# EDGAR Filing Document

**Accession Number:** 0001894562
**File Stem:** 0001628280-25-038619
**Filing Date:** 2025-8
**Character Count:** 331071
**Document Hash:** d856de1e1ba0913080adc3cd0710ffa0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-038619.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001628280-25-038619

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 68

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Prime Medicine, Inc.
- **CENTRAL INDEX KEY:** 0001894562
- **STANDARD INDUSTRIAL CLASSIFICATION:** BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41536
- **FILM NUMBER:** 251191818

**BUSINESS ADDRESS:**
- **STREET 1:** 60 FIRST ST.
- **CITY:** CAMBRIDGE
- **STATE:** MA
- **ZIP:** 02141
- **BUSINESS PHONE:** 617-465-0013

**MAIL ADDRESS:**
- **STREET 1:** 60 FIRST ST.
- **CITY:** CAMBRIDGE
- **STATE:** MA
- **ZIP:** 02141

?xml version='1.0' encoding='ASCII'? prme-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ___________________ to ___________________**

**Commission file number 001-41536** 

**Prime Medicine, Inc.** 

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **84-3097762** |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer Identification No.)** |
| **60 First Street, Cambridge, MA** | **02141** |
| **(Address of principal executive offices)** | **(Zip code)** |

---

**(617) 465-0013**

**(Registrant's telephone number, including area code)** 

Not applicable

**(Former name, former address and former fiscal year, if changed since last report)**

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, par value $0.00001 per share | **PRME** | Nasdaq Global Market |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). &nbsp;&nbsp;&nbsp;&nbsp;Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer  | ☒ | Smaller reporting company | ☒ |
| | | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). &nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp; No ☒

As of July 31, 2025, the registrant had 134,573,998 shares of common stock, par value $0.00001 per share, outstanding.

------

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q contains express or implied statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical facts, contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, and objectives of management, are forward-looking statements, which are based on management's belief and assumptions and on information currently available to our management. These statements involve substantial risks, assumptions and uncertainties. The words "anticipate," "believe," "envision," "estimate," "expect," "goal," "intend," "may," "plan," "predict," "project," "strategy," "target," "potential," "will," "would," "could," "should," "continue," "contemplate," "vision" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

The forward-looking statements in this Quarterly Report on Form 10-Q include statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the initiation, timing, progress and results of our research and development programs, product candidates, preclinical studies and future clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to demonstrate, and the timing of, preclinical proof-of-concept *in vivo* for multiple programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to pursue our areas of focus and any other additional programs we may advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to quickly leverage programs within our initial target indications and to progress additional programs to further develop our pipeline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing of our investigational new drug application ("IND") submissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our Prime Editing technology to address unmet medical needs in patients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the implementation of our strategic plans for our business, programs and technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the scope and duration of protection we are able to establish and maintain for intellectual property rights covering our Prime Editing technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developments related to our competitors and our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to leverage the clinical, regulatory, and manufacturing advancements made by gene therapy and gene editing programs to accelerate our clinical trials and approval of product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain collaborations or strategic relationships and the ability to identify and enter into future license agreements and collaborations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developments related to our Prime Editing technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory developments in the United States and foreign countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to attract and retain key scientific and management personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our estimates of our expenses, capital requirements, needs for additional financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding the anticipated benefits of, and estimates related to, our strategic restructuring and reduction in force and our ability to implement and achieve the expected cost savings in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our evaluation of strategic alternatives and potential partnership opportunities for PM359, including our ability to execute and realize the anticipated benefits of any strategic alternatives we may pursue;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of unfavorable macroeconomic conditions or market volatility resulting from national or global economic conditions or geopolitical developments, including rising inflation and capital market disruptions, changes in U.S. governmental agencies, new or increased international tariffs and retaliatory tariffs, trade protection measures, economic sanctions and economic slowdowns or recessions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding the anticipated timeline of our cash runway and future financial performance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other risks and uncertainties, including those listed under the caption "Risk Factors."

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and these statements may be affected by inaccurate assumptions or by known or unknown risks and uncertainties. You should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this Quarterly Report on Form 10-Q and in subsequent SEC filings, particularly in the "Risk Factors" section, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Unless otherwise disclosed, our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, collaborations, joint ventures or investments we may make or enter into.

You should read this Quarterly Report on Form 10-Q and the documents that we reference herein and have filed as exhibits to our other filings with the Securities and Exchange Commission (the "SEC") completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date hereof, and we do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise after the date of such statements, except as required by applicable law.

This Quarterly Report on Form 10-Q also contains estimates, projections and other information concerning our industry, our business and the markets for our product candidates. Such information is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances that are assumed in this information. Unless otherwise expressly stated, we obtained statistical and other industry and market data from our own internal estimates and research, as well as from reports, industry publications and research, surveys, studies and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data and similar sources. While we are not aware of any misstatements regarding any third-party information presented in this Quarterly Report on Form 10-Q, their estimates, in particular as they relate to projections, involve numerous assumptions, are subject to risks and uncertainties and are subject to change based on various factors, including those discussed under the section titled "Risk Factors" set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q, if any, our Annual Report on Form 10-K that was filed with the SEC on February 28, 2025, and in other SEC filings.

------

**PRIME MEDICINE, INC.**

**FORM 10-Q**

**FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| <u>[PART I - FINANCIAL INFORMATION](#i2ddfe1cbd132409a96b0619e7d64733e_16)</u> | <u>[PART I - FINANCIAL INFORMATION](#i2ddfe1cbd132409a96b0619e7d64733e_16)</u> | <u>[5](#i2ddfe1cbd132409a96b0619e7d64733e_16)</u> |
| Item 1. | <u>[Financial Statements (unaudited)](#i2ddfe1cbd132409a96b0619e7d64733e_19)</u> | <u>[5](#i2ddfe1cbd132409a96b0619e7d64733e_19)</u> |
|  | <u>[Condensed Consolidated Balance Sheets as of](#i2ddfe1cbd132409a96b0619e7d64733e_22)[June 30](#i2ddfe1cbd132409a96b0619e7d64733e_22)[, 2025](#i2ddfe1cbd132409a96b0619e7d64733e_22)[and December 31, 202](#i2ddfe1cbd132409a96b0619e7d64733e_22)</u>4 | <u>[5](#i2ddfe1cbd132409a96b0619e7d64733e_22)</u> |
|  | <u>[Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three](#i2ddfe1cbd132409a96b0619e7d64733e_25)[and Six](#i2ddfe1cbd132409a96b0619e7d64733e_25)[Months Ended](#i2ddfe1cbd132409a96b0619e7d64733e_25)[J](#i2ddfe1cbd132409a96b0619e7d64733e_25)[une 30](#i2ddfe1cbd132409a96b0619e7d64733e_25)[, 2025 and, 2024](#i2ddfe1cbd132409a96b0619e7d64733e_25)</u> | <u>[6](#i2ddfe1cbd132409a96b0619e7d64733e_25)</u> |
|  | <u>[Condensed Consolidated Statements of Stockholders](#i2ddfe1cbd132409a96b0619e7d64733e_28)['](#i2ddfe1cbd132409a96b0619e7d64733e_28)[Equity for the](#i2ddfe1cbd132409a96b0619e7d64733e_28)[Three](#i2ddfe1cbd132409a96b0619e7d64733e_25)[and Six](#i2ddfe1cbd132409a96b0619e7d64733e_25)[Months Ended](#i2ddfe1cbd132409a96b0619e7d64733e_25)[June 30](#i2ddfe1cbd132409a96b0619e7d64733e_25)[, 2025 and, 2024](#i2ddfe1cbd132409a96b0619e7d64733e_25)</u> | <u>[7](#i2ddfe1cbd132409a96b0619e7d64733e_28)</u> |
|  | <u>[Condensed Consolidated Statements of Cash Flows for the](#i2ddfe1cbd132409a96b0619e7d64733e_31)[Six](#i2ddfe1cbd132409a96b0619e7d64733e_31)[Months Ended](#i2ddfe1cbd132409a96b0619e7d64733e_31)[June 30](#i2ddfe1cbd132409a96b0619e7d64733e_31)[, 2025 and, 2024](#i2ddfe1cbd132409a96b0619e7d64733e_31)</u> | <u>[9](#i2ddfe1cbd132409a96b0619e7d64733e_31)</u> |
|  | <u>[Notes to Condensed Consolidated Financial Statements](#i2ddfe1cbd132409a96b0619e7d64733e_34)</u> | <u>[11](#i2ddfe1cbd132409a96b0619e7d64733e_34)</u> |
| Item 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i2ddfe1cbd132409a96b0619e7d64733e_70)</u> | <u>[24](#i2ddfe1cbd132409a96b0619e7d64733e_70)</u> |
| Item 3. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i2ddfe1cbd132409a96b0619e7d64733e_97)</u> | <u>[32](#i2ddfe1cbd132409a96b0619e7d64733e_97)</u> |
| Item 4. | <u>[Controls and Procedures](#i2ddfe1cbd132409a96b0619e7d64733e_100)</u> | <u>[33](#i2ddfe1cbd132409a96b0619e7d64733e_100)</u> |
| <u>[PART II - OTHER INFORMATION](#i2ddfe1cbd132409a96b0619e7d64733e_103)</u> | <u>[PART II - OTHER INFORMATION](#i2ddfe1cbd132409a96b0619e7d64733e_103)</u> | <u>[34](#i2ddfe1cbd132409a96b0619e7d64733e_103)</u> |
| Item 1. | <u>[Legal Proceedings](#i2ddfe1cbd132409a96b0619e7d64733e_106)</u> | <u>[34](#i2ddfe1cbd132409a96b0619e7d64733e_106)</u> |
| Item 1A. | <u>[Risk Factors](#i2ddfe1cbd132409a96b0619e7d64733e_109)</u> | <u>[34](#i2ddfe1cbd132409a96b0619e7d64733e_109)</u> |
| Item 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i2ddfe1cbd132409a96b0619e7d64733e_112)</u> | <u>[39](#i2ddfe1cbd132409a96b0619e7d64733e_112)</u> |
| Item 3. | <u>[Defaults Upon Senior Securities](#i2ddfe1cbd132409a96b0619e7d64733e_115)</u> | <u>[39](#i2ddfe1cbd132409a96b0619e7d64733e_115)</u> |
| Item 4. | <u>[Mine Safety Disclosure](#i2ddfe1cbd132409a96b0619e7d64733e_118)</u> | <u>[39](#i2ddfe1cbd132409a96b0619e7d64733e_118)</u> |
| Item 5. | <u>[Other Information](#i2ddfe1cbd132409a96b0619e7d64733e_121)</u> | <u>[39](#i2ddfe1cbd132409a96b0619e7d64733e_121)</u> |
| Item 6. | <u>[Exhibits](#i2ddfe1cbd132409a96b0619e7d64733e_124)</u> | <u>[40](#i2ddfe1cbd132409a96b0619e7d64733e_124)</u> |
|  | <u>[Signatures](#i2ddfe1cbd132409a96b0619e7d64733e_127)</u>  | <u>[41](#i2ddfe1cbd132409a96b0619e7d64733e_127)</u> |

---

From time to time we may use our website, our X (formerly known as Twitter) account (@PrimeMedicine) or our LinkedIn profile at https://www.linkedin.com/company/prime-medicine to distribute material information. Our financial and other material information is routinely posted to and accessible on the Investors section of our website, available at www.primemedicine.com. Investors are encouraged to review the Investors section of our website because we may post material information on that site that is not otherwise disseminated by us. Information that is contained in and can be accessed through our website or our social media is not incorporated into, and does not form a part of, this Quarterly Report on Form 10-Q.

------

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements (unaudited)**

**PRIME MEDICINE, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| (in thousands, except share and per share amounts) | **June 30,<br>2025** | **December 31,<br>2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $53804 | $182476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 44539 | 2998 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investment — related party | 3407 | 4968 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collaboration receivable — related party | 120 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 3032 | 6777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 16385 | 14667 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 121287 | 211886 |
| Property and equipment, net | 23828 | 24404 |
| Operating lease right-of-use assets | 120203 | 47156 |
| Restricted cash | 13691 | 14062 |
| Total assets | $279009 | $297508 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $6378 | $11351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 12158 | 15904 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue — related party | 8315 | 7092 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability | 7258 | 3614 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 34109 | 37961 |
| Deferred revenue, net of current — related party | 59562 | 63218 |
| Operating lease liability, net of current | 112478 | 37180 |
| Research and development funding liability | 12000 | 6000 |
| Total liabilities | 218149 | 144359 |
| Commitments and contingencies |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value of $0.00001 per share; 775,000,000 shares authorized; 134,494,438 and 131,160,842 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 852561 | 840358 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (10) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (791693) | (687212) |
| Total stockholders' equity | 60860 | 153149 |
| Total liabilities and stockholders' equity | $279009 | $297508 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**PRIME MEDICINE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|<br>(in thousands, except share and per share amounts) | **2025** | **2024** | **2025** | **2024** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Collaboration revenue — related party | $1115 | $— | $2569 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Collaboration revenue |  |  |  | 591 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1115 |  | 2569 | 591 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 41375 | 43071 | 81937 | 80845 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 13117 | 12601 | 26401 | 23759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 54492 | 55672 | 108338 | 104604 |
| Loss from operations | (53377) | (55672) | (105769) | (104013) |
| Other income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 743 | 611 | 1925 | 1287 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion (amortization) of investments | 530 | 1486 | 869 | 2316 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of short-term investment — related party | (505) | (1925) | (1561) | (759) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 18 | 39 | 55 | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 786 | 211 | 1288 | 2925 |
| Net loss before income taxes | (52591) | (55461) | (104481) | (101088) |
| Provision for income taxes |  | 134 |  |  |
| Net loss attributable to common stockholders | $(52591) | $(55327) | $(104481) | $(101088) |
| Net loss per share attributable to common stockholders, basic and diluted | $(0.41) | $(0.46) | $(0.81) | $(0.90) |
| Weighted-average common shares outstanding, basic and diluted | 129185918 | 119188866 | 128439349 | 111827522 |
| Comprehensive loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(52591) | $(55327) | $(104481) | $(101088) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss on investments, net of tax | 5 | 24 | (11) | (56) |
| Comprehensive loss | $(52586) | $(55303) | $(104492) | $(101144) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**PRIME MEDICINE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other<br>Comprehensive<br>Losses** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity** |
|<br>(in thousands, except share amounts) | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other<br>Comprehensive<br>Losses** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity** |
| Balance as of December 31, 2024 | 131160842 | $2 | $840358 | $1 | $(687212) | $153149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  | 5681 |  |  | 5681 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss on investments, net of tax |  |  |  | (16) |  | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (51890) | (51890) |
| Balance as of March 31, 2025 | 131160842 | $2 | $846039 | $(15) | $(739102) | $106924 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of pre-funded warrants | 3199984 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under the employee stock purchase plan | 133612 |  | 197 |  |  | 197 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  | 6325 |  |  | 6325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss on investments, net of tax |  |  |  | 5 |  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (52591) | (52591) |
| Balance as of June 30, 2025 | 134494438 | $2 | $852561 | $(10) | $(791693) | $60860 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**PRIME MEDICINE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other<br>Comprehensive<br>Losses** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity** |
|<br>(in thousands, except share amounts) | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other<br>Comprehensive<br>Losses** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity** |
| Balance as of December 31, 2023 | 97377121 | $2 | $624414 | $(15) | $(491330) | $133071 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock from public offering, net of issuance costs of $8.9 million | 22560001 |  | 132055 |  |  | 132055 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of pre-funded warrants, net of issuance costs of $1.2 million |  |  | 18800 |  |  | 18800 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under the employee stock purchase plan | 74488 |  | 436 |  |  | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock upon exercise of stock options | 9664 |  | 36 |  |  | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  | 5209 |  |  | 5209 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss on investments, net of tax |  |  |  | (80) |  | (80) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (45761) | (45761) |
| Balance as of March 31, 2024 | 120021274 | 2 | 780950 | (95) | (537091) | 243766 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock upon exercise of stock options | 9539 |  | 35 |  |  | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  | 8091 |  |  | 8091 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized loss on investments, net of tax |  |  |  | 24 |  | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (55327) | (55327) |
| Balance as of June 30, 2024 | 120030813 | $2 | $789076 | $(71) | $(592418) | $196589 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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**PRIME MEDICINE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|<br>(in thousands) | **2025** | **2024** |
| **Cash flows used in operating activities:** |  |  |
| Net loss | $(104481) | $(101088) |
| Adjustments to reconcile net loss to net cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 12006 | 13300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non cash lease expense | 4761 | 7917 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 3564 | 2853 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of short-term investment — related party | 1561 | 759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of premiums and discount on short-term investments | (575) | (2079) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes |  |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Collaboration receivable — related party | (120) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 652 | (2519) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (1461) | (9230) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | (1690) | (3939) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued settlement payment — related party |  | (13500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue — related party | (2433) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (2053) | (5672) |
| Net cash used in operating activities | (90269) | (113198) |
| **Cash flows used in investing activities:** |  |  |
| Maturities of investments | 14250 | 110000 |
| Purchases of investments | (55227) | (135912) |
| Purchases of property and equipment | (3994) | (4226) |
| Net cash used in investing activities | (44971) | (30138) |
| **Cash flows provided by financing activities:** |  |  |
| Proceeds from research and development funding liability | 6000 | 6000 |
| Proceeds from follow-on offering, net of issuance costs |  | 132055 |
| Proceeds from issuance of pre-funded warrants, net of issuance costs |  | 18800 |
| Proceeds from ESPP offerings | 197 | 436 |
| Net proceeds from stock option exercises |  | 71 |
| Net cash provided by financing activities | 6197 | 157362 |
| Net change in cash, cash equivalents, and restricted cash | (129043) | 14026 |
| Cash, cash equivalents, and restricted cash at beginning of period | 196538 | 55070 |
| Cash, cash equivalents, and restricted cash at end of period | $67495 | $69096 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**PRIME MEDICINE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| (in thousands) | **2025** | **2024** |
| **Reconciliation of cash, cash equivalents and restricted cash:** |  |  |
| Cash, cash equivalents, and restricted cash at end of period | $67495 | $69096 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: restricted cash | 13691 | 13496 |
| Total cash, and cash equivalents | $53804 | $55600 |
| **Supplemental cash flow information:** |  |  |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $83757 | $44935 |
| Decrease in right-of-use assets due to lease termination | $3120 | $— |
| **Supplemental disclosure of non-cash investing and financing activities:** |  |  |
| Purchases of property and equipment included in accounts payable and accrued expenses | $148 | $355 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**PRIME MEDICINE, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**1. Nature of the Business and Basis of Presentation**

Prime Medicine, Inc., together with its consolidated subsidiary (the "Company") is a biotechnology company committed to delivering a new class of differentiated one-time curative genetic therapies. The Company is deploying Prime Editing technology, which it believes is a versatile, precise, and efficient gene editing technology. The Company was incorporated in the State of Delaware in September 2019. Its principal offices are in Cambridge, Massachusetts.

***Liquidity and Capital Resources***

Since its inception, the Company has devoted substantially all of its resources to building its Prime editing platform and advancing development of its portfolio of programs, establishing and protecting its intellectual property, conducting research and development activities, organizing and staffing the company, business planning, raising capital and providing general and administrative support for these operations. To date, the Company has funded its operations primarily with proceeds from sales of preferred stock, from public offerings, and private placement of its common stock, and through payments from its collaboration partners.

In August 2025, the Company issued and sold 43,700,000 shares of its common stock, including 5,700,000 shares pursuant to the exercise of the underwriters' option to purchase additional shares, at a price to the public of $3.30 per share. As a result of the offering, the Company received approximately $138.2 million in net proceeds, after deducting underwriting discounts, commissions and estimated offering costs of $6.0 million.

Since its inception, the Company has incurred substantial losses and, as of June 30, 2025, the Company had an accumulated deficit of $791.7 million. The Company expects to generate operating losses and negative operating cash flows for the foreseeable future. The Company further expects that its cash, cash equivalents, and investments as of June 30, 2025 of $101.8 million, along with the $138.2 million in net proceeds received from the sale of common stock in August 2025 discussed above, will be sufficient to fund its operations for at least the next twelve months from the date of issuance of these financial statements.

***Risks and Uncertainties***

The Company is subject to risks and uncertainties common to early stage companies in the biotechnology industry, including, but not limited to, completing preclinical studies and clinical trials, obtaining regulatory approval for product candidates, market acceptance of products, development by competitors of new technological innovations, dependence on key personnel, the ability to attract and retain qualified employees, reliance on third-party organizations, protection of proprietary technology, compliance with government regulations, and the ability to raise additional capital to fund operations. The Company's product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure, and extensive compliance-reporting capabilities. Even if the Company's development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales.

The Company will need to raise additional capital to support its continuing operations and to pursue its growth strategy. Until such time as the Company can generate significant revenue from product sales, if ever, it expects to finance its operations through a combination of private and public equity offerings, debt financings, collaborations, strategic alliances, licensing, or other arrangements with third parties, or other similar transactions. The Company may be unable to raise additional capital or enter into such other agreements when needed on favorable terms or at all. The inability to raise capital as and when needed would have a negative impact on the Company's financial

------

condition and its ability to pursue its business strategy. The Company will need to generate significant revenue to achieve profitability, and it may never do so.

***Basis of Presentation***

The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiary. Intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America ("U.S. GAAP"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the ASC and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board ("FASB").

The accompanying condensed consolidated financial statements of Prime Medicine, Inc. are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company's financial position as of June 30, 2025, the results of its operations for the three and six months ended June 30, 2025 and 2024, the condensed consolidated statements of stockholders' equity for the three and six months ended June 30, 2025 and 2024, and its cash flows for the six months ended June 30, 2025 and 2024. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2025 and 2024 are also unaudited. The results for the three and six months ended June 30, 2025 are not necessarily indicative of results to be expected for the year ending December 31, 2025, any other interim periods, or any future year or period. The condensed consolidated balance sheet data as of December 31, 2024 was derived from our audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2024, and notes thereto, which are included in the Company's Annual Report on Form 10-K that was filed with the Securities and Exchange Commission (the "SEC") on February 28, 2025.

**2. Summary of Significant Accounting Policies**

The Company's significant accounting policies are disclosed in Note 2, *Summary of significant accounting policies*, in the audited consolidated financial statements for the year ended December 31, 2024, and notes thereto, included in the Company's Annual Report on Form 10-K that was filed with the SEC on February 28, 2025. Since the date of those financial statements, there have been no material changes to its significant accounting policies, except as noted below.

***Use of Estimates***

The preparation of the Company's condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected within these condensed consolidated financial statements include, but are not limited to, the valuation of the Company's common stock and stock-based awards. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, as there are changes in circumstances, facts and experience. Actual results may differ materially from those estimates or assumptions.

***Segment Information***

Under ASC 280, Segment Reporting, operating segment is a component of a public entity that 1) engages in business activities from which it may recognize revenues and incur expenses, 2) its operating results are regularly reviewed by the entity's chief operating decision maker ("CODM") to make decisions about resource allocation or performance assessment, and 3) its discrete financial information is available. The Company operates and manages its business as a single segment for the purposes of assessing performance and making operating decisions.

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Our chief executive officer, who is the CODM, manages and allocates resources to the operations of our company on a total company basis by assessing the overall level of resources available and how to best deploy these resources across functions and research and development projects that are in line with our long-term company-wide strategic goals. In making these decisions, the CODM uses consolidated financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. The CODM performs this assessment based on the Company's consolidated net loss. Through this analysis, the CODM assesses performance by comparing actual net loss verses the budget, and then decides how to allocate resources to invest in the Company's research and development programs. The measure of segment assets is reported on the consolidated balance sheets as total assets.

The following table contains additional information on our consolidated net loss, including significant segment expenses:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(in thousands) | **2025** | **2024** | **2025** | **2024** |
| Total revenue | $1115 | $— | $2569 | $591 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;Research and development expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Personnel expenses | 14448 | 16198 | 29248 | 31205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility related | 13765 | 11302 | 24734 | 18636 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research costs | 8116 | 11390 | 19152 | 23009 |
| &nbsp;&nbsp;General and administrative expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Personnel expenses | 7082 | 6956 | 14238 | 12840 |
| &nbsp;&nbsp;Other segment items <sup>(1)</sup> | 11081 | 9826 | 20966 | 18914 |
| Total operating expenses | 54492 | 55672 | 108338 | 104604 |
| Total other income, net | 786 | 211 | 1288 | 2925 |
| Provision for income taxes |  | 134 |  |  |
| Net loss | $(52591) | $(55327) | $(104481) | $(101088) |

---

(1) Other segment items consist of professional and consultant fees, license and intellectual property fees, general and administrative facility costs, and settlement costs.

***Recently Issued Accounting Pronouncements Not Yet Adopted***

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, which requires enhanced income tax disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently in the process of evaluating the impact of this pronouncement on its related disclosures.

In November 2024, the FASB issued ASU 2024-03, *Disaggregation of Income Statement Expenses*, which requires more detailed information about specified categories of expenses included in certain expense captions presented on the face of the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact this ASU will have on its disclosures.

Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company's financial statements upon adoption.

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**3. Fair Value Measurements and Investments**

The following tables present the Company's fair value hierarchy for its assets that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair value:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025:** | **As of June 30, 2025:** | **As of June 30, 2025:** | **As of June 30, 2025:** |
|<br>(in thousands) | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market funds | $— | $40748 | $— | $40748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities |  | 6776 |  | 6776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and government securities |  | 5216 |  | 5216 |
| &nbsp;&nbsp;&nbsp;Short-term investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and government securities |  | 36347 |  | 36347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities |  | 8192 |  | 8192 |
| &nbsp;&nbsp;&nbsp;Related party short-term investment: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beam equity securities | 3407 |  |  | 3407 |
| Total cash equivalents and investments | $3407 | $97279 | $— | $100686 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024:** | **As of December 31, 2024:** | **As of December 31, 2024:** | **As of December 31, 2024:** |
|<br>(in thousands) | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market funds | $— | $178212 | $— | $178212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities |  | 3793 |  | 3793 |
| Short-term investment: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and government securities |  | 2998 |  | 2998 |
| Related party short-term investment: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beam equity securities | 4968 |  |  | 4968 |
| Total cash equivalents and investments | $4968 | $185003 | $— | $189971 |

---

The Company classifies its investments as short-term based on each instrument's underlying contractual maturity date. The fair value of investments classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency.

***Investments in Debt Securities***

Unrealized gains and losses of investments in debt securities consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025:** | **As of June 30, 2025:** | **As of June 30, 2025:** | **As of June 30, 2025:** |
|<br>(in thousands) | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Fair Value** |
| Short-term investments in debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and government securities | $36355 | $— | $(8) | $36347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 8194 |  | (2) | 8192 |
| Total short-term investments in debt securities | $44549 | $— | $(10) | $44539 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024:** | **As of December 31, 2024:** | **As of December 31, 2024:** | **As of December 31, 2024:** |
|<br>(in thousands) | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Fair Value** |
| Short-term investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and government securities | $2997 | $1 | $— | $2998 |
| Total short-term investments in debt securities | $2997 | $1 | $— | $2998 |

---

The contractual maturities of the Company's investments in debt securities were as follows:

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| | | |
|:---|:---|:---|
| (in thousands) | **June 30,<br>2025** | **December 31,<br>2024** |
| Due within one year | $44539 | $2998 |

---

Marketable securities in unrealized loss positions consisted of the following:

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| | | | |
|:---|:---|:---|:---|
| | **As of June 30, 2025:** | **As of June 30, 2025:** | **As of June 30, 2025:** |
|<br>(in thousands, except number of securities) | **Number of Securities** | **Fair Value** | **Gross Unrealized Losses** |
| Investments in continuous loss position for less than 12 months: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and government securities | 12 | $36347 | $(8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 9 | $8192 | $(2) |

---

Based on factors such as historical experience, market data, issuer-specific factors, and current economic conditions, the Company did not record an allowance for credit losses as of June 30, 2025 related to these investments. Further, given the lack of significant change in the credit risk, the Company does not consider these investments to be impaired.

**4. Property and Equipment, Net** 

Property and equipment, net consisted of the following:

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| | | |
|:---|:---|:---|
| (in thousands) | **June 30,<br>2025** | **December 31,<br>2024** |
| Property and equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Laboratory equipment | $29377 | $27343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leasehold improvement | 7911 | 5136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Furniture and Fixture | 1864 | 1075 |
| &nbsp;&nbsp;&nbsp;&nbsp;Computer hardware and software | 1122 | 869 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 230 | 3578 |
| Total property and equipment | 40504 | 38001 |
| Less: Accumulated depreciation | (16676) | (13597) |
| Total property and equipment, net | $23828 | $24404 |

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Depreciation expense related to property and equipment is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(in thousands) | **2025** | **2024** | **2025** | **2024** |
| Depreciation Expense | $1864 | $1538 | $3564 | $2853 |

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**5. Accrued Expenses and Other Current Liabilities**

Accrued expenses and other current liabilities consisted of the following:

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| | | |
|:---|:---|:---|
| (in thousands) | **June 30,<br>2025** | **December 31,<br>2024** |
| Accrued expenses and other current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | $5818 | $8976 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and clinical costs | 3660 | 907 |
| &nbsp;&nbsp;&nbsp;&nbsp;License fee | 1562 | 1938 |
| &nbsp;&nbsp;&nbsp;&nbsp;Facility related | 1 | 2811 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1117 | 1272 |
| Total accrued expenses and other current liabilities | $12158 | $15904 |

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**6. Leases**

The Company leases office and laboratory space under various non-cancelable operating leases. The Company's significant lease agreements are disclosed in Note 9, *Leases*, in the audited consolidated financial statements for the year ended December 31, 2024, and notes thereto, included in the Company's Annual Report on Form 10-K that was filed with the SEC on February 28, 2025. Since the date of those financial statements, there have been no changes to the Company's significant agreements except as described below.

***60 First Street, Cambridge, Massachusetts Lease***

In November 2021, the Company entered into a lease for three floors of office and laboratory space in Cambridge, Massachusetts, with rent commencing in March 2024, subject to any credits pursuant to the terms of the lease (the "60 First Street Lease"). Subsequent to the initial non-cancelable term of the lease of ten years, the Company has an option to extend the lease for an additional period of ten years with the rent during the extension term being the then fair market rent. The Company secured the lease with a $13.1 million security deposit, which was recorded as restricted cash on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

*Accounting Considerations*

The Company determined that the lease contained three separate lease components, each of which represents a right of use that the Company can benefit from on its own and neither of which are highly dependent nor highly related to each other. The Company allocated the consideration among the three lease components based on their relative fair market values.

In accordance with ASC 842, *Leases*, the lease commenced for one of the lease components in March 2024 and the Company recorded a right-of-use asset of $44.9 million, and a corresponding lease liability of $33.6 million on the lease commencement date; this included a reclass of $11.3 million from prepaid expenses to right-of-use asset related to build out costs which were determined to be owned by the lessor. In March 2025, the Company determined that the lease commenced on the remaining two lease components and recorded right-of-use assets of $76.8 million, and a corresponding lease liability of $78.6 million on the lease commencement date. As the exercise of the option to extend the lease term is not reasonably certain, the Company will recognize lease expense for all lease components through February 2034.

In June 2024, the Company filed a complaint in Massachusetts Superior Court against NW Cambridge Property Owner, LLC ("NWC"), the Company's landlord at 60 First Street, alleging that NWC had breached the 60 First Street Lease by, among other reasons, refusing to provide the Company with certain rental credits for the late delivery of the leased space. While this lawsuit is pending, the Company continued to make the disputed payments under the 60 First Street Lease under protest. The disputed payments are recorded within other current assets on the Company's condensed consolidated balance sheets. Total payments made under dispute was $13.9 million, and $10.8 million as of June 30, 2025 and December 31, 2024, respectively.

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***Arsenal Street, Watertown, Massachusetts Leases***

In August 2024, the Company entered into the third amendment to its existing lease for approximately 16,000 square feet of combined laboratory and office space at 480 Arsenal Street, Watertown, Massachusetts (the "480 Arsenal Amendment"). In September 2024, the Company entered into a new lease for approximately 48,500 square feet of combined laboratory and office space at 500 Arsenal Street, Watertown, Massachusetts (the "500 Arsenal Lease"). The landlords of the spaces at 480 Arsenal Street and 500 Arsenal Street are affiliates.

The 480 Arsenal Amendment provides the Company with an additional 9,400 square feet of combined laboratory and office space (the "Expansion Space") at no additional cost and also provides an early termination date for the existing space and the Expansion Space. The lease for space at 480 Arsenal Street, including the Expansion Space, terminated on April 30, 2025.

The 500 Arsenal Lease term commenced in December 2024 with a base term of 11 months. In December 2024, the Company began constructing improvements to the space, the construction for which was completed in 2025. Subsequent to the base term, the Company has an option to extend the lease through August 2028, which it exercised in February 2025. The Company secured the lease with a $0.6 million security deposit, which is recorded as restricted cash on the condensed consolidated balance sheets as of June 30, 2025. The 500 Arsenal Lease also provides a tenant improvement allowance of $2.4 million and an additional tenant improvement allowance of $1.2 million, which the Company would be obligated to repay to the landlord. The Company did not use the additional tenant improvement allowance.

*Accounting Considerations*

As the 480 Arsenal Amendment and the 500 Arsenal Lease meet the criteria for combining contracts under ASC 842, the Company determined that both 480 Arsenal Amendment and the 500 Arsenal Lease are modifications to its existing lease at 480 Arsenal Street. Within the combined contract the Company identified two separate lease components, each of which represents a right of use that the Company can benefit from on its own and none which are neither highly dependent nor highly related to the other. The Company allocated the consideration under the combined contract among the two lease components based on their relative fair market value. In calculating the allocable consideration and the fair market value of each lease component, the Company determined it is probable that it will exercise the option to extend the lease term provided under the 500 Arsenal Lease.

For accounting purposes, as the construction of the lessor assets were completed, the Company determined that the 500 Arsenal Lease commenced in March 2025 and recorded right-of-use assets of $7.0 million, and a corresponding lease liability of $5.5 million on the lease commencement date. Concurrently, the Company also determined that the termination of its leased space at 480 Arsenal Street was reasonably certain, and the Company recorded a $3.1 million reduction to the Company's operating lease liability and its operating lease right-of-use asset on the condensed consolidated balance sheet.

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The table below reconciles the undiscounted future annual lease payments to the total operating lease liabilities recorded in the condensed consolidated balance sheet as of June 30, 2025:

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| | |
|:---|:---|
| (in thousands) | **Undiscounted<br>Amounts** |
| Undiscounted lease payments: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remaining in 2025 | $10494 |
| &nbsp;&nbsp;&nbsp;&nbsp;2026 | 21703 |
| &nbsp;&nbsp;&nbsp;&nbsp;2027 | 22355 |
| &nbsp;&nbsp;&nbsp;&nbsp;2028 | 22294 |
| &nbsp;&nbsp;&nbsp;&nbsp;2029 | 21478 |
| &nbsp;&nbsp;&nbsp;&nbsp;Thereafter | 96601 |
| Total undiscounted lease payments | 194925 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: imputed interest | (75189) |
| Total operating lease liability | $119736 |

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**7. Stockholder's Equity**

***Common Stock***

Under the Company's Third Amended and Restated of Certificate of Incorporation, as amended, the Company's common stock had a par value of $0.00001 and each share of common stock entitles the holder to one vote on all matters submitted to the stockholders for a vote. The holders of common stock are entitled to receive dividends, if any, as declared by the Company's Board of Directors (the "Board of Directors").

***Pre-funded Warrants***

In February 2024, the Company sold pre-funded warrants to purchase 3,200,005 shares of common stock at a public offering price of $6.24999 per pre-funded warrant, which represents the per share public offering price of each share of common stock less the $0.00001 per share exercise price for each pre-funded warrant. Subject to certain requirements, the pre-funded warrants can be exercised by the holder at any time.

In May 2025, the holder exercised all 3,200,005 of its pre-funded warrants on a cashless basis and received 3,199,984 shares of the Company's common stock. Following this exercise, the Company has no pre-funded warrants outstanding.

***August 2025 Offering***

In August 2025, the Company issued and sold 43,700,000 shares of its common stock, including 5,700,000 shares pursuant to the exercise of the underwriters' option to purchase additional shares, at a price to the public of $3.30 per share. As a result of the offering, the Company received approximately $138.2 million in net proceeds, after deducting underwriting discounts, commissions and offering costs of approximately $6.0 million.

***At-The-Market Equity Program***

In November 2023, the Company entered into Open Market Sale Agreement<sup>SM</sup> (the "Sales Agreement") with Jefferies LLC, acting as the Company's agent and/or principal (the "Sales Agent"), with respect to an "at the market offering" program under which the Company may, from time to time, at its sole discretion, issue and sell shares of its common stock having an aggregate offering price of up to $300.0 million through the Sales Agent.

Effective July 30 2025, the Company terminated the sales agreement prospectus (the "ATM Prospectus") filed with the shelf registration statement on Form S-3 (File No. 333-275321) and related to the shares of the Company's common stock issuable pursuant to the Sales Agreement. As a result, the Company will not make any sales of its common stock pursuant to the Sales Agreement, unless and until a new prospectus, prospectus supplement or a new

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registration statement is filed. Other than the termination of the ATM Prospectus, the Sales Agreement remains in full force and effect.

As of June 30, 2025 and as of the date these condensed consolidated financial statements are issued, the Company has not sold any shares of common stock under the ATM Prospectus.

**8. Stock-Based Compensation**

***2019 Stock Option and Grant Plan***

The Company's 2019 Stock Option and Grant Plan (the "2019 Plan") provides for the Company to grant incentive stock options, non-qualified stock options, unrestricted stock awards, restricted stock awards and other stock-based awards to the officers, employees, consultants and other key persons of the Company. The 2019 Plan was administered by the Board of Directors, or at the discretion of the Board of Directors, by a committee of the Board of Directors. The exercise prices, vesting and other restrictions are determined at the discretion of the Board of Directors, or its committee if so delegated.

In October 2022, in connection with the closing of the Company's initial public offering ("IPO"), the Board of Directors determined that no further awards would be granted under the 2019 Plan.

***2022 Stock Option and Incentive Plan***

On February 9, 2022, the Board of Directors adopted, and on October 10, 2022, the Company's stockholders approved, the 2022 Stock Option and Incentive Plan (the "2022 Plan"), which became effective on October 18, 2022. The 2022 Plan allows the Company to make equity-based and cash-based incentive awards to its officers, employees, directors, and consultants. The 2022 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards.

The shares of common stock underlying any awards under the 2022 Plan and the 2019 Plan that are forfeited, cancelled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance of stock, expire, or are otherwise terminated (other than by exercise) will be added back to the shares of common stock available for issuance under the 2022 Plan. The number of shares reserved and available for issuance under the 2022 Plan increased on January 1, 2023 and will increase on each January 1 hereafter, by five percent of the outstanding number of shares of common stock on the immediately preceding December 31 or such lesser number of shares as determined by the Compensation Committee of the Board of Directors. On January 1, 2025, the annual increase resulted in an additional 6,558,042 shares authorized being added to the 2022 Plan. As of June 30, 2025, the Company had 28,080,152 shares reserved under the 2022 Plan and the 2019 Plan, and 9,478,749 shares available for issuance under the 2022 Plan.

***2022 Employee Stock Purchase Plan***

On February 9, 2022, the Board of Directors adopted, and on October 10, 2022, the Company's stockholders approved, the 2022 Employee Stock Purchase Plan (the "2022 ESPP"), which became effective on October 18, 2022.

The number of shares of common stock that may be issued under the 2022 ESPP cumulatively increased beginning on January 1, 2023 and shall increase on each January 1 hereafter through January 1, 2032, by the least of (i) 971,350 shares of common stock, (ii) one percent of the outstanding number of shares of common stock on the immediately preceding December 31, or (iii) such number of shares of common stock as determined by the administrator of the 2022 ESPP. There was no annual increase for the 2022 ESPP on January 1, 2025. As of June 30, 2025, the Company had 1,619,579 shares available for issuance under the 2022 ESPP.

During the six months ended June 30, 2025, the Company issued 133,612 shares of the Company's common stock under the 2022 ESPP.

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***Stock Options***

The following table summarizes the Company's stock option activity for the six months ended June 30, 2025:

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| | | |
|:---|:---|:---|
| | **Number of Shares** | **Weighted-Average Exercise Price** |
| Outstanding at December 31, 2024 | 11410691 | $9.08 |
| &nbsp;&nbsp;&nbsp;Granted | 7531444 | 1.94 |
| &nbsp;&nbsp;&nbsp;Exercised |  |  |
| &nbsp;&nbsp;&nbsp;Cancelled or forfeited | (2102462) | 7.04 |
| Outstanding at June 30, 2025 | 16839673 | $6.14 |
| Options vested and exercisable at June 30, 2025 | 7106428 | $8.45 |
| Options vested and expected to vest at June 30, 2025 | 16839673 | $6.14 |

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As of June 30, 2025, there was $30.5 million of total unrecognized compensation cost related to time-based unvested stock options. The Company expects to recognize such amount over a remaining weighted-average period of 2.9 years.

***Performance-Based Stock Options***

The following table summarizes the Company's performance-based stock option activity for the six months ended June 30, 2025:

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| | | |
|:---|:---|:---|
| | **Number of Shares** | **Weighted-Average<br>Grant Date Fair <br>Value** |
| Outstanding at December 31, 2024 | 1061730 | $7.31 |
| &nbsp;&nbsp;&nbsp;Granted | 700000 | 1.34 |
| &nbsp;&nbsp;&nbsp;Exercised |  |  |
| &nbsp;&nbsp;&nbsp;Cancelled or forfeited |  |  |
| Outstanding at June 30, 2025 | 1761730 | $4.94 |
| Vested and exercisable at June 30, 2025 | 845646 | $6.87 |

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As of June 30, 2025, there was $2.1 million of total unrecognized compensation cost related to performance-based stock options.

***Repricing of Certain Outstanding Stock Options***

On June 22, 2025, the Board of Directors approved, and on August 1, 2025 (the "Repricing Date"), the Company's stockholders approved, a one-time repricing (the "Option Repricing") of certain outstanding stock options granted to, and held by, certain of the Company's current employees, including its executive officers, and members of the Board of Directors through the Repricing Date (collectively, the "Eligible Optionholders"), under the 2019 Plan and 2022 Plan (collectively, the "Plans"). The Option Repricing impacted up to an aggregate of 8,285,387 shares of common stock (such options, the "Eligible Options") that have exercise prices in excess of $4.04 (the "Repriced Exercise Price"), which was the closing trading price per share of the Company's common stock on The Nasdaq Global Market on the Repricing Date.

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Effective as of the Repricing Date, the per share exercise price of each Eligible Option held by an Eligible Optionholder on the Repricing Date was automatically reduced to the Repriced Exercise Price. Under the terms of the Option Repricing, a Repriced Option will revert to its original exercise price per share if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.exercised prior to the 18-month anniversary of the Repricing Date for Repriced Options held by members of the Board of Directors or executive officers of the Company, as applicable, or the one-year anniversary of the Repricing Date for Repriced Options held by all other employees of the Company (each, a "Retention Date");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.an Eligible Optionholder's Service Relationship (as defined in the Plans) is terminated by the Company for Cause (as defined in the applicable award agreement) prior to the applicable Retention Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.an Eligible Optionholder resigns from the Company (including as a member of the Board of Directors) for any reason prior to the applicable Retention Date, other than described below.

Notwithstanding the foregoing, each Repriced Option shall retain the Repriced Exercise Price, to the extent it has not otherwise reverted to its original exercise price per share in accordance with the foregoing, and the ability to exercise such Repriced Option may be accelerated to earlier than the applicable Retention Date in the event of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.a Sale Event (as defined in the Plans) prior to the applicable Retention Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.the termination of the Eligible Optionholder's Service Relationship by the Company without Cause or for "good reason," or resignation by the Eligible Optionholder for "good reason," to the extent provided for in the Eligible Optionholder's employment agreement, offer letter or severance plan (as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the Eligible Optionholder's death or disability (as determined in accordance with the Plans, as applicable)..

Except as modified by the Option Repricing, all other terms and conditions of the Repriced Options, including, without limitation, any provisions with respect to vesting and term of the Repriced Options, will remain in full force and effect. The Company is in the process of evaluating the accounting impact of the Option Repricing.

***Performance-Based Restricted Common Stock Awards***

The Company awarded restricted common stock to employees and non-employees under its 2019 Plan. The following table summarizes the Company's performance-based restricted common stock activity for the six months ended June 30, 2025:

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| | | |
|:---|:---|:---|
| | **Number of Shares** | **Weighted-Average Grant-Date Fair Value** |
| Outstanding at December 31, 2024 | 3472546 | $0.06 |
| &nbsp;&nbsp;&nbsp;Issued |  |  |
| &nbsp;&nbsp;&nbsp;Vested |  |  |
| &nbsp;&nbsp;&nbsp;Repurchased |  |  |
| Outstanding at June 30, 2025 | 3472546 | $0.06 |

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***Stock-Based Compensation***

The following table below summarizes the classification of the Company's stock-based compensation expense related to stock options and restricted common stock awards in the condensed consolidated statements of operations and comprehensive loss:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|<br>(in thousands) | **2025** | **2024** | **2025** | **2024** |
| Stock-based compensation expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | $3218 | $4221 | $6074 | $6946 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 3107 | 3870 | 5932 | 6354 |
| Total stock-based compensation expense | $6325 | $8091 | $12006 | $13300 |

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**9. Significant Agreements** 

The Company's significant agreements are disclosed in Note 9, *License and Collaboration Agreements*, in the audited consolidated financial statements for the year ended December 31, 2024, and notes thereto, included in the Company's Annual Report on Form 10-K that was filed with the SEC on February 28, 2025. Since the date of those financial statements, there have been no changes to the Company's significant agreements except those discussed below.

***Bristol-Myers Squibb — Related Party***

Supplemental information related to the BMS Collaboration Agreement consisted of the following:

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| | | |
|:---|:---|:---|
| (in thousands) | **June 30,<br>2025** | **December 31,<br>2024** |
| Collaboration receivable — related party | $120 | $— |
| Deferred revenue — related party | $8315 | $7092 |
| Deferred revenue, net of current — related party | $59562 | $63218 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(in thousands) | **2025** | **2024** | **2025** | **2024** |
| Revenue recognized that was included in contract liability at the beginning of the period | $1061 | $— | $2502 | $— |
| Revenue recognized from performance obligations fully or partially satisfied in previous periods | $5 | $— | $3 | $— |

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As of June 30, 2025, the aggregate amount of the transaction price allocated to performance obligations under the BMS Collaboration Agreement that are partially unsatisfied was $67.9 million. The Company recognizes the portion of the transaction price as the single performance obligation is satisfied, using an input method, in proportion to costs incurred to date as compared to total costs incurred and expected to be incurred in the future to satisfy the underlying obligation.

***Cystic Fibrosis Foundation***

In July 2025, the Company entered into an agreement with the Cystic Fibrosis Foundation ("CFF"), under which CFF has agreed to provide up to $24 million in additional funding to accelerate the development of Prime Editors designed to permanently correct cystic fibrosis-related lung disease. The $24 million funding will be provided in two equal tranches, subject to certain closing conditions and scientific milestones. The first tranche includes a $6 million equity investment in the Company, which was received as part of the August 2025 offering.

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CFF's additional investment builds on initial funding received under the Company's therapeutic development agreement with CFF in January 2024.

***Beam Collaboration Agreement — Related Party***

The Company is currently engaged in arbitration proceedings with Beam Therapeutics, Inc. ("Beam") regarding the parties' collaboration and license agreement (the "Agreement"). A dispute arose between the parties following the Company's March 18, 2025 announcement that it is developing a Prime Editing-based treatment for alpha-1 antitrypsin deficiency ("AATD"). On April 16, 2025, Beam filed an arbitration demand with the American Arbitration Association ("AAA"), alleging that the Company has breached the Agreement by developing a product for the treatment of AATD and by allegedly not complying with certain obligations to transfer technical information to Beam pursuant to the Agreement. Beam also makes related claims for trade secret misappropriation and various business torts based on similar allegations, including allegations made on information and belief. Beam seeks both declaratory, injunctive, and monetary relief, but has not yet quantified the amount of damages it seeks. On April 18, 2025, the Company filed an arbitration demand with the AAA seeking a declaration that the Company's AATD program is within our "Field" as defined by the Agreement. The arbitrations have been consolidated, and the consolidated proceeding remains in its early stages. If the final resolution of the matter is adverse to the Company, the arbitration panel may provide Beam with relief including, among other things, monetary damages and/or an order that the Company cease work on its AATD program and transfer such program to Beam.

**10. Net Loss per Share** 

Basic and diluted net loss per common share attributable to common stockholders was calculated as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|<br>(in thousands, except share and per share amounts) | **2025** | **2024** | **2025** | **2024** |
| Numerator: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to common stockholders | $(52591) | $(55327) | $(104481) | $(101088) |
| Denominator: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average common shares outstanding, basic and diluted | 129185918 | 119188866 | 128439349 | 111827522 |
| Net loss per share attributable to common stockholders, basic and diluted | $(0.41) | $(0.46) | $(0.81) | $(0.90) |

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Diluted net loss per share available to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, preferred stock, unvested restricted stock and stock options to purchase common stock were considered common stock equivalents but had been excluded from the calculation of diluted net loss per share available to common stockholders as their effect was anti-dilutive. In periods in which the Company reports a net loss available to common stockholders, diluted net loss per share available to common stockholders is the same as basic net loss per share available to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

The following common stock equivalents were excluded from the calculation of diluted net loss per share applicable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:

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| | | |
|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** |
| | **2025** | **2024** |
| Anti-dilutive common stock equivalents: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Options to purchase common stock | 17685319 | 12007443 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unvested restricted common stock | 3472546 | 3729877 |
| Total anti-dilutive common stock equivalents: | 21157865 | 15737320 |

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and notes and Management's Discussion and Analysis of Financial Condition and Results of Operations, included in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025. As discussed in the section titled "Special Note Regarding Forward-Looking Statements," the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, such as statements regarding our plans, objectives, expectations, intentions, or projections, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024. Our historical results are not necessarily indicative of the results that may be expected for any period in the future.*

**Overview**

We are a biotechnology company committed to delivering a new class of differentiated one-time curative genetic therapies. We are deploying Prime Editing technology, which we believe is a versatile, precise, and efficient gene editing technology.

Going forward, we will focus our resources on advancing our *in vivo* liver franchise, where we are advancing programs to cure two of the largest genetic liver diseases, Wilson's Disease and Alpha-1 Antitrypsin Deficiency, or AATD. Both programs are currently in late stages of pre-clinical development and are on track for IND and/or CTA filings in the first half of 2026 for Wilson's Disease and the middle of 2026 for AATD. We intend to leverage the modularity of our platform to expeditiously and efficiently develop these programs supported by our universal liver lipid nanoparticle along with potential regulatory, clinical and other synergies from our modular technology.

We will also continue our *in vivo* Cystic Fibrosis program with support from the Cystic Fibrosis Foundation, and our efforts to develop Prime Edited CAR-T products for hematology, immunology and oncology in partnership with Bristol-Myers Squibb Company. In addition, we will continue to pursue additional business development opportunities to accelerate innovation, ensure the broadest application of Prime Editing, and further bolster our financial resources.

For example, in July 2025, we announced that the Cystic Fibrosis Foundation has agreed to provide us with up to $24 million in additional funding to accelerate the development of Prime Editors designed to permanently correct cystic fibrosis-related lung disease. The Cystic Fibrosis Foundation's additional investment builds on initial funding received under our therapeutic development agreement with the Cystic Fibrosis Foundation in January 2024, and reflects its interest in Prime Editing as a potentially curative approach for cystic fibrosis. We intend to leverage the technology's versatility and modularity to address multiple disease-causing mutations, potentially treating the vast majority of people with cystic fibrosis. We will initially focus on a program targeting G542X, one of the most prevalent cystic fibrosis-causing nonsense mutations and one for which there are no available therapies. In addition, we will continue to advance hotspot and PASSIGE-based approaches for other mutations with funding received from the Cystic Fibrosis Foundation under its initial commitment in 2024.

We recently announced initial data from the first patient dosed in our Phase 1/2 trial in chronic granulomatous disease, or CGD. In this patient dosed, a single dose of PM359, our candidate for the treatment of CGD, led to 58% dihydrorhodamine positivity by Day 15, 66% by Day 30 and 71% by Day 60, exceeding levels of dihydrohomadine positivity believed to be potentially curative. In the second patient dosed in the trial, a single dose of PM359 led to a 70% dihydrorhodamine positivity by day 15 and 80% by day 30. In both patients, we also observed successful manufacturing from a single mobilization, no serious adverse events related to PM359 and rapid neutrophil and platelet engraftment when compared to other commercially available autologous genetic therapy benchmarks. We continue to believe PM359 has the potential to transform the care of p47phox CGD. We are planning to have regulatory interactions based on the current data set.

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**Components of Our Results of Operations**

***Revenues***

To date, we have not generated any revenue from product sales and do not expect to generate any revenue from the sale of products for the foreseeable future. Our revenues to date have been generated through research collaboration and license agreements. We recognize revenue over the expected performance period under each agreement. We expect that our revenue for the next several years will be derived primarily from our current collaboration agreements and any additional collaborations that we may enter into in the future. To date, we have not received any royalties under any of our existing collaboration agreements.

***Research and Development Expenses***

Research and development expenses consist primarily of costs incurred in connection with the development and research of our immediate target indications and our differentiation target indications. These expenses include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• personnel-related expenses, including salaries, bonuses, benefits and stock-based compensation for employees engaged in manufacturing, research and development functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses incurred in connection with continuing our current research programs and preclinical and clinical development of any product candidates we may identify, including under agreements with third parties, such as consultants and contractors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of developing and validating our manufacturing process for use in our preclinical and clinical studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laboratory supplies and research materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• facilities, depreciation and other expenses related to research and development activities, which include direct or allocated expenses for rent and maintenance of facilities, and utilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost allocated to acquire in-process research and development, with no alternative future use associated with asset acquisitions or transactions to license intellectual property, such as our Broad License Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses incurred in connection with our Pledge to Broad Institute.

We expense all research and development costs in the periods in which they are incurred. Most of our research and development expenses have been related to early stage development activities. In the future, external research and development costs for any individual product candidate will be tracked commencing upon product candidate nomination. We do not allocate employee costs, costs associated with our discovery efforts, laboratory supplies, and facilities expenses, including depreciation or other indirect costs, to specific product development programs because these costs are deployed across multiple programs and our platform and, as such, are not separately classified.

Upfront and milestone payments made are accrued for and expensed when the achievement of the milestone is probable up to the point of regulatory approval. Milestone payments made upon regulatory approval will be capitalized and amortized over the remaining useful life of the related product.

We expect our research and development expenses to continue to increase substantially for the foreseeable future with our planned research and development activities related to developing any future product candidates, including investments in manufacturing, as we advance any product candidates we may identify and begin to conduct clinical trials, and with our obligations under the BMS Collaboration Agreement.

***General and Administrative Expenses***

General and administrative expenses consist of salaries and personnel-related costs, including stock-based compensation, for our personnel in executive, legal, finance and accounting, human resources and other administrative functions. General and administrative expenses also include legal fees relating to patents and

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corporate matters; professional fees paid for accounting, auditing, consulting and tax service; insurance costs; office and information technology costs; and facilities, depreciation and other general and administrative expenses, which include direct or allocated expenses for rent and maintenance of facilities and utilities.

We anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support research and development activities; increased accounting, legal, insurance, and investor and public relations costs as we continue to operate as a public company; and additional intellectual property-related expenses as we file patent applications to protect innovations arising from our research and development activities.

***Other Income (Expense)***

Other income (expense), net primarily consists of interest and other income earned on our short-term investments and the change in the fair value of our short-term investment in Beam Therapeutics Inc. ("Beam"), a related party, in connection with the Beam Collaboration Agreement, which is discussed in greater detail in Note 9, *License and Collaboration Agreements*, to the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024.

**Results of Operations**

**Comparison of the Three Months Ended June 30, 2025 and 2024**

***Operating Expenses***

*Research and Development Expenses*

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | |
| <br>(in thousands) | **2025** | **2024** | <br>**Change** |
| Research and development expenses: |  |  |  |
| &nbsp;&nbsp;Personnel expenses | $14448 | $16198 | $(1750) |
| &nbsp;&nbsp;Facility related | 13765 | 11302 | 2463 |
| &nbsp;&nbsp;Research costs | 8116 | 11390 | (3274) |
| &nbsp;&nbsp;License, intellectual property fees, and other | 2812 | 1250 | 1562 |
| &nbsp;&nbsp;Professional and consultant fees | 1660 | 1281 | 379 |
| &nbsp;&nbsp;Clinical expense | 574 | 1650 | (1076) |
| Total research and development expenses | $41375 | $43071 | $(1696) |

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The $1.7 million decrease in research and development expense for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 was primarily driven by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $3.3 million decrease in research costs due to the deprioritization of our CGD programs as we strategically focus our internal efforts on advancing our *in vivo* liver franchise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.8 million decrease in personnel expenses, driven primarily by a decrease of $1.0 million in stock-based compensation expense and fewer R&D personnel resulting from workforce reduction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.1 million decrease in clinical expenses due to the deprioritization of our CGD programs and discontinuation of our efforts to independently advance our PM359 program to focus on our liver franchise and programs funded through external partnerships.

These were offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2.5 million increase in facility-related expense primarily due to the expansion and build out of our laboratory space at 60 First Street and 500 Arsenal Street; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.6 million increase in license and IP costs as we advance our *in vivo* liver franchise and pipeline.

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*General and Administrative Expenses*

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | |
| <br>(in thousands) | **2025** | **2024** | <br>**Change** |
| General and administrative expenses: |  |  |  |
| &nbsp;&nbsp;Personnel expenses | $7082 | $6956 | $126 |
| &nbsp;&nbsp;Professional and consultant fees | 3956 | 2821 | 1135 |
| &nbsp;&nbsp;Facility related and other | 2079 | 2824 | (745) |
| Total general and administrative expenses | $13117 | $12601 | $516 |

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The $0.5 million increase in general and administrative expense for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 is primarily driven by a $1.1 million increase in professional and consultant fees due to an increase in corporate legal expenses.

***Other Income (Expense)***

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | |
| <br>(in thousands) | **2025** | **2024** | <br>**Change** |
| &nbsp;&nbsp;Other income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $743 | $611 | $132 |
| &nbsp;&nbsp;&nbsp;Accretion (amortization) of investments | 530 | 1486 | (956) |
| &nbsp;&nbsp;&nbsp;Change in fair value of short-term investment — related party | (505) | (1925) | 1420 |
| &nbsp;&nbsp;&nbsp;Other income, net | 18 | 39 | (21) |
| Total other income, net | $786 | $211 | $575 |

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*Change in Fair Value of Related Party Short-Term Investment*

The change in fair value of related party short-term investment for each of the periods presented is a result of Beam's stock price movement.

**Comparison of the Six Months Ended June 30, 2025 and 2024**

***Operating Expenses***

*Research and Development Expenses*

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | |
|<br>(in thousands) | **2025** | **2024** |<br>**Change** |
| Research and development expenses: |  |  |  |
| &nbsp;&nbsp;Personnel expenses | $29248 | $31205 | $(1957) |
| &nbsp;&nbsp;Facility related | 24734 | 18636 | 6098 |
| &nbsp;&nbsp;Research costs | 19152 | 23009 | (3857) |
| &nbsp;&nbsp;License, intellectual property fees, and other | 4237 | 2925 | 1312 |
| &nbsp;&nbsp;Professional and consultant fees | 2819 | 2873 | (54) |
| &nbsp;&nbsp;Clinical expense | 1747 | 2197 | (450) |
| Total research and development expenses | $81937 | $80845 | $1092 |

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The $1.1 million increase in research and development expense for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 was primarily driven by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $6.1 million increase in facility-related expense primarily due to the expansion and build out of our laboratory space at 60 First Street and 500 Arsenal Street; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.3 million increase in license and IP costs as we advance our *in vivo* liver franchise and pipeline.

This is offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $3.9 million decrease in research costs due to the deprioritization of our CGD programs as we strategically focus our internal efforts on advancing our *in vivo* liver franchise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2.0 million decrease in personnel expenses, driven primarily by a decrease of $0.9 million in stock-based compensation expense and fewer R&D personnel resulting from the workforce reduction.

*General and Administrative Expenses*

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | |
|<br>(in thousands) | **2025** | **2024** |<br>**Change** |
| General and administrative expenses: |  |  |  |
| &nbsp;&nbsp;Personnel expenses | $14238 | $12840 | $1398 |
| &nbsp;&nbsp;Professional and consultant fees | 7228 | 5931 | 1297 |
| &nbsp;&nbsp;Facility related and other | 4935 | 4988 | (53) |
| Total general and administrative expenses | $26401 | $23759 | $2642 |

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The $2.6 million increase in general and administrative expense for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 is primarily driven by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.4 million increase in personnel expenses in connection with the reduction in force, primarily consisting of one-time severance payments and other employee termination-related expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.3 million increase in professional and consultant fees due an increase in corporate legal expenses.

***Other Income (Expense)***

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | |
|<br>(in thousands) | **2025** | **2024** |<br>**Change** |
| &nbsp;&nbsp;Other income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $1925 | $1287 | $638 |
| &nbsp;&nbsp;&nbsp;Accretion (amortization) of investments | 869 | 2316 | (1447) |
| &nbsp;&nbsp;&nbsp;Change in fair value of short-term investment — related party | (1561) | (759) | (802) |
| &nbsp;&nbsp;&nbsp;Other income, net | 55 | 81 | (26) |
| Total other income, net | $1288 | $2925 | $(1637) |

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*Accretion (amortization of investments*

Accretion (amortization) of investments for each of the periods presented is a result of increase (decrease) in the value of the our marketable securities purchased at a discount (premium) to their face value.

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**Liquidity and Capital Resources**

Since our inception, we have incurred significant operating losses. We expect to incur significant expenses and operating losses for the foreseeable future as we advance the preclinical development of our current research programs, commence the clinical development of any product candidates we may identify, and continue our platform development and early-stage research activities. We have not yet commercialized any products and we do not expect to generate revenue from sales of products for several years, if at all. To date, we have funded our operations primarily with proceeds from sales of preferred stock and from our public offerings and through payments from our collaboration partners. As of June 30, 2025, we had cash, cash equivalents, and investments of $101.8 million, excluding our restricted cash, or $115.4 million, including restricted cash.

In November 2023, we entered into an Open Market Sale Agreement<sup>SM</sup> (the "Sales Agreement") with Jefferies LLC ("Jefferies") under which we may, from time to time, issue and sell shares of our common stock having aggregate sales proceeds of up to $300.0 million, in a series of one or more at-the-market equity offerings (the "ATM Program"). Effective July 30, 2025, we terminated the sales agreement prospectus (the "ATM Prospectus") filed with the shelf registration statement on Form S-3 (File No. 333-275321) and related to the shares of our common stock issuable pursuant to the Sales Agreement. As a result, we will not make any sales of our common stock pursuant to the Sales Agreement, unless and until a new prospectus, prospectus supplement or a new registration statement is filed. Other than the termination of the ATM Prospectus, the Sales Agreement remains in full force and effect. As of the date of this Quarterly Report on Form 10-Q, we have not sold any shares of common stock under the 2023 ATM program.

In August 2025, we issued and sold 43,700,000 shares of our common stock, including 5,700,000 shares pursuant to the exercise of the underwriters' option to purchase additional shares, at a price to the public of $3.30 per share. As a result of the offering, we received approximately $138.2 million in net proceeds, after deducting underwriting discounts, commissions and offering costs of approximately $6.0 million.

***Cash Flows***

The following table summarizes our sources and uses of cash for each of the periods presented:

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| | | |
|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|<br>(in thousands) | **2025** | **2024** |
| Net change in cash, cash equivalents and restricted cash: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | $(90269) | $(113198) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (44971) | (30138) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 6197 | 157362 |
| Net change in cash, cash equivalents, and restricted cash | $(129043) | $14026 |

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*Operating Activities* 

Net cash used in operating activities for the six months ended June 30, 2025 was driven primarily by the following uses of cash:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $104.5 million net loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2.4 million change in deferred revenue — related party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2.1 million change in lease liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.7 million change in accrued expenses and other current liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $1.5 million change in accounts payable.

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These were offset by $21.3 million of non-cash amounts included in net loss, which primarily consisted of stock-based compensation expense, non-cash lease expense, depreciation expense, and change in fair value of short-term investment — related party.

Net cash used in operating activities for the six months ended June 30, 2024 was driven primarily by the following uses of cash:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $101.1 million net loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $13.5 million change in accrued settlement payment — related party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $9.2 million change in accounts payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $5.7 million change in lease liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $3.9 million change in accrued expenses and other current liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2.5 million change in prepaid and other current assets.

These were offset by $22.8 million of non-cash amounts included in net loss, which primarily consisted of stock-based compensation expense, non-cash lease expense, and depreciation expense.

*Investing Activities* 

Net cash used in investing activities for the six months ended June 30, 2025 was driven primarily by the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $41.0 million of purchases of marketable securities, net of maturities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $4.0 million of purchases of property and equipment.

Net cash used in investing activities for the six months ended June 30, 2024 was driven primarily by the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $25.9 million of purchases of marketable securities, net of maturities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $4.2 million of purchases of property and equipment.

*Financing Activities* 

Net cash provided by financing activities for the six months ended June 30, 2025 was driven by $6.0 million of proceeds received under our agreement with Cystic Fibrosis Foundation.

Net cash provided by financing activities for the six months ended June 30, 2024 was driven primarily by the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $132.1 million of proceeds from issuances of common stock in our February 2024 public offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $18.8 million of proceeds from issuance of pre-funded warrants contemporaneous with our February 2024 public offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $6.0 million of proceeds received under our agreement with Cystic Fibrosis Foundation.

***Funding Requirements***

To date, we have not generated any revenue from product sales. We do not expect to generate revenue from product sales unless and until we successfully complete preclinical and clinical development of, receive regulatory approval for, and commercialize a product candidate and we do not know when, or if at all, that will occur. We expect our expenses to increase in connection with our ongoing activities, particularly as we advance the preclinical activities and studies and initiate clinical trials. In addition, if we obtain regulatory approval for any product candidates, we expect to incur significant expenses related to product sales, marketing, and distribution to the extent that such sales,

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marketing and distribution are not the responsibility of potential collaborators. Further, we have incurred, and expect to continue to incur, costs associated with operating as a public company. The timing and amount of our operating expenditures will depend largely on the factors set out above. For more information, refer to the section titled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, and the "Risk Factors" section of subsequent Quarterly Reports on Form 10-Q.

We believe our existing cash, cash equivalents, and investments, including funds from our August 2025 offering, will be sufficient to fund our operating expenses and capital expenditure requirements into 2027. We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect. We expect that we will require additional funding to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continue our current research development activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identify product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluate strategic alternatives and potential partnership opportunities for PM359, including our ability to execute and realize the anticipated benefits of any strategic alternatives we may pursue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• develop, maintain, expand and protect our intellectual property portfolio and defend intellectual property-related claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain existing collaborations or strategic relationships and identify and enter into future license agreements and collaborations with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• initiate preclinical testing and clinical trials for our future product candidates we identify;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• further develop our Prime Editing platform; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hire additional personnel to support our strategic priorities.

If we receive regulatory approval for any of our product candidates, we expect to incur significant commercialization expenses related to product manufacturing, sales, marketing and distribution, depending on where we choose to commercialize ourselves.

Until such time, if ever, as we can generate substantial product revenue, we expect to finance our cash needs through a combination of private and public equity offerings, debt financings, additional collaborations, strategic alliances, and marketing, distribution or licensing arrangements with third parties. To the extent that we raise additional capital through the sale of equity or convertible debt securities, ownership interest may be materially diluted, and the terms of such securities could include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt and equity financing, if available, may involve agreements that include restrictive covenants that limit our ability to take specified actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise funds through collaborations, strategic alliances or marketing, or distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, any future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings or other arrangements when needed, we may be required to delay, reduce or eliminate our product development or future commercialization efforts, or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.

**Contractual Obligations and Other Commitments**

We enter into contracts in the normal course of business with contract organizations and other vendors to assist in the performance of our research and development activities, and other services and products for operating purposes. These contracts generally provide for termination on notice, and therefore are cancellable contracts and not included in the table of contractual obligations and commitments.

During the six months ended June 30, 2025, except for the minimum lease commitments disclosed in Note 6, *Leases*, to the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q, there

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were no significant changes to our contractual obligations and commitments described under Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024.

**Critical Accounting Policies and Significant Judgments and Estimates**

Our management's discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses incurred during the reporting periods. We base our estimates on historical experience, known trends and events, and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities recorded revenues and expenses that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Actual results may differ from these estimates.

During the six months ended June 30, 2025, there were no material changes to our critical accounting policies and significant judgements described under Management's Discussion and Analysis of Critical Accounting Policies and Significant Judgments and Estimates which are included in our Annual Report on Form 10-K for the year ended December 31, 2024.

**Recently Issued and Adopted Accounting Pronouncements**

A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2, *Summary of Significant Accounting Policies*, to our audited financial statements for the year ended December 31, 2024, and notes thereto, included in our Annual Report on Form 10-K and in this Quarterly Report on Form 10-Q.

**Emerging Growth Company Status**

The Jumpstart Our Business Startups Act of 2012 permits an "emerging growth company" such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. We have elected not to "opt out" of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we will adopt the new or revised standard at the time private companies adopt the new or revised standard and will do so until such time that we either (i) irrevocably elect to "opt out" of such extended transition period or (ii) no longer qualify as an emerging growth company. As a result of this election, our condensed consolidated financial statements may not be comparable to other public companies that comply with new or revised accounting pronouncements as of public company effective dates. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

***Interest Rate Risk***

We are exposed to market risk related to changes in interest rates of our investment portfolio of cash equivalents and investments. As of June 30, 2025, we held cash, cash equivalents, investments, and restricted cash of $115.4 million, which consisted of cash, money market funds, equity securities, and debt securities. Our primary exposure to market risk is interest income sensitivity, which is affected by changes in the general level of U.S. interest rates. The fair value of our cash equivalents, consisted of our money market funds, and investments are subject to change as a result of potential changes in market interest rates. Due to the short-term maturities of our cash equivalents and investments and the low risk profile of our investments, an immediate 10 percent change in interest rates would not have a material effect on the fair market value of our cash equivalents or investments.

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***Effects of Inflation***

Inflation generally affects us by increasing our cost of labor and research and development costs. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future (especially if inflation rates continue to rise) due to an impact on the costs to conduct research and development, labor costs we incur to attract and retain qualified personnel, and other operational costs. Inflationary costs could adversely affect our business, financial condition and results of operations.

**Item 4. Controls and Procedures**

We have established disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and is accumulated and communicated to management, including our Chief Executive Officer (who serves as both our principal executive officer and principal financial officer), to allow timely decisions regarding required disclosure. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

***Internal Control over Financial Reporting***

*Disclosure Controls and Procedures*

Our management, with the participation of our Chief Executive Officer (who serves as both our principal executive officer and principal financial officer), evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, our Chief Executive Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our disclosure controls and procedures have been designed to provide reasonable assurance of achieving their objectives.

*Changes in Internal Control Over Financial Reporting*

There were no changes in our internal control over financial reporting that occurred during the three months ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**Part II - Other Information**

**Item 1. Legal Proceedings**

We are currently engaged in arbitration proceedings with Beam Therapeutics, Inc. ("Beam") regarding the parties' collaboration and license agreement (the "Agreement"). A dispute arose between the parties following our March 18, 2025 announcement that we are developing a Prime Editing-based treatment for alpha-1 antitrypsin deficiency ("AATD"). On April 16, 2025, Beam filed an arbitration demand with the American Arbitration Association ("AAA"), alleging that we have breached the Agreement by developing a product for the treatment of AATD and by allegedly not complying with certain obligations to transfer technical information to Beam pursuant to the Agreement. Beam also makes related claims for trade secret misappropriation and various business torts based on similar allegations, including allegations made on information and belief. Beam seeks both declaratory, injunctive, and monetary relief, but has not yet quantified the amount of damages it seeks. On April 18, 2025, we filed an arbitration demand with the AAA seeking a declaration that our AATD program is within our "Field" as defined by the Agreement. The arbitrations have been consolidated, and the consolidated proceeding remains in its early stages. If the final resolution of the matter is adverse to us, the arbitration panel may provide Beam with relief including, among other things, monetary damages and/or an order that we cease work on our AATD program and transfer such program to Beam.

**Item 1A. Risk Factors** 

*Investing in our common stock involves a high degree of risk. For a detailed discussion of the risks and uncertainties related to our business, please refer to the section titled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes from the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, except as set forth below.*

***Healthcare and other reform legislation may increase the difficulty and cost for us and any collaborators we may have to obtain marketing approval of and commercialize any product candidates we may develop and affect the prices we, or they, may obtain.***

In the United States and some foreign jurisdictions, there have been and continue to be ongoing efforts to implement legislative and regulatory changes regarding the healthcare system. Such changes could prevent or delay marketing approval of any product candidates that we may develop, restrict or regulate post-approval activities and affect our ability to profitably sell any product candidates for which we obtain marketing approval. Although we cannot predict what healthcare or other reform efforts will be successful, such efforts may result in more rigorous coverage criteria, in additional downward pressure on the price that we, or our future collaborators, may receive for any approved products or in other consequences that may adversely affect our ability to achieve or maintain profitability.

Within the United States, the federal government and individual states have aggressively pursued healthcare reform, as evidenced by the passing of the Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (the "ACA"), and the ongoing efforts to modify or repeal that legislation. The ACA substantially changed the way healthcare is financed by both governmental and private insurers and contains a number of provisions that affect coverage and reimbursement of drug products and/or that could potentially reduce the demand for pharmaceutical products such as increasing drug rebates under state Medicaid programs for brand name prescription drugs and extending those rebates to Medicaid managed care and assessing a fee on manufacturers and importers of brand name prescription drugs reimbursed under certain government programs, including Medicare and Medicaid. Other aspects of healthcare reform, such as expanded government enforcement authority and heightened standards that could increase compliance-related costs, could also affect our business. Modifications have been implemented under the former Trump administration and additional modifications or repeal may occur.

The continuing efforts of the government, insurance companies, managed care organizations and other payers of healthcare services to contain or reduce costs of healthcare may adversely affect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the demand for any of our product candidates, if approved;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to set a price that we believe is fair for any of our product candidates, if approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to generate revenues and achieve or maintain profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of taxes that we are required to pay; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of capital.

Legislative and regulatory proposals have been made to expand post-approval requirements and restrict sales and promotional activities for pharmaceutical and biologic products. We cannot be sure whether additional legislative changes will be enacted, or whether FDA regulations, guidance or interpretations will be changed, or what the impact of such changes on the marketing approvals of our product candidates, if any, may be. In addition, increased scrutiny by Congress of the FDA's approval process may significantly delay or prevent marketing approval, as well as subject us to more stringent product labeling and post-marketing testing and other requirements.

Moreover, increasing efforts by governmental and third-party payors in the United States and abroad to cap or reduce healthcare costs may cause such organizations to limit both coverage and the level of reimbursement for newly approved products and, as a result, they may not cover or provide adequate payment for our product candidates. There has been increasing legislative and enforcement interest in the United States with respect to specialty drug pricing practices. Specifically, there have been several recent U.S. Congressional inquiries and proposed and enacted federal and state legislation designed to, among other things, bring more transparency to drug pricing, reduce the cost of prescription drugs under Medicare, review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies for drugs. For example, the Inflation Reduction Act of 2022 (the "IRA") that was signed into law in August 2022, contains several provisions that are intended to limit prices of pharmaceutical and biologic products, including creating a $2,000 out-of-pocket cap for Medicare Part D beneficiaries, imposing new manufacturer financial liability on all drugs in Medicare Part D, allowing the U.S. government to negotiate Medicare Part B and Part D pricing for certain high-cost pharmaceutical and biologic drugs without generic or biosimilar competition, requiring companies to pay rebates to Medicare for drug prices that increase faster than inflation, and delaying until January 1, 2032 the implementation of the U.S. Department of Health and Human Services ("HHS") rebate rule that would have limited the fees that pharmacy benefit managers can charge. Further, under the IRA, orphan drugs were previously exempted from the Medicare drug price negotiation program; however, this exemption was restricted to drugs with only one orphan designation and for which the only approved indication is for that disease or condition. If a product received multiple orphan designations or had multiple approved indications, it would not qualify for the orphan drug exemption. Under the One Big Beautiful Bill Act of 2025, this restriction was eliminated; and effective for the 2028 initial price applicability year, all orphan drugs, regardless of the number of orphan designations or indications, are exempt from the Medicare drug price negotiation program. The effects of the IRA on our business and the healthcare industry in general is not yet known.

On April 15, 2025, the Trump Administration published Executive Order 14273, "Lowering Drug Prices by Once Again Putting Americans First," which generally directs the HHS to take measures to reduce drug prices, including eliminating the so-called "pill penalty" under the IRA that creates a distinction between small molecule and large molecule products for purposes of determining when a drug may be eligible for drug price negotiation. On May 12, 2025, the Trump Administration published Executive Order 14297, "Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients" which generally, among other things, directs certain executive officials to establish and communicate most-favored-nation price targets to pharmaceutical manufacturers to bring prices for American patients in line with comparably developed nations. Further, the Executive Order directs the federal government to support regulatory paths to allow direct-to-patient sales for companies that meet these targets. It also states that the Administration will take additional aggressive action (for example, examining whether marketing approvals should be modified or rescinded or opening the door for individual drug importation waivers) should manufacturers fail to offer American consumers the most-favored-nation lowest price. It also directs the Secretary of Commerce and the U.S. Trade Representative to "take all necessary and appropriate action to ensure foreign countries are not engaged in any act, policy, or practice that may be unreasonable or discriminatory or that may impair United States national security . . . including by suppressing the price of pharmaceutical products below fair market value in foreign countries." Notably, a similar "Most Favored Nation" pricing rule enacted under the first

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Trump Administration was subject to an injunction resulting from judicial challenges to the rule, which was formally rescinded by the former Biden Administration in August 2021.

In addition, at the state level, legislatures have increasingly passed legislation and implemented regulations similar to those under consideration at the federal level, as well as laws designed to control pharmaceutical and biotherapeutic product pricing, including restrictions on pricing or reimbursement at the state government level, limitations on discounts to patients, marketing cost disclosure and transparency measures, restrictions or other limitations on patient assistance, and, in some cases, policies to encourage importation from other countries (subject to federal approval) and bulk purchasing. Certain states are also pursuing cost containment efforts through Prescription Drug Affordability Boards and similar entities.

We expect that the healthcare reform measures that have been adopted and may be adopted in the future may result in more rigorous coverage criteria and in additional downward pressure on the price that we receive for any approved product and could seriously harm our future revenues. We cannot be sure whether additional legislative changes will be enacted, or whether FDA regulations, guidance or interpretations will be changed, or what the impact of such changes on the marketing approvals of our products and future product candidates, if any, may be. In addition, increased scrutiny by Congress of the FDA's approval process may significantly delay or prevent marketing approval, as well as subject us to more stringent product labeling and post-marketing testing and other requirements. Any reduction in reimbursement from Medicare or other government programs may result in a similar reduction in payments from private payors. The implementation of cost containment measures or other healthcare reforms may prevent us from being able to generate revenue, attain profitability or commercialize our products.

***The U.S. Congress, the Trump administration, or any new administration may make substantial changes to fiscal, tax, and other federal policies that may adversely affect our business.***

Since the start of the Trump Administration in 2025, U.S. policy changes have been implemented at a rapid pace and additional changes are likely. For example, the U.S. government has adopted new approaches to trade policy and in some cases may renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements. The U.S. government has also imposed substantial tariffs on most countries throughout the world and has further threatened to continue to broadly impose tariffs, which could lead to corresponding punitive actions by the countries with which the U.S. trades. While certain tariffs have subsequently been suspended, modified or temporarily reduced, we cannot predict the results of the U.S. government's trade negotiations or the outcome of ongoing legal challenges to specific tariff policies. Changes to U.S. policy implemented by the U.S. Congress, the Trump administration or any new administration have impacted and may in the future impact, among other things, the U.S. and global economy, international trade relations, unemployment, immigration, healthcare, taxation, the U.S. regulatory environment, inflation and other areas. Although we cannot predict the impact, if any, of these changes to our business, they could adversely affect our business. Until we know what policy changes are made, whether those policy changes are challenged and subsequently upheld by the court system and how those changes impact our business and the business of our competitors over the long term, we will not know if, overall, we will benefit from them or be negatively affected by them.

***Changes in tax laws or in their implementation or interpretation may adversely affect our business and financial condition.***

The rules dealing with U.S. federal, state and local income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service, the U.S. Treasury Department and non-U.S. taxing authorities. For example, the One Big Beautiful Bill Act (the "OBBBA") was signed into law on July 4, 2025 and made significant changes to U.S. federal tax law. Changes to tax laws (which changes may have retroactive application) could adversely affect our business and our financial condition. For example, under Section 174 of the Internal Revenue Code of 1986, as amended, in taxable years beginning after December 31, 2021, expenses that are incurred for research and development performed outside the U.S. will be capitalized and amortized, which may have an adverse effect on our cash flow. The OBBBA provides that for taxable years beginning after December 31, 2024, expenses that are incurred for research and development performed in the U.S. may, at the taxpayer's election, be immediately deducted or capitalized and amortized. In addition, the OBBBA provides that for taxable years beginning after December 31, 2021 and before January 1, 2025, certain eligible taxpayers generally may elect to

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retroactively deduct expenses for research and development performed in the U.S. in such taxable years by filing amended tax returns for such taxable years, and all other taxpayers that are not eligible to make such an election and that amortized expenses for research and development performed in the U.S. in such taxable years generally may elect to accelerate and deduct the remaining unamortized amounts of such research and development expenses (i) in the first taxable year beginning after December 31, 2024, or (ii) ratably over the two-taxable year period beginning with the first taxable year beginning after December 31, 2024. In recent years, many such changes have been made and changes are likely to continue to occur in the future. We cannot predict whether, when, in what form or with what effective dates, tax laws, regulations and rulings may be enacted, promulgated or decided or whether they could increase our tax liability or require changes in the manner in which we operate in order to minimize increases in our tax liability.

***Our future success depends on our ability to retain our key employees and to attract, retain and motivate qualified personnel.***

We are highly dependent on our key executives and other principal members of our management, scientific and clinical team. Although we have entered into employment agreements and/or offer letters with our executive officers, they are engaged "at will," meaning we or they may terminate the relationship at any time. We do not maintain "key person" insurance for any of our executives or other employees. The loss of the services of any of these persons could impede the achievement of our research, development and commercialization objectives.

Recruiting and retaining qualified scientific, clinical, manufacturing and sales and marketing personnel will also be critical to our success. In addition, our company-building efforts and establishment of a company culture will also be important to developing an innovative company in a high-evolving area. We may not be able to succeed in these efforts to build Prime Medicine as an attractive and exciting place to build a career or to attract and retain these types of personnel on acceptable terms given the competition among numerous pharmaceutical and biotechnology companies for similar personnel. We also experience competition for the hiring of scientific and clinical personnel from universities and research institutions. In addition, we rely on consultants and advisors, including scientific and clinical advisors, to assist us in formulating our research and development and commercialization strategy. Our consultants and advisors, may be employed by employers other than us and may have commitments under consulting or advisory contracts with other entities that may limit their availability to us. The inability to recruit, or loss of services of, certain executives, key employees, consultants or advisors, may impede the progress of our research, development and commercialization objectives and have a material adverse effect on our business, financial condition, results of operations and prospects.

To motivate and retain qualified employees, executive officers and directors who we believe best represent our Company values and can make meaningful contributions towards achieving our purpose of delivering a new class of differentiated one-time curative genetic therapies to address the widest spectrum of diseases by deploying our Prime Editing technology, in addition to salary and cash incentives, as applicable, we have provided stock options that vest over time. The value to employees and directors of stock options that vest over time may be significantly affected by movements in our stock price that are beyond our control and may at any time be insufficient to counteract more lucrative offers from other companies. To the extent our stock price declines, our ability to incentivize, retain or attract qualified talent could be negatively impacted. For example, in recent years, the stock market in general, and the market for pharmaceutical and biotechnology companies in particular, has experienced extreme price and volume fluctuations, often unrelated or disproportionate to changes in the operating performance of the affected companies. As a biotechnology company, the market price of our common stock has historically been volatile, reflecting the risks and uncertainties inherent in the development of product candidates. Since 2024, the market price of our common stock has experienced material fluctuations and declined from a high of approximately $9.39 on February 27, 2024 to a low of approximately $1.15 on April 8, 2025. As a result, certain of our employees and directors now hold options with exercise prices meaningfully above the recent trading range of our common stock (often referred to as "underwater" or "out-of-the-money"), rendering the options a less effective means of incentivizing and retaining such holders.

We also recently announced a strategic restructuring, including the deprioritization of our CGD programs, as well as a cost and workforce reduction to focus on our liver franchise and programs funded through external partnerships, placing additional pressure on the retention of qualified talent. Although we continue to believe that stock options

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are an important component of the Company's compensation program, underwater options may be perceived by their holders as having little or no incentive or retention value due to the disparity between the exercise prices and the current stock price. To provide added incentives to retain and motivate key contributors and to improve morale among our employees and directors to ensure alignment and motivation to execute on the Company's reprioritized strategy, our stockholders approved a one-time repricing of certain outstanding stock options that have been granted under our 2019 Stock Option and Grant Plan and/or the 2022 Stock Option and Incentive Plan at the special meeting of stockholders held on August 1, 2025. Despite this, we may have difficulty retaining key personnel, which could adversely affect our business and further development of our product candidates.

***If conflicts arise between us and our collaborators or strategic partners, these parties may act in a manner adverse to us and could limit our ability to implement our strategies or we could lose license rights that are important to our business.***

We are and expect to continue to be reliant upon certain patent rights and proprietary technology we have licensed from third parties that may be important or necessary to the development of our Prime Editing technology and product candidates. If conflicts arise between our corporate or academic collaborators or strategic partners and us, the other party may act in a manner adverse to us and could limit our ability to implement our strategies or we could lose license rights that are important to our business. For instance, we have entered into license and collaboration agreements with Beam and Broad Institute related to the research, development, delivery, manufacturing, and commercialization of Prime Editing technology and certain product candidates we may develop.

The agreements under which we currently license intellectual property rights from Beam and Broad Institute are complex, and certain provisions in such agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that may arise under our existing license agreements or future license agreements into which we may enter could narrow what we believe to be the scope of our rights to the relevant intellectual property or technology or broaden what we believe to be the scope of the licensor's rights to our intellectual property and technology, or increase what we believe to be our financial or other obligations under the relevant agreement, any of which could have a material adverse effect on our business, financial condition, results of operations and prospects. For example, we have exclusively licensed and sublicensed certain of our owned and licensed intellectual property rights to Beam pursuant to a license and collaboration agreement, or the Beam Collaboration Agreement, in certain fields. The parties have presented differing contractual interpretations, the resolution of which could expand the field of exclusivity or other rights that we believe were granted to Beam and therefore, narrow what we believe to be our field of exclusivity or rights with respect to such licensed intellectual property rights.

For example, we are currently engaged in arbitration proceedings with Beam regarding the Beam Collaboration Agreement. A dispute arose between the parties following our March 18, 2025 announcement that we are developing a Prime Editing-based treatment for AATD. On April 16, 2025, Beam filed an arbitration demand with the American Arbitration Association, or the AAA, alleging that we have breached the Beam Collaboration Agreement by developing a product for the treatment of AATD and by allegedly not complying with certain obligations to transfer technical information to Beam pursuant to the Beam Collaboration Agreement. On April 18, 2025, we filed an arbitration demand with the AAA seeking a declaration that our AATD program is within our "Field" as defined by the Beam Collaboration Agreement. The arbitrations have been consolidated, and the consolidated proceeding remains in its early stages. If the final resolution of the matter is adverse to us, the arbitration panel may provide Beam with relief including, among other things, monetary damages and/or an order that we cease work on our AATD program and transfer such program to Beam. Such a relief could have a material adverse effect on our competitive position, business, financial condition, results of operations and growth prospects.

***Our strategic restructuring and the associated workforce reduction announced in May 2025 may not result in anticipated cost savings, could result in total costs and expenses that are greater than expected and could disrupt our business.***

In May 2025, we announced a strategic restructuring, including the deprioritization of our CGD programs, to focus on our liver franchise and programs funded through external pipelines. The strategic restructuring includes cost reduction measures and reduction of our organizational headcount by approximately 25%, which are designed to

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significantly decrease our operating expenses and cash burn, reducing anticipated cash needs by almost half through 2027. The estimates of the charges and cash expenditures that we expect to incur in connection with the strategic restructuring and related workforce reduction, and the timing thereof, are subject to a number of assumptions, and we may incur costs that are greater than we currently expect. We may not realize, in full or in part, the anticipated benefits, savings and improvements in our operating structure from our new strategic efforts due to unforeseen difficulties, delays or unexpected costs. If we are unable to realize the expected operational efficiencies and cost savings from the strategic restructuring, our results of operation and financial condition would be adversely affected. We also cannot guarantee that we will not have to undertake additional workforce reductions or related activities in the future. Such cost reduction efforts may in the future adversely affect our ability to attract and retain employees, and may adversely affect our culture and impact our ability to effectively pursue our business strategy. Furthermore, our strategic restructuring may be disruptive to our operations. For example, our workforce reductions could yield unanticipated consequences, such as attrition beyond planned staff reductions, increased difficulties in our day-to-day operations and reduced employee morale. If employees who were not affected by the reduction in force seek alternate employment, this could result in us seeking contract support which may result in unplanned additional expense or harm our productivity. Our workforce reductions could also harm our ability to attract and retain qualified management, scientific, and clinical personnel who are critical to our business. Any failure to attract or retain qualified personnel could prevent us from successfully developing our product candidates in the future.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

Set forth below is information regarding shares of equity securities sold, and options granted, by us during the three months ended June 30, 2025 that were not registered under the Securities Act.

***Recent Sales of Unregistered Equity Securities***

None.

***Issuer Purchases of Equity Securities***

None.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not Applicable.

**Item 5. Other Information**

***Rule 10b5-1 Trading Arrangements***

From time to time, our officers (as defined in Rule 16a–1(f)) and directors may enter into Rule 10b5-1 or non-Rule 10b5-1 trading arrangements (as each such term is defined in Item 408 of Regulation S-K). During the three months ended June 30, 2025, none of the Company's directors or officers adopted, modified or terminated a plan or other arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K).

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**Item 6. Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Exhibits.

---

| | |
|:---|:---|
| **Exhibit number** | **Exhibit table** |
| 3.1 | <u>[Third Amended and Restated Certificate of Incorporation of Prime Medicine, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed with the SEC on October 24, 2022).](https://www.sec.gov/Archives/edgar/data/1894562/000162828022026895/exhibit31-closing8xk.htm)</u> |
| 3.2 | <u>[Certificate of Amendment to Third Amended and Restated Certificate of Incorporation of Prime Medicine, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed with the SEC on June 12, 2024).](https://www.sec.gov/Archives/edgar/data/1894562/000162828024027816/a06-12x2024xofficerexculpa.htm)</u> |
| 3.3 | <u>[Second Amended and Restated Bylaws of Prime Medicine, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed with the SEC on May 21, 2024).](https://www.sec.gov/Archives/edgar/data/1894562/000162828024024530/a05-21x2024xamendedaoi.htm)</u> |
| 10.1\*# | <u>[Second](q2202510-qex101.htm)[Amended and Restated Non-Employee Director Compensation Policy](q2202510-qex101.htm)</u> |
| 10.2\*# | <u>[Separation Agreement](q2202510-qex102.htm)[, dat](q2202510-qex102.htm)[ed May 18](q2202510-qex102.htm)[, 2025](q2202510-qex102.htm)[, between the Registrant and Keith Go](q2202510-qex102.htm)[ttesdiener](q2202510-qex102.htm)</u> |
| 10.3\*#† | <u>[C](q2202510-qex103.htm)[onsulting Agreement, dated May 18, 2025, between the Registrant and KMG Strategic](q2202510-qex103.htm)[Consulting](q2202510-qex103.htm)[LLC](q2202510-qex103.htm)</u> |
| 10.4\*# | <u>[Amended and Restated Employment Agreement, effective May 19, 2025, between the Registrant and Allan Reine](q2202510-qex104.htm)</u> |
| 10.5\*#+ | <u>[Separation Agreem](q2202510-qex105.htm)[ent,](q2202510-qex105.htm)[dated](q2202510-qex105.htm)[July 1](q2202510-qex105.htm)[7](q2202510-qex105.htm)[, 2025, between the Registrant and Jeremy Duffield](q2202510-qex105.htm)</u> |
| 10.6\*# | <u>[Consulting Agreement,](q2202510-qex106.htm)[dated](q2202510-qex106.htm)[July 1](q2202510-qex106.htm)[5, 2025, between the Registrant and Jeremy Duffield](q2202510-qex106.htm)</u> |
| 31.1\* | <u>[Certification of Principal Executive](q2202510-qex311.htm)[Officer](q2202510-qex311.htm)[and](q2202510-qex311.htm)[Prin](q2202510-qex311.htm)[cipal](q2202510-qex311.htm)[Financial](q2202510-qex311.htm)[Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](q2202510-qex311.htm)</u> |
| 32.1\*\* | <u>[Certification of Principal Executive](q2202510-qex321.htm)[Officer](q2202510-qex321.htm)[and](q2202510-qex321.htm)[Principal](q2202510-qex321.htm)[Financial](q2202510-qex321.htm)[Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](q2202510-qex321.htm)</u> |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

__________________

\*Filed herewith.

\*\*&nbsp;&nbsp;&nbsp;&nbsp;The certification furnished in Exhibit 32.1 hereto is deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. Such certification will not be deemed to be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Registrant specifically incorporates it by reference.

# Indicates a management contract or any compensatory plan, contract or arrangement.

† Portions of this exhibit (indicated by asterisks) have been omitted in accordance with Item 601(b)(10) of Regulation S-K.

+ Annexes, schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Registrant agrees to furnish supplementally a copy of any omitted attachment to the SEC on a confidential basis upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Financial Statement Schedules.

None.

------

**Signatures**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **Prime Medicine, Inc.** | **Prime Medicine, Inc.** |
| | By: | /s/ Allan Reine |
| Date: August 7, 2025 |  | Allan Reine |
|  |  | Chief Executive Officer<br>(Principal Executive Officer and Principal Financial Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

**PRIME MEDICINE, INC.**

**SECOND AMENDED AND RESTATED**

**NON-EMPLOYEE DIRECTOR COMPENSATION POLICY**

The purpose of this Amended and Restated Non-Employee Director Compensation Policy (as amended from time to time, this "<u>Policy</u>") of Prime Medicine, Inc., a Delaware corporation (the "<u>Company</u>"), is to provide a total compensation package that enables the Company to attract and retain, on a long-term basis, high-caliber directors who are not employees or officers of the Company or its subsidiaries ("<u>Outside Directors</u>"). This Policy became effective as of October 19, 2022 (the "<u>Effective Date</u>"). In furtherance of the purpose stated above, all Outside Directors shall be paid compensation for services provided to the Company as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.<u>Cash Retainers</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Annual Retainer for Board Membership</u>: $45,000 for general availability and participation in meetings and conference calls of our Board of Directors (the "<u>Board of Directors</u>"), to be paid quarterly in arrears, pro-rated based on the number of actual days served by the director during such calendar quarter. No additional compensation will be paid for attending individual meetings of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.<u>Additional Annual Retainers</u>:

Board Chairperson: $30,000

Audit Committee Chairperson: $20,000

Audit Committee member: $10,000

Compensation Committee Chairperson: $15,000

Compensation Committee member: $7,500

Nominating and Corporate Governance Committee Chairperson: $10,000

Nominating and Corporate Governance Committee member: $5,000

Chairperson and committee member retainers are in addition to retainers for members of the Board of Directors. No additional compensation will be paid for attending individual committee meetings of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.<u>Equity Retainers</u>**

All grants of equity retainer awards to Outside Directors pursuant to this Policy will be automatic and nondiscretionary and will be made in accordance with the following provisions:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Revisions</u>. The Board of Directors, in its discretion, may change and otherwise revise the terms of awards to be granted under this Policy, including, without limitation, the number of shares subject thereto, for awards of the same or different type granted on or after the date the Board of Directors determines to make any such change or revision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Sale Event Acceleration</u>. In the event of a Sale Event (as defined in the Company's 2022 Stock Option and Incentive Plan (as amended from time to time, the "<u>2022 Plan</u>")), the equity retainer awards granted to Outside Directors pursuant to this Policy shall become 100% vested and exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Initial Grant</u>. Upon initial election to the Board of Directors, each new Outside Director will receive an initial, one-time grant of a non-statutory stock option to purchase 110,000 shares (the "<u>Initial Grant</u>"), with an exercise price per share equal to the closing price of a share of the Company's Common Stock on the date of grant and a term of ten years, that vests in three equal annual installments over three years; provided, however, that all vesting ceases if the director resigns from the Board of Directors or otherwise ceases to serve as a director, unless the Board of Directors determines that the circumstances warrant continuation of vesting. This Initial Grant applies to Outside Directors who are first elected to the Board of Directors subsequent to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Annual Grant</u>. On the date of each Annual Meeting of Stockholders of the Company following the Effective Date (the "<u>Annual Meeting of Stockholders</u>"), each continuing Outside Director, other than a director receiving an Initial Grant, will receive an annual grant of a non-statutory stock option to purchase 55,000 shares on the date of such Annual Meeting of Stockholders (the "<u>Annual Grant</u>"), with an exercise price per share equal to the closing price of a share of the Company's Common Stock on the date of grant and a term of ten years, that vests in full on the earlier of (i) the one-year anniversary of the grant date or (ii) the next Annual Meeting of Stockholders; provided, however, that all vesting ceases if the director resigns from the Board of Directors or otherwise ceases to serve as a director, unless the Board of Directors determines that the circumstances warrant continuation of vesting. In addition, all vested options remain exercisable for twelve (12) months if the director resigns from the Board of Directors or otherwise ceases to serve as a director. Notwithstanding the foregoing, if an Outside Director was initially elected to the Board of Directors within twelve (12) months preceding the Annual Meeting, then such Outside Director shall receive Annual Award that is pro-rated on a monthly basis for time serving as an Outside Director. Such Annual Award shall expire ten (10) years from the date of grant, and shall have a per share exercise price equal to the Fair Market Value (as defined in the Plan) of the Company's Common Stock on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.<u>Expenses</u>**

The Company will reimburse all reasonable out-of-pocket expenses incurred by Outside Directors in attending meetings of the Board of Directors or any committee thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.<u>Maximum Annual Compensation</u>**

The aggregate amount of compensation, including both equity compensation and cash compensation, paid to any Outside Director in a calendar year period for services as an Outside Director shall not exceed (i) $1,600,000 in the first calendar year an individual becomes an Outside Director and (ii) $1,000,000 in any other year (or in each case, such other limits as may be set forth in Section 3(b) of the 2022 Plan or any similar provision of a successor plan). For this purpose, the "amount" of equity compensation paid in a calendar year shall be determined based on the grant date fair value thereof, as determined in accordance with ASC Topic 718 or its successor provision, but excluding the impact of estimated forfeitures related to service-based vesting conditions.

**Date Policy Approved**: May 9, 2022

**Dates Policy Amended**: May 17, 2024 and May 16, 2025

## Exhibit 10.2

**Exhibit 10.2**

**SEPARATION AGREEMENT**

This Separation Agreement ("<u>Agreement</u>") is made between Prime Medicine, Inc., a Delaware corporation (the "<u>Company</u>"), and Keith M. Gottesdiener, M.D. (the "<u>Executive</u>"). The Company together with the Executive shall be referred to as the "<u>Parties</u>." Terms with initial capitalization not otherwise defined shall have the meanings ascribed to such terms in the Employment Agreement (as defined below).

**WHEREAS,** the Parties entered into an Amended and Restated Employment Agreement dated as of July 7, 2022, as amended by the Amendment No. 1 to Employment Agreement dated July 6, 2023 (as amended the "<u>Employment Agreement</u>"), which superseded a prior employment agreement between the Parties dated as of April 7, 2022 (the "<u>Prior Agreement</u>");

**WHEREAS,** pursuant to the Employment Agreement, the Company agreed to provide the Executive with certain severance pay and benefits (the "<u>Severance Pay and Benefits</u>") in the event of certain cessations of employment, subject to, among other things, the Executive entering into, not revoking and complying with a Separation Agreement;

**WHEREAS,** pursuant to Section 2(f)(i) of the Employment Agreement, the Company agreed to negotiate in good faith to establish a non-exclusive limited consulting relationship with the Executive for a period of up to one year after the Date of Termination (the "<u>Post-Employment</u> <u>Advisory Services Opportunity</u>") in the event of certain cessations of employment, subject to, among other things, the Executive entering into and not revoking a consulting agreement;

**WHEREAS,** the Executive's employment with the Company is ending pursuant to Section 3(d) and Section 5 of the Employment Agreement;

**WHEREAS,** this Agreement is the Separation Agreement referred to in the Employment Agreement;

**WHEREAS,** in exchange for, among other things, the Executive entering into and not revoking this Agreement and complying in all material respects with the Continuing Obligations (as defined below), the Company shall provide the Executive with the Severance Pay and Benefits;

**WHEREAS,** the "<u>Advisory Services Agreement</u>" attached hereto as <u>Exhibit A</u> is the consulting agreement referred to in Section 2(f)(i) of the Employment Agreement; and

**WHEREAS,** by entering into this Agreement, the Executive acknowledges and agrees that he is not entitled to any other severance pay, benefits or equity rights including without limitation pursuant to any severance plan, program or arrangement.

**NOW, THEREFORE,** for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

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**1. Ending of Employment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Executive's employment with the Company shall end at the close of business on May 18, 2025 (the "<u>Date of Termination</u>"). The Parties acknowledge and agree that the Company has satisfied any notice obligations under Section 4(a) of the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Consistent with Section 1(b) of the Employment Agreement, the Executive shall be deemed to have resigned from the Company's Board of Directors (the "<u>Board</u>") and any and all officer and board member positions that the Executive holds with the Company or any of its subsidiaries and affiliates as of the Date of Termination. The Executive agrees to execute any documents in reasonable form as may be requested to confirm or effectuate any such resignations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Executive's "Service Relationship" for purposes of vesting in any outstanding unvested stock options, restricted stock units, or other equity awards (the "<u>Equity Awards</u>") ends on the later of (i) Date of Termination, or (ii) the last date of Term pursuant to the Advisory Services Agreement, if applicable, all pursuant to the terms of the applicable equity award agreement and underlying equity incentive plan(s) (the "<u>Equity Documents</u>"). For the avoidance of doubt, the exercisability of the Executive's stock options is governed by the terms of the Advisory Services Agreement.

(a)For the avoidance of doubt, if the Executive does not enter into this Agreement or if he revokes this Agreement. the Executive's employment will end and the Executive will be paid the Accrued Obligations (as defined below), but he will have no right to the Severance Pay and Benefits, the Post-Employment Advisory Services Opportunity, or any other post-employment compensation or benefits from the Company. Executive's agreement with a new employer after the Date of Termination shall not adversely impact his entitlement to the Severance Pay and Benefits, the Post- Employment Advisory Services Opportunity or any other post-employment compensation or benefits from the Company, provided such employment does not violate Executive's Continuing Obligations (as defined in Section 6).

**2. Accrued Obligations.** The Company shall pay or provide to the Executive (or to the Executive's authorized representative or estate) (i) any Base Salary earned through the Date of Termination; (ii) unpaid expense reimbursements (subject to, and in accordance with, Section 2(c) of the Employment Agreement); and (iii) any vested benefits the Executive may have under any employee benefit plan of the Company through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans (collectively, the "<u>Accrued Obligations</u>"). In addition, regardless of whether this Agreement becomes effective, the Executive's eligibility to participate in the Company's group health plans and other benefit plans and programs will end on the Date of Termination or thereafter in accordance with the terms and conditions of the applicable benefit plans and programs. The Executive will be provided with information regarding the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("<u>COBRA</u>") under separate cover, including payment obligations. Any COBRA continuation coverage will be at the Executive's own cost, except as provided in Section 3(b) below.

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**3. Severance Benefits.** If the Executive (i) enters into, does not revoke and complies with this Agreement and (ii) does not resign and is not terminated by the Company for Cause prior to the Anticipated Date of Termination (collectively the "<u>Conditions</u>"):

(a)the Company shall pay the Executive an amount equal to the sum of (i) 12 months of the Executive's current Base Salary plus (ii) one times the Executive's Target Bonus (as defined in Section 2(b) of the Employment Agreement) for the current year (the "<u>Severance Amount</u>"). For the avoidance of doubt, in no event shall the Executive's Target Bonus include any sign-on bonus, retention bonus, or any other special bonus; and

(b)subject to the Executive's copayment of premium amounts at the applicable active employees' rate and the Executive's proper election to receive benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"), the Company shall pay to the group health plan provider or the COBRA provider a monthly payment equal to the monthly employer contribution that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company until the earliest of (A) the 12 month anniversary of the Date of Termination; (B) the date that the Executive becomes eligible for group medical plan benefits under any other employer's group medical plan; or (C) the cessation of the Executive's health continuation rights under COBRA; <u>provided</u>, <u>however</u>, that if the Company determines that it cannot pay such amounts to the group health plan provider or the COBRA provider (if applicable) without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then the Company shall convert such payments to payroll payments directly to the Executive for the time period specified above. Such payments to the Executive shall be subject to tax-related deductions and withholdings and paid on the Company's regular payroll dates.

Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2).

**4. Post-Employment Advisory Services Opportunity.** Pursuant to Section 2(f)(i) of the Employment Agreement, if the Executive enters into and does not revoke the Advisory Services Agreement, then on the date immediately following the Date of Termination, the Executive will become an Advisor to the Company and provide as-requested advice and assistance to the Company in the areas of the Executive's expertise (the "<u>Services</u>") until the date of the first anniversary of the Date of Termination, unless the Company or the Executive sooner terminate the Advisory Services Agreement in accordance with its terms (the "<u>Advisory Period</u>"). As the sole compensation for the Services, the Executive shall continue to vest in his outstanding, unvested Equity Awards during the Advisory Period, subject to the terms of the Advisory Services Agreement and the Equity Documents. For the avoidance of doubt, there will be no break in the Executive's service relationship with the Company between the Date of Termination and the commencement of the Advisory Period for purposes of such continued vesting.

**5. General Release.** In consideration for, among other terms, the Severance Pay and Benefits, to which the Executive acknowledges he would not otherwise be entitled, the Executive voluntarily releases and forever discharges the Company, its affiliated and related entities, its and their respective predecessors, successors and assigns, its and their respective Executive benefit

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plans and, in their respective official and personal capacities as such, (i) fiduciaries of such plans, and (ii) the current and former officers, directors, shareholders, Executives, attorneys, accountants and agents of each of the foregoing in their (collectively referred to as the "Releasees") generally from all claims, demands, debts, damages and liabilities of every name and nature, known or unknown ("Claims") that, as of the date when the Executive signs this Agreement, the Executive has, ever had, now claims to have or ever claimed to have had against any or all of the Releasees. This release includes, without limitation, all Claims: arising in connection with or under the Employment Agreement or any other agreement between the Executive and any of the Releasees; relating to the Executive's employment by and separation from employment with the Company; of wrongful discharge or violation of public policy; of breach of contract; of defamation or other torts; of retaliation or discrimination under federal, state or local law (including, without limitation, Claims of discrimination or retaliation under the Age Discrimination in Employment Act, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964 and Mass. Gen. Laws ch. 151B); under any other federal or state statute (including, without limitation, Claims under the Fair Labor Standards Act, the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act ("WARN") or any state mini-WARN law); for wages, bonuses, incentive compensation, stock, stock options, vacation pay or any other compensation or benefits, either under the Massachusetts Wage Act, Mass. Gen. Laws ch. 149, §§ 148-150C or otherwise; and for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney's fees; provided, however, that this release shall not affect any rights the Executive may have under the Company's Section 401(k) plan and other employee benefit plans of the Company or this Agreement, or the Executive's rights (if any) to indemnification pursuant to the Company's organizational documents or any indemnification agreement between the Company and the Executive, or coverage, if any, under applicable directors' and officers' insurance policies, nor shall it apply to Claims that cannot be waived as a matter of law. The Executive agrees not to accept damages of any nature, other equitable or legal remedies for his own benefit or attorney's fees or costs from any of the Releasees with respect to any Claim released by this Agreement. As a material inducement to the Company to enter into this Agreement, the Executive represents that he has not assigned any Claim to any third party.

**6. Updated Continuing Obligations.** The Executive acknowledges and reaffirms that he remains subject to his obligations under the Employee Confidentiality, Assignment and Nonsolicitation Agreement he entered into in connection with the commencement of the Executive's employment with the Company, as amended by the Amendment to Employee Confidentiality, Assignment and Nonsolicitation Agreement he entered into in connection with the Employment Agreement (collectively the "<u>Restrictive Covenant Agreement</u>") in accordance with its terms, including, without limitation, the post-employment non-solicitation obligations, the obligation to maintain the confidentiality of the Company's "Proprietary Information," as defined in the Restrictive Covenant Agreement, and the obligation to return all Company documents and other Company property; except that the Company hereby acknowledges and agrees that the post- service relationship non-competition covenant in Section 8(c) of the Restrictive Covenant Agreement will not apply following the Date of Termination (the "<u>Non-Compete Waiver</u>") and the Executive will not be entitled to any payments under the Restrictive Covenant Agreement. The Executive is also required to comply with the Company's Insider

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Trading Policy following the Date of Termination, to the extent applicable. The Restrictive Covenant Agreement, the Insider Trading Policy and the Executive's obligations set forth in Section 8 of the Employment Agreement and Sections 7 through 11 of this Agreement are referred to as the "<u>Updated Continuing</u> <u>Obligations</u>."

**7. Non-Competition Agreement.** In consideration for, among other terms, the Severance Pay and Benefits, which the Executive acknowledges is mutually agreed-upon fair and reasonable consideration to which he would not otherwise be entitled, for a period of (i) one (1) year followingthe Date of Termination, or (ii) two (2) years following the Date of Termination if a court of competent jurisdiction determines that the Executive has breached his fiduciary duties to the Company or if he has unlawfully taken, physically or electronically, property belonging to the Company, the Executive agrees not to, directly or indirectly, whether as owner, partner, shareholder, director, manager, consultant, agent, employee, co-venturer or otherwise, anywhere in the world, engage or otherwise participate in any business that is, in whole or in part, engaged in, or actively preparing to be engaged in using prime editing technology and the performance of any services related to prime editing technology. The Executive acknowledges that this covenant is necessary because the Company's legitimate business interests cannot be adequately protected solely by the other covenants in this Agreement (including the Continuing Obligations) and that he has been given seven (7) business days to revoke acceptance of this Agreement.

**8. Return of Property.** The Executive acknowledges and agrees that he is required to return all Company property, including, without limitation, his Company laptop, computer equipment, software, keys and access cards, credit cards, files and any documents (including computerized data and any copies made of any computerized data or software) containing information concerning the Company, its business or its business relationships ("<u>Company Property</u>") by no later than the Date of Termination. After returning all Company Property, the Executive commits to deleting and finally purging any duplicates of files or documents that may contain Company or customer information from any non-Company computer or other device that remains the Executive's property after the Date of Termination. The obligations contained in this Section 8 are supplemental to, and not in lieu of, any return of property obligations the Executive has pursuant to the Restrictive Covenant Agreement. For the avoidance of doubt, Executive may retain a copy of his contacts list, and any personal, nonbusiness files including files needed in order to submit his personal tax returns to the applicable taxing authorities.

**9. Communications.** The Executive agrees that he will not communicate about his transition and departure with anyone until after the Company has made a formal written announcement about the Executive's transition and departure (the "<u>Company Announcement</u>"); <u>provided</u> that the Executive may communicate with his tax advisors, attorneys, and spouse about his departure before the Company Announcement; <u>provided</u> further that the Executive first advises such persons not to reveal information about the Executive's departure and each such person agrees. In addition, the Executive agrees that following the Date of Termination, the Executive will promptly update any social media or electronic accounts (e.g., LinkedIn) to reflect that the Executive is no longer employed as the Chief Executive Officer of the Company.

**10.[Intentionally Omitted.]**

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**11. Joint Statement**. The Company and the Executive have mutually agreed on the content of the Company's press release with respect to the Executive's departure.

**12. Cooperation**. Section 8(c) of the Employment Agreement is incorporated by reference as a material term of this Agreement. To the extent that any request for cooperation is for services covered by the consulting agreement entered into by the Company and KMG Strategic Consulting, LLC ("KMG") concurrent herewith (the "Consulting Agreement"), KMG shall be compensated pursuant to the terms of the Consulting Agreement.

**13. Termination of Payments; Injunctive Relief.** The Executive acknowledges that his right to the Severance Pay and Benefits is conditioned on his compliance in all material respects with the Updated Continuing Obligations; <u>provided</u>, <u>however</u>, and for the avoidance of doubt, that the post- employment non-competition provision in Section 8(c) of the Restrictive Covenant Agreement shall not apply and is superseded by Section 6 of this Agreement. In the event that the Executive fails to comply in any material respect with any of the Continuing Obligations, then in addition to any other legal or equitable remedies it may have for such breach, the Company shall have the right to terminate the Severance Pay and Benefits and/or to seek repayment of any previously paid Severance Pay and Benefits. Such termination in the event of a breach by the Executive shall not affect the general release in Section 5 of this Agreement or the Executive's obligation to comply with the Updated Continuing Obligations. Further, the Executive agrees that it might be difficult to measure any harm caused to the Company that might result from any breach by the Executive of any of the Updated Continuing Obligations and that, in any event, money damages might be an inadequate remedy for any such breach. Accordingly, the Executive agrees that, if he breaches, or proposes to breach, any portion of the Updated Continuing Obligations, the Company shall be entitled, in addition to all other remedies it may have, to seek an injunction or other appropriate equitable relief to restrain any such breach, without showing or proving any actual damage to the Company and without the necessity of posting a bond, and to recover its reasonably incurred attorneys' fees and costs associated with any such breach by the Executive.

**14. Advice of Counsel; Absence of Reliance.** This Agreement is a legally binding document and the Executive's signature will commit the Executive to its terms. The Executive is advised to discuss all aspects of this Agreement with his attorney. The Executive acknowledges that he has carefully read and fully understands all of the provisions of this Agreement and that he is voluntarily entering into this Agreement. In signing this Agreement, the Executive is not relying upon any promises or representations made by anyone at or on behalf of the Company.

**15. Protected Disclosures.** Nothing in this Agreement, any other agreement with the Company, or any Company policy or code limits the Executive's ability, with or without notice to the Company, to: (i) file a charge or complaint with any federal, state or local governmental agency or commission (a "<u>Government Agency</u>"), including without limitation, the Equal Employment Opportunity Commission or the Securities and Exchange Commission (the "<u>SEC</u>"); (ii) communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including by providing non- privileged documents or information; (iii) discuss or disclose information about unlawful acts in

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the workplace, such as harassment or discrimination or any other conduct that the Executive has reason to believe is unlawful; or (iv) testify truthfully in a legal proceeding or process. Any such communications and disclosures must be consistent with applicable law and the information disclosed must not have been obtained through a communication that was subject to the attorney-client privilege (unless disclosure of that information would otherwise be permitted consistent with such privilege or applicable law). If a Government Agency or any other third party pursues any claim on the Executive's behalf, the Executive waives any right to monetary or other individualized relief (either individually or as part of any collective or class action), but the Company will not limit any right the Executive may have to receive an award pursuant to the whistleblower provisions of any applicable law or regulation for providing information to the SEC or any other Government Agency.

**16. Time for Consideration; Effective Date.** The Executive acknowledges that he has been given the opportunity to consider this Agreement for twenty-one (21) days from his receipt of this Agreement before signing it (the "<u>Consideration Period</u>"). To accept this Agreement, the Executive must return a signed, unmodified original or PDF copy of this Agreement so that it is received by the undersigned on or before the expiration of the Consideration Period. If the Executive signs this Agreement prior to the end of the Consideration Period, the Executive acknowledges by signing this Agreement that such decision was entirely voluntary and that he had the opportunity to consider this Agreement for the entire Consideration Period. The Executive and the Company agree that any changes or modifications to this Agreement shall not restart the Consideration Period. For a period of seven (7) business days from the date of his execution of this Agreement, the Executive shall retain the right to revoke this Agreement by written notice that must be received by the undersigned before the end of such revocation period. This Agreement shall become effective on the day immediately following the expiration of the revocation period (the "<u>Effective Date</u>"), provided that the Executive does not revoke this Agreement during the revocation period. Notwithstanding the foregoing, the Company may withdraw the offer of this Agreement or may void this Agreement before the Effective Date if the Executive breaches any provision contained in this Agreement (including any provision of the Restrictive Covenant Agreement).

**17. Incorporation of Whereas Clauses**. The Parties incorporate by reference the Whereas clauses set forth above as if fully set forth herein.

**18. Enforceability.** The Executive acknowledges that, if any portion or provision of this Agreement or the Restrictive Covenant Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision shall be valid and enforceable to the fullest extent permitted by law.

**19. Entire Agreement.** This Agreement, together with the Restrictive Covenant Agreement (subject to the Non-Compete Waiver), the Updated Continuing Obligations, the Prime Medicine, Inc. Officer Indemnification Agreement dated October 7, 2022 (the "<u>Indemnification Agreement</u>"), the Advisory Services Agreement, the Consulting Agreement, the Equity Documents, and Sections 7 ("Section 409A") and 8 ("Continuing Obligations") of the

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Employment Agreement, together shall constitute the entire agreement between the Executive and the Company concerning the subject matter addressed herein and, except as otherwise expressly provided hereunder, supersedes and replaces any and all prior agreements and understandings between the Parties concerning the subject matter addressed herein including, without limitation, the Employment Agreement and the Prior Employment Agreement. For clarity, and notwithstanding anything to the contrary herein, in the event that a Change in Control occurs within three (3) months immediately following the Date of Termination, the Executive shall be entitled to the accelerated vesting of his Equity Awards described in Section 2(f)(ii) of the Employment Agreement and, if the Executive is receiving Severance Pay and Benefits hereunder, the Executive will be entitled to the enhanced severance pay and benefits described under Section 6 of the Employment Agreement (less any Severance Pay and Benefits the Executive has already received hereunder).

**20. Waiver; Amendment**. No waiver of any provision of this Agreement, including the Continuing Obligations, shall be effective unless made in writing and signed by the waiving party. The failure of the Company to require the performance of any term or obligation of this Agreement or the Continuing Obligations, or the waiver by the Company of any breach of this Agreement or the Continuing Obligations shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. This Agreement may not be modified or amended except in a writing signed by both the Executive and a duly authorized representative of the Company.

**21. Taxes.** The Company shall undertake to make deductions, withholdings and tax reports with respect to payments and benefits under this Agreement and in connection with other compensation matters to the extent that it reasonably and in good faith determines that it is required to make such deductions, withholdings and tax reports. Payments under this Agreement shall be in amounts net of any such deductions or withholdings. Nothing in this Agreement shall be construed to require the Company to make any payments to compensate the Executive for any adverse tax effect associated with any payments or benefits made to the Executive in connection with the Executive's employment with the Company.

**22. Acknowledgment of Wage and Other Payments.** The Executive acknowledges and represents that, except as expressly provided in this Agreement, the Executive has been paid all wages, bonuses, compensation, benefits and other amounts that any of the Releasees has ever owed to the Executive. The Executive is not entitled to any other compensation or benefits from the Company related to his employment following the Date of Termination except as specifically set forth in this Agreement, the Advisory Agreement and the Consulting Agreement.

**23. Legal Fee Reimbursement.** The Company shall promptly pay, or reimburse the Executive for, the legal fees reasonably incurred by the Executive in connection with the review, negotiation and drafting of this Agreement, the Advisory Agreement and the Consulting Agreement upon receipt by the Company of a written invoice from the Executive's legal counsel evidencing such fees incurred, provided such reimbursement shall not exceed $10,000.

**24. Consent to Jurisdiction.** The Parties hereby consent to the jurisdiction of the Superior Court of the Commonwealth of Massachusetts and the United States District Court for the

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District of Massachusetts. Accordingly, with respect to any such court action, the Executive (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.

**25. Governing Law; Interpretation.** This is a Massachusetts contract and shall be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts without giving effect to the conflict of laws principles thereof. In the event of any dispute, this Agreement is intended by the Parties to be construed as a whole, to be interpreted in accordance with its fair meaning, and not to be construed strictly for or against either Party or the "drafter" of all or any portion of this Agreement.

**26. Assignment; Successors and Assigns.** Neither the Executive nor the Company may make any assignment of this Agreement or any interest in it, by operation of law or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and obligations under this Agreement (including the Restrictive Covenant Agreement) without the Executive's consent to any affiliate or to any person or entity with whom the Company shall hereafter effect a reorganization or consolidation, into which the Company merges or to whom it transfers all or substantially all of its properties or assets. This Agreement shall inure to the benefit of and be binding upon the Executive and the Company, and each of the Executive's and the Company's respective successors, executors, administrators, heirs and permitted assigns. In the event of the Executive's death after the Date of Termination but prior to the completion by the Company of all payments due to the Executive under this Agreement, the Company shall continue such payments to the Executive's beneficiary designated in writing to the Company prior to the Executive's death (or to the Executive's estate, if the Executive fails to make such designation).

**27. Counterparts.** This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.

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**IN WITNESS WHEREOF,** the Parties, intending to be legally bound, have executed this Agreement on the date(s) indicated below.

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| | |
|:---|:---|
| **PRIME MEDICINE, INC.** | **PRIME MEDICINE, INC.** |
| By: | /s/ Jeffrey Marrazzo |
| Name: | Jeffrey Marrazzo |
| Title: | Executive Chairman |
| Date: | 5/18/2025 |
| **EXECUTIVE** | **EXECUTIVE** |
| /s/ Keith Gottesdiener, | /s/ Keith Gottesdiener, |
| Keith M. Gottesdiener, M.D. | Keith M. Gottesdiener, M.D. |
| Date: | 5/18/2025 |

---

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**EXHIBIT A**

**ADVISORY SERVICES AGREEMENT**

## Exhibit 10.3

**Exhibit 10.3**

**CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. INFORMATION THAT WAS OMITTED HAS BEEN NOTED IN THIS DOCUMENT WITH A PLACEHOLDER IDENTIFIED BY THE MARK "[\*\*\*]".**

**<u>CONSULTING AGREEMENT</u>**

**THIS CONSULTING AGREEMENT** ("<u>Agreement</u>") is made by and between Prime Medicine, Inc. (the "<u>Company</u>"), and KMG Strategic Consulting LLC (the "<u>Consultant</u>"), effective as of May 18, 2025. The Company and Consultant may be referred to individually as a "Party" and collectively as the "Parties."

WHEREAS, Keith M. Gottesdiener, M.D. ("<u>Gottesdiener</u>") was employed as the Company's Chief Executive Officer (the "<u>CEO</u>") and a member of the Company's Board of Directors (the "<u>Board</u>");

WHEREAS, Gottesdiener's employment relationship with the Company has been governed by the Amended and Restated Employment Agreement dated July 7, 2022, as amended by the Amendment No. 1 to Employment Agreement dated July 6, 2023 (as amended the "<u>Employment Agreement</u>");

WHEREAS, pursuant to Section 2(f)(i) of the Employment Agreement, Gottesdiener will continue to provide limited services to the Company as an Advisor for up to one year after the Date of Termination (as defined in the Employment Agreement) through the Advisory Services Agreement between the Company and Gottesdiener dated May 18, 2025 (the "<u>Advisory Services Agreement</u>")

WHEREAS, notwithstanding the termination of Gottesdiener's employment with the Company on May 18, 2025 (the "<u>Date of Termination</u>"), the terms of which is set forth in the Separation Agreement between the Company and Gottesdiener dated May 18, 2025 (the "<u>Separation Agreement</u>"), and the limited services set forth in the Advisory Services Agreement, the Company and Consultant have agreed that the parties will benefit from a continuing consulting arrangement between the Company and Consultant to provide Gottesdiener's services to the Company with the option, if mutually agreed, to extend such services beyond the one year anniversary of the Date of Termination;

WHEREAS, this consulting arrangement between the Company and Consultant is not and shall not be interpreted as a continuation of the service relationship between the Company and Gottesdiener; and

WHEREAS, the Parties intend that this Agreement will set out the terms of the Consultant's consulting arrangement with the Company;

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NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties, Consultant and the Company agree as follows:

**1. Description of Services.** Company hereby retains Consultant as an independent consultant to Company and Consultant hereby agrees to use Gottesdiener's best efforts to provide advice and assistance to Company in the area of Consultant's expertise as set forth in more detail on <u>Exhibit A</u> (the "<u>Services</u>"), attached hereto and incorporated herein by reference. Gottesdiener acknowledges and agrees that Company is entering into this Agreement with Consultant to retain Gottesdiener to perform the Services personally. Company has determined that Gottesdiener is exceptionally qualified to perform them by virtue of his knowledge, skill, and experience. Therefore, Gottesdiener shall not delegate the performance of the Services to other individuals without the prior written consent of Company. Consultant and Gottesdiener shall be fully indemnified by the Company for Gottesdiener's services hereunder except to the extent that any conduct by Gottesdiener constitutes gross negligence or willful misconduct.

**2. Contract Term and Termination.** The term of this Agreement and Consultant's Services hereunder will commence on the Date of Termination and will continue until the first anniversary of the Date of Termination, unless (i) earlier terminated in accordance with this Agreement or (ii) extended upon mutual written agreement of the Parties. Either Party may terminate this Agreement and Consultant's Services hereunder for any reason upon fourteen (14) days' written notice to the other Party. Notwithstanding the foregoing, the Company may, in addition to any other rights it may have at law or in equity, terminate the Consulting Term immediately and without prior notice for "Cause" if Consultant is in breach (and has not promptly cured such breach) of any material provision of this Agreement, the Advisory Services Agreement, or the Updated Continuing Obligations (as defined in the Separation Agreement). If Consultant gives or receives a notice of termination, Consultant must not perform any further Services for the Company during the notice period unless otherwise requested by the Company. In the event of termination of this Agreement and Consultant's Services hereunder for any reason, Consultant shall be entitled to fees and expenses (as set forth in Section 3) incurred prior to the effective date of termination (the time period between the Effective Date and the effective date of termination the "<u>Consulting Term</u>").

**3. Compensation and Expenses.** For Services properly performed by Consultant, the Company will pay Consultant the fees set forth on <u>Exhibit A</u>. In addition, during the Consulting Term, the Company shall reimburse Consultant for any pre-approved actual expenses incurred by Consultant in connection with the provision of Services, including pre-approved travel and lodging expenses for travel requested by the Company. For the avoidance of doubt, compensation provided under this Agreement shall be in addition to, and not in lieu of the severance pay and benefits under the Separation Agreement. Consultant acknowledges and agrees that nothing in this agreement shall establish a continued service relationship between Gottesdiener and the Company for purposes of vesting in any outstanding, unvested equity.

**4. Compliance with Laws.** Consultant represents and warrants that Consultant will render Services with professional skill and care and in compliance with all applicable laws, rules and

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regulations, including but not limited to the U.S. Food, Drug and Cosmetic Act, as amended from time to time. Further, Consultant represents that Consultant has not been debarred and is not under consideration to be debarred by the U.S. Food and Drug Administration from working in or providing consulting services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992. If Consultant is disbarred or receives any notice of an action or threat of action of debarment or investigation that could lead to debarment, Consultant shall immediately provide the Company with written notice thereof.

**5. Compliance with Obligations to Third Parties.** Consultant represents and warrants to the Company that (a) the terms of this Agreement and Consultant's performance of Services do not and will not conflict with any of Consultant's obligations to any third parties and (b) Consultant has not brought and will not bring with Consultant to the Company or use in the performance of Services any equipment, confidential information or trade secrets of any third party which are not generally available to the public, unless Consultant has obtained written authorization from such third party for their possession and use, and the Company consents in writing to such use. Further, if Consultant is a faculty member at, or an employee of, a university or hospital ("Institution") or of another company, Consultant represents and warrants that pursuant to such Institution's or company's policies concerning professional consulting and additional workload, Consultant is permitted to enter into this Agreement. If Consultant is required by such Institution or company to disclose to it, or obtain its consent to, any such proposed agreements, Consultant represents that Consultant has made such disclosure or obtained such consent.

**6. Work Product.** Consultant will make full and prompt disclosure to the Company of all work product that is developed, conceived, or reduced to practice by Consultant: (a) in the performance of the Services or (b) by use of the Company's intellectual property (including without limitation, Confidential Information), equipment or facilities (collectively the "<u>Work Product</u>"). Consultant shall not use any third party intellectual property or facilities in performing the Services contemplated by this Agreement or engage in any other activities that would result in a third party having an ownership interest in any Work Product.

**7. Assignment of Work Product.** Consultant hereby assigns to the Company (and/or its designee specified by the Company in writing), all ownership and right, title and interest in Work Product such that the Company shall enjoy and shall be entitled to exercise all the rights of a sole, exclusive holder in such Work Product. During and after the Consulting Term, Consultant will cooperate fully in obtaining patent and other proprietary protection for any and all Work Product, all in the name of Company (and/or its designee) and at Company's expense, and shall execute and deliver all requested applications, assignments and other documents, and take such other measures as Company may reasonably request, in order to perfect and enforce Company's (and/or its designee's) rights in any and all Work Product. Consultant hereby appoints Company as its attorney-in-fact to execute and deliver any such documents on behalf of Consultant in the event Consultant shall fail to do so.

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**8. Confidentiality & Non-Use.**

(a)Consultant acknowledges that Consultant's relationship with the Company is one of high trust and confidence and that in the course of Consultant's service to the Company, Consultant will have access to and contact with Confidential Information. "Confidential Information" means (i) all Work Product and (ii) any and all scientific, technical, financial, or business information in written, oral, visual, graphic, video, computer, electronic, or other form, that is possessed or obtained by, developed for, or given to the Company, its subsidiaries or its affiliates that is treated by the Company as confidential or proprietary and furnished or made available to Consultant by or on behalf of the Company. Confidential Information will include all information that due to its nature would cause a reasonable person in the industry to know that it is confidential or proprietary even if not so marked or identified. Consultant agrees to hold Confidential Information in confidence and exercise reasonable precautions to protect the integrity and confidentiality of the Confidential Information and to use Confidential Information solely as reasonably necessary for the performance of the Services.

(b)Consultant will have no obligation of confidentiality and non-use with respect to any portion of Confidential Information that: (i) is generally known to the public at the time of disclosure or becomes generally known through no fault of Advisor; (ii) is in Consultant's possession at the time of disclosure, as evidenced by its written records, other than as a result of Consultant's breach of any legal obligation; (iii) is obtained without restriction from a third party having the legal right to disclose the same to Advisor; or (iv) is independently developed by Consultant without the use of Confidential Information, as evidenced by Consultant's written records. If Consultant is required to disclose Confidential Information by law, governmental rule or regulation or order of a court with competent jurisdiction, Consultant may disclose such Confidential Information, provided that the disclosure is subject to applicable governmental or judicial protection available for like material, and (unless such advance notice is otherwise not required by Sections 20 or 21 of this Agreement) reasonable advance notice is given to the Company so that the Company may seek a protective order or other remedy with respect to narrowing the scope of disclosure.

(c)The Company shall at all times remain the sole owner of its Confidential Information and all intellectual property related thereto. Except as expressly set forth in this Agreement, nothing herein shall be construed as granting to Consultant, by implication, estoppel or otherwise, any right, title or interest in, or any license under, any intellectual property right of the Company (including without limitation, Confidential Information).

(d)Upon the request of the Company, Consultant will (a) destroy any and all copies of Confidential Information and (b) provide a written certification to the Company regarding such destruction. In any event, Consultant will return all copies of Confidential Information upon the request by the Company. The obligations of non-disclosure and non-use hereof will survive any expiration or termination of this Agreement and continue in full force and effect until such time as the Company no longer treats such information as Confidential Information.

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(e)Consultant hereby reaffirms the obligations under Sections 5 through 10 of the Advisory Services Agreement and the Updated Continuing Obligations (as defined in the Separation Agreement), all of which continue to be in effect in accordance with their terms.

**9. Company Property**. All documents, data, records, apparatus, equipment and other physical property furnished by the Company, or otherwise made available by or on behalf of the Company, to Consultant in connection with this Agreement shall be and remain the sole property of the Company and shall be returned promptly to the Company when requested, without altering, copying, transferring or deleting any Confidential Information. In any event, Consultant shall return and deliver all such property, including any copies thereof, upon termination of his service relationship with the Company.

**10. Publication; Publicity.** Work Product may not be published, in whole or in part, by Consultant without the prior express written consent of the Company. Consultant shall not use the name, logo, trade name, service mark, or trademark, or any simulation, abbreviation, or adaptation of same, or the name of the Company, its affiliates or its subsidiaries for publicity, promotion, or similar usage without the Company's prior written consent.

**11. Independent Contractor Relationship**. Nothing contained in this Agreement shall be deemed to constitute Consultant as an employee, co-venturer or agent of the Company, it being the intent of the parties to establish an independent contractor relationship, nor shall Consultant have authority to bind the Company in any manner whatsoever by reason of this Agreement. Consultant shall at all times while on Company premises observe all security and safety policies of the Company of which Consultant is made aware. Consultant will not be eligible to participate in any vacation, group medical (except as required under the law known as COBRA) or life insurance, disability, profit sharing or retirement benefits, or any other fringe benefits or benefit plans offered by the Company to its employees, and the Company will not be responsible for withholding or paying any income, payroll, Social Security, or other federal, state, or local taxes, making any insurance contributions, including for unemployment or disability, or obtaining workers' compensation insurance on Consultant's behalf. Consultant shall bear sole responsibility for all taxes, insurance and benefits, if any, and shall indemnify and hold the Company harmless from and against any liability with respect thereto. If Gottesdiener is reclassified by a state or federal agency or court as the Company's employee, Gottesdiener will become a reclassified employee and will receive no benefits from the Company, except those mandated by state or federal law, even if by the terms of the Company's benefit plans or programs of the Company in effect at the time of such reclassification, Gottesdiener would otherwise be eligible for such benefit.

**12. Other Business Activities.** During the Consulting Term, Consultant may be engaged or employed in any other business, trade, profession, or other activity that does not place Consultant in a conflict of interest with the Company and provided the Consultant complies with the Updated Continuing Obligations as defined in the Separation Agreement.

**13. Assignment.** The rights and obligations of the Parties hereunder shall inure to the benefit of, and shall be binding upon, their respective successors and permitted assigns. This Agreement may not be assigned by Consultant, and Consultant's obligations under this Agreement may not

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be subcontracted or delegated by Consultant, without the prior written consent of the Company. For clarity, this Agreement may be assigned by the Company.

**14. Survival.** Any termination of this Agreement shall be without prejudice to any obligation of either Party that shall have accrued and then be owing prior to termination. Without limiting the foregoing, Sections 6 through 21 of this Agreement shall survive any termination of this Agreement.

**15. Entire Agreement; Amendment; Waiver; Severability.** This Agreement, including the exhibits attached hereto, contains the entire agreement between the Parties with respect to its subject matter and supersedes all prior agreements, written or oral, between the Parties with respect to its subject matter; *provided*, and for the avoidance of doubt, the Separation Agreement and the agreements preserved therein, shall remain in full force and effect in accordance with their terms. This Agreement may not be modified, changed or discharged, in whole or in part, except by an agreement in writing signed by the Parties. No waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by the Party against whom such waiver is sought to be enforced; moreover, no valid waiver of any provision of this Agreement at any time shall be deemed a waiver of any other provision of this Agreement at such time or shall be deemed a valid waiver of such provision at any other time. In the event that any one or more of the provisions contained in this Agreement are, for any reason, held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Agreement, and all other provisions will remain in full force and effect. If any provision of this Agreement is held to be excessively broad, it will be reformed and construed by limiting and reducing it so as to be enforceable to the maximum extent permitted by law.

**16. Counterparts and Signatures.** This Agreement may be executed in one or more counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument. The Parties agree that electronic signatures or signatures affixed to any one of the originals and delivered by portable document format (PDF), or other electronic means shall be valid, binding and enforceable.

**17. Equitable Relief.** Consultant acknowledges that irreparable harm may be done to the Company's business through the breach of Consultant's obligations set forth in Sections 6 through 10 above, for which damages at law may not be an adequate remedy. Consultant agrees, therefore, that, in addition to any other remedy it may have, the Company shall be entitled to enforce the specific performance of this Agreement by Consultant and to seek and obtain both temporary and permanent injunctive relief (to the extent permitted by law) without the necessity of proving actual damages or posting bond.

**18. Notices.** All notices required or permitted under this Agreement must be in writing and must be delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to Consultant at the last address Consultant has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the Chief Executive Officer. Notices may also be sent by email to the

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last email address of Consultant or, in the case of the Company, the Company email address of the Chief Executive Officer, in each case with confirmation of receipt.

**19. Governing Law.** This Agreement is to be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts without giving effect to any conflict of laws principles that would cause the laws of any other jurisdiction to apply. The Parties submit to the jurisdiction and agree to the proper venue of, all state and federal courts located within the Commonwealth of Massachusetts.

**20. Protected Disclosures**. Nothing contained in this Agreement, any other agreement with the Company, or any Company policy limits Consultant's ability, with or without notice to the Company, to: (i) file a charge or complaint with any federal, state or local governmental agency or commission (a "<u>Government Agency</u>"), including without limitation, the Securities and Exchange Commission (the "<u>SEC</u>"); (ii) communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including by providing non-privileged documents or information; or (iii) testify truthfully in a legal proceeding. Any such communications and disclosures must be consistent with applicable law and the information disclosed must not have been obtained through a communication that was subject to the attorney-client privilege (unless disclosure of that information would otherwise be permitted consistent with such privilege or applicable law). The Company will not limit any right Consultant may have to receive an award pursuant to the whistleblower provisions of any applicable law or regulation for providing information to the SEC or any other Government Agency.

**21. Defend Trade Secrets Act of 2016**. Consultant acknowledges receipt of the following notice under 18 U.S.C. § 1833(b)(1): "An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal."

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**IN WITNESS WHEREOF,** the Parties have executed this Agreement by their duly authorized representatives as of the Effective Date.

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| | | | |
|:---|:---|:---|:---|
| **PRIME MEDICINE, INC.** | **PRIME MEDICINE, INC.** | **CONSULTANT** | **CONSULTANT** |
| By: | /s/ Jeffrey Marrazzo | By: | /s/ Keith Gottesdiener |
| Printed Name: | Jeffrey Marrazzo | Printed Name: | Keith Gottesdiener, M.D. |
| Date: | 5/18/2025 | Date: | 5/18/2025 |
|  |  | Tax Id No.: |  |

---

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**EXHIBIT A**

Terms with initial capitalization and not otherwise defined herein shall have the meanings ascribed to them in the Consulting Agreement (the "Agreement") to which this Exhibit A is attached.

<u>Description of Services</u>

**[\*\*\*]**

<u>Monthly Fees</u>

As compensation for the performance of the Services, during the Consulting Term, the Company will pay Consultant at the rate of $1,000 per hour.

Such fees shall be paid within thirty (30) days after the Company's receipt of Consultant's invoice indicating that Services were performed during the applicable invoice period, as well as any other information reasonably required by the Company.

## Exhibit 10.4

**Exhibit 10.4**

**AMENDED AND RESTATED EMPLOYMENT AGREEMENT**

This Amended and Restated Employment Agreement ("<u>Agreement</u>") is made between Prime Medicine, Inc., a Delaware corporation (including its successors and assigns, the "<u>Company</u>"), and Allan Reine, M.D. (the "<u>Executive</u>") and is effective as on the first day of the Executive's employment in the role of the Company's Chief Executive Officer (the "<u>CEO</u>"), which is anticipated to be May 19, 2025 (the "<u>Effective Date</u>"). Upon the Effective Date, this Agreement will fully supersede the Employment Agreement between the Company and the Executive dated January 17, 2024 (the "<u>Prior Employment Agreement</u>"). Until the Effective Date, the Prior Employment Agreement shall continue to remain in effect. If for any reason the Executive does not become the CEO, this Agreement shall be *void ab initio*.

WHEREAS, the Executive currently serves in the role of the Company's Chief Financial Officer;

WHEREAS, the Company's current President and CEO's employment with the Company is ending, subject to the terms of a fully executed Separation Agreement; and

WHEREAS, the Company desires to employ the Executive and the Executive desires to be employed by the Company in the role as CEO immediately following the President and CEO's Date of Termination (as defined in the Separation Agreement) on the terms and conditions contained herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.<u>Employment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Term</u>. The Company shall employ the Executive and the Executive shall be employed by the Company pursuant to this Agreement commencing as of the Effective Date and continuing until such employment is terminated in accordance with the provisions hereof (the "<u>Term</u>"). The Executive's employment with the Company will continue be "at will," meaning that the Executive's employment may be terminated by the Company or the Executive at any time for any or no reason, subject to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Position and Duties</u>. The Executive shall have such powers and duties consistent with that role as may from time to time be prescribed by the Company's Board of Directors (the "<u>Board</u>"). In addition, the Executive shall serve as a member of the Board for so long as he remains the CEO of the Company, subject to any required stockholder vote, *provided* that the Executive shall be deemed to have resigned from all officer and board member positions that the Executive holds with the Company or any of its or their respective subsidiaries and affiliates upon the ending of the Executive's employment for any reason. The Executive shall execute any documents in reasonable form as may be requested to confirm or effectuate any such resignations. This is a full-time position, and the Executive shall not engage in any other

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employment, consulting or other business activities (whether full-time or part-time), except as expressly authorized in writing by the Board; *provided*, *however*, that the Executive may continue to serve on the board of directors for **ONK Therapeutics**, so long as such activities do not materially interfere with the Executive's performance of the Executive's duties hereunder or create a conflict of interest with the Executive's obligations to the Company. Notwithstanding the foregoing, the Executive may engage in professional and educational organizations, religious, charitable and other community activities (as well as manage the Executive's personal investments) so long as any outside activities do not interfere or conflict with the Executive's obligations to the Company. Any compensation received by the Executive for outside board service or other activities shall belong solely to the Executive, and the Company shall have no right to such compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Work Location</u>. The Executive's primary work location is remote, based in New York, New York, *provided* that the Executive may be required to travel for business, consistent with the Company's business needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Commuting Costs</u>. From the commencement of the Executive's employment with the Company, the Company shall reimburse the Executive for all reasonable and properly documented commuting expenses incurred by him in connection with his commute between Cambridge, Massachusetts and New York, New York. All required payments are subject to legally required tax withholdings.

2.<u>Compensation and Related Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Base Salary</u>. The Company will pay the Executive a base salary at the rate of $665,000 per year, payable in accordance with the Company's standard payroll schedule for its executive officers and subject to applicable deductions and withholdings. The Executive's base salary will be subject to periodic review and adjustments by the Board or the Compensation Committee of the Board (the "<u>Compensation Committee</u>"). The base salary in effect at any given time is referred to herein as the "<u>Base Salary</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Annual Bonus</u>. The Executive will be eligible to receive an annual target performance bonus of 60% of the Executive's Base Salary; *provided* that the target incentive compensation for calendar year 2025 shall be calculated based on (i) the target annual incentive compensation in effect prior to the Effective Date and the actual number of days the Executive is employed by the Company under the Prior Agreement in 2025; and (ii) the target annual incentive compensation in effect on and after the Effective Date and the actual number of days the Executive is employed by the Company under this Agreement in 2025. The annual target performance bonus in effect at any given time is referred to herein as "<u>Target Bonus</u>." The actual bonus amount is discretionary. To earn an annual bonus, the Executive must be employed by the Company as of the payment date of such bonus, except as otherwise provided herein; provided that if the Executive is terminated by the Company without Cause or the Executive resigns for Good Reason (as such terms are defined in Section 3), in either event on or after January 1 but before the date bonuses for the prior year are paid to the Company's other executives (the "<u>Bonus Payment Date</u>"), the bonus amount (if any) that the Executive would have been paid if the Executive had remained employed through the Bonus Payment Date shall be paid to the

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Executive on the Bonus Payment Date if the Executive enters into, does not revoke and complies with the Separation Agreement (as defined below). Any annual bonus will be paid no later than March 15th of the calendar year following the calendar year to which such bonus relates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Expenses</u>. The Company will promptly reimburse the Executive for all reasonable business expenses incurred by the Executive in performing services hereunder, in accordance with the policies and procedures then in effect and established by the Company for its executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Benefits/Paid Time Off.</u> The Executive will be eligible, subject to the terms of the applicable plans and programs, to participate in the employee benefits and insurance programs and be eligible for paid time off generally made available to the Company's full-time executive employees. The Company reserves the right to modify, amend or cancel any of its benefits plans or programs at any time. The Executive will be entitled to indemnification by the Company in accordance with the Company's bylaws and, to the extent procured by the Company, any applicable directors and officers ("<u>D&O</u>") liability insurance policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Equity</u>. Following the full execution of this Agreement and prior to the Effective Date and subject to the final approval of the Board, the Executive will be granted an option to purchase 2,000,000 shares of the Company's common stock with an exercise price per share equal to the fair market value as of the date of grant (the "<u>CEO Option</u>"). The CEO Option will be subject to the terms of and contingent upon the Executive's execution of a stock option award agreement issued pursuant to the Company's 2022 Stock Option and Incentive Plan (the "<u>Plan</u>"); *provided*, *however*, and notwithstanding anything to the contrary in any applicable option agreement or other stock-based award agreement, in the event that the Executive's employment is terminated by the Company without Cause or by the Executive for Good Reason, in each case during the Change in Control Period (as defined below), all of the then-outstanding and unvested portion of the Executive's stock options and other stock-based awards that are subject solely to time-based vesting shall become fully vested and exercisable or nonforfeitable immediately as of the Date of Termination (as defined below). For the avoidance of doubt, (I) the forfeiture provisions upon a Change in Control described in the Plan shall not apply to the Executive's equity awards that are subject to acceleration pursuant to this subsection, and (II) any stock options or other stock-based awards that are subject to performance-based vesting that are granted to the Executive after the Effective Date shall not be subject to acceleration pursuant to this subsection, and the vesting and any acceleration of vesting of such awards (if any) will be addressed in the applicable award agreements.

Subject to the final approval of the Board, the Executive will be granted an option to purchase an additional 500,000 shares of the Company's common stock with an exercise price equal to the fair market value at the time of grant (the "<u>CEO Milestone Equity</u>"). Milestone Equity will vest upon achievement of each agreed milestone that will be set forth in the applicable equity agreement (the "<u>CEO Milestone</u>"). The parties agree that the CEO Milestone shall be proof of concept on one of the Company's liver programs by end of 2027, as determined by the Board in its reasonable good faith discretion. The CEO Milestone Equity will be subject to the terms of, and contingent upon the Executive's execution of, a stock option agreement issued pursuant to

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the Plan. In the event of any discrepancy between this Agreement and the applicable stock option agreement, including, without limitation, with respect to the description of the CEO Milestones, the CEO Milestone Equity and the CEO Option, the stock option agreement will govern.

3.<u>Termination</u>. The Executive's employment hereunder may be terminated without any breach of this Agreement under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Death.</u> The Executive's employment hereunder shall terminate upon death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Disability</u>. The Company may terminate the Executive's employment if the Executive is disabled and unable to perform or expected to be unable to perform the essential functions of the Executive's then existing position or positions under this Agreement with or without reasonable accommodation for a period of 180 days (which need not be consecutive) in any 12-month period. If any question shall arise as to whether during any period the Executive is disabled so as to be unable to perform the essential functions of the Executive's then existing position or positions with or without reasonable accommodation, the Executive may, and at the request of the Company shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive or the Executive's guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue. The Executive shall cooperate with any reasonable request of the physician in connection with such certification. If such question shall arise and the Executive shall fail to submit such certification, the Company's determination of such issue shall be binding on the Executive. Nothing in this Section 3(b) shall be construed to waive the Executive's rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Termination by the Company for Cause</u>. The Company may terminate the Executive's employment hereunder for Cause. For purposes of this Agreement, "Cause" shall mean any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the Executive's dishonest statements or acts with respect to the Company or any affiliate of the Company, or any current or prospective customers, suppliers, vendors or other third parties with which such entity does business that results in or is reasonably anticipated to result in material harm to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.the Executive's commission of (A) a felony or (B) any misdemeanor involving moral turpitude, deceit, dishonesty or fraud;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the Executive's refusal to perform the Executive's assigned duties and responsibilities, which refusal to perform continues, in the reasonable judgment of the Board, for 30 days after written notice given to the Executive by the Board describing such refusal in reasonable detail;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.the Executive's gross negligence, willful misconduct or insubordination with respect to the Company that results in or is reasonably anticipated to result in harm to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.the Executive's material violation of any material provision of any written employment policies or any agreement(s) between the Executive and the Company, including any agreement relating to noncompetition, nonsolicitation, nondisclosure and/or assignment of inventions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.the Executive's failure to cooperate with a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the Board to cooperate, or the willful destruction or failure to preserve documents or other materials known to be relevant to such investigation or the inducement of others to fail to cooperate or to produce documents or other materials in connection with such investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Termination by the Company without Cause.</u> The Company may terminate the Executive's employment hereunder at any time without Cause. Any termination by the Company of the Executive's employment under this Agreement which does not constitute a termination for Cause under Section 3(c) and does not result from the death or disability of the Executive under Section 3(a) or (b) shall be deemed a termination without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Termination by the Executive</u>. The Executive may terminate employment hereunder at any time for any reason, including but not limited to, Good Reason. For purposes of this Agreement, "Good Reason" shall mean that the Executive has complied with the Good Reason Process (hereinafter defined) following the occurrence of any of the following events without the Executive's consent (each, a "Good Reason Condition"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.a material diminution in the Executive's title, responsibilities, authority or duties, except that a suspension of the Executive's responsibilities, authority and/or duties for the Company during any portion of a bona fide internal investigation or an investigation by regulatory or law enforcement authorities shall not be a Good Reason Condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.a material diminution in the Executive's Base Salary except for across-the-board salary reductions based on the Company's financial performance similarly affecting all or substantially all senior management employees of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.a change of more than 50 miles in the geographic location at which the Executive is required to provide services to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.a material breach of this Agreement or any equity award by the Company.

The "<u>Good Reason Process</u>" shall mean that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the Executive reasonably determines that a Good Reason Condition has occurred;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.the Executive notifies the Company in writing of the occurrence of the Good Reason Condition within 30 days of the Executive's knowledge of such condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the Executive cooperates in good faith with the Company's efforts, for a period of not less than 30 days following such notice (the "<u>Cure Period</u>"), to remedy the Good Reason Condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.notwithstanding such efforts, the Good Reason Condition continues to exist at the end of the Cure Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.the Executive terminates employment within 30 days after the end of the Cure Period.

If the Company cures the Good Reason Condition during the Cure Period, Good Reason shall be deemed not to have occurred.

4.<u>Matters related to Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Notice of Termination</u>. Except for termination as specified in Section 3(a), any termination of the Executive's employment by the Company or any such termination by the Executive shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a "<u>Notice of Termination</u>" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Date of Termination</u>. "<u>Date of Termination</u>" shall mean: (i) if the Executive's employment is terminated by death, the date of death; (ii) if the Executive's employment is terminated on account of disability under Section 3(b) or by the Company for Cause under Section 3(c), the date on which Notice of Termination is given; (iii) if the Executive's employment is terminated by the Company without Cause under Section 3(d), the date on which a Notice of Termination is given or the date otherwise specified by the Company in the Notice of Termination; (iv) if the Executive's employment is terminated by the Executive under Section 3(e) other than for Good Reason, 30 days after the date on which a Notice of Termination is given, and (v) if the Executive's employment is terminated by the Executive under Section 3(e) for Good Reason, the date on which a Notice of Termination is given after the end of the Cure Period. Notwithstanding the foregoing, in the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Accrued Obligations</u>. If the Executive's employment with the Company is terminated for any reason, the Company shall pay or provide to the Executive (or to the Executive's authorized representative or estate) (i) any Base Salary earned through the Date of Termination; (ii) unpaid expense reimbursements (subject to, and in accordance with, Section 2(c) of this Agreement); and (iii) any vested benefits the Executive may have under any employee benefit plan of the Company through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans. The

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payments and benefits due to the Executive under this Section 4(c) are collectively referred to herein as the "Accrued Obligations."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Resignation of All Other Positions</u>. To the extent applicable, the Executive shall be deemed to have resigned from all officer and board member positions that the Executive holds with the Company or any of its respective subsidiaries and affiliates upon the termination of the Executive's employment for any reason. The Executive shall execute any documents in reasonable form as may be requested to confirm or effectuate any such resignations.

5.<u>Severance Pay and Benefits Upon Termination by the Company without Cause or by the Executive for Good Reason Outside the Change in Control Period</u>. If the Executive's employment is terminated by the Company without Cause as provided in Section 3(d), or the Executive terminates employment for Good Reason as provided in Section 3(e), in each case outside of the Change in Control Period, then, in addition to the Accrued Obligations, and subject to (i) the Executive signing a separation agreement and release in a form and manner reasonably satisfactory to the Company, which shall include, without limitation, a general release of claims against the Company and all related persons and entities that shall not release the Executive's rights under this Agreement, a reaffirmation of the Executive's Continuing Obligations (as defined below), and, in the Company's sole discretion, a one year post- employment noncompetition agreement, and shall provide that if the Executive breaches in any material respect the Continuing Obligations, all payments of the Severance Amount (as defined below) shall immediately cease (the "<u>Separation Agreement</u>"), and (ii) the Separation Agreement becoming irrevocable, all within 60 days after the Date of Termination (or such shorter period as set forth in the Separation Agreement), which shall include a seven (7) business day revocation period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Company shall pay the Executive an amount equal to the sum of (i) twelve (12) months of the Executive's then-current Base Salary plus (ii) one times the Executive's Target Bonus for the then-current year (the "<u>Severance Amount</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)subject to the Executive's copayment of premium amounts at the applicable active employees' rate and the Executive's proper election to receive benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"), the Company shall pay to the group health plan provider or the COBRA provider a monthly payment equal to the monthly employer contribution that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company until the earliest of (A) the twelve month anniversary of the Date of Termination; (B) the date that the Executive becomes eligible for group medical plan benefits under any other employer's group medical plan; or (C) the cessation of the Executive's health continuation rights under COBRA; provided, however, that if the Company determines that it cannot pay such amounts to the group health plan provider or the COBRA provider (if applicable) without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then the Company shall convert such payments to payroll payments directly to the Executive for the time period specified above. Such payments to the Executive shall be subject to tax-related deductions and withholdings and paid on the Company's regular payroll dates.

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The amounts payable under Section 5 shall be paid out in substantially equal installments in accordance with the Company's payroll practice over twelve (12) months commencing within 60 days after the Date of Termination; *provided*, *however*, that if the 60-day period begins in one calendar year and ends in a second calendar year, such payments, to the extent they qualify as "non-qualified deferred compensation" within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), shall begin to be paid in the second calendar year by the last day of such 60-day period; *provided*, *further*, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination. Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). For the avoidance of doubt, the Executive shall not be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under this Section 5, subject to the terms of this Agreement.

6.<u>Severance Pay and Benefits Upon Termination by the Company without Cause or by the Executive for Good Reason during the Change in Control Period</u>. The provisions of this Section 6 shall apply in lieu of, and expressly supersede, the provisions of Section 5 if (i) the Executive's employment is terminated either (a) by the Company without Cause as provided in Section 3(d), or (b) by the Executive for Good Reason as provided in Section 3(e), and (ii) the Date of Termination occurs during the Change in Control Period. These provisions shall terminate and be of no further force or effect after the Change in Control Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If the Executive's employment is terminated by the Company without Cause as provided in Section 3(d) or the Executive terminates employment for Good Reason as provided in Section 3(e) and in each case the Date of Termination occurs during the Change in Control Period, then, in addition to the Accrued Obligations, and subject to the signing of the Separation Agreement by the Executive and the Separation Agreement becoming fully effective, all within the time frame set forth in the Separation Agreement but in no event more than 60 days after the Date of Termination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the Company shall pay the Executive a lump sum in cash in an amount equal to the sum of (A) 18 months of the Executive's then-current Base Salary (or the Executive's Base Salary in effect immediately prior to the Change in Control, if higher) plus (B) 1.5 times the Executive's Target Bonus for the then-current year (or the Executive's Target Bonus in effect immediately prior to the Change in Control, if higher) (the "<u>Change in Control Payment</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.subject to the Executive's copayment of premium amounts at the applicable active employees' rate and the Executive's proper election to receive benefits under COBRA, the Company shall pay to the group health plan provider or the COBRA provider a monthly payment equal to the monthly employer contribution that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company until the earliest of (A) the 18 month anniversary of the Date of Termination; (B) the date that the Executive becomes eligible for group medical plan benefits under any other employer's group medical plan; or (C) the cessation of the Executive's health continuation rights

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under COBRA; provided, however, that if the Company determines that it cannot pay such amounts to the group health plan provider or the COBRA provider (if applicable) without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then the Company shall convert such payments to payroll payments directly to the Executive for the time period specified above. Such payments to the Executive shall be subject to tax-related deductions and withholdings and paid on the Company's regular payroll dates.

The amounts payable under this Section 6(a) shall be paid or commence to be paid within 60 days after the Date of Termination; *provided*, *however*, that if the 60-day period begins in one calendar year and ends in a second calendar year, such payments to the extent they qualify as "non-qualified deferred compensation" within the meaning of Section 409A of the Code, shall be paid or commence to be paid in the second calendar year by the last day of such 60-day period. For the avoidance of doubt, the Executive shall not be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under this Section 6, subject to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Additional Limitation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code, and the applicable regulations thereunder (the "Aggregate Payments"), would be subject to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not below zero) so that the sum of all of the Aggregate Payments shall be $1.00 less than the amount at which the Executive becomes subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction shall only occur if it would result in the Executive receiving a higher After Tax Amount (as defined below) than the Executive would receive if the Aggregate Payments were not subject to such reduction. In such event, the Aggregate Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Aggregate Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.For purposes of this Section 6(b), the "After Tax Amount" means the amount of the Aggregate Payments less all federal, state, and local income, excise and employment taxes imposed on the Executive as a result of the Executive's receipt of the Aggregate Payments. For purposes of determining the After Tax Amount, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation

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applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.The determination as to whether a reduction in the Aggregate Payments shall be made pursuant to Section 6(b)(i) shall be made by a nationally recognized accounting firm selected by the Company (the "<u>Accounting Firm</u>"), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Company or the Executive. Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i."<u>Change in Control</u>" shall mean a "Sale Event" as defined in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii."<u>Change in Control Period</u>" shall mean the period beginning on the date that is three (3) months prior to the date of the consummation of the first event constituting a Change in Control (the "<u>Closing Date</u>") and ending on the 12 month anniversary of the Closing Date.

7.<u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive's separation from service within the meaning of Section 409A of the Code, the Company determines that the Executive is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement or otherwise on account of the Executive's separation from service would be considered deferred compensation otherwise subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive's separation from service, or (B) the Executive's death. If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year

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(except for any lifetime or other aggregate limitation applicable to medical expenses). Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To the extent that any payment or benefit described in this Agreement constitutes "non-qualified deferred compensation" under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive's termination of employment, then such payments or benefits shall be payable only upon the Executive's "separation from service." The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with or are exempt from Section 409A of the Code. Each payment pursuant to this Agreement or the Restrictive Covenants Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.

8.<u>Continuing Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Restrictive Covenants Agreement</u>. The confidentiality, assignment of inventions, nonsolicitation and noncompetition obligations set forth in the Employee Confidentiality, Assignment, Nonsolicitation and Noncompetition Agreement attached to the Prior Agreement as <u>Exhibit A</u> (the "<u>Restrictive Covenants Agreement</u>") are hereby expressly preserved and remain in full force and effect. For purposes of this Agreement, the obligations in this Section 8 and those that arise in the Restrictive Covenants Agreement and any other agreement relating to confidentiality, assignment of inventions, or other restrictive covenants shall collectively be referred to as the "<u>Continuing Obligations</u>." For the avoidance of doubt, all restrictive covenants obligations are supplemental to one another, and in the event of any conflict between restrictive covenants obligations, the most restrictive provision that is enforceable shall govern. In the event the Executive is entitled to both payments pursuant to the Restrictive Covenants Agreement and severance payments pursuant to Section 5 or Section 6 of this Agreement, then the severance payments pursuant to Section 5 or Section 6 of this Agreement received in any calendar year will be reduced by the amount the Executive is paid in the same such calendar year pursuant to the Restrictive Covenants Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Third-Party Agreements and Rights</u>. The Executive represents to the Company that the Executive's execution of this Agreement, the Executive's employment with the

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Company and the performance of the Executive's proposed duties for the Company will not violate any obligations the Executive may have to any previous employer or other party. In the Executive's work for the Company, the Executive will not disclose or make use of any information in violation of any agreements with or rights of any such previous employer or other party, and the Executive will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Litigation and Regulatory Cooperation</u>. During and for 36 months after the Executive's employment, the Executive shall cooperate reasonably with the Company in (i) the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company, and (ii) the investigation, whether internal or external, of any matters about which the Company believes the Executive may have knowledge or information. The Executive's reasonable cooperation in connection with such claims, actions or investigations shall include, but not be limited to, being available to meet with counsel to answer questions or to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times. During and after the Executive's employment, the Executive also shall cooperate reasonably with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while the Executive was employed by the Company. The Company shall reimburse the Executive for any reasonable out-of-pocket expenses incurred in connection with the Executive's performance of obligations pursuant to this Section 8(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Relief</u>. The Executive agrees that it would be difficult to measure any damages caused to the Company which might result from any breach by the Executive of the Continuing Obligations, and that in any event money damages would be an inadequate remedy for any such breach. Accordingly, the Executive agrees that if the Executive breaches, or proposes to breach, any portion of the Continuing Obligations, the Company shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the Company.

9.<u>Consent to Jurisdiction</u>. The parties hereby consent to the jurisdiction of the state and federal courts of the Commonwealth of Massachusetts. Accordingly, with respect to any such court action, the Executive (a) submits to the exclusive personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.

10.<u>Waiver of Jury Trial</u>. Each of the Executive and the Company irrevocably and unconditionally WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE EXECUTIVE'S EMPLOYMENT BY THE COMPANY OR ANY AFFILIATE OF THE COMPANY, INCLUDING WITHOUT

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LIMITATION THE EXECUTIVE'S OR THE COMPANY'S PERFORMANCE UNDER, OR THE ENFORCEMENT OF, THIS AGREEMENT.

11.<u>Integration</u>. This Agreement, together with the Equity Documents and the Continuing Obligations, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the parties concerning such subject matter.

12.<u>Withholding; Tax Effect</u>. All forms of compensation referred to in this Agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law. The Executive hereby acknowledges that the Company does not have a duty to design its compensation policies in a manner that minimizes the Executive's tax liabilities, and the Executive will not make any claim against the Company or the Board related to tax liabilities arising from the Executive's compensation.

13.<u>Assignment; Successors and Assigns</u>. Neither the Executive nor the Company may make any assignment of this Agreement or any interest in it, by operation of law or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and obligations under this Agreement (including the Restrictive Covenants Agreement) without the Executive's consent to any affiliate or to any person or entity with whom the Company shall hereafter effect a reorganization or consolidation, into which the Company merges or to whom it transfers all or substantially all of its properties or assets; provided, further that if the Executive remains employed or becomes employed by the Company, the purchaser or any of their affiliates in connection with any such transaction, then the Executive shall not be entitled to any payments or benefits pursuant to Section 5 or Section 6 of this Agreement or any accelerated vesting pursuant to Section 2(e) of this Agreement solely as a result of such transaction (except that, for the avoidance of doubt, the Executive will be eligible for double trigger accelerated vesting as set forth herein). This Agreement shall inure to the benefit of and be binding upon the Executive and the Company, and each of the Executive's and the Company's respective successors, executors, administrators, heirs and permitted assigns. In the event of the Executive's death after the Executive's termination of employment but prior to the completion by the Company of all payments due to the Executive under this Agreement, the Company shall continue such payments to the Executive's beneficiary designated in writing to the Company prior to the Executive's death (or to the Executive's estate, if the Executive fails to make such designation).

14.<u>Enforceability</u>. If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

15.<u>Survival</u>. The provisions of this Agreement (and the Restrictive Covenants Agreement) shall survive the termination of this Agreement and/or the termination of the Executive's employment to the extent necessary to effectuate the terms contained herein.

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16.<u>Waiver</u>. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

17.<u>Notices</u>. Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the Chairman of the Board. Notices, requests, demands and other communications provided for by this Agreement shall also be sufficient if sent by email to the Company email address of the Executive or, in the case of Company, the email address of the Chairman of the Board, with confirmation of receipt.

18.<u>Amendment</u>. This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company.

19.<u>Effect on Other Plans and Agreements</u>. An election by the Executive to resign for Good Reason under the provisions of this Agreement shall not be deemed a voluntary termination of employment by the Executive for the purpose of interpreting the provisions of any of the Company's benefit plans, programs or policies. Nothing in this Agreement shall be construed to limit the rights of the Executive under the Company's benefit plans, programs or policies except as otherwise provided in Section 8 hereof, and except that the Executive shall have no rights to any severance benefits under any Company severance pay plan, offer letter or otherwise. Except for the Restrictive Covenants Agreement, in the event that the Executive is party to an agreement with the Company providing for payments or benefits under such plan or agreement and under this Agreement, the terms of this Agreement shall govern and the Executive may receive payment under this Agreement only and not both. Further, Section 5 and Section 6 of this Agreement are mutually exclusive and in no event shall the Executive be entitled to payments or benefits pursuant to both Section 5 and Section 6 of this Agreement.

20.<u>Governing Law</u>. This is a Massachusetts contract and shall be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles thereof. With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the First Circuit.

21.<u>Conditions</u>. Notwithstanding anything to the contrary herein, the effectiveness of this Agreement shall be conditioned on (i) the Executive's satisfactory completion of reference and background checks, if so requested by the Company, and (ii) the Executive's submission of satisfactory proof of the Executive's legal authorization to work in the United States.

22.<u>Counterparts</u>. This Agreement may be executed in separate counterparts. When both counterparts are signed, they shall be treated together as one and the same document. PDF copies of signed counterparts shall be equally effective as originals.

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[Signature page follows]

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IN WITNESS WHEREOF, the parties have executed this Agreement effective on the Effective Date.

**PRIME MEDICINE, INC.**

/s/ Jeffrey Marrazzo

By: Jeffrey Marrazzo

Its: Executive Chair

**EXECUTIVE**

/s/ Allan Reine

## Exhibit 10.5

**Exhibit 10.5**

**CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. INFORMATION THAT WAS OMITTED HAS BEEN NOTED IN THIS DOCUMENT WITH A PLACEHOLDER IDENTIFIED BY THE MARK "[\*\*\*]".**

July 17, 2025

**<u>Personal and Confidential</u>**

Jeremy Duffield, M.D. Ph.D., FRCP

[\*\*\*]

Dear Jeremy:

Re: <u>Separation Agreement</u> 

This letter proposes the Separation Agreement ("<u>Agreement</u>") between you and Prime Medicine, Inc. (the "<u>Company</u>") that is referenced in Section 5 of the Amended and Restated Employment Agreement between you and the Company and that became effective as of July 20, 2022 (the "<u>Employment Agreement</u>"). This serves as a Notice of Termination as defined in Section 4(a) of your Employment Agreement and the ending of your employment will be deemed to be a termination without Cause under Section 3(d) of your Employment Agreement. Your employment with the Company will terminate on July 15, 2025, and that date shall be referred to herein as the "<u>Separation Date</u>" or the "<u>Date of Termination</u>". If capitalized terms are not defined herein, they will have the meaning provided in the Employment Agreement.

Regardless of whether you enter into the Agreement, the following bulleted terms and obligations shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company shall pay you (i) any Base Salary earned through the Date of Termination; (ii) unpaid expense reimbursements (subject to, and in accordance with, Section 2(c) of the Employment Agreement); and (iii) any vested benefits you may have under any employee benefit plan of the Company through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans (collectively the "Accrued Obligations").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Your coverage, if any, under the Company's health plan will continue through July 31, 2025. If eligible, you may elect to continue your health insurance benefits, if any, in accordance with and subject to the law known as COBRA. If applicable, you will be notified by separate memoranda of your rights under COBRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Your eligibility to participate in the Company's other employee benefit plans and programs will cease on the Separation Date in accordance with the terms and conditions

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of each of those benefit plans and programs. Your rights to benefits, if any, are governed by the terms and conditions of those benefit plans and programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Without limiting the generality of the foregoing and for the avoidance of doubt you are not eligible to receive any bonus or other forms of incentive compensation with respect to you working for the Company during fiscal year 2025 or thereafter, unless otherwise provided below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Your "Service Relationship" for purposes of vesting in any outstanding unvested stock options, restricted stock units, or other equity awards (the "Equity Awards") ends on the later of (i) Date of Termination, or (ii) the termination date of the Consulting Agreement dated July 15, 2025 between you and the Company (the "Consulting Agreement"), if applicable, all pursuant to the terms of the applicable equity award agreement and underlying equity incentive plan(s) (the "Equity Documents").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To the extent applicable, you shall be deemed to have resigned from all officer and board member positions that you hold with the Company or any of its respective subsidiaries as of the Date of Termination. You shall execute any documents in reasonable form as may be requested to confirm or effectuate any such resignations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You are obligated, to comply with the Continuing Obligations as described in the Employment Agreement, including without limitation the Restrictive Covenants Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The provisions of the Employment Agreement (and the Restrictive Covenants Agreement and the Equity Documents) shall survive the termination of the Employment Agreement and the termination of your employment to the extent necessary to effectuate the terms contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company will not actively contest any claim you may make for unemployment compensation benefits, provided, however, that nothing herein shall prevent the Company from responding truthfully to any inquiries from the state unemployment agency or require the Company to make any false or misleading statement to any government entity or other third party. The state unemployment agency, not the Company, determines eligibility for unemployment compensation benefits.

The payments and other terms set forth above will not be affected by whether or not you agree to the terms set forth below.

If you enter into this Agreement, you acknowledge that you are doing so voluntarily. You understand that by entering into this Agreement, the Company is not admitting in any way that it violated any legal obligation to you or to any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Severance Pay and Benefits</u>. Subject to the terms of this Agreement, *provided* (i) you timely execute, return, and do not revoke the Agreement during the time period set forth

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below; and (ii) you comply with the terms of this Agreement and with the Restrictive Covenants Agreement, the Company agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company shall pay you an amount equal to the sum of (i) nine (9) months of your final Base Salary plus (ii) 0.75 times your Target Bonus for 2025 (the "<u>Severance Amount</u>"). The Severance Amount will be made, less lawful deductions and/or withholdings, in substantially equivalent installments in accordance with the Company's regular payroll practice over nine (9) months and beginning on the first reasonably practicable regular payroll date following the Agreement Effective Date (as defined in Section 21), provided, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Separation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Provided that you are eligible for and properly elect to continue your medical, dental and vision coverage under COBRA and subject to your copayment of premium amounts at the applicable active employee's rate, the Company will pay to the COBRA provider a monthly payment equal to the monthly employer contribution that the Company would have made to provide health insurance to you if you had remained employed by the Company, with such contribution ending on the earliest of (i) the twelve (12) month anniversary of the Date of Termination; (ii) the date that you become eligible for group medical plan benefits under any other employer's group medical plan; or (iii) the cessation of your health continuation rights under COBRA; provided, however, that if the Company determines that it cannot pay such without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then the Company shall convert such payments to payroll payments directly to you for the time period specified above. Such payments to you shall be subject to tax-related deductions and withholdings and paid on the Company's regular payroll dates. Thereafter, if you want to continue coverage under COBRA, you will be required to pay the full cost of any COBRA coverage for the remainder of the COBRA period. You agree to promptly notify the Company if you become eligible for group medical plan benefits under any other employer's group medical plan during the time period that the Company is contributing towards the cost of your COBRA premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding anything to the contrary, any and all stock options of the Company held by you that are outstanding and vested as of the termination of the Consulting Agreement shall be exercisable until the date that is four (4) months following the termination of the Consulting Agreement; provided, that no stock option shall be exercisable after its applicable original expiration date (the "Extended Exercise Period"). You acknowledge that you have been advised by the Company to consult with your personal tax advisor regarding the U.S. Federal tax impact as well as any impact under state, local and/or non-U.S. tax statutes as a result of the Extended Exercise Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>General Release of Claims</u>. In consideration for, among other terms, the opportunity to receive Severance Pay and Benefits described in Section 1 of this Agreement, to which you acknowledge and agree that you would otherwise not be entitled, you voluntarily release and forever discharge the Company, its affiliated and related entities (including, without limitation, direct and indirect parent companies, and direct and indirect subsidiaries and direct

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and indirect affiliates), its and their respective predecessors, successors and assigns, its and their respective employee benefit plans and fiduciaries of such plans, and the past, present and future officers, directors, stockholders, investors, members, managers, employees, attorneys, accountants, agents and representatives of each of the foregoing in their official and personal capacities (collectively referred to as the "<u>Releasees</u>") generally from all claims, demands, debts, damages and liabilities of every name and nature, known or unknown ("<u>Claims</u>") that, as of the date when you sign this Agreement, you have, ever had, now claim to have or ever claimed to have had against any or all of the Releasees. This release includes, without limitation, all Claims arising under or relating to Title VII of the Civil Rights Act of 1964, as amended; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; the Age Discrimination in Employment Act of 1967, as amended; the Older Workers Benefit Protection Act; the Immigration Reform Control Act, as amended; the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001, <u>et</u> <u>seq</u>. ("ERISA") (except for any vested benefits under any tax qualified benefit plan); the Occupational Safety and Health Act, as amended; the Civil Rights Act of 1866, 29 U.S.C. § 1981, <u>et</u> <u>seq.</u>; the Rehabilitation Act of 1973, 29 U.S.C. § 701, <u>et</u> <u>seq</u>.; the Americans With Disabilities Act of 1990, as amended; the Civil Rights Act of 1991; the Family and Medical Leave Act; the Equal Pay Act; the Fair Credit Reporting Act; the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA"); the Genetic Information Nondiscrimination Act ("GINA"); the Worker Adjustment and Retraining Notification Act (WARN), 29 U.S.C. § 2101 <u>et seq</u>.; the Massachusetts Law Against Discrimination, G.L. c. 151B; the Massachusetts Wage Payment Statute, G.L. c. 149, §§ 148, 148A, 148B, 148C, 149, 150, 150A-150C, 151, 152, 152A, <u>et</u> <u>seq</u>.; the Massachusetts Wage and Hour laws, G.L. c. 151§1A <u>et</u> <u>seq.</u>; the Massachusetts Privacy Statute, G.L. c. 214, § 1B; the Massachusetts Sexual Harassment Statute, G.L. c. 214 § 1C; the Massachusetts Civil Rights Act, G.L. c. 12, § 11H; the Massachusetts Equal Rights Act, G.L. c. 93, § 102; the Massachusetts Equal Pay Act, G.L. c. 149, § 105A; the Massachusetts Parental Leave Law, G.L. c. 149, § 105D; the Massachusetts Family and Medical Leave Law, G.L. c. 175M; or any other federal or state law, regulation, or ordinance; any public policy, contract, tort, or common law; or any allegation for costs, fees, or other expenses including attorneys' fees incurred in these matters. You further represent that you have not filed any Claim against the Releasees in any forum, and you agree not to accept damages of any nature, other equitable or legal remedies for your own benefit or attorney's fees or costs from any of the Releasees with respect to any Claim released by this Agreement, subject to Section 4 below. Notwithstanding the foregoing, this General Release of Claims does not release: (i) claims that cannot be waived as a matter of law; (ii) your rights under this Agreement; (iii) your rights to vested benefits under any Company Employee Retirement Income Security Act plan; or (iv) any rights to COBRA, unemployment compensation or Worker's Compensation benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Protected Disclosures</u>. Nothing in this Agreement or any other agreement you may have signed or company policy, prohibits, prevents, or otherwise limits you from (1) reporting possible violations of federal or other law or regulations to any governmental agency, legislative, regulatory or judicial body, or law enforcement authority (e.g., EEOC, NLRB, SEC, DOJ, CFTC, U.S. Congress, or an Inspector General), (2) filing a charge or complaint with any such governmental entity, or (3) participating, testifying, or assisting in any investigation, hearing, or other proceeding brought by, in conjunction with, or otherwise under the authority of

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any such governmental entity. To the maximum extent permitted by law, you agrees that if such an administrative claim is made, you shall not be entitled to recover any individual monetary relief or other individual remedies related to any alleged adverse employment action(s), except nothing in this Agreement prohibits, prevents, or otherwise limits your ability or right to seek or receive any monetary award or bounty from any such governmental agency in connection with protected "whistleblower" activity. You are also not required to notify or obtain permission from the Company when filing a governmental whistleblower charge or complaint or engaging or participating in protected whistleblower activity. In addition, nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b), which provides that: "An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Waiver of Rights and Claims Under the Age Discrimination in Employment Act</u>. Because you are 40 years of age or older, you are being informed that you have or may have specific rights and/or claims under the Age Discrimination in Employment Act as amended, and applicable regulations and case law (collectively, "<u>ADEA</u>") and you agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)You have been informed that you have or may have specific rights and/or claims under the ADEA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Without limiting other provisions of this Agreement, in consideration for the monies and/or benefits specified in Section 1, which you acknowledge that you are not otherwise entitled to receive, you specifically and voluntarily waive such rights and/or claims under the ADEA that you might have against the Releasees to the extent such rights and/or claims arose prior to the date this Agreement was signed by you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You understand that rights or claims under the ADEA which may arise after the date you sign this Agreement are not waived by you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)You are advised to consider the terms of this Agreement carefully and consult with or seek advice from an attorney of your choice or any other person of your choosing prior to signing this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)You have carefully read and fully understands all of the provisions of this Agreement, and you knowingly and voluntarily agree to all of the terms set forth in this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)In entering into this Agreement, you are not relying on any representation, promise or inducement made by the Company or its attorneys with the exception of those promises described in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Restrictive Covenants</u>. You understand and agree that you have been employed in a position of confidence and trust and have had access to information concerning the Company

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that the Company treats as confidential and proprietary, the disclosure of which could negatively affect the Company's interests, (collectively, the "<u>Proprietary Information</u>"). You further agree that you will continue to be bound and will abide by Employee Confidentiality, Assignment, Nonsolicitation and Noncompetition Agreement dated December 8, 2020, as amended by the Amendment to Employee Confidentiality, Assignment, Nonsolicitation and Noncompetition Agreement (the "<u>Restrictive Covenants Agreement</u>"), (<u>Attachment A</u>), which, among other obligations, prohibit the disclosure of the Company's Proprietary Information and, for a period of one year after your Separation Date, prohibits the solicitation of Company employees, customers, and vendors, provided, you shall not be entitled to the Noncompetition Consideration or Garden Leave Pay pursuant to the Restrictive Covenants Agreement and you shall not be restricted by Section 8(c) of the Restrictive Covenants Agreement ("<u>Section 8(c) Waiver</u>"). However, in further consideration of the Severance Pay and Benefits provided in Section 1 herein, you agree that you will not, for a period of twelve (12) months following the Separation Date, directly or indirectly, whether as owner, partner, shareholder, director, manager, consultant, agent, employee, co-venturer or otherwise, anywhere in the world, engage or otherwise participate in any business that is, in whole or in part, engaged in, or actively preparing to be engaged in business activities that are directly competitive with the Company (the "<u>Separation Agreement Noncompete</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Return of Company Property</u>. You represent that you have not downloaded or disposed of any property of the Company including, without limitation, information or documents (including, without limitation, computerized data and any copies made of any computerized data or software) (all of the foregoing are collectively referred to as the "<u>Documents</u>") without the prior written authorization of the Company. By July 25, 2025 you agree to ship to the Company all property of the Company, including, without limitation, computer equipment, electronic devices, cellular phones and other mobile devices, software, keys and access cards, credit cards, files and any Documents containing information concerning the Company, its business or business relationships (in the latter two cases, actual or prospective). After returning all Documents and property of the Company, you shall delete and purge any duplicates of files or documents that may contain Company information from any non-Company computer or other device that remains your property. In the event that you discover that you continue to retain any such property, you shall return it to the Company or destroy it (in the case of computerized data and software) immediately. For the avoidance of doubt, you may maintain copies of your own personnel records, to the extent applicable. Notwithstanding the foregoing, you may keep your Company laptop computer solely for use in providing Services under the Consulting Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Computer and System Access</u>. You agree that following the Separation Date, you will not access or attempt to access the Company's computer information systems, networks or resources for any reason or purpose without the prior written request and consent of the Company. Notwithstanding the foregoing, you may continue to access the Company's computer information systems, networks or resources solely for use in providing Services under the Consulting Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Continuing Obligations</u>. Section 8 of the Employment Agreement is incorporated by reference herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Non-disparagement</u>. Subject to Section 3, you agree not to make any defamatory or disparaging statements, whether in oral communications or in writing, concerning the Company or any of its affiliates; its or their products or services provided or to be provided; its or their current, former and future officers, directors, stockholders, investors (including any private equity companies that invest in the Company), members, employees, managers or agents; and its or their business affairs or financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Tax Treatment</u>. The Company shall undertake to make deductions, withholdings and tax reports with respect to payments and benefits under this Agreement to the extent that it reasonably and in good faith determines that it is required to make such deductions, withholdings and tax reports. Payments under this Agreement are stated in gross amounts and shall be paid in amounts net of any such deductions or withholdings. Nothing in this Agreement shall be construed to require the Company to make any payments to compensate you for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Effect of Breach</u>. In the event that you fail to comply with any of your obligations under this Agreement (including the obligations under the Restrictive Covenants Agreement or Section 8 of the Employment Agreement), in addition to any other legal or equitable remedies it may have for such breach, including for damages and equitable relief, the Company shall have the right to terminate or suspend the Severance Benefits specified in Section 1, including ending the Extended Exercise Period, and to seek recovery of any payments made to you or for your benefit pursuant to this Agreement and to be entitled to recover its attorney's fees and litigation costs in connection with the enforcement of this Agreement. Any such consequences of a breach by you will not affect the General Release of Claims or your continuing obligations under this Agreement or under the Restrictive Covenants Agreement.

Notwithstanding the above, (i) if you allege that the General Release of Claims or covenant not to sue was not knowing and voluntary under the ADEA, as amended, you shall not be required to tender back the Severance Pay before filing either a lawsuit or a charge of discrimination with EEOC or any comparable state or local fair employment practices agency; and (ii) nothing in this Agreement is intended to impose any condition precedent, penalty, or other limitation to your right to challenge this Agreement under the ADEA, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Non-admission</u>. Neither this Agreement nor the furnishing of any compensation under this Agreement shall be deemed or construed as an admission of any liability by the Company of any act of wrongdoing. You specifically disclaim that the Company or any of its representatives has engaged in any wrongdoing or has taken any action that would be the basis for any finding of liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Legally Binding</u>. This Agreement is a legally binding document and your signature will commit you to its terms. You acknowledge that you have been advised to discuss all aspects of this Agreement with your attorney, that you have in fact discussed all aspects of

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this Agreement with your attorney, that you have carefully read and fully understand all of the provisions of this Agreement, and that you are voluntarily entering into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>Absence of Reliance</u>. In signing this Agreement, you are not relying upon any promises or representations made by anyone at or on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>Enforceability</u>. If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement or of the Restrictive Covenants Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the Restrictive Covenants Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement and the Restrictive Covenants Agreement shall be valid and enforceable to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.<u>Waiver; Amendment</u>. No waiver of any provision of this Agreement shall be effective unless made in writing and signed by the waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>Forum; Equitable Relief</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)You and the Company hereby agree that the Superior Court of the Commonwealth of Massachusetts and the United States District Court for the District of Massachusetts shall have the exclusive jurisdiction to consider any matters related to this Agreement and the Restrictive Covenants Agreement, including without limitation any claim for violation of this Agreement or the Restrictive Covenants Agreement. With respect to any such court action, you (i) submit to the jurisdiction of such courts, (ii) consent to service of process, and (iii) waive any other requirement (whether imposed by statute, rule of court or otherwise) with respect to personal jurisdiction or venue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)You agree that it may be difficult to measure any harm caused to the Company that might result from any breach by you of your promises set forth in this Agreement or the Restrictive Covenants Agreement, and that in any event money damages may be an inadequate remedy for any such breach. Accordingly, you agree that if you breach, or propose to breach, any portion of your obligations under this Agreement or the Restrictive Covenants Agreement, the Company shall be entitled, in addition to all other remedies it may have, to seek an injunction or other appropriate equitable relief to restrain any such breach, without showing or proving any actual damage to the Company and without the necessity of posting a bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>Governing Law; Construction of Agreement</u>. This Agreement shall be construed and governed in accordance with the substantive laws of the Commonwealth of Massachusetts, without giving effect to any choice or conflict of law provision or rule (whether of the

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Commonwealth of Massachusetts or any other jurisdiction) that would cause the application of laws of any jurisdictions other than those of the Commonwealth of Massachusetts. The parties acknowledge and agree that this Agreement shall not be construed more strictly against one party than another party merely by virtue of the fact that it, or any part of it, may have been prepared by counsel for one of the parties, it being recognized that it is the result of arms-length negotiations between the parties and all parties have contributed substantially and materially to the preparation of this Agreement. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. References to agreements and other documents shall be deemed to include all subsequent amendments and other modifications thereto. References to statutes shall include all regulations promulgated thereunder and references to statutes or regulations shall be construed as including all statutory and regulatory provisions consolidating, amending or replacing the statute or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.<u>Entire Agreement</u>. This Agreement, the Restrictive Covenants Agreement and, if applicable, the Consulting Agreement constitute the entire agreement between you and the Company and supersedes any previous agreements or understandings between you and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.<u>Representations Regarding Receipt of Compensation</u>. You affirm that you have been paid and have received all leave (paid or unpaid), compensation, wages, bonuses, commissions, severance pay, and/or benefits to which you may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions, severance pay, and/or benefits are due to you, except as provided in this Agreement. You further affirm that you have no known workplace injuries or occupational diseases and have been provided and/or have not been denied any leave requested under the Family and Medical Leave Act or applicable state law. You also affirm that you have not been retaliated against for reporting any allegations of wrongdoing by the Company or its officers, including any allegations of corporate fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.<u>Time for Consideration and Revocation; Agreement Effective Date</u>. You understand and acknowledge that you have been given the opportunity to consider this Agreement for a period of 21 calendar days from your receipt of this Agreement before signing it (the "<u>Agreement Consideration Period</u>"). Any changes to this Agreement, material or otherwise, will not restart the running of the Agreement Consideration Period. In signing this Agreement, you acknowledge that you have knowingly and voluntarily entered into this Agreement without any duress or undue influence on the part or behalf of the parties hereto or any affiliate thereof. To accept this Agreement, you must return a signed, unmodified original or PDF copy of this Agreement so that it is received by Niamh Alix, Chief Human Resources Officer via email to [\*\*\*], at or before the expiration of the Agreement Consideration Period. If you sign this Agreement before the end of the Agreement Consideration Period, you acknowledge by signing this Agreement that such decision was entirely voluntary and that you had the opportunity to consider this Agreement for the entire Agreement Consideration Period. You have seven (7) business days following your execution of this Agreement to revoke the Agreement by written notice to Niamh Alix (such seven (7) business day period, the "<u>Agreement Revocation Period</u>"). For such a revocation to be effective, it must be delivered so that it is received by Niamh Alix via

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email to [\*\*\*] at or before the expiration of the Agreement Revocation Period. This Agreement shall not become effective or enforceable during the Agreement Revocation Period. This Agreement shall become effective as of the first (1<sup>st</sup>) day after the expiration of the Agreement Revocation Period (the "<u>Agreement Effective Date</u>.") For the avoidance of doubt, if you do not enter into this Agreement, your employment will end but you will not be entitled to any of the monies and/or benefits specified in Section 1 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.<u>Assignment</u>. You may not assign any of your rights or delegate any of your duties under this Agreement. The rights and obligations of the Company under this Agreement will inure to the benefit of the Company's successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.<u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be considered an original and all of which shall constitute one agreement. A copied, scanned, or faxed signature shall be treated the same as an original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.<u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Although the Company does not guarantee the tax treatment of any payments or benefits under this Agreement, it is intended that the payments and benefits under this Agreement be exempt from or, to the extent not exempt, comply with, Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively "Section 409A"), and, accordingly, to the maximum extent possible, this Agreement will be interpreted and construed consistent with such intent. Notwithstanding the foregoing, the Company does not guarantee any particular tax result, and in no event whatsoever will the Company, its affiliates, or their respective officers, directors, employees, counsel or other service providers, be liable for any tax, interest or penalty that may be imposed on you by Section 409A or damages for failing to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For purposes of Section 409A, your right to receive installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment will at all times be considered a separate and distinct payment. Whenever a payment hereunder specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To the extent that reimbursements or other in-kind benefits hereunder constitute "deferred compensation" subject to Section 409A, (<u>i</u>) all expenses or other reimbursements hereunder will be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by you, (ii) any right to reimbursement or in-kind benefits will not be subject to liquidation or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year will in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Any other provision of this Agreement to the contrary notwithstanding, in no event will any payment or benefit hereunder that constitutes "deferred compensation" subject to

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Section 409A be subject to offset by any other amount unless otherwise permitted by Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)A termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that constitute "deferred compensation" subject to Section 409A upon or following a termination of employment, unless such termination is also a "separation from service" within the meaning of Section 409A, and, for purposes of any such provision, all references in this Agreement to your "termination", "termination of employment" or like terms will mean your "separation from service" with the Company, and the date of such separation from service will be the date of termination for purposes of any such payment or benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Notwithstanding any other provision of this Agreement to the contrary, if, at the time of your separation from service, you are a "specified employee" within the meaning and in accordance with Treasury Regulation Section 1.409A-1(i), then the Company will defer the payment or commencement of any "deferred compensation" subject to Section 409A that is payable upon separation from service (without any reduction in such payments or benefits ultimately paid or provided to you) until the date that is six (6) months following separation from service or, if earlier, the earliest other date as is permitted under Section 409A (and any amounts that otherwise would have been paid during this deferral period will be paid in a lump sum on the day after the expiration of the six (6) month period or such shorter period, if applicable). The Company will determine in its sole discretion all matters relating to who is a "specified employee" and the application of and effects of the change in such determination.

<u>[</u>*Remainder of this page left blank]*

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Please indicate your agreement to the terms of this Agreement by signing and returning this Agreement within the time period set forth above.

Sincerely, Prime Medicine, Inc.

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| | | |
|:---|:---|:---|
| By: | /s/ Allan Reine | July 17, 2025 |
|  | Allan Reine, CEO | Date |

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YOU ARE ADVISED TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT. THIS IS A LEGAL DOCUMENT. YOUR SIGNATURE WILL COMMIT YOU TO ITS TERMS. BY SIGNING BELOW, YOU ACKNOWLEDGE THAT YOU HAVE CAREFULLY READ AND FULLY UNDERSTAND ALL OF THE PROVISIONS OF THIS AGREEMENT AND THAT YOU ARE KNOWINGLY AND VOLUNTARILY ENTERING INTO THIS AGREEMENT.

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| | | |
|:---|:---|:---|
| | /s/ Jeremy Duffield | July 19, 2025 |
| Jeremy Duffield | Jeremy Duffield | Date |

---

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**<u>ATTACHMENT A</u>**

**Employee Confidentiality, Assignment, Nonsolicitation and Noncompetition Agreement**

## Exhibit 10.6

**Exhibit 10.6**

**<u>CONSULTING AGREEMENT</u>**

**THIS CONSULTING AGREEMENT** ("<u>Agreement</u>") is made by and between Prime Medicine, Inc. (the "<u>Company</u>"), and Jeremy Duffield M.D., Ph.D., FRCP (the "<u>Consultant</u>"), effective as of July 15, 2025. The Company and Consultant may be referred to individually as a "Party" and collectively as the "Parties."

WHEREAS, Consultant was employed as the Company's Chief Scientific Officer (the "<u>CSO</u>");

WHEREAS, notwithstanding the termination of Consultant's employment with the Company on July 15, 2025 (the "<u>Date of Termination</u>"), the Company and Consultant have agreed that the parties will benefit from a continuing consulting arrangement between the Company and Consultant to provide Consultant's services to the Company;

WHEREAS, this consulting arrangement between the Company and Consultant shall be interpreted as a continuation of the service relationship between the Company and Consultant;

WHEREAS, the Parties intend that this Agreement will set out the terms of the Consultant's consulting arrangement with the Company; and

WHEREAS, this Consulting Agreement is contingent on Consultant entering into, not revoking and complying with the Separation Agreement dated July 17, 2025 (the "<u>Separation Agreement</u>");

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties, Consultant and the Company agree as follows:

**1. Description of Services.** Company hereby retains Consultant as an independent consultant to Company and Consultant hereby agrees to use Consultant's best efforts to provide advice and assistance to Company in the area of Consultant's expertise as set forth in more detail on <u>Exhibit A</u> (the "<u>Services</u>"), attached hereto and incorporated herein by reference. Consultant acknowledges and agrees that Company is entering into this Agreement with Consultant to retain Consultant to perform the Services personally. Company has determined that Consultant is exceptionally qualified to perform them by virtue of his knowledge, skill, and experience. Therefore, Consultant shall not delegate the performance of the Services to other individuals without the prior written consent of Company.

**2. Contract Term and Termination.** The term of this Agreement and Consultant's Services hereunder will commence on the Date of Termination and will continue until March 31, 2026, unless (i) earlier terminated in accordance with this Agreement or (ii) extended upon mutual written agreement of the Parties. Either Party may terminate this Agreement and Consultant's Services hereunder for any reason upon fourteen (14) days' written notice to the other Party. Notwithstanding the foregoing, the Company may, in addition to any other rights it may have at law or in equity, terminate the Consulting Term immediately and without prior notice for "Cause" if Consultant is in breach (and has not promptly

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cured such breach) of any material provision of this Agreement, the Separation Agreement, or the Employee Confidentiality, Assignment, Nonsolicitation and Noncompetition Agreement dated December 8, 2020, between the Company and Consultant, as amended by the Amendment to Employee Confidentiality, Assignment, Nonsolicitation and Noncompetition Agreement (the "<u>Restrictive Covenants Agreement</u>"), subject to the 8(c) Waiver and the Separation Agreement Noncompete, both as defined in the Separation Agreement. If Consultant gives or receives a notice of termination, Consultant must not perform any further Services for the Company during the notice period unless otherwise requested by the Company. In the event of termination of this Agreement and Consultant's Services hereunder for any reason, Consultant shall be entitled to fees and expenses (as set forth in Section 3) incurred prior to the effective date of termination (the time period between the Effective Date and the effective date of termination the "<u>Consulting Term</u>").

**3. Compensation and Expenses.** For Services properly performed by Consultant, the Company will pay Consultant the fees set forth on <u>Exhibit A</u>. In addition, during the Consulting Term, the Company shall reimburse Consultant for any pre-approved actual expenses incurred by Consultant in connection with the provision of Services, including pre-approved travel and lodging expenses for travel requested by the Company. For the avoidance of doubt, compensation provided under this Agreement shall be in addition to, and not in lieu of any severance pay or benefits under the Separation Agreement.

**4. Compliance with Laws.** Consultant represents and warrants that Consultant will render Services with professional skill and care and in compliance with all applicable laws, rules and regulations, including but not limited to the U.S. Food, Drug and Cosmetic Act, as amended from time to time. Further, Consultant represents that Consultant has not been debarred and is not under consideration to be debarred by the U.S. Food and Drug Administration from working in or providing consulting services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992. If Consultant is disbarred or receives any notice of an action or threat of action of debarment or investigation that could lead to debarment, Consultant shall immediately provide the Company with written notice thereof.

**5. Compliance with Obligations to Third Parties.** Consultant represents and warrants to the Company that (a) the terms of this Agreement and Consultant's performance of Services do not and will not conflict with any of Consultant's obligations to any third parties and (b) Consultant has not brought and will not bring with Consultant to the Company or use in the performance of Services any equipment, confidential information or trade secrets of any third party which are not generally available to the public, unless Consultant has obtained written authorization from such third party for their possession and use, and the Company consents in writing to such use. Further, if Consultant is a faculty member at, or an employee of, a university or hospital ("Institution") or of another company, Consultant represents and warrants that pursuant to such Institution's or company's policies concerning professional consulting and additional workload, Consultant is permitted to enter into this Agreement. If Consultant is required by such Institution or company to disclose to it, or obtain its consent to, any such proposed agreements, Consultant represents that Consultant has made such disclosure or obtained such consent.

**6. Work Product.** Consultant will make full and prompt disclosure to the Company of all work product that is developed, conceived, or reduced to practice by Consultant: (a) in the performance of the Services or (b) by use of the Company's intellectual property (including without limitation, Confidential Information), equipment or facilities (collectively the "<u>Work Product</u>"). Consultant shall not use any third-party intellectual property or facilities in performing the Services contemplated by this Agreement

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or engage in any other activities that would result in a third party having an ownership interest in any Work Product.

**7. Assignment of Work Product.** Consultant hereby assigns to the Company (and/or its designee specified by the Company in writing), all ownership and right, title and interest in Work Product such that the Company shall enjoy and shall be entitled to exercise all the rights of a sole, exclusive holder in such Work Product. During and after the Consulting Term, Consultant will cooperate fully in obtaining patent and other proprietary protection for any and all Work Product, all in the name of Company (and/or its designee) and at Company's expense, and shall execute and deliver all requested applications, assignments and other documents, and take such other measures as Company may reasonably request, in order to perfect and enforce Company's (and/or its designee's) rights in any and all Work Product. Consultant hereby appoints Company as its attorney-in-fact to execute and deliver any such documents on behalf of Consultant in the event Consultant shall fail to do so.

**8. Confidentiality & Non-Use.**

(a)Consultant acknowledges that Consultant's relationship with the Company is one of high trust and confidence and that in the course of Consultant's service to the Company, Consultant will have access to and contact with Confidential Information. "Confidential Information" means (i) all Work Product and (ii) any and all scientific, technical, financial, or business information in written, oral, visual, graphic, video, computer, electronic, or other form, that is possessed or obtained by, developed for, or given to the Company, its subsidiaries or its affiliates that is treated by the Company as confidential or proprietary and furnished or made available to Consultant by or on behalf of the Company. Confidential Information will include all information that due to its nature would cause a reasonable person in the industry to know that it is confidential or proprietary even if not so marked or identified. Consultant agrees to hold Confidential Information in confidence and exercise reasonable precautions to protect the integrity and confidentiality of the Confidential Information and to use Confidential Information solely as reasonably necessary for the performance of the Services.

(b)Consultant will have no obligation of confidentiality and non-use with respect to any portion of Confidential Information that: (i) is generally known to the public at the time of disclosure or becomes generally known through no fault of Advisor; (ii) is in Consultant's possession at the time of disclosure, as evidenced by its written records, other than as a result of Consultant's breach of any legal obligation; (iii) is obtained without restriction from a third party having the legal right to disclose the same to Advisor; or (iv) is independently developed by Consultant without the use of Confidential Information, as evidenced by Consultant's written records. If Consultant is required to disclose Confidential Information by law, governmental rule or regulation or order of a court with competent jurisdiction, Consultant may disclose such Confidential Information, provided that the disclosure is subject to applicable governmental or judicial protection available for like material, and (unless such advance notice is otherwise not required by Sections 20 or 21 of this Agreement) reasonable advance notice is given to the Company so that the Company may seek a protective order or other remedy with respect to narrowing the scope of disclosure.

(c)The Company shall at all times remain the sole owner of its Confidential Information and all intellectual property related thereto. Except as expressly set forth in this Agreement, nothing herein shall be construed as granting to Consultant, by implication, estoppel or otherwise, any right, title or interest in, or any license under, any intellectual property right of the Company (including without limitation, Confidential Information).

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(d)Upon the request of the Company, Consultant will (a) destroy any and all copies of Confidential Information and (b) provide a written certification to the Company regarding such destruction. In any event, Consultant will return all copies of Confidential Information upon the request by the Company. The obligations of non-disclosure and non-use hereof will survive any expiration or termination of this Agreement and continue in full force and effect until such time as the Company no longer treats such information as Confidential Information.

**9. Company Property**. All documents, data, records, apparatus, equipment and other physical property furnished by the Company, or otherwise made available by or on behalf of the Company, to Consultant in connection with this Agreement shall be and remain the sole property of the Company and shall be returned promptly to the Company when requested, without altering, copying, transferring or deleting any Confidential Information. In any event, Consultant shall return and deliver all such property, including any copies thereof, upon termination of his service relationship with the Company.

**10. Publication; Publicity.** Work Product may not be published, in whole or in part, by Consultant without the prior express written consent of the Company. Consultant shall not use the name, logo, trade name, service mark, or trademark, or any simulation, abbreviation, or adaptation of same, or the name of the Company, its affiliates or its subsidiaries for publicity, promotion, or similar usage without the Company's prior written consent.

**11. Independent Contractor Relationship**. Nothing contained in this Agreement shall be deemed to constitute Consultant as an employee, co-venturer or agent of the Company, it being the intent of the parties to establish an independent contractor relationship, nor shall Consultant have authority to bind the Company in any manner whatsoever by reason of this Agreement. Consultant shall at all times while on Company premises observe all security and safety policies of the Company of which Consultant is made aware. Consultant will not be eligible to participate in any vacation, group medical (except as required under the law known as COBRA) or life insurance, disability, profit sharing or retirement benefits, or any other fringe benefits or benefit plans offered by the Company to its employees, and the Company will not be responsible for withholding or paying any income, payroll, Social Security, or other federal, state, or local taxes, making any insurance contributions, including for unemployment or disability, or obtaining workers' compensation insurance on Consultant's behalf. Consultant shall bear sole responsibility for all taxes, insurance and benefits, if any, and shall indemnify and hold the Company harmless from and against any liability with respect thereto. If Consultant is reclassified by a state or federal agency or court as the Company's employee, Consultant will become a reclassified employee and will receive no benefits from the Company, except those mandated by state or federal law, even if by the terms of the Company's benefit plans or programs of the Company in effect at the time of such reclassification, Consultant would otherwise be eligible for such benefit.

**12. Other Business Activities.** During the Consulting Term, Consultant may be engaged or employed in any other business, trade, profession, or other activity that does not place Consultant in a conflict of interest with the Company and provided the Consultant complies with all continuing obligations in the Separation Agreement and the Restrictive Covenants Agreement, subject to the Section 8 (c) Waiver and the Separation Agreement Noncompete.

**13. Assignment.** The rights and obligations of the Parties hereunder shall inure to the benefit of, and shall be binding upon, their respective successors and permitted assigns. This Agreement may not be assigned by Consultant, and Consultant's obligations under this Agreement may not be subcontracted or

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delegated by Consultant, without the prior written consent of the Company. For clarity, this Agreement may be assigned by the Company.

**14. Survival.** Any termination of this Agreement shall be without prejudice to any obligation of either Party that shall have accrued and then be owing prior to termination. Without limiting the foregoing, Sections 6 through 21 of this Agreement shall survive any termination of this Agreement.

**15. Entire Agreement; Amendment; Waiver; Severability.** This Agreement, including the exhibits attached hereto, contains the entire agreement between the Parties with respect to its subject matter and supersedes all prior agreements, written or oral, between the Parties with respect to its subject matter; *provided*, and for the avoidance of doubt, the Separation Agreement, the Restrictive Covenants Agreement, (subject to the Section 8 (c) Waiver and the Separation Agreement Noncompete), and the Equity Documents will remain in full force and effect in accordance with their terms. This Agreement may not be modified, changed or discharged, in whole or in part, except by an agreement in writing signed by the Parties. No waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by the Party against whom such waiver is sought to be enforced; moreover, no valid waiver of any provision of this Agreement at any time shall be deemed a waiver of any other provision of this Agreement at such time or shall be deemed a valid waiver of such provision at any other time. In the event that any one or more of the provisions contained in this Agreement are, for any reason, held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Agreement, and all other provisions will remain in full force and effect. If any provision of this Agreement is held to be excessively broad, it will be reformed and construed by limiting and reducing it so as to be enforceable to the maximum extent permitted by law.

**16. Counterparts and Signatures.** This Agreement may be executed in one or more counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument. The Parties agree that electronic signatures or signatures affixed to any one of the originals and delivered by portable document format (PDF), or other electronic means shall be valid, binding and enforceable.

**17. Equitable Relief.** Consultant acknowledges that irreparable harm may be done to the Company's business through the breach of Consultant's obligations set forth in Sections 6 through 10 above, for which damages at law may not be an adequate remedy. Consultant agrees, therefore, that, in addition to any other remedy it may have, the Company shall be entitled to enforce the specific performance of this Agreement by Consultant and to seek and obtain both temporary and permanent injunctive relief (to the extent permitted by law) without the necessity of proving actual damages or posting bond.

**18. Notices.** All notices required or permitted under this Agreement must be in writing and must be delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to Consultant at the last address Consultant has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the Chief Executive Officer. Notices may also be sent by email to the last email address of Consultant or, in the case of the Company, the Company email address of the Chief Executive Officer, in each case with confirmation of receipt.

**19. Governing Law.** This Agreement is to be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts without giving effect to any conflict of laws principles

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that would cause the laws of any other jurisdiction to apply. The Parties submit to the jurisdiction and agree to the proper venue of, all state and federal courts located within the Commonwealth of Massachusetts.

**20. Protected Disclosures**. Nothing contained in this Agreement, any other agreement with the Company, or any Company policy limits Consultant's ability, with or without notice to the Company, to: (i) file a charge or complaint with any federal, state or local governmental agency or commission (a "<u>Government Agency</u>"), including without limitation, the Securities and Exchange Commission (the "<u>SEC</u>"); (ii) communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including by providing non-privileged documents or information; or (iii) testify truthfully in a legal proceeding. Any such communications and disclosures must be consistent with applicable law and the information disclosed must not have been obtained through a communication that was subject to the attorney-client privilege (unless disclosure of that information would otherwise be permitted consistent with such privilege or applicable law). The Company will not limit any right Consultant may have to receive an award pursuant to the whistleblower provisions of any applicable law or regulation for providing information to the SEC or any other Government Agency.

**21. Defend Trade Secrets Act of 2016**. Consultant acknowledges receipt of the following notice under 18 U.S.C. § 1833(b)(1): "An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal."

**[Remainder of page intentionally left blank]**

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**IN WITNESS WHEREOF,** the Parties have executed this Agreement by their duly authorized representatives as of the Effective Date.

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| | | | |
|:---|:---|:---|:---|
| **PRIME MEDICINE, INC.** | **PRIME MEDICINE, INC.** | **CONSULTANT** | **CONSULTANT** |
| By: | /s/ Allan Reine | By: | /s/ Jeremy Duffield |
| Printed Name: | Allan Reine, M.D. | Printed Name: | Jeremy Duffield, M.D., Ph.D., FRCP |
| Date: | July 17, 2025 | Date: | July 19, 2025 |

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**EXHIBIT A**

Terms with initial capitalization and not otherwise defined herein shall have the meanings ascribed to them in the Consulting Agreement (the "Agreement") to which this Exhibit A is attached.

**<u>Description of Services</u>**

Consultant will support projects upon the specific request by the Company's Chief Executive Officer or such person's designee (in any event, an "<u>Authorized Executive</u>"). For the avoidance of doubt, the Company is not required to engage the Consultant for Services for any minimum number of hours and the Consultant shall not provide Services except to the extent specifically requested by an Authorized Executive.

**<u>Materials</u>**

Consultant will maintain possession of the laptop computer provided by the Company to Consultant during Consultant's employment with the Company and will continue to have access to the Company's computer information systems (the "Materials"). Consultant will use the Materials solely to provide the Services under this Agreement. The Materials shall be returned to the Company immediately upon termination of the Agreement, or at any time upon request by the Company.

**<u>Monthly Fees</u>**

As compensation for the performance of the Services, during the Consulting Term, the Company will pay Consultant at the rate of $600 per hour.

Such fees shall be paid within thirty (30) days after the Company's receipt of Consultant's invoice indicating that Services were performed during the applicable invoice period, as well as any other information reasonably required by the Company.

**<u>Continued Vesting</u>**

Consultant's "Service Relationship" for purposes of vesting in any of the Company's outstanding unvested stock options, restricted stock units, or other equity awards (the "<u>Equity Awards</u>") ends on the last date of the Consulting Term, pursuant to the terms of the applicable equity award agreement and underlying equity incentive plan(s) (the "<u>Equity Documents</u>").

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO** 

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,** 

**AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Allan Reine, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Prime Medicine, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 7, 2025

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| | |
|:---|:---|
| By: | /s/ Allan Reine |
|  | **Allan Reine** |
|  | **Chief Executive Officer** |
|  | **(Principal Executive Officer and Principal Financial Officer)** |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO** 

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with this Quarterly Report of Prime Medicine, Inc. (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: August 7, 2025 |  |  |
|  | By: | /s/ Allan Reine |
|  |  | **Allan Reine** |
|  |  | **Chief Executive Officer** |
|  |  | **(Principal Executive Officer and Principal Financial Officer)** |

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