Document:

Letter of Payment Authorization relating to the Dog Study

 Exhibit 10.2 
 LETTER OF PAYMENT AUTHORIZATION 
 June 14, 2007 
 Dr. Jay Lichter 
 President and CEO 
 Akesis Pharmaceuticals 
 888 Prospect, Suite 320 
 La
Jolla, CA 92037 
 Phone: 858-354-1472 
 E-mail:
jlichter@avalon-ventures.com 
 Charles River Study LTC00006 - 28-Day Toxicity Study in Dogs with 2 Weeks Recovery 
 Dear Dr. Lichter, 
 Thank you for choosing Charles River Laboratories
to serve your research needs. Based on the attached scope of work, we have prepared the price estimate of $576,000. This price estimate is valid for up to 60 days, after which it may be subject to change. The price may also be modified by
mutual agreement if changes to the scope of work are made. 
 In order to minimize the impact of study delays and cancellations for all sponsors, Charles
River allocates resources at the time a signed Letter of Payment Authorization is received. Please note that scheduling is not considered confirmed until a signed copy of this document is received. By providing authorization via signature
below, you will allow us to confirm a schedule for your study and to allocate resources accordingly. Your signature further constitutes acceptance of the attached price and payment schedule. 
 Based upon the current scope of work, we would expect to initiate this study in July 2007. Prior to receipt of this signed Letter of Payment Authorization this
initiation date may be lost to another study vying for the same resources. 
 We understand that occasionally you may request to delay or to cancel a study
due to unforeseen circumstances. Charles River will make every reasonable effort to accommodate requested schedule changes. However, as significant costs are incurred related to study initiation, cancellation/delay fees will apply in proportion to
the number of days’ notice given (please see attached Cancellation and Delay Policy). Cancellation/delay fees may be assessed separately for each postponement prior to the study being cancelled or initiated. The Cancellation and Delay Policy
becomes effective upon execution of this Letter of Authorization. 
 Charles River shall perform these services in accordance with the Service Agreement (the
“Agreement”) executed between Charles River Laboratories and Akesis Pharmaceuticals. Once fully executed, this Letter of Payment Authorization shall be incorporated into and made part of the Agreement. 
 We would appreciate it if you would sign and return a copy of this letter to my attention via e-mail to tom.magee@crl.com or fax to 508.890.0192. Should you have any
questions or require any additional information, please do not hesitate to call me at 508-890-0402. We look forward to being of service. 
  

					
	 /s/ Jay Lichter
	 		 	 /s/ Heather Bristol

	Authorized Sponsor Representative	 		 	Authorized Charles River Representative
			
	 Jay Lichter, President and CEO
	 		 	 Heather Bristol

	Print (Name and Title)	 		 	 Associate Director, Business Development
 Preclinical
Services – Massachusetts

			
	June 22, 2007	 		 	June 14, 2007
	Date	 		 	Date

 Confidentiality Statement: This document contains proprietary information, which is confidential to Charles
River Laboratories Preclinical Services. Use of this document is restricted to review by Akesis Pharmaceuticals and their representatives for purposes of determining award of the proposed contract. Akesis Pharmaceuticals agrees to restrict the
distribution of this document to those individuals involved in the award on a “need-to-know” basis. Individuals receiving this document will be informed of its proprietary nature and their obligations concerning confidentiality prior to
receipt. 

 Scope of Work for Charles River Study: LTC00006 
 Charles River shall carry out the services according to the following scope of work: 
  

									
	28-Day Toxicity Study in Rats with 2 Weeks Recovery
		
	GLP Status:	  	GLP
		
	Recovery:	  	2 Weeks
		
	Initiation Requirement:	  	None
		
	Species, Strain, Source:	  	Dogs, Beagle
		
	Health Sentinel Animals (as needed)	  	None
		
	Test Article:	  	BEOV (bis (ethylmaltolato) oxovanadium)
		
	Control Article:	  	TBD
		
	Test, Control Article Preparation:	  	Solution
		
	Number Doses/Day	  	1x/day, for 28 days
		
	Dosing Method:	  	Oral Gavage
				
	Study Design:	  	 Group
	  	 Dose
 (mg/kg/day)
	  	 Numbers of Animals

	 	  	  	  	 M
	  	 F

		  	1 (Control)	  	0	  	3 MS+2 Rec	  	3 MS+2 Rec
		  	2	  	1	  	3 MS+2 Rec	  	3 MS+2 Rec
		  	3	  	2	  	3 MS+2 Rec	  	3 MS+2 Rec
		  	4	  	4	  	3 MS+2 Rec	  	3 MS+2 Rec
		
		  	MS = main study; TK = Toxicokinetic First 3 animals/sex/group - end of dose necropsy on Day 29 Remaining 2 animals/sex/group - recovery necropsy on Day 43
		
	 In-Life:
	  	
		
	 Mortality:
	  	All animals, 2x daily (AM, PM)
		
	 Clinical Observation:
	  	All animals, 1x daily including 1 week prior to closing MS and Rec animals, 1x daily after dosing Rec animals, 1x daily
		
	 Body Weight:
	  	All animals, 2x pretest including Day -1, weekly while on study MS animals, Day -29, prior to necropsy, fasted Rec animals, Day 43, prior to necropsy, fasted
		
	 Food Consumption:
	  	All animals, qualitative, daily including 1 week prior to dosing
		
	 Physical Examination:
	  	Available at additional pricing
		
	 Water Consumption
	  	Available at additional pricing
		
	 Electrocardiography:
	  	All animals, pretest, prior to necropsy Rec animals, prior to necropsy Qualitative data evaluation by a Board-certified veterinary cardiologist
		
	 Ophthalmology:
	  	Available at additional pricing
		
	 Special Assessments:
	  	Available at additional pricing
		
	Toxicokinetics:	  	All animals, Days 1 and 28 at the following timepoints: Pre-dose, 0.5, 1, 2, 3, 6, 12 and 24 hours; Samples collected and analyzed for determination of Vanadium by GFAAS: Serum
(640 TK samples)

 Scope of Work for Charles River Study: LTC00006 (Concluded) 
  

			
	 Clinical Pathology
	  	
		
	 Serum Chemistry:
	  	Serum Chemistry: All animals, pretest (Day -7), Day 1 (predose), Day 7 and Day 29, fasted, terminal bleed at necropsy Rec animals, Day 43, fasted, terminal bleed at
necropsy
	 Hematology:
	  
	 Coagulation:
	  
		
	 Urinalysis:
	  	All animals, pretest (Day -7), Day 1 (predose), Day 7 and Day 29 Rec animals, Day 43 Urine collected by pan collection or cystocentesis (prior to necropsy)
		
	 Special Assessments:
	  	Urine parameters: NAG, GGT, Beta-2-Microglobulin, Protein, Creatinine, Ca++, and Phosphate Calculate and report data using ratios and fractional excretion as appropriate.
		
	 Anatomical Pathology
	  	
		
	 Gross Necropsy:
	  	All animals, MS animals, Day 29, Rec animals Day 43
		
	 Organ Weights:
	  	All animals, MS animals, Day 29, Rec animals Day 43
		
	 Histopathology:
	  	All animals, Comprehensive tissue collection, limited histopathologic evaluation (Kidney, Liver, Lung, Heart, Pancreas) control and high dose animals, read down as necessary with additional
pricing. Bone marrow smears collected, slides made, evaluated if necessary
		
	 Special Assessments:
	  	Kidney Cortex collected and evaluated for EM (40 samples) Kidney & Pancreas collected for possible evaluated for IHC (80 samples) Femur collected and analyzed by DXA, pQCT and 3-point
bending (40 samples) Samples collected and analyzed for determination of Vanadium by GFAAS: Bone, Kidney, Liver, Pancreas, Heart, Lung, Muscle, and Fat
		
	Data Analysis:	  	Qualitative and quantitative as appropriate
		
	Report Requirements:	  	Draft and Final *
		
	Archiving:	  	1 year
		
	Dose Formulation Sample Analysis:	  	Included (4 occasions)
		
	Bioanalytical Sample Analysis:	  	Included [Serum (640 TK samples), Tissue; (320 samples, 8 tissues, 50 sample minimum = 8 minimum tissue batches)]
		
	Toxicokinetic Data Evaluation:	  	Included (60 data sets)

  

				
	Core Study Price:	  	$	278,400
	Electron Microscopy Sample Analysis:	  	$	28,800
	Femur Analysis:	  	$	38,000
	Dose Formulation Sample Analysis:	  	$	17,800
	Bioanalytical Sample Analysis:	  	$	196,000
	TK Data Evaluation:	  	$	17,000

	*	Authorization to finalize the report must be received within six (6) months of draft report submission (unless agreed upon differently with the Sponsor). If such authorization
is not received within this timeframe, Charles River may automatically finalize the report and submit it to the Sponsor. 

 Price and Payment Schedule for Charles River Study: LTC00006 
 The payment schedule and price of this study are as follows: 
  

	 	•	 	 30% Due upon Authorization* 

  

	 	•	 	 30% Due upon Study Initiation 

  

	 	•	 	 30% Due upon Completion of In-Life 

  

	 	•	 	 10% Due upon Submission of Draft Report 

 Total
Price of Study: $576,000 

	*	Invoice will be sent no more than 60 days prior to scheduled study start. 

 Please note: If you require the reference of a purchase order on invoices, please include the purchase order with the acceptance of this letter. 
 Note: For the recovery phase, Charles River Laboratories reserves the right to house the animals in a smaller room which may or may not house recovery animals from other studies. Should the Sponsor not want the animals to be moved, an
additional charge may be applied. 

 CANCELLATION AND DELAY POLICY 
 Upon receipt of the signed Letter of Commitment, Charles River Laboratories Preclinical Services will order, or reserve, animals and allocate other resources for the specified study. 
 If the study is initiated on the scheduled start date, the final price estimate is valid and no postponement or cancellation charges are applicable. If the study is
rescheduled or cancelled 60 days or more prior to the study initiation, there will be no charges. The initiation of the study is defined as the first day any study-related treatment is administered or on which the animals are subjected to any
surgical preparation (if applicable), whichever occurs first. Studies of $10,000 or less will have no postponement or cancellation charges in effect. 
 Postponement Terms: 
 Postponement of the study by the Sponsor through no fault of Charles River Laboratories Preclinical Services
within 60 days of study initiation will be assessed to the Sponsor at $7,500 per week of delay to a maximum of the cancellation charge as follows: 
 Cancellation Terms: 
 Cancellation of the study by the Sponsor through no fault of Charles River Laboratories Preclinical Services
within 60 days of study initiation will be assessed as follows: 
 Cancellation Charges 
  

			
	 Days Notice Given Prior to Study
Initiation
	  	Cancellation Charge (% of Study Price)
	1-7	  	40%
	8-14	  	30%
	15-29	  	20%
	30-59	  	10%

 If the Sponsor requests postponement of a study start we will make every effort to accommodate the requested
change; however, due to resource constraints, Charles River Laboratories Preclinical Services may not be able to reschedule the study precisely as requested by the Sponsor. If the new schedule is not acceptable, the Sponsor may elect to cancel the
study, in which case the applicable cancellation charge would apply. 
 In the event of postponement or cancellation of the study by the Sponsor, additional
compensation may be requested for items procured specifically for the study (e.g., animal purchases, dedicated equipment, perishable or non-reusable supplies). Additionally, if the Sponsor postpones the study, additional charges will be assessed for
any non-recoverable expenses incurred by Charles River Laboratories Preclinical Services (e.g., equipment lease payments, subcontractor charges or consultant fees to which Charles River Laboratories Preclinical Services is committed). 
 Exceptions to the above terms may be made on a case-by-case basis at Charles River Laboratories Preclinical Services’ discretion, if the study cancellation or
postponement has little or no financial impact on Charles River Laboratories Preclinical Services (e.g., if the study is subsequently cancelled or postponed within the 60-day prestudy period but no resources have been expended or costs incurred in
the preparation for the study, and the animals can be readily used in another study [or exchanged, in the case of postponement]).Sixth Amendment Agreement and Allonge

 EXHIBIT 10.22 
 SIXTH AMENDMENT AGREEMENT AND ALLONGE 
 THIS SIXTH AMENDMENT AGREEMENT AND ALLONGE is
made effective as of the 27th day of June, 2007, by and among Bank of America, N.A., a national banking association, with an office located at 111 Westminster Street, Providence, Rhode Island (the "Lender"), and Summer Infant (USA),
Inc., a Rhode Island corporation, formerly known as SII Acquisition, Inc., as successor by merger with Summer Infant, Inc. ("SII"), Summer Infant Europe Limited, a private company limited by shares organized under the laws of England and
Wales with registered number 04322137 ("SIE"), and Summer Infant Asia Limited, a Hong Kong corporation ("SIA"), all with a principal place of business located at 1275 Park East Drive, Woonsocket, Rhode Island (SII, SIE, and SIA herein
individually referred to as a "Borrower" and collectively referred to as the "Borrowers"). 
 PURPOSE 
 A. The Lender and the Borrowers entered into that certain Revolving Credit Agreement dated July 19, 2005 (the "Loan Agreement") with respect to a
revolving line of credit (the "Revolving Loan") from the Lender to the Borrowers providing borrowing availability up to $7,500,000, which Loan Agreement was heretofore amended pursuant to that certain Amendment Agreement and Allonge between the
Lender and the Borrowers dated as of December 29, 2005 (the "First Amendment"), which First Amendment increased the borrowing availability under the Revolving Loan to $11,000,000, that certain Second Amendment Agreement and Allonge between the

 
Lender and the Borrowers dated as of April, 2006 (the "Second Amendment"), which Second Amendment extended the maturity of the Revolving Loan, that certain
Third Amendment Agreement and Allonge between the Lender and the Borrowers dated as of July 31, 2006 (the "Third Amendment"), which Third Amendment increased the borrowing availability under the Revolving Loan to $13,000,000 and further
extended the maturity of the Revolving Loan, and that certain Fourth Amendment Agreement and Allonge between the Lender and the Borrowers dated as of December 21, 2006 (the "Fourth Amendment"), which Fourth Amendment increased the borrowing
availability under the Revolving Loan to $17,000,000 and further extended the maturity of the Revolving Loan. All capitalized terms not otherwise defined herein shall have the meanings set forth in the Loan Agreement. 
 B. By Assumption and Modification Agreement – Revolving Debt dated March 6, 2007 among Summer Infant, Inc., SII, and the Lender (the
“Fifth Amendment”), SII, as successor by merger with Summer Infant, Inc., assumed the obligations of Summer Infant, Inc. under the Loan Agreement, the Note, and the Security Documents, and the Lender consented to the merger between Summer
Infant, Inc. and SII. 
 C. The Revolving Loan Advances made under the Revolving Loan and the Borrowers’ obligations thereunder are
evidenced by that certain Secured Promissory Note of the Borrowers payable to the order of the Lender in the principal amount of $7,500,000 dated July 19, 2005, which principal amount was (i) increased to $11,000,000 pursuant to the terms
of the First Amendment, (ii) further increased to $13,000,000 pursuant to the terms of the Third Amendment, and (iii) further increased to $17,000,000 

  

 2 

 
pursuant to the terms of the Fourth Amendment (said Secured Promissory Note, as amended by the First Amendment, the Second Amendment, the Third Amendment,
the Fourth Amendment, and the Fifth Amendment herein collectively the “Note”). 
 D. Borrowers and Lender desire to further
increase the borrowing availability under the Revolving Loan and to further extend the maturity of the Revolving Loan. 
 NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. The
definition of "Borrowing Limit" in Section 1.01 of the Loan Agreement, as heretofore amended, is hereby further amended in its entirety to read as follows: 
 ""Borrowing Limit" means an amount which shall not exceed the lesser of (a) Eighteen Million Five Hundred Thousand
Dollars ($18,500,000) or (b) the aggregate Dollar Equivalent of (i) eighty-five percent (85%) of Total Eligible Toys R Us Receivables outstanding from time to time, plus (ii) eighty-five percent (85%) of Total
Eligible Target Receivables outstanding from time to time, plus (iii) eighty percent (80%) of Eligible Domestic Receivables outstanding from time to time, plus (iv) sixty percent (60%) of the value of Eligible
Domestic Inventory, plus (v) fifty percent (50%) of the value of Eligible Foreign Inventory, plus (vi) fifty-five percent (55%) of the value of Intransit Inventory, plus (vii) sixty percent (60%) of
Eligible Foreign Receivables outstanding from time to time; provided, however, the amount available for advances against Eligible Domestic Inventory, Intransit Inventory, and Eligible Foreign Inventory shall not exceed Eight Million Dollars
($8,000,000)." 
 2. The definition of “Termination Date” in Section 1.01 of the Loan Agreement, as heretofore amended, is
hereby further amended in its entirety to read as follows: 
 “"Termination Date" shall mean
September 30, 2007, or such later date specified by the Lender if this Agreement shall be extended by the Lender in writing.” 
  

 3 

 3. The reference to the dollar symbol and amount “$17,000,000” in the upper right hand corner
on page 1 of the Note is hereby deleted and the symbol and number “$18,500,000” is substituted therefor and inserted in place thereof. The reference to the principal amount of “Seventeen Million Dollars ($17,000,000)” in the
eighth and ninth lines of the first paragraph on page 1 of the Note is hereby deleted and “Eighteen Million Five Hundred Thousand Dollars ($18,500,000)” is substituted therefor and inserted in place thereof. 
 4. The definition of "Maturity Date" on page 5 of the Note, as heretofore amended, is hereby further amended in its entirety to read as follows:

 “"Maturity Date" means September 30, 2007.” 
 5. An original of this Agreement shall be attached to and made a part of the Note. 
 6. SII acknowledges and agrees that the increase in the borrowing availability under the Revolving Loan evidenced by this Agreement constitutes
“Obligations,” as such term is defined in the Security Agreement, and thus shall be secured thereby. Section 1.23 of the Security Agreement is hereby amended in its entirety to read as follows: 
 "1.23. "Promissory Note" shall mean that certain Secured Promissory Note of the Debtor, Summer Infant Europe Limited, and
Summer Infant Asia Limited payable to the order of the Secured Party, dated July 19, 2005 and in the face amount of Seven Million Five Hundred Thousand Dollars ($7,500,000), as increased in amount to Eleven Million Dollars ($11,000,000)
pursuant to that certain Amendment Agreement and Allonge among the Debtor, Summer Infant Europe Limited, Summer Infant Asia Limited and the Secured Party dated December 29, 2005, as further increased in amount to Thirteen Million Dollars
($13,000,000) pursuant to that certain Third Amendment Agreement and Allonge among the Debtor, Summer Infant Europe Limited, Summer Infant Asia Limited 

  

 4 

 
and the Secured Party dated July 31, 2006, as further increased in amount to Seventeen Million Dollars ($17,000,000) pursuant to that certain Fourth
Amendment Agreement and Allonge among the Debtor, Summer Infant Europe Limited, Summer Infant Asia Limited and the Secured Party dated December 21, 2006, and as further increased in amount to Eighteen Million Five Hundred Thousand Dollars
($18,500,000) pursuant to that certain Sixth Amendment Agreement and Allonge among the Debtor, Summer Infant Europe Limited, Summer Infant Asia Limited and the Secured Party dated June 27, 2007." 
 7. All security for the Revolving Loan and the Note now existing or hereafter granted to Lender, including without limitation all security evidenced,
granted or governed by the Security Documents shall be security for the Revolving Loan and the Note as amended by this Agreement. 
 8. All
references to the Loan Agreement, wherever, whenever or however made or contained, are hereby deemed to be references to the Loan Agreement, as modified by this Agreement. All references to the Note, wherever, whenever or however made or contained,
are hereby deemed to be references to the Note, as modified by the First Amendment and this Agreement. 
 9. By executing this Agreement on
behalf of Borrower in the space designated below, the individual so signing represents and warrants to Lender that he or she has full power and authority to execute this Agreement and to bind Borrower, and that all corporate actions necessary to
authorize and approve execution of this Agreement, and by such individual, have been taken prior to the execution hereof. 
 10. This
Agreement shall be binding upon and shall inure to the benefit of Borrower and Lender, and their respective heirs, administrators, executors, successors, and assigns. This Agreement has been made in the State of Rhode Island and shall be governed,
construed, applied, and enforced in accordance with the laws of such state 

  

 5 

 
without resort to its conflict of laws rules. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective
and valid under applicable law; should any provision of this Agreement be declared invalid for any reason in any jurisdiction, such declaration shall have no effect upon the remaining portions of this Agreement. In addition, the entirety of this
Agreement shall continue in full force and effect in all jurisdictions and said remaining portions of this Agreement shall continue in full force and effect in the subject jurisdiction as if this Agreement had been executed with the invalid portions
thereof deleted. 
 11. Except as amended hereby, all other terms and provisions of the Loan Agreement, the Note, and the Security Agreement
are hereby ratified and confirmed. 
 12. The Borrowers hereby warrant that all of the representations and warranties contained in the Loan
Agreement are true and correct as of the date hereof and that no Event of Default (as defined in the Loan Agreement) has occurred and is continuing. 
 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment Agreement and Allonge to
be executed as of the date first above written. 
  

							
		 		 	Bank of America, N.A.
				
	 /s/ Patricia A. Daigneault
	 		 	By:	 	 /s/ David J. Angell

		 		 		 	David J. Angell, Senior Vice President
			
		 		 	Summer Infant (USA), Inc.
				
	 /s/ Joseph Driscoll
	 		 	By:	 	 /s/ Jason P. Macari

		 		 	Name:	 	Jason P. Macari
		 		 	Title:	 	President
			
		 		 	Summer Infant Europe Limited
				
	 /s/ Joseph Driscoll
	 		 	By:	 	 /s/ Jason P. Macari

		 		 	Name:	 	Jason P. Macari
		 		 	Title:	 	M.D.
			
		 		 	Summer Infant Asia Limited
				
	 /s/ Joseph Driscoll
	 		 	By:	 	 /s/ Jason P. Macari

		 		 	Name:	 	Jason P. Macari
		 		 	Title:	 	M.D.

  

 7

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