EX-4.2



 Exhibit 4.2 

CIDARA THERAPEUTICS, INC. 

SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT 







 CIDARA THERAPEUTICS, INC. 

SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT 

THIS SECOND AMENDED AND RESTATED INVESTOR
RIGHTS AGREEMENT (the “Agreement”) is entered into as of the 10th day of February, 2015, by and among CIDARA THERAPEUTICS,
INC., a Delaware corporation (formerly known as K2 Therapeutics, Inc.) (the “Company”), the investors listed on Exhibit A hereto (referred to hereinafter as
the “Investors” and each individually as an “Investor”), SEACHAID PHARMACEUTICALS, INC. (“Seachaid,” and also referred to as
an “Investor” for purposes of Section 2 (other than Section 2.2 or Section 2.4) and Section 3.1 and Section 5 only), and Comerica Bank (“Comerica,” and also referred to as an
“Investor” for purposes of Section 2 (other than Section 2.2 or Section 2.4) and Section 5 only). 

RECITALS 

WHEREAS, certain of the Investors are purchasing shares of the Company’s Series B Preferred Stock (the
“Series B Stock”), pursuant to that certain Series B Preferred Stock Purchase Agreement (the “Purchase Agreement”) of even date herewith (the
“Financing”); 
 WHEREAS, the obligations in the Purchase Agreement are conditioned upon the
execution and delivery of this Agreement; 
 WHEREAS, certain of the Investors (the “Prior
Investors”) are holders of the Company’s Series A Preferred Stock (the “Series A Stock”); 

WHEREAS, the Prior Investors and the Company are parties to an Amended and Restated Investor Rights Agreement dated
May 30, 2014, as amended on December 23, 2014 (the “Prior Agreement”); 
 WHEREAS,
the parties to the Prior Agreement desire to amend and restate the Prior Agreement and accept the rights and covenants hereof in lieu of their rights and covenants under the Prior Agreement; and 

WHEREAS, in connection with the consummation of the Financing, the Company and the Investors have agreed to the
registration rights, information rights, and other rights as set forth below. 
 NOW, THEREFORE, in
consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

SECTION 1. GENERAL. 
 1.1
Amendment and Restatement of Prior Agreement. The Prior Agreement is hereby amended in its entirety and restated herein. Such amendment and restatement is effective upon the execution of this Agreement by the Company and the requisite parties
thereto. Upon 

  
 1. 








 
such execution, all provisions of, rights granted and covenants made in the Prior Agreement are hereby waived, released and superseded in their entirety and shall have no further force or effect,
including, without limitation, all rights of first refusal and any notice period associated therewith otherwise applicable to the transactions contemplated by the Purchase Agreement. 

1.2 Definitions. As used in this Agreement the following terms shall have the following respective meanings: 

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

(b) “Form S-3” means such form under the Securities Act as in effect on the date hereof or any successor or
similar registration form under the Securities Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC. 

(c) “Holder” means any person owning of record Registrable Securities that have not been sold to the public or
any assignee of record of such Registrable Securities in accordance with Section 2.9 hereof. When used herein, “Holder” shall only refer to Seachaid or Comerica, respectively, when used in a section for which Seachaid’s or
Comerica’s shares of capital stock of the Company, respectively, are considered Registrable Securities, pursuant to 1.2(g) below. 

(d) “Initial Offering” means the Company’s first firm commitment underwritten public offering of its
Common Stock registered under the Securities Act. 
 (e) “Investment Fund” means any person that is a
partnership or limited liability company that holds the Shares for investment purposes. 
 (f) “Register,”
“registered,” and “registration” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of
such registration statement or document. 
 (g) “Registrable Securities” means (a) Common Stock of the
Company issuable or issued upon conversion of the Shares, (b) for purposes of Section 2 (other than Section 2.2 or Section 2.4) and Section 3.1 and Section 5 only, Common Stock of the Company issued to Seachaid,
pursuant to the Asset Purchase Agreement between Seachaid and the Company, dated May 30, 2014, (c) for the purposes of Section 2 (other than Section 2.2 or Section 2.4) and Section 5 only, Shares of the Company issuable
upon exercise of the Warrants (and Common Stock of the Company issuable or issued upon conversion of such Shares), and (d) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other
security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, such above-described securities. Notwithstanding the foregoing, Registrable Securities shall not include any securities
(i) sold by a person to the public either pursuant to a registration statement or Rule 144 or (ii) sold in a private transaction in which the transferor’s rights under Section 2 of this Agreement are not assigned. For avoidance
of doubt, the Warrants shall cease to be Registrable Securities upon exercise in full or the termination thereof. 

  
 2. 








 (h) “Registrable Securities then outstanding” shall
be the number of shares of the Company’s Common Stock that are Registrable Securities and either (a) are then issued and outstanding or (b) are issuable pursuant to then exercisable or convertible securities. 

(i) “Registration Expenses” shall mean all expenses incurred by the Company in complying with
Sections 2.2, 2.3 and 2.4 hereof, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, reasonable fees and disbursements, not to exceed $35,000, of a single
special counsel for the Holders, blue sky fees and expenses and the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the Company which shall be paid in any event
by the Company). 
 (j) “SEC” or “Commission” means the
Securities and Exchange Commission. 
 (k) “Securities Act” shall mean the
Securities Act of 1933, as amended. 
 (l) “Selling Expenses” shall mean all
underwriting discounts and selling commissions applicable to the sale. 
 (m)
“Shares” shall mean shares of the Company’s Preferred Stock held from time to time by the Investors listed on Exhibit A hereto and their permitted assigns. 

(n) “Special Registration Statement” shall mean (i) a registration statement relating to any
employee benefit plan or (ii) with respect to any corporate reorganization or transaction under Rule 145 of the Securities Act, any registration statements related to the issuance or resale of securities issued in such a transaction or
(iii) a registration related to stock issued upon conversion of debt securities. 
 (o)
“Warrant” shall mean any warrants which may be issued from time to time by the Company to Comerica to purchase Shares of the Company pursuant to that certain Loan and Security Agreement between Comerica and the Company,
dated on or about December 23, 2014. 
 SECTION 2. REGISTRATION; RESTRICTIONS ON TRANSFER. 

2.1 Restrictions on Transfer. 

(a) Each Holder agrees not to make any disposition of all or any portion of the Shares or Registrable Securities 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 such registration statement; or 
 (ii) (A) The transferee has agreed in writing to be bound by the
terms of this Agreement, (B) such Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances 

  
 3. 








 
surrounding the proposed disposition, and (C) if reasonably requested by the Company, such Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the
Company, that such disposition will not require registration of such shares under the Securities Act. It is agreed that the Company will not require opinions of counsel for transactions made pursuant to Rule 144, except in unusual circumstances.
After its Initial Offering, the Company will not require any transferee pursuant to Rule 144 to be bound by the terms of this Agreement if the shares so transferred do not remain Registrable Securities hereunder following such transfer. 

(b) Notwithstanding the provisions of subsection (a) above, no such restriction shall apply to a transfer by a Holder that is
(A) a partnership transferring to its partners or former partners in accordance with partnership interests, (B) an Investment Fund (or its trustee, custodian or nominee) to another Investment Fund (or its trustee, custodian or nominee)
managed or advised by the same manager or advisor or whose general partner is the same as the Investor, (C) a corporation transferring to a wholly-owned subsidiary or a parent corporation that owns all of the capital stock of the Holder,
(D) a limited liability company transferring to its members or former members in accordance with their interest in the limited liability company, or (E) an individual transferring to the Holder’s family member or trust for the benefit
of an individual Holder; provided that in each case the transferee will agree in writing to be subject to the terms of this Agreement to the same extent as if he were an original Holder hereunder. 

(c) Each certificate representing Shares or Registrable Securities shall be stamped or otherwise imprinted with legends substantially
similar to the following (in addition to any legend required under applicable state securities laws): 
 THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS
THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 
 THE
SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN INVESTOR RIGHTS AGREEMENT BY AND BETWEEN THE STOCKHOLDER AND THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE
OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY. 
 (d) The Company shall be obligated to reissue promptly unlegended
certificates at the request of any Holder thereof if the Company has completed its Initial Offering and the Holder shall have obtained an opinion of counsel (which counsel may be counsel to the 

  
 4. 








 
Company) reasonably acceptable to the Company to the effect that the securities proposed to be disposed of may lawfully be so disposed of without registration, qualification and legend, provided
that the second legend listed above shall be removed only at such time as the Holder of such certificate is no longer subject to any restrictions hereunder. 

(e) Any legend endorsed on an instrument pursuant to applicable state securities laws and the stop-transfer instructions with respect
to such securities shall be removed upon receipt by the Company of an order of the appropriate blue sky authority authorizing such removal. 

2.2 Demand Registration. 

(a) Subject to the conditions of this Section 2.2, if the Company shall receive a written request from
the Holders of at least thirty percent (30%) of the Registrable Securities (the “Initiating Holders”) that the Company file a registration statement under the Securities Act covering the registration of at least the
Minimum Amount (defined below) of the Registrable Securities then outstanding, then the Company shall, within thirty (30) days of the receipt thereof, give written notice of such request to all Holders, and subject to the limitations of this
Section 2.2, effect, as expeditiously as reasonably possible, the registration under the Securities Act of all Registrable Securities that all Holders request to be registered. “Minimum Amount” shall mean (i) with
respect to a registration effected pursuant to this Section 2.2 which constitutes the first registration of the Company’s securities, the greater of (x) the number of shares of Registrable Securities necessary such that the aggregate
offering price, net of underwriting discounts and commissions, is more than $20,000,000 or (y) twenty percent (20%) of the Registrable Securities held by the Initiating Holders and (ii) with respect to any registration effected
pursuant to this Section 2.2 that does not constitute the first registration of the Company’s securities, the number of shares of Registrable Securities necessary such that the aggregate offering price, net of underwriting discounts and
commissions, is more than $5,000,000. 
 (b) If the Initiating Holders intend to distribute the Registrable Securities
covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 2.2 or any request pursuant to Section 2.4 and the Company shall include such information in
the written notice referred to in Section 2.2(a) or Section 2.4(a), as applicable. In such event, the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation
in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall enter into an underwriting
agreement in customary form with the underwriter or underwriters selected for such underwriting by the Holders of a majority of the Registrable Securities held by all Initiating Holders (which underwriter or underwriters shall be reasonably
acceptable to the Company). Notwithstanding any other provision of this Section 2.2 or Section 2.4, if the underwriter advises the Company that marketing factors require a limitation of the number of securities to be underwritten
(including Registrable Securities) then the Company shall so advise all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares that may be included in the underwriting shall be allocated to
the Holders of such Registrable Securities on a pro rata basis based on the number 

  
 5. 








 
of Registrable Securities held by all such Holders (including the Initiating Holders). Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the
registration. 
 (c) The Company shall not be required to effect a registration pursuant to this Section 2.2: 

(i) prior to the earlier of (A) the third anniversary of the date of this Agreement or (B) the expiration of the six
(6) month period following the effectiveness of a registration statement filed by the Company under the Securities Act;  

(ii) after the Company has effected two (2) registrations pursuant to this Section 2.2, and such registrations have been
declared or ordered effective; 
 (iii) during the period starting with the date of filing of, and ending on the date one hundred
eighty (180) days following the effective date of the registration statement pertaining to a public offering, other than pursuant to a Special Registration Statement; provided that the Company makes reasonable good faith efforts to cause
such registration statement to become effective; 
 (iv) if within thirty (30) days of receipt of a written request from
Initiating Holders pursuant to Section 2.2(a), the Company gives notice to the Holders of the Company’s intention to file a registration statement for a public offering, other than pursuant to a Special Registration Statement within ninety
(90) days; 
 (v) if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 2.2 a
certificate signed by the Chairman of the Board stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such registration statement to be effected at
such time, in which event the Company shall have the right to defer such filing for a period of not more than one hundred (100) days after receipt of the request of the Initiating Holders; provided that such right to delay a request
shall be exercised by the Company not more than twice in any twelve (12) month period; 
 (vi) if the Initiating Holders
propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 2.4 below; or 

(vii) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent
to service of process in effecting such registration, qualification or compliance. 
 2.3 Piggyback Registrations. The Company shall
notify all Holders of Registrable Securities in writing at least fifteen (15) days prior to the filing of any registration statement under the Securities Act for purposes of a public offering of securities of the Company (including, but not
limited to, registration statements relating to secondary offerings of securities of the Company, but excluding Special Registration Statements) and will afford each such Holder an opportunity to include in such registration statement all or part of
such Registrable 

  
 6. 








 
Securities held by such Holder. Each Holder desiring to include in any such registration statement all or any part of the Registrable Securities held by it shall, within fifteen (15) days
after the above-described notice from the Company, so notify the Company in writing. Such notice shall state the intended method of disposition of the Registrable Securities by such Holder. If a Holder decides not to include all of its Registrable
Securities in any registration statement thereafter filed by the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be
filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein. 
 (a)
Underwriting. If the registration statement of which the Company gives notice under this Section 2.3 is for an underwritten offering, the Company shall so advise the Holders of Registrable Securities. In such event, the right of any such
Holder to include Registrable Securities in a registration pursuant to this Section 2.3 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting to the extent provided herein. All Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for
such underwriting by the Company. Notwithstanding any other provision of this Agreement, if the Company determines in good faith, based on consultation with the underwriter, that marketing factors require a limitation of the number of shares to be
underwritten, the number of shares that may be included in the underwriting shall be allocated, first, to the Company; second, to the Holders on a pro rata basis based on the total number of Registrable Securities held by the Holders; and
third, to any stockholder of the Company (other than a Holder) on a pro rata basis; provided, however, that no such reduction shall reduce the amount of securities of the selling Holders included in the registration below twenty-five
percent (25%) of the total amount of securities included in such registration, unless such offering is a Qualified IPO (as defined in the Company’s Second Amended and Restated Certificate of Incorporation, as the same may be amended from
time to time, the “Restated Certificate”) and such registration does not include shares of any other selling stockholders, in which event any or all of the Registrable Securities of the Holders may be excluded in accordance
with the immediately preceding clause. In no event will shares of any other selling stockholder be included in such registration that would reduce the number of shares which may be included by Holders without the written consent of the holders of at
least a majority of the Registrable Securities (the “Requisite Majority”). If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the
underwriter, delivered at least ten (10) business days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration. For
any Holder which is a partnership, limited liability company or corporation, the partners, retired partners, members, retired members and stockholders of such Holder, or the estates and family members of any such partners, retired partners, members
and retired members and any trusts for the benefit of any of the foregoing person shall be deemed to be a single “Holder,” and any pro rata reduction with respect to such “Holder” shall be based upon the
aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “Holder,” as defined in this sentence. 

  
 7. 








 (b) Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 2.3 whether or not any Holder has elected to include securities in such registration, and shall promptly notify any Holder that has elected to include shares in such registration of
such termination or withdrawal. The Registration Expenses of such withdrawn registration shall be borne by the Company in accordance with Section 2.5 hereof. 

2.4 Form S-3 Registration. In case the Company shall receive from any Holder or Holders of Registrable Securities a written request or
requests that the Company effect a registration on Form S-3 (or any successor to Form S-3) or any similar short-form registration statement and any related qualification or compliance with respect to all or a part of the Registrable
Securities owned by such Holder or Holders, the Company will: 
 (a) promptly give written notice of the proposed registration, and
any related qualification or compliance, to all other Holders of Registrable Securities; and 
 (b) as soon as practicable, effect
such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in
such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from
the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 2.4: 

(i) if Form S-3 is not available for such offering by the Holders, or 

(ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration,
propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public, net of underwriting discounts and commissions, of less than two million dollars ($2,000,000), or 

(iii) if within thirty (30) days of receipt of a written request from any Holder or Holders pursuant to this Section 2.4,
the Company gives notice to such Holder or Holders of the Company’s intention to make a public offering within ninety (90) days, other than pursuant to a Special Registration Statement; 

(iv) if the Company shall furnish to the Holders a certificate signed by the Chairman of the Board of Directors of the Company stating
that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such Form S-3 registration to be effected at such time, in which event the Company shall have
the right to defer the filing of the Form S-3 registration statement for a period of not more than one hundred (100) days after receipt of the request of the Holder or Holders under this Section 2.4; provided, that such right
to delay a request shall be exercised by the Company not more than twice in any twelve (12) month period, or 

  
 8. 








 (v) if the Company has, within the twelve (12) month period preceding the date of
such request, already effected two (2) registrations on Form S-3 for the Holders pursuant to this Section 2.4, or 

(vi) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent
to service of process in effecting such registration, qualification or compliance. 
 (c) Subject to the foregoing, the Company shall
file a Form S-3 registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the requests of the Holders. Registrations effected pursuant to this
Section 2.4 shall not be counted as demands for registration or registrations effected pursuant to Section 2.2. All Registration Expenses incurred in connection with registrations requested pursuant to this Section 2.4 after the first
two (2) registrations shall be paid by the selling Holders pro rata in proportion to the number of shares to be sold by each such Holder in any such registration. 

2.5 Expenses of Registration. Except as specifically provided herein, all Registration Expenses incurred in connection with any
registration, qualification or compliance pursuant to Section 2.2, 2.3 or 2.4 herein shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder, shall be borne by the holders of the securities so
registered pro rata on the basis of the number of shares so registered. The Company shall not, however, be required to pay for expenses of any registration proceeding begun pursuant to Section 2.2 or 2.4, the request of which has been
subsequently withdrawn by the Initiating Holders unless (a) the withdrawal is based upon material adverse information concerning the Company of which the Initiating Holders were not aware at the time of such request or (b) the Holders of a
majority of Registrable Securities agree to deem such registration to have been effected as of the date of such withdrawal for purposes of determining whether the Company shall be obligated pursuant to Section 2.2(c) or 2.4(b)(5), as
applicable, to undertake any subsequent registration, in which event such right shall be forfeited by all Holders). If the Holders are required to pay the Registration Expenses, such expenses shall be borne by the holders of securities (including
Registrable Securities) requesting such registration in proportion to the number of shares for which registration was requested. If the Company is required to pay the Registration Expenses of a withdrawn offering pursuant to clause (a) above,
then such registration shall not be deemed to have been effected for purposes of determining whether the Company shall be obligated pursuant to Section 2.2(c) or 2.4(b)(5), as applicable, to undertake any subsequent registration. 

2.6 Obligations of the Company. Whenever required to effect the registration of any Registrable Securities, the Company shall, as
expeditiously as reasonably possible: 
 (a) prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use all reasonable efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective
for up to thirty (30) days or, if earlier, until the Holder or Holders have completed the distribution related thereto; provided, however, that at any time, upon written notice to the participating Holders and for a period not to


  
 9. 








 
exceed one hundred (100) days thereafter (the “Suspension Period”), the Company may delay the filing or effectiveness of any registration statement or suspend the use
or effectiveness of any registration statement (and the Initiating Holders hereby agree not to offer or sell any Registrable Securities pursuant to such registration statement during the Suspension Period) if the Company reasonably believes that
there is or may be in existence material nonpublic information or events involving the Company, the failure of which to be disclosed in the prospectus included in the registration statement could result in a Violation (as defined below). In the
event that the Company shall exercise its right to delay or suspend the filing or effectiveness of a registration hereunder, the applicable time period during which the registration statement is to remain effective shall be extended by a period of
time equal to the duration of the Suspension Period. The Company may extend the Suspension Period for an additional consecutive sixty (60) days with the consent of the holders of a majority of the Registrable Securities registered under the
applicable registration statement, which consent shall not be unreasonably withheld. No more than two (2) such Suspension Periods shall occur in any twelve (12) month period. If so directed by the Company, all Holders registering shares
under such registration statement shall (i) not offer to sell any Registrable Securities pursuant to the registration statement during the period in which the delay or suspension is in effect after receiving notice of such delay or suspension;
and (ii) use their best efforts to deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holders’ possession, of the prospectus relating to such Registrable Securities current at
the time of receipt of such notice. Notwithstanding the foregoing, the Company shall not be required to file, cause to become effective or maintain the effectiveness of any registration statement other than a registration statement on Form S-3 that
contemplates a distribution of securities on a delayed or continuous basis pursuant to Rule 415 under the Securities Act. 
 (b)
Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by such registration statement for the period set forth in subsection (a) above. 

(c) Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them. 

(d) Use its reasonable efforts to register and qualify the securities covered by such registration statement under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such states or jurisdictions. 
 (e) In the event of any underwritten public offering,
enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations
under such an agreement. 

  
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 (f) Notify each Holder of Registrable Securities covered by such registration statement at
any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such 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 in the light of the circumstances then existing. The Company will use reasonable efforts to amend
or supplement such prospectus in order to cause such prospectus not to include 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 in the
light of the circumstances then existing. 
 (g) Use its reasonable efforts to furnish, on the date that such Registrable Securities
are delivered to the underwriters for sale, if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as
is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and (ii) a letter, dated as of such date, from the independent certified public accountants of the Company, in form and substance as
is customarily given by independent certified public accountants to underwriters in an underwritten public offering addressed to the underwriters. 

2.7 Delay of Registration; Furnishing Information. 

(a) No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the
result of any controversy that might arise with respect to the interpretation or implementation of this Section 2. 
 (b) It
shall be a condition precedent to the obligations of the Company to take any action pursuant to Section 2.2, 2.3 or 2.4 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held
by them and the intended method of disposition of such securities as shall be required to effect the registration of their Registrable Securities. 

(c) The Company shall have no obligation with respect to any registration requested pursuant to Section 2.2 or Section 2.4 if
the number of shares or the anticipated aggregate offering price of the Registrable Securities to be included in the registration does not equal or exceed the number of shares or the anticipated aggregate offering price required to originally
trigger the Company’s obligation to initiate such registration as specified in Section 2.2 or Section 2.4, whichever is applicable. 

2.8 Indemnification. In the event any Registrable Securities are included in a registration statement under Sections 2.2, 2.3 or
2.4: 
 (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners, members, officers
and directors of each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses,
claims, damages, or liabilities (joint or several) to which they may 

  
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become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any of the following statements, omissions or violations (collectively a “Violation”) by the Company: (i) any untrue statement or alleged untrue statement of a material fact contained in such
registration statement or incorporated reference therein, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material
fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or
regulation promulgated under the Securities Act, the Exchange Act or any state securities law in connection with the offering covered by such registration statement; and the Company will reimburse each such Holder, partner, member, officer,
director, underwriter or controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided however, that the indemnity
agreement contained in this Section 2.8(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be
unreasonably withheld, nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with
written information furnished expressly for use in connection with such registration by such Holder, partner, member, officer, director, underwriter or controlling person of such Holder. 

(b) To the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as
to which such registration qualifications or compliance is being effected, indemnify and hold harmless the Company, each of its directors, its officers and each person, if any, who controls the Company within the meaning of the Securities Act, any
underwriter and any other Holder selling securities under such registration statement or any of such other Holder’s partners, directors or officers or any person who controls such Holder, against any losses, claims, damages or liabilities
(joint or several) to which the Company or any such director, officer, controlling person, underwriter or other such Holder, or partner, director, officer or controlling person of such other Holder may become subject under the Securities Act, the
Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any of the following statements: (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement or incorporated reference therein, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act (collectively, a
“Holder Violation”), in each case to the extent (and only to the extent) that such Holder Violation occurs in reliance upon and in conformity with written information furnished by such Holder under an instrument duly executed
by such Holder and stated to be specifically for use in connection with such registration; and each such Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, controlling person,
underwriter or other Holder, or partner, officer, director or controlling person of such other Holder in connection with investigating or defending any such loss, claim, damage, liability or action if it is judicially


  
 12. 








 
determined that there was such a Holder Violation; provided, however, that the indemnity agreement contained in this Section 2.8(b) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided further, that in no event shall any indemnity under this
Section 2.8 exceed the net proceeds from the offering received by such Holder. 
 (c) Promptly after receipt by an
indemnified party under this Section 2.8 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this
Section 2.8, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses
thereof to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any
other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the
indemnified party under this Section 2.8 to the extent, and only to the extent, prejudicial to its ability to defend such action, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that
it may have to any indemnified party otherwise than under this Section 2.8. 
 (d) If the indemnification provided for in this
Section 2.8 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified
party thereunder, shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative
fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) or Holder Violation(s) that resulted in such loss, claim, damage or liability, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to
state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission;
provided, that in no event shall any contribution by a Holder hereunder exceed the net proceeds from the offering received by such Holder. 

(e) The obligations of the Company and Holders under this Section 2.8 shall survive completion of any offering of Registrable
Securities in a registration statement and, with respect to liability arising from an offering to which this Section 2.8 would apply that is covered by a registration filed before termination of this Agreement, such termination. No indemnifying
party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. 

  
 13. 








 2.9 Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Section 2 may be assigned by a Holder to a transferee or assignee of Registrable Securities (for so long as such shares remain Registrable Securities) that (a) is a subsidiary, parent, general
partner, limited partner, retired partner, member or retired member, or affiliate of a Holder that is a corporation, partnership or limited liability company, (b) is a Holder’s family member or trust for the benefit of an individual
Holder, (c) acquires at least twenty percent (20%) of such Investor’s Registrable Securities held as of the date hereof, or (d) is an entity affiliated by common control (or other related entity) with such Holder; provided,
however, (i) the transferor shall, within ten (10) days after such transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights
are being assigned and (ii) such transferee shall agree to be subject to all restrictions set forth in this Agreement. 
 2.10
Limitation on Subsequent Registration Rights. Other than as provided in Section 5.10, after the date of this Agreement, the Company shall not enter into any agreement with any holder or prospective holder of any securities of the Company
that would grant such holder rights to demand the registration of shares of the Company’s capital stock, or to include such shares in a registration statement that would reduce the number of shares includable by the Holders, in each case,
without the consent of Requisite Majority. 
 2.11 Market Stand-Off Agreement. Each Holder hereby agrees that such Holder shall not
sell, dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any shares of Common Stock (or other securities) of the Company held
by such Holder immediately before the effective date of the registration statement for such offering (other than those included in the registration) during the 180-day period following the effective date of the Initial Offering (or such longer
period as the underwriters or the Company shall request in order to facilitate compliance with NASD Rule 2711 or NYSE Member Rule 472 or any successor or similar rule or regulation); provided, that all officers and directors of the Company
and all stockholders individually owning more than one percent (1%) of the Company’s outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding Preferred Stock) are bound by and have entered into
substantially the same agreement regarding the subject matter of this Section 2.11. Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all
Holders subject to such agreements, based on the number of shares subject to such agreements. 
 2.12 Agreement to Furnish
Information. Each Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the managing underwriters that are consistent with the Holder’s obligations under Section 2.11 or that are
necessary to give further effect thereto. In addition, if requested by the Company or the representative of the underwriters of Common Stock (or other securities) of the Company, each Holder shall provide, within ten (10) days of such request,
such information as may be required by the Company or such representative in connection with the completion of any public offering of the Company’s securities pursuant to a registration statement filed under the Securities Act.


  
 14. 








 
The obligations described in Section 2.11 and this Section 2.12 shall not apply to a Special Registration Statement. In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to such shares of Common Stock (or other securities) until the end of such period. Each Holder agrees that any transferee of any shares of Registrable Securities shall be bound by Sections 2.11 and 2.12.
The underwriters of the Company’s stock are intended third party beneficiaries of Sections 2.11 and 2.12 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 

2.13 Rule 144 Reporting. With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which
may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its best efforts to: 

(a) Make and keep public information available, as those terms are understood and defined in SEC Rule 144 or any similar or
analogous rule promulgated under the Securities Act, at all times after the effective date of the first registration filed by the Company for an offering of its securities to the general public; 

(b) File with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act; and 

(c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon request: a written statement by the
Company as to its compliance with the reporting requirements of said Rule 144 of the Securities Act, and of the Exchange Act (at any time after it has become subject to such reporting requirements); a copy of the most recent annual or quarterly
report of the Company filed with the Commission; and such other reports and documents as a Holder may reasonably request in connection with availing itself of any rule or regulation of the SEC allowing it to sell any such securities without
registration. 
 2.14 Termination of Registration Rights. The right of any Holder to request registration or inclusion of Registrable
Securities in any registration pursuant to Section 2.2, Section 2.3, or Section 2.4 hereof shall terminate upon the earlier of: (i) the date three (3) years following a Qualified IPO; (ii) the date of an Acquisition (as
defined in the Restated Certificate); (iii) such time as such Holder holds less than 1% of the Company’s outstanding Common Stock (treating all shares of Preferred Stock on an as converted basis); or (iv) the date after the Initial
Offering on which Registrable Securities issuable or issued upon conversion of the Shares to such Holder may be sold by such Holder pursuant to Rule 144 during any ninety (90) day period. Upon such termination, such shares shall cease to be
“Registrable Securities” hereunder for all purposes. 
 SECTION 3. COVENANTS OF THE COMPANY. 

3.1 Basic Financial Information and Reporting. 

(a) The Company will maintain true books and records of account in which full and correct entries will be made of all its business
transactions pursuant to a system of accounting established and administered in accordance with generally accepted accounting principles consistently applied (except as noted therein or as disclosed to the recipients thereof), and will set aside on
its books all such proper accruals and reserves as shall be required under generally accepted accounting principles consistently applied. 

  
 15. 








 (b) For so long as at least 18,300,000 shares of Series A Stock remain outstanding (as
adjusted for any stock dividends, combinations, splits, recapitalizations and the like), as soon as practicable after the end of each fiscal year of the Company, and in any event within one hundred twenty (120) days thereafter, the Company will
furnish each Major Investor (as defined below) a balance sheet of the Company, as at the end of such fiscal year, and a statement of income and a statement of cash flows of the Company, for such year, all prepared in accordance with generally
accepted accounting principles consistently applied (except as noted therein or as disclosed to the recipients thereof) and setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail. Such
financial statements shall be accompanied by a report and opinion thereon by independent public accountants selected by the Company’s Board of Directors; provided that, the requirement to provide audited financial statements of the
Company for the fiscal year ending December 31, 2014 may be waived by the Requisite Majority. 
 (c) For so long as at least
18,300,000 shares of Series A Stock remain outstanding (as adjusted for any stock dividends, combinations, splits, recapitalizations and the like), the Company will furnish each Major Investor, as soon as practicable after the end of the first,
second and third quarterly accounting periods in each fiscal year of the Company, and in any event within thirty (30) days thereafter, a balance sheet of the Company as of the end of each such quarterly period, and a statement of income and a
statement of cash flows of the Company for such period and for the current fiscal year to date, prepared in accordance with generally accepted accounting principles consistently applied (except as noted therein or as disclosed to the recipients
thereof), with the exception that no notes need be attached to such statements and year-end audit adjustments may not have been made. 

(d) So long as an Investor (with its affiliates) shall own not less than 4,000,000 Registrable Securities (as adjusted for any stock
dividends, combinations, splits, recapitalizations and the like) (a “Major Investor”), and for so long as at least 18,300,000 shares of Series A Stock remain outstanding (as adjusted for any stock dividends, combinations,
splits, recapitalizations and the like), the Company will furnish each such Major Investor: (i) at least thirty (30) days prior to the beginning of each fiscal year an annual budget and operating plans for such fiscal year (and as soon as
available, any subsequent written revisions thereto); (ii) at least thirty (30) days following the each of end fiscal year a reporting setting forth a list of all equity and debt holders of the Company; and (iii) as soon as
practicable after the end of each month, and in any event within thirty (30) days thereafter, a balance sheet of the Company as of the end of each such month, and a statement of income and a statement of cash flows of the Company for such month
and for the current fiscal year to date, including a comparison to plan figures for such period, prepared in accordance with generally accepted accounting principles consistently applied (except as noted thereon), with the exception that no notes
need be attached to such statements and year-end audit adjustments may not have been made. 
 3.2 Inspection Rights. Each Major
Investor shall have the right to visit and inspect any of the properties of the Company or any of its subsidiaries, and to discuss the affairs, finances and accounts of the Company or any of its subsidiaries with its officers, and to review


  
 16. 








 
such information as is reasonably requested all at such reasonable times and as often as may be reasonably requested; provided, however, that the Company shall not be obligated under this
Section 3.2 with respect to a competitor of the Company or with respect to information which the Board of Directors determines in good faith is confidential or attorney-client privileged and should not, therefore, be disclosed. 

3.3 Confidentiality of Records. Each Investor agrees to use the same degree of care as such Investor uses to protect its own
confidential information to keep confidential any information furnished to such Investor pursuant to Sections 3.1 and 3.2 hereof that the Company identifies as being confidential or proprietary (so long as such information is not in the public
domain), except that such Investor may disclose such proprietary or confidential information (i) to any partner, subsidiary or parent of such Investor as long as such partner, subsidiary or parent is advised of and agrees or has agreed to be
bound by the confidentiality provisions of this Section 3.3 or comparable restrictions; (ii) at such time as it enters the public domain through no fault of such Investor; (iii) that is communicated to it free of any obligation of
confidentiality; (iv) that is developed by Investor or its agents independently of and without reference to any confidential information communicated by the Company; or (v) as required by applicable law. 

3.4 Reservation of Common Stock. The Company will at all times reserve and keep available, solely for issuance and delivery upon the
conversion of the Preferred Stock, all Common Stock issuable from time to time upon such conversion. 
 3.5 Stock Vesting. Unless
otherwise approved by the Board of Directors, all stock options and other stock equivalents issued after the date of this Agreement to employees, directors, consultants and other service providers shall be subject to vesting as follows:
(a) twenty-five percent (25%) of such stock shall vest at the end of the first year following the earlier of the date of issuance or such person’s services commencement date with the Company, and (b) seventy-five percent
(75%) of such stock shall vest monthly over the remaining three (3) years. Unvested shares acquired or options issued under a stock purchase plan or stock option plan, shall with respect to unvested options, automatically terminate, and
with respect to unvested shares, be subject to repurchase by the Company upon termination of employment; provided that such repurchase shall be at the lower of (i) the purchase price paid for such unvested shares or (ii) the fair
market value of such unvested shares. In addition, no shares shall be permitted to be transferred prior to the vesting thereof. 
 3.6
Key Person Insurance. Subject to the approval of the Board of Directors, the Company will use its best efforts to obtain and maintain in full force and effect term life insurance in an amount satisfactory to the Board on the life of Jeff Stein
naming the Company as beneficiary. 
 3.7 Director Expense Reimbursement. The Company shall promptly reimburse each non-employee
director of the Company for all of his or her reasonable and actual out-of-pocket expenses (including travel expenses) incurred in attending each meeting of the Board of Directors or a committee thereof or otherwise incurred in the course of
performing his or her duties as a director of the Company, subject at all times to the Company’s standard travel and reimbursement policies. 

  
 17. 








 3.8 Board Committee Composition. The members of each committee of the Board of Directors
currently in existence or that shall be constituted after the date hereof, shall be comprised of at least one Series Preferred Director (as defined below), unless such composition is otherwise approved by the Requisite Majority. 

3.9 Director and Officer Insurance. The Company will use its best efforts to obtain and maintain in full force and effect director and
officer liability insurance with a carrier and in an amount satisfactory to the Board. 
 3.10 Board Meeting Frequency. The Board of
Directors shall meet at least once every quarter, unless otherwise agreed by a vote of the majority of directors then-serving, including a majority of the Series Preferred Directors. 

3.11 Proprietary Information and Inventions Agreement. The Company shall require all employees and consultants to execute and deliver a
Proprietary Information and Inventions Agreement substantially in a form approved by the Company’s counsel and the Board of Directors. 

3.12 Assignment of Right of First Refusal. In the event the Company elects not to exercise any right of first refusal or right of first
offer the Company may have on a proposed transfer of any of the Company’s outstanding capital stock pursuant to the Company’s charter documents, by contract or otherwise, the Company shall, to the extent it may do so, assign such right of
first refusal or right of first offer to each Investor. In the event of such assignment, each Investor shall have a right to purchase its pro rata portion of the capital stock proposed to be transferred. Each Investor’s pro rata portion
shall be equal to the product obtained by multiplying (i) the aggregate number of shares proposed to be transferred by (ii) a fraction, the numerator of which is the number of shares of Registrable Securities and other rights to acquire
shares of Common Stock held by such Investor at the time of the proposed transfer, and the denominator of which is the total number of shares of Registrable Securities and other rights to acquire shares of Common Stock held by the Investors at the
time of the proposed transfer. 
 3.13 Directors’ Liability and Indemnification. The Company’s Certificate of Incorporation
and Bylaws shall provide (a) for elimination of the liability of director to the maximum extent permitted by law and (b) for indemnification of directors for acts on behalf of the Company to the maximum extent permitted by law. In
addition, the Company shall enter into and use its best efforts to at all times maintain indemnification agreements with each of its directors to indemnify such directors to the maximum extent permissible under applicable law. In event the Company
merges with another entity and is not the surviving corporation, or transfers all of its assets to another entity, the Company shall make proper provisions to ensure that the successors to the Company’s interests shall assume the Company’s
obligations under this Section 3.11. 
 3.14 Termination of Covenants. All covenants of the Company contained in Section 3 of
this Agreement (other than the provisions of Sections 3.3, 3.9 and 3.13) shall expire and terminate as to each Investor upon the earlier of (i) the effective date of a Qualified IPO or (ii) upon an Acquisition. 

  
 18. 








 SECTION 4. RIGHTS OF FIRST REFUSAL. 

4.1 Subsequent Offerings. Subject to applicable securities laws, each Investor shall have a right of first refusal to purchase its
pro rata share of all Equity Securities, as defined below, that the Company may, from time to time, propose to sell and issue after the date of this Agreement, other than the Equity Securities excluded by Section 4.6 hereof. Each
Investor’s pro rata share is equal to the ratio of (a) the number of shares of the Company’s Common Stock (including all shares of Common Stock issuable or issued upon conversion of the Shares or upon the exercise of
outstanding warrants or options) of which such Investor is deemed to be a beneficial owner of immediately prior to the issuance of such Equity Securities to (b) the total number of shares of the Company’s outstanding Common Stock
(including all shares of Common Stock issued or issuable upon conversion of the Shares or upon the exercise of any outstanding warrants or options) immediately prior to the issuance of the Equity Securities. The term “Equity
Securities” shall mean (i) any Common Stock, Preferred Stock or other security of the Company, (ii) any security convertible into or exercisable or exchangeable for, with or without consideration, any Common Stock, Preferred
Stock or other security (including any option to purchase such a convertible security), (iii) any security carrying any warrant or right to subscribe to or purchase any Common Stock, Preferred Stock or other security or (iv) any such
warrant or right. 
 4.2 Exercise of Rights. If the Company proposes to issue any Equity Securities, it shall give each Investor
written notice of its intention, describing the Equity Securities, the price and the terms and conditions upon which the Company proposes to issue the same. Each Investor shall have fifteen (15) days from the giving of such notice to agree to
purchase its pro rata share of the Equity Securities for the price and upon the terms and conditions specified in the notice by giving written notice to the Company and stating therein the quantity of Equity Securities to be purchased.
Notwithstanding the foregoing, the Company shall not be required to offer or sell such Equity Securities to any Investor who would cause the Company to be in violation of applicable federal securities laws by virtue of such offer or sale. 

4.3 Issuance of Equity Securities to Other Persons. The Company shall have ninety (90) days thereafter to sell the Equity
Securities in respect of which the Investor’s rights were not exercised, at a price not lower and upon general terms and conditions not materially more favorable to the purchasers thereof than specified in the Company’s notice to the
Investors pursuant to Section 4.2 hereof. If the Company has not sold such Equity Securities within ninety (90) days of the notice provided pursuant to Section 4.2, the Company shall not thereafter issue or sell any Equity Securities,
without first offering such securities to the Investors in the manner provided above. 
 4.4 Termination and Waiver of Rights of First
Refusal. The rights of first refusal established by this Section 4 shall not apply to, and shall terminate upon the earlier of (i) the effective date of a Qualified IPO or (ii) an Acquisition. Notwithstanding Section 5.5
hereof, the rights of first refusal established by this Section 4 may be amended, or any provision waived with and only with the written consent of the Company and the Investors holding a majority of the Registrable Securities held by all
Investors, or as permitted by Section 5.5; provided, however that the rights of first refusal established by this Section 4 may not be amended, or any provision waived, (a) with respect to any Investor that is a holder of
Series B Stock, without the 

  
 19. 








 
written consent of the Investors holding a majority of the outstanding shares of Series B Stock or (b) with respect to any Investor that is a holder of Series A Stock, without the written
consent of the Investors holding a majority of the outstanding shares of Series A Stock. 
 4.5 Assignment of Rights of First Refusal.
The rights of first refusal of each Investor under this Section 4 may be assigned to the same parties, subject to the same restrictions as any transfer of registration rights pursuant to Section 2.9. 

4.6 Excluded Securities. The rights of first refusal established by this Section 4 shall have no application to any of the
following Equity Securities: 
 (a) shares of Common Stock and/or options, warrants or other Common Stock purchase rights and
the Common Stock issued pursuant to such options, warrants or other rights issued or to be issued after the date hereof to employees, officers or directors of, or consultants or advisors to the Company or any subsidiary pursuant to stock purchase or
stock option plans or other arrangements that are approved by the Board of Directors, including the approval by a majority of the Series Preferred Directors (as defined in the Restated Certificate); 

(b) stock issued or issuable pursuant to any rights or agreements, options, warrants or convertible securities outstanding as of the
date of this Agreement; and stock issued pursuant to any such rights or agreements granted after the date of this Agreement, so long as the rights of first refusal established by this Section 4 were complied with, waived, or were inapplicable
pursuant to any provision of this Section 4.6 with respect to the initial sale or grant by the Company of such rights or agreements; 

(c) any Equity Securities issued for consideration other than cash pursuant to a merger, consolidation, acquisition, strategic alliance
or similar business combination approved by the Board, including the approval of a majority by the Series Preferred Directors; 
 (d)
any Equity Securities issued in connection with stock splits or stock dividends by the Company; 
 (e) any Equity Securities issued
pursuant to any equipment loan or leasing arrangement, real property leasing arrangement, or debt financing from a bank or similar financial or lending institution approved by the Board, including the approval by a majority of the Series Preferred
Directors; 
 (f) any Equity Securities that are issued by the Company pursuant to a registration statement filed under the
Securities Act; 
 (g) any Equity Securities that are issued to third-party service providers in exchange for or as partial
consideration for services rendered to the Company as approved by the Board, provided that exclusion pursuant to this clause (g) is approved by the Board, including a majority of the Series Preferred Directors; 

(h) any Equity Securities issued in connection with strategic transactions involving the Company and other entities approved by the
Board, including without limitation sponsored research, collaboration, technology license, development, OEM, or marketing agreements, provided that exclusion pursuant to this clause (h) is approved by the Board, including a majority of the
Series Preferred Directors; and 

  
 20. 








 (i) any Equity Securities issued by the Company pursuant to the terms of the Purchase
Agreement. 
 SECTION 5. MISCELLANEOUS. 

5.1 Governing Law. This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and construed in
accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof, and as to all other matters shall be governed by and construed in accordance with the internal laws of the State of California, without
regard to conflict of law principles that would result in the application of any law other than the law of the State of California. The parties agree that any action brought by either party under or in relation to this Agreement, including without
limitation to interpret or enforce any provision of this Agreement, shall be brought in, and each party agrees to and does hereby submit to the jurisdiction and venue of, any state or federal court located in the County of San Diego, California.

 5.2 Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit
of, and be binding upon, the parties hereto and their respective successors, assigns, heirs, executors, and administrators and shall inure to the benefit of and be enforceable by each person who shall be a holder of Registrable Securities from time
to time; provided, however, that prior to the receipt by the Company of adequate written notice of the transfer of any Registrable Securities specifying the full name and address of the transferee, the Company may deem and treat
the person listed as the holder of such shares in its records as the absolute owner and holder of such shares for all purposes, including the payment of dividends or any redemption price. 

5.3 Entire Agreement. This Agreement, the Exhibits and Schedules hereto, the Purchase Agreement and the other documents delivered
pursuant thereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party shall be liable or bound to any other in any manner by any oral or written representations, warranties,
covenants and agreements except as specifically set forth herein and therein. Each party expressly represents and warrants that it is not relying on any oral or written representations, warranties, covenants or agreements outside of this
Agreement. 
 5.4 Severability. In the event one or more of the provisions of this Agreement should, for any reason, be held
to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. 
 5.5 Amendment and Waiver. 

(a) Except as otherwise expressly provided, this Agreement may be amended or modified, and the obligations of the Company and the
rights of the Holders under this Agreement may be waived, only upon the written consent of the Company and the holders of the  

  
 21. 








 
Requisite Majority of the then-outstanding Registrable Securities; provided that (i) Registrable Securities that are held by Seachaid shall only be included in such calculation if the
amendment or waiver is of Section 2 (other than Section 2.2 or Section 2.4), Section 3.1 or Section 5 hereof and (ii) Registrable Securities that are held by Comerica shall only be included in such calculation if the
amendment or waiver is of Section 2 (other than Section 2.2 or Section 2.4) or Section 5 hereof; and provided further that, the Company shall be entitled to unilaterally delete Comerica from Exhibit A and as a party to
this Agreement upon termination or expiration of any Warrants issued to Comerica if the Warrants, at the time of such termination or expiration were not exercised, in whole or in part; and provided further that in addition to the foregoing, the
consent of the Fidelity Investors (as defined in the Purchase Agreement) shall be required to waive, amend or modify the provisions of Section 2.11. 

(b) For the purposes of determining the number of Holders or Investors entitled to vote or exercise any rights hereunder, the Company
shall be entitled to rely solely on the list of record holders of its stock as maintained by or on behalf of the Company. 
 5.6 Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power, or remedy accruing to any party, upon any breach, default or noncompliance by another party under this Agreement shall impair any such right, power, or remedy,
nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent, or
approval of any kind or character on any party’s part of any breach, default or noncompliance under the Agreement or any waiver on such party’s part of any provisions or conditions of this Agreement must be in writing and shall be
effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, by law, or otherwise afforded to any party, shall be cumulative and not alternative. 

5.7 Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient; if not, then on the next business day, (c) five (5) days after having been
sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All
communications shall be sent to the party to be notified at the address as set forth on the signature pages hereof or Exhibit A hereto or at such other address as such party may designate by ten (10) days advance written notice to the
other parties hereto. 
 5.8 Attorneys’ Fees. In the event that any suit or action is instituted under or in relation to
this Agreement, including without limitation to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing
party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 

5.9 Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are
not to be considered in construing this Agreement. 

  
 22. 








 5.10 Additional Investors. Notwithstanding anything to the contrary contained herein, if
the Company shall issue additional shares of its Preferred Stock pursuant to the Purchase Agreement, any purchaser of such shares of Preferred Stock shall become a party to this Agreement by executing and delivering an additional counterpart
signature page to this Agreement and shall be deemed an “Investor,” a “Holder” and a party hereunder. Notwithstanding anything to the contrary contained herein, if the
Company shall issue Equity Securities in accordance with Section 4.6 (c), (e), (h) or (i) of this Agreement, any purchaser of such Equity Securities may become a party to this Agreement by executing and delivering an additional
counterpart signature page to this Agreement and shall be deemed an “Investor,” a “Holder” and a party hereunder. 

5.11 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument. 
 5.12 Aggregation of Stock. All shares of Registrable Securities held or acquired
by affiliated entities or persons or persons or entities under common management or control shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 

5.13 Pronouns. All pronouns contained herein, and any variations thereof, shall be deemed to refer to the masculine, feminine or
neutral, singular or plural, as to the identity of the parties hereto may require. 
 5.14 Termination. This Agreement shall
terminate and be of no further force or effect upon the earlier of (i) an Acquisition; or (ii) the date three (3) years following the Closing of a Qualified IPO. 

[THIS SPACE INTENTIONALLY LEFT BLANK] 

  
 23. 








 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	COMPANY:
	
	CIDARA THERAPEUTICS, INC.
		
	Signature:		 /s/ Jeffrey L. Stein

		
	Print Name:		 Jeffrey L. Stein

		
	Title:		 President & CEO


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTOR:
	
	RA CAPITAL HEALTHCARE FUND, LP
		
	By:		 /s/ Peter Kolchinsky            

	Name:		Peter Kolchinsky
	Title:		Manager


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTORS:
	
	FIDELITY ADVISOR SERIES VII: FIDELITY ADVISOR BIOTECHNOLOGY FUND
		
	By:		 /s/ Stacie M. Smith

	Name:		Stacie M. Smith
	Title:		Deputy Treasurer
	
	 FIDELITY SELECT PORTFOLIOS:

BIOTECHNOLOGY PORTFOLIO

		
	By:		 /s/ Stacie M. Smith

	Name:		Stacie M. Smith
	Title:		Deputy Treasurer


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTORS:
	
	5AM VENTURES III, L.P.
		
	By:		5AM Partners III, LLC
	Its:		General Partner
		
	By:		 /s/ Scott Rocklage

	Name:		Scott M. Rocklage
	Title:		Managing Member
	
	5AM CO-INVESTORS III, L.P.
		
	By:		5AM Partners III, LLC
	Its:		General Partner
		
	By:		 /s/ Scott Rocklage

	Name:		Scott M. Rocklage
	Title:		Managing Member


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTORS:
	
	FRAZIER HEALTHCARE VII, LP
		
	By:		FHM VII, LP, its general partner
	By:		FHM VII, LLC, its general partner
		
	By		 /s/ Patrick Heron

			Patrick Heron, Manager
	
	FRAZIER HEALTHCARE VII-A, LP
		
	By:		FHM VII, LP, its general partner
	By:		FHM VII, LLC, its general partner
		
	By		 /s/ Patrick Heron

			Patrick Heron, Manager


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTOR:
	
	INTERWEST PARTNERS X, LP
	
	 By: InterWest Management Partners X, LLC,

its general partner

		
	By		 /s/ Nina Kjellson            

			Nina Kjellson, Managing Director


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

	
	INVESTOR:
	
	CDK ASSOCIATES, L.L.C.
	
	 /s/ Karen Cross            

	Name: Karen Cross
	Title: Treasurer


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTOR:
	
	SABBY HEALTHCARE MASTER FUND, LTD.
	
	By: Sabby Management, LLC, its Investment Manager
		
	By:		 /s/ Robert Grundstein            

			Robert Grundstein, COO and General Counsel


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTOR:
	
	ROCK SPRINGS CAPITAL MASTER FUND LP
		
	By:		Rock Springs GP, LLC, its general partner
		
	By:		 /s/ Graham McPhail            

	Name:		Graham McPhail
	Its:		MD


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTOR:
	
	SUN-BT HEALTHCARE I, L.P. (PORTOLA)
		
	By:		 /s/ H. Michael Keyoung            

	Name:		Hansoo Michael Keyoung
	Its:		Managing Partner


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the
first paragraph hereof. 
  

			
	INVESTORS:
	
	TITAN PERC LTD.
		
	By:		 /s/ Darren Ross            

	Name:		Darren Ross
	Its:		Director
	
	PERCEPTIVE LIFE SCIENCES MASTER FUND LTD.
		
	By:		 /s/ James Mannix            

	Name:		James Mannix
	Its:		COO


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

	
	INVESTOR:
	
	 /s/ Kevin Kotler            

	 KEVIN KOTLER



 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

	
	 INVESTOR:

	
	 /s/ Daniel Wichman            

	 DANIEL WICHMAN



 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

	
	INVESTOR:
	
	 /s/ Laurence W. Lytton            

	 LAURENCE W. LYTTON



 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

	
	INVESTOR:
	
	 /s/ Scott Morenstein            

	 SCOTT MORENSTEIN



 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	 INVESTOR:

	
	SAINT FRANCIS GROWTH FUND
		
	 By:
		 /s/ Kevin Makley

	 Name:
		 Kevin Makley



 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

			
	INVESTORS:
	
	SEACHAID PHARMACEUTICALS, INC.
		
	 Signature:
		 /s/ Lloyd Appel

	 Print Name:
		 Lloyd Appel

	 Title:
		 CFO



 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 IN WITNESS WHEREOF, the parties hereto have
executed this SECOND AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT as of the date set forth in the first paragraph
hereof. 
  

	
	INVESTORS:
	
	AISLING CAPITAL II, LP
	
	 /s/ Lloyd Appel            

	Name: Lloyd Appel
	Title: CFO


 SECOND AMENDED AND RESTATED
INVESTOR RIGHTS AGREEMENT 
 SIGNATURE PAGE 







 SCHEDULE OF INVESTORS 

 

	
	RA Capital Healthcare Fund, LP
	 Fidelity Advisor Series VII: Fidelity Advisor Biotechnology Fund

Fidelity Select Portfolios: Biotechnology Portfolio

	Aisling Capital II, LP
	5AM Ventures III, L.P.
	5AM Co-Investors III, L.P.
	CDK Associates, LLC
	Frazier Healthcare VII, LP
	Frazier Healthcare VII-A, LP
	InterWest Partners X, LP
	Rock Springs Capital Master Fund LP
	Sabby Healthcare Master Fund, Ltd.
	SUN-BT Healthcare I, L.P. (Portola)
	Titan Perc Ltd.
	Perceptive Life Sciences Master Fund Ltd.
	Kevin Kotler
	Daniel Wichman
	Laurence W. Lytton
	Scott Morenstein
	Saint Francis Growth Fund
	Seachaid Pharmaceuticals, Inc.1
	Comerica Bank2

  
  

	1 	For purposes of Section 2 (other than Section 2.2 or Section 2.4) and Section 3.1 and Section 5 only. 


	2 	For purposes of Section 2 (other than Section 2.2 or Section 2.4) and Section 5 only.