Document:

Form of warrant to purchase Series C preferred stock

 EXHIBIT 4.6 
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND ARE “RESTRICTED SECURITIES” AS DEFINED IN RULE 144 PROMULGATED UNDER THE ACT. THE
SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE DISTRIBUTED EXCEPT (I) IN CONJUNCTION WITH AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE ACT, OR (II) IN COMPLIANCE WITH RULE 144, OR (III) PURSUANT TO AN OPINION OF
COUNSEL, REASONABLY SATISFACTORY TO THE CORPORATION, THAT SUCH REGISTRATION OR COMPLIANCE IS NOT REQUIRED AS TO SAID SALE, OFFER OR DISTRIBUTION. 
  

					
	No. CW-__	  		  	San Diego, California
	__________ Shares	  		  	February 28, 2007

 PHENOMIX CORPORATION 
 Series C Preferred Stock Purchase Warrant 
 Phenomix Corporation, a
Delaware corporation (the “Company”), for value received, hereby certifies that ____________________, or its registered assigns (the “Registered Holder”), is entitled, subject to the terms set forth
below, to purchase from the Company, at any time after the date hereof and on or before the Expiration Date (as defined in Section 5 below), and upon satisfaction of any one of the conditions set forth below in Section 1(a), up to
__________ shares of Series C Preferred Stock of the Company (“Preferred Stock”), at a purchase price of $4.16 per share. The shares purchasable upon exercise of this Warrant and the purchase price per share, as adjusted from
time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the “Warrant Stock” and the “Purchase Price,” respectively. 
 This Warrant is issued pursuant to, and is subject to the terms and conditions of a Series C Preferred Stock Purchase Agreement dated February 28,
2007 by and among the Company and certain Investors (the “Purchase Agreement”). 
 1. Exercise.

 (a) Manner of Exercise. Upon satisfaction of any one of the conditions set forth in Section 1(a), this
Warrant may be exercised by the Registered Holder, in whole or in part, by surrendering this Warrant, with the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or by such Registered
Holder’s duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full of the Purchase Price payable in respect of the number of shares of
Warrant Stock purchased upon such exercise. The Purchase Price may be paid by cash, check, wire transfer or any combination of the foregoing. 

 (b) Effective Time of Exercise. 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 Section 1(a) above. At such time, the person or persons in whose name or names
any certificates for Warrant Stock shall be issuable upon such exercise as provided in Section 1(d) below shall be deemed to have become the holder or holders of record of the Warrant Stock represented by such certificates. 
 (c) Net Issue Exercise. 
 (i) In lieu of exercising this Warrant in the manner provided above in Section 1(a), the Registered Holder may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by
surrender of this Warrant at the principal office of the Company together with notice of such election on the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or such Registered Holder’s duly
authorized attorney, in which event the Company shall issue to such Holder a number of shares of Warrant Stock computed using the following formula: 
 X =     Y (A - B) 
             A 

 

							
	 Where
	  	X	  	=	  	The number of shares of Warrant Stock to be issued to the Registered Holder.
				
		  	Y	  	=	  	 The number of shares of Warrant Stock purchasable under this Warrant (at
 the date of such calculation).

				
		  	A	  	=	  	 The fair market value of one share of Warrant Stock (at the date of such
 calculation).

				
		  	B	  	=	  	The Purchase Price (as adjusted to the date of such calculation).

 (ii) For purposes of this Section 1(c), the fair market value of Warrant Stock
on the date of calculation shall mean with respect to each share of Warrant Stock: 
 (A) if the exercise is in connection
with an initial public offering of the Company’s Common Stock, and if the Company’s registration statement relating to such public offering has been declared effective by the Securities and Exchange Commission, then the fair market value
shall be the product of (x) the initial “Price to Public” per share specified in the final prospectus with respect to the offering and (y) the number of shares of Common Stock into which each share of Warrant Stock is convertible
at the date of calculation; 
 (B) if this Warrant is exercised after, and not in connection with, the Company’s initial
public offering, and if the Company’s Common Stock is traded on a securities exchange or The Nasdaq Stock Market or actively traded over-the-counter: 
 (1) if the Company’s Common Stock is traded on a securities exchange or The Nasdaq Stock Market, the fair market value shall be deemed to be the product of (x) the average of the closing prices over a thirty
(30) day period ending three days 

 
before date of calculation and (y) the number of shares of Common Stock into which each share of Warrant Stock is convertible on such date; or

 (2) if the Company’s Common Stock is actively traded over-the-counter, the fair market value shall be deemed to be
the product of (x) the average of the closing bid or sales price (whichever is applicable) over the thirty (30) day period ending three days before the date of calculation and (y) the number of shares of Common Stock into which each
share of Warrant Stock is convertible on such date; or 
 (C) if neither (A) nor (B) is applicable, the fair market
value of Warrant Stock shall be the fair market value of the Warrant Stock, as determined in good faith by the Company’s Board of Directors. 
 (d) Delivery to Holder. As soon as practicable after the exercise of this Warrant in whole or in part, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered
Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct: 
 (i) a certificate or
certificates for the number of shares of Warrant Stock to which such Registered Holder shall be entitled, 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 shares of Warrant Stock 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 such shares purchased by the Registered Holder upon such exercise as provided in Section 1(a) or 1(c) above. 
 2. Adjustments. 
 (a) Redemption or Conversion of Preferred Stock. If (i) all of the Preferred Stock is redeemed or converted into shares of Common Stock or (ii) the shares of Preferred Stock held by the Registered Holder are
converted into shares of Common Stock pursuant to Article 5, Section D(5) of the Company’s Amended and Restated Certificate of Incorporation, as may be amended from time to time, then this Warrant shall automatically become exercisable for that
number of shares of Common Stock equal to the number of shares of Common Stock that would have been received if this Warrant had been exercised in full and the shares of Preferred Stock received thereupon had been simultaneously converted into
shares of Common Stock immediately prior to such event, and the Exercise Price shall be automatically adjusted to equal the number obtained by dividing (i) the aggregate Purchase Price of the shares of Preferred Stock for which this Warrant was
exercisable immediately prior to such redemption or conversion, by (ii) the number of shares of Common Stock for which this Warrant is exercisable immediately after such redemption or conversion. 
 (b) Stock Splits and Dividends. If outstanding shares of the Company’s Preferred Stock shall be subdivided into a
greater number of shares or a dividend in Preferred Stock shall be paid in respect of Preferred Stock, the Purchase Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with the 

 
effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced. If outstanding shares of Preferred Stock
shall be combined into a smaller number of shares, the Purchase Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased. When any adjustment is required to
be made in the Purchase Price, the number of shares of Warrant Stock 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. 
 (c) Reclassification, Etc. In case there occurs any reclassification or change of the outstanding securities of the Company
or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the date hereof, then and in
each such case the Registered Holder, upon the exercise hereof at any time after the consummation of such reclassification, change, or reorganization shall be entitled to receive, in lieu of the stock or other securities and property receivable upon
the exercise hereof prior to such consummation, the stock or other securities or property to which such Holder would have been entitled upon such consummation if such Holder had exercised this Warrant immediately prior thereto, all subject to
further adjustment pursuant to the provisions of this Section 2. 
 (d) Adjustment Certificate. When any
adjustment is required to be made in the Warrant Stock or the Purchase Price pursuant to this Section 2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such
adjustment, (ii) the Purchase Price after such adjustment and (iii) the kind and amount of stock or other securities or property into which this Warrant shall be exercisable after such adjustment. 
 (e) Acknowledgement. In order to avoid doubt, it is acknowledged that the holder of this Warrant shall be entitled to the
benefit of all adjustments in the number of shares of Common Stock of the Company issuable upon conversion of the Preferred Stock of the Company which occur prior to the exercise of this Warrant, including without limitation, any increase in the
number of shares of Common Stock issuable upon conversion as a result of a dilutive issuance of capital stock. 
 3. Transfers.

 (a) Unregistered Security. Each holder of this Warrant acknowledges that this Warrant, the Warrant Stock and
the Common Stock of the Company have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this
Warrant, any Warrant Stock issued upon its exercise or any Common Stock issued upon conversion of the Warrant Stock in the absence of (i) an effective registration statement under the Securities Act as to this Warrant, such Warrant Stock or
such Common Stock and registration or qualification of this Warrant, such Warrant Stock or such Common Stock under any applicable U.S. federal or state securities law then in effect, or (ii) an opinion of counsel, satisfactory to the Company,
that such 

 
registration and qualification are not required. Each certificate or other instrument for Warrant Stock issued upon the exercise of this Warrant shall bear a
legend substantially to the foregoing effect. 
 (b) Warrant Register. The Company will maintain a register
containing the names and addresses of the Registered Holders of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute owner hereof for all
purposes; provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary. Any Registered Holder may change such Registered Holder’s address as shown on the warrant register by written notice to the Company requesting such change. 
 4. No Impairment. The Company will not, by amendment of its charter or through reorganization, consolidation, merger, dissolution, sale of assets 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 holder of this Warrant against impairment. 
 5. Termination; Automatic Net Exercise upon Change of Control. This Warrant
(and the right to purchase securities upon exercise hereof) shall terminate upon the earliest to occur of the following (the “Expiration Date”): (a) February __, 2014 or (b) the sale, conveyance or disposal of all
or substantially all of the Company’s property or business or the Company’s merger with or into or consolidation with any other corporation (other than a wholly-owned subsidiary of the Company) or any other transaction or series of related
transactions in which more than fifty percent (50%) of the voting power of the Company is disposed of (any such transaction, a “Change of Control”); provided the issuance of securities by the Company in connection
with an equity financing for purposes of raising capital shall not be deemed to be a Change of Control; and provided, further, that to the extent this Warrant is not previously exercised as to all of the shares of Warrant Stock subject
hereto, and if the fair market value of one share of Warrant Stock is greater than the Purchase Price then in effect, this Warrant shall be deemed automatically exercised pursuant to Section 1(c) (even if not surrendered to the Company)
immediately before its expiration upon a Change of Control. For purposes of such automatic exercise, the fair market value of one share of Warrant Stock shall be determined pursuant to Section 1(c)(ii). To the extent this Warrant or any portion
thereof is deemed automatically exercised pursuant to this Section 5, the Company agrees to promptly notify the Registered Holder of the number of shares, if any, the Registered Holder is to receive by reason of such automatic exercise.

 6. Notices of Certain Transactions. In the event: 
 (a) the Company shall take a record of the holders of its Preferred 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, to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or 
 (b) of any capital reorganization of the Company, any reclassification of the capital stock of the Company or any Change of Control, or

 (c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, or 
 (d) of any redemption of the Preferred Stock or mandatory conversion of the Preferred Stock into Common Stock of the Company, 

then, and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be,
(i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization,
reclassification, Change of Control, dissolution, liquidation, winding-up, redemption, conversion or other applicable transaction is to take place, and the time, if any is to be fixed, as of which the holders of record of Preferred Stock (or such
other stock or securities at the time deliverable upon such reorganization, reclassification, Change of Control, dissolution, liquidation, winding-up, redemption, conversion or other applicable transaction) are to be determined. Such notice shall be
mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice. 
 7. Reservation
of Stock. The Company will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such shares of Warrant Stock and other stock, securities and property, as from time to time shall be
issuable upon the exercise of this Warrant. 
 8. Replacement of Warrants. 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. 
 9. Mailing of Notices. Any notice required or permitted pursuant to this Warrant shall be given in writing and shall be conclusively deemed effectively given upon personal delivery or delivery by
courier, or on the first business day after transmission if sent by confirmed facsimile transmission or five days after deposit in the United States mail, by registered or certified mail, postage prepaid, addressed to the applicable party at the
address set forth below on the signature page of this Warrant, or at such other address as the Company or the Registered Holder may designate by 10 days’ advance written notice to the other party. 
 10. No Rights as Shareholder. Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any
rights by virtue hereof as a shareholder of the Company. 

 11. No Fractional Shares. No fractional shares of Preferred Stock will be issued in
connection with any exercise hereunder. In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one share of Preferred Stock on the
date of exercise, as determined in good faith by the Company’s Board of Directors. 
 12. Amendment or Waiver. Any
term of this Warrant may be amended or waived only by a written instrument signed by the Company and by persons who hold Warrants representing at least seventy percent (70%) of the shares of Warrant Stock underlying the then outstanding
Warrants issued under the Purchase Agreement. 
 13. Headings. The headings in this Warrant are for purposes of
reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant. 
 14. Governing Law. This
Warrant shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. 
 [SIGNATURE PAGE FOLLOWS] 

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

			
	PHENOMIX CORPORATION
		
	By	 	 
		 	 Laura K. Shawver, Ph.D.
 President and Chief Executive
Officer

  

			
		
	Address:	 	 5871 Oberlin Drive, Suite 200
 San Diego, CA
92121

 EXHIBIT A 
 PURCHASE/EXERCISE FORM 
  

			
	 To: Phenomix Corporation
	  	Dated:                    

 The undersigned, pursuant to the provisions set forth in the attached Warrant No. CW-____, hereby
irrevocably elects to (a) purchase ____________ shares of the Preferred Stock covered by such Warrant and herewith makes payment of $            , representing the full purchase
price for such shares at the price per share provided for in such Warrant, or (b) exercise such Warrant for ____________ shares purchasable under the Warrant pursuant to the Net Issue Exercise provisions of Section 1(c) of such Warrant.

 The undersigned acknowledges that it has reviewed the representations and warranties contained in Section 3 of the Purchase Agreement
(as defined in the Warrant) and by its signature below hereby makes such representations and warranties to the Company. Defined terms contained in such representations and warranties shall have the meanings assigned to them in the Purchase
Agreement, provided that the term “Purchaser” shall refer to the undersigned and the term “Securities” shall refer to the Warrant Stock and the Common Stock of the Company issuable upon conversion of the Warrant Stock.

 The undersigned further acknowledges that it has reviewed the market standoff provisions set forth in Section 11 of the Amended and
Restated Registration Rights Agreement dated February ___, 2007 among the Company and certain holders of the Company’s securities and agrees to be bound by such provisions. 
  

	
	
	Signature:__________________________________
	
	Name (print):_______________________________
	
	Title (if applic.)_____________________________
	
	Company (if applic.):_________________________

 Schedule A 
 SCHEDULE OF INVESTORS 
  

			
	 Investor
	  	Warrants to
Purchase Series C
Preferred
	 Nomura Phase4 Ventures L.P.
 Nomura House
 1 St Martins-le-Grant
 London, U.K.
 EC1A 4NP
	  	216,346
		
	 PINNACLE VENTURES II-A, L.P.
 130 Lytton Avenue, Suite 220
 Palo Alto, CA 94301
	  	120
		
	 PINNACLE VENTURES II-B, L.P.
 130 Lytton Avenue, Suite 220
 Palo Alto, CA 94301
	  	5,047
		
	 PINNACLE VENTURES II-C, L.P.
 130 Lytton Avenue, Suite 220
 Palo Alto, CA 94301
	  	421
		
	 PINNACLE VENTURES II-R, L.P.
 130 Lytton Avenue, Suite 220
 Palo Alto, CA 94301
	  	421
		
	 J.P. Morgan Partners (BHCA), L.P.
 50 California Street, Suite 2940
 San Francisco, CA 94111
	  	58,114
		
	 J.P. Morgan Partners Global Investors, L.P.
 50 California Street, Suite 2940
 San Francisco, CA 94111
	  	13,931
		
	 J.P. Morgan Partners Global Investors A, L.P.
 50 California Street, Suite 2940
 San Francisco, CA 94111
	  	2,140
		
	 J.P. Morgan Partners Global Investors (Cayman), L.P.
 50 California Street, Suite 2940
 San Francisco, CA 94111
	  	6,994
		
	 J.P. Morgan Partners Global Investors (Cayman) II, L.P.
 50 California Street, Suite 2940
 San Francisco, CA 94111
	  	782
		
	 J.P. Morgan Partners Global Investors (Selldown), L.P.
 50 California Street, Suite 2940
 San Francisco, CA 94111
	  	4,717
		
	 J.P. Morgan Partners Global Investors (Selldown) II, L.P.
 50 California Street, Suite 2940
 San Francisco, CA 94111
	  	16,377
		
	 Delphi Ventures VI, L.P.
 3000 Sand Hill Road
 Building 1, Suite 135
 Menlo Park, CA 94025
	  	62,774

  

			
	 Investor
	  	Warrants to
Purchase Series C
Preferred
	 Delphi BioInvestments VI, L.P.
 3000 Sand Hill Road
 Building 1, Suite 135
 Menlo Park, CA 94025
	  	628
		
	 Baker/Tisch Investments, L.P.
 667 Madison Avenue, 17th Floor
 New York, NY 10021
	  	1,300
		
	 Baker Biotech Fund I, L.P.
 667 Madison Avenue, 17th Floor
 New York, NY 10021
	  	13,866
		
	 Baker Brothers Life Sciences, L.P.
 667 Madison Avenue, 17th Floor
 New York, NY 10021
	  	27,298
		
	 14159, L.P.
 667 Madison Avenue, 17th Floor
 New York, NY 10021
	  	866
		
	 Alta California Partners III, L.P.
 One Embarcadero Center, Suite 4050
 San Francisco, CA 94111
 Attn: Elaine Walker
	  	47,737
		
	 Alta Embarcadero Partners III, LLC
 One Embarcadero Center, Suite 4050
 San Francisco, CA 94111
 Attn: Elaine Walker
	  	1,612
		
	 Sofinnova Venture Affiliates V, L.P.
 140 Geary Street, 10th Floor
 San Francisco, CA 94108
 Attn: James I. Healy
	  	385
		
	 Sofinnova Venture Partners V, L.P.
 140 Geary Street, 10th Floor
 San Francisco, CA 94108
 Attn: James I. Healy
	  	48,242
		
	 Sofinnova Venture Principals V, L.P.
 140 Geary Street, 10th Floor
 San Francisco, CA 94108
 Attn: James I. Healy
	  	722
		
	 The Bay City Capital Fund III, L.P.
 750 Battery Street
 Suite 400
 San Francisco, CA 94111
 Attn: Kirby Bartlett
	  	31,857
		
	 The Bay City Capital Fund III Co-Investment Fund, L.P.
 750 Battery Street
 Suite 400
 San Francisco, CA 94111
 Attn: Kirby Bartlett
	  	697
		
	 CMEA Ventures Life Sciences 2000, L.P.
 CMEA Ventures
 One Embarcadero Center, Suite 3250
 San Francisco, CA 94111-3600
 Attn: Meryl Schreibstein
	  	27,259

  

			
	 Investor
	  	Warrants to
Purchase Series C
Preferred
	 CMEA Ventures Life Sciences 2000, Civil Law Partnership
 CMEA Ventures
 One Embarcadero Center, Suite 3250
 San Francisco, CA 94111-3600
 Attn: Meryl Schreibstein
	  	1,801
		
	 Novartis BioVentures Ltd.
 c/o Novartis International Pharmaceutical Ltd.
 Hurst Holme, 12 Trott Road
 Hamilton HM 11
 Bermuda
	  	19,173
		
	 GBS Venture Partners Limited in its capacity as Trustee of the GBS
 BioVentures II Fund, or its nominee
 Harley House, Level 5
 71 Collins Street
 Melbourne, VIC 3000
 Australia
	  	16,714
		
	 Trefoil S.A.
 Cay House
 PO Box N7776, Lyford Cay
 New Providence, Bahamas
 Attn: Joseph C. Lewis
	  	2,357
		
	 The Australian National University
 Acton, ACT 0200
 Australia
 Attn: Investment Manager
	  	2,069
		
	 IRM LLC
 c/o Novartis International Pharmaceutical Ltd.
 Hurst Holme, 12 Trott Road
 Hamilton HM 11
 Bermuda
	  	28,291
	 TOTALS:
	  	661,058Warrant to purchase Series C preferred stock

 EXECUTION COPY 
 EXHIBIT 4.7 
 THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES
LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO, (ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATIONS ARE NOT REQUIRED,
(iii) RECEIPT OF NO-ACTION LETTERS FROM THE APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING WITH THE PROVISIONS OF SECTION 8 OF THIS WARRANT. 
 PHENOMIX CORPORATION 
 WARRANT TO PURCHASE PREFERRED STOCK 
 For value received and subject to the provisions set forth in this warrant (this “Warrant”), PINNACLE VENTURES II EQUITY
HOLDINGS, L.L.C. and its assigns are entitled to purchase from PHENOMIX CORPORATION, a Delaware corporation (the “Company”): 
  

			
		
	Shares of Series C Preferred Stock:	  	 The number of Shares for which this Warrant is
 exercisable shall equal the Warrant Coverage divided
 by the Exercise Price

		
	Exercise Price:	  	$4.16
		
	Term of Warrant:	  	10 years from the Warrant Date
		
	Warrant Date:	  	December 17, 2007

 The number of Shares for which this Warrant is exercisable and the Exercise Price may be adjusted as specified in
Section 5. 
 1. Definitions. As used herein, capitalized terms not otherwise defined herein shall have the meanings set
forth in the introductory paragraph of this Warrant or the following meanings: 
 (a) “Applicable
Stock” means (i) the Company’s presently authorized series of preferred stock specified in the introductory paragraph of this Warrant, (ii) after the conversion of all of the outstanding shares of such series of preferred
stock into Common Stock, either automatically or by vote of the requisite holders thereof, the Company’s Common Stock, and (iii) upon any conversion, exchange, reclassification or change, any security into which the securities described in
clauses (i) or (ii) of this definition may be converted, exchanged, reclassified or otherwise changed. 
 (b)
“Common Stock” means the common stock of the Company. 
 (c) “Exercise Price”
means the exercise price per share of Applicable Stock specified in the introductory paragraph of this Warrant. 

 (d) “Holder” means the initial holder of this Warrant set forth
in the first paragraph of this Warrant and any other person or entity which becomes a holder of this Warrant pursuant to the terms of this Warrant. 
 (e) “Other Warrants” means any other warrants issued by the Company in connection with the transaction with respect to which this Warrant was issued, and any warrant issued upon transfer or
partial exercise of or in lieu of this Warrant. The term “Warrant” as used herein shall be deemed to include Other Warrants unless the context clearly requires otherwise. 
 (f) “Public Acquisition” means any consolidation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets to another corporation which is effected such that (1) the holders of Applicable Stock shall be entitled to receive cash or shares of stock that are of a publicly traded company listed on a national market
or exchange which may be sold without restrictions after the close of such event, (2) the Company’s stockholders own less than 50% of the voting securities of the surviving entity and (3) either (A) the surviving entity does not
assume other options or warrants of the Company or (B) at the time of such event the effective per share price for the Applicable Stock is at least three (3) times the exercise price hereof. 
 (g) “Shares” means the shares of Applicable Stock of Company issuable upon exercise of this Warrant. 

(h) “Warrant Coverage” initially means $480,000; provided however, that upon the funding of any
Additional Advance under the Loan Agreement as amended, Warrant Coverage means the sum of: (i) $480,000 plus (ii) 2.0% times the amount of all Additional Advances made under the Loan Agreement. 
 (i) “Warrant Date” means the date of this Warrant specified in the introductory paragraph of this Warrant.

 2. Term. The right to purchase Applicable Stock upon exercise hereof is exercisable at any time and from time to time from
the Warrant Date until the earlier to occur of the following: (a) the tenth anniversary of the Warrant Date, or (b) a Public Acquisition. 
 3. Payment and Exercise. 
 (a) Methods of Exercise. The purchase right represented by this
Warrant may be exercised by the Holder, in whole or in part and from time to time, at the election of the Holder, by (a) the surrender of this Warrant (with the notice of exercise substantially in the form attached hereto as Exhibit A duly
completed and executed) at the principal office of the Company and by the payment to the Company, by check, or by wire transfer to an account designated by the Company of an amount equal to the then applicable Exercise Price multiplied by the number
of Shares then being purchased (the “Aggregate Purchase Price”); (b) if in connection with a registered public offering of the Company’s securities, the surrender of this Warrant (with the notice of exercise form
attached hereto as Exhibit B duly completed and executed) at the principal office of the Company together with notice of arrangements reasonably satisfactory to the Company for payment to the Company from the proceeds of the sale of shares to
be sold by the Holder in such public offering of the Aggregate Purchase Price; or (c) exercise of the “net issuance” right provided for in Section 3(b) hereof. The person or persons in whose name(s) any certificate(s)
representing Shares of Applicable Stock shall be issuable upon exercise of this Warrant shall be deemed to have become the holder(s) of record of, and shall be treated for all purposes as the record holder(s) of, the Shares represented thereby (and
such Shares shall be deemed to have been issued) immediately prior to the close of business on the date or dates upon which this Warrant is exercised. In the event of any exercise of the rights represented by this Warrant, certificates for the
Shares so purchased shall be delivered to the Holder as soon as possible and in any event within thirty (30) days after such exercise and, unless this Warrant has been fully exercised or expired, a new Warrant representing the portion of the
Shares, if any, with respect to which this Warrant shall not then have been exercised shall also be issued to the Holder as soon as possible and in any 

  

 -2- 

 
event within such thirty-day period; provided, however, that at such time as the Company is subject to the reporting requirements of the Securities Exchange
Act of 1934, as amended, if requested by the Holder, the Company shall cause its transfer agent to deliver the certificate representing Shares issued upon exercise of this Warrant to a broker or other person (as directed by the Holder
exercising this Warrant) within the time period required to settle any trade made by the Holder after exercise of this Warrant. 
 (b) Right to Convert Warrant into Stock: Net Issuance. 
 (i) Net Issuance Right. In addition to and
without limiting the rights of the Holder under the terms of this Warrant, the Holder shall have the right to convert this Warrant or any portion thereof (the “Net Issuance Right”) into shares of Applicable Stock as provided
in this Section 3(b) at any time or from time to time during the term of this Warrant. Upon exercise of the Net Issuance Right with respect to a particular number of shares subject to this Warrant (the “Converted Warrant
Shares”), the Company shall deliver to the Holder (without payment by the Holder of any exercise price or any cash or other consideration) that number of shares of fully paid and nonassessable Applicable Stock as is determined according
to the following formula: 
  

							
	 X = A - B
         Y
	  		  		    	
	Where:	  	X	  	=	    	the number of shares of Applicable Stock that shall be issued to Holder
				
		  	Y	  	=	    	the fair market value of one share of Applicable Stock
				
		  	A	  	=	    	 the aggregate fair market value of the specified number of Converted
 Warrant Shares (i.e., the number of Converted Warrant Shares multiplied by
 the fair market value of one
Converted Warrant Share)

				
		  	B	  	=	    	 the aggregate Exercise Price of the specified number of Converted Warrant
 Shares immediately prior to the exercise of the Net Issuance Right (i.e., the
 number of Converted Warrant Shares
multiplied by the Exercise Price)

 No fractional shares shall be issuable upon exercise of the Net Issuance Right, and, if the number of shares to be
issued determined in accordance with the foregoing formula is other than a whole number, the Company shall pay to the Holder an amount in cash equal to the fair market value of the resulting fractional share on the Conversion Date (as hereinafter
defined). For purposes of Section 10 of this Warrant, shares issued pursuant to the Net Issuance Right shall be treated as if they were issued upon the exercise of this Warrant. 
 (ii) Exercise of Net Issuance Right. The Net Issuance Right may be exercised by the Holder by the surrender of this Warrant at the
principal office of the Company together with a written statement (which may be in the form of Exhibit A or Exhibit B hereto) specifying that the Holder thereby intends to exercise the Net Issuance Right and indicating the number of shares
subject to this Warrant which are being surrendered (referred to in Section 3(b)(i) hereof as the Converted Warrant Shares) in exercise of the Net Issuance Right. Such conversion shall be effective upon receipt by the Company of this Warrant
together with the aforesaid written statement, or on such later date as is specified therein (the “Conversion Date”), and, at the election of the Holder, may be made contingent upon the closing of the sale of the
Company’s Common Stock to the public in a public offering (a “Public Offering”) pursuant to a Registration Statement under the Securities Act of 1933, amended (the “Act”). Certificates for the
shares issuable upon exercise of the Net Issuance Right and, if applicable, a new warrant evidencing the balance of the shares remaining subject to this Warrant, shall be issued as of the Conversion Date and shall be delivered to the Holder within
thirty (30) days following the Conversion Date. 
  

 -3- 

 (iii) Determination of Fair Market Value. For purposes of this Section 3(b),
“fair market value” of a share of Applicable Stock (which shall be Common Stock if the Applicable Stock has been converted into Common Stock) as of a particular date (the “Determination Date”) shall mean:

 (1) If the Net Issuance Right is exercised in connection with and contingent upon a Public Offering, and if the
Company’s Registration Statement relating to such Public Offering (“Registration Statement”) has been declared effective by the Securities and Exchange Commission, then the initial “price to the public”
specified in the final prospectus with respect to such offering. 
 (2) If the Net Issuance Right is not exercised in
connection with and contingent upon a Public Offering, then as follows: 
 (A) If traded on a securities exchange, then the
fair market value shall be the average of the closing prices of the Common Stock on such exchange over the five trading days immediately prior to the Determination Date; 
 (B) If traded on the Nasdaq Stock Market or other over-the-counter system, then the fair market value shall be the average of the closing
bid prices of the Common Stock over the five trading days immediately prior to the Determination Date; and 
 (C) If there is
no public market, then fair market value shall be determined in good faith by the Company’s Board of Directors. 
 In making a determination under
clauses (A) or (B) above, if on the Determination Date, five trading days have not passed since the Company’s initial Public Offering then the fair market value of the Common Stock shall be the average closing prices or closing bid
prices, as applicable, for the shorter period beginning on and including the date of the initial Public Offering and ending on the trading day prior to the Determination Date (or if such period includes only one trading day the closing price or
closing bid price, as applicable, for such trading day). If closing prices or closing bid prices are no longer reported by a securities exchange or other trading system, the closing price or closing bid price shall be that which is reported by such
securities exchange or other trading system at 4:00 p.m. New York City time on the applicable trading day. 
 (c) Exercise
Prior to Expiration. To the extent this Warrant is not previously exercised as to all of the Shares subject hereto, and if the fair market value of one share of the Applicable Stock is greater than the Exercise Price then in effect, this Warrant
shall be deemed automatically exercised pursuant to Section 3(b) (even if not surrendered) immediately before its expiration, including but not limited to expiration pursuant to Section 2. For purposes of such automatic exercise, the fair
market value of one share of the Applicable Stock upon such expiration shall be determined pursuant to Section 3(b)(iii). To the extent this Warrant or any portion thereof is deemed automatically exercised pursuant to this Section 3(c),
the Company agrees to promptly notify the Holder of the number of Shares, if any, the Holder is to receive by reason of such automatic exercise. 
 4. Stock Fully Paid; Reservation of Shares. All Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance pursuant to the terms and conditions herein, be fully paid and nonassessable,
and free from all preemptive rights and taxes, liens and charges with respect to the issuance thereof. During the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized, and
reserved for the purpose of the issue upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of shares of its Applicable Stock to provide for the exercise of the rights represented by this Warrant and, while the
Applicable Stock is convertible preferred stock, a sufficient number of shares of its Common Stock to provide for the conversion of the Applicable Stock into Common Stock. 
  

 -4- 

 5. Adjustment of Exercise Price and Number of Shares. The number and kind of securities
purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows: 
 (a) Reclassification or Merger. In case of any (i) reclassification or change of securities of the class issuable upon
exercise of this Warrant (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or (ii) in case of any merger of the Company with or into another
entity (other than a merger with another entity in which the Company is the acquiring and the surviving entity and which does not result in any reclassification or change of outstanding securities issuable upon exercise of this Warrant), or
(iii) in case of any sale of all or substantially all of the assets of the Company, the Company, or such successor or purchasing corporation, as the case may be, shall duly execute and deliver to the Holder a new Warrant (in form and substance
reasonably satisfactory to the Holder), or the Company shall make appropriate provision without the issuance of a new Warrant, so that the Holder shall have the right to receive upon exercise of this Warrant, at a total purchase price not to exceed
that payable upon the exercise of the unexercised portion of this Warrant, and in lieu of the shares of Applicable Stock theretofore issuable upon exercise of this Warrant, the kind and amount of shares of stock, other securities, money and property
receivable upon such reclassification, change, merger or sale by a holder of the number of shares of Applicable Stock then purchasable under this Warrant. The provisions of this Section 5(a) shall similarly apply to successive
reclassifications, changes, mergers and sales. 
 (b) Subdivision or Combination of Shares. If the Company at any time
while this Warrant remains outstanding and unexpired shall subdivide or combine its outstanding shares of Applicable Stock, the Exercise Price shall be proportionately decreased and the number of Shares issuable hereunder shall be proportionately
increased in the case of a subdivision and the Exercise Price shall be proportionately increased and the number of Shares issuable hereunder shall be proportionately decreased in the case of a combination. 
 (c) Stock Dividends and Other Distributions. If the Company at any time while this Warrant is outstanding and unexpired shall
(i) pay a dividend with respect to Applicable Stock payable in Applicable Stock, then the Exercise Price shall be adjusted, from and after the date of determination of shareholders 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 Applicable Stock outstanding immediately prior to such
dividend or distribution, and (B) the denominator of which shall be the total number of shares of Applicable Stock outstanding immediately after such dividend or distribution; or (ii) make any other distribution with respect to Applicable
Stock (except any distribution specifically provided for in Sections 5(a) and 5(b)), then, in each such case, provision shall be made by the Company such that the Holder shall receive upon exercise of this Warrant a proportionate share of any
such dividend or distribution as though it were the holder of the Applicable Stock as of the record date fixed for the determination of the shareholders of the Company entitled to receive such dividend or distribution. 
 (d) Adjustment of Number of Shares. Upon each adjustment in the Exercise Price, the number of Shares of Applicable Stock
purchasable hereunder shall be adjusted, to the nearest whole share, to the product obtained by multiplying the number of Shares purchasable immediately prior to such adjustment in the Exercise Price by a fraction, the numerator of which shall be
the Exercise Price immediately prior to such adjustment and the denominator of which shall be the Exercise Price immediately thereafter. 
 (e) Antidilution Rights. The other antidilution rights applicable to the Shares of Applicable Stock purchasable hereunder are set forth in the Company’s Certificate of Incorporation, as amended through the
Warrant Date, a true and complete copy of which is attached hereto as Exhibit C (the “Charter”). The Company shall promptly provide the Holder with any restatement, amendment, modification or waiver of the Charter that
affects such antidilution rights promptly after the same has been made. 
  

 -5- 

 6. Notice of Adjustments. Whenever the Exercise Price or the number of Shares purchasable
hereunder shall be adjusted pursuant to Section 5 hereof, the Company shall make a certificate signed by its chief financial officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated, and the Exercise Price and the number of Shares purchasable hereunder after giving effect to such adjustment, and shall cause copies of such certificate to be delivered to the Holder. In addition,
whenever the conversion price or conversion ratio of the Applicable Stock shall be adjusted, the Company shall make a certificate signed by its chief financial officer setting forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment, the method by which such adjustment was calculated, and the conversion price or ratio of the Applicable Stock after giving effect to such adjustment, and shall cause copies of such certificate to be delivered to the Holder.

 7. Fractional Shares. No fractional shares of Applicable Stock will be issued in connection with any exercise hereunder, but in
lieu of such fractional shares the Company shall make a cash payment therefor based on the fair market value of the Applicable Stock on the date of exercise as reasonably determined in good faith by the Company’s Board of Directors. 

8. Compliance with Act; Disposition of Warrant or Shares of Applicable Stock. 
 (a) Compliance with Act. The Holder, by acceptance hereof, agrees that this Warrant, and the shares of Applicable Stock to be
issued upon exercise hereof and any Common Stock issued upon conversion thereof are being acquired for investment and that the Holder will not offer, sell or otherwise dispose of this Warrant, or any shares of Applicable Stock to be issued upon
exercise hereof or any Common Stock issued upon conversion thereof except under circumstances which will not result in a violation of the Act or any applicable state securities laws. Upon exercise of this Warrant, unless the Shares being acquired
are registered under the Act and any applicable state securities laws or an exemption from such registration is available, the Holder shall confirm in writing that the shares of Applicable Stock so purchased (and any shares of Common Stock issued
upon conversion thereof) are being acquired for investment and not with a view toward distribution or resale in violation of the Act and shall confirm such other matters related thereto as may be reasonably requested by the Company. This Warrant and
all shares of Applicable Stock issued upon exercise of this Warrant (unless registered under the Act and any applicable state securities laws) shall be stamped or imprinted with a legend in substantially the following form: 
 “THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION
MAY BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO, (ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF NO-ACTION
LETTERS FROM THE APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING WITH THE PROVISIONS OF SECTION 8 OF THE WARRANT UNDER WHICH THESE SECURITIES WERE ISSUED, DIRECTLY OR INDIRECTLY.” 
 Said legend shall be removed by the Company, upon the request of the Holder, at such time as the restrictions on the transfer of the applicable security shall have
terminated. 
 (b) Disposition of Warrant or Shares. With respect to any offer, sale or other disposition of this
Warrant or any shares of Applicable Stock acquired pursuant to the exercise of this Warrant prior to registration of such Warrant or shares, the Holder agrees to give written notice to the Company prior thereto, describing briefly the manner
thereof, together with a written opinion of counsel, if requested by the Company, or other evidence, if reasonably satisfactory to the Company, to the effect that such offer, sale or other disposition may be effected without registration or
qualification (under the Act as then in effect or any federal or state securities law then in effect) of this Warrant or such shares of Applicable Stock and indicating whether or not under the Act certificates for this Warrant or such shares of
Applicable Stock to be sold or otherwise disposed of require any restrictive legend as to applicable restrictions on transferability in order to ensure compliance with such law. Upon receiving such written notice and reasonably satisfactory opinion
or 

  

 -6- 

 
other evidence, the Company, as promptly as practicable but no later than fifteen (15) days after receipt of the written notice, shall notify the Holder
that the Holder may sell or otherwise dispose of this Warrant or such shares of Applicable Stock, all in accordance with the terms of the notice delivered to the Company. If a determination has been made pursuant to this Section 8(b) that the
opinion of counsel or other evidence is not reasonably satisfactory to the Company, the Company shall so notify the Holder promptly with details thereof after such determination has been made. Notwithstanding the foregoing, this Warrant or such
shares of Applicable Stock may, as to such federal laws, be offered, sold or otherwise disposed of in accordance with Rule 144 or 144A under the Act, provided that the Company shall have been furnished with such information as the Company may
reasonably request to provide a reasonable assurance that the provisions of Rule 144 or 144A have been satisfied. Each certificate representing this Warrant or the shares of Applicable Stock thus transferred (except a transfer pursuant to
Rule 144 or 144A) shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with such laws, unless in the aforesaid opinion of counsel for the Holder, such legend is not required in order to ensure
compliance with such laws. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions. 
 (c) Applicability of Restrictions. Neither any restrictions of any legend described in this Warrant nor the requirements of Section 8(b) above shall apply to any transfer of, or grant of a security
interest in, this Warrant (or the Applicable Stock or Common Stock obtainable upon exercise thereof) or any part hereof (i) to a partner of the Holder if the Holder is a partnership or to a member of or other holder of an interest in the Holder
if the Holder is a limited liability company, (ii) to a partnership of which the Holder is a partner or to a limited liability company of which the Holder is a member or other holder of an interest, or (iii) to any affiliate of the Holder
if the Holder is a corporation; provided, however, in any such transfer, if applicable, the transferee shall on the Company’s request agree in writing to be bound by the terms of this Warrant as if an original holder hereof.

 9. Rights as Shareholders; Information. No Holder, as a holder of this Warrant, shall be entitled to vote or receive dividends or
be deemed the holder of Applicable Stock or any other securities of the Company which may at any time be issuable upon the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such, any of
the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to receive dividends or subscription rights or otherwise until this Warrant shall
have been exercised and the Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein. Notwithstanding the foregoing, the Company will transmit to the Holder such information, documents and reports as are
generally distributed to the holders of any class or series of the securities of the Company concurrently with the distribution thereof to the shareholders. 
 10. Registration Rights. The Company grants registration rights to the Holder for any Applicable Stock of the Company (after its conversion to Common Stock) obtained upon exercise of this Warrant, comparable to
the registration rights granted to the investors in that certain Amended and Restated Registration Rights Agreement dated as of April 14, 2005 (the “Investor Rights Agreement”), with the following exceptions and
clarifications: 
 (1) The Holder will have not have the right to any demand registration (other than a registration on Form
S-3 or any successor form pursuant to Section 2.2 of the Investor Rights Agreement), but shall have piggyback registration rights in accordance with Article 3 of the Investor Rights Agreement. 
 (2) The Holder will be subject to the same provisions regarding indemnification as contained in the Investor Right Agreement. 

(3) The registration rights are freely assignable by the Holder in connection with a permitted transfer of this Warrant or the Shares.

  

 -7- 

 (4) The Holder will be bound by the terms of the Market Stand-off provision contained in
Section 11 of the Investor Rights Agreement, provided that the Holder’s obligations under this Section 10 shall be conditioned upon all officers, directors and holders of one percent (1%) or more of the outstanding capital
stock of the Company entering into similar agreements with the Company and such managing underwriter and shall not apply to the sale of securities to an underwriter pursuant to an underwriting agreement; and provided further, that any
early release of the lock-up provisions in this Section 10 shall be shared by all applicable holders of capital stock of the Company on a pro rata basis. 
 11. Notice Rights. 
 (a) Acquisition Transactions. The Company shall provide
the Holder with at least twenty (20) days’ written notice prior to closing thereof of the terms and conditions of any of the following transactions (to the extent the Company has notice thereof): (i) the sale, lease, exchange,
conveyance or other disposition of all or substantially all of the Company’s property or business, or (ii) its merger into or consolidation with any other corporation (other than a wholly-owned subsidiary of the Company), or any
transaction (including a merger or other reorganization) or series of related transactions, in which more than 50% of the voting power of the Company is disposed of. 
 (b) Dividends and Repurchases. The Company shall provide the Holder with at least ten (10) days notice prior to the record
date of any cash dividend with respect to or offer to repurchase the Applicable Stock. 
 (c) Liquidation. The Company
shall provide the Holder with at least ten (10) days notice prior to any voluntary or involuntary dissolutions, liquidation or winding-up of the Company. 
 12. Representations and Warranties. The Company represents and warrants to the Holder as follows: 
 (a) This Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance with its terms, subject to laws of general application relating to
bankruptcy, insolvency and the relief of debtors and the rules of law or principles at equity governing specific performance, injunctive relief and other equitable remedies. 
 (b) The Shares have been duly authorized and reserved for issuance by the Company and, when issued in accordance with the terms hereof,
will be validly issued, fully paid and nonassessable and free from preemptive rights. 
 (c) The rights, preferences,
privileges and restrictions granted to or imposed upon the Applicable Stock and the holders thereof are as set forth in the Charter, and on the Warrant Date, each share of the Applicable Stock represented by this Warrant is convertible into one
share of Common Stock. 
 (d) The shares of Common Stock issuable upon conversion of the Shares have been duly authorized and
reserved for issuance by the Company and, when issued in accordance with the terms of the Charter will be validly issued, fully paid and nonassessable. 
 (e) The execution and delivery of this Warrant are not, and the issuance of the Shares upon exercise of this Warrant in accordance with the terms hereof will not be, inconsistent with the Company’s Charter or
by-laws, do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, and do not and will not conflict with or contravene any provision of, or constitute a default under, any indenture,
mortgage, contract or other instrument of which the Company is a party or by which it is bound or require the consent or approval of, the giving of notice to, the registration or filing with or the taking of any action in respect of or by, any
Federal, state or local government authority or agency or other person, except for the filing of notices pursuant to federal and state securities laws, which filings will be effected by the time required thereby. 
  

 -8- 

 (f) There are no actions, suits, audits, investigations or proceedings pending or, to the
knowledge of the Company, threatened against the Company in any court or before any governmental commission, board or authority which, if adversely determined, could have a material adverse effect on the ability of the Company to perform its
obligations under this Warrant. 
 (g) The number of shares of Common Stock of the Company outstanding on the date hereof, on
a fully diluted basis (assuming the conversion of all outstanding convertible securities and the exercise of all outstanding options and warrants), does not exceed [34 million] shares. 
 13. Modification and Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought. 
 14. Notices. Any notice, request, communication or
other document required or permitted to be given or delivered to the Holder or the Company shall be delivered, or shall be sent by certified or registered mail, postage prepaid, or overnight courier or delivered personally to the Holder at its
address as shown on the books of the Company or to the Company at the address indicated therefor on the signature page of this Warrant. 
 15. Binding Effect on Successors. This Warrant shall be binding upon any corporation succeeding the Company by merger, consolidation or acquisition of all or substantially all of the Company’s assets, and all of the obligations
of the Company relating to the Applicable Stock issuable upon the exercise or conversion of this Warrant shall survive the exercise, conversion and termination of this Warrant and all of the covenants and agreements of the Company shall inure to the
benefit of the successors and assigns of the Holder. 
 16. Lost Warrants or Stock Certificates. The Company covenants to the Holder
that, upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant or any stock certificate and, in the case of any such loss, theft or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation of such Warrant or stock certificate, the Company will make and deliver a new Warrant or stock certificate, of like tenor, in lieu of the
lost, stolen, destroyed or mutilated Warrant or stock certificate. 
 17. Descriptive Headings. The descriptive headings of the
various Sections of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. The language in this Warrant shall be construed as to its fair meaning without regard to which party drafted this Warrant. 

18. Governing Law. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the
laws of the State of California. 
 19. Survival of Representations, Warranties and Agreements. All representations and warranties of
the Company and the Holder contained herein shall survive the Warrant Date, the exercise or conversion of this Warrant (or any part hereof) or the termination or expiration of rights hereunder. All agreements of the Company and the Holder contained
herein shall survive indefinitely until, by their respective terms, they are no longer operative. 
 20. Remedies. In case any one or
more of the covenants and agreements contained in this Warrant shall have been breached, the Holder (in the case of a breach by the Company), or the Company (in the case of a breach by the Holder), may proceed to protect and enforce their or 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 breach and/or an action for specific performance of any such covenant or agreement contained in this Warrant.

 21. 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 Warrant, but 

  

 -9- 

 
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 Holder against impairment. 
 22. Severability. The invalidity or unenforceability of any provision of
this Warrant in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction, or affect any other provision of this Warrant, which shall remain in full force and effect. 
 23. Recovery of Litigation Costs. If any legal action or other proceeding is brought for the enforcement of this Warrant, or because of an alleged
dispute, breach, default, or misrepresentation in connection with any of the provisions of this Warrant, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that
action or proceeding, in addition to any other relief to which it or they may be entitled. 
 24. Entire Agreement; Modification. This
Warrant constitutes the entire agreement between the parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations, and undertakings of the parties, whether oral or written, with
respect to such subject matter. 
  

 -10- 

 The Company has caused this Warrant to be duly executed and delivered as of the Warrant Date specified
above. 
  

			
	PHENOMIX CORPORATION
		
	By:	 	/s/ Laura Shawver
		
	Name:	 	Laura Shawver, Ph.D.
		
	Title:	 	Chief Executive Officer
		
	Address:	 	 Phenomix Corporation
 5871 Oberlin Drive, Suite 200

 San Diego, CA 92121

  

 -11- 

 EXHIBIT A 
 NOTICE OF EXERCISE 
  

	To:	PHENOMIX CORPORATION (the “Company”) 

  

	 	1.	The undersigned hereby: 

  

	 	 ̈	elects to purchase________ shares of [Applicable Stock] [Common Stock] of the Company pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase
price of such shares in full, or 

  

	 	 ̈	elects to exercise its net issuance rights pursuant to Section 3(b) of the attached Warrant with respect to________Shares of [Applicable Stock] [Common Stock].

 2. Please issue a certificate or certificates representing ________ shares in the name of the undersigned or in such other
name or names as are specified below: 
 __________________________________ 
 (Name) 
 __________________________________ 
 __________________________________ 
 (Address)

 3. The undersigned represents that the aforesaid shares are being acquired for the account of the undersigned for investment and not with
a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares, all except as in compliance with applicable securities laws. 
  

	
	
	  
	(Signature)

 _______________ 
 (Date) 

 EXHIBIT B 
 NOTICE OF EXERCISE 
  

	To:	PHENOMIX CORPORATION (the “Company”) 

 1.
Contingent upon and effective immediately prior to the closing (the “Closing”) of the Company’s public offering contemplated by the Registration Statement on Form S___, filed________, 200__, the undersigned hereby: 
  ̈ elects to purchase________shares of [Applicable Stock] [Common Stock] of the Company (or such lesser number of
shares as may be sold on behalf of the undersigned at the Closing) pursuant to the terms of the attached Warrant, or 
  ̈ elects to exercise its net issuance rights pursuant to Section 3(b) of the attached Warrant with respect to________Shares of [Applicable Stock] [Common Stock]. 
 2. Please deliver to the custodian for the selling shareholders a stock certificate representing such________shares. 
 3. The undersigned has instructed the custodian for the selling shareholders to deliver to the Company $________or, if less, the net proceeds due the
undersigned from the sale of shares in the aforesaid public offering. If such net proceeds are less than the purchase price for such shares, the undersigned agrees to deliver the difference to the Company prior to the Closing. 
  

	
	
	  
	(Signature)

 _______________ 
 (Date) 

 EXHIBIT C 
 CHARTER

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