Document:

Registration Rights Agreement

 Exhibit 10.2 

REGISTRATION RIGHTS AGREEMENT 

REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of June 2, 2010, by and among
ARENA PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), and DEERFIELD PRIVATE DESIGN FUND, L.P., DEERFIELD PRIVATE DESIGN INTERNATIONAL, L.P., DEERFIELD PARTNERS, L.P., DEERFIELD INTERNATIONAL
LIMITED, DEERFIELD SPECIAL SITUATIONS FUND, L.P. AND DEERFIELD SPECIAL SITUATIONS FUND INTERNATIONAL LIMITED (as defined below) (each individually, a “Purchaser” and together, the “Purchasers”).

 WHEREAS: 

A. In connection with the Purchase and Exchange Agreement by and among the parties hereto of even date herewith
(the “Purchase Agreement”), among other things, the Company has agreed, upon the terms and subject to the conditions contained therein, to issue and sell to the Purchasers the Shares (as defined in the Purchase Agreement) in
the amount described in the Purchase Agreement, and to issue Warrants (as defined in the Purchase Agreement) where each of the Warrants is exercisable for shares of the Company’s common stock, $0.0001 par value per share (the “Common
Stock”), each upon the terms and conditions and subject to the limitations and conditions set forth in the Warrants, all subject to the terms and conditions of the Purchase Agreement; and 

B. To induce the Purchasers to execute and deliver the Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “Securities Act”), and applicable state securities laws.

 NOW, THEREFORE, In consideration of the premises and the
mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Purchasers hereby agree as follows: 

1. DEFINITIONS. 

(a) Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the
Warrants. 
 (b) As used in this Agreement, the following terms shall have the following meanings:

 (i) “Buyer” means each Purchaser and any permitted transferee or assignee who
agrees to become bound by the provisions of this Agreement in accordance with Section 10 hereof. 
 (ii)
“Filing Deadline” shall mean July 2, 2010. 
 (iii) “Global
Limit” means the aggregate limits on the number of shares of Common Stock issuable upon exercise of or otherwise pursuant to the Warrants, as set forth in Section 13(a) of the Warrants. 

 

 1. 

 (iv) “Person” means and includes any natural
person, individual, partnership, joint venture, corporation, trust, limited liability company, limited company, joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof, or any other entity.

 (v) “Registration Deadline” shall mean October 30, 2010. 

(vi) “Register,” “Registered,” and
“Registration” refer to a registration effected by preparing and filing a Registration Statement or Statements in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or any successor rule
providing for offering securities on a continuous basis, and the declaration or ordering of effectiveness of such Registration Statement by the United States Securities and Exchange Commission (the “SEC”). 

(vii) “Registrable Securities” means (a) the Shares, (b) any shares of Common
Stock issued or issuable upon Exercise of the Warrants (without giving effect to any limitations on exercise set forth in the Warrants, other than the Global Limit), including pursuant to a Cash Exercise, a Cashless Exercise or a Cashless Major
Exercise, (c) any shares of capital stock issued or issuable as a dividend or other distribution on or in exchange for or otherwise with respect to any of the foregoing and (d) any securities issued or issuable upon any stock split,
recapitalization or similar event with respect to the foregoing; provided, however, that no such securities shall be deemed Registrable Securities for purposes of this Agreement to the extent that such securities (A) have been sold to
the public under a Registration or pursuant to Rule 144 under the Securities Act; (B) have been sold, transferred or otherwise disposed of by a Person in a transaction in which its rights under this Agreement were not validly assigned pursuant
to Section 10 hereof or (C) may be immediately sold to the public without registration or restriction (including without limitation as to volume by each holder thereof) under the Securities Act. 

(viii) “Registration Statement(s)” means a registration statement(s) of the Company under
the Securities Act required to be filed hereunder. 
 (ix) “Trading Day” means
any day on which the Common Sock is traded for any period on the NASDAQ Global Market, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

2. REGISTRATION. 

(a) MANDATORY REGISTRATION. 

(i) The Company shall prepare and, on or prior to the Filing Deadline, file with the SEC, a Registration Statement
on Form S-3 (or, if Form S-3 is not then available, on such other form as is available to effect such a registration) covering the resale of 27,200,000 shares of Registrable Securities (the “Initial Registration Shares”).

  

 2. 

 (ii) After filing the Registration Statement pursuant to
Section 2(a)(i), the Company shall use commercially reasonable efforts to cause such Registration Statement to become effective under the Securities Act by the Registration Deadline. If for any reason the SEC does not permit all of the Initial
Registration Shares to be included in the Registration Statement filed pursuant to Section 2(a)(i), then the Company will use commercially reasonable efforts, in consultation with the Staff of the SEC, to as promptly as practical and as
allowable under the Securities Act, cause the registration, under a Registration Statement (an “Additional Registration Statement”) pursuant to Rule 415 under the Securities Act or any successor rule providing for offering
securities on a continuous basis, of the resale of any Initial Registration Shares that have not been registered under the applicable Registration Statement filed pursuant to Section 2(a)(i). 

(iii) Each Registration Statement filed pursuant to this Section 2(a), to the extent allowable under the
Securities Act and the rules and regulations promulgated thereunder (including Rule 416), shall state that such Registration Statement also covers such indeterminate number of shares of Common Stock as may be issuable upon exercise of or otherwise
pursuant to the Warrants to prevent dilution resulting from stock splits, stock dividends or similar transactions. The number of shares of Common Stock initially included in each Registration Statement filed pursuant to this Section 2(a) shall
be without regard to any limitation on a Buyer’s ability to exercise the Warrants, other than the Global Limit. Each Registration Statement filed pursuant to this Section 2(a) (and each amendment or supplement thereto, and each request for
acceleration of effectiveness thereof) shall be provided to each Buyer and its counsel prior to its filing or other submission. 

(b) PIGGY-BACK REGISTRATIONS. If at any time after the date hereof
and prior to the expiration of the Registration Period (as hereinafter defined) the Company shall determine to file with the SEC a Registration Statement relating to an offering for its own account or the account of others under the Securities Act
of any of its equity securities (other than on Form S-4 or Form S-8 or their equivalents) (a “Piggyback Eligible Registration Statement”), the Company shall send to each Buyer written notice of such determination and, if
within fifteen (15) days after the effective date of such notice, a Buyer shall so request in writing, the Company shall include in such Piggyback Eligible Registration Statement all or any part of the Registrable Securities then outstanding
that such Buyer requests to be registered, except that if, in connection with any underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall impose a limitation on the number of Registrable Securities
which may be included in the Piggyback Eligible Registration Statement because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be
obligated to include in such Piggyback Eligible Registration Statement only such limited portion of the Registrable Securities with respect to which a Buyer has requested inclusion hereunder as the underwriter shall permit; 

PROVIDED, HOWEVER, that the Company shall not exclude any Registrable
Securities unless the Company has first excluded all outstanding securities held by holders who are not entitled by contract to the inclusion of such securities in such Piggyback Eligible Registration Statement or are not entitled to pro rata
inclusion with the Registrable Securities (it being understood, for avoidance of doubt, that the Company shall not be required to exclude any securities subject to the Registration Rights Agreement dated December 24, 2003, among the Company,
Mainfield Enterprises, Inc. and Smithfield Fiduciary LLC as amended June 30, 2006, the Settlement Agreement and Release, dated as of June 30, 2006, by and between the Company and Smithfield Fiduciary LLC, and the Exchange Agreement, dated
as of August 14, 2008, between the Company and Mainfield Enterprises, Inc. (collectively, the “Existing Agreements”)); and 
  

 3. 

 PROVIDED, FURTHER,
HOWEVER, that, after giving effect to the immediately preceding proviso, any exclusion of Registrable Securities shall be made pro rata with holders of other securities having the contractual right to include such
securities in the Piggyback Eligible Registration Statement other than holders of securities entitled to inclusion of their securities in such Piggyback Eligible Registration Statement by reason of demand registration rights or under the Existing
Agreements. No right to registration of Registrable Securities under this Section 2(b) shall be construed to limit any registration required under Section 2(a) hereof. If an offering in connection with which a Buyer is entitled to
registration under this Section 2(b) is an underwritten offering, then a Buyer shall, unless otherwise agreed by the Company, offer and sell such Registrable Securities in an underwritten offering using the same underwriter or underwriters and,
subject to the provisions of this Agreement and the underwriting agreement in such offering, on the same terms and conditions as other shares of Common Stock included in such underwritten offering (including, without limitation, execution of an
agreement with the managing underwriter or agent limiting the sale or distribution such Buyer may make of shares of Common Stock or any securities convertible or exchangeable or exercisable for such shares of the Company, except as part of such
registration). Notwithstanding anything to the contrary set forth herein, the registration rights of the Buyers pursuant to this Section 2(b) shall only be available to the extent that the Buyer holds outstanding Registrable Securities that are
not registered for resale or issuance pursuant to another effective Registration Statement at the time that the Company files a Piggyback Eligible Registration Statement. 

3. OBLIGATIONS OF THE COMPANY. In connection with the registration of the Registrable Securities, the Company shall have the
following obligations: 
 (a) The Company shall (i) prepare and file with the SEC the Registration
Statement(s) required pursuant to Section 2(a) above and thereafter use commercially reasonable efforts to cause each such Registration Statement(s) relating to Registrable Securities to become effective as soon as practicable after such
filing, and (ii) subject to Section 3(o) hereof, shall use commercially reasonable efforts to keep each such Registration Statement(s) current and effective pursuant to Rule 415 at all times until such date as the Registrable Securities
registered thereunder cease to be Registrable Securities (the “Registration Period”), which Registration Statement(s) (including any amendments or supplements thereto and prospectuses contained therein), except for
information provided by a Buyer or any transferee of a Buyer pursuant to Section 4(a), shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements
therein not misleading. 
  

 4. 

 (b) Subject to Section 3(o) hereof, the Company shall, during
the Registration Period, comply with the provisions of the Securities Act applicable to the Company with respect to the disposition of all Registrable Securities of the Company covered by each Registration Statement until the earlier of
(i) such time as all of such Registrable Securities have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in each Registration Statement, and (ii) the Registrable
Securities registered thereunder cease to be Registrable Securities. In the event that the number of Registrable Securities issued or issuable pursuant to the Warrants increases above the Initial Registration Shares (the date of each such event a
“Registration Trigger Date”) such that the number of shares available under the Registration Statements filed pursuant to this Agreement is insufficient to register for resale all of the Registrable Securities issued or
issuable upon exercise of or otherwise pursuant to the Warrants, including, without limitation, any additional shares of Common Stock issuable upon exercise of or otherwise pursuant to the Warrants to prevent dilution resulting from stock splits,
stock dividends or similar transactions, without giving effect to any limitations on the Buyers’ ability to exercise the Warrants (other than the Global Limit), the Company shall use commercially reasonable efforts to amend the Registration
Statements, or file a new Registration Statement (on the short form available therefore, if applicable), or both, so as to register for resale the total number of Registrable Securities so issued or issuable and not covered by Registration
Statements filed pursuant to this Agreement, as of the applicable Registration Trigger Date, as soon as practicable after the Registration Trigger Date (with the number of additional Registrable Securities based on the Exercise Price of the
Warrants, if applicable, and other relevant factors on which the Company reasonably elects to rely). The Company shall use commercially reasonable efforts to cause such amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof. 
 (c) The Company shall furnish or otherwise make available to
each Buyer and its legal counsel (i) promptly after the same is prepared and publicly distributed, filed with the SEC, or received by the Company, one copy of each Registration Statement and any amendment thereto, each preliminary prospectus
and prospectus and each amendment or supplement thereto, and, in the case of a Registration Statement referred to in Section 2(a), each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of
correspondence from the SEC or the staff of the SEC, in each case relating to such Registration Statement (other than any portion of any thereof which contains material non-public information or information for which the Company has sought or
intends to seek confidential treatment), and (ii) such number of copies of a prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such other documents as a Buyer may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by a Buyer. The Company will promptly notify each Buyer by facsimile or email of the effectiveness of each Registration Statement or any post-effective amendment. The Company will
promptly respond to any and all comments received from the SEC, with a view towards causing each Registration Statement or any amendment thereto to be declared effective by the SEC as soon as practicable and shall file an acceleration request as
soon as practicable, but no later than five (5) business days, following the later of (i) resolution or clearance of all SEC comments or, if applicable, notification by the SEC that any such Registration Statement or any amendment thereto
will not be subject to review and (ii) the date the Company is notified in writing of any comments (or that there are no comments), to the Company’s request for acceleration, from the single firm designated by the Buyers to review such
acceleration request pursuant to Section 3(g). 
  

 5. 

 (d) The Company shall use commercially reasonable efforts to
(i) register and qualify, in any jurisdiction where registration and/or qualification is required, the Registrable Securities covered by the Registration Statements under such other securities or “blue sky” laws of such jurisdictions
in the United States as a Buyer shall reasonably request in writing, (ii) prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take
all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions, provided, however, that the Company shall not be required in connection therewith or as a condition thereto to
(A) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (B) subject itself to general taxation in any such jurisdiction, or (C) file a general consent to
service of process in any such jurisdiction. 
 (e) Subject to Section 3(o) hereof, as promptly as
practicable after becoming aware of such event, the Company shall notify each Buyer who holds Registrable Securities of the happening of any event, of which the Company has knowledge, as a result of which the prospectus included in any Registration
Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and use its commercially reasonable efforts
promptly to prepare a supplement or amendment to any Registration Statement to correct such untrue statement or omission, and deliver such number of copies of such supplement or amendment to each Buyer as such Buyer may reasonably request.

 (f) The Company shall use commercially reasonable efforts to prevent the issuance of any stop order or
other suspension of effectiveness of any Registration Statement, and, if such an order is issued, to obtain the withdrawal of such order at the earliest practical moment and to notify each Buyer who holds Registrable Securities being sold (or, in
the event of an underwritten offering, the managing underwriters) of the issuance of such order and the resolution thereof. 

(g) The Company shall permit a single firm of counsel designated by the Buyers to review such Registration
Statement and all amendments and supplements thereto (as well as all requests for acceleration or effectiveness thereof), at Buyers’ own cost, a reasonable period of time prior to their filing with the SEC (not less than five (5) business
days) and use commercially reasonable efforts to reflect in such documents any comments as such counsel may reasonably propose (so long as such comments are provided to the Company at least (2) business days prior to the expected filing date)
and will not request acceleration of such Registration Statement without prior notice to such counsel; provided that the Company shall make the final decision as to the form and content of each such document. 

(h) The Company shall use commercially reasonable efforts to cause all the Registrable Securities covered by each
Registration Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such
exchange. 
 (i) The Company shall provide a transfer agent and registrar, which may be a single entity,
for the Registrable Securities not later than the effective date of the Initial Registration Statement. 
  

 6. 

 (j) The Company shall cooperate with each Buyer who holds Registrable
Securities being offered and the managing underwriter or underwriters as reasonably requested by them with respect to an applicable Registration Statement, if any, to facilitate the timely preparation and delivery of certificates (not bearing any
restrictive legends) representing Registrable Securities sold pursuant to such Registration Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the managing underwriter or underwriters, if any, or a
Buyer may reasonably request and registered in such names as the managing underwriter or underwriters, if any, or a Buyer may request, and, within ten (10) business days after a Registration Statement which includes Registrable Securities is
ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel selected by the Company to deliver, to the transfer agent for the Registrable Securities (with copies to each Buyer) an appropriate instruction and an opinion of
such counsel in the form required by the transfer agent in order to issue such Registrable Securities free of restrictive legends upon the resale of such Registrable Securities pursuant to such Registration Statement. 

(k) At the reasonable request of a Buyer, the Company shall prepare and file with the SEC such amendments
(including post-effective amendments) and supplements to a Registration Statement and any prospectus used in connection with the Registration Statement as may be necessary in order to make reasonable changes to the plan of distribution set forth in
such Registration Statement. 
 (l) The Company shall not, and shall not agree to, allow the holders of
any securities of the Company, other than holders of the Registrable Securities and holders of securities pursuant to the Existing Agreements, to include any of their securities in any Registration Statement under Section 2(a) hereof or any
amendment or supplement thereto under Section 3(a) hereof without the consent of the Buyers. In addition, the Company shall not offer any securities for its own account or the account of others in any Registration Statement under
Section 2(a) hereof or any amendment or supplement thereto under Section 3(a) hereof without the consent of the Buyers. 

(m) The Company shall use commercially reasonable efforts to comply with all applicable laws related to a
Registration Statement and offering and sale of securities and all applicable rules and regulations of governmental authorities in connection therewith (including without limitation the Securities Act and the Exchange Act and the rules and
regulations promulgated by the SEC). 
 (n) If required by the Financial Industry Regulatory Authority,
Inc. (“FINRA”) Corporate Financing Department, the Company shall promptly effect a filing with the FINRA pursuant to FINRA Rule 5110 with respect to the public offering contemplated by resales of securities under the
Registration Statement (an “Issuer Filing”), and pay the filing fee required by such Issuer Filing. The Company shall use commercially reasonable efforts to pursue the Issuer Filing until the FINRA issues a letter confirming
that it does not object to the terms of the offering contemplated by the Registration Statement. 
  

 7. 

 (o) Notwithstanding anything to the contrary herein, at any time
after the Registration Statement has been declared effective by the SEC, the Company may delay or suspend the effectiveness of any Registration Statement or the use of any prospectus forming a part of the Registration Statement, in its sole
discretion, due to the non-disclosure of material, non-public information concerning the Company, the disclosure of which at the time is not in its best interest, in the good faith opinion of the Company (a “Grace Period”);
provided, that the Company shall promptly notify each Buyer in writing of the existence of a Grace Period in conformity with the provisions of this Section 3(o) and the date on which the Grace Period will begin (such notice, a
“Commencement Notice”); and, provided further, that no Grace Period shall exceed forty-five (45) days, and such Grace Periods shall not exceed an aggregate total of ninety (90) days during any 12-month period. For
purposes of determining the length of a Grace Period above, the Grace Period shall begin on and include the date specified by the Company in the Commencement Notice and shall end on and include the date each Buyer receives written notice of the
termination of the Grace Period by the Company (which notice may be contained in the Commencement Notice). The provisions of Sections 3(a)(ii), 3(b) and 3(e) hereof shall not be applicable during any Grace Period. Upon expiration of the Grace
Period, the Company shall again be bound by Sections 3(a)(ii), 3(b) and 3(e) with respect to the information giving rise thereto unless such material, non-public information is no longer applicable. 

(p) Notwithstanding anything to the contrary herein, a delay in the effectiveness of any Registration Statement
caused solely by the filing of a request for confidential treatment shall not be deemed a breach of the Company’s obligations set forth herein and in the case of each Registration Statement required to be filed pursuant to Section 2(a)(i)
or Section 2(a)(ii), the Registration Deadline shall be deemed extended to the date that is ten (10) business days after the date the SEC agrees to allow confidential treatment pursuant to such request or the date such request is withdrawn
by the Company, as applicable. 
 4. OBLIGATIONS OF THE BUYER. In connection with the registration of the Registrable
Securities, each Buyer shall have the following obligations: 
 (a) It shall be a condition precedent to
the obligations of the Company to complete a Registration pursuant to this Agreement with respect to the Registrable Securities of a Buyer that such Buyer shall furnish to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such
registration as the Company may reasonably request. At least five (5) business days prior to the first anticipated filing date of a Registration Statement under which Registrable Securities will be registered, the Company shall notify each
Buyer of the information the Company requires from such Buyer. Any such information shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein
not misleading. A Buyer must provide such information to the Company at least two (2) business days prior to the first anticipated filing date of such Registration Statement if such Buyer elects to have any Registrable Securities included in
the Registration Statement. 
 (b) Each Buyer, by the Buyer’s acceptance of the Registrable
Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of each Registration Statement hereunder, unless the Buyer has notified the Company in writing of the Buyer’s
election to exclude all of the Buyer’s Registrable Securities from such Registration Statement. 
  

 8. 

 (c) In the event of an underwritten offering pursuant to
Section 2(b) in which any Registrable Securities are to be included, each Buyer agrees to enter into and perform such Buyer’s obligations under an underwriting agreement, in usual and customary form, including, without limitation,
customary indemnification and contribution obligations, with the managing underwriter of such offering and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities, unless
the Buyer has notified the Company in writing of the Buyer’s election to exclude all of the Buyer’s Registrable Securities from such Registration Statement. 

(d) Each Buyer agrees that, upon receipt of any notice from the Company of the happening of any event of the kind
described in Sections 3(e), 3(f) or 3(o), the Buyer will immediately discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until the Buyer’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(e) or 3(f) or notice from the Company of the termination of the Grace Period, and, if so directed by the Company, the Buyer shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of destruction) all copies in the Buyer’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 

(e) Each Buyer agrees that it will not effect any disposition or other transfer of the Registrable Securities that
would constitute a sale within the meaning of the Securities Act other than transactions exempt from the registration requirements of the Securities Act or pursuant to, and as contemplated in, a Registration Statement, and that it will promptly
notify the Company of any material changes in the information set forth in a Registration Statement furnished by or regarding such Buyer or its plan of distribution other than changes in the number of shares beneficially owned. 

5. REMEDIES. In the event of a breach by the Company of its obligations under this Agreement, each Buyer, in addition to being
entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. 

6. EXPENSES OF REGISTRATION. All expenses of the Company incurred in connection with registrations, filings or qualifications
pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualification fees, printers and accounting fees and the fees and disbursements of counsel for the Company, shall be borne by the Company. All expenses of the
Buyers incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, underwriting discounts and commissions and legal expenses incurred by any Buyer for review of any Registration
Statement, shall be borne by the applicable Buyer. 
  

 9. 

 7. INDEMNIFICATION. In the event any Registrable Securities are included in a
Registration Statement under this Agreement: 
 (a) The Company will indemnify, hold harmless and defend
(i) each Buyer, (ii) the directors, officers, partners, managers, members, employees, agents and each person who controls each Buyer within the meaning of the Securities Act or the Exchange Act, if any, (iii) any underwriter (as
defined in the Securities Act) for each Buyer in connection with an underwritten offering pursuant to Section 2(b) hereof, and (iv) the directors, officers, partners, managers, members, employees, agents and each person who controls any
such underwriter within the meaning of the Securities Act or the Exchange Act, if any (each, an “Indemnified Person”), against any joint or several losses, claims, damages, liabilities or expenses (collectively, together with
actions, proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened, in respect thereof, “Claims”) to which any of them may become subject insofar as such Claims arise out of
or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or the omission or alleged omission to state therein a material fact required to be stated or necessary to make the
statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final
prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of
the circumstances under which the statements therein were made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any state
securities law, or any rule or regulation thereunder, in each case relating to the offer or sale of the Registrable Securities (the matters in the foregoing clauses (i) through (iii) being, collectively,
“Violations”). The Company shall reimburse the Indemnified Person, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 7(a): (A) shall not apply to a Claim arising out of or based upon a Violation to
the extent that such Violation occurs in reliance upon and in conformity with information furnished in writing to the Company by any Indemnified Person for use in connection with the preparation of such Registration Statement or any such amendment
thereof or supplement thereto; (B) with respect to any preliminary prospectus, shall not inure to the benefit of any such Person from whom the Person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or
to the benefit of any Person controlling such Person) if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected in the prospectus, as then amended or supplemented, if such prospectus was timely made
available by the Company pursuant to Section 3(c), and the Indemnified Person was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise to a Violation; (C) shall not be available to the extent such
Claim is based on a failure of the Indemnified Person to deliver or to cause to be delivered the prospectus made available by the Company, including a corrected prospectus, if such prospectus or corrected prospectus was timely made available by the
Company pursuant to Section 3(e); and (D) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by a Buyer pursuant to Section 10 and shall be binding on any transferee. 

(b) Promptly after receipt by an Indemnified Person under this Section 7 of notice of the commencement of any
action (including any governmental action), such Indemnified Person shall, if a Claim in respect thereof is to be made against the Company under this Section 7, deliver to the Company a written notice of the commencement thereof, and the
Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Company and the Indemnified Person, as the case may be. 

 

 10. 

 PROVIDED, HOWEVER, that
an Indemnified Person shall have the right to retain its own counsel with the reasonable fees and expenses to be paid by the Company, if, in the reasonable opinion of counsel for a Buyer, the representation by such counsel of the Indemnified Person
and the Company would be inappropriate due to actual or potential material differing interests between such Indemnified Person and any other party represented by such counsel in such proceeding. The Company shall pay for only one separate legal
counsel for the Indemnified Persons, and such legal counsel shall be selected by the Buyers. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any
liability to the Indemnified Person under this Section 7, except to the extent that the Company is actually prejudiced in its ability to defend such action. The indemnification required by this Section 7 shall be made by periodic payments
of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable. 

(c) Each Buyer will indemnify, hold harmless and defend (i) the Company, and (ii) the directors,
officers, partners, managers, members, employees, agents and each person who controls the Company within the meaning of the Securities Act or the Exchange Act, if any (each, a “Company Indemnified Person”), against any joint
or several losses, claims, damages, liabilities or expenses (collectively, together with actions, proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened, in respect thereof, “Indemnity
Claims”) to which any of them may become subject insofar as such Indemnity Claims arise out of or are based upon any Violation which occurs due to the inclusion by the Company in a Registration Statement of false or misleading
information about such Buyer, where such information was furnished in writing to the Company by such Buyer expressly for inclusion in such Registration Statement. Such Buyer shall reimburse the Company Indemnified Person, promptly as such expenses
are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim, provided, however, that the indemnity agreement contained in this
Section 7(c) and the agreement with respect to contribution contained in Section 8 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Buyer and which consent
shall not be unreasonably withheld or delayed; provided, further, however, that the Buyer shall be liable under this Section 7(c) for only that amount of a Claim as does not exceed the net amount of proceeds received by the Buyer as a result of
the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Company Indemnified Person. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this Section 7(c) with respect to any preliminary prospectus shall not inure to the benefit of any Company Indemnified Person if the untrue statement or omission of material
fact contained in the preliminary prospectus was corrected on a timely basis in the prospectus, as then amended or supplemented. 

(d) Promptly after receipt by a Company Indemnified Person under this Section 7 of notice of the commencement
of any action (including any governmental action), such Company Indemnified Person shall, if a Claim in respect thereof is to be made against a Buyer under this Section 7, deliver to such Buyer a written notice of the commencement thereof, and
such Buyer shall have the right to participate in, and, to the extent the Buyer so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Buyer and the Company Indemnified Person, as the case may be. 

 

 11. 

 PROVIDED, HOWEVER, that
a Company Indemnified Person shall have the right to retain its own counsel with the reasonable fees and expenses to be paid by the applicable Buyer, if, in the reasonable opinion of counsel for the Company, the representation by such counsel of the
Company Indemnified Person and such Buyer would be inappropriate due to actual or potential material differing interests between such Company Indemnified Person and any other party represented by such counsel in such proceeding. A Buyer shall pay
for only one separate legal counsel for the Company Indemnified Persons, and such legal counsel shall be selected by Company. The failure to deliver written notice to a Buyer within a reasonable time of the commencement of any such action shall not
relieve the Buyer of any liability to the Company Indemnified Person under this Section 7, except to the extent that the Buyer is actually prejudiced in its ability to defend such action. The indemnification required by this Section 7
shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable. 

8. CONTRIBUTION. To the extent any indemnification by the Company or a Buyer is prohibited or limited by law, each of the Company
and each Buyer agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 7 to the fullest extent permitted by law, based upon a comparative fault standard, that (i) no Person
that is guilty of fraudulent misrepresentation (within the meaning Section 11(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any Person who was not guilty of fraudulent misrepresentation; and
(ii) contribution by a Buyer shall be limited in amount to the net amount of proceeds received by the Buyer from the sale of such Registrable Securities pursuant to a Registration Statement. 

9. REPORTS UNDER THE 1934 ACT. With a view to making available to the Buyers the benefits of Rule 144 promulgated under the
Securities Act or any other similar rule or regulation of the SEC that may at any time permit the Buyers to sell securities of the Company to the public without registration, the Company agrees to: 

(a) make and keep public information available, as those terms are understood and defined in Rule 144; 

(b) file with the SEC in a timely manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and 

(c) furnish to the Buyers, so long as the Buyers own Registrable Securities, promptly upon request, (i) a
written statement by the Company that it has complied with the reporting requirements of the Securities Act and the Exchange Act as required for applicable provisions of Rule 144, (ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Buyers to sell such securities pursuant to Rule 144 without registration. 

 

 12. 

 Each Buyer shall at all times comply with the restrictions on transfer
contained in Section 8 of the Warrant, which provisions are hereby incorporated by reference and made a part hereof. 

10. ASSIGNMENT OF REGISTRATION RIGHTS. The rights under this Agreement shall be automatically assignable by each Buyer to any
transferee of all or any portion of such Buyer’s Registrable Securities (provided such transfer is permitted under the applicable Warrant) if: (i) the Buyer agrees in writing with the transferee or assignee to assign such rights, and a
copy of such agreement is furnished to the Company within a reasonable time after such assignment, (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address
of such transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or assigned, and (iii) at or before the time the Company receives the written notice contemplated by clause
(ii) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein. In the event that a Buyer transfers all or any portion of its Registrable Securities pursuant to this
Section, the Company shall have at least ten (10) Trading Days following the receipt of such notice to file any amendments or supplements necessary to keep a Registration Statement current and effective pursuant to Rule 415. 

11. AMENDMENT OF REGISTRATION RIGHTS. Provisions of this Agreement may be amended and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with written consent of the Company and the holders of a majority in interest of then-outstanding Registrable Securities. Any amendment or waiver effected in
accordance with this Section 11 shall be binding upon each of the Buyers and the Company. 
 12. TERMINATION OF RIGHTS
AND OBLIGATIONS. The obligations of the Company pursuant to the terms of this Agreement, other than the obligations set forth in Sections 6, 7, 8 and 13, shall terminate upon the date upon which all Registrable Securities held by a
Buyer or issuable upon exercise of Warrants cease to be Registrable Securities. 
 13. MISCELLANEOUS. 

(a) A person or entity is deemed to be a holder of Registrable Securities whenever such person or entity owns of
record or beneficially through a “street name” holder such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more persons or entities with respect to the same Registrable Securities,
the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable Securities. 
  

 13. 

 (b) Any notices required or permitted to be given under the terms
hereof shall be in writing and shall be deemed given only if sent by certified or registered mail (return receipt requested) or delivered personally or by courier (including a recognized overnight delivery service) or by facsimile and shall be
effective five days after being placed in the mail, if mailed by regular United States mail, or upon receipt, if delivered personally or by courier (including a recognized overnight delivery service) or by facsimile, in each case addressed to a
party. The addresses for such communications shall be: 
 If to the Company: 

Arena Pharmaceuticals, Inc. 

6166 Nancy Ridge Drive 

San Diego, CA 92121 

Fax: (858) 677-0065 

Attn: General Counsel 

With copy to: 

Cooley LLP 

4401 Eastgate Mall 

San Diego, CA 92121 

Fax: (858) 550-6420 

Attn: Steven M. Przesmicki, Esq. 

If to a Buyer: 

c/o Deerfield Capital, L.P. 

780 Third Avenue,
37th Floor 

New York, New York 10017 

Fax: (212) 599-1248 

Attn: David J. Clark, Esq. 

With a copy to: 

Katten Muchin Rosenman LLP 

575 Madison Avenue 

New York, New York 10022 

Fax: (212) 940-8776 

Attn: Mark I. Fisher, Esq. 

Elliot Press, Esq. 

Each party shall provide notice to the other party of any change in address. 

(c) Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in
exercising such right or remedy, shall not operate as a waiver thereof. 
  

 14. 

 (d) GOVERNING LAW. All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, employees or agents) shall be commenced exclusively in either the state and federal courts sitting in the City of New York or City of San Diego, California. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan and the City of San Diego, California for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is
improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce
any provision of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and
prosecution of such action or proceeding. 
 (e) This Agreement, the Warrants and the Purchase Agreement
(including all schedules and exhibits thereto) constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein and therein. This Agreement, the Warrants and the Purchase Agreement supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof. 

(f) Subject to the requirements of Section 10 hereof, this Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties hereto. 
 (g) The headings in this
Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 

(h) This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all
of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto via scanned .pdf or by facsimile transmission of a copy of this Agreement bearing the signature of the party
so delivering this Agreement, which .pdf copy or facsimile transmission shall be deemed an original thereof. 

(i) Each party shall do and perform, or cause to be done and performed, all such further acts and things, and
shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby. 
  

 15. 

 (j) The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Buyers by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for breach of its obligations hereunder will be inadequate
and agrees, in the event of a breach or threatened breach by the Company of any of the provisions hereunder, that the Buyers shall be entitled, in addition to all other available remedies in law or in equity, to an injunction or injunctions to
prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required. 

(k) The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party. 
 (l) In the event
that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with
such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof. 

(m) In the event a Buyer shall sell or otherwise transfer any of such holder’s Registrable Securities, each
transferee shall be allocated a pro rata portion of the number of Registrable Securities included in a Registration Statement for such transferor. 

(n) There shall be no oral modifications or amendments to this Agreement. This Agreement may be modified or
amended only in writing. 
 [Remainder of page left intentionally blank] 

[Signature page follows] 
  

 16. 

 IN WITNESS WHEREOF, the undersigned Buyers and the Company have caused this
Registration Rights Agreement to be duly executed as of the 2nd day of June, 2010. 
  

									
	 COMPANY:
  

ARENA PHARMACEUTICALS, INC.
	 		 	 BUYERS:
  

DEERFIELD PRIVATE DESIGN FUND, L.P.

					
	By:	 	 /s/ ROBERT E. HOFFMAN
	 		 	By:	 	 /s/ DAVID J. CLARK

	Name:	 	Robert E. Hoffman	 		 	Name:	 	David J. Clark
	Title:	 	VP, Finance and CFO	 		 	Title:	 	Authorized Signatory
				
		 		 		 	 DEERFIELD PRIVATE DESIGN INTERNATIONAL, L.P.

					
		 		 		 	By:	 	 /s/ DAVID J. CLARK

		 		 		 	Name:	 	David J. Clark
		 		 		 	Title:	 	Authorized Signatory
				
		 		 		 	 DEERFIELD PARTNERS, L.P.

					
		 		 		 	By:	 	 /s/ DAVID J. CLARK

		 		 		 	Name:	 	David J. Clark
		 		 		 	Title:	 	Authorized Signatory
				
		 		 		 	 DEERFIELD INTERNATIONAL LIMITED

					
		 		 		 	By:	 	 /s/ DAVID J. CLARK

		 		 		 	Name:	 	David J. Clark
		 		 		 	Title:	 	Authorized Signatory
				
		 		 		 	 DEERFIELD SPECIAL SITUATIONS FUND, L.P.

					
		 		 		 	By:	 	 /s/ DAVID J. CLARK

		 		 		 	Name:	 	David J. Clark
		 		 		 	Title:	 	Authorized Signatory
				
		 		 		 	 DEERFIELD SPECIAL SITUATIONS FUND INTERNATIONAL LIMITED

					
		 		 		 	By:	 	 /s/ DAVID J. CLARK

		 		 		 	Name:	 	David J. Clark
		 		 		 	Title:	 	Authorized Signatory

 [Signature Page to
Registration Rights Agreement]Form of Warrant to Purchase Common Stock of Arena

 Exhibit 10.3 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF OR OTHERWISE ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF OR EXERCISED UNLESS (I) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (II) AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER.

 AN INVESTMENT IN THESE SECURITIES INVOLVES A HIGH DEGREE OF RISK. HOLDERS MUST RELY ON THEIR OWN ANALYSIS OF THE INVESTMENT AND ASSESSMENT OF
THE RISKS INVOLVED. 
  

					
	Warrant to Purchase	 		  	
	shares	 		  	Warrant Number

 Warrant to
Purchase Common Stock 
 of 

ARENA PHARMACEUTICALS, INC. 

THIS CERTIFIES that                      (including
any permitted transferee or assignee of this Warrant under the terms hereof, “Holder”) has the right to purchase from ARENA PHARMACEUTICALS, INC., a Delaware corporation, (the “Company”),
                    (                    ) fully
paid and nonassessable shares of the Company’s common stock, $0.0001 par value per share (“Common Stock”), subject to adjustment as provided herein (such shares of Common Stock, together with the stock and other securities and
property at the time receivable upon the exercise of this Warrant, the “Warrant Shares”), at a price equal to the Exercise Price as defined in Section 3 below, at any time during the Term (as defined below). 

Holder agrees with the Company that this Warrant to Purchase Common Stock of the Company (this “Warrant” or this “Agreement”) is
issued, and all rights hereunder shall be held, subject to all of the conditions, limitations and provisions set forth herein. 
 1.
Date of Issuance and Term. 
 This Warrant shall be deemed to be issued on
                    , 2010 (“Date of Issuance”). The term of this Warrant begins on the date that is six months after the Date of Issuance
and ends at 5:00 p.m., New York City time, on June 17, 2013 (the “Term”). For clarity, this Warrant may only be exercised during the Term. This Warrant was issued in conjunction with that certain Purchase and Exchange Agreement (the
“Purchase Agreement”), dated June     , 2010, and Registration Rights Agreement (the “Registration Rights Agreement”), dated June     , 2010, each by and between the Company and Deerfield
Private Design Fund, L.P., Deerfield Private Design International, L.P., Deerfield Partners, L.P., Deerfield International Limited, Deerfield Special Situations Fund, L.P. and Deerfield Special Situations Fund International Limited (collectively,
the “Initial Investors”). This Warrant replaces a portion of that certain Warrant having a Date of Issuance of July 6, 2009 and originally issued to Holder in conjunction with that certain Facility Agreement (the “Facility
Agreement”) by and between the Company and the Initial Investors, dated as of June 17, 2009. 
  

 1. 

 Notwithstanding anything herein to the contrary, the Company shall not issue to the Holder, and the Holder
shall not acquire, shares of Common Stock upon exercise of this Warrant, or otherwise pursuant to the terms of this Warrant, to the extent that, upon such issuance or acquisition, the number of shares of Common Stock then beneficially owned by the
Holder and its Affiliates and any other persons or entities whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) and the applicable regulations of the Securities and Exchange Commission (the “SEC”) (including shares held by any “group” of which the Holder is a member, but excluding shares beneficially owned by
virtue of the ownership of convertible securities or rights to acquire securities that have limitations on the right to convert, exercise or purchase similar to the limitation set forth herein) would exceed 9.98% of the total number of shares of
Common Stock then issued and outstanding (the “9.98% Cap”), provided, however, that the 9.98% Cap shall not apply with respect to the issuance of shares of Common Stock pursuant to a Cashless Major Exercise (as defined below) in connection
with a Major Transaction (as defined below) covered by the provisions of Section 5(c)(i)(A) below in which the Company is not the surviving entity (a “Qualified Change of Control Transaction”) to the extent that the number of shares
beneficially owned by the Holder and its Affiliates in the Successor Entity immediately following consummation of such Qualified Change of Control Transaction does not exceed 9.98% of any class of equity securities of the Successor Entity. For
purposes hereof, “group” has the meaning set forth in Section 13(d) of the Exchange Act and the applicable regulations of the SEC, and the percentage held by the Holder shall be determined in a manner consistent with the provisions of
Section 13(d) of the Exchange Act and the applicable regulations of the SEC. Upon the written request of the Holder, the Company shall, within three (3) Trading Days, confirm in writing to the Holder (which writing may be via email) the
number of shares of Common Stock then outstanding. For purposes of this paragraph, it is understood that the number of shares of Common Stock beneficially owned by each Initial Investor shall be aggregated with each other Initial Investor for
purposes of Section 13(d) of the Exchange Act. 
 “Affiliate” means any person or entity that, directly or indirectly through one
or more intermediaries, controls or is controlled by or is under common control with a person or entity, as such terms are used in and construed under Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”). Without
limiting the generality of the foregoing, with respect to a Holder of Warrants, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Holder will be deemed to be an Affiliate of such
Holder. 
 2. Exercise. 

(a) Manner of Exercise. During the Term, this Warrant may be Exercised as to all or any lesser number of whole Warrant Shares upon surrender of
this Warrant, with the Exercise Form attached hereto as Exhibit A (the “Exercise Form”) duly completed and executed, together with the full Exercise Price (as defined below) for each Warrant Share as to which this Warrant is
Exercised, at the office of the Company, Arena Pharmaceuticals, Inc., 6166 Nancy Ridge Drive, San Diego, California 92121; Phone: (858) 453-7200, Fax: (858) 677-0065, or at such other office or agency as the Company may designate in
writing, by overnight mail, with an advance copy of the Exercise Form sent to the Company and its transfer agent (“Transfer Agent”) by facsimile (such surrender and payment of the Exercise Price hereinafter called the “Exercise”
of this Warrant). 
 (b) Date of Exercise. The “Date of Exercise” of the Warrant shall be defined as the Trading Day that the
Exercise Form attached hereto as Exhibit A, completed and executed, is sent by facsimile to, and received during regular business hours by, the Company, provided that (i) the original Warrant and Exercise Form are received by the
Company within two (2) Trading Days and (ii) in the event of a Cash Exercise, the Exercise Price is satisfied on the next Trading Day. In all other cases, the Date of Exercise shall be defined as the Trading Day on which the original
Warrant and Exercise Form are received by the Company and, in the event of a Cash Exercise, the Exercise Price is satisfied. Upon the Date of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the
Warrant Shares with respect to which this Warrant has been Exercised, irrespective of the date such Warrant Shares are credited to the Holder’s Depository Trust Company (“DTC”) account or the date of delivery of the certificates
evidencing such Warrant Shares, as the case may be; provided, however, that in the event of a Cashless Major Exercise in respect of a Qualified Change of Control Transaction, the Holder shall be deemed to have become the holder of record of the
shares issuable upon such exercise immediately prior to the consummation of such Qualified Change of Control Transaction. 
  

 2. 

 (c) Delivery of Common Stock Upon Exercise. Within three (3) Trading Days after any Date of
Exercise (or if the Holder requests the issuance of physical certificate(s) rather than through DTC credit, within two (2) Trading Days after receipt by the Company of the original Warrant), or in the case of a Cashless Major Exercise (as
defined in Section 5(c) below), within the period provided in Section 5(c)(iv), as applicable (the “Delivery Period”), the Company shall issue and deliver (or cause its Transfer Agent to issue and deliver) in accordance with the
terms hereof to or upon the order of the Holder that number of Exercise Shares or Cashless Major Shares (as defined below), as applicable, for the portion of this Warrant Exercised, as shall be determined in accordance herewith. Upon the Exercise of
this Warrant or any part hereof, the Company shall, at its own cost and expense, take all commercially reasonable actions, including obtaining and delivering an opinion of counsel, to assure that the Transfer Agent shall issue stock certificates in
the name of Holder (or its nominee) or such other persons as designated by Holder and in such denominations, each as specified in the Exercise Form, representing the number of Warrant Shares issuable upon such Exercise (“Exercise Shares”).
Notwithstanding the foregoing, the Company shall not be required to pay any tax or other charge imposed in connection with any transfer involved in the issuance of any certificate for Exercise Shares in any name other than that of the original
registered holder of this Warrant, and in such case the Company shall not be required to issue or deliver any stock certificate until such tax or other charge has been paid or it has been established to the Company’s satisfaction that no tax or
other charge is due. 
 (d) Delivery Failure. In addition to any other remedies which may be available to the Holder, in the event that
the Company fails for any reason to effect delivery of the Exercise Shares by the end of the Delivery Period (a “Delivery Failure”), the Holder will be entitled to revoke all or part of the relevant Exercise Form by delivery of a notice to
such effect to the Company not later than three (3) Trading Days after the end of the Delivery Period, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to the delivery of such notice,
including without limitation the return of the Warrant to the Holder and the return of certificates representing Exercise Shares to the Company. 

(e) Legends. 
 (i) Restrictive
Legend. The Holder understands that this Warrant shall bear a restrictive legend in substantially the form set forth on the first page of this Warrant (and a stop-transfer order may be placed against transfer of such securities). The Holder
further understands that until such time as the Exercise Shares have been registered under the Securities Act as contemplated by the Registration Rights Agreement, or otherwise may be sold pursuant to Rule 144 under the Securities Act or an
exemption from registration under the Securities Act without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Exercise Shares shall bear a restrictive legend in substantially the following
form (and a stop-transfer order may be placed against transfer of the certificates for such securities): 
 “THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SAID ACT INCLUDING, WITHOUT LIMITATION, PURSUANT TO RULES 144 OR 144A UNDER SAID ACT OR PURSUANT TO A PRIVATE SALE
EFFECTED UNDER APPLICABLE FORMAL OR INFORMAL SEC INTERPRETATION OR GUIDANCE, SUCH AS A SO-CALLED “4(1) AND A HALF” SALE”, SUBJECT TO DELIVERY OF AN OPINION, AS PROVIDED IN THE WARRANT, DATED AS OF
                    , 20    . 

“THE SALE, TRANSFER OR ASSIGNMENT OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF A
CERTAIN REGISTRATION RIGHTS AGREEMENT DATED AS OF JUNE     , 2010, AS AMENDED FROM TIME TO TIME, AMONG THE COMPANY AND CERTAIN HOLDERS OF ITS OUTSTANDING SECURITIES. COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN
REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY.” 
  

 3. 

 (ii) Removal of Restrictive Legends. The certificates evidencing the Exercise Shares shall not
contain any legend restricting the transfer thereof (including the legend set forth above in subsection 2(e)(i)): (A) while a registration statement (including a Registration Statement, as defined in the Registration Rights Agreement) covering
the resale of such security is effective under the Securities Act, or (B) following any sale of such Exercise Shares pursuant to Rule 144, or (C) if such Exercise Shares are eligible for sale under Rule 144(b)(1), or (D) if such
legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC) (collectively, the “Unrestricted Conditions”). If the Unrestricted Conditions
are satisfied, the Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after the Unrestricted Conditions are satisfied, if required and to the extent permitted by the Transfer Agent, to effect the issuance of the
Exercise Shares without a restrictive legend or removal of the legend hereunder. The Company agrees that, following the Effective Date, at such time as the Unrestricted Conditions are met or such legend is otherwise no longer required under this
Section 2(e), it will, no later than five (5) Trading Days following the delivery (the “Unlegended Shares Delivery Deadline”) by the Holder to the Company of a certificate representing Exercise Shares containing a restrictive
legend (such fifth Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to such Holder a certificate (or electronic transfer) representing such shares that is free from all restrictive and other legends. For purposes
hereof, “Effective Date” shall mean the date that the Registration Statement that the Company is required to file pursuant to the Registration Rights Agreement has been declared effective by the SEC. 

(iii) Sale of Unlegended Shares. Holder agrees that the removal of the restrictive legend from any certificates representing securities as set
forth in Section 2(e) above is predicated upon the Company’s reliance that the Holder will sell, transfer, assign, pledge, hypothecate or otherwise dispose of this Warrant or any Exercise Shares pursuant to either the registration
requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if such securities are sold pursuant to a Registration Statement, they will be sold in compliance with the plan of
distribution set forth therein. 
 (f) Cancellation of Warrant. This Warrant shall be canceled upon (i) expiration at the end of the
Term, (ii) the full Exercise of this Warrant (including any Cashless Major Exercise) or (iii) full redemption of this Warrant (including any Early Termination Upon Major Transaction). If this Warrant is not Exercised in full, Holder shall
be entitled to receive a new Warrant (containing terms identical to this Warrant) representing any unexercised portion of this Warrant. In the event of a Major Transaction (as defined below) in which all shares of Common Stock are canceled and/or
converted or exchanged into the right to receive cash and/or securities of Another Entity (as defined below), then, any portion of this Warrant that is neither (a) redeemed pursuant to an Early Termination Upon Major Transaction,
(b) assumed pursuant to Section 5(c)(ii) below or (c) Exercised (including any Cashless Major Exercise) pursuant to the terms of this Warrant prior to the closing of such Major Transaction, shall (A) automatically and immediately
be deemed to have been exercised pursuant to a Cashless Exercise, immediately prior to the consummation of such Major Transaction if the aggregate consideration to be received with respect to the Warrant Shares in such Major Transaction is greater
than the aggregate Exercise Price for such shares, or (B) be canceled and terminated without further action by the Holder or the Company upon consummation of such Major Transaction if the aggregate consideration to be received with respect to
the Warrant Shares in the Major Transaction is less than the aggregate Exercise Price for such shares. 
 (g) Delivery of Electronic
Shares. In lieu of delivering physical certificates representing the Exercise Shares or shares of Common Stock submitted for legend removal, provided the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
(“FAST”) program, upon written request of the Holder, the Company shall use commercially reasonable efforts to cause its Transfer Agent to electronically transmit such securities by crediting the account of the Holder’s prime broker
with DTC through its Deposit Withdrawal Agent Commission (DWAC) system. The time periods for delivery and penalties described herein shall apply to the electronic transmittals described herein. Any delivery not effected by electronic transmission
shall be effected by delivery of physical certificates. 
  

 4. 

 (h) Buy-In. In addition to any other rights available to the Holder, if the Company fails to cause
its Transfer Agent to transmit to the Holder a certificate or certificates, or electronic shares through DWAC, representing Exercise Shares on or before the end of the applicable Delivery Period (other than a failure caused by incorrect or
incomplete information provided by Holder to the Company hereunder), and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases shares
of Common Stock to deliver in satisfaction of a sale by the Holder of the Exercise Shares that the Company was required to deliver to the Holder in connection with such Exercise (a “Buy-In”), then the Company shall (1) pay in cash to
the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount (the “Sales Price”) obtained by multiplying
(A) the number of Exercise Shares that the Company was required to deliver to the Holder in connection with the Exercise at issue times (B) the price at which the sell order giving rise to such purchase obligation was executed, and
(2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Exercise Shares for which such Exercise was not timely honored or deliver to the Holder the Exercise Shares that would have been issued had
the Company timely complied with its Exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted Exercise to cover the sale of
Common Stock with an aggregate Sales Price of $10,000, under clause (1) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice, within three
(3) Trading Days after the occurrence of a Buy-In, indicating the amounts payable to the Holder in respect of such Buy-In, together with applicable confirmations and other evidence reasonably requested by the Company. Nothing herein shall limit
a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver
certificates representing Exercise Shares upon Exercise of the Warrant as required pursuant to the terms hereof; provided, however, that the Holder shall not be entitled to both (i) reinstate the portion of the Warrant and equivalent number of
Exercise Shares for which such Exercise was not timely honored and (ii) receive such Exercise Shares. 
 3. Payment of Warrant
Exercise Price for Cash Exercise or Cashless Exercise; Cashless Major Exercise. 
 (a) Exercise Price. The Exercise Price
(“Exercise Price”) shall initially equal $3.45 per share, as adjusted pursuant to the terms hereof, including but not limited to Section 5(a) and Section 5(b) below. 

Payment of the Exercise Price shall be made as follows: 

(i) Cash Exercise: The Holder may exercise this Warrant in cash, cashier’s check, wire transfer, or through a reduction of an amount of
principal outstanding under any Notes (as defined in the Facility Agreement) in accordance with Section 2.11 of the Facility Agreement, then held by the Holder, equal to the applicable Exercise Price (a “Cash Exercise”). 

(ii) Cashless Exercise: The Holder, at its option, may exercise this Warrant in a cashless exercise transaction pursuant to this subsection
(ii) (a “Cashless Exercise”). In order to effect a Cashless Exercise, the Holder shall surrender this Warrant at the principal office of the Company together with an Exercise Form, completed and executed, indicating Holders election
to effect a Cashless Exercise, in which event the Company shall issue Holder a number of shares of Common Stock computed using the following formula: 

X = Y (A-B)/A 
  

			
	where:	 	X = the number of shares of Common Stock to be issued to Holder.
		
		 	Y = the number of shares of Common Stock for which this Warrant is being Exercised.
		
		 	A = the Market Price of one (1) share of Common Stock (for purposes of this Section 3(a)(ii), where “Market Price,” means the Volume Weighted Average Price (as
defined herein) of one (1) share of the Company’s Common Stock during the ten (10) consecutive Trading Day period immediately preceding the Date of Exercise.
		
		 	B = the Exercise Price.

  

 5. 

 As used herein, the “Volume Weighted Average Price” for any security as of any
date means the volume weighted average sale price on The NASDAQ Global Market (“NASDAQ”) as reported by, or based upon data reported by, Bloomberg Financial Markets or an equivalent, reliable reporting service mutually acceptable to and
hereafter designated by holders of a majority in interest of the Warrants and the Company (“Bloomberg”) or, if NASDAQ is not the principal trading market for such security, the volume weighted average sale price of such security on the
principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or, if no volume weighted average sale price is reported for such security, then the last closing trade price of such security as
reported by Bloomberg, or, if no last closing trade price is reported for such security by Bloomberg, the average of the bid prices of any market makers for such security that are listed in the over the counter market by the Financial Industry
Regulatory Authority, Inc. or in the “pink sheets” by the Pink OTC Market, Inc. If the Volume Weighted Average Price cannot be calculated for such security on such date in the manner provided above, the volume weighted average price shall
be the fair market value as determined in good faith by the Company’s Board of Directors. “Trading Day” shall mean any day on which the Common Sock is traded for any period on NASDAQ, or on the principal securities exchange or other
securities market on which the Common Stock is then being traded. 
 For purposes of Rule 144 and sub-section (d)(3)(ii) thereof, it is
intended, understood and acknowledged that the Common Stock issued upon Exercise of this Warrant in a Cashless Exercise transaction shall be deemed to have been acquired at the time this Warrant was issued. Moreover, it is intended, understood and
acknowledged that the holding period for the Common Stock issued upon Exercise of this Warrant in a Cashless Exercise transaction shall be deemed to have commenced on the date this Warrant was issued. 

(b) Cashless Major Exercise: To the extent the Holder shall exercise this Warrant or any portion thereof as a Cashless Major Exercise pursuant to
Section 5(c)(i) below, the Holder shall surrender this Warrant, prior to the end of the Early Termination Period, at the principal office of the Company together with the Exercise Form, completed and executed, indicating that the Holder is
exercising this Warrant (or such portion thereof) pursuant to a Cashless Major Exercise, in which event the Company shall issue, when and as required pursuant to Section 5(c)(iv) below, a number of shares of Common Stock (the “Cashless
Major Shares”) equal to (i) the Black-Scholes Value (as defined in Section 5(c)(iii) below) of the remaining unexercised portion of this Warrant (or such applicable portion being exercised) divided by (ii) the greater of
(A) 95% of the closing price of the Common Stock on the principal securities exchange or other securities market on which the Common Stock is then traded determined as of the Trading Day immediately preceding the date on which the applicable
Major Transaction is consummated or (B) $3.28. 
 (c) [RESERVED] 

(d) Dispute Resolution. In the case of a dispute as to the determination of the closing price or the Volume Weighted Average Price of the
Company’s Common Stock or the arithmetic calculation of the Exercise Price, Market Price or any Major Transaction Warrant Early Termination Price, the Company shall submit the disputed determinations or arithmetic calculations via facsimile
within four (4) business days of receipt, or deemed receipt, of the Exercise Notice or Major Transaction Early Termination Notice, or other event giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are
unable to agree upon such determination or calculation within two (2) business days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two (2) business days submit via
facsimile (i) the disputed determination of the closing price or the Volume Weighted Average Price of the Company’s Common Stock to an independent, reputable investment bank selected by the Company and approved by the Holder, which
approval shall not be unreasonably withheld or delayed or (ii) the disputed arithmetic calculation of the Exercise Price, Market Price or any Major Transaction Warrant Early Termination Price to the Company’s independent, outside
accountant, or another accounting firm of national standing selected by the Company. The Company shall cause the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the
Holder of the results no later than the later of (i) five (5) business days from the time it receives the disputed determinations or calculations or (ii) five (5) business days from the selection of the investment bank and
accounting firm, as applicable. Such investment bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error. 

4. Transfer and Registration. 

(a) Transfer Rights. Subject to the provisions of Section 8 of this Warrant, this Warrant may be transferred on the books of the Company, in
whole or in part, in person or by attorney, upon surrender of this Warrant properly completed and endorsed. This Warrant shall be canceled upon such surrender and, as soon as practicable thereafter, the person to whom such transfer is made shall be
entitled to receive a new Warrant or Warrants as to the portion of this Warrant transferred, and Holder shall be entitled to receive a new Warrant as to any portion hereof retained. 

 

 6. 

 (b) Registrable Securities. The Common Stock issuable upon the Exercise of this Warrant are expected
to be registered under the Securities Act as contemplated by the Registration Rights Agreement. 
 5. Adjustments Upon Certain
Events. 
 (a) Participation. The Holder, as the holder of this Warrant, shall be entitled to receive such dividends paid and
distributions of any kind made to the holders of Common Stock of the Company to the same extent as if the Holder had Exercised this Warrant (without regard to any limitations on exercise herein or elsewhere and without regard to whether or not a
sufficient number of shares are authorized and reserved to effect any such exercise and issuance) and had held such shares of Common Stock on the record date for such dividends and distributions. Payments under the preceding sentence shall be made
concurrently with the dividend or distribution to the holders of Common Stock. 
 (b) Recapitalization or Reclassification; Consolidation,
Merger or Sale. If the Company shall at any time effect a stock split, payment of stock dividend, recapitalization, reclassification or other similar transaction of such character that the shares of Common Stock shall be changed into or become
exchangeable for a larger or smaller number of shares, then upon the effective date thereof, the number of shares of Common Stock which Holder shall be entitled to purchase upon Exercise of this Warrant shall be increased or decreased, as the case
may be, in direct proportion to the increase or decrease in the number of shares of Common Stock by reason of such stock split, payment of stock dividend, recapitalization, reclassification or similar transaction, and the Exercise Price shall be, in
the case of an increase in the number of shares, proportionally decreased and, in the case of decrease in the number of shares, proportionally increased. In addition, if any recapitalization, reclassification or reorganization of the share capital
of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its shares and/or assets or other transaction (including, without limitation, a sale of substantially all of its
assets followed by a liquidation) shall be effected in such a way that holders of shares of Common Stock shall be entitled to receive shares, securities or other assets or property (a “Change”), then, lawful and adequate provisions shall
be made by the Company whereby the Holder shall thereafter have the right to purchase and receive (in lieu of the shares of Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby) such
shares, securities or other assets or property as may be issued or payable with respect to or in exchange for the number of outstanding shares of Common Stock which such Holder would have been entitled to receive had such Holder exercised this
Warrant immediately prior to the consummation of such Change. The provisions of this Section 5(b) shall similarly apply to successive Changes. The Company shall give Holder the same notice it provides to holders of Common Stock of any
transaction or Change described in this Section 5(b). 
 (c) Rights Upon Major Transaction. 

(i) Major Transaction. In the event that a Major Transaction (as defined below) is consummated, then (1) in the case of a Cash-Out Major
Transaction, and in the case of a Mixed Major Transaction to the extent of the percentage of the cash consideration in the Mixed Major Transaction (determined in accordance with the definition of a Mixed Major Transaction below), the Holder, at its
option, may require the Company to redeem, effective immediately prior to the consummation of such Major Transaction, the Holder’s outstanding Warrants in accordance with Section 5(c)(iii) below and (2) in the case of all other Major
Transactions, and in the case of a Mixed Major Transaction to the extent of the percentage of the consideration represented by securities of a Successor Entity in the Mixed Major Transaction, the Holder shall have the right to exercise this Warrant,
effective immediately prior to the consummation of such Major Transaction, as a Cashless Major Exercise. Notwithstanding anything herein to the contrary, the Holder may elect to waive its rights under this Section 5(c) with respect to any Major
Transaction in which event none of the provisions contained in this Section 5(c) shall apply. 
 Consummation of each of the following
events shall constitute a “Major Transaction”: 
 (A) a consolidation, merger, exchange of shares, recapitalization, reorganization,
business combination or other similar event, following which the holders of Common Stock immediately preceding such consolidation, merger, exchange, recapitalization, reorganization, combination or event either (a) no longer hold a majority of
the shares of Common Stock or a majority of the voting power of the Successor Entity or (b) no longer have the ability to elect a majority of the board of directors of the Company or the Successor Entity (collectively, a “Change of Control
Transaction”); or 
  

 7. 

 (B) a purchase, tender or exchange offer (other than any purchase, tender or exchange offer made by the
Holder or its Affiliates) made to the holders of outstanding shares of Common Stock, such that following the consummation of such purchase, tender or exchange offer a Change of Control Transaction shall have occurred. 

(C) [RESERVED]. 
 (D) [RESERVED].

 (E) [RESERVED]. 
 (F)
[RESERVED]. 
 (ii) Assumption. In no event shall the Holder have the right to treat a Major Transaction as an Assumption unless
the Company has elected to treat such Major Transaction as an Assumption pursuant to this paragraph. In the event of a Qualified Major Transaction, the Company shall have the exclusive right, in its sole discretion, to cause such Qualified Major
Transaction (or the applicable portion of a Mixed Major Transaction) to be treated as an Assumption in accordance with this Section 5(c)(ii) with respect to the percentage of this Warrant then owned by the Holder equal to the percentage of the
consideration to be paid in the Major Transaction represented by the securities of a Successor Entity. If the Successor Entity is a Publicly Traded Successor Entity, the percentage of consideration represented by securities of such Successor Entity
shall be equal to the percentage that the value of the aggregate anticipated number of shares of the Publicly Traded Successor Entity to be issued to holders of Common Stock of the Company represents of the aggregate value of all consideration,
including cash consideration, in such Major Transaction, as such values are set forth in any definitive agreement for the Major Transaction that has been executed at the time of the first public announcement of the Major Transaction or, if no such
value is determinable from such definitive agreement, based on the closing price for shares of the Publicly Traded Successor Entity on its principal securities exchange on the Trading Day preceding the closing of the Major Transaction. If the
Successor Entity is a Private Successor Entity, the percentage of consideration represented by securities of such Successor Entity shall be determined in good-faith by the Company’s Board of Directors. Any election by the Company to treat this
Warrant as an Assumption pursuant to the terms hereof shall be made in the Major Transaction Notice (as defined in Section 5(c)(iii) below) in respect of such Qualified Major Transaction. The Company shall not enter into or be party to a Major
Transaction that is to be treated as an Assumption, unless the Successor Entity assumes in writing all of the obligations of the Company under this Warrant and the Registration Rights Agreement in accordance with the provisions of this Section
(ii), including agreements to deliver to each holder of Warrants in exchange for such Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the Warrants, including, without
limitation, representing the appropriate number of shares of the Successor Entity, having similar exercise rights as the Warrants (including but not limited to a similar Exercise Price and similar Exercise Price adjustment provisions based on the
price per share or conversion ratio to be received by the holders of Common Stock in the Major Transaction) and similar registration rights as provided by the Registration Rights Agreement. Upon the occurrence of any Major Transaction treated as an
Assumption hereunder, any Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Major Transaction, the provisions of this Warrant and the Registration Rights Agreement (or substantially similar
instruments, if applicable) referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the
same effect as if such Successor Entity had been named as the Company herein. Upon consummation of the Major Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise or redemption of this
Warrant at any time after the consummation of the Major Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) issuable upon the exercise of the Warrants prior to such Major Transaction, such shares
of common stock (or their equivalent) of the Successor Entity (based on the price per share or conversion ratio to be received by the holders of Common Stock in the Major Transaction), as adjusted in accordance with the provisions of this Warrant.
The provisions of this Section shall apply similarly and equally to successive Major Transactions and shall be applied without regard to any limitations on the exercise of this Warrant other than any applicable beneficial ownership limitations. Any
assumption of Company obligations under this paragraph shall be referred to herein as an “Assumption”. 
  

 8. 

 (iii) Notice; Major Transaction Early Termination Right; Notice of Cashless Major Exercise. At least
fifteen (15) days prior to the consummation of any Major Transaction, but, in any event, within two (2) Trading Days following the date of the public announcement of any Major Transaction, the Company shall deliver written notice thereof
via facsimile and overnight courier to the Holder (a “Major Transaction Notice”), which such Major Transaction Notice shall, if applicable, indicate whether the Company desires to have the Warrant treated as an Assumption in accordance
with the provisions of Section 5(c)(ii) above. Other than in respect of all or a portion of the Warrant that is to be treated as an Assumption or is eligible for a Cashless Major Exercise (without taking into consideration the 9.98% Cap) in
accordance with Section 5(c)(i), the Holder may, by delivery of written notice (“Major Transaction Early Termination Notice”) to the Company at any time during the period beginning after the Holder’s receipt of a Major
Transaction Notice and ending five (5) Trading Days prior to the consummation of such Major Transaction (the “Early Termination Period”), require the Company to redeem (an “Early Termination Upon Major Transaction”),
effective immediately prior to the consummation of such Major Transaction, all or any portion of this Warrant not treated as an Assumption or eligible to be exercised as a Cashless Major Exercise pursuant to Section 5(c)(i) above (without
taking into consideration the 9.98% Cap). The Major Transaction Early Termination Notice shall indicate the portion of the Warrant that the Holder is electing to have redeemed. Such portion of this Warrant (the “Redeemable Portion”) shall
be redeemed by the Company at a price (the “Major Transaction Warrant Early Termination Price”) payable in cash equal to the value of the Redeemable Portion determined by use of the Black Scholes Option Pricing Model using the criteria set
forth in Schedule 1 hereto (the “Black Scholes Value”). 
 To the extent the Holder shall elect to effect a Cashless Major
Exercise in respect of a Major Transaction, the Holder shall deliver its exercise notice in accordance with Section 3(b), within the Early Termination Period. 

(iv) Escrow; Payment of Major Transaction Warrant Early Termination Price. Following the receipt of a Major Transaction Early Termination Notice
or a notice of a Cashless Major Exercise from the Holder, the Company shall not effect a Major Transaction that is being treated as an Early Termination Upon Major Transaction or in connection with which this Warrant is eligible to be exercised as a
Cashless Major Exercise unless it either (a) obtains the written agreement of the Successor Entity that payment of the Major Transaction Warrant Early Termination Price and/or applicable Cashless Major Shares shall be made to the Holder upon
consummation of such Major Transaction or (b) it shall first place into an escrow account with an independent escrow agent, at least three (3) Trading Days prior to the closing date of such Major Transaction (the “Major Transaction
Escrow Deadline”), a number of shares of Common Stock or an amount in cash, as applicable, equal to the Major Transaction Warrant Early Termination Price and/or applicable Cashless Major Shares. If an escrow account is required to be
established pursuant to the preceding sentence, concurrently upon closing of such Major Transaction, the Company shall pay or shall instruct the escrow agent to pay the Major Transaction Warrant Early Termination Price and/or to deliver the
applicable Cashless Major Shares to the Holder. For purposes of determining the amount, if any, required to be placed in escrow pursuant to the provisions of this subsection (iv) and without affecting the amount of the actual Major Transaction
Warrant Early Termination Price and/or the number of applicable Cashless Major Shares, the calculation of the “Stock Price” referred to in Schedule 1 hereto shall be determined based on the Closing Market Price (as defined on Schedule
I) of the Common Stock on the Trading Day immediately preceding the date that the funds and/or applicable Cashless Major Shares, as applicable, are deposited with the escrow agent. 

Notwithstanding anything to the contrary in this Section 5, until the Major Transaction Warrant Early Termination Price is paid in full, this
Warrant may be exercised, in whole or in part, by the Holder. 
 For purposes hereof: 

“Another Entity” shall mean an entity in which the holders of a majority of the shares of Common Stock of the Company immediately prior to the
consummation of a Major Transaction do not hold a majority of the equity securities in such entity. 
 “Cash-Out Major Transaction”
means a Major Transaction in which the consideration payable to holders of Common Stock in connection with the Major Transaction consists solely of cash. 

“Cashless Major Exercise” shall mean an exercise of this Warrant or portion thereof as a “Cashless Major Exercise” in accordance with
Section 3(b) and 5(c)(i) hereof. 
  

 9. 

 “Eligible Market” means NASDAQ, the New York Stock Exchange, Inc., the NYSE Arca, the NASDAQ
Capital Market, the NASDAQ Global Select Market or the NYSE Alternext U.S. or any successor exchanges or markets thereof. 
 “Mixed Major
Transaction” means a Major Transaction in which the consideration payable to the stockholders of the Company consists partially of cash and partially of securities of a Successor Entity. If the Successor Entity is a Publicly Traded Successor
Entity, the percentage of consideration represented by securities of such Successor Entity shall be equal to the percentage that the value of the aggregate anticipated number of shares of the Publicly Traded Successor Entity to be issued to holders
of Common Stock of the Company represents in comparison to the aggregate value of all consideration, including cash consideration, in such Mixed Major Transaction, as such values are set forth in any definitive agreement for the Mixed Major
Transaction that has been executed at the time of the first public announcement of the Major Transaction, or, if no such value is determinable from such definitive agreement, based on the closing market price for shares of the Publicly Traded
Successor Entity on its principal securities exchange on the Trading Day immediately preceding the closing of the Mixed Major Transaction. If the Successor Entity is a Private Successor Entity, the percentage of consideration represented by
securities of such Successor Entity shall be determined in good-faith by the Company’s Board of Directors. 
 “Parent Entity” of
a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the
Person or Parent Entity with the largest public market capitalization as of the date of consummation of a Major Transaction. 

“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
organization, any other entity and a government or any department or agency thereof. 
 “Private Successor Entity” means a Successor
Entity that is not a Publicly Traded Successor Entity. 
 “Publicly Traded Successor Entity” means a Successor Entity that is a
publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible Market (as defined above). 
 “Qualified
Major Transaction” means a Major Transaction where (i) the consideration payable to holders of Common Stock in connection with the Major Transaction consists in whole or in part of securities of a Publicly Traded Successor Entity or
(ii) any non-cash portion of the consideration payable to holders of Common Stock in connection with the Major Transaction consists of securities of a Private Successor Entity, which such Private Successor Entity shall be approved of in writing
by the Holder. 
 “Successor Entity” means any Person purchasing the Company’s assets or Common Stock, or any successor entity
resulting from such Major Transaction, or if the Warrant is to be exercisable for shares of capital stock of its Parent Entity (as defined above), its Parent Entity. 

(d) Adjustments: Additional Shares, Securities or Assets. In the event that at any time, as a result of an adjustment made pursuant to this
Section 5 or otherwise, Holder shall, upon Exercise of this Warrant, become entitled to receive shares and/or other securities or assets (other than Common Stock) then, wherever appropriate, all references herein to Common Stock shall be deemed
to refer to and include such shares and/or other securities or assets; and thereafter the number of such shares and/or other securities or assets shall be subject to adjustment from time to time in a manner and upon terms as nearly equivalent as
practicable to the provisions of this Section 5. 
 (e) Notice of Adjustments. Whenever the Exercise Price is adjusted pursuant to
the terms of this Warrant, the Company shall promptly mail to the Holder a notice (an “Exercise Price Adjustment Notice”) setting forth the Exercise Price after such adjustment and setting forth a statement of the facts requiring such
adjustment. The Company shall, upon the written request at any time of the Holder, furnish to such Holder a like Warrant setting forth (i) such adjustment or readjustment, (ii) the Exercise Price at the time in effect and (iii) the
number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon Exercise of the Warrant. For purposes of clarification, whether or not the Company provides an Exercise Price
Adjustment Notice pursuant to this Section 5(e), upon the occurrence of any event that leads to an adjustment of the Exercise Price, the Holder would be entitled to receive a number of Exercise Shares based upon the new Exercise Price, as
adjusted, for exercises occurring on or after the date of such adjustment, regardless of whether the Holder accurately refers to the adjusted Exercise Price in the Exercise Form. 

 

 10. 

 6. Fractional Interests. 

No fractional shares or scrip representing fractional shares shall be issuable upon the Exercise of this Warrant, but on Exercise of this Warrant, Holder
may purchase only a whole number of shares of Common Stock. If, on Exercise of this Warrant, Holder would be entitled to a fractional share of Common Stock, such fractional share shall be disregarded and the Company shall calculate and pay to the
Holder an amount of cash in lieu of such fractional share, with such cash amount based on the Market Price (as defined in Section 3(a)(ii) above). If more than one Warrant shall be exercised concurrently by Holder, the number of whole shares
which shall be issuable upon exercise thereof shall be computed on the basis of the aggregate Warrants so exercised. 
 7.
Reservation of Shares. 
 From and after the date hereof, the Company shall at all times reserve for issuance such number of
authorized and unissued shares of Common Stock (or other securities substituted therefor as herein above provided) as shall be sufficient for the Exercise of this Warrant. If at any time the number of shares of Common Stock authorized and reserved
for issuance is below the number of shares sufficient to permit the Exercise of this Warrant (a “Share Authorization Failure”) (based on the Exercise Price in effect from time to time), the Company will promptly take all corporate action
reasonably necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize additional shares to meet the Company’s obligations under this Section 7,
and using commercially reasonable efforts to obtain stockholder approval of an increase in such authorized number of shares. The Company covenants and agrees that upon the Exercise of this Warrant, other than in the event of a Share Authorization
Failure, if any, all Exercise Shares shall be duly and validly issued, fully paid and nonassessable and not subject to preemptive rights, rights of first refusal or similar rights of any Person. 

8. Restrictions on Transfer. 

(a) Registration or Exemption Required. This Warrant has been issued in a transaction exempt from the registration requirements of the Securities
Act by virtue of Regulation D and exempt from state registration or qualification under applicable state laws. Neither the Warrant nor the Exercise Shares may be pledged, transferred, sold, assigned, hypothecated or otherwise disposed of except
pursuant to an effective registration statement covering the resale of such securities or an exemption to the registration requirements of the Securities Act and applicable state laws including, without limitation, a so-called “4(1) and a
half” transaction. 
 (b) Assignment. Subject to applicable securities laws and Section 8(a), the Holder may sell, transfer,
assign, pledge, or otherwise dispose of this Warrant, in whole or in part; provided that Holder may not sell, transfer, assign, pledge, or otherwise dispose of any portion of this Warrant with respect to less than the lesser of (x) two-hundred
thousand (200,000) Warrant Shares or (y) all remaining Warrant Shares underlying this Warrant. Holder shall deliver a written notice to Company, substantially in the form of the Assignment attached hereto as Exhibit B,
indicating the Person or Persons to whom the Warrant shall be assigned and the respective number of warrants to be assigned to each assignee. The Company shall effect the assignment within five (5) Trading Days (the “Transfer Delivery
Period”), and shall deliver to the assignee(s) designated by Holder a Warrant or Warrants of like tenor and terms for the appropriate number of shares. Subject to the foregoing, this Warrant and the rights evidenced hereby shall inure to the
benefit of and be binding upon the successors and assigns of the Holder. The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant, and shall be enforceable by any such Holder. For avoidance
of doubt, in the event Holder notifies the Company that such sale or transfer is a so called “4(1) and half” transaction, the parties hereto agree that a legal opinion from outside counsel for the Holder delivered to counsel for the
Company substantially in the form attached hereto as Exhibit C shall be the only requirement to satisfy an exemption from registration under the Securities Act to effectuate such “4(1) and half” transaction. 

 

 11. 

 9. Noncircumvention. 

The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any
reorganization, transfer of assets, consolidation, merger, scheme of arrangement, 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, and
will at all times in good faith carry out all the provisions of this Warrant and take all action as may be reasonably required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not
increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, and (ii) shall take all such actions as may be reasonably necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant. 
 10.
Events of Failure. 
 The occurrence of each of the following shall be considered to be an “Event of Failure.”

 (i) A Delivery Failure Default occurs, where a “Delivery Failure Default” shall be deemed to have occurred if the
Company fails to use its reasonable best efforts to deliver Exercise Shares to the Holder within any applicable Delivery Period (other than due to the limitation contained in the provisions contained in the second paragraph of Section 1);

 (ii) A Legend Removal Failure occurs, where a “Legend Removal Failure” shall be deemed to have occurred if the
Company fails to use its reasonable best efforts to issue Exercise Shares without a restrictive legend, or fails to use it reasonable best efforts to remove a restrictive legend, when and as required under Section 2(e) hereof; 

(iii) a Transfer Delivery Failure occurs, where a “Transfer Delivery Failure” shall be deemed to have occurred if the Company
fails to use its reasonable best efforts to deliver a Warrant within any applicable Transfer Delivery Period; and 
 (iv) a
Registration Failure (as defined below). 
 For purposes hereof, “Registration Failure” means that (A) the Company fails to use
its best efforts to file with the SEC on or before the Filing Deadline (as defined in the Registration Rights Agreement) any Registration Statement required to be filed pursuant to Section 2(a) of the Registration Rights Agreement, (B) the
Company fails to use commercially reasonable efforts to cause a Registration Statement to be declared effective by the SEC prior to the Registration Deadline (as defined in the Registration Rights Agreement), and if such Registration Statement is
not so filed prior to the Registration Deadline, as soon as possible thereafter, or fails to use commercially reasonable efforts to keep such Registration Statement current and effective as required in Section 3 of the Registration Rights
Agreement (subject to the Company’s right to delay or suspend effectiveness pursuant to Section 3(o) of the Registration Rights Agreement), (C) any Registration Statement required to be filed under the Registration Rights Agreement,
after its initial effectiveness and during the Registration Period (as defined in the Registration Rights Agreement), lapses in effect or sales of all of Registrable Securities (as defined in the Registration Rights Agreement) then outstanding
cannot otherwise be made thereunder (whether by reason of the Company’s failure to amend or supplement the prospectus included therein in accordance with the Registration Rights Agreement, the Company’s failure to file and use commercially
reasonable efforts to obtain effectiveness with the SEC of an additional Registration Statement or amended Registration Statement required pursuant to Sections 2(a)(ii) or 3(b) of the Registration Rights Agreement, as applicable, or otherwise)
for a period of time in excess of the Grace Period (as defined in the Registration Rights Agreement) provided that in each case, a Registration Failure shall be deemed to not have occurred if such Registration Failure results from a breach by
any holder of a Registrable Security of its obligations pursuant to Section 4 of the Registration Rights Agreement. 
  

 12. 

 11. Default. 

(a) Events Of Default. Each of the following events shall be considered to be an “Event of Default,” unless waived by the Holder:

 (i) Failure To Effect Registration. With respect to all Registration Failures, a Registration Failure occurs and remains uncured for a
period of more than forty-five (45) days (or sixty (60) days in the case where the Company (i) has, by the Filing Deadline (as defined the Registration Rights Agreement) filed a Registration Statement (as defined in the Registration
Rights Agreement) covering the number of shares required by the Registration Rights Agreement, and (ii) has responded in writing to any comments to the Registration Statement that the Company has received from the SEC, within ten
(10) Business Days of such receipt, and nevertheless the SEC has not declared effective the Registration Statement by the Registration Deadline (as defined in the Registration Rights Agreement), and such Registration Failure relates
solely to the Company’s failure to have the Registration Statement declared effective by the Registration Deadline (as defined in the Registration Rights Agreement)) after written notice thereof by Holder to the Company; provided that in
each case, a Registration Failure shall be deemed to not have occurred if such Registration Failure results from a breach by any holder of a Registrable Security of its obligations pursuant to Section 4 of the Registration Rights Agreement.

 (ii) Failure To Deliver Common Stock. Other than as provided in Section 13(a) below, a Delivery Failure (as defined above) occurs
and the Company fails for any reason to effect delivery of the applicable Exercise Shares for a period of more than twenty (20) days after written notice thereof by Holder to the Company; or at any time, the Company announces or states in
writing that it will not honor its obligations to issue shares of Common Stock to the Holder upon Exercise by the Holder of the Exercise rights of the Holder in accordance with the terms of this Warrant. 

(iii) Legend Removal Failure. A Legend Removal Failure (as defined above) occurs and remains uncured for a period of thirty (30) days after
written notice thereof by Holder to the Company; and 
 (iv) Corporate Existence; Major Transaction. (A) The Company has failed to
(x) either satisfy the requirements of Section 5(c)(iv)(a) above or place the Major Transaction Warrant Early Termination Price or the Cashless Major Shares, as the case may be, into escrow or (y) if an escrow account is required to
be established pursuant to Section 5(c)(iv), to instruct the escrow agent to release such amount or such shares, as the case may be, to the Holder pursuant to Section 5(c)(iv), or (B) with respect to a Major Transaction that is to be
treated as an Assumption under the terms hereof, the Company has failed to meet the Assumption requirements of Section 5(c)(ii). 
 (b)
[RESERVED] 
 (c) Remedies, Other Obligations, Breaches And Injunctive Relief. The remedies provided in this Warrant shall be
cumulative and in addition to all other remedies available under this Warrant, the Registration Rights Agreement and the Purchase Agreement, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing
herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. 

12. Holder’s Early Terminations. In the event that the Company does not deliver the applicable Major Transaction Warrant Early
Termination Price or the Exercise Shares in respect of a Cashless Major Exercise, as the case may be, to the Holder within the time period or as otherwise required pursuant to the terms hereof, or at any time thereafter, the Holder shall have the
option, upon notice to the Company, in lieu of early termination or Cashless Major Exercise, as the case may be, to require the Company to promptly return to the Holder all or any portion of this Warrant that was submitted for early termination or
exercise. Upon the Company’s receipt of such notice, (x) the applicable early termination or exercise, as the case may be, shall be null and void with respect to such applicable portion of this Warrant, (y) the Company shall
immediately return this Warrant, or issue a new Warrant to the Holder representing the portion of this Warrant that was submitted for early termination or exercise and (z) the Exercise Price of this Warrant or such new Warrant shall be adjusted
to the greater of (A) the Exercise Price as in effect on the date on which the applicable early termination or exercise notice, as the case may be, is voided and (B) $3.28.  

 

 13. 

 13. Limitation on Issuance of Common Stock. 

(a) Share Cap. Notwithstanding anything herein to the contrary, the maximum number of shares of Common Stock (i) issued or
issuable pursuant to this Warrant and all additional Warrants issued pursuant to the provisions of Section 2.15(a) of the Facility Agreement may not exceed 28,000,000 shares of Common Stock and (ii) issued or issuable pursuant to all
Warrants issued pursuant to the provisions of Section 2.15(b) of the Facility Agreement may not exceed 5,600,000 shares of Common Stock. 

(b) No Obligation to Net Cash Settle this Warrant. Notwithstanding anything to the contrary herein, in the event that the Company
is not permitted to issue shares of Common Stock to Holder pursuant to this Warrant because of the provisions of Section 13(a) above or because the Holder would acquire a number of shares of Common Stock such that, upon such acquisition, the
number of shares of Common Stock then beneficially owned by the Holder and its Affiliates and any other persons or entities whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of
the Exchange Act (including shares held by any “group” of which the Holder is a member, but excluding shares beneficially owned by virtue of the ownership of securities or rights to acquire securities that have limitations on the right to
convert, exercise or purchase similar to the limitation set forth herein) would exceed the 9.98% Cap (subject to the proviso to the 9.98% Cap set forth in the second paragraph of Section 1), the Company shall not be required to net cash settle
or otherwise make any cash payment to Holder (i) with respect to any related obligation hereunder or (ii) to settle this Warrant by virtue of such limitation. 

14. Benefits of this Warrant. 

Nothing in this Warrant shall be construed to confer upon any person other than the Company and Holder any legal or equitable right, remedy or claim
under this Warrant and this Warrant shall be for the sole and exclusive benefit of the Company and Holder. 
 15. Governing
Law. 
 All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, directors, officers, stockholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting
in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing
a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall commence an
action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution or defense of such action or proceeding. 
 16. Loss of Warrant. 

Upon receipt by the Company of evidence of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of
indemnity or security reasonably satisfactory to the Company, and upon surrender and cancellation of this Warrant, if mutilated, the Company shall execute and deliver a new Warrant of like tenor and date. 

 

 14. 

 17. Notice or Demands. 

Notices or demands pursuant to this Warrant to be given or made by Holder to or on the Company shall be sufficiently given or made if sent by certified
or registered mail, return receipt requested, postage prepaid or via overnight delivery with a nationally recognized courier service, and addressed, until another address is designated in writing by the Company, to the address set forth in
Section 2(a) above. Notices or demands pursuant to this Warrant to be given or made by the Company to or on Holder shall be sufficiently given or made if sent by certified or registered mail, return receipt requested, postage prepaid or via
overnight delivery with a nationally recognized courier service, and addressed, to the address of Holder set forth in the Company’s records, until another address is designated in writing by Holder. 

[Signature page follows] 
  

 15. 

 IN WITNESS WHEREOF, the undersigned has executed this Warrant as of the
                    day of     , 20    . 

 

			
	 ARENA PHARMACEUTICALS, INC.

		
	By:	 	  

		 	Print Name:
		 	Title:

  

 16. 

 EXHIBIT A 

EXERCISE FORM FOR WARRANT 

TO: ARENA PHARMACEUTICALS, INC. 

CHECK THE APPLICABLE BOX: 
  

			
	 ̈	  	 Cash Exercise
  

The undersigned hereby irrevocably exercises the attached warrant (the “Warrant”) with respect to
                     shares of Common Stock (the “Common Stock”) of ARENA PHARMACEUTICALS, INC., a Delaware corporation (the
“Company”), and tenders herewith payment of the Exercise Price in full, together with all applicable transfer taxes.
  

[IF APPLICABLE: The undersigned hereby encloses $             as payment of the Exercise
Price.]
  
 [IF APPLICABLE: The undersigned hereby agrees to cancel
$             of principal outstanding under Notes of the Company held by the Holder.]

		
	 ̈	  	 Cashless Exercise
  

The undersigned hereby irrevocably exercises the Warrant with respect to
                     shares of Common Stock of the Company, pursuant to the terms of the Cashless Exercise provisions set forth in
Section 3(a)(ii) of the attached Warrant, and tenders herewith payment of all applicable transfer taxes, if any.

		
	 ̈	  	 Cashless Major Exercise
  

The undersigned hereby irrevocably exercises the Warrant with respect to     % of the Warrant currently outstanding pursuant to a
Cashless Major Exercise in accordance with the terms of the Warrant.

		
	 ̈	  	[RESERVED]

 1. The undersigned requests that any
stock certificates for such shares be issued free of any restrictive legend, if appropriate, and a warrant representing any unexercised portion hereof be issued, pursuant to the Warrant in the name of the undersigned and delivered to the undersigned
at the address set forth below. The undersigned agrees not to sell, transfer, assign, pledge, hypothecate or otherwise dispose of any of the Common Stock obtained on Exercise of the Warrant, except in accordance with applicable securities laws and
the provisions of Section 8(a) of the Warrant. 
 2. The number of shares of Common Stock beneficially owned by the Holder and its
Affiliates (as defined in the Warrant) and any other persons or entities whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Securities Exchange Act of 1934 (the
“Exchange Act”) (including shares held by any “group” of which the Holder is a member, but excluding shares beneficially owned by virtue of the ownership of securities or rights to acquire securities that have limitations on the
right to convert, exercise or purchase similar to the limitation set forth herein) is                     . For purposes hereof,
“group” has the meaning set forth in Section 13(d) of the Exchange Act and applicable regulations of the Securities and Exchange Commission, and the number of shares beneficially owned has been determined in a manner consistent
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. 
 3. Capitalized terms used but not
otherwise defined in this Exercise Form shall have the meaning ascribed thereto in the Warrant. 

 4. In the event of any conflict between the term of this Exercise Form and any provisions of this Warrant,
the terms of the Warrant shall govern. 
 Dated:
                     
  

	
	  

	Signature
	
	  

	Print Name
	
	  

	Address

 NOTICE 

The signature to the foregoing Exercise Form must correspond to the name as written upon the face of the attached Warrant in every particular, without
alteration or enlargement or any change whatsoever. 

 EXHIBIT B 

ASSIGNMENT 
 (To
be executed by the registered holder 
 desiring to transfer the Warrant) 

FOR VALUE RECEIVED, the undersigned holder of the attached warrant (the “Warrant”) hereby sells, assigns and transfers unto the person or
persons below named the right to purchase                      shares of the Common Stock of ARENA PHARMACEUTICALS, INC., a Delaware
corporation, evidenced by the attached Warrant and does hereby irrevocably constitute and appoint                      attorney to transfer the said
Warrant on the books of the Company, with full power of substitution in the premises. 
  

					
	Dated:                     	 		  	  

		 		  	Signature

 Fill in for new registration of Warrant:

  

	
	  

	Name
	
	  

	Address
	
	  

	 Please print name and address of assignee

	 (including zip code number)

NOTICE 
 The signature to the foregoing
Assignment must correspond to the name as written upon the face of the attached Warrant in every particular, without alteration or enlargement or any change whatsoever. 

 EXHIBIT C 

FORM OF OPINION 

                    ,
20     

[                    ] 

 

	Re:	Arena Pharmaceuticals, Inc. (the “Company”) 

Dear Sir: 

[                    ]
(“[                    ]”) intends to transfer
                     Warrants (the “Warrants”) of the Company to
                    (“                    
”) without registration under the Securities Act of 1933, as amended (the “Securities Act”). In connection therewith, we have examined and relied upon the truth of representations contained in an Investor Representation Letter attached
hereto and have examined such other documents and issues of law as we have deemed relevant. 
 Based on and subject to the foregoing, we are of
the opinion that the transfer of the Warrants by                      to
                    may be effected without registration under the Securities Act, provided, however, that the Warrants to be transferred to
                    shall contain a legend restricting its transferability pursuant to the Securities Act and that transfer of the Warrants is
subject to a stop order. 
 The foregoing opinion is furnished only to
                     and may not be used, circulated, quoted or otherwise referred to or relied upon by you for any purposes other than the purpose
for which furnished or by any other person for any purpose, without our prior written consent. 
 Very truly yours, 

 [FORM OF INVESTOR REPRESENTATION LETTER] 

                    ,
20     

[                    ] 

Gentlemen: 

                    (“    
                ”) has agreed to purchase
                    Warrants (the “Warrants”) of Arena Pharmaceuticals, Inc. (the “Company”) from
[                    ]
(“[                    ]”). We understand that the Warrants are “restricted securities.” We represent and warrant that
                    is a sophisticated institutional investor that would qualify as an “Accredited Investor” as defined in Rule 501 of
Regulation D under the Securities Act of 1933, as amended (the “Securities Act”). 

                    represents and warrants as of the
date hereof as follows: 
 1. That it is acquiring the Warrants and the shares of common stock, $0.0001 par value per share
underlying such Warrants (the “Exercise Shares”) solely for its account for investment and not with a view to or for sale or distribution of said Warrants or Exercise Shares or any part thereof.
                    also represents that the entire legal and beneficial interests of the Warrants and Exercise Shares
                    is acquiring is being acquired for, and will be held for, its account only; 

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

3. That it understands and agrees that the Warrants and the Exercise Shares must be held indefinitely unless they are subsequently
registered under the Securities Act or an exemption from such registration is available.                     recognizes that the Company has no
obligation to register the Warrants, or to comply with any exemption from such registration; 
 4. That it understands and agrees
that neither the Warrants nor the Exercise Shares may be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met, including, among other things, the existence of a public market for the shares, the availability
of certain current public information about Company, the resale following the required holding period under Rule 144 and the number of shares being sold during any three month period not exceeding specified limitations; 

5. That it will not make any disposition of all or any part of the Warrants or Exercise Shares in any event unless and until: 

(i) There is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is
made in accordance with said registration statement; or 
 (ii)
                    shall have notified the Company of the proposed disposition and, in the case of a sale or transfer in a so called “4(1) and
a half” transaction, shall have furnished counsel to the Company with an opinion of its counsel, substantially in the form of Exhibit C to the Warrant. 

 We acknowledge that the Company will place stop orders with respect to the Warrants and the Exercise Shares,
and if a registration statement is not effective, the Exercise Shares shall bear the following restrictive legend: 
 “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SAID ACT INCLUDING, WITHOUT LIMITATION, PURSUANT TO RULES 144 OR 144A UNDER SAID ACT OR PURSUANT TO A
PRIVATE SALE EFFECTED UNDER APPLICABLE FORMAL OR INFORMAL SEC INTERPRETATION OR GUIDANCE, SUCH AS A SO-CALLED “4(1) AND A HALF” SALE”, SUBJECT TO DELIVERY OF AN OPINION, AS PROVIDED IN THE WARRANT, DATED AS OF
                    , 20    . 

“THE SALE, TRANSFER OR ASSIGNMENT OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF A
CERTAIN REGISTRATION RIGHTS AGREEMENT DATED AS OF                     , 20    , AS AMENDED FROM TIME TO TIME, AMONG THE COMPANY
AND CERTAIN HOLDERS OF ITS OUTSTANDING SECURITIES. COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY.” 

The undersigned agrees to notify the Company immediately of any development or occurrence which to the knowledge of the undersigned would render
inaccurate or incomplete any of the representations or agreements contained in this letter and will indemnify and hold harmless the Company from and against any and all loss, damage, claim, liability and expense arising out of or resulting from the
breach of any of the representations and agreements contained herein. 
 The Company and its counsel and transfer agent may rely on the
information contained herein. At any time and from time to time after the date hereof,                     shall, without further consideration,
execute and deliver to [                    ] or the Company such other instruments or documents and shall take such other actions as they may
reasonably request to carry out the transactions contemplated hereby. 
 Very truly yours, 

 Schedule 1 

Black-Scholes Value 
  

			
	Calculation Under Section 5(c)(iii)
		
	Remaining Term	  	Number of calendar days from date of consummation of the Major Transaction until the last date of the Term.
		
	Interest Rate	  	A risk-free interest rate corresponding to the US$ LIBOR/Swap rate on the Trading Day immediately preceding the date on which the applicable Major Transaction is consummated for a
period ending on the last date of the Term.
		
	Volatility	  	 The lesser of (A): 50%; or
  

(B) (i) If the first public announcement of the Major Transaction is made at or prior to 4:00 p.m., New York City time, the arithmetic mean of the
historical volatility for the 10, 30 and 50 Trading Day periods ending on the Trading Day immediately preceding such first public announcement, obtained from the HVT or similar function on Bloomberg; or

(ii) If the first public announcement of the Major Transaction is made after 4:00 p.m., New York City time, the arithmetic mean of the historical
volatility for the 10, 30 and 50 Trading Day periods ending on the date of such first public announcement, obtained from the HVT or similar function on Bloomberg.

		
	Stock Price	  	The greater of (1) the closing price of the Common Stock on NASDAQ, or, if that is not the principal trading market for the Common Stock, such principal market on which the
Common Stock is traded or listed (the “Closing Market Price”) on the trading day immediately preceding the date on which a Major Transaction is consummated, (2) the first Closing Market Price following the first public announcement of
a Major Transaction, or (3) the Volume Weighted Average Price as of the date immediately preceding the first public announcement of the Major Transaction.
		
	Dividends	  	Zero.
		
	Strike Price	  	Exercise Price as defined in section 3(a).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]