Rights. The
Company will not, by amendment of its Charter or through any other means, avoid or seek to avoid the observance or performance of any of the terms of this Agreement, but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such actions as may be necessary or appropriate in order to protect the rights of the Warrantholder against impairment. 
 (d) Additional Documents. The Company shall also supply such other documents as the Warrantholder may from time to time reasonably request. 
 (e) Attorney’s Fees. In any litigation, arbitration or court proceeding between the Company and the Warrantholder relating hereto, the prevailing party shall be entitled to attorneys’ fees and expenses and
all costs of proceedings incurred in enforcing this Agreement. For the purposes of this Section 12(e), attorneys’ fees shall include without limitation fees incurred in connection with the following: (i) contempt proceedings;
(ii) discovery; (iii) any motion, proceeding or other activity of any kind in connection with an insolvency proceeding; (iv) garnishment, levy, and debtor and third party examinations; and (v) post-judgment motions and
proceedings of any kind, including without limitation any activity taken to collect or enforce any judgment. 
 (f) Severability. In the
event any one or more of the provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal or unenforceable provision shall be
replaced by a mutually acceptable valid, legal and enforceable provision, which comes closest to the intention of the parties underlying the invalid, illegal or unenforceable provision. 
 (g) Notices. Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration, service of process or other communication
that is required, contemplated, or permitted under this Agreement or with respect to the subject matter hereof shall be in writing, and shall be deemed to have been validly served, given, delivered, and received upon the earlier of: (i) the
first business day after transmission by facsimile or hand delivery or 

  

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deposit with an overnight express service or overnight mail delivery service; or (ii) the third calendar day after deposit in the United States mails,
with proper first class postage prepaid, and shall be addressed to the party to be notified as follows: 
 If to Warrantholder: 

HERCULES TECHNOLOGY II, L.P. 
 Legal Department 
 Attention: Chief Legal Officer and Manuel Henriquez 
 400 Hamilton Avenue, Suite 310 
 Palo Alto, CA 94301 
 Facsimile: 650-473-9194 
 Telephone: 650-289-3060 
 With a copy to: 
 Riemer & Braunstein LLP 
 Attn : David A. Ephraim, Esq. 
 Three Center Plaza 
 Boston, MA 02108 
 Facsimile: 617-880-3456 
 Telephone: 617-523-9000 
 If to the Company: 
 Elixir Pharmaceuticals, Inc 
 Attention: Karen Roberts, VP Finance and Administration 
 One Kendall Square 
 Building 1000, 5th Floor 
 Cambridge, MA 02139 
 Facsimile: 617-995-7050 
 Telephone: 617-995-7002 
 With a copy to: 
 Goodwin Procter LLP 
 Attn : Stuart M. Cable, Esq. 
 Exchange Place 
 Boston, MA 02109 
 Facsimile: 617-523-1231 
 Telephone: 617-570-1322 
 or to such other address as each party may designate for itself by like notice. 
 (h) Entire Agreement;
Amendments. This Agreement constitute the entire agreement and understanding of the parties hereto in respect of the subject matter hereof, and supersede and replace in their entirety any prior proposals, term sheets, letters, negotiations or other
documents or agreements, whether written or oral, with respect to the subject matter hereof (including Lender’s proposal letter dated August 21, 2006) None of the terms of this Agreement may be amended except by an instrument executed by
each of the parties hereto. 
 (i) Headings. The various headings in this Agreement are inserted for convenience only and shall not affect
the meaning or interpretation of this Agreement or any provisions hereof. 
  

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 (j) Advice of Counsel. Each of the parties represents to each other party hereto that it has discussed
(or had an opportunity to discuss) with its counsel this Agreement and, specifically, the provisions of Sections 12(n), 12(o), 12(p). 12(q) and 12(r). 
 (k) No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement
shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
 (l) No Waiver. No omission or delay by Warrantholder at any time to enforce any right or remedy reserved to it, or to require performance of any of the
terms, covenants or provisions hereof by the Company at any time designated, shall be a waiver of any such right or remedy to which Warrantholder is entitled, nor shall it in any way affect the right of Warrantholder to enforce such provisions
thereafter. 
 (m) Survival. All agreements, representations and warranties contained in this Agreement or in any document delivered pursuant
hereto shall be for the benefit of Warrantholder and shall survive the execution and delivery of this Agreement and the expiration or other termination of this Agreement. 
 (n) Governing Law. This Agreement have been negotiated and delivered to Warrantholder in the State of California, and shall have been accepted by Warrantholder in the State of California. Delivery of Preferred Stock
to Warrantholder by the Company under this Agreement is due in the State of California. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding conflict of laws principles
that would cause the application of laws of any other jurisdiction. 
 (o) Consent to Jurisdiction and Venue. All judicial proceedings
arising in or under or related to this Agreement may be brought in any state or federal court of competent jurisdiction located in the State of California. By execution and delivery of this Agreement, each party hereto generally and unconditionally:
(a) consents to personal jurisdiction in San Mateo County, State of California; (b) waives any objection as to jurisdiction or venue in San Mateo County, State of California; (c) agrees not to assert any defense based on lack of
jurisdiction or venue in the aforesaid courts; and (d) irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement. Service of process on any party hereto in any action arising out of or relating to this
Agreement shall be effective if given in accordance with the requirements for notice set forth in Section 12(g), and shall be deemed effective and received as set forth in Section 12(g). Nothing herein shall affect the right to serve
process in any other manner permitted by law or shall limit the right of either party to bring proceedings in the courts of any other jurisdiction. 
 (p) Mutual Waiver of Jury Trial. Because disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced and expert person and the parties wish applicable state and federal
laws to apply (rather than arbitration rules), the parties desire that their disputes be resolved by a judge applying such applicable laws. EACH OF THE COMPANY AND WARRANTHOLDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE
OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY THE COMPANY AGAINST WARRANTHOLDER OR ITS ASSIGNEE OR BY WARRANTHOLDER OR ITS ASSIGNEE AGAINST THE COMPANY. This waiver
extends to all such Claims, including Claims that involve Persons other than Borrower and Lender; Claims that arise out of or are in any way connected to the relationship between the Company and Warrantholder; and any Claims for damages, breach of
contract, specific performance, or any equitable or legal relief of any kind, arising out of this Agreement. 
  

 11 

 (q) Arbitration. If the Mutual Waiver of Jury Trial set forth in Section 12(p) is ineffective or
unenforceable, the parties agree that all Claims shall be submitted to binding arbitration in accordance with the commercial arbitration rules of JAMS (the “Rules”), such arbitration to occur before one arbitrator, which arbitrator shall
be a retired California state judge or a retired Federal court judge. Such proceeding shall be conducted in San Francisco County, California, with California rules of evidence and discovery applicable to such arbitration. The decision of the
arbitrator shall be binding on the parties, and shall be final and nonappealable to the maximum extent permitted by law. Any judgment rendered by the arbitrator may be entered in a court of competent jurisdiction and enforced by the prevailing party
as a final judgment of such court. 
 (r) Prearbitration Relief. In the event Claims are to be resolved by arbitration, either party may seek
from a court of competent jurisdiction identified in Section 12(o), any prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted by law notwithstanding that all
Claims are otherwise subject to resolution by binding arbitration. 
 (s) Counterparts. This Agreement and any amendments, waivers, consents
or supplements hereto may be executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and
the same instrument. 
 (t) Specific Performance. The parties hereto hereby declare that it is impossible to measure in money the damages
which will accrue to Warrantholder by reason of the Company’s failure to perform any of the obligations under this Agreement and agree that the terms of this Agreement shall be specifically enforceable by Warrrantholder. If Warrantholder
institutes any action or proceeding to specifically enforce the provisions hereof, any person against whom such action or proceeding is brought hereby waives the claim or defense therein that Warrantholder has an adequate remedy at law, and such
person shall not offer in any such action or proceeding the claim or defense that such remedy at law exists. 
 [Remainder of Page
Intentionally Left Blank] 
  

 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement to be executed by its officers
thereunto duly authorized as of the Effective Date. 
  

									
	COMPANY:	 	ELIXIR PHARMACEUTICALS, INC.	 	
				
		 	By:	 	 /s/ Karen L. Roberts
	 	
		 	Title:	 	VP Finance and Administration	 	
			
	WARRANTHOLDER:	 	HERCULES TECHNOLOGY II, L.P.,	 	
		 	a Delaware limited partnership	 	
			
		 	By:	 	 Hercules Technology SBIC Management, LLC,
 its General Partner

			
		 	By:	 	 Hercules Technology Growth Capital, Inc.,
 its Manager

					
		 		 	By:	 	 /s/ Scott Harvey
	 	
		 		 	Name:	 	Scott Harvey	 	
		 		 	Its:	 	Chief Legal Officer	 	

  

 13 

 EXHIBIT I 
 NOTICE OF EXERCISE 
 To:
[                            ] 
  

	(1)	The undersigned Warrantholder hereby elects to purchase [            ] shares of the Series
[    ] Preferred Stock of [            ], pursuant to the terms of the Agreement dated the
[            ] day of [            ,
            ] (the “Agreement”) between [            ] and the Warrantholder, and [CASH PAYMENT: tenders
herewith payment of the Purchase Price in full, together with all applicable transfer taxes, if any.] [NET ISSUANCE: elects pursuant to Section 3(a) of the Agreement to effect a Net Issuance.] 

  

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

  

	(3)	The undersigned Warrantholder hereby makes, as of the date hereof, each of the representations and warranties set forth in Section 10 of the Agreement.

  

							
		 		 	  

		 		 	(Name)
			
		 		 	  

		 		 	(Address)
			
	WARRANTHOLDER:	 		 	HERCULES TECHNOLOGY II, L.P.
				
		 		 	By:	 	  

				
		 		 	Title:	 	  

				
		 		 	Date:	 	  

  

 14 

 EXHIBIT II 
 ACKNOWLEDGMENT OF EXERCISE 
 The undersigned
[                            ], hereby acknowledge receipt of the “Notice of Exercise” from
Hercules Technology II, L.P., to purchase [            ] shares of the Series [        ] Preferred Stock of
[                    ], pursuant to the terms of the Agreement, and further acknowledges that
[            ] shares remain subject to purchase under the terms of the Agreement. 
  

									
	 COMPANY:
	 		 	[                                      
  ]
					
		 		 	By:	 	  
	 	
					
		 		 	Title:	 	  
	 	
					
		 		 	Date:	 	  
	 	

  

 15 

 EXHIBIT III 
 TRANSFER NOTICE 
 (To transfer or assign the foregoing Agreement execute this form and supply required information. Do not
use this form to purchase shares.) 
 FOR VALUE RECEIVED, the foregoing Agreement and all rights evidenced thereby are hereby transferred and assigned to

											
			
	 	 		 	
	(Please Print)	 		 		 		 		 	
				
	whose address is	 	 	 		 	
			
	 	 		 	

									
				
		 	Dated:	 	 	 	
				
		 	Holder’s Signature:	 	 	 	
				
		 	Holder’s Address:	 	 	 	
			
	Signature Guaranteed:	 	 	 	

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

 16Form of Warrant Agreement dated 6/19/06

 Exhibit 10.29 
 Execution Version 
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUED UPON
ITS 
 EXERCISE ARE SUBJECT TO THE RESTRICTIONS ON 
 TRANSFER SET FORTH IN SECTION 5 OF THIS WARRANT AND 
 IN SECTION 4 OF THE SECOND AMENDED AND
RESTATED 
 STOCK RESTRICTION AGREEMENT DATED AS OF JUNE 19, 2006 
  

			
	Warrant No. C-        	  	Number of Shares:                 
		  	(subject to adjustment)
	Date of Issuance: [Month]     , 2006	  	
	 Original Issue Date (as defined in subsection
 2(a)): :
[Month]     , 2006
	  	

 Elixir Pharmaceuticals, Inc. 
 Common Stock Purchase Warrant 
 (Void after June 19, 2013) 
 Elixir Pharmaceuticals, Inc., a Delaware corporation (the “Company”), for value received, hereby certifies that
                    , or its registered assigns (the “Registered Holder”), is entitled, subject to the terms and conditions set
forth below, to purchase from the Company, at any time or from time to time on or after the date of issuance and on or before 5:00 p.m. (Boston time) on June 19, 2013,
             shares of Common Stock, $0.001 par value per share, of the Company (“Common Stock”), at a purchase price of $0.01 per share. The shares purchasable upon
exercise of this Warrant, and the purchase price per share, each as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the “Warrant Shares” and the “Purchase Price,”
respectively. 
  

	 	1.	Exercise. 

 (a) Exercise for Cash. The
Registered Holder may, at its option, elect to exercise this Warrant, in whole or in part and at any time or from time to time, by surrendering this Warrant, with the purchase form appended hereto as Exhibit I duly executed by or on
behalf of the Registered Holder, at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full, in lawful money of the United States, of the Purchase Price payable in respect
of the number of Warrant Shares purchased upon such exercise. 
 (b) Cashless Exercise. 
 (i) The Registered Holder may, at its option, elect to exercise this Warrant, in whole or in part and at any time or from time to time, on a cashless
basis, by surrendering this Warrant, with the purchase form appended hereto as Exhibit I duly executed by or on behalf of the Registered Holder, at the principal office of the Company, or at such other office or agency as the Company may designate,
by canceling a portion of this Warrant in payment of the Purchase Price payable in respect of the number of Warrant Shares purchased upon such exercise. In the event of an exercise pursuant to this subsection 1(b), the number of Warrant Shares
issued to the Registered Holder shall be determined according to the following formula: 
  

					
	X	 	=	 	Y(A-B)
		 		 	A

					
	Where: X	 	=	  	the number of Warrant Shares that shall be issued to the Registered Holder;
	     Y
	 	=	  	the number of Warrant Shares for which this Warrant is being exercised (which shall include both the number of Warrant Shares issued to the Registered Holder and the number of Warrant Shares
subject to the portion of the Warrant being cancelled in payment of the Purchase Price);
	     A
	 	=	  	the Fair Market Value (as defined below) of one share of Common Stock; and
	     B
	 	=	  	the Purchase Price then in effect.

 (ii) The Fair Market Value per share of Common Stock shall be determined as follows: 

(1) If the Common Stock is listed on a national securities exchange, the Nasdaq National Market or another nationally recognized trading system as of
the Exercise Date, the Fair Market Value per share of Common Stock shall be deemed to be the average of the high and low reported sale prices per share of Common Stock thereon on the trading day immediately preceding the Exercise Date
(provided that if no such price is reported on such day, the Fair Market Value per share of Common Stock shall be determined pursuant to clause (2)). 
 (2) If the Common Stock is not listed on a national securities exchange, the Nasdaq National Market or another nationally recognized trading system as of the Exercise Date, the Fair Market Value per share of Common
Stock shall be deemed to be the amount most recently determined by the Board of Directors of the Company (the “Board”) to represent the fair market value per share of the Common Stock (including without limitation a determination for
purposes of granting Common Stock options or issuing Common Stock under any plan, agreement or arrangement with employees of the Company); and, upon request of the Registered Holder, the Board (or a representative thereof) shall, as promptly as
reasonably practicable but in any event not later than 10 days after such request, notify the Registered Holder of the Fair Market Value per share of Common Stock and furnish the Registered Holder with reasonable documentation of the Board’s
determination of such Fair Market Value. Notwithstanding the foregoing, if the Board has not made such a determination within the three-month period prior to the Exercise Date, then (A) the Board shall make, and shall provide or cause to be
provided to the Registered Holder notice of, a determination of the Fair Market Value per share of the Common Stock within 15 days of a request by the Registered Holder that it do so, and (B) the exercise of this Warrant pursuant to this
subsection 1(b) shall be delayed until such determination is made and notice thereof is provided to the Registered Holder. 
  

 - 2 - 

 (c) Exercise Date. Each exercise of this Warrant shall be deemed to have been effected immediately
prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in subsection 1(a) or 1(b) above (the “Exercise Date”). At such time, the person or persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such exercise as provided in subsection 1(d) below shall be deemed to have become the holder or holders of record of the Warrant Shares represented by such certificates. 
 (d) Issuance of Certificates. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within 10 days
thereafter, the Company, at its expense, will cause to be issued in the name of, and delivered to, the Registered Holder, or as the Registered Holder (upon payment by the Registered Holder of any applicable transfer taxes) may direct: 
 (i) a certificate or certificates for the number of full Warrant Shares to which the Registered Holder shall be entitled upon such exercise plus, in lieu
of any fractional share to which the Registered Holder would otherwise be entitled, cash in an amount determined pursuant to Section 3 hereof; and 
 (ii) in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of Warrant Shares equal (without giving
effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of Warrant Shares for which this Warrant was so exercised (which, in the case of an exercise pursuant to subsection 1(b), shall
include both the number of Warrant Shares issued to the Registered Holder pursuant to such partial exercise and the number of Warrant Shares subject to the portion of the Warrant being cancelled in payment of the Purchase Price). 
  

	 	2.	Adjustments. 

 (a) Adjustment for Stock Splits
and Combinations. If the Company shall at any time or from time to time after the date on which this Warrant was first issued (or, if this Warrant was issued upon partial exercise of, or in replacement of, another warrant of like tenor, then the
date on which such original warrant was first issued) (either such date being referred to as the “Original Issue Date”) effect a subdivision of the outstanding Common Stock, the Purchase Price then in effect immediately before that
subdivision shall be proportionately decreased. If the Company shall at any time or from time to time after the Original Issue Date combine the outstanding shares of Common Stock, the Purchase Price then in effect immediately before the combination
shall be proportionately increased. Any adjustment under this paragraph shall become effective at the close of business on the date the subdivision or combination becomes effective. 
 (b) Adjustment for Certain Dividends and Distributions. In the event the Company at any time, or from time to time after the Original Issue Date
shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Purchase Price then in
effect immediately before such event shall be decreased as 

  

 - 3 - 

 
of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the
Purchase Price then in effect by a fraction: 
 (1) the numerator of which shall be the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or the close of business on such record date, and 
 (2) the denominator of which
shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or
distribution; 
 provided, however, that if such record date shall have been fixed and such dividend is not fully paid or if such distribution
is not fully made on the date fixed therefor, the Purchase Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Purchase Price shall be adjusted pursuant to this paragraph as of the time of actual
payment of such dividends or distributions. 
 (c) Adjustment in Number of Warrant Shares. When any adjustment is required to be made
in the Purchase Price pursuant to subsections 2(a) or 2(b), the number of Warrant Shares purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares
issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment.

 (d) Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time after the Original
Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Company (other than shares of Common Stock) or in cash or other
property (other than regular cash dividends paid out of earnings or earned surplus, determined in accordance with generally accepted accounting principles), then and in each such event provision shall be made so that the Registered Holder shall
receive upon exercise hereof, in addition to the number of shares of Common Stock issuable hereunder, the kind and amount of securities of the Company, cash or other property which the Registered Holder would have been entitled to receive had this
Warrant been exercised on the date of such event and had the Registered Holder thereafter, during the period from the date of such event to and including the Exercise Date, retained any such securities receivable during such period, giving
application to all adjustments called for during such period under this Section 2 with respect to the rights of the Registered Holder. 
 (e) Adjustment for Reorganization. If there shall occur any reorganization, recapitalization, reclassification, consolidation or merger involving the Company in which the Common Stock is converted into or exchanged for securities,
cash or other property (other than a transaction covered by subsections 2(a), 2(b) or 2(d)) (collectively, a “Reorganization”), then, following such Reorganization, the Registered Holder shall receive upon exercise hereof the kind

  

 - 4 - 

 
and amount of securities, cash or other property which the Registered Holder would have been entitled to receive pursuant to such Reorganization if such
exercise had taken place immediately prior to such Reorganization. Notwithstanding the foregoing sentence, if (x) there shall occur any Reorganization in which the Common Stock is converted into or exchanged for anything other than solely
equity securities, and (y) the common stock of the acquiring or surviving company is publicly traded, then, as part of such Reorganization, (i) the Registered Holder shall have the right thereafter to receive upon the exercise hereof such
number of shares of common stock of the acquiring or surviving company as is determined by multiplying (A) the number of shares of Common Stock subject to this Warrant immediately prior to such Reorganization by (B) a fraction, the
numerator of which is the Fair Market Value per share of Common Stock as of the effective date of such Reorganization, as determined pursuant to subsection 1(b)(ii), and the denominator of which is the fair market value per share of common stock of
the acquiring or surviving company as of the effective date of such transaction, as determined in good faith by the Board (using the principles set forth in subsection 1(b)(ii) to the extent applicable), and (ii) the exercise price per
share of common stock of the acquiring or surviving company shall be the Purchase Price divided by the fraction referred to in clause (B) above. In any such case, appropriate adjustment (as determined in good faith by the Board) shall be made
in the application of the provisions set forth herein with respect to the rights and interests thereafter of the Registered Holder, to the end that the provisions set forth in this Section 2 (including provisions with respect to changes in and
other adjustments of the Purchase Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities, cash or other property thereafter deliverable upon the exercise of this Warrant. 
 (f) Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Purchase Price pursuant to this Section 2,
the Company at its expense shall, as promptly as reasonably practicable but in any event not later than 10 days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Registered Holder a
certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property for which this Warrant shall be exercisable and the Purchase Price) and showing in detail the facts upon which such
adjustment or readjustment is based. The Company shall, as promptly as reasonably practicable after the written request at any time of the Registered Holder (but in any event not later than 10 days thereafter), furnish or cause to be furnished to
the Registered Holder a certificate setting forth (i) the Purchase Price then in effect and (ii) the number of shares of Common Stock and the amount, if any, of other securities, cash or property which then would be received upon the
exercise of this Warrant. 
 3. Fractional Shares. The Company shall not be required upon the exercise of this Warrant to issue any
fractional shares, but shall pay the value thereof to the Registered Holder in cash on the basis of the Fair Market Value per share of Common Stock, as determined pursuant to subsection 1(b)(ii) above. 
 4. Investment Representations. The Registered Holder represents and warrants to the Company as follows: 
 (a) Investment. The Registered Holder is acquiring the Warrant, and (if and when it exercises this Warrant) it will acquire the Warrant Shares for
its own account for investment and not with a view to, or for sale in connection with, any distribution thereof, nor 

  

 - 5 - 

 
with any present intention of distributing or selling the same. The Registered Holder has no present or contemplated agreement, undertaking, arrangement,
obligation, indebtedness or commitment providing for the disposition thereof. 
 (b) Restricted Securities. The Registered Holder
acknowledges that the Warrant and Warrant Shares consist of restricted securities that are unregistered; that the Warrants and, when issued, the Warrant Shares may not be sold, transferred, or otherwise disposed of without registration under the
Securities Act of 1933, as amended (the “Securities Act”) unless an exemption from such registration is available; that in the absence of an effective registration statement covering the Warrant and, when issued, the Warrant Shares or an
available exemption from registration under the Securities Act, the Warrant and, when issued, the Warrant Shares must be held indefinitely. In particular, the Registered Holder is aware that the Warrants and, when issued, the Warrant Shares may not
be sold pursuant to Rule 144 promulgated under the Securities Act unless all of the conditions of that Rule are met and that among the conditions for use of Rule 144 may be the availability of current information to the public about the Company,
information that is not now made available. The Registered Holder understands that the Warrants and, when issued, Warrant Shares will be subject to the restrictions on exercise, conversion and transfer as set forth in the instruments governing such
Warrants and, when issued, the Warrant Shares and in the Ancillary Agreements (as such term is defined in the Series C Convertible Stock Purchase Agreement, dated as of June     , 2006, by and among the Company and the
purchasers named therein (the “Series C Purchase Agreement”)). 
 (c) Economic Risk; Sophistication. The Registered Holder
is able to bear the economic risk of an investment in the Warrant acquired by him, her or it pursuant to the terms of this Warrant and has sufficient knowledge and experience in financial and business matters that he, she or it is capable of
evaluating the merits and risks of the proposed investment in the Company and the Registered Holder is able financially to bear the risks thereof. The Company has made available to the Registered Holder or its representatives all agreements,
documents, records and books that the Registered Holder has requested relating to an investment in the securities to be acquired by the Registered Holder under the terms of this Warrant. The Registered Holder has had an opportunity to ask questions
of, and receive answers from, a person or persons acting on behalf of the Company, concerning the terms and conditions of this investment, and answers have been provided to all of such questions to the full satisfaction of the Registered Holder.

 (d) Accredited Investor. The Registered Holder meets the criteria of an “accredited investor” as defined in Rule 501(a)
of Regulation D adopted under the Securities Act (an “Accredited Investor”). 
 5. Transfers, etc. 
 (a) This Warrant and, when issued, the Warrant Shares shall not be sold or transferred unless either (i) they first shall have been registered under
the Act, or (ii) the Company first shall have been furnished with an opinion of legal counsel, reasonably satisfactory to the Company, to the effect that such sale or transfer is exempt from the registration requirements of the Act.
Notwithstanding the foregoing, no registration or opinion of counsel shall be required for (x) a transfer by a Registered Holder to any other person or entity, for as 

  

 - 6 - 

 
long such other person or entity is controlled by such Registered Holder, for as long such other person or entity (directly or indirectly) controls such
Registered Holder, for as long as such other person or entity is in common control with such Registered Holder or for as long such company is an investment fund or similar entity managed by one or more investment managers of such Registered Holder
or managed by the same general partner or manager as such Registered Holder or by any other general partner or manager within the same group of such Registered Holder or its general partner, provided that the transferee in each case agrees in
writing to be subject to the terms of this Warrant, or (y) a transfer made in accordance with Rule 144 under the Act. 
 (b) Each
certificate representing Warrant Shares shall bear a legend substantially in the following form: 
 “THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER SUCH ACT AND ALL SUCH APPLICABLE LAWS OR AN EXEMPTION FROM REGISTRATION IS
AVAILABLE.” 
 The foregoing legend shall be removed from the certificates representing any Warrant Shares, at the request of the holder
thereof, at such time as they become eligible for resale pursuant to Rule 144(k) under the Act. 
 (c) The Company will maintain a
register containing the name and address of the Registered Holder of this Warrant. The Registered Holder may change its address as shown on the warrant register by written notice to the Company requesting such change. 
 (d) Subject to the provisions of Section 5 hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of
this Warrant with a properly executed assignment (in the form of Exhibit II hereto) at the principal office of the Company (or, if another office or agency has been designated by the Company for such purpose, then at such other office or
agency). 
 6. No Impairment. The Company will not, by amendment of its charter or bylaws or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Registered Holder against impairment. 
 7. Notices of Record Date, etc. In the event: 
 (a) the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other
distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right; or 
  

 - 7 - 

 (b) of any capital reorganization of the Company, any reclassification of the Common Stock of the
Company, any consolidation or merger of the Company with or into another corporation, or any transfer of all or substantially all of the assets of the Company; or 
 (c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, 
 then, and in each such case,
the Company will send or cause to be sent to the Registered Holder a notice specifying, as the case may be, (i) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or
(ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common
Stock (or such other stock or securities at the time deliverable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up. Such notice shall be sent at least 10 days prior to the record date or effective date for the event specified in such notice. 
 8. Reservation of Stock. The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of this
Warrant, such number of Warrant Shares and other securities, cash and/or property, as from time to time shall be issuable upon the exercise of this Warrant. 
 9. Exchange or Replacement of Warrants. 
 (a) Upon the surrender by the Registered Holder, properly
endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of Section 5 hereof, issue and deliver to or upon the order of the Registered Holder, at the Company’s expense, a new Warrant or
Warrants of like tenor, in the name of the Registered Holder or as the Registered Holder (upon payment by the Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of
shares of Common Stock (or other securities, cash and/or property) then issuable upon exercise of this Warrant. 
 (b) Upon receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount
reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor. 
 10. Notices. All notices and other communications from the Company to the Registered Holder in connection herewith shall be mailed by certified or
registered mail, postage prepaid, or sent via a reputable international overnight courier service guaranteeing next business day delivery, to the address last furnished to the Company in writing by the Registered Holder. All notices and other
communications from the Registered Holder to the Company in connection herewith shall be mailed by certified or registered mail, postage prepaid, or sent via a reputable 

  

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international overnight courier service guaranteeing next business day delivery, to the Company at its principal office set forth below. If the Company
should at any time change the location of its principal office to a place other than as set forth below, it shall give prompt written notice to the Registered Holder and thereafter all references in this Warrant to the location of its principal
office at the particular time shall be as so specified in such notice. All such notices and communications shall be deemed delivered (i) three business days after being sent by certified or registered mail, return receipt requested, postage
prepaid, or (ii) one business day after being sent via a reputable international overnight courier service guaranteeing next business day delivery. 
 11. No Rights as Stockholder. Until the exercise of this Warrant, the Registered Holder shall not have or exercise any rights by virtue hereof as a stockholder of the Company. Notwithstanding the foregoing, in
the event (i) the Company effects a split of the Common Stock by means of a stock dividend and the Purchase Price of and the number of Warrant Shares are adjusted as of the date of the distribution of the dividend (rather than as of the record
date for such dividend), and (ii) the Registered Holder exercises this Warrant between the record date and the distribution date for such stock dividend, the Registered Holder shall be entitled to receive, on the distribution date, the stock
dividend with respect to the shares of Common Stock acquired upon such exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend. 
 12. Issue Tax. The issuance of certificate(s) for the Warrant Shares upon the exercise of this Warrant shall be made without charge to the
Registered Holder for any issuance tax in respect thereto; provided that, the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name
other than that of the Holder. 
 13. Amendment or Waiver. This Warrant is one of a series of Warrants issued by the Company, all
dated as of a Closing Date (as such term is defined in the Series C Purchase Agreement) and of like tenor, except as to the number of shares of Common Stock subject thereto (collectively, the “Company Warrants”). Any term of this Warrant
may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the holders of Company Warrants representing at least two-thirds of the number of shares of
Common Stock then subject to outstanding Company Warrants. Notwithstanding the foregoing, (a) this Warrant may be amended and the observance of any term hereunder may be waived without the written consent of the Registered Holder only in a
manner which applies to all Company Warrants in the same fashion and (b) the number of Warrant Shares subject to this Warrant and the Purchase Price of this Warrant may not be amended, and the right to exercise this Warrant may not be waived,
without the written consent of the Registered Holder (it being agreed that an amendment to or waiver under any of the provisions of Section 2 of this Warrant shall not be considered an amendment of the number of Warrant Shares or the Purchase
Price). The Company shall give prompt written notice to the Registered Holder of any amendment hereof or waiver hereunder that was effected without the Registered Holder’s written consent. No waivers of any term, condition or provision of this
Warrant, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision. 
  

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 14. Section Headings. The section headings in this Warrant are for the convenience of the parties
and in no way alter, modify, amend, limit or restrict the contractual obligations of the parties. 
 15. Governing Law. This Warrant
and any claim, controversy or cause of action (whether in contract or tort) based upon, arising out of or relating to this Warrant shall be governed by the substantive laws of the State of Delaware, without regard to its principles of conflicts of
laws that would result in the application of any law other than the law of the State of Delaware. 
 16. Facsimile Signatures. This
Warrant may be executed by facsimile signature. 
 EXECUTED as of the Date of Issuance indicated above. 
  

			
	ELIXIR PHARMACEUTICALS, INC.
		
	By:	 	  

	Name:	 	William K. Heiden
	Title:	 	President and Chief Executive Officer

  

	
	ATTEST:
	
	  

  

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 EXHIBIT I 
 PURCHASE FORM 
  

											
	To:	 	  
	  		  		  	Dated:	 	  

 The undersigned, pursuant to the provisions set forth in the attached Warrant (No. ___),
hereby elects to purchase (check applicable box): 
  

	 	 ̈	             shares of the Common Stock of Elixir Pharmaceuticals, Inc. covered by such Warrant; or

  

	 	 ̈	the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in subsection 1(b). 

 The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant. Such payment takes
the form of (check applicable box or boxes): 
  

	 	 ̈	$             in lawful money of the United States; and/or 

  

	 	 ̈	the cancellation of such portion of the attached Warrant as is exercisable for a total of              Warrant
Shares (using a Fair Market Value of $             per share for purposes of this calculation) ; and/or 

  

	 	 ̈	the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 1(b), to exercise this Warrant with respect to the
maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 1(b). 

  

					
	Signature:	 	  
	 	
			
	Address:	 	  
	 	
			
		 	  
	 	

  

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 EXHIBIT II 
 ASSIGNMENT FORM 
 FOR VALUE RECEIVED,
                                 hereby sells, assigns and transfers all of the
rights of the undersigned under the attached Warrant (No.         ) with respect to the number of shares of Common Stock of Elixir Pharmaceuticals, Inc. covered thereby set forth below, unto:

  

					
	 Name of Assignee
	 	 Address
	 	 No. of Shares

		 		 	
		 		 	
		 		 	
		 		 	

  

									
	Dated:	 	  
	 		  	Signature:	 	  

				
	Signature Guaranteed:	 		  		 	

							
				
	By:	 	  
	 		  	

 The signature should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan
associations and credit unions with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. 
  

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