# EDGAR Filing Document

**Accession Number:** 0001853921
**File Stem:** 0001193125-26-009106
**Filing Date:** 2026-1
**Character Count:** 2817036
**Document Hash:** f27c1888aa8ee344cbb57c9e829937ca
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-009106.hdr.sgml**: 20260702

**ACCESSION NUMBER**: 0001193125-26-009106

**CONFORMED SUBMISSION TYPE**: DRS

**PUBLIC DOCUMENT COUNT**: 49

**FILED AS OF DATE**: 20260109

**DATE AS OF CHANGE**: 20260109

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Scribe Therapeutics, Inc.
- **CENTRAL INDEX KEY:** 0001853921
- **STANDARD INDUSTRIAL CLASSIFICATION:** BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 822157847
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DRS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-08928
- **FILM NUMBER:** 26523927

**BUSINESS ADDRESS:**
- **STREET 1:** 1150 MARINA VILLAGE PKWY
- **CITY:** ALAMEDA
- **STATE:** CA
- **ZIP:** 94501
- **BUSINESS PHONE:** 510-454-0213

**MAIL ADDRESS:**
- **STREET 1:** 1150 MARINA VILLAGE PKWY
- **CITY:** ALAMEDA
- **STATE:** CA
- **ZIP:** 94501

##### [**Table of Contents**](#toc)
**As confidentially submitted to the Securities and Exchange Commission on January 9, 2026.** 

**This draft registration statement has not been publicly filed with the Securities and Exchange Commission and all information herein remains strictly confidential.** 

**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***Under***

***The Securities Act of 1933***

**SCRIBE THERAPEUTICS INC.** 

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

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| | | |
|:---|:---|:---|
| **Delaware** | **2836** | **82-2157847** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(Primary Standard Industrial<br>Classification Code Number)** | **(I.R.S. Employer<br>Identification Number)** |

---

**1150 Marina Village Parkway** 

**Alameda, California 94501** 

**(510) 626-8587** 

**(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)** 

**Benjamin L. Oakes, Ph.D.** 

**Chief Executive Officer** 

**1150 Marina Village Parkway** 

**Alameda, California, 94501** 

**(510) 626-8587** 

**(Name, address, including zip code, and telephone number, including area code, of agent for service)** 

***Copies to:***

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| | |
|:---|:---|
| **Effie Toshav<br>Robert A. Freedman<br>Ryan Mitteness<br>Fenwick & West LLP<br>401 Union Street<br>5th Floor<br>Seattle, Washington 98101<br>(206) 389-4510** | **B. Shayne Kennedy<br>Ross McAloon<br>Latham & Watkins LLP<br>650 Town Center Drive<br>20th Floor**<br> **Costa Mesa, California 92626<br>(714) 540-1235** |

---

**Approximate date of commencement of proposed sale to the public:** 

**As soon as practicable after the effective date of this registration statement.** 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

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

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| | | | |
|:---|:---|:---|:---|
| 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 7(a)(2)(B) of the Securities Act. ☐

**Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

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##### [**Table of Contents**](#toc)
**Explanatory Note** 

Pursuant to the applicable provisions of the Fixing America's Surface Transportation Act, we are omitting our financial statements as of and for the year ended December 31, 2023 and for the nine months ended September 30, 2024 and 2025 because they relate to historical periods that we believe will not be required to be included in the registration statement at the time of the contemplated offering. We intend to amend the registration statement to include all financial information required by Regulation S-X at the date of such amendment before distributing a preliminary prospectus to investors.

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##### [**Table of Contents**](#toc)
The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities, and we are not soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted.'

SUBJECT TO COMPLETION, DATED , 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares

![LOGO](g21355g00m01.jpg)

**Common Stock** 

Scribe Therapeutics Inc. is offering shares of its common stock. This is our initial public offering of shares of common stock, and no public market currently exists for our common stock. We anticipate that the initial public offering price will be between $ and $ per share.

We intend to apply to list our common stock on the Nasdaq Global Market, or Nasdaq, under the symbol "SCRB." We believe that upon the completion of this offering, we will meet the standards for listing on Nasdaq, and the closing of this offering is contingent upon such listing.

We are an "emerging growth company" and a "smaller reporting company" as defined under the federal securities laws and, as such, we have elected to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings. See "Prospectus summary—Implications of being an emerging growth company and a smaller reporting company."

**See "[Risk Factors](#toc21355_4)" beginning on page 18 to read about factors you should consider before buying shares of our common stock.** 

**Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.** 

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| | | |
|:---|:---|:---|
|  | Per Share | Total |
|  **Initial public offering price** | **$** | **$** |
|  **Underwriting discounts and commissions<sup>(1)</sup>** | **$** | **$** |
|  **Proceeds, before expenses, to us** | **$** | **$** |

---

(1) See "Underwriting" for additional information regarding underwriting compensation.

To the extent that the underwriters sell more than shares of our common stock, we have granted the underwriters an option for a period of 30 days to purchase up to additional shares at the initial public offering price less underwriting discounts and commissions.

The underwriters expect to deliver the shares of common stock to purchasers on or about , 2026.

---

| | | |
|:---|:---|:---|
| **Goldman Sachs & Co. LLC** | **J.P. Morgan** | **Leerink Partners** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**, 2026** 

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##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  | Page |
|  [Prospectus Summary](#toc21355_1) | 1 |
|  [The Offering](#toc21355_2) | 13 |
|  [Summary Financial Data](#toc21355_3) | 16 |
|  [Risk Factors](#toc21355_4) | 18 |
|  [Special Note Regarding Forward-Looking Statements](#toc21355_5) | 86 |
|  [Market and Industry Data](#toc21355_6) | 88 |
|  [Use of Proceeds](#toc21355_7) | 89 |
|  [Dividend Policy](#toc21355_8) | 91 |
|  [Capitalization](#toc21355_9) | 92 |
|  [Dilution](#toc21355_10) | 94 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#toc21355_11) | 97 |
|  [Business](#toc21355_12) | 118 |
|  [Management](#toc21355_13) | 187 |
|  [Executive Compensation](#toc21355_14) | 193 |
|  [Certain Relationships and Related Party Transactions](#toc21355_15) | 207 |
|  [Principal Stockholders](#toc21355_16) | 209 |
|  [Description of Capital Stock](#toc21355_17) | 211 |
|  [Shares Eligible for Future Sale](#toc21355_18) | 218 |
|  [Material U.S. Federal Income Tax Consequences to Non-U.S. Holders](#toc21355_19) | 220 |
|  [Underwriting](#toc21355_20) | 225 |
|  [Legal Matters](#toc21355_21) | 231 |
|  [Experts](#toc21355_22) | 231 |
|  [Where You Can Find Additional Information](#toc21355_23) | 231 |
|  [Index to Financial Statements](#toc21355_24) | F-1 |

---

Neither we nor the underwriters have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses prepared by or on behalf of us or to which we have referred you. We and the underwriters do not take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the shares of common stock offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus or in any applicable free writing prospectus is current only as of its date, regardless of its time of delivery or the time of any sale of shares of our common stock.

For investors outside of the United States: Neither we nor any of the underwriters have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than the United States. Persons outside of the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our common stock and the distribution of this prospectus outside of the United States.

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##### [**Table of Contents**](#toc)
**PROSPECTUS SUMMARY** 

*This summary highlights selected information contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment decision. Before investing in our common stock, you should carefully read this entire prospectus, including our financial statements and the related notes and the information set forth under the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in each case included in this prospectus. Some of the statements in this prospectus constitute forward-looking statements that involve risks and uncertainties. See the section titled "Special Note Regarding Forward-Looking Statements" for additional information. Unless the context otherwise requires, we use the terms "Scribe Therapeutics Inc.," "the Company," "we," "us" and "our" in this prospectus to refer to the operations of Scribe Therapeutics Inc.* 

**SCRIBE THERAPEUTICS INC.** 

**Overview** 

We are a biotechnology company pioneering highly engineered CRISPR technologies designed to reshape the treatment of disease by enabling earlier intervention, improved outcomes, and longer, healthier lives. While current genetic medicines are largely limited to rare disorders, we are engineering our technologies for use in common diseases affecting millions. By targeting prevalent diseases with significant unmet need and high clinical burden we aim to usher in a new era of broadly scalable, transformative, and preventative genetic medicines. Our focus is on cardiovascular and metabolic diseases with initial programs to address the key drivers of atherosclerotic cardiovascular disease, or ASCVD. We are designing CRISPR-based genetic medicines to be well-tolerated, effective, durable and scalable enough to shift the treatment paradigm from symptom-driven intervention and chronic care to population-level prevention, with the goal of broadly democratizing access to the cardioprotective effects of known genetic variants. Our lead product candidate, STX-1150, utilizes our epigenetic silencing technology and is designed to deliver persistent and potent LDL-C reductions without permanent genetic changes. STX-1150 is a demonstration of executing on our goal, with the potential to transform adherence and real-world therapeutic outcomes for patients in the multibillion-dollar LDL-C lowering landscape. We have submitted a Clinical Trial Notification, or CTN, for STX-1150 with the Therapeutic Goods Administration, or TGA, the Australian regulatory authority in December 2025, and anticipate beginning to dose patients with STX-1150 in .

Every 40 seconds, someone in the United States suffers a heart attack, and each year, heart disease costs the nation more than $400 billion, according to the American Heart Association. Despite major advances in our understanding of the pathology of heart disease and ASCVD, and the development of new classes of pharmaceuticals, we believe today's standard of care for ASCVD is insufficient. Existing treatments fail to demonstrate broad impact as they suffer from underwhelming efficacy, well documented side effects, and onerous polypharmacy treatment burden, leading to poor uptake, low adherence and limited real-world effectiveness. Patients often discontinue therapy due to loss of insurance, high out-of-pocket costs, or the logistical burden of ongoing clinic visits. Moreover, treatment is often initiated only after substantial cumulative arterial injury or an acute cardiovascular event. These limitations of the current treatment paradigm underscore the importance of developing durable therapies that can be administered safely earlier in the course of disease and provide compelling health-economic value to payers.

We believe that fundamentally different therapeutics are required to meaningfully address ASCVD. To realize this vision, we are executing on a differentiated strategy that applies a full stack

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engineering approach coupling generative artificial intelligence, or AI, and machine learning, or ML, with massively parallel experimental validation to optimize and tailor CRISPR technologies for the precise demands of each therapeutic application. Through this proprietary approach which we refer to as CRISPR by Design, we systematically evaluate disease biology, target genetics, and commercial opportunities against product requirements to engineer the most appropriate and scalable solution for each therapeutic application. This disciplined, data-driven strategy has led us to engineer two proprietary technologies based on a novel CRISPR-CasX enzyme: the Epigenetic Long-Term X-Repressor, or ELXR, designed for precise, durable epigenetic silencing without altering the underlying DNA sequence; and the X-Editor, or XE, designed for efficient gene editing. Rather than committing to a single technology upfront, we advance multiple approaches in parallel and prioritize the modality that demonstrates the most favorable safety, durability, and efficacy profile for each product candidate based on empirical data. We believe this engineering-led, evidence-based strategy, combined with a technology stack purpose-built for broad patient populations, positions us to develop competitive and scalable genetic medicines across a wide range of cardiovascular indications. We are advancing three in vivo product candidates targeting three key lipid drivers of ASCVD: elevated low-density lipoprotein cholesterol, or LDL-C, elevated lipoprotein(a), or Lp(a), and elevated triglycerides carried by triglyceride-rich lipoproteins, or TRLs.

Our lead product candidate, STX-1150, is an epigenetic silencing therapy that is based on our ELXR technology and is designed to durably lower LDL-C by repressing the expression of PCSK9, a genetically and clinically validated target. Inhibition of PCSK9 is among the most effective known mechanisms to reduce LDL-C, complementing or outperforming other existing therapies. Unlike CRISPR gene editing, base editing, or prime editing approaches, STX-1150 is designed to achieve long-lasting therapeutic benefit without permanently altering the underlying DNA sequence. STX-1150 aims to improve on the real-world efficacy of small molecule, antibody and siRNA therapies by eliminating the need for years to decades of repeat medication. In a study conducted with non-human primates, or NHPs, a single dose of a prototype STX-1150 was generally well-tolerated and produced therapeutically meaningful, durable LDL-C reduction of greater than 50% sustained for nearly 18 months. Durable and early LDL-C lowering of this magnitude has been demonstrated in human genetic studies to reduce ASCVD risk by up to 88%, underscoring the potential to transform the current treatment paradigm from late-stage intervention to effective prevention. The large and expanding LDL-C lowering market is characterized by a persistent gap between efficacy observed in controlled settings and real-world outcomes. We believe STX-1150's long-acting epigenetic mechanism could increase current adherence rates that are typically only 40–50%, which could drive superior clinical outcomes for patients through increased adherence-adjusted efficacy and compelling health-economic value for payors while avoiding the risks of permanent genetic modification. Given that ASCVD is a chronic condition, we believe improvements in adherence could compound over time to drive better clinical outcomes, enabling more efficient payer management and broadening patient access. As a result, we believe STX-1150 has the potential to expand the growing market for PCSK9-based LDL-C–lowering medicines, which currently exceeds $4 billion annually yet remains significantly underpenetrated, with fewer than 1% of eligible patients treated. We submitted a CTN with the Australian regulatory authority in December 2025 and anticipate beginning to dose patients in .

Our next programs, STX-1200 and STX-1400, target two additional lipid drivers of ASCVD, elevated Lp(a) and severely high triglycerides, by editing the *LPA* and *APOC3* genes, respectively. Elevated Lp(a) and high triglycerides represent causal risk factors for ASCVD affecting large populations. Both programs are based on our XE technology and aim to provide curative outcomes to genetic diseases associated with the modification of these targets. In mouse models of disease, prototype versions of both STX-1200 and STX-1400 programs have achieved greater than 90% reduction in target gene expression with durable activity consistent with a one-time treatment profile. In

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NHPs, surrogates demonstrated greater than 95% Lp(a) reduction and greater than 75% *APOC3* on-target editing, respectively. In an off-target analysis of primary human hepatocyte donor cells, no detectable off-target editing was observed even at supersaturating doses. We anticipate nominating development candidates and initiating IND-enabling studies for STX-1200 and STX-1400 in .

Our disciplined operating model, complemented by upfront and milestone payments from our strategic collaborations, has allowed us to operate with a high degree of capital efficiency. We believe our CRISPR by Design approach enables us to advance target concepts to development candidates quickly, with the potential to materially reduce discovery timelines and associated costs. Our strategic collaborations – including with Sanofi in rare genetic diseases, such as sickle cell disease, and Lilly in CNS disorders – leverage the commercial and delivery expertise of leading biopharmaceutical companies while demonstrating the versatility of our technologies. Since our founding in 2018, we have raised approximately $150.0 million in equity financing, with only one dilutive financing in the past four years, while maintaining significant ownership and optionality across both our internal program portfolio and our collaboration programs.

Since the groundbreaking discovery of CRISPR-based genome editing by our co-founder, Nobel Laureate Dr. Jennifer Doudna, the extraordinary potential for genetic medicine has become increasingly clear. We were founded on the thesis that comprehensive CRISPR system engineering and optimization are required to address the activity, specificity, and delivery limitations of earlier technologies. We believe our engineering-first philosophy has enabled us to become one of the only companies to create two wholly novel and therapeutically relevant CRISPR technologies derived from a unique CRISPR enzyme foundation enabling a robust intellectual property portfolio. Our deliberate focus on cardiovascular and metabolic diseases further differentiates us by driving the creation of technologies capable of serving some of the most prevalent and debilitating genetically driven conditions worldwide.

***The imperative for better ASCVD disease outcomes***

In the United States alone, nearly half of all adults, or over 120 million individuals, carry some form of cardiovascular disease. ASCVD in particular is expected to impact more than 61% of adults in the United States by 2050. In addition, mortality associated with cardiovascular disease has increased significantly, accounting for about 30% of all deaths in 2021, a trend that is expected to accelerate due to demographic factors such as an aging population and worsening metabolic health. ASCVD has not only impaired patients' health and quality of life but also imposed a significant economic burden on the healthcare system. It incurred an estimated $422 billion in annual direct and indirect costs in 2019–2020 in the United States, and is projected to incur $1.8 trillion in total costs by 2050, straining both public and private healthcare systems.

We believe today's standard of care for ASCVD is insufficient as existing treatments suffer from significant access, efficacy, durability and adherence issues, often leaving patients underserved and financially straining the healthcare system. Clinical guidelines typically begin with lifestyle modification, followed by pharmacologic therapy, most often statins as first-line lipid-lowering agents. If treatment goals are not met, clinicians may layer on combination regimens. Despite this tiered escalation of treatment, 75% of patients never reach optimal treatment goals where the underlying disease is well managed. Overall, existing treatments fail to achieve broad, lasting impact due to limited disease-relevant durability, significant treatment burdens from polypharmacy requirements, and diminishing real-world effectiveness as adherence declines over time.

In addition, emerging but critical causal lipid drivers for ASCVD, including Lp(a), triglyceride-rich lipoproteins, or TRLs, and remnant cholesterol, remain largely undertreated. These drivers are

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##### [**Table of Contents**](#toc)
infrequently measured in routine clinical practices and there is a lack of available and effective pharmacotherapies, representing a significant unmet need.

***Leveraging nature's blueprint for better cardiovascular health***

Elevated LDL-C, Lp(a) and triglycerides are well understood to be causal drivers of dyslipidemia and eventually ASCVD. Recent genetic studies and randomized controlled trials demonstrate that reducing lifetime exposure to these risk factors is critical to preventing ASCVD. We believe durable genetic medicines have the potential to address the ASCVD treatment gap, and nature provides a blueprint to address each of these three risk factors via cardioprotective variants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **LDL-C and the *PCSK9* gene**: Elevated LDL-C levels in the bloodstream can promote the formation of plaques in arterial walls, restricting blood flow and increasing the risk of heart attacks and strokes. Inhibition of *PCSK9* is among the most
effective known mechanisms to reduce LDL-C. Individuals born with loss-of-function variants in the *PCSK9* gene live with
meaningfully lower baseline LDL-C and experience up to 88% lower risk for coronary heart disease without any distinguishable adverse effects from lifetime lower LDL-C levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Lp(a) and the *LPA* gene**: Elevated Lp(a) is associated with an increased risk of
ASCVD, even when LDL-C is well controlled, due to its role in promoting clot formation, inflammation, and plaque buildup. While population levels of Lp(a) are normally low, specific *LPA* variants
associated with higher levels of Lp(a) drive two to four-fold increased risk of premature heart attack, and aortic stenosis, respectively as well as up to a 50% increase in stroke and overall cardiovascular mortality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Triglycerides and the *APOC3* gene**: Levels of TRLs account for a significant portion of residual
cardiovascular risk in patients with LDL-C under control on statin therapy. Studies have now shown that individuals with loss-of-function mutations in the *APOC3* gene have 39% lower triglyceride levels than the general population, with a 40% lower risk of developing coronary heart
disease.

Taken together, these preventative blueprints from naturally occurring genetic variants affecting the three primary causal lipoprotein families support a treatment paradigm that aims to recapitulate the baseline cardioprotective outcomes from genetic variants in *PCSK9*, *LPA,* and *APOC3* for a lifetime of reduced lipid exposure. Focusing a new class of genetic medicines on these three targets has the potential to address the overwhelming majority of lipid-mediated ASCVD risk, providing a long-term solution for cardiovascular health and for the first time reshape how this disease is treated.

***CRISPR by Design: Delivering Nature's Blueprint for treating ASCVD***

We hold the conviction that highly engineered CRISPR technologies are required to evolve genetic medicines from limited solutions for rare genetic disorders to scalable solutions for patients suffering from widespread diseases.

Rather than aligning exclusively with any single wave of CRISPR technology, we believe that realizing the therapeutic potential of CRISPR-based medicines requires deliberate selection and closed-loop engineering of a CRISPR technology best suited to a given disease. This view is informed in part, by the technological evolution observed in the antibody and RNAi fields, where early iterations of these technologies initially demonstrated limited clinical impact until successive rounds of engineering substantially improved therapeutic index. To that end, we have designed our organization to pursue an engineering-first strategy that prioritizes novel technology development in service of

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defined clinical and commercial objectives for a particular target. We then systematically evaluate disease biology, target genetics and delivery constraints while incorporating continuous feedback from disease models to guide successive rounds of optimization for a specific therapeutic application. In support of this approach, we have developed a suite of proprietary engineering methodologies, including machine learning–based models coupled with massively parallel experimental validation, to create and refine our CRISPR-based technologies: ELXR, designed for precise, durable epigenetic silencing of genes without changing the underlying DNA sequence, and XE, designed to support specific and efficient gene editing.

![LOGO](g21355g10a02.jpg)

**ELXR** is our epigenetic silencing technology designed to durably and reversibly repress gene expression without altering the underlying DNA sequence. Uniquely, ELXR incorporates an allosteric regulatory domain, adding a built-in specificity control that is designed to reduce off-target effects and improve safety, as well as maintain or enhance on-target activity, differentiating ELXR from Cas9-

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based epigenetic editors used in the field or in the clinic. We believe ELXR represents a fundamental advancement and likely endpoint in the evolution of mRNA-silencing technologies, potentially addressing the durability limitations inherent to existing modalities such as siRNAs and ASOs. Unlike existing therapies that demonstrate significant attenuation of effect outside controlled clinical settings, this level of durability has the potential to enable sustained, clinical trial-level target suppression in real-world use. We anticipate this attribute will be particularly important in chronic diseases such as cardiovascular disease where long-term adherence and consistent target modulation are critical determinants of outcomes.

**XE** is our gene-editing technology designed for precise and versatile genetic modification. A data-driven and iterative campaign has engineered our novel CasX enzyme, XE, with improved nuclease stability, DNA binding, cleavage activity, and specificity, resulting in greater than 100-fold higher editing than naturally occurring CasX in cell-based assays while maintaining exquisite specificity across target sites. Taken together with its compact size and engineered PAM recognition, XE provides a differentiated combination of potency, specificity, delivery flexibility relative to Cas9 and other Cas12-based editing systems. We believe XE combines high efficiency with a well-characterized mechanism of action and a broad therapeutic window, providing the potential for durable, one-time treatments for genetically defined diseases.

Both ELXR and XE were purposefully engineered to exhibit high activity, specificity, durability, and deliverability across multiple tissues, cell types and species. In NHP and other preclinical studies, our ELXR and XE technologies have demonstrated consistent performance across numerous organ systems, supporting their potential applicability to a wide range of *in vivo* therapeutic settings. Given this performance, we have conducted and will continue to utilize preclinical head-to-head development and testing of multiple CRISPR technologies *in vivo* to determine the best technology for the job. We believe this comprehensive strategy maximizes our opportunity to develop well-tolerated, effective, durable, and scalable CRISPR-based therapies with the goal of establishing a new standard of care for ASCVD and other prevalent diseases.

***Our portfolio***

Our initial programs focus on three causal lipid drivers of ASCVD: elevated LDL-C, elevated Lp(a) and severely elevated triglycerides, which can be modified by targeting the genetically and clinically validated *PCSK9*, *LPA*, and *APOC3* genes, respectively. We believe that addressing these genetic risk factors is fundamental to transforming the prevention and treatment of ASCVD.

Our wholly-owned pipeline is outlined below:

![LOGO](g21355g00a01.jpg)

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*Our lead product candidate, STX-1150, targeting PCSK9 for LDL-C lowering* 

STX-1150 utilizes lipid nanoparticle, or LNP, delivery of our ELXR technology to repress the expression of the *PCSK9* gene by installing epigenetic marks that durably regulate gene transcription without changing the underlying DNA sequence. If clinical data support its intended profile, as shown by data in preclinical development, we believe STX-1150 will be well positioned within the current LDL-C lowering category and expand the overall market for PCSK9-targeting therapies by addressing a key limitation of current options, namely, the challenge of maintaining sustained, long-term LDL-C control.

We have evaluated a prototype version of STX-1150 in preclinical studies conducted in primary human hepatocytes, transgenic mouse models, and NHPs to assess efficacy, safety, durability, and tolerability. Across these studies, we have observed the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• greater than 95% reduction in secreted PCSK9 achieved by a STX-1150 prototype in
primary human hepatocytes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in NHPs, single intravenous infusion of the STX-1150 prototype at the lowest tested
dose of 0.75 mg/kg resulted in LDL-C reductions of greater than 50% that have been maintained for nearly 18 months, with liver enzyme profiles comparable to saline controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no significant off-target gene expression changes in primary human hepatocytes
treated at a supersaturating dose of STX-1150 prototype;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CMC-scaled STX-1150 drug product
demonstrated greater than or equal to 5-fold potency in primary human hepatocytes compared to primary cynomolgus monkey hepatocytes, indicating a potentially meaningful potency uptake in humans relative to
NHPs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in *hPCSK9* transgenic mice, a single dose of the STX-1150 drug product
resulted in potent reduction of serum PCSK9, achieving saturation at the doses greater than or equal to 0.6 mg/kg; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in an NHP study, multiple doses of STX-1150 at 0.75 mg/kg achieved cumulative LDL-C reductions, reaching sustained LDL-C reductions of greater than 40% to greater than 60% over 180 days, again with liver enzyme profiles similar to those observed with
single dosing.

We submitted a CTN with the TGA in December 2025 and anticipate beginning to dose patients in .

*STX-1200 targeting LPA* 

STX-1200 utilizes LNP delivery of our XE technology to precisely edit and inactivate the *LPA* gene. Unlike conventional therapies that temporarily modify mRNA or protein levels and require chronic use, STX-1200 is designed to strategically disrupt the genetic root cause of disease by selectively modifying the *LPA* gene in hepatocytes to prevent high levels of Lp(a). In preclinical studies, prototype constructs of STX-1200 have shown greater than 95% reduction in secretion of apolipoprotein(a), or apo(a), the defining component of Lp(a), in primary human hepatocytes, murine models and NHPs. Off-target safety studies have shown no detectable editing at more than 100 top-nominated genomic sites, even at ten times supersaturating doses in primary human hepatocyte donor cells. We anticipate nominating a development candidate and initiating IND-enabling studies for STX-1200 in .

*STX-1400 targeting APOC3* 

STX-1400 utilizes LNP delivery of our XE technology to reduce expression of the *APOC3* gene, aiming to increase clearance of triglyceride-rich lipoproteins. By editing the *APOC3* gene, STX-1400

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has the potential to drive clinically meaningful and durable triglyceride reductions to address the full continuum of triglyceride -driven disorders, including familial chylomicronemia syndrome, or FCS, and severe hypertriglyceridemia, SHTG, where it can effectively become a pipeline within a drug. In preclinical studies, prototype constructs of STX-1400 have demonstrated greater than 95% reduction of *APOC3* expression in primary human hepatocytes and murine models, with off-target safety studies having shown no detectable editing across more than 100 top-nominated genomic sites, even at ten times supersaturating doses in primary human hepatocyte donor cells. Potency testing of surrogate molecules in NHPs achieved saturating gene-editing levels exceeding 75% of the whole liver at therapeutically relevant doses. We anticipate nominating development candidates and initiating IND-enabling studies for STX-1400 in .

*Future pipeline opportunities* 

We believe that our ELXR and XE technologies have applications beyond targeting *PCSK9*, *LPA* and *APOC3*. We are expanding our pipeline with several additional cardiometabolic programs in the discovery stage. As genetic risk factors for health conditions are further characterized, we strive to bring precisely engineered CRISPR-based medicines to the forefront of treatment in other high impact indications such as obesity, MASH and other cardiometabolic related disorders. In addition, we may also pursue opportunities to expand the impact of our technologies into broader therapeutic areas through opportunistic collaborations.

*Our partnered programs* 

Beyond our wholly owned pipeline, we are collaborating with leading global biopharmaceutical companies on specific genetic targets in other therapeutic areas where our precision-engineered CRISPR-based technologies can address urgent unmet medical needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In our collaboration with Sanofi, we apply our XE technology to develop *in vivo* CRISPR-based therapies for sickle
cell disease and other genetic diseases

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In our collaboration with Lilly, we combine our CRISPR by Design approach with Lilly's expertise in the development
of genetic medicines for neurological and neuromuscular disorders.

These collaborations provide significant value through upfront payments, research funding, milestone payments, and royalties, as well as options for limited co-development participation. To date, we have received over $175 million in upfront, milestone, and expense reimbursement payments in total from collaborations. We believe our collaboration model validates the versatility and scalability of our engineering-first approach while generating meaningful near- and long-term value.

***History and team expertise***

As a founder-led company, we have maintained both a long-term vision of developing highly engineered CRISPR-based medicines for prevalent cardiometabolic diseases, and a focus on disciplined, capital efficient execution. We were founded to advance CRISPR technologies developed in the lab by our co-founders: Dr. Jennifer Doudna, Nobel Laureate and the co-discoverer of CRISPR-Cas9 genome engineering technology; Dr. Benjamin Oakes, our Chief Executive Officer; Dr. David Savage, Professor of Molecular and Cell Biology at the University of California, Berkeley and a thought leader in structural biology and protein engineering; and Dr. Brett Staahl, our Vice President of External Innovation, a pioneer in *in vivo* and *ex vivo* CRISPR delivery technology. Since our inception, we have assembled a diverse group of individuals that includes leaders in genetic medicines, proven company builders, experienced scientists and engineers, world renowned scientific advisory board, and deeply knowledgeable and experienced board of directors and investors.

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***Our strategy***

We are committed to pioneering highly engineered CRISPR technologies designed to fundamentally reshape the treatment of highly prevalent disease by enabling earlier intervention, improved outcomes, and longer, healthier lives. The key components of our strategy are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Advance the clinical development of our lead program, STX-1150, for potent and
persistent LDL-C lowering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Develop STX-1200 and STX-1400 for elevated
Lp(a) and triglycerides, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expand our pipeline into other prevalent cardiometabolic indications with high unmet need.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leverage our CRISPR by Design approach to continue optimizing and evolving our technologies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Develop manufacturing strategies and partner capabilities to enable scalable production of genetic medicines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expand the impact of our proprietary CRISPR-based technologies through strategic collaboration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continue to execute with capital discipline and operational efficiency as we expand our portfolio.

**Risk factors summary** 

Our business is subject to a number of risks and uncertainties, including those highlighted in the section titled "Risk Factors" immediately following this prospectus summary. These risks include, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have a limited operating history, have not conducted any clinical trials and have no products approved for commercial
sale, which may make it difficult for you to evaluate the success of our business to date and to assess our future viability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have a history of operating losses, we have never generated any product revenue and we may not achieve or sustain
profitability. We anticipate that we will continue to incur losses for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Even if we complete this offering, we will need substantial additional funds to pursue our business objectives, which may
not be available on acceptable terms, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are early in our development efforts and we expect it will be many years before we commercialize any other product
candidates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Genetic medicine and epigenetic modification in particular are novel concepts that are not yet clinically validated for
human therapeutic use. The approach we are taking to discover and develop novel therapeutics through our ELXR and XE technologies is unproven and may never lead to marketable products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any favorable results we may have in our preclinical studies may not be predictive of results that may be observed in later
preclinical studies or clinical trials. If our product candidates or licensed products do not achieve development milestones or commercialization in the announced or expected timeframes, the further development or commercialization of such product
candidates may be delayed, and our business will be harmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our future performance depends on our ability to retain our President and Chief Executive Officer, other key executives and
other key employees and to attract, retain and motivate qualified personnel and manage our human capital.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We face significant competition in an environment of rapid technological change, and there is a possibility that our
competitors may achieve regulatory approval before us or develop therapies that are safer or more advanced or effective than ours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have entered, and may in the future seek to enter, into collaborations with third parties for the development and
commercialization of programs and product candidates using our technologies, and we may fail to enter into future collaborations or collaborations we have entered into may not be successful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to obtain and maintain patent and other intellectual property protection for our technology and products
in the United States or other countries, or if the scope of the patent protection obtained is not sufficiently broad, we may not be able to compete effectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gene editing and modification, which are novel and distinct subsets of gene therapy, and the regulatory landscape that will
govern any product candidates we may develop is uncertain and may change. If we are unable to adequately address these and other risks we face, our business, results of operations, financial condition and prospects may be harmed.

**Corporate and other information** 

We were incorporated under the laws of the State of Delaware on June 30, 2017.

Our principal executive offices are located at 1150 Marina Village Parkway, Alameda, California 94501, and our telephone number is (510) 626-8587. Our website address is https://www.scribetx.com. The information contained on, or that can be accessed through, our website is not part of, and is not incorporated by reference into, this prospectus. We have included our website in this prospectus solely as a textual reference. Investors should not rely on any such information in deciding whether to purchase our common stock.

The marks "CRISPR by Design," "ELXR," "XE," "Scribe," and "Scribe Therapeutics" and the Scribe logo and our other registered or common law trade names, trademarks or service marks appearing in this prospectus are the property of Scribe. All other service marks, trademarks and trade names appearing in this prospectus are the property of their respective owners. Solely for convenience, the trademarks and tradenames referred to in this prospectus appear without the <sup>®</sup> and <sup>™</sup> symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights, or the right of the applicable licensor to these trademarks and tradenames.

**Implications of being an emerging growth company and a smaller reporting company** 

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies. These provisions include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• being permitted to present only two years of financial statements and only two years of related "Management's
Discussion and Analysis of Financial Condition and Results of Operations" disclosure in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of
2002, as amended, or the Sarbanes-Oxley Act, on the effectiveness of our internal controls over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure obligations regarding executive compensation arrangements; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval
of any golden parachute payments not previously approved.

We will remain an emerging growth company until the earliest to occur of: (i) the last day of the fiscal year in which we have more than $1.235 billion in annual revenue; (ii) the date we qualify as a "large accelerated filer," with at least $700.0 million of equity securities held by non-affiliates; (iii) the date on which we have issued, in any three-year period, more than $1.0 billion in non-convertible debt securities; and (iv) the last day of the fiscal year ending after the fifth anniversary of the completion of this offering.

We have elected to take advantage of certain of the reduced disclosure obligations for emerging growth companies in the registration statement of which this prospectus is a part and may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide to our stockholders may be different than you might receive from other public reporting companies in which you hold equity interests.

The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards, until those standards apply to private companies. We have elected to use this extended transition period to enable us to comply with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with such new or revised accounting standards. Until the date that we are no longer an emerging growth company or affirmatively and irrevocably opt out of the exemption provided by Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, upon issuance of a new or revised accounting standard that applies to our financial statements and that has a different effective date for public and private companies, we will disclose the date on which adoption is required for non-emerging growth companies and the date on which we will adopt the recently issued accounting standard.

We are also a "smaller reporting company," meaning that (i) the aggregate number of shares of our common equity held by non-affiliates before the effectiveness of the registration statement of which this prospectus is a part, plus the number of such shares offered hereby to non-affiliates, multiplied by the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus is less than $700.0 million and (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year. We may continue to be a smaller reporting company after this offering if either (i) the market value of our capital stock held by non-affiliates is less than $250.0 million or (ii) our annual revenue was less than $100.0 million during the most recently completed fiscal year and the market value of our capital stock held by non-affiliates is less than $700.0 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K, we are not required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

As a result of these elections, some investors may find our common stock less attractive than they would have otherwise. The result may be a less active trading market for our common stock, and the price of our common stock may become more volatile.

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For certain risks related to our status as an emerging growth company and a smaller reporting company, see the section titled "Risk Factors—Risks related to our common stock and this offering—We are an "emerging growth company" and a "smaller reporting company" and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies or smaller reporting companies will make our common stock less attractive to investors."

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**The Offering** 

Common stock offered by us shares

Underwriters' option to purchase additional shares of common stock from us We have granted the underwriters a 30-day option to purchase up to additional shares of our common stock at the public offering price, less the underwriting discounts and commissions.

Common stock to be outstanding immediately after this offering shares (or shares, if the underwriters exercise their option to purchase additional shares in full)

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|:---|:---|
| Use of proceeds  | We estimate that the net proceeds from this offering will be approximately $ million (or approximately $ million if the underwriters exercise their option to purchase additional shares in full), based upon the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. |

---

We currently intend to use the net proceeds from this offering, together with our existing cash and cash equivalents, to advance the development of our lead product candidate, STX-1150; to advance to development of a second product candidate, STX-1200 or STX-1400; for continued investment in our additional pipeline programs as well as associated CRISPR-based technologies, ELXR and XE, development of our new technologies and development of our internal pipeline; and for working capital and other general corporate purposes.

See the section titled "Use of Proceeds" for additional information.

Risk factors Investing in our common stock involves a high degree of risk. You should read the section titled "Risk Factors" in this prospectus for a discussion of factors to consider carefully before deciding to invest in shares of our common stock.

Proposed Nasdaq trading symbol We intend to apply to list our common stock on Nasdaq under the symbol "SCRB." The closing of this offering is contingent upon such listing.

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The number of shares of our common stock to be outstanding after this offering is based on shares of our common stock outstanding as of December 31, 2025 (including shares of unvested restricted common stock subject to repurchase and after giving effect to (i) the Preferred Stock Conversion, (ii) the Warrant Conversion and (iii) the Note Conversion, each as defined and described below, in connection with the closing of this offering), and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock issuable upon the exercise of stock options to purchase shares of
our common stock outstanding as of December 31, 2025 under our 2018 Stock Incentive Plan, or the 2018 Plan, at a weighted-average exercise price of $ per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock issuable upon the exercise of stock options to purchase shares of
our common stock granted after December 31, 2025 under our 2018 Plan, with a weighted-average exercise price of $ per share; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock reserved for future issuance under our equity compensation plans,
consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock reserved for future issuance under our 2018 Plan as of
December 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock to be reserved for future issuance under our 2026 Equity Incentive
Plan, or the 2026 Plan, which will become effective immediately prior to the date of the effectiveness of the registration statement of which this prospectus forms a part; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock to be reserved for future issuance under our 2026 Employee Stock
Purchase Plan, or the ESPP, which will become effective immediately prior to the date of the effectiveness of the registration statement of which this prospectus forms a part.

Our 2026 Plan and our ESPP provide for automatic annual increases in the number of shares of our common stock reserved thereunder, and our 2026 Plan provides for increases to the number of shares that may be granted thereunder based on shares under our 2018 Plan that expire, are tendered to or withheld by us for payment of an exercise price or for satisfying tax withholding obligations or are forfeited or otherwise repurchased by us. Upon completion of this offering, any remaining shares of our common stock available for issuance under our 2018 Plan will be added to the shares reserved under our 2026 Plan and we will cease granting awards under our 2018 Plan. See the section titled "Executive compensation—equity compensation plans and other benefit plans" for additional information.

Except as otherwise indicated, all information in this prospectus assumes or gives effect to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the automatic conversion of all shares of our redeemable convertible preferred stock outstanding as of December 31,
2025 into an aggregate of      shares of our common stock immediately prior to the completion of this offering, or the Preferred Stock Conversion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the automatic conversion of a warrant to purchase shares of common stock issued in September 2020 into
     shares of our common stock immediately prior to the completion of this offering, based upon the assumed initial public offering price of $ per share, which is the midpoint of the offering price range set
forth on the cover page of this prospectus, or the Warrant Conversion (each $1.00 increase (decrease) in the assumed initial public offering price would increase (decrease) the number of shares of our common stock issued in the Warrant Conversion by
     shares);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the automatic conversion of $30.0 million aggregate principal amount plus accrued and unpaid interest thereon of
convertible notes issued in May 2023 into      shares of our common stock immediately prior to the completion of this offering, at a price per share of $, based upon the assumed initial public offering price of
$ per share, which is the midpoint of the offering price range set forth on the cover page of this prospectus, or the Note Conversion (each $1.00 increase (decrease) in the assumed initial public offering price would increase
(decrease) the number of shares of our common stock issued in the Note Conversion by      shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a -for- reverse stock split of our outstanding common stock which was effected on     , 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the filing, and effectiveness of our restated certificate of incorporation and restated bylaws, each of which will occur
immediately prior to the completion of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of outstanding options referred to above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise by the underwriters of their option to purchase additional shares of our common stock.

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**Summary Financial Data** 

The following tables set forth our summary statements of operations and balance sheet data for the periods and as of the dates indicated. The summary statement of operations data presented below for the years ended December 31, 2024 and 2025 and the balance sheet data as of December 31, 2025 are derived from our audited financial statements included elsewhere in this prospectus. The following summary financial data should be read in conjunction with the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and the related notes included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results that may be expected in any future period. The summary financial data in this section are not intended to replace our financial statements and are qualified in their entirety by the financial statements and related notes included elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
| **(in thousands, except share and per share amounts)** | **2024** | **2025** |
|  **Statements of operations and comprehensive loss data:** |  |  |
|  Collaboration revenue | $27413 | $|
|  Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development | 57079 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 13163 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 70242 |  |
|  Loss from operations | (42829) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income and other income, net | 6154 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (2381) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of convertible note | 1495 |  |
|  Net loss before provision for income taxes | (37561) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | (10225) |  |
|  Net loss | $(47786) | $|
|  Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized income on available-for-sale-investments | 6 |  |
|  Net comprehensive loss | $(47780) | $|
|  Net loss per share attributable to common stockholders, basic and diluted<sup>(1)</sup> | $(3.37) | $|
|  Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted<sup>(1)</sup> | 14188501 |  |
|  Pro forma net loss per share attributable to common stockholders, basic and diluted |  | $|
|  Pro forma weighted-average shares used in computing pro forma net loss per share attributable to common stockholders, basic and diluted |  |  |

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(1) See Note 2 and Note 13 of the notes to our audited financial statements included elsewhere in this prospectus for an
explanation of the calculations of our basic and diluted net loss per share attributable to common stockholders, and basic and diluted weighted-average number of shares used in the computation of the per share amounts.

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| **(in thousands)** | **Actual** | **Pro forma<sup>(1)</sup>** | **Pro forma<br>as adjusted<sup>(2)(3)</sup>** |
|  **Balance sheet data:** |  |  |  |
|  Cash and cash equivalents | $| $| $|
|  Short-term investments |  |  |  |
|  Receivable from collaboration partners |  |  |  |
|  Working capital<sup>(4)</sup> |  |  |  |
|  Total assets |  |  |  |
|  Total liabilities |  |  |  |
|  Redeemable convertible preferred stock |  |  |  |
|  Accumulated deficit |  |  |  |
|  Total stockholders' (deficit) equity |  |  |  |

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(1) The pro forma balance sheet data gives effect to (i) the Preferred Stock Conversion, (ii) the Warrant
Conversion) and (iii) the Note Conversion.

(2) The pro forma as adjusted balance sheet data gives effect to (i) the pro forma adjustments described in footnote
(1) above and (ii) the sale and issuance by us of    shares of common stock in this offering, based upon an assumed initial public offering price of $ per share, which is the midpoint of the estimated
price range set forth on the cover of this prospectus, after deducting the estimated underwriting discounts and commissions and estimated offering expenses.

(3) Each $1.00 increase (decrease) in the assumed initial public offering price of $ per share, which is the
midpoint of the price range set forth on the cover of the prospectus, would increase or decrease, as applicable, each of our pro forma as adjusted cash and cash equivalents, working capital, total assets and total stockholders (deficit) equity by
approximately $ million, assuming that the number of shares offered, as set forth on the cover of this prospectus, remains the same. Similarly, each increase or decrease of 1.0 million shares in the number of shares of our common
stock offered in this offering would increase or decrease, as applicable, each of our pro forma as adjusted cash and cash equivalents, working capital, total assets and total stockholders by approximately $ million, assuming the assumed
initial public offering price remains the same. The pro forma as adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price and other terms of this offering.

(4) We define working capital as current assets less current liabilities.

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**RISK FACTORS** 

*Investing in our common stock involves a high degree of risk. Before making your decision to invest in shares of our common stock, you should carefully consider the risks described below, together with the other information contained in this prospectus, including in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in our financial statements and the related notes included elsewhere in this prospectus. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of or that we deem immaterial may also become important factors that adversely affect our business. We cannot assure you that any of the events discussed below will not occur. These events could have a material adverse impact on our business, financial condition, results of operations and prospects. If that were to happen, the trading price of our common stock could decline, and you could lose all or part of your investment.* 

**Risks related to our financial position, limited operating history and need for additional capital** 

***We have a limited operating history, have not conducted any clinical trials and have no products approved for commercial sale, which may make it difficult for you to evaluate the success of our business to date and to assess our future viability.***

We are a biotechnology company with a limited operating history on which to base your investment decision. Biotechnology product development is a highly speculative undertaking and involves a substantial degree of risk, and we have yet to identify any product candidates or conduct any clinical trials. We commenced operations in 2018, and our operations to date have been limited primarily to business planning, raising capital, acquiring certain intellectual property rights, developing and engineering our two proprietary technologies, the Epigenetic Long-Term X-Repressor, or ELXR, and X-Editor, or XE, identifying potential product candidates and advancing preclinical testing of our pipeline programs. All of our programs are in the research and discovery or preclinical stage of development and their risk of failure is high. To date, we have devoted substantially all of our resources to identifying, acquiring and developing our product candidates, building our pipeline, conducting preclinical studies, organizing and staffing our company, business planning, establishing and maintaining our intellectual property portfolio, raising capital and providing general and administrative support for these operations.

We have not yet demonstrated an ability to successfully conduct any clinical trials, obtain regulatory approvals, manufacture a clinical or commercial-scale product or arrange for a third party to do so on our behalf, or conduct sales and marketing activities necessary for successful commercialization. As a result, particularly in light of the rapidly evolving field of genetic medicine, it may be more difficult for you to accurately evaluate the performance of our business to date or to predict our likelihood of success and viability than it would be if we had a longer operating history.

In addition, we may encounter unforeseen expenses, difficulties, complications, delays and other known and unknown factors and risks frequently experienced by preclinical-stage biotechnology companies developing targeted product candidates for cardiometabolic diseases.

***We have a history of operating losses, we have never generated any product revenue and we may not achieve or sustain profitability. We anticipate that we will continue to incur losses for the foreseeable future.***

We have incurred significant net losses in each reporting period since our inception, have not generated any product revenue to date and have financed our operations principally through private placements of our preferred stock and collaboration revenue. Our net losses were $47.8 million and

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$ million for the years ended December 31, 2024 and 2025, respectively. As of December 31, 2025, we had an accumulated deficit of $ million. Substantially all of our losses have resulted from expenses incurred in connection with our research and development programs and from general and administrative costs associated with our operations. We expect to incur significant losses for the foreseeable future, and we expect these losses to increase as we continue our research and development of our lead program, product candidates, and our technology. The net losses we incur may fluctuate significantly from quarter-to-quarter and year-to-year, such that a period-to-period comparison of our results of operations may not be a good indication of our future performance.

We anticipate that our expenses will increase substantially if, and as, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• initiate clinical trials for our lead product candidate, STX-1150;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• manufacture, or have manufactured, preclinical, clinical and potentially commercial supplies of any product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• further develop our proprietary technologies, ELXR and XE, as well as engineer new technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continue preclinical development of our other undisclosed cardiometabolic programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identify and develop potential product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• experience any delays in our preclinical studies and clinical trials, if any, due to unforeseen events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtain, expand, maintain, defend and enforce our intellectual property portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• seek regulatory approvals for any product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish a sales, marketing and distribution infrastructure to commercialize any product candidates, if approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with our obligations under the agreements governing our licenses, collaborations and strategic partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish additional licenses, collaborations or strategic partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquire or in-license intellectual property and technologies, work with strategic
partners to support and expand our research and discovery, and initiate and conduct preclinical and clinical programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hire additional clinical, scientific and management personnel, as well as administrative staff to support the growth of our
business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• add operational, financial and management information systems and personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incur additional legal, accounting and other costs associated with operating as a public company following the completion
of this offering.

Even if we succeed in developing STX-1150 or product candidates in any of our other programs, we may never achieve commercialization, and we may continue to incur substantial research and development expenses and other expenditures to develop and market additional product candidates. We may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect our business, financial condition, results of operations and prospects. The size of our future losses will depend, in part, on the rate of future growth of our expenses and our ability to generate product revenue, if any. Our prior losses and expected future losses have had and will continue to have an adverse effect on our stockholders' equity and working capital.

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***Even if we complete this offering, we will need substantial additional funds to pursue our business objectives, which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate our development initiatives and programs or other operations.***

Identifying, developing, and continuing the research and development of targets and product candidates is a time consuming, capital-intensive and uncertain process that takes years to complete. If we identify any product candidates and initiate any preclinical studies or clinical trials, development will require substantial additional funds, and such products or studies may not be successful or may require us to significantly expand or create our development, regulatory, manufacturing, marketing and sales capabilities. We have used substantial amounts of cash since inception to develop our proprietary technologies, EXLR and XE, and because we have limited financial and managerial resources, we have prioritized our research and discovery programs in specific indications. Further, we will require significant funds to conduct further research and development and initiate preclinical testing and clinical trials for any product candidates, to seek regulatory approvals for any product candidates and to manufacture and market products, if any, which are approved for commercial sale. In addition, upon the completion of this offering, we expect to incur additional costs associated with operating as a public company. Accordingly, we will need to obtain substantial additional funding in connection with our continuing operations. We may also need to raise additional funds sooner if we choose to pursue additional indications or markets for any product candidates or otherwise expand more rapidly than we presently anticipate.

The development of genetic medicines through our proprietary technologies, ELXR and XE, including the initiation of clinical trials and preclinical studies for our pipeline programs targeting PCSK9, LPA and APOC3 and any product candidates, will require substantial funds. As of December 31, 2025, we had $ million in cash, cash equivalents and investments. Based on our current operating plan, we believe that our existing cash, cash equivalents and investments, together with the net proceeds from this offering, will be sufficient to fund our operating expenses and capital expenditure requirements through .

However, our future capital requirements and the period for which we expect our existing resources to support our operations, fund continued growth of our operations, research and development of product candidates, or otherwise respond to competitive pressures, may vary significantly from what we expect and we may need to seek additional funds sooner than planned. In addition, we may seek additional capital due to favorable market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. Our spending levels vary based on new and ongoing research and development and other corporate activities. Because of the length of time and challenges associated with research and development of genetic medicines using genetic modification technologies, including through our proprietary technologies, ELXR and XE, the development and success of our lead product candidate, development programs or any other product candidates, is highly uncertain. We are unable to estimate the actual funds we will require for development and any marketing and commercialization activities for any approved products in the future. Our funding requirements for our proprietary technologies, ELXR and XE, any product candidates and our ongoing operations, both near- and long-term, will depend on many factors, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing, results, cost and progress of preclinical studies and clinical trials for our STX-1150 product candidate, our STX-1200 and STX-1400 development programs and any other future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the progress and success of developing CRISPR by Design and our ELXR and XE technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of regulatory submissions and timing of regulatory approvals, if any;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number and scope of preclinical and clinical programs we decide to pursue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the progress of the development efforts of parties with whom we have entered into licenses, collaborations and strategic
partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing and amount of milestone and other payments we are obligated to make under our licensing agreements, including
the UCB Exclusive License Agreement (as defined herein), Acuitas Agreement (as defined herein) and any future license agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cash requirements of any future acquisitions of, or discovery of, product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to establish and maintain collaborations, strategic partnerships or marketing, distribution, licensing or other
strategic arrangements with third parties on favorable terms, if at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to achieve sufficient market acceptance, adequate coverage and reimbursement from third-party payors and
adequate market share and revenue for any approved product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs involved in prosecuting and enforcing patent and other intellectual property claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs of manufacturing any product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of commercialization activities if any product candidates are approved for sale, including marketing, sales and
distribution costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our efforts to enhance operational systems and hire additional personnel, including personnel to support development of any
product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential delays in our preclinical studies and clinical trials, if any, due to unforeseen events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our need to implement additional internal systems and infrastructure, including financial and reporting systems to satisfy
our obligations as a public company.

If we are unable to obtain funding on a timely basis or on acceptable terms, we may have to delay, reduce or terminate our research and development programs and preclinical studies or clinical trials, limit strategic opportunities or undergo reductions in our workforce or other corporate restructuring activities. We do not expect to realize revenue from sales of commercial products or royalties from licensed products in the foreseeable future, if at all, and, in no event, before any product candidates are clinically tested, approved for commercialization and successfully marketed.

We will be required to seek additional funding in the future and currently intend to do so through public or private equity offerings or debt financings, additional licensing agreements and/or collaborations, credit or loan facilities, or a combination of one or more of these funding sources. If we raise additional funds by issuing equity securities, our stockholders will suffer dilution and the terms of any financing may adversely affect the rights of our stockholders. In addition, as a condition to providing additional funds to us, future investors may demand, and may be granted, rights superior to those of existing stockholders. Our future debt financings, if available, are likely to involve restrictive covenants limiting our flexibility in conducting future business activities, and, in the event of insolvency, debt holders would be repaid before holders of our equity securities receive any distribution of our corporate assets. If we raise additional funds through licensing or collaboration arrangements with third parties, we may have to relinquish valuable rights to product candidates, or grant licenses on terms that are not favorable to us. Our license and collaboration agreements and any future collaboration or other agreements may also be terminated if we are unable to meet the payment or other obligations under the agreements. We also could be required to seek collaborators for product candidates at an earlier stage than otherwise would be desirable or relinquish our rights to product candidates or

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technologies that we otherwise would seek to develop or commercialize ourselves. Failure to obtain capital when needed on acceptable terms, or at all, may force us to delay, limit or terminate our product development and commercialization of our current or future product candidates, which could have a material adverse effect on our business, financial condition, results of operations and prospects.

**Risks related to discovery, development and commercialization** 

***We are early in our development efforts and we expect it will be many years before we commercialize any product candidate, if ever. If we are unable to advance any product candidates into and through clinical trials, obtain regulatory approval and ultimately commercialize any product candidates, or experience significant delays in doing so, our business will be materially harmed.***

The success of our business depends primarily upon our ability to identify, develop and commercialize product candidates using our ELXR and XE technologies. We expect to initiate clinical development of our lead product candidate, STX-1150, in , and are in preclinical development for our STX-1200 and STX-1400 development programs. Our future success depends heavily on the successful identification and development of product candidates using our EXLR and XE technologies. Our ability to generate product revenue, which we do not expect will occur for many years, if ever, will be a result of the successful development and eventual commercialization of our product candidates, which may never occur. Any product candidates we develop may have adverse side effects or fail to demonstrate safety, purity or potency, which is considered by the U.S. Food and Drug Administration, or FDA, to include effectiveness. Additionally, our product candidates may have other characteristics that may make them impractical or prohibitively expensive for large-scale manufacturing. Furthermore, our product candidates may not receive regulatory approval or, if they do, they may not be accepted by the medical community or patients, or may not be competitive with other products. We currently have no product revenue and we may never be able to successfully develop or commercialize a marketable product.

All of our product candidates and development programs are still in early stages of development. Our research methodology may be unsuccessful in identifying potential targets and product candidates, our product candidates may be shown to have harmful side effects in preclinical *in vitro* experiments or animal model studies, they may not show promising signals of therapeutic activity in such experiments or studies or they may have other characteristics that may make the product candidates impractical to manufacture or develop, unmarketable, or unlikely to receive regulatory approval. We may experience delays in initiating, conducting or completing preclinical studies for a variety of reasons, including due to supply chain interruptions that could lead to shortages in materials or animals required for such studies. For example, recently, it has been reported that there is a shortage of non-human primates, or NHPs, for biomedical research, which are used in our preclinical studies.

Commencing a clinical trial in the United States is also subject to the FDA allowing the clinical trial to proceed under an IND and finalizing the trial design based on discussions with the FDA. Even after we receive and incorporate advice from the FDA or comparable foreign regulatory authorities, these regulatory authorities could disagree that we have satisfied their requirements to commence our clinical trial or change their position on the acceptability of our trial design or the clinical endpoints selected, which may require us to complete additional studies or trials or impose stricter conditions on the conduct of our clinical trials than we currently expect. There are comparable processes and risks applicable to clinical trial applications in other countries, including in Europe.

Even if we complete the clinical trials necessary to support submission of a Biologics License Application, or BLA, in the United States, or comparable marketing application in another jurisdiction,

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we cannot predict when, or if, we will obtain regulatory approval to commercialize our product candidates in the United States or any other jurisdiction, and any such approval may be for a more narrow indication than we seek. In addition, clinical trials conducted in one country may not be accepted by regulatory authorities in other countries, and regulatory approval in one country does not guarantee regulatory approval in any other country. Approval processes vary among countries and can involve additional product candidate testing and validation and additional administrative review periods.

Commercialization of any product candidates we may develop will also require preclinical and clinical development; regulatory and regulatory approval in multiple jurisdictions, including by the FDA or other regulatory authorities; manufacturing supply, capacity and expertise; building of a commercial organization; and significant marketing efforts.

The success of any product candidates we may identify and develop will depend on many factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market acceptance of our ELXR and XE technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• timely completion of successful preclinical studies, including toxicology studies, biodistribution studies, pharmacology
studies and other studies in animals, where applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• being allowed to proceed with clinical trials under Investigational New Drug applications, or INDs, Clinical Trial
Notifications, or CTNs, or other comparable foreign applications for our planned clinical trials for any product candidates we may develop;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• successful enrollment and completion of clinical trials, including in compliance with the FDA's good clinical
practices, or GCPs, good laboratory practices, or GLPs, and any additional regulatory requirements from foreign regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• positive results from any clinical trials that support a finding by applicable regulatory authorities of safety, purity,
potency and effectiveness and an acceptable risk-benefit profile in the intended populations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• receipt of regulatory approvals from applicable regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishment of arrangements through our own facilities or with third-party manufacturers for clinical supply and, where
applicable, commercial manufacturing capabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishment, maintenance, defense and enforcement of patent, trademark, trade secret and other intellectual property
protection or regulatory exclusivity for any product candidates we may develop;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commercial launch of any product candidates we may develop, if approved, whether alone or in collaboration with others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acceptance of any benefits and use of our product candidates we may develop, including method of administration, if and
when approved, by patients, the medical community and third-party payers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effective competition with other therapies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sufficiency of our financial and other resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintenance of a continued acceptable safety, tolerability and efficacy profile of any product candidates we may develop
following approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishment and maintenance of healthcare coverage and adequate reimbursement by payers.

If we do not successfully achieve one or more of these activities in a timely manner or at all, we could experience significant delays or an inability to successfully commercialize any product

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candidates we may develop, which would materially harm our business. If we do not receive regulatory approvals for any product candidates, we may not be able to continue our operations.

***Genetic medicine and epigenetic modification in particular are novel concepts that are not yet clinically validated for human therapeutic use. The approach we are taking to discover and develop novel therapeutics using our ELXR and XE technologies is unproven and may never lead to marketable products.***

We are focused on developing engineered genetic medicines utilizing our proprietary technologies, ELXR and XE, which are new and unproven. ELXR and XE, which we have developed and are utilizing in our research and discovery programs, have not yet been clinically tested. The scientific evidence to support the feasibility of selection of targets and development of product candidates based on genetic modification technologies is both preliminary and limited. Successful development of product candidates will require us to safely deliver product candidates using ELXR and XE into target cells, optimize the efficiency and specificity of such product candidates and ensure the therapeutic selectivity of such product candidates. We may need to address other safety issues as well, and to demonstrate the potential value of these product candidates, and, in some cases, we may need to achieve these goals with a single administration and demonstrate a permanent correction. There can be no assurance that ELXR and XE will achieve these goals, lead to the development of genetic medicine or be successful in addressing any or all of these challenges. Additionally, while we currently expect to use lipid nanoparticles, or LNPs, for delivery of our XE and ELXR based product candidates, the LNPs we expect to utilize will need to be evaluated as part of the clinical trials of our investigational product candidates.

Our future success is highly dependent on the successful development of our genetic modification technologies, delivery methods and therapeutic applications of such technologies. We may decide to alter or abandon our initial research and discovery programs as new data become available and as we gain experience in developing gene editing and genetic modification therapeutics. We cannot be sure that our technologies will yield products that are safe, potent, effective, scalable or profitable in any indication we pursue. Adverse developments in the clinical development efforts of other gene editing and genetic modification technology companies could adversely affect our efforts or the perception of any product candidates we may develop by both investors and regulatory authorities.

Similarly, other gene editing approaches may be determined to be more attractive than our technologies. Moreover, if we decide to develop genetic modification technologies outside of ELXR and XE, we cannot be certain that such technologies will be successful or compete with other existing technologies. Any of these factors could reduce or eliminate our commercial opportunity and could have a material adverse effect on our business, financial condition, results of operations and prospects.

***Adverse public perception of gene editing or gene modification may negatively impact regulatory approval of, and/or demand for, our product candidates.***

Certain of our product candidates, in particular those using our XE technology, involve editing the human genome and making permanent changes. The potential clinical and commercial success of our product candidates will depend in part on public understanding and acceptance of the use of gene editing therapy for the prevention or treatment of human diseases. Public perception and related media coverage relating to the adoption of new therapeutics or novel approaches to treatment, as well as ethical concerns related specifically to gene editing, may adversely influence the willingness of subjects to participate in clinical trials, or, if any product candidate is approved, of physicians and patients to accept these treatments. Adverse events may occur in our preclinical studies or clinical trials or those of our competitors or of academic researchers utilizing gene modification technologies,

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even if not ultimately attributable to product candidates we may identify and develop, and negative publicity could result in increased governmental regulation, unfavorable public perception, potential delays in the testing or approval of product candidates we may identify and develop, stricter labeling requirements for those product candidates that are approved, and a decrease in demand for any such product candidates.

Physicians, healthcare providers and third-party payors often are slow to adopt new products, technologies and treatment practices, particularly those that may also require additional upfront costs and training. Physicians may not be willing to undergo training to adopt these novel therapies, may decide the particular therapy is too complex or potentially risky to adopt without appropriate training, and may choose not to administer the therapy. Furthermore, due to health conditions, genetic profile or other reasons, certain patients may not be candidates for the therapies. In addition, responses by federal and state agencies, Congressional committees and foreign governments to negative public perception, ethical concerns or financial considerations may result in new legislation, regulations or medical standards that could limit our ability to develop or commercialize any product candidates, obtain or maintain regulatory approval or otherwise achieve profitability. New government requirements may be established that could delay or prevent regulatory approval of any product candidates we may develop. It is impossible to predict whether legislative changes will be enacted, regulations, policies or guidance changed, or interpretations by agencies or courts changed, or what the impact of such changes, if any, may be. Based on these and other factors, healthcare providers and payors may decide that the benefits of these new therapies do not or will not outweigh their costs.

***Clinical drug development involves a lengthy and expensive process, with an uncertain outcome, and we cannot predict the time and cost of obtaining regulatory approval, if we receive it at all, for our product candidates, and the regulatory landscape that will govern our product candidates is uncertain.***

The time required to obtain approval for any of our product candidates from the FDA or other comparable foreign regulatory authorities is unpredictable but typically takes many years following the commencement of clinical trials and depends upon numerous factors, including the substantial discretion of regulatory authorities. Clinical trials, if any, may fail to demonstrate that our product candidates are safe, pure, potent or effective for their intended uses. Even if initial clinical trials or animal studies in any of our product candidates we may develop are successful, such product candidates may fail to show the desired purity and potency or efficacy in later stages of clinical development despite having successfully advanced through preclinical studies and initial clinical trials. There is a high failure rate for biologics proceeding through clinical trials. Moreover, preclinical and clinical data are often susceptible to varying interpretations and analyses, and regulatory authorities may not agree with the conclusions we draw from our preclinical studies and clinical trials. A number of companies in the pharmaceutical and biotechnology industries have suffered significant setbacks in later stage clinical trials even after achieving promising results in earlier stage clinical trials.

Further, we or our collaborators may experience delays in initiating or completing clinical trials. We or our collaborators also may experience numerous unforeseen events during, or as a result of, any future clinical trials that we could conduct that could delay or prevent our ability to receive regulatory approval or commercialize our clinical product candidates or any product candidates, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the FDA, TGA or comparable foreign regulatory authorities disagreeing as to the design or implementation of our clinical
trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays or failure to obtain regulatory allowance or approval to initiate our clinical trials, as well as delays or failures
to obtain any necessary approvals from institutional review boards, or IRBs, or ethics committees at clinical sites;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays, suspension, or termination of our clinical trials by regulatory authorities, IRBs or ethics committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• modification of clinical trial protocols;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays or failures in reaching agreement on acceptable terms with prospective contract research organizations, or CROs, and
clinical trial sites, the terms of which can be subject to extensive negotiation and may vary significantly among different CROs and clinical trial sites, as well as possible future breaches of such agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to generate sufficient preclinical, toxicology, or other *in vivo* or *in vitro* data to support the
initiation or continuation of clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to manufacture sufficient quantities of our product candidates for use in our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure by third parties, including contract development and manufacturing organizations, or CDMOs, CROs, and clinical
trial sites to comply with regulatory requirements or trial protocols, or meet their contractual obligations to us in a timely manner, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subjects experiencing severe or serious unexpected treatment-related adverse effects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• imposition of a temporary or permanent clinical hold for safety or other reasons, such as a result of a new safety finding
in a clinical trial on a similar product by one of our competitors, that presents unreasonable risk to clinical trial participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in regulatory requirements and/or guidance that require amending or submitting new clinical trial protocols;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the standard of care on which we developed our clinical development plan, which may require us to conduct new or
additional trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of subjects required for clinical trials of any product candidates being larger than we anticipate, subjects
failing to enroll or remain in our trials at the rate we expect, or failing to return for post-treatment follow-up;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• patients choosing an alternative product for the indications for which we are developing our product candidates, or
participating in competing clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of clinical trials of our product candidates being greater than we anticipated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insufficient funding to continue clinical trials with our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the emergence of unforeseen safety issues or undesirable side effects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• clinical trials of product candidates producing negative or inconclusive results, which may result in our deciding, or
regulators requiring us, to conduct additional clinical trials or abandon development of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selection of clinical trial endpoints that require prolonged periods of observations or extended analysis of the resulting
data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to establish clinical trial endpoints that applicable regulatory authorities consider clinically meaningful;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• results or reports from testing conducted by our competitors or others may raise safety or efficacy concerns about our
programs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interruptions, delays, or staffing shortages resulting from public health crises.

Clinical trials must be conducted in accordance with the FDA's, TGA's and/or other applicable regulatory authorities' legal requirements, and remain subject to oversight by these governmental

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authorities and ethics committees at the medical institutions where such clinical trials are conducted. In addition, changes in regulatory requirements and policies may occur, and we may need to amend clinical trial protocols to comply with these changes. Amendments may require us to resubmit our clinical trial protocols to regulators or to committees for reexamination, which may impact the costs, timing or successful completion of a clinical trial. In addition, regulatory agencies may require extended follow-up observation periods of patients who receive treatment using gene editing products such as the FDA's recommended 15-year follow-up observation period for such patients, which will require us to adopt such observation periods for any product candidates we develop if required by the relevant regulatory agencies, which could vary by country or region.

Further, conducting clinical trials in foreign countries, as we plan to do for our product candidates, presents additional risks that may delay completion of our clinical trials. These risks include the failure of enrolled subjects in foreign countries to adhere to clinical protocols as a result of differences in healthcare services or cultural customs, managing additional administrative burdens associated with foreign regulatory schemes, and political and economic risks, including war, relevant to such foreign countries.

In addition, many of the factors that cause, or lead to, the termination or suspension of, or a delay in the commencement or completion of, clinical trials may also ultimately lead to the denial of regulatory approval of a product candidate. Any resulting delays to our clinical trials could shorten any period during which we may have the exclusive right to commercialize our product candidates. In such cases, our competitors may be able to bring products to market before we do, and the commercial viability of our product candidates could be significantly reduced. Any of these occurrences may harm our business, financial condition and prospects.

***If our product candidates or any licensed products do not achieve development milestones or commercialization in the announced or expected timeframes, the further development or commercialization of such product candidates may be delayed, and our business will be harmed.***

We have estimated, and may in the future estimate, the timing of the accomplishment of various scientific, clinical, manufacturing, regulatory and other product development objectives. These milestones have included and may include our expectations regarding the commencement or completion of clinical trials, data readouts, the submission of regulatory filings, the receipt of regulatory approval or the realization of other commercialization objectives. The achievement of many of these milestones may be outside of our control. All of these milestones are based on a variety of assumptions, including assumptions regarding capital resources, constraints and priorities, progress of and results from development activities and the receipt of key regulatory approvals or actions, any of which may cause the timing of achievement of the milestones to vary considerably from our estimates. If we or our collaborators fail to achieve announced milestones in the expected timeframes, the commercialization of

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the product candidates may be delayed, our credibility may be undermined, our business and results of operations may be harmed, and the trading price of our common stock may decline.

***If we experience delays or difficulties in the enrollment of patients in clinical trials, our clinical development activities and our receipt of necessary regulatory approvals could be delayed or prevented.***

Patient enrollment is a significant factor in the timing of clinical trials, and the timing of our clinical trials will depend, in part, on the speed at which we can recruit patients to participate in our trials, as well as completion of required follow-up periods. We or our collaborators may not be able to conduct clinical trials for any product candidates we identify or develop if we are unable to locate and enroll a sufficient number of eligible patients to participate in these trials as required by the FDA or other comparable regulatory authorities outside the United States, or as needed to provide appropriate statistical power for a given trial. If patients are unwilling to participate in our gene editing trials because of negative publicity from adverse events related to the biotechnology, gene therapy, or gene editing fields, competitive clinical trials for similar patient populations, clinical trials in competing products, or for other reasons, the timeline for recruiting patients, conducting studies and trials, and obtaining regulatory approval of any product candidates we may develop may be delayed. Moreover, some of our competitors currently and may in the future have ongoing clinical trials for product candidates that treat the same indications as the product candidates we are developing and may develop in the future, and patients who would otherwise be eligible for our clinical trials may instead choose to enroll in clinical trials of our competitors' product candidates. Furthermore, risks related to patient enrollment are heightened in longer clinical trials.

Clinical trial patient enrollment is also affected by other factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• severity of the disease under investigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• size of the patient population and process for identifying patients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• design of the trial protocol;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability and efficacy of approved medications for the disease under investigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability of genetic testing for potential patients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ability to obtain and maintain patient informed consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risk that enrolled patients will drop out before completion of the trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• eligibility and exclusion criteria for the trial in question;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• perceived risks and benefits of the product candidate under trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• perceived risks and benefits of gene editing or gene modification as a therapeutic approach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• efforts to facilitate timely enrollment in clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• patient referral practices of physicians;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ability to monitor patients adequately during and after treatment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• proximity and availability of clinical trial sites for prospective patients.

In addition, our ability to successfully initiate, enroll, and complete a clinical trial in any foreign country is subject to numerous risks unique to conducting business in foreign countries, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty in establishing or managing relationships with CROs and physicians;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• different standards for the conduct of clinical trials;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• different standard-of-care for patients
with a particular disease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty in locating qualified local consultants, physicians, and partners; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential burden of complying with a variety of foreign laws, medical standards, and regulatory requirements, including the
regulation of pharmaceutical and biotechnology products and treatment of gene editing technologies.

Enrollment delays in our clinical trials may result in increased development costs for any product candidates we may develop, which would cause the value of our company to decline and limit our ability to obtain additional financing. If we or our collaborators have difficulty enrolling a sufficient number of patients to conduct our clinical trials as planned, we may need to delay, limit, or terminate ongoing or planned clinical trials, any of which would have an adverse effect on our business, financial condition, results of operations, and prospects.

***The field of genetic medicines is relatively new and is evolving rapidly, making us subject to additional development challenges and risks. We are focusing our research and development efforts on genetic modification using our ELXR and XE technologies, but other technologies may be discovered that provide significant advantages, which could materially harm our business.***

To date, we have focused our efforts on developing engineered CRISPR-based medicines through our proprietary technologies, ELXR and XE. However, there are numerous other companies advancing gene editing and gene therapy product candidates that are in preclinical or clinical development. Some of these other companies have previously undertaken research and development of gene editing technologies using other forms of CRISPR protein, or other forms such as base editing, zinc finger nucleases, engineered meganucleases and transcription activator-like effector nucleases, and at least one of these companies has obtained regulatory approval for a product candidate. There can be no certainty that our technologies will lead to the development of genetic medicines or that other genetic modification technologies will not be considered better or more attractive for the development of therapies. For example, transposons, or "jumping genes," can insert themselves into different places in the genome and carry specific DNA sequences to specific sites without the need for making double-stranded breaks in DNA, although such methods currently cannot target specific locations.

Other new gene editing technologies that have not been discovered yet may be determined to be more attractive than ELXR, XE or other technologies we develop. Moreover, if we decide to develop CRISPR-based technologies other than ELXR or XE, we cannot be certain we will be able to obtain rights to such technologies. Although two of our co-founders who currently provide consulting and advisory services to us in the area of gene editing technologies have entered into agreements with us pursuant to which they assign to us any inventions with respect to the services they perform for us, such obligations are subject to limitations and do not extend to their work in other fields or to the intellectual property arising from their employment with their respective academic and research institutions. To obtain intellectual property rights assigned by these co-founders to such institutions, such as the University of California, Berkeley, we would need to enter into license agreements with such institutions, which may not be available on commercially reasonable terms or at all. In addition, other companies may use certain technologies to develop product candidates in areas they believe are not covered under our foundational licensed issued patents, patent applications or know-how. There are also a number of large pharmaceutical and biotechnology companies that currently market and sell products or are pursuing the development of products for the treatment of the disease indications for which we have research programs, using approaches other than gene editing approaches. Any of these factors could reduce or eliminate our commercial opportunity, and could have a material adverse effect on our business, financial condition, results of operations and prospects.

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Moreover, because the *in vivo* application of ELXR and XE may involve genetic modification across multiple cell and tissue types, we are subject to many of the challenges and risks that other gene editing therapeutics and gene therapies face, including evolving regulatory guidance governing gene and gene editing therapy products, the potential risk of improper modulation of a gene sequence and extended follow-up observation periods that may be required by regulatory agencies.

***The durability of epigenetic modulation may not translate from preclinical models to humans***

Our epigenetic silencing platform is designed to achieve durable modulation of gene expression without permanently altering DNA. While we and others have observed the sustained maintenance from mother cell to daughter cell of targeted epigenetic silencing effects in cell models, mouse models and NHP studies, the durability of such effects in humans has not yet been established and may differ materially from preclinical observations.

Epigenetic modifications are regulated by complex and dynamic cellular processes that may vary across species, tissues, disease states, and individual patients. As a result, epigenetic repression achieved in preclinical models may diminish over time in humans due to endogenous chromatin remodeling, cellular turnover, or other regulatory mechanisms, potentially requiring re-dosing or resulting in a transient therapeutic benefit.

While we have demonstrated over 18 months of durability in NHPs, to date, durable epigenetic silencing over multi-year time horizons has not been conclusively demonstrated in human clinical studies for our programs or similar approaches. If epigenetic effects in humans are less durable than anticipated, our product candidates may fail to achieve their intended clinical profile, may require additional dosing, or may be less competitive relative to alternative therapeutic approaches, any of which could adversely affect our business, prospects, and results of operations.

***Any favorable results we may have in our preclinical studies may not be predictive of results that may be observed in later preclinical studies or clinical trials. If any of our product candidates cause serious adverse events, undesirable side effects or unexpected characteristics, such results could delay or prevent regulatory approval, limit the commercial potential or result in significant negative consequences following any potential regulatory approval of such product candidates.***

We are developing certain proprietary technologies to support our product candidates. This has and will continue to lead to significant challenges to develop a corresponding set of technical capabilities in support of these technologies. A variety of serious adverse events, undesirable side effects or unexpected characteristics may occur. Such events, side effects or characteristics could delay or prevent regulatory approval, limit the commercial potential or result in significant negative consequences following any potential regulatory approval of any product candidates we may develop. In addition, ELXR, XE or any other technologies that we develop may lead to other issues, such as inability to deliver the desired efficacy or safety-related consequences, as it is tested in clinical trials.

Any favorable results we may have in our preclinical studies or clinical trials we conduct may not be predictive of results that may be observed in later preclinical studies or clinical trials. Furthermore, we have not generated any clinical trial results to date. Moreover, preclinical and clinical data are often susceptible to varying interpretations and analyses, and many companies that have believed their product candidates performed satisfactorily in preclinical studies and clinical trials have nonetheless failed to obtain regulatory approval of their product candidates. Many product candidates that initially showed promise in early-stage testing for treating a variety of diseases have later been found to lack efficacy or to cause side effects that prevented further clinical development of the product candidates.

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There have been a limited number of clinical trials involving the use of genetic modification technologies. It is impossible to predict when or if any product candidates we may develop will demonstrate adequate safety in humans. In the genetic therapy field more broadly, there have been several significant adverse events related to gene therapy in the past, including both the impact of the technology and the delivery methods used to convey the gene therapy technology. These include a variety of safety concerns, including reported cases of leukemia, other cancers, significant morbidities and death. There can be no assurance that technologies such as ELXR and XE or the delivery methods we are using or plan to use will not cause such undesirable side effects.

We cannot be sure that any targets identified or any of our planned delivery methods will not result in adverse effects in the long-term, such as improper editing of a patient's DNA that leads to lymphoma, leukemia, other cancers or other aberrantly functioning cells or other as yet unidentified findings. Many times, side effects manifest or are only detectable after investigational products are tested in larger scale, pivotal clinical trials or, in some cases, after they are made available to patients on a commercial scale after approval. FDA guidance advises that patients treated with genome editing products undergo long-term follow-up observation for identification of potential adverse events for as long as 15 years. If additional clinical or long-term follow-up experience indicates that any of our potential product candidates have side effects or cause serious or life-threatening side effects, the development of the product candidate may fail or be delayed, or, if the product candidate has received regulatory approval, such approval may be revoked or limited. It is also possible that serious or life-threatening side effects may cause significant delay or altered perception of any product candidates we may develop, even if we are able to later show these effects are unrelated to our product candidates. Any adverse events may cause us to delay, limit or terminate other planned clinical trials, for example any that use a similar delivery method or those that use similar aspects of ELXR or XE, any of which would have a material adverse effect on our business, financial condition, results of operations and prospects.

A significant risk in any gene editing product candidate is the result of "off-target" edits in the case of genome editing and transcriptional changes in the case of epigenetic changes. Off-target changes outside the intended site of gene modification, or unintended consequences of on-and off-target modification may occur, which could cause serious adverse events, undesirable side effects or unexpected characteristics. Although we engineered ELXR and XE to reduce the risk of off-target edits, we have not yet conducted clinical trials with potential product candidates for both ELXR and XE, so it is possible that we will detect off-target edits or other unintended consequences of on-or off-target modifications. Current information is limited and we cannot be certain that any product candidates we identified or may identify and develop will not cause off-target editing or that other unintended consequences of on-or off-target editing will not occur and cause serious adverse events in any of our future clinical trials. Furthermore, the lack of observed serious side effects in any preclinical studies does not guarantee that such side effects will not occur in human clinical trials of any potential product candidates, which would adversely impact our development programs and business.

There is also the potential risk of delayed adverse events following exposure to genetic modification due to other components of product candidates used to carry the genetic material. These risks also apply to "on-target" mis-edits or modifications that are not intended but occur at the target site of gene correction, which might also have all of the above consequences, as well as future unforeseen adverse effects.

Although we have demonstrated the ability to engineer technologies that are designed to improve the specificity of edits in a laboratory setting, we cannot be sure that our engineering efforts will result in the same changes or improvements in a clinical setting or will not lead to adverse effects. We also cannot be sure that any of our planned delivery methods will not result in adverse effects such as improper editing of a patient's DNA that leads to lymphoma, leukemia, other cancers or other aberrantly functioning cells or other as yet unidentified findings. It is also possible that our technologies

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will result in significant immunogenicity that may lead to adverse effects and could also prevent any chance of reapplication of a delivery method, or gene editing method in the future, if needed.

***If STX-1150, STX-1200, STX-1400 or any of our future product candidates receives regulatory approval, and we or others later identify undesirable side effects caused by such product candidates, a number of potentially significant negative consequences could result.***

If any of our product candidates receives regulatory approval, and we or others later identify undesirable side effects caused by such product candidates, a number of potentially significant negative consequences could result. For example, the FDA could require us to adopt a Risk Evaluation and Mitigation Strategy, or REMS, to ensure that the benefits of treatment with such product candidate outweigh the risks for each potential patient, which may include, among other things, a communication plan to healthcare practitioners, patient education, extensive patient monitoring or distribution systems and processes that are highly controlled, restrictive and more costly than what is typical for the industry. In addition to adopting a REMs, we may also be required to adopt or engage in similar actions, such as patient education, certification of healthcare professionals or specific monitoring, if we or others later identify undesirable side effects caused by any product candidate that we develop. Other potentially significant negative consequences associated with adverse events include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be required to suspend marketing of a product, or we may decide to remove such product from the marketplace;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory authorities may withdraw or limit their approvals of a product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory authorities may require additional warnings in the labeling or limit access of a product to selective
specialized centers with additional safety reporting and with requirements that patients be geographically close to these centers for all or part of their treatment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be required to create a medication guide outlining the risks of a product for patients, or to conduct post-marketing
studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be required to change the way a product is administered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we could be subject to fines, injunctions, or the imposition of criminal or civil penalties, or be sued and held liable for
harm caused to subjects or patients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a product may become less competitive; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reputation may suffer.

Any of these events could diminish the usage or otherwise limit the commercial success of our product candidates and prevent us from achieving or maintaining market acceptance of our product candidates, if approved by the FDA or other regulatory authorities.

***Data from our preclinical studies or preliminary, interim or topline data from our clinical trials that we announce or publish from time to time may change as more data become available and are subject to audit and verification procedures that could result in material changes in the final data.***

From time to time, we may publicly disclose data from our completed preclinical studies or preliminary, interim or topline data from prespecified analyses from our preclinical studies and clinical trials. Such data are based on analyses of then-available data, and the results and related findings and conclusions are subject to change following a more comprehensive review of the data related to the particular study or trial. We also make assumptions, estimations, calculations and conclusions as part of our analyses of data, and we may not have received or had the opportunity to fully and carefully evaluate all data. As a result, topline, preliminary, or interim results that we report may differ from

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future results of the same studies or trials, or different conclusions or considerations may qualify such results, once additional data have been received and fully evaluated. Topline and preliminary data also remain subject to audit and verification procedures that may result in the final data being materially different from the topline or preliminary data we previously published. As a result, topline and preliminary data should be viewed with caution until the final data are available.

Data from interim analyses from clinical trials that we may complete are further subject to the risk that one or more of the clinical outcomes may materially change as patient enrollment continues and more patient data become available. Adverse differences between topline, preliminary or interim data and final data could significantly harm our business prospects. Further, disclosure of such data by us or by our competitors could result in volatility in the price of our common stock.

In addition, the information we choose to publicly disclose regarding a particular study or clinical trial is based on what is typically extensive information, and others may not agree with what we determine is material or otherwise appropriate information to include in our disclosure, and any information we determine not to disclose may ultimately be deemed significant with respect to future decisions, conclusions, views, activities or otherwise regarding a particular product candidate or our business. If the topline, preliminary or interim data that we report differ from final results, our ability to obtain approval for, and commercialize, our product candidates may be harmed, which could harm our business, operating results, prospects or financial condition.

***If we or any contract manufacturers and suppliers we engage fail to comply with environmental, health, and safety laws and regulations, we could become subject to fines or penalties or incur costs that could have a material adverse effect on the success of our business.***

We and any contract manufacturers and suppliers we engage are subject to numerous federal, state, and local environmental, health, and safety laws, regulations, and permitting requirements, including those governing laboratory procedures; the generation, handling, use, storage, treatment, and disposal of hazardous and regulated materials and wastes; the emission and discharge of hazardous materials into the ground, air, and water; and employee health and safety. Our operations involve the use of hazardous and flammable materials, including chemicals and biological and radioactive materials. Our operations also produce hazardous waste. We generally contract with third parties for the disposal of these materials and wastes. We cannot eliminate the risk of contamination or injury from these materials. In the event of contamination or injury resulting from our use of hazardous materials, we could be held liable for any resulting damages, and any liability could exceed our resources. Under certain environmental laws, we could be held responsible for costs relating to any contamination at our current or past facilities and at third-party facilities. We also could incur significant costs associated with civil or criminal fines and penalties.

Compliance with applicable environmental laws and regulations may be expensive, and current or future environmental laws and regulations may impair our research and product development efforts. In addition, we cannot entirely eliminate the risk of accidental injury or contamination from these materials or wastes. Although we maintain workers' compensation insurance to cover us for costs and expenses we may incur due to injuries to our employees resulting from the use of hazardous materials, this insurance may not provide adequate coverage against potential liabilities, which could have a material adverse effect on our business, financial condition, results of operations, and prospects.

In addition, we may incur substantial costs in order to comply with current or future environmental, health, and safety laws, regulations, and permitting requirements. These current or future laws, regulations, and permitting requirements may impair our research, development, or production efforts. Failure to comply with these laws, regulations, and permitting requirements also may result in substantial fines, penalties, or other sanctions or business disruption, which could have a material adverse effect on our business, financial condition, results of operations, and prospects.

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Any third-party contract manufacturers and suppliers we engage will also be subject to these and other environmental, health, and safety laws and regulations. Liabilities they incur pursuant to these laws and regulations could result in significant costs or an interruption in operations, which could have a material adverse effect on our business, financial condition, results of operations, and prospects.

***Genetic medicines are novel, and any product candidates we develop may be complex and difficult to manufacture. We could experience delays in satisfying regulatory authorities or production problems that result in delays in our development or commercialization programs, limit the supply of our product candidates we may develop, or otherwise harm our business.***

Any product candidates we may develop will likely require processing steps that are more complex than those required for most chemical pharmaceuticals. Moreover, unlike chemical pharmaceuticals, the physical and chemical properties of a biologic such as the product candidates we intend to develop generally cannot be fully characterized. As a result, assays of the finished product candidate may not be sufficient to ensure that the product candidate will perform in the intended manner. Problems with the manufacturing process, even minor deviations from the normal process, could result in product defects or manufacturing failures that result in lot failures, product recalls, product liability claims, insufficient inventory, or potentially delay progression of our potential IND or BLA submissions. If we successfully develop product candidates, we may encounter problems achieving adequate quantities and quality of clinical-grade materials that meet FDA or other comparable applicable foreign standards or specifications with consistent and acceptable production yields and costs. Our current product candidate and programs utilize LNPs for their delivery modalities, which introduces additional complexities in the manufacturing process.

In addition, if any product is approved, the FDA and other regulatory authorities may require us to submit samples of any lot of such approved product together with the protocols showing the results of applicable tests at any time. Under some circumstances, the FDA or other regulatory authorities may require that we not distribute a lot until the agency authorizes its release. Slight deviations in the manufacturing process, including those affecting quality attributes and stability, may result in unacceptable changes in the product that could result in lot failures or product recalls. Lot failures or product recalls could cause us to delay clinical trials or product launches, which could be costly to us and otherwise harm our business, financial condition, results of operations, and prospects. We also may encounter problems hiring and retaining the experienced scientific, quality control, and manufacturing personnel needed to manage our manufacturing process, which could result in delays in our production or difficulties in maintaining compliance with applicable regulatory requirements. The scientific evidence to support the feasibility of developing product candidates based on this technology is both preliminary and limited, and has yet to be produced at scale.

Given the nature of biologics manufacturing, there is a risk of contamination during manufacturing. Any contamination could materially harm our ability to produce product candidates on schedule and could harm our results of operations and cause reputational damage. Some of the raw materials that we anticipate will be required in our manufacturing process are derived from biologic sources. Such raw materials are difficult to procure and may be subject to contamination or recall. A material shortage, contamination, recall, or restriction on the use of biologically derived substances in the manufacture of any product candidates we may develop could adversely impact or disrupt the commercial manufacturing or the production of clinical material, which could materially harm our development timelines and our business, financial condition, results of operations, and prospects.

Any problems in our manufacturing process or the facilities with which we contract could make us a less attractive collaborator for potential partners, including larger pharmaceutical companies and academic research institutions, which could limit our access to additional attractive development programs. Problems in third-party manufacturing processes or facilities also could restrict our ability to

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ensure sufficient clinical material for any clinical trials we may be conducting or are planning to conduct and meet market demand for any product candidates we develop and commercialize.

***If, in the future, we are unable to establish sales and marketing capabilities or enter into agreements with third parties to sell and market any product we may develop, we may not be successful in commercializing those products if and when they are approved.***

We do not have a sales or marketing infrastructure and have no experience in the sales, marketing or distribution of any product candidates. To achieve commercial success for any approved product, we must either develop a sales and marketing organization or outsource these functions to third parties. In the future, we may choose to build a focused sales, marketing and commercial support infrastructure to sell, or participate in sales activities with collaborators for, some of our product candidates if and when they are approved.

There are risks involved with both establishing our own commercial capabilities and entering into arrangements with third parties to perform these services. For example, factors that may inhibit our efforts to commercialize any approved product candidates include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability to recruit and retain adequate numbers of effective sales, marketing, coverage or reimbursement, customer
service, medical affairs and other support personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability of sales personnel to obtain access to or persuade adequate numbers of decision makers to utilize any future
approved product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability of reimbursement professionals to negotiate arrangements for formulary access, reimbursement and other
acceptance by payors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability to price our product candidates at a sufficient price point to ensure an adequate and attractive level of
profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restricted or closed distribution channels that make it difficult to distribute our product candidates to segments of the
patient population;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the lack of complementary product candidates to be offered by sales personnel, which may put us at a competitive
disadvantage relative to companies with more extensive product candidate lines; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unforeseen costs and expenses associated with creating an independent commercialization organization.

If the commercial launch of a product candidate for which we recruit a sales force and establish marketing and other commercialization capabilities is delayed or does not occur for any reason, we would have prematurely or unnecessarily incurred these commercialization expenses. This may be costly, and our investment would be lost if we cannot retain or reposition our commercialization personnel.

If we enter into arrangements with third parties to perform sales, marketing, commercial support, and distribution services, our sales revenue or the profitability of sales revenue may be lower than if we were to market and sell any product candidates we may develop ourselves. In addition, we may not be successful in entering into arrangements with third parties to commercialize our product candidates or may be unable to do so on terms that are favorable to us. We may have little control over such third parties, and any of them may fail to devote the necessary resources and attention to sell and market our product candidates effectively. If we do not establish commercialization capabilities successfully, either on our own or in collaboration with third parties, we will not be successful in commercializing our product candidates if approved.

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***Due to the novel nature of our technologies and the potential for any product candidates we may develop to offer therapeutic benefit in a single administration or limited number of administrations, we face uncertainty related to pricing and reimbursement for these product candidates.***

We expect the cost of a single administration of genetic medicines, such as those we are seeking to develop, to be substantial, when and if they achieve regulatory approval. We expect that coverage and reimbursement by government and private payors will be essential for most patients to be able to afford these treatments. Accordingly, sales of any such product candidates will depend substantially, both domestically and abroad, on the extent to which the costs of any product candidates we may develop will be paid by government authorities, private health plans, and other third-party payors. Payors may not be willing to pay high prices for a single administration. Coverage and reimbursement by a third-party payor may depend upon several factors, including the third-party payor's determination that use of a product is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a covered benefit under its health plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• safe, effective, and medically necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appropriate for the specific patient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cost-effective; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• neither experimental nor investigational.

Obtaining coverage and reimbursement for a product from third-party payors is a time-consuming and costly process that could require us to provide to the payor supporting scientific, clinical, and cost-effectiveness data. There is significant uncertainty related to third-party coverage and reimbursement of newly approved products. We may not be able to provide data sufficient to gain acceptance with respect to coverage and reimbursement. If coverage and reimbursement are not available, or are available only at limited levels, we may not be able to successfully commercialize any product candidates we may develop. Even if coverage is provided, the approved reimbursement amount may not be adequate to realize a sufficient return on our investment.

Moreover, the downward pressure on healthcare costs in general, particularly prescription drugs and surgical procedures and other treatments, has become intense. As a result, increasingly high barriers are being erected to the entry of new product candidates such as ours. If we are unable to obtain adequate levels of reimbursement, our ability to successfully market and sell any product candidates we may develop will be harmed.

**Risks related to our reliance on third parties** 

***We have entered, and may in the future seek to enter, into collaborations with third parties for the development and commercialization of programs and product candidates using our technologies. If we fail to enter into such collaborations, or such collaborations are not successful, we may not be able to capitalize on the market potential of our ELXR and XE technologies and resulting product candidates.***

We currently are parties to collaboration agreements with Sanofi and Lilly, and we may in the future seek additional third-party collaborators for research, development and commercialization of other therapeutic technologies or product candidates. Biopharmaceutical companies are our prior and likely future collaborators for any marketing, distribution, development, licensing or broader collaboration arrangements. With respect to our existing collaboration agreements, and what we expect will be the case with any future collaboration agreements, we have and would expect to have limited control over the amount and timing of resources that our collaborators dedicate to the

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development or commercialization of our product candidates. Moreover, our ability to generate revenues from these arrangements will depend on our collaborators' abilities to successfully perform the functions assigned to them in these arrangements.

Collaborations involving our technology currently pose, and will continue to pose, the following risks to us:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collaborators have significant discretion in determining the efforts and resources that they will apply to these
collaborations and may not perform their obligations as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collaborators may de-emphasize or not pursue development and commercialization of
any product candidates or may elect not to continue or renew development or commercialization programs based on clinical trial results, changes in the collaborators' strategic focus, including as a result of a sale or disposition of a business
unit or development function, or available funding or external factors such as an acquisition that diverts resources or creates competing priorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collaborators may delay clinical trials, provide insufficient funding for a clinical trial program, stop a clinical trial
or abandon a product candidate, repeat or conduct new clinical trials or require a new formulation of a product candidate for clinical testing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collaborators could independently develop, or develop with third parties, products that compete directly or indirectly with
any product candidates if the collaborators believe that competitive products are more likely to be successfully developed or can be commercialized under terms that are more economically attractive than ours;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a collaborator with marketing and distribution rights to multiple products may not commit sufficient resources to the
marketing and distribution of our product, if approved, relative to other products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collaborators may not properly obtain, maintain, defend or enforce our intellectual property rights or may use our
proprietary information and intellectual property in such a way as to invite litigation or other intellectual property related proceedings that could jeopardize or invalidate our proprietary information and intellectual property or expose us to
potential litigation or other intellectual property related proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disputes may arise between the collaborators and us that result in the delay or termination of the research, development
or, if approved, commercialization of any product candidates or that result in costly litigation or arbitration that diverts management attention and resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collaborations may be terminated and, if terminated, may result in a need for additional capital to pursue further
development or, if approved, commercialization of the applicable product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collaboration agreements may not lead to development or, if approved, commercialization of product candidates in the most
efficient manner or at all; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if a future collaborator of ours were to be involved in a business combination, the continued pursuit and emphasis on our
product development or, if approved, commercialization program could be delayed, diminished or terminated.

If our collaborations do not result in the successful development and commercialization of product candidates, or if one or more of our collaborators terminates its agreement with us, we may not receive any future research funding or milestone or royalty payments under such collaboration. Furthermore, even if we receive such payments, they will likely result in payment obligations under license agreements with our licensors, which could be substantial. If we do not receive the funding we expect under these collaboration agreements, or if the funding is substantially offset by payment obligations to

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our licensors, our development of product candidates could be delayed, and we may need additional resources to develop product candidates. In addition, if one or more of our collaborators terminates its agreement with us, we may find it more difficult to find a suitable replacement collaborator or attract new collaborators, and our development programs may be delayed or the perception of us in the business and financial communities could be adversely affected.

As a result of the foregoing, our current and any future collaboration agreements may not lead to development or commercialization of our product candidates in the most efficient manner or at all.

Moreover, if a collaborator of ours were to be involved in a business combination, the continued pursuit and emphasis on our product development or commercialization program could be delayed, diminished or terminated. Any failure to successfully develop or commercialize our product candidates pursuant to our current or any future collaboration agreements could have a material adverse effect on our business, financial condition, results of operations and prospects.

***If we fail to successfully research, develop and commercialize as required to achieve the milestone, royalty and other payments in our collaboration and license agreements, we will not receive any milestone or royalty payments under such agreements.***

Certain of our collaboration and license agreements include substantial milestone and royalty payments in the event we achieve specified development, regulatory and commercial targets. If we fail to successfully research, develop and commercialize as required to achieve those milestone and royalty payments, we will not be entitled to such payments. Further, certain of our agreements, such as our 2022 Sanofi License Agreement (as defined herein) and 2023 Sanofi License Agreement (as defined herein), provide for nomination, selection, development, regulatory and/or commercial milestone payments on a per licensed target or licensed product basis. If any of such licensed targets fail to develop into a licensed product, we will not receive certain of such milestone payments and will fail to realize the full economic value under such agreements. In certain cases, our counterparties may also terminate the agreements if we fail to achieve specified milestones, or may otherwise terminate in their sole discretion regardless of the performance of our platform and products. In many instances, our receipt of milestone or royalty payments depends on the performance of our counterparties and we have little, if any, control regarding whether such targets are achieved. In addition to other adverse effects on our business that may result from unsuccessful research and product candidates, any failure to achieve milestones under our current, or future, collaboration and license agreements may have a material adverse effect on our business, financial condition, results of operations and prospects.

***If conflicts arise between us and our collaborators, these parties may act in a manner adverse to us and could limit our ability to implement our strategies.***

If conflicts arise between our collaborators and us, the other party may act in a manner adverse to us and could limit our ability to implement our strategies. Our collaborators may develop, either alone or with others, products in related fields that are competitive with the product candidates we may develop that are the subject of these collaborations with us. Competing products, either developed by the collaborators or strategic partners or to which the collaborators or strategic partners have rights, may result in the withdrawal of partner support for any product candidates we may develop.

Our collaborators could develop competing products, preclude us from entering into collaborations with their competitors, fail to obtain timely regulatory approvals, prevent us from obtaining timely regulatory approvals, terminate their agreements with us prematurely or fail to devote sufficient resources to the collaboration efforts, including development, delivery, manufacturing and commercialization of products. Any of these developments could harm our company and product development efforts.

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***We expect to rely on third parties to conduct our clinical trials and some aspects of our research, as well as some aspects of our delivery methods, and those third parties may not perform satisfactorily, including failing to meet deadlines for the completion of such trials, research or testing.***

We currently, and expect to continue to, rely on third parties, such as CROs, clinical data management organizations, medical institutions, preclinical laboratories and clinical investigators, to conduct some aspects of our research. For example, we rely on Acuitas Therapeutics, Inc., or Acuitas, to supply LNPs pursuant to our development and option agreement with them, and, on various third parties to conduct some of our preclinical animal experiments. Any of these third parties may terminate their engagements with us at any time under certain criteria. If we need to enter into alternative arrangements, it may delay our product development activities.

Our reliance on these third parties for research and development activities will reduce our control over these activities but will not relieve us of our responsibilities. For example, we will remain responsible for ensuring that each of our clinical trials is conducted in accordance with the general investigational plan and protocols for the trial. Moreover, the FDA and other regulatory authorities require us and the study sites and investigators we work with to comply with regulations and standards, commonly referred to as GLPs and GCPs for conducting, recording and reporting the results of preclinical studies and clinical trials to assure, amongst other things, that data and reported results are credible and accurate and that the rights, integrity and confidentiality of trial participants are protected. Regulatory authorities enforce GCPs through periodic inspections of trial sponsors, principal investigators and trial sites. If we or any of our CROs or trial sites fail to comply with applicable GLP, GCP or other requirements, the data generated in our preclinical studies or clinical trials may be deemed unreliable, and the FDA or comparable foreign regulatory authorities may require us to perform additional studies or trials before approving our marketing applications, if ever. Failure to comply with these regulations may require us to repeat preclinical studies or clinical trials, which would delay the regulatory approval process.

Although we intend to design the clinical trials for our potential product candidates, CROs will conduct some or all aspects of the clinical trials. As a result, many important aspects of our development programs, including their conduct and timing, will be outside of our direct control. Our reliance on third parties to conduct preclinical studies and future clinical trials will also result in less direct control over the management of data developed through preclinical studies and clinical trials than would be the case if we were relying entirely upon our own staff. Communicating with outside parties can also be challenging, potentially leading to mistakes as well as difficulties in coordinating activities. Among other reasons that may delay or impact the development of our potential product candidates, outside parties may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have staffing difficulties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fail to comply with contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• experience regulatory compliance issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• undergo changes in priorities or become financially distressed; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• form relationships with other entities, some of which may be our competitors.

These factors may materially adversely affect the willingness or ability of third parties to conduct our preclinical studies and clinical trials and may subject us to unexpected cost increases that are beyond our control. If the CROs and other third parties do not perform such preclinical studies and future clinical trials in a satisfactory manner, breach their obligations to us or fail to comply with regulatory requirements, the development, regulatory approval and commercialization of our potential

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product candidates may be delayed, we may not be able to obtain regulatory approval and commercialize our potential product candidates or our development programs may be materially and irreversibly harmed.

In addition, our CROs have the right to terminate their agreements with us in the event of an uncured material breach and under other specified circumstances. If any of our relationships with these third parties terminate, we may not be able to enter into arrangements with alternative third parties on commercially reasonable terms or at all. Switching or adding additional CROs, investigators and other third parties involves additional cost and requires our management's time and focus. In addition, there is a natural transition period when a new CRO commences work. As a result, delays occur, which can materially impact our ability to meet our desired clinical development timelines. Though we work to carefully manage our relationships with our CROs, investigators and other third parties, there can be no assurance that we will not encounter challenges or delays in the future or that these delays or challenges will not have a material adverse impact on our business, financial condition and prospects.

If we are unable to rely on preclinical and clinical data collected by our CROs and other third parties, we could be required to repeat, extend the duration of or increase the size of any preclinical studies or clinical trials we conduct and this could significantly delay commercialization and require greater expenditures.

We may also expect to rely on other third parties to store and distribute drug supplies for our future clinical trials. Any performance failure on the part of our distributors could delay clinical development or marketing approval of any product candidates we may develop or commercialization of our therapies, producing additional losses and depriving us of potential product revenue.

***We rely on third-party manufacturers and suppliers to supply components for ELXR, XE and other technologies we develop. The loss of our third-party manufacturers or suppliers, or our or their failure to comply with applicable regulatory requirements or to supply sufficient quantities at acceptable quality levels or prices, or at all, would materially and adversely affect our business.***

We do not own or operate facilities for drug manufacturing, storage, distribution or quality testing. We currently rely, and may continue to rely, on CDMOs, including in the United States, to manufacture bulk drug substances, drug products, raw materials, samples, components, or other materials and reports. Reliance on CDMOs may expose us to different risks than if we were to manufacture product candidates ourselves. There can be no assurance that our preclinical and clinical development product supplies will not be limited, interrupted, terminated or of satisfactory quality or continue to be available at acceptable prices. In particular, any replacement of our CDMOs could require significant effort and expertise because there may be a limited number of qualified replacements.

The manufacturing process for a product candidate is subject to FDA and other foreign regulatory authority review. We, and our suppliers and manufacturers, must meet applicable manufacturing requirements and undergo rigorous facility and process validation tests required by regulatory authorities in order to comply with regulatory requirements, such as Current Good Manufacturing Practices, or cGMPs. Securing regulatory approval also requires the submission of information about the product manufacturing process to, and inspection of manufacturing facilities by, the FDA and other foreign regulatory authorities. If our contract manufacturers are unable to maintain a compliance status acceptable to the FDA and other foreign regulatory authorities, our product candidates may not be approved. If our contract manufacturers cannot successfully manufacture material that conforms to our specifications and the strict regulatory requirements of the FDA or comparable foreign regulatory authorities, we may not be able to rely on their manufacturing facilities for the manufacture of components of any product candidates. Moreover, although we do not control the manufacturing process at our contract manufacturers and are completely dependent on them for compliance with

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current regulatory requirements, we are nonetheless responsible for ensuring that any product candidates are manufactured in accordance with applicable laws and regulatory requirements. In the event that any of our manufacturers fails to comply with such requirements or to perform its obligations in relation to quality, timing or otherwise, or if our supply of components or other materials becomes limited or interrupted for other reasons, we may be forced to enter into an agreement with another third party, which we may not be able to do on reasonable terms, if at all. In some cases, the technical skills or technology required to manufacture any product candidates may be unique or proprietary to the original contract manufacturer and we may have difficulty transferring the manufacturing of any product candidates to another third party. These factors would increase our reliance on such manufacturer or require us to obtain a license from such manufacturer in order to enable us, or to have another third party, manufacture any product candidates. If we are required to change manufacturers for any reason, we will be required to verify that the new manufacturer maintains facilities and procedures that comply with quality standards and with all applicable regulations and guidelines, and we may be required to repeat some of the development program. Any delays associated with the verification of a new manufacturer could negatively affect our ability to develop product candidates in a timely manner or within budget. In addition, we may not be able to demonstrate sufficient comparability between products manufactured at different facilities to allow for inclusion of the clinical results from participants treated with products from these different facilities, in our product registrations.

We expect to continue to rely on CDMOs if we receive regulatory approval for any product candidate. To the extent that we have existing, or enter into future, manufacturing arrangements with third parties, we will depend on these third parties to perform their obligations in a timely manner consistent with contractual and regulatory requirements, including those related to quality control and assurance. Any manufacturing facilities used to produce any product candidates will be subject to periodic review and inspection by the FDA and other foreign regulatory authorities, including for continued compliance with cGMP requirements, quality control, quality assurance and corresponding maintenance of records and documents. If we are unable to obtain or maintain third-party manufacturing for product candidates, or to do so on commercially reasonable terms, we may not be able to develop and commercialize any product candidates, if approved. Our or a third party's failure to execute on our manufacturing requirements, to comply with cGMPs or to maintain a compliance status acceptable to the FDA or other foreign regulatory authorities could adversely affect our business in a number of ways, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an inability to initiate or continue clinical trials of product candidates under development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delay in submitting regulatory applications, or receiving regulatory approvals, if any, for product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loss of the cooperation of future collaborators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subjecting third-party manufacturing facilities to additional inspections by regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requirements to cease distribution or to recall batches of any product candidates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the event of approval to market and commercialize a product candidate, an inability to meet commercial demands for our
products.

In addition, we do not have any long-term commitments or supply agreements with any third-party manufacturers. We may be unable to establish any long-term supply agreements with third-party manufacturers or to do so on acceptable terms, which increases the risk of failing to timely obtain sufficient quantities of our product candidates or such quantities at an acceptable cost. Even if we are able to establish agreements with third-party manufacturers, reliance on third-party manufacturers entails additional risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of third-party manufacturers to comply with regulatory requirements and maintain quality assurance;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• breach of the manufacturing agreement by the third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tariffs (including tariffs that have been or may in the future be imposed by the United States or other countries), trade
protection measures, import or export licensing requirements, trade embargoes, sanctions (including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury), other trade barriers (including further
legislation or actions taken by the United States or other countries that restrict trade), and protectionist or retaliatory measures taken by the United States or other countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to manufacture our product candidates according to our specifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to manufacture our product according to our schedule or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• misappropriation of our proprietary information, including our trade secrets and know-how; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• termination or nonrenewal of the agreement by the third party at a time that is costly or inconvenient for us.

Additionally, our contract manufacturers may experience manufacturing difficulties due to resource constraints or as a result of labor disputes or unstable political environments. If our contract manufacturers were to encounter any of these difficulties, our ability to provide any product candidates to patients in preclinical and clinical trials, or to provide products for treatment of patients, if approved and commercialized, would be jeopardized.

***We expect to depend on single-source suppliers for some of the components and materials used in our product candidates.***

We expect to depend on single-source suppliers for some of the components and materials used in any future product candidate we develop. We cannot ensure that these suppliers or service providers will remain in business, have sufficient capacity or supply to meet our needs or that they will not be purchased by one of our competitors or another company that is not interested in continuing to work with us. Our use of single-source suppliers of raw materials, components, key processes and finished goods exposes us to several risks, including disruptions in supply, price increases or late deliveries. There are, in general, relatively few alternative sources of supply for substitute components. These vendors may be unable or unwilling to meet our future demands for our clinical trials or commercial sale. Establishing additional or replacement suppliers for these components, materials and processes could take a substantial amount of time and it may be difficult to establish replacement suppliers who meet regulatory requirements. Any disruption in supply from any single-source supplier or service provider could lead to supply delays or interruptions, which would damage our business, financial condition, results of operations and prospects.

If we have to switch to a replacement supplier, the manufacture and delivery of any product candidates we may develop could be interrupted for an extended period, which could adversely affect our business. Establishing additional or replacement suppliers, if required, may not be accomplished quickly. If we are able to find a replacement supplier, the replacement supplier would need to be qualified and may require additional regulatory authority approval, which could result in further delay. While we seek to maintain adequate inventory of the single source components and materials used in our products, any interruption or delay in the supply of components or materials, or our inability to obtain components or materials from alternate sources at acceptable prices in a timely manner, could impair our ability to meet the demand for our product candidates.

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**Risks related to our business and operations** 

***Our future performance depends on our ability to retain our President and Chief Executive Officer, other key executives and other key employees and to attract, retain and motivate qualified personnel and manage our human capital.***

Our ability to compete in the highly competitive biotechnology and pharmaceutical industries largely depends upon our ability to attract, motivate and retain highly qualified managerial, scientific and medical personnel. We are highly dependent on the scientific and management expertise of Dr. Oakes, our President and Chief Executive Officer and the other members of our management team and other key employees and advisors. We currently do not maintain key person insurance on these individuals.

The loss of one or more members of our management team or other key employees or advisors could delay our research and development programs and have a material adverse effect on our business, financial condition, results of operations and prospects. The relationships that our key managers have cultivated within our industry make us particularly dependent upon their continued employment with us. We are dependent on the continued service of our technical personnel, because of the highly technical nature of gene editing and epigenetic modification technologies and of our product candidates, and the specialized nature of the regulatory approval process. Because our management team and key employees are not obligated to provide us with continued service, they could terminate their employment with us at any time without penalty.

We primarily conduct our operations at our facility in Alameda, California. This region is headquarters to many other biopharmaceutical companies and many academic and research institutions. Competition for skilled personnel in our market, and nationally, is intense and may limit our ability to hire and retain highly qualified personnel on acceptable terms or at all. We also face competition for personnel from other companies, universities, public and private research institutions, government entities and other organizations. Our future performance will depend in large part on our continued ability to attract and retain highly qualified scientific, technical and management personnel, as well as personnel with expertise in clinical testing, manufacturing, governmental regulation and commercialization. If we are unable to continue to attract and retain high-quality personnel, the rate and success at which we can discover and develop product candidates will be limited, which could have a material adverse effect on our business, financial condition, results of operations and prospects.

***Our relationships with our co-founders may create the appearance of conflicts of interest.***

Two of our co-founders, Dr. Doudna and Dr. Savage, are pioneers in CRISPR-based genome editing technology and were key contributors to our founding. While we do not rely on Dr. Doudna and Dr. Savage for our day-to-day operations and they are not currently employed by us, we do continue to consult with them as appropriate on strategic matters. However, each of Dr. Doudna and Dr. Savage may be engaged by entities other than us, and may have commitments under consulting or advisory contracts with other entities that may limit their availability to us, as well as other third-party advisors and consultants.

Following this offering, Dr. Doudna and Dr. Savage will continue to serve on our Scientific Advisory Board and as our paid consultants. Dr. Doudna and Dr. Savage's existing positions at UCB could result in, or may create the appearance of, conflicts of interest related to our license of intellectual property rights from UCB and other contractual relationships we may enter into from time to time. Additionally, Dr. Doudna is a co-founder of the gene editing companies Azalea Therapeutics, Caribou Biosciences, Inc., or Caribou, Editas Medicine, Inc., Evercrisp Biosciences, or Evercrisp, Intellia Therapeutics Inc., or Intellia, and Mammoth Biosciences, Inc., or Mammoth. Dr. Doudna also

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continues to serve as a scientific advisory board member of Caribou, Evercrisp, Intellia, and Mammoth. While our agreements with Dr. Doudna and Dr. Savage include (i) confidentiality obligations, (ii) a certification that they will not enter in to obligations that would preclude them from complying with the terms of these agreements and (iii) a notification requirement to us if any potential conflict arises, including due to commencement of a new employment, consulting or business relationship or a change in the business interests of other entities which such person advises, these other relationships could still result in, or may create the appearance of, conflicts of interest to the extent we may be seen as competitors. We do not maintain a separate conflict of interest policy, but pursuant to the terms of our agreements with Dr. Doudna and Dr. Savage, in the event any conflict arises as a result of these agreements, we have the right to modify either agreement in writing. Further, if there is a conflict between these agreements and the terms of the Howard Hughes Medical Institute Uniform Consulting Agreement Provisions that each of Dr. Doudna and Dr. Savage are party to, or the Uniform Provisions, the Uniform Provisions shall govern.

***We expect to significantly expand our development, clinical and regulatory capabilities and operations as we grow, and as a result, we may encounter difficulties in managing our growth, which could disrupt our operations.***

As of December 31, 2025, we had 98 full-time employees. We expect to increase the number of our employees and the scope of our operations, particularly in the areas of platform development, preclinical development, clinical development, clinical operations, manufacturing, late-stage regulatory affairs, finance, accounting, business operations, public company compliance, communications and other corporate development functions, and, if any of our product candidates receive regulatory approval, sales, marketing and distribution capabilities. If we enter into additional collaborations, we may have to further expand our employee base beyond our current projections, which may include further preclinical research and development or later-stage regulatory operations. To manage our anticipated future growth, we must continue to implement and improve our managerial, operational and financial systems, expand our facilities and continue to recruit and train additional qualified personnel. Due to our limited financial resources and the limited experience of our management team in managing a company with such anticipated growth and with developing sales, marketing and distribution infrastructure, we may not be able to effectively manage the expansion of our operations or recruit and train additional qualified personnel. The expansion of our operations may lead to significant costs and may divert our management and business development resources.

Further, we currently rely, and for the foreseeable future will continue to rely, in substantial part on certain third-party contract organizations, advisors and consultants to provide certain services, including assuming substantial responsibilities for the conduct of our discovery programs, preclinical development, any future clinical trials and the manufacturing of any product candidates. We cannot assure you that the services of such third-party contract organizations, advisors and consultants will continue to be available to us on a timely basis when needed, or that we can find qualified replacements. In addition, if we are unable to effectively manage our outsourced activities or if the quality or accuracy of the services provided by our third-party contract organizations, advisors or consultants is compromised for any reason, our clinical trials may be extended, delayed or terminated, and we may not be able to obtain regulatory approval of any product candidates or otherwise advance our business. We cannot assure you that we will be able to properly manage our existing third-party contract organizations, advisors or consultants or find other competent outside third-party contract organizations, advisors and consultants on economically reasonable terms, or at all.

If we are not able to effectively manage growth and expand, we may not be able to successfully implement the tasks necessary to further develop our research and discovery programs or any product candidates and, accordingly, we may not achieve our research, development and commercialization goals.

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***Our business depends on the efficient and uninterrupted operation of our information technology systems, and such systems and those of our third-party vendors, contractors or consultants may fail or suffer security breaches, cyberattacks, loss or leakage of data and other disruptions, which could result in a material disruption of our development programs, compromise sensitive information related to our business or prevent us from accessing critical information, potentially exposing us to liability or otherwise adversely affecting our business.***

We are increasingly dependent upon information technology systems, infrastructure and data to operate our business. In the ordinary course of business, we collect, store and transmit confidential information (including but not limited to intellectual property and proprietary business data). It is critical that we do so in a secure manner to maintain the confidentiality and integrity of such confidential information. We also have outsourced elements of our information technology systems and operations to third parties, and as a result we rely on and manage a number of third-party vendors and other contractors and consultants who have access to our confidential information. We may be unable to adequately protect our information technology systems from cyberattacks, system failures or outages, and such events could compromise our ability to perform these functions in a timely manner or result in the disclosure of confidential information, which could harm our ability to conduct business, delay our financial reporting, and subject us to significant financial and legal exposure.

Despite the implementation of security measures, our information technology systems and those of our third-party vendors and other contractors and consultants are potentially vulnerable to breakdown or other damage or interruption from service interruptions, system malfunction, accidents by our employees or third party service providers, natural disasters, terrorism, war, global pandemics, and telecommunication and electrical failures, as well as security breaches from inadvertent or intentional actions by our employees, third-party vendors, contractors, consultants, business partners and/or other third parties, including theft, fraud or unauthorized access to or use of our information technology systems, or attack or damage from hacking, cyberattacks or supply chain attacks by malicious third parties and sophisticated nation-state and nation-state-supported actors (including the deployment of harmful computer viruses and malware, ransomware, denial or degradation-of-service attacks, software bugs, phishing attacks and other social engineering and other means to affect service reliability and threaten the confidentiality, integrity and availability of information), which may compromise our system infrastructure, or that of our third-party vendors and other contractors and consultants, or lead to data leakage. The risk of a security breach or disruption, particularly through cyberattacks or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity, and sophistication of attempted attacks and intrusions from around the world have increased. We may not be able to anticipate all types of security threats, nor implement preventive measures effective against all such security threats. The techniques used by cyber criminals change frequently, may not be recognized until launched and can originate from a wide variety of sources, including outside groups such as external service providers, organized crime affiliates, terrorist organizations, or hostile foreign governments or agencies. There can also be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, will be fully implemented, complied with or effective in protecting our information technology systems and confidential information. Even if identified, we may be unable to adequately investigate or remediate incidents or breaches due to attackers increasingly using tools and techniques (including artificial intelligence) that are designed to circumvent controls, to avoid detection, and to remove or obfuscate forensic evidence. Any breach, loss or compromise of confidential information may also subject us to liability, including litigation exposure, regulatory action or investigation and civil fines and penalties. If the information technology systems of our third-party vendors and other contractors and consultants become subject to disruptions or security breaches, we may have insufficient recourse against such third parties and we may have to expend significant resources to mitigate the impact of such an event, and to develop and implement protections to prevent future events of this nature from occurring. Additionally, any integration of artificial intelligence in our or any third party's operations, products or services is expected

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to pose new or unknown cybersecurity risks and challenges. Remote and hybrid working arrangements at our company (and at many third-party providers) also increase cybersecurity risks due to the challenges associated with managing remote computing assets and security vulnerabilities that are present in many non-corporate and home networks.

We and certain of our service providers are from time to time subject to cyberattacks and security incidents. While we do not believe we have experienced any such system failure, accident or security breach to date, we cannot assure you that our data protection efforts and our investment in information technology will prevent significant breakdowns, data leakages, breaches in our systems, or those of our third-party vendors and other contractors and consultants, or other cyber incidents that could have a material adverse effect upon our reputation, business, operations, or financial condition. Significant disruptions of our information technology systems or those of our third-party vendors and other contractors and consultants, or security breaches could result in the loss, misappropriation and/or unauthorized access, use, or disclosure of, or the prevention of access to, confidential information (including trade secrets or other intellectual property or proprietary business information) and claims (including class actions) by our counterparties that we have failed to comply with legal or contractual obligations, which could result in financial, legal, business, and reputational harm to us.

We cannot assure you that our CROs, contract manufacturing organizations, or CMOs, or other third party service providers with access to our or our suppliers', manufacturers', and employees' sensitive data in relation to which we are responsible will not breach contractual obligations imposed by us, or that they will not experience data security incidents or other interruptions, which could have a corresponding effect on our business, including under privacy laws and regulations or which could in turn adversely affect our business, financial condition, results of operations and prospects. Furthermore, there can be no assurance that the limitations of liability in our contracts would be enforceable or adequate to protect us from liabilities and damage and we may not have adequate insurance coverage to cover losses, or all types of costs, expenses and losses, we could incur with respect to security breaches or disruptions. The successful assertion of one or more large claims against us that exceeds our available insurance coverage, or results in changes to our insurance policies (including premium increases or the imposition of large deductible or co-insurance requirements), could have an adverse effect on our business. In addition, we cannot be sure that our existing insurance coverage and coverage for errors and omissions will continue to be available on acceptable terms or that our insurers will not deny coverage as to any future claim.

***We are, or may in the future be, subject to stringent and changing obligations related to data privacy and security. Our actual or perceived failure to comply with such obligations could lead to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; loss of customers or sales; and other adverse business consequences.***

The global data protection landscape is rapidly evolving and our data processing activities subject us to numerous data privacy and security obligations, such as various state, federal and foreign laws, regulations, guidance, industry standards, external and internal privacy and security policies, contractual requirements and other obligations that govern the processing of sensitive data by us and on our behalf, and we may be subject to new or additional obligations related to data privacy and security and face increased scrutiny from regulatory authorities as our business grows. In the ordinary course of business, we process personal information and other sensitive information, including our proprietary and confidential business data, trade secrets, intellectual property, data which we expect to collect about trial participants in connection with clinical trials, and other sensitive data. Our data processing activities may subject us to numerous data privacy and security obligations, such as various laws, regulations, guidance, industry standards, external and internal privacy and security policies, contracts and other obligations that govern the processing of sensitive or confidential

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information by us and on our behalf, and we may be subject to new or additional data protection laws and regulations and face increased scrutiny from regulators as our business grows. The legislative and regulatory landscape for data privacy and security continues to evolve in jurisdictions worldwide, and there has been an increasing focus on these issues with the potential to affect our business.

We and our partners may be subject to federal, state and foreign laws and regulations that govern data privacy and security. In the United States, federal, state, and local governments have enacted numerous data privacy and security laws, including consumer protection laws (e.g., Section 5 of the Federal Trade Commission Act), comprehensive consumer privacy laws, sector-specific privacy laws, data breach notification laws, laws regarding marketing, and other similar laws governing the processing of sensitive data that we are or may in the future be required to comply with. Certain states have also adopted comparable privacy and security laws and regulations, which govern the privacy, processing and protection of health-related and other personal information. Such laws and regulations will be subject to interpretation by various courts and other governmental authorities, thus creating potentially complex compliance issues for us and our future customers and strategic partners For example, the California Consumer Privacy Act of 2018 (as amended by the California Privacy Rights Act of 2020), or collectively, the CCPA, imposes certain obligations on businesses that process the personal information of California residents (including employees based in California), such as the obligation to provide specific disclosures in privacy notices, and affords California residents certain rights related to their personal information, including a private right of action in the event of a data breach. Although the CCPA exempts certain personal information processed in the context of clinical trials, the CCPA could increase compliance costs and potential liability. Similar laws have been enacted in a number of other states, and we expect more states to pass similar laws in the future. While these states exempt some data processed in the context of clinical trials, these developments may further complicate compliance efforts and increase legal risk and compliance costs for us and the third parties with whom we work. Certain states have also adopted specific privacy and security laws and regulations which govern the privacy, processing and protection of health-related personal information. Such laws and regulations will likely be subject to interpretation by various courts and other governmental authorities, creating potentially complex compliance issues for us and our future customers and strategic partners. In addition to government activity, privacy advocacy groups and technology and other industries continue to consider new or revised self-regulatory standards related to privacy and security that may place additional burdens on us.

Outside the United States, an increasing number of laws, regulations, and industry standards govern data privacy and security. For instance, the European Union's General Data Protection Regulation, or EU GDPR, and the United Kingdom's GDPR, or UK GDPR, together the GDPR, impose strict requirements for processing the personal data of individuals. For example, under the GDPR, government regulators may impose temporary or definitive bans on data processing, as well as fines of up to €20 million or 4% of annual global revenue, whichever is greater. Further, individuals may initiate litigation related to our processing of their personal data. Among other requirements, the GDPR (and certain other foreign jurisdictions) regulate the cross-border transfer of personal data , which could make it more difficult to transfer information across jurisdictions (such as transferring or receiving personal data that originates in the European Union, or EU, or the United Kingdom to countries such as the United States which are not considered by the EU or United Kingdom to provide adequate protection of personal data. Case law from the Court of Justice of the European Union states that reliance on the standard contractual clauses—a standard form of contract approved by the European Commission as an adequate personal data transfer mechanism—alone may not necessarily be sufficient in all circumstances and that transfers must be assessed on a case-by-case basis. We expect the existing legal complexity and uncertainty regarding international personal data transfers to continue, and international transfers to the United States and to other jurisdictions more generally to continue to be subject to enhanced scrutiny by regulators. As the regulatory guidance and enforcement landscape in relation to data transfers continue to develop, we could suffer additional costs, complaints

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and/or regulatory investigations or fines; we may have to stop using certain tools and vendors and make other operational changes; we may have to implement revised standard contractual clauses for existing arrangements within required time frames; and/or it could adversely affect our business, operations and financial condition.

Complying with these complex and often evolving privacy and security related obligations can be expensive, difficult, time consuming, and subject to inconsistent application and interpretation. Any actual or perceived failure to comply with any such obligations, whether by us, or by our CROs, CMOs, partners or other third parties with whom we work, could result in significant adverse consequences, including: investigation costs; material fines and penalties; compensatory, special, punitive, or statutory damages; litigation (including class actions) and mass arbitration demands; government enforcement actions; requirements to provide notices, credit monitoring or other services to impacted individuals; adverse actions against our licenses; bans or restrictions on processing personal information; required changes to our services, technologies, systems, or practices (or those of our partners); reputational damage; imprisonment of company officials; injunctive relief; and other consequences that could adversely affect our business, financial condition, results of operations and prospects.

***Our business entails a significant risk of product liability and our ability to obtain sufficient insurance coverage could have a material adverse effect on our business, financial condition, results of operations and prospects.***

When we conduct clinical trials of our product candidates, if ever, we may be exposed to significant product liability risks inherent in the development, testing, manufacturing and marketing of therapeutic treatments. Product liability claims could delay or prevent completion of our development programs. If we succeed in marketing products, if approved, such claims could result in an FDA investigation of the safety and effectiveness of our products, our manufacturing processes and facilities or our marketing programs and potentially a recall of our products or more serious enforcement action, limitations on the approved indications for which they may be used or suspension or withdrawal of approvals. Regardless of the merits or eventual outcome, liability claims may also result in decreased demand for our products, termination of clinical trial sites or entire trial programs, withdrawal of clinical trial participants, injury to our reputation and significant negative media attention, significant costs to defend the related litigation, a diversion of management's time and our resources from our business operations, substantial monetary awards to trial participants or patients, loss of revenue, the inability to commercialize any products that we may develop, and a decline in our stock price. We currently maintain general liability insurance. We may, however, need to obtain higher levels of product liability insurance for later stages of clinical development or marketing any of our product candidates. Any insurance we have or may obtain may not provide sufficient coverage against potential liabilities. Furthermore, clinical trial and product liability insurance is becoming increasingly expensive. As a result, we may be unable to obtain sufficient insurance at a reasonable cost to protect us against losses caused by product liability claims that could have a material adverse effect on our business, financial condition, results of operations and prospects.

***Our employees, independent contractors, consultants, commercial partners and vendors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements and insider trading.***

We are exposed to the risk of employee fraud or other illegal activity by our employees, independent contractors, consultants, commercial partners and vendors. Misconduct by these parties could include intentional, reckless and/or negligent conduct that fails to comply with FDA or other similar foreign regulations, provide true, complete and accurate information to the FDA and other similar foreign regulatory bodies, comply with manufacturing standards we may establish, comply with healthcare fraud and abuse laws and regulations, report financial information or data accurately or

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disclose unauthorized activities to us. If we obtain FDA or other regulatory approval of any product candidates and begin commercializing those products in the United States, our potential exposure under these laws will increase significantly, and our costs associated with compliance with these laws will likely increase. In particular, sales, marketing and business arrangements in the healthcare industry are subject to extensive laws and regulations intended to prevent fraud, kickbacks, self-dealing and other abusive practices. These laws and regulations may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer incentive programs and other business arrangements. Employee misconduct could also involve the improper use of information obtained in the course of clinical trials, which could result in regulatory sanctions and serious harm to our reputation. Additionally, we are subject to the risk that a person could allege such fraud or other misconduct, even if none occurred. It is not always possible to identify and deter employee misconduct, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to comply with such laws or regulations. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a material adverse effect on our business, financial condition, results of operations and prospects, including the imposition of significant civil, criminal and administrative penalties, damages, fines, disgorgement, imprisonment, the curtailment or restructuring of our operations, loss of eligibility to obtain approvals from the FDA or other foreign regulatory body exclusion from participation in government contracting, healthcare reimbursement or other government programs, including Medicare and Medicaid, integrity oversight and reporting obligations, or reputational harm.

***Changes in tax laws or regulations that are applied adversely to us may have a material adverse effect on our business, cash flow, financial condition or results of operations.***

New income, sales, use or other tax laws, statutes, rules, regulations or ordinances could be enacted at any time, which could adversely affect our business operations and financial performance. For example, legislation enacted in 2017, informally titled the Tax Cuts and Jobs Act, enacted many significant changes to the U.S. tax laws. For our 2022 through 2024 tax years, the Tax Cuts and Job Act eliminated the option to immediately deduct research and development expenditures and required taxpayers to amortize domestic expenditures over five years and foreign expenditures over fifteen years. Beginning with our 2025 tax year, the One Big Beautiful Bill Act, or OBBBA, restored immediate deductibility of domestic expenditures, while foreign expenditures will continue to be capitalized and amortized over fifteen years. Future changes in corporate tax rates, the realization of net deferred tax assets relating to our operations, the taxation of foreign earnings, and the deductibility of expenses could have a material impact on the value of our deferred tax assets, could result in significant one-time charges, and could increase our future U.S. tax expense. Further, existing tax laws, statutes, rules, regulations or ordinances could be interpreted, changed, modified or applied adversely to us.

Further, we are subject to U.S. federal, state, and local income taxes and other taxes in the United States and will be subject to income taxes, withholding taxes, transaction taxes, and other taxes in any foreign jurisdictions in which we currently do business or may do business in the future. Due to the expanding scale of our international business activities, we may become subject to taxation in additional foreign jurisdictions. Moreover, changes to our corporate structure, including increased headcount and expanded functions outside of the United States, as well as changes to the tax laws in the jurisdictions in which we do business, could impact our worldwide effective tax rate and adversely affect our operating results and financial condition.

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***Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.***

We have incurred substantial losses during our history and do not expect to become profitable in the near future, and we may never achieve profitability. Under the Tax Cuts and Jobs Act, as modified by the CARES Act, unused U.S. federal net operating losses generated in tax years beginning after December 31, 2017, will not expire and may be carried forward indefinitely but the deductibility of such federal net operating losses for any year is limited to no more than 80% of the excess, if any, of current year taxable income (without regard to certain deductions) over any federal net operating losses from taxable years beginning before January 1, 2018. Federal net operating losses generated in tax years beginning before January 1, 2018, may be carried forward for up to 20 taxable years and are not subject to the 80% of taxable income limitation. In addition, both our current and our future unused losses and other tax attributes may be subject to limitation under Sections 382 and 383 of the U.S. Internal Revenue Code of 1986, as amended, or the Code, if we undergo, or have undergone, an "ownership change," generally defined as a greater than 50 percentage point change (by value) in our equity ownership by certain stockholders or groups of stockholders over a three-year period. We performed a Section 382 study which determined that we previously underwent an ownership change in October 2018 that limited the portion of our net operating losses arising before that date. It is possible that we may undergo an additional ownership change as a result of the offering or other shifts in the ownership of our capital stock in the future, some of which may be outside of our control, and which may further limit our ability to use our pre-change net operating loss carryforwards and other pre-change tax attributes (such as research tax credits) to offset our post-change income or taxes, as applicable. Similar provisions of state tax law may also apply to limit our use of accumulated state tax attributes. In addition, at the state level, there may be periods during which the use of net operating losses is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed. As a result, even if we attain profitability, we may be unable to use all or a material portion of our net operating losses and other tax attributes, which could adversely affect our future cash flows.

***We or the third parties we depend on may be adversely affected by natural disasters, terrorist activity, pandemics and other events beyond our control, and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster.***

Any unplanned event, such as flood, fire, explosion, earthquake, extreme weather condition, medical epidemic, terrorist activity, power shortage, telecommunication failure or other natural or manmade accidents or incidents that result in us being unable to fully utilize our facilities, or the manufacturing facilities of our CDMOs, may have a material adverse effect on our ability to operate our business, particularly on a daily basis, and have significant negative consequences on our financial and operating conditions. Extreme weather conditions or other natural disasters could further disrupt our operations and have a material adverse effect on our business, financial condition, results of operations and prospects. If a natural disaster, power outage or other event occurred that prevented us from using all or a significant portion of our headquarters, that damaged critical infrastructure, such as our research facilities or the manufacturing facilities of our CDMOs, or that otherwise disrupted operations, it may be difficult or, in certain cases, impossible, for us to continue our business for a substantial period of time, if at all.

Our employees often conduct business outside of any facilities leased by us. These locations may be subject to additional security and other risk factors due to the limited control of our employees. The disaster recovery and business continuity plans we have in place may prove inadequate in the event of a serious disaster or similar event. We may incur additional and substantial expenses as a result of the limited nature of our disaster recovery and business continuity plans, which could have a material adverse effect on our business. As part of our risk management policy, we maintain insurance coverage at levels that we believe are appropriate for our business. However, in the event of an

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accident or incident at these facilities, we cannot assure you that the amounts of insurance will be sufficient to satisfy any damages and losses. If our facilities, or the manufacturing facilities of our CDMOs, are unable to operate because of an accident or incident or for any other reason, even for a short period of time, any or all of our research and development programs may be harmed. Any business interruption could have a material adverse effect on our business, financial condition, results of operations and prospects.

***We face significant competition in an environment of rapid technological change, and there is a possibility that our competitors may achieve regulatory approval before us or develop therapies that are more effective than ours, which may harm our financial condition and our ability to successfully market or commercialize any product candidates we may develop.***

The development and commercialization of new drug products is highly competitive. Moreover, the genetic medicine field is characterized by rapidly changing technologies, significant competition and a strong emphasis on intellectual property. We will face competition with respect to any product candidates that we may seek to develop or commercialize in the future from major pharmaceutical companies, specialty pharmaceutical companies and biotechnology companies worldwide. Potential competitors also include academic institutions, government agencies and other public and private research organizations that conduct research, seek patent or other intellectual property protection and establish collaborative arrangements for research, development, manufacturing and commercialization.

There are a number of large pharmaceutical and biotechnology companies that currently market and sell products or are pursuing the development of products for the treatment of the disease indications for which we have research programs. Such large companies have significantly greater infrastructure, resources across drug development, large-scale manufacturing, global regulatory engagement, and commercial execution than we do. As a result, they may be able to advance their programs or other competing genetic medicine approaches more rapidly or efficiently than we can, including by initiating or completing clinical trials sooner, investing more heavily in manufacturing scale-up, engaging earlier or more extensively with regulatory authorities, and deploying established global commercial and market-access capabilities. Some of these competitive products and therapies are based on scientific approaches that are the same as or similar to our approach, while others are based on entirely different approaches. Even where competing therapies are based on different technological approaches or involve different design trade-offs, large pharmaceutical and biotechnology companies may be able to achieve earlier market entry, broader physician adoption, or greater commercial penetration due to their scale and resources.

There are several companies utilizing CRISPR-Cas9 technology including CRISPR Therapeutics AG, Editas Medicine, Inc., Intellia Therapeutics, Inc. and Caribou Biosciences, Inc. In addition, companies using Cas attachment or novel nuclease technologies include Beam Therapeutics Inc., Prime Medicine, Inc., Tessera Therapeutics, Inc., Mammoth Biosciences, Inc., Arbor Biotechnologies, Inc., and Metagenomi Technologies, LLC, among others. More recently, several companies have emerged focusing on epigenetic modification to modulate protein expression without directly editing DNA, such as nChroma Bio, Inc., Epicrispr Biotechnologies, Inc. and Tune Therapeutics, Inc. We are aware of a number of genetic medicine companies with operations outside of the United States with active cardiometabolic programs, including AccurEdit Therapeutics, CorrectSequence Therapeutics, Epigenetic Therapeutics Co, Ltd., HuidaGene Therapeutics Co, Ltd., Yoltech Therapeutics Co, Ltd., among others. Several additional companies utilize alternative nuclease-based epigenetic modification technologies, including ZFNs, engineered meganucleases and TALENs. In addition, we face competition from companies utilizing small interfering RNA, or siRNA, oligonucleotides, cell therapy therapeutic approaches and LNP delivery technologies to create therapeutics, including Corsera Health Inc.

Our lead product candidate, STX-1150, and development programs, STX-1200 and STX-1400, target genetic risk factors of ASCVD. There are several approved products for LDL-C lowering or

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cardiovascular risk reduction, such as statins, ezetimibe, bempedoic acid, lomitapide, mipomersen and icosapent ethyl. There are also several approved products that target PCSK9 protein as a mechanism to lower LDL-C and reduce the risk of ASCVD, including evolocumab, which is a monoclonal antibody, or mAb, marketed as Repatha<sup>®</sup> by Amgen Inc., Alirocumab, which is a mAbmarketed as PRALUENT<sup>®</sup> by both Sanofi and Regeneron Pharmaceuticals, Inc., and inclisiran, which is a siRNA marketed as LEQVIO<sup>®</sup> by Novartis.

We are also aware of two other gene editing programs targeting PCSK9 in development by Verve Therapeutics, a subsidiary of Eli Lilly and Company. Additionally, there are other investigational therapies targeting PCSK9, including Merck & Co., Inc.'s enlicitide and AstraZeneca's plc's laroprovstat.

Further, several investigational medicines designed to reduce Lp(a) are currently in clinical development. These include pelacarsen, an antisense oligonucleotide licensed by Novartis, olpasiran an investigational siRNA medicine targeting Lp(a) licensed by Amgen, zerlasiran, an investigational siRNA medicine being developed by Silence Therapeutics plc., and lepodisiran, an investigational siRNA being developed by Eli Lilly and Company. In addition, CRISPR Therapeutics AG and Verve Therapeutics, a subisidary of Eli Lilly and Company, have disclosed programs targeting Lp(a) in preclinical development.

In addition, several medicines designed to reduce APOC3 are currently approved and in clinical development. These include olezarsen, an antisense oligonucleotide marketed as TRYNGOLZA by Ionis Pharmaceuticals, Inc. approved for familial chylomicronemia syndrome, or FCS, and plozasiran, an siRNA medicine targeting *APOC3* marketed as REDEMPLO by Arrowhead Pharmaceuticals, Inc. and approved for FCS.

Any product candidates that we successfully develop and commercialize will compete with existing therapies and new therapies that may become available in the future that are approved to treat the same diseases for which we may obtain approval for our product candidates. This may include gene editing companies with other approaches, as well as other types of therapies.

Many of our competitors, either alone or in combination with their respective strategic partners, have significantly greater financial resources and expertise in research and development, manufacturing, regulatory approval processes, and marketing than we do. Mergers and acquisitions in the pharmaceutical, biotechnology and gene editing industries may result in resources becoming increasingly concentrated among a smaller number of our competitors. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. We also compete with these companies to recruit and retain qualified scientific and management personnel. We will also face significant competition in other areas as we approach commercialization of any product candidates, including establishing clinical trial sites, recruiting patients for clinical trials, establishing sales and marketing networks and producing technologies complementary to, or necessary for, our programs.

Our commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are safer or more effective, particularly if they represent cures, or are better tolerated, more convenient, or less expensive than any products that we may develop. Our competitors also may obtain FDA or other regulatory approval for their products more rapidly than we may obtain approval for ours, which could result in our competitors establishing a strong market position before we are able to enter the market, or may establish more effective sales and marketing platforms. The key competitive factors affecting the success of all of our programs are likely to be their efficacy, safety, convenience and availability of reimbursement, as well as our ability to effectively market our products.

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In addition, as a result of the expiration or successful challenge of our patent or other intellectual property rights, we could face risks relating to our ability to successfully prevent or delay launch of competitors' products. The availability of our competitors' products could limit the demand and the price we are able to charge for any product candidates that we may develop and commercialize.

**Risks related to intellectual property** 

***If we are unable to obtain and maintain patent and other intellectual property protection for our technology and products in the United States or other countries, or if the scope of the patent protection obtained is not sufficiently broad, we may not be able to compete effectively.***

We rely upon a combination of patents, trademarks, trade secret protection, and confidentiality agreements to protect the intellectual property related to our CRISPR-based technologies, ELXR and XE. Our commercial success will depend in large part on our ability to obtain and maintain patent protection in the United States and other countries with respect to our CRISPR-based medicines, ELXR and XE, and other product candidates and technologies, and their respective methods of their use and manufacture. We seek to protect our proprietary position by filing patent applications in the United States and abroad related to our current or future product candidates, whether those applications are company owned or in-licensed. The patent prosecution process is expensive and time-consuming, and we may not be able to file, prosecute, or maintain all necessary or desirable patent applications at a reasonable cost or in a timely manner. It is also possible that we will fail to identify patentable aspects of our research and development in a manner timely enough to obtain patent protection.

In addition, we may not pursue or obtain patent protection in all relevant countries. Filing, prosecuting and defending patents covering our current or future product candidates and technologies throughout the world would be prohibitively expensive. Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products, and further may export otherwise infringing products to countries where we may obtain or have patent protection, but where patent enforcement is not as strong as that in the United States. These products may compete with our products and technologies in jurisdictions where we do not have any issued patents, and any future patent claims or other intellectual property rights may not be effective or sufficient to prevent them from so competing. The effects of geopolitical tensions could significantly limit our ability to enforce our patents in those affected jurisdictions.

The patent applications we own or in-license may fail to result in issued patents with claims that protect our current or future product candidates or technologies in the United States or in other foreign countries. There is also no assurance that all of the potentially relevant prior art relating to our patents and patent applications has been found, which can prevent a patent from being issued from a pending patent application or be used to invalidate an issued patent. Even if patents do successfully issue and even if such patents cover our current or future product candidates or technologies, third parties may challenge their validity, enforceability or scope, which may result in such patents being narrowed, invalidated or held unenforceable. Any successful opposition to these patents or any other patents owned by or licensed to us could deprive us of rights necessary for the successful commercialization of our current or future product candidates and technologies. Further, if we encounter delays in regulatory approvals, the period of time during which we could market a product candidate under patent protection could be reduced.

If the patent applications we own or have in-licensed with respect to our current or future product candidates or technologies fail to issue, if their breadth or strength of protection is threatened, or if they fail to provide meaningful exclusivity for our current or future product candidates or technologies, it could dissuade companies from collaborating with us to develop gene editing technologies and threaten our ability to commercialize our future product or technology offerings. Any such outcome could have a materially adverse effect on our business.

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The patent position of biotechnology and pharmaceutical companies generally is highly uncertain, involves complex legal and factual questions and has been and will continue to be the subject of litigation and new legislation. The field of CRISPR-based gene editing has already been the subject of extensive patenting activity and litigation.

In addition, the laws of foreign countries may not protect our rights to the same extent as the laws of the United States. For example, many countries restrict the patentability of methods of treatment of the human body. Many companies have encountered significant problems in protecting and defending intellectual property rights in countries outside the United States. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade secrets, and other intellectual property protection, particularly those relating to biotechnology products, which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our intellectual property and proprietary rights generally. In addition, certain countries do not allow for patent protection regarding methods of treatment.

Many countries outside the United States also have compulsory licensing laws under which a patent owner in certain circumstances may be compelled to grant licenses to third parties. In addition, many countries outside the United States limit the enforceability of patents against government agencies or government contractors. In these countries, the patent owner may have limited remedies, which could materially diminish the value of such patent. If we or any of our licensors are forced to grant a license to third parties with respect to any patents relevant to our business, our competitive position may be impaired, and our business, financial condition, results of operations and prospects may be adversely affected.

Publications of discoveries in scientific literature often lag behind the actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18 months after filing, or in some cases not at all. Therefore, we cannot know with certainty whether we were the first to make the inventions claimed in our owned or licensed patents or pending patent applications, or that we were the first to file for patent protection of such inventions. As a result of these and other factors, the issuance, scope, validity, enforceability and commercial value of our patent rights are highly uncertain. Our pending and future patent applications may not result in patents being issued which protect our technology or product candidates, in whole or in part, or which effectively prevent others from commercializing competitive technologies and products. Changes in either the patent laws or interpretation of the patent laws in the United States and other countries may diminish the value of our patents or narrow the scope of our patent protection.

Moreover, we may be subject to a third-party pre-issuance submission of prior art to the U.S. Patent and Trademark Office, or USPTO, or become involved in opposition, derivation, reexamination, *inter partes* review, post-grant review or other proceeding challenging our owned or licensed patent rights at the USPTO or patent offices in other countries. The costs of defending our owned or licensed patents in these types of administrative proceedings and litigation matters can be substantial and the outcome can be uncertain. An adverse determination in any such submission, proceeding or litigation could reduce the scope of, or invalidate, our patent rights, allow third parties to commercialize our current or future product candidates or technologies and compete directly with us, without payment to us. In addition, if the breadth or strength of protection provided by our patents and patent applications is threatened, it could dissuade companies from collaborating with us to license, develop, or commercialize our product candidates or technologies.

The issuance of a patent is not conclusive as to its inventorship, scope, validity or enforceability, and our owned and licensed patents may be challenged in the courts or patent offices in the United States and abroad. Such challenges may result in loss of exclusivity or freedom to operate or in patent

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claims being narrowed, invalidated or held unenforceable, in whole or in part, which could limit our ability to stop others from using or commercializing similar or identical technology and products, or limit the duration of the patent protection of our technology and products. Generally, issued patents are granted a term of 20 years from the earliest claimed non-provisional filing date. In certain instances, patent term can be adjusted to recapture a portion of delay by the USPTO in examining the patent application (patent term adjustment) or extended to account for term effectively lost as a result of the FDA regulatory review period (patent term extension), or both. The scope of patent protection may also be limited. Without patent protection for our current or future product candidates, we may be open to competition from generic versions of such products. Given the amount of time required for the development, testing and regulatory review of new gene editing technologies, patents protecting our product candidates might expire before or shortly after such candidates are commercialized. As a result, our owned and licensed patent portfolio may not provide us with sufficient rights to exclude others from commercializing products similar or identical to ours.

***Our rights to develop our CRISPR-based technologies, ELXR and XE, and to develop and commercialize our product candidates are subject, in part, to the terms and conditions of licenses granted to us by others.***

We have licensed and are dependent on certain patent rights and proprietary technology from third parties that are important or necessary to the development of our CRISPR-based technologies and product candidates. For example, we are a party to the UCB Exclusive License Agreement with the Regents of the University of California, or the Regents, pursuant to which we license patents and patent applications that relate to our CRISPR-based technologies. The UCB Exclusive License Agreement imposes various diligence, milestone payment, royalty, insurance, indemnification and other obligations on us. If we breach any material obligation, or use the intellectual property licensed to us in an unauthorized manner, we may be required to pay damages and the Regents may have the right to terminate the license. If the license is terminated, we may be unable to develop, manufacture, sell, or use our CRISPR-based technologies and products that are covered by the patents licensed under the UCB Exclusive License Agreement, and the Regents may allow a competitor to license the covered technology instead. For more information regarding this agreement, please see "Business—Material Agreements."

Our licenses may not provide us with exclusive rights to use the licensed intellectual property and technology in all relevant fields of use and in all territories in which we may wish to develop or commercialize our CRISPR-based gene editing technologies and product candidates in the future. Some licenses granted to us are subject to certain exclusivity restrictions or preexisting rights. Further, our out-license agreements generally include exclusivity terms limiting our ability to develop product candidates that may compete with the relevant licensed target or product. If such exclusivity restrictions prevent us from developing or commercializing our technologies in a way that we deem necessary to gain or maintain our competitive advantage, it may have a material adverse effect on our competitive position, business, financial conditions, results of operations and prospects.

We do not have complete control in the preparation, filing, prosecution, maintenance, enforcement and defense of patents and patent applications covering the technology that we license from third parties. It is possible that our licensors' enforcement of patents against infringers or defense of such patents against challenges of validity or claims of enforceability may be less vigorous than if we had conducted them ourselves, or may not be conducted in accordance with our best interests. We cannot be certain that these patents and patent applications will be prepared, filed, prosecuted, maintained, enforced and defended in a manner consistent with the best interests of our business. If our licensors fail to prosecute, maintain, enforce and defend such patents, or lose rights to those patents or patent applications, the rights we have licensed may be reduced or eliminated, our right to

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develop and commercialize any of our product candidates we may develop that are the subject of such licensed rights could be adversely affected and we may not be able to prevent competitors from making, using and selling competing products.

Furthermore, inventions contained within our in-licensed patent applications from the Regents under the UCB Exclusive License Agreement were made using U.S. government funding. We rely on the Regents to ensure compliance with applicable obligations arising from such funding, such as timely reporting, an obligation associated with our in-licensed patents and patent applications. The failure of the Regents to meet their obligations may lead to a loss of rights or the unenforceability of relevant patents. For example, the U.S. government could have certain rights in such in-licensed patent applications, including a non-exclusive license authorizing the U.S. government to use the invention or to have others use the invention on its behalf. If the U.S. government decides to exercise these rights, it is not required to engage us as its contractor in connection with doing so. The U.S. government's rights may also permit it to disclose the funded inventions and technology to third parties and to exercise march-in rights to use or allow third parties to use the technology we have licensed that was developed using U.S. government funding. The U.S. government may also exercise its march-in rights if it determines that action is necessary because we or our licensor failed to achieve practical application of the U.S. government-funded technology, because action is necessary to alleviate health or safety needs, to meet requirements of federal regulations, or to give preference to U.S. industry. In addition, our rights in such in-licensed U.S. government-funded inventions may be subject to certain requirements to manufacture product candidates embodying such inventions in the United States. Any of the foregoing could harm our business, financial condition, results of operations, and prospects significantly.

Our licensors may have relied on third-party consultants or collaborators or on funds from third parties such that our licensors are not the sole and exclusive owners of the patents we in-licensed. If other third parties have ownership rights to our in-licensed patents, the license granted to us in jurisdictions where the consent of a co-owner is necessary to grant such a license may not be valid and such co-owners may be able to license such patents to our competitors, and our competitors could market competing products and technology. In addition, our rights to our in-licensed patents and patent applications are dependent, in part, on inter-institutional or other operating agreements between the joint owners of such in-licensed patents and patent applications. If one or more of such joint owners breaches such inter-institutional or operating agreements, our rights to such in-licensed patents and patent applications may be adversely affected. Any of these events could have a material adverse effect on our competitive position, business, financial conditions, results of operations and prospects.

***We may not be successful in obtaining additional rights necessary to commercialize our current and future product candidates and technologies, and even if we are successful in obtaining such rights, if we fail to comply with our obligations under the agreements governing those rights, we may be required to pay damages or could lose intellectual property rights that are necessary for developing our current and future product candidates and technologies.***

The field of gene editing is competitive and growing, and we may need to obtain licenses to additional intellectual property from others in order to commercialize our CRISPR-based technologies and any product candidates. We may also need to obtain licenses from third parties covering our product candidates or technologies, or covering auxiliary technologies that are still required for the development and commercialization for our product candidates, such as certain delivery methods. For example, we are aware of certain third-party patents and patent applications in the gene repression space that may be related to our future products that incorporate ELXR. We may find it necessary or prudent to obtain licenses from such third-party intellectual property holders, or to challenge the patentability of claims in these third-party patents and patent applications in re-examination, post-grant review, *inter partes* review, derivation proceedings, and equivalent proceedings in foreign jurisdictions (e.g., opposition proceedings).

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In addition, with respect to any patents we may co-own with third parties, we may require licenses to such co-owners' interest in such patents. However, we may be unable to secure any of these licenses or otherwise acquire the intellectual property rights from third parties that we identify as necessary to develop and commercialize our product candidates and technologies or may be unable to secure such rights on commercially reasonable terms. The licensing or acquisition of third-party intellectual property rights is a highly competitive area, and a number of more established companies may also be pursuing strategies to license or acquire third party intellectual property rights that we may consider attractive or necessary. These established companies may have a competitive advantage over us due to their size, capital resources and greater clinical development and commercialization capabilities. In addition, companies that perceive us to be a competitor may be unwilling to assign or license rights to us. If we are unable to successfully obtain rights to required third party intellectual property rights, that could have a material adverse effect on our business.

Similarly, even if we were to obtain licenses or otherwise acquire intellectual property rights from third parties that we identify as necessary to develop and commercialize our products, if, for any reason, these agreements are terminated or we otherwise lose those rights, it could adversely affect our business. These agreements are likely to impose various development, commercialization, funding, milestone, royalty, diligence, sublicensing, insurance, patent prosecution, and enforcement or other obligations on us.

If we breach any material obligation, or use the intellectual property licensed to us in an unauthorized manner, we may be required to pay damages and the licensor(s) may have the right to terminate the license, which could result in us being unable to develop, manufacture and sell products that are covered by the licensed technology or enable a competitor to gain access to the licensed technology. It is possible that we may be unable to obtain additional licenses to such intellectual property rights at a reasonable cost or on reasonable terms. In such event, we may have to expend significant time and resources to redesign our product candidates or technologies, which may not be feasible on a technical or commercial basis. If we are unable to do so, we may be unable to develop or commercialize certain product candidates or expand our platform capabilities, which could harm our business.

Furthermore, disputes may arise regarding the intellectual property rights that are subject to our such license agreements that may limit the scope of our rights under those agreements. These disputes may include challenges regarding the scope of rights granted under the license agreement, disputes about sublicensing of patent rights to third parties, disputes regarding diligence obligations, disputes regarding inventorship, and/or disputes regarding ownership. Any such dispute will likely be time-consuming and costly, and if we are unsuccessful, may result in a loss of ability to commercialize our product candidates, or may increase our financial obligations.

***Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for noncompliance with these requirements.***

Periodic maintenance fees, renewal fees, annuity fees, and other government fees on any issued patent are due to be paid to the USPTO and other foreign patent agencies in several stages over the lifetime of the issued patent. The USPTO and various foreign national or international patent agencies also require compliance with a number of procedural, documentary, fee payment and other similar provisions during the patent application process. In certain circumstances, we rely on our licensor to pay these fees and ensure proper compliance with the procedural and documentary provisions, and do not have direct control over such compliance. While an inadvertent lapse can in many cases be cured by payment of a late fee or by other means in accordance with the applicable rules, there are situations

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in which noncompliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Noncompliance events that could result in abandonment or lapse of patent rights include, but are not limited to, failure to timely file national and regional stage patent applications based on our international patent application, failure to respond to official actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents. If we or our licensors fail to maintain the patents and patent applications covering our current or future product candidates or technologies, our competitors might be able to enter the market with similar or identical products or technology, which would have an adverse effect on our business.

***If we do not obtain patent term extension and data exclusivity for any product candidates we may develop, our business may be materially harmed.***

Depending upon the timing, duration and specifics of any FDA marketing approval of any product candidates we may develop, one or more of our U.S. patents may be eligible for limited patent term extension under the Drug Price Competition and Patent Term Restoration Act of 1984, or the Hatch-Waxman Amendments. The Hatch-Waxman Amendments permit a patent term extension term of up to five years as compensation for patent term lost during the FDA regulatory review process. However, patent term extension cannot extend the remaining term of a patent beyond a total of 14 years from the date of product approval, or 5 years from the expiration date of the patent to be extended. Only one patent per product may be extended and only those claims covering the approved biologic, a method for using it, or a method for manufacturing it may be extended. Moreover, even if we were to seek patent term extension, it may not be granted because of, for example, the failure to exercise due diligence during the testing phase or regulatory review process, the failure to apply for the extension within applicable deadlines, the failure to apply prior to expiration of relevant patents, or any other failure to satisfy applicable requirements. Moreover, the extension afforded could be less than we request. If we are unable to obtain patent term extension or term of any such extension is less than we request, our competitors may obtain approval of competing products following our patent expiration, and our business, financial condition, results of operations, and prospects could be materially harmed.

***Third party claims or litigation alleging infringement of patents or other proprietary rights, or seeking to invalidate our patents or other proprietary rights, may delay or prevent the development and commercialization of our current or future product candidates or technologies.***

Our commercial success depends in part on our avoiding infringement and other violations of the patents and proprietary rights of third parties. The intellectual property landscape around gene editing technology is highly dynamic and there is a substantial amount of litigation, both within and outside the United States, involving patent and other intellectual property rights in the biotechnology industry, and in the gene editing space in particular. Potential litigation could include patent infringement lawsuits, derivation and administrative law proceedings, *inter partes* review and post-grant review before the USPTO, as well as oppositions and similar processes in foreign jurisdictions. As the gene editing field continues to expand and more patents are issued, and as we gain greater visibility and market exposure as a public company, the risk increases that our product candidates or other business activities may be subject to claims of infringement of the patent and other proprietary rights of third parties. Third parties may assert that we are infringing their patents or employing their proprietary technology without authorization, and we may not be successful in challenging the validity and/or enforceability of such third-party patents. Also, there may be third party patents or patent applications with claims to materials, formulations, methods of manufacture or methods for treatment related to the use or manufacture of our product candidates. Because patent applications can take many years to issue, there may be currently pending patent applications which may later result in issued patents that our product candidates or technologies may infringe.

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Defense of third-party claims of patent infringement or violation of intellectual property rights involves substantial litigation expense and would be a substantial diversion of management and employee time and resources from our business. Some third parties may be able to sustain the costs of complex patent litigation more effectively than we can because they have substantially greater resources. In addition, any uncertainties resulting from the initiation and continuation of any litigation could have a material adverse effect on our ability to raise funds necessary to continue our operations or could otherwise have a material adverse effect on our business, financial condition, results of operations and prospects. There could also be public announcements of the results of hearings, motions, or other interim proceedings or developments, and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. Any of the foregoing events could have a material adverse effect on our business, financial condition, results of operations and prospects.

In addition, third parties may obtain patent rights in the future and claim that use of our product candidates or other technologies infringe upon these rights. If any third-party patents were held by a court of competent jurisdiction to cover our product candidates, or any aspect of their manufacture or use, the holders of any such patents may be able to block our ability to commercialize such product candidate or technology unless we obtain a license under the applicable patents, or until such patents expire. Such a license may not be available on commercially reasonable terms, or at all. In addition, we may be subject to claims that we are infringing other intellectual property rights, such as trademarks or copyrights, or misappropriating the trade secrets of others, and to the extent that our employees, consultants or contractors use intellectual property or proprietary information owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions.

Parties making claims against us may seek and obtain injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize one or more of our product candidates. Defense of these claims, regardless of their merit, would involve substantial litigation expense and would be a substantial diversion of employee resources from our business. In the event of a successful infringement or other intellectual property claim against us, we may have to pay substantial damages, including treble damages and attorneys' fees for willful infringement, obtain one or more licenses from third parties, pay royalties or redesign our affected products or technologies, which may be impossible or require substantial time and monetary expenditure. We cannot predict whether any such license would be available at all or whether it would be available on commercially reasonable terms.

The scope of a patent claim is a legal determination made by the courts. It is informed by the written disclosure of a patent, the patent's prosecution history, and other intrinsic and extrinsic factors. Our interpretation of a patent claim may not be adopted during a patent litigation alleging infringement by our products. If a court does not adopt our claim interpretation and determines that our product candidates are covered by a third-party patent, we may be held liable for damages. Similarly, we may incorrectly predict whether a third-party patent application will issue with claims that cover one or more of our product candidates. If our claim interpretations are not adopted by the USPTO during prosecution of a third-party patent application, or by a court in a patent infringement dispute, our ability to develop and market our product candidates may be harmed.

Moreover, we, or one of our licensors, may have to participate in post-grant challenge proceedings, such as oppositions in a foreign patent office, that challenge priority of invention or other features of patentability. If we or our licensors are unsuccessful in any validity (including any patent oppositions) or inventorship disputes to which we or they are subject, we may lose valuable intellectual property rights through the loss of one or more of our owned, licensed or optioned patents, or such patent claims may be narrowed, invalidated or held unenforceable, or through loss of exclusive ownership of or the exclusive right to use our owned or in-licensed patents. In the event of loss of

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patent rights as a result of any of these disputes, we may be required to obtain licenses from third parties, including parties involved in any such proceedings. If we are unable to obtain such licenses, we may need to cease the development, manufacture and commercialization of one or more of the product candidates or technologies we may develop. The loss of exclusivity or the narrowing of our patent claims could limit our ability to stop others from using or commercializing similar or identical technology and product candidates. Even if we or our licensors are successful in such a proceeding, it could result in substantial costs and be a distraction to management and other employees.

Furthermore, the gene editing patent landscape is crowded and highly competitive. Numerous third-party U.S. and foreign issued patents and pending patent applications exist in the fields in which we are developing product candidates, including gene editing, guide nucleic acids, protospacer adjacent motif, or PAM, sequence variants, and gene repression technology, and they may assert infringement claims against us based on existing patents or patents that may be granted in the future, regardless of their merit. Ongoing research and development in the gene editing space is taking place by several companies, universities, and other institutions. There can be no assurance that our operations do not, or will not in the future, infringe, misappropriate or otherwise violate existing or future third-party patents or other intellectual property rights. Identification of third-party patent rights that may be relevant to our operations is difficult because patent searching is imperfect due to differences in terminology among patents, incomplete databases, and publication timelines. We cannot guarantee that any patent searches we may conduct are complete or thorough enough to identify every third-party patent and pending application in the United States and/or abroad that is relevant to or necessary for the development and commercialization of our product candidates in any country.

There has already been significant intellectual property activity in the CRISPR-based gene editing space, and we expect that to continue. The extensive patent filings related to CRISPR related technologies make it difficult for us to assess the full extent of potentially relevant patents that may cover some aspect of our product candidates. Even in the absence of litigation, we may need to obtain licenses from third parties in order to advance our research or allow commercialization of our product candidates. We may fail to obtain any of these licenses at a reasonable cost or on reasonable terms, if at all. In that event, we may be unable to further develop and commercialize one or more of our product candidates, which could harm our business significantly. We cannot provide any assurances that third party patents do not exist which might be enforced against our product candidates resulting in either an injunction prohibiting our sales, or, with respect to our sales, an obligation on our part to pay royalties or other forms of compensation to third parties.

***We may become involved in lawsuits to protect or enforce our owned or licensed intellectual property rights against others, which could be expensive, time consuming and unsuccessful.***

Competitors may infringe or otherwise violate our patents, the patents of our licensors, or our other intellectual property rights. To counter infringement or unauthorized use, we may be required to file legal claims, which can be expensive and time-consuming. In addition, in an infringement proceeding, a court may decide that a patent of ours or our licensor is not valid or is unenforceable, or may refuse to stop the other party from using the technology at issue on the grounds that our patents do not cover the technology in question. An adverse result in any litigation or defense proceedings could put one or more of our patents at risk of being invalidated or interpreted narrowly and could put our patent applications at risk of not issuing. The initiation of a claim against a third party may also cause the third party to bring counter-claims against us such as claims asserting that our patents are invalid or unenforceable. In patent litigation in the United States, defendant counterclaims alleging invalidity or unenforceability are commonplace. Grounds for a validity challenge may be an alleged failure to meet any of several statutory requirements, including lack of novelty, obviousness, non-enablement, written description, or lack of patentable subject matter. Grounds for an unenforceability assertion could be an allegation that someone connected with prosecution of the

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patent withheld relevant material information from the USPTO, or made a materially misleading statement, during prosecution. Third parties may also raise similar validity claims before the USPTO in post-grant proceedings such as reexaminations, *inter partes* review or post-grant review, or oppositions or similar proceedings outside the United States, in parallel with litigation or even outside the context of litigation. The outcome following legal assertions of invalidity and unenforceability is unpredictable. We cannot be certain that there is no invalidating prior art, of which we and the patent examiner were unaware during prosecution. For the patents and patent applications that we have licensed, we may have limited or no right to participate in the defense of any licensed patents against challenge by a third party. If a defendant were to prevail on a legal assertion of invalidity or unenforceability, we would lose at least part, and perhaps all, of any future patent protection on our current or future product candidates. Such a loss of patent protection could harm our business.

We may not be able to prevent, alone or with our licensors, misappropriation of our intellectual property rights, particularly in countries where the laws may not protect those rights as fully as in the United States. Any litigation or other proceedings to enforce our intellectual property rights may fail, and even if successful, may result in substantial costs and distract our management and other employees.

Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation. There could also be public announcements of the results of hearings, motions or other interim proceedings or developments. If securities analysts or investors perceive these results to be negative, it could have an adverse effect on the price of our common shares.

***Changes in United States patent law or the patent law of other countries or jurisdictions could diminish the value of patents in general, thereby impairing our ability to protect our products.***

Changes in either the patent laws or the interpretation of patent laws could increase the uncertainties and costs surrounding the prosecution of patent applications and/or the enforcement or defense of our issued patents. The United States has enacted and implemented wide-ranging patent reform legislation. For example, the United States Supreme Court has ruled on several patent cases in recent years, either narrowing the scope of patent protection available in certain circumstances or weakening the rights of patent owners in certain situations. In addition to increasing uncertainty with regard to our ability to obtain patents in the future, this combination of events has created uncertainty with respect to the value of patents, once obtained. Depending on actions by the United States Congress, the federal courts and the USPTO, the laws and regulations governing patents could change in unpredictable ways that would weaken our ability to obtain new patents or to enforce patents that we have licensed or that we might obtain in the future.

Similarly, changes in patent law and regulations in other countries or jurisdictions or changes in the governmental bodies that enforce them or changes in how the relevant governmental authority enforces patent laws or regulations may weaken our ability to obtain new patents or to enforce patents that we have licensed or that we may obtain in the future. For example, the complexity and uncertainty of European patent laws have also increased in recent years. In Europe, a new unitary patent system took effect June 1, 2023, which will significantly impact European patents, including those granted before the introduction of such a system. Under the unitary patent system, European applications have the option, upon grant of a patent, of becoming a Unitary Patent which will be subject to the jurisdiction of the Unitary Patent Court, or the UPC. As the UPC is a new court system, there is no precedent for the court, increasing the uncertainty of any litigation. Patents granted before the implementation of the UPC have the option of opting out of the jurisdiction of the UPC over the first seven years of the court's existence and remaining as national patents in the UPC countries. Patents that remain under the

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jurisdiction of the UPC will be potentially vulnerable to a single UPC-based revocation challenge that, if successful, could invalidate the patent in all countries who are signatories to the UPC. We cannot predict with certainty the long-term effects of any potential changes.

***Any trademarks we may obtain may be infringed or successfully challenged, resulting in harm to our business.***

We expect to rely on trademarks as one means to distinguish product candidates that are approved for marketing from the products of our competitors. We have not yet selected trademarks for our products candidates and have not yet begun the process of applying to register trademarks for our current or future product candidates. Once we select trademarks and apply to register them, our trademark applications may not be approved. Third parties may oppose our trademark applications or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced to rebrand our products, which could result in loss of brand recognition and could require us to devote resources to advertising and marketing new brands. Our competitors may infringe our trademarks, and we may not have adequate resources to enforce our trademarks. If we are unable to establish brand recognition based on our trademarks and trade names, we might not be able to compete effectively in the marketplace and our business may be harmed.

In addition, any proprietary name we propose to use with our current or future product candidates in the United States must be approved by the FDA, regardless of whether we have registered it, or applied to register it, as a trademark. The FDA typically conducts a review of proposed product names, including an evaluation of the potential for confusion with other product names. If the FDA objects to any of our proposed proprietary product names, we may be required to expend significant additional resources in an effort to identify a suitable proprietary product name that would qualify under applicable trademark laws, not infringe the existing rights of third parties and be acceptable to the FDA.

***If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed.***

In addition to seeking patents for our technology and product candidates, we also rely on know-how and trade secret protection, as well as confidentiality agreements, non-disclosure agreements and invention assignment agreements with our employees, consultants and third parties, to protect our confidential and proprietary information, especially where we do not believe patent protection is appropriate or obtainable.

It is our policy to require our employees, corporate collaborators, outside scientific collaborators, CROs, contract manufacturers, consultants, advisors, and other third parties to execute confidentiality agreements upon the commencement of employment or consulting relationships with us. These agreements provide that all confidential information concerning our business or financial affairs developed by or made known to the individual or entity during the course of the party's relationship with us is to be kept confidential and not disclosed to third parties, except in certain specified circumstances. However, we cannot guarantee that we have entered into such agreements with each party that may have or have had access to our trade secrets or proprietary technology and processes. Any of these parties may breach the agreements and disclose our proprietary information, including our trade secrets, and we may not be able to obtain adequate remedies for such breaches. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive, and time-consuming, and the outcome is unpredictable.

In addition to contractual measures, we try to protect the confidential nature of our proprietary information through other appropriate precautions, such as physical and technological security measures. However, trade secrets and know-how can be difficult to protect. These measures may not,

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for example, in the case of misappropriation of a trade secret by an employee or third party with authorized access, provide adequate protection for our proprietary information. Our security measures may not prevent an employee or consultant from misappropriating our trade secrets and providing them to a competitor, and any recourse we might take against this type of misconduct may not provide an adequate remedy to protect our interests fully. In addition, trade secrets may be independently developed by others in a manner that could prevent us from receiving legal recourse. If any of our confidential or proprietary information, such as our trade secrets, were to be disclosed or misappropriated, or if any of that information was independently developed by a competitor, our competitive position could be harmed.

Furthermore, the laws of some foreign countries do not protect proprietary rights to the same extent or in the same manner as the laws within the United States. We may need to share our trade secrets and proprietary know-how with current or future partners, collaborators, contractors and others located in countries at heightened risk of theft of trade secrets, including through direct intrusion by private parties or foreign actors, and those affiliated with or controlled by state actors. As a result, we may encounter significant problems in protecting and defending our intellectual property both in the United States and abroad. In addition, some courts inside and outside the United States are sometimes less willing or unwilling to protect trade secrets. If we choose to go to court to stop a third party from using any of our trade secrets, we may incur substantial costs. Even if we are successful, these types of lawsuits may consume our time and other resources. Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations and prospects.

***We may be subject to claims that our employees, consultants or independent contractors have wrongfully used or disclosed confidential information of their former employers or other third parties.***

We employ individuals who were previously employed at other biotechnology or pharmaceutical companies. Although we seek to protect our ownership of intellectual property rights by ensuring that our agreements with our employees, collaborators and other third parties with whom we do business include provisions requiring such parties to assign rights in inventions to us, we may be subject to claims that we or our employees, consultants or independent contractors have inadvertently or otherwise used or disclosed confidential information of our employees' former employers or other third parties. We may also be subject to claims that former employers or other third parties have an ownership interest in our patents. Litigation may be necessary to defend against these claims. There is no guarantee of success in defending these claims, and if we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights, such as exclusive ownership of, or right to use, valuable intellectual property. Even if we are successful, litigation could result in substantial cost and be a distraction to our management and other employees.

**Risks related to government regulation** 

***Gene editing and modification, which are novel and distinct subsets of gene therapy, and the regulatory landscape that will govern any product candidates we may develop is uncertain and may change. As a result, we cannot predict the time and cost of obtaining regulatory approval, if we receive it at all, for any product candidates we may develop.***

The regulatory requirements that will govern any novel gene editing or epigenetic modification product candidates we develop are not entirely clear and may change. Within the broader genetic medicines field, we are aware of a limited number of gene therapy products that have received marketing authorization from the FDA. Even with respect to more established products that fit into the categories of gene therapies or cell therapies, the regulatory landscape is still developing. Regulatory requirements governing gene editing products and cell therapy products have changed frequently and

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will likely continue to change in the future. Moreover, there is substantial, and sometimes uncoordinated, overlap in those responsible for regulation of existing gene editing products and cell therapy products. For example, in the United States, the FDA has established the Office of Therapeutic Products, or OTP, within its Center for Biologics Evaluation and Research, or CBER, to consolidate the review of gene editing and related products, and the Cellular, Tissue and Gene Therapies Advisory Committee to advise CBER on its review. Gene editing clinical trials may also be subject to review and oversight by an Institutional Biosafety Committee, or IBC, a local institutional committee that reviews and oversees basic and clinical research conducted at the institution participating in the clinical trial. Although the FDA decides whether individual gene editing protocols may proceed, the review process and determinations of other reviewing bodies can impede or delay the initiation of a clinical trial, even if the FDA has reviewed the trial and approved its initiation.

Adverse developments in post-marketing experience or in clinical trials conducted by others of gene editing products, cell therapy products, or products developed through the application of a base editing or other gene editing technology may cause the FDA and other regulatory bodies to revise the requirements for development or approval of any product candidates we may develop or limit the use of products utilizing gene editing technologies, either of which could materially harm our business. In addition, the clinical trial requirements of the FDA and other regulatory authorities and the criteria these regulators use to determine the safety and efficacy of a product candidate vary substantially according to the type, complexity, novelty, and intended use and market of the potential products. The regulatory approval process for novel product candidates such as the product candidates we may develop can be more expensive and take longer than for other, better known, or more extensively studied pharmaceutical or other product candidates. Regulatory agencies administering existing or future regulations or legislation may not allow production and marketing of products utilizing gene editing technology in a timely manner or under technically or commercially feasible conditions. In addition, regulatory action or private litigation could result in expenses, delays, or other impediments to our research programs or the commercialization of resulting products.

The regulatory review committees and advisory groups described above and the new guidelines they promulgate may lengthen the regulatory review process, require us to perform additional studies or trials, increase our development costs, lead to changes in regulatory positions and interpretations, delay or prevent approval and commercialization of these treatment candidates, or lead to significant post-approval limitations or restrictions. As we advance our research programs and develop product candidates, we will be required to consult with these regulatory and advisory groups and to comply with applicable guidelines. If we fail to do so, we may be required to delay or discontinue development of any product candidates we identify and develop.

***The regulatory approval processes of the FDA and comparable foreign authorities are lengthy, time consuming and inherently unpredictable, and if we are ultimately unable to obtain regulatory approval for our product candidates, our business will be substantially harmed.***

The clinical development, manufacturing, labeling, storage, record-keeping, advertising, promotion, import, export, marketing and distribution of our product candidates are subject to extensive regulation by the FDA in the United States and by comparable foreign regulatory authorities in foreign markets. In the United States, we are not permitted to market our product candidates until we receive regulatory approval of a BLA from the FDA. The process of obtaining such regulatory approval is expensive, often takes many years following the commencement of clinical trials and can vary substantially based upon the type, complexity and novelty of the product candidates involved, as well as the target indications and patient population. Approval policies or regulations may change, and the FDA and comparable regulatory have substantial discretion in the approval process, including the ability to delay, limit or deny approval of a product candidate for many reasons. Despite the time and expense invested in clinical development of product candidates, regulatory approval of a product

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candidate is never guaranteed. Of the large number of biologics in development, only a small percentage successfully complete the FDA or foreign regulatory approval processes and are commercialized.

Prior to obtaining approval to commercialize a biological product candidate in the United States or abroad, we must demonstrate with evidence from adequate and well-controlled clinical trials, and to the satisfaction of the FDA or comparable foreign regulatory authorities, that such product candidates are safe, pure and potent for their intended uses. This process also requires that we demonstrate substantial evidence of effectiveness of such product candidates for their intended uses. Results from preclinical studies and clinical trials can be interpreted in different ways. Even if we believe available preclinical or clinical data support the safety, purity, potency or effectiveness of our product candidates, such data may not be sufficient to obtain approval from the FDA and comparable foreign regulatory authorities. The FDA or comparable foreign regulatory authorities, as the case may be, may also require us to conduct additional preclinical studies or clinical trials for our product candidates either prior to or post-approval, or may object to elements of our clinical development program.

The FDA or comparable foreign regulatory authorities can delay, limit or deny approval of a product candidate for many reasons, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such authorities may disagree with the design or execution of our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative or ambiguous results from our clinical trials or results may not meet the level of statistical significance or
persuasiveness required by the FDA or comparable foreign regulatory agencies for approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• serious and unexpected treatment-related side effects may be experienced by participants in our clinical trials or by
individuals using therapies similar to our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the population studied in the clinical trial may not be sufficiently broad or representative to assure safety and efficacy
in the full population for which we seek approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such authorities may not accept clinical data from trials that are conducted at clinical facilities or in countries where
the standard of care is potentially different from that of their own country;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to demonstrate that a product candidate's clinical and other benefits outweigh its safety risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such authorities may disagree with our interpretation of data from preclinical studies or clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such authorities may not agree that the data collected from clinical trials of our product candidates are acceptable or
sufficient to support the submission or filing of a BLA in the United States or other submission or to obtain regulatory approval elsewhere, and such authorities may require additional preclinical studies or clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such authorities may disagree with us regarding the formulation, labeling and/or the product specifications of our product
candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such authorities may disagree with us that our potency assays for our product candidates are adequate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approval may be granted only for indications that are significantly more limited than those sought by us, and/or may
include significant restrictions on distribution and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such authorities may find deficiencies in the manufacturing processes or facilities of the third-party manufacturers with
which we contract for clinical and commercial supplies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such authorities may not accept a submission due to, among other reasons, the content or formatting of the submission; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the approval regulations or policies of the FDA or comparable foreign regulatory authorities may significantly change in a
manner rendering our clinical data insufficient for approval.

With respect to foreign markets, approval procedures vary among countries and, in addition to the foregoing risks, may involve additional product testing, administrative review periods and agreements with pricing authorities.

Even if we eventually complete clinical trials and receive approval of a BLA or comparable foreign marketing application for our product candidates, the FDA or comparable foreign regulatory authority may grant approval contingent on the performance of costly additional clinical trials and/or the implementation of a REMS, which may be required because the FDA believes it is necessary to ensure that the benefits outweigh the risks of the product after approval. Any delay in obtaining, or inability to obtain, applicable regulatory approval would delay or prevent commercialization of that product candidate and could have a material adverse impact on our business and prospects.

***Disruptions at the FDA and other government agencies caused by, among other factors, funding shortages or global health concerns could hinder their ability to hire, retain or deploy key leadership and other personnel, prevent new or modified products from being developed, reviewed, approved or commercialized in a timely manner or at all, or otherwise prevent those agencies from performing normal business functions on which the operation of our business may rely, which could negatively impact our business.***

The ability of the FDA and foreign regulatory authorities to review and approve new products can be affected by a variety of factors, including government budget and funding levels, government shutdowns, statutory, regulatory, and policy changes, the FDA's or foreign regulatory authorities' ability to hire and retain key personnel and accept the payment of user fees, and other events that may otherwise affect the FDA's or foreign regulatory authorities' ability to perform routine functions. In addition, government funding of other government agencies that fund research and development activities is subject to the political process, which is inherently fluid and unpredictable. Disruptions at the FDA and other agencies may also slow the time necessary for new biologics or modifications to approved biologics to be reviewed and/or approved by necessary government agencies, which would adversely affect our business. For example, over the last several years, the U.S. government has shut down several times, most recently in late 2025, and certain regulatory agencies, such as the FDA, have had to furlough critical FDA employees and stop critical activities. In addition, the current U.S. Presidential administration has issued certain policies and Executive Orders directed towards reducing the employee headcount and costs associated with U.S. administrative agencies, including the FDA, and it remains unclear the degree to which these efforts may limit or otherwise adversely affect the FDA's ability to conduct routine activities. Recent and future changes in FDA staffing, including leadership, could result in delays in the FDA's responsiveness or in its ability to review submissions or applications, issue regulations or guidance, or implement or enforce regulatory requirements in a timely fashion or at all.

If a prolonged government shutdown occurs, or if funding shortages, staffing limitations or similar factors hinder or prevent the FDA or other regulatory authorities from conducting their regular inspections, reviews, or other regulatory activities, such events could significantly impact the ability of the FDA or other such regulatory authorities to timely review and process our regulatory submissions, which could have a material adverse effect on our business.

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***We may in the future conduct clinical trials for current or future product candidates outside the United States, and the FDA and comparable foreign regulatory authorities may not accept data from such trials.***

We may in the future conduct clinical trials for current or future product candidates outside the United States, and the FDA and comparable foreign regulatory authorities may not accept data from such trials. The acceptance of data from clinical trials conducted outside the United States by the FDA or other comparable foreign regulatory authorities may be subject to certain conditions or may not be accepted at all. In cases where data from foreign clinical trials are intended to serve as the sole basis for regulatory approval in the United States, the FDA will generally not approve the application unless (i) the data are applicable to the U.S. population and U.S. medical practice and (ii) the trials were performed by clinical investigators of recognized competence and pursuant to GCP regulations, and the data may be considered valid without the need for an on-site inspection by the FDA or, if the FDA considers such an inspection to be necessary, the FDA is able to validate the data through an on-site inspection or other appropriate means. In addition, even where the foreign study data are not intended to serve as the sole basis for approval, the FDA will not accept the data as support for an application for marketing approval unless the study is well-designed and well-conducted in accordance with GCPs and the FDA is able to validate the data from the study through an onsite inspection if deemed necessary. Additionally, the FDA's clinical trial requirements, including sufficient size of patient populations and statistical powering, must be met. Many foreign regulatory authorities have similar approval requirements. In addition, such foreign trials are subject to the applicable local laws of the foreign jurisdictions where the trials are conducted. Conducting clinical trials outside the United States also exposes us to additional risks, including risks associated with foreign exchange fluctuations, compliance with foreign manufacturing, customs, shipment and storage requirements, and cultural differences in medical practice and clinical research, and diminished protection of intellectual property in some countries.

There can be no assurance that the FDA or any comparable foreign regulatory authority will accept data from trials conducted outside of the United States or the applicable jurisdiction. For example, for FDA acceptance, we will have to demonstrate that the foreign data are applicable to the U.S. population and U.S. medical practice. If the FDA or other comparable foreign regulatory authorities do not accept such data, it would result in the need for additional trials, which could be costly and time-consuming, and which may result in current or future product candidates that we may develop being delayed or not receiving approval for commercialization in the applicable jurisdiction.

***We may seek orphan drug designation for one or more of our product candidates. We may not be able to obtain orphan drug designation or orphan drug exclusivity for our product candidates and, even if we do, that exclusivity may not prevent the FDA or other comparable foreign regulatory authorities from approving other competing products.***

Regulatory authorities in some jurisdictions may designate drugs for relatively small patient populations as orphan drugs. In the United States, orphan drug designation entitles a party to financial incentives such as tax advantages and user fee waivers or exemptions. In addition, if a product receives the first FDA approval for the condition for which it has orphan designation, the product is entitled to orphan drug exclusivity, which means the FDA may not approve any other application to market the same drug for the same condition for a period of seven years, except in limited circumstances, such as a showing of clinical superiority over the product with orphan exclusivity or where the manufacturer is unable to assure sufficient product quantity.

We may pursue orphan drug designation for one or more of our product candidates. However, obtaining an orphan drug designation can be difficult, and we may not be successful in doing so. Even if we obtain orphan drug designation, we may not be able to maintain such designation. Orphan drug

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designation neither shortens the development time or regulatory review time of a product candidate nor gives the product candidate any advantage in the regulatory review or approval process. Even if we obtain orphan drug designation for our product candidates in specific conditions, we may not be the first to obtain regulatory approval of these product candidates for the orphan-designated condition and therefore we may not be eligible for orphan drug exclusivity in the U.S. In addition, exclusive marketing rights in the United States may not be awarded if we seek approval for an indication broader than the orphan-designated condition or, if awarded, may be lost if the FDA later determines that the request for designation was materially defective or if the manufacturer is unable to assure sufficient quantities of the product to meet the needs of patients with the rare disease or condition. Furthermore, even if we obtain orphan drug exclusivity for a product, that exclusivity may not effectively protect the product from competition because different drugs can be approved for the same condition. Even after an orphan product is approved, the FDA can subsequently approve the same drug for the same condition if the FDA concludes that the later drug is safer, more effective or makes a major contribution to patient care. Our inability to obtain orphan drug designation for any product candidates and/or our inability to maintain that designation for the duration of the applicable exclusivity period, could reduce our ability to make sufficient sales of the applicable product candidate to balance our expenses incurred to develop it.

***A Breakthrough Therapy, Fast Track, or Regenerative Medicine Advanced Therapy, or RMAT, Designation by the FDA, even if granted for any of our product candidates, may not lead to a faster development or regulatory review or approval process, and does not increase the likelihood that our product candidates will receive regulatory approval.***

We may seek breakthrough therapy, fast track, or RMAT designation for some or all of our product candidates. A breakthrough therapy is defined as a drug or biologic that is intended, alone or in combination with one or more other drugs or biologics, to treat a serious or life-threatening disease or condition, and preliminary clinical evidence indicates that the drug, or biologic in our case, may demonstrate substantial improvement over existing therapies with respect to one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development. Fast track designation is granted for products that are intended to treat a serious or life-threatening disease or condition and demonstrate the potential to address unmet medical needs for the disease or condition. A product candidate can receive RMAT designation if (1) the product candidate is an regenerative medicine therapy; (2) the product candidate is intended to treat, modify, reverse, or cure a serious or life-threatening disease or condition; and (3) preliminary clinical evidence indicates that the product candidate has the potential to address unmet medical needs for such a disease or condition.

Breakthrough therapy, fast track, or RMAT designation is within the discretion of the FDA. Accordingly, even if we believe, after completing early clinical trials, that one of our product candidates meets the criteria for designation, the FDA may disagree and instead determine not to make such designation. Even if we receive such designation for other product candidates or indications in the future, we may not experience a faster development process, review or approval compared to drugs or biologics considered for approval under conventional FDA procedures and such a designation does not assure ultimate approval by the FDA. Even if one or more of our product candidates qualify for breakthrough therapy fast track, or RMAT designation, the FDA may later decide that such product candidates no longer meet the conditions for qualification.

***Obtaining and maintaining regulatory approval of our product candidates in one jurisdiction does not mean that we will be successful in obtaining regulatory approval of our product candidates in other jurisdictions.***

Obtaining and maintaining regulatory approval of our product candidates in one jurisdiction does not guarantee that we will be able to obtain or maintain regulatory approval in any other jurisdiction.

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For example, even if the FDA or a comparable foreign regulatory authority grants regulatory approval of a product candidate, comparable regulatory authorities in foreign jurisdictions must also approve the manufacturing, marketing and promotion of the product candidate in those countries. However, a failure or delay in obtaining regulatory approval in one jurisdiction may have a negative effect on the regulatory approval process in others. Approval procedures vary among jurisdictions and can involve requirements and administrative review periods different from those in the United States, including additional preclinical studies or clinical trials as clinical trials conducted in one jurisdiction may not be accepted by regulatory authorities in other jurisdictions. In many jurisdictions outside the United States, a product candidate must be approved for reimbursement before it can be approved for sale in that jurisdiction. In some cases, the price that we intend to charge for our products is also subject to approval. Obtaining foreign regulatory approvals and compliance with foreign regulatory requirements could result in significant delays, difficulties and costs for us and could delay or prevent the introduction of our products in certain countries. If we or any partner we work with fail to comply with the regulatory requirements in international markets or fail to receive applicable regulatory approvals, our target market will be reduced and our ability to realize the full market potential of our product candidates will be harmed.

***Even if we receive regulatory approval for any product candidates, we will be subject to ongoing regulatory obligations and continued regulatory review, which may result in significant additional expense.***

Any regulatory approvals that we obtain for any of our product candidates may also be subject to limitations on the approved uses for which a product may be marketed or to the conditions of approval, or contain requirements for potentially costly post-marketing testing and surveillance to monitor the safety and efficacy of the product candidate. In addition, if the FDA or a comparable foreign regulatory authority approves any of our product candidates, the manufacturing processes, labeling, packaging, distribution, post-approval monitoring and adverse event reporting, storage, import, export, advertising, promotion and recordkeeping for the product will be subject to extensive and ongoing regulatory requirements. The FDA has significant post-market authority, including the authority to require labeling changes based on new safety information and to require post-market studies or clinical trials to evaluate safety risks related to the use of a product or to require withdrawal of the product from the market. The FDA also has the authority to require a REMS after approval, which may impose further requirements or restrictions on the distribution or use of an approved drug.

The manufacturing facilities we use to make a product, if any, will also be subject to periodic review and inspection by the FDA and other regulatory agencies, including for continued compliance with cGMP requirements. Any product promotion and advertising will also be subject to regulatory requirements and continuing regulatory review.

Subsequent discovery of previously unknown problems with a product, including adverse events of unanticipated severity or frequency, or with our CDMOs or manufacturing processes, or our failure to comply with regulatory requirements, may result in, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• holds on clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on the marketing or manufacturing of the product, withdrawal of the product from the market or voluntary or
mandatory product recalls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on product distribution or use, or requirements to conduct post-marketing studies or clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• warning or untitled letters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• refusal by the FDA to approve pending applications or supplements to approved applications;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• suspension or revocation of product approvals or licenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product seizure or detention or refusal to permit the import or export of products; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• injunctions, fines or the imposition of civil or criminal penalties.

The occurrence of any event or penalty described above may inhibit our ability to commercialize our product candidates and generate revenue and could require us to expend significant time and resources in response and could generate negative publicity. The FDA policies may change, and additional government regulations may be enacted that could prevent, limit or delay regulatory approval of any of our product candidates. If we are slow or unable to adapt to changes in existing requirements or the adoption of new requirements or policies, or if we are not able to maintain regulatory compliance, we may be subject to enforcement action and we may not achieve or sustain profitability, which would adversely affect our business.

We also cannot predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative or executive action, either in the United States or abroad. If any legislation, executive orders, personnel changes, or lapses in agency funding impose constraints on the FDA's ability to engage in oversight and implementation activities in the normal course, our business may be negatively impacted.

***Our operations and relationships with healthcare providers, healthcare organizations, customers and third-party payors will be subject to applicable anti-bribery, anti-kickback, fraud and abuse, transparency and other healthcare laws and regulations, which could expose us to, among other things, enforcement actions, criminal sanctions, civil penalties, contractual damages, reputational harm, administrative burdens and diminished profits and future earnings.***

Our current and future arrangements with healthcare providers, healthcare organizations, third-party payors and customers expose us to broadly applicable anti-bribery, fraud and abuse and other healthcare laws and regulations that may constrain the business or financial arrangements and relationships through which we research as well as market, sell and distribute any of our product candidates. Restrictions under applicable federal and state anti-bribery and healthcare laws and regulations, include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the federal Anti-Kickback Statute, which prohibits, among other things, individuals and entities from knowingly and
willfully soliciting, offering, receiving or providing remuneration, directly or indirectly, in cash or in kind, to induce or reward, or in return for, either the referral of an individual for, or the purchase, order or recommendation of, any good
or service, for which payment may be made under a federal and state healthcare program such as Medicare and Medicaid. A person or entity does not need to have actual knowledge of the statute or specific intent to violate it in order to have
committed a violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the federal criminal and civil false claims and civil monetary penalties laws, including the federal False Claims Act,
which can be enforced through civil whistleblower or qui tam actions against individuals or entities, prohibits, among other things, knowingly presenting, or causing to be presented, to the federal government, claims for payment that are false or
fraudulent, knowingly making, using or causing to be made or used, a false record or statement material to a false or fraudulent claim, or from knowingly making a false statement to avoid, decrease or conceal an obligation to pay money to the
federal government. In addition, certain marketing practices, including off-label promotion, may also violate false claims laws. Moreover, the government may assert that a claim including items and services
resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the federal False Claims Act;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HIPAA, which prohibits, among other things, knowingly and willfully executing, or attempting to execute a scheme to defraud
any healthcare benefit program, or knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false statement in connection with the delivery of or payment for healthcare benefits, items or services;
similar to the federal Anti-Kickback Statute, a person or entity does not need to have actual knowledge of the statute or specific intent to violate it in order to have committed a violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Physician Payments Sunshine Act, which requires certain manufacturers of covered drugs, devices, biologics and medical
supplies that are reimbursable under Medicare, Medicaid, or the Children's Health Insurance Program, with certain exceptions, to report annually to CMS information related to certain payments and other transfers of value to physicians (defined
to include doctors, dentists, optometrists, podiatrists and chiropractors), certain other healthcare professionals (such as physician assistants and nurse practitioners), and teaching hospitals, as well as ownership and investment interests held by
the physicians described above and their immediate family members, with the information made publicly available on a searchable website;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• analogous state and foreign laws and regulations, such as state anti-kickback and false claims laws, that may apply to
sales or marketing arrangements and claims involving healthcare items or services reimbursed by non-governmental third-party payors, including private insurers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain state laws that require pharmaceutical companies to comply with the pharmaceutical industry's voluntary
compliance guidelines and the relevant compliance guidance promulgated by the federal government in addition to requiring drug manufacturers to report information related to payments to physicians and other healthcare providers or marketing
expenditures and drug pricing information, and state and local laws that require the registration of pharmaceutical sales representatives.

Efforts to ensure that our current and future business arrangements with third parties comply with applicable healthcare laws and regulations could involve substantial costs. It is possible that governmental authorities will conclude that our business practices, including certain advisory agreements we have entered into with physicians who are paid, in part, in the form of stock or stock options, do not comply with current or future statutes, regulations, agency guidance or case law involving applicable fraud and abuse or other healthcare laws and regulations. If our operations are found to be in violation of any such requirements, we may be subject to significant penalties, including civil, criminal and administrative penalties, damages, fines, disgorgement, imprisonment, the curtailment or restructuring of our operations, loss of eligibility to obtain approvals from the FDA, exclusion from participation in government contracting, healthcare reimbursement or other government programs, including Medicare and Medicaid, integrity oversight and reporting obligations, or reputational harm, any of which could adversely affect our financial results. Any action against us for an alleged or suspected violation could cause us to incur significant legal expenses and could divert our management's attention from the operation of our business, even if our defense is successful. In addition, achieving and sustaining compliance with applicable laws and regulations may be costly to us in terms of money, time and resources.

***Our product candidates for which we intend to seek approval may face competition from biosimilars approved through an abbreviated regulatory pathway.***

The Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010, or collectively, the ACA, includes a subtitle called the Biologics Price Competition and Innovation Act of 2009, or BPCIA. The BPCIA created an abbreviated pathway for the approval of biosimilar and interchangeable biological products. The abbreviated regulatory pathway establishes legal authority for the FDA to review and approve biosimilar biologics, including the

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possible designation of a biosimilar as interchangeable based on its similarity to an existing reference product. Under the BPCIA, an application for a biosimilar product cannot be approved by the FDA until 12 years after the reference product is approved under a BLA.

We believe that if any of our product candidates is approved as a biological product under a BLA, it should qualify for the 12-year period of exclusivity. However, there is a risk that the FDA will not consider any of our product candidates to be reference products for competing products, potentially creating the opportunity for biosimilar competition sooner than anticipated. Additionally, this period of regulatory exclusivity does not apply to companies pursuing regulatory approval via their own traditional BLA, rather than via the abbreviated pathway. Moreover, an interchangeable biosimilar, once approved, may be substituted under existing law for any one of our products determined to be reference products in a way that is similar to traditional generic substitution; any non-interchangeable biosimilar products may also be substituted by a healthcare provider but, under existing law, will not be automatically substituted at the pharmacy. The extent of the impact of such substitution will depend on a number of marketplace and regulatory factors that are still developing.

***We may face difficulties from healthcare legislative and regulatory reform measures.***

Existing laws and regulatory policies may change and additional government regulations may be enacted that could prevent, limit or delay regulatory approval of any of our product candidates. We cannot predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative action, either in the United States or abroad. If we are slow or unable to adapt to changes in existing requirements or the adoption of new requirements or policies, or if we are not able to maintain regulatory compliance, we may lose any regulatory approval that we may have obtained, or may face penalties for any approved products, and we may not achieve or sustain profitability.

In the United States, there have been and continue to be a number of legislative initiatives to contain healthcare costs. Among other things, the ACA, enacted in 2010, increased manufacturers' rebate liability under the Medicaid Drug Rebate Program and imposed a significant annual fee on companies that manufacture or import branded prescription drug products.

Recently there has been heightened governmental scrutiny over the manner in which manufacturers set prices for their marketed products, which has resulted in several presidential executive orders, Congressional inquiries and proposed and enacted federal and state legislation designed to, among other things, bring more transparency to product pricing, reduce the costs of drugs under Medicare, and reform government program reimbursement methodologies for drug products.

These initiatives recently culminated in the enactment of the Inflation Reduction Act, or IRA, in August 2022, which, among other things, requires the Secretary of the Department of Health and Human Services, or HHS, to negotiate the selling price of certain drugs and biologics that CMS reimburses under Medicare Part B and Part D, although this only applies to high-expenditure single-source biologics that have been approved for at least 11 years (7 years for drugs). The negotiated prices will be capped at a statutory ceiling price representing a significant discount from average prices to wholesalers and direct purchasers. For 2026, the first year in which negotiated prices become effective, CMS selected 10 high-cost Medicare Part D products in 2023, negotiations began in 2024, and the negotiated maximum fair price for each product was announced. CMS has also selected and negotiated the maximum fair price for 15 additional Medicare Part D drugs, which will first be effective in 2027. For 2028, an additional 15 drugs, which may be covered under either Medicare Part B or Part D, will be selected, and for 2029 and subsequent years, 20 Part B or Part D drugs will be selected. Currently, a drug or biological product that has an orphan drug designation for only one rare disease or condition is excluded from the IRA's price negotiation requirements, as long as the drug is approved

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only for an indication within that disease or condition. However, as a result of a statutory amendment enacted in July 2025, beginning with the 2028 negotiated price applicability year, a drug may be designated for more than one rare disease or condition and still be excluded from price negotiation, as long as the only approved indications are for such rare diseases or conditions. The constitutionality of the IRA's drug price negotiation program provisions is currently subject to ongoing litigation. The outcome of this litigation cannot yet be fully determined.

The IRA also penalizes drug manufacturers that increase prices of Medicare Part B and Part D drugs at a rate greater than the rate of inflation. In addition, the law eliminates the "donut hole" under Medicare Part D beginning in 2025 by significantly lowering the beneficiary maximum out-of-pocket cost through a newly established manufacturer discount program. The IRA also extends enhanced subsidies for individuals purchasing health insurance coverage in ACA marketplaces through plan year 2025. The IRA permits the HHS to implement many of these provisions through guidance, as opposed to regulation, for the initial years. Manufacturers that fail to comply with the IRA may be subject to various penalties, including civil monetary penalties. While it is unclear how the IRA will be implemented, it will likely have a significant impact on the pharmaceutical industry.

More recently, the One Big Beautiful Bill Act, which was enacted in July 2025, imposes significant reductions in the funding of the Medicaid program. Such reductions are expected to decrease the number of persons enrolled in Medicaid and reduce the services covered by Medicaid, which could adversely affect our sales of any product candidate that we commercialize.

The current administration has indicated that it plans to pursue additional policies aimed at lowering prescription drug costs. For example, in May 2025, the administration published an executive order regarding most favored nation, or MFN, drug pricing, which is sometimes referred to as international reference pricing. This executive order directs the Secretary of HHS to communicate MFN price targets to pharmaceutical manufacturers, and if significant progress towards MFN pricing is not delivered, to propose a rule making plan to impose MFN pricing. HHS is currently developing a proposed rule to establish a demonstration model under the auspices of CMS's Center for Medicare and Medicaid Innovation that will require MFN pricing, but the proposed rule has not yet been published, so it is not yet known which drugs will be covered, how long the model will be in effect, or how pricing will be determined. If that rule or other MFN pricing rules are finalized, they are likely to mandate reduced prices of at least some drugs in the United States, if they are also sold in comparator countries. The scope, timing, and potential impact of current and future policy initiatives remain uncertain, and accordingly, we cannot predict how such legal and regulatory changes may affect our business, operations, or financial condition. However, if MFN drug pricing is implemented, the U.S. list price of our products that are also being commercialized outside of the United States could be substantially reduced, which could negatively impact our U.S. product sale revenues and the overall U.S. market opportunity. Even if we do not market products outside of the United States, we will be indirectly affected if our products competed with products that were reduced by MFN pricing.

At the state level, legislatures are increasingly passing legislation and implementing regulations designed to control pharmaceutical and biological product pricing, including restrictions or prohibitions on certain marketing practices, reporting of specified categories of remuneration provided to healthcare practitioners, and reporting and justification of price increases greater than a specified level. In some cases, states have designed programs to encourage importation from other countries and bulk purchasing. For example, on January 5, 2024, the FDA approved Florida's Section 804 Importation Program, or SIP, proposal to import certain drugs from Canada for specific state healthcare programs. On December 20, 2024, FDA granted an extension of Florida's SIP authorization for an additional period of 6 months, until July 6, 2025, and, on June 2, 2025, FDA granted an additional extension until November 6, 2025. It is unclear how and whether this program will be implemented, including which drugs will be chosen, and whether it will be subject to legal challenges in the United States or Canada.

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Other states have also submitted SIP proposals that are pending review by the FDA.. We expect that additional state and federal healthcare reform measures will be adopted in the future, any of which could limit the amounts that federal and state governments will pay for pharmaceuticals and other healthcare products and services, which could result in reduced demand for any product candidates or additional pricing pressures.

Other healthcare reform measures that 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. 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.

***We are subject to U.S. and certain foreign export and import controls, sanctions, embargoes, anti-corruption laws and anti-money laundering laws and regulations. Compliance with these legal standards could impair our ability to compete in domestic and international markets. We can face criminal liability and other serious consequences for violations, which can harm our business.***

We are subject to export control and import laws and regulations, including the U.S. Export Administration Regulations, U.S. Customs regulations, various economic and trade sanctions regulations administered by the U.S. Treasury Department's Office of Foreign Assets Controls, the U.S. Foreign Corrupt Practices Act of 1977, as amended, or FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, the USA PATRIOT Act, and other state and national anti-bribery and anti-money laundering laws in the countries in which we conduct activities. Export controls and trade sanctions laws and regulations may restrict or prohibit altogether the provision, sale, or supply of any product candidates to certain governments, persons, entities, countries and territories, including those that are the target of comprehensive sanctions or an embargo. Anti-corruption laws are interpreted broadly and prohibit companies and their employees, agents and contractors, from authorizing, promising, offering, or providing, directly or indirectly, improper payments or anything else of value to recipients in the public or private sector. We may engage third parties outside the United States to, among others, conduct clinical trials and obtain necessary permits, licenses, patent registrations and other regulatory approvals. We or our third parties may have direct or indirect interactions with officials and employees of government agencies or government-affiliated hospitals, universities and other organizations, such as state-owned entities. Although we currently only maintain operations in the United States, we have not historically had trainings, policies or manuals regarding these laws and regulations, and have not implemented processes to screen and review our actions or the actions of our employees, agents, contractors, or other partners to monitor compliance with such laws and regulations. We can be held liable for the corrupt or other illegal activities of our employees, agents, contractors, or other partners, even if we do not explicitly authorize or have actual knowledge of such activities. Any violations of the laws and regulations described above may result in substantial civil and criminal fines and penalties, imprisonment, the loss of export or import privileges, debarment, tax reassessments, breach of contract and fraud litigation, reputational harm and other consequences.

Detecting, investigating, and resolving actual or alleged violations of these laws and regulations can require a significant diversion of time, resources, and attention from management. In addition, noncompliance with such laws and regulations could subject us to whistleblower complaints, investigations, sanctions, settlements, prosecution, enforcement actions, fines, damages, other civil or criminal penalties, injunctions, suspension or debarment from contracting with certain persons, reputational harm, adverse media coverage, and other collateral consequences. If any subpoenas are received or investigations are launched, or governmental or other sanctions are imposed, or if we do not prevail in any possible civil or criminal proceeding, our business, operating results, and financial condition could be materially harmed. In addition, responding to any action will likely result in a materially significant diversion of management's attention and resources and significant defense costs and other professional fees.

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**Risks related to our common stock and this offering** 

***No public market for our common stock currently exists, and an active and liquid trading market for our common stock may never develop. As a result, you may not be able to resell your shares of common stock at or above the initial public offering price.***

Prior to this offering, no market for our common stock existed and an active trading market for our common stock may never develop or be sustained following this offering. The initial public offering price for our common stock was determined through negotiations with the underwriters and the negotiated price may not be indicative of the market price of our common stock after this offering. The market value of our common stock may decrease from the initial public offering price. As a result of these and other factors, you may be unable to resell your shares of our common stock at or above the initial public offering price. The lack of an active market may impair your ability to sell your shares of common stock at the time you wish to sell them or at a price that you consider reasonable. The lack of an active market may also reduce the fair market value of your shares of common stock. Furthermore, an inactive market may also impair our ability to raise capital by selling shares of our common stock and may impair our ability to enter into strategic collaborations or acquire companies or products by using our shares of common stock as consideration.

***Our quarterly and annual operating results may fluctuate significantly or may fall below the expectations of investors or securities analysts, each of which may cause our stock price to fluctuate or decline.***

We expect our operating results to be subject to quarterly fluctuations. Our net loss and other operating results will be affected by numerous factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• timing and results of our clinical trials, preclinical studies, or the addition or termination of future preclinical
studies and clinical trials or funding support by us, or existing or future collaborators or licensing partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• timing and variations in the level of expense related to the ongoing development of STX-1150, STX-1200, STX-1400, any other future product candidate or our CRISPR-based technologies, ELXR and XE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our execution of any additional collaboration, licensing or similar arrangements, and the timing of payments we may make or
receive under existing or future arrangements or the termination or modification of any such existing or future arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any intellectual property infringement lawsuit or opposition, interference or cancellation proceeding in which we may
become involved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions and departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strategic decisions by us or our competitors, such as acquisitions, divestitures, spin-offs, joint ventures, strategic
investments or changes in business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if any product candidates receives regulatory approval, the terms of such approval and market acceptance and demand for
such product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future accounting pronouncements or changes in our accounting policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory developments affecting any product candidates or those of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing and cost to establish a sales, marketing and distribution infrastructure to commercialize any products for which
we may obtain marketing approval and intend to commercialize on our own or jointly with current or future collaborators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to adequately support future growth;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential unforeseen business disruptions that increase our costs or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effects of macro events, such as inflation, geopolitical conflicts, pandemics, natural disasters, tariffs, trade tensions
and supply chain issues, on our business and operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in general market and economic conditions.

If our quarterly or annual operating results fall below the expectations of investors or securities analysts, the price of our common stock could decline substantially. Furthermore, any quarterly or annual fluctuations in our operating results may, in turn, cause the price of our common stock to fluctuate substantially. We believe that quarterly comparisons of our financial results are not necessarily meaningful and should not be relied upon as an indication of our future performance.

***The market price of our common stock is likely to be highly volatile, and you could lose all or part of your investment.***

The trading price of our common stock following this offering is likely to be highly volatile and subject to wide fluctuations in response to various factors, some of which we cannot control. As a result of this volatility, investors may not be able to sell their common stock at or above the initial public offering price. The market price for our common stock may be influenced by many factors, including the other risks described in this "Risk Factors" section and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• results of preclinical studies and future clinical trials of any product candidates, or those of our competitors or our
existing or future collaborators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory or legal developments in the United States or other countries, especially changes in federal or global health
policies, laws or regulations applicable to any product candidates, including the review and oversight functions of federal health regulatory bodies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the success or failure of competitive products or technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• introductions and announcements of new product candidates by us, any future commercialization partners, or our competitors,
and the timing of these introductions or announcements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions taken by regulatory agencies with respect to any product candidates, clinical studies, and, if approved,
manufacturing process or sales and marketing terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated variations in our financial results or those of companies that are perceived to be similar to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the success of our efforts to identify, acquire or in-license additional
technologies or product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developments concerning any future collaborations, including but not limited to those with development and
commercialization partners if any product candidates are approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions in the pharmaceutical and biotechnology sectors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or our competitors of significant acquisitions, strategic collaborations, joint ventures or capital
commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developments or disputes concerning patents or other proprietary rights, including patents, litigation matters and our
ability to obtain patent protection for any product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability or inability to raise additional capital and the terms on which we are able to raise it, if at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to effectively manage our growth;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recruitment or departure of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the structure of healthcare payment systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated changes in earnings estimates, development timelines or changes in stock market analyst
recommendations regarding our common stock, other comparable companies or our industry generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure or the failure of our competitors to meet analysts' projections or guidance that we or our competitors
may give to the market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in the valuation of companies perceived by investors to be comparable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcement and expectation of additional financing efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculation in the press or investment community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations of trading volume of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of our common stock by us, insiders or our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the concentrated ownership of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expiration of market stand-off or lock-up agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions instituted by activist shareholders or others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• terrorist acts, acts of war or periods of widespread civil unrest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• natural disasters and other calamities, including global pandemics; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic, industry and market conditions, including changes in tariffs and trade restrictions, fluctuating interest
rates and inflation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other events or factors, many of which are beyond our control.

In addition, the stock market in general, and the markets for pharmaceutical, biopharmaceutical and biotechnology stocks in particular, have experienced extreme price and volume fluctuations that have been often unrelated or disproportionate to the operating performance of the issuer. Furthermore, the trading price of our common stock may be adversely affected by third parties trying to drive down the market price. Short sellers and others, some of whom post anonymously on social media, may be positioned to profit if our stock declines and their activities can negatively affect our stock price. These broad market and industry factors may seriously harm the market price of our common stock, regardless of our actual operating performance. The realization of any of the above risks or any of a broad range of other risks, including those described in this "Risk Factors" section, could have a dramatic and adverse impact on the market price of our common stock.

***You will experience immediate and substantial dilution as a result of this offering and may experience additional dilution in the future.***

You will suffer immediate and substantial dilution with respect to the common stock you purchase in this offering. If you purchase common stock in this offering, at the initial public offering price of $ per share, and assuming that the underwriters do not exercise their option to purchase additional shares in this offering, you will incur immediate dilution of $ per share, representing the difference between the initial public offering price of $ per share and our pro forma net tangible book value per share as of December 31, 2025, after giving effect to this offering and the conversion of all outstanding shares of our convertible preferred stock to common stock upon the completion of this offering.

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For a further description of the dilution you will experience immediately after this offering, see the section titled "Dilution."

***A sale of a substantial number of shares of our common stock may cause the price of our common stock to decline.***

Based on the shares outstanding as of December 31, 2025, upon completion of this offering, we will have a total of shares of common stock outstanding. Of these shares, only shares of common stock sold in this offering, or shares if the underwriters exercise their option to purchase additional shares in full, will be freely tradable, without restriction, in the public market immediately after this offering. Each of our officers, directors and holders of substantially all of our outstanding equity securities have entered into lock-up agreements with the underwriters that restrict their ability to sell or transfer their shares. The lock-up agreements pertaining to this offering will expire 180 days from the date of this prospectus. However, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Leerink Partners LLC may, in their sole discretion, permit our officers, directors and other current stockholders who are subject to the contractual lock-up to sell shares prior to the expiration of the lock-up agreements. After the lock-up agreements expire, the shares of common stock subject to these lock-up agreements will be eligible for sale in the public market, unless held by our officers, directors and their affiliated entities, in which case such shares will be subject to volume limitations under Rule 144 under the Securities Act of 1933, as amended, or the Securities Act.

After this offering, the holders of an aggregate of shares of our outstanding common stock as of December 31, 2025, will have rights, subject to some conditions, to require us to file registration statements covering their shares or to include their shares in registration statements that we may file for ourselves or our stockholders. We also intend to register shares of common stock that we may issue under our equity incentive plans. Once we register these shares, they will be able to be sold freely in the public market upon issuance, subject to the 180-day lock-up period under the lock-up agreements described above and in the section titled "Underwriting."

We cannot predict what effect, if any, sales of our shares in the public market or the availability of shares for sale will have on the market price of our common stock. However, future sales of substantial amounts of our common stock in the public market, including shares issued upon exercise of our outstanding options, or the perception that such sales may occur, could adversely affect the market price of our common stock.

We also expect that significant additional capital may be needed in the future to continue our planned operations. To raise capital, we may sell common stock, convertible securities or other equity securities in one or more transactions at prices and in a manner we determine from time to time. To the extent that additional capital is raised through the sale and issuance of shares of common stock or other securities convertible into shares of common stock, our stockholders will be diluted. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares of common stock, could reduce the market price of our common stock.

***We will have broad discretion in the use of the net proceeds from this offering and may not use them effectively.***

Our management will have broad discretion in the application of the net proceeds from this offering, including for any of the purposes described in the section titled "Use of Proceeds," and you will be relying on the judgment of our management regarding the application of these net proceeds. You will not have the opportunity, as part of your investment decision, to assess whether we are using the net proceeds appropriately. Our management might not apply our net proceeds in ways that ultimately increase the value of your investment. If we do not invest or apply the net proceeds from this

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offering in ways that enhance stockholder value, we may fail to achieve expected financial results, which could cause our stock price to decline. Pending their use, we may invest the net proceeds from this offering in a manner that does not produce income or that loses value.

***Our principal stockholders and management own a significant percentage of our common stock and will be able to control matters subject to stockholder approval.***

Based on the beneficial ownership of our common stock as of , 2025, prior to this offering, our executive officers, directors, holders of 5% or more of our capital stock and their respective affiliates beneficially owned approximately % of our voting stock and, upon the completion of this offering, that same group will hold approximately % of our outstanding voting stock (assuming no exercise of the underwriters' option to purchase additional shares, no exercise of our outstanding options and no purchases of shares of common stock in this offering by anyone of this group). The interests of these stockholders may not be the same as or may even conflict with your interests. For example, these stockholders could delay or prevent a change of control of our Company, even if such a change of control would benefit our other stockholders, which could deprive our stockholders of an opportunity to receive a premium for their common stock as part of a sale of our Company or our assets and might affect the prevailing market price of our common stock. The significant concentration of stock ownership may adversely affect the trading price of our common stock due to investors' perception that conflicts of interest may exist or arise.

***We do not currently intend to pay dividends on our common stock and, consequently, our stockholders' ability to achieve a return on their investment will depend on appreciation of the value of our common stock.***

We have never declared or paid cash dividends on our common stock. We currently intend to retain all available funds and any future earnings to support operations and to finance the growth and development of our business. We do not intend to declare or pay any cash dividends on our capital stock in the foreseeable future. As a result, any investment return on our common stock will depend upon increases in the value for our common stock, which is not certain.

***We are an "emerging growth company" and a "smaller reporting company" and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies or smaller reporting companies will make our common stock less attractive to investors.***

We are an "emerging growth company" as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including (i) being permitted to present only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure in this Prospectus; (ii) reduced disclosure about our executive compensation arrangements; (iii) not being required to hold advisory votes on executive compensation or to obtain stockholder approval of any golden parachute arrangements not previously approved; (iv) an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act; and (v) an exemption from compliance with the requirements of the Public Company Accounting Oversight Board regarding the communication of critical audit matters in the auditor's report on the financial statements.

We may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company on the date that is the earliest of (i) the last day of the fiscal year in which we have total annual gross

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revenues of $1.235 billion or more; (ii) the last day of our fiscal year following the fifth anniversary of the date of the completion of this offering; (iii) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the SEC.

We have taken advantage of reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different from the information you receive from other public companies in which you hold stock. Additionally, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this exemption and, therefore, while we are an emerging growth company, we will not be subject to new or revised accounting standards at the same time that they become applicable to other public companies that are not emerging growth companies. As a result of this election, our financial statements may not be comparable to those of 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. Until the date that we are no longer an "emerging growth company" or affirmatively and irrevocably opt out of the exemption provided by Section 7(a)(2)(B) of the Securities Act, upon issuance of a new or revised accounting standard that applies to our financial statements and that has a different effective date for public and private companies, we will disclose the date on which adoption is required for non-emerging growth companies and the date on which we will adopt the recently issued accounting standard.

We are also a "smaller reporting company," meaning that the market value of our common stock held by non-affiliates plus the proposed aggregate amount of gross proceeds to us as a result of this offering is less than $700.0 million and our annual revenue is less than $100.0 million during the most recently completed fiscal year. We may continue to be a smaller reporting company after this offering if either (i) the market value of our common stock held by non-affiliates is less than $250.0 million or (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our common stock held by non-affiliates is less than $700.0 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements, we are not required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

***If we fail to establish and maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be impaired, which could harm our operating results, investors' views of us and, as a result, the value of our common stock.***

Pursuant to Section 404 of the Sarbanes-Oxley Act, we are required to furnish a report by our management on our internal control over financial reporting within our Annual Report on Form 10-K. However, while we remain an emerging growth company, we will not be required to include an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. Ensuring that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that will need to be frequently evaluated. Our failure to maintain the effectiveness of our internal controls in accordance with the requirements of the Sarbanes-Oxley Act

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could have a material adverse effect on our business. If we identify one or more material weaknesses, it could result in an adverse reaction in the financial markets due to a loss of confidence in the reliability of our financial statements. In addition, if we are not able to continue to meet these requirements, we may not be able to remain listed on Nasdaq.

As we grow, we expect to hire additional personnel and may utilize external temporary resources to implement, document and modify policies and procedures to maintain effective internal controls. However, it is possible that we may identify deficiencies and weaknesses in our internal controls. If material weaknesses or deficiencies in our internal controls exist and go undetected or unremediated, our financial statements could contain material misstatements that, when discovered in the future, could cause us to fail to meet our future reporting obligations and cause the price of our common stock to decline.

***Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.***

Upon the completion of this offering, we will become subject to the periodic reporting requirements of the Exchange Act. We designed our disclosure controls and procedures to reasonably assure that information we must disclose in reports we file or submit under the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. We believe that any disclosure controls and procedures or internal controls and procedures, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. For example, our directors or executive officers could inadvertently fail to disclose a new relationship or arrangement causing us to fail to make any related party transaction disclosures. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements due to error or fraud may occur and not be detected. In addition, we do not have a formal risk management program for identifying and addressing risks to our business in other areas.

***Anti-takeover provisions in our charter documents and under Delaware law could prevent or delay an acquisition of us, which may be beneficial to our stockholders, and may prevent attempts by our stockholders to replace or remove our current management.***

Our restated certificate of incorporation and our restated bylaws that will be in effect upon completion of this offering contain provisions that could delay or prevent a change in control of our Company. These provisions could also make it difficult for stockholders to elect directors who are not nominated by current members of our board of directors or take other corporate actions, including effecting changes in our management. These provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish a classified board of directors so that not all members of our board are elected at one time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• permit only the board of directors to establish the number of directors and fill vacancies on the board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide that directors may only be removed "for cause" and only with the approval of two-thirds of our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require super-majority voting to amend some provisions in our restated certificate of incorporation and restated bylaws;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authorize the issuance of "blank check" preferred stock that our board of directors could use to implement a
stockholder rights plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• eliminate the ability of our stockholders to call special meetings of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibit stockholder action by written consent, which requires all stockholder actions to be taken at a meeting of our
stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibit cumulative voting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish advance notice requirements for nominations for election to our board of directors or for proposing matters that
can be acted upon by stockholders at annual stockholder meetings.

In addition, Section 203 of the Delaware General Corporation Law, or DGCL, may discourage, delay or prevent a change in control of our Company. Section 203 imposes certain restrictions on mergers, business combinations and other transactions between us and holders of 15% or more of our common stock.

***The exclusive forum provisions in our organizational documents may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers, or employees, or the underwriters of any offering giving rise to such claim, which may discourage lawsuits with respect to such claims.***

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Any person or entity purchasing or otherwise acquiring or holding any interest in any of our securities shall be deemed to have notice of and consented to our exclusive forum provisions, including the Federal Forum Provision. These provisions may limit a stockholders' ability to bring a claim, and may result in increased costs for a stockholder to bring such a claim, in a judicial forum of their choosing for disputes with us or our directors, officers, other employees or agents, which may discourage lawsuits against us and our directors, officers, other employees or agents.

**General risk factors** 

***Unfavorable macroeconomic conditions or market volatility resulting from geopolitical developments or national or global economic conditions, including those affecting the financial services industry, could adversely affect our business, financial condition or results of operations.***

Adverse macroeconomic conditions or market volatility resulting from national or global economic developments, political unrest, high inflation, rising interest rates, international tariffs, changes in international trade relationships and military conflicts, such as the ongoing conflict between Russia and Ukraine, the potential for significant changes in U.S. policies or regulatory environment, or other factors, could materially and adversely affect our business operations. Sanctions imposed by the U.S. and other countries in response to such conflicts may also continue to adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability. Tariffs levied by the U.S. and other countries also may adversely affect financial markets and the global economy. There can be no assurance that further deterioration in credit and financial markets and confidence in economic conditions will not occur. For instance, actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems. Investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us to acquire financing on acceptable terms or at all. In addition, any further deterioration in the macroeconomic economy or financial services industry could lead to losses or defaults by our suppliers, which in turn, could have a material adverse effect on our current and/or planned business operations and our current or projected results of operations and financial condition. For example, there has been recent U.S. legislation that may restrict the ability of U.S. biopharmaceutical companies to purchase services or products from, or otherwise collaborate with, certain Chinese biotechnology companies of concern without losing the ability to contract with, or otherwise receive funding from, the U.S. government. We continue to assess the law to determine whether it could have an effect on our contractual relationships. Also, current inflationary trends in the global economy may impact salaries and wages, costs of goods and transportation expenses, among other things, and recent and potential future disruptions in access to bank deposits or lending commitments due to bank failures may create market and economic instability.

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A severe or prolonged economic downturn or additional global financial crises could result in a variety of risks to our business, including weakened demand for any product candidates we develop or our ability to raise additional capital when needed on acceptable terms, if at all.

Further, U.S. government appropriations have been affected by larger U.S. government budgetary issues and related legislation. In addition, in the past, U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the U.S. Although U.S. lawmakers passed legislation to raise the federal debt ceiling on multiple occasions, ratings agencies have lowered or threatened to lower the long-term sovereign credit rating on the U.S. The impact of this or any further downgrades to the U.S. government's sovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial markets and economic conditions. As a result, government spending levels are difficult to predict beyond the near term due to numerous factors, including the external threat environment, future government priorities and the state of government finances. Significant changes in government spending or changes in U.S. government priorities, policies and requirements could have a material adverse effect on our results of operations, financial condition or liquidity.

Any of the foregoing could harm our business and we cannot anticipate all of the ways in which the current economic climate and financial market conditions could adversely impact our business.

***If securities or industry analysts do not publish research or reports about our business, or if they issue an adverse or misleading opinion regarding our stock, our stock price and trading volume could decline.***

The trading market for our common stock will be influenced by the research and reports that industry or securities analysts publish about us or our business. We do not have any control over the industry or securities analysts, or the content and opinions included in their reports. We do not currently have and may never obtain research coverage by securities and industry analysts. If no or few securities or industry analysts commence coverage of us, the trading price for our common stock could be impacted negatively. In the event we obtain securities or industry analyst coverage, if any of the analysts who cover us issue an adverse or misleading opinion regarding us, our business model, our intellectual property or our stock performance, or if our preclinical studies and clinical trials and operating results fail to meet the expectations of analysts, our stock price would likely decline. If one or more of such analysts cease coverage of us or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause a decline in our stock price or trading volume.

***We will incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives and corporate governance practices.***

As a public company, and particularly after we are no longer an emerging growth company or smaller reporting company, we will incur significant legal, accounting and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, the listing requirements of Nasdaq and other applicable securities rules and regulations impose various requirements on public companies, including establishment and maintenance of effective disclosure and financial controls and corporate governance practices. Our management and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover, we expect these rules and regulations to substantially increase our legal and financial compliance costs and to make some activities more time-consuming and costly. For example, we expect that these rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to incur

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substantial costs to maintain sufficient coverage. We cannot predict or estimate the amount or timing of additional costs we may incur to respond to these requirements. The impact of these requirements could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, our board committees or as executive officers. The increased costs may require us to reduce costs in other areas of our business. Moreover, these rules and regulations are often subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices.

***We may be subject to securities litigation, which is expensive and could divert management attention.***

The market price of our common stock is likely to be highly volatile. The stock market in general, and Nasdaq and biopharmaceutical companies in particular, have experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our management's attention from other business concerns, which could seriously harm our business.

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**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "plan," "expect" and similar expressions that convey uncertainty of future events or outcomes, although not all forward-looking statements contain these words. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled "Risk Factors" and elsewhere in this prospectus. Moreover, we operate in a competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this prospectus may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

The forward-looking statements in this prospectus include, among other things, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to advance our lead product candidate, STX-1150, and our developmental
programs STX-1200 and STX-1400 to address the key drivers of ASCVD;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our plans to engineer, develop and commercialize potential genetic medicines with our proprietary CRISPR-based
technologies, ELXR and XE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to leverage ELXR and XE to efficiently produce product candidates at a rapid pace and continuously advance our
genetic modification platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding collaboration and licensing arrangements with third parties, including our ability to reach
development milestones under such agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• estimates of the addressable market for our potential genetic medicines and any future product candidates and the
therapeutic impact of our potential genetic medicines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding demand for, and market acceptance of, our potential genetic medicines and platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to market or commercialize any product candidates we may develop and to compete effectively with existing
competitors and new market entrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential effects of extensive government regulations relating to the genetic medicine industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain, maintain, protect and enforce intellectual property and proprietary rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to operate our business without infringing, misappropriating or otherwise violating the intellectual property
rights and proprietary technology of third parties;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic, industry and market conditions, including fluctuating interest rates and inflation, cybersecurity
incidents, significant political, trade or regulatory developments, including tariffs or shifting priorities within the FDA, and global regional conflicts on our operations and the receipt and timing of potential regulatory designations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding expenses, future revenue, capital requirements and our needs for additional financing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expected use of the net proceeds from this offering and our existing cash, cash equivalents and investments.

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We caution you that the foregoing list may not contain all of the forward-looking statements made in this prospectus.

The forward-looking statements made in this prospectus relate only to events or information as of the date on which the statements are made in this prospectus. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this prospectus to conform these statements to actual results or to changes in our expectations, except as required by law.

You should read this prospectus and the documents that we reference in this prospectus and have filed with the Securities and Exchange Commission, or SEC, as exhibits to the registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements.

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**MARKET AND INDUSTRY DATA** 

This prospectus contains estimates and other statistical data made by independent parties and by us relating to our industry and the markets in which we operate, including our general expectations and market position, market opportunity, the incidence of certain medical conditions and other industry data. In some cases, we do not expressly refer to the sources from which these data are derived. These data, to the extent they contain estimates or projections, involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates or projections. Industry publications and other reports we have obtained from independent parties may state that the data contained in these publications or other reports have been obtained in good faith or from sources considered to be reliable, but they do not guarantee the accuracy or completeness of such data. The industry in which we operate is subject to risks and uncertainties due to a variety of factors, including those described in the section titled "Risk Factors." These and other factors could cause results to differ materially from those expressed in these publications and reports. The content of these third-party sources, except to the extent specifically set forth in this prospectus, does not constitute a portion of this prospectus and is not incorporated herein.

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**USE OF PROCEEDS** 

We estimate that the net proceeds from this offering will be approximately $ million, or approximately $ million if the underwriters exercise their option to purchase additional shares of our common stock from us in full, assuming an initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease, as applicable, the net proceeds to us from this offering by $ million, assuming the number of shares offered, as set forth on the cover of this prospectus, remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase or decrease of 1.0 million shares in the number of shares of our common stock offered would increase or decrease, as applicable, the net proceeds that we receive from this offering by $ million, assuming that the assumed initial public offering price remains the same and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The principal purposes of this offering are to increase our financial flexibility, create a public market for our common stock and to facilitate our access to the public equity markets. We currently intend to use the net proceeds we receive from this offering, together with our existing cash, cash equivalents and investments as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately $ million to advance the development of our lead product candidate, STX-1150, through     ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately $ million to advance the development of a second product candidate, STX-1200 or STX-1400, through     ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately $ million for continued investment in our additional pipeline programs as well as
associated CRISPR-based technologies, ELXR and XE, development of new technologies and development of our internal pipeline; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the remainder for working capital and other general corporate purposes.

We may also use a portion of the net proceeds to in-license, acquire, or invest in complementary technologies, assets, manufacturing capabilities, or intellectual property. We periodically evaluate strategic opportunities; however, we have no current commitments to enter into any such acquisitions or make any such investments.

We believe that our existing cash, cash equivalents and investments, together with the net proceeds from this offering, will be sufficient for us to fund our operations and capital expenses through . We have based this estimate on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we expect. All of our programs are currently in the preclinical stage of development. The expected use of the net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve. Because of the numerous risks and uncertainties associated with research, development and commercialization of pharmaceutical drugs, we are unable to estimate the exact amount of our working capital requirements or the funds necessary to support our operations. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering. We expect the net proceeds from this offering, together with our existing cash and cash equivalents, and investments, will not be sufficient for us to advance any of our programs through regulatory approval, and following this offering, we will need substantial additional

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capital to complete the development and commercialization of any of our programs. Therefore, we will need to raise additional capital to complete the development and potential commercialization of any of our programs.

Pending the uses described above, we intend to invest the net proceeds from this offering in short term, investment-grade interest-bearing securities such as money market accounts, certificates of deposit, commercial paper and guaranteed obligations of the U.S. government.

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**DIVIDEND POLICY** 

We have never declared or paid cash dividends on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any cash dividends on our common stock in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, general business conditions and other factors that our board of directors may deem relevant. Our ability to pay cash dividends on our capital stock in the future may also be limited by any restrictions contained in any future financing instruments or by the terms of any preferred securities we may issue or agreements governing any indebtedness we may incur.

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**CAPITALIZATION** 

The following table sets forth our cash, cash equivalents and investments and capitalization as of December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma basis, giving effect to (i) the Preferred Stock Conversion, (ii) the Warrant Conversion,
(iii) the Note Conversion and (iv) the filing and effectiveness of our restated certificate of incorporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma as adjusted basis giving effect to (i) the pro forma adjustments described above, and (ii) the
sale and issuance by us of      shares of our common stock in this offering at the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of
this prospectus, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The pro forma as adjusted information set forth below is illustrative only and will be adjusted based on the actual initial public offering price and other terms of this offering determined at pricing.

You should read this table together with the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and the related notes, each included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Actual** | **Pro<br> Forma** | **Pro Forma<br>As<br>Adjusted** |
|  | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **(in thousands, except share and per share<br>amounts)** | **(in thousands, except share and per share<br>amounts)** | **(in thousands, except share and per share<br>amounts)** |
|  Cash, cash equivalents and investments | $| $— | $|
|  Convertible note |  |  |  |
|  Redeemable convertible preferred stock, par value $0.001 per share; 29,182,118 shares authorized, 29,107,492 shares issued and outstanding, actual; no shares authorized, issued and outstanding, pro forma and pro forma as adjusted |  |  |  |
|  Stockholders' equity (deficit): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock, par value $0.001 per share; no shares authorized, issued and outstanding, actual; shares authorized, no shares issued and outstanding, pro forma and pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, par value $0.001 per share; 52,000,000 shares authorized, 14,515,851 shares issued and outstanding, actual; shares authorized, pro forma and pro forma as adjusted; shares issued and outstanding, pro forma; shares issued and outstanding, pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' (deficit) equity |  |  |  |
|  Total capitalization | $| $— | $|

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If the underwriters' option to purchase additional shares is exercised in full, our pro forma as adjusted cash, cash equivalents and investments, additional paid-in capital, total stockholders' equity (deficit) and total capitalization as of December 31, 2025, would be $ million, $ million, $ million, and $ million, respectively.

Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of the prospectus, would increase or decrease, as applicable, each of our pro forma as adjusted cash, cash equivalents and investments, additional paid-in capital, total stockholders' equity and total capitalization by approximately $ million, assuming that the number of shares offered, as set forth on the cover of this prospectus, remains the same. Similarly, each increase or decrease of 1.0 million shares in the number of shares of our common stock offered in this offering would increase or decrease, as applicable, each of our pro forma as adjusted cash, cash equivalents and investments, additional paid-in capital, total stockholders' equity and total capitalization by approximately $ million, assuming the assumed initial public offering price remains the same.

The number of shares of our common stock to be outstanding after this offering on a pro forma and pro forma as adjusted basis is based on shares of common stock outstanding as of December 31, 2025 (including shares of unvested restricted common stock subject to repurchase and after giving effect to (i) the Preferred Stock Conversion, (ii) the Warrant Conversion and (iii) the Note Conversion) and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock issuable upon the exercise of stock options to purchase shares of
our common stock outstanding as of December 31, 2025 under the 2018 Plan, at a weighted-average exercise price of $ per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock issuable upon the exercise of stock options to purchase shares of
our common stock granted after December 31, 2025 under our 2018 Plan, with a weighted-average exercise price of $ per share; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock reserved for future issuance under our equity compensation plans,
consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock reserved for future issuance under our 2018 Plan as of
December 31, 2025, which shares will become available under the 2026 Plan upon its effectiveness,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock to be reserved for future issuance under the 2026 Plan, which will
become effective immediately prior to the date of the effectiveness of the registration statement of which this prospectus forms a part, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock to be reserved for future issuance under the ESPP, which will
become effective immediately prior to the date of the effectiveness of the registration statement of which this prospectus forms a part.

Our 2026 Plan and our ESPP provide for automatic annual increases in the number of shares of our common stock reserved thereunder, and our 2026 Plan provides for increases to the number of shares that may be granted thereunder based on shares under our 2018 Plan that expire, are tendered to or withheld by us for payment of an exercise price or for satisfying tax withholding obligations or are forfeited or otherwise repurchased by us. See the section titled "Executive compensation—Equity compensation plans and other benefit plans" for additional information.

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**DILUTION** 

If you invest in our common stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the initial public offering price per share of our common stock in this offering and the pro forma as adjusted net tangible book value per share of our common stock immediately after this offering.

Net tangible book value per share is determined by dividing our total tangible assets (which excludes deferred offering costs) less our total liabilities and redeemable convertible preferred stock by the number of shares of our common stock outstanding. Our historical net tangible book deficit as of December 31, 2025 was $ million, or $ per share, based on shares of our common stock outstanding as of that date.

Our pro forma net tangible book value as of December 31, 2025 was $ million, or $ per share of our common stock. Our pro forma net tangible book value per share represents the amount of our total tangible assets (which excludes deferred offering costs) less our total liabilities and divided by the total number of shares of our common stock outstanding as of December 31, 2025, after giving effect to (i) the Preferred Stock Conversion, (ii) the Warrant Conversion, and (iii) the Note Conversion.

Dilution per share to new investors in this offering represents the difference between the initial public offering price per shares of our common stock and the pro forma as adjusted net tangible book value per share of our common stock immediately after completion of this offering. After giving further effect to our sale in this offering of shares of our common stock at the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of December 31, 2025 would have been approximately $ million, or $ per share of our common stock. This represents an immediate increase in pro forma net tangible book value of $ per share to our existing stockholders and an immediate dilution of $ per share to investors in this offering, as illustrated in the following table:

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| | |
|:---|:---|
|  Assumed initial public offering price per share | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical net tangible book deficit per share as of December 31, 2025 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase per share attributable to pro forma adjustments |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net tangible book value per share as of December 31, 2025 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in pro forma net tangible book value per share attributable to new investors in this offering |  |
|  Pro forma as adjusted net tangible book value per share after this offering |  |
|  Dilution per share to new investors in this offering | $|

---

Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease, as applicable, our pro forma net tangible book value by $ million, or $ per share, our pro forma as adjusted net tangible book value by $ million, or $ per share and the dilution in pro forma as adjusted net tangible book value per share to new investors in this offering by $ per share, assuming the number of shares offered, as set forth on the cover of this prospectus, remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase of 1.0 million shares in the number of shares of our common stock offered in this offering would increase our pro forma net tangible book value by approximately $ million or approximately $ per share and pro forma as

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adjusted net tangible book value by approximately $ million, or approximately $ per share, and would decrease dilution per share to new investors in this offering by approximately $ per share and each decrease of 1.0 million shares in the number of shares of our common stock offered in this offering would decrease our pro forma as adjusted net tangible book value by approximately $ million, or approximately $ per share, and would increase dilution per share to new investors in this offering by approximately $ per share, assuming the assumed initial public offering price per share remains the same and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. The pro forma as adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price and other terms of this offering determined at pricing.

If the underwriters exercise their option to purchase additional shares in full, the pro forma as adjusted net tangible book value (deficit) per share after this offering would be $ per share, the increase in pro forma as adjusted net tangible book value per share to existing stockholders would be $ per share and the dilution to new investors in this offering would be $ per share.

The following table shows, as of December 31, 2025, on a pro forma as adjusted basis described above, the differences between the existing stockholders and the new investors purchasing shares in this offering at an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, with respect to the number of shares purchased from us, the total consideration paid, which includes net proceeds received from the issuance of common and redeemable convertible preferred stock, cash received from the exercise of stock options, and the value of any stock issued for services and the weighted-average price paid per share (in thousands, except share and per share amounts, and percentages):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Weighted-<br>Average<br>Price**<br>**Per Share** |
|  | **Number** | **Percent** | **Percent** | **Weighted-<br>Average<br>Price**<br>**Per Share** |
|  Existing stockholders% |  |  | $nan% | $|
|  New investors |  |  |  | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 100.0% | $nan% |  |

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Each $1.00 increase decrease in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease, as applicable, total consideration paid by new investors and total consideration paid by all stockholders by approximately $ million, assuming that the number of shares offered, as set forth on the cover of this prospectus, remains the same. Similarly, each increase or decrease of 1.0 million shares in the number of shares of our common stock offered in this offering would increase or decrease, as applicable, total consideration paid by new investors and total consideration paid by all stockholders by approximately $ million, assuming the assumed initial public offering price remains the same.

In addition, to the extent that any outstanding options are exercised, investors in this offering will experience further dilution.

Except as otherwise indicated, the above discussion and tables assume no exercise of the underwriters' option to purchase additional shares. If the underwriters exercise their option to purchase additional shares in full, our existing stockholders would own % and our new investors would own % of the total number of shares of our common stock outstanding upon the completion of this offering.

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The foregoing tables and calculations (other than historical net tangible book value) are based on shares of common stock outstanding as of December 31, 2025 (including shares of unvested restricted common stock subject to repurchase and after giving effect to (i) the Preferred Stock Conversion, (ii) the Warrant Conversion and (iii) the Note Conversion), and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of our common stock issuable upon the exercise of stock options to purchase shares of our common stock outstanding
as of December 31, 2025 under the 2018 Plan, at a weighted-average exercise price of $ per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of our common stock issuable upon the exercise of stock options to purchase shares of our common stock granted after
December 31, 2025 under the 2018 Plan, with a weighted-average exercise price of $ per share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of our common stock reserved for future issuance under our equity compensation plans, consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of our common stock reserved for future issuance under the 2018 Plan as of December 31, 2025, which shares will
become available under the 2026 Plan upon its effectiveness,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of our common stock to be reserved for future issuance under the 2026 Plan, which will become effective immediately
prior to the date of the effectiveness of the registration statement of which this prospectus forms a part, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of our common stock to be reserved for future issuance under the ESPP, which will become effective immediately prior
to the date of the effectiveness of the registration statement of which this prospectus forms a part.

Our 2026 Plan and ESPP provide for automatic annual increases in the number of shares of our common stock reserved thereunder, and our 2026 Plan provides for increases to the number of shares that may be granted thereunder based on shares under our 2018 Plan that expire, are tendered to or withheld by us for payment of an exercise price or for satisfying tax withholding obligations or are forfeited or otherwise repurchased by us. See the section titled "Executive Compensation—Equity compensation plans and other benefit plans" for additional information.

To the extent that these outstanding stock options are exercised, new stock options are issued or we issue additional shares of our common stock in the future, there will be further dilution to new investors. In addition, we may choose to raise additional capital because of market conditions or strategic considerations, even if we believe that we have sufficient funds for our current or future operating plans. If we raise additional capital through the sale of equity or convertible debt securities, the issuance of these securities could result in further dilution to our stockholders.

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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 in conjunction with our financial statements and the related notes and other financial information included elsewhere in this Prospectus. This discussion and analysis and other parts of this prospectus contain forward-looking statements based upon our current plans and expectations that involve risks, uncertainties and assumptions, such as statements regarding our plans, objectives, expectations, intentions and beliefs. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under the section titled "Risk Factors" and elsewhere in this prospectus. You should carefully read the section titled "Risk Factors" to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements. Please also see the section titled "Special Note Regarding Forward-Looking Statements."* 

**Overview** 

We are a biotechnology company pioneering highly engineered CRISPR technologies designed to reshape the treatment of disease by enabling earlier intervention, improved outcomes, and longer, healthier lives. While current genetic medicines are largely limited to rare disorders, we are engineering our technologies for use in common diseases affecting millions. By targeting prevalent diseases with significant unmet need and high clinical burden we aim to usher in a new era of broadly scalable, transformative, and preventative genetic medicines. Our focus is on cardiovascular and metabolic diseases, with initial programs targeting the key drivers of atherosclerotic cardiovascular disease, or ASCVD. We are designing CRISPR-based genetic medicines to be well-tolerated, effective, durable and scalable enough to shift the treatment paradigm from symptom-driven intervention and chronic care to population-level prevention, with the goal of broadly democratizing access to the cardioprotective effects of known genetic variants. Our lead product candidate, STX-1150, utilizes our epigenetic silencing technology and is designed to deliver persistent and potent LDL-C reductions without permanent genetic changes. STX-1150 is a demonstration of executing on our goal, with the potential to transform adherence and real-world therapeutic outcomes for patients in the multibillion-dollar LDL-C lowering landscape. We have submitted a Clinical Trial Notification, or CTN, for STX-1150 with the Australian regulatory authority in December 2025, and anticipate beginning to dose patients with STX-1150 in .

Every 40 seconds, someone in the United States suffers a heart attack, and each year, heart disease costs the nation more than $400 billion, according to the American Heart Association. Despite major advances in our understanding of the pathology of heart disease and ASCVD, and the development of new classes of pharmaceuticals, we believe today's standard of care for ASCVD is insufficient. Existing treatments fail to demonstrate broad impact as they suffer from underwhelming efficacy, well documented side effects, and onerous polypharmacy treatment burden, leading to poor uptake, low adherence and limited real-world effectiveness. Patients often discontinue therapy due to loss of insurance, high out-of-pocket costs, or the logistical burden of ongoing clinic visits. Moreover, treatment is often initiated only after substantial cumulative arterial injury or an acute cardiovascular event. These limitations of the current treatment paradigms underscore the importance of developing durable therapies that can be administered safely earlier in the course of disease and provide compelling health-economic value to payers.

We believe that fundamentally different therapeutics are required to meaningfully address ASCVD. To realize this vision, we are executing on a differentiated strategy that applies a full stack engineering approach coupling generative artificial intelligence, or AI, and machine learning, or ML, with massively parallel experimental validation to optimize and tailor CRISPR technologies for the

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precise demands of each therapeutic application. Through this proprietary approach which we refer to as CRISPR by Design, we systematically evaluate disease biology, target genetics, and commercial opportunities against product requirements to engineer the most appropriate and scalable solution for each therapeutic application. This disciplined, data-driven strategy has led us to engineer two proprietary technologies based on a novel CRISPR-CasX enzyme: the Epigenetic Long-Term X-Repressor, or ELXR, designed for precise, durable epigenetic silencing without altering the underlying DNA sequence; and the X-Editor, or XE, designed for efficient gene editing. Rather than committing to a single technology upfront, we advance multiple approaches in parallel and prioritize the modality that demonstrates the most favorable safety, durability, and efficacy profile for each product candidate based on empirical data. We believe this engineering-led, evidence-based strategy, combined with a technology stack purpose-built for broad patient populations, positions us to develop competitive and scalable genetic medicines across a wide range of cardiovascular indications. We are advancing three in vivo product candidates targeting three key lipid drivers of ASCVD: elevated low-density lipoprotein cholesterol, or LDL-C, elevated lipoprotein(a), or Lp(a), and elevated triglycerides carried by triglyceride-rich lipoproteins, or TRLs.

Our lead product candidate, STX-1150, is an epigenetic silencing therapy that is based on our ELXR technology and is designed to durably lower LDL-C by repressing the expression of PCSK9, a genetically and clinically validated target. Unlike CRISPR gene editing, base editing, or prime editing approaches, STX-1150 is designed to achieve long-lasting therapeutic benefit without permanently altering the underlying DNA sequence. STX-1150 aims to improve on the real-world efficacy of small molecule, antibody and siRNA therapies by eliminating the need for years to decades of repeat medication. In a study conducted with non-human primates, or NHPs, a single dose of a prototype STX-1150 was generally well-tolerated and produced therapeutically meaningful, durable LDL-C reduction of greater than 50% sustained for nearly 18 months. Durable and early LDL-C lowering of this magnitude has been demonstrated in human genetic studies to reduce ASCVD risk by up to 88%, underscoring the potential to transform the current treatment paradigm from late-stage intervention to effective prevention. The large and expanding LDL-C lowering market is characterized by a persistent gap between efficacy observed in controlled settings and real-world outcomes. We believe STX-1150's long-acting epigenetic mechanism could increase current adherence rates that are typically only 40–50%, which could drive superior clinical outcomes for patients through increased adherence-adjusted efficacy and compelling health-economic value for payors while avoiding the risks of permanent genetic modification. Given that ASCVD is a chronic condition, we believe improvements in adherence also could compound over time to drive better clinical outcomes, enabling more efficient payer management and broadening patient access. As a result, we believe STX-1150 the potential to expand the growing market for PCSK9-based LDL-C–lowering medicines, which currently exceeds $4 billion annually yet remains significantly underpenetrated, with fewer than 1% of eligible patients treated. We submitted a CTN with the Australian regulatory authority in December 2025 and anticipate beginning to dose patients in .

Our next programs, STX-1200 and STX-1400, target two additional lipid drivers of ASCVD, elevated Lp(a) and severely high triglycerides, by editing the *LPA* and *APOC3* genes, respectively. Elevated Lp(a) and high triglycerides represent causal risk factors for ASCVD affecting large populations.

Beyond our wholly owned cardiovascular pipeline, we have entered target-limited collaborations with leading global biopharmaceutical companies to apply our precision-engineered CRISPR technologies in other therapeutic areas outside of cardiometabolic. These collaborations provide upfront payments, research funding, milestone payments, and potential royalties. We believe these partnerships validate the versatility and scalability of our technology platform while generating meaningful near- and long-term value.

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***Financial Overview***

Since the commencement of our operations, we have devoted substantially all of our resources to conducting research and development activities, establishing and maintaining our intellectual property portfolio, establishing our corporate infrastructure, raising capital and providing general and administrative support for these operations. We have funded our operations to date primarily from proceeds received under collaboration and license agreements with Sanofi, Lilly and Biogen, the issuance and sale of redeemable convertible preferred stock and the issuance of a convertible note. We do not expect to generate product revenue unless and until we successfully develop and obtain approval for the commercialization of a product candidate, and we cannot assure that we will ever generate significant revenue or profits.

Since inception, we have incurred significant losses and negative cash flows from operations. During the years ended December 31, 2024 and 2025, we incurred net losses of $47.8 million and $ million, respectively. As of December 31, 2025, we had an accumulated deficit of $ million. These losses have resulted primarily from costs incurred in connection with research and development activities and general and administrative costs associated with our operations.

We do not expect to generate any revenue from commercial product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our product candidates, which we expect will take a number of years, if ever. The net losses we incur may fluctuate significantly from quarter-to-quarter and year-to-year, such that a period-to-period comparison of our results of operations may not be a good indication of our future performance.

We anticipate that our expenses will increase substantially if, and as, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advance our lead product candidate, STX-1150, through clinical trials and conduct
later stage clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initiate clinical trials for our STX-1200 and STX-1400 developmental programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• manufacture, or have manufactured, preclinical, clinical and potentially commercial supplies of any product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• further develop our CRISPR-based technologies, ELXR and XE, as well as engineering of new technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continue preclinical development of any future cardiometabolic programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identify and develop future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• experience any delays in our preclinical studies and clinical trials, if any, due to unforeseen events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtain, expand, maintain, defend and enforce our intellectual property portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• seek regulatory approvals for any product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish a sales, marketing and distribution infrastructure to commercialize any product candidates, if approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with our obligations under the agreements governing our licenses, collaborations and strategic partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish additional licenses, collaborations or strategic partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquire or in-license intellectual property and technologies, work with strategic
partners to support and expand our research and discovery, and initiate and conduct preclinical and clinical programs;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hire additional clinical, scientific and management personnel, as well as administrative staff to support the growth of our
business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• add operational, financial and management information systems and personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incur additional legal, accounting and other costs associated with operating as a public company following the completion
of this offering.

Even if we succeed in developing our lead programs and identifying potential product candidates, we may never achieve commercialization, and we may continue to incur substantial research and development expenses and other expenditures to develop and market additional product candidates. We may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect our business, financial condition, results of operations and prospects. The size of our future losses will depend, in part, on the rate of future growth of our expenses and our ability to generate product revenue, if any. Our prior losses and expected future losses have had and will continue to have an adverse effect on our stockholders' equity and working capital.

Our net losses and cash flows may fluctuate significantly from period to period, depending on, among other things, variations in the level of expense related to the ongoing development of our product candidates or future development programs; the delay, addition or termination of clinical trials; and the execution of any additional collaboration, licensing or similar arrangements, and the timing of payments we may make or receive under such arrangements.

As of December 31, 2025, we had $ million in cash, cash equivalents and investments. Based on our current operating plan, we estimate that our existing cash, cash equivalents and investments as of the date of this prospectus, will be sufficient to fund our projected operating expenses and capital expenditure requirements through . We have based this estimate on our current assumptions, which may prove to be wrong, and we may exhaust our available capital resources sooner than we expect. To finance our operations beyond that point, we will need to raise substantial additional capital. Until we can generate significant revenue from product sales, if ever, we expect to finance our operations through a combination of public or private equity offerings, debt financings and collaborations and licensing arrangements. In addition, we may seek additional capital due to favorable market conditions or strategic considerations, even if we believe we have sufficient funds for our current or future operating plans.

***Macroeconomic Trends***

Economic conditions, such as rising inflation, higher interest rates, instability at banking and financial institutions, international trade tensions and tariffs, changes in regulatory laws and monetary exchange rates, and government fiscal policies, can also have a significant effect on operations. Moreover, negative macroeconomic conditions could adversely impact our ability to obtain financing in the future on terms acceptable to us, or at all. In addition, the geopolitical instability and related sanctions could have significant impact on global financial markets, including volatility in the United States and global financial markets.

**Collaborations and License Agreements** 

***Regents Exclusive License Agreements***

On September 25, 2018, we entered into an exclusive license agreement with the Regents of the University of California, or the Regents, which was amended and restated on September 24, 2020, or, as amended from time to time, the UCB Exclusive License Agreement. Under the UCB Exclusive

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License Agreement, the Regents granted us an exclusive, worldwide license, with the right to grant sublicenses, under the Regents' rights in specified patent rights relating to RNA-guided nucleic acid modifying enzymes and methods of use thereof and variant Type V CRISPR/CAS effector polypeptides, which we collectively refer to as CasX and CasY, to make, have made, use, have used, sell, offer to sell and import products and services and practice methods involving CasX and CasY (to the extent covered by the licensed patent rights) for treatment of all human diseases (except infectious viral diseases and diagnostic applications). The Regents also granted us a non-exclusive, worldwide license, with the right to grant sublicenses, under the same Regents' patent rights as described above to make, have made, use, have used, sell, offer to sell and import products and services and practice methods involving use of CasX and CasY for agricultural, veterinary, industrial bio-production and environmental applications (excluding diagnostic applications). The UCB Exclusive License Agreement is subject to the Regents' retained rights to make and use the patented inventions, licensed products, services and methods and associated technology, and to allow other educational and non-profit institutions, including the Howard Hughes Medical Institute, to do so for educational and research purposes and certain rights of the U.S. government due to federal funding of research giving rise to the patent rights licensed to us by the Regents.

Under the UCB Exclusive License Agreement, we are obligated to diligently proceed with the development manufacture, and sale of licensed products, services and methods in quantities sufficient to meet market demand. We are also obligated to meet certain clinical stage development, regulatory approval, and commercial milestones by certain specified achievement dates. If we do not meet a milestone by the applicable achievement date or opt to not extend such date, the Regents may terminate the UCB Exclusive License Agreement or change our exclusive license to a non-exclusive license.

In consideration for the rights granted under the UCB Exclusive License Agreement, we (i) paid a $0.1 million upfront license fee, (ii) issued to the Regents 756,370 shares of our common stock, (iii) issued to the Regents a warrant to purchase 440,133 shares of our common stock with an exercise price per share equal to $0.52 per share that expires upon the earlier of the ten-year anniversary of its issuance, the closing of our initial public offering or upon a change of control and (iv) agreed to pay an annual license maintenance fee of $50,000 beginning from September 2019.

We may also be required to pay up to $27.7 million in future development and regulatory milestone payments and up to $3.6 million in future commercial milestone payments with respect to all licensed products, and royalties at percentage rates ranging in the low to mid-single digits on future net sales by us and our sublicensees of licensed products, services and methods, if any, subject to certain minimum annual royalty payments following commercialization. Such royalties may be increased if we or our sublicensees challenge the patent rights licensed to us by the Regents and decreased if we are required to pay a third party for rights to intellectual property in order to produce or practice a licensed product, service or method, but such decrease would not apply to royalties owing to net sales made by our sublicensees. The foregoing royalties will be payable to the Regents until the expiration of all patent rights licensed to us by the Regents. Additionally, we are required to pay a specified percentage of non-royalty sublicensing revenue we receive including cash and premium paid on equity under any sublicensing agreements, subject to certain exceptions.

The term of the UCB Exclusive License Agreement will expire on the date of the last-to-expire valid claim under the Regents' patent rights licensed to us. As of December 2025, we estimate that the last patent right licensed under the UCB Exclusive License Agreement will expire in 2039, without giving effect to any potential patent term extensions or patent term adjustments. We may terminate the UCB Exclusive License Agreement in whole or as to any portion of the Regents' patent rights upon a specified written notice period. The Regents have the right to terminate the UCB Exclusive License Agreement, upon written notice, in the event we violate or fail to perform any term of the UCB Exclusive License Agreement, subject to a notice and cure period.

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***Acuitas Agreements***

*Development and Option Agreement* 

On November 7, 2022, we entered into a development and option agreement, or the Acuitas Development and Option Agreement, with Acuitas Therapeutics, Inc., as supplemented and amended from time to time, the Acuitas Agreement. Under the Acuitas Development and Option Agreement, we and Acuitas agreed to conduct a program to evaluate and develop product candidates combining our gene editing technology and the lipid nanoparticle, or LNP, technology of Acuitas.

The Acuitas Development and Option Agreement provides us the option to enter into non-exclusive, worldwide license agreements with respect to reserved human genome targets, with the right to sublicense (subject to certain restrictions), under Acuitas' patent rights and know-how covering its LNP technology to exploit licensed products for all human therapeutic or prophylactic uses. We may exercise our option with respect to a specified number of products directed to reserved targets (each of which we refer to herein as an Option). Under the Acuitas Development and Option Agreement, we may non-exclusively reserve certain targets for potential use in the program.

In consideration for the rights granted under the Acuitas Development and Option Agreement, we paid a technology access fee of $0.4 million for each Option. We are also obligated to pay to Acuitas an annual target reservation fee of $0.1 million per target for each target we elect to reserve until we exercise our Option with respect to such target or such target is removed from the list of reserved targets. Upon exercising an Option to enter into a non-exclusive license agreement for a human genome target, we will be required to pay Acuitas a $3.0 million option exercise fee, subject to reduction by the target reservation and maintenance fees that are creditable against the option exercise fee for the applicable target.

The term of the Acuitas Development and Option Agreement will expire on November 7, 2027. We have the right to terminate the Acuitas Development and Option Agreement in its entirety upon a specified written notice period. Additionally, either party can terminate the Acuitas Development and Option Agreement for the other party's uncured material breach or bankruptcy.

*License Agreement* 

If we exercise our Option to enter into a non-exclusive license agreement for any licensed product, we agreed to enter into a pre-negotiated license agreement pursuant to which we will be required to pay Acuitas an annual license maintenance fee of $0.8 million until the first dosing of the first patient in the first Phase 1 study for a licensed product, up to $20.0 million in future development and regulatory milestone payments, or the Acuitas Development and Regulatory Milestone Payments, and up to $40.0 million in future commercial milestone payments, or the Acuitas Commercial Milestone Payments, per licensed product. We will also be obligated to pay Acuitas royalties, the Acuitas Royalties, at percentage rates in the low single digits on future net sales of licensed products by us and our sublicensees, subject to reduction under certain customary conditions. The royalties will be payable on a country-by-country and licensed product-by-licensed product basis commencing on the first commercial sale of a licensed product in a country and continuing until the latest of: (i) the expiration of the last to expire valid claim of a licensed patent that covers such licensed product in such country, (ii) expiration of regulatory exclusivity for such licensed product in such country, and (iii) ten years from the first commercial sale of such licensed product in such country.

In December 2023, we exercised an Option with respect to a licensed product and a licensed genome target and entered into a non-exclusive, worldwide license with Acuitas, with a right to sub-license through multiple tiers, under the licensed LNP technology to research, develop and commercialize the licensed products using the LNP technology, or the Acuitas License Agreement.

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The Acuitas License Agreement is substantially in the form of pre-negotiated license agreement described above and attached as an exhibit to the Acuitas Development and Option Agreement. The non-refundable Option exercise fee of $2.9 million was recognized in December 2023 as a research and development expense. To the extent achieved, we are also obligated to make the respective Acuitas Development and Regulatory Milestone Payments, the Acuitas Commercial Milestone Payments and the Acuitas royalties with respect to the licensed product.

The term of such license agreement will expire on a licensed product-by-licensed product and country-by-country basis upon the expiration of our obligation to pay royalties to Acuitas with respect to such licensed product in such country. We will have the right to terminate such license agreement in its entirety upon a specified written notice period. Additionally, either party will be able to terminate such license agreement for the other party's uncured material breach or bankruptcy.

***Sanofi – 2023 in vivo Exclusive License Agreement***

On June 19, 2023, we entered into an exclusive license agreement, or the 2023 Sanofi License Agreement, with Genzyme Corporation, a Sanofi affiliate. Under the 2023 Sanofi License Agreement, we granted Sanofi, an exclusive, worldwide, license, with the right to sublicense (subject to certain restrictions), under any patent rights and know-how that are owned or controlled by us relating to our CRISPR CasXE genome editing technologies and target specific gRNA molecules for the research, development, manufacture, and commercialization of *in vivo* gene editing therapies directed to sickle cell disease, with an option to expand to additional targets for the diagnosis, prevention and treatment of any disease, but excluding infectious viral diseases.

Under the 2023 Sanofi License Agreement, we are obligated to use commercially reasonable efforts to use our proprietary screening systems and know-how to identify potential gRNA molecules for Sanofi's licensed targets and provide Sanofi with details regarding such potential gRNA molecules while Sanofi is responsible for all other activities.

In consideration for the rights granted under the 2023 Sanofi License Agreement, we received an upfront payment of $40.0 million, approximately $15.0 million through December 31, 2025 in fees and milestones and may receive up to an additional $410.0 million in aggregate in payments for nomination fees, research, development and regulatory milestones, and up to $825.0 million in aggregate in commercial milestones for all targets (assuming one licensed product is developed for each licensed target), as well as tiered royalties ranging from the high single-digit to low teens percentages on future net sales of licensed products, if any, subject to reduction under certain specified conditions. The royalties will be payable on a country-by-country and licensed product-by-licensed product basis commencing on the first commercial sale in a country and continuing until the latest of: (i) the date on which the sale of such licensed product would no longer infringe a valid claim in such country, (ii) expiration of regulatory exclusivity of such licensed product in such country, or (iii) a low-two digit number of years from the first commercial sale of such licensed product in such country.

We also have a right to opt into global development cost sharing, as well as co-promotion and profit and loss sharing in the United States on one future licensed target. In the event we exercise our opt-in right on one future licensed target, the development and regulatory milestone payments applicable to the licensed products directed to such licensed target will be subject to reduction and the royalty rates for sales of the associated product outside of the United States will be subject to certain upward adjustments. In the event we exercise our opt-in right and subsequently opt-out, the royalty rates may be subject to certain upward adjustments.

The term of the 2023 Sanofi License Agreement will expire on a licensed product-by-licensed product and country-by-country basis upon the expiration of Sanofi's obligation to pay royalties to us,

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or, if applicable, the cost sharing term. Sanofi has the right to terminate the 2023 Sanofi License Agreement with respect to a licensed product, licensed target or in its entirety for convenience, upon a specified notice period. If Sanofi terminates the 2023 Sanofi License Agreement for convenience, we have a right of first negotiation for a license under certain of Sanofi's intellectual property rights developed under the 2023 Sanofi License Agreement that covers the terminated licensed products. We have the right to terminate the 2023 Sanofi License Agreement in the event that Sanofi or its affiliate or sublicensee brings any legal action seeking to invalidate any licensed patent. Additionally, either party can terminate the 2023 Sanofi License Agreement for the other party's uncured material breach or bankruptcy.

***Prevail Therapeutics, Inc. – Exclusive License and Collaboration Agreement***

On May 11, 2023, we entered into a license and collaboration agreement, or the Lilly License Agreement, with Prevail Therapeutics, Inc., a wholly owned subsidiary of Eli Lilly and Company, for research and development collaborations and granting to Prevail exclusive license rights under patents and technology for certain products. Under the Lilly License Agreement, we granted to Prevail an exclusive, worldwide license, with the right to sublicense (subject to certain restrictions), under any patent rights and know-how that are owned or controlled by us that are necessary or reasonably useful for research, development, and manufacturing of *in vivo* gene editing therapies that incorporate a CasX editor for the development of *in vivo* therapies directed to specified targets known to cause serious neurological and neuromuscular diseases, but with respect to certain of the patent rights excluding certain infectious viral diseases. Prevail is obligated to use commercially reasonable efforts to obtain regulatory approval for at least one licensed product directed to each licensed target in the United States and at least one other major market country.

As consideration for the licensed rights, we received upfront consideration of a $45.0 million cash payment. In addition, Prevail has paid us $5 million in research and development milestone payments through December 31, 2025 and we may receive up to an additional $155 million in aggregate research and development milestone payments and up to $1.4 billion in aggregate commercial milestone payments (in each case, assuming one licensed product is developed for each licensed target and we have not opted into profit and loss sharing, discussed below), as well as, tiered royalties (subject to reductions) in the mid-single digit to low teens percentages on annual worldwide net sales of such licensed product. The royalties will be payable on a licensed product-by-licensed product and country-by-country basis, from the date of first commercial sale of such licensed product in a country until the latest of (i) the expiration of the last valid claim within the licensed patent rights covering such licensed product in the country in which such licensed product is made, used or sold, (ii) the expiration of the data, regulatory or market exclusivity periods conferred by the applicable regulatory authority in such country with respect to such licensed product, and (iii) the tenth anniversary following the date of the first commercial sale of such licensed product in such country.

We also have a right to opt in to development cost sharing, as well as profit and loss sharing in the United States on one licensed target. In the event we exercise our opt-in right, the commercial milestone payments applicable to licensed products directed to such licensed target will be subject to reduction and the royalty rates for sales of the co-developed product outside of the United States will be subject to certain upward adjustments.

The agreement will expire on a licensed product-by-licensed product basis upon the later of (i) the expiration of the last to expire royalty term in the country for such licensed product and (ii) the expiration of the cost-sharing term. At any time, Prevail may terminate the agreement without cause in its entirety or on a research plan-by-research plan, licensed target-by-licensed target or licensed product-by-licensed product basis upon specified written notice. We may terminate the agreement in

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part solely with respect to a licensed patent that Prevail directly or indirectly challenges, opposes, seeks to invalidate or render void or unenforceable, subject to certain exceptions. Either party may terminate the agreement for the other party's uncured material breach.

**Components of Results of Operations** 

***Collaboration Revenue***

We have no products approved for commercial sale and to date have not generated any revenue from the sale of products and do not expect to generate any revenue from the sale of products in the near future.

Our revenue to date has been generated from payments received pursuant to collaboration and license arrangements with strategic partners. Collaboration revenue consists of revenue received from full time equivalent, or FTE, and out of pocket reimbursements, upfront, milestone and contingent payments received from our collaborators.

In addition to receiving upfront payments, we may also be entitled to milestones and other contingent payments upon achieving predefined objectives. If a milestone is considered probable of being reached, and if it is probable that a significant revenue reversal would not occur, the associated milestone amount would also be included in the transaction price.

We expect that any collaboration revenue we generate from our current collaboration and license agreements, and from any future collaboration partners, will fluctuate in the future as a result of the timing and amount of upfront, milestones and other collaboration agreement payments and other factors.

***Research and Development Expenses***

Research and development expenses consist primarily of costs incurred for the discovery and development of our product candidates. We expense both internal and external research and development expenses to operations in the periods in which they are incurred. Nonrefundable advance payments for goods or services to be received in future periods for use in research and development activities are deferred and capitalized. The capitalized amounts are then expensed as the related goods are delivered and as services are performed. We do not currently track our research and development expenses by individual projects or product candidates.

Internal research and development costs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs to acquire reagents, chemicals, for in house lab research and preclinical studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses related to laboratory supplies and services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses related to laboratory related software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• External research and development consist primarily of costs incurred for the development of our product candidates and
include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fees paid to third parties such as contract research organizations to conduct our discovery, research and development
programs, preclinical activities, animal trials and regulatory operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs to acquire, develop and manufacture supplies for clinical trials and preclinical studies, including fees paid to
third parties such as contract manufacturing organizations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost to obtain and maintain licenses to intellectual property, such as fees paid under the UCB Exclusive License
Agreement and fees paid to Acuitas.

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Employee-related expenses include payroll and personnel expenses, including benefits and stock-based compensation expenses. Facilities and overhead costs include depreciation of research and development equipment, allocated overhead and other facilities-related expenses. Professional and consulting fees include fees paid to third party consultants and contractors supporting research, development and regulatory activities.

We historically do not track our research and development costs by project category, primarily because we use our employee and infrastructure resources across multiple research and development programs that we are advancing in parallel, and therefore we do not allocate salaries, stock-based compensation, employee benefit expenses or other indirect costs related to our research and development to specific product candidates.

We expect our research and development expenses to increase substantially for the foreseeable future as we identify product candidates, conduct further preclinical studies, Investigational New Drug application, or IND-enabling, studies and clinical trials for any such product candidates, continue to invest in research and development activities for discovery programs and preclinical studies, pursue regulatory approvals and expand our pipeline. The process of conducting the necessary preclinical and clinical research to obtain regulatory approvals is costly and time-consuming. To the extent that any product candidates advance to, and continue to advance through, clinical trials, our research and development expenses will continue increasing substantially and may become more variable. The actual probability of success for such product candidates may be affected by a variety of factors, including the safety and efficacy of such product candidates, investment in our clinical programs, the ability of collaborators to successfully develop our licensed product candidates, manufacturing capability, competition with other products and commercial viability. As a result of these variables, we are unable to determine if, when and to what extent we will generate revenue from the commercialization and sale of any potential product candidates. We may never succeed in achieving regulatory approval for any product candidates.

***General and Administrative Expenses***

General and administrative expenses consist primarily of payroll and personnel expenses, including benefits and stock-based compensation, facilities-related expenses and professional fees for legal, accounting, consulting and audit, tax services, consulting fees related to human resources, intellectual property and business development. We expect our general and administrative expenses to increase for the foreseeable future as we continue to grow, improve our infrastructure and operate as a public company. This will include additional expenses related to compliance with the rules and regulations of the Securities and Exchange Commission, or SEC, and listing standards applicable to companies listed on a national securities exchange, director and officer insurance premiums, investor relations activities and other administrative and professional services. We also expect our intellectual property expenses to increase as we expand our intellectual property portfolio.

***Interest Income and Other Income, Net***

Interest and other income, net primarily consists of interest earned on our cash, cash equivalents and marketable securities. We expect interest income to vary each reporting period depending on our average bank deposit, money market fund and marketable securities balances during the period and market interest rates.

***Interest Expense***

Interest expense consists of coupon interest accrued on the convertible note that we issued to Lilly in May 2023.

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***Change in Fair Value of Convertible Note***

Change in fair value of convertible note consists of fair value adjustments on the convertible note payable at each reporting period.

***Provision for Income Taxes***

The provision for income taxes primarily consists of estimates for federal taxes payable and reserves for unrecognized tax benefits and state taxes. We have generated net operating losses, or NOLs, since inception and have established a full valuation allowance against our deferred tax assets due to the uncertainty surrounding the realization of such assets.

**Results of Operations** 

Our results of operations for the years ended December 31, 2024 and 2025 are summarized as follows (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended<br>December 31,** | **Year ended<br>December 31,** | **Change** |
|  | **2024** | **2025** | $**%** |
|  Collaboration revenue | $27413 | $| $— |
|  Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development | 57079 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 13163 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 70242 |  |  |
|  Loss from operations | (42829) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income and other income, net | 6154 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (2381) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of convertible note | 1495 |  |  |
|  Net loss before provision for income taxes | (37561) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | (10225) |  |  |
|  Net loss | $(47786) | $| $— |

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*Collaboration Revenue* 

The following table summarizes our collaboration revenue for the years ended December 31, 2024 and 2025 (dollars in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended<br>December 31,** | **Year ended<br>December 31,** | **Change** |
|  | **2024** | **2025** | $**%** |
|  Prevail | $17354 | $| $— |
|  Sanofi | 10053 |  |  |
|  Other | 6 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total collaboration revenue | $27413 | $| $— |

---

Collaboration revenue was $27.4 million for the year ended December 31, 2024 and $ million for the year ended December 31, 2025. Revenue recognized in the year ended December 31, 2025 related to Sanofi was $ million compared to $10.1 million in the year ended December 31, 2024.

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*Research and Development Expenses* 

The following table summarizes our research and development expenses for the years ended December 31, 2024 and 2025 (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended<br>December 31,** | **Year ended<br>December 31,** | **Change** |
|  | **2024** | **2025** | $**%** |
|  Internal research expenses | $12324 | $| $— |
|  External research and development | 13170 |  |  |
|  Employee-related expenses | 22306 |  |  |
|  Facilities and overhead costs | 7499 |  |  |
|  Professional and consulting fees | 1780 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total research and development | $57079 | $| $— |

---

Research and development expenses was $57.1 million for the year ended December 31, 2024 and to $ million for the year ended December 31, 2025.

*General and Administrative expenses* 

General and administrative expenses was $13.2 million for the year ended December 31, 2024 and $ million for the year ended December 31, 2025.

*Interest Income and Other Income, Net* 

Interest income and other income, net was $6.2 million for the year ended December 31, 2024 and $ million for the year ended December 31, 2025.

*Interest Expense and Change in Fair Value of Convertible Note* 

Interest expense and change in fair value of convertible note increased by $ million due to the recognition of coupon interest of 8% on the Convertible Note issued in May 2023 as well as the change in fair value of the convertible note from inception to December 31, 2025.

*Provision for Income Taxes* 

Provision for income taxes was $10.2 million for the year ended December 31, 2024 and $ million for the year ended December 31, 2025.

**Liquidity, Capital Resources and Capital Requirements** 

***Sources of Liquidity***

Since our inception, we have incurred significant operating losses and negative cash flows from our operations. From inception through December 31, 2025, our operations have been primarily funded the proceeds from collaboration and license agreements of $ million, net proceeds from equity offerings of $ million and $ million from issuance and sale of convertible notes.

As of December 31, 2025, we had $ million in cash, cash equivalents and short-term investments, $ million in outstanding indebtedness and an accumulated deficit of $ million. Based on our current operating plan, we estimate that our existing cash, cash equivalents and investments as of the date of this prospectus, together with the estimated net proceeds from this

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offering, will be sufficient to fund our projected operating expenses and capital expenditure requirements through . We have based this estimate on our current assumptions, which may prove to be wrong, and we may exhaust our available capital resources sooner than we expect. Because of the numerous risks and uncertainties associated with therapeutic product development, we may never achieve or maintain profitability and, unless and until we are able to commercialize a product candidate, if ever, we will continue to be dependent upon equity financing, debt financing, and other forms of capital raises. If we are unable to raise capital as and when needed or on attractive terms, we may have to significantly delay, reduce, or discontinue the development and commercialization of our product candidates or scale back or terminate our pursuit of new in-licenses and acquisitions.

As of December 31, 2025, we had a convertible note with an aggregate principal amount of $30.0 million outstanding, with a stated interest rate of 8% and a maturity of May 11, 2026. Upon the closing of the offering to which this prospectus relates, the convertible note will automatically convert into shares of common stock at a 15% discount to the initial public offering price. The convertible note also contains other settlement provisions if an initial public offering does not occur.

***Future Funding Requirements***

We expect that our existing cash, cash equivalents and investments are sufficient to meet our cash requirements and continue operating activities for at least the next 12 months. We will need substantial additional funding to support our continuing operations and pursue our long-term business plan. Our primary uses of cash are to fund our operations, which consist primarily of research and development expenditures related to our programs and, to a lesser extent, general and administrative expenditures. We anticipate that we will continue to incur significant and increasing expenses for the foreseeable future as we continue to advance potential product candidates, expand our corporate infrastructure, including the costs associated with being a public company, further our research and development initiatives for potential product candidates, and incur costs associated with the potential commercialization of any product candidates, if approved. We are subject to all of the risks typically related to the discovery and development of potential product candidates, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect our business.

Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued expenses, and prepaid expenses.

Our future funding requirements will depend on many factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing, results, cost and progress of preclinical studies and clinical trials for our lead product candidate, STX-1150, our STX-1200 and STX-1400 development programs and any other future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number and scope of preclinical and clinical programs we decide to pursue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs of manufacturing any product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the progress and success of developing our ELXR and XE technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of regulatory submissions and timing of regulatory approvals, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the progress of the development efforts of parties with whom we have entered into licenses, collaborations and strategic
partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing and amount of milestone and other payments we are obligated to make under our licensing agreements, including
the UCB Exclusive License Agreements, Acuitas Agreement and any future license agreements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cash requirements of any future acquisitions of, and the discovery of, product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to establish and maintain collaborations, strategic partnerships or marketing, distribution, licensing or other
strategic arrangements with third parties on favorable terms, if at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to achieve sufficient market acceptance, adequate coverage and reimbursement from third-party payors and
adequate market share and revenue for any approved product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs involved in prosecuting and enforcing patent and other intellectual property claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of commercialization activities if any product candidates are approved for sale, including marketing, sales and
distribution costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our efforts to enhance operational systems and hire additional personnel, including personnel to support development of any
product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential delays in our preclinical studies and clinical trials, if any, due to unforeseen events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our need to implement additional internal systems and infrastructure, including financial and reporting systems to satisfy
our obligations as a public company.

Furthermore, our operating plans may change, and we may need additional funds to meet operational needs and capital requirements for clinical trials and other research and development expenditures sooner than we expect.

Until such time as we can generate significant revenue from product sales, if ever, we expect to finance our operations through public or private equity or debt financings, or potentially other capital sources, such as collaboration or licensing arrangements with third parties or other strategic transactions. There are no assurances that we will be successful in obtaining an adequate level of financing to support our business plans when needed, on acceptable terms, or at all. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders may be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise additional funds through collaboration or licensing arrangements with third parties or other strategic transactions, we may have to relinquish rights to our intellectual property, 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 capital as and when needed or on attractive terms, we may have to significantly delay, reduce, or discontinue the development and commercialization of potential product candidates or scale back or terminate our pursuit of new in-licenses and acquisitions.

***Contractual Obligations and Commitments***

Our contractual obligations mostly consist of our noncancelable operating lease obligations for the lease of approximately 28,400 square feet of our office and lab facilities in Alameda, California. Our total operating lease commitments as of December 31, 2025, were approximately $ million, of which $ million is expected to be paid within the next twelve months. As of December 31, 2025, the remaining lease term is 3.8 years.

Under the UCB Exclusive License Agreements, we are obligated to make future development, regulatory and commercial milestone payments in total of up to $31.3 million and royalties on future sales at percentage rates ranging in the low single digits.

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In addition, we enter into agreements in the normal course of business with contract research organizations and vendors for preclinical studies and other services and products for operating purposes, which are generally cancelable upon written notice.

***Cash Flows***

The following table summarizes our cash flows for the periods presented (in thousands):

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| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2025** |
|  Cash used in operating activities | $(45235) | $|
|  Cash provided by investing activities | 13013 |  |
|  Cash used in financing activities | (222) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in cash and cash equivalents | $(32444) | $|

---

*Operating Activities* 

Cash used in operating activities for the year ended December 31, 2024 of $45.2 million consisted of our net loss of $47.8 million, adjusted for non-cash charges of $7.8 million, and net cash outflows from changes in our operating assets and liabilities of $5.2 million. Non-cash charges consisted primarily of depreciation of $2.9 million, stock-based compensation of $2.8 million, non-cash interest expense of $2.4 million, net amortization on investment securities of $0.6 million and amortization of right-of-use asset of $0.4 million, offset by a decrease in fair value of the convertible note of $1.5 million. Cash outflows from changes in our operating assets and liabilities consisted primarily of a decrease in receivables from collaboration partners of $1.5 million, a decrease in deferred revenue of $6.8 million, decrease in accounts payable of $1.9 million, decrease in accrued liabilities of $2.0m and a decrease in operating lease liabilities of $1.0 million, offset by an increase in other non-current liabilities of $8.9 million.

Cash used in operating activities for the year ended December 31, 2025 of $ million consisted of .

*Investing Activities* 

Cash provided by investing activities for the year ended December 31, 2024 of $13.0 million consisted of maturities of investments of $138.4 million, offset by purchases of investments of $124.0 million and purchases of property and equipment of $1.3 million.

Cash used in investing activities for the year ended December 31, 2025 of $ million consisted of .

*Financing Activities* 

Cash used in financing activities for the year ended December 31, 2024 of $0.2 million consisted of $0.5 million in proceeds from the exercise of stock options, offset by payments of deferred offering costs of $0.7 million.

Cash provided by financing activities for the year ended December 31, 2025 of $ million consisted of .

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**Recent Accounting Pronouncements** 

A description of recently issued and adopted accounting pronouncements that may potentially impact our financial position, results of operations or cash flows is disclosed in Note 2 to our audited annual financial statements for the periods ending December 31, 2024, and 2025 included in this Prospectus.

**Critical Accounting Estimates** 

Our management's discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting principles, or GAAP. The preparation of these financial statements requires us 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 financial statements, as well as the reported expenses incurred during the reporting periods. We monitor and analyze estimates and assumptions for changes in facts and circumstances, and material changes in these estimates and assumptions could occur in the future. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Changes in estimates are reflected in reported results for the period in which they become known. Actual results may differ from these estimates under different assumptions or conditions.

Although our significant accounting policies are described in more detail in Note 2 to our audited consolidated financial statements included in this Prospectus, we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our financial statements.

***Revenue Recognition***

Our revenues are primarily derived through research and license agreements. The terms of these types of agreements may include (i) licenses for our technology, (ii) research and development services, and (iii) services or obligations in connection with our participation in research or governance committees. Payments to us under these arrangements typically include one or more of the following: nonrefundable upfront license fees, milestones, and other contingent payments to us for the achievement of defined collaboration objectives and certain preclinical, clinical, regulatory, and sales-based events, as well as royalties on sales of any commercialized products.

We analyze our collaboration arrangements to assess whether they are within the scope of Accounting Standards Codification, or ASC, Topic 808, *Collaborative Arrangements*, or ASC 808, to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. In making this assessment we first determine which elements of the collaboration are deemed to be within the scope of ASC 808 and those that are more reflective of a vendor-customer relationship and, therefore, within the scope of ASC Topic 606, *Revenue from Contracts with Customers*, or ASC 606. For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606.

We assess whether the promises in our arrangements with customers are considered distinct performance obligations that should be accounted for separately. Judgment is required to determine whether a license to our intellectual property is distinct from research and development services or participation on research or governance committees.

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For elements of those arrangements that we determine should be accounted for under ASC 606, we assess which activities in the collaboration agreements are performance obligations that should be accounted for separately and determine the transaction price of the arrangement, which includes the assessment of the probability of achievement of future milestones and other potential consideration. A performance obligation represents a promise in a contract to transfer a distinct good or service to a customer, which represents a unit of accounting in accordance with ASC 606. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. We consider a performance obligation satisfied once we have transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. A portion of the consideration should be allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The total consideration that we expect to collect in exchange for our products is an estimate and may be fixed or variable. We constrain the estimated variable consideration when we assess it is probable that a significant reversal in the amount of cumulative revenue recognized may occur in future periods. The transaction price is re-evaluated, including the estimated variable consideration included in the transaction price and all constrained amounts, in each reporting period and as uncertain events are resolved or other changes in circumstances occur. The allocation of the transaction price is performed based on standalone selling prices, which are based on estimated amounts that the Company would charge for a performance obligation if it were sold separately. Revenue is recognized when, or as, performance obligations in the contracts are satisfied, in the amount reflecting the expected consideration to be received from the goods or services transferred to the customers. Funds received in advance are recorded as deferred revenue and are recognized as the related performance obligation is satisfied. Amounts payable to us are recorded as accounts receivable if invoiced or as contract assets when our right to consideration is unconditional.

For arrangements which include development-based milestones, sales-based milestones or sales-based royalties the Company recognizes revenue once the performance obligation related to the milestone or royalties are satisfied, or when the related sales occur.

***Accrued Research and Development Expenses***

As part of the process of preparing our financial statements, we are required to estimate our accrued research and development expenses, including those related to preclinical studies and product candidate manufacturing. We record the estimated costs of research and development activities based upon the estimated services provided and include these costs in accrued liabilities in the balance sheets and within research and development expenses in the statements of operations and comprehensive loss. Our accruals for services provided are based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service providers. We estimate the amount of work completed by our third-party service providers through discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fee to be paid for such services. When we make advance payments for goods or services that will be used or rendered for future research and development activities, the payments are deferred and capitalized as a prepaid expense and recognized as expense as the goods are received or the related services are rendered. Such payments are evaluated for current or long-term classification based on when they are expected to be realized.

***Stock-Based Compensation Expense***

Stock-based compensation expense related to awards to employees and non-employees is measured at the grant date based on the fair value of the award. Stock-based compensation awards

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are subject to either service or performance based vesting conditions. The fair value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service period of the awards with service based vesting conditions, which is generally the vesting period, and is adjusted for pre-vesting forfeitures in the period in which the forfeitures occur. For performance-based awards, we recognize compensation based on the grant date fair value over the service period using the accelerated attribution method to the extent achievement of the performance condition is probable

We use the Black-Scholes-Merton, or Black-Scholes, option-pricing model as the method for determining the estimated fair value of stock-based awards. The Black-Scholes model considers several variables and assumptions in estimating the fair value of each stock option that requires judgment. Changes in these variables and assumptions can materially affect the resulting estimates of fair value. These variables and assumptions include the per unit fair value of the underlying common units, expected term, expected volatility, risk-free interest rate, and expected dividend rate as follows:

*Fair Value of Common Stock* - The fair value of our common stock is determined by the Board of Directors with assistance from external valuation experts. Our approach to estimate the fair value of our common stock is consistent with the methods outlined in the American Institute of Certified Public Accountants' Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation.

*Expected term* - The expected term represents the period that the stock-based awards are expected to be outstanding. The expected term for our stock options is calculated based on the weighted-average vesting term of the awards and the contract period, or simplified method.

*Expected volatility* - The expected volatility is estimated based on the historical volatilities of common stock of comparable publicly traded entities over a period equal to the expected term of the stock option grants. Comparable companies are chosen based on their size, stage in the life cycle or area of specialty.

*Risk-free interest rate* - The risk-free interest rate is based on the implied yield currently available on US Treasury zero-coupon issues with a term that is equal to the options' expected term at the grant date.

*Expected dividend* - We have never paid dividends on the common stock and have no plans to pay dividends on the common stock. Therefore, we use an expected dividend yield of zero.

The fair value of restricted stock awards is their grant date fair value.

See Note 11 to our audited financial statements included elsewhere in this prospectus for information concerning certain of the specific assumptions we used in applying the Black-Scholes option pricing model to determine the estimated fair value of our stock options granted in the periods presented.

***Determination of the Fair Value of Common Stock***

As there has been no public market for our common stock, the estimated fair value has been determined by our board of directors as of the date of each award grant. These determinations were made with input from management and were informed by independent third-party valuations. Our board considered a variety of objective and subjective factors to determine the fair value of our common stock, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the prices, rights, preferences, and privileges of our preferred stock relative to those of our common stock;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our stage of development and the progress of our research and development efforts in in vivo genetic medicines and
CRISPR-based technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the competitive landscape for our lead product candidate and development programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial condition and operating results, including levels of available capital resources and the presence of
convertible notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the lack of marketability of our common stock and an estimated time to a liquidity event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• external market conditions, including the performance of biotechnology-specific indices and comparable publicly traded
companies.

We obtained third-party independent valuations of our common stock as of December 31, 2024 and June 30, 2025. These valuations were considered by our board of directors in determining the fair value of our common stock. These valuations were performed in accordance with the framework of the American Institute of Certified Public Accountants' Accounting and Valuation Guide, *Valuation of Privately-Held-Company Equity Securities Issued as Compensation*.

Where possible, the estimates of the fair value of our common stock were based on the Indexing Method, which is a form of the Market Approach. Under the Indexing Method, we estimated the total fair value of our shareholders' equity by adjusting prior valuation results based on an assessment of relevant market data and company-specific events. This included analyzing the equity value movements of a peer group of comparable public biotechnology companies, industry-specific exchange-traded funds, and broader market indices such as the Nasdaq Composite and S&P 500.

In these valuations, the value of our common stock was allocated using the Option Pricing Method, or OPM. The OPM treats common securities and preferred securities as call options on the total equity value of the company, with strike prices based on the value thresholds at which the allocation among the various holders of a company's securities changes. These strike prices were set based on the specific liquidation preferences of our Series B, Series A, Series A-1, and Series A-2 preferred stock, as well as the exercise prices of our outstanding warrants and stock options. Under this method, the common stock has value only if the funds available for distribution exceed the value of the preferred security liquidation preferences at the time of a liquidity event, such as a strategic sale or merger.

The determination of the fair value of our common stock requires management to make significant estimates and assumptions. These valuations are based on management's best assessment of numerous objective and subjective factors, which involve inherent uncertainties and the application of substantial judgment. Had we used different assumptions or if factors regarding our business or market conditions were to change, the resulting fair value of our common stock and the related stock-based compensation expense could have been materially different

Following the closing of this offering, the fair value of our common stock will be determined based on the closing price as reported on the date of grant on the primary stock exchange on which our common stock is traded.

**Quantitative and Qualitative Disclosures About Market Risks** 

***Interest Rate Risk***

The primary objectives of our investment activities are to ensure liquidity and to preserve capital. We are exposed to market risks related to changes in interest rates of our cash equivalents and short-term investments. However, due to the short-term nature of these cash equivalents and investments,

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we do not believe that a hypothetical 10% increase or decrease in interest rates during any of the periods presented would have had a material effect on our financial statements included elsewhere in this prospectus.

***Foreign Currency Exchange Risk***

All of our employees and our operations are currently located in the United States and our expenses are primarily denominated in U.S. dollars. Our expenses are denominated in both U.S. dollars and foreign currencies. Therefore, our operations are and will continue to be subject to fluctuations in foreign currency exchange rates. To date, foreign currency transaction gains and losses have not been material to our financial statements, and we have not had a formal hedging program with respect to foreign currency. We do not believe that a hypothetical 10% increase or decrease in exchange rates during any of the periods presented would have had a material effect on our financial statements included elsewhere in this prospectus.

***Effects of Inflation***

Inflation generally affects us by increasing our cost of labor and research and development costs. We do not believe that inflation had a material effect on our business, results of operations, or financial condition, or on our financial statements included elsewhere in this prospectus.

**Emerging Growth Company Status** 

We qualify as an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012, or JOBS Act. As an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include: (i) being permitted to present only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure in this Prospectus; (ii) reduced disclosure about our executive compensation arrangements; (iii) not being required to hold advisory votes on executive compensation or to obtain stockholder approval of any golden parachute arrangements not previously approved; (iv) an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002; and (v) an exemption from compliance with the requirements of the Public Company Accounting Oversight Board regarding the communication of critical audit matters in the auditor's report on the financial statements.

We may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company on the date that is the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (ii) the last day of our fiscal year following the fifth anniversary of the date of the completion of this offering; (iii) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the SEC. We may choose to take advantage of some but not all of these exemptions.

We have taken advantage of reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different from the information you receive from other public companies in which you hold stock. Additionally, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have

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elected to avail ourselves of this exemption and, therefore, while we are an emerging growth company, we will not be subject to new or revised accounting standards at the same time that they become applicable to other public companies that are not emerging growth companies. As a result of this election, our financial statements may not be comparable to those of 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.

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**BUSINESS** 

**Overview** 

We are a biotechnology company pioneering highly engineered CRISPR technologies designed to reshape the treatment of disease by enabling earlier intervention, improved outcomes, and longer, healthier lives. While current genetic medicines are largely limited to rare disorders, we are engineering our technologies for use in common diseases affecting millions of persons. By targeting prevalent diseases with significant unmet need and high clinical burden we aim to usher in a new era of broadly scalable, transformative, and preventative genetic medicines. Our focus is on cardiovascular and metabolic, or CVM, diseases with initial programs to address the key drivers of atherosclerotic cardiovascular disease, or ASCVD. We are designing CRISPR-based genetic medicines to be well-tolerated, effective, durable and scalable enough to shift the treatment paradigm from symptom-driven intervention and chronic care to population-level prevention, with the goal of broadly democratizing access to the cardioprotective effects of known genetic variants. Our lead product candidate, STX-1150, utilizes our epigenetic silencing technology and is designed to deliver persistent and potent LDL-C reductions without permanent genetic changes. STX-1150 is a demonstration of executing on our goal, with the potential to transform adherence and real-world therapeutic outcomes for patients in the multibillion-dollar LDL-C lowering landscape. We have submitted a Clinical Trial Notification, or CTN, for STX-1150 with the Australian regulatory authority in December 2025, and anticipate beginning to dose patients with STX-1150 in .

Every 40 seconds, someone in the United States suffers a heart attack, and each year, heart disease costs the nation more than $400 billion, according to the American Heart Association, or AHA. Despite major advances in our understanding of the pathology of heart disease and ASCVD, and the development of new classes of pharmaceuticals, we believe today's standard of care for ASCVD is insufficient. Existing treatments fail to demonstrate broad impact as they suffer from underwhelming efficacy, well documented side effects, and onerous polypharmacy treatment burden, leading to poor uptake, low adherence and limited real-world effectiveness. Patients often discontinue therapy due to loss of insurance, high out-of-pocket costs, or the logistical burden of ongoing clinic visits. Moreover, treatment is often initiated only after substantial cumulative arterial injury or an acute cardiovascular event. These limitations of the current treatment paradigms underscore the importance of developing durable therapies that can be administered safely earlier in the course of disease and provide compelling health-economic value to payers.

We believe that fundamentally different therapeutics are required to meaningfully address ASCVD. To realize this vision, we are executing on a differentiated strategy that applies a full stack engineering approach coupling generative artificial intelligence, or AI, and machine learning, or ML, with massively parallel experimental validation to optimize and tailor CRISPR technologies for the precise demands of each therapeutic application. Through this proprietary approach which we refer to as CRISPR by Design, we systematically evaluate disease biology, target genetics, and commercial opportunities against product requirements to engineer the most appropriate and scalable solution for each therapeutic application. This disciplined, data-driven strategy has led us to engineer two proprietary technologies based on a novel CRISPR-CasX enzyme: the Epigenetic Long-Term X-Repressor, or ELXR, designed for precise, durable epigenetic silencing without altering the underlying DNA sequence; and the X-Editor, or XE, designed for efficient gene editing. Rather than committing to a single technology upfront, we advance multiple approaches in parallel and prioritize the modality that demonstrates the most favorable safety, durability, and efficacy profile for each product candidate based on empirical data. We believe this engineering-led, evidence-based strategy, combined with a technology stack purpose-built for broad patient populations, positions us to develop competitive and scalable genetic medicines across a wide range of cardiovascular indications. We are advancing three in vivo product candidates targeting three key lipid drivers of ASCVD: elevated low-density lipoprotein cholesterol, or LDL-C, elevated lipoprotein(a), or Lp(a), and elevated triglycerides carried by triglyceride-rich lipoproteins, or TRLs.

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Our lead product candidate, STX-1150, is an epigenetic silencing therapy that is based on our ELXR technology and is designed to durably lower LDL-C by repressing the expression of PCSK9, a genetically and clinically validated target. Inhibition of PCSK9 is among the most effective known mechanisms to reduce LDL-C, complementing or outperforming other existing therapies. Unlike CRISPR gene editing, base editing, or prime editing approaches, STX-1150 is designed to achieve long-lasting therapeutic benefit without permanently altering the underlying DNA sequence. STX-1150 aims to improve on the real-world efficacy of small molecule, antibody and siRNA therapies by eliminating the need for years to decades of repeat medication.

In a study in NHPs, a single dose of a prototype STX-1150 was generally well-tolerated and produced therapeutically meaningful, durable LDL-C reduction of greater than 50% sustained for nearly 18 months. Durable and early LDL-C lowering of this magnitude has been demonstrated in human genetic studies to reduce ASCVD risk by up to 88%, underscoring the potential to transform the current treatment paradigm from late-stage intervention to effective prevention. The large and expanding LDL-C lowering market is characterized by a persistent gap between efficacy observed in controlled settings and real-world outcomes. We believe STX-1150's long-acting epigenetic mechanism could increase current adherence rates that are typically only 40–50%, which could drive superior clinical outcomes for patients through increased adherence-adjusted efficacy and compelling health-economic value for payors while avoiding the risks of permanent genetic modification. Given that ASCVD is a chronic condition, we believe improvements in adherence could compound over time to drive better clinical outcomes, enabling more efficient payer management and broadening patient access. As a result, we believe STX-1150 has the potential to expand the growing market for PCSK9-based LDL-C–lowering medicines. While the PCSK9 inhibitor class generates approximately $4 billion in annual sales, it reaches less than 1% of eligible patients. We submitted a CTN with the Australian regulatory authority in December 2025 and anticipate beginning to dose patients in .

Our next programs, STX-1200 and STX-1400, target two additional lipid drivers of ASCVD, elevated Lp(a) and severely high triglycerides, by editing the *LPA* and *APOC3* genes, respectively. Both programs are based on our XE technology and aim to provide curative outcomes to genetic diseases associated with the modification of these targets.

In mouse models of disease, prototype versions of both STX-1200 and STX-1400 programs have achieved greater than 90% reduction in target gene expression with durable activity consistent with a one-time treatment profile. In NHPs, surrogates demonstrated greater than 95% Lp(a) reduction and greater than 75% *APOC3* on-target editing, respectively. In an off-target analysis of primary human hepatocyte donor cells, no detectable off-target editing was observed even at supersaturating doses, which we believe underscores the potential precision and safety of these prototypes and further supports the potential of our highly engineered XE technology.

Elevated Lp(a) and high triglycerides represent large and causal risk factors for ASCVD. Roughly one in five individuals globally has elevated Lp(a) defined as greater than 50 mg/dL, representing over 1 billion individuals that have a two to four-fold increased risk of premature heart attack and aortic stenosis. Recent genetic studies suggest that lifetime Lp(a) lowering of greater than 90% could reduce ASCVD events by up to 70%. In addition, patients with genetically driven severe hypertriglyceridemia (such as FCS, or multifactorial chylomicronemia) face recurrent pancreatitis and a high burden of morbidity. Despite newly approved RNA targeting approaches, durable triglyceride lowering remains challenging, and existing treatments require chronic administration to solve a lifelong problem. A one-time, curative gene-editing approach like STX-1400 could address an estimated over 100,000 high-risk patients worldwide, while also enabling potential expansion into broader patient populations where durable triglyceride lowering may lead to ASCVD risk reduction.

We anticipate nominating development candidates and initiating IND-enabling studies for STX-1200 and STX-1400 in .

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Taken together, STX-1150, STX-1200, and STX-1400 exemplify and are enabled by our proprietary CRISPR by Design approach, which applies a systematic, data-driven process to optimize naturally occurring bacterial immune systems into a suite of genome and epigenome editing tools with favorable activity, specificity, and deliverability. We believe this approach allows us to rigorously address the fundamental pillars of safety, effectiveness, durability, and scalability in our development of genetic medicines, with the goal of setting a new benchmark for *in vivo* CRISPR applications in large patient populations.

Our disciplined operating model, complemented by upfront and milestone payments from our strategic collaborations, has allowed us to operate with a high degree of capital efficiency. We believe our CRISPR by Design approach enables us to advance target concepts to development candidates quickly, with the potential to materially reduce discovery timelines and associated costs. Our strategic collaborations — including with Sanofi in rare genetic diseases, such as sickle cell disease, and Lilly in CNS disorders — leverage the commercial and delivery expertise of leading biopharmaceutical companies while demonstrating the versatility of our technologies. Since our founding in 2018, we have raised approximately $150.0 million in equity financing, with only one dilutive financing in the past four years, while maintaining significant ownership and optionality across both our internal program portfolio and our collaboration programs. Since the groundbreaking discovery of CRISPR-based genome editing by our co-founder, Nobel Laureate Dr. Jennifer Doudna, the extraordinary potential for genetic medicine has become increasingly clear. We were founded on the thesis that comprehensive CRISPR system engineering and optimization are required to address the activity, specificity, and delivery limitations of earlier technologies. We believe our engineering-first philosophy has enabled us to become one of the only companies to create two wholly novel and therapeutically relevant CRISPR technologies derived from a unique CRISPR enzyme foundation enabling a durable intellectual property portfolio. Our deliberate focus on cardiovascular and metabolic diseases further differentiates us by driving the creation of technologies capable of serving some of the most prevalent and debilitating genetically driven conditions worldwide.

***Our portfolio***

Our initial programs focus on three causal lipid drivers of ASCVD: elevated LDL-C, elevated Lp(a) and severely elevated triglycerides, which can be modified by targeting the genetically and clinically validated *PCSK9*, *LPA*, and *APOC3* genes, respectively. We believe that addressing these genetic risk factors is fundamental to transforming the prevention and treatment of ASCVD. Our wholly-owned pipeline is outlined below:

![LOGO](g21355g00a01.jpg)

*Our lead product candidate, STX-1150 targeting PCSK9 for LDL-C lowering* 

STX-1150 utilizes LNP delivery of our ELXR technology to repress the expression of the *PCSK9* gene by installing epigenetic marks that durably regulate gene transcription without changing the underlying DNA sequence. Inhibition of the *PCSK9* gene is among the most effective known

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mechanisms to reduce LDL-C. Individuals born with loss-of-function variants in the *PCSK9* gene live with meaningfully lower baseline LDL-C and experience up to 88% lower risk for coronary heart disease without any distinguishable adverse effects from lifetime lower LDL-C levels.

In *in vivo* studies in both murine and NHP models, a STX-1150 prototype achieved up to 90% reduction of circulating PCSK9 protein and up to 68% reduction of LDL-C. Epigenetic silencing with the STX-1150 prototype has been observed for more than 300 days in mice and nearly 18 months in NHPs, consistent with a highly durable treatment profile significantly greater than other *PCSK9* gene inhibiting therapies which are dosed chronically.

*STX-1200 targeting LPA* 

STX-1200 utilizes LNP delivery of our XE technology to precisely edit and inactivate the *LPA* gene. Variants in the *LPA* gene drive elevated Lp(a) levels, which confer a two- to four-fold increased risk of premature heart attack and aortic stenosis. Elevated Lp(a) affects up to 20% of the global population, is genetically determined, and has no approved therapies.

In preclinical studies, prototype constructs of STX-1200 have shown greater than 95% reduction in secretion of apolipoprotein(a), or apo(a), the defining component of Lp(a), in primary human hepatocytes and murine models. Off-target safety studies have shown no detectable editing at more than 100 top-nominated genomic sites, even at ten times supersaturating doses in primary human hepatocyte donor cells.

*STX-1400 targeting APOC3* 

STX-1400 utilizes LNP delivery of our XE technology to reduce expression of the *APOC3* gene, aiming to increase clearance of triglyceride-rich lipoproteins. Severely elevated triglycerides represent a third independent risk factor for ASCVD and have been shown to dramatically increase rates of pancreatitis. Variants in the *APOC3* gene are strongly associated with high triglyceride levels and cardiovascular risk, while loss-of-function *APOC3* gene variants are linked to lifelong low triglycerides and reduced ASCVD incidence. Inhibition of the *APOC3* gene has been shown to be a safe and effective means of reducing triglyceride-associated acute pancreatitis by more than 80%, making it a valuable target to treat familial chylomicronemia syndrome, or FCS, and expand into triglyceride, or TG, driven ASCVD risk with further study.

In preclinical studies, prototype constructs of STX-1400 have demonstrated greater than 95% reduction of *APOC3* expression in primary human hepatocytes and murine models, with off-target safety studies having shown no detectable editing across more than 100 top-nominated genomic sites, even at ten times supersaturating doses in primary human hepatocyte donor cells. Potency testing of surrogate molecules in NHPs achieved saturating gene-editing levels exceeding 75% of the whole liver at therapeutically relevant doses.

*Future pipeline opportunities* 

We believe that our ELXR and XE technologies have applications beyond targeting *PCSK9*, *LPA* and *APOC3*. We are expanding our pipeline with several additional cardiometabolic programs in the discovery stage. As genetic risk factors for health conditions are further characterized, we strive to bring precisely engineered CRISPR-based medicines to the forefront of treatment in other high impact indications such as obesity, metabolic dysfunction-associated steatohepatitis, or MASH, and other cardiometabolic related disorders. In addition, we may also pursue opportunities to expand the impact of our technologies into broader therapeutic areas through opportunistic collaborations.

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*Our partnered programs* 

Beyond our wholly owned pipeline, we are collaborating with leading global biopharmaceutical companies on specific genetic targets in other therapeutic areas where our precision-engineered CRISPR-based technologies can address urgent unmet medical needs. These collaborations provide significant value through upfront payments, research funding, milestone payments, and royalties, as well as options for limited co-development participation. To date, we have received over $175 million in upfront, milestone, and expense reimbursement payments in total from these collaborations. We believe these collaborations validate the versatility and scalability of our engineering-first approach while generating meaningful near- and long-term value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In our collaboration with Sanofi, we apply our XE technology to develop *in vivo* CRISPR-based therapies for sickle
cell disease, and other genetic diseases

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In our collaboration with Lilly, we combine our CRISPR by Design approach with Lilly's expertise in the development
of genetic medicines for neurological and neuromuscular disorders.

Together, we believe these efforts position us to become a leading developer of scalable *in vivo* CRISPR-based medicines capable of addressing some of the world's most prevalent and preventable diseases.

***History and team expertise***

As a founder-led company, we have maintained both a long-term vision of developing highly engineered CRISPR-based medicines for prevalent cardiometabolic diseases, and a focus on disciplined capital efficient execution. We were founded to advance CRISPR technologies developed in the lab by our co-founders: Dr. Jennifer Doudna, Nobel Laureate and the co-discoverer of CRISPR-Cas9 genome engineering technology; Dr. Benjamin Oakes, our Chief Executive Officer; Dr. David Savage, Professor of Molecular and Cell Biology at the University of California, Berkeley and a thought leader in structural biology and protein engineering; and Dr. Brett Staahl, our Vice President of External Innovation, a pioneer in *in vivo* and *ex vivo* CRISPR delivery technology. Based on our deep understanding and extensive hands-on experience engineering and applying CRISPR and other gene editing technologies, we believe we have a strong foundation to build upon in advancing a groundbreaking new approach to CRISPR technology that has the potential to transform human medicine.

Since our inception, we have assembled a diverse group of individuals that includes:

**Leaders in genetic medicines and proven company builders.** Our co-founder and Chief Executive Officer, Dr. Oakes, has spent his entire professional and academic career engineering and developing genetic medicine technologies and has co-authored numerous publications and patent applications across molecular engineering, genome editing, and epigenetic modification. Our Chief Financial Officer, David L. Parrot, has more than 25 years of experience as an investment banker helping private and public life sciences companies raise capital and execute strategic transactions. Our Chief Business Officer, Dr. Svetlana Lucas, brings over 20 years of experience in strategy, commercialization, and business development leadership having completed numerous business development transactions across the spectrum of pharmaceutical and biotechnology companies.

**Experienced scientists and engineers dedicated to creating and developing the future of genetic medicine.** Our broader scientific leadership team has deep experience in the genome editing space. The leaders of our discovery, development, technology operations, and program management teams have decades of industry experience combined and have been involved in more than 60 IND and CTA submissions.

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**World renowned scientific advisory board composed of genetic medicine pioneers.** Our scientific advisory board includes distinguished leaders in genetic medicine and is led by Nobel Laureate Dr. Doudna and Dr. Savage and includes Dr. Kausik Ray, a world-renowned and recognized leader in clinical research focused on cardiovascular disease.

**Deeply knowledgeable and experienced board of directors and investors.** Our board of directors is composed of established company builders, executives, scientists, and investors. In addition, we have attracted a knowledgeable group of investors, including Andreessen Horowitz, Avoro Capital, Menlo Ventures, OrbiMed, Perceptive Advisors, RA Capital, T. Rowe Price, and Wellington Management, among others. Prospective investors should not rely on the past investment decisions of our investors, as our investors may have different risk tolerances and have received their shares in prior offerings at prices lower than the price offered to the public in this offering. In addition, some of these investors may not be subject to reporting requirements under Section 16 of the Exchange Act, and, thus, prospective investors may not necessarily know the total amount of investment by each of our existing investors and if and when our existing investors may decide to sell any of their shares. See the sections titled "Principal Stockholders" for more information and current holdings of these stockholders.

***Our engineered CRISPR platform technologies***

Over the last decade, CRISPR-Cas9 has progressed from fundamental science to a widely adopted research tool and, more recently, a therapeutic modality; however, important technical limitations have become evident. We believe these limitations arise in part because many CRISPR-based technologies are derived with limited modification from naturally occurring microbial immune systems and have not been comprehensively engineered for use in human therapeutic settings. Even newer fusion-based approaches, such as base editing, prime editing, and Cas9-based epigenetic modulation, largely rely on these same foundational CRISPR designs and have been translated rapidly from academic research without extensive optimization for clinical performance.

Rather than aligning exclusively with any single wave of CRISPR technology, we hold the conviction that realizing the therapeutic potential of CRISPR-based medicines requires deliberate selection and closed-loop engineering of a CRISPR technology best suited to a given disease. This view is informed in part, by the technological evolution observed in the antibody and RNAi fields, where early iterations of these technologies initially demonstrated limited clinical impact until successive rounds of engineering substantially improved therapeutic index. To that end, we have designed our organization to pursue an engineering-first strategy that prioritizes novel technology development in service of defined clinical and commercial objectives for a particular target. We then systematically evaluate disease biology, target genetics and delivery constraints while incorporating continuous feedback from disease models to guide successive rounds of optimization for a specific therapeutic application. In support of this approach, we have developed a suite of proprietary engineering methodologies, including machine learning–based models coupled with massively parallel experimental validation, to create and refine our CRISPR-based technologies: ELXR, designed for precise, durable epigenetic silencing of genes without changing the underlying DNA sequence, and XE designed to support specific and efficient gene editing.

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![LOGO](g21355g10a02.jpg)

**ELXR** is our epigenetic silencing technology designed to durably and reversibly repress gene expression without altering the underlying DNA sequence. ELXR uses a nuclease-inactivated, CasX-derived CRISPR protein fused to epigenetic effector domains to install histone modifications and DNA methylation marks at specified genomic loci, mimicking natural epigenetic processes to provide long-term, tunable silencing of disease-causing genes while maintaining genomic integrity. Uniquely, ELXR incorporates an allosteric regulatory domain, adding a built-in specificity control that is designed to reduce off-target effects and improve safety, as well as maintain or enhance on-target activity, differentiating ELXR from Cas9-based epigenetic editors used in the field or in the clinic. In addition, ELXR's reversibility and inherent specificity may make it particularly well suited for applications where permanent genome modification is less desirable. We believe ELXR represents a fundamental advancement and likely endpoint in the evolution of mRNA-silencing technologies, potentially addressing the durability limitations inherent to existing modalities such as siRNAs and ASOs. Whereas these existing approaches require repeated dosing over months to maintain target suppression, ELXR is designed to sustain clinically meaningful mRNA reduction over years without

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permanently altering the underlying DNA sequence. Unlike existing therapies that demonstrate significant attenuation of effect outside controlled clinical settings, this level of durability has the potential to enable sustained, clinical trial-level target suppression in real-world use. We anticipate this attribute will be particularly important in chronic diseases such as cardiovascular disease where long-term adherence and consistent target modulation are critical determinants of outcomes.

**XE** is our gene-editing technology designed for precise and versatile genetic modification. It utilizes a staggered DNA cleavage mechanism to achieve high on-target activity, specificity, and flexibility across a range of applications, including gene knock-out, knock-down, knock-in, exon skipping, genetic excision, and other targeted modifications. A data-driven and iterative campaign has engineered our novel CasX enzyme, XE, with improved nuclease stability, DNA binding, cleavage activity, and specificity, resulting in greater than 100-fold higher editing than naturally occurring CasX in cell-based assays while maintaining exquisite specificity across target sites. Taken together with its compact size and engineered PAM, recognition, providing a differentiated combination of potency, specificity, delivery flexibility relative to Cas9 and other Cas12-based editing systems. We believe XE combines high efficiency with a well-characterized mechanism of action and a broad therapeutic window, providing the potential for durable, one-time treatments for genetically defined diseases.

Both ELXR and XE were purposefully engineered to exhibit high activity, specificity, durability, and deliverability across multiple tissues, cell types and species. In NHP and other preclinical studies, our ELXR and XE technologies have demonstrated consistent performance across numerous organ systems, supporting their potential applicability to a wide range of *in vivo* therapeutic settings. Given this performance, we have conducted and will continue to utilize preclinical head-to-head development and testing of multiple CRISPR technologies *in vivo* to determine the best technology for the job. We believe the demonstrated breadth and precision of our CRISPR engineering approaches represent a key differentiator for us. These capabilities have enabled the rapid construction of our pipeline focused on cardiometabolic diseases and the execution of multiple strategic collaborations spanning *in vivo* sickle cell disease and central nervous system disorders. We believe this broad pipeline validates the versatility of our technologies and their relevance across multiple high-value therapeutic categories.

We also believe our intellectual property, or IP, position benefits from our utilization of our proprietary CRISPR-CasX enzyme. The IP landscape for CRISPR is extensive and heavily weighted to Cas9, with over 10,000 patent applications claiming Cas9-based technologies. We believe this landscape creates complexity for the development and commercialization of Cas9-based genetic medicines. In contrast, we have developed proprietary, highly engineered CasX-based technologies. We apply an evergreen engineering and filing strategy that continues to generate novel and improved compositions of our technologies that are intended to support a durable IP portfolio.

***Our strategy***

We are committed to pioneering highly engineered CRISPR technologies designed to fundamentally reshape the treatment of highly prevalent disease by enabling earlier intervention, improved outcomes, and longer, healthier lives. Our focus is on CVM diseases, where we are designing CRISPR-based genetic medicines to democratize the effects of known protective genetic variants more broadly.

The key components of our strategy are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Advance the clinical development of our lead program, STX-1150, for potent and persistent LDL-C lowering:** STX-1150 is designed to provide a novel therapeutic solution for potent and persistent LDL-C lowering for more than 200 million people in the United States and Europe. STX-1150 leverages our ELXR epigenetic CRISPR technology to durably silence

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PCSK9, a key regulator of LDL-C metabolism in the liver, without permanently altering the underlying DNA sequence. STX-1150 is designed to address the limitations of other PCSK9 targeting approaches. We submitted a CTN for STX-1150 with the Australian regulatory authority in December 2025, and anticipate dosing patients in . <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Develop STX-1200 and STX-1400 for elevated Lp(a) and triglycerides, respectively:** Our next programs are currently near development candidate stage and are designed to extend our technologies into two additional genetically defined lipid disorders: elevated lipoprotein(a) and
elevated triglycerides. Both programs use our XE gene-editing technology, which enables precise, permanent modification of disease-associated genes. STX-1200 targets *LPA* to reduce Lp(a), an established
genetic driver of ASCVD, while STX-1400 targets *APOC3* to lower triglycerides and reduce the risk of pancreatitis and cardiovascular events. We anticipate nominating development candidates and initiating IND-enabling studies for STX-1200 and STX-1400 in    .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Expand our pipeline into other prevalent cardiometabolic indications with high unmet need:** We are expanding our
wholly-owned pipeline to treat other prevalent diseases that have substantial unmet need and are associated with high morbidity and mortality. The focus on cardiometabolic diseases reflects our prioritization of indications where standard of care
therapies leave significant unmet needs which we believe our CRISPR-based technologies can effectively address. The tunable, modular nature of our technologies enables highly specific genetic interventions, making it possible to apply them towards a
variety of highly prevalent and debilitating diseases with the goal of broadly democratizing access to the cardioprotective effects of known genetic variants. We plan to expand into additional indications where durable genetic modulation could
deliver meaningful clinical benefit, including obesity, MASH, and other cardiometabolic and related diseases where genetic mechanisms are beginning to be established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Leverage our CRISPR by Design approach to continue optimizing and evolving our technologies**: We have strategically
chosen to invest in engineering two initial CRISPR-based technologies built on our novel CasX enzyme, ELXR silencing and XE editing, which enable distinct genetic modification outcomes. We seek to maintain our position at the leading edge of
CRISPR-based therapeutics by continuously enhancing our technologies across various areas, including activity and selectivity. Leveraging our proprietary CRISPR by Design approach, we employ iterative engineering cycles and data-driven, AI-powered optimization to enhance enzyme activity, guide specificity, and delivery performance. This continuous engineering flywheel accelerates the evolution of our CRISPR-based technologies which we can apply
towards developing durable genetic medicines for patients worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Develop manufacturing strategies and partner capabilities to enable scalable production of genetic medicines:** We are
investing in process development, analytical testing, and manufacturing capabilities to ensure efficient clinical translation and future commercial scalability. We are currently working with Good Manufacturing Practice, or GMP, vendors to produce
all components of our drug candidates for our first clinical trial batches. We have successfully executed batches at clinical scale through our vendors and are on track to produce clinical batches for our planned first-in-human trial of STX-1150. We have also developed proprietary production processes designed to yield high-purity and high-quality mRNA that are crucial for *in vivo* liver editing applications. Our goal is to build a sustainable genetic-medicine company capable of delivering safe, effective, and durable CRISPR-based therapies at population scale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Expand the impact of our proprietary CRISPR-based technologies through strategic collaborations:** We recognize that
our CRISPR-based platforms have the potential to create life-changing genetic medicines in indications beyond the scope of our CVM focus. We are committed to broadening and accelerating the potential impact of our platforms in other therapeutic
areas, and plan to do so in a capital efficient manner by pursuing strategic collaborations. To date, we have entered into development collaborations outside of

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cardiometabolic diseases, including with Sanofi for *in vivo* therapeutics for hemoglobinopathies and with Lilly for neurological and neuromuscular indications. We believe our approach to business development allows us to focus internal efforts and capital resources on our core cardiometabolic pipeline while seeking to further maximize the potential for patient impact through our collaborators. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Continue to execute with capital discipline and operational efficiency as we expand our portfolio:** We are
intentionally structured to operate with scientific and disciplined execution enabling capital efficiency. We believe our deep technical understanding of CRISPR's potential and current limitations combined with our proprietary engineering
approach enables efficient execution with relatively lower capital investment and headcount than is typical for genetic medicine development. For example, our CRISPR by Design<sup></sup>approach has in
prior programs supported advancement of target concepts to highly engineered candidates within approximately twelve months. We believe this approach can reduce discovery timelines and associated costs while supporting improvements in molecular
potency and specificity. This capital efficiency is further supported by our utilization of strategic collaborations. To date, we have raised approximately $150 million in equity financing while maintaining significant ownership and strategic
optionality across both our internal cardiovascular medicine portfolio and our partnered programs. We believe this focused operating model has allowed us to build a sustainable and uniquely capital-efficient genetic medicine company.

***The imperative for better ASCVD disease outcomes***

Today's healthcare model often relies on treating disease once it becomes symptomatic, emphasizing acute care over long-term outcomes and quality of life. Patients seeking to maximize their health span have limited control, as care decisions are shaped by a complex network of stakeholders with misaligned incentives, as well as administrative, coverage, and economic barriers that can prevent initiation or continuation of effective therapies. We see a meaningful opportunity to transform healthcare from symptomatic treatment to early prevention by leveraging genetic medicine that aligns treatment decisions with the patient's best disease outcome in a durable way, reducing frictions across the care pathway and enabling patients to regain control over their long-term health trajectory.

Nowhere is this paradigm shift more urgent than in ASCVD. In the United States alone, nearly half of all adults, or over 120 million individuals, carry some form of cardiovascular disease. ASCVD in particular is expected to impact more than 61% of adults in the United States by 2050. In addition, mortality associated with cardiovascular disease has increased significantly, accounting for about 30% of all deaths in 2021, a trend that is expected to accelerate due to demographic factors such as an aging population and worsening metabolic health. ASCVD has not only impaired patients' health and quality of life but also imposed a significant economic burden on the healthcare system. It incurred an estimated $422 billion in annual direct and indirect costs in 2019–2020 in the United States, and is projected to incur $1.8 trillion in total costs by 2050, straining both public and private healthcare systems.

We believe today's standard of care for ASCVD is insufficient as existing treatments suffer from significant access, efficacy, durability and adherence issues, often leaving patients underserved and financially straining the healthcare system. Clinical guidelines typically begin with lifestyle modification, followed by pharmacologic therapy, most often statins as first-line lipid-lowering agents. If treatment goals are not met, clinicians may layer on combination regimens. Despite this tiered escalation of treatment, 75% of patients never reach optimal treatment goals where the underlying disease is well managed. Overall, existing treatments fail to achieve broad, lasting impact due to limited disease-relevant durability, significant treatment burdens from polypharmacy requirements, and diminishing real-world effectiveness as adherence declines over time.

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In addition, emerging but critical causal lipid drivers for ASCVD, including Lp(a), TRLs, and remnant cholesterol, remain largely undertreated. These drivers are infrequently measured in routine clinical practices and there is a lack of available and effective pharmacotherapies, representing a significant unmet need.

***Leveraging nature's blueprint for better cardiovascular health***

Elevated LDL-C, Lp(a) and triglycerides are well understood to be causal drivers of dyslipidemia and eventually ASCVD. Recent genetic studies and randomized controlled trials demonstrate that reducing lifetime exposure to these risk factors is critical to preventing ASCVD. We believe durable genetic medicines have the potential to address the ASCVD treatment gap, and nature provides a blueprint to address each of these three risk factors via cardioprotective variants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **LDL-C and the *PCSK9* gene**: Elevated LDL-C levels in the bloodstream, which is characterized as hypercholesterolemia, can promote the formation of plaques in arterial walls, restricting blood flow and increasing the risk of heart attacks and strokes.
Inhibition of *PCSK9* is among the most effective known mechanisms to reduce LDL-C. Individuals born with loss-of-function variants in the *PCSK9* gene live with meaningfully lower baseline LDL-C and experience up to 88% lower risk for coronary heart disease without any distinguishable adverse effects from lifetime lower LDL-C levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Lp(a) and the *LPA* gene**: Elevated Lp(a) **  is another prominent causal risk
factor for ASCVD independent of LDL-C, affecting an estimated 20% of the general global population, making it possibly the most prevalent genetic disease known to humans. Elevated Lp(a) is associated with an
increased risk of ASCVD, even when LDL-C is well controlled, due to its role in promoting clot formation, inflammation, and plaque buildup. While population levels of Lp(a) are normally low, specific *LPA* variants associated with higher levels of Lp(a) drive two to four-fold increased risk of premature heart attack and aortic stenosis, as well as up to a 50% increase in stroke and overall cardiovascular mortality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Triglycerides and the *APOC3* gene**: Elevated levels of TRLs carrying remnant cholesterol are an
independent causal risk factor for ASCVD, and cause other devastating morbidities such as acute pancreatitis. Levels of TRLs account for a significant portion of residual cardiovascular risk in patients with LDL-C under control on statin therapy. Studies have now shown that individuals with loss-of-function mutations in the *APOC3* gene have 39% lower triglyceride levels than the general population, with a 40% lower risk of developing coronary heart disease.

Taken together, these preventative blueprints from naturally occurring genetic variants affecting the three primary causal lipoprotein families support a treatment paradigm that aims to recapitulate the baseline cardioprotective outcomes from genetic variants in *PCSK9*, *LPA,* and *APOC3* for a lifetime of reduced lipid exposure. We believe that fixing the chronic care model in ASCVD will come not from adding another pill to the regimen or slightly modifying existing modalities, but rather from a genetic medicine solution that can deliver nature's genetic blueprint for better cardiovascular health to all patients. Focusing a new class of genetic medicines on these three targets has the potential to address the overwhelming majority of lipid-mediated ASCVD risk, providing a long-term solution for cardiovascular health and for the first time reshape how this disease is treated.

***CRISPR by Design—Delivering Nature's Blueprint for treating ASCVD***

We hold the conviction that highly engineered CRISPR technologies are required to evolve genetic medicines from limited solutions for rare genetic disorders to scalable solutions for patients suffering from widespread diseases.

Since our inception, we have purposefully built our CRISPR-based technologies including ELXR and XE, to address broad patient populations, including those suffering from or at risk for ASCVD.

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Through our proprietary CRISPR by Design approach, we systematically evaluate disease biology, target genetics and delivery constraints, against product requirements to engineer the most appropriate and scalable solution for each therapeutic opportunity. This disciplined, data-driven strategy incorporates empirical, head-to-head development and testing of distinct CRISPR technologies and has led us to create two complementary CRISPR platforms designed to address a broad spectrum of cardiovascular diseases. We believe our purpose-built CRISPR-based technologies can meet or exceed the high safety bar through rigorous and disciplined molecular engineering to substantially reduce the risk for off-target editing, achieve high potency to enable therapeutically relevant editing at lower doses, and lower risk of random genetic translocations or bystander edits that have been observed in more primitive Cas9-based systems. This level of non-negotiable commitment to safety and efficacy is the foundation for regulatory confidence and population-level adoption for novel treatment modalities such as genetic medicines.

We believe this comprehensive strategy maximizes our opportunity to develop well-tolerated, effective, durable, and scalable CRISPR-based therapies with the goal of establishing a new standard of care for large patient populations while empowering individuals to achieve long-term control of their own genetic health in order to prevent disease from occurring versus treating symptoms.

The benefit of such genetic therapies on humanity could be profound. A world largely free of ASCVD would return value at an unprecedented level in the form of millions of lives saved each year, higher quality of life for the millions trapped in a cycle of suboptimal chronic care, and recovered healthcare expenditure from avoided medical expenses. In the case of ASCVD, even partial risk reduction could generate significant economic value, as the AHA estimates that the US spends over $400 billion per year in healthcare costs related to uncontrolled ASCVD. We believe a significant portion of this spend could be avoided with a genetic medicine that broadens patient access to safe, effective, and durable therapy. The future of ASCVD care is clear: safe and durable genetic medicines which can transform cardiovascular care from treating symptoms to preventing disease via nature's blueprint for better cardiovascular health providing significant value to the healthcare system and society, and most importantly, potentially transforming patients' lifespan and health span.

Our initial cardiometabolic disease programs focus on three genetically validated targets: *PCSK9*, *LPA*, and *APOC3*, which modify key lipid drivers of ASCVD. We believe that addressing these genetic risk factors is fundamental to transforming the prevention and treatment of ASCVD. To this end, we are advancing our ELXR epigenetic silencing technology for PCSK9 and our XE gene-editing technology for *LPA* and *APOC3* genes, using a data-driven approach to align each target with the optimal modality.

**Elevated LDL-C: Causal risk factor for ASCVD** 

A key contributor to ASCVD is low-density lipoprotein cholesterol, or LDL-C, often referred to as "bad" cholesterol. Elevated LDL-C levels in the bloodstream can promote the formation of plaques in arterial walls, restricting blood flow and increasing the risk of serious cardiovascular events, like heart attack and stroke. In most people, LDL particles constitute approximately 90% of circulating lipoproteins in fasting blood, and as a result, calculated plasma LDL-C, an easily measurable surrogate for LDL particle concentration, has become the focus for assessing cardiovascular risk and for evaluating pharmaceutical efficacy.

Extensive clinical evidence demonstrates a consistent, dose-dependent relationship between reduction in LDL-C exposure and reduction in ASCVD risk, as well as the importance of reducing LDL-C earlier and longer. Mendelian randomization studies show that variants across 50+ genes that lower LDL-C—including in drug targets like *HMGCR*, *NPC1L1*, and *PCSK9*—also lower ASCVD risk, supporting LDL as a causal driver of ASCVD. Randomized clinical trial data further confirm this finding.

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A meta-analysis from European Atherosclerosis Society covering over 200 studies and over 150,000 cardiovascular events demonstrates a remarkably consistent dose-dependent log-linear association between the absolute magnitude of LDL-C burden and the risk of ASCVD. In addition, nearly 50 cardiovascular-outcomes trials across statin and nonstatin therapies such as ezetimibe, bempedoic acid and PCSK9 inhibitors have shown that lowering LDL-C directly reduced the risk of a cardiovascular event by 23% per unit of LDL-C lowering. Furthermore, recent studies using computational methods suggest that there is a stepwise decrease in ASCVD risk for each decade earlier in life that LDL-C lowering is initiated. Although aggressive LDL-C lowering initiated later in life can slow plaque progression, the plaque burden that accumulated prior to therapy initiation still persists and may lead to an acute CV event. This growing body of evidence consistently demonstrates that LDL-C is not merely a biomarker of increased cardiovascular risk but a causal lipid driver in the pathophysiology of ASCVD.

**Elevated LDL-C: The Role of PCSK9** 

Inhibition of PCSK9 is among the most effective known mechanisms to reduce LDL-C. Individuals born with loss-of-function variants in the *PCSK9* gene live with meaningfully lower baseline LDL-C and experience up to 88% lower risk for coronary heart disease without any distinguishable adverse effects from lifetime lower LDL-C levels.

PCSK9 is predominantly secreted in the liver and impacts the levels of LDL-C in the bloodstream by binding to the LDL receptor, or LDLR, leading to its degradation. This degradation reduces the removal of LDL-C from circulation and subsequently leads to higher levels of circulating LDL-C. Conversely, reducing PCSK9 leads to an increase in surface expression of LDLR on cells and results in the subsequent reduction of LDL-C. Studies have shown that naturally occurring genetic variants in *PCSK9* are associated with lower plasma levels of LDL-C and confer protection against coronary artery disease, or CAD. This relationship was consistent across two independent populations and demonstrated a clear dose-response effect. In one population, individuals carrying the *PCSK9* gene with nonsense mutations, which lowered LDL-C by approximately 40 mg/dL experienced an 88% reduction in CAD incidences. In this particular population, over half had hypertension, almost one third smoked, and nearly 20% had diabetes—suggesting that a lifelong history of reduced LDL-C can significantly lower CAD risk even in the presence of multiple other non-lipid risk factors. In another population, those with the PCSK9 protein variant R46L, which lowered LDL-C by about 20 mg/dL, experienced a 50% reduction in CAD. Notably, these reductions in CAD risk from *PCSK9* genetic variants exceeded what has been achieved in clinical trials of approved LDL-lowering therapies, implying the beneficial cardioprotective effects of lifelong LDL-C reduction. Taken together, these studies suggest that the durable inhibition of the *PCSK9* gene has the potential to drive a substantial decline in cardiovascular events at a population level.

***Genetic medicines can address the unmet needs of the LDL-C treatment landscape***

Despite the wide availability of therapies including statins, bempedoic acid, and ezetimibe, patients with elevated LDL-C remain profoundly undertreated. The underwhelming efficacy, well documented side effects, burden of daily pills and recurring injections for life contribute to poor uptake and adherence and limit their real-world effectiveness. In the United States, only 20% of patients with elevated LDL-C receive any lipid-lowering therapy, with just 25% of ASCVD patients achieving guideline-recommended LDL-C goals.

The need for greater adherence and efficacy drove the development of longer-lasting therapies such as PCSK9 inhibitors. While these approaches, including monoclonal antibodies and siRNAs, are more effective and have fewer side effects than statins, persistence on therapy remains a significant challenge. An estimated 50% of patients on PCSK9 antibodies discontinue treatment within the first

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year, resulting in an adherence-adjusted efficacy of just 23% LDL-C lowering. Similarly, approximately 20% of patients receiving the twice-yearly administered siRNA inclisiran discontinue after one year, yielding an adherence-adjusted efficacy of 35%. This gap between clinical trial data and real-world outcomes translates to millions of preventable ASCVD events.

We believe durable genetic medicines enabled by our CRISPR-based platform can address these fundamental challenges and significantly impact ASCVD outcomes by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Reducing Treatment Burden—** A durable, single-course epigenetic therapy targeting PCSK9 is designed to provide
sustained LDL-C reduction without the need for chronic oral or injectable dosing. This has the potential to eliminate the lifelong burden of pill-taking, prescription refills, and repeated clinic visits,
meaningfully reducing the treatment and monitoring load for both patients and providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Enabling Disease-Relevant Durability—** Nature demonstrates that individuals with genetic loss-of-function mutations in *PCSK9* have significantly lower LDL-C levels and experience up to an 88% lower lifetime
risk of CAD. We believe a CRISPR-based genetic medicine with extended durability is uniquely suited to effectively recapitulate this natural genetic cardioprotection, offering a path to years or even decades of sustained benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Delivering Real-World Efficacy—** Unlike existing therapies whose real world efficacy is dependent on patient
behavior and access, the efficacy of a highly durable genetic medicine is independent of these factors. By sustaining a targeted level of LDL-C reduction, such a therapy could align population-level
effectiveness much more closely with the efficacy observed in randomized trials, representing a potential end state in the therapeutic evolution to manage ASCVD.

***Our solution: STX-1150 for ASCVD***

CRISPR-based epigenetic silencing therapy targeting elevated LDL-C via PCSK9 Inhibition

Our lead product candidate, STX-1150, is designed to be a single-course *in vivo* epigenetic silencing treatment targeting the *PCSK9* gene, a genetically and clinically validated target for lowering LDL-C levels and reducing cardiovascular risk. We plan to develop STX-1150 initially as a single-dose regimen for patients with high LDL-C who are at high risk but do not yet present with ASCVD, as well as for patients with stable ASCVD. In cases where a single course of treatment may not produce an adequate therapeutic effect, our approach may enable the option for re-dosing, providing flexibility in clinical use. Both the single-dose and re-dose options are supported by data generated in our preclinical studies in NHPs.

STX-1150 consists of lipid nanoparticles, or LNPs, composed of four lipids, that encapsulate an mRNA encoding our proprietary ELXR molecule together with a single *PCSK9*-targeting guide RNA, or gRNA. The ELXR molecule comprises a catalytically-inactive variant of a highly engineered CRISPR nuclease CasX fused to a DNA methyltransferase domain, an allosteric/auto-inhibitory domain, and a transcriptional repressor domain. Furthermore, we have proactively screened for and identified LNP formulations with the most favorable tolerability profiles in non-human primates. We believe that the combination of these optimized LNPs and our high potency ELXR cargo will enable effective delivery at lower doses, supporting a potentially improved safety profile and differentiated therapeutic window for our product candidate.

STX-1150 is designed to be administered via intravenous infusion over several hours, after which it accumulates in the liver. Once STX-1150 is internalized into hepatocytes of the liver, the mRNA/gRNA cargo is released into the cytoplasm, where the mRNA is translated into the ELXR protein, which complexes with the gRNA and translocates into the nucleus. Guided by the 20-nucleotide spacer

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sequence of the gRNA, the complex binds to the target sequence of the *PCSK9* gene. Subsequently, the transcriptional repressor domain of the ELXR molecule recruits endogenous epigenetic machinery to establish a local repressive chromatin environment. Meanwhile, the allosteric domain functions as a built-in checkpoint that under the appropriate chromatin context enables activation of the DNA methyltransferase enzymatic activity, engineering into the ELXR molecule an additional layer of specificity control, ultimately resulting in durable and targeted silencing of *PCSK9* transcription without cutting the DNA sequence. We believe this mechanism of action offers important safety advantages over traditional gene-editing and base editing approaches.

Key potential advantages of STX-1150 include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Reversible Epigenetic approach:** In contrast to permanent genome editing or transient antibodies and RNAi, long-acting epigenetic silencing can potentially deliver highly durable LDL-C lowering without permanent genetic mutation, addressing one of the largest unmet needs in
cardiometabolic disease management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Differentiated efficacy:** Unlike existing LDL-C lowering therapies, which
require regular dosing and are associated with real-world discontinuation rates of approximately 20-60% in one year, and result in adherence adjusted efficacy of 15-35%, STX-1150 is designed as a single-course intravenous treatment that has the potential to achieve near-universal patient adherence for years to decades without facing adherence rates that reduce real-world
efficacy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Durable PK/PD:** Our preclinical NHP studies have shown sustained LDL-C reductions of greater than 50% for nearly 18 months, supporting the potential for a robust and durable therapeutic effect. Redosing is also possible, demonstrating a mechanism for adherence adjusted efficacy with well tolerated and efficacious
redosing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Long-term patient outcome:** STX-1150's adherence-adjusted efficacy and
durability could generate significant cost savings for healthcare systems, addressing key barriers that have limited the real-world impact of current LDL-C lowering therapies. Durable and early LDL-C lowering
of this magnitude has been demonstrated in human genetic studies to reduce ASCVD risk by up to 88%, underscoring the potential to transform the current treatment paradigm from late-stage intervention to effective prevention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Attractive safety profile:** STX-1150 has been generally well tolerated in
preclinical NHP studies and has not been shown to carry permanent off-target DNA editing risk, underscoring its potential safety advantages.

We believe that persistent LDL-C lowering over the course of years to decades could translate into meaningful reductions in ASCVD risk representing a transformative opportunity to improve long-term patient outcomes. We believe STX-1150 has the potential to not only capture a meaningful share of the existing LDL-C lowering market, but also to expand it, by offering cardiologists, patients, and payers an improved therapeutic option capable of delivering clinically meaningful LDL-C reductions in a real-world setting.

***STX-1150: Data Summary***

We are developing STX-1150 to silence *PCSK9* gene expression by installing epigenetic marks using our proprietary ELXR technology. We have evaluated a prototype version of STX-1150 in preclinical studies conducted in primary human hepatocytes, transgenic mouse models, and NHPs to assess efficacy, safety, and durability. Across these studies, we have observed the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Greater than 95% reduction in secreted PCSK9 achieved by a STX-1150 prototype in
primary human hepatocytes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In NHPs, single intravenous infusion at the lowest tested dose of 0.75 mg/kg resulted in LDL-C reductions of greater than 50% that have been maintained for nearly 18 months, with liver enzyme profiles comparable to saline controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No significant off-target gene expression changes in primary human hepatocytes
treated at a supersaturating dose of STX-1150 prototype;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CMC-scaled STX-1150 drug product
demonstrated greater than or equal to 5-fold potency in primary human hepatocytes compared to primary cynomolgus monkey hepatocytes, indicating a potentially meaningful potency upside in humans relative to
NHPs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In hPCSK9 transgenic mice, a single dose of the STX-1150 drug product resulted in
potent reduction of serum PCSK9, achieving saturation at doses greater than or equal to 0.6 mg/kg;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In an NHP study, multiple doses of STX-1150 at 0.75 mg/kg achieved cumulative LDL-C reductions, reaching sustained LDL-C reductions of greater than 40% to greater than 60% over 180 days, again with liver enzyme profiles similar to those observed with
single dosing.

***Preclinical in vitro studies***

To identify the most efficacious spacer for epigenetic silencing of *PCSK9*, we conducted a high-throughput unbiased screening effort across the *PCSK9* locus. We first computationally identified a set of over 600 candidate spacers for screening, after removing gRNAs with high off-target risk predicted in silico via our proprietary algorithms. Using a pooled screening assay, we transduced human hepatoma cells with a lentiviral library encoding the candidate gRNAs, followed by transient delivery of an mRNA encoding an ELXR molecule (figure below, left). gRNA activity was quantified by measuring percent knockdown of *PCSK9* mRNA expression. Intriguingly, fewer than 5% of ELXR guide RNAs, or gRNAs, produced robust gene repression despite targeting the *PCSK9* locus, underscoring the high intrinsic specificity of ELXR epigenetic modulation and the importance of precise placement within gene regulatory architecture. These results indicate that intermediate or suboptimally positioned epigenetic modifications, including at unintended genomic sites, are unlikely to produce meaningful or durable transcriptional effects and may be reversed by endogenous cellular regulatory mechanisms, in contrast to gene-editing technologies that introduce permanent DNA sequence changes. As shown on the right in the figure below, we identified highly efficacious gRNAs that induce PCSK9 knockdown via ELXR-based epigenetic silencing from this unbiased screen. In fact, the most active spacers resulted in greater than 50% *PCSK9* mRNA knockdown cluster near the *PCSK9* transcriptional start site. One of the top-performing gRNAs was selected as the lead gRNA for STX-1150 prototype for subsequent in vitro studies.

**High-throughput pooled screening identified a lead *PCSK9*-targeting gRNA**![LOGO](g21355g00a03.jpg)

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We further evaluated and validated the in vitro activity and potency of our STX-1150 prototype by measuring its effect on secreted PCSK9 protein expression in primary human hepatocytes. In this study, primary human hepatocytes were treated with LNPs encapsulating the STX-1150 prototype and, for comparison, LNPs delivering either an adenine base editor or a dCas9-based epigenetic repressor targeting PCSK9. Secreted levels of target PCSK9 protein were measured 5 days post-treatment. As shown in the figure below, the STX-1150 prototype demonstrates robust on-target activity, leading to a dose-dependent and near complete (greater than 95%) reduction in the levels of PCSK9 secreted protein. Notably, the prototype exhibited a left-shifted dose-response curve relative to both comparator approaches, indicating a stronger potency exhibited by the STX-1150 prototype in this experiment.

**Treatment of primary human hepatocytes by STX-1150 prototype resulted in more potent secreted PCSK9 reduction compared to dead Cas9-based epigenetic editor and adenine base editor controls**![LOGO](g21355g00a04.jpg)

***Preclinical in vivo mouse studies***

We subsequently evaluated the pharmacological effects of the STX-1150 prototype, specifically to determine its effects on serum human PCSK9, or hPCSK9, protein levels *in vivo* using a transgenic mouse model. These transgenic mice have a deleted mouse *Pcsk9* locus but carry two copies of the human *PCSK9* transgene integrated into the mouse genome. Here, transgenic mice were either injected with the STX-1150 prototype at a 3.0 mg/kg dose using a partnered LNP delivery formulation or an equal volume of saline for the vehicle control group. Serum hPCSK9 levels were measured over multiple time points post-dose. Percent change in secreted hPCSK9 levels were calculated from baseline at each timepoint and plotted. As shown in the figure below, we observed a meaningful and durable reduction of serum hPCSK9 levels in transgenic mice treated with STX-1150 prototype compared to the vehicle control group for greater than 300 days. We calculated a time-weighted average reduction of 96% in serum hPCSK9 levels. The data suggest robust target engagement at, and subsequent epigenetic repression of, the human *PCSK9* locus *in vivo*.

**STX-1150 prototype induced potent, near-complete reduction of serum hPCSK9 in transgenic mice for >300 days**![LOGO](g21355g00a05.jpg)

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***Preclinical in vivo non human primates studies***

*Efficacy of STX-1150 prototype in NHPs* 

We next conducted an *in vivo* pilot study in NHPs. NHPs were dosed via single intravenous infusion of STX-1150 prototype at doses of 3.0 mg/kg, 1.5 mg/kg, 0.75 mg/kg, or saline control using a partnered LNP delivery formulation. As shown in the figure below, we observed meaningful dose-dependent reduction of circulating PCSK9, and this reduction was durable for at least 180 days for the two highest dose cohorts and for greater than 220 days for the low dose cohort of 0.75 mg/kg. We calculated a time-weighted average reduction of 90%, 84%, and 64% in serum hPCSK9 levels for the 3.0 mg/kg, 1.5 mg/kg, and 0.75 mg/kg cohorts respectively.

**STX-1150 prototype durably reduces circulating PCSK9 by up to ~90% in non-human primates**![LOGO](g21355g00m49.jpg)

Importantly, in this NHP preclinical study, we observed therapeutically meaningful reductions in blood LDL-C levels, and these reductions were durably maintained. As shown in the figure below, we observed a clear dose-dependent reduction of LDL-C levels, to as high as a time-weighted average reduction of 68% for at least 180 days. We have extended the lowest dose cohort (0.75 mg/kg) for durability analysis; notably, the NHPs in this lowest dose cohort have continued to exhibit a time-weighted average reduction of greater than 50% in blood LDL-C for nearly 18 months following a single intravenous administration of STX-1150 prototype. Based on this data, we believe that our CRISPR-based epigenetic editing treatment is on par with, if not exceeding, current standard-of-care approaches that have been shown to achieve less than or equal to 50% LDL-C reduction for less than or equal to 6 months.

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**A single dose of 0.75 mg/kg of the STX-1150 prototype durably reduces LDL-C by over 50% in non-human primates for nearly 18 months**![LOGO](g21355g00n49.jpg)

*Tolerability of STX-1150 prototype in NHPs* 

The STX-1150 prototype was generally well-tolerated in this NHP study, as evidenced by no in-life adverse clinical observations or weight loss and no prolonged liver toxicity as measured by levels of alanine transaminase, or ALT, and total bilirubin, key biomarkers of liver toxicity. As shown in the figures below, the ALT elevation and total bilirubin level for the 0.75 mg/kg cohort, a clinically relevant dose, have been indistinguishable from the saline control.

**No significant elevations of ALT and total bilirubin levels in NHPs treated with STX-1150 prototype compared to control**![LOGO](g21355g00a08.jpg)

***Off-target analysis in primary human hepatocytes***

To characterize any potential off-target expression effects induced by treatment with STX-1150, we treated primary human hepatocytes with LNPs delivering the STX-1150 prototype with a *PCSK9*-targeting gRNA at supersaturating dose of 3X EC90, or the concentration at which 90% efficacy is achieved. In addition, the control group of cells was treated with the STX-1150 prototype but with a non-targeting gRNA. Whole transcriptome cellular RNA was harvested at six days post-treatment, and transcriptome-wide changes were measured via RNA sequencing. The figure below shows these data as a differential gene expression analysis in primary human hepatocytes comparing *PCSK9*-targeting

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group to the non-targeting condition from six independent experiments. Dotted lines represent cutoff values for calling differentially expressed genes. As illustrated in the figure below, no significant off-target changes in gene expression were detected in primary human hepatocytes treated at a supersaturating dose.

**No off-target gene expression changes observed in primary human hepatocytes treated with STX-1150 prototype at a dose of 3X EC90**![LOGO](g21355g00a09.jpg)

***STX-1150 preclinical efficacy and tolerability data in in vitro and in vivo models***

Our preclinical studies of STX-1150 prototype were carried out to establish proof of concept for *PCSK9* gene silencing using our proprietary ELXR technology. This prototype shared the same overall design, gRNA target sequence, and LNP formulation as the STX-1150 drug candidate. Following these initial studies, we made targeted improvements to the ELXR construct, by incorporating an allosteric DNA methyltransferase-unlocking domain, to further enhance target specificity and minimize any potential off-target effects. This refined construct represents the final STX-1150 drug product intended for clinical development. Subsequent preclinical studies were conducted using this drug product.

To characterize the *in vitro* potency of this clinical form STX-1150 drug product, we compared its ability to suppress PCSK9 secretion in primary human hepatocytes and primary cynomolgus monkey hepatocytes following LNP-mediated delivery. As shown in the figure below, we observed that CMC-scaled STX-1150 produced dose-dependent, near complete reductions in secreted PCSK9 in both cell lines, with a marked left-shift in the human dose-response curve relative to the cynomolgus curve. Specifically, the estimated IC50 in primary human hepatocytes was measured to be greater than 5-fold lower than in primary cynomolgus hepatocytes, indicating substantially greater potency in human hepatocytes in this experiment. We believe these data suggest the final STX-1150 drug product may exhibit meaningfully higher potency in humans compared to NHPs, supporting the potential for achieving robust PCSK9 suppression at lower doses in clinical development.

**STX-1150 demonstrated greater potency in reducing secreted PCSK9 levels in primary human hepatocytes compared to primary cynomolgus hepatocyte**![LOGO](g21355g00a10.jpg)

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We next evaluated the pharmacological activity of STX-1150 in humanized transgenic mice expressing human PCSK9. Mice received a single intravenous injection of STX-1150 across doses ranging from 0.3 to 1.5 mg/kg, and serum hPCSK9 levels were monitored over the course of at least 180 days. As shown in the figure below, STX-1150 induced a rapid, potent, and durable reduction of serum hPCSK9 relative to saline controls, with near-complete silencing achieved at doses greater than or equal to 0.6 mg/kg. Time-weighted average reductions in serum hPCSK9 were approximately 79 to 87% across the 0.6, 0.8, 1.0, and 1.5 mg/kg cohorts, with no statistically meaningful incremental benefit at higher doses, indicating saturation of effect at ~0.6 mg/kg. These results support our hypothesis that the final STX-1150 drug product can achieve durable, potent PCSK9 repression at doses less than 1.0 mg/kg *in vivo*.

**STX-1150 achieved saturating reduction of serum hPCSK9 at 0.6 mg/kg dose**![LOGO](g21355g00a11.jpg)

***Preclinical proof-of-concept for multi-dosing of STX-1150***

Building on the durable LDL-C lowering observed following a single intravenous infusion of STX-1150, we next sought to evaluate whether repeat dosing could enable titration of therapeutic effect while maintaining tolerability. This approach is intended to provide the optionality for cases where patients may benefit from additional dosing to achieve or maintain LDL-C reduction targets. To assess this, we conducted a preclinical study in NHPs using STX-1150, in which animals received three intravenous infusions of STX-1150 at 0.75 mg/kg per dose at approximately six-week intervals.

In this multi-dose NHP study, repeat dosing of STX-1150 enabled titratable therapeutic effects, with a cumulative enhancement in LDL-C reduction observed after each dose. As shown in the figure below, time-weighted average LDL-C reductions over the 180-day study were 44% after the first dose, 57% after the second, and 64% after the third dose. Moreover, multi-dosing was well-tolerated, with no significant elevations in liver function tests compared to control animals throughout the study. These findings support the potential for flexible dosing strategies to achieve and maintain therapeutic LDL-C reductions if needed, while maintaining a favorable tolerability profile.

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**A multi-dose of STX-1150 enabled titratable and sustained LDL-C lowering without any decrease in tolerability**![LOGO](g21355g00a12.jpg)

***STX-1150: timeline and next steps***

We submitted a CTN with the Australian regulatory authority in December 2025 and anticipate beginning to dose patients in .

**Commercial Outlook STX-1150** 

The large and expanding LDL-C lowering market is characterized by a persistent gap between efficacy observed in controlled settings and real-world outcomes. Clinical guidelines typically begin with lifestyle modification and statins as first-line therapy, with additional agents added when LDL-C goals are not achieved, including PCSK9-targeting therapies. Even with this treatment escalation, 75% of patients never reach optimal treatment goals, and nearly half of patients discontinue PCSK9 inhibitor therapy within a year, which can limit durable LDL-C control over time.

While the PCSK9 inhibitor class generates approximately $4 billion in annual sales, it reaches less than 1% of eligible patients. We believe this underutilization reflects, in part, limitations inherent to chronic dosing regimens and the operational and adherence requirements associated with long-term therapy, particularly for patients who require sustained LDL-C control over years.

We believe physicians and patients continue to seek approaches that support consistent, long-term LDL-C reduction. The AHA and the American College of Cardiology guideline on management of blood cholesterol recognizes that sustaining LDL-C lowering is one of the most important factors to reducing cardiovascular risk, and therapies that reduce reliance on ongoing adherence may be favored, particularly in patients with higher baseline risk or greater treatment burden. Recent survey data indicate patient receptiveness to more durable interventions, with approximately 75% of surveyed high cholesterol patients reporting they would be open to receiving a one-time genome editing therapy and approximately 35% reporting a preference for such an approach over other treatment options. This interest is substantially higher among patients who are in need of greater LDL-C lowering—90% of patients currently receiving a PCSK9 inhibiting therapy reported they would personally consider a genome editing treatment. As our epigenetic approach is designed to provide durability without permanently altering a patient's underlying DNA sequence, we believe STX-1150 will lead to even greater patient and physician acceptance.

The adherence-adjusted efficacy observed for currently approved LDL-C lowering medicines in real-world use is no higher than 35%. If clinical data support its intended profile, we believe STX-1150 will be well positioned to improve upon the current LDL-C lowering category and expand the overall market for PCSK9-targeting therapies by addressing a key limitation of current options, namely, the challenge of maintaining sustained, long-term LDL-C control.

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**STX-1200 Addressing Elevated LP(a)** 

Elevated LP(a): Causal risk factor for ASCVD

Lp(a) consists of a low-density lipoprotein particle covalently bound to Apo(a), a glycoprotein encoded by the *LPA* gene and secreted by hepatocytes. Genetics account for approximately 90% of interindividual variation in Lp(a) levels. Specific *LPA* genetic variants are associated with lower Lp(a) levels, the impact of which can be profound: declines in the risk of coronary heart disease, stroke, peripheral vascular disease, and heart failure by 29%, 13%, 31%, and 17%, respectively. Large Mendelian-randomization analyses show that coronary risk scales with the absolute reduction in Lp(a) mass. A decrease of approximately 100 mg/dL in Lp(a) carries the same 23% coronary risk reduction associated with lowering LDL-C by 1 mmol/L (38.7 mg/dL)—a benchmark often used to contextualize clinically meaningful benefit. The primary genetic variation in *LPA* is the KIV-2 repeat domain copy-number which is inversely related to Lp(a) particle concentration. Individuals with fewer repeats produce smaller, more efficiently secreted apo(a) isoforms, resulting in markedly higher circulating Lp(a) levels. While average Lp(a) levels are low in a majority of the population, individuals with elevated Lp(a) levels experience a two to three fold increase in the risk of coronary artery disease and aortic valve stenosis. Lp(a) is also causally associated with ischemic stroke, peripheral arterial disease, and heart failure. This highly elevated cardiovascular risk reflects Lp(a)'s unique role in driving vascular inflammation and atherosclerosis, in large part through its function as a carrier of highly atherogenic oxidized phospholipids (OxPL). On a per-particle basis, Lp(a) appears to be more atherogenic than LDL, owing not only to lipid deposition but also to its capacity to trigger pro-inflammatory signaling. Imaging studies further demonstrate that higher circulating Lp(a) levels correlate with arterial-wall inflammation and, in patients with established coronary disease, this predicts faster progression of coronary calcium and necrotic-core burden. In addition, at the aortic valve, elevated Lp(a) activates inflammatory and osteogenic pathways in vascular and valvular cells, promoting both micro- and macro-calcification.

Unfortunately, due to the genetic nature of ASCVD risk factors, the risk attributable to elevated Lp(a) manifests early in life and persists indefinitely. Elevated Lp(a) represents a non-modifiable, lifelong exposure that contributes to premature cardiovascular events and progression of disease. Measurement of Lp(a) concentration is sufficient for Lp(a)-related risk estimation without the need for genotyping, polygenic risk scores, or investigation of expressed apo(a) isoform sizes. Elevated Lp(a) is the strongest genetic risk factor for aortic valve calcification, and unlike LDL-C, no medication exists to slow or reverse this pathology.

**Elevated Lp (a): the opportunity for genetic medicine in Lp (a) management** 

Currently, there are no FDA-approved therapies that are specifically approved to lower Lp(a) to clinically meaningful levels. Lifestyle interventions such as diet, exercise, and weight loss do not significantly affect Lp(a). Statins may even increase Lp(a) levels slightly or have no effect. PCSK9 inhibitors may reduce Lp(a) levels by about 20 to 30%, but many high-risk patients remain well above thresholds of clinical concern. Lipoprotein apheresis offers acute reductions of 60–75%, but these effects are transient and access is limited to specialized centers.

The urgent need to lower Lp(a) has catalyzed the development of next-generation therapies aimed at silencing LPA expression. These pharmacologic therapies in development, consisting of ASOs, siRNAs, and small molecules, are poised to validate Lp(a) as a modifiable, causal driver of cardiovascular disease, analogous to LDL-C. However, they all share a fundamental limitation, the need for lifelong, repeated administration and adherence. The history of LDL-C therapies illustrates this challenge. According to a surveyed study, over half of patients prescribed a daily LDL-C lowering pill discontinue therapy within a year. With longer-acting approaches such as RNAi, 20% of patients discontinue therapy after the first year, despite a less frequent twice-yearly dosing regimen. Chronic

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treatments demand consistent adherence and continuous healthcare access, barriers that disproportionately affect populations most burdened by Lp(a)-driven disease. Gene editing offers a fundamentally different solution: a one-time, durable intervention.

***Our solution: STX-1200 for ASCVD***

*CRISPR-based editing therapy targeting LP(a) reduction*

STX-1200 is our next-generation, CRISPR-based gene editing program that aims to offer a permanent solution for patients with elevated Lp(a). Unlike conventional therapies that temporarily modify mRNA or protein levels and require chronic use, STX-1200 is designed based on human genetics to fix the root cause of disease by selectively modifying the *LPA* gene in hepatocytes to prevent high levels of Lp(a).

The therapy employs XE, our proprietary CasX-derived enzyme, delivered with optimized liver-targeted LNPs. XE is uniquely suited for *in viv*o editing and, to our knowledge, is the only non-Cas9 nuclease to achieve saturated editing in NHP hepatocytes at therapeutically relevant doses. Even at a 10x supersaturating dose, and almost full knock down of the *LPA* gene, an STX-1200 prototype has been shown to maintain complete on-target specificity with no detectable off-target edits, which we believe shows the potential to dramatically widen the therapeutic window and increase the safety margin typically needed for broad application in common, large population diseases. STX-1200 is designed to employ an unique mechanism for lowering Apo(a), introducing a deletion at a non-repetitive, conserved region of the *LPA* gene and avoiding the highly variable kringle IV-2, or KIV-2, repeat domains. The deletion is mapped to a naturally occurring single nucleotide polymorphism, or SNP, associated with reduced levels of Lp(a). This targeted approach provides for more uniform editing outcomes across individuals with diverse *LPA* genotypes, including those with large or complex KIV-2 expansions, and maximizes population-wide applicability. By mimicking naturally occurring protective SNPs**,** STX-1200 creates a therapeutic effect that is validated by decades of human genetic epidemiology. This editing effectively blocks apo(a) production and secretion, lowering Lp(a) at the source in a durable, disease-modifying way.

In preclinical studies, an STX-1200 prototype consistently produced greater than 90% apo(a) reduction in expression in human hepatocytes and suppression of Lp(a) levels across multiple *in vivo* models at low doses of LNP. We believe this potent efficacy, combined with its high specificity, positions STX-1200 as a program built for clinical translation.

Key potential advantages of STX-1200 include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Single-administration durability**: A highly potent one-time therapy that
removes the burden of lifelong adherence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Improved potency:** Engineered nuclease activity enables lower doses of LNP, lessening the primary toxicity associated
with LNP based gene therapies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **KIV2 independent targeting**: Effective across genetically diverse populations, including those with different numbers
of KIV-2 repeat alleles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mechanistic mimicry of natural protection**: Recapitulates known genetic variants linked to reduced Lp(a) and
cardiovascular risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Safety profile**: No measurable off-target activity in primary human
hepatocytes at ten times supersaturating doses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Validated LNP delivery**: Building on clinical precedents, liver-tropic LNPs offer a proven vehicle for efficient,
targeted delivery to the liver with minimal off-target distribution.

Furthermore, we have proactively screened for and identified LNP formulations with the most favorable tolerability profiles in non-human primates. We believe that the combination of these

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optimized LNPs and our high potency XE cargo will enable effective delivery at lower doses, supporting a potentially improved safety profile and differentiated therapeutic window for our product candidate.

With the field beginning to recognize the potential of CRISPR-based *LPA* targeting, we believe STX-1200 stands apart, leveraging a well-characterized delivery platform, potentially favorable safety profile, and powerful editing performance to deliver a transformative, one-time therapy. Our STX-1200 program is designed to rapidly translate effectively to treatments for real-world patient populations.

***STX-1200: Data Summary***

We are developing STX-1200 to edit the *LPA* gene and reduce circulating Apo(a) levels using our proprietary XE technology. We have evaluated a prototype version of STX-1200 for use in preclinical studies conducted in primary human hepatocytes, transgenic mouse models, and NHPs to assess efficacy and specificity. Across these studies, we have observed the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the human *LPA* homozygous knock-in mouse model, a single low dose of only
0.2-0.4 mg/kg of the STX-1200 prototype achieved saturated on-target editing of approximately 70%, resulting in greater than 90% reduction in secreted Apo(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At 0.4 mg/kg, STX-1200 prototype demonstrated approximately 4 times greater editing
potency of the *LPA* locus than a reference Cas9 molecule and a corresponding improvement in Apo(a) knockdown, supporting the potency of STX-1200 prototype at a therapeutically relevant low dose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In primary human hepatocytes treated at a supersaturating dose of 10x EC90, STX-1200 prototype showed no detectable off-target editing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In cynomolgus monkeys dosed with a surrogate NHP gRNA, a single administration achieved greater than 80% *LPA* on-target editing of the liver resulting in a greater than 95% reduction of plasma Apo(a) levels relative to baseline.

***Preclinical in vitro and in vivo mouse studies***

To develop STX-1200, we initially used the first-generation XE molecule and conducted a high-throughput screen of greater than 100 guide RNAs (gRNAs) targeting *LPA* to identify the top performing gRNA with optimal editing efficiency and functional activity.

After various *in vitro* experiments, we identified the top-performing STX-1200 prototype in the subsequent figures hereafter. The STX-1200 prototype was tested in the human *LPA* homozygous knock-in mouse model. As shown in the figure below, even low doses of 0.2-0.4 mg/kg resulted in saturating editing levels of approximately 70% and greater than 90% reduction in secreted Apo(a) respectively. Based on our experience, we believe efficacy at these dosing levels will translate into a well-tolerated human efficacious dose. In this study, the STX-1200 prototype outperformed a reference Cas9 molecule identified based on the literature resulting in approximately 4 times greater editing potency of *LPA* locus at 0.4 mg/kg dose and a dramatic improvement of LPA knockdown. This result demonstrates the potency of the STX-1200 prototype at a therapeutically relevant, low dose and highlights its strong potential for further development.

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**Potent editing and serum Apo(a) reduction in human *LPA* transgenic mice treated with STX-1200 prototype**![LOGO](g21355g00a13.jpg)

***Off-target analysis in primary human hepatocytes***

Importantly, while demonstrating on-target potency, STX-1200 prototype showed no significant off-target editing in primary human hepatocytes, even at a supersaturating 10x EC90 dose. Specificity and off-target risk were assessed using a comprehensive genomic approach. The specificity package combined in silico prediction, *in vitro* biochemical assays, and deep sequencing in primary human hepatocytes, or PHHs, treated at 10x EC90 dose. Potential off-target sites were nominated and evaluated. Given the sequence homology between *LPA* and *PLG* (plasminogen), *PLG* was specifically analyzed to rule out unintended editing. These analyses showed no detectable off-target editing, at the *PLG* locus. As shown in the figure below, deep sequencing of over 125 predicted off-target sites confirmed the high specificity of the STX-1200 prototype, even at supersaturating concentrations. These data underscore a broad therapeutic window and lower risk for unintended genomic alterations.

**Schematic of off-target assessment approach and a Manhattan plot of net indel rates at nominated off-target sites showed no detectable off-target editing for STX-1200 prototype**![LOGO](g21355g00a14.jpg)

***Preclinical in vivo NHP studies***

To assess translation of *in vivo* activity to NHPs, we evaluated a surrogate NHP analog of the human *LPA*-targeting guide using a cynomolgus monkey model. As shown in the next two figures below, a single intravenous infusion of the STX-1200 prototype surrogate at a dose of 3.0 mg/kg resulted in approximately 82% editing of the LPA locus and greater than 95% reduction of plasma Apo(a) levels relative to baseline, reaching approximately 97% reduction at the day 71 timepoint. These data show robust pharmacologic activity of the STX-1200 prototype in NHPs and support the translatability of targeting *LPA* from rodent models to NHPs.

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**Editing of the *LPA* locus in non-human primates with a STX-1200 prototype surrogate results in potent plasma Apo(a) reduction**![LOGO](g21355g00a15.jpg)

***STX-1200: timeline and next steps***

We anticipate nominating a development candidate and initiating IND-enabling studies for STX-1200 in .

**Commercial Outlook STX-1200** 

Lp(a), is a well-established and inherited lipid driver of ASCVD. It is one of the strongest genetic risk factors for heart attack and stroke, yet there are no currently approved therapies indicated to specifically lower Lp(a). Elevated Lp(a) affects roughly 20% of the global population, including an estimated 65 million people in the United States, and millions more are expected to be identified as testing becomes routine. Among these, patients who already have ASCVD and markedly high Lp(a) represent a large, clearly defined, and high-risk group that stands to benefit immediately from an effective therapy.

Because Lp(a) levels are determined almost entirely by genetics and remain stable throughout life, durable, safe, and clinically meaningful reduction is needed to translate into fewer cardiovascular events. As awareness increases and guidelines expand screening recommendations, the Lp(a) therapeutic class is projected to grow rapidly once therapeutics are approved for Lp(a) reduction.

Several investigational Lp(a) targeted therapies have demonstrated the ability to lower Lp(a) in late-stage clinical trials, validating the biology and underscoring the size of the opportunity. Most emerging treatments use RNA interference technologies aimed at the liver. While promising, these modalities are investigational and still require repeated administration, introducing a substantial treatment burden for a disease that may manifest earlier in life. Additional investigational programs with alternate modalities, including oral small molecules, highlight the recognition across the industry that reducing Lp(a) is the next major frontier in cardiovascular prevention but do not address the need for durable adherence similar to the LDL-C market.

We designed STX-1200 to be a solution for Lp(a)-associated ASCVD risk that meets patients' needs and addresses a lifelong genetic risk at the genetic level. By leveraging targeted editing, STX-1200 is designed to deliver long-lasting suppression of Lp(a) production with a dosing schedule far less frequent than potential RNA-based approaches. We believe this durability could make STX-1200 a compelling option for patients who need reliable, sustained control of an otherwise unmodifiable risk factor. Patients are increasingly aware of Lp(a) as a genetic risk factor, driven in part by advocacy groups and major cardiovascular societies. This growing awareness is expected to accelerate testing, improve early detection, and prime the market for rapid uptake of a genetic medicines solution.

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The Lp(a)-lowering market represents an entirely unique commercial opportunity: it is a large and prevalent genetically defined population that is entirely independent from LDL-C, with limited treatment options. We believe STX-1200 has the opportunity to be early to the market, while also offering a unique therapeutic profile designed to improve upon existing standards of care that provide incomplete solutions.

**STX-1400 Addressing Elevated triglycerides** 

***Elevated triglycerides: overview of associated disease states***

There are numerous disease states associated with elevated triglycerides including FCS, Multifactorial Chylomicronemia Syndrome, or MCS, and Severe Hypertriglyceridemia, or SHTG.

FCS is a rare, autosomal recessive disorder, with a distinctive genetic basis that underlies a clinical phenotype, including high risk pancreatitis. FCS patients exhibit fasting plasma TG levels greater than 880 mg/dL up to 10-100 times above normal (approximately 150 mg/dL), due to biallelic loss-of-function mutations in lipoprotein lipase, or LPL, pathway genes. The estimated prevalence of FCS is roughly 1–13 individuals per million. Despite its rarity, FCS imposes significant clinical and economic burden due to frequent hospitalizations and high-intensity supportive care. The estimated FCS population ranges from 3,000 to 5,000 individuals in the United States, consistent with its orphan disease designation, though underdiagnosis and misdiagnosis likely contribute to higher numbers.

Recurrent Acute Pancreatitis, or AP is a hallmark of FCS: 65-90% of patients experience AP requiring ICU care, with a mortality rate of 5-6% overall and up to 30–50% in subgroups experiencing pancreatic necrosis, infected pancreatic abscesses or persistent multiple organ failure. Modeling studies estimated that a typical patient with FCS (TG approximately 2,700 mg/dL) would experience 10.16 lifetime AP episodes, require approximately 81 inpatient hospital days and incur greater than $150,000 in direct healthcare costs. Strikingly, the lifetime risk of AP-related death approached 54%, underscoring the lethality of uncontrolled FCS. Other clinical features include xanthomas, lipemia retinalis, abdominal pain, hepatosplenomegaly, and potential neurological or cognitive effects.

MCS is a common, polygenic and multifactorial hypertriglyceridemia disorder with an estimated prevalence of 1:600-1:250 in the US. MCS is linked to predisposing monoallelic variants in Triglyceride-related genes, often compounded by secondary risk factors such as metabolic syndrome, hypothyroidism, high-estrogen states (like pregnancy), alcohol use, high-fat diet, or certain medications. MCS patients typically exhibit sustained plasma TG levels greater than 880 mg/dL, with lifetime risk of AP estimated at 11–37%. A clinically relevant subgroup of patients with MCS, estimated at 5-10%, exhibits refractory or sustained chylomicronemia that is functionally equivalent to genetic FCS and may particularly benefit from *APOC3*-targeting therapies. These patients represent a heterogeneous population defined by rare variants, polygenic risk, low LPL activity, autoantibodies, or novel mechanisms, underscoring the need for precise characterization and tailored interventions.

SHTG is a heterogeneous group of disorders caused by both genetic and acquired factors, defined as sustained plasma TG levels greater than 500 mg/dL. In the US, the prevalence of SHTG is estimated at 1% of the adult population, equating to approximately 3-4 million individuals. Elevated TG in MCS and SHTG populations is further linked to increased cardiovascular risk, including myocardial infarction, ischemic stroke, aortic valve stenosis, and vascular dementia.

**Elevated triglycerides: The Role of APOC3 inhibition** 

Apolipoprotein C-III, or ApoC3, is a small glycoprotein primarily synthesized in the liver and, to a lesser extent, the intestine. It is an important component of several lipoprotein particles, including

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very-low-density lipoproteins, or VLDL, and chylomicrons. ApoC3 plays a critical role in lipid metabolism by inhibiting LPL, thereby reducing the hydrolysis of triglyceride-rich lipoproteins. It also impedes hepatic uptake of these particles by interfering with their interaction with cognate receptors on hepatocytes. As a result, elevated levels of ApoC3 are associated with increased plasma triglyceride levels, contributing to hypertriglyceridemia and heightened risk of cardiovascular disease and pancreatitis. Multiple genetic variants have been identified that influence *APOC3* expression and function. Notably, loss-of-function mutations such as R19X and A43T have been associated with significantly reduced plasma triglyceride levels and lower CVD risk. Conversely, variants that enhance *APOC3* expression or function are linked to hypertriglyceridemia and increased atherogenic risk. Importantly, *APOC3* homozygous predicted loss-of-function carriers have been identified and exhibit no detrimental effects and have lower plasma TG concentration, higher HDL-C and similar LDL-C when compared to non-carriers. These genetic insights underscore *APOC3* as a critical factor in lipid disorders and a compelling therapeutic target for the prevention of cardiovascular disease.

Traditional approaches using antisense oligonucleotides and RNAi have demonstrated clinical efficacy in reducing ApoC3 levels and triglycerides resulting in reductions in acute pancreatitis in patients with FCS and SHTG. Nevertheless, these drugs will need to be taken chronically for life, and CRISPR technology offers a potentially durable strategy to permanently inactivate disrupt the *APOC3* gene. Preclinical models have shown that CRISPR-mediated knockout of *APOC3* can mimic naturally occurring loss-of-function mutations, yielding sustained reductions in TG and protection against metabolic disease. Such an approach could offer long-term therapeutic benefits with a single treatment, especially for patients with familial hypertriglyceridemia or those at high CVD risk.

**Genetic medicine in triglyceride lowering via APOC3 inhibition** 

The current standard of care for FCS and MCS centers on a strict low-fat diet of less than 15–20 g/day, which is extremely difficult to sustain over a lifetime and often inadequate for reducing TG below 500 mg/dL, the threshold generally considered necessary to lower AP risk. Lipid-lowering agents, including statins, and omega-3 fatty acids provide only modest TG reduction of 10-20% in patients with MCS and SHTG. Fibrates can reduce TG up to 50% in some non-FCS patients. In contrast, these agents are largely ineffective in FCS patients, since their activity depends on a functional LPL pathway, which is absent in FCS patients due to bi-allelic loss-of-function mutations in LPL or its co-factors.

RNA-targeted therapies can reduce TG levels and reduce AP risk. However, these approaches will require chronic administration, frequent injections and repeated clinic visits with lipid specialists often located only in academic medical centers or regional lipid clinics. The need for lifelong continuous treatment and monitoring multiple times per year, creates significant barriers to access and patient adherence.

In real-world settings, treatment adherence is a critical limiting factor that undermines therapeutic effectiveness. Patients often discontinue therapy due to loss of insurance, high out-of-pocket costs, or the logistical burden of ongoing clinic visits. Even when effective, chronic therapies fail to deliver consistent benefit if patient adherence is low—an especially important challenge in lifelong, rare and resource intensive conditions such as FCS and MCS.

***Our solution: STX-1400 for SHTG & FCS—a CRISPR-based editing therapy targeting elevated triglycerides via APOC3 Inhibition***

Unlike other gene editing approaches found in the genetic medicine landscape STX-1400 is designed to target and remove the transcriptional start site of the *APOC3* gene and strongly reduce mRNA expression, an approach we believe is uniquely suited to the XE technology.

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Key potential advantages of STX-1400 include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Single-administration durability:** A highly potent one-time therapy that
removes the burden of chronic adherence for patients with lifelong disease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Improved potency:** Engineered nuclease activity enables lower doses of LNP for effective liver targeting, lessening
the primary toxicity associated with LNP based gene therapies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exon independent targeting:** On-target editing aimed at reducing mRNA
expression without modification of the gene body designed to recapitulate outcomes similar in outcome to approved RNAi and ASO technologies without added risk **.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Clean off-target profile**: XE technology has shown no measurable off-target activity in primary human hepatocytes at 10x supersaturating doses across multiple targets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Validated LNP delivery:** Building on clinical precedents, liver-tropic LNPs offer a proven vehicle for efficient,
targeted delivery to the liver with minimal off-target distribution.

Furthermore, we have proactively screened for and identified LNP formulations with the most favorable tolerability profiles in non-human primates. We believe that the combination of these optimized LNPs and our high potency XE cargo will enable effective delivery at lower doses, supporting a potentially improved safety profile and differentiated therapeutic window for our product candidate.

***STX-1400: Data Summary***

We are developing STX-1400 to edit the *APOC3* gene and reduce APOC3 expression and lower triglyceride levels using our proprietary XE technology. We have evaluated a prototype version of STX-1400 in preclinical studies conducted in primary human hepatocytes, transgenic mouse models, and NHPs to assess efficacy and specificity. Across these studies, we have observed the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In primary human hepatocytes, lead *APOC3* -targeting gRNA generated greater than 80% on-target editing, resulting in greater than 75% reduction in secreted APOC3 protein in a dose-response study;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A single intravenous dose of STX-1400 prototype reduced APOC3 mRNA and protein by
greater than 90%, accompanied by greater than 95% reduction in triglycerides in a mouse model of hypertriglyceridemia

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Dose-dependent treatment with STX-1400 prototype achieved saturating *APOC3* editing and greater than 80% reduction in APOC3 protein at therapeutically relevant doses 0.5-1.5 mg/kg in a pharmacologically relevant transgenic APOC3 mouse model;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In primary human hepatocytes treated at a supersaturating dose of 10x EC90, STX-1400 prototype showed no detectable off-target editing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In cynomolgus monkeys dosed with a surrogate NHP analog gRNA, a single administration achieved greater than 75% *APOC3* on-target editing at a therapeutically relevant 1 mg/kg dose.

***Preclinical in vitro and in vivo mouse studies***

To develop XE technology for targeting *APOC3*, we identified numerous guides against the *APOC3* gene with potential to reduce APOC3 protein and evaluated them with the XE nuclease in PHHs via lipofection. Lead guides were selected based on the two parameters: their ability to generate high levels of indels at the *APOC3* locus and the associated reduction in secreted APOC3 protein levels. The lead STX-1400 prototype was further evaluated in PHHs in a four-point dose–response study. Robust editing of greater than 80% was observed, resulting in a greater than 75% reduction in secreted APOC3 protein as shown in the figure below.

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**Robust editing of *APOC3* locus reduced APOC3 mRNA and protein in primary human hepatocytes treated with STX-1400 prototype**![LOGO](g21355g00a16.jpg)

The STX-1400 prototype consistently demonstrated disease-modifying activity in relevant preclinical *in vivo* models, including two independent mouse models and NHPs as described below.

A proof-of-biology study was performed in a well-established human *APOC3* transgenic mouse model of hypertriglyceridemia. This model carries multiple copies of human *APOC3* and exhibits severe hypertriglyceridemia and elevated cholesterol, providing a relevant system to evaluate the therapeutic potential of STX-1400 in a hypertriglyceridemic setting. In this study, a single 3 mg/kg intravenous dose of STX-1400 prototype was administered, and animals were evaluated 14 days post-injection. As shown in the figure below, treatment reduced *APOC3* mRNA and protein levels by greater than 90%, accompanied by greater than 95% reductions in TG and greater than 80% reductions in total cholesterol. Notably, serum from control mice appeared milky white due to high triglyceride content, whereas serum from treated mice appeared normal. These results provide strong proof of the scientific rationale for STX-1400 and highlight its potential as a transformative therapy for hypertriglyceridemia.

**Treatment of hypertriglyceridemic mice with STX-1400 prototype resulted in significant reduction of serum APOC3, triglycerides, and total cholesterol**![LOGO](g21355g00a17.jpg)

While the hypertriglyceridemic mouse model has been widely used in both academia and the drug development community as a biological model of hypertriglyceridemia, a key limitation for gene-editing drug development is the presence of multiple human *APOC3* copies, which reduces its relevance for pharmacological studies evaluating the relationship between dose and editing efficiency.

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To evaluate the STX-1400 prototype in a pharmacologically relevant mouse model, we conducted a study in a commercially available mouse strain carrying a single copy of human *APOC3*. As shown in the figures below, dose-dependent treatment with the STX-1400 prototype achieved saturating *APOC3* editing of 70% bulk liver editing, resulting in greater than 80% reduction in APOC3 protein at therapeutically relevant doses of 0.5-1.5 mg/kg. These results demonstrate the prototype's strong potency and validate its potential for progression through subsequent preclinical development stages.

**Treatment of a human transgenic *APOC3* mouse model with STX-1400 prototype resulted in significant *APOC3* editing and reduction of serum APOC3**![LOGO](g21355g55m02.jpg)

***Off-target analysis in primary human hepatocytes***

Further, while demonstrating on-target potency, preliminary analysis of STX-1400 prototype also showed zero off-target editing, in primary human hepatocytes, even at supersaturating 10x EC90 dose, as shown in the figure below. Using a comprehensive genomic approach that combined in silico prediction, in cell assays, and in vitro biochemical assays, potential off-target sites were nominated, followed by deep sequencing of nominated sites in PHHs treated at 10x EC90 dose. Notably, the 10x EC90 dose data shown below is indicative of all datasets we've generated with lead XE molecules across our multiple programs. Together, these advances create a wider therapeutic window and a potentially favorable safety profile—an essential hallmark of our XE technology.

**Schematic of off-target assessment approach and a Manhattan plot of net indel rates at nominated off-target sites showed no detectable off-target editing for STX-1200 prototype**![LOGO](g21355g66r25.jpg)

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***Preclinical in vivo NHP studies***

To establish translation of the developed STX-1400 prototype potency from *in vivo* mouse into NHP, we conducted a study in a cynomolgus monkey model using a surrogate NHP analog of the prototype human *APOC3* guide. In this study, a single injection achieved greater than 75% *APOC3* editing at a therapeutically relevant 1 mg/kg dose, as shown in the figure on the left below. Moreover, the STX-1400 prototype was well-tolerated in this NHP study, as evidenced by no significant liver function test elevations at the 0.5 mg/kg and 1.0 mg/kg doses compared to the saline control group, as shown in the figure on the right below. A limitation of the lean cynomolgus monkey model for APOC3 biology is its low triglyceride levels, making it unsuitable for assessing drug effects on TG.

**Editing of the *APOC3* locus in bulk liver of NHPs treated with STX-1400 prototype surrogate, with no significant liver function test elevations over control**![LOGO](g21355g00a20.jpg)

***STX-1400: timeline and next steps***

We anticipate nominating a development candidate and initiating IND-enabling studies for STX-1400 in .

**Commercial Outlook STX-1400** 

Triglyceride-driven lipid disorders, including FCS, MCS, SHTG, and mixed dyslipidemia, represent a continuum of escalating risk for acute pancreatitis and long-term metabolic complications. By editing the *APOC3* gene, STX-1400 has the potential to drive clinically meaningful and durable TG reductions to address the full continuum of TG-driven disorders, where it can effectively become a pipeline within a drug.

We intend to initially pursue FCS, a severe, monogenic disorder on the more severe end of the continuum with TG levels often exceeding 880 mg/dL, resulting in disproportionate disease burden characterized by recurrent and unpredictable episodes of acute pancreatitis, chronic pain, and a significantly lowered quality of life. FCS is also a genetically defined population where disease manifests early in life and patients stand to benefit the most from a gene editing treatment like STX-1400 that can dramatically reduce TG levels with a single dose and confer long-term reduced risk of acute pancreatitis without need for lifelong adherence to chronic medications. By addressing the underlying biology rather than the symptoms of disease, STX-1400 has the potential to deliver long-term value consistent with rare disease frameworks that reward durable clinical benefit in high-burden populations.

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While patients with genetic FCS represent the most severe TG elevation and highest risk of acute pancreatitis, millions more patients with MCS and SHTG have TG levels between 500 and 880 mg/DL and are at risk for acute pancreatitis. MCS and SHTG patients today live with lifelong ultra-low-fat diets which are difficult to maintain, frequent hospitalizations for pancreatitis, and an ongoing disease monitoring burden, representing an underserved patient population who would also benefit from STX-1400. A single-administration treatment that durably eliminates APOC3 expression could, if proven safe and effective, convert a chronic, high-burden condition into one managed by a single treatment, dramatically lowering lifetime pancreatitis risk and potentially normalizing TGs enough to restore dietary freedom and quality of life. FCS, MCS, SHTG and the general population with mixed dyslipidemias or elevated TG between 150 and 500 mg/dL can still be at an increased risk for CV events including heart attack and stroke. By extending into the far larger mixed dyslipidemia or high TG populations for cardiovascular risk reduction, a one-and-done therapy that mimics lifelong *APOC3* loss-of-function could complement LDL-lowering and Lp(a) lowering strategies by addressing the remnant cholesterol from triglyceride-rich lipoproteins that is becoming increasingly linked to atherosclerotic events. As such, STX-1400 has the potential to bring our mission to eradicate ASCVD one step closer to reality if it can remove yet another lipid driver of ASCVD.

Viewed this way, STX-1400 has the potential to not just be another lipid-lowering agent; it can be a portfolio of solutions to several TG-related indications in a single vial. By starting with rare genetic FCS patients, then methodically broadening into MCS, SHTG, and ultimately CV risk reduction, we believe STX-1400 has the potential to function as a "portfolio-in-a-drug" that spans the full TG disease continuum. The combination of strong human genetics on APOC3, emerging outcomes studies linking APOC3 knockdown with reduced pancreatitis and CV risk, and the therapeutic potential of Scribe's X-Editor platform positions STX-1400 uniquely at the intersection of rare genetic disease and large-scale cardiovascular prevention.

**Future pipeline expansion** 

We believe that ELXR and XE have applications beyond targeting *PCSK9, LPA* and *APOC3*. As genetic risk factors for health conditions are further characterized, we strive to bring CRISPR- based medicines to the forefront of treatment in other high impact indications such as obesity, MASH, and other cardiometabolic disorders. In addition, we may also pursue opportunities to expand the impact of our technologies in broader therapeutic areas through opportunistic partnerships.

***Organ system coverage***

We designed ELXR and XE to be versatile and adaptable for a broad range of indications. XE has demonstrated the ability to edit a diverse collection of tissue types in several major organ systems in mice and NHPs. As illustrated in the graphic below, in multiple *in vivo* studies, XE demonstrated high gene editing in various regions of the central nervous system, the retina, the liver, as well as in cardiac and skeletal muscle, and similarly demonstrated high levels of editing in ex vivo applications. In each organ system, we estimate that XE-based gene editing achieved the concept of a saturation level.

Saturation is determined either by (i) the maximum amount of editing observed when further increasing the dose does not result in proportional increases in editing, or (ii) the presumed maximum number of targeted cells present in the target organ. For example, 70-75% of cells in the liver are presumed to be hepatocytes and as LNPs preferentially deliver to hepatocytes, editing of approximately 70% in gross liver tissue is presumed to be at or near saturation editing across organ systems.

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![LOGO](g21355g00m62.jpg)

**Our CRISPR-By-Design Engineering Approach** 

*Challenges of original Cas-based gene editing approaches* 

CRISPR-Cas-based nuclease editing systems are generally composed of a CRISPR protein and a retargetable gRNA that together form the CRISPR holoenzyme. The gRNA guides the CRISPR protein to a specific sequence of DNA and, if the PAM sequence is recognized by the CRISPR protein at the targeted sequence, the CRISPR protein will cleave the DNA, creating a double-stranded break, or DSB. PAM recognition is hard coded in the CRISPR protein and dictates which genomic sites can be effectively targeted. Once a cleavage event has occurred, the DSB is repaired by a cell's endogenous DNA repair mechanisms that may facilitate genetic insertions, deletions or other repair. This creates a permanent DNA modification, which in turn may treat a patient's particular disease. Original CRISPR-based technologies are based on either Cas9 or Cas12a. CRISPR-Cas9, which utilizes a Cas9 enzyme to cleave the DNA, is the most common technology used for gene editing and Cas-based genetic modification. CRISPR-Cas12a is a less widely used technology that deploys a distinct enzyme to create slightly staggered cuts in the DNA. While both technologies have demonstrated clinical proof of concept, we believe that they have yet to overcome several limitations for their use in developing therapeutics more broadly, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Variable on-target activity:** On-target activity refers to the ability of a CRISPR technology to achieve the desired amount of genetic modification within a gene. Historically, Cas-based nuclease
gene editing technologies have had varying rates of success in on-target activity, especially at lower doses. This unpredictability is further complicated when an edit should occur at a particular site in the
genome that has limited accessibility, based on gRNA activity or a lack of PAM sites.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Low specificity:** Specificity refers to the rate at which a technology edits the appropriate location within
the genome relative to unintended sites within the genome. Lack of specificity can occur because CRISPR proteins can incorrectly bind to and cleave off-target DNA sequences that are similar to the intended
target, which can have significant safety consequences. Moreover, efforts to increase on-target activity can simultaneously decrease specificity, making it difficult to fine-tune on-target editing efficiency without increasing the risk of off-target editing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Constrained delivery:** Cas9 and Cas12a, when combined with their respective gRNAs and regulatory elements necessary
for expression, are typically greater than 5 kilobase, or kb, in

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size, making *in vivo* delivery significantly less efficient and in many cases, requiring multiple delivery vectors. For example, adeno-associated virus, or AAV, vectors generally require payloads under 4.7 kb in size, which limits the ability to pack Cas9- or Cas12a-based technologies into a single AAV. <br>

*Additional challenges of existing base editing and prime editing technologies* 

In an attempt to address some of the limitations of original CRISPR-based editing systems, other organizations and labs are seeking to develop technologies that add a distinct nucleic acid modifying enzyme to a Cas9 molecule to edit the genome without creating a DSB. For example, base editing, which attaches a deaminase domain to Cas9, and prime editing, which attaches a reverse transcriptase, or RT, are two such technologies. These fusion editing approaches have the potential to provide a more precise editing outcome of single or multiple base pair changes. However, for a myriad of reasons including their foundation on Cas9 systems, they share similar challenges as described above and present further risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Limited ability to measure and characterize off-target edits:** While double
stranded cleavage is naturally allosterically regulated within a CRISPR enzyme to enact editing activity once on target, reducing the likelihood of off-target edits, base editing and prime editing attachments
are constitutively "on" even when not bound to a target site. In the case of base editing enzymes, it has been observed that they can deaminate (mutate one base pair to another) many other single- stranded nucleic acids in the cell.
Despite the widespread observation of random deamination in scientific literature, the random nature of mutation to single bases across the genome creates a potential safety risk that may be highly difficult to observe and characterize using current
assays. It has similarly been found that prime editing based on RT over expression works even without fusion to CRISPR targeting proteins raising the question of where and how else these RTs may be acting independent of CRISPR in the cell.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Potential for bystander edits:** While the attachment domains of these fusion technologies often act in a more precise
manner, they may also inadvertently lead to edits in nearby genomic regions, or bystander edits, such as multiple deamination (in the case of base editing) or incorporations of the gRNA into the cut site (in the case of prime editing). Further, both
base and prime and editing may cause on-target double stranded break based mutations due to DNA repair of deamination and dual strand DNA nicking respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Potentially limited scope of addressable outcomes:** While base editing and prime editing are powerful
approaches that have the ability to alter one DNA sequence to another. genetic disease patient populations are often highly stratified across dozens to hundreds of genetic variants for any given disease and there are over 100,000 known pathogenic
genetic variants across more than 10,000 rare diseases. As a result, treating these patient populations with BE and PE style approaches may necessitate the creation, manufacturing and development of many distinct molecules for a given disease.

*Our approach to unlocking the potential of genetic medicine: CRISPR by Design* 

We were founded on the thesis that comprehensive engineering and optimization of the CRISPR protein, gRNA and delivery approach are necessary to address the activity, specificity and delivery limitations of other CRISPR-based technologies, especially in order to create the potency and specificity to treat highly prevalent disease. We are leveraging the power of comprehensive molecular engineering to create *in vivo* CRISPR-based genetic medicines designed to become standard of care treatments for broad patient populations.

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We refer to the data-driven, iterative engineering process for deliberate and continuous optimization of our CRISPR-based technologies and application as CRISPR by Design.

![LOGO](g21355g00a22.jpg)

CRISPR by Design is comprised of the following guiding principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Portfolio by Design:** prioritizing pipeline programs by impact. We designed and are developing our wholly-owned,
internal pipeline to develop standard of care treatments for broad patient populations. We prioritize pipeline opportunities via a pragmatic evaluation of application, delivery, disease burden, biomarker availability, target biology, and CRISPR
technology, which has led us to initially target *PCSK9, LPA and APOC3* for our lead assets. We plan to leverage strategic collaborations with partners to expand our portfolio beyond the core cardiometabolic focus of our internal pipeline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Engineering by Design:** creating industry leading technologies and assets. We customize our CRISPR technologies to
our selected targets by holistically engineering the core components of a CRISPR system with an aim to broaden our therapeutic index by enhancing the overall efficacy, safety, and deliverability of the resulting therapeutic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **CRISPR by Design Flywheel:** continuous improvement, expansion and risk mitigation. We continually iterate our
platforms based on our own growing body of data as well as published data from others in the genetic medicine community. This engineering feedback loop creates a flywheel effect of learning and implementation, through which we will continue to apply
disruptive development techniques to CRISPR drug creation, allowing us to continuously expand our strong and differentiated suite of platforms, assets and intellectual property.

Through our CRISPR by Design engineering approach we will continue to apply disruptive development techniques to CRISPR drug creation, allowing us to continuously expand our strong and differentiated operating model, suite of technologies, assets and intellectual property.

**Our technology** 

We believe comprehensive molecular engineering is necessary to develop genetic medicines for broad patient populations, including those suffering from widespread, chronic diseases with significant unmet need. As a result, we holistically engineer the three main components of the CRISPR system, the CRISPR protein, the gRNA, and the delivery vehicle, with an aim to enhance the therapeutic index in the form of efficacy, safety, and deliverability of the resulting genetic medicine.

**CRISPR protein engineering.** Our two initial CRISPR-based technologies, ELXR and XE, were both engineered from the naturally occurring CasX enzyme to improve activity, specificity, targeting

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range, and delivery. CasX, and has several inherent advantages for genetic modification, including delivery flexibility, a unique DNA repair pattern, and high intrinsic specificity. By starting with this single protein, each data set we generate from our engineering efforts is additive and we are able to more fully characterize the editing properties of the enzyme. Through many engineering revolutions, we have improved several important characteristics of naturally occurring CasX that impact its potential editing profile, such as CRISPR protein stability, DNA binding and unwinding, gRNA binding, gRNA stability, DNA cleavage activity, and specificity.

These engineering efforts created XE. XE is over 120 steps in sequence space away from the naturally occurring CasX and over 100 times more potent in editing activity as demonstrated in cell- based assays. We have further engineered XE into ELXR, which is designed to enable durable epigenetic silencing. The comprehensive engineering of our ELXR and XE technologies has been focused on simultaneously improving their activity and specificity to create molecules with the ideal set of therapeutic properties.

**Delivery engineering.** We also apply design-oriented engineering to improve the delivery systems for our two initial technologies. In addition to carefully selecting the appropriate delivery technology, we place significant focus on optimizing ELXR and XE for a particular delivery modality. For example, in the case of LNP-based RNA delivery, which we are using for our lead programs, we have demonstrated in vitro that optimizing both the mRNA and gRNA payloads can lead to a more than two-fold increase in editing efficiency. Similarly for viral delivery, we engineered novel AAV cargos for XE delivery into the CNS, muscle, and eye. In preclinical *in vivo* models, these AAV cargos have shown a more than 10-fold increase in activity. If these results translate to humans, it could mean significantly lower doses of AAVs thereby addressing challenges such as immunogenicity, AAV toxicity and manufacturing complexity.

**Guide RNA engineering**. We have significant internal capabilities to screen for gRNAs that can enable a high specificity while maintaining high activity. Our gRNA screening starts with a proprietary in silico design process incorporating our proprietary machine learning models "DeepXE". This system has demonstrated predictive ability on par with if not exceeding many of the available Cas9 based prediction systems and can cut screening effort and time in half. Computationally identified hits are then put through a series of screens in therapeutic area-relevant human cell lines, and the resulting leads undergo more thorough optimization and vetting in disease-relevant phenotypic screens in vitro and *in vivo*. Additionally, we extensively characterize the specificity profiles of our potential product candidates in order to minimize off-target effects from initial gRNA design. Through the gRNA engineering process, we believe we can rapidly identify and improve the most promising gRNA candidates to pair with our ELXR and XE technologies as potential product candidates.

Our focused and iterative engineering processes have created two powerful gene modification platforms: ELXR and XE. We believe the combination of these two platforms provides us the flexibility to select and prioritize an appropriate technology for a given application based on the desired product characteristics and the data produced.

***Engineering CasX into XE***

CasX is a novel, metagenomically derived CRISPR enzyme originally discovered in the lab of our co-founder Dr. Doudna at the University of California, Berkeley. We believe that naturally occurring CasX has several inherent notable advantages for genetic modification, including high specificity and a smaller size (less than 3 kb) relative to other CRISPR proteins. The figure below is a graphical representation of CasX-based editing. CasX produces staggered DSBs that generate larger deletions when repaired, allowing for more effective disruption of or insertion into the genome. Cas-based nuclease editing systems are generally composed of a CRISPR protein and a retargetable gRNA. The

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gRNA guides the CRISPR protein to a specific sequence of DNA and, if the PAM sequence is recognized by the CRISPR protein at the targeted sequence, the CRISPR protein will cleave the DNA, creating a DSB. Once a cleavage event has occurred, the DSB is then repaired by a cell's natural mechanisms, such as non-homologous end joining or homology-directed repair which facilitates genetic insertions, deletions or repairs. In the case of CasX, we have observed the ability to frequently create a predictable deletion pattern at the cut site providing us with a more consistent outcome.

![LOGO](g21355g00a23.jpg)

Through engineering revolutions, we have improved important characteristics of naturally occurring CasX that impact its potential editing profile, such as stability, activity, and specificity, which we believe dramatically increase its potential for therapeutic uses. The result of these engineering revolutions can be seen in the images of naturally occurring CasX and XE in the figure below with key changes highlighted in blue. The resulting XE is more than 120 steps through sequence space away from naturally occurring CasX.

![LOGO](g21355g00a24.jpg)

We carried out in vitro cleavage reactions with DNA targets and excess CRISPR enzymes to determine cleavage rates. As shown in the graph on the left below, the cleavage rate of the engineered XE was at least 75-fold higher than that of the naturally occurring CasX enzyme, demonstrating the improvements of the enzyme's ability to edit the gene. To assess whether this result recapitulates in human cells, we assayed CasX and XE for editing ability on 30 matched genomic targets via low-dose transfection. As shown in the graph on the right below, the median editing rate for CasX was 0.8%, while the median editing rate for XE was 83%, showing an approximately 100-fold increase in editing efficiency.

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![LOGO](g21355g00a25.jpg)

***Our X-Editor (XE) Solution***

XE is a novel CRISPR-based nuclease editing technology which was developed by engineering CasX and its gRNA for desired therapeutic characteristics as detailed below. We believe XE is a versatile editing technology with significant key advantages, including:

**High specificity and activity**: XE is designed to deliver both high on-target activity and high on-target specificity providing the opportunity for delivering generic medicines with a greater therapeutic index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Activity:** We have observed that XE has the ability to edit at or above the level of other gene editing technologies
at the same or lower doses in nonclinical experiments leading to fully saturation of liver genome editing at or below the dose of 1mpk in NHP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Specificity:** We have observed that XE has the ability to fully discriminate between on-target and off-target sites with a single nucleotide polymorphism in nonclinical experiments leading to no observable off target with guides in the 1200 and 1400
programs.

**Broad versatility**: XE's versatility in delivery to different tissues, broad targeting range, and potential ability to execute different editing types enables a wide variety of genetic outcomes to address disease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Targeting range:** XE's consistency of activity across targets as well as our ability to engineer new distinct
PAM recognition indicates that we may be able to theoretically target any desired site in the human genome.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Addressable tissue type:** CasX's small size relative to many other CRISPR enzymes has allowed us to engineer
substantially improved delivery cargos for AAV and other systems. In preclinical studies, XE has achieved at or near saturation levels of gene editing in various regions of the central nervous system, the retina, the liver, as well as in cardiac and
skeletal muscle. Editing outcome: XE is capable of a wide variety of genetic modifications. These include gene knock-out, exon skipping, excision, transcription factor site removal, allele-specific editing,
multiplexed editing, mRNA isoform changes, and homology directed repair.

**Measurable mechanism of action:** Given the established scientific methods for measuring the profile of DSBs within the genome, we believe that applying XE as a nuclease editor will allow us to robustly assess and characterize its safety profile, including its off-target effects.

**Novel intellectual property:** Given the broad use of Cas9 and other CRISPR-based systems, the ability to generate meaningful, new intellectual property is limited. For example, we are aware of

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over 10,000 granted patent applications that claim Cas9 worldwide. In contrast, our proprietary genetic modification platforms are built on CasX, which is a novel enzyme that is less than 5% identical to Cas9. We believe this provides an expansive field within which we intend to continue to develop and patent new technologies and applications.

***XE activity***

*XE potency* 

XE has demonstrated robust on-target editing rates and performance across various human targets and cell types, including primary human cells. We conducted an internal experiment comparing the editing rates, as measured by next generation sequencing, or NGS, of our XE against various Cas9 molecules and metagenomically derived Cas12 molecules at 25-30 target sites across six locations in the human genome via low-dose transfection of cultured human cells. As demonstrated in the graph on the left below, we observed that at the median gRNA, XE achieved at least 30% to 40% higher editing rates than the two Cas9 molecules we tested, including an engineered Cas9 and a clinically tested Cas9 variant, and achieved greater than 10-times more activity than other engineered Cas12 variants. In all instances, XE outperformed other natural and engineered proteins in overall editing activity as well as proportion of target sites achieving editing levels greater than 80%. Additionally, the figure on the right depicts the results of head-to-head testing performed by three independent third parties to evaluate the editing efficiency of XE compared to Cas9. In these assays each third party compared its Cas9 system to a similarly targeted XE and in each study, such third party observed that XE was as potent, and in some cases more potent, than their Cas9 in each tested protocol.

![LOGO](g21355g00a26.jpg)

***XE specificity***

High specificity is important in preventing off-target effects; however, there is often an observed tradeoff between activity and specificity. Therefore, we built and are continuing to improve versions of XE that exhibit a low propensity to cleave at mismatched targets while maintaining desired on-target activity. For example, in the data below on the left-hand side, further engineered XE variants were screened in a cell-based assay that determines on- and off-target editing scores based on activity across dozens of gRNA-target pairs by comparing to an XE reference variant. Most variants alter activity without altering the ratio of on- to off-target activity, creating a linear trend across the activity- specificity landscape. Variants that enhance specificity independent of their effect on overall activity can be identified as variants that lie above and to the left of the general trend. Based on these screens, we believe we can increase specificity without substantially impacting activity. Furthermore, we have identified hyper-specific XE variants that we believe have the ability to reduce off-target editing in a clinical setting. In the data below on the right a human cell culture assay was created to assess editing

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simultaneously at disease-associated single nucleotide polymorphisms, or SNPs, from the National Center for Biotechnology Information ClinVar Database and the corresponding wild-type genetic sequence. In this assay, over two-thirds of all gRNAs had high editing on target and the ability to fully discriminate between on-target and off-target sites at the mismatched allele, demonstrating the specificity of XE.

![LOGO](g21355g00a27.jpg)

***XE targeting range***

We have further engineered XE for broad target recognition, which should enable us to target the genome more evenly. In order to bind to DNA sequences, CRISPR enzymes search for target sequences and sequences of PAMs. The naturally occurring CasX PAM sequence allows access to, on average, approximately every 26 base pairs in the human genome. We have engineered XE variants to access a broadened set of PAM sequences to target approximately every 9 base pairs in the human genome. This re-specification is a demonstration of our differentiated engineering capabilities which we believe will ultimately allow us to potentially target the full human genome.

***Engineering XE into ELXR systems for gene repression***

***Background on epigenetic modulation***

The epigenome is a fundamental system of basic biology consisting of reversible marks that can durably regulate how much or how little the genome is read, transcribed and expressed. The molecular machinery of epigenetic systems can selectively mark specific regions of DNA, making them inaccessible, less active or silent. Conversely, these systems can also activate gene expression. This information is encoded at the molecular level by epigenetic marks, such as DNA methylation and histone modifications, which are used by cellular machinery to determine the relative expression of a gene.

Synthetic targeted epigenetic modulation is an emerging tool that actively manipulates cellular machinery by orchestrating the endogenous regulators of gene expression at a particular site to influence DNA transcription. Epigenetic modulators use fusions of DNA targeting domains and effector domains to write specific epigenetic marks at a target location in the gene, which can then control the level of gene expression.

The advent of CRISPR has enabled a new universally targetable, multiplexable, and leverageable platform that has demonstrated the ability to install durable epigenetic silencing. Epigenetic modulation is notably distinct from traditional double strand break, or DSB, induced gene editing as well as

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attachment-based approaches such as base editing and prime editing, by effecting a wholly cut-free method of manipulating gene expression. This novel approach avoids DNA cutting or nicking entirely by changing only epigenetic marks, leaving the genetic sequence intact.

Epigenetic modulators use fusions of DNA targeting domains and epigenetic effector domains to write specific marks at a target location. ELXR uses a nuclease inactivated version of XE, or dXE, as the DNA targeting domain. Data demonstrating the complete ablation of genetic modification activity can be seen below where the mutation of three active site coordinate residues lead to a complete reduction of genome editing activity in a cell culture assay.

We subsequently engineered ELXR molecules by appending novel effector domains involved in repressive epigenetic modification. These domains were identified from comprehensive screens of tens of thousands of repressor domains mined from diverse sources or have been engineered from known human epigenetic modifying enzymes.

![LOGO](g21355g00x28.jpg)

As shown in the data in the volcano plot below, we identified novel repressor domains that significantly outperformed the widely used repressor domains in knocking down the expression of a target gene in pooled human cell screens.

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![LOGO](g21355g00x29.jpg)

***Our ELXR solution***

ELXR is our proprietary epigenetic repressor designed to achieve durable epigenetic silencing by, directly and indirectly, writing epigenetic marks on both histones and DNA, as shown in the image below.

![LOGO](g21355g00x30.jpg)

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ELXR utilizes a nuclease-inactivated version of the XE technology combined with epigenetic repressive domains. We believe ELXR has key advantages in gene silencing, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **High activity and durability:** We have observed that ELXR has the ability to induce near complete gene silencing that
is heritable through cell division persisting in long-term assays in rapidly dividing cell cultures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Intrinsic and engineered specificity:** We believe the mechanism of ELXR could significantly improve the safety of
genetic medicine given that epigenetic marks must be written precisely to avoid being rapidly reversed by cell machinery. Furthermore, we've engineered an allosteric "lock" on epigenetic marking that creates a new framework for
higher-fidelity, lower-risk epigenetic therapies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Potential for reversibility:** Given ELXR leaves the target DNA sequence unchanged, we believe epigenetically silenced
genes may be returned to their pre-modified state through small molecule treatment or targeted activation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Potential for multiplexing:** Because ELXR does not cleave or nick DNA, we believe there is minimal risk of
translocations or genomic instability. Therefore, ELXR may have significant applications in multiplex gene silencing allowing it to address multifactorial diseases.

Given the activity, durability, specificity, and reversibility we have observed, we believe epigenetic modification with ELXR may be applied to many of the same targets as ASOs, siRNAs and antibodies, to create therapeutics with potentially enhanced safety, efficacy, and durability.

***ELXR activity and durability***

We are designing ELXR to durably modulate gene expression at high levels. We have used our differentiated engineering approach to consistently improve the profile of our ELXR through multiple revolutions. To assess the potential activity of ELXR prototypes, we measured the level of on-target DNA methylation in an in vitro cell culture model at five days post-treatment via NGS. As shown on the graph on the left below, we observed approximately 80% on-target DNA methylation on average across the ELXR prototypes. To understand the potential for durability, we conducted a separate study in which we assessed the percentage of cells repressed by ELXR at different points in time following a single administration of ELXR at day 0. For this assay we specifically chose a rapidly dividing cell culture to understand how DNA methylation is transmitted across multiple generations of cells. As shown on the graph on the right, we observed an increase in durability over the course of development, with our ELXRv4 prototype demonstrating greater than 90% repression over the course of 120 days.

![LOGO](g21355g00x31.jpg)

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***ELXR intrinsic and engineered specificity***

Epigenetic marks must be written precisely to persist through cell division and avoid being rapidly reversed by cell machinery. We have sought to address the inherent challenges of off-target epigenetic modification by engineering our epigenetic writer domains to have greater activity on-target. To assess the potential for specificity of ELXR prototypes compared to a similar Cas9-based epigenetic repressor, we measured the level of off-target DNA methylation at a non-targeted sentinel locus that is sensitive to global methylation changes in an in vitro cell culture model at five days post-treatment via NGS. As seen in the graph on the left below, we observed a decrease in off-target engagement from our ELXRv1 to ELXRv4 prototypes, as shown by DNA methylation, that was substantially lower than the Cas9-based epigenetic repressor. Additionally, in a second study, cells treated with ELXR repressed only the target gene as measured by bulk RNA-SEQ. As shown in the graph on the right below, ELXR v4 was highly specific on the transcriptome. These data represent differential expression analysis of human cell lines treated in triplicate with mRNA+gRNA versus untreated cells. Dotted lines represent cutoff values for calling a differentially expressed gene (p-adjusted less than 0.0001, \|log-fold change\| greater than 2).

![LOGO](g21355g00x32.jpg)

***ELXR potential for reversibility***

Given ELXR leaves the target DNA sequence unchanged, we believe epigenetically silenced genes may be returned to their pre-modified state through treatment with small molecules or targeted epigenetic activation. This feature could allow an ELXR treatment to be reversed if desired. To evaluate the ability of epigenetic modification to repress a target gene and reverse that repression, we utilized both an ELXR and an XE molecule to target and knock-out or repress a gene. We then measured this repression over 8 weeks and observed that both the ELXR and XE molecule achieved similar results of greater than 80% repression or knock-out, respectively. We then transferred the repressed cells into media with an increasing dose of a clinically approved small molecule that inhibits the propagation of epigenetic marks after cell division. As depicted in the graph below, until the application of the small molecule, the cells treated using ELXR experienced stable target repression, similar to the level of knock-out observed in the cells treated with our XE molecule. However, while the XE treated cells showed ongoing inactivation after the application of the small molecule, the target gene expression observed using ELXR showed a trend towards reversibility in a dose-dependent manner.

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Level of target repression and target knockdown by ELXR and XE molecules before and after epigenetic reactivation

![LOGO](g21355g00x33.jpg)

***ELXR potential for multiplexing***

Many diseases are multifactorial and caused by a complex set of genetic factors rather than single gene mutation or single point mutation. Because epigenetic modification leaves the target DNA sequence unchanged and results in no direct damage to the DNA sequence, we believe epigenetic modulation can provide a safe tool for multiplexing the repressions of various targets. As a result, we believe ELXR could provide a powerful tool for addressing complex and multifaceted diseases.

Given the activity, durability, specificity, and reversibility we have observed, we believe epigenetic modification with ELXR may be applied to many of the same targets as ASOs, siRNAs and antibodies, to create therapeutics with potentially enhanced safety, efficacy, and durability.

**Continued enhancement and expansion of our CRISPR technologies**

We plan to continue to iterate through engineering cycles, improved by the flywheel effects of our CRISPR by Design approach, to further improve our initial ELXR and XE technologies. We remain committed to building the right tool for the job and plan to evaluate the strategic value of building additional technologies such as epigenetic activators, nucleobase editors, RT-based editors, and others.

**Manufacturing** 

We do not currently own or operate manufacturing facilities. At this time, we utilize third-party CDMOs for manufacturing our drug substances and drug products in accordance with cGMP. We believe there are multiple CDMOs that can provide sources for all of the materials required for the manufacturing of our product candidates. At the appropriate time in the product development process, we will determine whether to establish in-house GMP manufacturing capabilities for some core technologies or continue to rely on third parties to manufacture commercial quantities for any products that we may successfully develop. Our personnel have extensive technical, manufacturing, analytical and quality experience and are qualified to oversee our contracted manufacturing and testing activities.

**Competition** 

The pharmaceutical and biotechnology industries, including the genetic medicine and gene editing fields, are characterized by rapidly advancing technologies, intense competition and a strong

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defense of intellectual property. We believe that our CRISPR-based technologies, ELXR and XE, are highly differentiated and that our considerable expertise, as well as our team's extensive experience with genome editing technologies, provide us with significant competitive advantages. Nevertheless, we face competition from multiple sources, including large and specialty pharmaceutical and biotechnology companies, academic research institutions and governmental agencies and public and private research institutions.

There are several companies utilizing CRISPR-Cas9 technology in clinical stage trials, including CRISPR Therapeutics AG, Editas Medicine, Inc., Intellia Therapeutics, Inc. and Caribou Biosciences, Inc. In addition, companies using Cas attachment technologies in clinical stage trials include Verve Therapeutics, a subsidiary of Eli Lilly, Beam Therapeutics Inc., Prime Medicine Inc., Tessera Therapeutics, Inc., Mammoth Biosciences, Inc., Arbor Biotechnologies, Inc. and Metagenomi Inc., among others. More recently, several companies have emerged focusing on epigenetic modification to modulate protein expression without directly editing DNA, such as nChroma Bio, Inc., Epicrispr Biotechnologies, and Tune Therapeutics, Inc. We are aware of a number of genetic medicine companies with operations outside of the US with active cardiometabolic programs, including AccurEdit Therapeutics, CorrectSequence Therapeutics, Epigenetic Therapeutics Co, Ltd., HuidaGene Therapeutics Co, Ltd., Yoltech Therapeutics Co, Ltd., among others. Several additional companies utilize alternative nuclease-based epigenetic modification technologies, including ZFNs, engineered meganucleases and TALENs. In addition, we face competition from companies utilizing small interfering RNA, oligonucleotides, cell therapy therapeutic approaches and LNP delivery technologies to create therapeutics including Corsera Health Inc.

Our lead candidate and development programs target genetic risk factors of ASCVD. There are several approved products for LDL-C lowering or cardiovascular risk reduction, such as statins, ezetimibe, bempedoic acid, lomitapide, mipomersen and icosapent ethyl. There are also several approved products that target PCSK9 protein as a mechanism to lower LDL-C and reduce the risk of ASCVD, including evolocumab, which is a mAb marketed as Repatha<sup>®</sup> by Amgen Inc., alirocumab, which is a mAb marketed as PRALUENT<sup>®</sup> by both Sanofi and Regeneron Pharmaceuticals, Inc., and inclisiran, which is a siRNA marketed as LEQVIO<sup>®</sup> by Novartis.

We are also aware of at least one other gene editing program targeting PCSK9 in development by Verve Therapeutics, a subsidiary of Eli Lilly. Additionally, there are other investigational therapies targeting PCSK9, as an orally administered peptide or small molecule, including Merck & Co., Inc.'s enlicitide and AstraZeneca PLC's laroprovstat.

In addition, several investigational medicines designed to reduce Lp(a) are currently in clinical development. These include pelacarsen, an antisense oligonucleotide licensed by Novartis, olpasiran, an investigational siRNA medicine targeting Lp(a) licensed by Amgen, zerlasiran, an investigational siRNA medicine being developed by Silence Therapeutics plc., and lepodisiran, an investigational siRNA medicine being developed by Eli Lilly, and muvalaplin, an investigational small molecule inhibitor being developed by Eli Lilly. In addition, CRISPR Therapeutics AG and Verve Therapeutics, a subsidiary of Eli Lilly, have disclosed programs targeting Lp(a) in clinical or preclinical development.

Further, several medicines designed to reduce APOC3 are currently approved and in clinical development. These include olezarsen, an antisense oligonucleotide marketed as TRYNGOLZA<sup>™</sup> by Ionis Pharmaceuticals, Inc., approved for FCS, and plozasiran, an siRNA medicine targeting APOC3 marketed as REDEMPLO<sup>®</sup> by Arrowhead Pharmaceuticals, Inc., and approved for FCS.

Any product candidates that we successfully develop and commercialize will compete with existing therapies and new therapies that may become available in the future that are approved to treat the same diseases for which we may obtain approval for our product candidates. This may include gene medicines companies with other approaches, as well as other types of therapies.

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Many of our competitors, either alone or in combination with their respective strategic partners, have significantly greater financial resources and expertise in research and development, manufacturing, the regulatory approval process and marketing than we do. Mergers and acquisitions in the pharmaceutical, biotechnology and gene medicines industries may result in resources becoming increasingly concentrated among a smaller number of our competitors. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. We also compete with these companies to recruit and retain qualified scientific and management personnel. We will also face significant competition in other areas as we approach commercialization of any product candidates, including establishing clinical trial sites, recruiting patient registration for clinical trials, establishing sales and marketing networks and producing technologies complementary to, or necessary for, our programs.

Our commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are safer or more effective, particularly if they represent cures, or are better tolerated, more convenient, or less expensive than any products that we may develop. Our competitors also may obtain FDA or other regulatory approval for their products more rapidly than we may obtain approval for ours, which could result in our competitors establishing a strong market position before we are able to enter the market, or may establish more effective sales and marketing platforms. The key competitive factors affecting the success of all of our programs are likely to be their efficacy, safety, convenience and availability of reimbursement, as well as our ability to effectively market our products.

**Material agreements** 

**Regents Exclusive License Agreements** 

On September 25, 2018, we entered into an exclusive license agreement with the Regents, which was amended and restated on September 24, 2020, or, as amended from time to time, the UCB Exclusive License Agreement. Under the UCB Exclusive License Agreement, the Regents granted us an exclusive, worldwide license, with the right to grant sublicenses, under the Regents' rights in specified patent rights relating to RNA-guided nucleic acid modifying enzymes and methods of use thereof and variant Type V CRISPR/CAS effector polypeptides, which we collectively refer to as CasX and CasY, to make, have made, use, have used, sell, offer to sell and import products and services and practice methods involving CasX and CasY (to the extent covered by the licensed patent rights) for treatment of all human diseases (except infectious viral diseases and diagnostic applications). The Regents also granted us a non-exclusive, worldwide license, with the right to grant sublicenses, under the same Regents' patent rights as described above to make, have made, use, have used, sell, offer to sell and import products and services and practice methods involving use of CasX and CasY covered by the patent rights for agricultural, veterinary, industrial bio-production and environmental applications (excluding diagnostic applications). The UCB Exclusive License Agreement is subject to the Regents' retained rights to make and use the patented inventions, licensed products, services and methods and associated technology, and to allow other educational and non-profit institutions, including the Howard Hughes Medical Institute, to do so for educational and research purposes. Additionally, due to federal funding of research giving rise to the patent rights licensed to us by the Regents, the U.S. government has rights in certain in-licensed patent applications, including a non-exclusive license authorizing the U.S. government to use the invention or to have others use the invention on its behalf as well as "march-in" rights permitting to use or allow third parties to use the technology developed using U.S. government funding. See "Risk Factors—Risks Related to Intellectual Property—Our rights to develop our CRISPR-based technologies, ELXR and XE, and to develop and commercialize our product candidates are subject, in part, to the terms and conditions of licenses granted to us by others."

Under the UCB Exclusive License Agreement, we are obligated to diligently proceed with the development manufacture, and sale of licensed products, services and methods in quantities sufficient

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to meet market demand. We are also obligated to meet certain clinical stage development regulatory approval, and commercial milestones by certain specified achievement dates. If we do not meet such a milestone by the applicable achievement date or opt to not extend such date, the Regents may terminate the UCB Exclusive License Agreement or change our exclusive license to a non-exclusive license.

In consideration for the rights granted under the UCB Exclusive License Agreement, we (i) paid a $0.1 million upfront license fee, (ii) issued to the Regents 756,370 shares of our common stock, (iii) issued to the Regents a warrant to purchase 440,133 shares of our common stock with an exercise price per share equal to $0.52 per share that expires upon the earlier of the ten-year anniversary of its issuance, the closing of our initial public offering or upon a change of control, and (iv) agreed to pay an annual license maintenance fee of $50,000 beginning from September 2019.

We may also be required to pay up to $27.7 million in future development and regulatory milestone payments and up to $3.6 million in future commercial milestone payments with respect to all licensed products, and royalties at percentage rates ranging in the low to mid-single digits on future net sales by us and our sublicensees of licensed products, services and methods, if any, subject to certain minimum annual royalty payments following commercialization. Such royalties may be increased if we or our sublicensees challenge the patent rights licensed to us by the Regents and decreased if we are required to pay a third party for rights to intellectual property in order to produce or practice a licensed product, service or method, but such decrease would not apply to royalties owing to net sales made by our sublicensees. The foregoing royalties will be payable to the Regents until the expiration of all patent rights licensed to us by the Regents. Additionally, we are required to pay a specified percentage of non-royalty sublicensing revenue we receive including cash and premium paid on equity under any sublicensing agreements, subject to certain exceptions.

The term of the UCB Exclusive License Agreement will expire on the date of the last-to-expire valid claim under the Regents' patent rights licensed to us. As of December 31, 2025, we estimate that the last patent right licensed under the UCB Exclusive License Agreement will expire in 2039, without giving effect to any potential patent term extensions or patent term adjustments. We may terminate the UCB Exclusive License Agreement in whole or as to any portion of the Regents' patent rights upon a specified written notice period. The Regents have the right to terminate the UCB Exclusive License Agreement, upon written notice, in the event we violate or fail to perform any term of the UCB Exclusive License Agreement, subject to a notice and cure period.

**Acuitas Therapeutics Inc.** 

*Development and Option Agreement* 

On November 7, 2022, we entered into a development and option agreement, or the Acuitas Development and Option Agreement, with Acuitas Therapeutics, Inc., as supplemented and amended from time to time, the Acuitas Agreement, Under the Acuitas Agreement, we and Acuitas agreed to conduct a program to evaluate and develop product candidates combining our gene editing technology and the LNP technology of Acuitas.

The Acuitas Agreement provides us the option to enter into non-exclusive, worldwide license agreements with respect to reserved human genome targets, with the right to sublicense (subject to certain restrictions), under Acuitas' patent rights and know-how covering its LNP technology to exploit licensed products for all human therapeutic or prophylactic uses. We may exercise our option with respect to a specified number of products directed to reserved targets (each of which we refer to herein as an Option). Under the Acuitas Agreement, we may non-exclusively reserve certain targets for potential use in the program.

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In consideration for the rights granted under the Acuitas Agreement, we paid a technology access fee of $0.4 million for each Option. We are also obligated to pay to Acuitas an annual target reservation fee of $0.1 million per target for each target we elect to reserve until we exercise our Option with respect to such target or such target is removed from the list of reserved targets. Upon exercising an Option to enter into a non-exclusive license agreement for a human genome target, we will be required to pay Acuitas a $3.0 million option exercise fee, subject to reduction by the target reservation and maintenance fees that are creditable against the option exercise fee for the applicable target.

The term of the Acuitas Agreement will expire on November 7, 2027. We have the right to terminate the Acuitas Agreement in its entirety upon a specified written notice period. Additionally, either party can terminate the Acuitas Agreement for the other party's uncured material breach or bankruptcy.

*License Agreement* 

If we exercise our Option to enter into a non-exclusive license agreement for any licensed product, we agreed to enter into a pre-negotiated license agreement pursuant to which we will be required to pay Acuitas up to $20.0 million in future development and regulatory milestone payments, and up to $40.0 million in future commercial milestone payments per licensed product. We will also be obligated to pay Acuitas royalties at percentage rates in the low single digits on future net sales of licensed products by us and our sublicensees, subject to reduction under certain customary conditions. The royalties will be payable on a country-by-country and licensed product-by-licensed product basis commencing on the first commercial sale of a licensed product in a country and continuing until the latest of: (i) the expiration of the last to expire valid claim of a licensed patent that covers such licensed product in such country, (ii) expiration of regulatory exclusivity for such licensed product in such country, and (iii) ten years from the first commercial sale of such licensed product in such country.

In December 2023, we exercised an Option with respect to a licensed product and a licensed genome target and entered into a non-exclusive, worldwide license with Acuitas, with a right to sub-license through multiple tiers, under the licensed LNP technology to research, develop and commercialize the licensed products using the LNP technology, or the Acuitas License Agreement. The Acuitas License Agreement is substantially in the form of pre-negotiated license agreement described above and attached as an exhibit to the Acuitas Development and Option Agreement.

The term of such license agreement will expire on a licensed product-by-licensed product and country-by-country basis upon the expiration of our obligation to pay royalties to Acuitas with respect to such licensed product in such country. We will have the right to terminate such license agreement in its entirety upon a specified written notice period. Additionally, either party will be able to terminate such license agreement for the other party's uncured material breach or bankruptcy.

**Sanofi – 2023 *in vivo* Exclusive License Agreement** 

On June 19, 2023, we entered into an exclusive license agreement, or the 2023 Sanofi License Agreement, with Genzyme Corporation, a Sanofi affiliate. Under the 2023 Sanofi License Agreement, we granted Sanofi, an exclusive, worldwide, license, with the right to sublicense (subject to certain restrictions), under any patent rights and know-how that are owned or controlled by us relating to our CRISPR CasXE genome editing technologies and target specific gRNA molecules for the research, development, manufacture, and commercialization of *in vivo* gene editing therapies directed to sickle cell disease, with an option to expand to additional targets for the diagnosis, prevention and treatment of any disease, but excluding infectious viral diseases.

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Under the 2023 Sanofi License Agreement, we are obligated to use commercially reasonable efforts to use our proprietary screening systems and know-how to identify potential gRNA molecules for Sanofi's licensed targets and provide Sanofi with details regarding such potential gRNA molecules while Sanofi is responsible for all other activities.

In consideration for the rights granted under the 2023 Sanofi License Agreement, we received an upfront payment of $40.0 million, approximately $15.0 million through December 31, 2025 in fees and milestones and may receive up to an additional $410.0 million in aggregate in payments for nomination fees, research, development and regulatory milestones, and up to $825.0 million in aggregate in commercial milestones for all targets, assuming one licensed product is developed for each licensed target, as well as tiered royalties ranging from the high single-digit to low teens percentages on future net sales of licensed products, if any, subject to reduction under certain specified conditions. The royalties will be payable on a country-by-country and licensed product-by-licensed product basis commencing on the first commercial sale in a country and continuing until the latest of: (i) the date on which the sale of such licensed product would no longer infringe a valid claim in such country, (ii) expiration of regulatory exclusivity of such licensed product in such country, or (iii) a low two-digit number of years from the first commercial sale of such licensed product in such country.

We also have a right to opt into global development cost sharing, as well as co-promotion and profit and loss sharing in the United States on one future licensed target. In the event we exercise our opt-in right on one future licensed target, the development and regulatory milestone payments applicable to the licensed products directed to such licensed target will be subject to reduction and the royalty rates for sales of the associated product outside of the United States will be subject to certain upward adjustments. In the event we exercise our opt-in right and subsequently opt-out, the royalty rates may be subject to certain upward adjustments.

The term of the 2023 Sanofi License Agreement will expire on a licensed product-by-licensed product and country-by-country basis upon the expiration of Sanofi's obligation to pay royalties to us, or, if applicable, the cost sharing term. Sanofi has the right to terminate the 2023 Sanofi License Agreement with respect to a licensed product, licensed target or in its entirety for convenience, upon a specified notice period. If Sanofi terminates the 2023 Sanofi License Agreement for convenience, we have a right of first negotiation for a license under certain of Sanofi's intellectual property rights developed under the 2023 Sanofi License Agreement that covers the terminated licensed products. We have the right to terminate the 2023 Sanofi License Agreement in the event that Sanofi or its affiliate or sublicensee brings any legal action seeking to invalidate any licensed patent. Additionally, either party can terminate the 2023 Sanofi License Agreement for the other party's uncured material breach or bankruptcy.

**Prevail Therapeutics, Inc. – Exclusive License and Collaboration Agreement** 

On May 11, 2023, we entered into a license and collaboration agreement, or the Lilly License Agreement, with Prevail Therapeutics, Inc., a wholly owned subsidiary of Eli Lilly and Company, for research and development collaborations and granting to Prevail exclusive license rights under patents and technology for certain products. Under the Lilly License Agreement, we granted to Prevail an exclusive, worldwide license, with the right to sublicense (subject to certain restrictions), under any patent rights and know-how that are owned or controlled by us that are necessary or reasonably useful for research, development, and manufacturing of *in vivo* gene editing therapies that incorporate a CasX editor for the development of *in vivo* therapies directed to specified targets known to cause serious neurological and neuromuscular diseases, but with respect to certain of the patent rights excluding certain infectious viral diseases. Prevail is obligated to use commercially reasonable efforts to obtain regulatory approval for at least one licensed product directed to each licensed target in the United States and at least one other major market country.

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As consideration for the licensed rights, we received upfront consideration of a $45 million cash payment. In addition, Prevail has paid us $5 million in research and development milestone payments through December 31, 2025 and is obligated to pay us up to an additional $155 million in aggregate research and development milestone payments and up to $1.4 billion in aggregate commercial milestone payments (in each case, assuming one licensed product is developed for each licensed target and we have not opted into profit and loss sharing, discussed below), as well as, tiered royalties (subject to reductions) in the mid-single digit to low teens percentages on annual worldwide net sales of such licensed product. The royalties will be payable on a licensed product-by-licensed product and country-by-country basis, from the date of first commercial sale of such licensed product in a country until the latest of (i) the expiration of the last valid claim within the licensed patent rights covering such licensed product in the country in which such licensed product is made, used or sold, (ii) the expiration of the data, regulatory or market exclusivity periods conferred by the applicable regulatory authority in such country with respect to such licensed product, and (iii) the tenth anniversary following the date of the first commercial sale of such licensed product in such country.

We also have a right to opt in to development cost sharing, as well as profit and loss sharing in the United States on one licensed target. In the event we exercise our opt-in right, the commercial milestone payments applicable to licensed products directed to such licensed target will be subject to reduction and the royalty rates for sales of the co-developed product outside of the United States will be subject to certain upward adjustments.

The agreement will expire on a licensed product-by-licensed product basis upon the later of (i) the expiration of the last to expire royalty term in the country for such licensed product and (ii) the expiration of the cost-sharing term. At any time, Prevail may terminate the agreement without cause in its entirety or on a research plan-by-research plan, licensed target-by-licensed target or licensed product-by-licensed product basis upon specified written notice. We may terminate the agreement in part solely with respect to a licensed patent that Prevail directly or indirectly challenges, opposes, seeks to invalidate or render void or unenforceable, subject to certain exceptions. Either party may terminate the agreement for the other party's uncured material breach.

**Intellectual property** 

Our commercial success depends in large part on our ability to obtain and maintain patent protection in the United States and other countries for our current and future CRISPR-based technologies and related product candidates. We seek to protect our proprietary position by, among other methods, filing and in-licensing U.S. and foreign patents and patent applications. We also rely on trademarks, trade secrets, and confidential know-how to develop and maintain our proprietary position.

Generally, issued patents have a term of 20 years from the earliest claimed non-provisional filing date in the applicable country. In certain instances in the United States, patent terms can be adjusted to recapture a portion of delay by the USPTO in examining the patent application, or extended to account for patent term effectively lost as a result of the FDA regulatory review process, or both. Similar provisions are available in Europe and certain other jurisdictions to extend the term of a patent.

As of December 31, 2025, our patent estate, which consists of owned and in-licensed (from UCB) patents and applications, includes 10 issued U.S. patents, 30 pending U.S. non-provisional patent applications, 12 issued foreign patents, 214 pending foreign patent applications, and 3 pending international patent applications filed under the Patent Cooperation Treaty (PCT patent application), not yet nationalized. The foreign patents and applications are in various countries or regions outside of the U.S., including Argentina, Australia, Brazil, Canada, Chile, China, Colombia, Egypt, Hong Kong, India, Israel, Japan, Mexico, New Zealand, Peru, Philippines, Qatar, Saudi Arabia, Singapore, South Africa, South Korea, Taiwan, United Arab Emirates, and countries within the European Patent Convention and the Eurasian Patent Organization. These patents and applications include filings directed toward our ELXR and XE technologies, STX-1150, STX-1200 and STX-1400, as well as

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CRISPR-related technologies available for partnering in the areas of neuromuscular diseases, neurological diseases, hemoglobinopathies, retinal disorders, immunotherapies, *ex vivo* technologies, and delivery platforms. The issued patents, and any patents that issue from the pending patent applications are expected to expire between 2037 and 2045, without taking into account any potential patent term adjustments or extensions.

**Epigenetic Long-Term X-Repressor (ELXR) Technology** 

We own patent applications directed to the ELXR technology itself, providing compositions of matter, and their methods of making, delivery, and use. As of December 31, 2025, these filings include 3 pending U.S. non-provisional patent applications, and 44 pending foreign patent applications. Any patents that may be issued from these pending patent applications are expected to expire between 2043 and 2044, without taking into account any potential patent term adjustments or extensions.

**X-Editor (XE) Technology** 

We in-licensed certain patents and applications from UCB that relate to CasX proteins, methods of making and using the CasX proteins, as well as guide molecules to be used with the CasX proteins and methods of making and using them. As of December 31, 2025, the in-licensed patents and applications include 4 issued U.S. patents, 1 pending U.S. non-provisional patent application, 4 issued foreign patents, and 13 pending foreign patent applications. Three of the issued U.S. patents are expected to expire in September 2037, and one of the issued U.S. patents is expected to expire in August 2039, absent any patent term adjustments or extensions. Other patents that may be issued from these pending applications are also expected to expire between 2037 and 2039, without taking into account any potential patent term adjustments or extensions.

We also own patents and applications directed to engineered CasX variants, engineered guide molecules, gene editing systems, their discovery using directed molecular evolution techniques, and methods of making, delivery, and their use. These patents and applications also provide engineered catalytically inactive CasX variant product candidates for use in our ELXR technology. As of December 31, 2025, our XE technology patent portfolio includes 3 issued U.S. patents, 7 pending U.S. non-provisional patent applications, 6 issued foreign patents, and 53 pending foreign patent applications, and 1 pending PCT patent application, which has not yet been nationalized. The issued U.S. patents provide coverage for CasX variant product candidates, and are expected to expire in June 2040 and December 2041, without taking into account any potential patent term adjustments or extensions. Other patents that may be issued from these pending applications are expected to expire between 2040-2044, without taking into account any potential patent term adjustments or extensions.

**STX-1150** 

We also own patent applications related to our ELXR technology for PCSK9, providing compositions of matter, and their methods of making, delivery, and use. As of December 31, 2025, these filings include 3 pending U.S. non-provisional patent applications and 50 pending foreign patent applications. Any patents that may be issued from these pending patent applications are expected to expire between 2043 and 2044, without taking into account any potential patent term adjustments or extensions.

**STX-1200** 

We also own patent applications related to our XE technology for LPA, providing compositions of matter, and their methods of making, delivery, and use. As of December 31, 2025, these filings include 1 pending U.S. non-provisional patent application, and 6 pending foreign patent applications. Any patents that issue from these pending patent applications are expected to expire in 2044, without taking into account any potential patent term adjustments or extensions.

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**STX-1400** 

We also own patent applications related to our XE technology for APOC3, providing compositions of matter, and their methods of making, delivery, and use. As of December 31, 2025, these filings include 1 pending PCT patent application that has not yet been nationalized. Any patents that issue from the national phase entries of this pending PCT patent application are expected to expire in 2045, without taking into account any potential patent term adjustments or extensions.

**Other Targets and Delivery Systems** 

Additionally, several of our owned patents and applications are directed to delivery platforms, including AAV vectors, CasX-delivery particles, and lipid nanoparticles, as well as *ex vivo* technologies. Our patent estate includes patents and applications directed to targets in the areas of neuromuscular diseases, neurological diseases, hemoglobinopathies, immunotherapies, and retinal disorders. These filings also relate to compositions of matter and methods of making, delivery, and use of our CRISPR-related technologies for the targets. As of December 31, 2025, these patents and applications include 3 issued U.S. patents, 11 pending U.S. non-provisional patent applications, 2 issued foreign patents, and 46 pending foreign patent applications. The issued U.S. patents provide coverage for compositions and methods for using CasX to edit various targets, as well as platform delivery technologies, and are expected to expire in September 2041 and June 2042, without taking into account any potential patent term adjustments or extensions. Other patents that may issue from these pending applications are expected to expire between 2040 and 2043, without taking into account any potential patent term adjustments or extensions.

Although we will continue file patent applications and to seek to maximize the scope of our patent protection for all of our programs, we cannot provide any assurance that any patents will be issued from our pending or future applications or that any issued patents will adequately protect our products or product candidates. Without patent protection for our current or future product candidates, we may be open to competition from third parties. For more information, see section entitled "Risks related to our intellectual property."

We also maintain and are seeking registered trademarks. As of December 31, 2025, we own 23 registered trademarks and four pending trademark applications, and we expect these numbers to grow as our portfolio continues to evolve and expand.

We also protect the know-how underlying our CRISPR gene-editing technology and our CRISPR-related product candidates as trade secrets. To help protect our trade secrets, we rely, in part, upon confidentiality agreements with our commercial partners, collaborators, employees, and consultants, and invention assignment agreements with our employees. We limit the disclosure of our trade secrets to employees who have a need to know such information in order to perform their responsibilities. We also seek to preserve the integrity and confidentiality of our data and trade secrets by maintaining the physical security of our premises and physical and electronic security of our information technology systems. While we aim to ensure we have agreements in place to help protect our trade secrets and confidential know-how, these agreements may be breached, and we may not have adequate remedies for any resulting breach. In addition, our trade secrets may otherwise become known or be independently discovered by competitors. To the extent that our commercial partners, collaborators, employees, and consultants use intellectual property owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. For more information see section entitled "Risks related to our intellectual property."

Obtaining patents does not guarantee our right to practice or commercialize the patented technology. Third parties may have or in the future obtain rights to patents that could be used to

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prevent or attempt to prevent us from commercializing our CRISPR-related product candidates. If third parties prepare and file patent applications in the United States or other jurisdictions that also claim technology to which we have rights, we may have to participate in proceedings in the USPTO, such as interference or derivation proceedings, in the federal courts, or in similar proceedings in other jurisdictions to determine the priority of invention, or potential validity, enforceability, or infringement. For more information see section entitled "Risks related to our intellectual property."

**Government regulation and product approval** 

Government authorities in the United States, at the federal, state and local level, and in other countries and jurisdictions, extensively regulate, among other things, the research, development, testing, manufacture, quality control, approval, packaging, storage, recordkeeping, labeling, advertising, promotion, distribution, marketing, post-approval monitoring and reporting, and import and export of biological products. The processes for obtaining regulatory approvals in the United States and in foreign countries and jurisdictions, along with subsequent compliance with applicable statutes and regulations and other regulatory authorities, require the expenditure of substantial time and financial resources.

**FDA approval process** 

In the United States, biological products are subject to extensive regulation by the FDA. The Federal Food, Drug, and Cosmetic Act, or the FDC Act, the Public Health Service Act, or the PHSA, and other federal and state statutes and regulations, govern, among other things, the research, development, testing, manufacture, storage, recordkeeping, approval, labeling, promotion and marketing, distribution, post-approval monitoring and reporting, sampling, and import and export of biological products. Biological products used for the prevention, treatment or cure of a disease or condition of a human being are subject to regulation under the FDC Act, except the section of the FDC Act that governs the approval of new drug applications, or NDAs. Biological products are approved for marketing under provisions of the PHSA, via a BLA. However, the application process and requirements for approval of BLAs are very similar to those for NDAs, and biologics are associated with similar approval risks and costs as drugs. Failure to comply with applicable U.S. requirements may subject a company to a variety of administrative or judicial sanctions, such as clinical hold, FDA refusal to approve pending BLAs, warning or untitled letters, requests for product recalls, product seizures, total or partial suspension of production or distribution, injunctions, fines, civil penalties, and criminal prosecution.

The process required by the FDA before biologic product candidates may be marketed in the United States generally involves the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• completion of preclinical laboratory tests, including those conducted in accordance with GLPs, and other applicable
regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• submission to the FDA of an IND, which must become effective before human clinical trials may begin;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approval by an independent institutional review board, or IRB, or ethics committee at each clinical site before each trial
may be initiated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performance of adequate and well-controlled human clinical trials in accordance with regulations governing human subject
protection and the conduct of clinical trials, GCPs, to evaluate the safety, purity and potency of the product candidate for its intended use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• submission to the FDA of a BLA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a determination by the FDA within 60 days of its receipt of a BLA to file the application for review;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• satisfactory completion of one or more FDA inspection of the manufacturing facility or facilities at which the biologic is
produced to assess compliance with cGMPs to assure that the facilities, methods and controls are adequate to preserve the biologic's identity, strength, quality and purity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• satisfactory completion of potential inspection of selected clinical investigation sites to assess compliance with GCPs;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FDA review and approval of the BLA to permit commercial marketing of the product for particular indications for use in the
United States.

Once a product candidate is identified for development, it enters the preclinical testing stage. Preclinical tests can include laboratory evaluations of product chemistry, toxicity and formulation, as well as animal studies. A sponsor must submit the results of the preclinical tests, together with manufacturing information and analytical data, to the FDA as part of an IND. An IND is a request for authorization from the FDA to administer an investigational product to humans. An IND will also include a protocol detailing, among other things, the objectives of the clinical trial, the parameters to be used in monitoring safety, and the effectiveness criteria to be evaluated, if the trial includes an efficacy evaluation. Some preclinical testing may continue after the IND is submitted. A 30-day waiting period after the submission of each IND is required prior to the commencement of clinical testing in humans. If the FDA has neither commented on nor questioned the IND within this 30-day period, the clinical trial proposed in the IND may begin. Clinical trials involve the administration of the investigational biologic to healthy volunteers or patients under the supervision of a qualified investigator. Clinical trials must be conducted: (i) in compliance with federal regulations; (ii) in compliance with GCP, an international standard meant to protect the rights and health of patients and to define the roles of clinical trial sponsors, administrators and monitors; and (iii) under protocols detailing the objectives of the trial and the criteria to be evaluated.

Each protocol involving testing on humans and subsequent protocol amendments must be submitted to the FDA as part of the IND, and a separate submission to the existing IND must be made for each successive clinical trial conducted during product development and for any subsequent protocol amendments. While the IND is active, progress reports summarizing the results of the clinical trials and preclinical studies performed since the last progress report, among other information, must be submitted at least annually to the FDA, and written IND safety reports must be submitted to the FDA and investigators for serious and unexpected suspected adverse events, findings from other studies suggesting a significant risk to humans exposed to the same or similar drugs or biologics, findings from animal or *in vitro* testing suggesting a significant risk to humans, and any clinically important increased incidence of a serious suspected adverse reaction compared to that listed in the protocol or investigator brochure.

The FDA may order the temporary or permanent discontinuation of a clinical trial at any time, or impose other sanctions if it believes that the clinical trial either is not being conducted in accordance with FDA regulations or presents an unacceptable risk to the clinical trial patients. Imposition of a clinical hold may be full or partial. The study protocol and informed consent information for patients in clinical trials must also be submitted to an IRB for approval. The IRB will also monitor the clinical trial until completed. An IRB may also require the clinical trial at the site to be halted, either temporarily or permanently, for failure to comply with the IRB's requirements, or may impose other conditions. Some trials are overseen by an independent group of qualified experts organized by the trial sponsor, known as a data safety monitoring board or committee, or DSMB. This group provides authorization as to whether or not a trial may move forward at designated check points based on access that only the group maintains to available data from the study.

Finally, research activities involving infectious agents, hazardous chemicals, recombinant DNA and genetically altered organisms and agents may be subject to review and approval of an Institutional

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Biosafety Committee, or IBC, in accordance with the National Institutes of Health, or NIH, Guidelines for Research Involving Recombinant or Synthetic Nucleic Acid Molecules. The IBC assesses the safety of the research and identifies any potential risk to public health or the environment, and such review may result in some delay before initiation of a clinical trial. While the NIH Guidelines are not mandatory unless the research in question is being conducted at or sponsored by institutions receiving NIH funding for recombinant or synthetic nucleic acid molecule research, many companies and other institutions not otherwise subject to the NIH Guidelines voluntarily follow them.

Clinical trials to support BLAs are typically conducted in three sequential phases, but the phases may overlap. In Phase 1, the initial introduction of the biological product candidate into patients, the product is tested to assess safety, dosage tolerance, metabolism, pharmacokinetics, pharmacological actions, side effects associated with drug exposure, and to obtain early evidence of a treatment effect if possible. Phase 2 usually involves trials in a limited patient population to determine the preliminary effectiveness of the biological product candidate for a particular indication, determine optimal dose and regimen, and to identify common adverse effects and safety risks. If a biological product candidate demonstrates evidence of effectiveness and an acceptable safety profile in Phase 2 evaluations, Phase 3 trials are undertaken to obtain additional information about clinical effects and further evaluate efficacy and safety in a larger number of patients, typically at geographically dispersed clinical trial sites, to permit the FDA to evaluate the overall benefit-risk relationship of the biological product candidate and to provide adequate information for the labeling of the product. In most cases, the FDA requires two adequate and well-controlled clinical trials to demonstrate the safety, purity, and potency (alternatively referred to as safety and effectiveness) of the biological product candidate. In some instances, a single adequate and well-controlled trial may be sufficient, such as when either (1) the trial is a large, multicenter trial demonstrating internal consistency and a statistically very persuasive finding of a clinically meaningful effect on mortality, irreversible morbidity or prevention of a disease with a potentially serious outcome and confirmation of the result in a second trial would be practically or ethically impossible or (2) the single trial is supported by confirmatory evidence Post-approval trials, sometimes referred to as Phase 4 studies, may be conducted after BLA approval. These trials are used to gain additional experience from the treatment of patients in the intended therapeutic indication. In certain instances, the FDA may mandate the performance of Phase 4 clinical trials as a condition of approval of a BLA.

In addition, the manufacturer of an investigational biologic in a Phase 2 or Phase 3 clinical trial for a serious or life-threatening disease is required to make available, such as by posting on its website, its policy on evaluating and responding to requests for expanded access to such investigational biologic.

Concurrent with clinical trials, a sponsor must also develop additional information about the chemistry and physical characteristics of the biologic and finalize a process for manufacturing the product in commercial quantities in accordance with cGMPs. The manufacturing process must be capable of consistently producing quality batches of the product candidate and, among other things, the manufacturer must develop methods for testing the identity, strength, quality and purity of the final product. In addition, appropriate packaging must be selected and tested, and stability studies must be conducted to demonstrate that the product candidate does not undergo unacceptable deterioration over its shelf life.

**BLA review and approval process** 

After completion of the required clinical testing, a BLA is prepared and submitted to the FDA. FDA approval of the BLA is required before marketing and distribution of the product may begin in the United States. The BLA must include the results of all preclinical, clinical, and other testing and data relating to the product's pharmacology, chemistry, manufacture, and controls. The cost of preparing and submitting a BLA is substantial. The submission of most BLAs is additionally subject to a

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substantial application user fee. Under an approved BLA, the applicant is also subject to an annual program fee. These fees typically increase annually. A waiver of user fees may be obtained under certain limited circumstances.

The FDA has 60 days from its receipt of a BLA to determine whether the application will be filed based on the FDA's determination that it is sufficiently complete to permit substantive review. The FDA may refuse to file any BLA that it deems incomplete or not properly reviewable at the time of submission. Once the BLA submission is filed, the FDA reviews the application to determine, among other things, whether the biologic is safe, pure and potent and the facility or facilities in which it is manufactured, processed, packed, or held meets standards designed to assure the product's continued safety, purity and potency. The FDA has agreed to certain performance goals under the Prescription Drug User Fee Act, or PDUFA, to complete its review of BLAs. Most applications are classified as Standard Review that are reviewed within ten months of the date the FDA files the BLA; most applications classified as Priority Review are reviewed within six months of the date the FDA files the BLA. A BLA can be classified for Priority Review when the FDA determines the biological product candidate has the potential to treat a serious or life-threatening condition and, if approved, would be a significant improvement in safety or effectiveness compared to available therapies. The review process for both standard and priority reviews may be extended by the FDA one time for three additional months to consider an amendment to the BLA considered by the FDA to be major. The FDA does not always meet its PDUFA goal dates for standard and priority BLAs, and the review process can be extended by FDA requests for additional information or clarification.

The FDA may also refer applications for novel biological products, as well as biological products that present difficult questions of safety or efficacy, to be reviewed by an advisory committee—typically a panel that includes clinicians, statisticians and other experts—for review, evaluation and a recommendation as to whether the BLA should be approved. The FDA is not bound by the recommendation of an advisory committee, but generally follows such recommendations.

Before approving a BLA, the FDA will typically inspect one or more clinical sites to assure compliance with GCP. Additionally, the FDA will inspect the facility or the facilities at which the biological product is manufactured. The FDA will not approve the product unless compliance with cGMP, requirements is satisfactory. For a gene editing or gene editing product, the FDA also may not approve the product if the manufacturer is not in compliance with Current Good Tissue Practices, or cGTP, if applicable. These are FDA regulations that govern the methods used in, and the facilities and controls used for, the manufacture of human cells, tissues and cellular and tissue-based products, or HCT/Ps, which are human cells or tissue intended for implantation, transplant, infusion, or transfer into a human recipient. The primary intent of the cGTP requirements is to ensure that cell and tissue-based products are manufactured in a manner designed to prevent the introduction, transmission and spread of communicable disease. Additionally, before approving a BLA, the FDA will typically inspect one or more clinical sites to assure that the clinical trials were conducted in compliance with GCP and other legal requirements. To assure cGMP, cGTP and GCP compliance, an applicant must incur significant expenditure of time, money and effort in the areas of training, record keeping, production and quality control.

After the FDA evaluates the BLA and completes any clinical and manufacturing site inspections, it issues either an approval letter or a complete response letter. A complete response letter indicates that the review cycle for the application is complete, and the application will not be approved in its present form, and generally outlines the deficiencies in the BLA submission and may require substantial additional testing, or information, in order for the FDA to reconsider the application for approval. If, or when, those deficiencies have been addressed to the FDA's satisfaction in a resubmission of the BLA, the FDA will issue an approval letter. The FDA has committed to reviewing such resubmissions in two or six months depending on the type of information included. An approval letter authorizes commercial marketing and distribution of the biologic with specific prescribing information for specific indications.

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As a condition of BLA approval, the FDA may require a REMS to help ensure that the benefits of the biologic outweigh the potential risks to patients. A REMS can include medication guides, communication plans for healthcare professionals, and elements to assure a product's safe use, or ETASU. An ETASU can include, but is not limited to, special training or certification for prescribing or dispensing the product, dispensing the product only under certain circumstances, special monitoring, and the use of patient-specific registries. The requirement for a REMS can materially affect the potential market and profitability of the product. Moreover, the FDA may require substantial post-approval testing and surveillance to monitor the product's safety or efficacy.

Once granted, product approvals may be withdrawn if compliance with regulatory standards is not maintained or problems are identified following initial marketing. Changes to some of the conditions established in an approved BLA, including changes in indications, product labeling, or manufacturing processes or facilities, require submission and FDA approval of a new BLA, or supplement to an approved BLA, before the change can be implemented. A BLA supplement for a new indication typically requires clinical data similar to that in the original application, and the FDA uses the same procedures and actions in reviewing BLA supplements as it does in reviewing original BLAs.

**Expedited development and review programs** 

The FDA has a number of programs intended to expedite the development or review of a marketing application for an investigational biologic. For example, the fast track designation program is intended to expedite or facilitate the process for developing and reviewing product candidates that meet certain criteria. Specifically, investigational biologics are eligible for fast track designation if they are intended to treat a serious or life-threatening disease or condition and demonstrate the potential to address unmet medical needs for the disease or condition. The sponsor of a fast track product candidate has opportunities for more frequent interactions with the applicable FDA review team during product development and, once a BLA is submitted, the application may be eligible for priority review. With regard to a fast track product candidate, the FDA may consider for review sections of the BLA on a rolling basis before the complete application is submitted, if the sponsor provides a schedule for the submission of the sections of the BLA, the FDA agrees to accept sections of the BLA and determines that the schedule is acceptable, and the applicant pays any required user fees upon submission of the first section of the BLA.

A product candidate intended to treat a serious or life-threatening disease or condition may also be eligible for breakthrough therapy designation to expedite its development and review. A product candidate can receive breakthrough therapy designation if preliminary clinical evidence indicates that the product candidate, alone or in combination with one or more other drugs or biologics, may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development. The designation includes all of the fast track program features, as well as more intensive FDA interaction and guidance beginning as early as Phase 1 and an organizational commitment to expedite the development and review of the product candidate, including involvement of senior managers.

Certain biological product candidates may also be eligible for RMAT, designation. A product candidate can receive RMAT designation if (1) the product candidate is an RMAT, meaning that, with limited exceptions, the product candidate is a cell therapy, therapeutic tissue engineering product, human cell and tissue product, or any combination product using such therapies or products; (2) the product candidate is intended to treat, modify, reverse, or cure a serious or life-threatening disease or condition; and (3) preliminary clinical evidence indicates that the product candidate has the potential to address unmet medical needs for such a disease or condition. Based on FDA's interpretation of the FDC Act, certain human gene therapies and xenogeneic cell products may also meet the definition of a regenerative medicine therapy. RMAT designation provides all the benefits of breakthrough therapy

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designation, including more frequent meetings with the FDA to discuss the development plan for the product candidate and eligibility for rolling review of a BLA submission. Product candidates granted RMAT designation may also be eligible for accelerated approval on the basis of a surrogate or intermediate endpoint reasonably likely to predict long-term clinical benefit or through reliance upon data obtained from a meaningful number of clinical trial sites, including through expansion of trials to additional sites.

Any product candidate submitted to the FDA for approval, including a product candidate with a fast track designation, breakthrough designation or RMAT designation, may also be eligible for priority review. A BLA is eligible for priority review if the product candidate is designed to treat a serious condition, and if approved, would provide a significant improvement in safety or efficacy compared to available therapies. The FDA will attempt to direct additional resources to the evaluation of a BLA designated for priority review in an effort to facilitate the review. The FDA endeavors to review applications with priority review designations within six months of the filing date as compared to ten months for review of original BLAs under its current PDUFA review goals.

Fast track designation, breakthrough therapy designation, RMAT designation, priority review and accelerated approval do not change the standards for approval, but may expedite the development or approval process. Even if a product candidate qualifies for one or more of these programs, the FDA may later decide that the product no longer meets the conditions for qualification or decide that the time period for FDA review or approval will not be shortened.

**Disclosure of clinical trial information** 

Sponsors of clinical trials of FDA-regulated products, including biological products, are required to register and disclose certain clinical trial information on the website www.clinicaltrials.gov. Information related to the product, patient population, phase of investigation, trial sites and investigators, and other aspects of a clinical trial are then made public as part of the registration. Sponsors are also obligated to disclose the results of their clinical trials after completion. Disclosure of the results of clinical trials can be delayed in certain circumstances for up to two years after the date of completion of the trial. Competitors may use this publicly available information to gain knowledge regarding the progress of clinical development programs as well as clinical trial design.

**Pediatric information** 

Under the Pediatric Research Equity Act, or PREA, BLAs, supplements to BLAs for new active ingredients, new indications, new dosage forms, new dosing regimens, or new routes of administration must contain data to assess the safety and effectiveness of the biological product for the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation for which the biological product is safe and effective. The FDA may grant full or partial waivers, or deferrals, for submission of data. Unless otherwise required by regulation, PREA generally does not apply to any biological product for an indication for which orphan designation has been granted.

The Best Pharmaceuticals for Children Act, or BPCA, provides a six-month extension of any non-patent exclusivity for a biologic if certain conditions are met. Conditions for exclusivity include the FDA's determination that information relating to the use of a new biologic in the pediatric population may produce health benefits in that population, FDA making a written request for pediatric studies, and the applicant agreeing to perform, and reporting on, the requested studies within the agreed timeframe. Applications to change labeling after performance of studies under the BPCA are treated as priority applications.

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**Orphan Designation**

Under the Orphan Drug Act, the FDA may grant orphan designation to a biologic intended to treat a rare disease or condition, which is a disease or condition that affects fewer than 200,000 individuals in the United States or where, if the disease or condition affects more than 200,000 individuals in the United States, there is no reasonable expectation that the cost of developing and making the product available in the United States for this type of disease or condition will be recovered from sales of the product. Orphan designation must be requested before submitting a BLA. After the FDA grants orphan designation, the identity of the therapeutic agent and its potential orphan use are disclosed publicly by the FDA. Orphan designation does not convey any advantage in or shorten the duration of the regulatory review and approval process.

If a product that has orphan designation subsequently receives the first FDA approval for the disease or condition for which it has such designation, the product is entitled to orphan drug exclusivity, which means that the FDA may not approve any other applications to market the same biologic for the same disease or condition for seven years, except in limited circumstances, such as a showing of clinical superiority to the product with orphan exclusivity or inability to manufacture the product in sufficient quantities. The designation of such biologic also entitles a party to financial incentives such as opportunities for grant funding towards clinical trial costs, tax advantages and user-fee waivers. However, competitors may receive approval of different products for the disease or condition for which the orphan product has exclusivity or obtain approval for the same product but for a different disease or condition for which the orphan product has exclusivity. In the latter case, because healthcare professionals are free to prescribe products for off-label uses, the competitor's product could be used for the orphan indication despite another product's orphan exclusivity. In addition, if an orphan-designated product receives approval for a disease or condition broader than covered in the orphan designation, the product may not be entitled to orphan exclusivity for the entire scope of the indication.

**Post-approval requirements** 

Once a BLA is approved, a product will be subject to certain post-approval requirements. For instance, the FDA closely regulates requirements relating to record-keeping, reporting of adverse experiences, periodic reporting, product sampling and distribution, as well as the post-approval marketing and promotion of biologics, including direct-to-consumer advertising, off-label promotion, industry-sponsored scientific and educational activities and promotional activities involving the Internet. Biologics may be marketed only for the approved indications and in accordance with the provisions of the approved labeling.

Adverse event reporting and submission of periodic safety summary reports is required following FDA approval of a BLA. The FDA also may require Phase 4 or other post-market testing, a REMS, and/or surveillance to monitor the effects of an approved product, or the FDA may place conditions on an approval that could restrict the distribution or use of the product. The FDA generally recommends that sponsors of human gene therapy or gene editing products observe subjects for potential delayed adverse events for up to five years for products involving AAV vectors and for up to fifteen years for genome editing products. In addition, quality control, biological product manufacture, packaging, and labeling procedures must continue to conform to cGMPs after approval. Biologics manufacturers and certain of their subcontractors are required to register their establishments with the FDA and certain state agencies. Registration with the FDA subjects entities to periodic unannounced inspections by the FDA, during which the agency inspects a biological product's manufacturing facilities to assess compliance with cGMPs. The FDA and other agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses of approved products. The FDA does not regulate the behavior of physicians in their choice of treatments. The FDA does, however, restrict manufacturer's communications on the subject of off-label use of their products.

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The FDA may withdraw product approvals or request product recalls if a company fails to comply with required regulatory standards, if it encounters problems following initial marketing, or if previously unrecognized problems are subsequently discovered. Other potential consequences include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on the marketing or manufacturing of the product, complete withdrawal of the product from the market or
product recalls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• warning letters or untitled letters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corrective advertising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• clinical holds on ongoing or planned clinical studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• refusal of the FDA to approve pending applications or supplements to approved applications, or suspension or revocation of
approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product seizure or detention, or refusal to permit the import or export of products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consent decrees, corporate integrity agreements, debarment or exclusion from federal healthcare programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mandated modification of promotional materials and labeling and the issuance of corrective information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the issuance of safety alerts, Dear Healthcare Provider letters, press releases and other communications containing
warnings or other safety information about the product; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• injunctions, fines or the imposition of civil or criminal penalties.

**Additional controls for biologics** 

To help reduce the increased risk of the introduction of adventitious agents, the PHSA emphasizes the importance of manufacturing controls for products whose attributes cannot be precisely defined. The PHSA also provides authority to the FDA to immediately suspend licenses in situations where there exists a danger to public health, to prepare or procure products in the event of shortages and critical public health needs, and to authorize the creation and enforcement of regulations to prevent the introduction or spread of communicable diseases in the United States and between states.

After a BLA is approved, the product may also be subject to official lot release as a condition of approval. As part of the manufacturing process, the manufacturer is required to perform certain tests on each lot of the product before it is released for distribution. If the product is subject to official release by the FDA, the manufacturer submits samples of each lot of product to the FDA together with a release protocol showing the results of all of the manufacturer's tests performed on the lot. The FDA may also perform certain confirmatory tests on lots of some products before releasing the lots for distribution by the manufacturer.

In addition, the FDA conducts laboratory research related to the regulatory standards on the safety, purity, potency, and effectiveness of biological products. After approval of a BLA, biologics manufacturers must address any safety issues that arise, are subject to recalls or a halt in manufacturing, and are subject to periodic inspection after approval.

**Biosimilars and exclusivity** 

The ACA, includes a subtitle called BPCIA, which created an abbreviated approval pathway for biological products that are biosimilar to or interchangeable with an FDA-licensed reference biological product.

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Biosimilarity, which requires that there be no clinically meaningful differences between the proposed biosimilar biological product and the reference product in terms of safety, purity and potency, can be shown through analytical studies, an assessment of toxicity, and a clinical trial or studies though the FDA has broad discretion to set or waive certain biosimilar licensure data requirements. Interchangeability requires that a product is biosimilar to the reference product and the product must demonstrate that it can be expected to produce the same clinical results as the reference product in any given patient and, for products that are administered multiple times to an individual, the biologic and the reference biologic may be alternated or switched after one has been previously administered without increasing safety risks or risks of diminished efficacy relative to exclusive use of the reference biologic. The FDA has licensed numerous biosimilars and a handful of interchangeable biosimilars under the BPCIA and has issued several guidance documents outlining an approach to review and approval of biosimilars.

Under the BPCIA, an application for a biosimilar product may not be submitted to the FDA until four years following the date that the reference product was first licensed by the FDA. In addition, the approval of a biosimilar product may not be made effective by the FDA until 12 years from the date on which the reference product was first licensed. During this 12-year period of exclusivity, another company may still market a competing version of the reference product if the FDA approves a full BLA for the competing product containing the applicant's own preclinical data and data from adequate and well-controlled clinical trials to demonstrate the safety, purity and potency of its product. The BPCIA also created an exclusivity period for the first biosimilars approved as interchangeable products. Moreover, an interchangeable biosimilar product, once approved, may be substituted under existing state law for a reference product in a way that is similar to traditional generic substitution for non-biological products; any non-interchangeable biosimilar products may also be substituted by a healthcare provider but, under existing law, will not be automatically substituted at the pharmacy.

The first biological product submitted under the biosimilar abbreviated approval pathway that is determined to be interchangeable with the reference product has exclusivity against approval of another interchangeable biological product that relies on the same reference product for the lesser of (i) one year after first commercial marketing of the first interchangeable biosimilar, (ii) 18 months after the first interchangeable biosimilar is approved if there is no patent challenge, (iii) 18 months after resolution of a lawsuit over the patents of the reference biologic in favor of the first interchangeable biosimilar applicant, or (iv) 42 months after the first interchangeable biosimilar's application has been approved if a patent lawsuit is ongoing within the 42-month period. The "first interchangeable biosimilar biological product" is defined by statute as any interchangeable biosimilar biological product that is approved on the first day on which such a product is approved as interchangeable with the reference product.

The biosimilar application also will not be approved until any applicable non-patent exclusivity for the reference product has expired. In some instances, a biosimilar applicant may receive approval prior to expiration of certain non-patent exclusivity if the applicant seeks, and FDA permits, the omission of such exclusivity-protected information from the biosimilar prescribing information.

**Patent term extension** 

The Hatch-Waxman Amendments permit a patent term extension as compensation for patent term lost during the FDA regulatory review process. Patent term extension, however, cannot extend the remaining term of a patent beyond a total of 14 years from the product's approval date, only one patent per product may be extended, and only those patents with claims covering the approved biologic, a method for using it, or a method for manufacturing it may be extended. After BLA approval, owners of relevant biologic patents may apply for the extension. The allowable patent term extension is calculated as half of the biologic's testing phase (the time between IND application and BLA

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submission) and all of the review phase (the time between BLA submission and approval) up to a maximum of five years. However, the time can be reduced for any time FDA determines that the applicant did not pursue approval with due diligence.

USPTO, in consultation with the FDA, reviews and approves the application for any patent term extension or restoration. However, the USPTO may not grant an extension because of, for example, failing to exercise due diligence during the testing phase or regulatory review process, failing to apply within applicable deadlines, failing to apply prior to expiration of relevant patents or otherwise failing to satisfy applicable requirements. Moreover, the applicable time period or the scope of patent protection afforded could be less than requested.

The application for the extension must be submitted prior to the expiration of the patent, and for patents that might expire during the application phase, the patent owner may request an interim patent extension. An interim patent extension increases the patent term by one year and may be renewed up to four times. For each interim patent extension granted, the post-approval patent extension is reduced by one year. The director of the USPTO must determine that approval of the biologic covered by the patent for which a patent extension is being sought is likely. Interim patent extensions are not available for a biologic for which a BLA has not been submitted.

**Data privacy and security laws** 

Numerous state, federal and foreign laws, regulations and standards govern the collection, use, access to, confidentiality and security of health-related and other personal information and could apply now or in the future to our operations or the operations of our partners. In addition, certain foreign laws govern the privacy and security of personal data, including health-related data. In the United States, numerous federal and state laws and regulations, including data breach notification laws, health information privacy and security laws and consumer protection laws and regulations govern the collection, use, disclosure, and protection of health-related and other personal information. Privacy and security laws, regulations, and other obligations are constantly evolving, may conflict with each other to complicate compliance efforts, and can result in investigations, proceedings, or actions that lead to significant civil and/or criminal penalties and restrictions on data processing.

**Other U.S. healthcare laws and compliance requirements** 

In the United States, pharmaceutical and biotechnology company activities are potentially subject to regulation by various federal, state and local authorities in addition to the FDA, including but not limited to, the Centers for Medicare & Medicaid Services, or CMS, other divisions of the HHS, , the U.S. Department of Justice, or DOJ, and individual U.S. Attorney offices within the DOJ, and state and local governments.

The federal Anti-Kickback Statute prohibits, among other things, any person or entity, from knowingly and willfully offering, paying, soliciting or receiving any remuneration, directly or indirectly, overtly or covertly, in cash or in kind, to induce or in return for purchasing, leasing, ordering, recommending or arranging for the purchase, lease or order of any item or service reimbursable under Medicare, Medicaid or other federal healthcare programs. The term remuneration has been interpreted broadly to include anything of value. The Anti-Kickback Statute has been interpreted to apply to arrangements between biotechnology manufacturers on one hand and prescribers, purchasers, and/or formulary managers on the other. There are a number of statutory exceptions and regulatory safe harbors protecting some common activities from prosecution. The exceptions and safe harbors are drawn narrowly and practices that involve remuneration that may be alleged to be intended to induce prescribing, purchasing or recommending may be subject to scrutiny if they do not qualify for an exception or safe harbor. Failure to meet all of the requirements of a particular applicable statutory

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exception or regulatory safe harbor does not make the conduct per se illegal under the Anti-Kickback Statute. Instead, the legality of the arrangement will be evaluated on a case-by-case basis based on a cumulative review of all of its facts and circumstances. Practices may not in all cases meet all of the criteria for protection under a statutory exception or regulatory safe harbor. In addition, the statutory exceptions and regulatory safe harbors are subject to change. Additionally, the intent standard under the Anti-Kickback Statute was amended by the ACA to a stricter standard such that a person or entity no longer needs to have actual knowledge of the statute or specific intent to violate it in order to have committed a violation.

The civil monetary penalties statute imposes penalties against any person or entity who, among other things, is determined to have presented or caused to be presented a claim to a federal health program that the person knows or should know is for an item or service that was not provided as claimed or is false or fraudulent.

Federal false claims laws, including the federal civil False Claims Act, prohibit, among other things, any person or entity from knowingly presenting, or causing to be presented, a false claim for payment to, or approval by, the federal government or knowingly making, using, or causing to be made or used a false record or statement material to a false or fraudulent claim to the federal government. As a result of a modification made by the Fraud Enforcement and Recovery Act of 2009, a claim includes "any request or demand" for money or property presented to the U.S. government. In addition, manufacturers can be held liable under the civil False Claims Act even when they do not submit claims directly to government payors if they are deemed to "cause" the submission of false or fraudulent claims. Biotechnology and other healthcare companies have been prosecuted under these laws for, among other things, allegedly providing free product to customers with the expectation that the customers would bill federal programs for the product. Other companies have been prosecuted for causing false claims to be submitted because of the companies' marketing of the product for unapproved, and thus generally non-reimbursable, uses and purportedly concealing price concessions in the pricing information submitted to the government for government price reporting purposes. A claim including items or services resulting from a violation of the federal Anti-Kickback Statute also constitutes a false or fraudulent claim for purposes of the federal False Claims Act.

HIPAA created additional federal criminal statutes that prohibit knowingly and willfully executing, or attempting to execute, a scheme to defraud or to obtain, by means of false or fraudulent pretenses, representations or promises, any money or property owned by, or under the control or custody of, any healthcare benefit program, including private third-party payors and knowingly and willfully falsifying, concealing or covering up by trick, scheme or device, a material fact or making any materially false, fictitious or fraudulent statement in connection with the delivery of or payment for healthcare benefits, items or services. Similar to the Anti-Kickback Statute, a person or entity does not need to have actual knowledge of the statute or specific intent to violate it in order to have committed a violation.

Also, many states have similar fraud and abuse statutes or regulations that apply to items and services reimbursed under Medicaid and other state programs, or, in several states, apply regardless of the payor.

Additionally, the federal Physician Payments Sunshine Act within the ACA, and its implementing regulations, require that certain manufacturers of covered drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children's Health Insurance Program (with certain exceptions) report annually to CMS information related to certain payments or other transfers of value made or distributed to physicians (defined to include doctors, dentists, optometrists, podiatrists and chiropractors), certain other healthcare professionals (including physician assistants and certain advance practices nurses) and teaching hospitals and to report annually certain

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ownership and investment interests held by physicians and their immediate family members. The reported data is made available in searchable form on a public website on an annual basis. Failure to submit required information may result in civil monetary penalties.

Commercial distribution of products requires compliance with state laws that require the registration of manufacturers and wholesale distributors of drug and biological products in a state, including, in certain states, manufacturers and distributors who ship products into the state even if such manufacturers or distributors have no place of business within the state. Some states also impose requirements on manufacturers and distributors to establish the pedigree of product in the chain of distribution, including some states that require manufacturers and others to adopt new technology capable of tracking and tracing product as it moves through the distribution chain. In addition, several states have enacted legislation requiring pharmaceutical and biotechnology companies to establish marketing compliance programs, file periodic reports with the state, make periodic public disclosures on sales, marketing, pricing, clinical trials and other activities, and/or register their sales representatives, as well as to prohibit pharmacies and other healthcare entities from providing certain physician prescribing data to pharmaceutical and biotechnology companies for use in sales and marketing, and to prohibit certain other sales and marketing practices. Certain local jurisdictions also require drug and biologic manufacturers to report information related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures. Sales and marketing activities are also potentially subject to federal and state consumer protection and unfair competition laws.

Violation of any of the federal and state healthcare laws described above or any other governmental regulations may result in penalties, including without limitation, significant civil, criminal and/or administrative penalties, damages, fines, disgorgement, exclusion from participation in government programs, such as Medicare and Medicaid, imprisonment, injunctions, private "qui tam" actions brought by individual whistleblowers in the name of the government, refusal to enter into government contracts, oversight monitoring, contractual damages, reputational harm, administrative burdens, diminished profits and future earnings.

**U.S. healthcare reform** 

Healthcare reforms that have been adopted, and that may be adopted in the future, could result in further reductions in coverage and levels of reimbursement for pharmaceutical products, increases in rebates payable under U.S. government rebate programs and additional downward pressure on pharmaceutical and biological product prices. Healthcare reform initiatives culminated in the enactment of the IRA, in August 2022, which, among other things, requires the HHS to negotiate the selling price of certain drugs and biologics that CMS reimburses under Medicare Part B and Part D, although only high-expenditure single-source biologics that have been approved for at least 11 years (7 years for drugs) can be selected by CMS for negotiation, with the negotiated price taking effect two years after the selection year. The negotiated prices will be capped at a statutory ceiling price. For 2026, the first year in which negotiated prices become effective, CMS selected 10 high-cost Medicare Part D products in 2023, negotiations began in 2024, and the negotiated maximum fair price for each product has been announced. In addition, CMS selected and announced the negotiated maximum fair price for 15 additional Medicare Part D drugs, which will become effective in 2027. For 2028, an additional 15 drugs, which may be covered under either Medicare Part B or Part D, will be selected, and for 2029 and subsequent years, 20 Part B or Part D drugs will be selected. Currently, a drug or biological product that has an orphan drug designation for only one rare disease or condition is excluded from the IRA's price negotiation requirements, as long as the drug is approved only for an indication within that disease or condition. However, as a result of a statutory amendment enacted in July 2025, beginning with the 2028 negotiated price applicability year, a drug may be designated for more than one rare disease or condition and still be excluded from price negotiation, as long as the only approved

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indications are for such rare diseases or conditions. The constitutionality of the IRA's drug price negotiation program provisions is currently subject to ongoing litigation. The outcome of this litigation cannot yet be fully determined.

The IRA also penalizes drug and biologic manufacturers that increase prices of Medicare Part B and Part D drugs and biologics at a rate greater than the rate of inflation. The IRA permits the Secretary of HHS to implement many of these provisions through guidance, as opposed to regulation, for the initial years. Manufacturers that fail to comply with the IRA may be subject to various penalties, including civil monetary penalties. The IRA also extended enhanced subsidies for individuals purchasing health insurance coverage in ACA marketplaces through plan year 2025, expired at the end of 2025. Additional drug pricing proposals could appear in future legislation.

More recently, the OBBBA imposes significant reductions in the funding of the Medicaid program. Such reductions are expected to decrease the number of persons enrolled in Medicaid and reduce the services covered by Medicaid, which could adversely affect our sales of any product candidate that we commercialize.

The current Presidential administration is pursuing a two-fold strategy to reduce drug costs in the United States. While it is unclear whether and how such policies will be implemented, the proposed policies are likely to have a negative impact on the pharmaceutical industry and on our ability to receive adequate revenues for our product candidates, if approved. As part of this strategy, President Trump has proposed imposing significant tariffs on pharmaceutical manufacturers that do not adopt pricing policies such as most favored nation pricing, which would tie the price for drugs in the United States to the lowest price in a group of other countries. In response, multiple manufacturers have reportedly entered into confidential pricing agreements with the federal government. In addition, the Trump administration is pursuing traditional regulatory pathways to impose drug pricing policies, although proposed regulations have not yet been published. In addition, pharmaceutical pricing and marketing has long been the subject of considerable discussion in Congress and among policymakers, and it is possible that Congress could enact additional laws that negatively affect the pharmaceutical industry.

**Employees and human capital resources** 

As of December 31, 2025, we had 98 full-time employees, 78 of whom were engaged in research and development activities. Within our employee population, 51 of our employees hold Ph.D. or M.D. degrees. None of our employees are represented by a labor union or covered under a collective bargaining agreement.

Our human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and integrating our existing and new employees, advisors and consultants. The principal purposes of our equity and cash incentive plans are to attract, retain and reward personnel through the granting of stock-based and cash-based compensation awards, in order to increase stockholder value and the success of our company by motivating such individuals to perform to the best of their abilities and achieve our objectives.

**Facilities** 

Our headquarters are located in Alameda, California where we lease and occupy 28,304 square feet of office and laboratory space. The current term of our lease expires in November 2029. We believe that our facilities are sufficient to meet our current needs and that suitable additional space will be available as and when needed.

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**Legal proceedings** 

From time to time, we may be subject to legal proceedings. We are not currently a party to or aware of any legal proceedings that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or results of operations. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

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**MANAGEMENT** 

**Executive officers and directors** 

The following table provides information, including ages as of , 2026, regarding our executive officers and directors:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
|  **Executive Officers and Employee Directors:** |  |  |
|  Benjamin L. Oakes, Ph.D. | 37 | President, Chief Executive Officer and Director |
|  Svetlana Lucas, Ph.D. | 54 | Chief Business Officer |
|  David L. Parrot, M.B.A. | 57 | Chief Financial Officer |
|  **Non-Employee Directors:** |  |  |
|  James Watson, M.B.A. | 60 | Director |
|  Behzad Aghazadeh, Ph.D. | 54 | Director |
|  Carl L. Gordon, Ph.D., CFA | 61 | Director |

---

(1) Member of the Compensation Committee.

(2) Member of the Audit Committee.

(3) Member of the Nominating and Governance Committee.

***Executive officers and employee directors***

**Benjamin L. Oakes, Ph.D.**, is our co-founder and has served as our Chief Executive Officer, President, and a member of our board of directors since our inception in June 2017. Prior to co-founding the Company in June 2017, Dr. Oakes served as an Entrepreneurial Fellow at the Innovative Genomics Institute from May 2017 to September 2018, where he focused on the holistic engineering of genome editing technologies to build novel genome editing molecules. Dr. Oakes holds a B.A. in Philosophy and Biology-Neuroscience from Colby College and holds a Ph.D. in Biochemistry and Molecular Biology from the University of California, Berkeley. We believe Dr. Oakes is qualified to serve on our board of directors because of his 15 years of deep technical industry experience and expertise across synthetic biology, molecular engineering, CRISPR, and zinc finger-based genetic modification, as well as profound company building experience over the eight years he has held the role as our co-founder, Chief Executive Officer, and President.

**Svetlana Lucas, Ph.D.**, has served as our Chief Business Officer since June 2019. Prior to joining us, Dr. Lucas served in various positions of increasing responsibility at Tizona Therapeutics, Inc., or Tizona, from July 2015 to June 2019, including most recently as Senior Vice President, Business Development from January 2019 to June 2019. Before joining Tizona, Dr. Lucas served as Head of Oncology and Inflammation External Research and Development at Amgen Inc., or Amgen, from August 2014 to July 2015. Dr. Lucas joined Amgen following Amgen's acquisition of Onyx Pharmaceuticals, Inc., Onyx, where she served as the Director of Corporate Development from September 2012 to August 2014. Prior to joining Onyx, Dr. Lucas held positions of increasing responsibility in strategy, business development and strategic marketing at XOMA Corporation, Facet Biotech (acquired by AbbVie), PDL Biopharma, Inc., and Amgen. Dr. Lucas began her career as a strategy consultant in the Life Sciences practice of McKinsey & Company. Dr. Lucas has served as a member of the boards of directors of Jasper Therapeutics, Inc., a public biotechnology company, since June 2024, and aTyr Pharma, Inc., a public biopharmaceutical company, since July 2019. Dr. Lucas has also served as an advisor to Radar Therapeutics since October 2023. Dr. Lucas holds an undergraduate degree in Virology from Lomonosov Moscow State University and holds a Ph.D. in Molecular Biology and Biochemistry from the California Institute of Technology.

**David L. Parrot, M.B.A.**, has served as our Chief Financial Officer since December 2021. Prior to joining us, Mr. Parrot served as a Managing Director and Head of West Coast Life Science Investment

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Banking division at Barclays Investment Bank, or Barclays, from March 2019 to December 2021. Prior to joining Barclays, Mr. Parrot served as a Managing Director and Head of Life Sciences Investment Banking at SunTrust Robinson Humphrey, or SunTrust, from December 2014 to March 2019. Prior to SunTrust, Mr. Parrot served as a Managing Director of Life Science Investment Banking at BMO Capital Markets from July 2010 to December 2014, as a Managing Director of Healthcare Investment Banking for Montgomery & Co., LLC from June 2009 to July 2010, and as a Managing Director for Piper Jaffray from June 1998 to June 2009. Mr. Parrot holds a B.A. in Economics from Middlebury College and holds an MBA from the University of California, Berkeley, Haas School of Business.

***Non-employee directors***

**James Watson, M.B.A.**, has served as a member of our board of directors since July 2025, and is currently an Operating Partner on the Bio + Health team at Andreessen Horowitz and leads the firm's Business and Corporate Development team in life sciences. Mr. Watson also serves on the Boards of Inceptive, Genesis Molecular AI and Rice Biotech Labs. From October 2019 to March 2023, Mr. Watson served as the Chief Business Officer for Carmot Therapeutics, Inc. where he led strategy, finance, and corporate development. From April 2018 to July 2019, Mr. Watson served as Chief Business Officer and President ICT at Sigilon Therapeutics, Inc. prior to Sigilon's acquisition by Eli Lilly and Company. Previously, Mr. Watson spent nearly ten years in life science investment banking and led corporate development for two public biotech companies. Mr. Watson earned an MBA from Indiana University, and a bachelor's degree in economics from the University of Portsmouth, UK. We believe Mr. Watson is qualified to serve on our board of directors because of his extensive scientific expertise and industry experience.

**Behzad Aghazadeh, Ph.D.**, has served as a member of our board of directors since March 2021, and is currently the Managing Partner of Avoro Capital Advisors and Avoro Ventures. Avoro Capital is a global life sciences company, which he joined in July 2011. From March 2017 to October 2020, Dr. Aghazadeh also served as Executive Chairman of the board of directors of Immunomedics, Inc., a public biopharmaceutical company (now a subsidiary of Gilead Sciences, Inc.). Dr. Aghazadeh additionally serves on the board of directors of Whitehawk Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on precision therapies for genetically defined cancers. Dr. Aghazadeh has more than 20 years of experience in the biopharmaceutical industry, including more than 15 years as an institutional investor and previously six years at Booz Allen as a general management consultant to senior executive teams in the healthcare sector. Dr. Aghazadeh received a M.S. in Physics from Ludwig Maximilian University of Munich and a Ph.D. in Biochemistry and Biophysics from Cornell University. We believe Dr. Aghazadeh is qualified to serve on our board of directors because of his extensive business development and industry experience.

**Carl L. Gordon, Ph.D., CFA**, has served as a member of our board of directors since March 2021. Dr. Gordon is a Managing Partner at OrbiMed Advisors LLC, an investment firm. Dr. Gordon currently serves on the boards of directors of Compass Therapeutics Inc., Keros Therapeutics Inc., and Lomond Therapeutics Holdings, Inc., as well as several private companies. Dr. Gordon previously served on the boards of directors of several companies, including Adicet Bio, Inc., ArriVent BioPharma, Inc., Gemini Therapeutics Inc. (which merged with Disc Medicine, Inc.), Kinnate Biopharma, Inc. (which was acquired by XOMA Corporation), MBX Biosciences, Inc., ORIC Pharmaceuticals, Inc., Prevail Therapeutics Inc., Terns Pharmaceuticals, Inc., and Theseus Pharmaceuticals, Inc., prior to its acquisition by Concentra Biosciences, LLC. Dr. Gordon received a B.A. in Chemistry from Harvard College, and a Ph.D. in Molecular Biology from the Massachusetts Institute of Technology, and was a Fellow at The Rockefeller University. We believe Dr. Gordon is qualified to serve on our board of directors due to his vast operational business development and industry experience.

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**Election of executive officers** 

Our executive officers are appointed by, and serve at the discretion of, our board of directors.

**Family relationships** 

There are no family relationships among any of our executive officers or directors.

**Board composition** 

Our board of directors currently consists of four members. Three of our directors are independent within the meaning of the independent director guidelines of Nasdaq. Pursuant to our current certificate and our amended and restated voting agreement, Dr. Oakes, Dr. Gordon, Dr. Aghazadeh and Mr. Watson have been designated to serve as members of our board of directors. The amended and restated voting agreement and the provisions of our current certificate that govern the election and designation of our directors will terminate in connection with this offering, after which no contractual obligations will concern the election of our directors.

**Classified board of directors** 

In accordance with the terms of our restated certificate of incorporation and restated bylaws that will become effective upon the completion of this offering, our board of directors will be divided into three staggered classes of directors. At each annual meeting of our stockholders, a class of directors will be subject to re-election for a three-year term. As a result, only one class of directors will be elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three-year terms.

Our directors will be divided among the three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Class I directors will be     , and     , and their terms will
expire at the first annual meeting of our stockholders held following the completion of the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Class II directors will be     , and     , and their terms will
expire at the second annual meeting of our stockholders held following the completion of the offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Class III directors will be     , and     , and their terms will
expire at the third annual meeting of our stockholders held following the completion of the offering.

Each director's term continues until the election and qualification of his or her successor, or his or her earlier death, resignation or removal. Our restated certificate of incorporation and restated bylaws that will be in effect upon the completion of this offering authorize only our board of directors to fill vacancies on our board of directors. Any increase or decrease in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. This classification of our board of directors may have the effect of delaying or preventing changes in control of our company. See the section titled "Description of Capital Stock—anti-takeover provisions—Restated certificate of incorporation and restated bylaw provisions" for additional information.

**Director independence** 

In connection with this offering, we intend to apply to list our common stock on Nasdaq. Under the rules of Nasdaq, independent directors must comprise a majority of a listed company's board of directors within a specified period following the completion of this offering. In addition, the rules of Nasdaq require that, subject to specified exceptions, each member of a listed company's audit,

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compensation and nominating and governance committees be independent. Under the rules of Nasdaq, a director will only qualify as an "independent director" if, in the opinion of that company's board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. In order to be considered independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors or any other board committee: (i) accept, directly or indirectly, any consulting, advisory or other compensatory fee from the listed company or any of its subsidiaries or (ii) be an affiliated person of the listed company or any of its subsidiaries. We intend to satisfy the audit committee independence requirements of Rule 10A-3 as of the completion of this offering. Additionally, compensation committee members must not have a relationship with us that is material to the director's ability to be independent from management in connection with the duties of a compensation committee member.

Our board of directors has undertaken a review of the independence of each director and considered whether each director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. As a result of this review, our board of directors determined that all of our directors, except for Dr. Oakes, are "independent directors" as defined under the current Nasdaq listing standards and SEC rules and regulations. In making these determinations, our board of directors reviewed and discussed information provided by the directors and us with regard to each director's business and personal activities and relationships as they may relate to us and our management, including the beneficial ownership of our capital stock by each non-employee director and the transactions involving them as described in the section titled "Certain Relationships and Related Party Transactions."

**Committees of the board of directors** 

Our board of directors will have an audit committee, a compensation committee and a nominating and governance committee, each of which will have the composition and responsibilities described below as of the completion of this offering. In addition, from time to time, special committees may be established under the direction of our board of directors when necessary to address specific issues.

Each of the below committees has a written charter approved by our board of directors. Upon completion of this offering, copies of each charter will be posted on the investor relations page of our website. Members that serve on these committees will serve until their resignation or until otherwise determined by our board of directors.

***Audit committee***

Effective upon the effectiveness of the registration statement of which this prospectus is a part, our audit committee will be composed of , and , with as the chairperson of our audit committee. Our board of directors has determined that the composition of our audit committee meets the requirements for independence under the current Nasdaq listing standards and SEC rules and regulations, and that each member of our audit committee is financially literate. In addition, our board of directors has determined that is an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K promulgated under the Securities Act. This designation does not impose on him or her any duties, obligations or liabilities that are greater than are generally imposed on members of our audit committee and our board of directors.

Our audit committee is directly responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selecting and hiring our independent registered public accounting firm;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the qualifications, independence and performance of our independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the preparation of the audit committee report to be included in our annual proxy statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our compliance with legal and regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting our board of directors with risk assessment and management, including cybersecurity risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our accounting and financial reporting processes, including our financial statement audits and the integrity of our
financial statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving related-person transactions.

***Compensation committee***

Effective upon the effectiveness of the registration statement of which this prospectus is a part, our compensation committee will be composed of , and , with as the chairperson of our compensation committee. Our board of directors has determined that each member of our compensation committee is a non-employee director, as defined by Rule 16b-3 promulgated under the Exchange Act, and meets the requirements for independence under the current Nasdaq listing standards and SEC rules and regulations.

Our compensation committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating, recommending, approving and reviewing executive officer compensation arrangements, plans, policies and
programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating and recommending non-employee director compensation arrangements for
determination by our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• administering our cash-based and equity-based compensation plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing our compliance with regulatory requirements associated with the compensation of directors, executive officers
and employees.

***Nominating and governance committee***

Effective upon the effectiveness of the registration statement of which this prospectus is a part, our nominating and governance committee will be composed of , and , with as the chairperson of our nominating and governance committee. Our board of directors has determined that each member of our nominating and governance committee meets the requirements for independence under the current Nasdaq listing standards.

Our nominating and governance committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying, considering and recommending candidates for membership on our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the process of evaluating the performance of our board of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advising our board of directors on environmental, social and other corporate governance matters.

**Compensation committee interlocks and insider participation** 

None of the members of our compensation committee has been an officer or employee of our Company. None of our executive officers currently serves, or in the past year has served, as a member

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of the board of directors or compensation committee (or other board committee performing equivalent functions or, in the absence of any such committee, the entire board of directors) of any entity that has one or more of its executive officers serving on our board of directors or compensation committee. Prior to establishing the compensation committee, our full board of directors made decisions relating to the compensation of our officers.

**Code of business conduct and ethics** 

Prior to the completion of this offering, our board of directors will adopt a code of business conduct and ethics that applies to all of our employees, officers and directors, including our President and Chief Executive Officer and other executive and senior officers. The full text of our code of business conduct and ethics will be posted on the investor relations page of our website. The reference to our website address in this prospectus does not include or incorporate by reference the information on our website into this prospectus. We intend to disclose future amendments to certain provisions of our code of business conduct and ethics, or waivers of these provisions, on our website or in public filings to the extent required by the applicable rules.

**Non-employee director compensation** 

Our employee director, Dr. Oakes, has not received any compensation or reimbursement of any expenses (other than customary expenses in connection with the attendance of meetings of our board of directors) for his service as a director for the year ended December 31, 2025. None of our non-employee directors (i) received any compensation or reimbursement of any expenses (other than customary expenses in connection with the attendance of meetings of our board of directors) for their service as a director for the year ended December 31, 2025 or (ii) held any outstanding equity awards as of December 31, 2025.

**Non-employee director compensation policy** 

Prior to this offering, we did not have a formal policy to provide any cash or equity compensation to our non-employee directors for their service as directors. In connection with this offering, our board of directors expects to approve a non-employee director compensation policy, which will take effect following the completion of this offering.

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**EXECUTIVE COMPENSATION** 

The following tables and accompanying narrative disclosure set forth information about the compensation earned by our named executive officers during the year ended December 31, 2025. Our named executive officers, who are our principal executive officer and the two most highly compensated executive officers (other than our principal executive officer) serving as executive officers as of December 31, 2025, were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Benjamin L. Oakes, Ph.D., President and Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Svetlana Lucas, Ph.D., Chief Business Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• David L. Parrot, Chief Financial Officer.

**Summary compensation table** 

The following table presents summary information regarding the total compensation for services rendered in all capacities that was awarded to, earned by or paid to our named executive officers for the year ended December 31, 2025.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary**<br>**($)** | **Bonus<br>($)** | **Option<br>Awards<br>($)(1)** | **Non-Equity<br>Incentive<br>Plan<br>Compensation<br>($)(2)** | **All Other<br>Compensation<br>($)** |  | **Total<br>($)** |
|  Benjamin L. Oakes, Ph.D. |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *President and Chief Executive Officer* | 2025 | 511035 |  | 462338 |  | 23057 | (3) | 996431 |
|  Svetlana Lucas, Ph.D. |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chief Business Officer* | 2025 | 429936 |  | 108263 |  | 6948 | (4) | 545147 |
|  David L. Parrot |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chief Financial Officer* | 2025 | 421824 |  | 198460 |  | 24475 | (5) | 644759 |

---

(1) Represents for all our named executive officers (i) the grant date fair value of options awarded during the year
ended December 31, 2025 as computed in accordance with FASB ASC Topic 718, and (ii) the incremental fair value in connection with the stock option repricing completed in September 2025 of stock options held by the named executive officers
in the amounts of $252,201. $30,213 and $120,409, for Dr. Oakes, Dr. Lucas and Mr. Parrot, respectively, in each case as computed in accordance with FASB ASC Topic 718. For additional information on the stock option repricing, see
"Narrative disclosure to summary compensation table—Repricing" below. The assumptions used in calculating the grant date fair value of the stock options reported in the Option Awards column are set forth in our financial statements
included elsewhere in this prospectus. Note that the amounts reported in this column reflect the aggregate accounting cost for these awards, and do not necessarily correspond to the actual economic value that may be received by each named executive
officer from the options.

(2) Performance-based cash incentive bonuses , if any, for 2025 will be determined by our board of directors and paid during
the first quarter of 2026. For additional information regarding the non-equity incentive plan compensation, see the section titled "Annual performance-based bonuses."

(3) Represents a $5,000 matching contribution under our 401(k) Plan, $16,857 in health insurance premiums, and a $1,200 cell
phone allowance.

(4) Represents a $5,000 matching contribution under our 401(k) Plan, $748 in health insurance premiums, and a $1,200 cell
phone allowance.

(5) Represents a $5,000 matching contribution under our 401(k) Plan, $18,275 in health insurance premiums, and a $1,200 cell
phone allowance.

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**Narrative disclosure to summary compensation table** 

**2025 base salaries** 

Base salary is the only fixed component of our named executive officers' total cash compensation and provides competitive and stable pay to attract and retain our executives. We make annual salary decisions by taking into account competitive data, the skills and experience that each executive brings to us, and the performance contributions of each executive. The base salaries for our named executive officers for fiscal year 2025 are included in the Summary Compensation Table above.

**Cash Incentive Bonuses** 

*Annual performance-based bonuses* 

A portion of the target cash compensation for each named executive officer is in the form of an annual cash incentive opportunity, which is intended to motivate our executive officers to achieve annual corporate and individual performance objectives. For the 2025 bonuses, the corporate performance objectives included certain development goals and milestones related to corporate development milestones and capital and operational growth objectives. The 2025 target bonus amounts, expressed as a percentage of annual base salary, for Dr. Oakes, Dr. Lucas, and Mr. Parrot were 40%, 35%, and 35%, respectively. Performance-based cash incentive bonuses, if any, for 2025 will be determined by our board of directors and paid during the first quarter of 2026.

**Equity-based incentive awards** 

Our equity-based incentive awards are designed to align our named executive officers' interests with those of our stockholders and to retain and incentivize our named executive officers over the long-term. Our board of directors is responsible for approving equity grants. Vesting of equity awards is tied to continuous service with us and serves as an additional retention measure. Generally, our option awards vest over a four-year period subject to the holder's continuous service to us, as further described under "—Outstanding equity awards at 2025 fiscal year-end table" below. Our named executive officers generally are awarded an initial new hire grant upon commencement of employment. Additional grants may occur periodically in order to specifically incentivize our named executive officers with respect to achieving certain corporate goals or to reward our named executive officers for exceptional performance.

Prior to this offering, we have granted all equity awards pursuant to our 2018 Plan, the terms of which are described below under "—Equity compensation plans and other benefit plans." All options are granted with a per share exercise price equal to no less than the fair market value of a share of our common stock on the date of the grant of such award.

Following this offering, we will grant equity awards under the terms of our 2026 Plan.

**Repricing** 

In September 2025, we repriced certain outstanding stock options, including stock options held by Dr. Oakes, Dr. Lucas and Mr. Parrot. The repricing reduced the exercise price per share of such options to $1.08, the fair market value of our common stock as determined by our board of directors on the date of the repricing. We believe that repricing these underwater stock options was important for the growth and development of our business in order to provide appropriate retention and motivation incentives for our employees holding these stock options. All other terms of such options, other than the exercise price, remained the same, including the number of shares granted, vesting schedule and expiration.

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**Outstanding equity awards at 2025 fiscal year-end table** 

The following table summarizes the number of shares of common stock underlying outstanding equity incentive plan awards for each of our named executive officers as of December 31, 2025. The exercise prices below reflect the stock option repricing that occurred in September 2025 which repriced stock options with exercise prices greater than $1.08 held by Dr. Oakes, Dr. Lucas and Mr. Parrot.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** |
| **Name** | **Grant<br>Date(1)** |  | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options<br>Exercisable** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options<br>Unexercisable** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Unearned<br>Options** | **Option<br>Exercise<br>Price($)** | **Option<br>Expiration<br>Date** |
|  Benjamin L. Oakes, Ph.D. |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *President and Chief <br>Executive Officer* | 06/28/2020 |  | 150000 |  |  | 0.52 | 06/07/2030 |
|  | 08/06/2021 |  | 600000 |  |  | 1.08 | 08/05/2031 |
|  | 08/06/2021 | (2) |  |  | 600000 | 1.08 | 08/05/2031 |
|  | 03/21/2025 | (3) |  | 210000 |  | 1.08 | 03/20/2035 |
|  Svetlana Lucas, Ph.D. |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chief Business Officer* | 06/17/2019 |  | 204244 |  |  | 0.48 | 06/16/2029 |
|  | 06/08/2020 |  | 77084 |  |  | 0.52 | 06/07/2030 |
|  | 08/06/2021 |  | 125000 |  |  | 1.08 | 08/05/2031 |
|  | 03/21/2025 | (3) |  | 78000 |  | 1.08 | 03/20/2035 |
|  David L. Parrot |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Chief Financial Officer* | 12/16/2021 |  | 594916 |  |  | 1.08 | 12/15/2031 |
|  | 03/21/2025 | (3) |  | 78000 |  | 1.08 | 03/20/2035 |

---

(1) All outstanding equity awards were granted under the 2018 Plan.

(2) The vesting schedule for the option is as follows: 100% vesting upon achievement of certain clinical development
milestones, which have not been achieved as of December 31, 2025.

(3) The vesting schedule for the option is as follows: 25% of the shares subject to the option shall vest on the first
anniversary of the Vesting Commencement Date (01/01/2025) and 1/48<sup>th</sup> of the shares subject to the option shall vest on each monthly anniversary of the Vesting Commencement Date thereafter, subject
to continued service.

**Employment agreements** 

We intend to enter into new employment agreements with certain senior management personnel in connection with this offering, including our named executive officers. We expect that each of these agreements will provide for at-will employment and include each officer's base salary, a discretionary annual incentive bonus opportunity and standard employee benefit plan participation. We also expect these agreements to provide for severance benefits upon a qualifying termination of employment or a change in control of our company.

**Equity compensation plans and other benefit plans** 

We believe that our ability to grant equity-based awards is a valuable compensation tool that enables us to attract, retain and motivate our employees, consultants and directors by aligning their financial interests with those of our stockholders. The principal features of our equity plans are summarized below. These summaries are qualified in their entirety by reference to the actual text of the plans, which are filed as exhibits to the registration statement of which this prospectus is a part.

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**2018 Stock Incentive Plan** 

Our 2018 Plan was initially adopted by our board of directors, referred to as the Board, and approved by our stockholders in December 2018.

*Share Reserve*. As of December 31, 2025, we had shares of our common stock reserved for issuance pursuant to grants under our 2018 Plan, of which 981,684 remained available for grant. As of December 31, 2025, options to purchase shares of common stock had been exercised and options to purchase shares remained outstanding, with a weighted-average exercise price of $ per share. No other types of awards are currently outstanding under the 2018 Plan. The 2018 Plan will terminate on the date that the 2026 Plan becomes effective (as described below) and no additional grants will be made pursuant to the 2018 Plan following its termination. However, any outstanding options and shares of restricted stock will remain outstanding and subject to the terms and conditions of the 2018 Plan until they are exercised, as applicable, or are terminated in accordance with the terms of the 2018 Plan and the applicable award agreements evidencing such awards.

*Administration*. Our Board, or a committee thereof appointed by our Board (collectively, the administrator), administers the 2018 Plan and the awards granted thereunder. Subject to the terms of the 2018 Plan, the administrator has the authority to, among other things, select the persons to whom awards will be granted, construe and interpret the 2018 Plan as well as to amend the terms of any outstanding award under the 2018 Plan, provided that any amendment that would adversely affect a participant's rights under an outstanding award shall not be made without such participant's written consent. The 2018 Plan provides that the Board may delegate the authority to grant awards under the 2018 Plan to one or more executive officers to the extent permitted by applicable law.

*Eligibility*. The 2018 Plan provides for the grant of both Incentive Stock Options (ISOs), within the meaning of Section 422 of the Code, which qualify for favorable tax treatment to their recipients under the Code, and Nonqualified Stock Options (NQSOs), as well as for the issuance of Restricted Stock Units (RSUs), Stock Appreciation Rights (SARs), Restricted Stock, Dividend Equivalent Rights (DERs) (each as defined in the 2018 Plan) and other rights or benefits under the 2018 Plan. We may grant ISOs only to our employees. We may grant NQSOs, RSUs, SARs, Restricted Stock, DERs and other rights or benefits to our employees, officers, directors and consultants. Only stock options and Restricted Stock have been granted under the 2018 Plan. We refer to employees, officers, directors or consultants who receive an award under our 2018 Plan as participants.

*Options*. The 2018 Plan provides for the grant of both (1) ISOs, intended to qualify for tax treatment under Section 422 of the Code which may be granted only to employees and (2) NQSOs, which may be granted to our employees, officers, directors and consultants, each at a stated exercise price and subject to certain vesting and other terms and conditions as set forth in the 2018 Plan. The 2018 Plan provides that the exercise price of each ISO must be at least equal to the fair market value of our common stock on the date of grant. In addition, the exercise price of any ISO granted to a participant who owns more than 10% of the total combined voting power of all classes of our capital stock must be at least equal to 110% of the fair market value of our common stock on the date of grant. The 2018 Plan provides that the exercise price of each NQSO shall be determined by the administrator in accordance with applicable law. The maximum permitted term of options granted under our 2018 Plan is ten years from the date of grant, except that the maximum permitted term of ISOs granted to a participant who owns more than 10% of the total combined voting power of all classes of our capital stock is five years from the date of grant.

*Restricted Stock and RSUs*. The 2018 Plan provides for the grant of Restricted Stock and RSUs, with terms as generally determined by the administrator (in accordance with the 2018 Plan) and to be set forth in an award agreement. Restricted Stock is an offer by us to sell shares of our common stock

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subject to restrictions, which may lapse based on the satisfaction of service or achievement of performance conditions. The price, if any, of Restricted Stock will be determined by the administrator. Holders of Restricted Stock, unlike holders of options, will have the right to vote and any dividends or stock distributions paid pursuant to Restricted Stock will be accrued and paid when the restrictions on such shares lapse. RSUs represent the right to receive shares of our common stock at a specified date in the future and may be subject to vesting based on service or achievement of performance conditions. Vested RSUs may be settled in cash, shares of our common stock or a combination of both.

*Stock Appreciation Rights*. The 2018 Plan provides for the grant of SARs at a stated exercise price. A SAR provides for a payment, in cash or shares of our common stock (up to a specified maximum of shares, if determined by the administrator), to the holder based upon the difference between the fair market value of our common stock on the date of exercise and a predetermined exercise price, multiplied by the number of shares. The exercise price of a SAR must be at least the fair market value of a share of our common stock on the date of grant. The administrator will determine the vesting schedule applicable to each SAR. The maximum permitted term of SARs granted under the 2018 Plan is ten years from the date of grant.

*Limited Transferability*. ISOs may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the person to whom they are granted, only by the person to whom they are granted. Other awards granted under the 2018 Plan are transferable (i) by will or by the laws of descent and distribution and (ii) during the lifetime of the person to whom they are granted, to the extent and in the manner authorized by the administrator by gift or pursuant to a domestic relations order to members of the immediate family of the person to whom they are granted.

*Change in Control*. The administrator has the authority, exercisable either in advance of any actual or anticipated Corporate Transaction or Change in Control or at the time of an actual Corporate Transaction or Change in Control and exercisable at the time of the grant of an award under the 2018 Plan or any time while an award remains outstanding, to provide for the full or partial automatic vesting and exercisability of one or more outstanding unvested awards under the 2018 Plan and the release from restrictions on transfer and repurchase or forfeiture rights of such awards in connection with a Corporate Transaction or Change in Control, on such terms and conditions as the administrator may specify. The administrator also shall have the authority to condition any such award vesting and exercisability or release from such limitations upon the subsequent termination of the continuous service of the participant within a specified period following the effective date of the Corporate Transaction or Change in Control.

A Corporate Transaction is defined in the 2018 Plan as: (i) a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated; (ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company; (iii) the complete liquidation or dissolution of the Company; (iv) any reverse merger or series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer followed by a reverse merger) in which the Company is the surviving entity but (A) the shares of the Company's common stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than 50% of the total combined voting power of the Company's outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger or the initial transaction culminating in such merger, but excluding any such transaction or series of related transactions that the administrator determines shall not be a Corporate Transaction; or (v) acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of

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Rule 13d-3 of the Exchange Act) of securities possessing more than 50% of the total combined voting power of the Company's outstanding securities but excluding any such transaction or series of related transactions that the administrator determines shall not be a Corporate Transaction.

A Change in Control is defined in the 2018 Plan as a change in ownership or control of the Company after the Registration Date (as defined below) effected through either of the following transactions: (a) the direct or indirect acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than 50% of the total combined voting power of the Company's outstanding securities pursuant to a tender or exchange offer made directly to the Company's stockholders which a majority of the Continuing Directors (as defined in the 2018 Plan) who are not affiliates or associates of the offeror do not recommend such stockholders accept, or (b) a change in the composition of the Board over a period of twelve (12) months or less such that a majority of the Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors.

Registration Date is defined in the 2018 Plan as the first to occur of: (i) the closing of the first sale to the general public pursuant to a registration statement filed with and declared effective by the SEC under the Securities Act of (A) the Company's common stock or (B) the same class of securities of a successor corporation (or its parent entity) issued pursuant to a Corporate Transaction in exchange for or in substitution of the Company's common stock; or (ii) in the event of a Corporate Transaction, the date of the consummation of the Corporate Transaction if the same class of securities of the successor corporation (or its parent entity) issuable in such Corporate Transaction shall have been sold to the general public pursuant to a registration statement filed with and declared effective by the SEC under the Securities Act on or prior to the date of consummation of such Corporate Transaction.

*Repricing.* The administrator may, without approval of the stockholders, reduce the exercise price of any stock option or the base appreciation amount of any SAR, or cancel any stock option or SAR when its exercise price or base appreciation amount, respectively, is greater than the fair market of the underlying shares, in exchange for cash, other awards, options or SARs.

*Adjustments*. In the event of (i) any stock dividend, recapitalization, stock split, reverse stock split, combination or reclassification of shares or similar transaction affecting the shares, (ii) any other increase or decrease in the number of issued shares without receipt of consideration by the Company; (iii) any other transaction, including a corporate merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or any similar transaction; or (iv) any distribution of cash or other assets to stockholders other than an ordinary cash dividend, then (a) the number of shares covered by each outstanding award, and the number of shares which have been authorized for issuance under the 2018 Plan but as to which no awards have yet been granted or which have been returned to the 2018 Plan, (b) the exercise or purchase price of each such outstanding award, (c) the maximum number of shares with respect to which awards may be granted to any participant in any calendar year, and (d) any other terms that the administrator determines require adjustment, will be proportionately adjusted (or awards will be substituted, exchanged or granted to effect such adjustments). Any such adjustments to outstanding awards will be effected in a manner that precludes the enlargement of rights and benefits under such awards. In connection with such adjustments, the administrator may, in its discretion, prohibit the exercise of awards or other issuance of shares, cash or other consideration pursuant to awards during certain periods of time. Except as the administrator determines, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no foregoing adjustment shall be made with respect to, the number or price of shares subject to an award.

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*Amendment; Termination*. The administrator may amend, suspend or terminate the 2018 Plan at any time; *provided that* if at any time the approval of our stockholders is required as to any modification or amendment under Section 422 of the Code or any successor provision with respect to ISOs, the administrator may not effect such modification or amendment without such approval.

**2026 Equity Incentive Plan** 

We intend to adopt our 2026 Plan, as a successor to our 2018 Plan, which will become effective on the day prior to the date of the effectiveness of the registration statement for which this prospectus forms a part. The purpose of our 2026 Plan is to attract, retain, and motivate eligible employees, directors, and consultants whose contributions are important to the success of our business. Our 2026 Plan authorizes the award of incentive stock options, or ISOs, which are intended to qualify for tax treatment under Section 422 of the Code, and non-qualified stock options, or NQSOs, Restricted Stock Awards, or RSAs, Stock Appreciation Rights, or SARs, Restricted Stock Units, or RSUs, performance awards and stock bonus awards.

*Share Reserve*. We have initially reserved shares of our common stock, plus any reserved shares not issued or subject to outstanding grants under the 2018 Plan on the effective date of the 2026 Plan, for issuance pursuant to awards granted under our 2026 Plan. The number of shares reserved for issuance under our 2026 Plan will increase automatically on January 1 of each of the first ten (10) calendar years during the term of the 2026 Plan by the number of shares equal to the lesser of (i) % of the aggregate number of shares of all classes of our common stock, plus the total number of shares of our common stock issuable upon conversion of any preferred stock (if any) or exercise of any pre-funded warrants, as issued and outstanding as of the immediately preceding December 31, or (ii) such number as may be determined by our Board or our compensation committee.

In addition, the following shares will again be available for issuance pursuant to awards granted under our 2026 Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares subject to options or SARs granted under our 2026 Plan that cease to be subject to the option or SAR for any reason
other than exercise of the option or SAR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares subject to awards granted under our 2026 Plan that are subsequently forfeited or repurchased by us at the original
issue price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares subject to awards granted under our 2026 Plan that otherwise terminate without such shares being issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares subject to awards granted under our 2026 Plan that are surrendered, cancelled or exchanged for cash or a different
award (or combination thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares subject to awards granted under our 2026 Plan that are surrendered pursuant to an "exchange program" (as
defined in our 2026 Plan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares issuable upon the exercise of options or subject to other awards granted under our 2018 Plan that cease to be
subject to such options or other awards, by forfeiture or otherwise, after the effective date of the 2026 Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares issued under the 2018 Plan before or after the effective date of the 2026 Plan pursuant to the exercise of stock
options that are, after the effective date of the 2026 Plan, forfeited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares subject to awards granted under our 2018 Plan that are forfeited or repurchased by us at the original price after
the effective date of the 2026 Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares subject to awards under our 2018 Plan or our 2026 Plan that are used to pay the exercise price of an option or a SAR
or withheld to satisfy the tax withholding obligations related to any award.

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*Administration*. Our 2026 Plan is expected to be administered by our compensation committee, referred to as the Committee, all of the members of which are outside directors as defined under applicable federal laws, or by our Board acting in place of our Committee. Subject to the terms and conditions of the 2026 Plan, the Committee will have the authority, among other things, to select the persons to whom awards may be granted, construe and interpret our 2026 Plan as well as to determine the terms of such awards and prescribe, amend and rescind the rules and regulations relating to the 2026 Plan or any award granted thereunder. The 2026 Plan provides that our Board or Committee may delegate its authority, including the authority to grant awards, to one or more executive officers to the extent permitted by applicable law, *provided that* awards granted to non-employee directors may only be determined by our Board.

*Eligibility*. Our 2026 Plan provides for the grant of awards to our employees, directors, consultants, independent contractors and advisors.

*Options*. Our 2026 Plan provides for the grant of both ISOs intended to qualify under Section 422 of the Code, and NQSOs to purchase shares of our common stock at a stated exercise price. ISOs may only be granted to employees, including officers and directors who are also employees. The exercise price of stock options granted under the 2026 Plan must be at least equal to the fair market value of our common stock on the date of grant. In addition, ISOs granted to an individual who holds more than 10% of the total combined voting power of all classes of our capital stock must have an exercise price of at least 110% of the fair market value of our common stock on the date of grant. Subject to stock splits, dividends, recapitalizations or similar events, no more than shares may be issued pursuant to the exercise of incentive stock options granted under the 2026 Plan.

Options may vest based on service or achievement of performance conditions. Our Committee may provide for options to be exercised only as they vest or to be immediately exercisable, with any shares issued on exercise being subject to our right of repurchase that lapses as the shares vest. In the event of a participant's termination of service, an option is generally exercisable, to the extent vested, for a period of three months in the case of termination other than due to "cause" or the participant's death or "disability" (as such terms are defined in our 2026 Plan), or 12 months in the case of termination due to the participant's death or disability, or such longer or shorter period as the Committee may provide, but in any event no later than the expiration date of the stock option. Stock options generally terminate upon a participant's termination of employment for cause. The maximum term of options granted under our 2026 Plan is ten years from the date of grant, except that the maximum permitted term of ISOs granted to an individual who holds more than 10% of the total combined voting power of all classes of our capital stock is five years from the date of grant.

*Restricted Stock Awards*. An RSA is an offer by us to sell shares of our common stock subject to restrictions, which may lapse based on the satisfaction of service or achievement of performance conditions. The price, if any, of an RSA will be determined by the Committee. Holders of RSAs will have the right to vote and any dividends or stock distributions paid pursuant to unvested RSAs will be accrued and paid when the restrictions on such shares lapse. Unless otherwise determined by the Committee, vesting will cease on the date the participant no longer provides services to us and unvested RSAs may be forfeited to or repurchased by us.

*Stock Appreciation Rights*. A SAR provides for a payment, in cash or shares of our common stock (up to a specified maximum of shares, if determined by our Committee), to the holder based upon the difference between the fair market value of our common stock on the date of exercise and a predetermined exercise price, multiplied by the number of shares. The exercise price of a SAR must be at least the fair market value of a share of our common stock on the date of grant. SARs may vest based on service or achievement of performance conditions and may not have a term that is longer than ten years from the date of grant.

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*Restricted Stock Units*. RSUs represent the right to receive shares of our common stock at a specified date in the future and may be subject to vesting based on service or achievement of performance conditions. RSUs may be settled in cash, shares of our common stock or a combination of both, generally as soon as practicable following vesting or on a later date subject to the terms of the 2026 Plan and any applicable award agreement. No RSU may have a term that is longer than ten years from the date of grant.

*Performance Awards*. Performance awards granted pursuant to the 2026 Plan maybe in the form of a cash bonus, or an award of performance shares or performance units denominated in shares of our common stock that may be settled in cash, property or by issuance of those shares subject to the satisfaction or achievement of specified performance conditions.

*Stock Bonus Awards*. A stock bonus award provides for payment in the form of cash, shares of our common stock or a combination thereof, based on the fair market value of shares subject such award as determined by our Committee. The awards may be granted as consideration for services already rendered, or at the discretion of the Committee, may be subject to vesting restrictions based on continued service or performance conditions.

*Dividend Equivalents Rights*. Dividend equivalent rights may be granted at the discretion of our Committee and represent the right to receive the value of dividends, if any, paid by us in respect of the number of shares of our common stock underlying an award. Dividend equivalent rights will be subject to the same vesting or performance conditions as the underlying award, subject to the discretion of the Committee, and may be paid only at such time as the underlying award has become fully vested. Dividend equivalent rights may be settled in cash, shares or other property, or a combination of thereof as determined by our Committee. No dividend equivalent rights will be paid in respect of options or SARs.

*Change of Control*. Our 2026 Plan provides that, in the event of a "corporate transaction" (as defined in the 2026 Plan), outstanding awards granted under the 2026 Plan shall be subject to the agreement evidencing the corporate transaction, which need not treat all outstanding awards in an identical manner, and, without a participant's consent, shall provide for one or more of the following: (i) the continuation of outstanding awards; (ii) the assumption of outstanding awards by the successor or acquiring entity or its parent; (iii) the substitution of outstanding awards by the successor or acquiring entity or its parent; (iv) the full or partial acceleration of exercisability, vesting, or lapse of forfeiture conditions, including our right to repurchase shares and accelerated expiration of the award; (v) the settlement of the full value of the outstanding awards (whether or not then vested or exercisable) in cash, cash equivalents, or securities of the successor entity with a fair market value equal to the required amount, as determined in accordance with the 2026 Plan, which may be deferred until the date or dates the award would have become exercisable or vested; or (vi) the cancellation of the outstanding awards for no consideration. In the event such successor corporation refuses to assume, substitute or replace any Award in accordance with this Section 21, then notwithstanding any other provision in this Plan to the contrary, each such Award will become fully vested and, as applicable, exercisable and any rights of repurchase or forfeiture restrictions thereon will lapse, immediately prior to the consummation of the Corporate Transaction. Performance Awards not assumed pursuant to the foregoing shall be deemed earned and vested at 100% of target level, unless otherwise indicated pursuant to the terms and conditions of the applicable Award Agreement. In addition, upon a corporate transaction, the vesting of all awards granted to our non-employee directors will accelerate and such awards will become exercisable (to the extent applicable) in full prior to the consummation of a corporate transaction at such times and on such conditions as the board of directors determines.

*Adjustment*. In the event of a change in the number or class of outstanding shares of our common stock by reason of a stock dividend, extraordinary dividend or distribution (whether in cash,

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shares, or other property, other than a regular cash dividend), recapitalization, stock split, reverse stock split, subdivision, combination, conversion, consolidation reclassification, spin-off or similar change in our capital or corporate structure, in each case without consideration, appropriate proportional adjustments will be made to the number and class of shares reserved for issuance under our 2026 Plan; the exercise prices, number and class of shares subject to outstanding options or SARs; the number and class of shares subject to other outstanding awards; and any applicable maximum award limits with respect to incentive stock options.

*Exchange, Repricing and Buyout of Awards*. Our Committee may, without prior stockholder approval, (i) reduce the exercise price of outstanding options or SARs without the consent of any participant and (ii) pay cash or issue new awards in exchange for the surrender and cancellation of any, or all, outstanding awards, subject to the consent of any affected participant to the extent required by the terms of the 2026 Plan.

*Director Compensation Limits*. The aggregate value of all compensation granted or paid, as applicable, to any individual for service as a non-employee director with respect to any calendar year following the year in which the effectiveness of the registration statement of which this prospectus forms a part occurs, including awards granted and cash fees paid by us to such non-employee director, will not exceed (x) $ in value for continuing directors, or (y) $ in value for the year in which the non-employee director is first appointed or elected. Awards granted, or cash compensation paid, to an individual in consideration of services as an employee or as a consultant will not count for purposes of the foregoing limitations.

*Clawback; Transferability*. All awards will be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by our Board or Committee or required by law, to the extent set forth in such policy or applicable agreement. Except in limited circumstances, awards granted under our 2026 Plan may generally not be transferred in any manner other than by will or by the laws of descent and distribution.

*Sub-Plans*. Subject to the terms of the 2026 Plan, the Committee may establish one or more sub-plans under the 2026 Plan and/or modify the terms of awards granted to participants outside of the United States to comply with any laws or regulations applicable to any such jurisdiction.

*Amendment and Termination*. Our Board may amend our 2026 Plan at any time, subject to stockholder approval as may be required. Our 2026 Plan will terminate ten years from the date our Board adopts the plan, unless it is terminated earlier by our Board. No termination or amendment of the 2026 Plan may adversely affect any then-outstanding award without the consent of the affected participant, except as is necessary to comply with applicable laws or as otherwise provided by the terms of the 2026 Plan.

**2026 Employee Stock Purchase Plan** 

We intend to adopt our ESPP that will become effective on the date of the effectiveness of the registration statement of which this prospectus forms a part. Our ESPP will enable eligible employees to purchase shares of our common stock with accumulated payroll deductions at a discount beginning on a date to be determined by our Board or our Committee. Our ESPP is intended to qualify under Section 423 of the Code *provided that* the Committee may adopt sub-plans under our ESPP designed to be outside of the scope of Section 423 of the Code for participants who are non-U.S. residents.

*Shares Reserve*. We have initially reserved shares of our common stock for sale under our ESPP. The aggregate number of shares reserved for issuance under our ESPP will increase automatically on January 1st of each of the first ten calendar years during the term of the ESPP by the

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number of shares equal to the lesser of % of the aggregate number of shares of all classes of our common stock, plus the total number of shares of our common stock issuable upon conversion of any preferred stock (if any) or exercise of any pre-funded warrants, as issued and outstanding as of the immediately preceding December 31 (rounded to the nearest whole share) or a number of shares as may be determined by our Board in any particular year. The aggregate number of shares issued over the term of our ESPP, subject to stock-splits, recapitalizations or similar events, may not exceed shares of our common stock.

*Administration*. Our ESPP is expected to be administered by our Committee, or by our Board acting in place of our Committee. Among other things, the Committee will have the authority to determine eligibility for participation in the ESPP (to the extent permitted by applicable law), designate separate offerings under the plan, and construe, interpret and apply the terms of the ESPP.

*Eligibility*. Employees eligible to participate in any offering pursuant to the ESPP generally include any employee that is employed by us or certain of our designated subsidiaries at the beginning of an offering period. However, our Committee may determine that employees who have been employed for less than such time period as specified by the Committee, are customarily employed for 20 hours or less per week, or for five months or less in a calendar year, or certain highly-compensated employees as determined in accordance with applicable tax laws, may not be eligible to participate in the ESPP. In addition, any employee who owns (or is deemed to own as a result of attribution) 5% or more of the total combined voting power or value of all classes of our capital stock, or the capital stock of one of our qualifying subsidiaries, or who will own such amount as a result of participation in the ESPP, will not be eligible to participate in the ESPP. Our Committee may impose additional restrictions on eligibility from time to time, as permitted by applicable law.

*Offerings*. Under our ESPP, eligible employees will be offered the option to purchase shares of our common stock at a discount over a series of offering periods, which may be consecutive or overlapping, through accumulated payroll deductions over the period. Each offering period may itself consist of one or more purchase periods. No offering period may be longer than 27 months. The purchase price for shares purchased under our ESPP during any given purchase period will be 85% of the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last trading day of the purchase period.

No participant may purchase more than shares of our common stock during any one purchase period (or such lower or higher number of shares are may be determined by the Committee), and may not subscribe for more than $25,000 in fair market value of shares of our common stock (determined as of the date the offering period commences) in any calendar year in which the offering is in effect.

*Participation*. Participating employees will be able to purchase the offered shares of our common stock by accumulating funds through payroll deductions. Participants may select a rate of payroll deduction between 1% and 15% of their compensation.

*Adjustments Upon Recapitalization*. If the number or class of outstanding shares of our common stock is changed by stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, conversion, reclassification or similar change in our capital or corporate structure without consideration, then our Committee will proportionately adjust the number and class of common stock that is available under the ESPP, the purchase price and number of shares any participant has elected to purchase as well as the maximum number of shares which may be purchased by participants.

*Change of Control*. If we experience a "corporate transaction" (as defined in our ESPP), any offering period that commenced prior to the closing of the proposed change of control transaction will

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be shortened and terminated on a new purchase date. The new purchase date will occur on or prior to the closing of the proposed change of control transaction, and our ESPP will then terminate on the closing of the proposed change of control.

*Transferability*. A participant may generally not assign, transfer, pledge or otherwise dispose of payroll deductions credited to his or her account, or any rights with regard to an election to purchase shares pursuant to the ESPP other than by will or the laws of descent or distribution.

*Amendment; Termination*. The Committee may amend, suspend or terminate the ESPP at any time without stockholder consent, except to the extent such amendment would increase the number of shares available for issuance under our ESPP, change the class or designation of employees eligible for participation in the plan or otherwise as required by law. If our ESPP is terminated, the Committee may elect to terminate all outstanding offering periods immediately, upon the next purchase date (which may be sooner than originally scheduled) or upon the last day of such offering period. Our ESPP will continue until the earlier to occur of (a) termination of the ESPP by the Committee, (b) issuance of all of the shares reserved for issuance under the ESPP, or (c) the tenth anniversary of the effective date under the ESPP.

**401(k) Plan** 

We sponsor a retirement savings plan that is intended to qualify for favorable tax treatment under Section 401(a) of the Code and contains a cash or deferred feature that is intended to meet the requirements of Section 401(k) of the Code. Participants may make pre-tax and certain after-tax (Roth) salary deferral contributions to the plan from their eligible earnings up to the statutorily prescribed annual limit under the Code. Participants who are projected to reach 50 years of age or older during a calendar year may contribute additional amounts based on the statutory limits for catch-up contributions. Participant contributions are held in trust as required by law.

**Other benefits** 

Our named executive officers are eligible to participate in our employee benefit plans on the same basis as our other employees, including our health and welfare plans.

**Limitations on liability and indemnification matters** 

Our restated certificate of incorporation that will become effective upon the completion of this offering contains provisions that limit the liability of our directors and officers for monetary damages to the fullest extent permitted by the DGCL. Consequently, our directors and officers will not be personally liable to us or our stockholders for monetary damages for any breach of fiduciary duties as directors or officers, except liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any breach of the director's or officer's duty of loyalty to us or our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to directors, unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in
Section 174 of the DGCL; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any transaction from which the director derived an improper personal benefit.

Our restated certificate of incorporation and our restated bylaws that will become effective upon the completion of this offering require us to indemnify our directors and officers to the maximum extent

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not prohibited by the DGCL and allow us to indemnify other employees and agents as set forth in the DGCL. Subject to certain limitations, our restated bylaws will also require us to advance expenses incurred by our directors and officers for the defense of any action for which indemnification is required or permitted, subject to very limited exceptions.

We have entered, and intend to continue to enter, into separate indemnification agreements with our directors, executive officers and certain of our key employees, in addition to the indemnification provided for in our restated certificate of incorporation and restated bylaws. These agreements, among other things, require us to indemnify our directors, officers and key employees for certain expenses, including attorneys' fees, judgments, penalties, fines and settlement amounts actually incurred by these individuals in any action or proceeding arising out of their service to us or any of our subsidiaries or any other company or enterprise to which these individuals provide services at our request. Subject to certain limitations, our indemnification agreements also require us to advance expenses incurred by our directors, officers and key employees for the defense of any action for which indemnification is required or permitted.

We believe that these indemnification provisions and agreements are necessary to attract and retain qualified directors, officers and key employees. We also maintain directors' and officers' liability insurance.

The limitation of liability and indemnification provisions in our restated certificate of incorporation and restated bylaws may discourage stockholders from bringing a lawsuit against our directors and officers for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and other stockholders. Further, a stockholder's investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and executive officers as required by these indemnification provisions.

At present, there is no pending litigation or proceeding involving any of our directors or executive officers as to which indemnification is required or permitted, and we are not aware of any threatened litigation or proceeding that may result in a claim for indemnification.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**Compensation Recovery Policy** 

In connection with the completion of this offering, our Board intends to adopt a compensation recovery policy (Compensation Recovery Policy) which will become effective upon the effectiveness of this registration statement. The Compensation Recovery Policy is in accordance with the final rules regarding recovery of erroneously awarded executive officer compensation in connection with an accounting restatement, as adopted by the SEC in October 2022, and consistent with the corresponding listing standards (together, the Clawback Rules). Pursuant to the Compensation Recovery Policy, and subject to certain limited exceptions in the Clawback Rules, in the event we are required to restate our financial statements, we are required to recoup erroneously awarded incentive-based compensation (as described in the Clawback Rules), including both cash and equity compensation paid to any current or former executive officer (as described in the Clawback Rules) during the three completed fiscal years immediately prior to the date the accounting restatement was required. The amount recoverable is the amount of any incentive-based compensation received by the

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executive officer based on the financial statements prior to the restatement that exceeds the amount that such executive officer would have received had the incentive-based compensation been determined based on the financial restatement.

**Equity Award Grant Practices** 

We grant equity awards on a discretionary basis in connection with certain events such as the commencement or anniversary of employment, promotion, high performance, or the closing of an acquisition. We do not grant awards in anticipation of the release of material nonpublic information, and we do not time the release of material nonpublic information for the purpose of affecting the value of any equity awards or executive compensation.

**Rule 10b5-1 Plans** 

Our directors, officers and key employees may adopt written plans, known as Rule 10b5-1 plans, in which they will contract with a broker to buy or sell shares of our common stock on a periodic basis. Under a Rule 10b5-1 plan, a broker executes trades under parameters established by the director or officer when entering into the plan, without further direction from the director or officer. The director or officer may amend or terminate a Rule 10b5-1 plan, subject to certain requirements. Our directors and executive officers may also buy or sell additional shares outside of a Rule 10b5-1 plan when they are not in possession of material nonpublic information, subject to compliance with the terms of our insider trading policy and any applicable Rule 10b5-1 guidelines. Prior to 180 days after the date of the completion of this offering, subject to early termination, the sale of any shares under such Rule 10b5-1 plan would be subject to the lock-up agreement that our directors and executive officers have entered into with the underwriters in connection with this offering.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

In addition to the compensation arrangements, including any employment, termination of employment and change in control arrangements, with our directors and executive officers, including those discussed in the sections titled "Management" and "Executive Compensation," the following is a description of each transaction since January 1, 2023 and each currently proposed transaction in which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have been or are to be a participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amounts involved exceeded or will exceed the lesser of $120,000 and 1.0% of our total assets at year-end for the last two completed fiscal years; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of our directors, executive officers or holders of more than 5.0% of our capital stock, or an affiliate or immediate
family member of the foregoing persons, had or will have a direct or indirect material interest.

**Agreements with UCB** 

We are party to the UCB Exclusive License Agreement. Dr. Doudna, who holds greater than 5% of our common stock, is one of our co-founders, and is a member of our scientific advisory board, currently serves as professor of Molecular and Cell Biology and Chemistry at UCB. See "Business—Material agreements—UCB—Amended and Restated Exclusive License Agreement" for additional information.

**Investors' rights agreement** 

In connection with our Series B Preferred Stock financing, we entered into the IRA with certain holders of our redeemable convertible preferred stock, including entities with which certain of our directors are affiliated and who hold more than 5% of our outstanding common stock. Under the IRA, these stockholders are entitled to rights with respect to the registration of their shares under the Securities Act following this offering and the provisions relating registration rights included in the IRA will not terminate as a result of this offering. See the section titled "Description of Capital Stock—Registration rights" for additional information.

**Indemnification agreements** 

We have entered into and in connection with this offering, we intend to enter into new, indemnification agreements with each of our directors and executive officers. The indemnification agreements, our restated certificate of incorporation and our restated bylaws will require us to indemnify our directors to the fullest extent not prohibited by Delaware law. Subject to certain limitations, our restated bylaws also require us to advance expenses incurred by our directors and executive officers. See the section titled "Executive Compensation—Limitations on liability and indemnification matters" for additional information.

**Policies and procedures for related party transactions** 

In connection with this offering, we intend to adopt a written related person transactions policy that provides that our executive officers, directors, nominees for election as a director, beneficial owners of more than 5% of our common stock, and any members of the immediate family of and any entity affiliated with any of the foregoing persons, are not permitted to enter into a material related person transaction with us without the review and approval of our audit committee, or a committee composed solely of independent directors in the event it is inappropriate for our audit committee to

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review such transaction due to a conflict of interest. We expect the policy to provide that any request for us to enter into a transaction with an executive officer, director, nominee for election as a director, beneficial owner of more than 5% of our common stock or with any of their immediate family members or affiliates in which the amount involved exceeds $120,000 will be presented to our audit committee (or the committee composed solely of independent directors, if applicable) for review, consideration and approval. In approving or rejecting any such proposal, we expect that our audit committee (or the committee composed solely of independent directors, if applicable) will consider the relevant facts and circumstances available and deemed relevant to the audit committee (or the committee composed solely of independent directors, if applicable), including, but not limited to, whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances and the extent of the related person's interest in the transaction.

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**PRINCIPAL STOCKHOLDERS** 

The following table and accompanying footnotes set forth certain information with respect to the beneficial ownership of shares of our common stock as of , 2026, and as adjusted to reflect the shares of our common stock to be issued and sold in this offering, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our named executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our current directors and executive officers as a group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person, or group of affiliated persons, known by us to be the beneficial owner of more than 5% of the outstanding
shares of our common stock.

We have determined beneficial ownership in accordance with the rules of the SEC. Except as indicated by the footnotes below, to our knowledge, the persons and entities named in the table below have sole voting and sole investment power with respect to all shares of our common stock that they beneficially owned, subject to applicable community property laws.

Beneficial ownership prior to this offering is based on shares of our common stock outstanding as of , 2026, assuming (i) the Preferred Stock Conversion, (ii) the Warrant Conversion and (iii) the Note Conversion described below, in each case immediately prior to the completion of this offering. Beneficial ownership after this offering is based on shares of our common stock outstanding, assuming the Preferred Stock Conversion, the Warrant Conversion and the Note Conversion, and giving effect to the shares of our common stock issued by us in this offering, assuming that the underwriters do not exercise their option to purchase up to an additional shares of our common stock from us in part or in full. In computing the number of shares of common stock beneficially owned by a person and the percentage ownership of that person, we deemed to be outstanding all shares of common stock subject to stock options held by that person or entity that are currently exercisable or that will become exercisable within 60 days of , 2026. We did not deem these shares outstanding, however, for the purpose of computing the percentage ownership of any other person.

Unless otherwise indicated, the address of each beneficial owner listed in the table below is c/o Scribe Therapeutics Inc., 1150 Marina Village Parkway, Alameda, California 94501.

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| | | | |
|:---|:---|:---|:---|
|  | **Number of<br>Shares<br>Beneficially<br>Owned** | **Percentage of Shares<br>Beneficially Owned** | **Percentage of Shares<br>Beneficially Owned** |
| **Name of Beneficial Owner** | **Number of<br>Shares<br>Beneficially<br>Owned** | **Before<br>Offering** | **After<br>Offering** |
|  **Directors and Named Executive Officers:** |  |  |  |
|  Benjamin L. Oakes, Ph.D.(1) |  |  |  |
|  Svetlana Lucas, Ph.D.(2) |  |  |  |
|  David L. Parrot(3) |  |  |  |
|  James Watson, M.B.A. |  |  |  |
|  Behzad Aghazadeh, Ph.D.(4) |  |  |  |
|  Carl L. Gordon, Ph.D., CFA(5) |  |  |  |
|  All executive officers and directors as a group (6 persons)(6) |  |  |  |
|  **Other 5% stockholders:** |  |  |  |
|  Entities affiliated with Andreessen Horowitz(7) |  |  |  |
|  Entities affiliated with Avoro Life Sciences Fund LLC(4) |  |  |  |
|  Jennifer A. Doudna(8) |  |  |  |
|  Brett T. Staahl(9) |  |  |  |

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\* Represents beneficial ownership of less than 1%. 

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(1) Consists of (i)    shares of common stock and (ii)    shares underlying
options to purchase common stock that are exercisable within 60 days of    , 2026.

(2) Consists of    shares underlying options to purchase common stock that are exercisable within 60
days of    , 2026.

(3) Consists of    shares underlying options to purchase common stock that are exercisable within 60
days of    , 2026.

(4) Consists of (i)    shares of common stock held by Avoro Life Sciences Fund LLC and
(ii)    shares of common stock held by Avoro Ventures Fund L.P. Avoro Capital Advisors LLC ("Avoro") is the investment advisor for Avoro Life Sciences Fund LLC and Avoro Ventures LLC ("Avoro Ventures")
is the investment advisor for Avoro Ventures Fund L.P. Behzad Aghazadeh serves as the portfolio manager and controlling person of Avoro and Avoro Ventures and may be deemed to have investment discretion and voting power over the shares held by Avoro
and Avoro Ventures. Dr. Aghazadeh disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest in such shares, if any. The address of Avoro Life Sciences Fund LLC and Avoro Ventures Fund L.P. is 110 Greene
Street, Suite 800, New York, NY 10012.

(5) Consists of    shares of common stock held by OrbiMed Private Investments VIII, L.P. ("OPI
VIII"). OrbiMed Capital GP VIII LLC ("GP VIII") is the general partner of OPI VIII. OrbiMed Advisors LLC ("OrbiMed Advisors") is the managing member of GP VIII. By virtue of such relationships, GP VIII and OrbiMed
Advisors may be deemed to have voting power and investment power over the securities held by OPI VIII and as a result, may be deemed to have beneficial ownership over such securities. OrbiMed Advisors exercises voting and investment power through a
management committee comprised of Carl L. Gordon, Sven H. Borho, and W. Carter Neild, each of whom disclaims beneficial ownership of the shares held by OPI VIII.

(6) Consists of (i)    shares of common stock and (ii)    shares underlying
options to purchase common stock that are exercisable within 60 days of    , 2026.

(7) Consists of (i)    shares of common stock held of record by AH Bio Fund II, L.P. (AH Bio II), for
itself and as nominee for AH Bio Fund II-B, L.P. (AH Bio II-B, and together with AH Bio II, the AH Bio II Entities), and (ii)    shares of common stock held of record by AH Bio Fund
III, L.P. (AH Bio III), for itself and as nominee for AH Bio Fund III-B, L.P. (AH Bio III-B), AH Bio Fund III-Q, L.P. (AH
Bio III-Q) and CLF Partners II, LP (CLF II, and together with AH Bio III, AH Bio III-B, and AH Bio III-Q, the AH Bio
III Entities). AH Equity Partners Bio II, L.L.C. (AH Equity Bio II), the general partner of AH Bio II, may be deemed to have sole voting and dispositive power over the shares held by the AH Bio II Entities. AH Equity Partners Bio III,
L.L.C. (AH Equity Bio III), the general partner of AH Bio III, may be deemed to have sole voting and dispositive power over the shares held by the AH Bio III Entities. The managing members of each of AH Equity Bio II and AH Equity Bio III are
Marc Andreessen and Ben Horowitz, and each of them may be deemed to hold shared voting and dispositive power over the shares held by the AH Bio II Entities and the AH Bio III Entities. The address for the persons and entities set forth herein is
2865 Sand Hill Road, Suite 101, Menlo Park, CA 94025.

(8) Consists of    shares of common stock.

(9) Consists of (i)    shares of common stock and (ii)    shares underlying
options to purchase common stock that are exercisable within 60 days of    , 2026.

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**DESCRIPTION OF CAPITAL STOCK** 

*The following description summarizes the most important terms of our capital stock, as will be in effect following this offering. Because it is only a summary, it does not contain all the information that may be important to you. We expect to adopt a restated certificate of incorporation and restated bylaws that will become effective upon the completion of this offering, and this description summarizes provisions that are expected to be included in these documents. For a complete description, you should refer to our restated certificate of incorporation and restated bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part, and to the applicable provisions of Delaware law.* 

**General** 

Upon the completion of this offering, our authorized capital stock will consist of shares of our common stock, $0.001 par value per share, and shares of our undesignated preferred stock, $0.001 par value per share.

Pursuant to the provisions of our current amended and restated certificate of incorporation, all of our Series A Preferred Stock, Series A-1 Preferred Stock, Series A-2 Preferred Stock and Series B Preferred Stock will automatically convert into common stock in connection with the completion of this offering. Our Series A Preferred Stock will convert at a ratio of , our Series A-1 Preferred Stock will convert at a ratio of , our Series A-2 Preferred Stock will convert at a ratio of and our Series B Preferred Stock will convert at a ratio of . Assuming the effectiveness of this conversion as of December 31, 2025, the Warrant Conversion, and the Note Conversion, there were shares of our common stock issued, held by approximately stockholders of record, and no shares of our redeemable convertible preferred stock outstanding. Our board of directors is authorized, without stockholder approval, to issue additional shares of our capital stock.

**Common stock** 

***Dividend rights***

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine. See the section titled "Dividend Policy" for additional information.

***Voting rights***

Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders. We have not provided for cumulative voting for the election of directors in our restated certificate of incorporation, which means that holders of a majority of the shares of our common stock will be able to elect all of our directors. Our restated certificate of incorporation will establish a classified board of directors, to be divided into three classes with staggered three-year terms. Only one class of directors will be elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three-year terms.

***No preemptive or similar rights***

Our common stock is not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions.

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***Right to receive liquidation distributions***

Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares our of preferred stock.

**Preferred stock** 

After the completion of this offering, no shares of our preferred stock will be outstanding. Pursuant to our restated certificate of incorporation that will become effective immediately prior to the completion of this offering, our board of directors will be authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series and to fix the designation, powers, preferences and rights of the shares of each series and any of their qualifications, limitations or restrictions, in each case without further vote or action by our stockholders. Our board of directors will also be able to increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding and not above the number of shares of that series authorized, without any further vote or action by our stockholders. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of our company and might adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. We have no current plan to issue any shares of preferred stock.

**Stock options** 

As of December 31, 2025, we had outstanding options to purchase an aggregate shares of our common stock, with a weighted-average exercise price of $ per share under our 2018 Plan.

**Registration rights** 

Pursuant to the terms of the IRA immediately following this offering, the holders of shares of our common stock will be entitled to rights with respect to the registration of such shares under the Securities Act as described below. We refer to these shares collectively as registrable securities. These rights are provided under the terms of the IRA between us and the holders of these shares, which was entered into in connection with our redeemable convertible preferred stock financings prior to this offering.

***Demand registration rights***

The holders of not less than a majority of the registrable securities issued or issuable upon conversion of shares of preferred stock may make a request to us for the registration under the Securities Act of at least a majority of the registrable securities then outstanding, or a lesser percent if the anticipated aggregate offering price, net of selling expenses, would exceed $15.0 million. Within 10 days after the date such request is given, we are obligated to provide notice of such request to all holders of registrable securities other than the holders that initiated the request and, as soon as practicable and in any event within 60 days after the date such request is given, file a Form S-1 registration statement under the Securities Act covering all registrable securities that the initiating

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holders requested to be registered and any additional registrable securities requested to be included in such registration by any other holders. We are only required to file two registration statements that are declared effective upon exercise of these demand registration rights. We may postpone taking action with respect to such filing not more than once during any 12-month period for a total period of not more than 90 days, if after receiving a request for registration, we furnish to the holders requesting such registration a certificate signed by our chief executive officer stating that, in the good faith judgment of our board of directors, it would be materially detrimental to us and our stockholders.

The underwriters of any underwritten offering will have the right to limit the number of shares registered by these holders if they determine that marketing factors require limitation, in which case the number of shares to be registered will be apportioned, in proportion (as nearly as practicable), to the number of registrable securities owned by each holder or in such other proportion as shall mutually be agreed to by all such selling holders. However, the number of shares to be registered by these holders cannot be reduced unless all other securities are first entirely excluded from the underwriting.

***Form S-3 registration rights***

The holders of at least 30% of the then-outstanding registrable securities can request that we register all or part of their shares on Form S-3 if we are eligible to file a registration statement on Form S-3 and if the anticipated aggregate price to the public of the shares offered, net of selling expenses, is at least $5.0 million. Within 10 days after such request is given, we are obligated to provide notice of such request to all holders of registrable securities other than the initiating holders and as soon as practicable and in any event within 45 days, file a Form S-3 registration statement covering all registrable securities that the initiating holders requested to be registered and any additional registrable securities requested to be included in such registration by any other holders. We are only required to file two registration statements on Form S-3 in a 12-month period. We may postpone taking action with respect to such filing not more than once during any 12-month period for a period of not more than 90 days if, after receiving a request for registration, we furnish to the holders requesting such registration a certificate signed by our chief executive officer stating that, in the good faith judgment of our board of directors, it would be materially detrimental to us and our stockholders; provided that we may not register any securities for our own account or that of any other stockholder during such 90-day period other than under certain circumstances.

The underwriters of any underwritten offering will have the right to limit the number of shares registered by these holders if they determine that marketing factors require limitation, in which case the number of shares to be registered will be apportioned, in proportion (as nearly as practicable), to the number of registrable securities owned by each holder or in such other proportion as shall mutually be agreed to by all such selling holders. However, the number of shares to be registered by these holders cannot be reduced unless all other securities are first entirely excluded from the underwriting.

***Piggyback registration rights***

If we register any of our securities for public sale in cash, holders of then-outstanding registrable securities or their permitted transferees will have the right to include their registrable securities in the registration statement. However, this right does not apply to a registration relating to the sale or grant of securities to our employees pursuant to a stock option, stock purchase, equity incentive or similar plan, a registration relating to a Rule 145 transaction, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of our common stock, or a registration in which the only common stock being registered is common stock issuable upon conversion of debt securities that are also being registered. If the underwriters determine that less than all the registrable securities requested to be registered can be included in the offering, the number of registrable shares to be registered will be allocated among

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holders of our registrable securities, in proportion (as nearly as practicable) to the amount of registrable securities owned by each such holder or in such other proportions as shall mutually be agreed to by all such holders. However, the number of shares to be registered by holders of registrable securities cannot be reduced unless all other securities (other than as offered by us) are first entirely excluded. The number of registrable securities included in the offering may not be reduced below 20% of the total number of securities included in such offering, except for in connection with an initial public offering, in which case the underwriters may exclude these holders entirely.

***Expenses of registration rights***

We generally will pay all expenses, including expenses of one counsel for the selling holders, other than underwriting discounts and selling commissions incurred in connection with each of the registrations described above, including the reasonable fees and disbursements, provided, however, that the registrations described above are not subsequently withdrawn at the request of the holders of a majority in interest of the registrable securities (in which case all selling holders shall bear such expenses pro rata based upon the number of registrable securities that were to be included in the withdrawn registration) unless the holders of a majority of the registrable securities agree to forfeit their right to a registration as described above.

***Expiration of registration rights***

The registration rights described above will expire, with respect to any particular holder of these rights, on the earliest to occur of (i) the closing of a deemed liquidation event, as defined in our restated certificate of incorporation, (ii) such time after this offering as the registrable securities held by such holder may be sold within any three-month period without restriction pursuant to Rule 144 or a similar exemption under the Securities Act or (iii) the third anniversary of this offering.

**Anti-takeover provisions** 

The provisions of the DGCL, our restated certificate of incorporation and our restated bylaws, as we expect they will be in effect upon the completion of this offering, could have the effect of delaying, deferring or discouraging another person from acquiring control of our Company. These provisions, which are summarized below, may have the effect of discouraging takeover bids. They are also designed, in part, to encourage persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

***Delaware law***

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a period of three years following the date on which the person became an interested stockholder unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prior to the date of the transaction, the board of directors of the corporation approved either the business combination or
the transaction which resulted in the stockholder becoming an interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the
transaction commenced, excluding for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested

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stockholder, (i) shares owned by persons who are directors and also executive officers and (ii) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at or subsequent to the date of the transaction, the business combination is approved by the board of directors of the
corporation and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66.67% of the outstanding voting stock that is not owned by the interested stockholder.

Generally, a business combination includes a merger, asset or stock sale, or other transaction or series of transactions together resulting in a financial benefit to the interested stockholder. An interested stockholder is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation's outstanding voting stock. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our board of directors does not approve in advance. We also anticipate that Section 203 of the DGCL may also discourage attempts that might result in a premium over the market price for the shares of common stock held by stockholders.

***Restated certificate of incorporation and restated bylaw provisions***

Our restated certificate of incorporation and our restated bylaws, as we expect they will be in effect upon the completion of this offering, include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our company, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Board of Directors Vacancies*. Our restated certificate of incorporation and restated bylaws will authorize only our
board of directors to fill vacant directorships, including newly created seats. In addition, the number of directors constituting our board of directors is permitted to be set only by a resolution adopted by a majority vote of our entire board of
directors. These provisions would prevent a stockholder from increasing the size of our board of directors and then gaining control of our board of directors by filling the resulting vacancies with its own nominees. This makes it more difficult to
change the composition of our board of directors but promotes continuity of management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Classified Board*. Our restated certificate of incorporation and restated bylaws will provide that our board of
directors is classified into three classes of directors, each with staggered three-year terms. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of us as it
is more difficult and time consuming for stockholders to replace a majority of the directors on a classified board of directors. See the section titled "Management—Classified board of directors" for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Stockholder Action; Special Meetings of Stockholders*. Our restated certificate of incorporation will provide that
our stockholders may not take action by written consent but may only take action at annual or special meetings of our stockholders. As a result, a holder controlling a majority of our capital stock would not be able to amend our restated bylaws or
remove directors without holding a meeting of our stockholders called in accordance with our restated bylaws. Further, our restated certificate of incorporation and restated bylaws will provide that special meetings of our stockholders may be called
only by a majority of our board of directors, the chairperson of our board of directors, our chief executive officer or our president, thus prohibiting a stockholder from calling a special meeting. These provisions might delay the ability of our
stockholders to force consideration of a proposal or for stockholders controlling a majority of our capital stock to take any action, including the removal of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Advance Notice Requirements for Stockholder Proposals and Director Nominations*. Our restated bylaws will provide
advance notice procedures for stockholders seeking to bring

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business before our annual meeting of stockholders or to nominate candidates for election as directors at our annual meeting of stockholders. Our restated bylaws also will specify certain requirements regarding the form and content of a stockholder's notice. These provisions might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders if the proper procedures are not followed. We expect that these provisions might also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to obtain control of our Company. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *No Cumulative Voting*. The DGCL provides that stockholders are not entitled to the right to cumulate votes in the
election of directors unless a corporation's certificate of incorporation provides otherwise. Our restated certificate of incorporation and restated bylaws will not provide for cumulative voting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Directors Removed Only for Cause*. Our restated certificate of incorporation will provide that stockholders may
remove directors only for cause and only by the affirmative vote of the holders of at least two-thirds of our outstanding common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Amendment of Charter Provisions*. Any amendment of the above expected provisions in our restated certificate of
incorporation will require approval by the holders of at least two-thirds of our outstanding common stock, unless such amendments are approved by two thirds of our entire board of directors, in which case
stockholders can approve by a simple majority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Issuance of Undesignated Preferred Stock*. Our board of directors has the authority, without further action by the
stockholders, to issue up to shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our board of directors. The existence of authorized but unissued shares of preferred stock
would enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by merger, tender offer, proxy contest or other means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Choice of Forum*. Our restated certificate of incorporation will provide that, to the fullest extent permitted by
law, the Court of Chancery of the State of Delaware will be the exclusive forum for any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant
to the DGCL, our restated certificate of incorporation or our restated bylaws; or any action asserting a claim against us that is governed by the internal affairs doctrine. Our restated bylaws will provide that the federal district courts of the
United States will, to the fullest extent permitted by law, be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, which we refer to as a Federal Forum Provision. Our decision to adopt a
Federal Forum Provision followed a decision by the Supreme Court of the State of Delaware holding that such provisions are facially valid under Delaware law. While there can be no assurance that federal courts or other state courts will follow the
holding of the Delaware Supreme Court or determine that the Federal Forum Provision should be enforced in a particular case, application of the Federal Forum Provision means that suits brought by our stockholders to enforce any duty or liability

laws and the regulations promulgated thereunder. Any person or entity purchasing or otherwise acquiring or holding any interest in any of our securities shall be

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deemed to have notice of and consented to our exclusive forum provisions, including the Federal Forum Provision. These provisions may limit a stockholder's ability to bring a claim in a judicial forum of their choosing for disputes with us or our directors, executive officers, other employees or agents of our Company, which may discourage lawsuits against us and our directors, executive officers and other employees. <br>

**Transfer agent and registrar** 

Upon the completion of this offering, the transfer agent and registrar for our common stock will be . The transfer agent and registrar's address is .

**The Nasdaq Global Market listing** 

We intend to apply to list our common stock on Nasdaq under the symbol "SCRB." The closing of this offering is contingent upon such listing.

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there has been no public market for our common stock, and we cannot predict the effect, if any, that market sales of shares of our common stock or the availability of shares of our common stock for sale will have on the market price of our common stock prevailing from time to time. Nevertheless, sales of our common stock, including shares issued upon exercise of outstanding options, in the public market following this offering could adversely affect market prices prevailing from time to time and could impair our ability to raise capital through the sale of our equity securities.

Upon the completion of this offering, based on the shares of our capital stock outstanding as of December 31, 2025, we will have a total of shares of our common stock outstanding, assuming (i) the Preferred Stock Conversion, (ii) the Warrant Conversion, (iii) the Note Conversion and (iv) the issuance of shares of common stock in this offering, assuming that the underwriters do not exercise their option to purchase up to an additional shares of our common stock from us in part or in full. Of these outstanding shares, all of the shares of our common stock sold in this offering will be freely tradable, except that any shares purchased in this offering by our affiliates, as that term is defined in Rule 144 under the Securities Act can only be sold in compliance with the Rule 144 limitations described below.

The remaining outstanding shares of our common stock will be, and shares subject to stock options will be upon issuance, deemed "restricted securities" as defined in Rule 144. Restricted securities may be sold in the public market only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rule 144 or Rule 701 promulgated under the Securities Act, which rules are summarized below. In addition, substantially all of our security holders have, or will have, entered into market standoff agreements with us or lock-up agreements with the underwriters under which they have agreed, subject to specific exceptions, not to sell any of our stock for at least 180 days following the date of this prospectus, as described below.

**Lock-up and market standoff agreements** 

All of our directors and officers and substantially all of our security holders are, or will be, subject to lock-up agreements or market standoff provisions that prohibit them from offering for sale, selling, contracting to sell, granting any option for the sale of, transferring or otherwise disposing of any shares of our common stock or options to acquire shares of our common stock or any security or instrument related to our common stock, or entering into any swap, hedge or other arrangement that transfers any of the economic consequences of ownership of our common stock, for a period of 180 days following the date of this prospectus without the prior written consent of Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Leerink Partners LLC, subject to certain exceptions. See the section titled "Underwriting" for additional information.

**Rule 144** 

In general, Rule 144 provides that once we have been subject to public company reporting requirements of Section 13 or Section 15(d) of the Exchange Act for at least 90 days, a person who is not deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the shares of our common stock proposed to be sold for at least six months, including the holding period of any prior owner other than our affiliates, is entitled to sell those shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then that person would be entitled to sell those shares without complying with any of the requirements of Rule 144.

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In general, Rule 144 provides that our affiliates or persons selling shares of our common stock on behalf of our affiliates are entitled to sell upon expiration of the lock-up and market standoff agreements described above, within any three-month period, a number of shares of our common stock that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of shares of our common stock then outstanding, which will equal approximately
     shares immediately after the completion of this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average reported weekly trading volume of shares of our common stock during the four calendar weeks preceding the
filing of a notice on Form 144 with respect to that sale.

Sales under Rule 144 by our affiliates or persons selling shares of our common stock on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

**Rule 701** 

Rule 701 generally allows a stockholder who purchased shares of our common stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of our Company during the immediately preceding 90 days to sell these shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. Rule 701 also permits our affiliates to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required to wait until 90 days after the date of this prospectus before selling those shares pursuant to Rule 701 and are subject to the lock-up and market standoff agreements described above.

**Form S-8 registration statement** 

In connection with this offering, we intend to file a registration statement on Form S-8 under the Securities Act covering all of the shares of our common stock subject to outstanding options and the shares of our common stock reserved for issuance under our equity incentive plans. We expect to file this registration statement as soon as permitted under the Securities Act. However, the shares registered on Form S-8 may be subject to the volume limitations and the manner of sale, notice and public information requirements of Rule 144 and will not be eligible for resale until expiration of the lock-up and market standoff agreements to which they are subject. Of the 6,924,287 shares of our common stock that were subject to options outstanding as of December 31, 2025, options to purchase 4,695,146 shares of common stock were vested as of December 31, 2025. Shares of our common stock underlying outstanding options will not be eligible for sale until the expiration of the 180-day lock-up and market standoff agreements to which they are subject.

**Registration rights** 

We have granted demand, piggyback and Form S-3 registration rights to certain of our stockholders to sell our common stock. Registration of the sale of these shares under the Securities Act would result in these shares becoming freely tradable without restriction under the Securities Act immediately upon the effectiveness of the registration, except for shares purchased by affiliates. See the section titled "Description of Capital Stock—Registration rights" for additional information.

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**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS** 

The following summary describes the material U.S. federal income tax consequences of the acquisition, ownership and disposition of shares of our common stock acquired in this offering by Non-U.S. Holders (as defined below). This discussion does not address all aspects of U.S. federal income taxation, does not discuss the potential application of the alternative minimum tax or Medicare contribution tax on net investment income and does not deal with state or local tax laws, U.S. federal gift and estate tax laws, except to the limited extent provided below, or any non-U.S. tax laws that may be relevant to Non-U.S. Holders in light of their particular circumstances.

Special rules different from those described below may apply to certain Non-U.S. Holders that are subject to special treatment under the Code, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insurance companies, banks, investment funds and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt organizations (including private foundations) and tax-qualified retirement plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• foreign governments and international organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• broker-dealers and traders in securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. expatriates and certain former citizens or long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons required for U.S. federal income tax purposes to conform the timing of income accruals to their financial
statements under Section 451(b) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all of the
interests of which are held by qualified foreign pension funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that own, or are deemed to own, actually or constructively (including but not limited to for purposes of
Section 897 of the Code), more than 5% of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "controlled foreign corporations," "passive foreign investment companies" and corporations that
accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that hold our common stock as part of a "straddle," "hedge," "conversion
transaction," "synthetic security" or integrated investment or other risk reduction strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons who do not hold our common stock as a capital asset within the meaning of Section 1221 of the Code (generally,
for investment purposes); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships and other entities or arrangements treated as pass-through entities for U.S. federal income tax purposes,
and investors in such entities (regardless of their places of organization or formation).

Such Non-U.S. Holders are urged to consult their own tax advisors to determine the U.S. federal, state, local and other tax consequences that may be relevant to them.

If an entity or arrangement that is classified as a partnership for U.S. federal income tax purposes holds our common stock, the U.S. federal income tax treatment of the partnership and the partners thereof generally will depend on the status of the partner and the activities of the partnership. Partnerships holding our common stock and the partners in such partnerships are urged to consult their tax advisors about the particular U.S. federal income tax consequences to them of holding and disposing of our common stock.

Furthermore, the discussion below is based upon the provisions of the Code, U.S. Treasury Regulations promulgated thereunder, published rulings and administrative pronouncements of the U.S. Internal Revenue Service, or the IRS, and judicial decisions, in each case as of the date hereof,

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and such authorities may be repealed, revoked or modified, possibly retroactively, or could be subject to differing interpretations which could result in U.S. federal income tax consequences different from those discussed below. We have not requested a ruling from the IRS with respect to the statements made and the conclusions reached in the following summary, and there can be no assurance that the IRS will not take a contrary position regarding the tax consequences described herein, or that any such contrary position would not be sustained by a court.

PERSONS CONSIDERING THE PURCHASE OF OUR COMMON STOCK PURSUANT TO THIS OFFERING SHOULD CONSULT THEIR OWN TAX ADVISORS CONCERNING THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF ACQUIRING, OWNING AND DISPOSING OF OUR COMMON STOCK IN LIGHT OF THEIR PARTICULAR SITUATIONS AS WELL AS ANY CONSEQUENCES ARISING UNDER THE LAWS OF ANY OTHER TAXING JURISDICTION, INCLUDING ANY STATE, LOCAL OR NON-U.S. TAX CONSEQUENCES OR ANY U.S. FEDERAL NON-INCOME TAX CONSEQUENCES, AND THE POSSIBLE APPLICATION OF TAX TREATIES.

For the purposes of this discussion, a "Non-U.S. Holder" is a beneficial owner of our common stock, other than a partnership or other entity or arrangement treated as a pass-through entity, that is not, for U.S. federal income tax purposes, (a) an individual who is a citizen or resident of the United States, (b) a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia, (c) an estate, the income of which is subject to U.S. federal income taxation regardless of its source, or (d) a trust that (1) is subject to the primary supervision of a court within the United States and one or more United States persons (within the meaning of Section 7701(a)(30) of the Code) have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable U.S. Treasury Regulations to be treated as a United States person.

If you are an individual who is not a U.S. citizen, you may, in some cases, be deemed to be a resident alien (as opposed to a nonresident alien) by virtue of being present in the United States for at least 31 days in the calendar year and for an aggregate of at least 183 days during a three-year period ending in the current calendar year. Generally, for this purpose, all the days present in the current year, one-third of the days present in the immediately preceding year, and one-sixth of the days present in the second preceding year, are counted.

Resident aliens are generally subject to U.S. federal income tax as if they were U.S. citizens. Individuals who are uncertain of their status as resident or nonresident aliens for U.S. federal income tax purposes are urged to consult their own tax advisors regarding the U.S. federal income tax consequences of the ownership or disposition of our common stock.

**Distributions** 

We do not expect to make any distributions on our common stock in the foreseeable future (see "Dividend Policy" above). If we do make distributions on our common stock, however, such distributions will constitute dividends for U.S. tax purposes to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Distributions in excess of our current and accumulated earnings and profits will constitute a return of capital that is applied against and reduces, but not below zero, a Non-U.S. Holder's adjusted tax basis in our common stock. Any remaining excess will be treated as gain realized on the sale or exchange of our common stock as described below under the section titled "—Gain on disposition of our common stock."

Any distribution on our common stock that is treated as a dividend paid to a Non-U.S. Holder that is not effectively connected with the Non-U.S. Holder's conduct of a trade or business in the United

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States will generally be subject to U.S. federal withholding tax at a 30% rate or such lower rate as may be specified by an applicable income tax treaty between the United States and the Non-U.S. Holder's country of residence. To obtain a reduced rate of withholding under an income tax treaty, a Non-U.S. Holder generally will be required to provide the applicable withholding agent with a properly executed IRS Form W-8BEN, IRS Form W-8BEN-E or other appropriate form certifying the Non-U.S. Holder's entitlement to benefits under that treaty. Such form must be provided prior to the payment of dividends and generally must be updated periodically. If a Non-U.S. Holder holds stock through a financial institution or other agent acting on the holder's behalf, the holder will be required to provide appropriate documentation to such agent. The holder's agent may then be required to provide certification to the applicable withholding agent, either directly or through other intermediaries. If you are eligible for a reduced rate of U.S. withholding tax under an income tax treaty, you should consult with your own tax advisor to determine if you are able to obtain a refund of any excess amounts withheld by timely filing an appropriate claim for a refund with the IRS.

We generally are not required to withhold tax on dividends paid to a Non-U.S. Holder that are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment that the holder maintains in the United States) if a properly executed IRS Form W-8ECI, stating that the dividends are so connected, is furnished to the applicable withholding agent. In general, such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the same rates applicable to United States persons. A corporate Non-U.S. Holder receiving effectively connected dividends may also be subject to an additional "branch profits tax," which is imposed, under certain circumstances, at a rate of 30% (or such lower rate as may be specified by an applicable treaty) on the corporate Non-U.S. Holder's effectively connected earnings and profits, subject to certain adjustments.

See the section below titled "—Foreign accounts" for additional information on withholding rules that may apply to dividends paid to certain foreign financial institutions or non-financial entities.

**Gain on disposition of our common stock** 

Subject to the discussions below under the sections titled "—Backup withholding and information reporting" and "—Foreign accounts," a Non-U.S. Holder generally will not be subject to U.S. federal income or withholding tax with respect to gain realized on a sale or other disposition of our common stock unless (a) the gain is effectively connected with a trade or business of the Non-U.S. Holder in the United States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment that the holder maintains in the United States), (b) the Non-U.S. Holder is a nonresident alien who is an individual and is present in the United States for 183 or more days in the taxable year of the disposition and certain other conditions are met, or (c) we are or have been a "United States real property holding corporation" (USRPHC) within the meaning of Code Section 897(c)(2) at any time within the shorter of the five-year period preceding such disposition or the Non-U.S. Holder's holding period in the common stock.

If you are a Non-U.S. Holder described in clause (a) above, you will be required to pay tax on the net gain derived from the sale at the same U.S. federal income tax rates applicable to United States persons. Corporate Non-U.S. Holders described in clause (a) above may also be subject to the additional branch profits tax at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty) of their effectively connected earnings and profits for the taxable year, as adjusted for certain items. If you are an individual Non-U.S. Holder described in clause (b) above, you will be required to pay U.S. federal income tax at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty) on the gain derived from the sale, which gain may be offset by certain U.S.-source capital losses (even though you are not considered a resident of the United States),

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provided you have timely filed U.S. federal income tax returns with respect to such losses. With respect to clause (c) above, in general, we would be a USRPHC if U.S. real property interests as defined in the Code and the U.S. Treasury Regulations comprised (by fair market value) at least half of the sum of our worldwide real property interests plus our other assets used or held for use in a trade or business. We believe that we are not, and do not anticipate becoming, a USRPHC. However, there can be no assurance that we will not become a USRPHC in the future. Even if we were to be treated as a USRPHC, gain realized by a Non-U.S. Holder on a disposition of our common stock would not be subject to U.S. federal income tax so long as (1) the Non-U.S. Holder owned, directly, indirectly or constructively, no more than 5% of our common stock at all times within the shorter of (i) the five-year period preceding the disposition or (ii) the Non-U.S. Holder's holding period and (2) our common stock is "regularly traded" on an "established securities market," as defined by applicable U.S. Treasury Regulations. There can be no assurance that our common stock will qualify as regularly traded on an established securities market.

**U.S. federal estate tax** 

The estates of nonresident alien individuals generally are subject to U.S. federal estate tax on property with a U.S. situs. Because we are a U.S. corporation, our common stock will be U.S. situs property and, therefore, will be included in the taxable estate of a nonresident alien decedent, unless an applicable estate tax treaty between the United States and the decedent's country of residence provides otherwise. The terms "resident" and "nonresident" are defined differently for U.S. federal estate tax purposes than for U.S. federal income tax purposes. Investors are urged to consult their own tax advisors regarding the U.S. federal estate tax consequences of the ownership or disposition of our common stock.

**Backup withholding and information reporting** 

Generally, we or certain financial middlemen must report information to the IRS with respect to any dividends we pay on our common stock, including the amount of any such dividends, the name and address of the recipient, and the amount, if any, of tax withheld. A similar report is sent to the holder to whom any such dividends are paid. These information reporting requirements apply even if no withholding was required because the dividends were effectively connected with the holder's conduct of a U.S. trade or business, or withholding was reduced or eliminated by an applicable income tax treaty. Pursuant to tax treaties or certain other agreements, the IRS may make its reports available to tax authorities in the recipient's country of residence.

Dividends paid by us (or our paying agents) to a Non-U.S. Holder may also be subject to U.S. federal backup withholding, currently at a 24% rate. U.S. federal backup withholding generally will not apply to a Non-U.S. Holder who provides a properly executed IRS Form W-8BEN, IRS Form W-8BEN-E, or IRS Form W-8 ECI, as applicable, or otherwise establishes an exemption, *provided that* the applicable withholding agent does not have actual knowledge or reason to know the holder is a United States person.

Under current U.S. federal income tax law, U.S. information reporting and backup withholding requirements generally will apply to the proceeds of a disposition of our common stock effected by or through a U.S. broker or a U.S. office of any broker, U.S. or non-U.S., unless the Non-U.S. Holder provides a properly executed IRS Form W-8BEN or IRS Form W-8BEN-E, or IRS Form W-8 ECI, as applicable, or otherwise establishes an exemption. Generally, U.S. information reporting and backup withholding requirements will not apply to a payment of disposition proceeds to a Non-U.S. Holder where the transaction is effected outside the United States through a non-U.S. office of a non-U.S. broker. Information reporting and backup withholding requirements may, however, apply to a payment of disposition proceeds if the broker has actual knowledge, or reason to know, that the holder is, in

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fact, a United States person. For information reporting purposes, certain brokers with substantial U.S. ownership or operations will generally be treated in a manner similar to U.S. brokers.

Backup withholding is not an additional tax. If backup withholding is applied to you, you should consult with your own tax advisor to determine whether you have overpaid your U.S. federal income tax, and whether you are able to obtain a tax refund or credit of the overpaid amount.

**Foreign accounts** 

In addition, U.S. federal withholding taxes may apply under the Foreign Account Tax Compliance Act, or FATCA, on certain types of payments, including dividends paid to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on dividends on our common stock paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), unless (1) the foreign financial institution agrees to undertake certain diligence and reporting obligations, (2) the non-financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. The 30% federal withholding tax described in this paragraph cannot be reduced under an income tax treaty with the United States. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in clause (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain "specified United States persons" or "United States owned foreign entities" (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. Under the applicable U.S. Treasury Regulations and administrative guidance, withholding under FATCA generally also would apply to payments of gross proceeds from the sale or other disposition of common stock. Under proposed U.S. Treasury Regulations, however, no withholding will apply with respect to payments of gross proceeds. The preamble to the proposed regulations specifies that taxpayers are permitted to rely on such proposed regulations pending finalization.

Prospective investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our common stock.

EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN TAX ADVISOR REGARDING THE TAX CONSEQUENCES OF PURCHASING, HOLDING AND DISPOSING OF OUR COMMON STOCK, INCLUDING THE CONSEQUENCES OF ANY PROPOSED CHANGE IN APPLICABLE LAW, AS WELL AS TAX CONSEQUENCES ARISING UNDER ANY STATE, LOCAL, NON-U.S. OR U.S. FEDERAL NON-INCOME TAX LAWS SUCH AS ESTATE AND GIFT TAX OR UNDER ANY APPLICABLE TAX TREATY.

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**UNDERWRITING** 

We and the underwriters named below have entered into an underwriting agreement with respect to the shares being offered. Subject to certain conditions, each underwriter has severally agreed to purchase the number of shares indicated in the following table. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Leerink Partners LLC are the representatives of the underwriters.

---

| | |
|:---|:---|
| **Underwriters** | **Number of Shares** |
|  Goldman Sachs & Co. LLC |  |
|  J.P. Morgan Securities LLC |  |
|  Leerink Partners LLC |  |
|  Total |  |

---

The underwriters are committed to take and pay for all of the shares being offered, if any are taken, other than the shares covered by the option described below unless and until this option is exercised.

The underwriters have an option to buy up to an additional shares from us to cover sales by the underwriters of a greater number of shares than the total number set forth in the table above. They may exercise that option for 30 days after the date of this prospectus. If any shares are purchased pursuant to this option, the underwriters will severally purchase shares in approximately the same proportion as set forth in the table above.

The following table shows the per share and total underwriting discounts and commissions to be paid to the underwriters by us. Such amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional shares.

---

| | | |
|:---|:---|:---|
|  | **No Exercise** | **Full Exercise** |
|  Per Share | $| $|
|  Total |  | $|

---

We estimate that the total expenses of the offering, excluding underwriting discounts and commissions, will be approximately $. We have agreed to reimburse the underwriters for certain of their expenses in an amount up to $.

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act.

Shares sold by the underwriters to the public will initially be offered at the initial public offering price set forth on the cover of this prospectus. Any shares sold by the underwriters to securities dealers may be sold at a discount of up to $ per share from the initial public offering price. After the initial offering of the shares, the representatives may change the offering price and the other selling terms. The offering of the shares by the underwriters is subject to receipt and acceptance and subject to the underwriters' right to reject any order in whole or in part.

We and our officers, directors and holders of substantially all of our common stock and securities convertible into or exchangeable for our common stock have agreed with the underwriters, subject to certain exceptions, not to dispose of or hedge any of their shares of common stock or securities convertible into or exchangeable for our common stock during the period from the date of this prospectus continuing through and including the date 180 days after the date of this prospectus, except with the prior written consent of Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Leerink Partners LLC. See "Shares Eligible for Future Sale" for a discussion of certain transfer restrictions.

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Prior to the offering, there has been no public market for the shares. The initial public offering price has been negotiated among us and the representatives. Among the factors to be considered in determining the initial public offering price of the shares, in addition to prevailing market conditions, will be our historical performance, estimates of our business potential and earnings prospects, an assessment of our management and the consideration of the above factors in relation to market valuation of companies in related businesses.

We intend to list our common stock on the Nasdaq under the symbol "SCRB."

The underwriters may also impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the representatives have repurchased shares sold by or for the account of such underwriter in stabilizing or short covering transactions.

Purchases to cover a short position and stabilizing transactions, as well as other purchases by the underwriters for their own accounts, may have the effect of preventing or retarding a decline in the market price of our stock, and together with the imposition of the penalty bid, may stabilize, maintain or otherwise affect the market price of the common stock. As a result, the price of the common stock may be higher than the price that otherwise might exist in the open market. The underwriters are not required to engage in these activities and may end any of these activities at any time. These transactions may be effected on the Nasdaq, in the over-the-counter market or otherwise.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non-financial activities and services. Certain of the underwriters and their respective affiliates have provided, and may in the future provide, a variety of these services to us and to persons and entities with relationships with us, for which they received or will receive customary fees and expenses.

In the ordinary course of their various business activities, the underwriters and their respective affiliates, officers, directors and employees may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans, commodities, currencies, credit default swaps and

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other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of ours (directly, as collateral securing other obligations or otherwise) and/or persons and entities with relationships with us. The underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and instruments.

*Notice to prospective investors in the European Economic Area* 

In relation to each Member State of the European Economic Area (each, a "Relevant Member State"), an offer to the public of any shares of common stock may not be made in that Relevant Member State, except that an offer of shares of common stock to the public in that Relevant Member State may be made at any time under the following exemptions under the EU Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a "qualified investor" as defined under the EU Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than "qualified investors" as defined under the EU
Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within Article 1(4) of the EU Prospectus Regulation,

provided that no such offer of shares of common stock shall require us or any representative to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation and each person who initially acquires any shares of common stock or to whom any offer is made will be deemed to have represented, warranted and agreed to and with each of the representatives and us that it is a qualified investor within the meaning of Article 2 of the EU Prospectus Regulation.

In the case of any shares of common stock being offered to a financial intermediary as that term is used in Article 1(4) of the EU Prospectus Regulation, each financial intermediary will also be deemed to have represented, warranted and agreed that the shares acquired by it in the offer have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of any shares to the public, other than their offer or resale in a Relevant Member State to qualified investors as so defined or in circumstances in which the prior consent of the representatives has been obtained to each such proposed offer or resale.

We, the representatives and their affiliates will rely upon the truth and accuracy of the foregoing representations, warranties and agreements. Notwithstanding the above, a person who is not a "qualified investor" and who has notified the representatives of such fact in writing may, with the prior consent of the Notwithstanding the above, a person who is not a "qualified investor" and who has notified the representatives of such fact in writing may, with the prior consent of the representatives, be permitted to acquire shares of common stock in the offer.

For the purposes of this provision, the expression an "offer to the public" in relation to any shares of common stock in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares of common stock to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "EU Prospectus Regulation" means Regulation (EU) 2017/1129.

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*Notice to prospective investors in the United Kingdom* 

An offer to the public of any shares of common stock may not be made in the United Kingdom, except that an offer to the public in the United Kingdom of any shares may be made at any time under the following exemptions under the UK Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a "qualified investor" as defined under the UK Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than "qualified investors" as defined under the UK
Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within section 86 of the Financial Services and Markets Act 2000 (as amended,
"FSMA"),

provided that no such offer of shares of common stock shall result in a requirement for the us or any representative to publish a prospectus pursuant to section 85 of the FSMA or a supplemental prospectus pursuant to Article 23 of the UK Prospectus Regulation and each person who initially acquires any shares or to whom any offer is made will be deemed to have represented, warranted and agreed to and with each of the representatives and us that it is a qualified investor within the meaning of Article 2 of the UK Prospectus Regulation.

In the case of any shares of common stock being offered to a financial intermediary as that term is used in Article 1(4) of the UK Prospectus Regulation, each financial intermediary will also be deemed to have represented, warranted and agreed that the shares acquired by it in the offer have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of any shares to the public, other than their offer or resale in the United Kingdom to qualified investors as so defined or in circumstances in which the prior consent of the representatives has been obtained to each such proposed offer or resale.

We, the representatives and their affiliates will rely upon the truth and accuracy of the foregoing representations, warranties and agreements. Notwithstanding the above, a person who is not a "qualified investor" and who has notified the representatives of such fact in writing may, with the prior consent of the representatives, be permitted to acquire shares of common stock in the offer.

For the purposes of this provision, the expression an "offer to the public" in relation to any shares of common stock in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares.

This Prospectus is only being distributed to and is only directed at: (A) persons who are outside the United Kingdom; or (B) qualified investors who are also (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), or (ii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons falling within (1)-(3) together being referred to as "relevant persons"). The shares of common stock are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the shares will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this Prospectus or any of its contents.

*Notice to prospective investors in Canada* 

The shares of common stock may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106

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Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the shares of common stock must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

*Notice to prospective investors in Hong Kong* 

The shares of common stock may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) ("Companies (Winding Up and Miscellaneous Provisions) Ordinance") or which do not constitute an invitation to the public within the meaning of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) ("Securities and Futures Ordinance"), or (ii) to "professional investors" as defined in the Securities and Futures Ordinance and any rules made thereunder, or (iii) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance, and no advertisement, invitation or document relating to the shares of common stock may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares of common stock which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" in Hong Kong as defined in the Securities and Futures Ordinance and any rules made thereunder.

*Notice to prospective investors in Singapore* 

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the shares of common stock may not be circulated or distributed, nor may the shares of common stock be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore, or the SFA) under Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where the shares of common stock are subscribed or purchased under Section 275 of the SFA by a relevant person which is a corporation (which is not an accredited investor (as defined in

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Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section 239(1) of the SFA) of that corporation shall not be transferable for 6 months after that corporation has acquired the shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer in that corporation's securities pursuant to Section 275(1A) of the SFA, (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore ("Regulation 32").

Where the shares of common stock are subscribed or purchased under Section 275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor (as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable for 6 months after that trust has acquired the shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of securities or other assets), (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in Regulation 32.

*Notice to prospective investors in Japan* 

The shares of common stock have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended), or the FIEA. The shares of common stock may not be offered or sold, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (including any person resident in Japan or any corporation or other entity organized under the laws of Japan) or to others for reoffering or resale, directly or indirectly, in Japan or to or for the benefit of any resident of Japan, except pursuant to an exemption from the registration requirements of the FIEA and otherwise in compliance with any relevant laws and regulations of Japan.

*Notice to prospective investors in Brazil* 

The offer and sale of the securities have not been and will not be registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários, or "CdVM") and, therefore, will not be carried out by any means that would constitute a public offering in Brazil under CdVM resolution No. 160, dated 13 July 2022, as amended ("CdVM Resolution 160") or unauthorized distribution under Brazilian laws and regulations. The securities may only be offered to Brazilian professional investors (as defined by applicable CdVM regulation), who may only acquire the securities through a non-Brazilian account, with settlement outside Brazil in non-Brazilian currency. the trading of these securities on regulated securities markets in Brazil is prohibited.

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**LEGAL MATTERS** 

The validity of the shares of our common stock offered by this prospectus will be passed upon for us by Fenwick & West LLP, Seattle, Washington. Latham & Watkins LLP is acting as counsel for the underwriters in connection with this offering.

**EXPERTS** 

The financial statements of Scribe Therapeutics Inc. as of December 31, 2024, and for the year then ended, included in this prospectus have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report. Such financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 (File Number 333-) under the Securities Act with respect to the shares of our common stock offered hereby. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits filed therewith. For further information about us and the common stock offered hereby, reference is made to the registration statement and the exhibits filed therewith. Statements contained in this prospectus concerning the contents of any contract or any document are not necessarily complete. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The exhibits to the registration statement should be reviewed for the complete contents of these contracts and documents.

We currently do not file periodic reports with the SEC. Upon the completion of this offering, we will be required to file periodic reports, proxy statements and other information with the SEC pursuant to the Exchange Act. The SEC maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the website is www.sec.gov.

We also maintain a website at https://www.scribetx.com. Upon completion of this offering, you may access these materials at our website free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. The information contained on, or that can be accessed through, our website is not part of, and is not incorporated into, this prospectus. We have included our website in this prospectus solely as a textual reference.

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**SCRIBE THERAPEUTICS INC.** 

**INDEX TO FINANCIAL STATEMENTS** 

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| | |
|:---|:---|
| **Year Ended December 31, 2024** | **Page** |
|  [Report of Independent Registered Public Accounting Firm](#fin21355_1) | F-2 |
|  **Financial Statements** |  |
|  [Balance Sheet](#fin21355_2) | F-3 |
|  [Statement of Operations and Comprehensive Loss](#fin21355_3) | F-4 |
|  [Statement of Redeemable Convertible Preferred Stock and Stockholders' Deficit](#fin21355_4) | F-5 |
|  [Statement of Cash Flows](#fin21355_5) | F-6 |
|  [Notes to Financial Statements](#fin21355_6) | F-7 |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Stockholders and the Board of Directors of Scribe Therapeutics, Inc.

***Opinion on the Financial Statements***

We have audited the accompanying balance sheet of Scribe Therapeutics, Inc. (the "Company") as of December 31, 2024, the related statements of operations and comprehensive loss, redeemable convertible preferred stock and stockholders' deficit, and cash flows, for the year ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte and Touche LLP

San Francisco, California

July 22, 2025 (January 9, 2026 for Note 14 to the financial statements)

We have served as the Company's auditor since 2020.

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**SCRIBE THERAPEUTICS INC.** 

**BALANCE SHEET** 

**(In thousands, except share and per share amounts)** 

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| | |
|:---|:---|
|  | **December 31,<br>2024** |
|  **Assets** |  |
|  Current Assets: |  |
|  Cash and cash equivalents | $12602 |
|  Short-term investments | 92569 |
|  Receivable from collaboration partner | 3117 |
|  Prepaid expenses and other current assets | 2086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 110374 |
|  Operating lease right-of-use asset | 3549 |
|  Property and equipment, net | 9628 |
|  Restricted cash | 675 |
|  Other long-term assets | 3745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 127971 |
|  **Liabilities, redeemable convertible preferred stock, and stockholders' deficit** |  |
|  Current liabilities: |  |
|  Accounts payable | $3790 |
|  Accrued expenses and other current liabilities | 5956 |
|  Accrued license fees | 750 |
|  Deferred revenue, current | 23407 |
|  Operating lease liabilities, current portion | 1116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities** | 35019 |
|  Operating lease liabilities, net of current portion | 6088 |
|  Convertible note | 34473 |
|  Other non-current liabilities | 8882 |
|  Deferred revenue, non-current | 49012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | 133474 |
|  **Commitments and contingencies (Note 8)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redeemable convertible preferred stock, $0.001 par value; 29,182,118 shares authorized and 29,107,492 shares issued and outstanding as of December 31, 2024; liquidation preference of $120,705 as of December 31, 2024 | 120356 |
|  Stockholders' deficit |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, $0.001 par value, 52,000,000 shares authorized as of and 14,316,051 shares issued and outstanding as of December 31, 2024 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 9954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (135899) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive (loss) income | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' deficit | (125859) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities, redeemable convertible preferred stock, and stockholders' deficit | $127971 |

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**SCRIBE THERAPEUTICS INC.** 

**STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS** 

**(In thousands, except share and per share amounts)** 

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| | |
|:---|:---|
|  | **Year ending<br>December 31,<br>2024** |
|  Collaboration revenue | $27413 |
|  Operating expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development | 57079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 13163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 70242 |
|  Loss from operations | (42829) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income and other income, net | 6154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (2381) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of convertible note | 1495 |
|  Net loss before provision for income taxes | (37561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | (10225) |
|  Net loss | $(47786) |
|  Other comprehensive income: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gain on available-for-sale investments | 6 |
|  Net comprehensive loss | $(47780) |
|  Net loss per share attributable to common stockholders, basic and diluted | $(3.37) |
|  Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 14188501 |

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**SCRIBE THERAPEUTICS INC.** 

**STATEMENT OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT** 

**(In thousands, except share amounts)** 

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Redeemable Convertible** | **Redeemable Convertible** | **Common Stock** | **Common Stock** | | **Accumulated<br>Other<br>Comprehensive**<br>**(Loss) Income** | **Accumulated**<br>**Deficit** | |
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | **Accumulated<br>Other<br>Comprehensive**<br>**(Loss) Income** | **Accumulated**<br>**Deficit** | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** | **Accumulated<br>Other<br>Comprehensive**<br>**(Loss) Income** | **Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Deficit** |
|  **Balance at December 31, 2023** | 29107492 | $120356 | 14063016 | $14 | $6637 | $66 | $(88113) | $(81396) |
|  Issuance of common stock upon exercise of stock options |  |  | 253035 |  | 468 |  |  | 468 |
|  Stock-based compensation expense |  |  |  |  | 2849 |  |  | 2849 |
|  Net loss |  |  |  |  |  |  | (47786) | (47786) |
|  Net unrealized gain on available-for-sale investments |  |  |  |  |  | 6 |  | 6 |
|  **Balance at December 31, 2024** | 29107492 | $120356 | 14316051 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14 | $9954 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72 | $(135899) | $(125859) |

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**SCRIBE THERAPEUTICS INC.** 

**STATEMENT OF CASH FLOWS** 

**(In thousands)** 

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| | |
|:---|:---|
|  | **Year Ending<br>December 31,<br>2024** |
|  **Cash flows from operating activities** |  |
|  Net loss | $(47786) |
|  Adjustments to reconcile net loss to net cash used in operating activities |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation expense | 2889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of equipment | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 2849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 2381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of convertible note | (1495) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amortization on investment securities | 631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash rent expense | 394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables from collaboration partner | (1466) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | (439) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other long-term assets | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (1916) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | (6777) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued license fees | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued payroll and other liabilities | (2025) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | (966) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current liabilities | 8882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in operating activities | (45235) |
|  **Cash flows from investing activities** |  |
|  Purchases of property and equipment | (1349) |
|  Maturities of investments | 138408 |
|  Purchases of investments | (124046) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by investing activities | 13013 |
|  **Cash flows from financing activities** |  |
|  Proceeds from exercise of stock options | 468 |
|  Payments of deferred offering costs | (690) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | (222) |
|  Net change in cash, cash equivalents and restricted cash | (32444) |
|  Cash, cash equivalents and restricted cash, at the beginning of the period | 45721 |
|  Cash, cash equivalents and restricted cash, at the end of the period | $13277 |
|  **Supplemental disclosure of non-cash investing and financing activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unpaid fixed asset acquisitions | $836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes | $1977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred offering costs related to initial public offering included in accounts payable and accrued expenses and other current liabilities | $481 |

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**SCRIBE THERAPEUTICS INC.** 

**NOTES TO FINANCIAL STATEMENTS** 

**1. Business Organization and Liquidity** 

Scribe Therapeutics Inc. (the "Company") is a biotechnology company focused on the discovery, engineering, delivery, and development of next-generation molecules that rewrite and repair the underlying causes of diseases using gene editing technology. The Company was incorporated in the state of Delaware in June 2017. Its principal offices are in Alameda, California.

***Liquidity and Capital Resources***

The Company has incurred operating losses since inception including losses of $47.8 million for the year ended December 31, 2024. As of December 31, 2024, the Company had an accumulated deficit of $135.9 million. The Company has to date funded its operations primarily from the sale and issuance of redeemable convertible preferred stock and funds received under license and collaboration agreements with pharmaceutical companies. The Company expects to continue to incur substantial losses, and its transition to profitability will depend on the successful development, approval, and commercialization of product candidates and on the achievement of sufficient revenues to support its cost structure. The Company may never achieve profitability, and until then, the Company will need to continue to raise additional capital. The Company expects that its cash, cash equivalents and available-for-sale investments as of December 31, 2024 will be sufficient to fund operations and meet its obligations as they come due within one year from the date these financial statements are issued.

**2. Summary of significant accounting policies** 

***Basis of Preparation***

The accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles ("GAAP") and have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. Since inception, the Company has not generated any product revenue and its operations have primarily consisted of establishing its facilities, recruiting personnel, conducting research and development activities, and raising capital to support and expand its business. The Company has generated collaboration revenue under its collaboration and license agreements.

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. On an ongoing basis, the Company evaluates estimates and assumptions, including but not limited to those related to revenue recognition, lease liabilities, fair value of redeemable convertible preferred stock and common stock, stock-based compensation expense, accruals for research and development costs, the valuations of deferred tax assets, the fair value of convertible note payable and uncertain income tax positions. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from those estimates.

***Concentration of Credit Risk***

Cash, cash equivalents and available-for-sale investments are financial instruments that potentially subject the Company to concentrations of credit risk for the amounts in excess of insurance

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provided on such deposits. Substantially all of the Company's cash and cash equivalents are deposited in accounts with major financial institutions and amounts may exceed federally insured limits. The Company is closely monitoring ongoing events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry or the financial services industry generally. During the periods presented, the Company has not experienced any losses on its deposits of cash, cash equivalents or available-for-sale investments.

The Company recognized revenue from collaboration partners in the year ending December 31, 2024 with all revenue generated within the United States. The percentages of collaboration revenue and accounts receivable from each of the Company's customers that individually accounted for 10% of more of its total collaboration revenue and accounts receivable were as follows:

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| | | |
|:---|:---|:---|
|  | **Accounts Receivable<br>As of December 31,<br>2024** | **Collaboration Revenue<br>Year Ended December 31,<br>2024** |
|  Partner A | 93% | 63% |
|  Partner B | \*% | 37% |
|  Partner C | \*% | \*% |

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*\** *the customer did not account for 10% or more of accounts receivable or collaboration revenue* 

As of December 31, 2024, the Company reported no contract assets. The Company routinely assesses its accounts receivable and contract assets for potential impairment and credit losses. As of December 31, 2024, no impairment or credit loss allowance was recorded.

***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, completion of preclinical studies, clinical trials, obtaining regulatory approval for product candidates, competition from pharmaceutical companies with greater financial resources or expertise; development by competitors of new technologies, market acceptance of products, protection of the intellectual property; litigation or claims against the Company based on intellectual property or other factors, its ability to attract and retain employees necessary to support its growth, reliance on third party organizations and supplies compliance with government regulations, and ability to secure additional capital to fund operations. Programs currently moving into development will require significant additional research and development efforts, including preclinical and clinical testing, and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel, infrastructure, and extensive compliance-reporting capabilities. Even if the Company's product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales.

The Company's future products require approval from the U.S. Food and Drug Administration and may require approval from certain international regulatory agencies prior to commencing commercial sales. There can be no assurance that the Company's future products will receive any of these required approvals.

The Company is currently operating in a period of economic uncertainty and capital markets disruption, which has been impacted by domestic and global monetary and fiscal policy, geopolitical instability, including an ongoing military conflict between Russia and Ukraine and the rising tensions between China and Taiwan, a recessionary environment, tariff and trade disputes as well as historically high domestic and global inflation. In particular, the conflict in Ukraine has exacerbated market disruptions, including significant volatility in commodity prices, as well as supply chain interruptions, and has contributed to record inflation globally. The U.S. Federal Reserve and other central banks may

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be unable to contain inflation through more restrictive monetary policy, and inflation may increase or continue for a prolonged period of time. Inflationary factors, such as increases in the cost of clinical supplies, interest rates, overhead costs, and transportation costs may adversely affect the Company's operating results. The Company continues to monitor these events and the potential impact on its business. Although the Company does not believe that inflation has had a material impact on its financial position or operations to date, it may be adversely affected in the future due to domestic and global monetary and fiscal policy, supply chain constraints, consequences associated with the ongoing conflict between Russia and Ukraine, and other factors, and such factors may lead to increases in the cost of manufacturing for and initiation of studies in the Company's product candidates.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The extent to which the increasing financial market volatility and uncertainty may directly or indirectly impact the Company's financial statements is highly uncertain and subject to change. Management considered the potential impact of the ongoing conflict between Russia and Ukraine on its estimates and assumptions and there was not a material impact to the Company's financial statements as of and for the year ended December 31, 2024; however, actual results could differ from those estimates and there may be changes to management's estimates in future periods.

***Deferred offering costs***

The Company capitalizes within other long-term assets certain legal, accounting and other third party fees that are directly related to the Company's in-process equity financings, including the planned initial public offering ("IPO"), until such financings are consummated. After consummation of an equity financing, these costs are recorded as a reduction of the carrying value of redeemable convertible preferred stock or, for issuances of common stock, in stockholder's deficit as a reduction of additional paid-in capital generated as a result of the offering. Should a planned equity financing be abandoned, terminated or significantly delayed, the deferred offering costs are immediately written off to operating expenses. Deferred offering costs capitalized as of December 31, 2024 were $3.6 million.

***Revenue Recognition***

The Company's revenues are primarily derived from collaboration revenue. The terms of these types of agreements may include (i) licenses for the Company's technology, (ii) research and development services, and (iii) services or obligations in connection with the Company's participation in research or governance committees. Payments to the Company under these arrangements typically include one or more of the following: nonrefundable upfront license fees, milestones, and other contingent payments to the Company for the achievement of defined collaboration objectives and certain preclinical, clinical, regulatory, and sales-based events, as well as royalties on sales of any commercialized products.

The Company analyzes collaboration arrangements to assess whether they are within the scope of Accounting Standards Codification (ASC) Topic 808, *Collaborative Arrangements* (ASC 808), to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and those that are more reflective of a vendor-customer relationship and, therefore, within the scope of

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ASC Topic 606, *Revenue from Contracts with Customers* (ASC 606). For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606.

The Company assesses whether the promises in its arrangements with customers are considered distinct performance obligations that should be accounted for separately. Judgment is required to determine whether a license to the Company's intellectual property is distinct from research and development services or participation on research or governance committees.

For elements of those arrangements that the Company determines should be accounted for under ASC 606, the Company assesses which promises in the collaboration agreements are performance obligations that should be accounted for separately and determine the transaction price of the arrangement, which includes the assessment of the probability of achievement of future milestones and other potential consideration. A performance obligation represents a promise in a contract to transfer a distinct good or service to a customer, which is distinct from other promises in a contract. A promise is considered distinct from other promises in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identifiable in the contract.

The total consideration which the Company expects to collect in exchange for the Company's products is an estimate as it typically consists of a fixed consideration and variable consideration. The Company constrains the estimated variable consideration when it assesses it is not probable that a significant reversal in the amount of cumulative revenue recognized may not occur in future periods. The transaction price is re-evaluated, including the estimated variable consideration included in the transaction price and all constrained amounts, in each reporting period and as uncertainties are resolved or other changes in circumstances occur. The allocation of the transaction price is performed based on relative standalone selling prices (SSP) of each distinct performance obligation, which requires judgement. In instances where SSP is not directly observable, such as when a license or service is not sold separately, SSP is determined using information that may include market conditions and observable inputs. Milestone payments that are not within the control of the Company or the licensee such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The Company recognizes sales-based milestones or sales-based royalties at the later of when the associated performance obligation has been satisfied or when the sales occur. Unlike other contingency payments, such as regulatory milestones, sales-based milestones are not included in the transaction price based on estimates at the inception of the contract; instead, they are included when the sales or usage occur.

From time to time, the Company may enter into amendments to its existing collaboration agreements. When such a modification occurs, the Company analyzes the amendment to determine the appropriate accounting treatment under ASC 606. A modification is accounted for as a separate contract when two criteria are met: (i) the modification adds promised goods or services that are distinct from the existing contract; and (ii) the price of the contract increases by an amount of consideration that reflects the Company's standalone selling price of the additional promised goods or services. For modifications that are not accounted for as a separate contract, the accounting treatment is dependent on whether the remaining goods or services are distinct from those transferred prior to the modification. If the remaining goods or services are distinct, the modification is accounted for prospectively, as if the existing contract were terminated and a new contract were created. If the remaining goods or services are not distinct and are, therefore, part of a single performance obligation that is only partially satisfied, the modification is accounted for as part of the original contract, resulting in a cumulative catch-up adjustment to revenue at the date of the modification.

The Company recognizes revenue when the Company's customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in

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exchange for those goods and services. The Company recognizes a contract asset when the Company transfers goods or services to a customer before the customer pays consideration or before payment is due, excluding any amounts presented as a receivable from a collaboration partner.

***Contract Liabilities***

A contract liability is an obligation to transfer goods or services for which the Company has received consideration. Contract liabilities include current and non-current deferred revenue balances. Deferred revenue consists of amounts billed to customers but not yet recognized in revenue. The current portion of deferred revenue represents the amount that is expected to be recognized as revenue within one year from the balance sheet date.

***Cash and Cash Equivalents***

The Company considers all highly liquid investments purchased with original maturities of 90 days or less at acquisition to be cash equivalents. Cash and cash equivalents include cash held in checking and savings accounts in the bank, short-term investments with an original maturity date of 90 days or less at acquisition date, repurchase agreements and amounts held in money market funds.

Restricted cash of $0.7 million as of December 31, 2024, represents a security deposit in the form of a letter of credit issued in connection with the lease of the Company's headquarters (Note 8).

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets to the same amounts shown in the statements of cash flows (in thousands):

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|:---|:---|
|  | **December 31,<br>2024** |
|  Cash and cash equivalents | $12602 |
|  Restricted cash | 675 |
|  Total cash, cash equivalents and restricted cash | $13277 |

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***Investments***

Investments are classified at the time of purchase, based on management's intent, as held-to-maturity, available-for-sale, or trading. All of the Company's marketable security investments are classified as available-for-sale securities and are reported at fair market value using quoted prices in active markets for similar securities. Investments with original maturities of less than three months at the date of purchase are classified as cash and cash equivalents. Investments with original maturities beyond three months at the date of purchase and which mature at, or less than twelve months from the balance sheet date are classified as short-term investments. The cost of securities sold is determined on a specific identification basis, and realized gains and losses are included as a component of other income within the statements of operations and comprehensive loss.

The Company periodically evaluates available-for-sale investments with unrealized losses for other-than-temporary impairment considering qualitative and quantitative evidence, general market conditions, the duration of the investment and the extent to which fair value is less than cost, the Company's ability to hold the investments to maturity and in consultation with the Company's investment manager. The Company assesses its available-for-sale securities as of each reporting date in order to determine if a portion of any decline in fair value below carrying value is the result of a credit loss for its available-for-sale securities. The Company records credit losses for its available-for-sale securities in the statements of operations and comprehensive loss as credit loss expense, which is

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limited to the difference between the fair value and the amortized cost of the security. To date, the Company has not recorded any credit losses on its available-for-sale securities. Declines in fair value below carrying value attributable to non-credit-related factors are recorded as a component of other comprehensive income (loss).

If a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to interest and other income, net in the statement of operations and comprehensive loss. During the year ended December 31, 2024, the Company did not record any impairment related to other-than-temporary declines in the fair value of its available-for-sale investments.

***Fair Value Measurements***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The carrying amounts of financial instruments, including restricted cash, prepaid expenses and other current assets, accounts payable, accrued compensation and accrued expenses, approximate fair value due to their short-term maturities. The cash invested in money-market funds is carried at fair value.

***Property and Equipment, Net***

Property and equipment are recorded at cost, less accumulated depreciation, and amortization. Depreciation is computed using the straight-line method over the estimated useful life of each asset as follows:

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| | |
|:---|:---|
|  | **Useful life (years)** |
|  Laboratory equipment | 5 |
|  Leasehold improvements | Lesser of useful life or lease term |
|  Furniture and office | 5 |
|  Computer equipment | 3 |

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Construction-in-process assets consist of laboratory or office equipment and tenant improvements that have not yet been placed in service. Repair and maintenance expenditures, which are not considered improvements and do not extend the useful life of property and equipment, are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in the statements of operations and comprehensive loss in the period realized.

***Impairment of Long-Lived Assets***

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount to the future undiscounted net cash flows that the assets are expected to generate or appraised value. The amount of impairment loss, if any, is measured as the difference between the carrying value of the asset and its estimated fair value.

Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. There have been no such impairments of long-lived assets in the year ended December 31, 2024.

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***Leases***

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on specific facts and circumstances, the existence of an identified asset(s), if any, and the Company's control over the use of the identified asset(s), if applicable. If an arrangement is determined to be or contain a lease, the lease is assessed for classification as either an operating or finance lease at the lease commencement date, defined as the date on which the leased asset is made available for use by the Company, based on the economic characteristics of the lease. The lease liability is measured at the present value of future lease payments, discounted using the discount rate as of the lease commencement date. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the rate incurred to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The Company recognizes a corresponding lease right-of-use ("ROU") asset, initially measured as the amount of lease liability, adjusted for any initial lease costs or lease payments made before or at the commencement of the lease, and reduced by any lease incentives.

The Company's leases consist of only operating leases. Operating leases are recognized on the balance sheet as ROU lease assets, operating lease liabilities current and operating lease liabilities non-current. Fixed payments are included in the calculation of the lease balances while variable costs, such as certain operating and pass-through costs, are excluded. Lease expense is recognized over the expected term on a straight-line basis.

***Convertible Note Payable***

On May 11, 2023, the Company issued a convertible note ("Lilly Note") to Eli Lilly and Company (Note 6) with the principal amount of $30.0 million. The Lilly Note has a stated interest rate of 8% and matures on May 11, 2026, unless it is previously converted into equity shares. The Company elected to account for the Lilly Note at fair value with any changes in fair value being recognized through the statement of operations and comprehensive loss.

***Research and Development Expenses, Including Accrued and Prepaid Expenses***

Research and development costs are expensed as incurred. Research and development expenses include certain payroll and personnel expenses; laboratory supplies; consulting costs; external clinical research and development expenses; and allocated overhead, including rent, equipment depreciation, and utilities.

The Company accrues for estimated costs of research and development activities conducted by third-party service providers. The Company records the estimated costs of research and development activities based upon the estimated services provided and includes these costs in accrued liabilities in the balance sheets and within research and development expenses in the statements of operations and comprehensive loss. These costs are a significant component of the Company's research and development expenses. The Company accrues these costs based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service providers. The Company estimates the amount of work completed by its third-party service providers through discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fee to be paid for such services. In the event the Company makes advance payments for goods or services that will be used or rendered for future research and development activities, the payments are deferred and capitalized as a prepaid expense and recognized as expense as the goods are received or the related services are rendered. Such payments are evaluated for current or long-term classification based on when they are expected to be realized.

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Upfront payments and milestone payments made under in-license agreements are expensed to research and development as incurred, provided the licensed technology has no alternative future use beyond the specific research and development project for which it was acquired. The Company recognizes the obligation for milestone payments when the related milestone event is achieved, or if it is probable that the milestone will be achieved and the associated payment becomes due and estimable, consistent with the terms of the underlying agreement. Such costs are generally recognized as a component of research and development expense in the statement of operations.

The Company makes significant judgments and estimates in determining the accrued balance in each reporting period based on the facts and circumstances known at that time. As actual costs become known, the Company adjusts its accrued estimates.

***Redeemable Convertible Preferred Stock***

The Company records redeemable convertible preferred stock at fair value on the dates of issuance, net of issuance costs. The redeemable convertible preferred stock is recorded outside of stockholders' deficit because the redeemable convertible preferred stock contains liquidation features outside of the Company's control. The Company has elected not to adjust the carrying values of the redeemable convertible preferred stock to the liquidation preferences of such shares because it is not probable that a liquidation event would occur that would obligate the Company to pay the liquidation preferences to holders of shares of redeemable convertible preferred stock. Subsequent adjustments to the carrying values to the liquidation preferences will be made only when it becomes probable that such liquidation event will occur.

***Stock-Based Compensation Expense***

Stock-based compensation expense related to awards to employees and non-employees is measured at the grant date based on the fair value of the award. Stock-based compensation awards are subject to either service or performance based vesting conditions. The fair value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service period of the awards with service based vesting conditions, which is generally the vesting period, and is adjusted for pre-vesting forfeitures in the period in which the forfeitures occur. For performance based awards, the Company recognizes compensation based on the grant date fair value over the service period using the accelerated attribution method to the extent that achievement of the performance condition is probable.

The Company uses the Black-Scholes-Merton ("Black-Scholes") option-pricing model as the method for determining the estimated fair value of stock-based awards. The Black-Scholes model considers several variables and assumptions that require judgment in estimating the fair value of each stock option. Changes in these variables and assumptions can materially affect the resulting estimates of fair value. These variables and assumptions include the per unit fair value of the underlying common units, expected term, expected volatility, risk-free interest rate, and expected dividend rate as follows:

*Fair Value of Common Stock* - The fair value of the Company's common stock is determined by the Board of Directors with assistance from external valuation experts. The Company's approach to estimate the fair value of the Company's common stock is consistent with the methods outlined in the American Institute of Certified Public Accountants' Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation.

*Expected term* - The expected term represents the period that the stock-based awards are expected to be outstanding. The expected term for the Company's stock options was calculated based on the weighted-average vesting term of the awards and the contract period, or the simplified method.

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*Expected volatility* - The expected volatility is estimated based on the historical volatilities of common stock of comparable publicly traded entities over a period equal to the expected term of the stock option grants. Comparable companies were chosen based on their size, stage in the life cycle or area of specialty.

*Risk-free interest rate* - The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with a term that is equal to the options' expected term at the grant date.

*Expected dividend* - The Company has never paid dividends on the common stock and has no plans to pay dividends on the common stock. Therefore, the Company used an expected dividend yield of zero.

The fair value of restricted stock awards and restricted stock units is their grant date fair value.

***Comprehensive Income (Loss)***

Comprehensive loss includes all changes in equity (net assets) during a period from non-owner sources as well as unrealized losses on available-for-sale investments. The Company's non-credit related unrealized gains and losses on investments during the period represent the component of other comprehensive income (loss) that is excluded from the reported net loss.

***Net Loss Per Share***

Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, redeemable convertible preferred stock, common stock warrants, restricted common shares issued, and stock options are considered to be potentially dilutive securities. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities. The Company's redeemable convertible preferred stock contains participation rights in any dividend paid by the Company and is deemed to be a participating security. Restricted shares issued to the founders also participate in dividends from the issuance date and are considered participating securities. Participating securities do not have a contractual obligation to share in losses. As such, the net loss was attributed entirely to common stockholders. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. For all periods presented, diluted net loss per share is the same as basic net loss per share since the effect of including potential common shares is anti-dilutive.

***Income Taxes***

The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income.

A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. In evaluating the ability to recover its deferred income tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a

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jurisdiction-by-jurisdiction basis. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, it would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely, in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period when such determination is made. As of December 31, 2024, the Company has recorded a full valuation allowance on its net deferred tax assets.

Tax benefits related to uncertain tax positions are recognized when it is more likely than not that a tax position will be sustained during an audit. Interest and penalties related to unrecognized tax benefits are included within the provision for income tax.

***JOBS Act Accounting Election***

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date the Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

***Recently Adopted Accounting Pronouncements***

In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. This update enhances segment reporting by requiring public entities to disclose significant segment expenses and other segment-related items on both interim and annual basis. Entities with only one reportable segment must also comply with these new disclosure requirements, along with existing guidance in ASC 280, including reconciliation provisions. ASU 2023-07 is effective for fiscal years beginning after December 2023 and for interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 for the fiscal year 2024, resulting in expanded disclosures in the notes to our financial statements (See Note 14, 'Segment Information').

***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 public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025 on a prospective basis, with the option to apply the standard retrospectively. The Company expects the adoption to have a disclosure impact on its financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)*, which introduces new disclosure requirements to disaggregate certain natural expenses underlying income statement captions. ASU 2024-03 is effective for annual periods in fiscal years beginning after December 15,

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2026, and for interim periods thereafter. Early adoption is permitted. The application of ASU 2024-03 is prospective for periods beginning after the effective date, although retrospective application to prior periods is allowed. The Company is currently assessing the impact that ASU 2024-03 will have on its financial statements and disclosures.

**3. Fair Value Measurements** 

Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices, or parameters derived from such prices. Where observable prices or inputs are not available, valuation models are applied.

These valuation techniques involve some level of management estimation and judgment. The degree of management estimation and judgment is dependent on the price transparency for the instruments, or market, and the instruments' complexity. The authoritative accounting guidance describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last is considered unobservable. These levels of inputs are as follows:

Level 1 – Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3 – Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

The Company measures and reports its cash equivalents, restricted cash, and available-for-sale investments at fair value. Money market funds are measured at fair value on a recurring basis using quoted prices and are classified as Level 1. Investments are measured at fair value based on inputs other than quoted prices that are derived from observable market data and are classified as Level 2 inputs. The convertible note is measured at fair value using unobservable inputs and is classified as Level 3. The Company recognizes transfers into and out of levels within the fair value hierarchy in the period in which the actual event or change in circumstances that caused the transfer occurs. No such transfers occurred during the year ended December 31, 2024.

As of December 31, 2024, the Company's financial assets and financial liabilities recognized at fair value consisted of the following (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Fair Value** |
|  **Financial Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Money market funds | $11781 | $— | $— | $11781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. treasury securities |  | 93287 |  | 93287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total financial assets | $11781 | $93287 | $— | $105068 |
|  **Financial Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible note | $— | $— | $34473 | $34473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total financial liabilities | $— | $— | $34473 | $34473 |

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The Company's securities are valued using third-party pricing services or other observable market data. The pricing services utilize industry standard valuation models and observable market inputs to determine value.

The Company elected to measure the convertible note (Note 7) at fair value with changes in fair value reported in earnings as they occur. The convertible note fair value was determined using the discounted cash flows methodology based on probability weighted scenarios of the convertible notes conversion using Level 3 inputs not observable in the market. Significant increase (decrease) in these inputs would result in a lower (higher) fair value measurement. At issuance on May 11, 2023 the time to a conversion event ranged from 0.22 to 0.39 years and the discount rate applied was 29.1%. On December 31, 2024, the time to the event ranged from 0.50 to 1.36 years, and the discount rate applied was 25.98%.

The following table provides a reconciliation of the beginning and ending balances of the convertible note fair value for the year ended December 31, 2024 (in thousands):

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| | |
|:---|:---|
|  | **Year Ended<br>December 31, 2024** |
|  **Fair value at the beginning of the period** | $33587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued stated interest | 2381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value | (1495) |
|  **Fair value at end of period** | $34473 |

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**4. Marketable Securities** 

The fair value and amortized cost of cash equivalents and available-for-sale securities by major security type as of December 31, 2024 are presented in the following tables (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Fair Value** |
|  Money market funds | $11781 | $— | $— | $11781 |
|  U.S. treasury securities | 93215 | 79 | (7) | 93287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cash equivalents and investments | $104996 | $79 | $(7) | $105068 |
|  Classified as: |  |  |  |  |
|  Cash equivalents |  |  |  | 12499 |
|  Short-term investments |  |  |  | 92569 |
|  Total cash equivalents and investments |  |  |  | $105068 |

---

As of December 31, 2024, total cash, cash equivalents and investments of $105.2 million includes cash equivalents and marketable securities of $105.1 million plus cash of $0.1 million. The fair values of available-for-sale securities by contractual maturity as of December 31, 2024 were as follows:

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| | |
|:---|:---|
|  | **December 31,<br>2024** |
|  | **(in thousands)** |
|  Due in 1 year or less | $93287 |
|  Due in 1 - 2 years |  |
|  Due in 3 years |  |
|  Instruments not due at a single maturity date | 11781 |
|  | $105068 |

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As of December 31, 2024, the Company recognized $0.3 million of accrued interest receivable from available-for-sale securities within prepaid expenses and other current assets on the balance sheet. As of December 31, 2024, the remaining contractual maturities of available-for-sale securities were less than three years. There have been no realized losses on available-for-sale securities for the year ended December 31, 2024. The Company believes there are no other-than-temporary impairments on these securities as of December 31, 2024, because the Company does not intend to sell these securities, nor does it believe that it will be required to sell these securities before the recovery of their amortized cost basis. None of the Company's investments have been in a continuous unrealized loss position for 12 months or longer as of December 31, 2024.

**5. Balance Sheet Components** 

***Prepaid Expenses and Other Current Assets***

Prepaid expenses and other current assets as of December 31, 2024, consisted of the following (in thousands):

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| | |
|:---|:---|
|  | **As of<br>December 31,<br>2024** |
|  Prepaid expenses | $1688 |
|  Accrued interest | 268 |
|  Other receivables | 115 |
|  Tax receivable | 15 |
|  Total | $2086 |

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***Property and Equipment, net***

Property and equipment, net as of December 31, 2024 consisted of the following (in thousands):

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| | |
|:---|:---|
|  | **As of**<br>**December 31,<br>2024** |
|  Laboratory equipment | $11348 |
|  Leasehold improvements | 4939 |
|  Computer equipment | 718 |
|  Furniture and office | 325 |
|  Software | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 17508 |
|  Less: Accumulated depreciation and amortization | (7880) |
|  Property and equipment, net | $9628 |

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Depreciation expense was $2.9 million for the year ended December 31, 2024.

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***Accrued Expenses and Other Current Liabilities***

Accrued expenses and other current liabilities as of December 31, 2024 consisted of the following (in thousands):

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| | |
|:---|:---|
|  | **As of<br>December 31,<br>2024** |
|  Accrued compensation | $3502 |
|  Accrued expenses | 1729 |
|  Accrued taxes | 638 |
|  Other current liabilities | 87 |
|  Total | $5956 |

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**6. Collaboration and License Agreements** 

***Regents Exclusive License Agreements***

On September 25, 2018, the Company entered into an exclusive license agreement with the Regents of the University of California ("the Regents") (the "Regents Agreement"). Under the Regents Agreement, the Company licensed certain exclusive and non-exclusive intellectual property rights developed by the Regents. Upon execution of the Regents Agreement, the Company paid a $0.1 million upfront license fee to the Regents. At the Company's first qualified round of financing, which closed in October 2018, the Company issued to the Regents 756,370 shares of common stock with an estimated fair value of $0.4 million. A license maintenance fee of $0.1 million is due from the one-year anniversary of the agreement and annually thereafter.

On September 24, 2020, the Company amended and restated the Regents Agreement and licensed additional intellectual property and patents. The Company issued to the Regents a warrant to purchase 440,133 shares of common stock. The warrant may be exercised any time for 10 years from the issuance date at an exercise price of $0.52 per share. The Company concluded that the warrant meets criteria for equity classification and recorded the fair value of $0.3 million as research and development expenses at the issuance date.

On November 22, 2024, the Company further amended and restated the Regents Agreement. As amended, the Company is required to make the following payments: future development and regulatory milestone payments totaling up to $27.7 million; future commercial milestone payments totaling up to $3.6 million; and royalties on future sales at percentage rates ranging from the low to mid-single digits.

The Company accounts for license fees, sublicensee fees and license maintenance fees as research and development expenses when fees are due and payable and accounts for future milestones and royalties' payments when the contingency is resolved and consideration is issued or becomes issuable. No milestones or royalties are probable and estimable as of December 31, 2024. The Company recorded $1.4 million as research and development expense and $0.1 million as general and administrative expense under the Regents Agreement for the year ended December 31, 2024.

***Acuitas Agreements***

*Development and Option Agreement* 

On November 7, 2022, the Company entered into a development and option agreement with Acuitas Therapeutics, Inc (as amended, the "Acuitas Development and Option Agreement"). Under the Acuitas Development and Option Agreement, the Company and Acuitas agreed to conduct a program

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to develop products combining the Company's gene editing technology and the lipid nanoparticle, or LNP, technology of Acuitas.

The Acuitas Development and Option Agreement provides the Company with the option to enter into non-exclusive, worldwide license agreements with respect to reserved human genome targets, with the right to sublicense (subject to certain restrictions), under Acuitas' patent rights and know-how covering its LNP technology to exploit licensed products for all human therapeutic or prophylactic uses. The Company may exercise the option with respect to a specified number of products directed to reserved targets (each of which the Company refers to herein as an Option). Under the Acuitas Development and Option Agreement, the Company may non-exclusively reserve certain targets for potential use in the program.

In consideration for the rights granted under the Acuitas Development and Option Agreement, the Company paid a technology access fee of $0.4 million for each Option and will pay an annual technology maintenance fee of $0.4 million for each Option that has not been exercised. The Company is also obligated to pay to Acuitas an annual target reservation fee of $0.1 million per target for each target it elects to reserve until the Company exercises the option with respect to such target or such target is removed from the list of reserved targets. Upon exercising an Option to enter into a non-exclusive license agreement for a human genome target, the Company will be required to pay Acuitas a $3.0 million Option exercise fee, subject to reduction by the target reservation and maintenance fees that are creditable against the option exercise fee for the applicable target.

The term of the Acuitas Development and Option Agreement will expire on November 7, 2025, provided that the Company has one Option to extend the term for an additional two-year period upon written notice to Acuitas, which the Company exercised in March 2025. The Company has the right to terminate the Acuitas Development and Option Agreement in its entirety upon a specified written notice period. Additionally, either party can terminate the Acuitas Development and Option Agreement for the other party's uncured material breach or bankruptcy.

*License Agreement* 

If the Company exercises the Option to enter into a non-exclusive license agreement for any licensed product, the Company agrees to enter into a pre-negotiated license agreement pursuant to which the Company will be required to pay Acuitas an annual license maintenance fee of $0.8 million until the first dosing of the first patient in the first Phase 1 study for a licensed product, up to $11.5 million in future development, and regulatory milestone payments (the "Acuitas Development and Regulatory Milestone Payments"), and up to $16.0 million in future commercial milestone payments (the "Acuitas Commercial Milestone Payments") per licensed product. The Company will also be obligated to pay Acuitas royalties (the "Acuitas Royalties") at percentage rates in the low single digits on future net sales of licensed products by the Company and its sublicensees, subject to reduction under certain customary conditions. The royalties will be payable on a country-by-country and licensed product-by-licensed product basis commencing on the first commercial sale of a licensed product in a country and continuing until the latest of: (i) the expiration of the last to expire valid claim of a licensed patent that covers such licensed product in such country, (ii) expiration of regulatory exclusivity for such licensed product in such country, and (iii) ten years from the first commercial sale of such licensed product in such country.

In December 2023, the Company exercised an Option with respect to a licensed product and a licensed genome target and entered into a non-exclusive, worldwide license with Acuitas ("the Acuitas License Agreement"), with a right to sub-license through multiple tiers, under the licensed LNP technology to research, develop and commercialize the licensed products using the LNP technology. To the extent achieved, the Company is also obligated to make the respective Acuitas Development and Regulatory Milestone Payments, the Acuitas Commercial Milestone Payments and the Acuitas royalties with respect to the licensed product.

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The Company recognized research and development expenses of $3.0 million for the year ended December 31, 2024, related to reimbursement for research and development services performed by Acuitas as well as other fees due under the Acuitas Agreements. No milestones have been met or were probable as of December 31, 2024.

***Collaboration Revenue***

The following table summarizes the revenue recognized by collaboration partner (in thousands):

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| | |
|:---|:---|
|  | **Year ended<br>December 31,<br>2024** |
|  Prevail | $17354 |
|  Sanofi | 10053 |
|  Other | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Revenue | $27413 |

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***Sanofi Agreements***

*Sanofi 2022 License Agreement* 

On September 20, 2022, the Company entered into a license agreement with Kiadis Pharma Netherlands BV (the "Sanofi 2022 License Agreement"), a Sanofi company ("Sanofi") incorporated in the Netherlands under which the Company granted to Sanofi and its affiliates a non-exclusive license to use its gene editing technology for a certain number of target genes. The Company also granted Sanofi an exclusive license to a specified number of gRNA molecules related to each of the licensed targets. The Company received an upfront payment of $25.0 million from Sanofi in October 2022 and may receive up to $420.0 million in aggregate development and regulatory milestone payments and up to $630.0 million in aggregate commercial milestone payments for all licensed targets (in each case, assuming one licensed product is developed for each licensed target), as well as tiered royalties in the mid-single digit percentages on future net sales of licensed products, if any, subject to reduction under certain specified conditions.

The Company identified the following promises in the agreement: (1) license to editing technology for a number of target genes, (2) license to use gRNA, (3) identification and provision of target-specific gRNA sequences, (4) technology and material transfer. The Company concluded that for each gene target selected by Sanofi the aforementioned promises are not distinct and should be combined into a single combined performance obligation. The Company also determined that Sanofi's option to replace a target constitutes a material right as it is an optional purchase priced at a significant discount that Sanofi would not have received without entering into the agreement.

To determine the transaction price, the Company evaluated all the payments to be received during the contract. At inception of the agreement, the Company determined that the transaction price was $25.0 million, which is equal to the upfront payment. Milestone fees were considered variable consideration and were not included in the transaction price based on the most likely amount method. The Company will re-evaluate the transaction price at each reporting period.

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The allocation of the transaction price is determined on a standalone selling price basis, which is based on estimated amounts that the Company would charge for each performance obligation if it were sold separately. As a result, at the inception of the Sanofi 2022 License Agreement, $3.2 million was allocated to the material rights in the agreement, and $21.8 million was allocated to the remaining performance obligations. The transaction price allocated to the performance obligations is recognized as revenue when the Company transfers control of the licensed gRNA molecule and related know-how for that gene target.

The Company recognized less than $0.1 million in collaboration revenue for the year ended December 31, 2024 under the Sanofi 2022 License Agreement. As of December 31, 2024, $15.6 million is classified as short-term deferred revenue and zero is classified as long-term deferred revenue in the Company's balance sheet.

*Sanofi 2023 License Agreement* 

On June 19, 2023, the Company entered into a license agreement (the "Sanofi 2023 License Agreement") with Genzyme Corporation, a Sanofi company under which the Company granted to Sanofi and its affiliates an exclusive license to research, develop, manufacture, and commercialize the gene editing therapies leveraging the licensed editing compositions, including CRISPR CasXE technologies for the development of in vivo products directed at sickle cell disease, with an option to expand to additional targets.

Under the terms of the agreement, the Company received an upfront payment of $40.0 million from Sanofi in July 2023 and may receive up to $425.0 million in aggregate in payments for nomination fees, research, development and regulatory milestones, and up to $825.0 million in aggregate in commercial milestones for all targets, assuming one licensed product is developed for each licensed target, as well as tiered royalties ranging from the high single-digit to low teens percentages on future net sales of licensed products, if any, subject to reduction under certain specified conditions.

The Company identified the following promises in the agreement: (1) research, development, manufacturing and commercialization license, (2) identification and provision of licensed target-specific gRNA molecules, and (3) technology and materials transfer. For each gene target selected by Sanofi, the Company concluded that the aforementioned promises should be combined into a single performance obligation. The Company identified the following material rights in the agreement; (1) a right to nominate additional targets, (2) a right to request assistance with research and development related to molecular engineering as well as manufacturing development for an agreed upon number of hours, and (3) the option to replace a target.

To determine the transaction price for the Sanofi 2023 License Agreement, the Company evaluated all payments to be received during the contract. At inception of the agreement, the Company determined that the transaction price was $40.0 million which consisted of fixed consideration of $40.0 million equal to the upfront payment. Milestone fees were considered variable consideration and were not included in the transaction price based on the most likely amount method. The Company will re-evaluate the transaction price at each reporting period.

The allocation of the transaction price is determined on a standalone selling price basis, based on estimated amounts that the Company would charge for each performance obligation if it were sold separately. As a result, at the inception of the Sanofi 2023 License Agreement, $31.9 million was allocated to the material rights in the agreement, and the remaining $8.1 million was allocated to the remaining performance obligation. The transaction price allocated to the remaining performance obligation is recognized as revenue when the Company transfers control of the licensed target and the related know-how for that gene target.

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The Company has a right to opt-in to development cost sharing, as well as co-promotion and profit and loss sharing in the United States on one licensed target, other than the initial licensed target. If the opt-in right is exercised, the royalty rates for sales of the co-developed product outside of the U.S. will be subject to certain upward adjustments.

The Company recognized $10.1 million in collaboration revenue for the year ended December 31, 2024 under the Sanofi 2023 License Agreement. As of December 31, 2024, $0.6 million is classified as short-term deferred revenue and $28.4 million is classified as long-term deferred revenue in the Company's balance sheet.

***Prevail License Agreement***

On May 11, 2023, the Company entered into a license and collaboration agreement with Prevail Therapeutics, Inc. (the "Prevail License Agreement"), a wholly owned subsidiary of Eli Lilly and Company, under which the Company granted Prevail an exclusive, worldwide license, with the right to sublicense, under certain patent rights to research, develop and manufacture licensed products for in vivo gene editing that incorporates a CasX editor for the development of in vivo therapies directed to specified targets known to cause serious neurological and neuromuscular diseases. In addition, the Company issued and sold a convertible note (Note 7) to Eli Lilly for $30.0 million. The Company concluded that the convertible note was issued at fair value and did not impact the transaction price of the Prevail License Agreement.

Under the terms of the agreement, the Company received an upfront payment of $45.0 million from Prevail in May 2023. The Company is also entitled to research and development service fees under the Prevail License Agreement at the agreed upon annual full-time equivalent rate. The Company will be eligible to receive up to $160.0 million in aggregate research and development milestone payments and up to $1.4 billion in aggregate commercial milestone payments, in each case, assuming one licensed product is developed for each licensed target, as well as, tiered royalties, subject to reductions, in the mid-single digit to low teens percentages on annual worldwide net sales of such licensed product.

The Company identified the following promises in the agreement: (1) a research license for a number of target genes, (2) exclusive development, manufacturing, and commercialization license, (3) research and development services, (4) participation in the joint steering committee, subcommittees and allocating an alliance manager, (5) sharing of information. The Company concluded that the aforementioned promises should be combined into a single distinct performance obligation for each target. In addition, Prevail has the option to nominate an additional target and target replacements for each target. The Company concluded that, at the inception of the agreement, Prevail's option to select an additional target was not a material right, did not represent a performance obligation of the contract, and would be accounted for as a separate arrangement upon exercise. The Company determined that Prevail's target replacement right constitutes a material right at the execution of the agreement as it is an optional purchase priced at a significant discount that Prevail would not have received without entering into the agreement.

To determine the transaction price for the Prevail License Agreement, the Company evaluated all payments to be received during the contract. Milestone fees were considered variable consideration and were not included in the transaction price based on the most likely amount. Further, the consideration due for research and development services will be included in the transaction price as variable consideration. The Company will re-evaluate the transaction price and the total estimated costs expected to be incurred to satisfy the performance obligations at the end of each reporting period. As uncertain events, such as changes to the expected timing and cost of certain research, development, and manufacturing activities that the Company is responsible for, are resolved, or other

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changes in circumstances occur, and, if necessary, the Company will adjust its estimate of the transaction price and total estimated costs expected to be incurred. The Company will re-evaluate the transaction price at each reporting period. The Company determined that at inception the transaction price was $70.0 million which consisted of fixed consideration of $45.0 million, represented by the upfront payment, and variable consideration of $25.0 million, represented by estimated fees for research and development services. As of December 31, 2024, the total variable consideration was estimated at $31.0 million.

The allocation of the transaction price is determined on a standalone selling price basis, based on estimated amounts that the Company would charge for each performance obligation if it were sold separately. As a result, at the inception of the Prevail License Agreement, $22.5 million of the transaction price was allocated to the material rights in the agreement, and the remaining $47.5 million was allocated to the combined performance obligations. The allocated transaction price for the combined performance obligation of each target is recognized using an input measure. In applying the input method of revenue recognition, the Company uses actual cost incurred relative to the estimated total cost expected to be incurred of each target. Once Prevail exercises a material right, revenue will be recognized on the cost-to-cost input method for each per-replacement target performance obligation as research and development services are provided. The milestone payments and royalties will be recognized as revenue if and when the underlying sales of licensed products occur. As of December 31, 2024, no milestones or royalties have been deemed likely to be achieved or have been achieved.

On January 1, 2024, Prevail exercised its target replacement right with respect to one of the initially nominated targets. The Company retained exclusive rights to all licenses granted to Prevail with respect to the replaced target.

Under the Prevail License Agreement, the Company recognized $17.4 million in collaboration revenue for the year ended December 31, 2024. As of December 31, 2024, the value of the transaction price allocated to the remaining unsatisfied portion of the performance obligations was $44.0 million, of which $7.2 million and $20.6 million were recorded as short-term and long-term deferred revenue, respectively. The Company expects to recognize the remaining transaction price as revenue over the next three years.

***Contract Liabilities***

The following table presents changes in the Company's total contract liabilities for the year ended in December 31, 2024 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Balance at<br>December 31, 2023** | **Additions** | **Revenue Recognized** | **Balance at<br>December 31, 2024** |
|  Contract liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | $79196 | $200 | $(6977) | $72419 |

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The $72.4 million of deferred revenue as of December 31, 2024 will be recognized as revenue as performance obligations are completed by the Company. The $29.0 million related to the Sanofi 2023 License Agreement as of December 31, 2024 is expected to be recognized through 2026. The $27.8 million related to Prevail as of December 31, 2024 is expected to be recognized through 2027. The $15.6 million related to the Sanofi 2022 License Agreement at December 31, 2024 is expected to be recognized through 2025.

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**7. Convertible Note Payable** 

On May 11, 2023, the Company issued a convertible note ("Lilly Note") to Eli Lilly and Company (Note 6) with the principal amount of $30.0 million. The Lilly Note has a stated interest rate of 8% and matures on May 11, 2026, unless it is previously converted into equity shares.

Upon occurrence of the issuance and sale of the Company's redeemable convertible preferred stock that results in aggregate proceeds of at least $35.0 million (a "Qualified Financing"), the convertible note will automatically convert into redeemable convertible preferred stock of the Company. The Lilly Note will convert into redeemable convertible preferred stock at a discount of between 5% and 15% depending on the timing of the financing. The Lilly Note also contained other settlement provisions if a Qualified Financing does not occur. Upon occurrence of a public offering, either an IPO resulting in at least $100.0 million of gross proceeds or a special purpose acquisition company transaction, the Lilly Note will automatically convert into common shares issued at a discount to the IPO price per share of between 5% and 15%, depending on the timing of the offering. If neither a Qualified Financing nor a public offering occurs, the Lilly Note may convert upon change of control or upon maturity, at the election of the holder. Upon occurrence of a change of control, the convertible note will, at the election of the holder, either be repaid with a 15% premium to the then outstanding principal and unpaid interest; or convert into the Company's equity securities at a price that is 15% less than the price per share received by the holders of such equity securities upon such change of control. Upon maturity, the convertible note will, at the election of the holder, be repaid with a 15% premium to the then outstanding principal and unpaid interest; or convert into the Company's common stock at a conversion price of $6.05 per share.

The fair value of the convertible note was $34.5 million as of December 31, 2024.

**8. Commitments and Contingencies** 

***Operating Leases***

In August 2019, the Company entered into a noncancelable operating lease agreement for 14,152 square feet of office and laboratory space in Alameda, California. The lease commenced in September 2019 and had an initial lease term of 5.8 years.

In June 2021, the Company entered into a lease amendment to expand the original premises being leased to include an additional 14,255 square feet of office and laboratory space and to extend the lease term. The amendment was accounted for as a lease modification and classified as an operating lease with a modification date of June 2021 and a remaining lease term of 8.5 years.

The following table summarizes operating lease costs included in research and development and general and administrative expense for the year ended December 31, 2024 (in thousands):

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| | |
|:---|:---|
|  | **Year ended**<br>**December 31,**<br>**2024** |
|  Operating lease cost | $1065 |
|  Variable lease cost | 497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease costs | $1562 |

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Future minimum commitments under the non-cancellable operating lease as of December 31, 2024 were as follows (in thousands):

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| | |
|:---|:---|
| 2025 | $1695 |
| 2026 | 1758 |
| 2027 | 1811 |
| 2028 | 1866 |
|  Thereafter | 1759 |
|  Total undiscounted lease payments | 8889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Imputed interest | (1685) |
|  Total operating lease liability | 7204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: current liability portion | (1116) |
|  Operating lease liability, net of current portion | $6088 |

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The weighted average incremental borrowing rate for the lease was 8.82% with a remaining lease term of 4.84 years as of December 31, 2024. During the year ended December 31, 2024, cash paid for amounts included in operating lease liabilities of $1.6 million was included in cash flows from operating activities on the statement of cash flows.

***Guarantees and Indemnifications***

In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Company's exposure under these agreements is unknown because it involves claims that may be made against the Company in the future.

The Company has entered into indemnification agreements with certain directors and officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. As of December 31, 2024, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities.

***Legal Contingencies***

From time to time, the Company may become involved in legal proceedings arising from the ordinary course of business. The Company records a liability for such matters when it is probable that future losses will be incurred and that such losses can be reasonably estimated. Significant judgment by the Company is required to determine both probability and the estimated amount. Management is currently not aware of any legal matters that could have a material adverse effect on financial position, results of operations or cash flows.

***Research and Development Agreements***

The Company enters into contracts in the normal course of business with third-party vendors for preclinical studies, supplies and other services and products for operating purposes. These contracts generally provide for termination on notice or may have a potential termination fee if a purchase order is cancelled within a specified time. As of December 31, 2024, there were no amounts accrued related to termination and cancellation charges as the Company has not determined cancellation to be probable.

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***License Agreements***

The Company entered into the Regents Agreement and Acuitas Agreements (Note 6), which requires it to pay milestones contingent upon the meeting of specific events and royalties of future sales. As of December 31, 2024, no milestones were due and payable.

**9. Redeemable Convertible Preferred Stock** 

In October 2018, the Company issued 12,150,003 shares of its Series A redeemable convertible preferred stock at a price of $1.65 per share for gross cash proceeds of $20.0 million and issued 155,976 shares of its Series A-1 redeemable convertible preferred stock upon the conversion of the outstanding convertible notes and accrued interest. In January 2019, the Company issued 276,138 shares of its Series A-2 redeemable convertible preferred stock at a price of $1.81 per share for gross cash proceeds of $0.5 million.

In March 2021, the Company issued 16,525,375 shares of Series B redeemable convertible preferred stock at a price of $6.05 per share for gross cash proceeds of $100.0 million.

Redeemable convertible preferred stock consists of the following (in thousands, except share and per share amounts):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Shares<br>Authorized** | **Original<br>Issue Price** | **Shares Issued<br>and<br>Outstanding** | **Carrying Value** | **Liquidation<br>Preference** |
|  Series A | 12150003 | $1.65 | 12150003 | $19869 | $20000 |
|  Series A-1 | 155977 | 1.32 | 155976 | 205 | 205 |
|  Series A-2 | 276138 | 1.81 | 276138 | 500 | 500 |
|  Series B | 16600000 | 6.05 | 16525375 | 99782 | 100000 |
|  Total | 29182118 |  | 29107492 | 120356 | 120705 |

---

The rights, preferences and privileges of the redeemable convertible preferred stock are as follows:

*Voting—*The holder of each share of Series A, A-1, A-2 and Series B redeemable convertible preferred stock has the right to one vote of each share of common stock into which such redeemable convertible preferred stock is convertible. The holders of Series B redeemable convertible preferred stock, voting as a separate class, shall be entitled to elect two directors to the Company's Board of Directors. The holders of Series A redeemable convertible preferred stock, voting as a separate class, shall be entitled to elect one director to the Company's Board of Directors. The holders of common stock, voting as a separate class, shall be entitled to elect two directors to the Company's Board of Directors.

*Dividends*—The holders of shares of redeemable convertible preferred stock in preference to the holders of common stock, shall be entitled to receive, but only out of funds that are legally available, cash dividends at the annual per share rate of 6.0% per annum based on the original issue price. Such dividends shall be payable only when, as and if declared by the Company's Board of Directors and shall be non-cumulative. No dividends have been declared as of December 31, 2024.

*Conversion—*Each share of redeemable convertible preferred stock shall be convertible, at the option of the holder, at any time and from time to time, and without the payment of additional consideration by the holder, into such number of shares of common stock at the conversion rate that is

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determined by dividing the redeemable convertible preferred stock original issue price by the redeemable convertible preferred stock conversion price in effect at the time of conversion. The conversion price shall initially be equal to the applicable original issue price subject to certain anti-dilution adjustments. As of December 31, 2024, the Company's redeemable convertible preferred stock was convertible into the Company's shares of common stock on a one-for-one basis.

Each share of redeemable convertible preferred stock is automatically converted into common stock shares at the then effective conversion rate (i) upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, resulting in at least $100.0 million of gross proceeds to the Company, or (ii) if such offering is otherwise approved by vote or written consent of at least a majority of the outstanding shares of the redeemable convertible preferred stock voting together as a single class on an as-converted basis, which majority shall include at least a majority of Series B redeemable convertible preferred stock.

*Liquidation Preference—*In the event of a liquidation, distribution or winding up of the Company, the holders of redeemable convertible preferred stock are entitled to be paid out of the assets of the Company legally available for distribution before any distribution or payment is made to holders of the Company's common stock. In the event of a liquidation, distribution or winding up of the Company, the holders of the redeemable convertible preferred stock are entitled to receive the amount per share of redeemable convertible preferred stock owned equal to the greater of (i) the original issue price, plus any dividends declared but unpaid thereon for any redeemable convertible preferred stock owned, or (ii) such amount per share as would have been payable had all shares of redeemable convertible preferred stock been converted into common stock immediately prior to such liquidation, dissolution, winding up or deemed liquidation event. If upon any such liquidation, dissolution or winding up of the Company or deemed liquidation event, the assets of the Company available for distribution to its stockholders are insufficient to pay the holders of shares of redeemable convertible preferred stock the full amount to which they are entitled, the holders of shares of redeemable convertible preferred stock will share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution as if all amounts payable on or with respect to such shares were paid in full.

The remaining assets of the Company are distributed among the common and redeemable convertible preferred stockholders pro rata based on the number of shares held by each holder on an as-converted basis.

*Redemption*—Upon the occurrence of certain change in control events that are outside of the Company's control, including liquidation, sale or transfer, holders of the redeemable convertible preferred stock can effectively cause redemption for cash. As a result, the Company classified the redeemable convertible preferred stock as mezzanine equity on the balance sheets as the stock is contingently redeemable.

**10. Common Stock** 

The Company is authorized to issue up to 52,000,000 shares of $0.001 par value common stock as of December 31, 2024.

Common stockholders are entitled to dividends when and if declared by the Board of Directors, subject to the prior rights of the redeemable convertible preferred stockholders. The holder of each share of common stock is entitled to one vote. The common stockholders voting as a class are entitled to elect two members to the Company's Board of Directors. No dividends have been declared since the inception of the Company.

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The Company had reserved common stock for future issuance as follows:

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| | |
|:---|:---|
|  | **December 31,<br>2024** |
|  Conversion of redeemable convertible preferred stock | 29107492 |
|  Exercise of outstanding stock option awards | 7180429 |
|  Common Stock Warrants issued and outstanding | 440133 |
|  Restricted stock issued and outstanding-2018 Equity Incentive Plan | 284372 |
|  Stock options available for future grant | 914342 |
|  **Total common stock reserved** | **37926768** |

---

***Founders' Restricted Common Stock***

In January and August 2018, the Company issued 13,000,000 restricted common stock shares to its founders at the purchase price of $0.001 per share for their advisory and consulting services. In September 2018, the Company repurchased 1,250,000 such shares from one of the founders. The founders' common stock shares are subject to the Company's repurchase option if a founder terminates their services to the Company during the vesting period. The Company may repurchase any unvested restricted common stock shares at the price per share equal to the original purchase price, subject to adjustments in the event of any reorganization, recapitalization, reclassification, stock dividend, stock split or reverse stock split. The repurchase right lapses in 90 days after the termination of the founder's service or employment. During the vesting term, the holders of the founders' restricted common stock shares have the right to receive dividends and voting rights.

The restricted common stock shares vested monthly over four years from the vesting commencement date, which was the date of the initial closing of the Series A redeemable convertible preferred stock financing or October 1, 2018. The founders' shares were all fully vested as of December 31, 2024. The Company accounts for shares issued to founders as equity compensation awards and the estimated fair value at the grant date was minimal.

**11. Equity Incentive Plan and Stock-Based Compensation** 

***2018 Stock Incentive Plan***

In 2018, the Company adopted the 2018 Stock Incentive Plan, or (the "Plan"). The Plan provides for the grants of stock options, stock appreciation rights, dividend equivalent rights, restricted stock units, restricted stock awards ("RSAs"), and other stock-based awards to employees, consultants and advisors of the Company. Options granted under the Plan may be either incentive stock options or nonqualified stock options. Incentive stock options ("ISO") may be granted only to Company employees, including officers and directors who are also employees. Nonqualified stock options ("NSO") may be granted to Company employees, consultants and advisors. As of December 31, 2024, the Company has reserved 9,904,452 shares of common stock for issuance under the Plan.

Options under the Plan may be granted for periods of up to ten years and at prices based upon the estimated fair value of the shares on the date of grant as determined by the Board of Directors, provided, however, that (i) the exercise price of an option shall not be less than 100% of the estimated fair value of the shares on the date of grant, and (ii) the exercise price of an ISO granted to a greater than 10% stockholder shall not be less than 110% of the estimated fair value of the shares on the date of grant, and (iii) the term of an ISO granted to a greater than 10% stockholder should not exceed five years. Options granted generally vest over four years.

Options and RSAs granted under the Plan vest on a straight-line basis over a period of four years, with certain options vesting 25% after the first year of service and 1/48th vesting on a monthly

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basis thereafter. RSAs granted by the Company may be repurchased in the event that conditions specified by the administrator are not satisfied prior to the end of such applicable restriction periods established by the administrator of such awards.

On October 6, 2021, the Company granted 600,000 performance based stock option awards to the Chief Executive Officer that only vest upon the successful completion of the first in human proof of concept study. The Company recognizes stock option awards with performance vesting conditions based on the grant date fair value over the service period using the accelerated attribution method to the extent that achievement of the performance condition is probable. For the year ending December 31, 2024 no expense has been recognized related to these performance based stock option awards as the achievement of the performance condition was not probable.

The Plan allows for early exercises of stock options that will be subject to a right of repurchase by the Company for any unvested shares. The repurchase rights lapse over the original vesting period of the options. The Company accounts for the cash received in consideration for the early exercised options as a liability included in accrued and other current liabilities, which is then reclassified to stockholders' equity as the options vest. As of December 31, 2024, the Company had no shares of common stock subject to an early exercise option repurchase provision under the Plan.

As of December 31, 2024, there were 914,342 shares reserved for issuance as stock option awards under the Plan.

***Stock Option Activity***

Stock options activity under the Plan is set forth below:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br>Shares<br>Available<br>for Grant** | **Options<br>issued and<br>outstanding** | **Weighted<br>Average<br>Exercise<br>Price** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Term<br>(in years)** | **Aggregate<br>Intrinsic<br>Value<br>(in thousands)** |
|  **Outstanding on December 31, 2023** | 1337735 | 7010071 | $2.27 | $8.05 | $10130 |
|  Options granted | (681200) | 681200 | $3.97 |  |  |
|  Options exercised |  | (253035) | $1.84 |  |  |
|  Options forfeited or cancelled | 257807 | (257807) | $2.78 |  |  |
|  **Outstanding on December 31, 2024** | 914342 | 7180429 | $2.43 | 7.27 | $1023 |
|  Exercisable at December 31, 2024 |  | 4792180 | $1.87 |  |  |
|  Vested and expected to vest at December 31, 2024 |  | 7180429 |  |  |  |

---

The weighted-average grant-date fair value of stock options granted to employees during the year ended December 31, 2024 was $1.99 per share. The total intrinsic value of stock options exercised during the year ended December 31, 2024, was $1.1 million. As of December 31, 2024, the total unrecognized stock based compensation related to unvested stock options was $5.9 million, which the Company expects to recognize over a remaining weighted-average period of 1.13 years.

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company's common stock for stock options that were in-the-money at December 31, 2024.

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The Company estimated the fair value of stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of stock options was estimated using the following weighted-average assumptions:

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| | |
|:---|:---|
|  | **Year Ended<br>December 31, 2024** |
|  Expected volatility | 84.42% - 85.13% |
|  Risk-free interest rate | 3.52% - 4.21% |
|  Dividend yield | 0% |
|  Expected term | 5.67 - 6.07 years |

---

***Restricted Stock Award Activity***

As of December 31, 2024, the Company had 284,372 RSAs that were issued and outstanding to non-employee consultants. The outstanding RSA's had a weighted average grant date fair value of $0.48 per share. From the total RSAs issued and outstanding zero shares were unvested as of December 31, 2024. The awards are legally issued and are considered outstanding as of the grant date. The fair value of RSAs granted is equal to the estimated fair value of the Company's common stock on the grant date. Stock-based compensation expense recognized during the year ended December 31, 2024 was zero.

***Common Stock Warrants***

In September 2020, the Company issued a warrant to purchase 440,133 common stock shares to the Regents (see Note 6). The Company used the Black-Scholes valuation pricing model to estimate the fair value at the grant date with the following assumptions: volatility of 82.76%, exercise price of $0.52, contractual term of 10 years, risk-free rate of 0.67% and dividend rate of 0%. Stock compensation expense of $0.3 million was recognized upon issuance of the warrants as research and development expense. The warrant had not been exercised as of December 31, 2024.

***Stock Based Compensation***

The total fair value of options that vested during the year ended December 31, 2024 was $3.0 million. No stock-based compensation related to performance-based awards was recognized in the year ended December 31, 2024 as the performance conditions were not probable.

The following table is a summary of total employee and non-employee stock-based compensation (in thousands):

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| | |
|:---|:---|
|  | **Year Ended<br>December 31,<br>2024** |
|  Research and development | $1931 |
|  General and administrative | 918 |
|  Total | $2849 |

---

**12. Income Taxes** 

The Company has pre-tax loss in the United States in the amounts of $37.6 million for the year ended December 31, 2024.

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A reconciliation of loss before income taxes for domestic and foreign locations for the year ended December 31, 2024 is as follows (in thousands):

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| | |
|:---|:---|
|  | **Year Ended<br>December 31,<br>2024** |
|  United States | $(37561) |
|  Foreign |  |
|  Loss before income taxes | $(37561) |

---

Income tax expense for the year ended December 31, 2024 consists of the following (in thousands):

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| | |
|:---|:---|
|  | **Year Ended<br>December 31,<br>2024** |
|  Current |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $9734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 491 |
|  Total current | 10225 |
|  Deferred |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State |  |
|  Total deferred |  |
|  Total income tax expense | $10225 |

---

The Company's deferred tax assets as of December 31, 2024, are summarized as follows (in thousands):

---

| | |
|:---|:---|
|  | **December 31,<br>2024** |
|  Deferred tax assets: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net operating loss carryforwards | $1487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development credit carryforwards | 1990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | 9827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized research costs | 18695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liability | 1960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 19662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 892 |
|  Total deferred tax assets | 54514 |
|  Valuation allowance | (51473) |
|  Deferred tax assets, net of valuation allowance | $3041 |
|  Deferred tax liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use asset | (966) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed assets | (2076) |
|  Total deferred tax liabilities | (3041) |
|  Net deferred taxes | $— |

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Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax

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purposes. The Company has established a valuation allowance against net deferred tax assets due to the uncertainty that such assets will be realized. The Company periodically evaluates the recoverability of its deferred tax assets. At such time as it is determined that it is more likely than not that the deferred tax asset will be realized, the valuation allowance will be reduced. The change in the valuation allowance was $22.2 million for the year ended December 31, 2024.

A reconciliation of the Company's income taxes to the amount computed by applying the statutory federal income tax rate to the pretax loss for the year ended December 31, 2024, is summarized as follows (in thousands):

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| | |
|:---|:---|
|  | **Year ended<br>December 31,<br>2024** |
|  Expected tax benefit at statutory rate | $(7888) |
|  State income tax, net of federal benefit | (2052) |
|  Stock expense | 433 |
|  Permanent items and others | 437 |
|  Change in fair value of convertible note | 186 |
|  Research and development credits | (3114) |
|  Change in valuation allowance | 22223 |
|  Total income tax expense | $10225 |

---

At December 31, 2024, the Company has California net operating loss carryforwards of approximately $41.2 million. The California net operating losses can be carried forward for up to 20 years. For taxable years 2024 through 2026, California suspended the use of net operating losses for taxpayers with income more than $1.0 million. The carryover will be extended for each year the losses were suspended during this time period. The Company's California net operating loss carryforwards begin to expire in 2043.

At December 31, 2024, the Company has federal and state research and development tax credits of $0.5 million and $3.8 million, respectively. The federal research and development tax credits begin to expire in 2044 unless previously utilized, and the state credit carryforwards do not expire. Pursuant to the Internal Revenue Code of 1986, as amended Sections 382 and 383, annual use of a Company's net operating loss and research and development credit carryforwards may be limited if there is a cumulative change in ownership of greater than 50% within a three-year period. The annual limitation is determined based on the value of the Company immediately prior to the ownership change. The Company has completed an analysis of ownership changes through March 31, 2023, and as a result, the Company experienced an ownership change in October of 2018. Such a change did not have a significant impact on the Company's ability to utilize net operating losses ("NOLs") and credits that existed as of that date. Future ownership changes may further limit the amount of NOLs and credits the Company may utilize in any given year, and such limitation may result in such attributes expiring unused. If such an event occurs, the related tax attribute will be removed from the deferred tax assets with a corresponding reduction to the valuation allowance.

The Inflation Reduction Act of 2022, which incorporates a Corporate Alternative Minimum Tax, was signed on August 16, 2022. The changes will affect the tax years beginning after December 31, 2022. The new tax will require companies to compute two separate calculations for federal income tax purposes and pay the greater of the new minimum tax or their regular tax liability. The Company will be monitoring the impacts of the act to determine if this will have an impact for the Company for years beginning after December 31, 2022. The act is not expected to have a material impact for the Company.

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Section 174 research and experimental ("R&E") capitalization, originally introduced by the 2017 tax reform legislation, the Tax Cuts and Jobs Act, is effective in 2022. Sec.174 requires U.S.-based R&E expenditures to be capitalized and amortized over a period of five years, and non U.S.-based R&E expenditures to be capitalized and amortized over a period of fifteen years. The Company capitalized $52.8 million, and amortized $16.1 million for the year ended December 31, 2024.

The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination by tax authorities. The Company does not expect that there will be a significant change in the unrecognized tax benefits over the next twelve months. As of December 31, 2024, the Company had approximately $8.6 million of unrecognized tax benefits that, if recognized and realized, would affect the effective tax rate, subject to changes in the valuation allowance.

The following table summarizes the changes to the Company's gross unrecognized tax benefits for the year ended December 31, 2024 (in thousands):

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| | |
|:---|:---|
|  | **Year ended<br>December 31,<br>2024** |
|  Beginning balance | $2394 |
|  Additions related to current year positions | 6266 |
|  Additions related to prior year positions | 3141 |
|  Ending balance | $11801 |

---

The Company is subject to taxation in the United States and various states. All of the Company's tax years are subject to examination by federal and state tax authorities due to the carryforward of unutilized net operating losses and research and development credits. The Company's practice is to recognize interest and penalties related to income tax matters in income tax expense. The Company had approximately $0.3 million of accrued interest and no accrued penalties as of December 31, 2024. The Company is not currently under examination by any federal, state or local tax authority.

**13. Net Loss Per Share Attributable to Common Stockholders** 

The following table sets forth the computation of basic and diluted net loss per share in the year ended December 31, 2024 attributable to common stockholders, which excludes shares which are legally outstanding, but subject to repurchase by the Company (in thousands, except share and per share amounts):

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| | |
|:---|:---|
|  | **Year ended**<br>**December 31,<br>2024** |
|  Numerator: |  |
|  Net loss attributable to common stockholders | $(47786) |
|  Denominator: |  |
|  Weighted-average shares outstanding | 14188501 |
|  Less: weighted-average unvested restricted shares and shares subject to repurchase |  |
|  Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 14188501 |
|  Net loss per share attributable to common stockholders, basic and diluted | $(3.37) |

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Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential dilutive securities would have

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been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:

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| | |
|:---|:---|
|  | **December 31,<br>2024** |
|  Redeemable convertible preferred stock | 29107492 |
|  Options to purchase common stock | 7180429 |
|  Common stock warrants | 440133 |
|  Convertible note payable(1) | 6620490 |
|  **Total** | **43348544** |

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(1) The conversion of the convertible note payable into common stock is dependent on the price of shares that may be issued
in connection with an IPO, Special Purpose Acquisition Company transaction or Qualified Financing, as well as the completion of such transactions. The number of shares herein is calculated based on the conversion of the convertible note's
outstanding principal and accrued and unpaid interest as of December 31, 2024 into the Company's common stock at the price of $6.05 per share.

**14. Segment Information** 

The Company operates as one operating and reportable segment focused on researching and developing genetic medicines using CRISPR-based tools to address the root cause of diseases, with a primary focus on cardiometabolic conditions. The Company's chief executive officer serves as the chief operating decision maker (CODM). The CODM evaluates segment performance and allocates resources based on net loss and operating expenses, which are also reported in the statement of operations. This measure is used to monitor spending and compare budgeted versus actual results. Factors considered in determining the single reportable segment include the nature of the Company's operating activities, its organizational and reporting structure, and the type of financial information reviewed by the CODM. All material long-lived assets and revenues are located in the United States.

The CODM reviews cash, cash equivalents and investments as a measure of segment assets. As of December 31, 2024, the Company's cash, cash equivalents and investments were $105.2 million**.**

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The table below summarizes the segment's profit or loss, along with significant expense, which are reviewed by the CODM, categories, for the period presented (in thousands).

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| | |
|:---|:---|
|  | **Year ended<br>December 31,<br>2024** |
|  Collaboration Revenue | $27413 |
|  Significant operating expenses: |  |
|  Research and development: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Internal research expenses | (12324) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; External research and development | (13170) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee-related expenses | (22306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Facilities and overhead costs | (7499) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional and consulting fees | (1780) |
|  General and administrative | (13163) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Operating expenses | (70242) |
|  Interest and other income, net | 6154 |
|  Interest expense | (2381) |
|  Change in fair value of Convertible Note | 1495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss before income taxes | (37561) |
|  Provision for income taxes | (10225) |
|  **Net Loss** | **(47786)** |

---

**15. Subsequent Events** 

On July 4, 2025, the U.S. government enacted the "One Big Beautiful Bill Act," a comprehensive tax reform measure (the "Act"). The Act contains extensive changes to federal tax law, including extensions and modifications of the Tax Cuts and Jobs Act, changes to the international tax framework, and new provisions for accelerated deductions. In accordance with ASC Topic 740, *Income Taxes*, the effects of tax law changes must be recognized in the period of enactment.

The Company has evaluated its subsequent events from December 31, 2024, through July 22, 2025, the date these financial statements were issued and has determined that there are no further subsequent events requiring disclosure in these financial statements. In connection with the Company's submission of the registration statement on Form S-1, the Company updated its evaluation of subsequent events for disclosure purposes through January 9, 2026 , the date these financial statements were reissued and has determined that there are no further subsequent events requiring disclosure in these financial statements.

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**Through and including , 2026 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.**![LOGO](g21355g00m01.jpg)

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| | | |
|:---|:---|:---|
| **Goldman Sachs & Co. LLC** | **J.P. Morgan** | **Leerink Partners** |

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**PART II** 

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13.** **Other expenses of issuance and distribution.** <br>

The following table sets forth all costs and expenses, other than underwriting discounts and commissions, paid or payable by the Registrant in connection with the sale of the common stock being registered. All amounts shown are estimates except for the SEC registration fee, the Financial Industry Regulatory Authority, Inc., or FINRA, filing fee and the Nasdaq listing fee:

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| | |
|:---|:---|
|  SEC registration fee | $\* |
|  FINRA filing fee | \* |
|  Nasdaq listing fee | \* |
|  Printing and engraving expenses | \* |
|  Legal fees and expenses | \* |
|  Accounting fees and expenses | \* |
|  Blue Sky, qualification fees and expenses | \* |
|  Transfer agent and registrar fees and expenses | \* |
|  Miscellaneous expenses | \* |
|  Total | $\* |

---

\* To be completed by amendment.

**Item 14.** **Indemnification of directors and officers.** <br>

Section 145 of the DGCL, authorizes a court to award, or a corporation's board of directors to grant, indemnity to directors and officers under certain circumstances and subject to certain limitations. The terms of Section 145 of the DGCL are sufficiently broad to permit indemnification under certain circumstances for liabilities, including reimbursement of expenses incurred, arising under the Securities Act.

As permitted by the DGCL, the registrant's restated certificate of incorporation to be effective upon the completion of this offering contains provisions that eliminate the personal liability of its directors and officers for monetary damages for any breach of fiduciary duties as a director or officer, except liability for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any breach of the director's or officer's duty of loyalty to the Registrant or its stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to directors, under Section 174 of the DGCL (regarding unlawful dividends and stock purchases); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any transaction from which the director or officer derived an improper personal benefit.

As permitted by the DGCL, the registrant's restated bylaws to be effective upon the completion of this offering, provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the registrant is required to indemnify its directors and officers to the fullest extent permitted by the DGCL, subject to
limited exceptions;

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the registrant may indemnify its other employees and agents as set forth in the DGCL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the registrant is required to advance expenses, as incurred, to its directors and officers in connection with a legal
proceeding to the fullest extent permitted by the DGCL, subject to limited exceptions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the rights conferred in the restated bylaws are not exclusive.

Prior to the completion of this offering, the registrant intends to enter into indemnification agreements with each of its current directors and executive officers to provide these directors and executive officers additional contractual assurances regarding the scope of the indemnification set forth in the registrant's restated certificate of incorporation and restated bylaws and to provide additional procedural protections. There is no pending litigation or proceeding involving a director or executive officer of the registrant for which indemnification is sought. Reference is also made to the underwriting agreement to be filed as Exhibit 1.1 to this registration statement, which provides for the indemnification of executive officers, directors and controlling persons of the registrant against certain liabilities. The indemnification provisions in the registrant's restated certificate of incorporation, restated bylaws and the indemnification agreements entered into or to be entered into between the registrant and each of its directors and executive officers may be sufficiently broad to permit indemnification of the registrant's directors and executive officers for liabilities arising under the Securities Act.

The registrant has directors' and officers' liability insurance for securities matters.

**Item 15.** **Recent sales of unregistered securities.** <br>

The following lists set forth information regarding all securities sold or granted by the registrant from , 2023 through the date of this prospectus that were not registered under the Securities Act, and the consideration, if any, received by the registrant for such securities:

***Equity grants***

*Stock Option Grants*. From , 2023 and through the date of this prospectus, the registrant has granted to its employees, directors, consultants and other service providers options to purchase an aggregate of shares of our common stock under the 2018 Plan, with exercise prices ranging from $ to $ per share. The issuances of the securities described above were deemed to be exempt from registration pursuant to Section 4(a)(2) of the Securities Act or Rule 701 promulgated under the Securities Act as transactions pursuant to compensatory benefit plans. The shares of our common stock issued upon the exercise of options are deemed to be restricted securities for purposes of the Securities Act.

None of the foregoing transactions involved any underwriters, underwriting discounts or commissions or any public offering, and the registrant believes each transaction was exempt from the registration requirements of the Securities Act as stated above. All recipients of the foregoing transactions either received adequate information about the registrant or had access, through their relationships with the registrant, to such information. Furthermore, the registrant affixed appropriate legends to the share certificates and instruments issued in each foregoing transaction setting forth that the securities had not been registered and the applicable restrictions on transfer.

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##### [**Table of Contents**](#toc)
**Item 16.** **Exhibits and financial statement schedules.** <br>

***(a) Exhibits.***

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description of Document** |
| 1.1\* | Form of Underwriting Agreement. |
| 3.1 | Amended and Restated Certificate of Incorporation, as currently in effect. |
| 3.2\* | Form of Restated Certificate of Incorporation to be effective upon the completion of this offering. |
| 3.3 | Bylaws, as currently in effect. |
| 3.4\* | Form of Restated Bylaws to be effective upon the completion of this offering. |
| 4.1\* | Form of Common Stock Certificate. |
| 4.2 | Amended and Restated Investors' Rights Agreement, dated March 17, 2021, by and among the Registrant and certain of its stockholders. |
| 4.3 | Stock Purchase Warrant, dated September 24, 2020, by and between the Registrant and Shellwater & Co. as Nominee for the Regents of the University of California. |
| 4.4 | Convertible Promissory Note, dated May 11, 2023, by and between the Registrant and Eli Lilly and Company. |
| 5.1\* | Opinion of Fenwick & West LLP. |
| 10.1\* | Form of Indemnity Agreement. |
| 10.2 | 2018 Stock Incentive Plan, as amended, and forms of award agreements. |
| 10.3\* | 2026 Equity Incentive Plan, to become effective on the date the registration statement is declared effective, and forms of award agreements. |
| 10.4\* | 2026 Employee Stock Purchase Plan, to become effective on the date the registration statement is declared effective, and forms of award agreements. |
| 10.5\* | Form of Executive Officer Employment Agreement. |
| 10.6\* | Form of Change in Control and Severance Agreement between the Registrant and each of its named executive officers. |
| 10.7†^ | Lease Agreement, as amended, dated August 15, 2019, by and between the Registrant and G&I IX Marina Village Office Park LP. |
| 10.8†^ | Amended and Restated Exclusive License Agreement, dated September 24, 2020, by and between the Registrant and the Regents of the University of California, as amended. |
| 10.9†^ | Development and Option Agreement, dated November 7, 2022, by and between the Registrant and Acuitas Therapeutics Inc., as amended. |
| 10.10†^ | License and Collaboration Agreement, dated May 11, 2023, by and between the Registrant and Prevail Therapeutics, Inc. |
| 10.11†^ | License Agreement, dated June 19, 2023, by and between the Registrant and Genzyme Corporation (a Sanofi affiliate). |
| 10.12 | Scientific Advisory Board Member Agreement, dated April 12, 2021, between the Registrant and David F. Savage. |
| 10.13 | Scientific Advisory Board Member Agreement, dated October 27, 2021, between the Registrant and Jennifer Doudna. |

---

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description of Document** |
| 23.1\* | Consent of Deloitte & Touche LLP. |
| 23.2\* | Consent of Fenwick & West LLP (included in Exhibit 5.1). |
| 24.1\* | Power of Attorney (included in the signature page to this registration statement). |
| 107\* | Filing Fee Table. |

---

\* To be filed by amendment.

† The Registrant has omitted portions of the exhibit (indicated by "[\*]") as permitted under Item 601(b)(10) of
Regulation S-K.

^ The Registrant has omitted schedules and exhibits pursuant to Item 601(a)(5) of Regulation S-K. The Registrant agrees to furnish supplementally a copy of the omitted schedules and exhibits to the SEC upon request.

***(b) Financial statement schedules.***

No financial statement schedules are provided because the information called for is not required or is shown either in the financial statements or notes.

**Item 17.** **Undertakings.** <br>

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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##### [**Table of Contents**](#toc)
**Signatures** 

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Alameda, State of California, on the day of , 2026.

---

| | |
|:---|:---|
| **SCRIBE THERAPEUTICS INC.** | **SCRIBE THERAPEUTICS INC.** |
| By: |  |
|  | Benjamin L. Oakes, Ph.D. |
|  | *Chief Executive Officer* |

---

**Power of Attorney** 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Benjamin L. Oakes, Ph.D. and David L. Parrot, and each one of them, as his or her true and lawful attorneys-in-fact, proxies and agents, each with full power of substitution and resubstitution and full power to act without the other, for him or her in any and all capacities, to sign any and all amendments to this registration statement (including post-effective amendments or any abbreviated registration statement and any amendments thereto filed pursuant to Rule 462(b) increasing the number of securities for which registration is sought), and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact, proxies and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact, proxies and agents, or their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement on Form S-1 has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| <br> Benjamin L. Oakes, Ph.D. | President, Chief Executive Officer and Director <br> *(Principal Executive Officer)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026 |
| <br> David L. Parrot | Chief Financial Officer <br> *(Principal Financial and Accounting Officer)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026 |
| <br> James Watson, M.B.A. | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026 |
| <br> Behzad Aghazadeh, Ph.D. | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026 |
| <br> Carl L. Gordon, Ph.D., CFA | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026 |

---

## Exhibit 3.1

**Exhibit 3.1** 

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

SCRIBE THERAPEUTICS INC.

(Pursuant to Sections 242 and 245 of the

General Corporation Law of the State of Delaware)

Scribe Therapeutics Inc., a corporation organized and existing under and by virtue of the provisions of the General Corporation Law of the State of Delaware (the "**General Corporation Law**"),

**DOES HEREBY CERTIFY:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** That the name of this corporation is Scribe Therapeutics Inc., and that this corporation was originally incorporated pursuant to the General Corporation Law on June 30, 2017 under the name Scribe Therapeutics Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** That the Board of Directors duly adopted resolutions proposing to amend and restate the Certificate of Incorporation of this corporation, declaring said amendment and restatement to be advisable and in the best interests of this corporation and its stockholders, and authorizing the appropriate officers of this corporation to solicit the consent of the stockholders therefor, which resolution setting forth the proposed amendment and restatement is as follows:

**RESOLVED,** that the Certificate of Incorporation of this corporation be amended and restated in its entirety to read as follows:

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

SCRIBE THERAPEUTICS INC.

**FIRST:** The name of this corporation is Scribe Therapeutics Inc. (the "**Corporation**").

**SECOND:** The address of the registered office of the Corporation in the State of Delaware is Corporation Trust Center, 1209 Orange Street, in the City of Wilmington, County of New Castle, Delaware 19801. The name of its registered agent at such address is The Corporation Trust Company.

**THIRD:** The nature of the business or purposes to be conducted or promoted is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law.

**FOURTH:** The total number of shares of all classes of stock which the Corporation shall have authority to issue is (i) 52,000,000 shares of Common Stock, $0.001 par value per share ("**Common Stock**") and (ii) 29,182,118 shares of Preferred Stock, $0.001 par value per share ("**Preferred Stock**").

------

The following is a statement of the designations and the powers, privileges and rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. COMMON STOCK

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>General</u>. The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the rights, powers and preferences of the holders of the Preferred Stock set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Voting</u>. The holders of the Common Stock are entitled to one vote for each share of Common Stock held at all meetings of stockholders (and written actions in lieu of meetings). There shall be no cumulative voting. The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by (in addition to any vote of the holders of one or more series of Preferred Stock that may be required by the terms of the Certificate of Incorporation) the affirmative vote of the holders of shares of capital stock of the Corporation representing a majority of the votes represented by all outstanding shares of capital stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. PREFERRED STOCK

16,600,000 shares of Preferred Stock of the Corporation are designated "**Series B Preferred Stock**," 12,150,003 shares of Preferred Stock are designated "**Series A Preferred Stock**," 155,977 shares of Preferred Stock are designated "**Series A-1 Preferred Stock**," and 276,138 shares of the Preferred Stock are designated "**Series A-2 Preferred Stock**" with the following rights, preferences, powers, privileges and restrictions, qualifications and limitations. Unless otherwise indicated, references to "sections" or "subsections" in this Part B of this Article Fourth refer to sections and subsections of Part B of this Article Fourth. The Series B Preferred Stock, Series A Preferred Stock, Series A-1 Preferred Stock and the Series A-2 Preferred Stock are collectively referred to as the "**Preferred Stock**" and the Series A Preferred Stock, Series A-1 Preferred Stock and the Series A-2 Preferred Stock are collectively referred to as the "**Series A Preferred Stock**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Dividends</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Holders of Preferred Stock, in preference to the holders of Common Stock, shall be entitled to receive, but only out of funds that are legally available therefor, cash dividends at the rate of six percent (6%) of the applicable Original Issue Price (as defined below) per annum on each outstanding share of Preferred Stock. Such dividends shall be payable only when, as and if declared by the Board of Directors (the "**Board**") and shall be non-cumulative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The "**Original Issue Price**" of (i) the Series A Preferred Stock shall be $1.64609 per share (as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to such shares after the filing date hereof), (ii) the Series A-1 Preferred Stock shall be $1.31687 per share (as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to such shares after the filing date hereof), (iii) the Series A-2 Preferred Stock shall be $1.81069 per share (as adjusted for any stock dividends,

------

combinations, splits, recapitalizations and the like with respect to such shares after the filing date hereof) and (iv) the Series B Preferred Stock shall be $6.0513 per share (as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to such shares after the filing date hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 So long as any shares of Preferred Stock are outstanding, the Corporation shall not pay or declare any dividend (whether in cash or property), or make any other distribution on the Common Stock, or purchase, redeem or otherwise acquire for value any shares of Common Stock, until all dividends as set forth in <u>Subsection</u> <u>1.1</u> above on the Preferred Stock shall have been paid or declared and set apart, except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.1 acquisitions of Common Stock by the Corporation pursuant to agreements that permit the Corporation to repurchase such shares at no more than cost upon termination of services to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.2 acquisitions of Common Stock in exercise of the Corporation's right of first refusal to repurchase such shares; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.3 distributions to holders of Common Stock in accordance with <u>Section</u> <u>2</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 In the event dividends are declared, paid or set aside on any share of Common Stock, the Corporation shall first or simultaneously declare, pay or set aside an additional dividend on all outstanding shares of Preferred Stock in a per share amount equal (on an as-if-converted to Common Stock basis) to the amount declared, paid or set aside for each share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 The provisions of <u>Subsections 1.3</u> and 1.4 shall not apply to a dividend payable solely in Common Stock to which the provisions of <u>Section</u> <u>4</u> hereof are applicable, or any repurchase of any outstanding securities of the Corporation that is approved by (i) the Board, including at least one (1) Preferred Director and (ii) the holders of Preferred Stock as may be required by this Amended and Restated Certificate of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Liquidation, Dissolution or Winding Up; Certain Mergers, Consolidations and Asset Sales</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Preferential Payments to Holders of Preferred Stock</u>. Upon any liquidation, dissolution, or winding up of the Corporation, whether voluntary or involuntary, or Deemed Liquidation Event (as defined below), before any distribution or payment shall be made to the holders of any Common Stock, the holders of Preferred Stock shall be entitled to be paid out of the assets of the Corporation legally available for distribution (or the consideration received by the Corporation or its stockholders in a Deemed Liquidation Event) for each share of Preferred Stock held by them, an amount per share of Preferred Stock equal to the greater of (i) the applicable Original Issue Price plus all declared and unpaid dividends on such share of Preferred Stock or (ii) such amount per share as would have been payable had all shares of such series of Preferred Stock been converted into Common Stock pursuant to <u>Section</u> <u>4</u> immediately prior to such liquidation, dissolution, winding up or Deemed Liquidation Event. If, upon any such liquidation, dissolution, or winding up of the Corporation or Deemed Liquidation Event, the assets of the

------

Corporation shall be insufficient to make payment in full to all holders of Preferred Stock of the liquidation preference set forth in this <u>Subsection</u> <u>2.1</u>, then such assets (or consideration) shall be distributed among the holders of Preferred Stock at the time outstanding, ratably in proportion to the full amounts to which they would otherwise be respectively entitled under this <u>Subsection</u> <u>2.1</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Payments to Holders of Common Stock</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, after the payment in full of all preferential amounts required to be paid to the holders of shares of Preferred Stock, the remaining assets of the Corporation (or the consideration received by the Corporation or its stockholders in a Deemed Liquidation Event) available for distribution to its stockholders shall be distributed among the holders of shares of Common Stock, pro rata based on the number of shares held by each such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Deemed Liquidation Events</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1 <u>Definition</u>. Each of the following events shall be considered a "**Deemed Liquidation Event**" unless the holders of at least a majority of the outstanding shares of Preferred Stock, voting together as a single-class on an as-converted basis, which majority shall include at least a majority of the Series B Preferred Stock (the "**Requisite Majority**"), elect otherwise by written notice sent to the Corporation at least ten (10) days prior to the effective date of any such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a merger or consolidation in which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation is a constituent party or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to
such merger or consolidation,

except (A) any such merger or consolidation involving the Corporation or a subsidiary in which the shares of capital stock of the Corporation outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the capital stock of (1) the surviving or resulting corporation; or (2) if the surviving or resulting corporation is a wholly owned subsidiary of another corporation immediately following such merger or consolidation, the parent corporation of such surviving or resulting corporation or (B) a bona fide venture capital financing effected for capital raising purposes; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation and its subsidiaries taken as a whole, or the sale or disposition (whether by merger, consolidation or otherwise, and whether in a single transaction or a series of related transactions) of one or more subsidiaries of the Corporation if substantially all of the assets of the Corporation and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Corporation.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2 <u>Effecting a Deemed Liquidation Event</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall not have the power to effect a Deemed Liquidation Event referred to in <u>Subsection</u> <u>2.3.1(a)(i)</u> unless the agreement or plan of merger or consolidation for such transaction (the "**Merger Agreement**") provides that the consideration payable to the stockholders of the Corporation in such Deemed Liquidation Event shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Subsections 2.1</u> and <u>2.2</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a Deemed Liquidation Event referred to in <u>Subsection</u> <u>2.3.1(a)(ii)</u> or <u>2.3.1(b)</u>, if the Corporation does not effect a dissolution of the Corporation under the General Corporation Law within ninety (90) days after such Deemed Liquidation Event, then (i) the Corporation shall send a written notice (the "**Redemption Notice**") to each holder of Preferred Stock no later than the ninetieth (90th) day after the Deemed Liquidation Event advising such holders of their right (and the requirements to be met to secure such right) pursuant to the terms of the following clause to require the redemption of such shares of Preferred Stock, and (ii) if the Requisite Majority so requests in a written instrument delivered to the Corporation not later than one hundred twenty (120) days after such Deemed Liquidation Event, the Corporation shall use the consideration received by the Corporation for such Deemed Liquidation Event (net of any retained liabilities associated with the assets sold or technology licensed, as determined in good faith by the Board including at least two (2) Preferred Directors), together with any other assets of the Corporation available for distribution to its stockholders, all to the extent permitted by Delaware law governing distributions to stockholders (the "Available Proceeds"), on the one hundred fiftieth (150th) day after such Deemed Liquidation Event (the "**Redemption Date**"), to redeem all outstanding shares of Preferred Stock at a price per share equal to the liquidation preference amounts applicable to such shares of Preferred Stock set forth in <u>Subsection</u> <u>2.1</u> above (the "**Redemption Price**"). Notwithstanding the foregoing, in the event of a redemption pursuant to the preceding sentence, if the Available Proceeds are not sufficient to redeem all outstanding shares of Preferred Stock, the Corporation shall ratably redeem each holder's shares of Preferred Stock to the fullest extent of such Available Proceeds, and shall redeem the remaining shares as soon as it may lawfully do so under Delaware law governing distributions to stockholders. Prior to the distribution or redemption provided for in this <u>Subsection</u> <u>2.3.2(b)</u>, the Corporation shall not expend or dissipate the consideration received for such Deemed Liquidation Event, except to discharge expenses incurred in connection with such Deemed Liquidation Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Redemption Notice</u>. Each Redemption Notice shall state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the number of shares of Preferred Stock held by the holder that the Corporation shall redeem on the Redemption Date
specified in the Redemption Notice;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Redemption Date and the Redemption Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the date upon which the holder's right to convert such shares terminates (as determined in accordance with <u>Subsection 4.1</u>); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for holders of shares in certificated form, that the holder is to surrender to the Corporation, in the manner and at the
place designated, his, her or its certificate or certificates representing the shares of Preferred Stock to be redeemed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Surrender of Certificates; Payment</u>. On or before the applicable Redemption Date, each holder of shares of Preferred Stock to be redeemed on such Redemption Date, unless such holder has exercised his, her or its right to convert such shares as provided in <u>Section</u> <u>4</u>, shall, if a holder of shares in certificated form, surrender the certificate or certificates representing such shares (or, if such registered holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation, in the manner and at the place designated in the Redemption Notice, and thereupon the Redemption Price for such shares shall be payable to the order of the person whose name appears on such certificate or certificates as the owner thereof. In the event less than all of the shares of Preferred Stock represented by a certificate are redeemed, a new certificate, instrument, or book entry representing the unredeemed shares of Preferred Stock shall promptly be issued to such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Rights Subsequent to Redemption</u>. If the Redemption Notice shall have been duly given, and if on the applicable Redemption Date the Redemption Price payable upon redemption of the shares of Preferred Stock to be redeemed on such Redemption Date is paid or tendered for payment or deposited with an independent payment agent so as to be available therefor in a timely manner, then notwithstanding that any certificates evidencing any of the shares of Preferred Stock so called for redemption shall not have been surrendered, dividends with respect to such shares of Preferred Stock shall cease to accrue after such Redemption Date and all rights with respect to such shares shall forthwith after the Redemption Date terminate, except only the right of the holders to receive the Redemption Price without interest upon surrender of any such certificate or certificates therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3 <u>Amount Deemed Paid or Distributed</u>. The amount deemed paid or distributed to the holders of capital stock of the Corporation upon any such merger, consolidation, sale, transfer, exclusive license, other disposition or redemption shall be the cash or the value of the property, rights or securities paid or distributed to such holders by the Corporation or the acquiring person, firm or other entity. The value of such property, rights or securities shall be determined in good faith by the Board of Directors of the Corporation.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.4 <u>Allocation of Escrow and Contingent Consideration</u>. In the event of a Deemed Liquidation Event pursuant to <u>Subsection</u> <u>2.3.1</u>, if any portion of the consideration payable to the stockholders of the Corporation is payable only upon satisfaction of contingencies (the "**Additional Consideration**"), the definitive agreement for such transaction shall provide that (a) the portion of such consideration that is not Additional Consideration (such portion, the "**Initial Consideration**") shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Subsections 2.1</u> and <u>2.2</u> as if the Initial Consideration were the only consideration payable in connection with such Deemed Liquidation Event; and (b) any Additional Consideration which becomes payable to the stockholders of the Corporation upon satisfaction of such contingencies shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Subsections 2.1</u> and <u>2.2</u> after taking into account the previous payment of the Initial Consideration as part of the same transaction. For the purposes of this <u>Subsection</u> <u>2.3.4</u>, consideration placed into escrow or retained as holdback to be available for satisfaction of indemnification or similar obligations in connection with such Deemed Liquidation Event shall be deemed to be Additional Consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Voting</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>General</u>. On any matter presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of meeting), each holder of outstanding shares of Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of the Certificate of Incorporation, holders of Preferred Stock shall vote together with the holders of Common Stock as a single class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Election of Directors</u>. The holders of record of the shares of Series B Preferred Stock exclusively and as a separate class, shall be entitled to elect two (2) directors of the Corporation (the "**Series B Directors**"), the holders of record of the shares of Series A Preferred Stock, exclusively and as a separate class, shall be entitled to elect one (1) director of the Corporation (the "**Series A Director**" and together with the Series B Directors, the "**Preferred Directors**") and the holders of record of the shares of Common Stock, exclusively and as a separate class, shall be entitled to elect two (2) directors of the Corporation. Any director elected as provided in the preceding sentence may be removed without cause by, and only by, the affirmative vote of the holders of the shares of the class or series of capital stock entitled to elect such director or directors, given either at a special meeting of such stockholders duly called for that purpose or pursuant to a written consent of stockholders. If the holders of shares of Series B Preferred Stock, Series A Preferred Stock or Common Stock, as the case may be, fail to elect a sufficient number of directors to fill all directorships for which they are entitled to elect directors, voting exclusively and as a separate class, pursuant to the first sentence of this <u>Subsection</u> <u>3.2</u>, then any directorship not so filled shall remain vacant until such time as the holders of shares of Series B Preferred Stock, Series A Preferred Stock or Common Stock, as the case may be, elect a person to fill such directorship by vote or written consent in lieu of a meeting; and no such directorship may be filled by stockholders of the Corporation other than by the stockholders of the Corporation that are entitled to elect a person to fill such directorship, voting exclusively and as a separate class. The holders of record of the shares of Common Stock and of any other class or series of voting

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stock (including the Preferred Stock), exclusively and voting together as a single class, shall be entitled to elect the balance of the total number of directors of the Corporation. At any meeting held for the purpose of electing a director, the presence in person or by proxy of the holders of a majority of the outstanding shares of the class or series entitled to elect such director shall constitute a quorum for the purpose of electing such director. Except as otherwise provided in this <u>Subsection</u> <u>3.2</u>, a vacancy in any directorship filled by the holders of any class or series shall be filled only by vote or written consent in lieu of a meeting of the holders of such class or series or by any remaining director or directors elected by the holders of such class or series pursuant to this <u>Subsection</u> <u>3.2</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Preferred Stock Protective Provisions</u>. At any time when at least 7,295,530 shares of Preferred Stock are outstanding (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to any series of Preferred Stock), the Corporation shall not, either directly or indirectly by amendment, merger, consolidation, recapitalization, reclassification or otherwise, do any of the following without (in addition to any other vote required by law or the Certificate of Incorporation) the written consent or affirmative vote of the Requisite Majority, given in writing or by vote at a meeting, and any such act or transaction entered into without such consent or vote shall be null and void *ab initio,* and of no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1 liquidate, dissolve or wind-up the business and affairs of the Corporation, effect any merger or consolidation or any other Deemed Liquidation Event, reclassify or recapitalize the capital stock of the Corporation, or consent to any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.2 amend, alter or repeal any provision of the Certificate of Incorporation or Bylaws of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.3 increase the authorized number of shares of Preferred Stock or Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4 create, or authorize the creation of, or issue or obligate itself to issue shares of, any additional class or series of capital stock unless the same ranks junior to the Preferred Stock with respect to the distribution of assets on the liquidation, dissolution or winding up of the Corporation, the payment of dividends and rights of redemption, or increase the authorized number of shares of Preferred Stock or increase the authorized number of shares of any additional class or series of capital stock unless the same ranks junior to the Preferred Stock with respect to the distribution of assets on the liquidation, dissolution or winding up of the Corporation, the payment of dividends and rights of redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.5 (i) reclassify, alter or amend any existing security of the Corporation that is pari passu with the Preferred Stock in respect of the distribution of assets on the liquidation, dissolution or winding up of the Corporation, the payment of dividends or rights of redemption, if such reclassification, alteration or amendment would render such other security senior to the Preferred Stock in respect of any such right, preference, or privilege or (ii) reclassify, alter or amend any existing security of the Corporation that is junior to the Preferred Stock in respect of the distribution of assets on the liquidation, dissolution or winding up of the Corporation, the payment of dividends or rights of redemption, if such reclassification, alteration or amendment would render such other security senior to or pari passu with the Preferred Stock in respect of any such right, preference or privilege;

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.6 purchase or redeem (or permit any subsidiary to purchase or redeem) or pay or declare any dividend or make any distribution on, any shares of capital stock of the Corporation other than (i) redemptions of or dividends or distributions on the Preferred Stock as expressly authorized herein, (ii) dividends or other distributions payable on the Common Stock solely in the form of additional shares of Common Stock and (iii) repurchases of stock from former employees, officers, directors, consultants or other persons who performed services for the Corporation or any subsidiary in connection with the cessation of such employment pursuant to agreements approved by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.7 create, or authorize the creation of, or issue, or authorize the issuance of any debt security or create any lien or security interest (except for purchase money liens or statutory liens of landlords, mechanics, materialmen, workmen, warehousemen and other similar persons arising or incurred in the ordinary course of business) or incur other indebtedness for borrowed money, including but not limited to obligations and contingent obligations under guarantees, or permit any subsidiary to take any such action with respect to any debt security lien, security interest or other indebtedness for borrowed money, if the aggregate indebtedness of the Corporation and its subsidiaries for borrowed money following such action would exceed $1,000,000, unless such debt security has received the prior approval of the Board of Directors, including the approval of at least two (2) Preferred Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.8 enter into any sale of assets by the Corporation or license of intellectual property of the Corporation outside the ordinary course of its business, unless approved by the Board in such case where the sale or license does not constitute a Deemed Liquidation Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.9 enter into any interested party transaction unless approved by the Board (including a majority of the disinterested directors);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.10 increase the shares of Common Stock reserved for issuance pursuant to any stock option or equity incentive plan or create any new stock option or equity incentive plan of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.11 increase or decrease the authorized number of directors constituting the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.12 cause or permit the Corporation or any of its subsidiaries to sell, issue, sponsor, create or distribute any digital tokens, cryptocurrency or other blockchain-based assets (collectively, "Tokens"), including through a pre-sale, initial coin offering, token distribution event or crowdfunding, or through the issuance of any instrument convertible into or exchangeable for Tokens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.13 create, or hold capital stock in, any subsidiary (a "Subsidiary") that is not wholly owned (either directly or through one (1) or more other subsidiaries) by the Corporation, or permit any subsidiary to create, or authorize the creation of, or issue or obligate itself to issue, any shares of any class or series of capital stock, or sell, transfer

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or otherwise dispose of any capital stock of any direct or indirect subsidiary of the Corporation, or permit any direct or indirect subsidiary to sell, lease, transfer, exclusively license or otherwise dispose (in a single transaction or series of related transactions) of all or substantially all of the assets of such subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.14 enter into (i) the settlement of the initial trade of shares of common stock by means of an effective registration statement under the Securities Act that registers shares of existing capital stock of the Corporation for resale, or (ii) a merger with a special purpose acquisition company or its subsidiary; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.15 take an action with respect to any Subsidiary that, if taken by the Corporation, would require approval pursuant to this <u>Section</u> <u>3.3</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;4. <u>Optional Conversion</u>.

The holders of the Preferred Stock shall have conversion rights as follows (the "**Conversion Rights**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Right to Convert</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1 <u>Conversion Ratio</u>. Each share of Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and non-assessable shares of Common Stock as is determined by dividing the Original Issue Price by the Conversion Price (as defined below) in effect at the time of conversion. The conversion rate in effect at any time for conversion of the Preferred Stock (the "**Conversion Rate**") shall be the quotient obtained by dividing the applicable Original Issue Price of the Preferred Stock by the applicable Conversion Price (as defined below) of the Preferred Stock. The conversion price for each series of Preferred Stock shall initially be the applicable Original Issue Price of such series of Preferred Stock (the "**Conversion Price**"). Such initial Conversion Price, and the rate at which shares of Preferred Stock may be converted into shares of Common Stock, shall be subject to adjustment as provided below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2 <u>Termination of Conversion Rights</u>. In the event of a liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event, the Conversion Rights shall terminate at the close of business on the last full day preceding the date fixed for the payment of any such amounts distributable on such event to the holders of Preferred Stock; provided that the foregoing termination of Conversion Rights shall not affect the amounts(s) otherwise paid or payable in accordance with <u>Section</u> <u>2.1</u> to holders of Preferred Stock pursuant to such liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Fractional Shares</u>. No fractional shares of Common Stock shall be issued upon conversion of the Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be entitled, the Corporation shall pay cash equal to such fraction multiplied by the fair market value of a share of Common Stock as determined in good faith by the Board, including at least two (2) Preferred Directors. Whether or not fractional shares would be issuable upon such conversion shall be determined on the basis of the total number of shares of Preferred Stock the holder is at the time converting into Common Stock and the aggregate number of shares of Common Stock issuable upon such conversion.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Mechanics of Conversion</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1 <u>Notice of Conversion</u>. In order for a holder of Preferred Stock to voluntarily convert shares of Preferred Stock into shares of Common Stock, such holder shall (a) provide written notice to the Corporation's transfer agent at the office of the transfer agent for the Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent) that such holder elects to convert all or any number of such holder's shares of Preferred Stock and, if applicable, any event on which such conversion is contingent and (b), if such holder's shares are certificated, surrender the certificate or certificates for such shares of Preferred Stock (or, if such registered holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate), at the office of the transfer agent for the Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent). Such notice shall state such holder's name or the names of the nominees in which such holder wishes the shares of Common Stock to be issued. If required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or his, her or its attorney duly authorized in writing. The close of business on the date of receipt by the transfer agent (or by the Corporation if the Corporation serves as its own transfer agent) of such notice and, if applicable, certificates (or lost certificate affidavit and agreement) shall be the time of conversion (the "**Conversion Time**"), and the shares of Common Stock issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date. The Corporation shall, as soon as practicable after the Conversion Time (i) issue and deliver to such holder of Preferred Stock, or to his, her or its nominees, a certificate or certificates for the number of full shares of Common Stock issuable upon such conversion in accordance with the provisions hereof and a certificate for the number (if any) of the shares of Preferred Stock represented by the surrendered certificate that were not converted into Common Stock, (ii) pay in cash such amount as provided in <u>Subsection</u> <u>4.2</u> in lieu of any fraction of a share of Common Stock otherwise issuable upon such conversion and (iii) pay all declared but unpaid dividends on the shares of Preferred Stock converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2 <u>Reservation of Shares</u>. The Corporation shall at all times when the Preferred Stock shall be outstanding, reserve and keep available out of its authorized but unissued capital stock, for the purpose of effecting the conversion of the Preferred Stock, such number of its duly authorized shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding Preferred Stock; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Preferred Stock, the Corporation shall take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes, including, without limitation, engaging in best efforts to obtain the requisite stockholder approval of any necessary amendment to the Certificate of Incorporation. Before taking any action which would cause an adjustment reducing the Conversion Price below the then par value of the shares of Common Stock issuable upon conversion of the Preferred Stock, the Corporation will take any corporate action which may, in the opinion of its counsel, be necessary in order that the Corporation may validly and legally issue fully paid and non-assessable shares of Common Stock at such adjusted Conversion Price.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3 <u>Effect of Conversion</u>. All shares of Preferred Stock which shall have been surrendered for conversion as herein provided shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease and terminate at the Conversion Time, except only the right of the holders thereof to receive shares of Common Stock in exchange therefor, to receive payment in lieu of any fraction of a share otherwise issuable upon such conversion as provided in <u>Subsection</u> <u>4.2</u> and to receive payment of any dividends declared but unpaid thereon. Any shares of Preferred Stock so converted shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.4 <u>No Further Adjustment</u>. Upon any such conversion, no adjustment to the Conversion Price shall be made for any declared but unpaid dividends on the Preferred Stock surrendered for conversion or on the Common Stock delivered upon conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.5 <u>Taxes</u>. The Corporation shall pay any and all issue and other similar taxes that may be payable in respect of any issuance or delivery of shares of Common Stock upon conversion of shares of Preferred Stock pursuant to this <u>Section</u> <u>4</u>. The Corporation shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of shares of Common Stock in a name other than that in which the shares of Preferred Stock so converted were registered, and no such issuance or delivery shall be made unless and until the person or entity requesting such issuance has paid to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Adjustments to Conversion Price for Diluting Issues</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1 <u>Special Definitions</u>. For purposes of this Article Fourth, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Option**" shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Series B Original Issue Date**" shall mean the date on which the first share of Series B Preferred Stock was issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Convertible Securities**" shall mean any evidences of indebtedness, shares or other securities directly or indirectly convertible into or exchangeable for Common Stock, but excluding Options.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Additional Shares of Common Stock**" shall mean all shares of Common Stock issued (or, pursuant to <u>Subsection</u> <u>4.4.3</u> below, deemed to be issued) by the Corporation after the Series B Original Issue Date, other than (1) the following shares of Common Stock and (2) shares of Common Stock deemed issued pursuant to the following Options and Convertible Securities (clauses (1) and (2), collectively, "**Exempted Securities**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shares of Common Stock, Options or Convertible Securities issued by reason of a dividend, stock split, split-up or other distribution on shares of Common Stock that is covered by <u>Subsection 4.5</u>, <u>4.6</u>, <u>4.7</u> or <u>4.8</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shares of Common Stock or Options issued to employees or directors of, or consultants or advisors to, the Corporation or
any of its subsidiaries pursuant to a plan, agreement or arrangement approved by the Board, including at least two (2) Preferred Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shares of Common Stock issued upon conversion of any shares of the Corporation's Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Convertible Securities issued pursuant to the conversion or exercise of convertible or exercisable securities outstanding
as of the Series B Original Issue Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) shares of Common Stock or Convertible Securities issued in connection with any license agreement or technology
acquisition approved by the Board, including at least two (2) Preferred Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) shares of Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock
actually issued upon the conversion or exchange of Convertible Securities, in each case provided such issuance is pursuant to the terms of such Option or Convertible Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) shares of Common Stock, Options or Convertible Securities issued to banks, equipment lessors or other financial
institutions, or to real property lessors, pursuant to a debt financing, equipment leasing or real property leasing transaction approved by the Board, including at least two (2) Preferred Directors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) shares of Common Stock, Options or Convertible Securities issued to suppliers or third party service providers in
connection with the provision of goods or services pursuant to transactions approved by the Board, including at least two (2) Preferred Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) shares of Common Stock issued or issuable (i) in an underwritten public offering before which or in connection with
which all outstanding shares of Preferred Stock will be automatically converted to Common Stock, or (ii) upon exercise of warrants or rights granted to underwriters in connection with such a public offering, in each case subject to the approval
requirements set forth in <u>Section</u> <u>3.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) shares of Common Stock, Options or Convertible Securities issued pursuant to strategic transactions or the acquisition of
another corporation by the Corporation by merger, purchase of substantially all of the assets or other reorganization or to a joint venture agreement, <u>provided</u> that such issuances are approved by the Board, including at least two
(2) Preferred Directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) shares of Common Stock, Options or Convertible Securities issued in connection with any transaction where such securities
so issued are excepted from the definition "Additional Shares of Common Stock" by the affirmative vote of a Requisite Majority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2 <u>No Adjustment of Conversion Price</u>. No adjustment in the Conversion Price shall be made as the result of the issuance or deemed issuance of Additional Shares of Common Stock if the Corporation receives written notice from the Requisite Majority agreeing that no such adjustment shall be made as the result of the issuance or deemed issuance of such Additional Shares of Common Stock; provided, that any waiver of an adjustment to the Conversion Price for the Series B Preferred Stock shall require written notice from the holders of at least a majority of the then outstanding shares of Series B Preferred Stock, voting as a separate class, agreeing that no such adjustment shall be made as the result of the issuance or deemed issuance of such Additional Shares of Common Stock.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.3 <u>Deemed Issue of Additional Shares of Common Stock</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Corporation at any time or from time to time after the Series B Original Issue Date shall issue any Options or Convertible Securities (excluding Options or Convertible Securities which are themselves Exempted Securities) or shall fix a record date for the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability, convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in case such a record date shall have been fixed, as of the close of business on such record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment to the Conversion Price pursuant to the terms of <u>Subsection</u> <u>4.4.4</u>, are revised as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase or decrease in the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any such Option or Convertible Security or (2) any increase or decrease in the consideration payable to the Corporation upon such exercise, conversion and/or exchange, then, effective upon such increase or decrease becoming effective, the Conversion Price computed upon the original issue of such Option or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted to such Conversion Price as would have obtained had such revised terms been in effect upon the original date of issuance of such Option or Convertible Security. Notwithstanding the foregoing, no readjustment pursuant to this clause (b) shall have the effect of increasing the Conversion Price to an amount which exceeds the lower of (i) the Conversion Price in effect immediately prior to the original adjustment made as a result of the issuance of such Option or Convertible Security, or (ii) the Conversion Price that would have resulted from any issuances of Additional Shares of Common Stock (other than deemed issuances of Additional Shares of Common Stock as a result of the issuance of such Option or Convertible Security) between the original adjustment date and such readjustment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the terms of any Option or Convertible Security (excluding Options or Convertible Securities which are themselves Exempted Securities), the issuance of which did not result in an adjustment to the Conversion Price pursuant to the terms of <u>Subsection</u> <u>4.4.4</u> (either because the consideration per share (determined pursuant to <u>Subsection</u> <u>4.4.5)</u> of the Additional Shares of Common Stock subject thereto was equal to or greater than the Conversion Price then in effect, or because such Option or Convertible Security was issued before the Series B Original Issue Date), are revised after the Series B Original Issue Date as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase in the number of shares of Common Stock issuable upon the exercise,

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conversion or exchange of any such Option or Convertible Security or (2) any decrease in the consideration payable to the Corporation upon such exercise, conversion or exchange, then such Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject thereto (determined in the manner provided in <u>Subsection</u> <u>4.4.3(a)</u> shall be deemed to have been issued effective upon such increase or decrease becoming effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security (or portion thereof) which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the Conversion Price pursuant to the terms of <u>Subsection</u> <u>4.4.4</u>, the Conversion Price shall be readjusted to such Conversion Price as would have obtained had such Option or Convertible Security (or portion thereof) never been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, is calculable at the time such Option or Convertible Security is issued or amended but is subject to adjustment based upon subsequent events, any adjustment to the Conversion Price provided for in this <u>Subsection</u> <u>4.4.3</u> shall be effected at the time of such issuance or amendment based on such number of shares or amount of consideration without regard to any provisions for subsequent adjustments (and any subsequent adjustments shall be treated as provided in clauses (b) and (c) of this <u>Subsection</u> <u>4.4.3)</u>. If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, cannot be calculated at all at the time such Option or Convertible Security is issued or amended, any adjustment to the Conversion Price that would result under the terms of this <u>Subsection 4.4.3</u> at the time of such issuance or amendment shall instead be effected at the time such number of shares and/or amount of consideration is first calculable (even if subject to subsequent adjustments), assuming for purposes of calculating such adjustment to the Conversion Price that such issuance or amendment took place at the time such calculation can first be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.4 <u>Adjustment of Conversion Price Upon Issuance of Additional Shares of Common Stock</u>. In the event the Corporation shall at any time or from time to time after the Series B Original Issue Date issue Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to <u>Subsection</u> <u>4.4.3)</u>, without consideration or for a consideration per share less than the Conversion Price in effect immediately prior to such issuance or deemed issuance, then the Conversion Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest one-hundredth of a cent) determined in accordance with the following formula:

CP<sub>2</sub> = CP<sub>1</sub>\* (A + B) ÷ (A + C).

For purposes of the foregoing formula, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "CP<sub>2</sub>" shall mean the Conversion Price in effect immediately after such issuance or deemed issuance of Additional Shares of Common Stock

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "CP<sub>1</sub>" shall mean the Conversion Price in effect immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "A" shall mean the number of shares of Common Stock outstanding immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock (treating for this purpose as outstanding all shares of Common Stock issuable upon exercise of Options outstanding immediately prior to such issue or upon conversion or exchange of Convertible Securities (including the Preferred Stock) outstanding (assuming exercise of any outstanding Options therefor) immediately prior to such issue);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "B" shall mean the number of shares of Common Stock that would have been issued if such Additional Shares of Common Stock had been issued or deemed issued at a price per share equal to CM (determined by dividing the aggregate consideration received by the Corporation in respect of such issue by CP<sub>1</sub>); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "C" shall mean the number of such Additional Shares of Common Stock issued in such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.5 <u>Determination of Consideration</u>. For purposes of this <u>Subsection</u> <u>4.4</u>, the consideration received by the Corporation for the issuance or deemed issuance of any Additional Shares of Common Stock shall be computed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Cash and Property</u>: Such consideration shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) insofar as it consists of cash, be computed at the aggregate amount of cash received by the Corporation, excluding
amounts paid or payable for accrued interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such
issue, as determined in good faith by the Board including at least two (2) Preferred Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the
Corporation for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (i) and (ii) above, as determined in good faith by the Board including at least two (2) Preferred
Directors.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Options and Convertible Securities</u>. The consideration per share received by the Corporation for Additional Shares of Common Stock deemed to have been issued pursuant to <u>Subsection</u> <u>4.4.3</u>, relating to Options and Convertible Securities, shall be determined by dividing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The total amount, if any, received or receivable by the Corporation as consideration for the issue of such Options or
Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to
the Corporation upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or
exchange of such Convertible Securities, by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any
provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of
such Options for Convertible Securities and the conversion or exchange of such Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.6 <u>Multiple Closing Dates</u>. In the event the Corporation shall issue on more than one date Additional Shares of Common Stock that are a part of one transaction or a series of related transactions and that would result in an adjustment to the Conversion Price pursuant to the terms of <u>Subsection</u> <u>4.4.4</u>, and such issuance dates occur within a period of no more than ninety (90) days from the first such issuance to the final such issuance, then, upon the final such issuance, the Conversion Price shall be readjusted to give effect to all such issuances as if they occurred on the date of the first such issuance (and without giving effect to any additional adjustments as a result of any such subsequent issuances within such period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Adjustment for Stock Splits and Combinations</u>. If the Corporation shall at any time or from time to time after the Series B Original Issue Date effect a subdivision of the outstanding Common Stock, the Conversion Price in effect immediately before that subdivision shall be proportionately decreased so that the number of shares of Common Stock issuable on conversion of each share of such series shall be increased in proportion to such increase in the

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aggregate number of shares of Common Stock outstanding. If the Corporation shall at any time or from time to time after the Series B Original Issue Date combine the outstanding shares of Common Stock, the Conversion Price in effect immediately before the combination shall be proportionately increased so that the number of shares of Common Stock issuable on conversion of each share of such series shall be decreased in proportion to such decrease in the aggregate number of shares of Common Stock outstanding. Any adjustment under this subsection shall become effective at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Adjustment for Certain Dividends and Distributions</u>. In the event the Corporation at any time or from time to time after the Series B Original Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable on the Common Stock in additional shares of Common Stock, then and in each such event the Conversion Price in effect immediately before such event shall be decreased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the Conversion Price then in effect by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

Notwithstanding the foregoing (a) if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Conversion Price shall be adjusted pursuant to this subsection as of the time of actual payment of such dividends or distributions; and (b) that no such adjustment shall be made if the holders of Preferred Stock simultaneously receive a dividend or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock as they would have received if all outstanding shares of Preferred Stock had been converted into Common Stock on the date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Adjustments for Other Dividends and Distributions</u>. In the event the Corporation at any time or from time to time after the Series B Original Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Corporation (other than a distribution of shares of Common Stock in respect of outstanding shares of Common Stock) or in other property and the provisions of <u>Section</u> <u>1</u> do not apply to such dividend or distribution, then and in each such event the holders of Preferred Stock shall receive, simultaneously with the distribution to the holders of Common Stock, a dividend or other distribution of such securities or other property in an amount equal to the amount of such securities or other property as they would have received if all outstanding shares of Preferred Stock had been converted into Common Stock on the date of such event.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Adjustment for Merger or Reorganization. etc.</u> Subject to the provisions of <u>Subsection</u> <u>2.3</u>, if there shall occur any reorganization, recapitalization, reclassification, consolidation or merger involving the Corporation in which the Common Stock (but not the Preferred Stock) is converted into or exchanged for securities, cash or other property (other than a transaction covered by <u>Subsections 4.4</u>, <u>4.6</u> or <u>4.7</u>), then, following any such reorganization, recapitalization, reclassification, consolidation or merger, each share of Preferred Stock shall thereafter be convertible in lieu of the Common Stock into which it was convertible prior to such event into the kind and amount of securities, cash or other property which a holder of the number of shares of Common Stock of the Corporation issuable upon conversion of one share of Preferred Stock immediately prior to such reorganization, recapitalization, reclassification, consolidation or merger would have been entitled to receive pursuant to such transaction; and, in such case, appropriate adjustment (as determined in good faith by the Board including at least two (2) Preferred Directors) shall be made in the application of the provisions in this <u>Section</u> <u>4</u> with respect to the rights and interests thereafter of the holders of the Preferred Stock, to the end that the provisions set forth in this <u>Section</u> <u>4</u> (including provisions with respect to changes in and other adjustments of the Conversion Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities or other property thereafter deliverable upon the conversion of the Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Certificate as to Adjustments</u>. Upon the occurrence of each adjustment or readjustment of the Conversion Price pursuant to this <u>Section</u> <u>4</u>, the Corporation at its expense shall, as promptly as reasonably practicable but in any event not later than ten (10) days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Preferred Stock a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property into which the Preferred Stock is convertible) and showing in detail the facts upon which such adjustment or readjustment is based. The Corporation shall, as promptly as reasonably practicable after the written request at any time of any holder of Preferred Stock (but in any event not later than ten (10) days thereafter), furnish or cause to be furnished to such holder a certificate setting forth (i) the Conversion Price then in effect, and (ii) the number of shares of Common Stock and the amount, if any, of other securities, cash or property which then would be received upon the conversion of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Notice of Record Date</u>. In the event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Corporation shall take a record of the holders of its Common Stock (or other capital stock or securities at the time issuable upon conversion of the Preferred Stock) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive any other security; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) of any capital reorganization of the Corporation, any reclassification of the Common Stock of the Corporation, or any Deemed Liquidation Event; or

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Corporation,

then, and in each such case, the Corporation will send or cause to be sent to the holders of the Preferred Stock a notice specifying, as the case may be, (i) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is proposed to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon the conversion of the Preferred Stock) shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Preferred Stock and the Common Stock. Such notice shall be sent at least ten (10) days prior to the record date or effective date for the event specified in such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Mandatory Conversion</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Trigger Events</u>. Upon either (a) the closing of the sale of shares of Common Stock to the public in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, resulting in at least $100,000,000 of gross proceeds to the Corporation (a "**Qualified IPO**") or (b) the date and time, or the occurrence of an event, specified by vote or written consent of the Requisite Majority (the time of such closing or the date and time specified or the time of the event specified in such vote or written consent is referred to herein as the "Mandatory Conversion Time"), then (i) all outstanding shares of Preferred Stock shall automatically be converted into shares of Common Stock, at the then effective conversion rate as calculated pursuant to <u>Subsection</u> <u>4.1.1</u> and (ii) such shares may not be reissued by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Procedural Requirements</u>. All holders of record of shares of Preferred Stock shall be sent written notice of the Mandatory Conversion Time and the place designated for mandatory conversion of all such shares of Preferred Stock pursuant to this <u>Section</u> <u>5</u>. Such notice need not be sent in advance of the occurrence of the Mandatory Conversion Time. Upon receipt of such notice, each holder of shares of Preferred Stock in certificated form shall surrender his, her or its certificate or certificates for all such shares (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation at the place designated in such notice. If so required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or by his, her or its attorney duly authorized in writing. All rights with respect to the Preferred Stock converted pursuant to <u>Subsection</u> <u>5.1</u>, including the rights, if any, to receive notices and vote (other than as a holder of Common Stock), will terminate at the Mandatory Conversion Time (notwithstanding the failure of the holder or holders thereof to surrender any certificates at or prior to such time), except only the rights of the holders thereof, upon surrender of any certificate or certificates of such holders (or lost certificate affidavit and agreement)

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therefor, to receive the items provided for in the next sentence of this <u>Subsection</u> <u>5.2</u>. As soon as practicable after the Mandatory Conversion Time and, if applicable, the surrender of any certificate or certificates (or lost certificate affidavit and agreement) for Preferred Stock, the Corporation shall (a) issue and deliver to such holder, or to his, her or its nominees, a certificate or certificates for the number of full shares of Common Stock issuable on such conversion in accordance with the provisions hereof and (b) pay cash as provided in <u>Subsection</u> <u>4.2</u> in lieu of any fraction of a share of Common Stock otherwise issuable upon such conversion and the payment of any declared but unpaid dividends on the shares of Preferred Stock converted. Such converted Preferred Stock shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Redeemed or Otherwise Acquired Shares</u>. Any shares of Preferred Stock that are redeemed or otherwise acquired by the Corporation or any of its subsidiaries shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred. Neither the Corporation nor any of its subsidiaries may exercise any voting or other rights granted to the holders of Preferred Stock following redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Waiver</u>. Any of the rights, powers, preferences and other terms of the Preferred Stock set forth herein may be waived on behalf of all holders of Preferred Stock by the affirmative written consent or vote of the Requisite Majority, provided that the waiver of any term that requires the affirmative written consent or vote of a series of Preferred Stock shall require the affirmative written consent or vote of such series of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Notices</u>. Any notice required or permitted by the provisions of this Article Fourth to be given to a holder of shares of Preferred Stock shall be mailed, postage prepaid, to the post office address last shown on the records of the Corporation, or given by electronic communication in compliance with the provisions of the General Corporation Law, and shall be deemed sent upon such mailing or electronic transmission.

**FIFTH:** Subject to any additional vote required by the Certificate of Incorporation or Bylaws, in furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to make, repeal, alter, amend and rescind any or all of the Bylaws of the Corporation.

**SIXTH:** Subject to any additional vote required by the Certificate of Incorporation, the number of directors of the Corporation shall be determined in the manner set forth in the Bylaws of the Corporation.

**SEVENTH:** Elections of directors need not be by written ballot unless the Bylaws of the Corporation shall so provide.

**EIGHTH:** Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws of the Corporation may provide. The books of the Corporation may be kept outside the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

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**NINTH:** To the fullest extent permitted by law, a director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the General Corporation Law or any other law of the State of Delaware is amended after approval by the stockholders of this Article Ninth to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law as so amended.

Any repeal or modification of the foregoing provisions of this Article Ninth by the stockholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation existing at the time of, or increase the liability of any director of the Corporation with respect to any acts or omissions of such director occurring prior to, such repeal or modification.

**TENTH:** To the fullest extent permitted by applicable law, the Corporation is authorized to provide indemnification of (and advancement of expenses to) directors, officers and agents of the Corporation (and any other persons to which General Corporation Law permits the Corporation to provide indemnification) through Bylaw provisions, agreements with such agents or other persons, vote of stockholders or disinterested directors or otherwise, in excess of the indemnification and advancement otherwise permitted by Section 145 of the General Corporation Law.

Any amendment, repeal or modification of the foregoing provisions of this Article Tenth shall not (a) adversely affect any right or protection of any director, officer or other agent of the Corporation existing at the time of such amendment, repeal or modification or (b) increase the liability of any director of the Corporation with respect to any acts or omissions of such director, officer or agent occurring prior to, such amendment, repeal or modification.

**ELEVENTH:** The Corporation renounces, to the fullest extent permitted by law, any interest or expectancy of the Corporation in, or in being offered an opportunity to participate in, any Excluded Opportunity. An "**Excluded Opportunity**" is any matter, transaction or interest that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of (i) any director of the Corporation who is not an employee of the Corporation or any of its subsidiaries, or (ii) any holder of Preferred Stock or any partner, member, director, stockholder, employee, affiliate or agent of any such holder, other than someone who is an employee of the Corporation or any of its subsidiaries (collectively, the persons referred to in clauses (i) and (ii) are "**Covered Persons**"), unless such matter, transaction or interest is presented to, or acquired, created or developed by, or otherwise comes into the possession of, a Covered Person expressly and solely in such Covered Person's capacity as a director of the Corporation while such Covered Person is performing services in such capacity. Any repeal or modification of this Article Eleventh will only be prospective and will not affect the rights under this Article Eleventh in effect at the time of the occurrence of any actions or omissions to act giving rise to liability. Notwithstanding anything to the contrary contained elsewhere in this Amended and Restated Certificate of Incorporation, the affirmative vote of the Requisite Majority, will be required to amend or repeal, or to adopt any provisions inconsistent with this Article Eleventh.

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**TWELFTH:** Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery in the State of Delaware shall be the sole and exclusive forum for any stockholder (including a beneficial owner) to bring (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim against the Corporation, its directors, officers or employees arising pursuant to any provision of the Delaware General Corporation Law or the Corporation's certificate of incorporation or bylaws or (iv) any action asserting a claim against the Corporation, its directors, officers or employees governed by the internal affairs doctrine, except for, as to each of (i) through (iv) above, any claim as to which the Court of Chancery determines that there is an indispensable party not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of the Court of Chancery within ten days following such determination), which is vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery, or for which the Court of Chancery does not have subject matter jurisdiction. If any provision or provisions of this Article Twelfth shall be held to be invalid, illegal or unenforceable as applied to any person or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Article Twelfth (including, without limitation, each portion of any sentence of this Article Twelfth containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision to other persons or entities and circumstances shall not in any way be affected or impaired thereby.

**THIRTEENTH:** For purposes of Section 500 of the California Corporations Code (to the extent applicable), in connection with any repurchase of shares of Common Stock permitted under this Certificate of Incorporation from employees, officers, directors or consultants of the Corporation in connection with a termination of employment or services pursuant to agreements or arrangements approved by the Board of Directors (in addition to any other consent required under this Certificate of Incorporation), such repurchase may be made without regard to any "preferential dividends arrears amount" or "preferential rights amount" (as those terms are defined in Section 500 of the California Corporations Code). Accordingly, for purposes of making any calculation under California Corporations Code Section 500 in connection with such repurchase, the amount of any "preferential dividends arrears amount" or "preferential rights amount" (as those terms are defined therein) shall be deemed to be zero (0).

\* \* \*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** That the foregoing amendment and restatement was approved by the holders of the requisite number of shares of this corporation in accordance with Sections 228 and 363 of the General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** That this Amended and Restated Certificate of Incorporation, which restates and integrates and further amends the provisions of this Corporation's Certificate of Incorporation, has been duly adopted in accordance with Sections 242 and 245 of the General Corporation Law.

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**IN WITNESS WHEREOF,** this Amended and Restated Certificate of Incorporation has been executed by a duly authorized officer of this corporation on this 16th day of March, 2021.

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| | |
|:---|:---|
| By: | /s/ Benjamin L. Oakes |
| Name: | Benjamin L. Oakes |
| Title: | President |

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**SIGNATURE PAGE TO AMENDED AND RESTATED CERTIFICATE OF INCORPORATION**

## Exhibit 3.3

**Exhibit 3.3** 

**AMENDED AND RESTATED** 

**BYLAWS** 

**OF** 

**SCRIBE THERAPEUTICS, INC.** 

**ARTICLE I** 

**Offices** 

**Section 1.1 Registered Office.** 

The registered office of the corporation in the State of Delaware shall be in the City of Dover, Kent County.

**Section 1.2 Other Offices.** 

The corporation shall also have and maintain an office or principal place of business at 164 Vicente Road, Berkeley, CA 94705, and may also have offices at such other places, both within and without the State of Delaware as the Board of Directors may from time to time determine or the business of the corporation may require.

**ARTICLE II** 

**Stockholders' Meetings** 

**Section 2.1 Place of Meetings.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Meetings of stockholders may be held at such place, either within or without this State, as may be designated by or in the manner provided in these Bylaws or, if not so designated, as determined by the Board of Directors. The Board of Directors may, in its sole discretion, determine that the meeting shall not be held at any place, but may instead be held solely by means of remote communication as authorized by paragraph (b) of this Section 2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If authorized by the Board of Directors in its sole discretion, and subject to such guidelines and procedures as the Board of Directors may adopt, stockholders and proxyholders not physically present at a meeting of stockholders may, by means of remote communication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Participate in a meeting of stockholders; 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;(2) Be deemed present in person and vote at a meeting of stockholders whether such meeting is to be held at a designated place or solely by means of remote communication, provided that (A) the corporation shall implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of remote communication is a stockholder or proxyholder, (B) the corporation shall implement reasonable

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measures to provide such stockholders and proxyholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the stockholders, including an opportunity to read or hear the proceedings of the meeting substantially concurrently with such proceedings, and (C) if any stockholder or proxyholder votes or takes other action at the meeting by means of remote communication, a record of such vote or other action shall be maintained by the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of this Section 2.1, "remote communication" shall include (1) telephone or other voice communications and (2) electronic mail or other form of written or visual electronic communications satisfying the requirements of Section 2.11(b).

**Section 2.2 Annual Meetings.** 

The annual meetings of the stockholders of the corporation, for the purpose of election of directors and for such other business as may lawfully come before it, shall be held on such date and at such time as may be designated from time to time by the Board of Directors, or, if not so designated, then at 10:00 a.m. on April 30 in each year if not a legal holiday, and, if a legal holiday, at the same hour and place on the next succeeding day not a holiday.

**Section 2.3 Special Meetings.** 

Special Meetings of the stockholders of the corporation may be called, for any purpose or purposes, by the Chairman of the Board or the President or the Board of Directors at any time. Upon written request of any stockholder or stockholders holding in the aggregate one-fifth of the voting power of all stockholders delivered in person or sent by registered mail to the Chairman of the Board, President or Secretary of the Corporation, the Secretary shall call a special meeting of stockholders to be held as provided in Section 2.1 at such time as the Secretary may fix, such meeting to be held not less than 10 nor more than 60 days after the receipt of such request, and if the Secretary shall neglect or refuse to call such meeting within seven days after the receipt of such request, the stockholder making such request may do so.

**Section 2.4 Notice of Meetings.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided by law or the Certificate of Incorporation, written notice of each meeting of stockholders, specifying the place, if any, date and hour and purpose or purposes of the meeting, and the means of remote communication, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such meeting, shall be given not less than 10 nor more than 60 days before the date of the meeting to each stockholder entitled to vote thereat, directed to his address as it appears upon the books of the corporation; except that where the matter to be acted on is a merger or consolidation of the Corporation or a sale, lease or exchange of all or substantially all of its assets, such notice shall be given not less than 20 nor more than 60 days prior to such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any meeting action is proposed to be taken which, if taken, would entitle stockholders fulfilling the requirements of section 262(d) of the Delaware General Corporation Law to an appraisal of the fair value of their shares, the notice of such meeting shall contain a statement of that purpose and to that effect and shall be accompanied by a copy of that statutory section.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) When a meeting is adjourned to another time or place, notice need not be given of the adjourned meeting if the time, place, if any, thereof, and the means of remote communication, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such adjourned meeting, are announced at the meeting at which the adjournment is taken unless the adjournment is for more than thirty days, or unless after the adjournment a new record date is fixed for the adjourned meeting, in which event a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notice of the time, place and purpose of any meeting of stockholders may be waived in writing, either before or after such meeting, and, to the extent permitted by law, will be waived by any stockholder by his attendance thereat, in person or by proxy. Any stockholder so waiving notice of such meeting shall be bound by the proceedings of any such meeting in all respects as if due notice thereof had been given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the corporation under any provision of Delaware General Corporation Law, the Certificate of Incorporation, or these Bylaws shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given. Any such consent shall be revocable by the stockholder by written notice to the corporation. Any such consent shall be deemed revoked if (i) the corporation is unable to deliver by electronic transmission two consecutive notices given by the corporation in accordance with such consent, and (ii) such inability becomes known to the secretary or an assistant secretary of the corporation or to the transfer agent or other person responsible for the giving of notice; provided, however, the inadvertent failure to treat such inability as a revocation shall not invalidate any meeting or other action. Notice given pursuant to this subparagraph (e) shall be deemed given: (1) if by facsimile telecommunication, when directed to a number at which the stockholder has consented to receive notice; (2) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice; (3) if by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (A) such posting and (B) the giving of such separate notice; and (4) if by any other form of electronic transmission, when directed to the stockholder. An affidavit of the secretary or an assistant secretary or of the transfer agent or other agent of the corporation that the notice has been given by a form of electronic transmission shall, in the absence of fraud, be prima facie evidence of the facts stated therein. For purposes of these Bylaws, "electronic transmission" means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

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**Section 2.5 Quorum and Voting.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At all meetings of stockholders except where otherwise provided by law, the Certificate of Incorporation or these Bylaws, the presence, in person or by proxy duly authorized, of the holders of a majority of the outstanding shares of stock entitled to vote shall constitute a quorum for the transaction of business. Shares, the voting of which at said meeting have been enjoined, or which for any reason cannot be lawfully voted at such meeting, shall not be counted to determine a quorum at said meeting. In the absence of a quorum, any meeting of stockholders may be adjourned, from time to time, by vote of the holders of a majority of the shares represented thereat, but no other business shall be transacted at such meeting. At such adjourned meeting at which a quorum is present or represented, any business may be transacted which might have been transacted at the original meeting. The stockholders present at a duly called or convened meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, all action taken by the holders of a majority of the voting power represented at any meeting at which a quorum is present shall be valid and binding upon the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Where a separate vote by a class or classes is required, a majority of the outstanding shares of such class or classes present in person or represented by proxy shall constitute a quorum entitled to take action with respect to that vote on that matter, and the affirmative vote of the majority of shares of such class or classes present in person or represented by proxy at the meeting shall be the act of such class.

**Section 2.6 Voting Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided by law, only persons in whose names shares entitled to vote stand on the stock records of the corporation on the record date for determining the stockholders entitled to vote at said meeting shall be entitled to vote at such meeting. Shares standing in the names of two or more persons shall be voted or represented in accordance with the determination of the majority of such persons, or, if only one of such persons is present in person or represented by proxy, such person shall have the right to vote such shares and such shares shall be deemed to be represented for the purpose of determining a quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Every person entitled to vote or to execute consents shall have the right to do so either in person or by an agent or agents authorized by a written proxy executed by such person or his duly authorized agent, which proxy shall be filed with the Secretary of the corporation at or before the meeting at which it is to be used. Said proxy so appointed need not be a stockholder. No proxy shall be voted on after three (3) years from its date unless the proxy provides for a longer period. Unless and until voted, every proxy shall be revocable at the pleasure of the person who executed it or of his legal representatives or assigns, except in those cases where an irrevocable proxy permitted by statute has been given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limiting the manner in which a stockholder may authorize another person or persons to act for him as proxy pursuant to subsection (b) of this section, the following shall constitute a valid means by which a stockholder may grant such authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A stockholder may execute a writing authorizing another person or persons to act for him as proxy. Execution may be accomplished by the stockholder or his authorized officer, director, employee or agent signing such writing or causing his or her signature to be affixed to such writing by any reasonable means including, but not limited to, by facsimile signature.

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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;(2) A stockholder may authorize another person or persons to act for him as proxy by transmitting or authorizing the transmission of a telephone, telegram, cablegram or other means of electronic transmission to the person who will be the holder of the proxy or to a proxy solicitation firm, proxy support service organization or like agent duly authorized by the person who will be the holder of the proxy to receive such transmission, provided that any such telephone, telegram, cablegram or other means of electronic transmission must either set forth or be submitted with information from which it can be determined that the telephone, telegram, cablegram or other electronic transmission was authorized by the stockholder. Such authorization can be established by the signature of the stockholder on the proxy, either in writing or by a signature stamp or facsimile signature, or by a number or symbol from which the identity of the stockholder can be determined, or by any other procedure deemed appropriate by the inspectors or other persons making the determination as to due authorization.

If it is determined that such telegrams, cablegrams or other electronic transmissions are valid, the inspectors or, if there are no inspectors, such other persons making that determination shall specify the information upon which they relied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any copy, facsimile telecommunication or other reliable reproduction of the writing or transmission created pursuant to subsection (c) of this section may be substituted or used in lieu of the original writing or transmission for any and all purposes for which the original writing or transmission could be used, provided that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission.

**Section 2.7 Voting Procedures and Inspectors of Elections.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The corporation shall, in advance of any meeting of stockholders, appoint one or more inspectors to act at the meeting and make a written report thereof. The corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate is able to act at a meeting of stockholders, the person presiding at the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge of his duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his ability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The inspectors shall (i) ascertain the number of shares outstanding and the voting power of each, (ii) determine the shares represented at a meeting and the validity of proxies and ballots, (iii) count all votes and ballots, (iv) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors, and (v) certify their determination of the number of shares represented at the meeting and their count of all votes and ballots. The inspectors may appoint or retain other persons or entities to assist the inspectors in the performance of the duties of the inspectors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting. No ballot, proxies or votes, nor any revocations thereof or changes thereto, shall be accepted by the inspectors after the closing of the polls unless the Court of Chancery upon application by a stockholder shall determine otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In determining the validity and counting of proxies and ballots, the inspectors shall be limited to an examination of the proxies, any envelopes submitted with those proxies, any information provided in accordance with Sections 211(e) or 212(c)(2) of the Delaware General Corporation Law, or any information provided pursuant to Section 211(a)(2)(B)(i) or (iii) thereof, ballots and the regular books and records of the corporation, except that the inspectors may consider other reliable information for the limited purpose of reconciling proxies and ballots submitted by or on behalf of banks, brokers, their nominees or similar persons which represent more votes than the holder of a proxy is authorized by the record owner to cast or more votes than the stockholder holds of record. If the inspectors consider other reliable information for the limited purpose permitted herein, the inspectors at the time they make their certification pursuant to subsection (b)(v) of this section shall specify the precise information considered by them including the person or persons from whom they obtained the information, when the information was obtained, the means by which the information was obtained and the basis for the inspectors' belief that such information is accurate and reliable.

**Section 2.8 List of Stockholders.** 

The officer who has charge of the stock ledger of the corporation shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at said meeting, arranged in alphabetical order, showing the address of and the number of shares registered in the name of each stockholder. The corporation need not include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder for any purpose germane to the meeting for a period of at least 10 days prior to the meeting: (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours at the principal place of business of the corporation. In the event that the corporation determines to make the list available on an electronic network, the corporation may take reasonable steps to ensure that such information is available only to stockholders of the corporation. If the meeting is to be held at a place, then the list shall be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present. If the meeting is to be held solely by means of remote communication, then the list shall also be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access such list shall be provided with the notice of the meeting.

**Section 2.9 Stockholder Proposals at Annual Meetings.** 

At an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, business must be specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors, otherwise properly brought before the meeting by or at the direction of the Board of Directors, or otherwise properly brought before the meeting by a stockholder. In addition to any other applicable requirements for business to be properly brought before an annual meeting by a stockholder, the stockholder must have given timely

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notice thereof in writing to the Secretary of the corporation. To be timely a stockholder's notice must be delivered to or mailed and received at the principal executive offices of the corporation not less than 45 days nor more than 75 days prior to the date on which the corporation first mailed its proxy materials for the previous year's annual meeting of stockholders (or the date on which the corporation mails its proxy materials for the current year if during the prior year the corporation did not hold an annual meeting or if the date of the annual meeting was changed more than 30 days from the prior year). A stockholder's notice to the Secretary shall set forth as to each matter the stockholder proposes to bring before the annual meeting (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (ii) the name and record address of the stockholder proposing such business, (iii) the class and number of shares of the corporation which are beneficially owned by the stockholder, and (iv) any material interest of the stockholder in such business.

Notwithstanding anything in the Bylaws to the contrary, no business shall be conducted at the annual meeting except in accordance with the procedures set forth in Section 2.1 and this Section 2.9, provided, however, that nothing in this Section 2.9 shall be deemed to preclude discussion by any stockholder of any business properly brought before the annual meeting in accordance with said procedure.

The Chairman of an annual meeting shall, if the facts warrant, determine and declare to the meeting that business was not properly brought before the meeting in accordance with the provisions of Section 2.1 and this Section 2.9, and if he should so determine he shall so declare to the meeting, and any such business not properly brought before the meeting shall not be transacted.

Nothing in this Section 2.9 shall affect the right of a stockholder to request inclusion of a proposal in the corporation's proxy statement to the extent that such right is provided by an applicable rule of the Securities and Exchange Commission.

**Section 2.10 Nominations of Persons for Election to the Board of Directors.** 

In addition to any other applicable requirements, only persons who are nominated in accordance with the following procedures shall be eligible for election as directors. Nominations of persons for election to the Board of Directors of the corporation may be made at a meeting of stockholders by or at the direction of the Board of Directors, by any nominating committee or person appointed by the Board of Directors or by any stockholder of the corporation entitled to vote for the election of directors at the meeting who complies with the notice procedures set forth in this Section 2.10. Such nominations, other than those made by or at the direction of the Board of Directors, shall be made pursuant to timely notice in writing to the Secretary of the corporation. To be timely, a stockholder's notice must be delivered to or mailed and received at the principal executive offices of the corporation, not less than 45 days nor more than 75 days prior to the date on which the corporation first mailed its proxy materials for the previous year's annual meeting of stockholders (or the date on which the corporation mails its proxy materials for the current year if during the prior year the corporation did not hold an annual meeting or if the date of the annual meeting was changed more than 30 days from the prior year). Such stockholder's notice shall set forth (a) as to each person whom the stockholder proposes to

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nominate for election or re-election as a director, (i) the name, age, business address and residence address of the person, (ii) the principal occupation or employment of the person, (iii) the class and number of shares of the corporation which are beneficially owned by the person, and (iv) any other information relating to the person that is required to be disclosed in solicitations for proxies for election of directors pursuant to Rule 14a under the Securities Exchange Act of 1934; and (b) as to the stockholder giving the notice, (i) the name and record address of the stockholder, and (ii) the class and number of shares of the corporation which are beneficially owned by the stockholder. The corporation may require any proposed nominee to furnish such other information as may reasonably be required by the corporation to determine the eligibility of such proposed nominee to serve as a director of the corporation. No person shall be eligible for election as a director of the corporation unless nominated in accordance with the procedures set forth herein. These provisions shall not apply to nomination of any persons entitled to be separately elected by holders of preferred stock.

The Chairman of the meeting shall, if the facts warrant, determine and declare to the meeting that a nomination was not made in accordance with the foregoing procedure, and if he should so determine, he shall so declare to the meeting and the defective nomination shall be disregarded.

**Section 2.11 Action Without Meeting.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise provided in the Certificate of Incorporation, any action required by statute to be taken at any annual or special meeting of stockholders of the corporation, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing setting forth the action so taken are signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. To be effective, a written consent must be delivered to the corporation by delivery to its registered office in Delaware, its principal place of business, or an officer or agent of the corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to a corporation's registered office shall be by hand or by certified or registered mail, return receipt requested. Every written consent shall bear the date of signature of each stockholder who signs the consent, and no written consent shall be effective to take the corporate action referred to therein unless, within 60 days of the earliest dated consent delivered in the manner required by this Section to the corporation, written consents signed by a sufficient number of holders to take action are delivered to the corporation in accordance with this Section. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A telegram, cablegram or other electronic transmission consent to an action to be taken and transmitted by a stockholder or proxyholder, or by a person or persons authorized to act for a stockholder or proxyholder, shall be deemed to be written, signed and dated for the purposes of this section, provided that any such telegram, cablegram or other electronic transmission sets forth or is delivered with information from which the corporation can determine (i) that the telegram, cablegram or other electronic transmission was transmitted by the stockholder or proxyholder or by a person or persons authorized to act for the stockholder or

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proxyholder, and (ii) the date on which such stockholder or proxyholder or authorized person or persons transmitted such telegram, cablegram or electronic transmission. The date on which such telegram, cablegram or electronic transmission is transmitted shall be deemed to be the date on which such consent was signed. No consent given by telegram, cablegram or other electronic transmission shall be deemed to have been delivered until such consent is reproduced in paper form and until such paper form shall be delivered to the corporation by delivery to its registered office in this State, its principal place of business or an officer or agent of the corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to a corporation's registered office shall be made by hand or by certified or registered mail, return receipt requested. Notwithstanding the foregoing limitations on delivery, consents given by telegram, cablegram or other electronic transmission may be otherwise delivered to the principal place of business of the corporation or to an officer or agent of the corporation having custody of the book in which proceedings of meetings of stockholders are recorded if to the extent and in the manner provided by resolution of the Board of Directors of the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any copy, facsimile or other reliable reproduction of a consent in writing may be substituted or used in lieu of the original writing for any and all purposes for which the original writing could be used, provided that such copy, facsimile or other reproduction shall be a complete reproduction of the entire original writing.

**ARTICLE III** 

**Directors** 

**Section 3.1 Number and Term of Office.** 

The number of directors of the corporation shall be fixed exclusively by resolutions adopted by a majority of the authorized number of directors constituting the Board of Directors, until changed by amendment of the Certificate of Incorporation or by a Bylaw amending this Section 3.1 duly adopted by the vote or written consent of holders of a majority of the outstanding shares or by the Board of Directors. Subject to the foregoing provisions for changing the number of directors, the initial number of directors of the corporation has been fixed at three (3).

With the exception of the first Board of Directors, which shall be elected by the incorporator or incorporators, and except as provided in Section 3.3 of this Article III, the directors shall be elected by a plurality vote of the shares represented in person or by proxy, at the stockholders annual meeting in each year and entitled to vote on the election of directors. Elected directors shall hold office until the next annual meeting and until their successors shall be duly elected and qualified. Directors need not be stockholders. If, for any cause, the Board of Directors shall not have been elected at an annual meeting, they may be elected as soon thereafter as convenient at a special meeting of the stockholders called for that purpose in the manner provided in these Bylaws.

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**Section 3.2 Powers.** 

The powers of the corporation shall be exercised, its business conducted and its property controlled by or under the direction of the Board of Directors.

**Section 3.3 Vacancies.** 

Vacancies and newly created directorships resulting from any increase in the authorized number of directors may be filled by a majority of the directors then in office, although less than a quorum, or by a sole remaining director, and each director so elected shall hold office for the unexpired portion of the term of the director whose place shall be vacant and until his successor shall have been duly elected and qualified. A vacancy in the Board of Directors shall be deemed to exist under this section in the case of the death, removal or resignation of any director, or if the stockholders fail at any meeting of stockholders at which directors are to be elected (including any meeting referred to in Section 3.4 below) to elect the number of directors then constituting the whole Board.

**Section 3.4 Resignations and Removals.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any director may resign at any time by delivering his resignation to the Secretary in writing or by electronic transmission, such resignation to specify whether it will be effective at a particular time, upon receipt by the Secretary or at the pleasure of the Board of Directors. If no such specification is made it shall be deemed effective at the pleasure of the Board of Directors. When one or more directors shall resign from the Board effective at a future date, a majority of the directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective, and each director so chosen shall hold office for the unexpired portion of the term of the director whose place shall be vacated and until his successor shall have been duly elected and qualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At a special meeting of stockholders called for the purpose in the manner hereinabove provided, the Board of Directors or any individual director may be removed from office, with or without cause, and a new director or directors elected by a vote of stockholders holding a majority of the outstanding shares entitled to vote at an election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Unless the Certificate of Incorporation otherwise provides, if the Board of Directors is classified, stockholders may effect removal only for cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the corporation has cumulative voting for directors, if less than the entire board is to be removed, no director may be removed without cause if the votes cast against his removal would be sufficient to elect him if voted cumulatively at an election of the entire board.

**Section 3.5 Meetings.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The annual meeting of the Board of Directors shall be held immediately after the annual stockholders' meeting and at the place where such meeting is held or at the place announced by the Chairman at such meeting. No notice of an annual meeting of the Board of Directors shall be necessary, and such meeting shall be held for the purpose of electing officers and transacting such other business as may lawfully come before it.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as hereinafter otherwise provided, regular meetings of the Board of Directors shall be held in the office of the corporation required to be maintained pursuant to Section 1.2 of Article I hereof. Regular meetings of the Board of Directors may also be held at any place, within or without the State of Delaware, which has been designated by resolutions of the Board of Directors or the written consent of all directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Special meetings of the Board of Directors may be held at any time and place within or without the State of Delaware whenever called by the Chairman of the Board or, if there is no Chairman of the Board, by the President, or by any of the directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Written notice of the time and place of all regular and special meetings of the Board of Directors shall be delivered personally to each director or sent by telegram or facsimile transmission or other form of electronic transmission at least 48 hours before the start of the meeting, or sent by first class mail at least 120 hours before the start of the meeting. Notice of any meeting may be waived in writing at any time before or after the meeting and will be waived by any director by attendance thereat.

**Section 3.6 Quorum and Voting.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A quorum of the Board of Directors shall consist of a majority of the exact number of directors fixed from time to time in accordance with Section 3.1 of Article III of these Bylaws, but not less than one; provided, however, at any meeting whether a quorum be present or otherwise, a majority of the directors present may adjourn from time to time until the time fixed for the next regular meeting of the Board of Directors, without notice other than by announcement at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At each meeting of the Board at which a quorum is present, all questions and business shall be determined by a vote of a majority of the directors present, unless a different vote be required by law, the Certificate of Incorporation, or these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any member of the Board of Directors, or of any committee thereof, may participate in a meeting by means of conference telephone or other communication equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The transactions of any meeting of the Board of Directors, or any committee thereof, however called or noticed, or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice if a quorum be present and if, either before or after the meeting, each of the directors not present shall sign a written waiver of notice, or a consent to holding such meeting, or an approval of the minutes thereof. All such waivers, consents or approvals shall be filed with the corporate records or made a part of the minutes of the meeting.

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**Section 3.7 Action Without Meeting.** 

Unless otherwise restricted by the Certificate of Incorporation or these Bylaws, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all members of the Board or of such committee, as the case may be, consent thereto in writing or by electronic transmission, and such writing or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the Board or committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

**Section 3.8 Fees and Compensation.** 

Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed or determined by resolution of the Board of Directors.

**Section 3.9 Committees.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Executive Committee:** The Board of Directors may appoint an Executive Committee of not less than one member, each of whom shall be a director. The Executive Committee, to the extent permitted by law, shall have and may exercise when the Board of Directors is not in session all powers of the Board in the management of the business and affairs of the corporation, except such committee shall not have the power or authority to amend these Bylaws or to approve or recommend to the stockholders any action which must be submitted to stockholders for approval under the General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Other Committees:** The Board of Directors may, by resolution passed by a majority of the whole Board, from time to time appoint such other committees as may be permitted by law. Such other committees appointed by the Board of Directors shall have such powers and perform such duties as may be prescribed by the resolution or resolutions creating such committee, but in no event shall any such committee have the powers denied to the Executive Committee in these Bylaws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Meetings:** Unless the Board of Directors shall otherwise provide, regular meetings of the Executive Committee or any other committee appointed pursuant to this Section 3.9 shall be held at such times and places as are determined by the Board of Directors, or by any such committee, and when notice thereof has been given to each member of such committee, no further notice of such regular meetings need be given thereafter; special meetings of any such committee may be held at the principal office of the corporation required to be maintained pursuant to Section 1.2 of Article I hereof; or at any place which has been designated from time to time by resolution of such committee or by written consent of all members thereof, and may be called by any director who is a member of such committee upon written notice to the members of such committee of the time and place of such special meeting given in the manner provided for the giving of written notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors. Notice of any special meeting of any committee may be waived in writing at any time after the meeting and will be waived by any director by attendance thereat. A majority of the authorized number of members of any such committee shall constitute a quorum for the transaction of business, and the act of a majority of those present at any meeting at which a quorum is present shall be the act of such committee.

**ARTICLE IV** 

**Officers** 

**Section 4.1 Officers Designated.** 

The officers of the corporation shall be a President, a Secretary and a Treasurer. The Board of Directors or the President may also appoint a Chairman of the Board, one or more Vice-Presidents, assistant secretaries, assistant treasurers, and such other officers and agents with such powers and duties as it or he shall deem necessary. The order of the seniority of the Vice-Presidents shall be in the order of their nomination unless otherwise determined by the Board of Directors. The Board of Directors may assign such additional titles to one or more of the officers as they shall deem appropriate. Any one person may hold any number of offices of the corporation at any one time unless specifically prohibited therefrom by law. The salaries and other compensation of the officers of the corporation shall be fixed by or in the manner designated by the Board of Directors.

**Section 4.2 Tenure and Duties of Officers.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General:** All officers shall hold office at the pleasure of the Board of Directors and until their successors shall have been duly elected and qualified, unless sooner removed. Any officer elected or appointed by the Board of Directors may be removed at any time by the Board of Directors. If the office of any officer becomes vacant for any reason, the vacancy may be filled by the Board of Directors. Nothing in these Bylaws shall be construed as creating any kind of contractual right to employment with the corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Duties of Chairman of the Board of Directors:** The Chairman of the Board of Directors (if there be such an officer appointed) when present shall preside at all meetings of the stockholders and the Board of Directors. The Chairman of the Board of Directors shall perform such other duties and have such other powers as the Board of Directors shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Duties of President:** The President shall preside at all meetings of the stockholders and at all meetings of the Board of Directors, unless the Chairman of the Board of Directors has been appointed and is present. The President shall perform such other duties and have such other powers as the Board of Directors shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Duties of Vice-Presidents:** The Vice-Presidents, in the order of their seniority, may assume and perform the duties of the President in the absence or disability of the President or whenever the office of the President is vacant. The Vice-President shall perform such other duties and have such other powers as the Board of Directors or the President shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Duties of Secretary:** The Secretary shall attend all meetings of the stockholders and of the Board of Directors and any committee thereof, and shall record all acts and proceedings thereof in the minute book of the corporation, which may be maintained in either paper or electronic form. The Secretary shall give notice, in conformity with these Bylaws, of all meetings of the stockholders and of all meetings of the Board of Directors and any Committee thereof requiring notice. The Secretary shall perform such other duties and have such other powers as the Board of Directors shall designate from time to time. The President may direct any assistant secretary to assume and perform the duties of the Secretary in the absence or disability of the Secretary, and each assistant secretary shall perform such other duties and have such other powers as the Board of Directors or the President shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Duties of Treasurer:** The Treasurer shall keep or cause to be kept the books of account of the corporation in a thorough and proper manner, and shall render statements of the financial affairs of the corporation in such form and as often as required by the Board of Directors or the President. The Treasurer, subject to the order of the Board of Directors, shall have the custody of all funds and securities of the corporation. The Treasurer shall perform all other duties commonly incident to his office and shall perform such other duties and have such other powers as the Board of Directors or the President shall designate from time to time. The President may direct any assistant treasurer to assume and perform the duties of the Treasurer in the absence or disability of the Treasurer, and each assistant treasurer shall perform such other duties and have such other powers as the Board of Directors or the President shall designate from time to time.

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**ARTICLE V** 

**Execution of Corporate Instruments, and Voting of Securities Owned by the Corporation** 

**Section 5.1 Execution of Corporate Instruments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors may in its discretion determine the method and designate the signatory officer or officers, or other person or persons, to execute any corporate instrument or document, or to sign the corporate name without limitation, except where otherwise provided by law, and such execution or signature shall be binding upon the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise specifically determined by the Board of Directors or otherwise required by law, formal contracts of the corporation, promissory notes, deeds of trust, mortgages and other evidences of indebtedness of the corporation, and other corporate instruments or documents requiring the corporate seal, and certificates of shares of stock owned by the corporation, shall be executed, signed or endorsed by the Chairman of the Board (if there be such an officer appointed) or by the President; such documents may also be executed by any Vice-President and by the Secretary or Treasurer or any assistant secretary or assistant treasurer. All other instruments and documents requiring the corporate signature but not requiring the corporate seal may be executed as aforesaid or in such other manner as may be directed by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All checks and drafts drawn on banks or other depositaries on funds to the credit of the corporation or in special accounts of the corporation shall be signed by such person or persons as the Board of Directors shall authorize so to do.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Execution of any corporate instrument may be effected in such form, either manual, facsimile or electronic signature, as may be authorized by the Board of Directors.

**Section 5.2. Voting of Securities Owned by Corporation.** 

All stock and other securities of other corporations owned or held by the corporation for itself or for other parties in any capacity shall be voted, and all proxies with respect thereto shall be executed, by the person authorized so to do by resolution of the Board of Directors or, in the absence of such authorization, by the Chairman of the Board (if there be such an officer appointed), or by the President, or by any Vice-President.

**ARTICLE VI** 

**Shares of Stock** 

**Section 6.1 Form and Execution of Certificates.** 

The shares of the corporation shall be represented by certificates, provided that the Board of Directors may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the corporation. Certificates for the shares of stock of the corporation shall be in such form as is consistent with the Certificate of Incorporation and applicable law. Every holder of stock in the corporation represented by certificates shall be entitled to have a certificate signed by, or in the name of the corporation by, the Chairman of the Board (if there be such an officer appointed), or by the President or any Vice-President and by the Treasurer or assistant treasurer or the Secretary or assistant secretary, certifying the number of shares owned by him in the corporation. Any or all

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of the signatures on the certificate may be a facsimile. In case any officer, transfer agent, or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, it may be issued with the same effect as if he were such officer, transfer agent, or registrar at the date of issue. If the corporation shall be authorized to issue more than one class of stock or more than one series of any class, the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or back of the certificate which the corporation shall issue to represent such class or series of stock, provided that, except as otherwise provided in section 202 of the Delaware General Corporation Law, in lieu of the foregoing requirements, there may be set forth on the face or back of the certificate which the corporation shall issue to represent such class or series of stock, a statement that the corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

**Section 6.2 Lost Certificates.** 

The Board of Directors may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost or destroyed. When authorizing such issue of a new certificate or certificates, the Board of Directors may, in its discretion and as a condition precedent to the issuance thereof, require the owner of such lost or destroyed certificate or certificates, or his legal representative, to indemnify the corporation in such manner as it shall require and/or to give the corporation a surety bond in such form and amount as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost or destroyed.

**Section 6.3 Transfers.** 

Subject to the transfer restrictions set forth in Article XI of these Bylaws, transfers of record of shares of stock of the corporation shall be made only upon its books by the holders thereof, in person or by attorney duly authorized, and upon the surrender of a certificate or certificates for a like number of shares, properly endorsed.

**Section 6.4 Fixing Record Dates.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In order that the corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than 60 nor less than 10 days before the date of such meeting. If no record date is fixed by the Board of Directors, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the date on which the meeting is held. A determination of stockholders of record entitled notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order that the corporation may determine the stockholders entitled to consent to corporate action in writing or by electronic transmission without a meeting, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which date shall not be more than 10 days after the date upon which the resolution fixing the record date is adopted by the Board of Directors. If no record date has been fixed by the Board of Directors, the record date for determining stockholders entitled to consent to corporate action in writing or by electronic transmission without a meeting, when no prior action by the Board of Directors is required by the Delaware General Corporation Law, shall be the first date on which a signed written consent or electronic transmission setting forth the action taken or proposed to be taken is delivered to the corporation by delivery to its registered office in Delaware, its principal place of business, or an officer or agent of the corporation having custody of the book in which proceedings of meetings of stockholders are recorded; provided that any such electronic transmission shall satisfy the requirements of Section 2.11(b) and, unless the Board of Directors otherwise provides by resolution, no such consent by electronic transmission shall be deemed to have been delivered until such consent is reproduced in paper form and until such paper form shall be delivered to the corporation by delivery to its registered office in Delaware, its principal place of business or an officer or agent of the corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to a corporation's registered office shall be by hand or by certified or registered mail, return receipt requested. If no record date has been fixed by the Board of Directors and prior action by the Board of Directors is required by law, the record date for determining stockholders entitled to consent to corporate action in writing or by electronic transmission without a meeting shall be at the close of business on the day on which the Board of Directors adopts the resolution taking such prior action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In order that the corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than 60 days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

**Section 6.5 Registered Stockholders.** 

The corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends and to vote as such owner, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of Delaware.

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**ARTICLE VII** 

**Other Securities of the Corporation** 

All bonds, debentures and other corporate securities of the corporation, other than stock certificates, may be signed by the Chairman of the Board (if there be such an officer appointed), or the President or any Vice-President or such other person as may be authorized by the Board of Directors and the corporate seal impressed thereon or a facsimile of such seal imprinted thereon and attested by the signature of the Secretary or an assistant secretary, or the Treasurer or an assistant treasurer; provided, however, that where any such bond, debenture or other corporate security shall be authenticated by the manual signature of a trustee under an indenture pursuant to which such bond, debenture or other corporate security shall be issued, the signature of the persons signing and attesting the corporate seal on such bond, debenture or other corporate security may be the imprinted facsimile of the signatures of such persons. Interest coupons appertaining to any such bond, debenture or other corporate security, authenticated by a trustee as aforesaid, shall be signed by the Treasurer or an assistant treasurer of the corporation, or such other person as may be authorized by the Board of Directors, or bear imprinted thereon the facsimile signature of such person. In case any officer who shall have signed or attested any bond, debenture or other corporate security, or whose facsimile signature shall appear thereon has ceased to be an officer of the corporation before the bond, debenture or other corporate security so signed or attested shall have been delivered, such bond, debenture or other corporate security nevertheless may be adopted by the corporation and issued and delivered as though the person who signed the same or whose facsimile signature shall have been used thereon had not ceased to be such officer of the corporation.

**ARTICLE VIII** 

**Indemnification of Officers, Directors, Employees and Agents** 

**Section 8.1 Right to Indemnification.** 

Each person who was or is a party or is threatened to be made a party to or is involved (as a party, witness, or otherwise), in any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (hereinafter a "Proceeding"), by reason of the fact that he, or a person of whom he is the legal representative, is or was a director or officer of the corporation or is or was serving at the request of the corporation as a director or officer of another corporation or of a partnership, joint venture, trust, or other enterprise, including service with respect to employee benefit plans, whether the basis of the Proceeding is alleged action in an official capacity as a director or officer or in any other capacity while serving as a director or officer, shall be indemnified and held harmless by the corporation to the fullest extent authorized by the Delaware General Corporation Law, as the same exists or may hereafter be amended or interpreted (but, in the case of any such amendment or interpretation, only to the extent that such amendment or interpretation permits the corporation to provide broader indemnification rights than were permitted prior thereto) against all expenses, liability, and loss (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties, and amounts paid or to be paid in settlement, and any interest, assessments, or other charges imposed thereon, and any federal, state, local, or foreign taxes imposed on any director or officer

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as a result of the actual or deemed receipt of any payments under this Article) reasonably incurred or suffered by such person in connection with investigating, defending, being a witness in, or participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding (hereinafter "Expenses"); *provided, however*, that except as to actions to enforce indemnification rights pursuant to Section 8.3 of this Article, the corporation shall indemnify any director or officer seeking indemnification in connection with a Proceeding (or part thereof) initiated by such person only if the Proceeding (or part thereof) was authorized by the Board of Directors of the corporation. The right to indemnification conferred in this Article shall be a contract right.

**Section 8.2 Authority to Advance Expenses.** 

Expenses incurred by an officer or director (acting in his capacity as such) in defending a Proceeding shall be paid by the corporation in advance of the final disposition of such Proceeding, provided, however, that if required by the Delaware General Corporation Law, as amended, such Expenses shall be advanced only upon delivery to the corporation of an undertaking by or on behalf of such director or officer to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified by the corporation as authorized in this Article or otherwise. Expenses incurred by other employees or agents of the corporation (or by the directors or officers not acting in their capacity as such, including service with respect to employee benefit plans) may be advanced upon such terms and conditions as the Board of Directors deems appropriate. Any obligation to reimburse the corporation for Expense advances shall be unsecured and no interest shall be charged thereon.

**Section 8.3 Right of Claimant to Bring Suit.** 

If a claim under Section 8.1 or 8.2 of this Article is not paid in full by the corporation within 90 days after a written claim has been received by the corporation, the claimant may at any time thereafter bring suit against the corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expense (including attorneys' fees) of prosecuting such claim. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in defending a Proceeding in advance of its final disposition where the required undertaking has been tendered to the corporation) that the claimant has not met the standards of conduct that make it permissible under the Delaware General Corporation Law for the corporation to indemnify the claimant for the amount claimed. The burden of proving such a defense shall be on the corporation. Neither the failure of the corporation (including its Board of Directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper under the circumstances because he has met the applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual determination by the corporation (including its Board of Directors, independent legal counsel, or its stockholders) that the claimant had not met such applicable standard of conduct, shall be a defense to the action or create a presumption that claimant has not met the applicable standard of conduct.

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**Section 8.4 Provisions Nonexclusive.** 

The rights conferred on any person by this Article shall not be exclusive of any other rights that such person may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, agreement, vote of stockholders or disinterested directors, or otherwise, both as to action in an official capacity and as to action in another capacity while holding such office. To the extent that any provision of the Certificate of Incorporation, agreement, or vote of the stockholders or disinterested directors is inconsistent with these Bylaws, the provision, agreement, or vote shall take precedence.

**Section 8.5 Authority to Insure.** 

The corporation may purchase and maintain insurance to protect itself and any director, officer, employee or agent (hereafter an "Agent") against any Expense, whether or not the corporation would have the power to indemnify the Agent against such Expense under applicable law or the provisions of this Article.

**Section 8.6 Survival of Rights.** 

The rights provided by this Article shall continue as to a person who has ceased to be an Agent and shall inure to the benefit of the heirs, executors, and administrators of such a person.

**Section 8.7 Settlement of Claims.** 

The corporation shall not be liable to indemnify any Agent under this Article (a) for any amounts paid in settlement of any action or claim effected without the corporation's written consent, which consent shall not be unreasonably withheld; or (b) for any judicial award if the corporation was not given a reasonable and timely opportunity, at its expense, to participate in the defense of such action.

**Section 8.8 Effect of Amendment.** 

Any amendment, repeal, or modification of this Article shall not adversely affect any right or protection of any Agent existing at the time of such amendment, repeal, or modification.

**Section 8.9 Subrogation.** 

In the event of payment under this Article, the corporation shall be subrogated to the extent of such payment to all of the rights of recovery of the Agent, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the corporation effectively to bring suit to enforce such rights.

**Section 8.10 No Duplication of Payments.** 

The corporation shall not be liable under this Article to make any payment in connection with any claim made against the Agent to the extent the Agent has otherwise actually received payment (under any insurance policy, agreement, vote, or otherwise) of the amounts otherwise indemnifiable hereunder.

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**ARTICLE IX** 

**Notices** 

Whenever, under any provisions of these Bylaws, notice is required to be given to any stockholder, the same shall be given either (1) in writing, timely and duly deposited in the United States Mail, postage prepaid, and addressed to his last known post office address as shown by the stock record of the corporation or its transfer agent, or (2) by a means of electronic transmission that satisfies the requirements of Section 2.4(e) of these Bylaws, and has been consented to by the stockholder to whom the notice is given. Any notice required to be given to any director may be given by either of the methods hereinabove stated, except that such notice other than one which is delivered personally, shall be sent to such address or (in the case of electronic communication) such e-mail address, facsimile telephone number or other form of electronic address as such director shall have filed in writing or by electronic communication with the Secretary of the corporation, or, in the absence of such filing, to the last known post office address of such director. If no address of a stockholder or director be known, such notice may be sent to the office of the corporation required to be maintained pursuant to Section 1.2 of Article I hereof. An affidavit of mailing, executed by a duly authorized and competent employee of the corporation or its transfer agent appointed with respect to the class of stock affected, specifying the name and address or the names and addresses of the stockholder or stockholders, director or directors, to whom any such notice or notices was or were given, and the time and method of giving the same, shall be conclusive evidence of the statements therein contained. All notices given by mail, as above provided, shall be deemed to have been given as at the time of mailing and all notices given by means of electronic transmission shall be deemed to have been given as at the sending time recorded by the electronic transmission equipment operator transmitting the same. It shall not be necessary that the same method of giving notice be employed in respect of all directors, but one permissible method may be employed in respect of any one or more, and any other permissible method or methods may be employed in respect of any other or others. The period or limitation of time within which any stockholder may exercise any option or right, or enjoy any privilege or benefit, or be required to act, or within which any director may exercise any power or right, or enjoy any privilege, pursuant to any notice sent him in the manner above provided, shall not be affected or extended in any manner by the failure of such a stockholder or such director to receive such notice. Whenever any notice is required to be given under the provisions of the statutes or of the Certificate of Incorporation, or of these Bylaws, a waiver thereof in writing signed by the person or persons entitled to said notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent thereto. Whenever notice is required to be given, under any provision of law or of the Certificate of Incorporation or Bylaws of the corporation, to any person with whom communication is unlawful, the giving of such notice to such person shall not be required and there shall be no duty to apply to any governmental authority or agency for a license or permit to give such notice to such person. Any action or meeting which shall be taken or held without notice to any such person with whom communication is unlawful shall have the same force and effect as if such notice had been duly given. In the event that the action taken by the corporation is such as to require the filing of a certificate under any provision of the Delaware General Corporation Law, the certificate shall state, if such is the fact and if notice is required, that notice was given to all persons entitled to receive notice except such persons with whom communication is unlawful.

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**ARTICLE X** 

**Amendments** 

These Bylaws may be repealed, altered or amended or new Bylaws adopted by written consent of stockholders in the manner authorized by Section 2.11 of Article II, or at any meeting of the stockholders, either annual or special, by the affirmative vote of a majority of the stock entitled to vote at such meeting, unless a larger vote is required by these Bylaws or the Certificate of Incorporation. The Board of Directors shall also have the authority to repeal, alter or amend these Bylaws or adopt new Bylaws (including, without limitation, the amendment of any Bylaws setting forth the number of directors who shall constitute the whole Board of Directors) by unanimous written consent or at any annual, regular, or special meeting by the affirmative vote of a majority of the whole number of directors, subject to the power of the stockholders to change or repeal such Bylaws and provided that the Board of Directors shall not make or alter any Bylaws fixing the qualifications, classifications, or term of office of directors.

**ARTICLE XI** 

**Transfer Restrictions** 

**Section 11.1 Shares Subject to Restrictions on Transfer** 

The transfer restrictions set forth in this Article XI shall be applicable to all shares of Common Stock of the corporation other than any shares of Common Stock that may be issued upon conversion of shares of Preferred Stock of the corporation ("Shares").

**Section 11.2 Restriction on Transfer** 

No stockholder may sell, assign, transfer, pledge, encumber or in any manner dispose of ("Transfer") any Shares, whether voluntarily or by operation of law, or by gift or otherwise (including by way of any arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of Shares), other than by means of a Permitted Transfer (as defined below). If any provision(s) of any agreement(s) currently in effect by and between the corporation and any stockholder ("Stockholder Agreement") conflicts with this Article XI, this Article XI shall govern, and the remaining provision(s) of the Stockholder Agreement(s) that do not conflict with this Article XI shall continue in full force and effect. For the avoidance of doubt, any right of first refusal or co-sale rights ("ROFR and Co-Sale Rights") in favor of the corporation or its stockholders in a Stockholder Agreement shall supersede this Article XI and apply to a proposed Transfer of Shares by a stockholder party to such Stockholder Agreement.

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**Section 11.3 Permitted Transfers** 

For purposes of this Article XI, a "Permitted Transfer" shall mean any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Transfer of Shares to the corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Transfer of Shares by beneficiary designation, will or intestate succession;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to a stockholder that is a natural person, any Transfer of Shares for estate planning purposes to one or more of the stockholder's child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law and shall include adoptive relationships (collectively, "Immediate Family") or to a trust established by the stockholder for the benefit of the stockholder and/or one or more members of the stockholder's Immediate Family;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to a stockholder that is an entity, any transfer of Shares to any other entity that, directly or indirectly, controls, is controlled by, or is under common control with such stockholder, including without limitation any general partner, managing partner, managing member, officer or director of such stockholder or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such stockholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Transfer of Shares approved by a majority of the disinterested members of the Board of Directors.

Notwithstanding the foregoing, if a Permitted Transfer is approved pursuant to subsection (e) of this Section 11.3 and the Shares of the transferring party are subject to ROFR and Co-Sale Rights, the persons and/or entities entitled to the ROFR and Co-Sale Rights shall be permitted to exercise their respective ROFR and Co-Sale Rights in conjunction with that specific Permitted Transfer without any additional approval of the Board of Directors.

**Section 11.4 Legends** 

The certificates representing Shares subject to the foregoing restrictions of transfer shall bear on their face the following legend so long as the foregoing restriction on transfer remains in effect:

**"THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE BYLAWS OF THE CORPORATION. COPIES OF THE BYLAWS OF THE CORPORATION MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION."** 

**Section 11.5 Void Transfers** 

Any Transfer of Shares shall be null and void unless the terms, conditions and provisions of this Article XI are strictly observed and followed.

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**Section 11.6 Termination of Restrictions on Transfer** 

The foregoing restrictions on transfer shall lapse upon the earlier of (i) immediately prior to the consummation of a Deemed Liquidation Event (as such term is defined in the certificate of incorporation, as it may be amended and/or restated from time to time), or (ii) immediately prior to the corporation's first firm commitment underwritten public offering of its securities pursuant to a registration statement under the Securities Act of 1933, as amended."

**ARTICLE XII** 

**Forum Selection** 

**Section 12.1 Forum Selection.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless the corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, a federal or state court located in Delaware) shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee of the corporation to the corporation or the corporation's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, the certificate of incorporation or bylaws of the corporation, or (iv) any action asserting a claim governed by the internal affairs doctrine, in each such case subject to the Court of Chancery (or federal or state court in Delaware) having personal jurisdiction over the indispensable parties named as defendants in the action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any person or entity purchasing or otherwise acquiring any interest in any security of the corporation shall be deemed to have notice of and consented to the provisions of this Section 12.1.

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**CERTIFICATE OF SECRETARY** 

The undersigned, Secretary of Scribe Therapeutics, Inc., a Delaware corporation, hereby certifies that the foregoing is a full, true and correct copy of the Amended and Restated Bylaws of said corporation, with all amendments to date of this Certificate.

WITNESS the signature of the undersigned as of September 28, 2018.

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| |
|:---|
| /s/ Stephen V. Thau |
| Stephen B. Thau, Secretary |

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## Exhibit 4.2

**Exhibit 4.2** 

**AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT** 

THIS AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT (this "**Agreement**"), is made as of the 17<sup>th</sup> day of March, 2021, by and among Scribe Therapeutics Inc., a Delaware corporation (the "**Company**"), and each of the investors listed on <u>Schedule A</u> hereto, each of which is referred to in this Agreement as an "**Investor**".

**<u>RECITALS</u>**

**WHEREAS**, certain of the Investors (the "**Existing Investors**") hold shares of Series A Preferred Stock, Series A-1 Preferred Stock and Series A-2 Preferred Stock and/or shares of Common Stock issued upon conversion thereof and possess registration rights, information rights, rights of first offer, and other rights pursuant to that certain Investors' Rights Agreement dated as of October 1, 2018, by and among the Company and such Existing Investors, as amended by that Omnibus Amendment dated as of January 31, 2019 (the "**Prior Agreement**"); and

**WHEREAS**, the Existing Investors are holders of at least a majority of the Registrable Securities (as defined in the Prior Agreement), and desire to amend and restate the Prior Agreement in its entirety and to accept the rights created pursuant to this Agreement in lieu of the rights granted to them under the Prior Agreement; and

**WHEREAS**, certain of the Investors are parties to that certain Series B Preferred Stock Purchase Agreement of even date herewith by and among the Company and such Investors (the "**Purchase Agreement**"), under which certain of the Company's and such Investors' obligations are conditioned upon the execution and delivery of this Agreement by such Investors, Existing Investors holding at least a majority of the Registrable Securities, and the Company;

**NOW, THEREFORE**, the Existing Investors hereby agree that the Prior Agreement is hereby amended and restated in its entirety by this Agreement, and the parties to this Agreement further agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <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;1.1 "**Affiliate**" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer or director of such Person or any venture capital fund or other investment fund or registered investment company now or hereafter existing that is controlled by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "**Common Stock**" means shares of the Company's common stock, par value $0.001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "**Damages**" means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material

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fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "**Derivative Securities**" means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly)**,** Common Stock, including options and warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "**Excluded Registration**" means (i) a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "**Form S-1**" means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "**Form S-3**" means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits incorporation of substantial information by reference to other documents filed by the Company with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "**GAAP**" means generally accepted accounting principles in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "**Holder**" means any holder of Registrable Securities who is a party to 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;1.11 "**Immediate Family Member**" means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including, adoptive relationships, of a natural person referred to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "**Initiating Holders**" means, collectively, Holders who properly initiate a registration request under 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;1.13 "**IPO**" means the Company's first underwritten public offering of its Common Stock under the Securities Act.

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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;1.14 "**Major Investor**" means any Investor that, individually or together with such Investor's Affiliates, holds at least 440,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "**New Securities**" means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "**Person**" means any individual, corporation, partnership, trust, limited liability company, association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 **"Preferred Director**" means any director of the Company that the holders of record of Series A Preferred Stock or Series B Preferred Stock are entitled to elect, each exclusively and as a separate class, pursuant to the Certificate of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 "**Preferred Stock**" means, collectively, shares of the Company's Series A Preferred Stock, Series A-1 Preferred Stock, Series A-2 Preferred Stock and Series B Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "**Registrable Securities**" means (i) the Common Stock issuable or issued upon conversion of the Preferred Stock; (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company**,** acquired by the Investors after the date hereof; and (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in clauses <u>(i)</u> and <u>(ii)</u> above; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to <u>Subsection 6.1</u>, and excluding for purposes of <u>Section</u> <u>2</u> any shares for which registration rights have terminated pursuant to <u>Subsection 2.13</u> 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;1.20 "**Registrable Securities then outstanding**" means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "**Requisite Majority**" means the holders of at least a majority of the Registrable Securities, which must include at least a majority of the Registrable Securities issued or issuable upon conversion of the Series B Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "**Restricted Securities**" means the securities of the Company required to be notated with the legend set forth in <u>Subsection 2.12(b)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "**SEC**" means the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "**SEC Rule 144**" means Rule 144 promulgated by the SEC under the Securities Act.

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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;1.25 "**SEC Rule 145**" means Rule 145 promulgated by the SEC under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "**Securities Act**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "**Selling Expenses**" means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne and paid by the Company as provided in <u>Subsection</u> <u>2.6</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;1.28 "**Series A Preferred Stock**" means shares of the Company's Series A Preferred Stock, par value $0.001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 "**Series A-1 Preferred Stock**" means shares of the Company's Series A-1 Preferred Stock, par value $0.001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 "**Series A-2 Preferred Stock**" means shares of the Company's Series A-2 Preferred Stock, par value $0.001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31 "**Series B Preferred Stock**" means shares of the Company's Series B Preferred Stock, par value $0.001 per share

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Registration Rights</u>. The Company covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Demand Registration</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Form S-1 Demand</u>. If at any time after four (4) years after the date of this Agreement or (ii) one hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from the Holders of a Requisite Majority then outstanding or a lesser percent if the anticipated aggregate offering price, net of Selling Expenses, would exceed $15 million, that the Company file a Form S-1 registration statement with respect to a majority of the Registrable Securities then outstanding, then the Company shall (x) within ten (10) days after the date such request is given, give notice thereof (the "**Demand Notice**") to all Holders other than the Initiating Holders; and (y) as soon as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of <u>Subsections 2.1(c)</u> and <u>2.3.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Form S-3 Demand</u>. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from Holders of at least thirty percent (30%) of the Registrable Securities then outstanding that the Company file a Form S-3 registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least $5 million, then the Company shall (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders

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other than the Initiating Holders; and (ii) as soon as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of <u>Subsections 2.1(c)</u> and <u>2.3</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this <u>Subsection 2.1</u> a certificate signed by the Company's chief executive officer stating that in the good faith judgment of the Company's Board of Directors it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing for a period of not more than ninety (90) days after the request of the Initiating Holders is given; provided, <u>however</u>, that the Company may not invoke this right more than once in any twelve (12) month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to <u>Subsection 2.1(a)(i)</u> during the period that is sixty (60) days before the Company's good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; (ii) after the Company has effected two registrations pursuant to <u>Subsection 2.1(a)</u>; or (iii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to <u>Subsection 2.1(b)</u>. The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to <u>Subsection 2.1(b)</u> (i) during the period that is thirty (30) days before the Company's good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; or (ii) if the Company has effected two registrations pursuant to <u>Subsection 2.1(b)</u> within the twelve (12) month period immediately preceding the date of such request. A registration shall not be counted as "effected" for purposes of this <u>Subsection 2.1(d)</u> until such time as the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one demand registration statement pursuant to <u>Subsection 2.6</u>, in which case such withdrawn registration statement shall be counted as "effected" for purposes of this <u>Subsection 2.1(d);</u> provided, that if such withdrawal is during a period the Company has deferred taking action pursuant to Subsection 2.1(c), then the Initiating Holders may withdraw their request for registration and such registration will not be counted as "effected" for purposes of this <u>Subsection 2.1(d)</u>.

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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;2.2 <u>Company Registration</u>. If the Company proposes to register (including, for this purpose, a registration effected by the Company for stockholders other than the Holders) any of its Common Stock under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of <u>Subsection 2.3</u>, cause to be registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this <u>Subsection 2.2</u> before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with <u>Subsection 2.6</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;2.3 <u>Underwriting Requirements</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, pursuant to <u>Subsection 2.1</u>, the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to <u>Subsection 2.1</u>, and the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Company and shall be reasonably acceptable to a majority in interest of the Initiating Holders. In such event, the right of any Holder to include such Holder's Registrable Securities in such registration shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in <u>Subsection 2.4(e)</u>) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting. Notwithstanding any other provision of this <u>Subsection 2.3</u>, if the managing underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, <u>however</u>, that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any offering involving an underwriting of shares of the Company's capital stock pursuant to <u>Subsection 2.2</u>, the Company shall not be required to include any of the Holders' Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable

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discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering, or (ii) the number of Registrable Securities included in the offering be reduced below twenty percent (20%) of the total number of securities included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder's securities are included in such offering. For purposes of the provision in this <u>Subsection 2.3(b)</u> concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single "selling Holder," and any pro rata reduction with respect to such "selling Holder" shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such "selling Holder," as defined in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of <u>Subsection 2.1</u>, a registration shall not be counted as "effected" if, as a result of an exercise of the underwriter's cutback provisions in <u>Subsection</u> <u>2.3(a)</u>, fewer than fifty percent (50%) of the total number of Registrable Securities that Holders have requested to be included in such registration statement are actually included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Obligations of the Company</u>. Whenever required under this <u>Section</u> <u>2</u> to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a Requisite Majority registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, <u>however</u>, that such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration and provided, however, that such one hundred twenty (120) day period shall be extended for an additional one hundred twenty (120) day period if the Registrable Securities are offered on a delayed or continuous basis;

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company's officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus.

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In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company's directors may implement a trading program under Rule 10b5-1 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Furnish Information</u>. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this <u>Section</u> <u>2</u> with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder's Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Expenses of Registration</u>. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to <u>Section</u> <u>2</u>, including all registration, filing, and qualification fees; printers' and accounting fees; fees and disbursements of counsel for the Company; and the reasonable fees and disbursements, not to exceed $35,000, of one counsel for the selling Holders ("**Selling Holder Counsel**"), shall be borne and paid by the Company; provided, <u>however</u>, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to <u>Subsection 2.1</u> if the registration request is subsequently withdrawn at the request of the Holders of a Requisite Majority to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a Requisite Majority agree to forfeit their right to one registration pursuant to <u>Subsections 2.1(a)</u> or <u>2.1(b)</u>, as the case may be; provided <u>further</u> that if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to <u>Subsections 2.1(a)</u> or <u>2.1(b)</u>. All Selling Expenses relating to Registrable Securities registered pursuant to this <u>Section</u> <u>2</u> shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Delay of Registration</u>. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this <u>Section</u> <u>2</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;2.8 <u>Indemnification</u>. If any Registrable Securities are included in a registration statement under this <u>Section</u> <u>2</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel, accountants and investment advisers for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby

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in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; <u>provided</u>, <u>however</u>, that the indemnity agreement contained in this <u>Subsection 2.8(a)</u> shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, <u>however</u>, that the indemnity agreement contained in this <u>Subsection 2.8(b)</u> shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided <u>further</u> that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under <u>Subsections 2.8(b)</u> and <u>2.8(d)</u> exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party under this <u>Subsection 2.8</u> of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this <u>Subsection 2.8</u>, give the indemnifying party notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, <u>however</u>, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this <u>Subsection 2.8</u> but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this <u>Subsection 2.8</u> provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this <u>Subsection 2.8</u>, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, <u>however</u>, that, in any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided <u>further</u> that in no event shall a Holder's liability pursuant to this <u>Subsection 2.8(d)</u>, when combined with the amounts paid or payable by such Holder pursuant to <u>Subsection 2.8(b)</u>, exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this <u>Subsection 2.8</u> shall survive the completion of any offering of Registrable Securities in a registration under this <u>Section</u> <u>2</u>, and otherwise shall survive the termination 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;2.9 <u>Reports Under Exchange Act</u>. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO;

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); and (ii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Limitations on Subsequent Registration Rights</u>. From and after the date of this Agreement, the Company shall not, without the prior written consent of the Requisite Majority, enter into any agreement with any holder or prospective holder of any securities of the Company that (i) would provide to such holder the right to include securities in any registration on other than either a pro rata basis with respect to the Registrable Securities or on a subordinate basis after all Holders have had the opportunity to include in the registration and offering all shares of Registrable Securities that they wish to so include; or (ii) allow such holder or prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>"Market Stand-off" Agreement</u>. Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the IPO, and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective date of the registration statement for the IPO or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this <u>Subsection 2.11</u> shall apply only to the IPO and shall not apply (i) unless all officers and directors and stockholders individually owning more than one percent (1%) of the Company's outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding Preferred Stock) enter into similar agreements, (ii) to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares to any trust for the direct or indirect benefit of the Holder or the immediate family of the Holder, <u>provided</u> that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided <u>further</u> that any such transfer shall not involve a disposition for value, and shall be applicable to the Holders only if all officers and directors are subject to the same restrictions or (iii) to any shares of the Company's Common Stock acquired in the IPO or after the IPO in the open market. The underwriters in connection with such registration are intended third-party beneficiaries of this

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 <u>Subsection 2.11</u> and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this <u>Subsection 2.11</u> or that are necessary to give further effect thereto. Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject to such agreements, based on the number of shares subject to such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Restrictions on Transfer</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Preferred Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement. Notwithstanding the foregoing, the Company shall not require any transferee of shares pursuant to an effective registration statement or, following the IPO, SEC Rule 144, in each case, to be bound by the terms 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each certificate, instrument, or book entry representing (i) the Preferred Stock, (ii) the Registrable Securities, and (iii) any other securities issued in respect of the securities referenced in clauses (i) and (ii), upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of <u>Subsection 2.12(c)</u>) be notated with a legend substantially in the following form:

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this <u>Subsection 2.12</u>.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions of this <u>Section</u> <u>2</u>. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction or following the IPO, the transfer is made pursuant to SEC Rule 144, the Holder thereof shall give notice to the Company of such Holder's intention to effect such sale, pledge, or transfer, provided that no such advance notice shall be required if the intended sale, pledge or transfer complies with SEC Rule 144. Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder's expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a "no action" letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a notice, legal opinion or "no action" letter (x) in any transaction in compliance with SEC Rule 144; or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration; <u>provided</u> that with respect to transfers under foregoing clause (y) each transferee agrees in writing to be subject to the terms of this <u>Subsection 2.12</u>. Each certificate, instrument, or book entry representing the Restricted Securities transferred as above provided shall be notated with, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in <u>Subsection 2.12(b)</u>, except that such certificate instrument, or book entry shall not be notated with such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <u>Termination of Registration Rights</u>. The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to <u>Subsections 2.1</u> or <u>2.2</u> shall terminate upon the earliest to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the closing of a Deemed Liquidation Event, as such term is defined in the Company's Certificate of Incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such time after consummation of the IPO as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder's shares without limitation during a three-month period without registration; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the third anniversary of the IPO.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Information Rights</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;3.1 <u>Delivery of Financial Statements</u>. Upon the request by a Major Investor, the Company shall deliver to each Major Investor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as practicable, but in any event within one hundred twenty (120) days after the end of each fiscal year of the Company or such longer period approved by the Board of Directors, including at least two (2) Preferred Directors, (i) a balance sheet as of the end of such year, and a comparison between (x) the actual amounts as of and for such fiscal year and (y) the comparable amounts for the prior year and as included in the Budget (as defined in <u>Section</u> <u>3.1(d)</u>) for such year, with an explanation of any material differences between such amounts and a schedule as to the sources and applications of funds for such year, (ii) statements of income and of cash flows for such year, and (iii) a statement of stockholders' equity as of the end of such year, provided, that such financial statements shall be audited and certified by independent public accountants of nationally recognized standing selected by 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance sheet as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments; and (ii) not contain all notes thereto that may be required in accordance with GAAP);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as soon as practicable, but in any event within forty-five (45) days after the end of each quarter of each fiscal year of the Company, a statement showing the number of shares of each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the end of the period, the Common Stock issuable upon conversion or exercise of any outstanding securities convertible or exercisable for Common Stock and the exchange ratio or exercise price applicable thereto, and the number of shares of issued stock options and stock options not yet issued but reserved for issuance, if any, all in sufficient detail as to permit the Major Investors to calculate their respective percentage equity ownership in the Company, and certified by the chief financial officer or chief executive officer of the Company as being true, complete, and correct; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as soon as practicable, but in any event thirty (30) days before the end of each fiscal year, a budget and business plan for the next fiscal year (collectively, the "**Budget**"), prepared on a monthly basis, including balance sheets, income statements, and statements of cash flow for such months and, promptly after prepared, any other budgets or revised budgets prepared by the Company (such Budget to be approved by the Board of Directors including the vote of at least two (2) Preferred Directors).

If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries.

Notwithstanding anything else in this <u>Subsection 3.1</u> to the contrary, the Company may cease providing the information set forth in this <u>Subsection 3.1</u> during the period starting with the date sixty (60) days before the Company's good-faith estimate of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related offering; <u>provided</u> that the Company's covenants under this <u>Subsection 3.1</u> shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective.

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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;3.2 <u>Inspection</u>. The Company shall permit each Major Investor, at such Major Investor's expense, to visit and inspect the Company's properties; examine its books of account and records; and discuss the Company's affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Major Investor; provided, <u>however</u>, that the Company shall not be obligated pursuant to this <u>Subsection 3.2</u> to provide access to any information that it reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Termination of Information Rights</u>. The covenants set forth in <u>Subsection 3.1</u> and <u>Subsection 3.2</u> shall terminate and be of no further force or effect (i) immediately before the consummation of a Qualified IPO, as such term is defined in the Company's Certificate of Incorporation, or (ii) upon a Deemed Liquidation Event, as such term is defined in the Company's Certificate of Incorporation, whichever event occurs first.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Confidentiality</u>. Each Investor agrees, severally and not jointly, that such Investor will keep confidential and will not disclose or, divulge any confidential information obtained from the Company pursuant to the terms of Subsections 3.1 and 3.2 of this Agreement or notice of the Company's intention to file a registration statement, unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this <u>Subsection 3.44</u> by such Investor), (b) is or has been independently developed or conceived by the Investor or its agents without use of the Company's confidential information, or (c) is or has been made known or disclosed to the Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, <u>however</u>, that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any Registrable Securities from such Investor, provided that such Investor informs such prospective purchaser that such information is confidential and directs such Person to maintain the confidentiality of such information; (iii) to any existing Affiliate, partner (or partner of a partner), member, stockholder, or wholly owned subsidiary of such Investor in the ordinary course of business, provided that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, regulation, rule, court order or subpoena, provided that the Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Rights to Future Stock Issuances</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;4.1 <u>Right of First Offer</u>. Subject to the terms and conditions of this <u>Subsection 4.1</u> and applicable securities laws, if the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor. A Major Investor shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among (i) itself, and (ii) its Affiliates.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall give notice (the "**Offer Notice**") to each Major Investor, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By notification to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held by such Major Investor) bears to the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Stock and other Derivative Securities). At the expiration of such twenty (20) day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire all the shares available to it (each, a "**Fully Exercising Investor**") of any other Major Investor's failure to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for which Major Investors were entitled to subscribe but that were not subscribed for by the Major Investors which is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this <u>Subsection 4.1(b)</u> shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to <u>Subsection 4.1(c)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in <u>Subsection 4.1(b)</u>, the Company may, during the ninety (90) day period following the expiration of the periods provided in <u>Subsection 4.1(b)</u>, offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors in accordance with this <u>Subsection 4.1</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The right of first offer in this <u>Subsection 4.1</u> shall not be applicable to (i) Exempted Securities (as defined in the Company's Certificate of Incorporation); and (ii) shares of Common Stock issued in the IPO.

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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;4.2 <u>Termination</u>. The covenants set forth in <u>Subsection 4.1</u> shall terminate and be of no further force or effect (i) immediately before the consummation of a Qualified IPO, as such term is defined in the Company's Certificate of Incorporation, or (ii) upon a Deemed Liquidation Event, as such term is defined in the Company's Certificate of Incorporation, whichever event occurs first.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Additional Covenants</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;5.1 <u>Insurance</u>. The Company shall obtain, within ninety (90) days of the date hereof, from financially sound and reputable insurers Directors and Officers liability insurance in an amount and on terms and conditions satisfactory to the Board of Directors, and will use commercially reasonable efforts to cause such insurance policy to be maintained until such time as the Board of Directors determines that such insurance should be discontinued. Notwithstanding any other provision of this <u>Section</u> <u>5.1</u> to the contrary, for so long as a Preferred Director is serving on the Board of Directors, the Company shall not cease to maintain a Directors and Officers liability insurance policy in an amount of at least three (3) million unless approved by such Preferred Director, shall include the Investors entitled to designate the Preferred Directors pursuant to the Voting Agreement as additional insureds in such policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Employee Agreements</u>. The Company will cause each person now or hereafter employed by it or by any subsidiary (or engaged by the Company or any subsidiary as a consultant/independent contractor) with access to confidential information and/or trade secrets to enter into a nondisclosure and proprietary rights assignment agreement; provided, however, that any agreement between the Company and Jennifer Doudna will be subject to compliance with applicable policies of the Howard Hughes Medical Institute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Employee Stock. Unless otherwise approved by the Board of Directors, all future employees and consultants of the Company who purchase, receive options to purchase, or receive awards of shares of the Company's capital stock after the date hereof shall be required to execute restricted stock or option agreements, as applicable, providing for (i) vesting of shares over a four (4) year period, with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of continued employment or service, and the remaining shares vesting in equal monthly installments over the following thirty-six (36) months, (ii) a post-termination exercise period of no more than ninety (90) days and (iii) a market stand- off provision substantially similar to that in Subsection 2.11. In addition, unless otherwise approved by the Board of Directors, the Company shall retain a "right of first refusal" on employee transfers until the Company's IPO and shall have the right to repurchase unvested shares at cost upon termination of employment of a holder of restricted stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Right to Conduct Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company hereby agrees and acknowledges that AH Bio Fund II, L.P., as nominee and AH Bio Fund III, L.P., as nominee (together with their affiliates, "**AH**") is a professional investment fund, and as such invests in numerous portfolio companies, some of which may be deemed competitive with the Company's business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, AH shall not be liable to the Company for any claim arising out of, or based upon,

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(i) the investment by AH in any entity competitive with the Company, or (ii) actions taken by any partner, officer or other representative of AH to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve any of the Investors from liability associated with the unauthorized disclosure of the Company's confidential information obtained pursuant to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company hereby agrees and acknowledges that Avoro Life Sciences Fund LLC (together with its affiliates, "**Avoro**") is a professional investment fund, and as such invests in numerous portfolio companies, some of which may be deemed competitive with the Company's business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, Avoro shall not be liable to the Company for any claim arising out of, or based upon, (i) the investment by Avoro in any entity competitive with the Company, or (ii) actions taken by any partner, officer or other representative of Avoro to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve any of the Investors from liability associated with the unauthorized disclosure of the Company's confidential information obtained pursuant to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company hereby agrees and acknowledges that RA Capital Healthcare Fund, L.P. (together with its affiliates, "**RA Capital**") is a professional investment fund, and as such invests in numerous portfolio companies, some of which may be deemed competitive with the Company's business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, RA Capital shall not be liable to the Company for any claim arising out of, or based upon, (i) the investment by RA Capital in any entity competitive with the Company, or (ii) actions taken by any partner, officer or other representative of RA Capital to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve any of the Investors from liability associated with the unauthorized disclosure of the Company's confidential information obtained pursuant to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company hereby agrees and acknowledges that Wellington Biomedical Innovation Master Investors (Cayman) I L.P., or any investors or permitted transferees of Registrable Securities held by investors that are advisory or subadvisory clients of Wellington Biomedical Innovation Master Investors (Cayman) I L.P. and/or Wellington Management Company LLP ("**Wellington Investor**") is a professional investment fund, and as such invests in numerous portfolio companies, some of which may be deemed competitive with the Company's business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, Wellington Investor shall not be liable to the Company for any claim arising out of, or based upon, (i) the investment by Wellington Investor in any entity competitive with the Company, or (ii) actions taken by any partner (or partner of a partner), officer or other representative of Wellington Investor to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such

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competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve any of the Investors from liability associated with the unauthorized disclosure of the Company's confidential information obtained pursuant to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company hereby agrees and acknowledges that OrbiMed Private Investments VIII, L.P. ("**OrbiMed**") is a professional investment fund, and as such invests in numerous portfolio companies, some of which may be deemed competitive with the Company's business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, OrbiMed shall not be liable to the Company for any claim arising out of, or based upon, (i) the investment by OrbiMed in any entity competitive with the Company, or (ii) actions taken by any partner (or partner of a partner), officer or other representative of OrbiMed to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve any of the Investors from liability associated with the unauthorized disclosure of the Company's confidential information obtained pursuant to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company hereby agrees and acknowledges that Baker Brothers Life Sciences, L.P. and 667, L.P. (together with its affiliates, "**BBI**") are professional investment funds, and as such invests in numerous portfolio companies, some of which may be deemed competitive with the Company's business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, BBI shall not be liable to the Company for any claim arising out of, or based upon, (i) the investment by BBI in any entity competitive with the Company, or (ii) actions taken by any partner, officer or other representative of BBI to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve any of the Investors from liability associated with the unauthorized disclosure of the Company's confidential information obtained pursuant to 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;5.5 <u>Harassment Policy</u>. The Company shall maintain in effect (x) a Code of Conduct governing appropriate workplace behavior and (y) an Anti-Harassment and Discrimination Policy prohibiting discrimination and harassment at the Company (such policy shall be reviewed and approved by the Board of Directors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Termination of Covenants</u>. The covenants set forth in Sections 5.1, 5.2, 5.3 and 5.4 shall terminate and be of no further force or effect (i) immediately before the consummation of a Qualified IPO, as such term is defined in the Company's Certificate of Incorporation, or (ii) upon a Deemed Liquidation Event, as such term is defined in the Company's Certificate of Incorporation, whichever event occurs first.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Miscellaneous</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;6.1 <u>Successors and Assigns</u>. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that (i) is an Affiliate of a Holder; or (ii) is a Holder's Immediate Family Member or trust for the benefit of an individual Holder or one or more of such Holder's Immediate Family Members; or (iii) after such transfer, holds at least 2,000,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations, and other recapitalizations) or, if less, all of the Registrable Securities held by such Holder; provided, <u>however</u>, that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of <u>Subsection 2.11</u>. For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder's Immediate Family Member; or (3) that is a trust for the benefit of an individual Holder or such Holder's Immediate Family Member shall be aggregated together and with those of the transferring Holder; provided <u>further</u> that all transferees who would not qualify individually for assignment of rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Governing Law</u>. This Agreement shall be governed by the internal law of the State of Delaware, without regard to the conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting 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;6.5 <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth on <u>Schedule A</u> hereto, with copies to such counsel set forth next to a party's name on Schedule A hereto (which shall not constitute notice) or to the principal office of the Company and to the attention of the Chief Executive Officer, in the case of the Company, or to such email address or address as subsequently modified by written notice given

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in accordance with this <u>Subsection 6.5</u>. If notice is given to the Company, a copy shall also be sent to Orrick, Herrington & Sutcliffe, LLP, Attn: Stephen B. Thau, 51 W 52<sup>nd</sup> St, New York, NY 10019. If notice is given to the Investors, a copy shall also be sent to Gunderson, Dettmer, Stough, Villeneuve, Franklin & Hachigian, LLP, Attn: Nevin Fox, One Marina Park Drive, Suite 900, Boston, MA 02210.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Amendments and Waivers</u>. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of a Requisite Majority; provided that the Company may in its sole discretion waive compliance with <u>Subsection 2.12(c)</u> (and the Company's failure to object promptly in writing after notification of a proposed assignment allegedly in violation of <u>Subsection 2.12(c)</u> shall be deemed to be a waiver); and provided <u>further</u> that any provision hereof may be waived by any waiving party on such party's own behalf, without the consent of any other party. Notwithstanding the foregoing, (a) this Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the provisions of <u>Section</u> <u>4</u> with respect to a particular transaction shall be deemed to apply to all Investors in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company, purchase securities in such transaction) and (b) <u>Subsections 3.1</u> and <u>3.2</u>, <u>Section</u> <u>4</u> and any other section of this Agreement applicable to the Major Investors (including this clause (b) of this <u>Subsection 6.6</u>) may not be amended, modified, terminated or waived without the written consent of the holders of at least a Requisite Majority, and held by the Major Investors; provided that if <u>Section</u> <u>4</u> of this Agreement is waived pursuant to clause (b) of this <u>Subsection 6.6</u> with respect to an offering of New Securities and the Company nevertheless permits any Major Investor to purchase New Securities in such offering, then each Major Investor shall be permitted to purchase its Pro Rata Share (as defined below) of the New Securities in such offering that are allocated by the Company for purchase by the Company's existing Major Investors (the "**Allocated New Securities**") (for example, if the Company offers $100,000,000 of New Securities for sale and allocates $10,000,000 of such New Securities for purchase by the Company's existing Major Investors, then each Major Investor shall be permitted to purchase its Pro Rata Share of such $10,000,000 of New Securities). A Major Investor's "**Pro Rata Share**" shall mean up to that portion of the Allocated New Securities which equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held by such Major Investor) bears to the total Common Stock held by all Major Investors (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held by the Major Investors). The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination, or waiver. Any amendment, termination, or waiver effected in accordance with this <u>Subsection 6.6</u> shall be binding on all parties hereto, regardless of whether any such party has consented thereto. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

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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;6.7 <u>Severability</u>. In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Aggregation of Stock</u>. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Entire Agreement</u>. This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Dispute Resolution</u>. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of California and to the jurisdiction of the United States District Court for the Northern District of California for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of California or the United States District Court for the Northern District of California, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

[Remainder of Page Intentionally Left Blank]

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **SCRIBE THERAPEUTICS INC.** | **SCRIBE THERAPEUTICS INC.** |
| By: | /s/ Benjamin L. Oakes |
| Name: | Benjamin L. Oakes |
| Title: | President |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTORS:** | **INVESTORS:** |
| Signature: | /s/ Jennifer A. Doudna |
| Name: | Jennifer A. Doudna |
| Signature: | |
| Name: | David F. Savage |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTORS:** | **INVESTORS:** |
| Signature: | |
| Name: | Jennifer A. Doudna |
| Signature: | /s/ David F. Savage |
| Name: | David F. Savage |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **AVORO LIFE SCIENCES FUND LLC** | **AVORO LIFE SCIENCES FUND LLC** |
| **BY: AVORO CAPITAL ADVISORS LLC** | **BY: AVORO CAPITAL ADVISORS LLC** |
| By: | /s/ Scott Epstein |
| Name: | Scott Epstein |
| Title: | Chief Financial Officer |
| **AVORO VENTURES FUND L.P.** | **AVORO VENTURES FUND L.P.** |
| **BY:** | **AVORO VENTURES LLC** |
| By: | /s/ Scott Epstein |
| Name: | Scott Epstein |
| Title: | Chief Financial Officer and Chief Compliance Officer |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
|  **INVESTOR:** | **INVESTOR:** |
|  **AH BIO FUND II, L.P.** | **AH BIO FUND II, L.P.** |
|  for itself and as nominee for | for itself and as nominee for |
|  AH Bio Fund II-B, L.P. | AH Bio Fund II-B, L.P. |
| By: AH Equity Partners Bio II, L.L.C.<br> Its general partner | By: AH Equity Partners Bio II, L.L.C.<br> Its general partner |
| By: | /s/ Scott Kupor |
|  Name: | Scott Kupor |
|  Title: | Chief Operating Officer |
|  Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF,** the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
|  **INVESTOR:** | **INVESTOR:** |
|  **WEILL REVOCABLE TRUST** | **WEILL REVOCABLE TRUST** |
|  By: | /s/ Sanford I. Weill |
|  Name: | Sanford I. Weill |
|  Title: | Co-Strustee |
|  Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF,** the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
|  **INVESTOR:** | **INVESTOR:** |
|  **CANARAS, LLC** | **CANARAS, LLC** |
|  By: | /s/ Sanford I. Weill |
|  Name: | Sanford I. Weill |
|  Title: | Manager |
|  Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF,** the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **TURTLE POND PARTNERS 2, LLC** | **TURTLE POND PARTNERS 2, LLC** |
| By: | /s/ Michael Freedman |
| Name: | Michael Freedman |
| Title: | Managing Member |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **AH BIO FUND III, L.P.** | **AH BIO FUND III, L.P.** |
| for itself and as nominee for | for itself and as nominee for |
| AH Bio Fund III-B, L.P. | AH Bio Fund III-B, L.P. |
| AH Bio Fund III-Q, L.P. and | AH Bio Fund III-Q, L.P. and |
| CLF Partners II, LP | CLF Partners II, LP |
| By: AH Equity Partners Bio III, L.L.C.<br> Its general partner | By: AH Equity Partners Bio III, L.L.C.<br> Its general partner |
| By: | /s/ Scott Kupor |
| Name: | Scott Kupor |
| Title: | Chief Operating Officer |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **ORBIMED PRIVATE INVESTMENTS VIII, LP** | **ORBIMED PRIVATE INVESTMENTS VIII, LP** |
| By: OrbiMed Capital GP VIII LLC,<br> its General Partner | By: OrbiMed Capital GP VIII LLC,<br> its General Partner |
| By: OrbiMed Advisors LLC,<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; its Managing Member | By: OrbiMed Advisors LLC,<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; its Managing Member |
| By: | /s/ Carl Gordon |
| Name: | Carl Gordon |
| Title: | Member |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **RA CAPITAL HEALTHCARE FUND, L.P** | **RA CAPITAL HEALTHCARE FUND, L.P** |
| By: RA Capital Healthcare Fund GP, LLC<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Its General Partner | By: RA Capital Healthcare Fund GP, LLC<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Its General Partner |
| By: | /s/ Peter Kolchinsky |
| Name: | Peter Kolchinsky |
| Title: | Manager |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **RA CAPITAL NEXUS FUND II, L.P.** | **RA CAPITAL NEXUS FUND II, L.P.** |
| By: RA Capital Nexus Fund II GP, LLC<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Its General Partner | By: RA Capital Nexus Fund II GP, LLC<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Its General Partner |
| By: | /s/ Peter Kolchinsky |
| Name: | Peter Kolchinsky |
| Title: | Manager |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **WELLINGTON BIOMEDICAL INNOVATION MASTER INVESTORS (CAYMAN) I L.P.** | **WELLINGTON BIOMEDICAL INNOVATION MASTER INVESTORS (CAYMAN) I L.P.** |
| By: Wellington Management Company LLP,<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as investment advisor | By: Wellington Management Company LLP,<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as investment advisor |
| By: | /s/ Peter N. McIsaac |
| Name: | Peter N. McIsaac |
| Title: | Managing Director and Counsel |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **PERCEPTIVE LIFE SCIENCES MASTER FUND, LTD.** | **PERCEPTIVE LIFE SCIENCES MASTER FUND, LTD.** |
| By: | Perceptive Advisors, LLC |
| By: | /s/ James H. Mannix |
| Name: | James H. Mannix |
| Title: | Chief Operating Officer |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **T. Rowe Price Health Sciences Fund, Inc.** | **T. Rowe Price Health Sciences Fund, Inc.** |
| **TD Mutual Funds - TD Health Sciences Fund** | **TD Mutual Funds - TD Health Sciences Fund** |
| **T. Rowe Price Health Sciences Portfolio** | **T. Rowe Price Health Sciences Portfolio** |
| Each account, severally and not jointly | Each account, severally and not jointly |
| By: T. Rowe Price Associates, Inc., Investment<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adviser or Subadviser, as applicable | By: T. Rowe Price Associates, Inc., Investment<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adviser or Subadviser, as applicable |
| By: | /s/ Andrew Baek |
| Name: | Andrew Baek |
| Title: | Vice President |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **667, L.P.** | **667, L.P.** |
| BY: | BAKER BROS. ADVISORS LP, management company and investment adviser to **667, L.P.**, pursuant to authority granted to it by Baker Biotech Capital, L.P., general partner to 667, L.P., and not as the general partner. |
| By: | /s/ Scott Lessing |
| Name: | Scott Lessing |
| Title: | President |
| **BAKER BROTHERS LIFE SCIENCES, L.P.** | **BAKER BROTHERS LIFE SCIENCES, L.P.** |
| BY: | BAKER BROS. ADVISORS LP, management company and investment adviser to **Baker Brothers Life Sciences, L.P.**, pursuant to authority granted to it by Baker Brothers Life Sciences Capital, L.P., general partner to Baker Brothers Life Sciences, L.P., and not as the general partner. |
| By: | /s/ Scott Lessing |
| Name: | Scott Lessing |
| Title: | President |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **MENLO VENTURES XV, L.P.** | **MENLO VENTURES XV, L.P.** |
| **MENLO XV INNOVATORS FUND, L.P.<br>MMEF XV, L.P.** | **MENLO XV INNOVATORS FUND, L.P.<br>MMEF XV, L.P.** |
| By: | MV Management XV, L.L.C. |
| Their: | General Partner |
| By: | /s/ Matt Murphy |
| Name: | Matt Murphy |
| Title: | Managing Member |
| Address: |  |

---

**SIGNATURE PAGE TO SERIES B INVESTORS RIGHTS AGREEMENT** 

------

**<u>SCHEDULE A</u>**

**INVESTORS** 

**<u>Name and Address</u>**

**AH Bio Fund II, L.P., as nominee**

**AH Bio Fund III, L.P., as nominee** 

Address:

**Jennifer A. Doudna** 

**David F. Savage** 

Address:

**Pratik Shah** 

Address:

**Weill Revocable Trust** 

**Canaras, LLC**

**Turtle Pond Partners 2, LLC** 

Address:

**Avoro Life Sciences Fund LLC**

**Avoro Ventures Fund L.P.** 

Address:

**Orbimed Private Investments VIII, LP** 

Address:

**RA Capital Healthcare Fund, L.P.**

**RA Capital Nexus Fund II, L.P.** 

Address:

**Wellington Biomedical Innovation Master Investors (Cayman) I L.P.** 

Address:

Email:

With a copy (which shall not constitute notice) to:

Wilmer Cutler Pickering Hale and Dorr LLP

Email:

**Perceptive Life Sciences Master Fund, Ltd.** 

Address:

------

**T. Rowe Price Health Sciences Fund, Inc.** 

**TD Mutual Funds - TD Health Sciences Fund** 

**T. Rowe Price Health Sciences Portfolio** 

Address:

Phone:

Email:

**667, L.P.** 

**Baker Brothers Life Sciences, L.P.** 

Address:

**Menlo Ventures XV, L.P.** 

**Menlo XV Innovators Fund, L.P.** 

**MMEF XV, L.P.** 

Address:

Email:

## Exhibit 4.3

**Exhibit 4.3** 

**WARRANT** 

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

THE SALE, PLEDGE, HYPOTHECATION, OR TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT BY AND AMONG THE REGISTERED HOLDER, THE COMPANY AND CERTAIN OTHER HOLDERS OF STOCK OF THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

Warrant No. 1 Date of Issuance: September 24, 2020

Number of Shares: 440,133

(subject to adjustment)

**SCRIBE THERAPEUTICS INC.** 

**<u>STOCK PURCHASE WARRANT</u>**

Scribe Therapeutics Inc., a Delaware corporation (the "<u>Company</u>"), for value received, hereby certifies that Shellwater & Co., as nominee for The Regents of the University of California, a California public corporation, or its registered assigns (the "<u>Registered Holder</u>"), is entitled, subject to the terms set forth below, to purchase from the Company, at any time after the date hereof and on or before the Expiration Date (as defined in Section 8 of this Warrant) the number of shares set forth above of Common Stock of the Company at a price of $0.52 per share (subject to adjustment as provided herein). The shares purchasable upon exercise of this Warrant, and the purchase price per share, as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the "<u>Warrant Stock</u>" and the "<u>Purchase Price,</u>" respectively.

This Warrant is issued pursuant to, and is subject to the terms and conditions of, the Amended and Restated Exclusive License Agreement, dated on or about September 24, 2020, between the Company and the Regents of the University of California ("<u>The Regents</u>") (the "<u>Agreement</u>"). This Warrant is issued as partial consideration for the execution of the Agreement by The Regents.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Number of Shares</u>**. Subject to the terms and conditions hereinafter set forth, the Registered Holder is entitled, upon surrender of this Warrant, to purchase from the Company the number of shares (subject to adjustment as provided herein) of Warrant Stock first set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Exercise</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;(a) **<u>Manner of Exercise</u>.** This Warrant may be exercised by the Registered Holder, in whole or in part, by surrendering this Warrant, with the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or by such Registered Holder's duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full of the Purchase Price payable in respect of the number of shares of Warrant Stock purchased upon such exercise. The Purchase Price may be paid by cash, check, wire transfer, or by the surrender of promissory notes or other instruments representing indebtedness of the Company to the Registered Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Effective Time of Exercise</u>.** Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 2(a). At such time, the person or persons in whose name or names any notices of issuance for Warrant Stock shall be issuable upon such exercise as provided in Section 2(d) shall be deemed to have become the holder or holders of record of the Warrant Stock referred to in such notices of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Net Issue Exercise</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In lieu of exercising this Warrant in the manner provided in Section 2(a), the Registered Holder may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice of such election on the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or such Registered Holder's duly authorized attorney, in which event the Company shall issue to such Registered Holder a number of shares of Warrant Stock computed using the following formula:

![LOGO](g21355g41k47.jpg)

Page 2 of 15

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---

| | | |
|:---|:---|:---|
| Where | X = | The number of shares of Warrant Stock to be issued to the Registered Holder. |
|  | Y = | The total number of shares of Warrant Stock for which the Registered Holder has elected to exercise this Warrant (at the date of exercise). |
|  | A = | The fair market value of one share of Warrant Stock (at the date of exercise). |
|  | B = | The Purchase Price in effect under this Warrant as of the applicable date of exercise. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 2(c), the fair market value of Warrant Stock on the date of exercise shall mean with respect to each share of Warrant Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if the exercise is in connection with an initial public offering of the Company's common stock, and if the Company's registration statement relating to such public offering has been declared effective by the Securities and Exchange Commission, then the fair market value shall be the initial "Price to Public" per share specified in the final prospectus with respect to the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if this Warrant is exercised after, and not in connection with, the Company's initial public offering, and if the Company's common stock is traded on a domestic securities exchange or actively traded over-the-counter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if the Company's common stock is traded on a domestic securities exchange, the fair market value shall be deemed to be the average of the closing prices over a thirty (30) day period ending three days before date of exercise; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if the Company's common stock is actively traded over-the-counter, the fair market value shall be deemed to be the average of the closing bid or sales price (whichever is applicable) over the thirty (30) day period ending three days before the date of exercise; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if neither (A) nor (B) is applicable, the fair market value of Warrant Stock shall be at the highest price per share which the Company could obtain on the date of exercise from a willing buyer (not a current employee or director) for shares of Warrant Stock sold by the Company, from authorized but unissued shares, as determined in good faith by the Board of Directors, unless the Company is at such time subject to an acquisition as described in Section 9(b), in which case the fair market value of Warrant Stock shall be deemed to be the value received by the holders of such stock pursuant to such acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Delivery to Holder</u>.** As promptly as practicable after the exercise of this Warrant in whole or in part, and in any event within ten (10) days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 certificate or certificates representing the number of shares of Warrant Stock to which such Registered Holder shall be entitled upon such exercise, and

Page 3 of 15

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock equal (without giving effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of such shares purchased by the Registered Holder upon such exercise as provided in Sections 2(a) or 2(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;(e) Conditional Exercise. Notwithstanding any other provision hereof, if an exercise of any portion of this Warrant is to be made in connection with a public offering or a sale of the Company (pursuant to a merger, sale of stock, or otherwise), such exercise may at the election of the Registered Holder be conditioned upon the closing of such transaction, in which case such exercise shall not be deemed to be effective until immediately prior to the closing of such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Adjustments</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;(a) **<u>Stock Splits and Dividends</u>.** If the Company's outstanding shares of the same class as the Warrant Stock shall be subdivided into a greater number of shares or a dividend in the Company's shares of the same class as the Warrant Stock shall be paid in respect of the Company's shares of the same class as the Warrant Stock, the Purchase Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced and the number of shares of Warrant Stock issuable upon exercise of this Warrant shall be proportionately increased. If the Company's outstanding shares of the same class as the Warrant Stock shall be combined into a smaller number of shares (by combination, reverse stock split or otherwise), the Purchase Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased and the number of shares of Warrant Stock issuable upon exercise of this Warrant shall be proportionately decreased. When any adjustment is required to be made in the Purchase Price, the number of shares of Warrant Stock purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment. Any adjustment under this Section (a)(a)shall become effective at the close of business on the date the dividend, subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Reclassification, Etc</u>.** In case there occurs any (i) reclassification or change of the outstanding securities of the Company (other than a change in par value or from par value to no par value or from no par value to par value or as a result of a stock dividend or subdivision, split-up or combination of shares), (ii) reorganization (or consolidation) of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant), or (iii) any similar transaction (other than any such transaction covered by Section 3((a)) on or after the date hereof, then and in each such case the Registered Holder, upon the exercise hereof at any time after the consummation of such

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reclassification, change, reorganization or similar transaction shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to such consummation, the stock or other securities or property to which such Holder would have been entitled upon such consummation if such Holder had exercised this Warrant immediately prior thereto, all subject to further adjustment pursuant to the provisions of this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Adjustment Certificate</u>.** When any adjustment is required to be made in the Warrant Stock or the Purchase Price pursuant to this Section 3, the Company shall promptly but in any event not later than ten (10) days, mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Purchase Price after such adjustment and (iii) the kind and amount of stock or other securities or property into which this Warrant shall be exercisable after such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Transfers</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;(a) **<u>Unregistered Security</u>.** Each holder of this Warrant acknowledges that none of the Company's securities (including this Warrant and the Warrant Stock) have been registered under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise (or any securities issued by the Company upon conversion or exchange thereof) in the absence of (i) an effective registration statement under the Securities Act as to the sale of any such securities and registration or qualification of such securities under any applicable U.S. federal or state securities law then in effect, or (ii) an opinion of counsel, satisfactory to the Company, that such registration and qualification are not required. Each notice of issuance with respect to Warrant Stock issued upon the exercise of this Warrant (and any securities issued by the Company upon conversion or exchange thereof) shall bear a legend substantially to the foregoing effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Transferability</u>.** Subject to the provisions of Section 4(a) hereof, the "Lockup" provisions in Section 6, the Company's Amended and Restated Bylaws (as amended from time to time) (the "<u>Bylaws</u>"), including, without limitation, the transfer restrictions set forth in Article XI of the Bylaws, the ROFR Agreement (as defined below), the Voting Agreement (as defined below) and any other agreement between Registered Holder and the Company relating to transferability of such Registered Holder's securities of the Company, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of the Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the principal office of the Company. The Registered Holder acknowledges and agrees that this Warrant (including all interests in the Warrant Stock) and all shares issued upon exercise of this Warrant (or any securities issued by the Company upon conversion or exchange thereof) are subject to the terms and conditions set forth in the Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Warrant Register</u>.** The Company will maintain a register containing the names and addresses of the Registered Holders of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary. Any Registered Holder may change such Registered Holder's address as shown on the warrant register by written notice to the Company requesting such change.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Representations and Warranties of the Registered Holder</u>.** The Registered Holder hereby represents and warrants, as of the date hereof, to the Company 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;(a) **<u>Authorization</u>.** The Registered Holder has full power and authority to enter into this Warrant. The Warrant, when executed and delivered by the Registered Holder, will constitute a valid and legally binding obligation of the Registered Holder, enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors' rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Purchase Entirely for Own Account</u>.** This Warrant is issued to the Registered Holder in reliance upon the Registered Holder's representation to the Company, which by the Registered Holder's acceptance of this Warrant, the Registered Holder hereby confirms, that the Warrant to be acquired by the Registered Holder and the Warrant Stock (and any securities issued by the Company upon conversion or exchange thereof) (collectively, the "<u>Securities</u>") will be acquired for investment to be held in the name of its nominee, Shellwater & Co., without a view to the resale or distribution of any part thereof, and that the Registered Holder has no present intention of selling, granting any participation in, or otherwise distributing the same. By accepting this Warrant, the Registered Holder further represents that the Registered Holder does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Securities. Notwithstanding the foregoing, the Registered Holder may, or may direct Company to, transfer an inventor's share under The Regents Patent Policy, of the Warrant or Warrant Stock due to the Registered Holder to the Registered Holder investors of the patent rights licensed to Company under the Agreement. The Registered Holder has not been formed for the specific purpose of acquiring the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Disclosure of Information</u>.** The Registered Holder has had an opportunity to discuss the Company's business, management, financial affairs and the terms and conditions of the offering of the Securities with the Company's management and has had an opportunity to review the Company's facilities. The Registered Holder understands that such discussions, as well as any written information delivered by the Company to the Registered Holder, were intended to describe the aspects of the Company's business which it believes to be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Restricted Securities</u>.** The Registered Holder understands that the Securities have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the *bona fide* nature of the investment intent and the accuracy of the Registered Holder's representations as expressed herein. The Registered Holder understands that the Securities are "restricted securities" under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Registered Holder must hold the Securities indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state

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authorities, or an exemption from such registration and qualification requirements is available. The Registered Holder acknowledges that the Company has no obligation to register or qualify the Securities for resale. The Registered Holder further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the Company which are outside of the Registered Holder's control, and which the Company is under no obligation and may not be able to satisfy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>No Public Market</u>.** The Registered Holder understands that no public market now exists for any of the securities issued by the Company, and that the Company has made no assurances that a public market will ever exist for the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Accredited or Sophisticated Investor</u>.** The Registered Holder is (i) an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act or (ii) a sophisticated investor, experienced in investing in securities of emerging growth companies and acknowledges that the Registered Holder is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Representations and Warranties of the Company</u>.** <u>The Company hereby represents and warrants to the Registered Holder</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;(a) Organization and Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect. The Company has all requisite corporate power and authority to own and operate its properties and assets and to carry on its business as presently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Capitalization. The authorized capital stock of the Company consists of 30,530,000 shares of common stock, par value $0.001, and 12,582,117 shares of preferred stock. 12,800,742 shares of common stock and 12,582,118 shares of preferred stock are issued and outstanding. All of the outstanding shares of the Company have been duly authorized, are fully paid up and nonassessable and were issued in compliance with all federal and state securities laws. The Company holds no stock in its treasury.

The Company has reserved 3,959,391 shares of its common stock for issuance to officers, directors, employees and consultants pursuant to its 2018 Stock Incentive Plan (the "Equity Incentive Plan"). Of such reserved shares of common stock, options to purchase 1,802,308 shares have been granted and are currently outstanding, and 1,862,711 shares of common stock remain available for issuance to officers, directors, employees and consultants under the Equity Incentive Plan.

Other than (i) the conversion privileges, and other rights, privileges and preferences of the preferred stock as stated in the Company's Certificate of Incorporation and as provided by the Delaware General Corporation Law, (ii) as set forth in this Warrant, and (iii) the rights provided in the Company's Investors' Rights Agreement (as may be amended from time to

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time), there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from the Company any shares of common stock or preferred stock, or any securities convertible into or exchangeable for shares of common stock or preferred stock. All outstanding shares of the Company's common stock are subject to (i) a right of first refusal in favor of the Company upon any proposed transfer (other than transfers for estate planning purposes); and (ii) a lock-up or market standoff agreement of not less than one hundred eighty (180) days following the effective date of a registration statement filed under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to the exercise of this Warrant, the Company hereby further represents, covenants and agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Warrant is, and any Warrant issued in substitution for or replacement of this Warrant shall be, upon issuance, duly authorized, legally binding and validly issued. All corporate actions on the part of the Company, its officers, directors and stockholders necessary for the issuance of this Warrant have been taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All shares of Warrant Stock issuable upon the exercise of this Warrant pursuant to the terms hereof shall be, upon issuance, and the Company shall take all such actions as may be necessary or appropriate in order that such shares of Warrant Stock are, validly issued, fully paid and non-assessable, issued without violation of any preemptive or similar rights of any stockholder of the Company and free and clear of all taxes, liens and charges. The number of shares of Warrant Stock first set forth above are equal to one and one-half percent (1.5%) of the Company's common stock on a FULLY-DILUTED BASIS (as defined in the Agreement) as of the effective date of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall take all such actions as may be necessary to ensure that all such shares of Warrant Stock are issued without violation by the Company of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which shares of common stock or other securities constituting shares of Warrant Stock may be listed at the time of such exercise (except for official notice of issuance which shall be immediately delivered by the company upon each such issuance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Lock-up Agreement.</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;(a) **<u>Lock-up Period; Agreement</u>.** If so requested by the Company or the underwriters in connection with the initial public offering of the Company's securities registered under the Securities Act, as amended, Registered Holder shall not sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company however or whenever acquired (except for those being registered or acquired in or after the IPO) without the prior written consent of the Company or such underwriters, as the case may be, for 180 days from the effective date of the registration statement, and Registered Holder shall execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of such offering. The foregoing provisions of this Section 7 shall be applicable to the Registered Holder only if all officers, directors, and stockholders individually owning more than two percent (2%) of the Company's outstanding common stock (after giving effect to conversion into common stock of all outstanding preferred stock) are similarly bound.

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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;(b) **<u>Stop-Transfer Instructions</u>.** In order to enforce the foregoing covenants, the Company may impose stop-transfer instructions with respect to the securities of the Registered Holder (and the securities of every other person subject to the restrictions in Section 7(a)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Transferees Bound</u>.** The Registered Holder agrees that prior to the Company's initial public offering it will not transfer securities of the Company unless each transferee agrees in writing to be bound by all of the provisions of this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Termination</u>.** This Warrant (and the right to purchase securities upon exercise hereof) shall terminate upon the earliest to occur of the following (the "<u>Expiration Date</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;(a) the tenth (10th) anniversary of the date of issuance first set forth above, 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;(b) the closing of a firm commitment underwritten public offering pursuant to a registration statement under the Securities Act, in connection with which all of the shares of the Company's preferred stock are converted to common stock as set forth in the Company's Certificate of Incorporation (an "<u>IPO</u>"), 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;(c) the sale, conveyance or disposal of all or substantially all of the Company's property or business or the Company's merger with or into or consolidation with any other corporation (other than a wholly-owned subsidiary of the Company) or any other transaction or series of related transactions in which more than fifty percent (50%) of the voting securities of the Company is disposed of (a "<u>Change of Control</u>"), provided that this Section 8(c) shall not apply to a merger effected exclusively for the purpose of changing the domicile of the Company or to an equity financing in which the Company is the surviving corporation.

Notwithstanding the foregoing Section 8(a), 8(b) and 8(c), if the Registered Holder has not exercised this Warrant in full prior to the Expiration Date, the closing of a Change of Control or an IPO, this Warrant shall automatically be deemed to be exercised in full in the manner set forth in Section 2(c) (Net Issue Exercise), without any further action on behalf of the Registered Holder, immediately prior to such closing; provided that if the Purchase Price exceeds the fair market value of one share of Warrant Stock, as determined by Section 2(c) as of immediately prior to such closing, the Warrant shall terminate as of immediately prior to such closing and not be deemed to be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Notices of Certain Transactions</u>.** In case:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company shall take a record of the holders of its outstanding stock of the same class as the Warrant Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all of the assets of the Company,

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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;(c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company,

then, and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion is to take place, and the time, if any is to be fixed, as of which the holders of record of the Company's outstanding stock of the same class as the Warrant Stock (or such other stock or securities at the time deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion) are to be determined. Such notice shall be mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Reservation of Stock</u>.** The Company will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such shares of Warrant Stock and other stock, securities and property, as from time to time shall be issuable upon the exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Exchange of Warrants</u>.** Upon the surrender by the Registered Holder of any Warrant or Warrants, properly endorsed, to the Company at the principal office of the Company, the Company will issue and deliver to or upon the order of such Registered Holder, at the Company's expense, a new Warrant or Warrants of like tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock called for on the face or faces of the Warrant or Warrants so surrendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Replacement of Warrants</u>.** Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>No Rights as Stockholder</u>.** Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any rights by virtue hereof as a stockholder of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>No Fractional Shares</u>.** No fractional shares of Warrant Stock will be issued in connection with any exercise hereunder. In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one share of Warrant Stock on the date of exercise, as determined by a nationally recognized investment banking, accounting or valuation firm jointly selected by the Company and the Registered Holder. The determination of such firm shall be final and conclusive, and the fees and expenses of such valuation firm shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Survival of Representations</u>.** Unless otherwise set forth in this Warrant, the representations, warranties and covenants contained in or made pursuant to this Warrant shall survive the execution and delivery of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Attorney's Fees</u>.** If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of any of this Warrant, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Binding Agreements</u>.** With respect to the Warrant and Warrant Stock, the Registered Holder agrees to be bound by the terms and conditions of (i) the Voting Agreement, dated October 1, 2018, by and among the Company and the stockholders listed on schedules thereto (the "<u>Voting Agreement</u>") and (ii) the Right of First Refusal and Co-Sale Agreement, dated October 1, 2018, by and among the Company and the stockholders listed on schedules thereto (the "<u>ROFR Agreement</u>"), in each case as a "Key Holder" and "Stockholder" thereunder (collectively, such agreements, the "<u>Binding Agreements</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Miscellaneous</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;(a) **<u>Governing Law</u>.** The validity, interpretation, construction and performance of this Warrant, and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the state of California, without giving effect to principles of conflicts of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Entire Agreement</u>.** This Warrant, the Agreement and the Binding Agreements set forth the entire agreement and understanding of the parties relating to the subject matter herein and supersedes all prior or contemporaneous discussions, understandings and agreements, whether oral or written, between them relating to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Amendments and Waivers</u>.** No modification of or amendment to this Warrant, nor any waiver of any rights under this Warrant, shall be effective unless in writing signed by the Company and the Registered Holder. No delay or failure to require performance of any provision of this Warrant shall constitute a waiver of that provision as to that or any other instance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Successors and Assigns</u>.** The terms and conditions of this Warrant shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Notices</u>.** Any notice, demand or request required or permitted to be given under this Warrant shall be in writing and shall be deemed sufficient when delivered personally by hand (with written confirmation of receipt) or by overnight courier, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party's address as set forth on the signature page, as subsequently

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modified by written notice, or if no address is specified on the signature page, at the most recent address set forth in the Company's books and records. In case of notices to the Registered Holder, a copy of any such correspondence, which shall not constitute notice, shall be sent via email to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Severability</u>.** If one or more provisions of this Warrant are held to be invalid or unenforceable under applicable law, the parties agree to renegotiate such provision in good faith to modify this Warrant so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Warrant, (b) the balance of this Warrant shall be interpreted as if such provision were so excluded and (c) the balance of this Warrant shall be enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **<u>Construction</u>.** This Warrant is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Warrant shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **<u>Counterparts</u>.** This Warrant may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

*[Signature Page Follows]* 

Page 12 of 15

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IN WITNESS WHEREOF, the Company and the Registered Holder have executed this Warrant as of the date first set forth above.

---

| | |
|:---|:---|
| **THE COMPANY:** | **THE COMPANY:** |
| SCRIBE THERAPEUTICS INC. | SCRIBE THERAPEUTICS INC. |
| By: | /s/ Benjamin Oakes |
|  | Name: Benjamin L. Oakes |
|  | Title: President and CEO |
| Address: | Address: |
| 1150 Marina Village Pkwy, | 1150 Marina Village Pkwy, |
| Alameda, CA 94530 | Alameda, CA 94530 |
| United States | United States |

---

---

| | |
|:---|:---|
| ACCEPTED AND AGREED: | ACCEPTED AND AGREED: |
| **THE REGISTERED HOLDER:** | **THE REGISTERED HOLDER:** |
| SHELLWATER & CO. AS NOMINEE <br>FOR THE REGENTS OF THE UNIVERSITY OF CALIFORNIA | SHELLWATER & CO. AS NOMINEE <br>FOR THE REGENTS OF THE UNIVERSITY OF CALIFORNIA |
| By: | /s/ Jim Castro |
|  | Name: Jim Castro |
|  | Title: Director |
| Address: | Address: |
| Office of the CIO, 1111 Franklin St, 9th Floor | Office of the CIO, 1111 Franklin St, 9th Floor |
| Oakland, CA 94607 | Oakland, CA 94607 |
| Email: |  |

---

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**33. EXHIBIT A** 

**PURCHASE/EXERCISE FORM** 

To: Scribe Therapeutics Inc. Dated:<u> </u>

The undersigned, pursuant to the provisions set forth in the attached Warrant No. ____, hereby irrevocably elects to (a) purchase ____________________ shares of the capital stock covered by such Warrant and herewith makes payment of $____________________, representing the full purchase price for such shares at the price per share provided for in such Warrant, or (b) exercise such Warrant for ____________________ shares purchasable under the Warrant pursuant to the Net Issue Exercise provisions of Section 2(c) of such Warrant.

The undersigned acknowledges that it has reviewed the representations and warranties of the Registered Holder set forth in the Warrant and by its signature below hereby makes such representations and warranties to the Company. Defined terms contained in such representations and warranties shall have the meanings assigned to them in the Warrant.

The undersigned further acknowledges that it has reviewed the "Lockup" provisions, and other provisions set forth in the Warrant and agrees to be bound by such provisions.

---

| |
|:---|
| **ACKNOWLEDGED AND AGREED TO BY THE REGISTERED HOLDER:** |
| ((Registered Holder) |
| By: |

---

---

| | |
|:---|:---|
|  | (Signature) |
| Name: |  |
| Title: |  |
| Address: | Address: |
| Email: |  |

---

------

**34. EXHIBIT B** 

**ASSIGNMENT FORM** 

FOR VALUE RECEIVED, _________________________________________ hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant with respect to the number of shares of capital stock covered thereby set forth below, unto:

---

| | | |
|:---|:---|:---|
| **Name of Assignee** | **Address/Facsimile** | **Number No. of Shares** |

---

---

| |
|:---|
| **ACKNOWLEDGED AND AGREED TO BY THE REGISTERED HOLDER:** |
| ((Registered Holder) |
| By: |

---

---

| | |
|:---|:---|
|  | (Signature) |
| Name: |  |
| Title: |  |
| Address: | Address: |
| Email: |  |

---

## Exhibit 4.4

**Exhibit 4.4** 

EXECUTION VERSION

THIS CONVERTIBLE PROMISSORY NOTE, AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS CONVERTIBLE PROMISSORY NOTE, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "**SECURITIES ACT**"), OR THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION UNDER SUCH LAWS OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENT. THE ISSUER OF THIS CONVERTIBLE PROMISSORY NOTE, AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS CONVERTIBLE PROMISSORY NOTE, MAY REQUIRE AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER, TO THE EFFECT THAT ANY SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS.

**SCRIBE THERAPEUTICS, INC.** 

**8% CONVERTIBLE PROMISSORY NOTE** 

*Due May 11, 2026* 

---

| | |
|:---|:---|
| $30000000 | May 11, 2023 |

---

For value received, Scribe Therapeutics, Inc. (the "**Company**"), hereby promises to pay to the order of Eli Lilly and Company (hereinafter, together with its successors in title and assigns, referred to as the "**Holder**"), on May 11, 2026 (the "**Maturity Date**"), the principal amount of *Thirty Million U.S. Dollars* ($30,000,000), together with interest thereon as set forth below (the "**Amount Due**"), unless earlier repaid or converted pursuant to the terms and conditions of this Convertible Promissory Note (this "**Note**"). The Maturity Date can be extended in the sole discretion of the Holder by providing written notice to the Company.

This Note is issued by the Company pursuant to that certain Convertible Promissory Note Purchase Agreement, dated as of May 11, 2023, by and between the Company and the Holder (the "**Purchase Agreement**"). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Interest</u>. From and after the date hereof, this Note shall bear interest at an annual rate of eight percent (8%), compounded annually. Interest shall be computed on the basis of a 365-day year for the actual number of days elapsed but in no event shall the rate of interest exceed the maximum rate, if any, allowable under applicable law. Interest shall accrue and not be payable until converted as provided in <u>Section</u> <u>4</u> hereof or paid in connection with repayment in full of the principal amount of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payments</u>. Payment of principal and interest shall be made in immediately available funds in lawful currency of the United States of America at the offices of the Holder or at such other place as the Holder hereof shall have designated to the Company in writing. Payment shall be credited first to costs, expenses or charges (if any) then payable to the Holder, then to accrued interest then due and payable, and then to principal.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>No Prepayments</u>. Except as otherwise provided in this Note, the Company is prohibited from repaying any principal amount or accrued interest on this Note prior to the Maturity Date without the written consent of the Holder, which written consent may be withheld or delivered in the Holder's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Conversion of this Note</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Definitions</u>.

"**Affiliate**" means, with respect to any specified Person, any other Person who or which, directly or indirectly, controls, or is controlled by, or is under common control with such specified Person. For purposes of this definition, "control," "controlled by" and "under common control with" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

"**Business Days**" means any day other than a Saturday or Sunday or any day on which the Federal Reserve Bank of New York is closed or any day on which banks in the city of New York, New York are required or permitted to close.

"**Change of Control**" means (i) a merger or consolidation in which the Company is a constituent party or a subsidiary of the Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger or consolidation involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock that represent, immediately following such merger or consolidation, at least a majority of the capital stock or voting power of (a) the surviving or resulting corporation (or other entity), or (b) if the surviving or resulting corporation (or other entity) is a wholly owned subsidiary of another corporation (or other entity) immediately following such merger or consolidation, the parent corporation (or other entity) of such surviving or resulting corporation (or other entity), or (ii) the sale, lease, exclusive license, transfer or other disposition of the assets or intellectual property of the Company and its subsidiaries (other than to a wholly-owned subsidiary of the Company) having a book value of fifty-one percent (51%) or more of the book value of all the assets and intellectual property thereof on a consolidated basis.

"**Change of Control Conversion Price**" means a fifteen percent (15%) discount to the price per share received by holders of shares of Series B Preferred Stock (or Common Stock if all the Series B Preferred Stock shall have been converted into Common Stock) in a Change of Control transaction.

"**Common Stock**" means the common stock, par value $0.001 per share, of the Company.

"**Common Stock Conversion Price**" means $6.0513 per share, subject to adjustment for stock splits, stock dividends and the like, and as set forth in <u>Sections 7.5 and 7.6</u> of this Note.

------

"**Discount Rate**" means ninety five percent (95%) if the Qualified Financing or Public offering, as applicable, is consummated within six months of the date hereof, ninety percent (90%) if the Qualified Financing or Public Offering, as applicable, is consummated after six months and within twelve (12) months of the date hereof, and eighty-five percent (85%) if the Qualified Financing or Public Offering, as applicable, is consummated after twelve (12) months of the date hereof.

"**Down Round**" means an equity financing, other than a Qualified Financing, in which the Company issues Common Stock or securities convertible into Common Stock in a transaction that results in a reduction to the conversion price of the Company's Series B Preferred Stock.

"**Equity Securities**" means the Common Stock, Series B Preferred Stock, or Shadow Preferred Stock issued upon conversion of this Note under this <u>Section</u> <u>4</u>.

"**Equity Conversion Cap**" means nineteen percent (19%) of the outstanding shares of Common Stock on a Fully Diluted Basis.

"**Excess Amount Due**" means, to the extent applicable, the Amount Due minus the Amount Due converted to Equity Securities pursuant to <u>Section</u> <u>4</u> of this Note.

"**Fully Diluted Basis**" means the number of shares of Common Stock outstanding, assuming for such purpose the conversion or exercise, as applicable, into Common Stock of all convertible securities (including warrants and other purchase rights) and stock options then outstanding or authorized for issuance under the Company's stock option and grant plan.

"**Material Indebtedness**" means an obligation of indebtedness, in an amount of *Ten Million U.S. Dollars* ($10,000,000) or more, for borrowed money, under capitalized leases or evidenced by a bond, debenture, note or similar instrument, and shall include, without limitation, any such indebtedness assumed or guaranteed.

"**Person**" means any individual, corporation, partnership, trust, limited liability company, association or other entity.

"**Preferred Stock**" means the preferred stock, par value $0.001 per share, of the Company to be authorized immediately prior to the closing of the Qualified Financing.

"**Public Offering**" means (i) a Qualified IPO or (ii) a SPAC Transaction.

"**Qualified Financing**" means the first bona fide sale (or series of related sales) by the Company of Preferred Stock after the date hereof resulting in aggregate proceeds to the Company of at least *Thirty Five Million U.S. Dollars* ($35,000,000), excluding conversion of this Note and any other convertible securities that are converted in a Qualified Financing.

"**Qualified IPO**" means the closing of the sale of shares of Common Stock to the public in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act resulting in at least $100,000,000 of gross proceeds to the Company.

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"**Series B Preferred Stock**" means the Series B Preferred Stock, par value $0.001 per share, designated in that certain Amended And Restated Certificate of Incorporation of Scribe Therapeutics, Inc., dated March 16, 2021.

"**Shadow Preferred Stock**" means shares of Preferred Stock having identical rights, privileges, preferences, and restrictions as the Preferred Stock sold and issued in a Qualified Financing, provided that (i) the per share liquidation preference and the initial conversion price for purposes of price-based anti-dilution protection shall be equal to the Discount Price (defined below) and (ii) the basis for any dividend rights in respect of a share of Shadow Preferred Stock shall be based on the Discount Price (it being the understanding of the parties that the amount of any dividends payable in respect of the shares of Shadow Preferred Stock shall be proportionately reduced (relative to the amount of any corresponding dividends payable in respect of the shares of Preferred Stock) in a manner consistent with the calculation of the Discount Price).

"**SPAC Transaction**" means a transaction or series of related transactions by merger, consolidation, share exchange or otherwise of the Company with a publicly traded "special purpose acquisition company" or its subsidiary (collectively, a "**SPAC**"), immediately following the consummation of which the common stock or share capital of the SPAC or its successor entity is listed on the Nasdaq Stock Market, the New York Stock Exchange or another exchange or marketplace approved by the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Financing Conversion</u>. If a Qualified Financing occurs on or prior to the Maturity Date, this Note shall be automatically converted into shares of Shadow Preferred Stock. Subject to <u>Section</u> <u>4.6</u>, the number of shares of Shadow Preferred Stock to be issued upon conversion of this Note shall be equal to the quotient obtained by dividing (i) the Amount Due on the date of conversion by (ii) the product of the Discount Rate and the per share price of the Preferred Stock issued and sold in a Qualified Financing(the "**Discount Price**"),rounding up to the nearest whole number of shares of Shadow Preferred Stock. The Excess Amount Due (if any) shall be paid by the Company to the Holder in accordance with <u>Section</u> <u>4.6</u> of this Note. Additionally, in connection with a Qualified Financing and conversion pursuant to this <u>Section</u> <u>4.2</u>, the Holder hereby agrees, as a condition to such conversion, to execute and become a party to all agreements entered into by and among the Company and all other investors participating in such Qualified Financing; provided that in no event shall the Holder be required to agree to any non-competition, non-solicitation, or other similar restrictive covenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Change of Control</u>. In the event of a Change of Control, as of immediately prior to the closing thereof, the Holder shall have the option to either (A) demand repayment of the Note in-full and in cash at one-hundred-fifteen percent (115%) of the Amount Due; or (B) convert the Amount Due into shares of Series B Preferred Stock (or Common Stock if all shares of Series B Preferred Stock shall have been converted into Common Stock) at the Change of Control Conversion Price. Subject to <u>Section</u> <u>4.6</u> of this Note, the number of shares of Preferred Stock or Common Stock, as applicable, to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the Amount Due on the Maturity Date by (ii) the Change of Control Conversion Price, and rounding up to the nearest whole number of shares of Series B Preferred Stock (or Common Stock if all shares of Series B Preferred Stock shall have been converted into Common Stock). Additionally, the Excess Amount Due (if any) shall be paid by the Company to the Holder in accordance with <u>Section</u> <u>4.6</u> of this Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Public Offering</u>. In the event of a Public Offering, in full satisfaction of the Company's obligations under this Note (excluding the Company's obligation to pay the Excess Amount Due, if any), this Note shall automatically convert into shares of Common Stock and, subject to <u>Section</u> <u>4.6</u> of this Note, the number of shares of Common Stock to be issued upon such conversion shall be equal to the quotient obtained by dividing (A) the Amount Due on the date of such Public Offering by (B) the product of the Discount Rate and the price per share of the Company's Common Stock sold to the public in such Public Offering, and rounding up to the nearest whole number of shares of Common Stock. Additionally, the Excess Amount Due (if any) shall be paid by the Company to the Holder in accordance with <u>Section</u> <u>4.6</u> of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Maturity Date Election</u>. If this Note is not converted by the Maturity Date, then on the Maturity Date, the Holder shall have the option to either (A) demand repayment of the Note in-full and in cash at one-hundred-fifteen percent (115%) of the Amount Due; provided, however, that the Holder may not elect this option (A) if the Company has received gross proceeds from licensing and collaboration agreements of <u>Thirty Five Million U.S. Dollars</u> ($35,000,000) or more between the date hereof and the Maturity Date (excluding amounts received from Holder or its Affiliates), or (B) convert the Amount Due on this Note into Common Stock at the Common Stock Conversion Price. Subject to <u>Section</u> <u>4.6</u> of this Note, the number of shares of Common Stock to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the Amount Due on the Maturity Date by (ii) the Common Stock Conversion Price, and rounding up to the nearest whole number of shares of Common Stock. Additionally, the Excess Amount Due (if any) shall be paid by the Company to the Holder in accordance with <u>Section</u> <u>4.6</u> of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Equity Conversion Cap; Excess Amount Due</u>. Notwithstanding any provision of this Note to the contrary, in no event shall the aggregate number of shares of Equity Securities issuable upon conversion of this Note be equal to or greater than the Equity Conversion Cap as of the date of such conversion. If the number of shares of Equity Securities issuable upon conversion of this Note would be equal to or greater than the Equity Conversion Cap, then (i) the total number of shares of Equity Securities issuable upon conversion of this Note shall be reduced to the maximum number of shares of Equity Securities that could be issued to the Holder upon conversion of this Note without exceeding the Equity Conversion Cap as of the date of such conversion, and (ii) the Excess Amount Due (if any) shall be paid by the Company to the Holder within three (3) Business Days of any conversion date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Fractional Shares</u>. No fractional shares of any of the Company's equity securities will be issued in connection with any conversion of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Procedure of Conversion</u>. As promptly as practicable after the conversion of this Note, the Company, at its expense, will issue and deliver to the Holder (or its designee(s)), upon surrender of this Note, an electronic notice of issuance via Carta.com evidencing the number of shares of Equity Securities issuable upon conversion in accordance with the terms of this Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Demand; Default</u>. This Note shall, at the election of the Holder, become immediately due and payable, upon notice and demand by the Holder, upon the occurrence of any of the following events of default (an "**Event of Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the liquidation, dissolution or insolvency of the Company, or the appointment of a receiver or custodian for the Company of all or substantially all of its property, if such appointment is not terminated or dismissed within thirty (30) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the institution by or against the Company of any proceedings under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company fails to pay the Amount Due when due in accordance with the terms hereof and such default is not cured within five (5) Business Days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company materially breaches a representation or warranty in the Purchase Agreement; <u>provided</u>, that "materiality" or "material adverse effect" qualifications contained in the representations and warranties of the Company set forth in Article II of the Purchase Agreement shall be ignored and not given any effect for purposes of determining whether an Event of Default has occurred under this <u>Section</u> <u>5(iv)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Company (or any of its subsidiaries) fails to pay when due, and after the expiration of any applicable cure periods, any material amount of principal of or interest on any of its Material Indebtedness (or any instrument or agreement evidencing, creating, securing or otherwise relating to Material Indebtedness); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) one or more final non-appealable judgments, decrees or orders shall be entered against the Company (or a subsidiary) and remain unsatisfied for more than ninety (90) days, resulting in aggregate liabilities with respect to such judgments, decrees or orders of *Ten Million U.S. Dollars* ($10,000,000) or more; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) an order is entered directing the winding up or dissolution of the Company.

At such time that an Event of Default has occurred and is continuing, the Holder, by written notice to the Company(the "**Notice**"), may declare all amounts hereunder immediately due and payable in lawful currency of the United States of America, and the Holder will be entitled to reimbursement of its reasonable costs and expenses related to collection of all amounts owing in respect of this Note. Except for the Notice, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such election may be rescinded and annulled by Holder at any time prior to payment hereunder. No such rescission will affect any subsequent Event of Default or impair any right consequent thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Set-Off</u>. All payments by the Company under this Note shall be made without set-off or counterclaim and be without any deduction or withholding for any taxes or fees of any nature, unless the obligation to make such deduction or withholding is imposed by law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Transfers; Successors and Assigns</u>. This Note, and the obligations and rights of the parties hereunder, shall be binding upon and inure to the benefit of the Company, the Holder, and their respective heirs, successors and assigns; provided, however, that the Company may not transfer or assign its obligations hereunder, by operation of law or otherwise, without the consent of the Holder; and provided further that the Holder may not transfer or assign its rights hereunder, by operation of law of otherwise, except to an Affiliate, without the consent of the Company. Notwithstanding anything in this Note to the contrary, the right of any Holder (or transferee) to receive principal or interest payments under this Note may be transferred only through the surrender of this Note and reissuance of a new note by the Company pursuant to the provisions of this paragraph. The foregoing language is intended to cause this Note to be in "registered form" as defined in Treasury Regulations Sections 5f.103-1(c) and 1.871-14(c) and shall be interpreted and applied consistently therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Standby Registration and Preemptive Rights</u>. Assuming no Qualified Financing or Change of Control occurs by the Maturity Date, then the Company and the Holder agree that the Holder shall become a party to the Amended and Restated Investors' Rights Agreement dated March 17, 2021, by and between the Company and other parties thereto, as may be amended by the parties thereto, solely for the purpose of providing the Holder with registration rights (including the right to have the Holders shares registered in a Qualified IPO) and preemptive rights covering all of the Holders shares issued upon conversion of this Note, which registration rights and preemptive rights shall be effective within 30 days of the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>No Rights or Liabilities as Stockholder; No Personal Liability</u>. This Note does not by itself entitle the Holder to any voting rights or other rights as a stockholder of the Company. In the absence of conversion of this Note, no provisions of this Note, and no enumeration herein of the rights or privileges of the Holder, shall cause the Holder to be a stockholder of the Company for any purpose until this Note is converted to Equity Securities. The Holder agrees that, other than to the extent required under the Delaware General Corporation Law, no stockholder, director or officer of the Company shall have any personal liability for the repayment of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Stock Dividends, Reclassifications, Recapitalizations</u>. If the Company: (i) pays a dividend in Common Stock or makes a distribution to its stockholders in Common Stock, (ii) subdivides its outstanding Common Stock into a greater number of shares, (iii) combines its outstanding Common Stock into a smaller number of shares or (iv) increases or decreases the number of shares of Common Stock outstanding by reclassification of its Common Stock (including a recapitalization in connection with a consolidation or merger in which the Company is the continuing corporation), then the Common Stock Conversion Price on the record date of such division or distribution or the effective date of such action shall be adjusted by multiplying such Common Stock Conversion Price by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately before such event and the denominator of which is the number of shares of Common Stock outstanding immediately after such event.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Down Round Financing Anti-Dilution</u>. If this Note is converted into Common Stock pursuant to <u>Section</u> <u>4.5</u> subsequent to the Company consummating a Down Round, then, immediately prior to such conversion, the Common Stock Conversion Price shall be reduced automatically to the conversion price of the Company's Series B Preferred Stock at the time of such conversion. At least three (3) Business Days prior to the conversion, the Company shall send the Holder a written notice setting forth the Common Stock Conversion Price as adjusted pursuant to this <u>Section</u> <u>7.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Amendment</u>. This Note may be amended or modified, or compliance with any term, covenant, agreement, condition or provision set forth herein may be omitted or waived, either generally or in a particular instance and either retroactively or prospectively, upon written consent of the Company and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next Business Day, (c) five (5) Business Days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) Business Day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on their signature pages to the Purchase Agreement, or to such e-mail address, facsimile number or address as subsequently modified by written notice given in accordance with this <u>Section</u> <u>7.7</u>. If notice is given to the Company, then a copy shall also be sent to Orrick, Herrington & Sutcliffe, LLC, 51 W 52nd St., New York, NY 10019, Attn: Stephen B. Thau, which copy shall not constitute notice. If notice is given to the Holder, then a copy shall also be sent to Weil, Gotshal & Manges LLP, 700 Louisiana, Suite 1700, Houston, Texas 77002, <u>Attn</u>: Jeffery K. Malonson, which copy shall not constitute notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Severability</u>. If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be excluded from this Note and the balance of this Note shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <u>Governing Law</u>. This Note shall be governed by, and interpreted and determined in accordance with, the laws of the State of New York.

**[SIGNATURES ON FOLLOWING PAGE]** 

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IN WITNESS WHEREOF, this Note has been duly executed on behalf of the undersigned on the day and in the year first written above.

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| | |
|:---|:---|
| **SCRIBE THERAPEUTICS, INC.** | **SCRIBE THERAPEUTICS, INC.** |
| /s/ David Parrot | /s/ David Parrot |
| Name: | David Parrot |
| Title: | Chief Financial Officer |

---

---

| |
|:---|
| *Acknowledged and agreed by Holder:* |
| **ELI LILLY AND COMPANY** |
| /s/ F. Hefti |
| Franz Hefti |
| *Chief Executive Officer of Prevail Therapeutics Inc. and Authorized Representative of Eli Lilly and Company* |

---

[Signature Page to Convertible Promissory Note]

## Exhibit 10.2

**Exhibit 10.2** 

**SCRIBE THERAPEUTICS INC.** 

**2018 STOCK INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purposes of the Plan</u>. The purposes of this Plan are to attract and retain the best available personnel, to provide additional incentives to Employees, Directors and Consultants and to promote the success of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Definitions</u>. The following definitions shall apply as used herein and in the individual Award Agreements except as defined otherwise in an individual Award Agreement. In the event a term is separately defined in an individual Award Agreement, such definition shall supersede the definition contained in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Administrator</u>" means the Board or any of the Committees appointed to administer 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;(b) "<u>Affiliate</u>" and "<u>Associate</u>" shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Applicable Laws</u>" means the legal requirements relating to the Plan and the Awards under applicable provisions of federal and state securities laws, the corporate laws of Delaware and, to the extent other than Delaware, the corporate law of the state of the Company's incorporation, the Code, the rules of any applicable stock exchange or national market system, and the rules of any non-U.S. jurisdiction applicable to Awards granted to residents therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Assumed</u>" means that pursuant to a Corporate Transaction either (i) the Award is expressly affirmed by the Company or (ii) the contractual obligations represented by the Award are expressly assumed (and not simply by operation of law) by the successor entity or its Parent in connection with the Corporate Transaction with appropriate adjustments to the number and type of securities of the successor entity or its Parent subject to the Award and the exercise or purchase price thereof which at least preserves the compensation element of the Award existing at the time of the Corporate Transaction as determined in accordance with the instruments evidencing the agreement to assume the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Award</u>" means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Restricted Stock Unit or other right or benefit under 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;(f) "<u>Award Agreement</u>" means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any amendments thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Board</u>" means the Board of Directors 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;(h) "<u>Cause</u>" means, with respect to the termination by the Company of the Grantee's Continuous Service, that such termination is for "Cause" as such term (or word of like import) is expressly defined in a then-effective written agreement between the Grantee and the Company or a Related Entity, or in the absence of such then-effective written agreement and definition, means the occurrence of any of the following events or conditions: (i) the Grantee's willful failure to substantially perform the Grantee's assigned duties or responsibilities as a service provider of the Company, (ii) the Grantee's engagement in any act of fraud, embezzlement, or other illegal conduct detrimental to the Company, (iii) the Grantee's willful violation of any federal or state law or regulation applicable to the Company's or a Related Entity's business, (iv) the Grantee's breach of any confidentiality agreement or invention assignment agreement between the Grantee and the Company or a Related Entity, (v) the

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Grantee's commission of any act or involvement in any situation, or occurrence, whether before or during the Grantee's Continuous Service, which brings the Grantee into widespread public disrepute, contempt, scandal or ridicule, or which justifiably shocks, insults or offends a significant portion of the community, or the Grantee being subject to publicity for any such conduct or involvement in such conduct or (v) the Grantee's conviction of or entry into a plea of nolo contendere to a felony or any other crime involving moral turpitude.

&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>" means a change in ownership or control of the Company after the Registration Date effected through either of the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 direct or indirect acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities pursuant to a tender or exchange offer made directly to the Company's stockholders which a majority of the Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such stockholders accept, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a change in the composition of the Board over a period of twelve (12) months or less such that a majority of the Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Committee</u>" means any committee composed of members of the Board appointed by the Board to administer 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;(l) "<u>Common Stock</u>" means the common stock 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;(m) "<u>Company</u>" means Scribe Therapeutics Inc., a Delaware corporation, or any successor entity that adopts the Plan in connection with a Corporate Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Consultant</u>" means any person (other than an Employee or a Director, solely with respect to rendering services in such person's capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or such Related Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Continuing Directors</u>" means members of the Board who either (i) have been Board members continuously for a period of at least twelve (12) months or (ii) have been Board members for less than twelve (12) months and were elected or nominated for election as Board members by at least a majority of the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Continuous Service</u>" means that the provision of services to the Company or a Related Entity in any capacity of Employee, Director or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance of an effective termination as an Employee, Director or Consultant, Continuous Service shall be deemed terminated upon the actual cessation of providing services to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before a termination as an Employee, Director or Consultant can be effective under Applicable

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Laws. A Grantee's Continuous Service shall be deemed to have terminated either upon an actual termination of Continuous Service or upon the entity for which the Grantee provides services ceasing to be a Related Entity. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant, or (iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee, Director or Consultant (in each case, except as otherwise provided in the Award Agreement). Notwithstanding the foregoing, except as otherwise determined by the Administrator, in the event of any spin-off of a Related Entity, service as an Employee, Director or Consultant for such Related Entity following such spin-off shall be deemed to be Continuous Service for purposes of the Plan and any Award under the Plan. An approved leave of absence shall include sick leave, military leave, or any other authorized personal leave. For purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds three (3) months, and reemployment upon expiration of such leave is not guaranteed by statute or contract, then the Incentive Stock Option shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following the expiration of such three (3) month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Corporate Transaction</u>" means any of the following transactions, provided, however, that the Administrator shall determine under parts (iv) and (v) whether multiple transactions are related, and its determination shall be final, binding and conclusive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 sale, transfer or other disposition of all or substantially all of the assets 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the complete liquidation or dissolution 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any reverse merger or series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer followed by a reverse merger) in which the Company is the surviving entity but (A) the shares of Common Stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger or the initial transaction culminating in such merger, but excluding any such transaction or series of related transactions that the Administrator determines shall not be a Corporate Transaction; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities but excluding any such transaction or series of related transactions that the Administrator determines shall not be a Corporate Transaction.

For the avoidance of doubt and notwithstanding anything herein to the contrary, in no event shall a transaction constitute a "Corporate Transaction" if: (A) its sole purpose is to change the state of the Company's incorporation; (B) a transaction (other than a sale of all or substantially all of the Company's assets) in which the holders of the voting securities of the Company immediately prior to the transaction hold, directly or indirectly, at least a majority of the voting securities in the successor corporation or its

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parent immediately after the transaction; (C) a sale, lease, exchange or other transaction in one transaction or a series of related transactions of all or substantially all of the Company's assets to an affiliate of the Company; (D) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company's securities immediately before such transaction; (E) it is effected primarily for the purpose of financing the Company with cash (as determined by the Administrator without regard to whether such transaction is effectuated by a merger, equity financing, or otherwise); or (F) it constitutes, or includes sales of shares in connection with, the initial public offering of the Company's capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Director</u>" means a member of the Board or the board of directors of any Related Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Disability</u>" means as defined under the long-term disability policy of the Company or the Related Entity to which the Grantee provides services regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee provides service does not have a long-term disability plan in place, "Disability" means that a Grantee is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days. A Grantee will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Dividend Equivalent Right</u>" means a right entitling the Grantee to compensation measured by dividends paid with respect to Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Employee</u>" means any person, including an Officer or Director, who is in the employ of the Company or any Related Entity, subject to the control and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance. The payment of a director's fee by the Company or a Related Entity shall not be sufficient to constitute "employment" by 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) "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Fair Market Value</u>" means, as of any date, the value of Common Stock determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If the Common Stock is listed on one or more established stock exchanges or national market systems, including without limitation The NASDAQ Global Select Market, The NASDAQ Global Market or The NASDAQ Capital Market of The NASDAQ Stock Market LLC, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on the principal exchange or system on which the Common Stock is listed (as determined by the Administrator) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If the Common Stock is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing sales price for such stock as quoted on such system or by such securities dealer on the date of determination, but if selling prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value thereof shall be determined by the Administrator in good faith and in a manner consistent with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Good Reason</u>" means, with respect to the termination by the Grantee of the Grantee's Continuous Service, that such termination is for "Good Reason" as such term (or word of like import) is expressly defined in a then-effective written agreement between the Grantee and the Company or a Related Entity, or in the absence of such then-effective written agreement and definition, means the occurrence of any of the following events or conditions unless consented to by the Grantee: (i) a change in the Grantee's responsibilities or duties which represents a material and substantial diminution in the Grantee's responsibilities; (ii) a material reduction in the Grantee's base salary; provided that an across-the-board reduction in the salary level of substantially all other individuals in positions similar to the Grantee's by the same percentage amount shall not constitute such a salary reduction; or (iii) requiring the Grantee to be based at any place outside a 50 mile radius from the Grantee's job location or residence except for reasonably required travel on business. Notwithstanding the foregoing, no Good Reason will have occurred unless and until: (A) the Grantee provides the Company, within 90 days of the initial occurrence of the alleged Good Reason event, written-notice stating with specificity the applicable facts and circumstances underlying such finding of Good Reason; (B) the Company or the successor company fails to cure such condition within 30 days after receiving such written notice (the "Cure Period"), and (C) the Grantee resigns based on such Good Reason effective within 30 days after the expiration of the Cure Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Grantee</u>" means an Employee, Director or Consultant who receives an Award under 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;(z) "<u>Immediate Family</u>" means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in- law, son-in law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Grantee's household (other than a tenant or employee), a trust in which these persons (or the Grantee) have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the Grantee) control the management of assets, and any other entity in which these persons (or the Grantee) own more than fifty percent (50%) of the voting interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Incentive Stock Option</u>" means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Non-Qualified Stock Option</u>" means an Option not intended to qualify as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Officer</u>" means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Option</u>" means an option to purchase Shares pursuant to an Award Agreement granted under 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;(ee) "<u>Parent</u>" means a "parent corporation", whether now or hereafter existing, as defined in Section 424(e) of the Code.

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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;(ff) "<u>Plan</u>" means this Company 2018 Stock Incentive 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;(gg) "<u>Post-Termination Exercise Period</u>" means the period specified in the Award Agreement of not less than thirty (30) days commencing on the date of termination of the Grantee's Continuous Service, or such longer period as may be applicable upon death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>Registration Date</u>" means the first to occur of: (i) the closing of the first sale to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended, of (A) the Common Stock or (B) the same class of securities of a successor corporation (or its Parent) issued pursuant to a Corporate Transaction in exchange for or in substitution of the Common Stock; or (ii) in the event of a Corporate Transaction, the date of the consummation of the Corporate Transaction if the same class of securities of the successor corporation (or its Parent) issuable in such Corporate Transaction shall have been sold to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended, on or prior to the date of consummation of such Corporate Transaction.

&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>Related Entity</u>" means any Parent or Subsidiary 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;(jj) "<u>Replaced</u>" means that pursuant to a Corporate Transaction the Award is replaced with a comparable stock award or a cash incentive program of the Company, the successor entity (if applicable) or Parent of either of them which preserves the compensation element of such Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same (or a more favorable) vesting schedule applicable to such Award. The determination of Award comparability shall be made by the Administrator and its determination shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "<u>Restricted Stock</u>" means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the Administrator. Dividends payable with respect to Restricted Stock that is subject to performance vesting shall be held subject to the vesting of the underlying Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "<u>Restricted Stock Units</u>" means an Award which may be earned in whole or in part upon the passage of time or the attainment of performance criteria established by the Administrator and which may be settled for cash, Shares or other securities or a combination of cash, Shares or other securities as established by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "<u>Rule 16b-3</u>" means Rule 16b-3 promulgated under the Exchange Act or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "<u>SAR</u>" means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured by appreciation in the value of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "<u>Share</u>" means a share of the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "<u>Subsidiary</u>" means a "subsidiary corporation", whether now or hereafter existing, as defined in Section 424(f) of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Stock Subject to the Plan</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;(a) Subject to the provisions of Section 10 below, the maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive Stock Options) is 8,513,837 Shares. Subject to the provisions of Section 10 below, any increase to the maximum aggregate number of Shares which may be issued pursuant to all Awards shall be subject to stockholder approval. The Shares may be authorized, but unissued, or reacquired Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Shares covered by an Award (or portion of an Award) which is forfeited, canceled or expires (whether voluntarily or involuntarily) shall be deemed not to have been issued for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at the lower of their original purchase price or their Fair Market Value at the time of repurchase, such Shares shall become available for future grant under the Plan. To the extent not prohibited by the listing requirements of The NASDAQ Stock Market LLC (or other established stock exchange or national market system on which the Common Stock is traded) or Applicable Laws, any Shares covered by an Award which are surrendered or withheld: (i) in payment of the Award exercise or purchase price (including pursuant to the "net exercise" of an option pursuant to Section 7(b)(vi)); or (ii) in satisfaction of tax withholding obligations incident to the receipt, exercise or vesting of an Award shall be deemed not to have been issued for purposes of determining the maximum number of Shares which may be issued pursuant to all Awards under the Plan, unless otherwise determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Administration of the Plan</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;(a) <u>Plan Administrator</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Administration with Respect to Directors and Officers</u>. Prior to the Registration Date, with respect to grants of Awards to Directors or Employees who are also Officers or Directors of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. On or after the Registration Date, with respect to grants of Awards to Directors or Employees who are also Officers or Directors of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Administration With Respect to Consultants and Other Employees</u>. With respect to grants of Awards to Employees or Consultants who are neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Officer Authorization to Grant Awards</u>. The Board may authorize one or more Officers to grant Awards subject to such limitations as the Board determines from time to time and subject to limitations under Applicable Laws.

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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;(b) <u>Multiple Administrative Bodies</u>. The Plan may be administered by different bodies with respect to Directors, Officers, Consultants, and Employees who are neither Directors nor Officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Powers of the Administrator</u>. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to determine whether and to what extent Awards are granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to approve forms of Award Agreements for use under 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to determine the terms and conditions of any Award granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable non-U.S. jurisdictions and to afford Grantees favorable treatment under such rules or laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to amend the terms of any outstanding Award granted under the Plan, provided that any amendment that would adversely affect the Grantee's rights under an outstanding Award shall not be made without the Grantee's written consent, provided, however, that an amendment or modification that may cause an Incentive Stock Option to become a Non- Qualified Stock Option shall not be treated as adversely affecting the rights of the Grantee. Notwithstanding the foregoing, (A) the reduction or increase of the exercise price of any Option awarded under the Plan and the base appreciation amount of any SAR awarded under the Plan and (B) canceling an Option or SAR at a time when its exercise price or base appreciation amount (as applicable) exceeds the Fair Market Value of the underlying Shares, in exchange for another Option, SAR, Restricted Stock, or other Award or for cash, in each case, shall not be subject to stockholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) to construe and interpret the terms of the Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant to the Plan; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate.

The express grant in the Plan of any specific power to the Administrator shall not be construed as limiting any power or authority of the Administrator; provided that the Administrator may not exercise any right or power reserved to the Board. Any decision made, or action taken, by the Administrator or in connection with the administration of this Plan shall be final, conclusive and binding on all persons having an interest 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;(d) Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or as Officers or Employees of the Company or a Related Entity, members of the Board and any Officers or Employees of the Company or a Related Entity to whom authority to act for the Board, the Administrator or the Company is delegated shall be defended and indemnified by the

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Company to the extent permitted by law on an after-tax basis against all reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any Award granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within thirty (30) days after the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company's expense to defend the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Eligibility</u>. Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants. Incentive Stock Options may be granted only to Employees of the Company or a Parent or a Subsidiary of the Company. An Employee, Director or Consultant who has been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such Employees, Directors or Consultants who are residing in non-U.S. jurisdictions as the Administrator may determine from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Terms and Conditions of Awards</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;(a) <u>Types of Awards</u>. The Administrator is authorized under the Plan to award any type of arrangement to an Employee, Director or Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) cash or (iii) an Option, a SAR, or similar right with a fixed or variable price related to the Fair Market Value of the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other conditions. Such awards include, without limitation, Options, SARs, sales or bonuses of Restricted Stock, Restricted Stock Units or Dividend Equivalent Rights, and an Award may consist of one such security or benefit, or two (2) or more of them in any combination or alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Designation of Award</u>. Each Award shall be designated in the Award Agreement. In the case of an Option, the Option shall be designated as either an Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding such designation, an Option will qualify as an Incentive Stock Option under the Code only to the extent the $100,000 limitation of Section 422(d) of the Code is not exceeded. The $100,000 limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value of the Shares subject to Options designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary of the Company). For purposes of this calculation, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the grant date of the relevant Option. In the event that the Code or the regulations promulgated thereunder are amended after the date the Plan becomes effective to provide for a different limit on the Fair Market Value of Shares permitted to be subject to Incentive Stock Options, then such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conditions of Award</u>. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria.

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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;(d) <u>Acquisitions and Other Transactions</u>. The Administrator may issue Awards under the Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another entity or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or other form of transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Deferral of Award Payment</u>. The Administrator may establish one or more programs under the Plan to permit selected Grantees the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Grantee to payment or receipt of Shares or other consideration under an Award. The Administrator may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Administrator deems advisable for the administration of any such deferral program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Separate Programs</u>. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Early Exercise</u>. The Award Agreement may, but need not, include a provision whereby the Grantee may elect at any time while an Employee, Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant to such exercise may be subject to a repurchase right in favor of the Company or a Related Entity or to any other restriction the Administrator determines to be appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Term of Award</u>. The term of each Award shall be the term stated in the Award Agreement, provided, however, that the term shall be no more than ten (10) years from the date of grant thereof. However, in the case of an Incentive Stock Option granted to a Grantee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the term of the Incentive Stock Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement. Notwithstanding the foregoing, the specified term of any Award shall not include any period for which the Grantee has elected to defer the receipt of the Shares or cash issuable pursuant to the Award.

&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>Transferability of Awards</u>. Incentive Stock Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee. Other Awards shall be transferable (i) by will or by the laws of descent and distribution and (ii) during the lifetime of the Grantee, to the extent and in the manner authorized by the Administrator by gift or pursuant to a domestic relations order to members of the Grantee's Immediate Family. Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee's Award in the event of the Grantee's death on a beneficiary designation form provided by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Time of Granting Awards</u>. The date of grant of an Award shall for all purposes be the date on which the Administrator makes the determination to grant such Award, or such other later date as is determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Award Exchange Programs</u>. The Administrator may establish one or more programs under the Plan to permit selected Grantees to exchange an Award under the Plan for one or more other types of Awards under the Plan on such terms and conditions as determined by the Administrator from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Award Exercise or Purchase Price, Consideration and Taxes</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;(a) <u>Exercise or Purchase Price</u>. The exercise or purchase price, if any, for an Award shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the case of an Incentive Stock Option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) granted to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the per Share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) granted to any Employee other than an Employee described in the preceding paragraph, the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the case of a Non-Qualified Stock Option, the per Share exercise price shall be such price as is determined by the Administrator in accordance with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the case of SARs, the base appreciation amount shall not be less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the case of the sale of Shares, the per Share purchase price, if any, shall be such price as is determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the case of other Awards, such price as is determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Notwithstanding the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to Section 6(d), above, the exercise or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument evidencing the agreement to issue such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consideration</u>. Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award including the method of payment, shall be determined by the Administrator. In addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following, provided that the portion of the consideration equal to the par value of the Shares must be paid in cash or other legal consideration permitted by the Delaware General Corporation Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) delivery of the Grantee's promissory note with such recourse, interest, security, and redemption provisions as the Administrator determines as appropriate (but only to the extent that the acceptance or terms of the promissory note would not violate an Applicable Law);

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) surrender of Shares held for the requisite period, if any, necessary to avoid a charge to the Company's earnings for financial reporting purposes, or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said Award shall be exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) with respect to Options, if the exercise occurs on or after the Registration Date, payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) with respect to Options, payment through a "net exercise" such that, without the payment of any funds, the Grantee may exercise the Option and receive the net number of Shares equal to (i) the number of Shares as to which the Option is being exercised, multiplied by (ii) a fraction, the numerator of which is the Fair Market Value per Share (on such date as is determined by the Administrator) less the exercise price per Share, and the denominator of which is such Fair Market Value per Share (the number of net Shares to be received shall be rounded down to the nearest whole number of Shares); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any combination of the foregoing methods of payment.

The Administrator may at any time or from time to time, by adoption of or by amendment to the standard forms of Award Agreement described in Section 4(c)(iv), or by other means, grant Awards which do not permit all of the foregoing forms of consideration to be used in payment for the Shares or which otherwise restrict one or more forms of consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Taxes</u>. No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of any non-U.S., federal, state, or local income and employment tax withholding obligations, including, without limitation, obligations incident to the receipt of Shares. Upon exercise or vesting of an Award the Company shall withhold or collect from the Grantee an amount sufficient to satisfy such tax obligations, including, but not limited to, by surrender of the whole number of Shares covered by the Award sufficient to satisfy the applicable tax withholding obligations incident to the exercise or vesting of an Award (limited to avoid, as determined by the Administrator, financial accounting charges under applicable accounting guidance and reduced to the lowest whole number of Shares if such number of Shares withheld would result in withholding a fractional Share with any remaining tax withholding settled in cash).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Exercise of Award</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;(a) <u>Procedure for Exercise; Rights as a Stockholder</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Award granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the terms of the Plan and specified in the Award 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) An Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised has been made, including, to the extent selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as provided in Section 7(b)(v).

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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;(b) <u>Exercise of Award Following Termination of Continuous Service</u>. In the event of termination of a Grantee's Continuous Service for any reason other than Disability or death (but not in the event of a Grantee's change of status from Employee to Consultant or from Consultant to Employee), such Grantee may, but only during the Post-Termination Exercise Period (but in no event later than the expiration date of the term of such Award as set forth in the Award Agreement), exercise the portion of the Grantee's Award that was vested at the date of such termination or such other portion of the Grantee's Award as may be determined by the Administrator. The Grantee's Award Agreement may provide that upon the termination of the Grantee's Continuous Service for cause, the Grantee's right to exercise the Award shall terminate concurrently with the termination of the Grantee's Continuous Service. In the event of a Grantee's change of status from Employee to Consultant, an Employee's Incentive Stock Option shall convert automatically to a Non-Qualified Stock Option on the day three (3) months and one (1) day following such change of status. To the extent that the Grantee's Award was unvested at the date of termination, or if the Grantee does not exercise the vested portion of the Grantee's Award within the Post-Termination Exercise Period, the Award shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disability of Grantee</u>. In the event of termination of a Grantee's Continuous Service as a result of his or her Disability, such Grantee may, but only within twelve (12) months from the date of such termination (or such longer period as specified in the Award Agreement but in no event later than the expiration date of the term of such Award as set forth in the Award Agreement), exercise the portion of the Grantee's Award that was vested at the date of such termination; provided, however, that if such Disability is not a "disability" as such term is defined in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option such Incentive Stock Option shall automatically convert to a Non-Qualified Stock Option on the day three (3) months and one day following such termination. To the extent that the Grantee's Award was unvested at the date of termination, or if Grantee does not exercise the vested portion of the Grantee's Award within the time specified herein, the Award shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Death of Grantee</u>. In the event of a termination of the Grantee's Continuous Service as a result of his or her death, or in the event of the death of the Grantee during the Post-Termination Exercise Period or during the twelve (12) month period following the Grantee's termination of Continuous Service as a result of his or her Disability, the Grantee's estate or a person who acquired the right to exercise the Award by bequest or inheritance may exercise the portion of the Grantee's Award that was vested as of the date of termination, within twelve (12) months from the date of death (or such longer period as specified in the Award Agreement but in no event later than the expiration of the term of such Award as set forth in the Award Agreement). To the extent that, at the time of death, the Grantee's Award was unvested, or if the Grantee's estate or a person who acquired the right to exercise the Award by bequest or inheritance does not exercise the vested portion of the Grantee's Award within the time specified herein, the Award shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Extension if Exercise Prevented by Law</u>. Notwithstanding the foregoing, if the exercise of an Award within the applicable time periods set forth in this Section 8 is prevented by the provisions of Section 9 below, the Award shall remain exercisable until one (1) month after the date the Grantee is notified by the Company that the Award is exercisable, but in any event no later than the expiration of the term of such Award as set forth in the Award Agreement and only in a manner and to the extent permitted under Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Conditions Upon Issuance of Shares</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;(a) If at any time the Administrator determines that the delivery of Shares pursuant to the exercise, vesting or any other provision of an Award is or may be unlawful under Applicable Laws, the vesting or right to exercise an Award or to otherwise receive Shares pursuant to the terms of an Award shall be suspended until the Administrator determines that such delivery is lawful and shall be further subject to the approval of counsel for the Company with respect to such compliance. The Company shall have no obligation to effect any registration or qualification of the Shares under federal or state laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Adjustments Upon Changes in Capitalization</u>. Subject to any required action by the stockholders of the Company and Section 11 below, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each such outstanding Award, the maximum number of Shares with respect to which Awards may be granted to any Grantee in any calendar year, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for: (i) any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification of the Shares, or similar transaction affecting the Shares; (ii) any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; or (iii) any other transaction with respect to Common Stock including a corporate merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or any similar transaction; provided, however that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." In the event of any distribution of cash or other assets to stockholders other than a normal cash dividend, the Administrator shall also make such adjustments as provided in this Section 10 or substitute, exchange or grant Awards to effect such adjustments (collectively "adjustments"). Any such adjustments to outstanding Awards will be effected in a manner that precludes the enlargement of rights and benefits under such Awards. In connection with the foregoing adjustments, the Administrator may, in its discretion, prohibit the exercise of Awards or other issuance of Shares, cash or other consideration pursuant to Awards during certain periods of time. Except as the Administrator determines, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares subject to an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Corporate Transactions and Changes in Control</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;(a) <u>Termination of Award to Extent Not Assumed in Corporate Transaction</u>. Effective upon the consummation of a Corporate Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate to the extent they are Assumed in connection with the Corporate Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Acceleration of Award Upon Corporate Transaction or Change in Control</u>. The Administrator shall have the authority, exercisable either in advance of any actual or anticipated Corporate Transaction or Change in Control or at the time of an actual Corporate Transaction or Change in Control and exercisable at the time of the grant of an Award under the Plan or any time while an Award remains outstanding, to provide for the full or partial automatic vesting and exercisability of one

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or more outstanding unvested Awards under the Plan and the release from restrictions on transfer and repurchase or forfeiture rights of such Awards in connection with a Corporate Transaction or Change in Control, on such terms and conditions as the Administrator may specify. The Administrator also shall have the authority to condition any such Award vesting and exercisability or release from such limitations upon the subsequent termination of the Continuous Service of the Grantee within a specified period following the effective date of the Corporate Transaction or Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effect of Acceleration on Incentive Stock Options</u>. Any Incentive Stock Option accelerated under this Section 11 in connection with a Corporate Transaction or Change in Control shall remain exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Effective Date and Term of Plan</u>. The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the stockholders of the Company. It shall continue in effect for a term of ten (10) years unless sooner terminated. Subject to Section 17 below, and Applicable Laws, Awards may be granted under the Plan upon its becoming effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Amendment, Suspension or Termination of the Plan</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;(a) The Board may at any time amend, suspend or terminate the Plan. To the extent necessary to comply with Applicable Laws, the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Award may be granted during any suspension of the Plan or after termination of 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;(c) No suspension or termination of the Plan (including termination of the Plan under Section 12, above) shall adversely affect any rights under Awards already granted to a Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Reservation of Shares</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;(a) The Company, during the term of the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of 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;(b) The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>No Effect on Terms of Employment/Consulting Relationship</u>. The Plan shall not confer upon any Grantee any right with respect to the Grantee's Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company or any Related Entity to terminate the Grantee's Continuous Service at any time, with or without cause, and with or without notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>No Effect on Retirement and Other Benefit Plans</u>. Except as specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is not a "Pension Plan" or "Welfare Plan" under the Employee Retirement Income Security Act of 1974, as amended.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Stockholder Approval</u>. Continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such stockholder approval shall be obtained in the degree and manner required under Applicable Laws. Any Award exercised before stockholder approval is obtained shall be rescinded if stockholder approval is not obtained within the time prescribed, and Shares issued on the exercise of any such Award shall not be counted in determining whether stockholder approval is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Information to Grantees</u>. To the extent required by Applicable Laws, the Company shall provide to each Grantee, during the period for which such Grantee has one or more Awards outstanding, copies of financial statements at least annually. The Company shall not be required to provide such information to persons whose duties in connection with the Company assure them access to equivalent information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Unfunded Obligation</u>. Grantees shall have the status of general unsecured creditors of the Company. Any amounts payable to Grantees pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Grantee account shall not create or constitute a trust or fiduciary relationship between the Administrator, the Company or any Related Entity and a Grantee, or otherwise create any vested or beneficial interest in any Grantee or the Grantee's creditors in any assets of the Company or a Related Entity. The Grantees shall have no claim against the Company or any Related Entity for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Construction</u>. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Nonexclusivity of the Plan</u>. Neither the adoption of the Plan by the Board, the submission of the Plan to the stockholders of the Company for approval, nor any provision of the Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of Awards otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

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**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**<u>NOTICE OF STOCK OPTION AWARD</u>**

 Grantee's Name and Address:<br>

You (the "Grantee") have been granted an option to purchase shares of Common Stock, subject to the terms and conditions of this Notice of Stock Option Award (the "Notice"), the Scribe Therapeutics Inc. 2018 Stock Incentive Plan, as amended from time to time (the "Plan") and the Stock Option Award Agreement (the "Option Agreement") attached hereto, as follows. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Notice. "Grantee" shall refer to any transferee of the Option or any transferee of any Shares (either the Grantee or such transferee being sometimes referred to herein or in the Option Agreement as the "Holder").

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| | |
|:---|:---|
| Award Number |  |
| Date of Award |  |
| Vesting Commencement Date |  |
| Exercise Price per Share | $|
| Total Number of Shares Subject to the Option (the "Shares") |  |
| Total Exercise Price | $|
| Type of Option: | Incentive Stock Option |
|  | Non-Qualified Stock Option |
| Expiration Date: |  |
| Post-Termination Exercise Period: | Three (3) Months |

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<u>Vesting Schedule:</u> 

Subject to the Grantee's Continuous Service and other limitations set forth in this Notice, the Plan and the Option Agreement, the Option may be exercised, in whole or in part, in accordance with the following schedule:

[25% of the Shares subject to the Option shall vest twelve (12) months after the Vesting Commencement Date, and 1/36 of the remaining unvested Shares subject to the Option shall vest on each of the next thirty-six (36) monthly anniversaries of the Vesting Commencement Date thereafter.]

During any authorized leave of absence, the vesting of the Option as provided in this schedule shall be suspended after the leave of absence exceeds a period of ninety (90) days. Vesting of the Option shall resume upon the Grantee's termination of the leave of absence and return to service to the Company or a Related Entity. The Vesting Schedule of the Option shall be extended by the length of the suspension.

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IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the Option is to be governed by the terms and conditions of this Notice, the Plan, and the Option Agreement.

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| |
|:---|
| Scribe Therapeutics Inc.,<br>a Delaware corporation |
| By: |
| Title: |

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THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE'S CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE PLAN SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF THE GRANTEE'S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE'S RIGHT OR THE RIGHT OF THE COMPANY OR RELATED ENTITY TO WHICH THE GRANTEE PROVIDES SERVICES TO TERMINATE THE GRANTEE'S CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE GRANTEE ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY OR A RELATED ENTITY TO THE CONTRARY, THE GRANTEE'S STATUS IS AT WILL.

The Grantee acknowledges receipt of a copy of the Plan and the Option Agreement, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Option subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed this Notice, the Plan, and the Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice, and fully understands all provisions of this Notice, the Plan and the Option Agreement. The Grantee hereby agrees that all questions of interpretation and administration relating to this Notice, the Plan and the Option Agreement shall be resolved by the Administrator in accordance with Section 19 of the Option Agreement. The Grantee further agrees to the venue selection in accordance with Section 20 of the Option Agreement. The Grantee further agrees to notify the Company upon any change in the residence address indicated in this Notice.

Dated:<u> </u> Signed:     <br> Grantee

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**Award Number: _________** 

**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**<u>STOCK OPTION AWARD AGREEMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of Option</u>. Scribe Therapeutics Inc., a Delaware corporation (the "Company"), hereby grants to the Grantee (the "Grantee") named in the Notice of Stock Option Award (the "Notice"), an option (the "Option") to purchase the Total Number of Shares of Common Stock subject to the Option (the "Shares") set forth in the Notice, at the Exercise Price per Share set forth in the Notice (the "Exercise Price") subject to the terms and provisions of the Notice, this Stock Option Award Agreement (the "Option Agreement") and the Company's 2018 Stock Incentive Plan, as amended from time to time (the "Plan"), which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement.

If designated in the Notice as an Incentive Stock Option, the Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code. However, notwithstanding such designation, the Option will qualify as an Incentive Stock Option under the Code only to the extent the $100,000 limitation of Section 422(d) of the Code is not exceeded. The $100,000 limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value of the Shares subject to options designated as Incentive Stock Options which become exercisable for the first time by the Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary of the Company). For purposes of this calculation, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the shares subject to such options shall be determined as of the grant date of the relevant option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Exercise of Option</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;(a) <u>Right to Exercise</u>. The Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice and with the applicable provisions of the Plan and this Option Agreement. The Option shall be subject to the provisions of Section 11 of the Plan relating to the exercisability or termination of the Option in the event of a Corporate Transaction or Change in Control. The Grantee shall be subject to reasonable limitations on the number of requested exercises during any monthly or weekly period as determined by the Administrator. In no event shall the Company issue fractional Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Method of Exercise</u>. The Option shall be exercisable only by delivery of an exercise notice (a form of which is attached as Exhibit A) or by such other procedure as specified from time to time by the Administrator which shall state the election to exercise the Option, the whole number of Shares in respect of which the Option is being exercised, and such other provisions as may be required by the Administrator. The exercise notice shall be delivered in person, by certified mail, or by such other method (including electronic transmission) as determined from time to time by the Administrator to the Company accompanied by payment of the Exercise Price and all applicable income and employment taxes required to be withheld. The Option shall be deemed to be exercised upon receipt by the Company of such notice accompanied by the Exercise Price and all applicable withholding taxes, which, to the extent selected, shall be deemed to be satisfied by use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in Section 4(d) below to the extent such procedure is available to the Grantee at the time of exercise and such an exercise would not violate any Applicable Law.

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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;(c) <u>Taxes</u>. No Shares will be delivered to the Grantee or other person pursuant to the exercise of the Option until the Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of applicable income tax and employment tax withholding obligations, including, without limitation, such other tax obligations of the Grantee incident to the receipt of Shares. Upon exercise of the Option, the Company or the Grantee's employer may offset or withhold (from any amount owed by the Company or the Grantee's employer to the Grantee) or collect from the Grantee or other person an amount sufficient to satisfy such tax withholding obligations. Furthermore, in the event of any determination that the Company has failed to withhold a sum sufficient to pay all withholding taxes due in connection with the Option, the Grantee agrees to pay the Company the amount of such deficiency in cash within five (5) days after receiving a written demand from the Company to do so, whether or not the Grantee is an employee of the Company at that time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Grantee's Representations</u>. The Grantee understands that neither the Option nor the Shares exercisable pursuant to the Option have been registered under the Securities Act of 1933, as amended or any United States securities laws. In the event the Shares purchasable pursuant to the exercise of the Option have not been registered under the Securities Act of 1933, as amended, at the time the Option is exercised, the Grantee shall, if requested by the Company, concurrently with the exercise of all or any portion of the Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Method of Payment</u>. Payment of the Exercise Price shall be made by any of the following, or a combination thereof, at the election of the Grantee; provided, however, that such exercise method does not then violate any Applicable Law and, provided further, that the portion of the Exercise Price equal to the par value of the Shares must be paid in cash or other legal consideration permitted by the Delaware General Corporation Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the exercise occurs when the Common Stock is listed on one or more established stock exchanges or national market systems, surrender of Shares held for the requisite period, if any, necessary to avoid a charge to the Company's earnings for financial reporting purposes, or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require which have a Fair Market Value on the date of surrender or attestation equal to the aggregate Exercise Price of the Shares as to which the Option is being exercised;

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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;(d) if the exercise occurs when the Common Stock is listed on one or more established stock exchanges or national market systems, payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (i) shall provide written instructions to a Company-designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (ii) shall provide written directives to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction; 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;(e) any combination of the foregoing methods of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Restrictions on Exercise</u>. The Option may not be exercised if the issuance of the Shares subject to the Option upon such exercise would constitute a violation of any Applicable Laws. In addition, the Option may not be exercised until such time as the Plan has been approved by the stockholders of the Company. If the exercise of the Option within the applicable time periods set forth in Section 6, 7 and 8 of this Option Agreement is prevented by the provisions of this Section 5, the Option shall remain exercisable until one (1) month after the date the Grantee is notified by the Company that the Option is exercisable, but in any event no later than the Expiration Date set forth in the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Termination or Change of Continuous Service</u>. In the event the Grantee's Continuous Service terminates, the Grantee may, but only during the Post-Termination Exercise Period, exercise the portion of the Option that was vested at the date of such termination (the "Termination Date"). The Post-Termination Exercise Period shall commence on the Termination Date. In no event, however, shall the Option be exercised later than the Expiration Date set forth in the Notice. In the event of the Grantee's change in status from Employee, Director or Consultant to any other status of Employee, Director or Consultant, the Option shall remain in effect and the Option shall continue to vest in accordance with the Vesting Schedule set forth in the Notice; provided, however, with respect to any Incentive Stock Option that shall remain in effect after a change in status from Employee to Director or Consultant, such Incentive Stock Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following such change in status. Except as provided in Sections 7 and 8, below, to the extent that the Option was unvested on the Termination Date, or if the Grantee does not exercise the vested portion of the Option within the Post-Termination Exercise Period, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Disability of Grantee</u>. In the event the Grantee's Continuous Service terminates as a result of his or her Disability, the Grantee may, but only within twelve (12) months commencing on the Termination Date (but in no event later than the Expiration Date), exercise the portion of the Option that was vested on the Termination Date; provided, however, that if such Disability is not a "disability" as such term is defined in Section 22(e)(3) of the Code and the Option is an Incentive Stock Option, such Incentive Stock Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following the Termination Date. To the extent that the Option was unvested on the Termination Date, or if the Grantee does not exercise the vested portion of the Option within the time specified herein, the Option shall terminate. Section 22(e)(3) of the Code provides that an individual is permanently and totally disabled if he or she is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Death of Grantee</u>. In the event of the termination of the Grantee's Continuous Service as a result of his or her death, or in the event of the Grantee's death during the Post-Termination Exercise Period or during the twelve (12) month period following the Grantee's termination of Continuous Service as a result of his or her Disability, the person who acquired the right to exercise the Option pursuant to Section 9 may exercise the portion of the Option that was vested at the date of termination within twelve (12) months commencing on the date of death (but in no event later than the Expiration Date). To the extent that the Option was unvested on the date of death, or if the vested portion of the Option is not exercised within the time specified herein, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Transferability of Option</u>. The Option, if an Incentive Stock Option, may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of the Grantee only by the Grantee. The Option, if a Non-Qualified Stock Option, may not be transferred in any manner other than by will or by the laws of descent and distribution, provided, however, that a Non-Qualified Stock Option may be transferred during the lifetime of the Grantee by gift or pursuant to a domestic relations order to members of the Grantee's Immediate Family to the extent and in the manner determined by the Administrator. Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee's Incentive Stock Option or Non-Qualified Stock Option in the event of the Grantee's death on a beneficiary designation form provided by the Administrator. Following the death of the Grantee, the Option, to the extent provided in Section 8, may be exercised (a) by the person or persons designated under the deceased Grantee's beneficiary designation or (b) in the absence of an effectively designated beneficiary, by the Grantee's legal representative or by any person empowered to do so under the deceased Grantee's will or under the then applicable laws of descent and distribution. The terms of the Option shall be binding upon the executors, administrators, heirs, successors and transferees of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Term of Option</u>. The Option must be exercised no later than the Expiration Date set forth in the Notice or such earlier date as otherwise provided herein. After the Expiration Date or such earlier date, the Option shall be of no further force or effect and may not be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Company's Right of First Refusal</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;(a) <u>Transfer Notice</u>. No Holder shall sell, hypothecate, encumber or otherwise transfer any Shares or any right or interest therein without first complying with the provisions of this Section 11 or obtaining the prior written consent of the Company and provided further that such Shares are "Mature Shares" (which means that the Shares have been held by the Holder (and any successor Holder) for the requisite period, if any, necessary to avoid a charge to the Company's earnings for financial reporting purposes). In the event the Holder desires to accept a bona fide third-party offer for any or all of the Shares, the Holder shall provide the Company with written notice (the "Transfer Notice") of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Holder's intention to transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 name of the proposed transferee;

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The number of Shares to be transferred; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The proposed transfer price or value and terms thereof.

If the Holder proposes to transfer any Shares to more than one transferee, the Holder shall provide a separate Transfer Notice for the proposed transfer to each transferee. The Transfer Notice shall be signed by both the Holder and the proposed transferee and must constitute a binding commitment of the Holder and the proposed transferee for the transfer of the Shares to the proposed transferee subject to the terms and conditions of this Option 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;(b) <u>Bona Fide Transfer</u>*.* If the Company determines that the information provided by the Holder in the Transfer Notice is insufficient to establish the bona fide nature of a proposed voluntary transfer, the Company shall give the Holder written notice of the Holder's failure to comply with the procedure described in this Section 11, and the Holder shall have no right to transfer the Shares without first complying with the procedure described in this Section 11. The Holder shall not be permitted to transfer the Shares if the proposed transfer is not bona fide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>First Refusal Exercise Notice</u>. The Company shall have the right to purchase (the "Right of First Refusal") all but not less than all of the Shares which are described in the Transfer Notice (the "Offered Shares"). The Offered Shares shall be repurchased at (i) the per share price or value and in accordance with the terms stated in the Transfer Notice (subject to Section 11(d) below) or (ii) the Fair Market Value of the Shares on the date on which the purchase is to be effected if no consideration is paid pursuant to the terms stated in the Transfer Notice, which Right of First Refusal shall be exercised by written notice (the "First Refusal Exercise Notice") to the Holder at any time within thirty (30) days after receipt of the Transfer Notice (the "Option Period").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment Terms</u>. The Company shall consummate the purchase of the Offered Shares on the terms set forth in the Transfer Notice within sixty (60) days after delivery of the First Refusal Exercise Notice; provided, however, that in the event the Transfer Notice provides for the payment for the Offered Shares other than in cash, the Company and/or its assigns shall have the right to pay for the Offered Shares by the discounted cash equivalent of the consideration described in the Transfer Notice as reasonably determined by the Administrator. Upon payment for the Offered Shares to the Holder or into escrow for the benefit of the Holder, the Company or its assigns shall become the legal and beneficial owner of the Offered Shares and all rights and interest therein or related thereto, and the Company shall have the right to transfer the Offered Shares to its own name or its assigns without further action by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Assignment</u>. Whenever the Company shall have the right to purchase Shares under this Right of First Refusal, the Company may designate and assign one or more employees, officers, directors or stockholders of the Company or other persons or organizations, to exercise all or a part of the Company's Right of First Refusal.

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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;(f) <u>Non-Exercise</u>. If the Company and/or its assigns do not collectively elect to exercise the Right of First Refusal within the Option Period or such earlier time if the Company and/or its assigns notifies the Holder that it will not exercise the Right of First Refusal, then the Holder may transfer the Shares upon the terms and conditions stated in the Transfer Notice, provided 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The transfer is made within forty-five (45) days of the earlier of (A) the date the Company and/or its assigns notify the Holder that the Right of First Refusal will not be exercised or (B) the expiration of the Option 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The transferee agrees in writing that such Shares shall be held subject to the provisions of this Option Agreement.

The Company shall have the right to demand further assurances from the Holder and the transferee (in a form satisfactory to the Company) that the transfer of the Offered Shares was actually carried out on the terms and conditions described in the Transfer Notice. No Offered Shares shall be transferred on the books of the Company until the Company has received such assurances, if so demanded, and has approved the proposed transfer as bona fide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Expiration of Transfer Period</u>. Following such 45-day period, no transfer of the Offered Shares and no change in the terms of the transfer as stated in the Transfer Notice (including the name of the proposed transferee) shall be permitted without a new written Transfer Notice prepared and submitted in accordance with the requirements of this Right of First Refusal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Termination of Right of First Refusal</u>. The provisions of this Right of First Refusal shall terminate as to all Shares upon the Registration Date.

&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>Additional Shares or Substituted Securities</u>. In the event of any transaction described in Sections 10 or 11 of the Plan, any new, substituted or additional securities or other property which is by reason of any such transaction distributed with respect to the Shares shall be immediately subject to the Right of First Refusal, but only to the extent the Shares are at the time covered by such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>RESERVED</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Stop</u><u>-Transfer Notices</u>. In order to ensure compliance with the restrictions on transfer set forth in this Option Agreement, the Notice or the Plan, the Company may issue appropriate "stop transfer" instructions to its transfer agent, if any, and, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Refusal to Transfer</u>. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Option Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Tax Consequences</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;(a) The Grantee may incur tax liability as a result of the Grantee's purchase or disposition of the Shares. THE GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the Company's good faith determination of the Fair Market Value of the Company's Common Stock for purposes of determining the Exercise Price Per Share of the Option as set forth in the Notice, the taxing authorities may assert that the Fair Market Value of the Common Stock on the Date of Award was greater than the Exercise Price Per Share. If designated in the Notice as an Incentive Stock Option, the Option may fail to qualify as an Incentive Stock Option if the Exercise Price Per Share of the Option is less than the Fair Market Value of the Common Stock on the Date of Award. In addition, under Section 409A of the Code, if the Exercise Price Per Share of the Option is less than the Fair Market Value of the Common Stock on the Date of Award, the Option may be treated as a form of deferred compensation and the Grantee may be subject to an acceleration of income recognition, an additional 20% tax, plus interest and possible penalties. The Company makes no representation that the Option will comply with (or be exempt from the application of) Section 409A of the Code and makes no undertaking to prevent Section 409A of the Code from applying to the Option or to mitigate its effects on any deferrals or payments made in respect of the Option. The Grantee is encouraged to consult a tax adviser regarding the potential impact of Section 409A of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Market Standoff Agreement</u>. The Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of shares of its Common Stock or any other equity securities under the Securities Act of 1933, as amended, on a registration statement on Form S-1 or Form S-3, and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports, and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective date of the registration statement for such offering or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The underwriters in connection with such registration are intended third party beneficiaries of this Section 16 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. The Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 16 or that are necessary to give further effect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Entire Agreement: Governing Law</u>. The Notice, the Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee's interest except by means of a writing signed by the Company and the Grantee. Nothing in the Notice, the Plan and this Option Agreement (except as expressly provided therein) is intended to confer any rights or remedies on any persons other than the parties. The Notice, the Plan and this Option Agreement are to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties. Should any provision of the Notice, the Plan or this Option Agreement be determined to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain effective and shall remain enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Construction</u>. The captions used in the Notice and this Option Agreement are inserted for convenience and shall not be deemed a part of the Option Agreement for construction or interpretation. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Administration and Interpretation</u>. Any question or dispute regarding the administration or interpretation of the Notice, the Plan or this Option Agreement shall be submitted by the Grantee or by the Company to the Administrator. The resolution of such question or dispute by the Administrator shall be final and binding on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Venue</u>. The Company, the Grantee, and the Grantee's assignees pursuant to Section 9 (the "parties") agree that any suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Option Agreement shall be brought in a United States District Court for the Northern District of California (or should such court lack jurisdiction to hear such action, suit or proceeding, in a California state court) and that the parties shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the laying of venue for any such suit, action or proceeding brought in such court. If any one or more provisions of this Section 20 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Notices</u>. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown in these instruments, or to such other address as such party may designate in writing from time to time to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Confidentiality</u>. If the Company is required by Applicable Laws to provide financial statements to the Grantee, the Grantee understands and agrees that such financial statements are confidential and shall not be disclosed by the Grantee, to any entity or person, for any reason, at any time, without the prior written consent of the Company, unless required by law. If disclosure of such financial statements is required by law, whether through subpoena, request for production, deposition, or otherwise, the Grantee promptly shall provide written notice to Company, including copies of the subpoena, request for production, deposition, or otherwise, within five (5) business days of their receipt by the Grantee and prior to any disclosure so as to provide Company an opportunity to move to quash or otherwise to oppose the disclosure. Notwithstanding the foregoing, the Grantee may disclose the terms of such financial statements to his or her spouse or domestic partner, and for legitimate business reasons, to legal, financial, and tax advisors.

**END OF AGREEMENT** 

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**<u>EXHIBIT A</u>**

**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**EXERCISE NOTICE** 

**[COMPANY ADDRESS]** 

Attention: Secretary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Effective as of today, ______________, ___ the undersigned (the "Grantee") hereby elects to exercise the Grantee's option to purchase ___________ shares of the Common Stock (the "Shares") of Scribe Therapeutics Inc. (the "Company") under and pursuant to the Company's 2018 Stock Incentive Plan, as amended from time to time (the "Plan") and the Stock Option Award Agreement (the "Option Agreement") and Notice of Stock Option Award (the "Notice") dated ______________, ________. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Exercise Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Representations of the Grantee</u>. The Grantee acknowledges that the Grantee has received, read and understood the Notice, the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Rights as Stockholder</u>. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan.

The Grantee shall enjoy rights as a stockholder until such time as the Grantee disposes of the Shares or the Company and/or its assignee(s) exercises the Right of First Refusal. Upon such exercise, the Grantee shall have no further rights as a holder of the Shares so purchased except the right to receive payment for the Shares so purchased in accordance with the provisions of the Option Agreement, and the Grantee shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Delivery of Payment</u>. The Grantee herewith delivers to the Company the full Exercise Price for the Shares, which to the extent selected, shall be deemed to be satisfied by use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in Section 4(d) of the Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Tax Consultation</u>. The Grantee understands that the Grantee may suffer adverse tax consequences as a result of the Grantee's purchase or disposition of the Shares. The Grantee represents that the Grantee has consulted with any tax consultants the Grantee deems advisable in connection with the purchase or disposition of the Shares and that the Grantee is not relying on the Company for any tax advice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Taxes</u>. The Grantee agrees to satisfy all applicable federal, state and local income and employment tax withholding obligations and herewith delivers to the Company the full amount of such obligations or has made arrangements acceptable to the Company to satisfy such obligations. In the case of an Incentive Stock Option, the Grantee also agrees, as partial consideration for the designation of the Option as an Incentive Stock Option, to notify the Company in writing within thirty (30) days of any disposition of any shares acquired by exercise of the Option if such disposition occurs within two (2) years from the Date of Award or within one (1) year from the date the Shares were transferred to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Restrictive Legends</u>. The Grantee understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Successors and Assigns</u>. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise Notice shall be binding upon the Grantee and his or her heirs, executors, administrators, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Construction</u>. The captions used in this Exercise Notice are inserted for convenience and shall not be deemed a part of this agreement for construction or interpretation. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Administration and Interpretation</u>. The Grantee hereby agrees that any question or dispute regarding the administration or interpretation of this Exercise Notice shall be submitted by the Grantee or by the Company to the Administrator. The resolution of such question or dispute by the Administrator shall be final and binding on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Governing Law; Severability</u>. This Exercise Notice is to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties. Should any provision of this Exercise Notice be determined by a court of law to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain effective and shall remain enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown below beneath its signature, or to such other address as such party may designate in writing from time to time to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Further Instruments</u>. The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Entire Agreement</u>. The Notice, the Plan and the Option Agreement are incorporated herein by reference and together with this Exercise Notice constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee's interest except by means of a writing signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Option Agreement and this Exercise Notice (except as expressly provided therein) is intended to confer any rights or remedies on any persons other than the parties.

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|:---|:---|
| Submitted by: | Accepted by: |
| GRANTEE: | SCRIBE THERAPEUTICS INC. |
|  | By: |
| (Signature) | Title: |
| <u>Address:</u> | <u>Address:</u> |
|  | **[COMPANY ADDRESS]** |

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**<u>EXHIBIT B</u>**

**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**INVESTMENT REPRESENTATION STATEMENT** 

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| | |
|:---|:---|
| GRANTEE: | |
| COMPANY: | SCRIBE THERAPEUTICS INC. |
| SECURITY: | COMMON STOCK |
| AMOUNT: | |
| DATE: | |

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In connection with the purchase of the above-listed Securities, the undersigned Grantee represents to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Grantee is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Grantee is acquiring these Securities for investment for Grantee's own account only and not with a view to, or for resale in connection with, any "distribution" thereof within the meaning of the Securities Act of 1933, as amended (the "Securities Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Grantee acknowledges and understands that the Securities constitute "restricted securities" under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon among other things, the bona fide nature of Grantee's investment intent as expressed herein. Grantee further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Grantee further acknowledges and understands that the Company is under no obligation to register the Securities. Grantee understands that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Grantee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of "restricted securities" acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Grantee, the exercise will be exempt from registration under the Securities Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, except in the case of affiliates, such Securities may be resold subject to the satisfaction of the applicable conditions specified by Rule 144, including: (1) the availability of certain public information about the Company, (2) the amount of Securities being sold during any three month period not exceeding specified limitations, (3) the resale being made in an unsolicited "broker's transaction," in transactions directly with a "market maker" or "riskless principal transactions" (as said terms are defined under the Securities Exchange Act of 1934) and (4) the timely filing of a Form 144, if applicable.

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In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require: the availability of current public information about the Company; the resale to occur more than a specified period after the purchase and full payment (within the meaning of Rule 144) for the Securities; and, in the case of the sale of Securities by an affiliate, the satisfaction of the conditions set forth in sections (2), (3) and (4) of the paragraph immediately above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Grantee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Grantee understands that no assurances can be given that any such other registration exemption will be available in such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Grantee represents that the Grantee is a resident of the state of ___________________.

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| | |
|:---|:---|
|  Signature of Grantee: | Signature of Grantee: |
|  Date: | ,<u> </u> |

---

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**<u>EXHIBIT A</u>**

**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**EXERCISE NOTICE** 

**[COMPANY ADDRESS]**

Attention: Secretary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Effective as of today, , the undersigned (the "Grantee") hereby elects to exercise the Grantee's option to purchase shares of the Common Stock (the "Shares") of Scribe Therapeutics Inc. (the "Company") under and pursuant to the Company's 2018 Stock Incentive Plan, as amended from time to time (the "Plan") and the Stock Option Award Agreement (the "Option Agreement") and Notice of Stock Option Award (the "Notice") dated . Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Exercise Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Representations of the Grantee</u>. The Grantee acknowledges that the Grantee has received, read and understood the Notice, the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Rights as Stockholder</u>. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan.

The Grantee shall enjoy rights as a stockholder until such time as the Grantee disposes of the Shares or the Company and/or its assignee(s) exercises the Right of First Refusal. Upon such exercise, the Grantee shall have no further rights as a holder of the Shares so purchased except the right to receive payment for the Shares so purchased in accordance with the provisions of the Option Agreement, and the Grantee shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Delivery of Payment</u>. The Grantee herewith delivers to the Company the full Exercise Price for the Shares, which to the extent selected, shall be deemed to be satisfied by use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in Section 4(d) of the Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Tax Consultation</u>. The Grantee understands that the Grantee may suffer adverse tax consequences as a result of the Grantee's purchase or disposition of the Shares. The Grantee represents that the Grantee has consulted with any tax consultants the Grantee deems advisable in connection with the purchase or disposition of the Shares and that the Grantee is not relying on the Company for any tax advice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Taxes</u>. The Grantee agrees to satisfy all applicable federal, state and local income and employment tax withholding obligations and herewith delivers to the Company the full amount of such obligations or has made arrangements acceptable to the Company to satisfy such obligations. In the case of an Incentive Stock Option, the Grantee also agrees, as partial consideration for the designation of the Option as an Incentive Stock Option, to notify the Company in writing within thirty (30) days of any disposition of any shares acquired by exercise of the Option if such disposition occurs within two (2) years from the Date of Award or within one (1) year from the date the Shares were transferred to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Restrictive Legends</u>. The Grantee understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Successors and Assigns</u>. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise Notice shall be binding upon the Grantee and his or her heirs, executors, administrators, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Construction</u>. The captions used in this Exercise Notice are inserted for convenience and shall not be deemed a part of this agreement for construction or interpretation. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Administration and Interpretation</u>. The Grantee hereby agrees that any question or dispute regarding the administration or interpretation of this Exercise Notice shall be submitted by the Grantee or by the Company to the Administrator. The resolution of such question or dispute by the Administrator shall be final and binding on all persons.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Governing Law; Severability</u>. This Exercise Notice is to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties. Should any provision of this Exercise Notice be determined by a court of law to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain effective and shall remain enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown below beneath its signature, or to such other address as such party may designate in writing from time to time to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Further Instruments</u>. The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Entire Agreement</u>. The Notice, the Plan and the Option Agreement are incorporated herein by reference and together with this Exercise Notice constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee's interest except by means of a writing signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Option Agreement and this Exercise Notice (except as expressly provided therein) is intended to confer any rights or remedies on any persons other than the parties.

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| | |
|:---|:---|
| Submitted by: | Accepted by: |
| GRANTEE: | SCRIBE THERAPEUTICS INC. |
|  | By: |
|  | Title: |
| <u>Address:</u> | <u>Address:</u> |

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I,<u> </u>, spouse of ("<u>Purchaser</u>"), have read and hereby approve the foregoing Option Agreement. In consideration of the Company's granting my spouse the right to purchase the Shares as set forth in the Option Agreement, I hereby agree to be bound irrevocably by the Option Agreement and further agree that any community property or other such interest that I may have in the Shares shall hereby be similarly bound by the Option Agreement. I hereby appoint my spouse as my attorney-in-fact with respect to any amendment or exercise or waiver of any rights under the Option Agreement.

  <br> Spouse of Purchaser (if applicable)

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**<u>EXHIBIT B</u>**

**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**INVESTMENT REPRESENTATION STATEMENT** 

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| | |
|:---|:---|
| GRANTEE: | |
| COMPANY: | SCRIBE THERAPEUTICS INC. |
| SECURITY: | COMMON STOCK |
| AMOUNT: | |
| DATE: | |

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In connection with the purchase of the above-listed Securities, the undersigned Grantee represents to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Grantee is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Grantee is acquiring these Securities for investment for Grantee's own account only and not with a view to, or for resale in connection with, any "distribution" thereof within the meaning of the Securities Act of 1933, as amended (the "Securities Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Grantee acknowledges and understands that the Securities constitute "restricted securities" under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon among other things, the bona fide nature of Grantee's investment intent as expressed herein. Grantee further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Grantee further acknowledges and understands that the Company is under no obligation to register the Securities. Grantee understands that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Grantee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of "restricted securities" acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Grantee, the exercise will be exempt from registration under the Securities Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, except in the case of affiliates, such Securities may be resold subject to the satisfaction of the applicable conditions specified by Rule 144, including: (1) the availability of certain public information about the Company, (2) the amount of Securities being sold during any three month period not exceeding specified limitations, (3) the resale being made in an unsolicited "broker's transaction," in transactions directly with a "market maker" or "riskless principal transactions" (as said terms are defined under the Securities Exchange Act of 1934) and (4) the timely filing of a Form 144, if applicable.

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In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require: the availability of current public information about the Company; the resale to occur more than a specified period after the purchase and full payment (within the meaning of Rule 144) for the Securities; and, in the case of the sale of Securities by an affiliate, the satisfaction of the conditions set forth in sections (2), (3) and (4) of the paragraph immediately above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Grantee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Grantee understands that no assurances can be given that any such other registration exemption will be available in such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Grantee represents that the Grantee is a resident of the state of _____________________.

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| |
|:---|
| Signature of Grantee: |
| Date: _________________, _____ |

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**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**<u>NOTICE OF RESTRICTED STOCK PURCHASE AWARD</u>**

Grantee's Name and Address:

You (the "Grantee") have been granted the right to purchase shares of Common Stock of the Company (the "Award"), subject to the terms and conditions of this Notice of Restricted Stock Purchase Award (the "Notice"), the Scribe Therapeutics Inc. 2018 Stock Incentive Plan, as amended from time to time (the "Plan") and the Restricted Stock Purchase Award Agreement (the "Agreement") attached hereto, as follows. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Notice.

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| |
|:---|
| Award Number |
| Date of Award |
| Date of Purchase |
| Vesting Commencement Date |
| Total Number of Shares<br>of Common Stock Awarded (the "Shares") |
| Fair Market Value per Share on Date of Award |
| Purchase Price per Share |

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<u>Vesting Schedule:</u> 

Subject to the Grantee's Continuous Service and other limitations set forth in this Notice, the Agreement and the Plan, the Shares will "vest" in accordance with the following schedule:

[25% of the Shares shall vest twelve (12) months after the Vesting Commencement Date, and 1/36 of the remaining unvested Shares shall vest on each of the next thirty-six (36) monthly anniversaries of the Vesting Commencement Date thereafter.]

During any authorized leave of absence, the vesting of the Shares as provided in this schedule shall be suspended after the leave of absence exceeds a period of three (3) months. Vesting of the Shares shall resume upon the Grantee's termination of the leave of absence and return to Continuous Service. The Vesting Schedule of the Shares shall be extended by the length of the suspension.

In the event of the Grantee's change in status from Employee, Director or Consultant to any other status of Employee, Director or Consultant, the Shares shall continue to vest in accordance with the Vesting Schedule set forth above.

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For purposes of this Notice and the Agreement, the term "vest" shall mean, with respect to any Shares, that such Shares are no longer subject to the Restricted Share Repurchase Right as set forth in the Agreement; provided, however, that such Shares shall remain subject to other restrictions on transfer set forth in the Agreement or the Plan. Shares that have not vested are deemed "Restricted Shares." If the Grantee would become vested in a fraction of a Restricted Share, such Restricted Share shall not vest until the Grantee becomes vested in the entire Share.

Vesting shall cease upon the date of termination of the Grantee's Continuous Service for any reason, including death or Disability. The Award shall be subject to the provisions of Section 11 of the Plan in the event of a Corporate Transaction or Change in Control, and the repurchase provisions set forth in this Notice and the Agreement as to Restricted Shares shall apply to the new capital stock or other property (including cash paid other than as a regular cash dividend) received in exchange for the Shares in consummation of any such transaction; such stock or property shall be deemed Additional Securities (as defined in the Agreement) for purposes of the Agreement, but only to the extent the Shares are at the time covered by such forfeiture provisions.

IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the Award is to be governed by the terms and conditions of this Notice, the Plan, and the Agreement.

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| |
|:---|
| Scribe Therapeutics Inc.,<br> a Delaware corporation |
| By: |
| Title: |

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THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE'S CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER). THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE AGREEMENT, NOR IN THE PLAN, SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION OF THE GRANTEE'S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE'S RIGHT OR THE COMPANY'S RIGHT OR A RELATED ENTITY'S RIGHT TO TERMINATE THE GRANTEE'S CONTINUOUS SERVICE AT ANY TIME, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE GRANTEE ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY OR A RELATED ENTITY TO THE CONTRARY, THE GRANTEE'S STATUS IS AT WILL.

The Grantee acknowledges receipt of a copy of the Plan and the Agreement and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed this Notice, the Agreement and the Plan in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice and fully understands all provisions of this

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Notice, the Agreement and the Plan. The Grantee hereby agrees that all questions of interpretation and administration relating to this Notice, the Plan and the Agreement shall be resolved by the Administrator in accordance with Section 15 of the Agreement. The Grantee further agrees to the venue selection in accordance with Section 16 of the Agreement. The Grantee further agrees to notify the Company upon any change in the residence address indicated in this Notice. **TO ACCEPT THIS AWARD AND PURCHASE THE SHARES, THE GRANTEE MUST EXECUTE AND DELIVER THIS SIGNED NOTICE AND AGREEMENT TO THE COMPANY ACCOMPANIED WITH PAYMENT OF THE TOTAL PURCHASE PRICE (PAID IN ACCORDANCE WITH SECTION 1 OF THE AGREEMENT) WITHIN 30 DAYS OF RECEIPT OF THIS NOTICE FROM THE COMPANY. THE DATE OF DELIVERY OF THE SIGNED NOTICE AND AGREEMENT TOGETHER WITH PAYMENT OF THE TOTAL PURCHASE PRICE SHALL CONSTITUTE THE DATE OF PURCHASE OF THE SHARES.**

Dated: ______________________ Signed: ____________________________________________

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**Award Number: __________________** 

**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**<u>RESTRICTED STOCK PURCHASE AWARD AGREEMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purchase of Shares</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;(a) Scribe Therapeutics Inc., a Delaware corporation (the "Company"), hereby agrees to issue and sell to the Grantee (the "Grantee") named in the Notice of Restricted Stock Purchase Award (the "Notice"), the Total Number of Shares of Common Stock Awarded set forth in the Notice (the "Shares") for a Purchase Price per Share set forth in the Notice (the "Total Purchase Price"), subject to the Notice, this Restricted Stock Purchase Award Agreement (the "Agreement") and the terms and provisions of the Company's 2018 Stock Incentive Plan (the "Plan"), as amended from time to time, which are incorporated herein by reference. Payment for the Shares in the amount of the Total Purchase Price set forth in the Notice shall be made to the Company upon execution of the Notice. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Agreement. All Shares sold hereunder will be deemed issued to the Grantee as fully paid and nonassessable shares, and the Grantee will have the right to vote the Shares at meetings of the Company's stockholders. The Company shall pay any applicable stock transfer taxes imposed upon the issuance of the Shares to the Grantee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Method of Payment</u>. Payment of the Total Purchase Price shall be by any of the following, or a combination thereof, at the election of the Grantee; provided, however, that such payment method does not then violate an Applicable Law and, provided further, that the portion of the Total Purchase Price equal to the par value of the Shares must be paid in cash or other legal consideration permitted by the Delaware General Corporation Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) cash; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) check.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Transfer Restrictions</u>. The Shares sold to the Grantee hereunder may not be sold, transferred by gift, pledged, hypothecated, or otherwise transferred or disposed of by the Grantee prior to the date when the Shares become vested pursuant to the Vesting Schedule set forth in the Notice. Any attempt to transfer Restricted Shares in violation of this Section 2 will be null and void and will be disregarded. After the Shares vest, the Shares will be subject to the Company's Right of First Refusal as set forth in Section 7 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Escrow of Stock</u>. For purposes of facilitating the enforcement of the provisions of this Agreement, the Grantee agrees, immediately upon receipt of the certificate(s) for the Restricted Shares, to deliver such certificate(s), together with an Assignment Separate from Certificate in the form attached hereto as <u>Exhibit</u> <u>A</u>, executed in blank by the Grantee with respect to each such stock certificate, to the Secretary or Assistant Secretary of the Company, or

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their designee, to hold in escrow for so long as such Restricted Shares have not vested pursuant to the Vesting Schedule set forth in the Notice or continue to remain subject to the Company's Right of First Refusal, with the authority to take all such actions and to effectuate all such transfers and/or releases as may be necessary or appropriate to accomplish the objectives of this Agreement in accordance with the terms hereof. The Grantee hereby acknowledges that the appointment of the Secretary or Assistant Secretary of the Company (or their designee) as the escrow holder hereunder with the stated authorities is a material inducement to the Company to make this Agreement and that such appointment is coupled with an interest and is accordingly irrevocable. The Grantee agrees that the Restricted Shares may be held electronically in a book entry system maintained by the Company's transfer agent or other third-party and that all the terms and conditions of this Section 3 applicable to certificated Restricted Shares will apply with the same force and effect to such electronic method for holding the Restricted Shares. The Grantee agrees that such escrow holder shall not be liable to any party hereto (or to any other party) for any actions or omissions unless such escrow holder is grossly negligent relative thereto. The escrow holder may rely upon any letter, notice or other document executed by any signature purported to be genuine and may resign at any time. Upon the vesting of Restricted Shares and termination of the Company's Right of First Refusal, the escrow holder will, without further order or instruction, transmit to the Grantee the certificate evidencing such Shares; provided, however, that no transmittal of certificates evidencing the Shares will occur unless and until the Grantee has satisfied all tax withholding obligations provided in Section 5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Distributions</u>. The Company shall disburse to the Grantee all regular cash dividends with respect to the Shares and Additional Securities (whether vested or not), less any applicable withholding obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Section 83(b) Election and Withholding of Taxes</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;(a) The Grantee shall provide the Administrator with a copy of any timely election made pursuant to Section 83(b) of the Internal Revenue Code or similar provision of state law (collectively, an "83(b) Election"), a form of which is attached hereto as <u>Exhibit</u> <u>B</u>. If the Grantee makes a timely 83(b) Election, the Grantee shall immediately pay the Company the amount necessary to satisfy any applicable foreign, federal, state, and local income and employment tax withholding obligations. If the Grantee does not make a timely 83(b) Election, the Grantee shall, as Restricted Shares shall vest or at the time withholding is otherwise required by any Applicable Law, pay the Company the amount necessary to satisfy any applicable foreign, federal, state, and local income and employment tax withholding obligations. The Grantee hereby represents that he or she understands (a) the contents and requirements of the 83(b) Election, (b) the application of Section 83(b) to the receipt of the Shares by the Grantee pursuant to this Agreement, (c) the nature of the election to be made by the Grantee under Section 83(b), and (d) the effect and requirements of the 83(b) Election under relevant state and local tax laws. The Grantee further represents that he or she intends to file an election pursuant to Section 83(b) with the Internal Revenue Service within thirty (30) days following the date of this Agreement, and submit a copy of such election to the Company.

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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;(b) <u>Tax Liability</u>. The Grantee is ultimately liable and responsible for all taxes owed by the Grantee in connection with the Award, regardless of any action the Company or any Related Entity takes with respect to any tax withholding obligations that arise in connection with the Award. Neither the Company nor any Related Entity makes any representation or undertaking regarding the treatment of any tax withholding in connection with the grant or vesting of the Award or the subsequent sale of Shares subject to the Award. The Company and its Related Entities do not commit and are under no obligation to structure the Award to reduce or eliminate the Grantee's tax liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Additional Securities</u>. Any securities or cash received (other than a regular cash dividend) as the result of ownership of the Restricted Shares (the "Additional Securities"), including, but not by way of limitation, warrants, options and securities received as a stock dividend or stock split, or as a result of a recapitalization or reorganization or other similar change in the Company's capital structure, shall be retained in escrow in the same manner and subject to the same conditions and restrictions as the Restricted Shares with respect to which they were issued, including, without limitation, the Vesting Schedule set forth in the Notice and the Right of First Refusal. The Grantee shall be entitled to direct the Company to exercise any warrant or option received as Additional Securities upon supplying the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the Grantee may not direct the Company to sell any such warrant or option. If Additional Securities consist of a convertible security, the Grantee may exercise any conversion right, and any securities so acquired shall constitute Additional Securities. Appropriate adjustments to reflect the distribution of Additional Securities shall be made to the price per share to be paid upon the exercise of any repurchase rights herein set forth in order to reflect the effect of any such transaction upon the Company's capital structure. In the event of any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization, reorganization or other transaction that results in the creation of Additional Securities, the escrow holder is authorized to deliver to the issuer the certificates evidencing the Shares or the Additional Securities in exchange for the certificates of the replacement securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Company's Right of First Refusal</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;(a) <u>Transfer Notice</u>. Following the date when any Shares become vested pursuant to the Vesting Schedule set forth in the Notice, neither the Grantee nor any transferee of such Shares (either being sometimes referred to herein as the "Holder") shall sell, hypothecate, encumber or otherwise transfer any such Shares or any right or interest therein without first complying with the provisions of this Section 7 or obtaining the prior written consent of the Company and provided further that such Shares are "Mature Shares" (which means that the Shares have been held by the Holder (and any successor Holder) for the requisite period, if any, necessary to avoid a charge to the Company's earnings for financial reporting purposes). In the event the Holder desires to accept a bona fide third-party offer for any or all of such Shares, the Holder shall provide the Company with written notice (the "Transfer Notice") of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Holder's intention to transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The name of the proposed transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The number of Shares to be transferred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The proposed transfer price or value and terms thereof.

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If the Holder proposes to transfer any Shares to more than one transferee, the Holder shall provide a separate Transfer Notice for the proposed transfer to each transferee. The Transfer Notice shall be signed by both the Holder and the proposed transferee and must constitute a binding commitment of the Holder and the proposed transferee for the transfer of the Shares to the proposed transferee subject to the terms and conditions of this Option 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;(b) <u>Bona Fide Transfer</u>*.* If the Company determines that the information provided by the Holder in the Transfer Notice is insufficient to establish the bona fide nature of a proposed voluntary transfer, the Company shall give the Holder written notice of the Holder's failure to comply with the procedure described in this Section 7, and the Holder shall have no right to transfer the Shares without first complying with the procedure described in this Section 7. The Holder shall not be permitted to transfer the Shares if the proposed transfer is not bona fide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>First Refusal Exercise Notice</u>. The Company shall have the right to purchase (the "Right of First Refusal") all but not less than all of the Shares which are described in the Transfer Notice (the "Offered Shares"). The Offered Shares shall be repurchased at (i) the per share price or value and in accordance with the terms stated in the Transfer Notice (subject to Section 7(d) below) or (ii) the Fair Market Value of the Shares on the date on which the purchase is to be effected if no consideration is paid pursuant to the terms stated in the Transfer Notice, which Right of First Refusal shall be exercised by written notice (the "First Refusal Exercise Notice") to the Holder at any time within thirty (30) days after receipt of the Transfer Notice (the "Option Period").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment Terms</u>. The Company shall consummate the purchase of the Offered Shares on the terms set forth in the Transfer Notice within sixty (60) days after delivery of the First Refusal Exercise Notice; provided, however, that in the event the Transfer Notice provides for the payment for the Offered Shares other than in cash, the Company and/or its assigns shall have the right to pay for the Offered Shares by the discounted cash equivalent of the consideration described in the Transfer Notice as reasonably determined by the Administrator. Upon payment for the Offered Shares to the Holder or into escrow for the benefit of the Holder, the Company or its assigns shall become the legal and beneficial owner of the Offered Shares and all rights and interest therein or related thereto, and the Company shall have the right to transfer the Offered Shares to its own name or its assigns without further action by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Assignment</u>. Whenever the Company shall have the right to purchase Shares under this Right of First Refusal, the Company may designate and assign one or more employees, officers, directors or stockholders of the Company or other persons or organizations, to exercise all or a part of the Company's Right of First Refusal.

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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;(f) <u>Non-Exercise</u>. If the Company and/or its assigns do not collectively elect to exercise the Right of First Refusal within the Option Period or such earlier time if the Company and/or its assigns notifies the Holder that it will not exercise the Right of First Refusal, then the Holder may transfer the Shares upon the terms and conditions stated in the Transfer Notice, provided 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The transfer is made within forty-five (45) days of the earlier of (A) the date the Company and/or its assigns notify the Holder that the Right of First Refusal will not be exercised or (B) the expiration of the Option 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The transferee agrees in writing that such Shares shall be held subject to the provisions of this Option Agreement.

The Company shall have the right to demand further assurances from the Holder and the transferee (in a form satisfactory to the Company) that the transfer of the Offered Shares was actually carried out on the terms and conditions described in the Transfer Notice. No Offered Shares shall be transferred on the books of the Company until the Company has received such assurances, if so demanded, and has approved the proposed transfer as bona fide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Expiration of Transfer Period</u>. Following such 45-day period, no transfer of the Offered Shares and no change in the terms of the transfer as stated in the Transfer Notice (including the name of the proposed transferee) shall be permitted without a new written Transfer Notice prepared and submitted in accordance with the requirements of this Right of First Refusal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Termination of Right of First Refusal</u>. The provisions of this Right of First Refusal shall terminate as to all Shares upon the Registration Date.

&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>Additional Shares or Substituted Securities</u>. In the event of any transaction described in Sections 10 or 11 of the Plan, any new, substituted or additional securities or other property which is by reason of any such transaction distributed with respect to the Shares shall be immediately subject to the Right of First Refusal, but only to the extent the Shares are at the time covered by such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Stop-Transfer Notices</u>. In order to ensure compliance with the restrictions on transfer set forth in this Agreement, the Notice or the Plan, the Company may issue appropriate "stop transfer" instructions to its transfer agent, if any, and, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. The Company may issue a "stop transfer" instruction if the Grantee fails to satisfy any tax withholding obligation set forth in Section 5 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Refusal to Transfer</u>. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Restrictive Legends</u>. The Grantee understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER, A RIGHT OF FIRST REFUSAL AND A REPURCHASE RIGHT HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE RESTRICTED STOCK PURCHASE AWARD AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL AND REPURCHASE RIGHT ARE BINDING ON TRANSFEREES OF THESE SHARES.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Market Standoff Agreement</u>. The Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of shares of its Common Stock or any other equity securities under the Securities Act of 1933, as amended, on a registration statement on Form S-1 or Form S-3, and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports, and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective date of the registration statement for such offering or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The underwriters in connection with such registration are intended third party beneficiaries of this Section 16 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. The Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 16 or that are necessary to give further effect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Grantee's Representations</u>. As a condition to receiving the Shares, the Grantee shall, if required by the Company, concurrently with the receipt of the Shares, deliver to the Company his or her Investment Representation Statement in the form attached hereto as <u>Exhibit</u> <u>C</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Entire Agreement: Governing Law</u>. The Notice, the Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee's interest except by means of a writing signed by the Company and the Grantee. Nothing in the Notice, the Plan and this Agreement (except as expressly provided therein) is intended to confer any rights or remedies on any persons other than the parties. These agreements are to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties. Should any provision of the Notice or this Agreement be determined to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Construction</u>. The captions used in the Notice and this Agreement are inserted for convenience and shall not be deemed a part of the Agreement for construction or interpretation. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Administration and Interpretation</u>. Any question or dispute regarding the administration or interpretation of the Notice, the Plan or this Agreement shall be submitted by the Grantee or by the Company to the Administrator. The resolution of such question or dispute by the Administrator shall be final and binding on all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Venue</u>. The Company, the Grantee, and the Grantee's assignees pursuant to Section 2 (the "parties") agree that any suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Agreement shall be brought in a United States District Court for the Northern District of California (or should such court lack jurisdiction to hear such action, suit or proceeding, in a California state court) and that the parties shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the laying of venue for any such suit, action or proceeding brought in such court. If any one or more provisions of this Section 16 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Notices</u>. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown in these instruments, or to such other address as such party may designate in writing from time to time to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Confidentiality</u>. If the Company is required by Applicable Laws to provide financial statements to the Grantee, the Grantee understands and agrees that such financial statements are confidential and shall not be disclosed by the Grantee, to any entity or person, for any reason, at any time, without the prior written consent of the Company, unless required by law. If disclosure of such financial statements is required by law, whether through subpoena, request for production, deposition, or otherwise, the Grantee promptly shall provide written notice to Company, including copies of the subpoena, request for production, deposition, or otherwise, within five (5) business days of their receipt by the Grantee and prior to any disclosure so as to provide Company an opportunity to move to quash or otherwise to oppose the disclosure. Notwithstanding the foregoing, the Grantee may disclose the terms of such financial statements to his or her spouse or domestic partner, and for legitimate business reasons, to legal, financial, and tax advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Company's Restricted Share Repurchase Right</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;(a) <u>Grant of Restricted Share Repurchase Right</u>. The Company is hereby granted the right (the "Restricted Share Repurchase Right"), exercisable at any time during the nine (9) month period (the "Share Repurchase Period") following the date the Grantee's Continuous Service terminates for any reason, with or without cause (including death or disability) (the "Termination Date") to repurchase all or any portion of the Shares that are deemed Restricted Shares.

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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;(b) <u>Exercise of the Restricted Share Repurchase Right</u>. The Restricted Share Repurchase Right shall be exercisable by written notice delivered to the Grantee prior to the expiration of the Share Repurchase Period. The notice shall indicate the number of Shares to be repurchased and the date on which the repurchase is to be effected, such date to be not later than the last day of the Share Repurchase Period. On the date on which the repurchase is to be effected, the Company and/or its assigns shall pay to the Grantee in cash or cash equivalents (including the cancellation of any purchase-money indebtedness) an amount equal to the lesser of the Purchase Price per Share previously paid by the Grantee to the Company and the Fair Market Value per Share on the date on which such repurchase is to be effected. Upon such payment to the Grantee or into escrow for the benefit of the Grantee, the Company and/or its assigns shall become the legal and beneficial owner of the Shares being repurchased and all rights and interest thereon or related thereto, and the Company shall have the right to transfer to its own name or its assigns the number of Shares being repurchased, without further action by the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Assignment</u>. Whenever the Company shall have the right to purchase Shares under this Restricted Share Repurchase Right, the Company may designate and assign one or more employees, officers, directors or stockholders of the Company or other persons or organizations, to exercise all or a part of the Company's Restricted Share Repurchase Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination of the Restricted Share Repurchase Right</u>. The Restricted Share Repurchase Right shall terminate with respect to any Shares for which it is not timely exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Corporate Transaction</u>. In the event of a Corporate Transaction, the Restricted Share Repurchase Right shall apply to the new capital stock or other property (including cash paid other than as a regular cash dividend) received in exchange for the Shares in consummation of the Corporate Transaction and such stock or property shall be deemed Additional Securities for purposes of this Agreement, but only to the extent the Shares are at the time covered by such Restricted Share Repurchase Right. Appropriate adjustments shall be made to the price per share payable upon exercise of the Restricted Share Repurchase Right to reflect the effect of the Corporate Transaction.

**END OF AGREEMENT** 

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**EXHIBIT A** 

**STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE** 

FOR VALUE RECEIVED, ____________________________ hereby sells, assigns and transfers unto _______________________, __________________ (____) shares of the Common Stock of Scribe Therapeutics Inc., a Delaware corporation (the "Company"), standing in his name on the books of, the Company represented by Certificate No. __ herewith, and does hereby irrevocably constitute and appoint the Secretary of the Company attorney to transfer the said stock in the books of the Company with full power of substitution.

DATED: ________________

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**<u>EXHIBIT B</u>**

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986

The undersigned taxpayer hereby elects, pursuant to the Internal Revenue Code, to include in gross income for 201_ the amount of any compensation taxable in connection with the taxpayer's receipt of the property described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name, address, taxpayer identification number and taxable year of the undersigned are:

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TAXPAYER'S NAME: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TAXPAYER'S SOCIAL SECURITY NO.: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TAXABLE YEAR: Calendar Year 201  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ADDRESS: |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The property which is the subject of this election is __________ shares of common stock of Scribe Therapeutics Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The property was transferred to the undersigned on ____________, 201 .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The property is subject to the following restrictions: The property is subject to a repurchase right pursuant to which the issuer has the right to acquire the property at the original purchase price if for any reason taxpayer's employment or service with the issuer is terminated. The issuer's repurchase right lapses in a series of periodic installments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The fair market value of the property at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is: $_______ per share x ________ shares = $___________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The undersigned paid $________ per share x _________ shares for the property transferred for a total of $________.

The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned's receipt of the above-described property. The undersigned taxpayer is the person performing the services in connection with the transfer of said property.

The undersigned will file this election with the Internal Revenue Service office to which he files his annual income tax return not later than 30 days after the date of transfer of the property. A copy of the election also will be furnished to the person for whom the services were performed.

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The undersigned understands that this election will also be effective as an election under **_____________** law.

Dated:<u> </u> <br> Taxpayer

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**<u>EXHIBIT C</u>**

**SCRIBE THERAPEUTICS INC. 2018 STOCK INCENTIVE PLAN** 

**<u>INVESTMENT REPRESENTATION STATEMENT</u>**

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| | | |
|:---|:---|:---|
| GRANTEE | : |  |
| COMPANY | : | SCRIBE THERAPEUTICS INC. |
| SECURITY | : | COMMON STOCK |
| AMOUNT | : |  |
| DATE | : |  |

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In connection with the purchase of the above-listed Securities, the undersigned Grantee represents to the Company 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;(f) The Grantee is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. The Grantee is acquiring these Securities for investment for the Grantee's own account only and not with a view to, or for resale in connection with, any "distribution" thereof within the meaning of the Securities Act of 1933, as amended (the "Securities Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Grantee acknowledges and understands that the Securities constitute "restricted securities" under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon among other things, the bona fide nature of the Grantee's investment intent as expressed herein. In this connection, the Grantee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if the Grantee's representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future. The Grantee further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. The Grantee further acknowledges and understands that the Company is under no obligation to register the Securities. The Grantee understands that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel satisfactory 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;(h) Grantee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of "restricted securities" acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer

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qualifies under Rule 701 at the time of the sale of the Shares to the Grantee, the sale will be exempt from registration under the Securities Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, except in the case of affiliates, such Securities may be resold subject to the satisfaction of the applicable conditions specified by Rule 144, including: (1) the availability of certain public information about the Company, (2) the amount of Securities being sold during any three month period not exceeding specified limitations, (3) the resale being made in an unsolicited "broker's transaction," in transactions directly with a "market maker" or "riskless principal transactions" (as said terms are defined under the Securities Exchange Act of 1934) and (4) the timely filing of a Form 144, if applicable.

In the event that the Company does not qualify under Rule 701 at the time of sale of the Securities, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require: the availability of current public information about the Company; the resale to occur more than a specified period after the purchase and full payment (within the meaning of Rule 144) for the Securities; and, in the case of the sale of Securities by an affiliate, the satisfaction of the conditions set forth in sections (2), (3) and (4) of the paragraph immediately above.

&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 Grantee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. The Grantee understands that no assurances can be given that any such other registration exemption will be available in such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Grantee represents that the Grantee is a resident of the state of ____________________.

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| |
|:---|
| Signature of the Grantee: |
| Date:<u> </u>, |

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## Exhibit 10.7

**Exhibit 10.7** 

**MARINA VILLAGE** 

**<u>LEASE</u>**

G&I IX MARINA VILLAGE OFFICE PARK LP,

a Delaware limited partnership

as Landlord,

and

SCRIBE THERAPEUTICS INC.,

a Delaware corporation

as Tenant

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**<u>SUMMARY OF BASIC LEASE INFORMATION</u>**

This Summary of Basic Lease Information ("**Summary**") is hereby incorporated into and made a part of the attached Lease. Each reference in the Lease to any term of this Summary shall have the meaning as set forth in this Summary for such term. In the event of a conflict between the terms of this Summary and the Lease, the terms of the Lease shall prevail. Any capitalized terms used herein and not otherwise defined herein shall have the meaning as set forth in the Lease.

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| | |
|:---|:---|
| **TERMS OF LEASE**<br> (References are to the Lease) | **DESCRIPTION** |
| 1. Date: | August 15, 2019 |
| 2. Landlord: | G&I IX MARINA VILLAGE OFFICE PARK LP,<br> a Delaware limited partnership |
| 3. Address of Landlord (Section 24.19): | G&I IX Marina Village Office Park LP<br> c/o DRA Advisors LLC<br> 220 East 42nd Street<br> 27th Floor<br> New York, NY 10017<br> Attention: Asset Manager |
|  | With copies to: |
|  | CBRE<br> 1301 Marina Village Parkway, Suite 110<br> Alameda, CA 94501<br> Attention: Property Manager<br> Email: [\*] |
|  | and |
|  | Local Capital Group<br> The Presidio<br> 572 Ruger Street, Suite A<br> San Francisco, CA 94129<br> Attention: Dan J. Poritzky |
|  | and |
|  | Ziontz & Radick LLP<br> 233 Wilshire Blvd., Suite 600<br> Santa Monica, CA 90401<br> Attention: Mitch Ziontz, Esq. |

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| | |
|:---|:---|
| **TERMS OF LEASE**<br> (References are to the Lease) | **DESCRIPTION** |
|  | <u>For Payments by Check via USPS:</u> |
|  | [\*]<br> [\*]<br> [\*]<br> [\*]<br> [\*] |
|  | <u>For Payments by Check via Overnight Delivery:</u> |
|  | [\*]<br> [\*]<br> [\*]<br> [\*]<br> [\*] |
|  | <u>For Payments by Wire or ACH:</u> |
|  | [\*]<br> [\*]<br> [\*]<br> [\*]<br> [\*]<br> [\*] |
| 4. Tenant: | SCRIBE THERAPEUTICS INC.,<br> a Delaware corporation |
| 5. Address of Tenant (Section 24.19): | 2151 Berkeley Way<br> Berkeley, California 94704<br> (Prior to Lease Commencement Date) |
|  | and |
|  | The Premises<br> (After Lease Commencement Date) |
| 6. Premises (Article 1): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Premises: | 14,152 rentable square feet of space consisting of the entire Building (as defined below), as depicted on **<u>Exhibit</u> A** attached hereto. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Building: | The Premises are located in the building whose address is 1150 Marina Village Parkway, Alameda, California. |
| 7. Term (Article 2): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Lease Term: | Sixty-two (62) months. |

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-ii-

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| | |
|:---|:---|
| **TERMS OF LEASE**<br> (References are to the Lease) | **DESCRIPTION** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Lease Commencement Date: | The date of Substantial Completion of the Tenant Improvements (as such terms are defined in **<u>Exhibit B</u>)**. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 Lease Expiration Date: | The last day of the sixty-second (62<sup>nd</sup>) full calendar month from the Commencement Date. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 Amendment to Lease: | Landlord and Tenant may confirm the Lease Commencement Date in a First Amendment to Lease in the form attached as <u>**Exhibit E**</u> to be executed pursuant to Article 2 of this Lease. |
| 8. Base Rent (Article 3): |  |

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| | | |
|:---|:---|:---|
| Months | Monthly<br>Installment<br>of Base Rent | Approx. Monthly Base<br>Rental Rate per RSF<br>of Premises |
|  1 – 12\* | $28304.00 | $2.00 |
| 13 – 24 | $42456.00 | $3.00 |
| 25 – 36 | $60146.00 | $4.25 |
| 37 – 48 | $61950.38 | $4.38 |
| 49 – 60 | $63808.89 | $4.51 |
| 61 – 62 | $65723.16 | $4.64 |

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\* Subject to abatement of Base Rent and Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs for the first (1<sup>st</sup>) two (2) full calendar months of the Lease Term pursuant to Section 3.2 of the Lease.

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| | |
|:---|:---|
| 9. Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs (Section 4.2.6): | 100% (14,152 rentable square feet within the Premises/14,152 rentable square feet within the Building). |
| 10. Letter of Credit (Article 20): | Tenant shall provide a letter of credit with Landlord as the beneficiary in the amount of $675,000.00, subject to reduction as provided in Article 20. |
| 11. Brokers (Section 24.25): | JLL representing Landlord and Colliers International representing Tenant. |
| 12. Parking (Article 23): | Forty-two (42) unreserved parking spaces (<u>i.e.,</u> 3 unreserved parking spaces for every 1,000 rentable square feet of the Premises. |

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
|  |  | **<u>Page</u>** |
|  ARTICLE 1 | PROJECT, BUILDING AND PREMISES; TEMPORARY SPACE; REPLACEMENT PREMISES | 1 |
|  ARTICLE 2 | LEASE TERM | 3 |
|  ARTICLE 3 | BASE RENT | 4 |
|  ARTICLE 4 | ADDITIONAL RENT | 4 |
|  ARTICLE 5 | USE OF PREMISES | 11 |
|  ARTICLE 6 | SERVICES AND UTILITIES | 14 |
|  ARTICLE 7 | REPAIRS | 15 |
|  ARTICLE 8 | ADDITIONS AND ALTERATIONS | 16 |
|  ARTICLE 9 | COVENANT AGAINST LIENS | 17 |
|  ARTICLE 10 | INDEMNIFICATION AND INSURANCE | 17 |
|  ARTICLE 11 | DAMAGE AND DESTRUCTION | 19 |
|  ARTICLE 12 | CONDEMNATION | 21 |
|  ARTICLE 13 | COVENANT OF QUIET ENJOYMENT | 21 |
|  ARTICLE 14 | ASSIGNMENT AND SUBLETTING | 21 |
|  ARTICLE 15 | SURRENDER; OWNERSHIP AND REMOVAL OF PERSONAL PROPERTY | 24 |
|  ARTICLE 16 | HOLDING OVER | 24 |
|  ARTICLE 17 | ESTOPPEL CERTIFICATES | 25 |
|  ARTICLE 18 | SUBORDINATION | 25 |
|  ARTICLE 19 | TENANT'S DEFAULTS; LANDLORD'S REMEDIES | 25 |
|  ARTICLE 20 | LETTER OF CREDIT | 28 |
|  ARTICLE 21 | COMPLIANCE WITH LAW | 31 |
|  ARTICLE 22 | ENTRY BY LANDLORD | 32 |
|  ARTICLE 23 | PARKING | 32 |
|  ARTICLE 24 | MISCELLANEOUS PROVISIONS | 33 |
|  ARTICLE 25 | OPTION TO RENEW | 37 |
|  | OPTION TO RENEW | 37 |

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**EXHIBITS** 

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| | |
|:---|:---|
| A | OUTLINE OF FLOOR PLAN OF PREMISES |
| A-1 | SITE PLAN OF PROJECT |
| B | TENANT WORK LETTER |
| C | RULES AND REGULATIONS |
| D | FORM OF LETTER OF CREDIT |
| E | FORM FIRST AMENDMENT TO LEASE |
| F | APPROVED HAZARDOUS MATERIALS EXHIBIT |

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**<u>INDEX</u>**

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| | |
|:---|:---|
|  | **Page(s)** |
|  Additional Rent | 3 |
|  Alterations | 11 |
|  Approved Working Drawings | *Exhibit B* |
|  Base Rent | 3 |
|  Base, Shell and Core | *Exhibit B* |
|  BOMA | 2 |
|  Brokers | 31 |
|  Calendar Year | 4 |
|  Conservation Costs | 4 |
|  Construction | 32 |
|  Construction Drawings | *Exhibit B* |
|  Contractor | *Exhibit B* |
|  Cost Pools | 5 |
|  Estimate | 7 |
|  Estimate Statement | 7 |
|  Estimated Expenses | 7 |
|  Excluded Changes | 26 |
|  Expense Year | 4 |
|  Final Space Plan | *Exhibit B* |
|  Force Majeure | 30 |
|  Hazardous Material | 9 |
|  Holidays | 9 |
|  HVAC | 10 |
|  Interest Rate | 8 |
|  Landlord | 1 |
|  Landlord Parties | 13 |
|  Lease | 1 |
|  Lease Commencement Date | 2 |
|  Lease Expiration Date | 2 |
|  Lease Term | 2 |
|  Lease Year | 2 |
|  Notices | 30 |
|  Operating Expenses | 4 |
|  Other Buildings | 8 |
|  Other Existing Buildings | 1 |
|  Parking Facilities | 1 |
|  Parking Operator | 27 |
|  Permits | *Exhibit B* |
|  Premises | 1 |
|  Project | 1 |
|  Proposition 13 | 6 |
|  Rent | 3 |
|  Statement | 7 |
|  Subject Space | 16 |
|  Subleasing Costs | 18 |
|  Summary | *i* |
|  Systems and Equipment | 5 |
|  Tax Expenses | 5 |
|  Tenant | 1 |
|  Tenant Improvements | *Exhibit B* |
|  Tenant Work Letter | *Exhibit B* |
|  Tenant's Share | 6 |
|  Transfer Notice | 16 |

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| | |
|:---|:---|
|  Transfer Premium | 17 |
|  Transferee | 16 |
|  Transfers | 16 |
|  Utilities Costs | 6 |
|  Wi-Fi Network | 12 |
|  Working Drawings | *Exhibit B* |

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-vi-

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**<u>LEASE</u>**

This Lease, which includes the preceding Summary and the exhibits attached hereto and incorporated herein by this reference (the Lease, the Summary and the exhibits to be known sometimes collectively hereafter as the "**Lease**"), dated as of the date set forth in Section 1 of the Summary, is made by and between G&I IX MARINA VILLAGE OFFICE PARK LP, a Delaware limited partnership ("**Landlord**"), and SCRIBE THERAPEUTICS INC., a Delaware corporation ("**Tenant**").

**<u>ARTICLE 1</u>**

**<u>PROJECT, BUILDING AND PREMISES; TEMPORARY SPACE; REPLACEMENT PREMISES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Project, Building and Premises</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;1.1.1 <u>Premises</u>. Upon and subject to the terms, covenants and conditions hereinafter set forth in this Lease, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the premises described in Section 6.1 of the Summary (the "**Premises**"), which Premises are located in the Building (as defined in Section 6.2 of the Summary) and located within the Project (as defined below). The floor plan of the Premises is attached hereto as **<u>Exhibit</u> <u>A</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;1.1.2 <u>Building and Project</u>. The Building is part of a multi-building commercial project known as "Marina Village" and located on the approximately 200-acre site on the estuary side of the island of Alameda. The term "**Project**" as used in this Lease, shall mean, collectively: (i) the Building; (ii) the other twenty-six (26) existing buildings located within such 200-acre site (collectively, the "**Other Existing Buildings**"); (iii) the surface parking areas servicing the Building and the Other Existing Buildings and located within such 200-acre site (collectively, the "**Parking Facilities**"); (iv) any outside plaza areas, walkways, driveways, courtyards, public and private streets, transportation facilitation areas and other improvements and facilities now or hereafter constructed surrounding and/or servicing the Building and/or the Other Existing Buildings, which are designated from time to time by Landlord (and/or any other owners of Marina Village) as common areas appurtenant to or servicing the Building, the Other Existing Buildings and any such other improvements; (v) any additional buildings, improvements, facilities and common areas which Landlord (any other owners of Marina Village and/or any common area association formed by Landlord, Landlord's predecessor-in-interest and/or Landlord's assignee for the Project) may add thereto from time to time within or as part of the Project; and (vi) the land upon which any of the foregoing are situated. The site plan depicting the current configuration of the Project is attached hereto as **<u>Exhibit</u> <u>A-1</u>**. Notwithstanding the foregoing or anything contained in this Lease to the contrary, (1) Landlord has no obligation to expand or otherwise make any improvements within the Project, including, without limitation, any of the outside plaza areas, walkways, driveways, courtyards, public and private streets, transportation facilitation areas and other improvements and facilities which may be depicted on **<u>Exhibit</u> <u>A-1</u>** attached hereto (as the same may be modified by Landlord (and/or any other owners of Marina Village) from time to time without notice to Tenant), other than Landlord's obligations (if any) specifically set forth in the Tenant Work Letter attached hereto as **<u>Exhibit</u> <u>B</u>** (the "**Tenant Work Letter**"), and (2) Landlord (and/or any other owners of Marina Village) shall have the right from time to time to include or exclude any improvements or facilities within the Project, at such party's sole election, as more particularly set forth in Section 1.1.3 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.3 <u>Tenant's and Landlord's Rights</u>. For as long as Tenant is leasing the entire Building, Tenant shall have the right to the exclusive use of the common corridors and hallways, stairwells, elevators (if any), restrooms and other public or common areas located within the Building, and the non-exclusive use of those areas located on the Project that are designated by Landlord from time to time as common areas for the Building; provided, however, that (i) Tenant's use thereof shall be subject to (A) the provisions of any covenants, conditions and restrictions regarding the use thereof now or hereafter recorded against the Project, and (B) such reasonable, non-discriminatory rules and regulations as Landlord may make from time to time (which shall be provided in writing to Tenant), and (ii) Tenant may not go on the roof of Building or the Other Existing Buildings without Landlord's prior consent (which may be withheld in Landlord's sole and absolute discretion) and without otherwise being accompanied by a representative of Landlord. Landlord (and/or any other owners of Marina Village) reserve the right from time to time to use any of the common areas of the Project, and the roof, risers and conduits of the Building and the Other Existing Buildings for telecommunications and/or any other purposes, and to do any of the following: (1) make any changes, additions,

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improvements, repairs and/or replacements in or to the Project or any portion or elements thereof, including, without limitation, (x) changes in the location, size, shape and number of driveways, entrances, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways, public and private streets, plazas, courtyards, transportation facilitation areas and common areas, and (y) expanding or decreasing the size of the Project and any common areas and other elements thereof, including adding, deleting and/or excluding buildings (including any of the Other Existing Buildings) thereon and therefrom; (2) close temporarily any of the common areas while engaged in making repairs, improvements or alterations to the Project; (3) retain and/or form a common area association or associations under covenants, conditions and restrictions to own, manage, operate, maintain, repair and/or replace all or any portion of the landscaping, driveways, walkways, public and private streets, plazas, courtyards, transportation facilitation areas and/or other common areas located outside of the Building and the Other Existing Buildings and, subject to Article 4 below, include the common area assessments, fees and taxes charged by the association(s) and the cost of maintaining, managing, administering and operating the association(s), in Operating Expenses or Tax Expenses; and (4) perform such other acts and make such other changes with respect to the Project as Landlord may, in the exercise of good faith business judgment, deem to be appropriate. In exercising its rights under this Section 1.1.3, Landlord shall use commercially reasonable efforts to minimize any interference with Tenant's access to the Premises and the parking areas or use thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Condition of Premises</u>. Except as expressly set forth in this Lease and in the Tenant Work Letter, Landlord shall not be obligated to provide or pay for any improvement, remodeling or refurbishment work or services related to the improvement, remodeling or refurbishment of the Premises. Tenant also acknowledges that Landlord has made no representation or warranty regarding the condition of the Premises, the Building or the Project except as specifically set forth in this Lease and the Tenant Work Letter. Notwithstanding anything herein to the contrary, Landlord shall deliver the Premises to Tenant with the Building systems and utilities serving the Premises in good working order as of the Lease Commencement Date and upgraded if necessary to facilitate Tenant's intended use of the Premises as a molecular biology lab, consistent with the requirements of the Tenant Work Letter, and shall repair, at Landlord's sole cost and expense (and not as an Operating Expense) any deficiency existing as of the Lease Commencement Date with respect thereto of which Tenant provides written notice to Landlord within sixty (60) days after the Lease Commencement Date (provided that such sixty (60) day time period shall not reduce or limit the one year warranty provided in the Tenant Work Letter). If the Premises are not in the required condition as of the Lease Commencement Date, Landlord shall, except as otherwise provided in this Lease, promptly after receipt of written notice from Tenant setting forth with specificity the nature and extent of such non-compliance, commence to rectify same at Landlord's expense. If Tenant does not give Landlord written notice of a non-compliance with this condition within sixty (60) days after the Lease Commencement Date, correction of that non-compliance shall be the obligation of the party responsible under this Lease (except for the one year warranty provided in the Tenant Work Letter). The foregoing shall not be deemed to require Landlord to replace any of the systems, as opposed to repair any systems, except to the extent necessary for such systems to be in good working order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Rentable Square Feet</u>. The Premises and the Building are stipulated for all purposes to contain the number of rentable square feet, respectively, as set forth in the Summary, and the same will be conclusive and binding on Landlord and Tenant provided, however, that Landlord may from time to time re-measure the Premises and/or the Building and adjust Tenant's Share based on such re-measurement; provided further, however, that any such re-measurement shall not affect the amount of Base Rent payable for, or the amount of any tenant allowance applicable to, the initial Lease Term as set forth in Section 7.1 of the Summary. Tenant represents and warrants to Landlord that Tenant has had an opportunity to measure the actual dimensions of the Premises and the Building and agrees to the square footage figures set forth hereinabove for all purposes under this Lease (except in the event of a condemnation or casualty that decreases the size of the Premises and/or Building as more fully provided elsewhere in the Lease). In the event that the rentable area of the Premises, the Building and/or the Project shall hereafter change due to subsequent alterations and/or other modifications to the Premises, the Building and/or the Project, the rentable area of the Premises, the Building and/or the Project, as the case may be, shall be appropriately adjusted as of the date of such alteration and/or other modification, based upon the written verification by Landlord's space planner of such revised rentable area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Temporary Space</u>. In the event Substantial Completion of the Tenant Improvements in the Premises has not occurred by January 1, 2020, subject to extension for any Tenant Delays (as described and defined in Section 4 of the Tenant Work Letter), Landlord shall provide Tenant with the temporary use and occupancy of space (the "**Temporary Space**") within the Project that contains at least 5,000 rentable square feet

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and electrical power, water and HVAC sufficient to support Tenant's Permitted Use (as defined in Section 5.1 below), commencing on the date Landlord delivers the Temporary Space to Tenant and January 1, 2020 (subject to extension for any Tenant Delays) and continuing until the date (the "**Temporary Space Expiration Date**") that is fifteen (15) days after the date of Substantial Completion of the Tenant Improvements in the Premises (the "**Temporary Space Term**"). The terms and conditions of this Lease (including, without limitation, those concerning indemnification, insurance and maintenance and repair obligations) shall apply to Tenant's use and occupancy of the Temporary Space as if the Temporary Space were a part of the Premises for all purposes under this Lease; provided, that, notwithstanding anything to the contrary contained in the Lease, (a) except for Landlord's obligation to provide electrical power, water and HVAC pursuant to the preceding sentence, Tenant shall accept the Temporary Space in its "As-Is" condition without representation, warranty or any improvements by Landlord of any kind, (b) it shall be a condition precedent to any right of Tenant to occupy the Temporary Space that Tenant shall have first delivered to Landlord Base Rent and Estimated Expenses due upon execution of this Lease as required under Article 3 below, the Letter of Credit and evidence of Tenant's insurance coverage in accordance with Article 10 of this Lease, (c) Tenant shall not be required to pay Base Rent for the Temporary Space during the Temporary Space Term, but Tenant shall be required to pay (i) Tenant's Share of Operating Expenses allocable to the Temporary Space as reasonably determined by Landlord, plus (ii) Tenant's Share of Tax Expenses allocable to the Temporary Space as reasonably determined by Landlord, plus (iii) Tenant's Share of Utilities Costs allocable to the Temporary Space as reasonably determined by Landlord, (d) Tenant shall have no right to make any Alterations to the Temporary Space, (e) Tenant shall have no right to lease the Temporary Space beyond the date that is fifteen (15) days following the date of Substantial Completion of the Tenant Improvements in the Premises (i.e., the Temporary Space Expiration Date), and (f) if Tenant fails to vacate, surrender and deliver the Temporary Space in the manner required by this Lease by the Temporary Space Expiration Date, commencing on the date immediately succeeding the Temporary Space Expiration Date, Tenant shall pay to Landlord rent for the Temporary Space equal to the prevailing market rental value for comparable space in Comparable Buildings (as defined in Section 25.1.2 below). Tenant shall be responsible for setting up and installing all furniture, fixtures and equipment, including without limitation, Tenant's permitted voice/data infrastructure cabling, in the Temporary Space.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Replacement Premises</u>. In the event Substantial Completion of the Tenant Improvements in the Premises has not occurred by May 1, 2020, subject to extension for any Tenant Delays, Landlord shall provide Tenant with substitute premises within the Project (the "**Replacement Premises**") reasonably comparable to the Premises containing substantially the same Tenant Improvements required to be constructed by Landlord in the Premises pursuant to the Tenant Work Letter and upon delivery the Replacement Premises shall be deemed to be the Premises under this Lease.

**<u>ARTICLE 2</u>**

**<u>LEASE TERM</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Lease Term</u>. The terms and provisions of this Lease shall be effective as of the date of this Lease except for the provisions of this Lease relating to the payment of Rent. The term of this Lease (the "**Lease Term**") shall be as set forth in Section 7.1 of the Summary and shall commence on the date (the "Lease Commencement Date") set forth in Section 7.2 of the Summary (subject, however, to the terms of the Tenant Work Letter), and shall terminate on the date (the "**Lease Expiration Date**") set forth in Section 7.3 of the Summary, unless this Lease is sooner terminated as hereinafter provided. For purposes of this Lease, the term "**Lease Year**" shall mean each consecutive twelve (12) month period during the Lease Term, provided that the last Lease Year shall end on the Lease Expiration Date. Landlord may elect to deliver to Tenant an amendment to lease in the form attached hereto as **<u>Exhibit</u> <u>E</u>**, attached hereto, setting forth the Commencement Date, and Tenant shall execute and return such amendment to Landlord within five (5) business days after Tenant's receipt thereof. If Tenant fails to execute and return the amendment within such 5-day period, Tenant shall be deemed to have approved and confirmed the dates set forth therein, provided that such deemed approval shall not relieve Tenant of its obligation to execute and return the amendment (and such failure shall constitute a default by Tenant hereunder). In the event that Landlord does not deliver such amendment to Tenant, the Commencement Date shall be deemed to be the anticipated Commencement Date set forth in Section 7.2(ii) of the Summary.

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**<u>ARTICLE 3</u>**

**<u>BASE RENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Base Rent</u>. Tenant shall pay, without notice or demand, to Landlord or Landlord's agent at Landlord's address provided in Section 3 of the Summary, or at such other place as Landlord may from time to time designate in writing, in currency or a check for currency which, at the time of payment, is legal tender for private or public debts in the United States of America, or at Landlord's election, by wire or ACH transfer or as otherwise specified by Landlord, base rent ("**Base Rent**") as set forth in Section 8 of the Summary, payable in equal monthly installments as set forth in Section 8 of the Summary in advance on or before the first day of each and every month during the Lease Term, without any setoff or deduction whatsoever. Concurrently with Tenant's execution of this Lease, Tenant shall deliver to Landlord an amount equal to $36,936.72, which amount shall be comprised of the following: (i) the Base Rent payable by Tenant for the Premises for the third (3<sup>rd</sup>) full month of the Lease Term (<u>i.e.</u>, $28,304.00); and (ii) the Estimated Expenses (as defined below) payable by Tenant for the Premises for the third (3<sup>rd</sup>) full month of the Lease Term (<u>i.e.</u>, $8,632.72). If any rental payment date (including the Lease Commencement Date) falls on a day of the month other than the first day of such month or if any rental payment is for a period which is shorter than one month, then the rental for any such fractional month shall be a proportionate amount of a full calendar month's rental based on the proportion that the number of days in such fractional month bears to the number of days in the calendar month during which such fractional month occurs. All other payments or adjustments required to be made under the terms of this Lease that require proration on a time basis shall be prorated on the same basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Abatement of Base Rent and Tenant's Share of Operating Expenses</u>. Tax Expenses and Utilities Costs. Notwithstanding Section 3.1 above to the contrary, and provided that Tenant faithfully performs all of the terms and conditions of this Lease and is not in default under this Lease beyond the expiration of all applicable notice and cure periods, Landlord hereby agrees to abate Tenant's obligation to pay the monthly installments of Base Rent and Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs otherwise payable by Tenant to Landlord for the Premises (collectively, the "**Abated Rent**") during the first (1<sup>st</sup>) two (2) full calendar months of the Lease Term. During such abatement period, Tenant shall remain responsible for the payment of all of its other monetary obligations under this Lease. In the event of a default by Tenant under the terms of this Lease beyond the expiration of any applicable notice and cure periods that results in the early termination of this Lease during the Lease Term pursuant to the provisions of Article 19 below, then as a part of the recovery set forth in Article 19 below, Landlord shall be entitled to recover the Abated Rent.

**<u>ARTICLE 4</u>**

**<u>ADDITIONAL RENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Additional Rent</u>. In addition to paying the Base Rent specified in Article 3 above, Tenant shall pay as additional rent the sum of the following: (i) Tenant's Share (as such term is defined below) of the annual Operating Expenses allocated to the Building (pursuant to Section 4.3.4 below); plus (ii) Tenant's Share of the annual Tax Expenses allocated to the Building (pursuant to Section 4.3.4 below); plus (iii) Tenant's Share of the annual Utilities Costs allocated to the Building (pursuant to Section 4.3.4 below). Such additional rent, together with any and all other amounts payable by Tenant to Landlord pursuant to the terms of this Lease (including, without limitation, pursuant to Article 6), shall be hereinafter collectively referred to as the "**Additional Rent**." The Base Rent and Additional Rent are herein collectively referred to as the "**Rent**." All amounts due under this Article 4 as Additional Rent shall be payable for the same periods and in the same manner, time and place as the Base Rent. Without limitation on other obligations of Tenant which shall survive the expiration of the Lease Term, the obligations of Tenant to pay the Additional Rent provided for in this Article 4 shall survive the expiration of the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Definitions</u>. As used in this Article 4, the following terms shall have the meanings hereinafter set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1 "**Calendar Year**" shall mean each calendar year in which any portion of the Lease Term falls, through and including the calendar year in which the Lease Term expires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2 "**Expense Year**" shall mean each Calendar Year.

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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;4.2.3 "**Operating Expenses**" shall mean all expenses, costs and amounts of every kind and nature which Landlord shall pay during any Expense Year because of or in connection with the ownership, management, maintenance, repair, replacement, restoration or operation of the Project, including, without limitation, any amounts paid for: (i) the cost of operating, maintaining, repairing, renovating and managing the utility systems, mechanical systems, sanitary and storm drainage systems, any elevator systems (if applicable) and all other Systems and Equipment (as defined in Section 4.2.4 of this Lease), and the cost of supplies and equipment and maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections, and the cost of contesting the validity or applicability of any governmental enactments which may affect Operating Expenses, and the costs incurred in connection with implementation and operation (by Landlord or any common area association(s) formed for the Project) of any transportation system management program or similar program; (iii) the cost of insurance carried by Landlord, in such amounts as Landlord may reasonably determine or as may be required by any mortgagees of any mortgage or the lessor of any ground lease affecting the Project; (iv) the cost of landscaping, relamping, supplies, tools, equipment and materials, and all fees, charges and other costs (including consulting fees, legal fees and accounting fees) incurred in connection with the management, operation, repair and maintenance of the Project and any common area amenities; (v) any equipment rental agreements or management agreements (including the cost of any management fee and the fair rental value of any office space provided thereunder); (vi) wages, salaries and other compensation and benefits of all persons engaged in the operation, management, maintenance or security of the Project, and employer's Social Security taxes, unemployment taxes or insurance, and any other taxes which may be levied on such wages, salaries, compensation and benefits; (vii) payments under any easement, license, operating agreement, declaration, restrictive covenant, underlying or ground lease (excluding rent), or instrument pertaining to the sharing of costs by the Project; (viii) the cost of janitorial service, trash removal (provided, however, Operating Expenses shall not include the cost of janitorial services and trash removal services provided to the Premises or the premises of other tenants of the Building and/or the Project or the cost of replacing light bulbs, lamps, starters and ballasts for lighting fixtures in the Premises and the premises of other tenants in the Building and/or the Project to the extent such services are directly provided and paid for by Tenant pursuant to Section 6.6 below), alarm and security service, if any, window cleaning, replacement of wall and floor coverings, ceiling tiles and fixtures in lobbies, corridors, restrooms and other common or public areas or facilities, maintenance and replacement of curbs and walkways, repair to roofs and re-roofing; (ix) amortization (including interest on the unamortized cost) of the cost of acquiring or the rental expense of personal property used in the maintenance, operation and repair of the Project; (x) the cost of any capital improvements or other costs (I) which are intended as a labor-saving device or to effect other economies in the operation or maintenance of the Project, (II) made to the Project or any portion thereof after the Lease Commencement Date that are required under any governmental law or regulation, (III) which are Conservation Costs (as defined below), (IV) which are reasonably determined by Landlord to be in the best interests of the Project which are replacements or modifications of nonstructural items located in the common areas required to keep the common areas in good order or condition, or (V) which are repairs, replacements or modifications to the Systems and Equipment; provided, however, that if any such cost described in (I), (II), (III), (IV) or (V) above, is a capital expenditure, such cost shall be amortized (including interest on the unamortized cost) as Landlord shall reasonably determine; (xi) the cost of parking area repair, restoration and maintenance; and (xii) the costs and expenses of complying with, or participating in, conservation, recycling, sustainability, energy efficiency, waste reduction or other programs or practices implemented or enacted from time to time at the Building and/or Project, including, without limitation, in connection with any LEED (Leadership in Energy and Environmental Design) rating or compliance system or program, including that currently coordinated through the U.S. Green Building Council or Energy Star rating and/or compliance system or program (collectively, "**Conservation Costs**"). If Landlord is not furnishing any particular work or service (the cost of which, if performed by Landlord, would be included in Operating Expenses) to a tenant who has undertaken to perform such work or service in lieu of the performance thereof by Landlord, Operating Expenses shall be deemed to be increased by an amount equal to the additional Operating Expenses which would reasonably have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant. If any of (x) the Building, (y) the Other Existing Buildings (but only during the period of time the same are included by Landlord within the Project) and (z) any additional buildings are added to the Project pursuant to Section 1.1.3 above (but only during the period of time after such additional buildings have been fully constructed and ready for occupancy and are included by Landlord within the Project) are less than ninety-five percent (95%) occupied during all or a portion of any Expense Year, Landlord shall make an appropriate adjustment to the variable components of Operating Expenses for such year or applicable portion thereof, employing sound accounting and management principles, to determine the amount of Operating Expenses that would have been paid had the Building, such Other Existing Buildings and such additional buildings (if any) been ninety-five percent (95%) occupied; and the amount so determined shall be deemed to have been the amount of Operating Expenses for such year, or applicable portion thereof.

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Subject to the provisions of Section 4.3.4 below, Landlord shall have the right, from time to time, to equitably allocate some or all of the Operating Expenses (and/or Tax Expenses and Utilities Costs) between the Building and the Other Existing Buildings and/or among different tenants of the Project and/or among different buildings of the Project as and when such different buildings are constructed and added to (and/or excluded from) the Project or otherwise (the "**Cost Pools**"). Such Cost Pools may include, without limitation, the office space tenants and the tech/R&D/laboratory space tenants of the Project or of a building or buildings within the Project. Such Cost Pools may also include an allocation of certain Operating Expenses (and/or Tax Expenses and Utilities Costs) within or under covenants, conditions and restrictions affecting the Project. In addition, Landlord shall have the right from time to time, in its reasonable discretion, to include or exclude existing or future buildings in the Project for purposes of determining Operating Expenses, Tax Expenses and Utilities Costs and/or the provision of various services and amenities thereto, including allocation of Operating Expenses, Tax Expenses and Utilities Costs in any such Cost Pools. Notwithstanding the foregoing, certain Operating Expenses, Tax Expenses and Utilities Costs shall be allocated under this Lease as follows: (1) Tax Expenses are limited to Tenant's proportionate share (calculated by dividing the number of rentable square feet of the Premises by the total rentable square feet of the buildings located on the tax parcel) of the Tax Expenses assessed against the tax parcel on which the Building is located (two identical buildings are located on such tax parcel and Tax Expenses shall be allocated between such buildings in proportion to the square footage of the buildings); (2) insurance costs are limited to those applicable only to the Building; (3) management fees are determined based on the gross revenue for the Building; (4) repair and maintenance costs are limited to those applicable only to the Building, however, certain recurring costs for the repair and maintenance of the parking areas and other common areas of the Project are allocated to all of the tenants of the Project based on tenants proportionate share (calculated by dividing the number of rentable square feet of the Premises by the total rentable square feet in the Project) of such costs (certain non-recurring costs will only be allocated to the impacted buildings benefitting from such repair and maintenance); (5) recurring costs relating to the roads and landscaping of the Project will be allocated to all of the tenants of the Project based on such tenants proportionate share of (he Project, however, certain non-recurring costs will only be allocated to the impacted buildings benefitting from such roads and landscaping and there will be a separate Cost Pool for the grounds of the waterfront Buildings at the Project (i.e., the shipway buildings and two office buildings); and (6) wages, salaries and other administrative costs will be allocated to all of the tenants of the Project based on such tenants proportionate share of the Project.

Notwithstanding the foregoing, Operating Expenses shall not, however, include: (A) costs of leasing commissions, attorneys' fees and other costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants or other occupants of the Project; (B) costs (including permit, license and inspection costs) incurred in renovating or otherwise improving, decorating or redecorating rentable space for other tenants or vacant rentable space; (C) costs incurred due to the violation by Landlord of the terms and conditions of any lease of space in the Project; (D) costs of overhead or profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for services in or in connection with the Project to the extent the same exceeds the costs of overhead and profit increment included in the costs of such services which could be obtained from third parties on a competitive basis; (E) except as otherwise specifically provided in this Section 4.2.3, costs of interest on debt or amortization on any mortgages, and rent payable under any ground lease of the Project; (F) Utilities Costs; (G) Tax Expenses; (H) costs for repairs or other work incurred by reason of fire or other casualty, or by the exercise of the right of eminent domain, to the extent Landlord is reimbursed through insurance proceeds or condemnation awards; (I) all items and services for which Tenant or any other tenant in the Project reimburses Landlord or which Landlord provides selectively to one or more tenants (other than Tenant) without reimbursement; (J) except as permitted under subsection (x)(II) above with respect to governmental laws or regulations enacted or newly enforced after the date of this Lease, any capital expenditures relating to the structural portions of the roof (but not the roof membrane), foundation, structural components of the floor slab (not caused by Tenant's excessive load beyond slab rating), structural columns, and exterior walls of the Building; (K) advertising and promotional expenses of Landlord; (L) reserves for future expenses; (M) costs arising from latent defects in the Building or improvements installed by Landlord or the repair thereof; (N) costs incurred to comply with laws relating to the removal of Hazardous Material which was in existence in the Building or on the Project prior to the Lease Commencement Date, and was of such a nature that a federal, state or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions that it then existed in the Building or on the Project, would have then required the removal of such Hazardous Material or other remedial or containment action with respect thereto; and costs incurred

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to remove, remedy, contain, or treat Hazardous Materials, which Hazardous Material is brought into the Building or onto the Project after the date hereof by Landlord and is of such a nature, at that time, that a federal, state or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions, that it then exists in the Building or on the Project, would have then required the removal of such hazardous material or other remedial or containment action with respect thereto; (O) any capital expenditures, except as specifically provided in subsections (ix), (x) and (xi) above; (P) costs incurred in connection with upgrading the Project or common areas to comply with applicable laws in effect and being enforced prior to the date of this Lease, except to the extent such obligations are triggered by Tenant's specific use of the Premises or Alterations or improvements in the Premises performed or requested by Tenant (excluding the Tenant Improvements being constructed by Landlord pursuant to the Tenant Work Letter; provided, however, that a change in the procedures for enforcing an existing law will be the equivalent of a new law; (Q) costs associated with the operation of the business of the partnership or entity which constitutes the Landlord, as the same are distinguished from the costs of operation of the Project (which shall specifically include, but not be limited to, accounting costs associated with the operation of the Project); (R) the wages and benefits of any employee who does not devote substantially all of his or her employed time to the Project unless such wages and benefits are prorated to reflect time spent on operating and managing the Project vis-a-vis time spent on matters unrelated to operating and managing the Project; provided, that in no event shall Operating Expenses for purpose this Lease include wages and/or benefits attributable to personnel above the level of asset manager who performs on-site management of the Project; (S) costs arising from Landlord's charitable or political contributions; (T) costs for acquisition and installation of sculpture, paintings of other objects of art (excluding any maintenance costs); and (U) management fees in excess of four percent (4%) of the gross revenues of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.4 "**Systems and Equipment**" shall mean any plant, machinery, transformers, duct work, cable, wires, and other equipment, facilities, and systems designed to supply heat, ventilation, air conditioning and humidity or any other services or utilities, or comprising or serving as any component or portion of the electrical, gas, steam, plumbing, sprinkler, communications, alarm, security, or fire/life safety systems or equipment, or any other mechanical, electrical, electronic, computer or other systems or equipment which serve the Building and/or any other building in the Project in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.5 "**Tax Expenses**" shall mean all federal, state, county, or local governmental or municipal taxes, fees, assessments, charges or other impositions of every kind and nature, whether general, special, ordinary or extraordinary, (including, without limitation, real estate taxes, general and special assessments, transit assessments, fees and taxes, child care subsidies, fees and/or assessments, job training subsidies, fees and/or assessments, open space fees and/or assessments, housing subsidies and/or housing fund fees or assessments, public art fees and/or assessments, leasehold taxes or taxes based upon the receipt of rent, including gross receipts or sales taxes applicable to the receipt of rent, personal property taxes imposed upon the fixtures, machinery, equipment, apparatus, systems and equipment, appurtenances, furniture and other personal property used in connection with the Project), which Landlord shall pay during any Expense Year because of or in connection with the ownership, leasing and operation of the Project or Landlord's interest therein. For purposes of this Lease, Tax Expenses shall be calculated as if (i) the tenant improvements in the Building, the Other Existing Buildings and any additional buildings added to the Project pursuant to Section 1.1.3 above (but only during the period of time that such Other Existing Buildings and additional buildings are included by Landlord within the Project) were fully constructed, and (ii) the Project, the Building, such Other Existing Buildings and such additional buildings (if any) and all tenant improvements therein were fully assessed for real estate tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.5.1 Tax Expenses shall include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any tax on Landlord's rent, right to rent or other income from the Project or as against Landlord's business of leasing any of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any assessment, tax, fee, levy or charge in addition to, or in substitution, partially or totally, of any assessment, tax, fee, levy or charge previously included within the definition of real property tax, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in the June 1978 election ("**Proposition 13**") and that assessments, taxes, fees, levies and charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, refuse removal and for other governmental services formerly provided without charge to property owners or occupants. It is the intention of Tenant and Landlord that all such new and increased assessments, taxes, fees, levies, and charges and all similar assessments, taxes, fees, levies and charges be included within the definition of Tax Expenses for purposes of this Lease;

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any assessment, tax, fee, levy, or charge allocable to or measured by the area of the Premises or the rent payable hereunder, including, without limitation, any gross income tax upon or with respect to the possession, leasing, operating, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, or any portion thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any assessment, tax, fee, levy or charge, upon this transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the Premises; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any reasonable expenses incurred by Landlord in attempting to protest, reduce or minimize Tax Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.5.2 Notwithstanding anything to the contrary contained in this Section 4.2.5, there shall be excluded from Tax Expenses (i) all excess profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance and succession taxes, estate taxes, federal and state net income taxes, and other taxes to the extent applicable to Landlord's net income (as opposed to rents, receipts or income attributable to operations at the Project), (ii) any items included as Operating Expenses, and (iii) any items paid by Tenant under Section 4.4 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.6 "**Tenant's Share**" shall mean the percentage set forth in Section 9 of the Summary. Tenant's Share was calculated by dividing the number of rentable square feet of the Premises by the total rentable square feet in the Building (as set forth in Section 9 of the Summary), and stating such amount as a percentage. Landlord shall have the right from time to time to redetermine the rentable square feet of the Premises and/or Building, and Tenant's Share shall be appropriately adjusted to reflect any such redetermination. If Tenant's Share is adjusted pursuant to the foregoing, as to the Expense Year in which such adjustment occurs, Tenant's Share for such year shall be determined on the basis of the number of days during such Expense Year that each such Tenant's Share was in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.7 "**Utilities Costs**" shall mean all actual charges for utilities for the Building and the Project (including utilities for the Other Existing Buildings and additional buildings, if any, added to the Project during the period of time the same are included by Landlord within the Project) which Landlord shall pay during any Expense Year, including, but not limited to, the costs of water, sewer, gas and electricity, and the costs of HVAC and other utilities (but excluding those charges for which tenants directly reimburse Landlord or otherwise pay directly to the utility company) as well as related fees, assessments, measurement meters and devices and surcharges. Utilities Costs shall be calculated assuming the Building (and, during the period of time when such buildings are included by Landlord within the Project, the Other Existing Buildings and any additional buildings, if any, added to the Project) are at least ninety-five percent (95%) occupied. If, during all or any part of any Expense Year, Landlord shall not provide any utilities (the cost of which, if provided by Landlord, would be included in Utilities Costs) to a tenant (including Tenant) who has undertaken to provide the same instead of Landlord, Utilities Costs shall be deemed to be increased by an amount equal to the additional Utilities Costs which would reasonably have been incurred during such period by Landlord if Landlord had at its own expense provided such utilities to such tenant. Utilities Costs shall include any costs of utilities which are allocated to the Project under any declaration, restrictive covenant, or other instrument pertaining to the sharing of costs by the Project or any portion thereof, including any covenants, conditions or restrictions now or hereafter recorded against or affecting the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Calculation and Payment of Additional Rent</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;4.3.1 <u>Payment of Operating Expenses, Tax Expenses and Utilities Costs</u>. For each Expense Year ending or commencing within the Lease Term, Tenant shall pay to Landlord, as Additional Rent, the following, which payment shall be made in the manner set forth in Section 4.3.2 below: (i) Tenant's Share of Operating Expenses allocated to the Building pursuant to Section 4.3.4 below; plus (ii) Tenant's Share of Tax Expenses allocated to the Building pursuant to Section 4.3.4 below; plus (iii) Tenant's Share of Utilities Costs allocated to the Building pursuant to Section 4.3.4 below.

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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;4.3.2 <u>Statement of Actual Operating Expenses, Tax Expenses and Utilities Costs and Payment by Tenant</u>. Landlord shall endeavor to give to Tenant on or before the first (1<sup>st</sup>) day of June following the end of each Expense Year, a statement (the "**Statement**") which shall state the Operating Expenses, Tax Expenses and Utilities Costs incurred or accrued for such preceding Expense Year that are allocated to the Building pursuant to Section 4.3.4 below, and which shall indicate therein Tenant's Share thereof. Within thirty (30) days after Tenant's receipt of the Statement for each Expense Year ending during the Lease Term, Tenant shall pay to Landlord the full amount of the Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs for such Expense Year, less the amounts, if any, paid during such Expense Year as the Estimated Expenses as defined in and pursuant to Section 4.3.3 below. If any Statement reflects that Tenant has overpaid Tenant's Share of Operating Expenses and/or Tenant's Share of Tax Expenses and/or Tenant's Share of Utilities Costs for such Expense Year, then Landlord shall, at Landlord's option, either (i) remit such overpayment to Tenant within thirty (30) days after such applicable Statement is delivered to Tenant, or (ii) credit such overpayment toward the additional Rent next due and payable to Tenant under this Lease. The failure of Landlord to timely furnish the Statement for any Expense Year shall not prejudice Landlord from enforcing its rights under this Article 4. Even though the Lease Term has expired and Tenant has vacated the Premises, if the Statement for the Expense Year in which this Lease terminates reflects that Tenant has overpaid and/or underpaid Tenant's Share of the Operating Expenses and/or Tenant's Share of Tax Expenses and/or Tenant's Share of Utilities Costs for such Expense Year, then within thirty (30) days after Landlord's delivery of such Statement to Tenant, Landlord shall refund to Tenant any such overpayment, or Tenant shall pay to Landlord any such underpayment, as the case may be. The provisions of this Section 4.3.2 shall survive the expiration or earlier termination of the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3 <u>Statement of Estimated Operating Expenses, Tax Expenses and Utilities Costs</u>. Landlord shall endeavor to give Tenant a yearly expense estimate statement (the "**Estimate Statement**") which shall set forth Landlord's reasonable estimate (the "**Estimate**") of the total amount of Tenant's Share of the Operating Expenses, Tax Expenses and Utilities Costs allocated to the Building pursuant to Section 4.3.4 below for the then-current Expense Year shall be, and which shall indicate therein Tenant's Share thereof (the "**Estimated Expenses**"). The failure of Landlord to timely furnish the Estimate Statement for any Expense Year shall not preclude Landlord from enforcing its rights to collect any Estimated Expenses under this Article 4. Following Landlord's delivery of the Estimate Statement for the then-current Expense Year, Tenant shall pay, with its next installment of Base Rent due, a fraction of the Estimated Expenses for the then-current Expense Year (reduced by any amounts paid pursuant to the last sentence of this Section 4.3.3). Such fraction shall have as its numerator the number of months which have elapsed in such current Expense Year to the month of such payment, both months inclusive, and shall have twelve (12) as its denominator. Until a new Estimate Statement is furnished, Tenant shall pay monthly, with the monthly Base Rent installments, an amount equal to one-twelfth (1/12) of the total Estimated Expenses set forth in the previous Estimate Statement delivered by Landlord to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.4 <u>Allocation of Operating Expenses, Tax Expenses and Utilities Costs to Building</u>. The parties acknowledge that the Building is part of a multi-building commercial project consisting of the Building, and the Other Existing Buildings and such other buildings as Landlord (and/or any other owners of Marina Village) may elect to construct and include as part of the Project from time to time (the Other Existing Buildings and any such other buildings are sometimes referred to herein, collectively, as the "**Other Buildings**"), and that certain of the costs and expenses incurred in connection with the Project (<u>i.e.</u>, the Operating Expenses, Tax Expenses and Utilities Costs) shall be shared among the Building and/or such Other Buildings, while certain other costs and expenses which are solely attributable to the Building and such Other Buildings, as applicable, shall be allocated directly to the Building and the Other Buildings, respectively. Accordingly, as set forth in Sections 4.1 and 4.2 above, Operating Expenses, Tax Expenses and Utilities Costs are determined annually for the Project as a whole, and a portion of the Operating Expenses, Tax Expenses and Utilities Costs, which portion shall be determined by Landlord on an equitable basis, shall be allocated to the Building (as opposed to the tenants of the Other Buildings), and such portion so allocated shall be the amount of Operating Expenses, Tax Expenses and Utilities Costs payable with respect to the Building upon which Tenant's Share shall be calculated. Such portion of the Operating Expenses, Tax Expenses and Utilities Costs allocated to the Building shall include all Operating Expenses, Tax Expenses and Utilities Costs which are attributable solely to the Building, and an equitable portion of the Operating Expenses, Tax Expenses and Utilities Costs attributable to the Project as a whole. As an example of such allocation with respect to Tax Expenses and Utilities Costs, it is anticipated that Landlord (and/or any other owners of Marina Village) may receive separate tax bills which separately assess the improvements component of Tax Expenses for each building in the Project and/or Landlord may receive separate utilities bills from the utilities companies identifying the Utilities Costs for certain of

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the utilities costs directly incurred by each such building (as measured by separate meters installed for each such building), and such separately assessed Tax Expenses and separately metered Utilities Costs shall be calculated for and allocated separately to each such applicable building. In addition, if Landlord (and/or any other owners of Marina Village) elect to subdivide certain common area portions of the Project such as landscaping, public and private streets, driveways, walkways, courtyards, plazas, transportation facilitation areas and/or accessways into a separate parcel or parcels of land (and/or separately convey all or any of such parcels to a common area association to own, operate and/or maintain same), the Operating Expenses, Tax Expenses and Utilities Costs for such common area parcels of land may be aggregated and then reasonably allocated by Landlord to the Building and such Other Buildings on an equitable basis as Landlord (and/or any applicable covenants, conditions and restrictions for any such common area association) shall provide from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.5 <u>Landlord's Books and Records</u>. Within forty-five (45) days after receipt of a Statement by Tenant, if Tenant disputes the amount of Operating Expenses, Tax Expenses and Utilities Costs set forth in the Statement, an independent certified public accountant (which accountant is a member of a nationally or regionally recognized public accounting firm and which accountant shall not be compensated on a contingency fee or similar basis related to the result of such audit), selected by Tenant, may, after reasonable notice to Landlord and subject to Landlord's approval of such accountant (not to be unreasonably withheld, conditioned, or delayed) and at reasonable times subject to Landlord's reasonable scheduling requirements, inspect Landlord's records at Landlord's offices, provided that Tenant is not then in default under this Lease and Tenant has paid all amounts required to be paid under the applicable Statement; and further provided that such inspection must be completed within ten (10) business days after Landlord's records are made available to Tenant. Tenant agrees that any records of Landlord reviewed under this Section 4.3.5 shall constitute confidential information of Landlord, which Tenant shall not disclose, nor permit to be disclosed by Tenant or Tenant's accountant, and as a condition precedent to Tenant's exercise of its right to audit, Tenant must deliver to Landlord a signed confidentiality covenant from the auditor in the form and substance reasonably satisfactory to Landlord. If, within ten (10) days after such inspection, Tenant notifies Landlord in writing that Tenant still disputes such Operating Expenses, Tax Expenses and/or Utilities Costs included in the Statement, then a certification as to the proper amount shall be made, at Tenant's expense, by an independent certified public accountant selected by Landlord, which certification shall be final and conclusive. Tenant's failure (i) to take exception to any Statement within forty-five (45) days after Tenant's receipt of such Statement or (ii) to timely complete its inspection of Landlord's records or (iii) to timely notify Landlord of any remaining dispute after such inspection, shall be deemed to be Tenant's approval of such Statement and Tenant, thereafter, waives the right or ability to dispute the amounts set forth in such Statement, which Statement shall be considered final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Taxes and Other Charges for Which Tenant Is Directly Responsible</u>. Tenant shall reimburse Landlord upon demand for all taxes or assessments required to be paid by Landlord (except to the extent included in Tax Expenses by Landlord), excluding state, local and federal personal or corporate income taxes measured by the net income of Landlord from all sources and estate and inheritance taxes, whether or not now customary or within the contemplation of the parties hereto, when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1 said taxes are measured by or reasonably attributable to the cost or value of Tenant's equipment, furniture, fixtures and other personal property located in the Premises, or by the cost or value of any leasehold improvements made in or to the Premises by or for Tenant, to the extent the cost or value of such leasehold improvements exceeds the cost or value of a building standard build-out as determined by Landlord regardless of whether title to such improvements shall be vested in Tenant or Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2 said taxes are assessed upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion of the Project; 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;4.4.3 said taxes are assessed upon this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Late Charges</u>. If any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord's designee by the due date therefor, then Tenant shall pay to Landlord a late charge equal to five percent (5%) of the amount due plus any attorneys' fees incurred by Landlord by reason of Tenant's failure to pay Rent and/or other charges when due hereunder. The late charge shall be deemed Additional Rent and the right to

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require it shall be in addition to all of Landlord's other rights and remedies hereunder, at law and/or in equity and shall not be construed as liquidated damages or as limiting Landlord's remedies in any manner In addition to the late charge described above, any Rent or other amounts owing hereunder which are not paid by the date that they are due shall thereafter bear interest until paid at a rate (the "**Interest Rate**") equal to the lesser of (i) the "Prime Rate" or "Reference Rate" announced from time to time by the Bank of America (or such reasonable comparable national banking institution as selected by Landlord in the event Bank of America ceases to exist or publish a Prime Rate or Reference Rate), plus four percent (4%), or (ii) the highest rate permitted by applicable law.

**<u>ARTICLE 5</u>**

**<u>USE OF PREMISES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Use</u>. Tenant shall use the Premises solely for general office and/or research and development uses consistent with the character of the Building as a first-class research and development building, including, without limitation, molecular biology laboratory uses and research, development and pilot-scale manufacturing of biologics intended for commercialization (the "**Permitted Use**"), and Tenant shall not use or permit the Premises to be used for any other purpose or purposes whatsoever. Tenant shall not use, or suffer or permit any person or persons to use, the Premises or any part thereof for any use or purpose contrary to the provisions of **<u>Exhibit</u> <u>C</u>**, attached hereto, or in violation of the laws of the United States of America, the state in which the Project is located, or the ordinances, regulations or requirements of the local municipal or county governing body or other lawful authorities having jurisdiction over the Project. Tenant shall comply with the Rules and Regulations and all recorded covenants, conditions, and restrictions, and the provisions of all ground or underlying leases, now or hereafter affecting the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Hazardous Materials</u>. Landlord and Tenant agree as follows with respect to the existence or use of Hazardous Materials on the Project:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1 <u>Hazardous Materials Disclosure Certificate</u>. Upon request by Landlord from time to time, Tenant shall deliver to Landlord an executed Hazardous Materials disclosure statement, substantially in the form reasonably required by Landlord from time to time describing Tenant's then-present use of Hazardous Materials on the Premises, and shall also deliver any other reasonably necessary documents as requested by Landlord. Tenant shall concurrently file with Landlord a copy of any business response plan or inventory required to be maintained and/or filed with any federal, state or local regulatory agency under any applicable laws. Landlord and Tenant acknowledge and agree that, as of the date of this Lease, (i) Tenant has fully and accurately completed Landlord's pre-leasing environmental exposures questionnaire (the "**Environmental Questionnaire**") as set forth on **<u>Exhibit</u> <u>F</u>** attached hereto, (ii) has provided a listing of all hazardous materials (the "**Approved Hazardous Materials**") and (iii) will, no later than the Lease Commencement Date submit to Landlord a Hazardous Materials Business Plan (the "**HMBP Plan**") to be appended to, and made part of **<u>Exhibit</u> <u>F</u>**, that together with the Environmental Questionnaire, the "**Approved Hazardous Materials**"), shall constitute the "**Approved Hazardous Materials Exhibit**" (Exhibit F).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2 <u>Hazardous Materials Usage</u>. Neither Tenant, nor Tenant's employees, contractors and subcontractors of any tier, entities with a contractual relationship with Tenant (other than Landlord), or any entity acting as an agent or sub-agent of Tenant, shall be entitled to produce, use, store, generate, transport or dispose of any Hazardous Materials on, in, or about any portion of the Premises, Building or the Project, nor cause or permit any Hazardous Materials to be brought upon, placed, stored, manufactured, generated, blended, handled, recycled, used or released on, in, under or about the Premises (herein referred to as "**Hazardous Materials Usage**") which were not specifically listed on the Approved Hazardous Materials Exhibit, without, in each instance, obtaining Landlord's prior written consent thereto, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that in the event Tenant desires to use, store or dispose of Hazardous Materials which are not similar to the Hazardous Materials specifically listed on the Approved Hazardous Materials Exhibit in terms of their hazardous character, handling profile, usage and quantity in a biologics and research, development and pilot-scale manufacturing facility ("**New Hazardous Materials Usage**"), then Landlord shall have the right to impose additional terms and conditions on this Lease based upon such hazardous character, handling profile, use, storage and/or disposal of such New Hazardous Materials Usage, to the extent such additional terms and conditions are consistent with the requirements of landlords of comparable projects in the vicinity of the Project when leasing space to tenants using Hazardous Materials materially similar to the New Hazardous Materials Usage in terms of hazardous character, handling profile,

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usage and quantity. Tenant shall not be entitled nor permitted to install any tanks under, on or about the Premises, Building or Project for the storage of Hazardous Materials without the express written consent of Landlord, which may be given or withheld in Landlord's sole and absolute discretion. If any information provided to Landlord by Tenant on the Approved Hazardous Materials Exhibit, or otherwise relating to information concerning Hazardous Materials is false, incomplete, or misleading in any material respect, the same shall be deemed a default by Tenant under this Lease. Any Hazardous Materials Usage by Tenant and Tenant's agents, employees, subtenants, contractors, subcontractors and invitees ("**Tenant's Agents**") after the date of this Lease on or about the Project shall strictly comply with all applicable laws, including all Hazardous Materials Laws (as defined in Section 5.2.6, below) now or hereinafter enacted. Such foregoing obligation shall include, without limitation, maintaining, and complying with, all required necessary licenses, certifications, permits and approvals appropriate or required for any Hazardous Materials Usage by Tenant on the Premises. Landlord shall have a continuing right, without obligation, to require Tenant to obtain, and to review and inspect any and all such permits, licenses, certifications and approvals, together with copies of any and all Hazardous Materials management plans and programs, any and all Hazardous Materials risk management and pollution prevention programs, and any and all Hazardous Materials emergency response and employee training programs respecting Tenant's Hazardous Materials Usage. Upon request of Landlord, Tenant shall deliver to Landlord a narrative description explaining the nature and scope of Tenant's activities involving Hazardous Materials and demonstrating to Landlord's satisfaction Tenant's compliance with all Hazardous Materials Laws and the terms of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3 <u>Tests and Inspections</u>. Landlord shall have the right, but not the obligation, at all times during the Lease Term upon reasonable prior notice to (i) enter and inspect the Premises, (ii) conduct tests and investigations periodically and from time to time to determine whether Tenant is in compliance with the provisions of this Section 5.2 or to determine if Hazardous Materials are present in, on or about the Project, and (iii) request lists identifying by type and amount all Hazardous Materials used, stored or otherwise located on, under or about any portion of the Premises and/or the common areas. The cost of all such inspections, tests and investigations shall be borne by Tenant, if as a result thereof Landlord reasonably determines that contamination has occurred on the Premises, the Building and/or the Project and that Tenant or any of Tenant's Agents are directly or indirectly responsible in any manner for the contamination, and Tenant shall reimburse Landlord therefore upon demand. The aforementioned rights granted herein to Landlord and its representatives shall not create (a) a duty on Landlord's part to inspect, test, investigate, monitor or otherwise observe the Premises or the activities of Tenant and Tenant's Agents with respect to Hazardous Materials, including without limitation, Tenant's operation, use and any remediation related thereto, or (b) liability on the part of Landlord and its representatives for Tenant's use, storage, disposal or remediation of Hazardous Materials, it being understood that Tenant shall be solely responsible for all liability in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.4 <u>Notice; Clean-Up Obligations; Closure and Decommissioning</u>. Tenant shall give to Landlord immediate verbal and follow-up written notice of any spills, releases, discharges, disposals, emissions, migrations, removals or transportation of Hazardous Materials on, under or about any portion of the Premises (excepting those Hazardous Materials removed and disposed of by a contractor hired by Tenant for routine disposal of Hazardous Materials in compliance with all applicable laws), the common areas, or the Project; provided that Tenant has actual knowledge of such event(s). Tenant shall promptly forward to Landlord copies of all requests, orders, notices, permits, applications, and other communications and reports received by Tenant from or submitted by Tenant to any federal, state or local regulatory agency with jurisdiction over Tenant's operations of the Premises in connection with the foregoing. To the extent of any regulatory, judicial or other enforcement action or proceeding in connection with the foregoing is commenced against Tenant, Tenant shall not enter into any settlement, consent decree or other compromise or resolution without first notifying Landlord of Tenant's intention to do so and affording Landlord the opportunity to join and participate, as a party if Landlord so elects, in such proceedings and in no event shall Tenant enter into any consent decree, consent order or other agreements with terms which are binding on Landlord or the Premises without Landlord's prior written consent. Landlord shall have the right to appear at and participate in, any and all judicial or other administrative proceedings concerning any such foregoing claims.

Tenant, at its sole cost and expense, covenants and warrants to promptly investigate, clean up, remove, restore and otherwise remediate (including, without limitation, preparation of any feasibility studies or reports and the performance of any and all closures) any spill, release, discharge, disposal, emission, migration or transportation incident or other consequences of its Hazardous Materials Usage of Hazardous Materials arising from the acts or omissions of Tenant or Tenant's Agents such that the affected portions of the Project and any adjacent

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property are returned to the condition existing prior to such incident or Tenant's commencement of Hazardous Materials Usage. Tenant shall provide a written certification to Landlord indicating that Tenant has complied with all applicable reporting requirements. Any such investigation, clean up, removal, restoration and other remediation shall only be performed after Tenant has obtained Landlord's prior written consent in its sole and absolute discretion. Further, any such investigation, clean up, removal, restoration and other remediation shall be performed in compliance with applicable Laws, the HMBP Plan and in accordance with this Lease. Notwithstanding the foregoing, Tenant shall be entitled to respond immediately to an emergency without first obtaining Landlord's prior written consent.

Tenant, at its sole cost and expense, shall conduct and perform, or cause to be conducted and performed, all closures and decommissioning activity as required by any Hazardous Materials Laws or any federal, state or local regulatory agencies or other governmental authorities having jurisdiction over the Premises and Tenant's activities thereon. All such work undertaken by Tenant, as required herein, shall be performed in such a manner so as to enable Landlord to make full economic use of the Premises and the other portions of the Project after the satisfactory completion of such work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.5 <u>Indemnity</u>. Tenant shall indemnify, hold harmless, and, at Landlord's option (with such attorneys as Landlord may approve in advance and in writing), defend Landlord and Landlord's officers, directors, shareholders, partners, members, managers, employees, contractors, property managers, agents and mortgagees ("**Landlord Parties**") and other lien holders, from and against any and all Losses (as hereinafter defined) arising from or related to: (a) any violation or alleged violation by Tenant or any of Tenant's Agents of any of the Laws, including, without limitation, the Hazardous Materials Laws; (b) any breach of the provisions of this Section 5.2 or any subsection thereof by Tenant or any of Tenant's Agents; (c) any Hazardous Materials Usage on, about or from the Premises, the Project or common areas of any Hazardous Materials approved by Landlord under this Lease, or (d) Landlord's exercise of the Landlord Cure Right, as that term is defined in Section 19.2.3 below. The term "**Losses**" shall mean all claims, demands, expenses, actions, judgments, damages, penalties, fines, liabilities, losses of every kind and nature (including, without limitation, property damage, diminution in value of Landlord's interest in the Premises or the Project, damages for the loss or restriction on use of any space or amenity within the Building or the Project, damages arising from any adverse impact on marketing space in the Project, sums paid in settlement of claims and any costs and expenses associated with injury, illness or death to or of any person), suits, administrative proceedings, costs and fees, including, but not limited to, attorneys' and consultants' fees and expenses, and the costs of cleanup, remediation, removal and restoration. Notwithstanding anything to the contrary contained in this Lease, Tenant shall have no liability or responsibility for Hazardous Materials in existence or located on or within the Premises, the Building or the Project prior to Tenant's occupancy of the Premises or which result from Landlord's acts or omissions or which occur on any portion of Landlord's property not occupied by Tenant, unless caused by Tenant, its agents, employees, contractors, invitees or guests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.6 <u>Hazardous Materials</u>. As used herein, the term "**Hazardous Materials**" means any hazardous, radioactive or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California or the United States Government or under any Hazardous Material Laws. The term "Hazardous Materials," includes, without limitation, hazardous radioactive material, radioactive material, mixed waste, petroleum products, asbestos, PCB's, and any material or substance which is (i) listed under Article 9, or defined as hazardous or extremely hazardous pursuant to Article 11 of Title 22, of the California Code of Regulations, Division 4, Chapter 20, (ii) defined as a "hazardous waste" pursuant to Section 1004 of the federal Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq. (42 U.S.C. 6903), (iii) defined as a "hazardous substance" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. 9601 et seq. (42 U.S.C. 9601) or (iv) regulated as a radioactive material under Title 17, Division 1, Chapter 5, Subchapter 4 of the California Code or Regulations and Title 10, Code of Federal Regulations, part 20. As used herein, the term "**Hazardous Material Laws**" shall mean any statute, law, ordinance, or regulation of any governmental body or agency (including the U.S. Environmental Protection Agency, the California Regional Water Quality Control Board, the California Department of Public Health Radiologic Health Branch and the California Department of Toxic Substances Control) which regulates the use, storage, release or disposal of any Hazardous Material.

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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;5.2.7 <u>Survival</u>. The obligations of Tenant under this Section 5.2 shall survive the expiration or earlier termination of this Lease, and shall remain effective until all of Tenant's obligations under this Section 5.2 have been completely performed and satisfied. The rights and obligations of Landlord and Tenant with respect to issues relating to Hazardous Materials are exclusively established by this Section 5.2. In the event of any inconsistency between any other part of this Lease and Section 5.2, the terms of this Section 5.2 shall control.

**<u>ARTICLE 6</u>**

**<u>SERVICES AND UTILITIES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>In General</u>. From and after the Lease Commencement Date, and continuing throughout the remainder of the Lease Term, Tenant will be responsible, at its sole cost and expense, for 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;6.1.1 The furnishing of all services and utilities which are separately metered to the Premises, including without limitation, electricity, water, gas and sewer, the costs of which shall be paid directly by Tenant to the applicable utility provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 Landlord shall not provide janitorial services for the Premises. Tenant shall be solely responsible for performing all janitorial (including all trash and recycling services) services and other cleaning of the Premises, all in compliance with applicable Laws. The janitorial and cleaning of the Premises shall be adequate to maintain the Premises in a manner consistent with first class office and research and development projects in the vicinity of the Project.

Tenant shall cooperate fully with Landlord at all times and abide by all rules, regulations and requirements that Landlord may reasonably prescribe for the proper functioning and protection of the Building HVAC, electrical, mechanical and plumbing systems, as upgraded under the Tenant Work Letter by Landlord to support Tenant's molecular biology lab use as required under this Lease. Landlord shall have no obligation to provide any services or utilities to the Building (including, but not limited to heating, ventilation and air-conditioning, electricity, telephone, janitorial and security services), except customary maintenance, repair and engineering services by Landlord's building engineers or other employees of Landlord or its affiliates whose salaries are allocated in part to the Premises as Operating Expenses of the Building or the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Overstandard Tenant Use</u>. Tenant's use of electricity shall never exceed the capacity of the feeders to the Project or the risers or wiring installation within the Premises. If Landlord reasonably determines that Tenant is using HVAC in excess amounts as to shorten the useful life of the HVAC equipment serving the Premises, as upgraded under the Tenant Work Letter by Landlord to support Tenant's molecular biology lab use as required under this Lease, as Landlord shall reasonably determine, then Landlord may charge Tenant (which shall be treated as Additional Rent) for such excess HVAC usage the Landlord's actual out-of-pocket costs, without any profit to Landlord, but which charge may include the excess depreciation and maintenance as reasonably calculated by Landlord's engineer, and a percentage of such cost to compensate Landlord for its overhead.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Interruption of Use</u>. Tenant agrees that Landlord shall not be liable for damages, by abatement of Rent or otherwise, for failure to furnish or delay in furnishing any service (including telephone and telecommunication services), or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by breakage, repairs, replacements, or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas, water, or other fuel at the Building or Project after reasonable effort to do so, by any accident or casualty whatsoever, by act or default of Tenant or other parties, or by any other cause beyond Landlord's reasonable control; and such failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of Tenant's use and possession of the Premises or relieve Tenant from paying Rent or performing any of its obligations under this Lease. Furthermore, Landlord shall not be liable under any circumstances for a loss of, or injury to, property or for injury to, or interference with, Tenant's business, including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any of the services or utilities as set forth in this Article 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Additional Services</u>. Subject to Section 6.1.2, Landlord shall also have the exclusive right, but not the obligation, to provide any additional services which may be required by Tenant, including, without limitation, locksmithing, and additional repairs and maintenance, provided that Tenant shall pay to Landlord within ten (10) days after billing and as Additional Rent hereunder, the sum of all costs to Landlord of such additional services plus a five percent (5%) administration fee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Janitorial Service</u>. Landlord shall not be obligated to replace any light bulbs, lamps, starters and ballasts for lighting fixtures within the Premises. Tenant shall be solely responsible, at Tenant's sole cost and expense, for (i) performing all janitorial services, trash removal and other cleaning of the Premises, and (ii) replacement of all light bulbs, lamps, starters and ballasts for lighting fixtures within the Premises, all as appropriate to maintain the Premises in a first-class manner consistent with the first-class nature of the Building and Project. Such services to be provided by Tenant shall be performed by contractors and pursuant to service contracts approved by Landlord. Landlord shall have the right to inspect the Premises upon reasonable notice to Tenant and to require Tenant to provide additional cleaning, if necessary. In the event Tenant shall fail to provide any of the services described in this Section 6.5 to be performed by Tenant within five (5) days after notice from Landlord, which notice shall not be required in the event of an emergency, Landlord shall have the right to provide such services and any charge or cost incurred by Landlord in connection therewith shall be deemed Additional Rent due and payable by Tenant upon receipt by Tenant of a written statement of cost from Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Generator</u>. At no additional cost to Tenant, within a reasonable time following the Lease Commencement Date, Landlord shall install an emergency power generator at the Project and provide Tenant access to the generator sufficient to support Tenant's Permitted Use (as defined in Section 5.1 above).

**<u>ARTICLE 7</u>**

**<u>REPAIRS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Tenant's Repairs</u>. Subject to Landlord's repair obligations in Sections 6.1.2, 7.2 and 11.1 below, Tenant shall, at Tenant's own expense, keep the Premises, including all improvements, fixtures and furnishings therein, and all components of the Building Systems and Equipment exclusively serving the Premises, in good order, repair and condition at all times during the Lease Term, which repair obligations shall include, without limitation, the obligation to promptly and adequately repair all damage to the Premises and replace or repair all damaged or broken fixtures and appurtenances; provided however, that, at Landlord's option, or if Tenant fails to make such repairs, Landlord may, but need not, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be uniformly established for the Building) sufficient to reimburse Landlord for all overhead, general conditions, fees and other costs or expenses arising from Landlord's involvement with such repairs and replacements forthwith upon being billed for same. With respect to the HVAC system located within or exclusively serving the Premises, Tenant shall maintain continuously throughout the Lease Term a service contract for the maintenance of such HVAC system and all related equipment with a licensed HVAC repair and maintenance contractor reasonably approved by Landlord, which contract provides for the periodic inspection and servicing of such HVAC system and equipment in accordance with the manufacturer's recommendations, but in any event at least once every quarter during the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Landlord's Repairs</u>. Anything contained in Section 7.1 above to the contrary notwithstanding, and subject to Articles 11 and 12 below, Landlord shall repair and maintain the structural portions of the Building, including the basic plumbing, and electrical systems serving the Building and not located in the Premises; provided, however, to the extent such maintenance and repairs are caused by the act, neglect, fault of or omission of any duty by Tenant, its agents, servants, employees or invitees, Tenant shall pay to Landlord as Additional Rent, the reasonable cost of such maintenance and repairs. Landlord shall not be liable for any failure to make any such repairs, or to perform any maintenance if Tenant has not provided Landlord with written notice of the need for such repairs or maintenance. There shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant's business arising from the making of any repairs, alterations or improvements in or to any portion of the Project, Building or the Premises or in or to fixtures, appurtenances and equipment therein. Tenant hereby waives and releases its right to make repairs at Landlord's expense under Sections 1941 and 1942 of the California Civil Code; or under any similar law, statute, or ordinance now or hereafter in effect.

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**<u>ARTICLE 8</u><u> </u>**

**<u>ADDITIONS AND ALTERATIONS</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Landlord's Consent to Alterations</u>. Tenant may not make any improvements, alterations, additions or changes to the Premises (collectively, the "**Alterations**") without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than thirty (30) days prior to the commencement thereof, and which consent shall not be unreasonably withheld by Landlord; provided, however, Landlord may withhold its consent in its sole and absolute discretion with respect to any Alterations which may affect the structural components of the Building or the Systems and Equipment or which can be seen from outside the Premises. Tenant shall pay for all overhead, general conditions, fees and other costs and expenses of the Alterations, and shall pay to Landlord a Landlord supervision fee of five percent (5%) of the cost of the Alterations. The construction of the initial improvements to the Premises shall be governed by the terms of the Tenant Work Letter and not the terms of this Article 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Manner of Construction</u>. Landlord may impose, as a condition of its consent to all Alterations or repairs of the Premises, such requirements as Landlord in its reasonable discretion may deem desirable, including, but not limited to, the requirement that Tenant utilize for such purposes only contractors, materials, mechanics and materialmen approved by Landlord; provided, however, Landlord may impose such requirements as Landlord may determine, in its sole and absolute discretion, with respect to any work affecting the structural components of the Building or Systems and Equipment (including designating specific contractors to perform such work). Tenant shall construct such Alterations and perform such repairs in compliance with any and all applicable rules and regulations of any federal, state, county or municipal code or ordinance (including, without limitation, California Energy Code, Title 24) and pursuant to a valid building permit, issued by the city in which the Building is located, and in conformance with Landlord's construction rules and regulations. In the event that any proposed Alterations trigger the need for repairs, maintenance, improvements or alterations outside of the Premises for any reason, Tenant shall be solely responsible for the performance of all such work at Tenant's sole cost and expense. Landlord's approval of the plans, specifications and working drawings for Tenant's Alterations shall create no responsibility or liability on the part of Landlord for their completeness, design sufficiency, or compliance with all laws, rules and regulations of governmental agencies or authorities. All work with respect to any Alterations must be done in a good and workmanlike manner and diligently prosecuted to completion to the end that the Premises shall at all times be a complete unit except during the period of work. Tenant shall cause all Alterations to be performed in such manner as not to obstruct access by any person to the Building or Project or the common areas, and as not to obstruct the business of Landlord or other tenants of the Project, or interfere with the labor force working at the Project. If Tenant makes any Alterations, Tenant agrees to carry "Builder's All Risk" insurance in an amount approved by Landlord covering the construction of such Alterations, and such other insurance as Landlord may require, it being understood and agreed that all of such Alterations shall be insured by Tenant pursuant to Article 10 below immediately upon completion thereof. Landlord may, in its discretion, require Tenant to obtain a lien and completion bond or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free completion of such Alterations and naming Landlord as a co-obligee. Upon completion of any Alterations, Tenant shall (i) cause a Notice of Completion to be recorded in the office of the Recorder of the county in which the Project is located in accordance with Section 8182 of the Civil Code of the State of California or any successor statute, (ii) deliver to the management office of the Building a reproducible copy of the "as built" drawings of the Alterations, and (iii) deliver to Landlord evidence of payment, contractors' affidavits and full and final waivers of all liens for labor, services or materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Landlord's Property</u>. All Alterations, improvements, fixtures and/or equipment which may be installed or placed in or about the Premises shall be at the sole cost of Tenant and shall be and become the property of Landlord; provided, however, that all removable equipment or installations placed or installed in the Premises by Tenant at Tenant's expense shall remain the property of Tenant and may be removed by Tenant upon the expiration or earlier termination of this Lease. Except as set forth in the immediately preceding sentence, Landlord may require that Tenant remove any improvement (excluding the initial Tenant Improvements installed pursuant to the Tenant Work Letter) or Alteration upon the expiration or early termination of the Lease Term, and repair any damage to the Premises and Building caused by such removal; provided that notwithstanding the foregoing, upon request by Tenant at the time of Tenant's request for Landlord's consent to any Alteration or improvement, Landlord shall notify Tenant at the time of its consent whether Landlord requires that the applicable Alteration or improvement be removed pursuant to the terms of this Section upon the expiration or termination of this Lease. If Tenant fails to complete any such required removal and/or to repair by the end of the Lease Term, Landlord may do so and may charge the cost thereof to Tenant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Wi-Fi Network</u>. Without limiting the generality of the foregoing, if Tenant desires to install wireless intranet, Internet and communications network ("**Wi-Fi Network**") in the Premises for the use by Tenant and its employees, then the same shall be subject to the provisions of this Section 8.4 (in addition to the other provisions of this Article 8). Landlord hereby consents to Tenant's installation of such Wi-Fi Network and Tenant shall, in accordance with Article 15 below, remove the Wi-Fi Network from the Premises prior to the termination of the Lease. Tenant shall use the Wi-Fi Network so as not to cause any interference to other tenants in the Building or to other tenants at the Project or with any other tenant's communication equipment, and not to damage the Building or Project or interfere with the normal operation of the Building or Project, and Tenant hereby agrees to indemnify, defend and hold Landlord harmless from and against any and all claims, costs, damages, losses, expenses and liabilities, including attorneys' fees and court costs (collectively, "**Claims**") arising out of Tenant's failure to comply with the provisions of this Section 8.4, except to the extent same is caused by the gross negligence or willful misconduct of Landlord and which is not covered by the insurance carried by Tenant under this Lease (or which would not be covered by the insurance required to be carried by Tenant under this Lease). Should any interference occur, Tenant shall take all necessary steps as soon as reasonably possible and no later than three (3) calendar days following such occurrence to correct such interference. If such interference continues after such three (3) day period, Tenant shall immediately cease operating such Wi-Fi Network until such interference is corrected or remedied to Landlord's satisfaction. Tenant acknowledges that Landlord has granted and/or may grant telecommunication rights to other tenants and occupants of the Building and Project and to telecommunication service providers and in no event shall Landlord be liable to Tenant for any interference of the same with such Wi-Fi Network. Landlord makes no representation that the Wi-Fi Network will be able to receive or transmit communication signals without interference or disturbance. Tenant shall (i) be solely responsible for any damage caused as a result of the Wi-Fi Network, (ii) promptly pay any tax, license or permit fees charged pursuant to any laws or regulations in connection with the installation, maintenance or use of the Wi-Fi Network and comply with all precautions and safeguards recommended by all governmental authorities, (iii) pay for all necessary repairs, replacements to or maintenance of the Wi-Fi Network, and (iv) be responsible for any modifications, additions or repairs to the Building or Project, including without limitation, Building or Project systems or infrastructure, which are required by reason of the installation, operation or removal of Tenant's Wi-Fi Network. Should Landlord be required to retain professionals to research any interference issues that may arise and confirm Tenant's compliance with the terms of this Section 8.4, Tenant shall reimburse Landlord for the costs incurred by Landlord in connection with Landlord's retention of such professionals, the research of such interference issues and confirmation of Tenant's compliance with the terms of this Section 8.4 within twenty (20) days after the date Landlord submits to Tenant an invoice for such costs. This reimbursement obligation is in addition to, and not in lieu of, any rights or remedies Landlord may have in the event of a breach or default by Tenant under this Lease.

**<u>ARTICLE 9</u>**

**<u>COVENANT AGAINST LIENS</u>**

**<u>ARTICLE 10</u>** 

**<u>INDEMNIFICATION AND INSURANCE</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Indemnification and Waiver</u>. Tenant hereby assumes all risk of damage to property and injury to persons, in, on, or about the Premises from any cause whatsoever and agrees that Landlord, and its partners and subpartners, and their respective officers, agents, property managers, servants, employees, and independent contractors (collectively, "**Landlord Parties**") shall not be liable for, and are hereby released from any responsibility for, any damage to property or injury to persons or resulting from the loss of use thereof, which damage or injury is

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sustained by Tenant or by other persons claiming through Tenant. Tenant shall indemnify, defend, protect, and hold harmless the Landlord Parties from any and all Claims incurred in connection with or arising from any cause in, on or about the Premises (including, without limitation, Tenant's installation, placement and removal of Alterations, improvements, fixtures and/or equipment in, on or about the Premises), and any acts, omissions or negligence of Tenant or of any person claiming by, through or under Tenant, or of the contractors, agents, servants, employees, licensees or invitees of Tenant or any such person, in, on or about the Premises, the Building and Project; provided, however, that the terms of the foregoing indemnity shall not apply to the gross negligence or willful misconduct of Landlord. The provisions of this Section 10.1 shall survive the expiration or sooner termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Tenant's Compliance with Landlord's Fire and Casualty Insurance</u>. Tenant shall, at Tenant's expense, comply as to the Premises with all insurance company requirements pertaining to the use of the Premises. If Tenant's conduct or use of the Premises causes any increase in the premium for such insurance policies, then Tenant shall reimburse Landlord for any such increase. Tenant, at Tenant's expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire Underwriters) and with any similar body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Tenant's Insurance</u>. Tenant shall maintain the following coverages in the following amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1 Commercial general liability insurance with limits not less than $1,000,000 per occurrence and $2,000,000 general aggregate which insures against claims for bodily injury, personal injury, advertising injury, and property damage based upon, involving, or arising out of the use, occupancy, or maintenance of the Premises and the Project and including products and completed operations coverage. Such insurance shall include contractual liability and contain a standard separation of insureds provision. Any general aggregate limit will apply on a per location basis. Such insurance will name Landlord, its trustees and beneficiaries, Landlord's mortgagee, Landlord's managing agent, Landlord's investment advisor, and their respective officers, directors, agents and employees, as additional insureds (the "**Required Additional Insureds**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.2 Physical Damage Insurance covering (i) all furniture, trade fixtures, equipment, merchandise and all other items of Tenant's property on the Premises installed by, for, or at the expense of Tenant, (ii) all tenant improvements (including the Tenant Improvements described in **<u>Exhibit</u> <u>B</u>**) now existing or hereafter located in the Premises, including any tenant improvements which Landlord permits to be installed above the ceiling of the Premises or below the floor of the Premises, and (iii) all other improvements, alterations and additions to the Premises, including any improvements, alterations or additions installed at Tenant's request above the ceiling of the Premises or below the floor of the Premises. Such insurance shall be written on a "physical loss or damage" basis under a "special form" policy, for the full replacement cost value new without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include a vandalism and malicious mischief endorsement, sprinkler leakage coverage and earthquake sprinkler leakage coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.3 Workers' compensation insurance as required by law. The employers liability insurance will afford limits not less than $1,000,000 per accident, $1,000,000 per employee for bodily injury by disease, and $1,000,000 policy limit for bodily injury by disease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.4 Loss-of-income, business interruption and extra-expense insurance in such amounts as will reimburse Tenant for direct and indirect loss of earnings attributable to all perils commonly insured against by prudent tenants or attributable to prevention of loss of access to the Premises or to the Building as a result of such perils for Tenant to sustain its business operation at this location for a period of not less than 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.5 Tenant shall carry comprehensive automobile liability insurance having a combined single limit of not less than One Million Dollars ($1,000,000.00) per occurrence and insuring Tenant against liability for claims arising out of ownership, maintenance or use of any owned, hired or non-owned automobiles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.6 Umbrella excess liability insurance, on an occurrence basis, that applies excess of required commercial general liability, and employers liability policies, which insures against bodily injury, property damage, personal injury and advertising injury claims with limits not less than $5,000,000 each occurrence and $5,000,000 aggregate. Such policy must include the Required Additional Insureds as additional insureds.

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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;10.3.7 <u>Form of Policies</u>. The minimum limits of policies of insurance required of Tenant under this Lease shall in no event limit the liability of Tenant under this Lease. Such insurance shall: (i) name the Required Additional Insureds as an additional insured; (ii) specifically cover the liability assumed by Tenant under this Lease, including, but not limited to, Tenant's obligations under Section 10.1 above; (iii) be issued by an insurance company having a rating of not less than A-X in Best's Insurance Guide or which is otherwise acceptable to Landlord and licensed to do business in the state in which the Project is located; (iv) be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord is excess and is non-contributing with any insurance requirement of Tenant; (v) provide that said insurance shall not be canceled or coverage changed unless thirty (30) days' prior written notice shall have been given to Landlord and any mortgagee or ground or underlying lessor of Landlord; (vi) contain a cross-liability endorsement or severability of interest clause acceptable to Landlord; and (vii) with respect to the insurance required in Sections 10.3.1 and 10.3.2 above, have deductible amounts not exceeding Ten Thousand Dollars ($10,000.00). Tenant shall deliver such policies or certificates thereof to Landlord on or before the Lease Commencement Date and at least thirty (30) days before the expiration dates thereof. If Tenant shall fail to procure such insurance, or to deliver such policies or certificate, within such time periods, Landlord may, at its option, in addition to all of its other rights and remedies under this Lease, and without regard to any notice and cure periods set forth in Section 19.1, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord as Additional Rent within ten (10) days after delivery of bills therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Subrogation</u>. Landlord and Tenant agree to have their respective insurance companies issuing property damage insurance waive any rights of subrogation that such companies may have against Landlord or Tenant, as the case may be. Landlord and Tenant hereby waive any right that either may have against the other on account of any loss or damage to their respective property to the extent such loss or damage is insurable under policies of insurance for fire and all risk coverage, theft, public liability, or other similar insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Additional Insurance Obligations</u>. Tenant shall carry and maintain during the entire Lease Term, at Tenant's sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 10, and such other reasonable types of insurance coverage and in such reasonable amounts covering the Premises and Tenant's operations therein, as may be reasonably requested by Landlord.

**<u>ARTICLE 11</u>**

**<u>DAMAGE AND DESTRUCTION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <u>Repair of Damage to Premises by Landlord</u>. Tenant shall promptly notify Landlord of any damage to the Premises resulting from fire or any other casualty. If the Premises or any common areas of the Building or Project serving or providing access to the Premises shall be damaged by fire or other casualty, Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord's reasonable control, and subject to all other terms of this Article 11, restore the base, shell, and core of the Premises and such common areas. Such restoration shall be to substantially the same condition of the base, shell, and core of the Premises and common areas prior to the casualty, except for modifications required by zoning and building codes and other laws or by the holder of a mortgage on the Project and/or the Building, or the lessor of a ground or underlying lease with respect to the Building, or any other modifications to the common areas deemed desirable by Landlord, provided access to the Premises and any common restrooms serving the Premises shall not be materially impaired. Upon the occurrence of any damage to the Premises, Tenant shall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant under Tenant's insurance required under Section 10.3 of this Lease, and Landlord shall repair any damage to the tenant improvements and alterations installed in the Premises and shall return such tenant improvements and alterations to their original condition; provided that if the costs of such repair of such tenant improvements and Alterations by Landlord exceeds the amount of insurance proceeds received by Landlord therefor from Tenant's insurance carrier, as assigned by Tenant, the excess costs of such repairs shall be paid by Tenant to Landlord prior to Landlord's repair of the damage. In connection with such repairs and replacements of any such tenant improvements and Alterations, Tenant shall, prior to Landlord's commencement of such improvement work, submit to Landlord, for Landlord's review and approval, all plans, specifications and working drawings relating thereto, and Landlord shall select the contractors to perform such improvement work. Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant's business resulting in any way from such damage or the repair thereof; provided however, that if such fire or other casualty shall have damaged the Premises or common areas necessary to Tenant's occupancy, and if such damage is not the result of the negligence or

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willful misconduct of Tenant or Tenant's employees, contractors, licensees, or invitees, Landlord shall allow Tenant a proportionate abatement of Base Rent and Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs to the extent Landlord is reimbursed from the proceeds of rental interruption insurance purchased by Landlord as part of Operating Expenses, during the time and to the extent the Premises are unfit for occupancy for the purposes permitted under this Lease, and not occupied by Tenant as a result thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <u>Landlord's Option to Repair</u>. Notwithstanding Section 11.1 above to the contrary, Landlord may elect not to rebuild and/or restore the Premises, the Building and/or any other portion of the Project and instead terminate this Lease by notifying Tenant in writing of such termination within sixty (60) days after the date Landlord becomes aware of such damage, such notice to include a termination date giving Tenant ninety (90) days to vacate the Premises, but Landlord may so elect only if the Building shall be damaged by fire or other casualty or cause, whether or not the Premises are affected, and one or more of the following conditions is present: (i) repairs cannot reasonably be substantially completed within one hundred twenty (120) days after the date of such damage (when such repairs are made without the payment of overtime or other premiums); (ii) the holder of any mortgage on the Project and/or the Building or ground or underlying lessor with respect to the Project and/or the Building shall require that the insurance proceeds or any portion thereof be used to retire the mortgage debt, or shall terminate the ground or underlying lease, as the case may be; or (iii) the damage is not fully covered, except for deductible amounts, by Landlord's insurance policies. In addition, if the Premises or the Building is destroyed or damaged to any substantial extent during the last year of the Lease Term, then notwithstanding anything contained in this Article 11, Landlord shall have the option to terminate this Lease by giving written notice to Tenant of the exercise of such option within thirty (30) days after such damage, in which event this Lease shall cease and terminate as of the date of such notice. Upon any such termination of this Lease pursuant to this Section 11.2, Tenant shall pay the Base Rent and Additional Rent, properly apportioned up to such date of termination, and both parties hereto shall thereafter be discharged of all further obligations under this Lease, except for those obligations which expressly survive the expiration or earlier termination of the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 <u>Tenant's Right to Terminate</u>. If the Premises are damaged by any peril and Landlord does not elect to terminate this Lease, or is not entitled to terminate this Lease pursuant to Section 11.2, above, then as soon as reasonably practicable following the date of such damage, Landlord shall provide Tenant with written notice stating the estimated time for repair or restoration following the issuance of a building permit for such work. Tenant shall have the right, upon written notice to Landlord within seven (7) days following receipt of such written notice from Landlord, to terminate this Lease in the event any of the following occurs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.1 <u>Major Damage</u>. The Premises are damaged by any peril and the time stated in Landlord's notice for the repair and restoration of the Premises exceeds two hundred seventy (270) days following the issuance of a building permit; 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;11.3.2 <u>Damage Near End of Term</u>. The Premises are damaged by any peril during the last twelve (12) months of the Lease Term and the time stated in Landlord's notice for the repair and restoration of the Premises exceeds ninety (90) days following the issuance of a building permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 <u>Waiver of Statutory Provisions</u>. The provisions of this Lease, including this Article 11, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or any other portion of the Project, and any statute or regulation of the state in which the Project is located, including, without limitation, Sections 1932(2) and 1933(4) of the California Civil Code, with respect to any rights or obligations concerning damage or destruction in the absence of an express agreement between the parties, and any other statute or regulation, now or hereafter in effect, shall have no application to this Lease or any damage or destruction to all or any part of the Premises, the Building or any other portion of the Project.

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**<u>ARTICLE 12</u>**

**<u>CONDEMNATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <u>Permanent Taking</u>. If the whole or any part of the Premises, Building or Project shall be taken by power of eminent domain or condemned by any competent authority for any public or quasi-public use or purpose, or if any adjacent property or street shall be so taken or condemned, or reconfigured or vacated by such authority in such manner as to require the use, reconstruction or remodeling of any part of the Premises, Building or Projects or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent domain or condemnation, Landlord shall have the option to terminate this Lease upon ninety (90) days' notice, provided such notice is given no later than one hundred eighty (180) days after the date of such taking, condemnation, deed or other instrument. If more than twenty-five percent (25%) of the rentable square feet of the Premises is taken, or if access to the Premises is substantially impaired, Tenant shall have the option to terminate this Lease upon ninety (90) days' notice, provided such notice is given no later than one hundred eighty (180) days after the date of such taking. Landlord shall be entitled to receive the entire award or payment in connection therewith, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of Tenant's personal property and fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease Term pursuant to the terms of this Lease, and for moving expenses, so long as such claim does not diminish the award available to Landlord, or its ground lessor or mortgagee with respect to the Project, and such claim is payable separately to Tenant. All Rent shall be apportioned as of the date of such termination, or the date of such taking, whichever shall first occur. If any part of the Premises shall be taken, and this Lease shall not be so terminated, the Base Rent and Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs shall be proportionately abated. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <u>Temporary Taking</u>. Notwithstanding anything to the contrary contained in this Article 12, in the event of a temporary taking of all or any portion of the Premises for a period of one hundred and eighty (180) days or less, then this Lease shall not terminate but the Base Rent and Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs shall be abated for the period of such taking in proportion to the ratio that the amount of rentable square feet of the Premises taken bears to the total rentable square feet of the Premises. Landlord shall be entitled to receive the entire award made in connection with any such temporary taking.

**<u>ARTICLE 13</u>**

**<u>COVENANT OF QUIET ENJOYMENT</u>**

Landlord covenants that Tenant, on paying the Rent, charges for services and other payments herein reserved and on keeping, observing and performing all the other terms, covenants, conditions, and agreements herein contained on the part of Tenant to be kept, observed and performed, shall, during the Lease Term, peaceably and quietly have, hold and enjoy the Premises subject to the terms, covenants, conditions, and agreements hereof without interference by any persons lawfully claiming by or through Landlord. The foregoing covenant is in lieu of any other covenant express or implied.

**<u>ARTICLE 14</u>**

**<u>ASSIGNMENT AND SUBLETTING</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <u>Transfers</u>. Tenant shall not, without the prior written consent of Landlord, assign, mortgage, pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise transfer, this Lease or any interest hereunder, permit any assignment or other such foregoing transfer of this Lease or any interest hereunder by operation of law, sublet the Premises or any part thereof, or permit the use of the Premises by any persons other than Tenant and its employees (all of the foregoing are hereinafter sometimes referred to collectively as "**Transfers**" and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a "**Transferee**"). If Tenant shall desire Landlord's consent to any Transfer, Tenant shall notify Landlord in writing, which notice (the "**Transfer Notice**") shall include (i) the proposed effective date of the Transfer, which shall not be less than thirty (30) days nor more than one hundred eighty (180) days after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the "**Subject Space**"), (iii) all of the terms of the proposed Transfer, the name and address of the proposed Transferee, and a copy of all existing and/or proposed documentation pertaining to the proposed Transfer, (iv) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, and (v) such other information as Landlord may reasonably require. Any Transfer made without Landlord's prior written consent shall, at Landlord's option, be null, void and of no effect, and shall, at Landlord's option, constitute a default by Tenant under this Lease. Whether or not Landlord shall grant consent, within thirty (30) days after written request by Landlord, Tenant shall pay to Landlord Two Thousand Five Hundred Dollars ($2,500.00) to reimburse Landlord for its review and processing fees, and Tenant shall also reimburse Landlord for any reasonable legal fees incurred by Landlord in connection with Tenant's proposed Transfer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 <u>Landlord's Consent</u>. Landlord shall not unreasonably withhold its consent to any proposed Transfer on the terms specified in the Transfer Notice. The parties hereby agree that it shall be reasonable under this Lease and under any applicable law for Landlord to withhold consent to any proposed Transfer where one or more of the following apply, without limitation as to other reasonable grounds for withholding consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1 The Transferee is of a character or reputation or engaged in a business which is not consistent with the quality of the Building or Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.2 The Transferee intends to use the Subject Space for purposes which are not permitted under this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.3 The Transferee is either a governmental agency or instrumentality thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.4 The Transfer will result in more than a reasonable and safe number of occupants per floor within the Subject Space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.5 The Transferee is not a party of reasonable financial worth and/or financial stability in light of the responsibilities involved under the Lease on the date consent is requested;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.6 The proposed Transfer would cause Landlord to be in violation of another lease or agreement to which Landlord is a party, or would give an occupant of the Project a right to cancel its lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.7 The terms of the proposed Transfer will allow the Transferee to exercise a right of renewal, right of expansion, right of first offer, or other similar right held by Tenant (or will allow the Transferee to occupy space leased by Tenant pursuant to any such right); 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;14.2.8 Either the proposed Transferee, or any person or entity which directly or indirectly, controls, is controlled by, or is under common control with, the proposed Transferee, (i) occupies space in the Project at the time of the request for consent, (ii) is negotiating with Landlord to lease space in the Project at such time, or (iii) has negotiated with Landlord during the twelve (12)-month period immediately preceding the Transfer Notice.

If Landlord consents to any Transfer pursuant to the terms of this Section 14.2 (and does not exercise any recapture rights Landlord may have under Section 14.4 below), Tenant may within six (6) months after Landlord's consent, enter into such Transfer of the Premises or portion thereof, upon substantially the same terms and conditions as are set forth in the Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 above, provided that if there are any changes in the terms and conditions from those specified in the Transfer Notice (i) such that Landlord would initially have been entitled to refuse its consent to such Transfer under this Section 14.2, or (ii) which would cause the proposed Transfer to be more favorable to the Transferee than the terms set forth in Tenant's original Transfer Notice, Tenant shall again submit the Transfer to Landlord for its approval and other action under this Article 14 (including Landlord's right of recapture, if any, under Section 14.4 of this Lease).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 <u>Transfer Premium</u>. If Landlord consents to a Transfer, as a condition thereto which the parties hereby agree is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any Transfer Premium received by Tenant from such Transferee. "**Transfer Premium**" shall mean all rent, additional rent or other consideration payable by such Transferee in excess of the Rent and Additional Rent payable by Tenant under this Lease on a per rentable square foot basis if less than all of the Premises is transferred, after deducting the reasonable out-of-pocket expenses incurred and paid for by Tenant for (i) any reasonable changes, alterations and improvements to the Premises in connection with the Transfer (but only to the extent approved by Landlord), (ii) any reasonable brokerage commissions in connection with the Transfer, and (iii) any legal fees in connection with the negotiation of the Transfer (collectively, the "**Subleasing Costs**"). Transfer Premium shall also include, but not be limited to, key money and bonus money paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market value for services rendered by Tenant to Transferee or for assets, fixtures, inventory, equipment, or furniture transferred by Tenant to Transferee in connection with such Transfer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4 <u>Landlord's Option as to Subject Space</u>. Intentionally deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5 <u>Effect of Transfer</u>. If Landlord consents to a Transfer: (i) the terms and conditions of this Lease shall in no way be deemed to have been waived or modified; (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee; (iii) Tenant shall deliver to Landlord, promptly after execution, an original executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord; and (iv) no Transfer relating to this Lease or agreement entered into with respect thereto, whether with or without Landlord's consent, shall relieve Tenant or any guarantor of the Lease from liability under this Lease. Landlord or its authorized representatives shall have the right at all reasonable times to audit the books, records and papers of Tenant relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant shall, within thirty (30) days after demand, pay the deficiency and Landlord's costs of such audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6 <u>Additional Transfers</u>. For purposes of this Lease, the term "Transfer" shall also include the following (each, a "**Change in Control**"): (i) if Tenant is a partnership or limited liability company, the withdrawal or change, voluntary, involuntary or by operation of law, of more than fifty percent (50%) of the partners or members, or transfer of more than fifty percent (50%) of the partnership or membership interests, within a twelve (12)-month period, or the dissolution of the partnership without immediate reconstitution thereof; and (ii) if Tenant is a closely held corporation (<u>i.e.</u>, whose stock is not publicly held and not traded through an exchange or over the counter), (A) the dissolution, merger, consolidation or other reorganization of Tenant, or (B) the sale or other transfer of more than an aggregate of fifty percent (50%) of the voting shares of Tenant (other than to immediate family members by reason of gift or death), within a twelve (12)-month period. Notwithstanding anything in this Lease to the contrary, any Change in Control shall be deemed to be approved by Landlord so long as: (1) Tenant shall remain liable for the performance of all of the obligations of Tenant hereunder, or if Tenant no longer exists because of a merger, consolidation, acquisition or reorganization, the surviving or acquiring entity in connection with such Change in Control (the "**Surviving Tenant Entity**") shall expressly assume in writing the obligations of Tenant hereunder; (2) Tenant provides at least ten (10) days' prior written notice to Landlord of such Change in Control; and (3) Tenant or the Surviving Tenant Entity satisfies the Net Worth/Credit Threshold (as defined below) as of the effective date of such Change in Control. As used herein, the term "**Tangible Net Worth/Credit Threshold**" shall mean that Tenant or the Surviving Tenant Entity has a Tangible Net Worth sufficient to meet Tenant's or the Surviving Tenant Entity's obligations as Tenant under this Lease immediately after the effective date of such Change in Control, as reasonably determined by Landlord and evidenced by financial statements audited by a certified public accounting firm reasonably acceptable to Landlord (or, if audited financial statements are not available, then evidenced by financial statements) certified as accurate by an independent certified public accountant or the chief financial officer of Tenant or the Surviving Tenant Entity. As used herein, "Tangible Net Worth" means the excess of total assets over total liabilities, in each case as determined in accordance with generally accepted accounting principles consistently applied ("**GAAP**"), excluding, however, from the determination of total assets all assets which would be classified as intangible assets under GAAP including goodwill, licenses, patents, trademarks, trade names, copyrights, and franchises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7 <u>Permitted Transfers</u>. Notwithstanding anything to the contrary contained in this Lease, an assignment or subletting of all or a portion of the Premises to (a) an affiliate of Tenant (an entity which is controlled by, controls, or is under common control with, Tenant as of the date of this Lease), or (b) an entity which acquires all or substantially all of the stock or assets of Tenant, or an entity which is the surviving entity after a merger, consolidation, reorganization or acquisition of Tenant or a controlling interest in Tenant (collectively, a "**Permitted Transferee**"), shall not be deemed a Transfer requiring Landlord's consent under this Article 14, provided that (i) Tenant notifies Landlord of any such assignment or sublease and promptly supplies Landlord with any documents or information reasonably requested by Landlord regarding such transfer or transferee as set forth above, (ii) such assignment or sublease is not a subterfuge by Tenant to avoid its obligations under this Lease, it being understood that such Transferee shall thereafter become liable under this Lease, on a joint and several basis, with Tenant, (iii) any transferee under this Section 14.7 shall be of a character and reputation consistent with the quality of the Building, and (iv) for any Permitted Transferee pursuant to subsection (b) above, the net worth of such Permitted Transferee must be sufficient to fulfill the remaining obligations pursuant to this Lease, as reasonably determined by Landlord

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based on its usual credit requirements for the Building. "**Control**," as used in this Section 14.7, shall mean the ownership, directly or indirectly, of at least fifty-one percent (51%) of the voting securities of, or possession of the right to vote, in the ordinary direction of its affairs, of at least fifty-one percent (51%) of the voting interest in, any person or entity. In addition, notwithstanding anything to the contrary contained in this Lease, no pledge of all or a portion of Tenant's assets in connection with a debt financing, or pledge, transfer or encumbrance of equity in connection with a bona fide equity financing shall require the consent of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.8 <u>Subordination of Interest in Personal Property</u>. Subject to the provisions of a commercially reasonable subordination agreement, Landlord agrees to subordinate any interest it may have in any personal property located within the Premises to the security interest of any lender of Tenant.

**<u>ARTICLE 15</u>**

**<u>SURRENDER; OWNERSHIP AND REMOVAL OF PERSONAL PROPERTY</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 <u>Surrender of Premises</u>. No act or thing done by Landlord or any agent or employee of Landlord during the Lease Term shall be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is specifically acknowledged in a writing signed by Landlord. The delivery of keys to the Premises to Landlord or any agent or employee of Landlord shall not constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys are thereafter retained by Landlord, and notwithstanding such delivery Tenant shall be entitled to the return of such keys at any reasonable time upon request until this Lease shall have been properly terminated. The voluntary or other surrender of this Lease by Tenant, whether accepted by Landlord or not, or a mutual termination hereof, shall not work a merger, and at the option of Landlord shall operate as an assignment to Landlord of all subleases or subtenancies affecting the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 <u>Removal of Tenant Property by Tenant</u>. Upon the expiration of the Lease Term, or upon any earlier termination of this Lease, Tenant shall, subject to the provisions of this Article 15, quit and surrender possession of the Premises to Landlord in as good order and condition as when Tenant took possession and as thereafter improved by Landlord and/or Tenant, reasonable wear and tear and repairs which are specifically made the responsibility of Landlord hereunder excepted. Upon such expiration or termination, Tenant shall, without expense to Landlord, remove or cause to be removed from the Premises all telephone, data, and other cabling and wiring (including any cabling and wiring associated with the Wi-Fi Network, if any) installed or caused to be installed by Tenant (including any cabling and wiring, installed above the ceiling of the Premises or below the floor of the Premises), all debris and rubbish, and such items of furniture, equipment, free-standing cabinet work, and other articles of personal property owned by Tenant or installed or placed by Tenant at its expense in the Premises, and such similar articles of any other persons claiming under Tenant, as Landlord may, in its sole discretion, require to be removed, and Tenant shall repair at its own expense all damage to the Premises and Building resulting from such removal.

**<u>ARTICLE 16</u>**

**<u>HOLDING OVER</u>**

If Tenant holds over after the expiration of the Lease Term hereof, with or without the express or implied consent of Landlord, such tenancy shall be from month-to-month only, and shall not constitute a renewal hereof or an extension for any further term, and in such case Base Rent shall be payable at a monthly rate equal to one hundred fifty percent (150%) of the Base Rent applicable during the last rental period of the Lease Term under this Lease. Such month-to-month tenancy shall be subject to every other term, covenant and agreement contained herein. Landlord hereby expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this Lease upon the expiration or other termination of this Lease. The provisions of this Article 16 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant fails to surrender the Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from and against all Claims resulting from such failure, including, without limiting the generality of the foregoing, any claims made by any succeeding tenant founded upon such failure to surrender, and provided that Landlord has given Tenant thirty (30) days prior written notice that it has entered into a lease of the Premises with a new tenant and Tenant fails to surrender possession of the Premises within such thirty (30) day period, any lost profits to Landlord resulting therefrom.

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**<u>ARTICLE 17</u>**

**<u>ESTOPPEL CERTIFICATES</u>**

Within ten (10) days following a request in writing by Landlord, Tenant shall execute and deliver to Landlord an estoppel certificate, which, as submitted by Landlord, shall be in commercially reasonable form as may be required by any prospective mortgagee or purchaser of the Project (or any portion thereof), indicating therein any exceptions thereto that may exist at that time, and shall also contain any other information reasonably requested by Landlord or Landlord's Mortgagee or Landlord's prospective mortgagees. Tenant shall execute and deliver whatever other instruments may be reasonably required for such purposes. Failure of Tenant to timely execute and deliver such estoppel certificate or other instruments shall constitute an acceptance of the Premises and an acknowledgment by Tenant that statements included in the estoppel certificate are true and correct, without exception. Failure by Tenant to so deliver such estoppel certificate shall be a material default of the provisions of this Lease. Upon request from time to time, Tenant agrees to provide to Landlord, within ten (10) days after Landlord's delivery of written request therefor, current financial statements for Tenant, dated no earlier than one (1) year prior to such written request, certified as accurate by Tenant or, if available, audited financial statements prepared by an independent certified public accountant with copies of the auditor's statement. If any Guaranty is executed in connection with this Lease, Tenant also agrees to deliver to Landlord, within ten (10) days after Landlord's delivery of written request therefor, current financial statements of the Guarantor in a form consistent with the foregoing criteria.

**<u>ARTICLE 18</u>**

**<u>SUBORDINATION</u>**

This Lease is subject and subordinate to all present and future ground leases of the Project and to the lien of any mortgages or trust deeds, now or hereafter in force against the Project, if any, and to all renewals, extensions, modifications, consolidations and replacements thereof, and to all advances made or hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages or trust deeds, or the lessors under such ground lease, require in writing that this Lease be superior thereto. Tenant covenants and agrees in the event any proceedings are brought for the foreclosure of any such mortgage, or if any ground lease is terminated, to attorn, without any deductions or set-offs whatsoever, to the purchaser upon any such foreclosure sale, or to the lessor of such ground lease, as the case may be, if so requested to do so by such purchaser or lessor, and to recognize such purchaser or lessor as the lessor under this Lease. Tenant shall, within five (5) days of request by Landlord, execute such further commercially reasonable instruments or assurances as Landlord may reasonably deem necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages, trust deeds, or ground leases. Tenant hereby irrevocably authorizes Landlord to execute and deliver in the name of Tenant any such instrument or instruments if Tenant fails to do so, provided that such authorization shall in no way relieve Tenant from the obligation of executing such instruments of subordination or superiority. Tenant waives the provisions of any current or future statute, rule or law which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease and the obligations of the Tenant hereunder in the event of any foreclosure proceeding or sale.

**<u>ARTICLE 19</u><u> </u>**

**<u>TENANT</u><u>'</u><u>S DEFAULTS: LANDLORD</u><u>'</u><u>S REMEDIES</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 <u>Events of Default by Tenant</u>. All covenants and agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at Tenant's sole cost and expense and without any reduction of Rent. The occurrence of any of the following shall constitute a default of this Lease by Tenant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.1 Any failure by Tenant to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, when due (provided that Tenant shall not be in default for any such failure to pay Rent when due for the first such late payment in any twelve (12) month period, provided that such payment is made within three (3) business days after written notice from Landlord that such payment was not paid when due); or

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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;19.1.2 Any failure by Tenant to observe or perform any other provision, covenant or condition of this Lease to be observed or performed by Tenant where such failure continues for fifteen (15) days after written notice thereof from Landlord to Tenant; provided however, that any such notice shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure Section 1161 or any similar or successor law; and provided further that if the nature of such default is such that the same cannot reasonably be cured within a fifteen (15)-day period, Tenant shall not be deemed to be in default if it diligently commences such cure within such period and thereafter diligently proceeds to rectify and cure said default as soon as possible; 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;19.1.3 Abandonment or vacation of the Premises by Tenant. Abandonment is herein defined to include, but is not limited to, any absence by Tenant from the Premises for three (3) business days or longer while in default of any provision of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2 <u>Landlord's Remedies Upon Default</u>. Upon the occurrence of any such default by Tenant, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity, the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.1 Terminate this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant 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;&nbsp;&nbsp;&nbsp;&nbsp;&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 worth at the time of award of any unpaid rent which has been earned at the time of such termination; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion thereof for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) at Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law.

The term "rent" as used in this Section 19.2 shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in Sections 19.2.1(i) and (ii), above, the "worth at the time of award" shall be computed by allowing interest at the Interest Rate set forth in Section 4.5 above. As used in Section 19.2.1(iii) above, the "worth at the time of award" shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.2 Landlord shall have the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee's breach and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations). Accordingly, if Landlord does not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all rent as it becomes due.

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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;19.2.3 Landlord may, but shall not be obligated to, make any such payment or perform or otherwise cure any such obligation, provision, covenant or condition on Tenant's part to be observed or performed (and may enter the Premises for such purposes). In the event of Tenant's failure to perform any of its obligations or covenants under this Lease, and such failure to perform poses a material risk of injury or harm to persons or damage to or loss of property, then Landlord shall have the right to cure or otherwise perform such covenant or obligation at any time after such failure to perform by Tenant, whether or not any such notice or cure period set forth in Section 19.1 above has expired. If Tenant fails to comply with the terms of Section 5.2, above, including, without limitation, failure to carry out any required closure or decommissioning, or to promptly investigate, clean up, remove, restore, provide closure or otherwise remediate the Premises as required by Hazardous Materials Laws, Landlord may, but without obligation to do so, take any and all steps necessary to rectify the same and Tenant shall promptly reimburse Landlord, upon demand, for all costs and expenses to Landlord of performing investigation, clean up, removal, restoration, closure and remediation work (the "**Landlord Cure Right**"). Any such actions undertaken by Landlord pursuant to the foregoing provisions of this Section 19.2.3 shall not be deemed a waiver of Landlord's rights and remedies as a result of Tenant's failure to perform and shall not release Tenant from any of its obligations under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.4 Landlord shall at all times have the rights and remedies (which shall be cumulative with each other and cumulative and in addition to those rights and remedies available under Sections 19.2.1 and 19.2.3, above, or any law or other provision of this Lease), without prior demand or notice except as required by applicable law, to seek any declaratory, injunctive or other equitable relief, and specifically enforce this Lease, or restrain or enjoin a violation or breach of any provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3 <u>Payment by Tenant</u>. Tenant shall pay to Landlord, within ten (10) days after delivery by Landlord to Tenant of statements therefor: (i) sums equal to expenditures reasonably made and obligations incurred by Landlord in connection with Landlord's performance or cure of any of Tenant's obligations pursuant to the provisions of Section 19.2.3 above; and (ii) sums equal to all expenditures made and obligations incurred by Landlord in collecting or attempting to collect the Rent or in enforcing or attempting to enforce any rights of Landlord under this Lease or pursuant to law, including, without limitation, all legal fees and other amounts so expended. Tenant's obligations under this Section 19.3 shall survive the expiration or sooner termination of the Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4 <u>Sublessees of Tenant</u>. Whether or not Landlord elects to terminate this Lease on account of any default by Tenant, as set forth in this Article 19, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord's sole discretion, succeed to Tenant's interest in such subleases, licenses, concessions or arrangements. If Landlord elects to succeed to Tenant's interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5 <u>Waiver of Default</u>. No waiver by Landlord of any violation or breach by Tenant of any of the terms, provisions and covenants herein contained shall be deemed or construed to constitute a waiver of any other or later violation or breach by Tenant of the same or any other of the terms, provisions, and covenants herein contained. Forbearance by Landlord in enforcement of one or more of the remedies herein provided upon a default by Tenant shall not be deemed or construed to constitute a waiver of such default. The acceptance of any Rent hereunder by Landlord following the occurrence of any default, whether or not known to Landlord, shall not be deemed a waiver of any such default, except only a default in the payment of the Rent so accepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.6 <u>Efforts to Relet</u>. For the purposes of this Article 19, Tenant's right to possession shall not be deemed to have been terminated by efforts of Landlord to relet the Premises, by its acts of maintenance or preservation with respect to the Premises, or by appointment of a receiver to protect Landlord's interests hereunder. The foregoing enumeration is not exhaustive, but merely illustrative of acts which may be performed by Landlord without terminating Tenant's right to possession.

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**<u>ARTICLE 20</u>**

**<u>LETTER OF CREDIT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1 Tenant shall deliver to Landlord, concurrently with Tenant's execution of this Lease, an unconditional, clean, irrevocable letter of credit (the "**L-C**") in the amount set forth in Section 10 of the Summary (the "**L-C Amount**"), which L-C shall be issued by Silicon Valley Bank or a solvent and nationally recognized bank (a bank which accepts deposits, maintains accounts, has a local San Francisco, California office which will negotiate a letter of credit, and whose deposits are insured by the FDIC) reasonably acceptable to Landlord (such approved, issuing bank being referred to herein as the "**Bank**"), which Bank must have a short term Fitch Rating which is not less than "F1", and a long term Fitch Rating which is not less than "A" (or in the event such Fitch Ratings are no longer available, a comparable rating from Standard and Poor's Professional Rating Service or Moody's Professional Rating Service) (collectively, the "**Bank's Credit Rating Threshold**"), and which L-C shall be in the form of **<u>Exhibit</u> <u>D</u>** attached hereto. Tenant shall pay all expenses, points and/or fees incurred by Tenant in obtaining the L-C. The L-C shall (i) be "callable" at sight, irrevocable and unconditional, (ii) be maintained in effect for the period commencing on the date of this Lease and continuing until the date (the "**L-C Expiration Date**") that is no less than one hundred twenty (120) days after the expiration of the Term and Tenant shall deliver a new L-C or certificate of renewal or extension to Landlord at least thirty (30) days prior to the expiration of the L-C then held by Landlord, without any action whatsoever on the part of Landlord, (iii) be fully assignable by Landlord, its successors and assigns, (iv) permit partial draws and multiple presentations and drawings, and (v) be otherwise subject to the Uniform Customs and Practices for Documentary Credits (1993-Rev), International Chamber of Commerce Publication #500, or the International Standby Practices-ISP 98, International Chamber of Commerce Publication #590. Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the L-C if any of the following shall have occurred or be applicable: (A) such amount is due to Landlord under the terms and conditions of this Lease, or (B) Tenant has filed a voluntary petition under the U. S. Bankruptcy Code or any state bankruptcy code (collectively, "**Bankruptcy Code**"), or (C) an involuntary petition has been filed against Tenant under the Bankruptcy Code, or (D) the Lease has been rejected, or is deemed rejected, under Section 365 of the U.S. Bankruptcy Code, following the filing of a voluntary petition by Tenant under the Bankruptcy Code, or the filing of an involuntary petition against Tenant under the Bankruptcy Code, or (E) the Bank has notified Landlord that the L-C will not be renewed or extended through the L-C Expiration Date and Tenant has not provided a replacement letter of credit, or (F) Tenant is placed into receivership or conservatorship, or becomes subject to similar proceedings under Federal or State law, or (G) Tenant executes an assignment for the benefit of creditors, or (H) if (1) any of the Bank's Fitch Ratings (or other comparable ratings to the extent the Fitch Ratings are no longer available) have been reduced below the Bank's Credit Rating Threshold, or (2) there is otherwise a material adverse change in the financial condition of the Bank, and Tenant has failed to provide Landlord with a replacement letter of credit, conforming in all respects to the requirements of this Article 20 (including, but not limited to, the requirements placed on the issuing Bank more particularly set forth in this Section 20.1 above), in the amount of the applicable L-C Amount, within ten (10) days following Landlord's written demand therefor (with no other notice or cure or grace period being applicable thereto, notwithstanding anything in this Lease to the contrary) (each of the foregoing being an "**L-C Draw Event**"). The L-C shall be honored by the Bank regardless of whether Tenant disputes Landlord's right to draw upon the L-C. In addition, in the event the Bank is placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or any successor or similar entity, then, effective as of the date such receivership or conservatorship occurs, said L-C shall be deemed to fail to meet the requirements of this Article 20, and, within ten (10) days following Landlord's notice to Tenant of such receivership or conservatorship (the "**L-C FDIC Replacement Notice**"), Tenant shall replace such L-C with a substitute letter of credit from a different issuer (which issuer shall meet or exceed the Bank's Credit Rating Threshold and shall otherwise be acceptable to Landlord in its reasonable discretion) and that complies in all respects with the requirements of this Article 20. If Tenant fails to replace such L-C with such conforming, substitute letter of credit pursuant to the terms and conditions of this Article 20, then, notwithstanding anything in this Lease to the contrary, Landlord shall have the right to declare Tenant in default of this Lease for which there shall be no notice or grace or cure periods being applicable thereto (other than the aforesaid ten (10) day period). Tenant shall be responsible for the payment of any and all costs incurred with the review of any replacement L-C (including without limitation Landlord's reasonable attorneys' fees), which replacement is required pursuant to this Section or is otherwise requested by Tenant. In the event of an assignment by Tenant of its interest in the Lease (and irrespective of whether Landlord's consent is required for such assignment), the acceptance of any replacement or substitute letter of credit by Landlord from the assignee shall be subject to Landlord's prior written approval, in Landlord's sole and reasonable discretion, and the reasonable attorney's fees incurred by Landlord in connection with such determination shall be payable by Tenant to Landlord within ten (10) days of billing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2 Tenant hereby acknowledges and agrees that Landlord is entering into this Lease in material reliance upon the ability of Landlord to draw upon the L-C upon the occurrence of any L-C Draw Event. In the event of any L-C Draw Event, Landlord may, but without obligation to do so, and without notice to Tenant (except in connection with an L-C Draw Event under Section 20.1(H) above), draw upon the L-C, in part or in whole, to cure any such L-C Draw Event and/or to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from Tenant's breach or default of the Lease or other L-C Draw Event and/or to compensate Landlord for any and all damages arising out of, or incurred in connection with, the termination of this Lease, including, without limitation, those specifically identified in Section 1951.2 of the California Civil Code. The use, application or retention of the L-C, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the L-C, and such L-C shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees and acknowledges that (i) the L-C constitutes a separate and independent contract between Landlord and the Bank, (ii) Tenant is not a third party beneficiary of such contract, (iii) Tenant has no property interest whatsoever in the L-C or the proceeds thereof, and (iv) in the event Tenant becomes a debtor under any chapter of the Bankruptcy Code, Tenant is placed into receivership or conservatorship, and/or there is an event of a receivership, conservatorship or a bankruptcy filing by, or on behalf of, Tenant, neither Tenant, any trustee, nor Tenant's bankruptcy estate shall have any right to restrict or limit Landlord's claim and/or rights to the L-C and/or the proceeds thereof by application of Section 502(b)(6) of the U. S. Bankruptcy Code or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3 The L-C Amount shall initially be equal to $675,000.00. Provided that at the time of each reduction of the L-C Amount provided for in this sentence, Tenant is not then in default under this Lease, Tenant has not previously failed to cure a default within any applicable notice and cure period provided under this Lease (in the event of any such default that is not cured within any applicable cure period provided under this Lease, the right to reduction of the L-C Amount provided in this sentence shall terminate and be of no further force or effect) and Tenant has received unrestricted venture capital funding of not less than $10,000,000.00 prior to the first day of the thirtieth (30<sup>th</sup>) full calendar month of the Lease Term and has provided Landlord with documentation reasonably evidencing such funding, then (i) upon the expiration of the thirty-sixth (36<sup>th</sup>) full calendar month of the Lease Term, the L-C Amount shall be reduced by Three Hundred Thirty Seven Thousand Five Hundred and No/100 ($337,500.00) to Three Hundred Thirty Seven Thousand Five Hundred and No/100 ($337,500.00); provided, that the reduction of the L-C Amount provided in this sentence shall at all times be a right personal to the original Tenant named in this Lease (the "**Original Tenant**") only, and shall terminate and be of no further force or effect in the event the Original Tenant is succeeded to or assigns, subleases or otherwise transfers any interest under this Lease or to the Premises. Subject to the terms and conditions set forth above, Tenant shall have the right to reduce the L-C Amount via the delivery to Landlord of either (x) an amendment to the existing L-C (in form and content reasonably acceptable to Landlord) modifying the L-C Amount to the amount then required under this Section 20.3, or (y) an entirely new L-C (in the form and content otherwise required under this Article 20) in the total L-C Amount then required under this Article 20.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4 If, as a result of any drawing by Landlord of all or any portion of the L-C, the amount of the L-C shall be less than the L-C Amount, Tenant shall, within five (5) business days thereafter, provide Landlord with additional letter(s) of credit in an amount equal to the deficiency, and any such additional letter(s) of credit shall comply with all of the provisions of this Article 20, and if Tenant fails to comply with the foregoing, the same shall be subject to the below provisions. Tenant further covenants and warrants that it will neither assign nor encumber the L-C or any part thereof and that neither Landlord nor its successors or assigns will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. Without limiting the generality of the foregoing, if the L-C expires earlier than the L-C Expiration Date, Landlord will accept a renewal thereof (such renewal letter of credit to be in effect and delivered to Landlord, as applicable, not later than thirty (30) days prior to the expiration of the L-C), which shall be irrevocable and automatically renewable as above provided through the L-C Expiration Date upon the same terms as the expiring L-C or such other terms as may be acceptable to Landlord in its sole reasonable discretion. However, if the L-C is not timely renewed, or if Tenant fails to maintain the L-C in the amount and in accordance with the terms set forth in this Article 20, Landlord shall have the right to either (x) present the L-C to the Bank in accordance with the terms of this Article 20, and the proceeds of the L-C may be applied by Landlord against any Rent payable by Tenant under this Lease that is not paid when due and/or to pay for all losses and damages that

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Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach or default by Tenant under this Lease, or (y) pursue its remedy under as provided below. In the event Landlord elects to exercise its rights under the foregoing item (x), (I) any unused proceeds shall constitute the property of Landlord (and not Tenant's property or, in the event of a receivership, conservatorship, or a bankruptcy filing by, or on behalf of, Tenant, property of such receivership, conservatorship or Tenant's bankruptcy estate) and need not be segregated from Landlord's other assets, and (II) Landlord agrees to pay to Tenant within thirty (30) days after the L-C Expiration Date the amount of any proceeds of the L-C received by Landlord and not applied against any Rent payable by Tenant under this Lease that was not paid when due or used to pay for any losses and/or damages suffered by Landlord (or reasonably estimated by Landlord that it will suffer) as a result of any breach or default by Tenant under this Lease; provided, however, that if prior to the L-C Expiration Date a voluntary petition is filed by Tenant, or an involuntary petition is filed against Tenant by any of Tenant's creditors, under the Bankruptcy Code, then Landlord shall not be obligated to make such payment in the amount of the unused L-C proceeds until either all preference issues relating to payments under this Lease have been resolved in such bankruptcy or reorganization case or such bankruptcy or reorganization case has been dismissed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.5 The L-C shall also provide that Landlord may, at any time and without notice to Tenant and without first obtaining Tenant's consent thereto, transfer (one or more times) all or any portion of its interest in and to the L-C to another party, person or entity, as a part of the assignment by Landlord of its rights and interests in and to this Lease. In the event of a transfer of Landlord's interest in under this Lease, Landlord shall transfer the L-C, in whole or in part, to the transferee and thereupon Landlord shall, without any further agreement between the parties, be released by Tenant from all liability therefor, and it is agreed that the provisions hereof shall apply to every transfer or assignment of the whole of said L-C to a new landlord. In connection with any such transfer of the L-C by Landlord, Tenant shall, at Tenant's sole cost and expense, execute and submit to the Bank such applications, documents and instruments as may be necessary to effectuate such transfer and, Tenant shall be responsible for paying the Bank's transfer and processing fees in connection therewith; provided that, Landlord shall have the right (in its sole discretion), but not the obligation, to pay such fees on behalf of Tenant, in which case Tenant shall reimburse Landlord within ten (10) days after Tenant's receipt of an invoice from Landlord therefor. In connection with any Transfer permitted under this Lease, such transferee may replace the existing L-C with a substitute L-C meeting the requirements of this Article 20.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.6 Landlord and Tenant (1) acknowledge and agree that in no event or circumstance shall the L-C or any renewal thereof or substitute therefor or any proceeds thereof be deemed to be or treated as a "security deposit" under any law applicable to security deposits in the commercial context, including, but not limited to, Section 1950.7 of the California Civil Code, as such Section now exists or as it may be hereafter amended or succeeded (the "**Security Deposit Laws**"), (2) acknowledge and agree that the L-C (including any renewal thereof or substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (3) waive any and all rights, duties and obligations that any such party may now, or in the future will, have relating to or arising from the Security Deposit Laws. Tenant hereby irrevocably waives and relinquishes the provisions of Section 1950.7 of the California Civil Code and any successor statute, and all other provisions of law, now or hereafter in effect, which (x) establish the time frame by which a landlord must refund a security deposit under a lease, and/or (y) provide that a landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by a tenant or to clean the premises, it being agreed that Landlord may, in addition, claim those sums specified in this Article 20 and/or those sums reasonably necessary to (a) compensate Landlord for any loss or damage caused by Tenant's breach of this Lease, including any damages Landlord suffers following termination of this Lease, and/or (b) compensate Landlord for any and all damages arising out of, or incurred in connection with, the termination of this Lease, including, without limitation, those specifically identified in Section 1951.2 of the California Civil Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.7 Tenant agrees not to interfere in any way with any payment to Landlord of the proceeds of the L-C, either prior to or following a "draw" by Landlord of all or any portion of the L-C, regardless of whether any dispute exists between Tenant and Landlord as to Landlord's right to draw down all or any portion of the L-C. No condition or term of this Lease shall be deemed to render the L-C conditional and thereby afford the Bank a justification for failing to honor a drawing upon such L-C in a timely manner. Tenant shall not request or instruct the Bank of any L-C to refrain from paying sight draft(s) drawn under such L-C.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.8 Tenant unconditionally and irrevocably waives (and as an independent covenant hereunder, covenants not to assert) any right to claim or obtain any of the following relief in connection with the L-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;20.8.1 A temporary restraining order, temporary injunction, permanent injunction, or other order that would prevent, restrain or restrict the presentment of sight drafts drawn under any L-C or the Bank's honoring or payment of sight draft(s); 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;20.8.2 Any attachment, garnishment, or levy in any manner upon either the proceeds of any L-C or the obligations of the Bank (either before or after the presentment to the Bank of sight drafts drawn under such L-C) based on any theory whatever.

**<u>ARTICLE 21</u>**

**<u>COMPLIANCE WITH LAW</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1 <u>In General</u>. Tenant shall not do anything or suffer anything to be done in or about the Premises which will in any way conflict with any law, statute, ordinance or other governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated. At its sole cost and expense, Tenant shall promptly comply with all such governmental measures, other than the making of structural changes or changes to the Building's life safety system (collectively the "**Excluded Changes**"); provided, however, to the extent such Excluded Changes are required due to or triggered by Tenant's improvements or alterations to and/or manner of use of the Premises, Landlord shall perform such work, at Tenant's cost (which shall be paid by Tenant to Landlord within ten (10) days after Tenant's receipt of invoice therefor from Landlord). In addition, Tenant shall fully comply with all present or future programs intended to manage parking, transportation or traffic in and around the Project, and in connection therewith, Tenant shall take responsible action for the transportation planning and management of all employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation-related committees or entities. The judgment of any court of competent jurisdiction or the admission of Tenant in any judicial action, regardless of whether Landlord is a party thereto, that Tenant has violated any of said governmental measures, shall be conclusive of that fact as between Landlord and Tenant. Notwithstanding the foregoing, Landlord shall perform the initial Tenant Improvements pursuant to **<u>Exhibit</u> <u>B</u>** to this Lease in compliance with all applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2 <u>California Accessibility Disclosure</u>. For purposes of Section 1938(a) of the California Civil Code, Landlord hereby discloses to Tenant, and Tenant hereby acknowledges, that the Premises have not undergone inspection by a Certified Access Specialist (CASp). In addition, the following notice is hereby provided pursuant to Section 1938(e) of the California Civil Code:

"A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises."

In furtherance of and in connection with such notice: (i) Tenant, having read such notice and understanding Tenant's right to request and obtain a CASp inspection and with advice of counsel, hereby elects not to obtain such CASp inspection and forever waives its rights to obtain a CASp inspection with respect to the Premises to the extent permitted by applicable laws now or hereafter in effect; and (ii) if the waiver set forth in clause (i) hereinabove is not enforceable pursuant to applicable laws now or hereafter in effect, then Landlord and Tenant hereby agree as follows (which constitute the mutual agreement of the parties as to the matters described in the last sentence of the foregoing notice): (A) Tenant shall have the one-time right to request for and obtain a CASp inspection of the Premises, which request must be made, if at all, in a written notice delivered by Tenant to Landlord on or before the date that is sixty (60) days after the Lease Commencement Date; (B) any CASp inspection timely requested by Tenant shall be conducted (1) between the hours of 9:00 a.m. and 5:00 p.m. on any business day, (2) only after ten (10) days' prior written notice

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to Landlord of the date of such CASp inspection, (3) in a professional manner by a CASp designated by Landlord and without any testing that would damage the Premises, Building or Project in any way, and (4) at Tenant's sole cost and expense, including, without limitation, Tenant's payment of the fee for such CASp inspection, the fee for any reports prepared by the CASp in connection with such CASp inspection (collectively, the "**CASp Reports**"); (C) Tenant shall deliver a copy of any CASp Reports to Landlord within three (3) business days after Tenant's receipt thereof; (D) in addition to Tenant's obligations in Article 7 above, Tenant, at its sole cost and expense, shall be responsible for making any improvements, alterations, modifications and/or repairs to or within the Premises to correct violations of construction-related accessibility standards disclosed by such CASp inspection; and (E) if such CASp inspection identifies any improvements, alterations, modifications and/or repairs necessary to correct violations of construction-related accessibility standards relating to those items of the Building and Project located outside the Premises that are Landlord's obligation to perform as set forth in Section 7.2 and/or Section 21.1 above, then Landlord shall perform such improvements, alterations, modifications and/or repairs as and to the extent required by applicable laws to correct such violations, and, in addition to Tenant's reimbursement obligations in Section 21.1 above, Tenant shall reimburse Landlord for the cost of such improvements, alterations, modifications and/or repairs within ten (10) business days after Tenant's receipt of an invoice therefor from Landlord.

**<u>ARTICLE 22</u>**

**<u>ENTRY BY LANDLORD</u>**

Landlord (or Landlord's property manager) reserves the right at all reasonable times and upon reasonable notice to Tenant to enter the Premises in compliance with Tenant's customary and reasonable security and confidentiality policies to: (i) inspect them; (ii) show the Premises to prospective purchasers, mortgagees or tenants, or to the ground lessors; (iii) to post notices of nonresponsibility; or (iv) alter, improve or repair the Premises or the Building if necessary to comply with current building codes or other applicable laws, or for structural alterations, repairs or improvements to the Building, or as Landlord may otherwise reasonably desire or deem necessary. Notwithstanding anything to the contrary contained in this Article 22, Landlord may enter the Premises at any time, without notice to Tenant, in emergency situations and/or to perform services required of Landlord pursuant to this Lease, if any. Any such entries shall be without the abatement of Rent and shall include the right to take such reasonable steps as required to accomplish the stated purposes. Tenant hereby waives any claims for damages or for any injuries or inconvenience to or interference with Tenant's business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. For each of the above purposes, Landlord shall at all times have a key with which to unlock all the doors in the Premises, excluding Tenant's vaults, safes and special security areas designated in advance by Tenant. In an emergency, Landlord shall have the right to enter without notice and use any means that Landlord may deem proper to open the doors in and to the Premises. Any entry into the Premises in the manner hereinbefore described shall not be deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an actual or constructive eviction of Tenant from any portion of the Premises.

**<u>ARTICLE 23</u>**

**<u>PARKING</u>**

Throughout the Lease Term (including any Option Term), Tenant shall have the right to use, on a "first-come, first-serve" basis, in common with other tenants of the Building and free of parking charges, the number of unreserved parking spaces set forth in Section 12 of the Summary, which unreserved parking spaces are located in the Parking Facilities servicing the Building as shall be designated by Landlord from time to time for unreserved parking for the tenants of the Building. Tenant's continued right to use the parking spaces is conditioned upon (i) Tenant abiding by (A) the Parking Rules and Regulations which are in effect on the date hereof, as set forth in the attached **<u>Exhibit</u> <u>C</u>** and all modifications and additions thereto which are prescribed from time to time for the orderly operation and use of the Parking Facilities by Landlord, and/or Landlord's Parking Operator (as defined below), (B) all rules and regulations which are prescribed from time to time by any common area association of the Project having rights over the Parking Facilities, and (C) all recorded covenants, conditions and restrictions affecting the Building and/or the Project, and (ii) upon Tenant's cooperation in seeing that Tenant's employees and visitors also comply with the Parking Rules and Regulations (and all such modifications and additions thereto, as the case may be), any such other rules and regulations and covenants, conditions and restrictions. Landlord (and/or any other owners of Marina Village) specifically reserve the right to change the size, configuration, design, layout, location and all other aspects of the

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Parking Facilities (including without limitation, implementing paid visitor parking), and Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and without any abatement of Rent under this Lease, from time to time, close-off or restrict access to any or all of the Parking Facilities. Landlord may delegate its responsibilities hereunder to a parking operator (the "**Parking Operator**") in which case the Parking Operator shall have all the rights of control attributed hereby to Landlord. Any parking tax or other charges imposed by governmental authorities in connection with the use of such parking shall be paid directly by Tenant or the parking users, or, if directly imposed against Landlord, Tenant shall reimburse Landlord for all such taxes and/or charges within ten (10) days after Landlord's demand therefor. The parking rights provided to Tenant pursuant to this Article 23 are provided solely for use by Tenant's own personnel and such rights may not be transferred, assigned, subleased or otherwise alienated by Tenant without Landlord's prior approval, except in connection with an assignment of this Lease or sublease of the Premises made in accordance with Article 14 above. All visitor parking by Tenant's visitors shall be subject to availability, as reasonably determined by Landlord (and/or the Parking Operator, as the case may be), parking in such visitor parking areas as may be designated by Landlord (and/or the Parking Operator and/or any common area association of the Project having rights over the Parking Facilities) from time to time, and payment by such visitors of the prevailing visitor parking rate (if any) charged by Landlord (and/or the Parking Operator and/or such common area association) from time to time.

**<u>ARTICLE 24</u>**

**<u>MISCELLANEOUS PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1 <u>Terms; Captions</u>. The necessary grammatical changes required to make the provisions hereof apply either to corporations or partnerships or individuals, men or women, as the case may require, shall in all cases be assumed as though in each case fully expressed. The captions of Articles and Sections are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such Articles and Sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.2 <u>Binding Effect</u>. Each of the provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Article 14 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.3 <u>No Waiver</u>. No waiver of any provision of this Lease shall be implied by any failure of a party to enforce any remedy on account of the violation of such provision, even if such violation shall continue or be repeated subsequently, any waiver by a party of any provision of this Lease may only be in writing, and no express waiver shall affect any provision other than the one specified in such waiver and that one only for the time and in the manner specifically stated. No receipt of monies by Landlord from Tenant after the termination of this Lease shall in any way alter the length of the Lease Term or of Tenant's right of possession hereunder or after the giving of any notice shall reinstate, continue or extend the Lease Term or affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the service of notice or the commencement of a suit or after final judgment for possession of the Premises, Landlord may receive and collect any Rent due, and the payment of said Rent shall not waive or affect said notice, suit or judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.4 <u>Modification of Lease</u>. If any current or prospective mortgagee or ground lessor for the Project requires modifications to this Lease, which modifications will not cause an increased cost or expense to Tenant or in any other way materially and adversely change the rights and obligations of Tenant hereunder, then and in such event, Tenant agrees that this Lease may be so modified and agrees to execute whatever documents are required therefor and deliver the same to Landlord within ten (10) days following the request therefor. If Landlord or any such current or prospective mortgagee or ground lessor require execution of a short form of Lease for recording, containing, among other customary provisions, the names of the parties, a description of the Premises and the Lease Term, Tenant shall execute such short form of Lease and to deliver the same to Landlord within ten (10) days following the request therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.5 <u>Transfer of Landlord's Interest</u>. Landlord has the right to transfer all or any portion of its interest in the Project, the Building and/or in this Lease, and upon any such transfer, Landlord shall automatically be released from all liability under this Lease and Tenant shall look solely to such transferee for the performance of Landlord's obligations hereunder after the date of transfer. The liability of any transferee of Landlord shall be limited to the interest of such transferee in the Project and such transferee shall be without personal liability under this Lease, and

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Tenant hereby expressly waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. Landlord may also assign its interest in this Lease to a mortgage lender as additional security but such assignment shall not release Landlord from its obligations hereunder and Tenant shall continue to look to Landlord for the performance of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.6 <u>Prohibition Against Recording</u>. Except as provided in Section 24.4 of this Lease, neither this Lease, nor any memorandum, affidavit or other writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant, and the recording thereof in violation of this provision shall make this Lease null and void at Landlord's election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.7 <u>Landlord's Title; Air Rights</u>. Landlord's title is and always shall be paramount to the title of Tenant. Nothing herein contained shall empower Tenant to do any act which can, shall or may encumber the title of Landlord. No rights to any view or to light or air over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.8 <u>Tenant's Signs</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;24.8.1 <u>Identification Sign</u>. Tenant shall be entitled to one (1) identification sign on or near the entry doors of the Premises (the "**Identification Sign**"). Landlord shall pay for the initial installation of the Identification Sign and Tenant shall pay for any additions, deletions or modifications to the Identification Sign; provided, however, any additions, deletions or modifications to the Identification Sign shall be subject to the prior written approval of Landlord, in Landlord's sole discretion. The Identification Sign shall be installed by a signage contractor designated by Landlord. The location, quality, design, style and size of the Identification Sign shall be consistent with the Landlord's Building standard signage program and shall be subject to Landlords prior written approval, in its reasonable discretion. Upon the expiration or earlier termination of this Lease, Tenant shall be responsible, at its sole cost and expense, for the removal of the Identification Sign and the repair of all damage to the Building caused by such removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.8.2 <u>No Other Signs</u>. Except for the Identification Sign, Tenant may not install any signs on the exterior or roof of the Building, the Other Existing Buildings or the common areas of the Building or the Project. Any signs, window coverings, or blinds (even if the same are located behind the Landlord approved window coverings for the Building), or other items visible from the exterior of the Premises or Building are subject to the prior approval of Landlord, in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.9 <u>Relationship of Parties</u>. Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant, it being expressly understood and agreed that neither the method of computation of Rent nor any act of the parties hereto shall be deemed to create any relationship between Landlord and Tenant other than the relationship of landlord and tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.10 <u>Application of Payments</u>. Landlord shall have the right to apply payments received from Tenant pursuant to this Lease, regardless of Tenant's designation of such payments, to satisfy any obligations of Tenant hereunder, in such order and amounts as Landlord, in its sole discretion, may elect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.11 <u>Time of Essence</u>. Time is of the essence of this Lease and each of its provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.12 <u>Partial Invalidity</u>. If any term, provision or condition contained in this Lease shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.13 <u>No Warranty</u>. In executing and delivering this Lease, Tenant has not relied on any representation, including, but not limited to, any representation whatsoever as to the amount of any item comprising Additional Rent or the amount of the Additional Rent in the aggregate or that Landlord is furnishing the same services to other tenants, at all, on the same level or on the same basis, or any warranty or any statement of Landlord which is not set forth herein or in one or more of the Exhibits attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.14 <u>Landlord Exculpation</u>. Notwithstanding anything in this Lease to the contrary, and notwithstanding any applicable law to the contrary. the liability of Landlord and the Landlord Parties under this Lease (including any successor landlord) and any recourse by Tenant against Landlord or the Landlord Parties shall be limited solely and exclusively to an amount which is equal to the ownership interest of Landlord in the Project (excluding any proceeds thereof), and neither Landlord, nor any of the Landlord Parties shall have any personal liability therefor, and Tenant hereby expressly waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.15 <u>Entire Agreement</u>. There are no oral agreements between the parties hereto affecting this Lease and this Lease supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. This Lease and any side letter or separate agreement executed by Landlord and Tenant in connection with this Lease and dated of even date herewith contain all of the terms, covenants, conditions, warranties and agreements of the parties relating in any manner to the rental, use and occupancy of the Premises, shall be considered to be the only agreement between the parties hereto and their representatives and agents, and none of the terms, covenants, conditions or provisions of this Lease can be modified, deleted or added to except in writing signed by the parties hereto. All negotiations and oral agreements acceptable to both parties have been merged into and are included herein. There are no other representations or warranties between the parties, and all reliance with respect to representations is based totally upon the representations and agreements contained in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.16 <u>Right to Lease</u>. Landlord reserves the absolute right to effect such other tenancies in the Building, the Other Existing Buildings and/or in any other building and/or any other portion of the Project as Landlord in the exercise of its sole business judgment shall determine to best promote the interests of the Project. Tenant does not rely on the fact, nor does Landlord represent, that any specific tenant or type or number of tenants shall, during the Lease Term, occupy any space in the Building, the Other Existing Buildings or Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.17 <u>Force Majeure</u>. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, fire or other casualty, and other causes beyond the reasonable control of the party obligated to perform, except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease and except with respect to Tenant's obligations under the Tenant Work Letter (collectively, the "**Force Majeure**"), notwithstanding anything to the contrary contained in this Lease, shall excuse the performance of such party for a period equal to any such prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of either party, that time period shall be extended by the period of any delay in such party's performance caused by a Force Majeure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.18 <u>Waiver of Redemption by Tenant</u>. Tenant hereby waives for Tenant and for all those claiming under Tenant all right now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant's right of occupancy of the Premises after any termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.19 <u>Notices</u>. All notices, demands, statements or communications (collectively, "**Notices**") given or required to be given by either party to the other hereunder shall be in writing, shall be sent by United States certified or registered mail, postage prepaid, return receipt requested, or delivered personally (i) to Tenant at the appropriate address set forth in Section 5 of the Summary, or to such other place as Tenant may from time to time designate in a Notice to Landlord; or (ii) to Landlord at the addresses set forth in Section 3 of the Summary, or to such other firm or to such other place as Landlord may from time to time designate in a Notice to Tenant. Any Notice will be deemed given on the date it is mailed as provided in this Section 24.19 or upon the date personal delivery is made or rejected. If Tenant is notified of the identity and address of Landlord's mortgagee or ground lessor, Tenant shall give to such mortgagee or ground lessor written notice of any default by Landlord under the terms of this Lease by registered or certified mail, and such mortgagee or ground lessor shall be given a reasonable opportunity to cure such default prior to Tenant's exercising any remedy available to Tenant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.20 <u>Joint and Several</u>. If there is more than one person or entity executing this Lease as Tenant, the obligations imposed upon such persons and entities under this Lease are and shall be joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.21 <u>Authority</u>. Each individual executing this Lease on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in the state in which the Project is located and that Tenant has full right and authority to execute and deliver this Lease and that each person signing on behalf of Tenant is authorized to do so. Tenant confirms that it is not in violation of any executive order or similar governmental regulation or law, which prohibits terrorism or transactions with suspected or confirmed terrorists or terrorist entities or with persons or organizations that are associated with, or that provide any form of support to, terrorists. Tenant further confirms that it will comply throughout the Term of this Lease, with all governmental laws, rules or regulations governing transactions or business dealings with any suspected or confirmed terrorists or terrorist entities, as identified from time to time by the U.S. Treasury Department's Office of Foreign Assets Control or any other applicable governmental entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.22 <u>Jury Trial; Attorneys' Fees</u>. IF EITHER PARTY COMMENCES LITIGATION AGAINST THE OTHER FOR THE SPECIFIC PERFORMANCE OF THIS LEASE, FOR DAMAGES FOR THE BREACH HEREOF OR OTHERWISE FOR ENFORCEMENT OF ANY REMEDY HEREUNDER, THE PARTIES HERETO AGREE TO AND HEREBY DO WAIVE ANY RIGHT TO A TRIAL BY JURY. In the event of any such commencement of litigation, the prevailing party shall be entitled to recover from the other party such costs and reasonable attorneys' fees as may have been incurred, including any and all costs incurred in enforcing, perfecting and executing such judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.23 <u>Governing Law</u>. This Lease shall be construed and enforced in accordance with the laws of the state in which the Project is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.24 <u>Submission of Lease</u>. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or an option for lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.25 <u>Brokers</u>. Landlord and Tenant each hereby represents and warrants to the other party that it (i) has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease, excepting only the real estate brokers or agents specified in Section 11 of the Summary (collectively, the "**Brokers**"), and (ii) knows of no other real estate broker or agent who is entitled to a commission in connection with this Lease. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all Claims with respect to any leasing commission or equivalent compensation alleged to be owing on account of the indemnifying party's dealings with any real estate broker or agent in connection with this Lease other than the Brokers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.26 <u>Independent Covenants</u>. This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent and not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary and agrees that if Landlord fails to perform its obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord's expense or to any setoff of the Rent or other amounts owing hereunder against Landlord; provided, however, that the foregoing shall in no way impair the right of Tenant to commence a separate action against Landlord for any violation by Landlord of the provisions hereof so long as notice is first given to Landlord and any holder of a mortgage or deed of trust covering the Building, Project or any portion thereof, of whose address Tenant has theretofore been notified, and an opportunity is granted to Landlord and such holder to correct such violations as provided above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.27 <u>Building Name and Signage</u>. Landlord shall have the right at any time to change the name(s) of the Building, the Other Existing Buildings and Project and to install, affix and maintain any and all signs on the exterior and on the interior of the Building, the Other Existing Buildings and any portion of the Project as Landlord may, in Landlord's sole discretion, desire. Tenant shall not use the names of the Building, the Other Existing Buildings or Project or use pictures or illustrations of the Building, the Other Existing Buildings or Project in advertising or other publicity, without the prior written consent of Landlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.28 <u>Building Directory</u>. Landlord shall include Tenant's name and location in the Building on one (1) line on the Building directory. The initial cost of such directory signage shall be paid for by Landlord, but any subsequent charges thereto shall be at Tenant's cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.29 <u>Confidentiality</u>. Tenant acknowledges that the content of this Lease and any related documents are confidential information. Tenant shall keep such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Tenant's financial, legal, and space planning consultants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.30 <u>Landlord's Construction</u>. Except as specifically set forth in this Lease or in the Tenant Work Letter: (i) Landlord has no obligation to alter, remodel, improve, renovate, repair or decorate the Premises, the Building, the Other Existing Buildings, the Project, or any part thereof; and (ii) no representations or warranties respecting the condition of the Premises, the Building, the Other Existing Buildings or the Project have been made by Landlord to Tenant. Tenant acknowledges that prior to and during the Lease Term, Landlord (and/or any common area association) will be completing construction and/or demolition work pertaining to various portions of the Other Existing Buildings, and/or the Project, including without limitation, landscaping and tenant improvements for premises for other tenants and, at Landlord's sole election, such other buildings, improvements, landscaping and other facilities within or as part of the Project as Landlord (and/or such common area association) shall from time to time desire (collectively, the "**Construction**"). In connection with such Construction, Landlord may, among other things, erect scaffolding or other necessary structures in the Other Existing Buildings, limit or eliminate access to portions of the Project, including portions of the common areas, or perform work in the Other Existing Buildings and/or the Project, which work may create noise, dust or leave debris in the Building, the Other Existing Buildings and/or the Project. Tenant hereby agrees that such Construction and Landlord's actions in connection with such Construction shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant's business arising from such Construction, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant's personal property or improvements resulting from such Construction or Landlord's actions in connection with such Construction, or for any inconvenience or annoyance occasioned by such Construction or Landlord's actions in connection with such Construction. Landlord shall use commercially reasonable efforts to minimize any disruption to Tenant's use and occupancy of the Premises in connection with such Construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.31 <u>Substitution of Other Premises</u>. Intentionally deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.32 <u>Access to the Premises</u>. Subject to the terms of this Lease, including but not limited to, the Rules and Regulations, Tenant and its employees shall have access to the Premises twenty-four (24) hours per day, 365 days per year.

**<u>ARTICLE 25</u>**

**<u>OPTION TO RENEW</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1 Tenant shall have one (1) option (the "**Option**") to extend the Lease Term for a period of five (5) years (the "**Option Term**"), which Option shall be exercisable by written notice delivered by Tenant to Landlord as provided in Section 25.1.1., below, provided that Tenant has not committed a default under this Lease as of the date of delivery of such notice. The Option to extend the Lease Term shall be exercisable by Tenant only if the originally named Tenant is in possession of one hundred percent (100%) of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.1 <u>Exercise of Option</u>. The Option may be exercised by Tenant, if at all, by delivering written notice (the "**Option Notice**") to Landlord not more than twelve (12) months nor less than nine (9) months prior to the expiration of the Term, stating that Tenant is exercising its option. The Option Notice shall be fully binding on Tenant and shall be irrevocable. Landlord, after receipt of Tenant's notice, shall deliver notice (the "<u>Option Rent Notice</u>") to Tenant within thirty (30) days of Landlord's receipt of the Option Notice setting forth the "Option Rent," as that term is defined in Section 25.1.2, below, which shall be applicable to the Lease during the Option Term. On or before the date ten (10) business days after Tenant's receipt of the Option Rent Notice, Tenant may, at its option, object to the Option Rent contained in the Option Rent Notice by delivering written notice thereof to Landlord, in which case the parties shall follow the procedure, and the Option Rent shall be determined, as set forth in Section 25.1.3, below. If Tenant does not so object within such ten (10) business day period, the Option Rent applicable during the Option Term shall be the amount set forth in the Option Rent Notice.

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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;25.1.2 <u>Option Rent</u>. The rent payable by Tenant during the Option Term (the "**Option Rent**") shall be equal to the prevailing annual market rental value for comparable space in other first class office and research and development buildings located in the Project and in the vicinity of the Project ("**Comparable Buildings**") (including additional rent and considering any "base year" or "expense stop" applicable thereto), including all escalations, at which tenants, as of the commencement of the Option Term, are leasing non-renewal, non-sublease, non-encumbered, non-equity space in Comparable Buildings for a comparable term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.3 <u>Determination of Option Rent</u>. The Option Rent Notice shall contain Landlord's good faith estimate of the Option Rent for the Premises for the Option Term. In the event Tenant timely and appropriately objects to the Option Rent, Landlord and Tenant shall attempt to agree upon the Option Rent using their best good-faith efforts. If Landlord and Tenant fail to reach agreement within ten (10) days following Tenant's objection to the Option Rent (the "**Outside Agreement Date**"), then Tenant may give written notice ("**Appraisal Notice**") to Landlord that Tenant desires to have the Option Rent determined by appraisal pursuant to the procedures set forth in Sections 25.1.3.1 through 25.1.3.5, below. If Tenant fails to give the Appraisal Notice to Landlord on or before the Outside Agreement Date, the Option Rent shall be the amount set forth in the Option Rent Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.3.1 Within ten (10) days after Landlord's receipt of the Appraisal Notice in accordance with this Section, Landlord and Tenant shall agree upon a list of three (3) independent, unaffiliated real estate brokers with at least ten (10) years' full-time experience brokering commercial office properties within ten (10) miles of the Project. Within five (5) days after agreement upon the list of brokers, Landlord and Tenant shall meet and each shall have the right to disqualify one (1) of the brokers until only one (1) broker ("**Arbitrator**") has not been disqualified by either Landlord or Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.3.2 Within fifteen (15) days after the appointment of the Arbitrator, the parties shall each submit their determination of the Option Rent to the Arbitrator and the Arbitrator shall independently determine the Option Rent. The Option Rent shall equal the Option Rent submitted by Landlord or Tenant that is closest to the Option Rent determined by the Arbitrator. The Arbitrator shall not divulge to Landlord or Tenant the Option Rent determined by the Arbitrator until both parties instruct it to do so in writing. The determination of the Arbitrator in accordance with this Section 25.1.3 shall be final and binding on the parties and a judgment may be rendered thereon in a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.3.3 If the parties fail to select the three (3) qualified brokers or the Arbitrator, either Landlord or Tenant by giving ten (10) days' notice to the other party, can apply to the American Arbitration Association office in the county in which the Premises is located for the selection of the Arbitrator who meets the qualifications stated in this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.3.4 The cost of arbitration shall be paid by Landlord and Tenant equally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.3.5 During the period requiring the adjustment of Base Rent to Option Rent, Tenant shall pay, as Base Rent pending such determination, the Base Rent in effect for the Premises immediately prior to such adjustment; provided, however, that upon the determination of the applicable Option Rent, Tenant shall pay Landlord the difference between the amount of Base Rent Tenant actually paid and Option Rent immediately upon the determination of the Option Rent.

[SIGNATURES ON NEXT PAGE]

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IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed the day and date first above written.

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| | |
|:---|:---|
| "Landlord": | "Landlord": |
| G&I IX MARINA VILLAGE OFFICE PARK LP,<br>a Delaware limited partnership | G&I IX MARINA VILLAGE OFFICE PARK LP,<br>a Delaware limited partnership |
| G&I IX Marina Village OP GP LLC,<br>a Delaware limited liability company<br> its General Partner | G&I IX Marina Village OP GP LLC,<br>a Delaware limited liability company<br> its General Partner |
| By: | /s/ Valla Brown |
| Name: Valla Brown | Name: Valla Brown |
| Its: | Vice President |
| "Tenant": | "Tenant": |
| SCRIBE THERAPEUTICS INC.,<br>a Delaware corporation | SCRIBE THERAPEUTICS INC.,<br>a Delaware corporation |
| /s/ Benjamin Oakes | /s/ Benjamin Oakes |
| Name: Benjamin Oakes | Name: Benjamin Oakes |
| President & CEO | President & CEO |
| /s/ Stephen Than | /s/ Stephen Than |
| Name: Stephen Than | Name: Stephen Than |
| Secretary | Secretary |

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\*\*\* If Tenant is a CORPORATION, the authorized officers must sign on behalf of the corporation and indicate the capacity in which they are signing. The Lease must be executed by the president or vice president and the secretary or assistant secretary, unless the bylaws or a resolution of the board of directors shall otherwise provide, in which event, the bylaws or a certified copy of the resolution, as the case may be, must be attached to this Lease. 

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**<u>EXHIBIT A</u>**

**<u>OUTLINE OF FLOOR PLAN OF PREMISES</u>**

[Intentionally omitted]

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**<u>EXHIBIT A-1</u>**

**<u>SITE PLAN OF PROJECT</u>**

[Intentionally omitted]

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**<u>EXHIBIT B</u>**

**<u>TENANT WORK LETTER</u>**

[Intentionally omitted]

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**<u>SCHEDULE 1</u>**

**<u>SCHEMATIC FLOOR PLAN</u>**

[Intentionally omitted]

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**<u>SCHEDULE 2</u>**

**<u>INTERIOR ROOMS PROJECT OVERVIEW</u>**

[Intentionally omitted]

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**<u>SCHEDULE 3</u>**

**<u>EQUIPMENT LIST</u>**

[Intentionally omitted]

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**<u>EXHIBIT C</u>**

**<u>RULES AND REGULATIONS</u>**

[Intentionally omitted]

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**<u>EXHIBIT D</u>**

**<u>FORM OF LETTER OF CREDIT</u>**

[Intentionally omitted]

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**<u>EXHIBIT E</u>**

**<u>FORM OF FIRST AMENDMENT TO LEASE</u>**

[Intentionally omitted]

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**<u>EXHIBIT F</u>**

**<u>APPROVED HAZARDOUS MATERIALS EXHIBIT</u>**

[Intentionally omitted]

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**<u>FIRST AMENDMENT TO LEASE</u>**

**THIS FIRST AMENDMENT TO LEASE** ("**Amendment**") is made and entered into effective as of **<u>April</u> <u>14, 2020</u>**, by and between **G&I IX MARINA VILLAGE OFFICE PARK LP**, a Delaware limited partnership ("**Landlord**") and **SCRIBE THERAPEUTICS INC.**, a Delaware corporation ("**Tenant**").

<u>R E C I T A L S:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Landlord and Tenant entered into that certain Lease dated August 15, 2019 (the "**Lease**"), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord certain "Premises", as described in the Lease, in that certain Building located at 1150 Marina Village Parkway, Alameda, California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Except as otherwise set forth herein, all capitalized terms used in this Amendment shall have the same meaning as such terms have in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Landlord and Tenant desire to amend the Lease to confirm the Lease Commencement Date and the Lease Expiration Date of the Lease Term, as hereinafter provided.

NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Confirmation of Dates</u>. The parties hereby confirm that (A) the Lease Commencement Date occurred on **<u>May</u> <u>15, 2020</u>**, and (B) the Lease Expiration Date shall occur on **<u>July</u> <u>30, 2025</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Base Rent</u>. Monthly Base Rent shall be payable in accordance with the following schedule:

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| | | |
|:---|:---|:---|
| Period | Monthly<br>Installment<br>of Base Rent | Approx. Monthly Base<br>Rental Rate per RSF<br>of Premises |
|  May 15, 2020 – April 30, 2021\* | $28304.00 | $2.00 |
|  May 1, 2021 – April 30, 2022 | $42456.00 | $3.00 |
|  May 1, 2022 – April 30, 2023 | $60146.00 | $4.25 |
|  May 1, 2023 – April 30, 2024 | $61950.38 | $4.38 |
|  May 1, 2024 – April 30, 2025 | $63808.89 | $4.51 |
|  May 1, 2025 – July 30, 2025 | $65723.16 | $4.64 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>No Further Modification</u>. Except as set forth in this Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect.

[SIGNATURES ON NEXT PAGE]

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IN WITNESS WHEREOF, this Amendment to Lease has been executed as of the day and year first above written.

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| | |
|:---|:---|
| Landlord: | Landlord: |
| G&I IX MARINA VILLAGE OFFICE PARK LP, a Delaware limited partnership | G&I IX MARINA VILLAGE OFFICE PARK LP, a Delaware limited partnership |
| G&I IX Marina Village OP GP LLC, <br>a Delaware limited liability company <br>its General Partner | G&I IX Marina Village OP GP LLC, <br>a Delaware limited liability company <br>its General Partner |
| By: | /s/ Valla Brown |
| Name: | Valla Brown |
| Title: | Vice President |

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| | |
|:---|:---|
| Tenant: | Tenant: |
| SCRIBE THERAPEUTICS INC., <br>a Delaware corporation | SCRIBE THERAPEUTICS INC., <br>a Delaware corporation |
| By: | /s/ Benjamin Oakes |
| Name: | Benjamin Oakes |
| Title: | President and CEO |
| (Chairman of Board, President or Vice President) | (Chairman of Board, President or Vice President) |

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| | |
|:---|:---|
| By: | /s/ Stephen Thau |
| Name: | Stephen Thau |
| Title: | Secretary |
| (Secretary, Assistant Secretary, CFO or Assistant <br>Treasurer) | (Secretary, Assistant Secretary, CFO or Assistant <br>Treasurer) |

---

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**SECOND AMENDMENT TO LEASE** 

**THIS SECOND AMENDMENT TO LEASE** dated June 4, 2021 (this "Second Amendment") is entered into by and between **G&I IX MARINA VILLAGE OFFICE PARK LP**, a Delaware limited partnership ("**Landlord**"), and SCRIBE THERAPEUTICS INC., a Delaware corporation ("**Tenant**"), with reference to the following:

**<u>R E C I T A L S</u>**

**WHEREAS**, Landlord and Tenant entered into that certain Lease dated August 15, 2019 (the "**Original Lease**"), as amended by that certain First Amendment to Lease dated April 14, 2020 (the "**First Amendment**") by and between Landlord and Tenant (collectively, the "**Lease**"), whereby Tenant leases certain premises (the "**Original Premises**") consisting of approximately 14,152 rentable square feet of space and comprising the entire building commonly known as "Shipway 3" located at 1150 Marina Village Parkway, Alameda, California (the "**Shipway 3 Building**"). All capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Lease; and

**WHEREAS**, Landlord and Tenant desire by this Second Amendment to amend the Lease in order to, among other things, (a) extend the Lease Term for an additional ninety (90) full calendar month period commencing on the Expansion Date (as defined below), (b) expand the Original Premises leased by Tenant under the Lease to include certain additional premises (the "**Additional Premises**") consisting of approximately 14,255 rentable square feet and comprising the entire building commonly known as "Shipway 4" located at 1100 Marina Village Parkway, Alameda, California (the "**Shipway 4 Building**"); (c) provide for the Rent to be paid by Tenant for the Additional Premises for the remainder of the initial Lease Term; (d) provide for Rent to be paid by Tenant for the Expanded Premises during the Extension Term (as such terms are defined below); and (e) further amend, modify and supplement the Lease as set forth herein.

**NOW, THEREFORE**, in consideration of the Expanded Premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Recitals</u>**. The Recitals set forth above are incorporated herein as though set forth in full herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Extension of Lease Term</u>**. Landlord and Tenant acknowledge that the Lease Term expires according to the terms of the Lease on July 31, 2025 (stated in error in the First Amendment as July 30, 2025). Notwithstanding anything to the contrary contained in the Lease, Landlord and Tenant agree that the Lease Expiration Date shall be extended such that the Lease Term shall expire on the last day of the ninetieth (90th) full calendar month after the Expansion Date (the "**New Lease Expiration Date**"), unless sooner terminated in accordance with the terms of the Lease. The period from August 1, 2025 through the New Lease Expiration Date shall be referred to herein as the "**Extension Term.**" Tenant acknowledges that Tenant has no option or right to extend the Lease Term beyond the Extension Term, except as expressly provided in Article 25 of the Original Lease (provided that the Option shall apply to the entire Expanded Premises and not a portion thereof).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Expansion; Description of Premises</u>**. Commencing on the date (the "**Expansion Date**") of "Substantial Completion" of the "Additional Premises Improvements", as such terms are defined in the Tenant Work Letter attached as Exhibit B to this Second Amendment (the "**Tenant Work Letter**"), Landlord shall lease to Tenant, and Tenant shall lease from Landlord, the Additional Premises as shown on Exhibit A attached hereto and incorporated herein by this reference, upon all of the terms and conditions of the Lease except as otherwise set forth herein. Therefore, the Lease is hereby amended such that, from and after the Expansion Date, all references in the Lease to (a) the "Premises" shall mean and refer to the entirety of the space in the Original Premises and the Additional Premises, which is approximately 28,407 rentable square feet and consists of the entire buildings located at 1100 and 1150 Marina Village Parkway, Alameda, California (the entirety of such space is referred to herein as the "**Expanded Premises**"), and (b) the "Building" shall mean and refer to the Shipway 3 Building with respect to the Original Premises and the Shipway 4 Building with respect to the Additional Premises. Notwithstanding anything to the contrary contained herein, Landlord shall not be obligated to deliver possession of the Additional Premises to Tenant until Tenant has provided to Landlord evidence of liability and property insurance coverage covering the Additional Premises pursuant to Section 10.3 of the Original Lease. Landlord shall deliver to Tenant a Notice of Expansion Date in a form similar to that attached hereto as Exhibit C, which Tenant shall execute and return to Landlord within five (5) business days of receipt thereof. In the event that Substantial Completion of the Additional Premises Improvements has not occurred on or before January 1, 2023 (the "**Termination Date**"), as such Termination Date shall be extended for any delay caused by Force Majeure or Tenant Delays, Tenant shall have the right to terminate this Second Amendment and Tenant's lease of the Additional Premises by giving Landlord written notice within ten (10) days after the Termination Date. If Tenant timely gives such notice to Landlord, then (i) this Second Amendment shall be void and of no further force or effect ten (10) days after Landlord's receipt of Tenant's notice, (ii) Tenant shall surrender any portion of the Temporary Office Premises (as defined below) occupied by Tenant in accordance with the terms of this Second Amendment, and (iii) Tenant and Landlord shall have no further rights or obligations to each other pursuant to this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Monthly Base Rent for the Additional Premises During the Remainder of the Initial Lease Term and the Extension Term</u>**. Notwithstanding anything to the contrary contained in the Lease and in addition to paying all other amounts due under the Lease, including, without limitation, monthly Base Rent for the Original Premises set forth in the Lease and Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs with respect to the Expanded Premises in accordance with Section 7 below, Tenant shall pay monthly Base Rent for the Additional Premises during the period commencing on the Expansion Date and continuing during the remainder of the initial Lease Term and the Extension Term according to the following schedule:

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| | | |
|:---|:---|:---|
| Months | Monthly Installment<br>of Base Rent | Approximate Monthly<br>Rental Rate Per RSF |
|  Expansion Date – 12\* | $69849.50 | $4.90 |
| 13 – 24 | $71944.99 | $5.05 |
| 25 – 36 | $74103.33 | $5.20 |
| 37 – 48 | $76326.43 | $5.35 |
| 49 – 60 | $78616.23 | $5.51 |
| 61 – 72 | $80974.71 | $5.68 |
| 73 – 84 | $83403.96 | $5.85 |

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| | | |
|:---|:---|:---|
| Months | Monthly Installment<br>of Base Rent | Approximate Monthly<br>Rental Rate Per RSF |
| 95 – 90 | $85906.07 | $6.03 |

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\* Subject to abatement of monthly Base Rent for the Additional Premises for the first (1<sup>st</sup>) six (6) full calendar months after the Expansion Date pursuant to Section 5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Abatement of Six (6)</u> <u>Months of Base Rent for the Additional Premises</u>**. Notwithstanding anything to the contrary contained in the Lease and provided that Tenant is not in default under this Lease beyond the expiration of all applicable notice and cure periods, Landlord and Tenant hereby agree that for the first (1st) six (6) full calendar months after the Expansion Date, the monthly Base Rent due for the Additional Premises (i.e., $69,849.50 per month) shall be fully abated (the "**Abated Rent**"); provided, that Tenant shall remain liable for payment of all other monetary obligations required to be paid by Tenant under the Lease, including, but not limited to, payment of monthly Base Rent for the Original Premises and Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs with respect to the Expanded Premises in accordance with Section 7 below. In the event of a default by Tenant under the terms of this Lease beyond the expiration of any applicable notice and cure periods that results in the early termination of this Lease during the Lease Term pursuant to the provisions of Article 19 of the Lease, then as a part of the recovery set forth in such Article 19 below, Landlord shall be entitled to recover the Abated Rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Monthly Base Rent for the Original Premises During the Extension Term</u>**. Notwithstanding anything to the contrary contained in the Lease and in addition to paying all other amounts due under the Lease, including, without limitation, monthly Base Rent for the Additional Premises set forth in Section 4 above and Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs with respect to the Expanded Premises, Tenant shall pay monthly Base Rent for the Original Premises during the Extension Term according to the following schedule:

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| | | |
|:---|:---|:---|
| Months | Monthly Installment<br>of Base Rent | Approximate Monthly<br>Rental Rate Per RSF |
|  August 1, 2025 – 48 | $67646.56 | $4.78 |
| 49 – 60 | $69725.70 | $4.93 |
| 61 – 72 | $71817.47 | $5.07 |
| 73 – 84 | $73971.99 | $5.23 |
| 85 – 90 | $76191.15 | $5.38 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Tenant's Share</u>**. Effective as of the Expansion Date and in addition to paying all other amounts due under the Lease, including, without limitation, the monthly Base Rent for the Original Premises set forth in the Lease and Section 6 above and the monthly Base Rent for the Additional Premises set forth in Section 4 above, Tenant shall pay Tenant's Share of Operating Expenses, Tax Expenses and Utilities Costs allocable to the Expanded Premises in accordance with the terms and provisions of Article 4 of the Original Lease. For such purpose, effective as of the Expansion Date, Tenant's Share set forth in Section 9 of the Summary shall be adjusted to 100% of the Shipway 3 Building and 100% of the Shipway 4 Building to reflect the Expanded Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Condition of the Additional Premises</u>**. Except as expressly set forth herein, in the Lease or in the Tenant Work Letter, Landlord shall not be obligated to provide or pay for any improvement, remodeling or refurbishment work or services related to the improvement, remodeling or refurbishment of the Additional Premises. Tenant acknowledges that neither Landlord nor any agent nor any employee of Landlord has made any representations or warranty with respect to the Additional Premises except as specifically set forth in the Lease, this Second Amendment or the Tenant Work Letter. Notwithstanding anything herein to the contrary, Landlord shall deliver the Additional Premises to Tenant with the Building systems and utilities serving the Additional Premises in good working order as of the Expansion Date and upgraded if necessary to facilitate Tenant's intended use of the Premises as a molecular biology lab, consistent with the requirements of the Tenant Work Letter, and shall repair, at Landlord's sole cost and expense (and not as an Operating Expense) any deficiency existing as of the Expansion Date with respect thereto of which Tenant provides written notice to Landlord within sixty (60) days after the Expansion Date (provided that such sixty (60) day time period shall not reduce or limit the one year warranty provided in the Tenant Work Letter). If the Additional Premises are not in the required condition as of the Expansion Date, Landlord shall, except as otherwise provided in this Lease, promptly after receipt of written notice from Tenant setting forth with specificity the nature and extent of such non-compliance, commence to rectify same at Landlord's expense. If Tenant does not give Landlord written notice of a non-compliance with this condition within sixty (60) days after the Expansion Date, correction of that non-compliance shall be the obligation of the party responsible under this Lease (except for the one year warranty provided in the Tenant Work Letter). The foregoing shall not be deemed to require Landlord to replace any of the systems, as opposed to repair any systems, except to the extent necessary for such systems to be in good working order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Temporary Office Space</u>**. At any time prior to the Expansion Date within thirty (30) days' of Tenant's written request to Landlord, Landlord shall provide Tenant with the temporary use and occupancy of at least 1,500 rentable square feet of office space with appropriate utilities to support general office use within the building located at 1301 Marina Village Parkway, Alameda, CA or a substantially similar building (the "**Temporary Office Space**") within the Project, commencing on the date Landlord delivers the Temporary Office Space to Tenant and terminating on the date (the "**Temporary Space Expiration Date**") fifteen (15) days after the date of Substantial Completion of the Additional Premises Improvements in the Additional Premises ("**Temporary Office Space Term**"). The terms and conditions of the Lease (including, without limitation, those concerning indemnification, insurance and maintenance and repair obligations) shall apply to Tenant's use and occupancy of the Temporary Office Space as if the Temporary Office Space were a part of the Premises for all purposes under the Lease; provided, that, notwithstanding anything to the contrary contained in the Lease, (a) except for Landlord's obligation to provide utilities pursuant to this Section 9, Tenant shall accept the Temporary Space in its "As-Is" condition without representation, warranty or any improvements by Landlord of any kind, (b) Tenant shall not be required to pay Base Rent during the Temporary Office Space Term, but Tenant shall be required to pay (i) Tenant's Share of Operating Expenses allocable to the Temporary Office Space as reasonably determined by Landlord, plus (ii) Tenant's Share of Tax Expenses allocable to the Temporary Office Space as reasonably determined by Landlord, plus (iii) Tenant's Share of Utilities Costs allocable to the Temporary Office Space as reasonably determined by Landlord, (c) Tenant shall have no right to make any Alterations to the Temporary Office Space, (d) Tenant shall have no right to lease the Temporary Office Space beyond the Temporary Space Expiration Date, and (e) if Tenant fails to vacate, surrender and deliver the

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Temporary Office Space in the manner required by the Lease by the Temporary Space Expiration Date, commencing on the date immediately succeeding the Temporary Space Expiration Date, Tenant shall pay to Landlord rent for the Temporary Office Space equal to the prevailing market rental value for comparable space in Comparable Buildings. Tenant shall be responsible for setting up and installing all furniture, fixtures and equipment, including without limitation, Tenant's permitted voice/data infrastructure cabling, in the Temporary Space.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Tenant's Rights</u>**. For so long as Tenant is Leasing the entire Shipway 3 Building and the entire Shipway 4 Building, Tenant shall have the exclusive use of the loading area between the Shipway 3 Building and the Shipway 4 Buildings, subject to the provisions of the Lease, including Section 1.1.3 of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>Lease Amendments</u>**. Upon execution hereof, the Lease shall be amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Section 24.29 shall be deleted in its entirety and replaced with the following:

"<u>Confidentiality</u>. Tenant acknowledges that the content of this Lease and any related documents are confidential information. Tenant shall keep such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Tenant's financial, legal, and space planning consultants, except as required by applicable law."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Exhibit C (Rules and Regulations) shall be deleted in its entirety and replaced with the Amended and Restated Rules and Regulations attached hereto as Exhibit D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Inspection by a CASp in Accordance with Civil Code</u> <u>§</u><u>1938</u>**. Landlord hereby informs Tenant that the Expanded Premises have not undergone inspection by a Certified Access Specialist (CASp). The foregoing verification is included in this Second Amendment solely for the purpose of complying with California Civil Code Section 1938 and shall not in any manner affect Landlord's and Tenant's respective responsibilities for compliance with construction-related accessibility standards as provided under the Lease. Tenant hereby acknowledges that the Project, the Shipway 3 Building, the Shipway 4 Building and the Expanded Premises have not undergone inspection by a CASp. As required by Section 1938 of the California Civil Code, Landlord hereby states as follows: "A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises." In furtherance of the foregoing, Landlord and Tenant hereby agree that any CASp inspection requested by Tenant shall be conducted by a CASp inspector approved by Landlord at Tenant's sole cost and expense and any

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repairs necessary to correct violations of construction-related accessibility standards within the Expanded Premises disclosed by such inspection shall be performed by Tenant at its sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>Parking</u>**. Notwithstanding anything in the Lease to the contrary, Tenant shall have the right to use eighty five (85) unreserved parking spaces (i.e., 3 unreserved parking spaces for every 1,000 rentable square feet of the Expanded Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>Generator</u>**. Landlord and Tenant acknowledge that Tenant may use the existing emergency power generator serving the Original Premises described in Section 6.6 of the Original Lease (the "**Generator**") in connection with Tenant's operations in the Additional Premises. At Tenant's sole cost and expense the Generator shall be connected to the Additional Premises as part of the Additional Premises Improvements set forth in the Tenant Work Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. <u>Relocation</u>**. In the event that Tenant desires to relocate within the Project to any of the entire buildings located at 200, 400, 500 or 600 Wind River Way or 960 Atlantic Ave, 1151 Marina Village Parkway or 1135 Atlantic Ave (each, a "**Relocation Building**"), provided that such Relocation Building is available for lease, and Landlord and Tenant mutually agree on the terms of such relocation, Landlord agrees to release Tenant from its obligations under the Lease with respect to the Expanded Premises arising after the date of such relocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>Letter of Credit</u>**. Within thirty (30) days following Tenant's execution of this Second Amendment, Tenant shall deliver to Landlord an amendment to the existing L-C issued by Silicon Valley Bank and currently held by Landlord under the Lease, which amendment shall be in form and substance reasonably satisfactory to Landlord, amending the final expiration date of the Letter of Credit to be not earlier than one hundred twenty (120) days following the expiration of the Extension Term. Section 20.3 of the Original Lease is hereby deleted in its entirety and of no further force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>Identification Sign</u>**. Tenant shall be entitled to one (1) identification sign on or near the entry doors of the Additional Premises (the "**Additional Premises Identification Sign**"). Landlord shall pay for the initial installation of the Additional Premises Identification Sign and Tenant shall pay for any additions, deletions or modifications to the Additional Premises Identification Sign; provided, however, any additions, deletions or modifications to the Additional Premises Identification Sign shall be subject to the prior written approval of Landlord, in Landlord's sole discretion. The Additional Premises Identification Sign shall be installed by a signage contractor designated by Landlord. The location, quality, design, style and size of the Additional Premises Identification Sign shall be consistent with the Landlord's Building standard signage program and shall be subject to Landlord's prior written approval, in its reasonable discretion. Upon the expiration or earlier termination of this Lease, Tenant shall be responsible, at its sole cost and expense, for the removal of the Additional Premises Identification Sign and the repair of all damage to the Shipway 4 Building caused by such removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>Estoppel</u>**. Tenant hereby certifies and acknowledges, that as of the date hereof (a) Landlord is not in default in any respect under the Lease, (b) Tenant does not have any defenses to its obligations under the Lease, (c) Landlord is currently holding a L-C in the amount of $675,000 under the Lease, and (d) there are no offsets against rent payable under the Lease. Tenant

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acknowledges and agrees that: (i) the representations herein set forth constitute a material consideration to Landlord in entering into this Second Amendment; (ii) such representations are being made by Tenant for purposes of inducing Landlord to enter into this Second Amendment; and (iii) Landlord is relying on such representations in entering into this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>Brokers</u>**. Tenant hereby represents and warrants to Landlord that Tenant has not entered into any agreement or taken any other action which might result in any obligation on the part of Landlord to pay any brokerage commission, finder's fee or other compensation with respect to this Second Amendment, and Tenant agrees to indemnify and hold Landlord harmless from and against any losses, damages, costs or expenses (including without limitation, attorneys' fees) incurred by Landlord by reason of any breach or inaccuracy of such representation or warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>Landlord's Address for Notices</u>**. Landlord's address for notices under Section 3 of the Summary and for all other purposes under the Lease (except for payment of Rent) is hereby amended as follows:

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| | |
|:---|:---|
| Notice Address: | G&I IX Marina Village Office Park LP <br>c/o DRA Advisors LLC <br>575 Fifth Avenue, 38th Floor <br>New York, NY 10017 <br>Attention: Asset Manager |
|  | With copies to: |
|  | CBRE <br>2020 Challenger Drive, Suite 101 <br>Alameda, CA 94501 <br>Attention: Property Manager <br>Email: [\*] |
|  | and |
|  | Blue Rise Ventures LLC <br>2020 Challenger Drive, Suite 101 <br>Alameda, CA 94501 <br>Attention: [\*] |
|  | and |
|  | Ziontz & Radick LLP <br>233 Wilshire Blvd., Suite 600 <br>Santa Monica, CA 90401 <br>Attention: [\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21. <u>Landlord's Limitation of Liability</u>**. It is expressly understood and agreed that notwithstanding anything in the Lease (as hereby amended) to the contrary, and notwithstanding any applicable law to the contrary, the liability of Landlord under the Lease, as hereby amended

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(including any successor Landlord) and any recourse by Tenant against Landlord shall be limited solely and exclusively to the interest of Landlord in and to the Shipway 3 Building and the Shipway 4 Building, and neither Landlord, nor any of its constituent members or partners, shall have any personal liability therefor, and Tenant hereby expressly waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. Under no circumstances shall Landlord be liable for injury to Tenant's business or for any loss of income or profit therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22. <u>Landlord Exculpation</u>**. No present or future officer, director, employee, trustee, partner, member, manager or agent of Landlord shall have any personal liability, directly or indirectly, and recourse shall not be had against any such officer, director, employee, trustee, partner, member, manager or agent under or in connection with the Lease, as hereby amended, or any other document or instrument heretofore or hereafter executed in connection with the Lease, as hereby amended. Tenant hereby waives and releases any and all such personal liability and recourse. The limitations of liability provided in this Section are in addition to, and not in limitation of, any limitation on liability applicable to Landlord provided by law or in any other contract, agreement or instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23. <u>Ratification</u>**. Except as otherwise specifically herein amended, the Lease is and shall remain in full force and effect according to the terms thereof. In the event of any conflict between the Lease and this Second Amendment, this Second Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24. <u>Attorneys' Fees</u>**. Should either party institute any action or proceeding to enforce or interpret this Second Amendment or any provision thereof, for damages by reason of any alleged breach of this Second Amendment or of any provision hereof, or for a declaration of rights hereunder, the prevailing party in any such action or proceeding shall be entitled to receive from the other party all cost and expenses, including actual attorneys' and other fees, reasonably incurred in good faith by the prevailing party in connection with such action or proceeding. The term "attorneys' and other fees" shall mean and include attorneys' fees, accountants' fees, and any and all consultants' and other similar fees incurred in connection with the action or proceeding and preparations therefore. The term "action or proceeding" shall mean and include actions, proceedings, suits, arbitrations, appeals and other similar proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25. <u>Submission</u>**. Submission of this Second Amendment by Landlord to Tenant for examination and/or execution shall not in any manner bind Landlord and no obligations on Landlord shall arise under this Second Amendment unless and until this Second Amendment is fully signed and delivered by Landlord and Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26. <u>Counterparts; Facsimile, Electronic and Emailed Signatures</u>**. This Second Amendment may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. A signed copy of this Second Amendment transmitted by facsimile, email, DocuSign or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Second Amendment for all purposes.

**[SIGNATURES ON NEXT PAGE]** 

------

**IN WITNESS WHEREOF**, this Second Amendment has been executed by the parties as of the date first referenced above.

---

| | |
|:---|:---|
| **"Landlord"** | **"Landlord"** |
| **G&I IX MARINA VILLAGE OFFICE PARK LP,**<br> a Delaware limited partnership | **G&I IX MARINA VILLAGE OFFICE PARK LP,**<br> a Delaware limited partnership |
| G&I IX MARINA VILLAGE OP GP LLC, <br>a Delaware limited liability company, <br>its General Partner | G&I IX MARINA VILLAGE OP GP LLC, <br>a Delaware limited liability company, <br>its General Partner |
| By: | /s/ David Gray |
| Name: | David Gray |
| Title: | Vice President |

---

---

| | |
|:---|:---|
| **"Tenant"** | **"Tenant"** |
| **SCRIBE THERAPEUTICS INC.,** <br> a Delaware corporation | **SCRIBE THERAPEUTICS INC.,** <br> a Delaware corporation |
| By: | /s/ Benjamin Oakes |
| Name: | Benjamin Oakes |
| Title: | President & CEO |

---

------

**THIRD AMENDMENT TO LEASE** 

**THIS THIRD AMENDMENT TO LEASE** dated January 25, 2022 (this "**Third Amendment**") is entered into by and between G&I IX MARINA VILLAGE OFFICE PARK LP, a Delaware limited partnership ("**Landlord**"), and SCRIBE THERAPEUTICS INC., a Delaware corporation ("**Tenant**"), with reference to the following:

**<u>R E C I T A L S</u>**

WHEREAS, Landlord and Tenant entered into that certain Lease dated August 15, 2019 (the "**Original Lease**"), as amended by that certain First Amendment to Lease dated April 14, 2020 by and between Landlord and Tenant, and that certain Second Amendment to Lease dated June 4, 2021 (the "**Second Amendment**") by and between Landlord and Tenant (collectively, the "**Lease**"), whereby Tenant leases certain premises (the "**Premises**") consisting of approximately 28,407 rentable square feet of space and comprising the entire building commonly known as "Shipway 3" located at 1150 Marina Village Parkway, Alameda, California, and the entire building commonly known as "Shipway 4" located at 1100 Marina Village Parkway, Alameda, California. All capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Lease; and

**WHEREAS**, Landlord and Tenant desire by this Third Amendment to amend the Lease in order to, among other things, increase the Additional Premises Improvement Allowance under the Second Amendment by an additional $235,000.00.

**NOW, THEREFORE**, in consideration of the Premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Recitals</u>**. The Recitals set forth above are incorporated herein as though set forth in full herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Increase in the Additional Premises Improvement Allowance</u>**. Landlord and Tenant acknowledge that Tenant is entitled to a one-time tenant improvement allowance (the "**Improvement Allowance**") under the Second Amendment in the amount of $3,207,375.00. Landlord hereby agrees to increase the Additional Premises Improvement Allowance by an additional $235,000.00. In that regard, Section2.1 of the Tenant Work Letter attached as Exhibit B to the Second Amendment and all references in the Second Amendment to the "Additional Premises Improvement Allowance" are hereby amended to mean $3,442,375.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Inspection by a CASp in Accordance with Civil Code</u> <u>§</u><u>1938</u>**. Landlord hereby informs Tenant that the Premises have not undergone inspection by a Certified Access Specialist (CASp). The foregoing verification is included in this Third Amendment solely for the purpose of complying with California Civil Code Section 1938 and shall not in any manner affect Landlord's and Tenant's respective responsibilities for compliance with construction-related accessibility standards as provided under the Lease. Tenant hereby acknowledges that the Project, the Shipway 3 Building, the Shipway 4 Building and the Premises have not undergone inspection by a CASp. As required by Section 1938 of the California Civil Code, Landlord hereby states as follows: "A

------

Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises." In furtherance of the foregoing, Landlord and Tenant hereby agree that any CASp inspection requested by Tenant shall be conducted by a CASp inspector approved by Landlord at Tenant's sole cost and expense and any repairs necessary to correct violations of construction-related accessibility standards within the Premises disclosed by such inspection shall be performed by Tenant at its sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Estoppel</u>**. Tenant hereby certifies and acknowledges, that as of the date hereof (a) to Tenant's actual knowledge, Landlord is not in default in any respect under the Lease, (b) Tenant does not have any defenses to its obligations under the Lease, (c) Landlord is currently holding a L-C in the amount of $675,000 under the Lease, and (d) there are no offsets against rent payable under the Lease. Tenant acknowledges and agrees that: (i) the representations herein set forth constitute a material consideration to Landlord in entering into this Third Amendment; (ii) such representations are being made by Tenant for purposes of inducing Landlord to enter into this Third Amendment; and (iii) Landlord is relying on such representations in entering into this Third Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Brokers</u>**. Tenant hereby represents and warrants to Landlord that Tenant has not entered into any agreement or taken any other action which might result in any obligation on the part of Landlord to pay any brokerage commission, finder's fee or other compensation with respect to this Third Amendment, and Tenant agrees to indemnify and hold Landlord harmless from and against any losses, damages, costs or expenses (including without limitation, attorneys' fees) incurred by Landlord by reason of any breach or inaccuracy of such representation or warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Ratification</u>**. Except as otherwise specifically herein amended, the Lease is and shall remain in full force and effect according to the terms thereof. In the event of any conflict between the Lease and this Third Amendment, this Third Amendment shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Submission</u>**. Submission of this Third Amendment by Landlord to Tenant for examination and/or execution shall not in any manner bind Landlord and no obligations on Landlord shall arise under this Third Amendment unless and until this Third Amendment is fully signed and delivered by Landlord and Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Counterparts; Facsimile, Electronic and Emailed Signatures</u>**. This Third Amendment may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. A signed copy of this Third Amendment transmitted by facsimile, email, DocuSign or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Third Amendment for all purposes.

------

**IN WITNESS WHEREOF**, this Third Amendment has been executed by the parties as of the date first referenced above.

---

| | |
|:---|:---|
| "**Landlord**" | "**Landlord**" |
| **G&I IX MARINA VILLAGE OFFICE PARK LP,**<br> a Delaware limited partnership | **G&I IX MARINA VILLAGE OFFICE PARK LP,**<br> a Delaware limited partnership |
| G&I IX Marina Village OP GP LLC, <br>a Delaware limited liability company, <br>its General Partner | G&I IX Marina Village OP GP LLC, <br>a Delaware limited liability company, <br>its General Partner |
| By: | /s/ Robert Hyman |
| Name: Robert Hyman | Name: Robert Hyman |
| Title: Vice President | Title: Vice President |
| "**Tenant**" | "**Tenant**" |
| **SCRIBE THERAPEUTICS INC.,** <br> a Delaware corporation | **SCRIBE THERAPEUTICS INC.,** <br> a Delaware corporation |
| /s/ David Parrot | /s/ David Parrot |
| Name: David Parrot | Name: David Parrot |
| Title: CFO | Title: CFO |

---

------

**<u>EXHIBIT A</u>**

**OUTLINE OF ADDITIONAL PREMISES** 

[Intentionally omitted]

------

**<u>EXHIBIT B</u>**

**TENANT WORK LETTER** 

[Intentionally omitted]

------

**<u>EXHIBIT C</u>**

**NOTICE OF EXPANSION DATE** 

[Intentionally omitted]

------

**<u>EXHIBIT D</u>**

**AMENDED AND RESTATED RULES AND REGULATIONS** 

[Intentionally omitted]

## Exhibit 10.8

**Exhibit 10.8** 

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO SCRIBE THERAPEUTICS INC. IF PUBLICLY DISCLOSED.** 

**UNIVERSITY OF CALIFORNIA, BERKELEY** 

**OFFICE OF TECHNOLOGY LICENSING** 

**AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT** 

**BETWEEN** 

**SCRIBE THERAPEUTICS INC.** 

**AND** 

**THE REGENTS OF THE UNIVERSITY OF CALIFORNIA** 

**FOR** 

**"RNA-GUIDED NUCLEIC ACID MODIFYING ENZYMES AND METHODS OF USE THEREOF ("CASX")"** 

**AND** 

**"RNA-GUIDED NUCLEIC ACID MODIFYING ENZYMES AND METHODS OF USE THEREOF ("CASY")** 

UC Case Nos.: BK-2017-016 & 2017-017, BK-2018-215 and BK-2019-011

------

**Exhibit 10.8** 

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,** 

**MARKED BY [\*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND** 

**WOULD LIKELY CAUSE COMPETITIVE HARM TO SCRIBE THERAPEUTICS INC.** 

**IF PUBLICLY DISCLOSED.** 

**Table of Contents**

---

| | | |
|:---|:---|:---|
| Article |  | Page |
| 1. | BACKGROUND | 1 |
| 2. | DEFINITIONS | 3 |
| 3. | GRANT | 8 |
| 4. | SUBLICENSES | 9 |
| 5. | LICENSE ISSUE FEE | 12 |
| 6. | ROYALTIES, MAINTENANCE FEES, MINIMUM ANNUAL ROYALTIES | 15 |
| 7. | DUE DILIGENCE | 20 |
| 8. | PROGRESS AND ROYALTY REPORTS | 22 |
| 9. | BOOKS AND RECORDS | 23 |
| 10. | LIFE OF THE AGREEMENT | 23 |
| 11. | TERMINATION BY REGENTS | 24 |
| 12. | TERMINATION BY LICENSEE | 24 |
| 13. | DISPOSITION OF LICENSED PRODUCTS UPON TERMINATION | 24 |
| 14. | PATENT PROSECUTION AND MAINTENANCE | 25 |
| 15. | INTENTIONALLY OMITTED. | 26 |
| 16. | USE OF NAMES AND TRADEMARKS | 26 |
| 17. | LIMITED WARRANTIES | 27 |
| 18. | PATENT INFRINGEMENT | 28 |
| 19. | INDEMNIFICATION | 29 |
| 20. | COMPLIANCE WITH LAWS | 31 |
| 21. | GOVERNMENT APPROVAL OR REGISTRATION | 31 |
| 22. | ASSIGNMENT | 31 |
| 23. | NOTICES | 32 |
| 24. | LATE PAYMENTS | 33 |
| 25. | WAIVER | 33 |
| 26. | CONFIDENTIALITY | 33 |
| 27. | FORCE MAJEURE | 34 |
| 28. | SEVERABILITY | 34 |
| 29. | APPLICABLE LAW; VENUE; ATTORNEYS' FEES | 35 |
| 30. | SCOPE OF AGREEMENT | 35 |
| 31. | HHMI THIRD PARTY BENEFICIARY STATUS | 35 |
| 32. | ELECTRONIC COPY | 35 |
|  APPENDIX A | APPENDIX A | 37 |
|  APPENDIX B | APPENDIX B | 38 |

---

------

---

| | |
|:---|:---|
| **UNIVERSITY** | **OF CALIFORNIA, BERKELEY**  |

---

---

| | |
|:---|:---|
| **OFFICE** | **OF TECHNOLOGY LICENSING**  |

---

**AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT FOR** 

**"RNA-GUIDED NUCLEIC ACID MODIFYING ENZYMES AND METHODS OF USE THEREOF ("CASX")"** 

**AND** 

**"RNA-GUIDED NUCLEIC ACID MODIFYING ENZYMES AND METHODS OF USE THEREOF ("CASY")** 

UC Case Nos.: BK-2017-016 & 2017-017, BK-2018-215 and BK-2019-011

This Amended and Restated Exclusive License Agreement ("AGREEMENT") is effective September 24, 2020 ("Amended and Restated Exclusive License Agreement Effective Date"), by and between REGENTS OF THE UNIVERSITY OF CALIFORNIA, a California corporation, whose legal address is 1111 Franklin Street, 12th Floor, Oakland, California 94607-5200, acting through its Office of Technology Licensing, at the University of California, Berkeley, 2150 Shattuck Avenue, Suite 510, Berkeley, CA 94704-1366 ("REGENTS") and Scribe Therapeutics Inc., a Delaware corporation having a place of business at 1150 Marina Village Parkway, Alameda, CA 94501 ("LICENSEE"). The parties agree as follows:

**1.** **BACKGROUND** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 REGENTS has assignments to the following (collectively referred to as "INVENTIONS"): "RNA-Guided Nucleic Acid Modifying Enzymes and Methods of Use Thereof" [\*] (CasX family) and "RNA-Guided Nucleic Acid Modifying Enzymes and Methods of Use
Thereof" (CasY family), [\*], and to the patents and patent applications under REGENTS' PATENT RIGHTS, as defined below, which are directed to the INVENTIONS. The INVENTIONS were made at the University of California, Berkeley, by
Dr. Jennifer Doudna, an employee of the Howard Hughes Medical Institute ("HHMI") and a member of the faculty of the University of California, Berkeley ("UC Berkeley"), and by others at the University of California,
Berkeley.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 HHMI assigned its rights in the INVENTIONS to REGENTS under the terms of the interinstitutional agreement with
HHMI having UC Control No. 2014-18-0117 ("HHMI Interinstitutional Agreement"), and accordingly, REGENTS has the authority to license the entire interest
in the INVENTIONS and any patent rights claiming them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Under the terms of the HHMI Interinstitutional Agreement, HHMI has reserved a fully paid-up, non-exclusive, irrevocable, worldwide license to exercise any intellectual property rights with respect to such INVENTIONS for research purposes, with the right to
sublicense to non-profit and government entities, but with no other rights to assign or sublicense ("Research Use License").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 LICENSEE entered into an Option Agreement with REGENTS effective February 6, 2018, for the purpose of
evaluating the INVENTIONS and granting LICENSEE an exclusive right to negotiate an exclusive license in REGENTS' PATENT RIGHTS to the INVENTIONS, which Option Agreement covers LICENSEE's commitment to reimburse REGENTS' a pro-rata share of patent costs during the period of good-faith negotiation for an exclusive license.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 LICENSEE has provided REGENTS with a commercialization plan for the INVENTIONS and business strategy in order
to evaluate its capabilities as a LICENSEE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 The development of the INVENTIONS was sponsored in part by various grants by U.S. Government agencies, and as a
consequence, REGENTS elected to retain title to the INVENTION subject to the rights of the U.S. Government under 35 U.S.C. 200-212 and implementing regulations, including that REGENTS, in turn, has granted
back to the U.S. Government a non-exclusive, non-transferable irrevocable, paid-up license to practice or have practiced the
INVENTIONS for or on behalf of the U.S. Government throughout the world. The U.S. Government grants are National Science Foundation Contract No. 1244557 and the Department of Energy Contract No. DE-AC02-05CH11231.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 REGENTS and LICENSEE wish to have the INVENTIONS perfected and marketed as soon as possible so that products
resulting therefrom may be available for public use and benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 LICENSEE wishes to acquire a license under REGENTS' PATENT RIGHTS for the purpose of undertaking
development and to manufacture, use, SELL, offer for SALE and import LICENSED PRODUCTS as defined below.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 The parties entered into an exclusive license agreement with an effective date of September 25, 2018,
pursuant to which REGENTS granted LICENSEE an exclusive license under the REGENTS' PATENT RIGHTS (the "Original Agreement") and the parties now wish to amend and restate the Original Agreement for the purposes of modifying certain
provisions of the Original Agreement.

**2.** **DEFINITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 "AFFILIATE" of LICENSEE means any entity that, directly or indirectly, CONTROLS LICENSEE, is
CONTROLLED by LICENSEE, or is under common CONTROL with LICENSEE. "CONTROL" means (i) having the actual, present capacity to elect a majority of the directors of such AFFILIATE, (ii) having the power to direct at least fifty
percent (50%) of the voting rights entitled to elect directors, or (iii) in any country where the local law will not permit foreign equity participation of a majority, ownership or CONTROL, directly or indirectly, of the maximum percentage of
such outstanding stock or voting rights permitted by local law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 "CASX LICENSED PRODUCT" means, in respect of any LICENSED PRODUCTS, LICENSED SERVICES, or LICENSED
METHOD, such a product, service or method covered by a VALID CLAIM of at least one REGENTS' PATENT RIGHT described in subparagraph 2.19(a) (or subparagraph 2.19(c) in relation to (a)), subparagraph 2.19(e) (or subparagraph (f) in relation
to (e), and subparagraph (g) (or subparagraph (h) in relation to (g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 "CASY LICENSED PRODUCT" means, in respect of any LICENSED PRODUCTS, LICENSED SERVICES, or LICENSED
METHOD, such a product, service or method covered by a VALID CLAIM of at least one REGENTS' PATENT RIGHT described in Paragraph 2.19(b) (or subparagraph 2.19(d) in relation to (b)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 "COMBINATION PRODUCT" means any product which is a LICENSED PRODUCT (as defined below) and contains
other products or product components (each, a "COMPONENT") that is not an excipient, diluent, adjuvant, buffer and the like 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) such COMPONENT is not itself a LICENSED PRODUCT;

&nbsp;&nbsp;&nbsp;&nbsp;&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 sale, use or import of such COMPONENT by itself does not contribute to or induce the infringement of REGENTS' PATENT RIGHTS; (iii) is sold separately by LICENSEE or its SUBLICENSEES (as defined below); and (iv) enhances the market value of the final LICENSED PRODUCTS sold, used or imported by LICENSEE or its SUBLICENSEE

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 "COMMERCIALLY REASONABLE EFFORTS" means, with respect to the efforts to be expended by a
SUBLICENSEE and/or their respective AFFILIATES with respect to any development objective, activity, or goal related to a LICENSED PRODUCT and/or LICENSED SERVICE, [\*]. COMMERCIALLY REASONABLE EFFORTS will be determined [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 "DEEMED LIQUIDATION EVENT" means the earlier to occur of the following unless the REGENTS elect
otherwise, at its sole discretion, by written notice sent to the LICENSEE at least [\*] prior to the effective date of any such event: (a) a merger or consolidation in which (i) the LICENSEE is a constituent party or (ii) a subsidiary
of the LICENSEE is a constituent party and the LICENSEE issues shares of its capital stock pursuant to such merger or consolidation, except in each the case of (i) and (ii) any such merger or consolidation involving the LICENSEE or a subsidiary
in which the shares of capital stock of the LICENSEE outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock that represent, immediately following such
merger or consolidation, at least a majority, by voting power, of the capital stock of (1) the surviving or resulting corporation; or (2) if the surviving or resulting corporation is a wholly owned subsidiary of another corporation
immediately following such merger or consolidation, the parent corporation of such surviving or resulting corporation; or (b) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related
transactions, by the LICENSEE or any subsidiary of the LICENSEE of all or substantially all the assets of the LICENSEE and its subsidiaries taken as a whole, or the sale or disposition (whether by merger, consolidation or otherwise) of one or more
subsidiaries of the LICENSEE if substantially all of the assets of the LICENSEE and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to
a wholly owned subsidiary of the LICENSEE or (c) the purchase by a person from the security holders of the LICENSEE of shares of capital stock of the LICENSEE representing 50% or more of the voting stock of the LICENSEE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 "EXCLUSIVE LICENSED FIELD OF USE" means the treatment and prevention of human diseases, excluding
the treatment and prevention of human infectious viral diseases and excluding diagnostic applications. For clarity, independent of the license granted in this AGREEMENT, nothing in this AGREEMENT prevents LICENSEE from developing and commercializing
products, methods and services (that are not LICENSED PRODUCTS, LICENSED METHODS, OR LICENSED SERVICES) in the field of companion diagnostics for use with the LICENSED PRODUCTS.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 "FIRST QUALIFIED ROUND" means the earlier of (a) the LICENSEE's actual receipt of
cumulative cash funding in the amount of [\*] in the aggregate from equity financing (excluding convertible debt financing) from third party investors and consummated with the principle purpose of raising capital (a "FINANCING"); or
(b) at the REGENT'S sole discretion such time as of immediately prior to (i) the consummation of a DEEMED LIQUIDATION EVENT or (ii) closing of the LICENSEE's first firm commitment underwritten initial public offering of
common stock pursuant to a registration statement filed under the Securities Act of 1933, as amended, or similar filing in a foreign market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 "FOUNDERS STOCK" means those shares granted to the original founders of the LICENSEE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 "FULLY-DILUTED BASIS" shall mean the total number of shares of the LICENSEE's stock on an as
converted to common stock basis, and shall be calculated to include all: (a) outstanding shares of common stock; (b) outstanding securities convertible into or exchangeable for common stock, whether or not then convertible or exchangeable,
including without limitation shares of preferred stock, convertible debt or notes, subscriptions, rights, options and warrants to purchase shares of common stock from the LICENSEE, whether or not then exercisable, and shall assume the issuance or
grant of all securities reserved for issuance pursuant to any LICENSEE stock or stock option plan in effect on the date of the calculation (as well as the full amount of any stock or stock option plan increases to occur in connection with any FIRST
QUALIFIED ROUND, provided that any such increase occurs prior to, or concurrently with, the closing of the FIRST QUALIFIED ROUND) (collectively, "Convertible Securities"); and (c) securities convertible into or exchangeable or
exercisable for Convertible Securities and any such underlying Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 "HUMANITARIAN PURPOSES" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the use of LICENSED PRODUCTS and LICENSED SERVICES for research and development purposes by any nonprofit
organization or other third party, anywhere in the world that has the express purpose of developing the LICENSED PRODUCTS or LICENSED SERVICES for use solely for protection from, treatment of, or diagnosis of Neglected Diseases in a Low- or Middle-income country as that term is defined by the World Bank, but excluding China, India, Mexico, Argentina or Brazil (hereinafter "LMI COUNTRY(IES)"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SALE of LICENSED PRODUCTS and LICENSED SERVICES in LMI COUNTRIES at or below the cost of manufacture and
distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 "LICENSED METHOD" means any process or method the use or practice of which, but for the license
pursuant to this AGREEMENT, would infringe any VALID CLAIM under REGENTS' PATENT RIGHTS in that country in which the LICENSED METHOD is used or practiced.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 "LICENSED PRODUCTS" means all kits, compositions of matter, articles of manufacture, materials, and
products, the manufacture, use, SALE, offer for SALE, or import of which: a) would require the performance of the LICENSED METHOD; or b) but for the license granted pursuant to this AGREEMENT, would infringe a VALID CLAIM under REGENTS' PATENT
RIGHTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 "LICENSED SERVICE" means a service provided using LICENSED PRODUCTS or LICENSED METHOD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 "LICENSED TERRITORY" means worldwide including the US, its territories and possessions and any
other countries in which REGENTS' PATENT RIGHTS exist now or in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 "NET SALES" means the gross invoice price charged, and the value of non-cash consideration owed to, or due LICENSEE or a SUBLICENSEE for SALES of LICENSED PRODUCTS, LICENSED SERVICES, and LICENSED METHODS, the less the sum of the following actual and customary deductions where
applicable: [\*]. For purposes of calculating NET SALES, a SALE to a SUBLICENSEE for end use by the SUBLICENSEE will be treated as a SALE at list price. For clarity, in the event LICENSED SERVICES are offered as a part of a research collaboration,
then NET SALES will not include amounts charged by LICENSEE at cost (such costs to be documented by LICENSEE), but any amount above the at cost amount shall be included in NET SALES and all such amounts shall be included in the royalty report.

In the event that LICENSEE, its' SUBLICENSEE or their respective AFFILIATES, contracts with a reseller, wholesaler, or distributor ("SELLING PARTY") to sell LICENSED PRODUCTS to third-party end users, NET SALES shall be calculated based on LICENSEE, its' SUBLICENSEE or their respective AFFILIATES initial SALE of LICENSED PRODUCTS to the SELLING PARTY, provided that such SALE shall be that which would have been received in an arm's length transaction with unrelated third parties, based on SALES of like quantity and quality products on or about the time of the SALE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 "NON-EXCLUSIVE LICENSED FIELD OF USE" means research,
development and commercialization of research products and research tools, and agriculture, veterinary, industrial bio-production and environmental applications, all specifically excluding diagnostic
applications. For clarity, independent of the license granted in this AGREEMENT, nothing in this AGREEMENT prevents LICENSEE from developing and commercializing products, methods and services (that are not LICENSED PRODUCTS, LICENSED METHODS, OR
LICENSED SERVICES) in the field of companion diagnostics for use with the LICENSED PRODUCTS.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 "ORPHAN DRUG" means a drug or biologic intended for the safe and effective treatment, diagnosis or
prevention of rare diseases/disorders that affect fewer than 200,000 people in the U.S and has received orphan drug designation by the U.S. Food and Drug Administration ("FDA").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 "REGENTS' PATENT RIGHTS" means REGENTS' rights in the claims of the following patents
and patent applications:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 "SALE" means, for LICENSED PRODUCTS and LICENSED SERVICES, the act of selling, leasing or otherwise
transferring, providing, or furnishing such product or service, and for LICENSED METHOD the act of performing such method, for any use or for any consideration. Correspondingly, "SELL" means to make or cause to be made a SALE, and
"SOLD" means to have made or caused to be made a SALE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 "SUBLICENSE" means any transaction with a third party in which LICENSEE: (a) grants, transfers
or agrees not to assert any of the rights licensed to LICENSEE hereunder, or (b) is under an obligation to grant or transfer such rights or to forebear from granting or transferring such rights, including by means of an option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 "SUBLICENSE INCOME" means all consideration received by LICENSEE in consideration for a sublicense
granted under REGENTS' PATENT RIGHTS, other than [\*]. In the event that other non-cash consideration (other than the issuance and sale of equity or debt securities) is received as SUBLICENSE INCOME,
SUBLICENSE INCOME shall be calculated based on the fair market value of such non-cash consideration. For the avoidance of doubt, SUBLICENSE INCOME does not include any payment or other consideration for equity
or securities of LICENSEE on acquisition of all or substantially all of the assets or business of LICENSEE that includes the assignment of the license agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 "SUBLICENSEE" means any third party, including AFFILIATES, granted a SUBLICENSE to all or any
portion of REGENTS' PATENT RIGHTS, but excluding any contract manufacturing organization or contract research organization acting solely on behalf of LICENSEE or SUBLICENSEE and, for clarity, not selling LICENSED PRODUCTS or LICENSED SERVICES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 "VALID CLAIM" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. a valid claim of any issued, unexpired patent within the REGENTS' PATENT RIGHTS. A claim within
REGENTS' PATENT RIGHTS shall be presumed to be valid unless and until it has been held to be invalid by a final judgment of a court of competent jurisdiction from which no appeal can be or is taken; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. any claim in a pending patent application included within the REGENTS' PATENT RIGHTS that has not been
abandoned or has not been finally rejected without the possibility of appeal or refiling that has not been pending for more than [\*] years from [\*].

**3.** **GRANT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Subject to the limitations set forth in this AGREEMENT, including the license granted to the U.S. Government
and the rights reserved in Paragraph 3.3, REGENTS hereby grants and LICENSEE hereby accepts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) an exclusive license under REGENTS' PATENT RIGHTS to make, have made, use, have used, offer for SALE,
import, and SELL LICENSED PRODUCTS and LICENSED SERVICES, and to practice LICENSED METHODS, in the EXCLUSIVE LICENSED FIELD OF USE in the LICENSED TERRITORY(IES); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) a non-exclusive license under REGENTS' PATENT RIGHTS to make,
have made, use, have used, offer for SALE, import, and SELL LICENSED PRODUCTS and LICENSED SERVICES, and to practice LICENSED METHODS in the NON-EXCLUSIVE LICENSED FIELD OF USE in the LICENSED TERRITORY(IES).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The license under Paragraph 3.1 will be for a term commencing on the Effective Date and ending on the date of
the last-to-expire VALID CLAIM under REGENTS' PATENT RIGHTS.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Nothing in this AGREEMENT will be deemed to limit the right of REGENTS to publish any and all technical data
resulting from any research performed by REGENTS relating to the INVENTIONS, and to make and use the INVENTIONS, LICENSED PRODUCTS, and LICENSED SERVICES and practice LICENSED METHOD and associated technology and to allow other educational and non-profit institutions to do so for educational and research purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 LICENSEE will have a continuing responsibility to keep REGENTS informed of the large/small entity status, as
defined in 15 U.S.C. §632, of itself and its SUBLICENSEES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 The INVENTIONS were funded in part by the U.S. Government. In accordance with PL 96-517 as amended by PL 98-620, to the extent required by law or regulation, any products covered by patent applications or patents claiming the INVENTIONS and SOLD in
the United States will be substantially manufactured in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 The licenses granted hereunder also will be subject to HHMI's Research Use License.

**4.** **SUBLICENSES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 REGENTS also grants to LICENSEE the right to SUBLICENSE to AFFILIATES and third parties the right to make, have
made, use, have used, offer for SALE, import, and SELL LICENSED PRODUCTS and LICENSED SERVICES, and to practice LICENSED METHOD within the EXCLUSIVE LICENSED FIELD OF USE, provided that LICENSEE has exclusive rights under this AGREEMENT within the
EXCLUSIVE LICENSED FIELD OF USE at the time of sublicensing. Every such SUBLICENSE will include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a statement setting forth the date upon which LICENSEE's rights, privileges, and license hereunder will
expire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as applicable, all the rights of, and require the performance of all the obligations due to, REGENTS and HHMI
(and, if applicable, the United States Government) under this AGREEMENT other than those rights and obligations specified in Article 5 (License Issue Fee) and Paragraph 6.6 (minimum annual royalty);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a provision requiring payment of royalties to LICENSEE in an amount sufficient to permit LICENSEE to meet its
royalty obligations to REGENTS at the rates and bases set forth in this AGREEMENT;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the same provision for indemnification of REGENTS and HHMI as has been provided for in this AGREEMENT, and
terms and conditions that are substantially similar to those undertaken by LICENSEE regarding insurance and HHMI's third party beneficiary status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 For any SUBLICENSE, LICENSEE will pay to REGENTS, [\*] in which SUBLICENSE INCOME is received by LICENSEE:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*] of such SUBLICENSE INCOME received with respect to a SUBLICENSE executed prior to [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*] of such SUBLICENSE INCOME received with respect to a SUBLICENSE executed on or after [\*] and prior to [\*];
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*] of such SUBLICENSE INCOME received with respect to a SUBLICENSE executed on or after [\*].

For the avoidance of doubt, in the event (1) a SUBLICENSE transfers rights under this AGREEMENT; and (2) the same such SUBLICENSE also transfers rights owned by LICENSEE or granted to LICENSEE by a third party, LICENSEE shall pay to REGENTS the above percentages of all SUBLICENSE INCOME received by LICENSEE under such SUBLICENSE [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 LICENSEE will notify REGENTS of each SUBLICENSE granted hereunder and furnish to REGENTS a copy of each
SUBLICENSE granted by LICENSEE, which copy may be redacted to exclude terms and conditions that are not required for REGENTS to ensure compliance of the SUBLICENSE with this AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 AFFILIATES will have no licenses under REGENTS' PATENT RIGHTS except as granted by SUBLICENSE pursuant to
this AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 For the purposes of this AGREEMENT, the operations of all SUBLICENSEES shall be deemed to be the operations of
LICENSEE, for which LICENSEE shall be responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 LICENSEE will collect and guarantee payment of all monies and other consideration due REGENTS from
SUBLICENSEES, and deliver all reports due REGENTS and received from SUBLICENSEES.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 Upon termination of this AGREEMENT for any reason, all SUBLICENSES that are granted by LICENSEE pursuant to
this AGREEMENT where the SUBLICENSEE is in compliance with its SUBLICENSE AGREEMENT as of the date of such termination will remain in effect (unless such SUBLICENSEE requests the termination of such SUBLICENSE by written notice to REGENTS), on terms
and conditions to be negotiated between REGENTS, consistent with the terms and conditions of this AGREEMENT. The SUBLICENSE will be assigned to REGENTS with respect only to the REGENTS PATENT RIGHTS, except that REGENTS will not be bound to perform
any duties or obligations set forth in any SUBLICENSEs that extend beyond the duties and obligations of REGENTS set forth in this AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 If REGENTS (to the extent of the actual knowledge of the licensing professional responsible for administration
of this case) or a third party discovers and notifies that licensing professional that the INVENTIONS is useful for an application covered by the EXCLUSIVE LICENSED FIELD OF USE for HUMANITARIAN PURPOSES ("New Application"), but for
which LICENSED PRODUCTS have not been developed or are not currently under development by LICENSEE, then REGENTS, as represented by the Office of Technology Licensing, shall give written notice to LICENSEE of the New Application and, if available to
such licensing profession, any written scientific, safety and commercial evidence demonstrating the commercial opportunity for the New Application, except for: 1) information that is subject to restrictions of confidentiality with third parties, and
2) information which originates with REGENTS' personnel who do not assent to its disclosure to LICENSEE.

LICENSEE shall have [\*] to give REGENTS written notice stating whether LICENSEE or SUBLICENSEE elects to develop LICENSED PRODUCTS for the New Application.

If LICENSEE or SUBLICENSEE elects to develop and commercialize the proposed LICENSED PRODUCTS for the new application, LICENSEE shall submit progress reports to REGENTS pursuant to Article 8.

If LICENSEE or SUBLICENSEE elects not to develop and commercialize the proposed LICENSED PRODUCTS for use in the New Application, REGENTS may seek (a) third party(ies) to develop and commercialize the proposed LICENSED PRODUCTS for the new application. If REGENTS is successful in finding a third party, it shall refer such third party to LICENSEE, and LICENSEE will negotiate in good faith to enter into an agreement with such third party for the development and commercialization of the LICENSED PRODUCT in such New Application. If the request results in a SUBLICENSE, then LICENSEE shall report it to REGENTS pursuant to Paragraph 4.3.

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If LICENSEE (i) receives a bona fide offer from such third party, on terms that reflect fair market value for the rights to be granted; (ii) the third party has submitted a bona fide commercialization plan for the New Application; (iii) REGENTS and LICENSEE have agreed in writing that development of the New Application as planned will not adversely affect current or anticipated development and commercialization of LICENSED PRODUCTS and LICENSED SERVICES including, without limitation, obtaining regulatory approval for LICENSED PRODUCTS for anticipated indications of use; and (iv) and LICENSEE refuses to grant a SUBLICENSE to the third party, then [\*] after such refusal LICENSEE shall submit to REGENTS a report specifying the license terms proposed by the third party and a written justification for LICENSEE's refusal to grant the proposed SUBLICENSE. If REGENTS, at its sole discretion, determines that the terms of the SUBLICENSE proposed by the third party are reasonable under the totality of the circumstances, taking into account LICENSEE's LICENSED PRODUCTS in development, then REGENTS shall have the right to grant to the third party a license to make, have made, use, SELL, offer for sale and import products for use in the LICENSED FIELD OF USE at substantially the same terms last proposed to LICENSEE by the third party providing royalty rates are at least equal to those paid by LICENSEE.

**5.** **LICENSE ISSUE FEE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 LICENSEE has paid to REGENTS a non-creditable, non-refundable license issue fee as follows (it being acknowledged and agreed that the obligations under this Paragraph 5.1a-d have been fully paid and satisfied prior to the
execution of this AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) [\*] paid upon signing of the Original Agreement (this fee is non-refundable and not an advance against royalties or other payments due under this AGREEMENT);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) As partial consideration for the exclusive license granted hereunder, in connection with the LICENSEE'S
FIRST QUALIFIED ROUND, LICENSEE has issued and delivered to the REGENTS' nominee, Shellwater & Co., [\*] following the close of such FIRST QUALIFIED ROUND, a total of fully paid and nonassessable shares of common stock of LICENSEE
equal to [\*] pursuant to a stock purchase agreement in the form attached hereto as APPENDIX B.

The REGENTS may transfer or direct LICENSEE to issue an inventor share portion under REGENTS' patent policy of the [\*] otherwise due to the REGENTS to the REGENTS' inventors of Regents' Patent Rights [\*];

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) The receipt of securities of the LICENSEE is subject to approval by the REGENTS' Office of the President.
If approval to accept equity in LICENSEE is not granted or licensee fails to reach a FIRST QUALIFIED ROUND then the parties will negotiate in good faith towards alternate consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) LICENSEE has provided to the REGENTS: (i) upon the EFFECTIVE DATE a detailed capitalization table
indicating the total number of securities of the LICENSEE on a FULLY-DILUTED BASIS on the EFFECTIVE DATE, (ii) upon the FIRST QUALIFIED ROUND, a detailed capitalization table indicating the total number of securities of the LICENSEE on a
FULLY-DILUTED BASIS immediately prior and immediately following to the consummation or closing of the FIRST QUALIFIED ROUND, (iii) thereafter, upon [\*] prior written request of the REGENTS, an up to date detailed capitalization table indicating
the total number of securities of the LICENSEE on a FULLY-DILUTED BASIS, and (iv) in connection with each issuance of securities to the REGENT's, a stock certificate reflecting the shares of common stock of LICENSEE issued pursuant to the
terms of this Paragraph 5.1, shall be issued to the REGENT'S nominee [\*] following the close of the FIRST QUALIFIED ROUND or other event resulting in the right of the REGENTS to receive shares of LICENSEE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) LICENSEE hereby represents, warrants and covenants that (i) the consummation of the issuance of shares of
common stock of LICENSEE pursuant to the terms of this Paragraph 5.1 will not result in any antidilution adjustment or other similar adjustment to any securities (including, without limitation, any Convertible Securities) of LICENSEE and that no
holder of securities (including, without limitation, any Convertible Securities) of LICENSEE has, or will have, a right to participate in the issuance of such shares of common stock to the REGENTS, and (ii) the LICENSEE has duly and validly
reserved shares of LICENSEE's common stock (as may be appropriately adjusted for stock splits, combinations, recapitalizations and the like) solely for issuance to the REGENTS pursuant to the terms of this Paragraph 5.1,

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and LICENSEE reasonably believes that the aforementioned shares of common stock to be reserved for future issuance shall be sufficient to meet the LICENSEE's obligations to the REGENTS under this Paragraph 5.1. LICENSEE covenants and agrees to use its best efforts to cause any additional shares of common stock that may be required to fulfill LICENSEE's obligations to the REGENTS pursuant to this Paragraph 5.1 to be duly authorized and validly reserved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The REGENTS shall be entitled to the rights under Section 4.1 of the Investors Rights Agreement attached
hereto as Exhibit [__], as may be amended from time to time (the "Rights Agreement"), as if the REGENTS were a "Major Investor" (as defined therein) regardless of any shareholding thresholds, and subject to the amendments and
waivers provisions of Section 6.6 of the Rights Agreement, provided that LICENSEE may not change the definition of "Major Investor" so as to exclude the REGENTS without obtaining the prior written consent of the REGENTS, to be
provided at its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) LICENSEE will send any written notice required pursuant to this Paragraph 5.1, in accordance with the
notification terms set forth in Article 23 of this AGREEMENT such notification and all other information required by this Paragraph 5.1 marked "URGENT" to (1) [\*], The Regents of the University of California, Office of the Chief
Investment Officer, 1111 Broadway, Suite 2100, Oakland, CA 94607-5200, and (2) Director, Office of Technology Licensing, 2150 Shattuck Ave., Suite 510, Berkeley, CA 94704-1347 with a copy via pdf, that does not constitute notice, to [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The obligations of LICENSEE set forth in this Paragraph 5.1 shall survive any termination or expiration of this
AGREEMENT by either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 As partial consideration for the REGENTS' execution of this AMENDED AND RESTATED EXCLUSIVE LICENSE
AGREEMENT, promptly following the Amended and Restated Exclusive License Agreement Effective Date, LICENSEE will:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue and deliver to the REGENTS' nominee, Shellwater & Co., a warrant [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pay to REGENTS a non-creditable, non-refundable license fee, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. [\*].

**6.** **ROYALTIES, MAINTENANCE FEES, MINIMUM ANNUAL ROYALTIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 LICENSEE will pay to REGENTS earned royalties at the rate of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*] of the NET SALES of LICENSED PRODUCTS, LICENSED SERVICES, and LICENSED METHODS in the EXCLUSIVE LICENSED
FIELD OF USE and in the NON-EXCLUSIVE LICENSED FIELD OF USE, except for agriculture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*] of the NET SALES of LICENSED PRODUCTS, LICENSED SERVICES and LICENSED METHODS in the NON-EXCLUSIVE LICENSED FIELD OF USE of agriculture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*] of the NET SALES of LICENSED PRODUCTS, LICENSED SERVICES and LICENSED METHODS sold by a SUBLICENSEE or its
AFFILIATES [\*].

No royalties will be payable for SALES: 1) for free or at cost (with no other consideration provided to in exchange for such SALES) solely for HUMANITARIAN PURPOSES; or 2) of LICENSED PRODUCTS as samples to prospective customers for free or at cost in order to provide an incentive to such customers for a period of [\*] from the date a LICENSED PRODUCT is first offered for sale in the EXCLUSIVE LICENSED FIELD OF USE or the NON-EXCLUSIVE LICENSED FIELD OF USE.

6.2 (a)In the event LICENSEE is required to license from one or more third party(ies) (or the REGENTS if licensing
additional patents and patent applications managed by UC Berkeley) in order to produce a LICENSED PRODUCT, provide a LICENSED SERVICE or practice a LICENSED METHOD and LICENSEE obtains such a license, and the cumulative sum of earned royalties to be
paid by LICENSEE to such third party(ies) and REGENTS hereunder would exceed [\*] in the EXCLUSIVE LICENSED FIELD OF USE and the NON-EXCLUSIVE LICENSED FIELD OF USE, except for agriculture applications, or [\*]
in the NON-EXCLUSIVE LICENSED FIELD OF USE for agriculture applications, as the case may be, then LICENSEE shall have the right to deduct [\*] of such royalty actually paid to such third party(ies) and REGENTS
from the earned royalty payable to REGENTS in the calendar quarter in which such royalty is payable. Notwithstanding anything to the contrary, in no case shall earned royalties due on REGENTS' PATENT RIGHTS be less than [\*] of those stated in
Paragraph 6.1. Any offset of the earned royalty shall be included in each royalty report; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event LICENSEE sells a COMBINATION PRODUCT, the earned royalty due on NET SALES of the COMBINATION PRODUCT by LICENSEE or such SUBLICENSEE shall be calculated by [\*]. However, notwithstanding anything to the contrary, in no case shall earned royalties due on REGENTS' PATENT RIGHTS be less than [\*] of those stated in Paragraph 6.1. Any offset of the earned royalty shall be included in each royalty report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Royalties will be payable on SALES covered by both pending patent applications and issued patents included in
VALID CLAIMS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Royalties accruing to REGENTS will be paid to REGENTS quarterly [\*] after the end of each calendar quarter. For
any royalties due on NET SALES by SUBLICENSEE, LICENSEE shall submit such royalty payments to REGENTS [\*] after LICENSEE receives the payment from such SUBLICENSEE. [\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 LICENSEE will pay to REGENTS an annual license maintenance fee of [\*] on the [\*] anniversary date of the
Effective Date and on each anniversary of the Effective Date thereafter. Notwithstanding the foregoing, the license maintenance fee will not be due and payable on any anniversary of the Effective Date, if on such date the LICENSEE is selling
LICENSED PRODUCTS or LICENSED METHODS, and LICENSEE pays an earned royalty greater than the minimum [\*] royalty or a minimum annual royalty to REGENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 Beginning in the [\*] after the first occurrence of SALES, when such cumulative SALES are in excess of [\*], but
in no event later than [\*] after a first commercial SALE, and in each succeeding [\*] thereafter, LICENSEE will pay to REGENTS a minimum [\*] royalty as follows for the life of this AGREEMENT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [\*].

This minimum [\*] royalty will be paid to REGENTS by [\*] and will be credited against any earned royalty due and owing for the [\*] in which the minimum payment is made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 All payments due REGENTS will be payable in United States dollars. When LICENSED PRODUCTS, LICENSED SERVICES,
or LICENSED METHOD are SOLD for monies other than United States dollars, earned royalties will first be determined in the foreign currency of the country in which the SALE was made and then converted into equivalent United States dollars. The
exchange rate will be that rate quoted in the *Wall Street Journal* on the last business day of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 Payments due for SALES occurring in any country outside the United States will not be reduced by any taxes,
fees, or other charges imposed by the government of such country on the remittance of royalty income. LICENSEE will also be responsible for all bank transfer charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 LICENSEE will make all payments under this AGREEMENT by check or electronic funds transfer payable to
"REGENTS of the University of California" and forward it to REGENTS at the address shown in Article 23 (Notices).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 If any patent or patent application, or any claim thereof, included within REGENTS' PATENT RIGHTS expires
or is held invalid in a final decision by a court of competent jurisdiction and last resort and from which no appeal has been or can be taken, all obligation to pay royalties based on such patent, patent application or claim, or any claims
patentably indistinct therefrom will cease as of the date of such expiration or final decision. LICENSEE will not, however, be relieved from paying any royalties that accrued before such expiration or decision or that are based on another valid
patent or claim not expired or involved in such decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 No earned royalties will be collected or paid hereunder on SALES to, or for use by, the United States
Government. LICENSEE will not include the amount charged for such SALES in the calculation of earned royalty otherwise due REGENTS as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 LICENSEE shall pay the following milestone payments set forth in this Paragraph with respect to the LICENSED
PRODUCT(S) to achieve each milestone event, regardless of whether such milestone event is achieved by LICENSEE, an AFFILIATE of LICENSEE or by a SUBLICENSEE:

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---

| | |
|:---|:---|
| **Milestone event** | **Milestone payment** |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |

---

LICENSEE shall make the appropriate milestone payment (as set forth in the table above) as follows: (a) [\*] after the achievement of the applicable milestone event by LICENSEE or its AFFILIATE or (b) if the milestone event is achieved by a SUBLICENSEE or its AFFILIATE, [\*] after LICENSEE receives the milestone payment from such SUBLICENSEE or AFFILIATE (for clarity, if such milestone payment is not provided for in the applicable SUBLICENSE, LICENSEE shall pay such milestone payment in accordance with the preceding sub-clause (a)). Notwithstanding anything to the contrary, if the LICENSED PRODUCT is [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 LICENSEE shall pay the following sales milestone payments set forth in this Paragraph with respect to each
LICENSED PRODUCT to achieve each milestone event, regardless of whether such milestone event is achieved by LICENSEE, an AFFILIATE of LICENSEE or by a SUBLICENSEE, or a combination thereof:

---

| | |
|:---|:---|
| **SALES Milestone events** | **SALES Milestone payments** |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |

---

------

LICENSEE shall make the appropriate milestone payment (as set forth in the table above) as follows: (a) [\*] after the achievement of the applicable milestone event by LICENSEE or its AFFILIATE or (b) if the milestone event is achieved by a SUBLICENSEE or its AFFILIATE, [\*] after LICENSEE receives the milestone payment from such SUBLICENSEE or AFFILIATE (for clarity, if such milestone payment is not provided for in the applicable SUBLICENSE, LICENSEE shall pay such milestone payment in accordance with the preceding sub-clause (a)).

For clarity, the Milestone payment due for [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 Earned Royalty if LICENSEE or the SUBLICENSEE or any of their respective AFFILIATES challenges any
REGENTS' PATENT RIGHTS:

Notwithstanding the above, should LICENSEE or the SUBLICENSEE or any of their respective AFFILIATES bring an action seeking to invalidate any REGENTS' PATENT RIGHTS,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LICENSEE or the SUBLICENSEE or any of their respective AFFILIATES will pay royalties to REGENTS at the rate of
[\*],

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LICENSEE or the SUBLICENSEE will have no right to recoup any royalties paid before or during the period
challenge,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any dispute regarding the validity of any REGENTS' PATENT RIGHTS shall be litigated in the courts located
in California, and the parties agree not to challenge personal jurisdiction in that forum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) LICENSEE or the SUBLICENSEE will provide written notice to REGENTS after deciding to bring an action seeking to
invalidate any REGENTS' PATENT RIGHTS at least [\*] prior to bringing such action. LICENSEE or the SUBLICENSEE will include with such written notice an identification of all prior art it believes invalidates any claim of REGENTS' PATENT
RIGHTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 In the event that more than one VALID CLAIM within the REGENTS' PATENT RIGHTS is applicable to any
LICENSED PRODUCTS and/or LICENSED SERVICE subject to royalties under this Article 6, then only one royalty shall be paid to REGENTS in respect of such LICENSED PRODUCT and/or LICENSED SERVICE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16 For the purposes of calculating the amount of SUBLICENSE INCOME in accordance with Article 4.2, the SUBLICENSE
INCOME received by LICENSEE for achievement of any of the foregoing milestone events shall be reduced by the amount of the milestone payment made by LICENSEE to REGENTS in respect of same.

------

**7.** **DUE DILIGENCE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 LICENSEE, upon execution of this AGREEMENT, will diligently proceed with the development, manufacture, and SALE
of LICENSED PRODUCTS, LICENSED SERVICES, and LICENSED METHOD, and will diligently market them in quantities sufficient to meet the market demand. Should there be a Regulatory Cause (defined below) for a LICENSED PRODUCT in the EXCLUSIVE LICENSED
FIELD OF USE, the parties shall meet to discuss any extension for LICENSEE of this Paragraph 7.1, but in no event shall LICENSEE cease the development, manufacture or SALE (if SALES are applicable) for longer than [\*], provided that the foregoing
shall not be construed as requiring LICENSEE to conduct development, manufacture or SALE activities if LICENSEE is not permitted to do so by applicable laws or regulations in a country where such development, manufacture or SALE takes place (such as
a regulatory hold or a manufacturing hold). It is understood that LICENSEE may meet the obligations set forth in this Paragraph 7.1 and Paragraph 7.2 through SUBLICENSEES but, as long as LICENSEE requires each such SUBLICENSEE to use COMMERCIALLY
REASONABLE EFFORTS with respect to the development of LICENSED PRODUCTS, this Paragraph 7.1 and Paragraph 7.2 shall not apply to SUBLICENSEES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 In addition to its obligations under Paragraph 7.1, LICENSEE specifically commits to achieving the following
milestones in its due diligence activities under this AGREEMENT:

---

| | |
|:---|:---|
| **Diligence Milestones** | **Date to achieve Diligence Milestones** |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 If LICENSEE is unable to meet any of its diligence obligations set forth in Paragraphs 7.1 and 7.2, then
REGENTS will so notify LICENSEE of failure to perform. LICENSEE will have the right and option to extend the target date of any such due diligence obligation (and all subsequent diligence obligations) for a period of [\*] upon the payment of [\*] of
the date to be extended for each such extension option exercised by LICENSEE. LICENSEE may further extend the target date of any diligence obligation (and all subsequent diligence obligations) for an additional [\*] upon payment of an additional [\*].
Thereafter, if the LICENSEE is unable to timely complete the diligence milestones, after consultation with its regulatory advisors and with regulatory agencies, because a safety, technical, or efficacy reason is outside the reasonable control of
LICENSEE ("Regulatory Cause") to allow completion of such milestone, then the LICENSEE will promptly provide reasonable documentation supporting the Regulatory Cause and consult with REGENTS with respect to such determination. The
LICENSEE shall be granted an additional [\*] extension, provided that LICENSEE provides to REGENTS documentation outlining its efforts and supporting the diligence of such efforts to resolve the Regulatory Cause. Additional extensions may be granted
only by mutual written AGREEMENT of the parties to this AGREEMENT. These payments are in addition to the minimum royalty payments specified in Paragraph 6.6. Should LICENSEE opt not to extend the obligation or fail to meet it by the extended target
date, then REGENTS will have the right to terminate this AGREEMENT or to reduce LICENSEE's exclusive license to a non-exclusive royalty-bearing license, at REGENTS' option. This right, if exercised
by REGENTS, supersedes the rights granted in Article 3. The right to terminate this AGREEMENT or reduce LICENSEE's exclusive license granted hereunder to a non-exclusive license will be REGENTS'
sole remedy for breach of Paragraph 7.1 or 7.2. Notwithstanding anything to the contrary hereunder, to the extent a SUBLICENSEE is in compliance with the applicable SUBLICENSE, no such termination or reduction shall affect the rights of such
SUBLICENSEE under such SUBLICENSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 At the request of either party, any controversy or claim arising out of or relating to the diligence provisions
of Paragraphs 7.1 and 7.2 will be settled by arbitration conducted in San Francisco, California in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association. Judgment upon the award rendered by the
arbitrator(s) will be binding on the parties and may be entered by either party in the court or forum having jurisdiction. In determination of due diligence, the arbitrator may determine solely the issues of fact or law with respect to termination
of LICENSEE's rights under this AGREEMENT but will not have the authority to award monetary damages or grant equitable relief. Notwithstanding the foregoing, no dispute affecting the rights or property of HHMI shall be subject to the
arbitration provisions set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 To exercise either the right to terminate this AGREEMENT or to reduce the license to a non-exclusive license for lack of diligence under Paragraph 7.1 or 7.2, REGENTS will give LICENSEE written notice of the deficiency. LICENSEE thereafter has [\*] to cure the deficiency or to request arbitration. If
REGENTS has not received a written request for arbitration or satisfactory tangible evidence that the deficiency has been cured by the end of the [\*] period, then REGENTS may, at its option, either terminate the AGREEMENT or reduce LICENSEE's
exclusive license to a non-exclusive license by giving written notice to LICENSEE (subject to the last sentence of Paragraph 7.3). These notices will be subject to Article 23 (Notices).

------

**8.** **PROGRESS AND ROYALTY REPORTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 For the period beginning [\*], LICENSEE will submit to REGENTS a semi-annual progress report covering
LICENSEE's activities related to the development and testing of all LICENSED PRODUCTS, LICENSED SERVICES and LICENSED METHOD and the obtaining of necessary governmental approvals, if any, for marketing in the United States. These progress
reports will be made for all development activities until the first SALE occurs in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Each progress report will be a sufficiently detailed summary of activities of LICENSEE and any SUBLICENSEES so
that REGENTS may evaluate and determine LICENSEE's progress in development of LICENSED PRODUCTS, LICENSED SERVICES, and LICENSED METHOD, and in meeting its diligence obligations under Article 7, and will include (but not be limited to) the
following: summary of work completed and in progress; current schedule of anticipated events and milestones, including diligence milestones under Paragraph 7.2; anticipated market introduction dates for the LICENSED TERRITORIES; and
SUBLICENSEE's activities during the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 LICENSEE also will report to REGENTS in its immediately subsequent progress and royalty reports, the date of
first SALE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 After the first SALE anywhere in the world, LICENSEE will make quarterly royalty reports to REGENTS [\*]. Each
such royalty report will be substantially similar to APPENDIX A and include at least the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The number of LICENSED PRODUCTS manufactured and the number SOLD;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Gross revenue from SALE of LICENSED PRODUCTS, LICENSED SERVICES and LICENSED METHOD;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) NET SALES pursuant to Paragraph 2.16;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Total royalties due REGENTS; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Names and addresses of any new SUBLICENSEES along with a summary of the material terms of each new SUBLICENSE
AGREEMENT entered into during the reporting quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 If no SALES have occurred during the report period after the first SALE, a statement to this effect is required
in the royalty report for that period.

------

**9.** **BOOKS AND RECORDS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 LICENSEE will keep full, true, and accurate books and records containing all particulars that may be necessary
for the purpose of showing the amount of royalties payable to REGENTS and LICENSEE's compliance with other obligations under this AGREEMENT. Said books and records will be kept at LICENSEE's principal place of business or the principal
place of business of the appropriate division of LICENSEE to which this AGREEMENT relates. Said books and records and the supporting data will be open at during normal business hours upon reasonable notice of at least [\*] following the end of the
[\*] to which they pertain, to the inspection and audit by representatives of REGENTS for the purpose of verifying LICENSEE's royalty statement or compliance in other respects with this AGREEMENT. Such audit will not exceed [\*] except for
cause. Such representatives will be bound to hold all information in confidence except as necessary to communicate LICENSEE's non-compliance with this AGREEMENT to REGENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 The fees and expenses of REGENTS' representatives performing such an examination will be borne by
REGENTS. However, if an error in underpaid royalties to REGENTS of more than [\*] of the total royalties due for any [\*] is discovered, then the fees and expenses of these representatives will be borne by LICENSEE.

**10.** **LIFE OF THE AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Unless otherwise terminated by the operation of law or by acts of the parties in accordance with the terms of
this AGREEMENT, this AGREEMENT will be in force from the Effective Date and will remain in effect until the termination of the last VALID CLAIM of the REGENTS' PATENT RIGHTS licensed under this AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Any termination of this AGREEMENT shall not affect the rights and obligations set forth in the following
articles:

---

| | |
|:---|:---|
| Article 2 | Definitions |
| Article 4 | Sublicenses |
| Article 5 | License Issue Fee |
| Article 9 | Books and Records |
| Article 10 | Life of the Agreement |
| Article 13 | Disposition of Licensed Products Upon Termination |
| Article 16 | Use of Names and Trademarks |
| Article 17 | Limited Warranties |
| Article 19 | Indemnification |
| Article 23 | Notices |
| Article 24 | Late Payments |
| Article 26 | Confidentiality |
| Article 29 | Applicable Law; Venue; Attorney's Fees |
| Article 31 | HHMI Third-Party Beneficiary Status |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Any termination of this AGREEMENT will not relieve LICENSEE of its obligation to pay any monies due or owing at
the time of such termination and will not relieve any obligations, of either party to the other party, established prior to termination.

**11.** **TERMINATION BY REGENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 If LICENSEE should violate or fail to perform any term of this AGREEMENT, then REGENTS may give written notice
of such default ("NOTICE OF DEFAULT") to LICENSEE. If LICENSEE should fail to repair such default [\*] of the effective date of such notice, REGENTS will have the right to terminate this AGREEMENT and the licenses herein by a second
written notice ("Notice of Termination") to LICENSEE. If a Notice of Termination is sent to LICENSEE, this AGREEMENT will automatically terminate on the effective date of such notice. Such termination will not relieve LICENSEE of its
obligation to pay any royalty or license fees owing at the time of such termination and will not impair any accrued rights of REGENTS. These notices will be subject to Article 23 (Notices).

**12.** **TERMINATION BY LICENSEE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 LICENSEE will have the right at any time to terminate this AGREEMENT in whole or as to any portion of
REGENTS' PATENT RIGHTS by giving notice in writing to REGENTS. Such notice of termination will be subject to Article 23 (Notices) and termination of this AGREEMENT will be effective [\*] after the effective date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 Any termination pursuant to Paragraph 12.1 will not relieve LICENSEE of any obligation or liability accrued
hereunder prior to such termination or rescind anything done by LICENSEE or any payments made to REGENTS hereunder prior to the time such termination becomes effective, and such termination will not affect in any manner any rights of REGENTS arising
under this AGREEMENT prior to such termination.

**13.** **DISPOSITION OF LICENSED PRODUCTS UPON TERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 Upon termination of this AGREEMENT, for a period of [\*] after the date of termination LICENSEE may complete and
SELL any partially made LICENSED PRODUCTS and continue to render any previously commenced LICENSED SERVICES, and continue the practice of LICENSED METHOD only to the extent necessary to do so; provided, however, that all such SALEs will be subject
to the terms of this AGREEMENT including, but not limited to, the payment of royalties at the rate and at the time provided herein and the rendering of reports thereon.

------

**14.** **PATENT PROSECUTION AND MAINTENANCE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 REGENTS will diligently prosecute and maintain the United States and foreign patent applications and patents
under REGENTS' PATENT RIGHTS, subject to LICENSEE'S reimbursement REGENTS' out of pocket costs under Paragraph 14.3 below, and all patent applications and patents under REGENTS' PATENT RIGHTS will be held in the name of
REGENTS. REGENTS will have sole responsibility for retaining and instructing patent counsel, but continued use of such counsel at any point in the patent prosecution process subsequent to initial filing of a U.S. patent application covering the
INVENTIONS shall be subject to the approval of LICENSEE and all other licensees or optionees. If LICENSEE or the other licensees or optionees rejects three of REGENTS' choice of prosecution counsel, then REGENTS may select new prosecution
counsel without LICENSEE's and all other licensee's and optionee's consent. REGENTS shall promptly provide LICENSEE with copies of all relevant documentation and upcoming deadlines for response so that LICENSEE may be currently
informed and apprised of the continuing prosecution and LICENSEE agrees to keep this documentation confidential in accordance with Article 26. LICENSEE may provide reasonable comments on such documentation and overall patent strategy, to which
REGENTS and its patent counsel will afford due consideration, provided, however, that if LICENSEE has not commented upon such documentation in reasonable time for REGENTS to sufficiently consider LICENSEE's comments prior to the deadline for
filing a response with the relevant government patent office, REGENTS will be free to respond appropriately without consideration of LICENSEE's comments. LICENSEE and LICENSEE's patent counsel will have the right to consult with patent
counsel chosen by REGENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 REGENTS will use reasonable efforts to prepare or amend any patent application to include claims reasonably
requested by LICENSEE to protect the LICENSED PRODUCTS contemplated to be SOLD or to be practiced under this AGREEMENT. REGENTS shall file patent applications covering the INVENTION and continue the prosecution of any such patent applications and
maintain any patents issued therefrom, at LICENSEE's request so long as LICENSEE agrees to pay for the costs associated with such filing, prosecution and maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 Subject to Paragraph 14.4 a pro-rata share of all past, present, and
future costs for preparing, filing, prosecuting, and maintaining all United States and foreign patent applications, and patents under REGENTS' PATENT RIGHTS will be borne by LICENSEE, so long as the licenses granted to LICENSEE herein are
exclusive. Payments are due [\*] after receipt of invoice from REGENTS. If, however, REGENTS reduces the exclusive licenses granted herein to non-exclusive licenses pursuant to Paragraphs 7.3, 7.4, or 7.5 and
REGENTS grants additional license(s), the costs of preparing, filing, prosecuting and maintaining such patent applications and patents will be divided equally among the licensed parties from the effective date of each subsequently granted license
AGREEMENT.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4 LICENSEE's obligation to underwrite and to pay all domestic and foreign patent filing, prosecution, and
maintenance costs will continue for so long as this AGREEMENT remains in effect, provided, however, that LICENSEE may terminate its obligations with respect to any given patent application or patent in any or all designated countries upon [\*]
written notice to REGENTS. REGENTS will use its reasonable efforts to curtail patent costs when such a notice is received from LICENSEE. REGENTS may continue prosecution and/or maintenance of such applications or patents at its sole discretion and
expense; provided, however, that LICENSEE will have no further right or licenses thereunder.

**15.** **Intentionally Omitted.** 

**16.** **USE OF NAMES AND TRADEMARKS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 Nothing contained in this AGREEMENT will be construed as conferring any right to use in advertising, publicity
or other promotional activities any name, trademark, trade name, or other designation of either party hereto by the other (including any contraction, abbreviation, or simulation of any of the foregoing). Unless required by law or consented to in
writing by REGENTS, the use by LICENSEE of the name "REGENTS of the University of California" or the name of any University of California campus in advertising, publicity or other promotional activities is expressly prohibited.
Notwithstanding the foregoing, LICENSEE shall have the right to identify REGENTS as the owner and licensor of the REGENTS' PATENT RIGHTS, but shall not have the right to identify inventors or use any REGENTS trademarks or use non-prior REGENTS' approved language or use wording which in any way expresses or implies endorsement by the REGENTS of any of LICENSEE'S products or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 LICENSEE may not use the name of HHMI or of any HHMI employee (including Dr. Doudna) in a manner that
reasonably could constitute an endorsement of a commercial product or service; but that use for other purposes, even if commercially motivated, is permitted provided that: (1) the use is limited to accurately reporting factual events or
occurrences, and (2) any reference to the name of HHMI or any HHMI employee in press releases or similar materials intended for public release is approved by HHMI in advance.

------

**17.** **LIMITED WARRANTIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 To the extent of the actual knowledge of the Office of Technology Licensing of the University of California,
Berkeley as of the Effective Date, REGENTS hereby warrants to LICENSEE, that it has the lawful right to grant this license.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2 Except as expressly set forth herein, this license and the associated INVENTIONS are provided WITHOUT WARRANTY
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY, EXPRESSED OR IMPLIED. REGENTS MAKES NO REPRESENTATION OR WARRANTY THAT THE INVENTIONS, REGENTS' PATENT RIGHTS, LICENSED PRODUCTS, LICENSED SERVICES OR LICENSED
METHOD WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3 OTHER THAN WITH RESPECT TO LICENSEE'S INDEMNIFICATION OBLIGATIONS UNDER ARTICLE 19, NEITHER PARTY WILL BE
LIABLE FOR ANY LOST PROFITS, COSTS OF PROCURING SUBSTITUTE GOODS OR SERVICES, LOST BUSINESS, ENHANCED DAMAGES FOR INTELLECTUAL PROPERTY INFRINGEMENT, OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, OR OTHER SPECIAL DAMAGES SUFFERED BY THE
OTHER PARTY, SUBLICENSEES, JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT FOR ALL CAUSES OF ACTION OF ANY KIND (INCLUDNG TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, AND BREACH OF WARRANTY) EVEN IF SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. REGENTS WILL NOT BE LIABLE FOR ANY DIRECT DAMAGES SUFFERED BY LICENSEE, SUBLICENSEES, JOINT VENTURES OR AFFILIATES ARISING OUT OF OR RELATED TO PATENT RIGHTS TO THE EXTENT ASSIGNED OR LICENSED BY
REGENTS' INVENTORS TO THIRD PARTIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4 Nothing in this AGREEMENT is or will be construed as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A warranty or representation by REGENTS as to the validity, enforceability or scope of any REGENTS'
PATENT RIGHTS; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A warranty or representation that anything made, used, or SOLD under any license granted in this AGREEMENT is
or will be free from infringement of patents of third parties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) An obligation to bring or prosecute actions or suits against third parties for patent infringement, except as
provided in Article 18; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Conferring by implication, estoppel, or otherwise any license or rights under any patents of REGENTS other than
REGENTS' PATENT RIGHTS as defined herein, regardless of whether such patents are dominant or subordinate to REGENTS' PATENT RIGHTS; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) An obligation to furnish any know-how not provided in the patents and
patent applications under REGENTS' PATENT RIGHTS.

------

**18.** **PATENT INFRINGEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 In the event that LICENSEE or REGENTS (for REGENTS, to the extent of the actual knowledge of the licensing
professional responsible for administration of this AGREEMENT) learns of the substantial infringement of any REGENTS' PATENT RIGHTS under this AGREEMENT, LICENSEE or REGENTS (as applicable) will promptly provide the other PARTY with notice and
reasonable evidence of such infringement ("Infringement Notice"). During the period and in a jurisdiction where LICENSEE has exclusive rights under this AGREEMENT, neither party will notify a third party, including the infringer, of the
infringement without first obtaining consent of the other party, which consent will not be unreasonably withheld, it being understood that the parties shall meet to discuss the matter described in the Infringement Notice within [\*] following a
PARTY's delivery of such notice. Both parties will use diligent efforts, in cooperation with each other, to terminate such infringement without litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 If the infringing activity of potential commercial significance has not been abated [\*] following the effective
date of the Infringement Notice, LICENSEE may (but is not obligated to) institute suit for patent infringement against the infringer. REGENTS may voluntarily join such suit at its own expense, but may not thereafter commence suit against the
infringer for the acts of infringement that are the subject of LICENSEE's suit or any judgment rendered in that suit. LICENSEE may not join REGENTS in a suit initiated by LICENSEE without REGENTS' prior written consent, not to be
unreasonably withheld. If REGENTS joins a suit at the request of LICENSEE, LICENSEE will pay any costs incurred by REGENTS arising out of such suit, including but not limited to, any legal fees of counsel that REGENTS selects and retains to
represent it in the suit.

If, [\*] following the effective date of the Infringement Notice, the infringing activity of potential commercial significance has not been abated and if LICENSEE has not brought suit against the infringer, REGENTS may institute suit for patent infringement against the infringer. If REGENTS institutes such suit, LICENSEE may not join such suit without REGENTS' consent and may not thereafter commence suit against the infringer for the acts of infringement that are the subject of REGENTS' suit or any judgment rendered in that suit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 Such legal action as is decided upon will be at the expense of the party on account of whom suit is brought and
all recoveries recovered thereby will belong to such party, provided that legal action brought jointly by REGENTS and LICENSEE and participated in by both, will be at the joint expense of the parties and all recoveries will be allocated in the
following order: a) to each party reimbursement in equal amounts of the attorney's costs, fees, and other related expenses to the extent each party paid for such costs, fees, and expenses until all such costs, fees, and expenses are consumed
for each party; and b) any remaining amount shared jointly by them in proportion to the share of expenses paid by each party, but in no event will REGENTS' share be less than ten percent (10%) of such remaining amount if REGENTS is a party to
such legal action.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4 Each party will cooperate with the other in litigation instituted hereunder but at the expense of the party on
account of whom suit is brought. Such litigation will be controlled by the party bringing the action, except that REGENTS may be represented by counsel of its choice in any suit brought by LICENSEE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 Any agreement made by LICENSEE for the purposes of settling litigation or other dispute shall comply with the
requirements of Article 4 (Sublicenses) of this AGREEMENT.

**19.** **INDEMNIFICATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 LICENSEE will, and will require its SUBLICENSEES to, indemnify, hold harmless, and defend REGENTS and its
officers, employees, and agents; sponsor(s) of the research that led to the INVENTIONS; and the inventors of any patents and patent applications under REGENTS' PATENT RIGHTS and their employers against any and all claims, suits, losses,
damages, costs, fees, and expenses resulting from or arising out of exercise of this license or any sublicense. This indemnification will include, but not be limited to, any product liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2 HHMI, and its trustees, officers, employees, and agents (collectively, "HHMI Indemnitees"), will be
indemnified, defended by counsel acceptable to HHMI, and held harmless by LICENSEE from and against any claim, liability, cost, expense, damage, deficiency, loss, or obligation, of any kind or nature (including, without limitation, reasonable
attorneys' fees and other costs and expenses of defense) (collectively, "HHMI Claims"), based upon, arising out of, or otherwise relating to this AGREEMENT or any SUBLICENSE, including without limitation any cause of action
relating to product liability. The previous sentence will not apply to any HHMI Claim that is determined with finality by a court of competent jurisdiction to result solely from the gross negligence or willful misconduct of an HHMI Indemnitee.
Notwithstanding any other provision of this AGREEMENT, LICENSEE'S obligation to defend, indemnify and hold harmless the HHMI Indemnitees under this paragraph will not be subject to any limitation or exclusion of liability or damages or
otherwise limited in any way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3 LICENSEE, at its sole cost and expense, will insure its activities in connection with any work performed
hereunder and will obtain, keep in force, and maintain the following insurance:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to first use in humans and prior to sale of LICENSED PRODUCTS or LICENSED SERVICES or LICENSED METHODS,
Commercial Form General Liability Insurance (contractual liability included) with limits as follows:

[\*]

[\*]

[\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*]

[\*]

[\*]

[\*]

[\*]

If the above insurance is written on a claims-made form, it shall continue for [\*] following termination or expiration of this AGREEMENT. The insurance shall have a retroactive date of placement prior to or coinciding with the Effective Date of this AGREEMENT; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Worker's Compensation as legally required in the jurisdiction in which LICENSEE is doing business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4 The coverage and limits referred to in Subparagraphs 19.3a - 19.3c above will not in any way limit the
liability of LICENSEE under this Article. Upon the execution of this AGREEMENT, LICENSEE will furnish REGENTS with certificates of insurance evidencing compliance with all requirements. Such certificates will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) provide for [\*] for non-payment of premium) advance written notice to
REGENTS of any cancellation of insurance coverages; LICENSEE will promptly notify REGENTS of any material modification of the insurance coverages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) indicate that REGENTS and HHMI has been endorsed as an additional insured under the coverage described above in
Subparagraph 19.3; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) include a provision that the coverage will be primary and will not participate with, nor will be excess over,
any valid and collectable insurance or program of self-insurance maintained by REGENTS or HHMI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5 REGENTS will promptly notify LICENSEE in writing of any claim or suit brought against REGENTS for which REGENTS
intends to invoke the provisions of this Article 19. LICENSEE will keep REGENTS informed of its defense of any claims pursuant to this Article 19.

------

**20.** **COMPLIANCE WITH LAWS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1 LICENSEE will comply with all applicable international, national, state, regional, and local laws and
regulations in performing its obligations hereunder and in its use, manufacture, SALE or import of the LICENSED PRODUCTS, LICENSED SERVICES, or practice of the LICENSED METHOD. LICENSEE understands that REGENTS is subject to United States laws and
regulations (including the Arms Export Control Act, as amended, and the Export Administration Act of 1979), controlling the export of technical data, computer software, laboratory prototypes and other commodities, and REGENTS' obligations
under this AGREEMENT are contingent on compliance with such laws and regulations. The transfer of certain technical data and commodities may require a license from the cognizant agency of the United States Government and/or written assurances by
LICENSEE that LICENSEE will not export such technical data and/or commodities to certain foreign countries without prior approval of such agency. REGENTS neither represents that a license will not be required nor that, if required, it will be
issued.

**21.** **GOVERNMENT APPROVAL OR REGISTRATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1 If this AGREEMENT or any associated transaction is required by the law of any nation to be either approved or
registered with any governmental agency, LICENSEE will assume all legal obligations to do so. LICENSEE will notify REGENTS if it becomes aware that this AGREEMENT is subject to a United States or foreign government reporting or approval requirement.
LICENSEE will make all necessary filings and pay all costs including fees, penalties, and all other out-of-pocket costs associated with such reporting or approval
process.

**22.** **ASSIGNMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1 This AGREEMENT is binding upon and shall inure to the benefit of REGENTS, its successors and assigns. This
AGREEMENT will be personal to LICENSEE and assignable by LICENSEE only with the written consent of REGENTS, except that LICENSEE may freely assign this AGREEMENT to its AFFILIATE or an acquirer of all or substantially all of LICENSEE's stock,
assets or business to which this AGREEMENT relates. If LICENSEE assigns this AGREEMENT to a non-AFFILIATE third party, then upon execution of the assignment, LICENSEE will (i) provide REGENTS with updated
contact information for the assignee, and (ii) pay REGENTS [\*] of the execution of the assignment (the "Assignment Fee"). The Assignment Fee shall be waived if the REGENTS' equity in LICENSEE, provided under Paragraph 5.1(b),
has been sold for more than [\*]. If the amount of REGENTS' equity in LICENSEE, provided under Paragraph 5.1(b), has been sold for less than [\*], the Assignment Fee shall be reduced by the amount received in connection with the sale of
REGENTS' equity.

------

**23.** **NOTICES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1 All notices under this AGREEMENT will be deemed to have been fully given and effective when done in writing and
delivered in person, or mailed by registered or certified U.S. mail, or deposited with a carrier service requiring signature by recipient, and addressed as follows:

---

| | |
|:---|:---|
| To REGENTS: | Office of Technology Licensing |
|  | 2150 Shattuck Avenue, Suite 510 |
|  | Berkeley, CA 94704-1366 |
|  | Attn.: Director [\*] |

---

Remittance address for royalties and fee payment, as well as legal reimbursements associated with this license AGREEMENT are to be sent to:

University of California

Knowledge Transfer Office

Attn: Accounts Receivable

1111 Franklin Street, 5th Floor

Oakland, CA 94607

For Electronic Funds Transfer:

Bank Information:

[\*]

ACH:

[\*]

Please reference the UC Berkeley case number and AGREEMENT control number with your payment.

---

| | |
|:---|:---|
| To LICENSEE: | SCRIBE THERAPEUTICS, INC. |
|  | 1150 Marina Village Parkway |
|  | Alameda, CA 94501 |

---

Either party may change its address upon written notice to the other party.

------

**24.** **LATE PAYMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1 If monies owed to REGENTS under this AGREEMENT are not received by REGENTS when due, LICENSEE will pay to
REGENTS interest charges at a rate of ten percent (10%) per annum. Such interest will be calculated from the date payment was due until actually received by REGENTS. Such accrual of interest will be in addition to, and not in lieu of, enforcement of
any other rights of REGENTS related to such late payment. Acceptance of any late payment will not constitute a waiver under Article 25 (Waiver) of this AGREEMENT.

**25.** **WAIVER** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1 The failure of either party to assert a right hereunder or to insist upon compliance with any term or condition
of this AGREEMENT will not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by the other party. None of the terms and conditions of this AGREEMENT can be waived except by the written
consent of the party waiving compliance.

**26.** **CONFIDENTIALITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1 Each party will hold the other party's proprietary business and technical information, patent prosecution
material and other proprietary information, including the negotiated terms of this AGREEMENT, in confidence and against disclosure to third parties with at least the same degree of care as it exercises to protect its own data and license AGREEMENTs
of a similar nature. This obligation will expire [\*] after the termination or expiration of this AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.2 Nothing contained herein will in any way restrict or impair the right of LICENSEE or REGENTS to use, disclose,
or otherwise deal with any information or data which:

(a)at the time of disclosure to a receiving party is generally available to the public or thereafter becomes generally available to the public by publication or otherwise through no act of the receiving party;

(b)the receiving party can show by written record was in its possession prior to the time of disclosure to it hereunder and was not acquired directly or indirectly from the disclosing party;

(c)is independently made available to the receiving party without restrictions as a matter of right by a third party; or

(d)is subject to disclosure under the California Public Records Act or other requirements of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.3 REGENTS will be free to release to the inventors and senior administrators and individual Regents of the
REGENTS and to employees of HHMI and individual trustees of HHMI, the terms and conditions of this AGREEMENT upon their request. Further, REGENTS may disclose information pertaining to royalty payments of the LICENSEE to HHMI employees and trustees
on a need-to-know basis. If such release is made, REGENTS will inform such

------

employees of the confidentiality obligations set forth above and will request that they do not disclose such terms and conditions to others. Should a third party inquire whether a license to REGENTS' PATENT RIGHTS is available, REGENTS may disclose the existence of this AGREEMENT and the extent of the grant in Articles 3 and 4 to such third party, but will not disclose the name of LICENSEE unless LICENSEE has already made such disclosure publicly, except where REGENTS is required to release information under either the California Public Records Act or other applicable law, provided REGENTS gives prior written notice to LICENSEE of such disclosure. In addition, LICENSEE may disclose the terms of this AGREEMENT and any related confidential information of the REGENTS on a confidential basis to (i) its legal or financial advisors, (ii) existing investors, lenders, underwriters and collaborators, and (iii) potential sublicensees, investors, lenders, underwriters, collaborators or successors in interest in connection with due diligence activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.4 LICENSEE and REGENTS agree to destroy or return to the disclosing party proprietary information received from
the other in its possession [\*] following the effective date of termination of this AGREEMENT. However, each party may retain one copy of proprietary information of the other solely for archival purposes in non-working files for the sole purpose of verifying the ownership of the proprietary information, provided such proprietary information will be subject to the confidentiality provisions set forth in the
Article 26. LICENSEE and REGENTS agree to provide each other, [\*] following termination of this AGREEMENT, with a written notice that proprietary information has been returned or destroyed.

**27.** **FORCE MAJEURE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1 Except for LICENSEE's obligation to make any payments to REGENTS hereunder, the parties to this AGREEMENT
shall be excused from any performance required hereunder if such performance is rendered impossible or unfeasible due to any catastrophes or other major events beyond their reasonable control, including, without limitation, war, riot, and
insurrection; laws, proclamations, edicts, ordinances, or regulations; strikes, lockouts, or other serious labor disputes; and floods, fires, explosions, other natural disasters and/or pandemic. When such events have abated, the parties'
respective obligations hereunder will resume.

**28.** **SEVERABILITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.1 The provisions of this AGREEMENT are severable, and in the event that any provision of this AGREEMENT will be
determined to be invalid or unenforceable under any controlling body of law, such invalidity or enforceability will not in any way affect the validity or enforceability of the remaining provisions hereof.

------

**29.** **APPLICABLE LAW; VENUE; ATTORNEYS' FEES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.1 THIS AGREEMENT WILL BE CONSTRUED, INTERPRETED, AND APPLIED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
CALIFORNIA, excluding any choice of law rules that would direct the application of the laws of another jurisdiction, but the scope and validity of any patent or patent application under REGENTS' PATENT RIGHTS will be determined by the
applicable law of the country of such patent or patent application. Any legal action brought by the parties relating to this AGREEMENT will be conducted in San Francisco, California. The prevailing party in any legal action under this AGREEMENT will
be entitled to recover its reasonable attorneys' fees in addition to its costs and necessary disbursements.

**30.** **SCOPE OF AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.1 This AGREEMENT incorporates the entire AGREEMENT between the parties with respect to the subject matter hereof,
and hereby replaces in its entirety that certain EXCLUSIVE LICENSE AGREEMENT entered into between the parties on September 25, 2018. This AGREEMENT may be altered or modified only by written amendment duly executed by the parties hereto.

**31.** **HHMI THIRD PARTY BENEFICIARY STATUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1 HHMI is not a party to this AGREEMENT and has no liability to LICENSEE, any SUBLICENSEE, or user of anything
covered by this AGREEMENT, but HHMI is an intended third-party beneficiary of this AGREEMENT and certain of its provisions are for the benefit of HHMI and are enforceable by HHMI in its own name.

**32.** **ELECTRONIC COPY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.1 The parties to this document agree that a copy of the original signature (including an electronic copy) may be
used for any and all purposes for which the original signature may have been used. The parties further waive any right to challenge the admissibility or authenticity of this document in a court of law based solely on the absence of an original
signature.

------

**IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT in duplicate originals by their duly authorized officers or representatives.** 

---

| | | | |
|:---|:---|:---|:---|
| REGENTS OF THE UNIVERSITY OF CALIFORNIA | REGENTS OF THE UNIVERSITY OF CALIFORNIA | SCRIBE THERAPEUTICS, INC. | SCRIBE THERAPEUTICS, INC. |
| By | /s/ Terri Sale | By | /s/ Benjamin Oakes |
| Title | Associate Director, OTL | Title | President & CEO |
| Date | 9/23/2020 | Date | 9/24/2020 |

---

------

**APPENDIX A** 

[Intentionally omitted]

------

**APPENDIX B** 

[Intentionally omitted]

------

**AMENDMENT NO. 1 TO AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT** 

This AMENDMENT NO.1 to the Amended and Restated Exclusive License Agreement ("AMENDMENT No. 1") is entered into as of September 20, 2022, by and between REGENTS OF THE UNIVERSITY OF CALIFORNIA, a California corporation, whose legal address is 1111 Franklin Street, 12th Floor, Oakland, California 94607-5200, acting through its Office of Technology Licensing, at the University of California, Berkeley, 2150 Shattuck Avenue, Suite 510, Berkeley, CA 94704-1366 ("REGENTS") and Scribe Therapeutics Inc., a Delaware corporation having a place of business at 1150 Marina Village Parkway, Alameda, CA 94501 ("LICENSEE").

**<u>RECITALS</u>**

WHEREAS, REGENTS and LICENSEE entered into that certain AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT FOR "RNA-GUIDED NUCLEIC ACID MODIFYING ENZVMES AND METHODS OF USE THEREOF ("CASX")" AND "RNA-GUIDED NUCLEIC ACID MODIFYING ENZVMES AND METHODS OF USE THEREOF ("CASY") on September 23, 2020 ("AGREEMENT").

WHEREAS, REGENTS and LICENSEE desire to amend the AGREEMENT as set forth below.

NOW THEREFORE, in accordance with the terms and conditions set forth below, the parties agree as follows:

1. <u>SECTION 2 of the AGREEMENT</u> shall be amended to add the following definitions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 "LICENSED EX VIVO CELL-BASED THERAPY FIELD" means any cell-based therapy within the EXCLUSIVE LICENSED FIELD OF USE that (a) is a LICENSED PRODUCT, LICENSED SERVICE or LICENSED METHOD, and (b) involves the [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 "LICENSED IN VIVO GENE EDITING THERAPY FIELD" means any gene-editing therapy within the EXCLUSIVE LICENSED FIELD OF USE that (a) is a LICENSED PRODUCT, LICENSED SERVICE or LICENSED METHOD, and (b) involves the [\*].

2. <u>SECTION 6.1(c) of the AGREEMENT</u> shall be deleted and replaced with the following:

"6.1(c) [\*] of the NET SALES of LICENSED PRODUCTS, LICENSED SERVICES and LICENSED METHODS sold by a SUBLICENSEE or its AFFILIATES in the LICENSED EX VIVO CELL-BASED THERAPY FIELD (with no further deductions on such SUBLICENSEE's or its AFFILIATE's NET SALES) and [\*] of the NET SALES of LICENSED PRODUCTS, LICENSED SERVICES and LICENSED METHODS sold by a SUBLICENSEE or its AFFILIATES in the LICENSED IN VIVO GENE EDITING THERAPY FIELD and any other field within the EXCLUSIVE LICENSED FIELD OF USE other than the LICENSED EX VIVO CELL-BASED THERAPY FIELD. In the event

------

a LICENSED PRODUCT, LICENSED SERVICE or LICENSED METHOD is in both the LICENSED EX VIVO CELL-BASED THERAPY FIELD and some other field within the EXCLUSIVE LICENSED FIELD OFUSE (e.g., the LICENSED IN VNO GENE EDITING THERAPY FIELD), the royalty rate shall be [\*] of the NET SALES of such LICENSED PRODUCT, LICENSED SERVICE and/or LICENSED METHOD sold by a SUBLICENSEE or its AFFILIATES [\*]."

3. <u>SECTION 6.1 of the AGREEMENT</u> shall be amended to add the following section 6.1(d):

"6.1(d) No royalties will be payable for SALES: 1) for free or at cost (with no other consideration provided to in exchange for such SALES) solely for HUMANITARIAN PURPOSES; or 2) of LICENSED PRODUCTS as samples to prospective customers for free or at cost in order to provide an incentive to such customers for a period of [\*] from the date a LICENSED PRODUCT is first offered for sale in the EXCLUSIVE LICENSED FIELD OF USE or the NON-EXCLUSIVE LICENSED FIELD OF USE."

4. <u>AMENDMENT FEE</u>. In consideration for the amendments to the AGREEMENT set forth in Section 1 of this
AMENDMENT NO.1, LICENSEE shall pay REGENTS a one-time fee equal to [\*] within [\*] following the execution of this AMENDMENT NO.1.

5. <u>NO OTHER CHANGES</u>. Unless expressly modified by the terms of this AMENDMENT NO.1, the terms of the
AGREEMENT shall continue to apply and remain in full force and effect.

6. <u>CAPITALIZED TERMS</u>. Capitalized terms not expressly defined herein shall have the meanings ascribed to
them in the AGREEMENT.

7. <u>ENTIRE AGREEMENT</u>. This AMENDMENT NO.1 incorporates the entire agreement between the parties with respect
to the subject matter hereof.

8. <u>ELECTRONIC COPY</u>. The parties to this document agree that a copy of the original signature (including an
electronic copy) may be used for any and all purposes for which the original signature may have been used. The parties further waive any right to challenge the admissibility or authenticity of this document in a court of law based solely on the
absence of an original signature.

------

**IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT N0.1 in duplicate originals by their duly authorized officers or representatives, with effect as of the Effective Date of the AGREEMENT**.

---

| | | | |
|:---|:---|:---|:---|
| REGENTS OF THE | REGENTS OF THE | REGENTS OF THE | REGENTS OF THE |
| UNIVERSITY OF CALIFORNIA | UNIVERSITY OF CALIFORNIA | SCRIBE THERAPEUTICS, INC. | SCRIBE THERAPEUTICS, INC. |
| By: | /s/ Terri Sale | By: | /s/ Benjamin L. Oakes |
| Title: Associate Director-OTL | Title: Associate Director-OTL | Title: President & CEO | Title: President & CEO |
| Date: September 20, 2022 | Date: September 20, 2022 | Date: 9/20/2022 | Date: 9/20/2022 |

---

------

**CONFIDENTIAL** 

**AMENDMENT NO. 2 TO AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT** 

This AMENDMENT NO. 2 to the Amended and Restated Exclusive License Agreement ("AMENDMENT NO. 2") is entered into as of November 22, 2024 ("AMENDMENT NO. 2 EFFECTIVE DATE"), by and between REGENTS OF THE UNIVERSITY OF CALIFORNIA, a California corporation, whose legal address is 1111 Franklin Street, 12th Floor, Oakland, California 94607-5200, acting through its Office of Technology Licensing, at the University of California, Berkeley, 2150 Shattuck Avenue, Suite 408, Berkeley, CA 94704-1362 ("REGENTS") and Scribe Therapeutics Inc., a Delaware corporation having a place of business at 1150 Marina Village Parkway, Alameda, CA 94501 ("LICENSEE").

<u>RECITALS</u> 

WHEREAS, REGENTS and LICENSEE entered into that certain AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT FOR "RNA-GUIDED NUCLEIC ACID MODIFYING ENZYMES AND METHODS OF USE THEREOF ("CASX")" AND "RNA-GUIDED NUCLEIC ACID MODIFYING ENZYMES AND METHODS OF USE THEREOF ("CASY") on September 23, 2020, as amended in AMENDMENT NO.1 dated September 20, 2022 ("AGREEMENT").

WHEREAS, REGENTS and LICENSEE desire to amend the AGREEMENT as set forth below.

NOW THEREFORE, in accordance with the terms and conditions set forth below, the parties agree as follows:

1. Paragraph 4.2 shall be deleted in its entirety and replaced with the following:

"4.2 For any SUBLICENSE, LICENSEE will pay to REGENTS, within [\*] in which SUBLICENSE INCOME is received by LICENSEE:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*] of such SUBLICENSE INCOME received with respect to a SUBLICENSE executed [\*] (as described in Paragraph 7.2);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*] of such SUBLICENSE INCOME received with respect to a SUBLICENSE executed [\*] (as described in Paragraph 7.2); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*] of such SUBLICENSE INCOME received with respect to a SUBLICENSE executed [\*] (as described in Paragraph 7.2);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding (a)-(c) above, [\*] of such SUBLICENSE INCOME received during the period commencing on [\*] with respect to any SUBLICENSE, which period may be extended [\*] upon mutual written consent of the parties.

For the avoidance of doubt, in the event (1) a SUBLICENSE transfers rights under this AGREEMENT; and (2) the same such SUBLICENSE also transfers rights owned by LICENSEE or granted to LICENSEE by a third

------

party, LICENSEE shall pay to REGENTS the above percentages of all SUBLICENSE INCOME received by LICENSEE under such SUBLICENSE without deduction from or apportionment of any part of such SUBLICENSE INCOME."

2. Paragraph 6.12. In partial consideration for the amendments set forth in Article 1 of this AMENDMENT NO. 2 above, Paragraph 6.12 of the AGREEMENT is deleted and hereby replaced in its entirety with the following:

"6.12 LICENSEE shall pay the following milestone payments set forth in this Paragraph with respect to the LICENSED PRODUCT(S) to achieve each milestone event, regardless of whether such milestone event is achieved by LICENSEE, an AFFILIATE of LICENSEE or by a SUBLICENSEE:

---

| | |
|:---|:---|
| **Milestone event** | **Milestone payment** |
|  [\*] | [\*] |
|  [\*] | [\*] |
|  [\*] | [\*] |
|  [\*] | [\*] |
|  [\*] | [\*] |
|  [\*] | [\*] |

---

"

------

3. NO OTHER CHANGES. Unless expressly modified by the terms of this AMENDMENT NO. 2, the terms of the AGREEMENT shall continue to apply and remain in full force and effect.

4. CAPITALIZED TERMS. Capitalized terms not expressly defined herein shall have the meanings ascribed to them in the AGREEMENT.

5. ENTIRE AGREEMENT. This AMENDMENT NO. 2 incorporates the entire agreement between the parties with respect to the subject matter hereof.

6. ELECTRONIC COPY. The parties to this document agree that a copy of the original signature (including an electronic copy) may be used for any and all purposes for which the original signature may have been used. The parties further waive any right to challenge the admissibility or authenticity of this document in a court of law based solely on the absence of an original signature.

**IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT NO. 2 by their duly authorized officers or representatives, with effect as of AMENDMENT NO. 2 EFFECTIVE DATE.** 

---

| | | | |
|:---|:---|:---|:---|
| REGENTS OF THE<br> UNIVERSITY OF CALIFORNIA | REGENTS OF THE<br> UNIVERSITY OF CALIFORNIA | SCRIBE THERAPEUTICS, INC. | SCRIBE THERAPEUTICS, INC. |
|  By | Terri Sale | By | Benjamin L. Oakes |
| Title | Associate Director – OTL | Title | President &CEO |
| Date | 11/22/2024 | Date | 11/22/2024 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Terri Sale |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Benjamin Oakes |

---

## Exhibit 10.9

**Exhibit 10.9** 

Execution Copy

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO SCRIBE THERAPEUTICS INC. IF PUBLICLY DISCLOSED.** 

**Development and Option Agreement** 

**by and between** 

**ACUITAS THERAPEUTICS, INC.** 

**and** 

**SCRIBE THERAPEUTICS INC.** 

**dated** 

**November 7, 2022** 

------

<u>**TABLE OF CONTENTS**</u> 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  Article 1 Definitions | Article 1 Definitions | 1 |
|  Article 2 Governance | Article 2 Governance | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 | Management | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 | Joint Development Committee | 9 |
|  Article 3 The Program | Article 3 The Program | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 | Program Generally | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 | FTEs | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 | Program Records, Reports and Materials | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 | Program Licenses | 14 |
|  Article 4 Reserved Targets | Article 4 Reserved Targets | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 | Generally | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 | Reserved Protein Target List, Restricted Protein Target List and Protein Target Notices | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 | Expiration of Pre-Existing Restrictions | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 | Fees | 17 |
|  Article 5 Scribe License Options | Article 5 Scribe License Options | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 | Option | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 | Scribe's Exercise of Option | 18 |
|  Article 6 Intellectual Property | Article 6 Intellectual Property | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 | Disclosure of LNP Know-How | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 | Ownership | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 | Assignment of Technology | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 | Assignment | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 | Prosecution and Maintenance | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 | Patent Enforcement and Defense | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 | Defense of Joint IP Against Third Party Invalidity Claims | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 | Cooperation | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 | Recovery - Joint IP | 21 |
|  Article 7 Confidentiality | Article 7 Confidentiality | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 | Confidential Information | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 | Restrictions | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 | Exceptions | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 | Permitted Disclosures | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 | Return of Confidential Information | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 | Publications | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 | Patents | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 | Terms of this Agreement; Publicity | 24 |
|  Article 8 Warranties; Covenants; Limitations of Liability; Indemnification | Article 8 Warranties; Covenants; Limitations of Liability; Indemnification | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 | Representations and Warranties | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 | Additional Representations and Warranties of Acuitas | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 | Disclaimers | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 | No Consequential Damages | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 | Performance by Others | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 | Indemnification | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 | Insurance | 28 |
|  Article 9 Term and Termination | Article 9 Term and Termination | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 | Term | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 | Termination by Scribe | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 | Termination by Acuitas | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 | Termination Upon Bankruptcy | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 | Effects of Termination | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 | Survival | 30 |

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i

------

---

| | | |
|:---|:---|:---|
|  Article 10 Miscellaneous | Article 10 Miscellaneous | 31.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 | Dispute Resolution | 31.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 | Cumulative Remedies | 32.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 | Invoices and Payments | 32.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 | Relationship of Parties | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 | Compliance with Law | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 | Choice of Law | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 | Counterparts; Facsimiles | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 | Headings; Rule of Construction; Interpretation | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 | Further Assurances | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 | Binding Effect | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 | Assignment | 33.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 | Notices | 34.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 | Amendment and Waiver | 34.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 | Severability | 34.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 | Entire Agreement | 34.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16 | Force Majeure | 35.0 |

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ii

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<u>List of Exhibits</u> 

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| | |
|:---|:---|
| Exhibit 1.1 | Patents in the Acuitas Background Technology |
| Exhibit 1.34 | Formulated Product Fee |
| Exhibit 3.1(a) | Workplan |
| Exhibit 3.1(f) | Pre-approved Contract Manufacturing Organizations (CMOs) |
| Exhibit 4.2 | Form of Target Notice |
| Exhibit 5.1(c) | Form of Non-Exclusive License Agreement |
| Exhibit 8.2 | Acuitas Exceptions to Representations and Warranties |

---

iii

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**<u>DEVELOPMENT AND OPTION AGREEMENT</u>**

**THIS DEVELOPMENT AND OPTION AGREEMENT** (this "<u>Agreement</u>") dated as of November 7, 2022 (the "<u>Effective Date</u>"), is made by and between Scribe Therapeutics Inc., a Delaware corporation ("<u>Scribe</u>") and Acuitas Therapeutics Inc., a British Columbia corporation ("<u>Acuitas</u>"). Each of Scribe and Acuitas may be referred to herein as a "<u>Party</u>" or together as the "<u>Parties</u>."

**WHEREAS**, Acuitas has expertise and intellectual property relating to the development of LNP Technologies (as defined below);

**WHEREAS**, Scribe has expertise and intellectual property relating to Genome Editing Constructs (as defined below), comprising Genome Editing Protein Targets (as defined below) and mRNA Constructs (as defined below); and

**WHEREAS**, the Parties believe that certain proprietary Acuitas LNP Technology (as defined below) could be useful for the formulation and delivery of Scribe's proprietary Genome Editing Constructs; and

**WHEREAS**, the Parties are interested in evaluating the development of products incorporating Acuitas LNP Technology and Scribe mRNA Technology; and

**WHEREAS**, Acuitas wishes to grant to Scribe, and Scribe wishes to obtain, an option to obtain a license under the Licensed Technology (as defined below) to develop, make and commercialize one or more specific products of Scribe, all in accordance with the terms and conditions set forth below and in the Non-Exclusive License (as defined below).

**NOW, THEREFORE**, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the amount and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

**ARTICLE 1** 

**<u>Definitions</u>**

The following terms and their correlatives will have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "<u>Acuitas Background Technology</u>" means any and all proprietary LNP Technology that is Controlled by Acuitas or its Affiliates (a) as of the Effective Date of this Agreement, or (b) generated, developed or obtained by Acuitas outside of the scope of this Agreement, and in each case used for the conduct of the Workplan. The Patents in the Acuitas Background Technology as of the Effective Date are listed in Exhibit 1.1 attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "<u>Acuitas Indemnitees</u>" has the meaning set forth in Section 8.6(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "<u>Acuitas In-Licensed Technology</u>" means any LNP Technology to which Acuitas has rights pursuant to a license from a Third Party ("<u>Acuitas In-License</u>") and (i) Acuitas has the ability to grant a license or sublicense to such LNP Technology without violating the terms of any agreement with such Third-Party, and (ii) milestones, royalties or other monetary obligations are owed to a Third Party in respect of such Acuitas In-License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "<u>Acuitas LNP Technology</u>" means the Acuitas Background Technology and the Acuitas Sole Technology. For the avoidance of doubt, any LNP or component thereof that is proprietary to Acuitas and provided by or on behalf of Acuitas to Scribe pursuant to this Agreement shall be Acuitas Background Technology and, therefore, Acuitas LNP Technology under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "<u>Acuitas Sole Technology</u>" means, without regard to inventorship, all Technology (other than Workplan Data) that arises from the Workplan that is solely an Improvement of Acuitas Background Technology and does not incorporate or consist of Scribe Background Technology or an Improvement thereto. For clarity, any Technology [\*] that (a) [\*] and (b) [\*] is Joint Technology and not Acuitas Sole Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "<u>Acuitas Workplan Leader</u>" has the meaning set forth in Section 2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "<u>Affiliate</u>" of a person or entity means any other person or entity which (directly or indirectly) is controlled by, controls or is under common control with such person or entity. For the purposes of this definition, the term "<u>control</u>" (including, with correlative meanings, the terms "<u>controlled by</u>" and "<u>under common control with</u>") as used with respect to an entity will mean (a) in the case of a corporate entity, direct or indirect ownership of voting securities entitled to cast more than fifty percent (50%) of the votes in the election of directors or (b) in the case of a non-corporate entity, direct or indirect ownership of more than fifty percent (50%) of the equity interests with the power to direct the management and policies of such entity, *provided that* if local Law restricts foreign ownership, control will be established by direct or indirect ownership of the maximum ownership percentage that may, under such local Law, be owned by foreign interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "<u>Agreement</u>" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "<u>Business Day</u>" means a day on which banking institutions in both Alameda, California, United States and Vancouver, British Columbia, Canada are open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "<u>Calendar Quarter</u>" means the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31, *provided*, that the first Calendar Quarter of the Term will begin on the Effective Date and end on the first to occur of March 31, June 30, September 30 or December 31 thereafter and the last Calendar Quarter of the Term will end on the last day of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "<u>Claim</u>" means with respect to a particular subject matter at issue and a relevant Patent, as applicable, that the making, use, sale, offer for sale, importation or exportation of such subject matter would, without a license or other right to use, infringe one or more Valid Claims in such Patent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "<u>CMO</u>" has the meaning set forth in Section 3.1(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "<u>Collaboration Partner</u>" means any Third Party (other than a CMO, Contract Research Organization or other permitted subcontractors pursuant to Section 3.1(i)) (i) to whom Scribe wishes to disclose Acuitas Confidential Information or transfer Acuitas LNP Technology or Materials provided by Acuitas to Scribe, (ii) that is also a licensee or sublicensee or assignee of Scribe Technology and (iii) that is deemed to be a Collaboration Partner pursuant to Section 3.1(h).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "<u>Concurrent Reserved List Limits</u>" has the meaning set forth in Section 4.2(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "<u>Confidential Disclosure Agreement</u>" means the Confidential Disclosure Agreement between the Scribe and Acuitas dated October 7, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "<u>Confidential Information</u>" has the meaning set forth in Section 7.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 "<u>Contract Research Organization</u>" means an entity in the business of providing specialized research, development and manufacturing services (including CMOs) on a fee for service basis pursuant to agreements that include terms that provide all data, materials and intellectual property generated in performing such services be owned by the contracting party in accordance with Section 3.1(i), excluding Improvements to such entity's Technology that is used to perform such services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 "<u>Contract Year</u>" will refer to the twelve (12)-month period beginning on the Effective Date and on each anniversary thereafter during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "<u>Control</u>" or "<u>Controlled</u>" means, with respect to a particular Technology and Party, that such Party (a) owns or has a license to use and practice such Technology and (b) has the right to grant a license or sublicense to such Technology without violating the terms of any agreement with any Third Party and without owing any milestone, royalty, or other monetary obligations to a Third Party under the terms of any agreement with such Third Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 **"**<u>Debar</u>", "<u>Debarred</u>" or "<u>Debarment</u>" means (a) being debarred, or being subject to a pending debarment, pursuant to Section 306 of the FDCA, 21 U.S.C. § 335a, (b) being listed by any federal or state agencies, excluded, debarred, suspended or otherwise made ineligible to participate in federal or state healthcare programs or federal procurement or non-procurement programs (as that term is defined in 42 U.S.C. § 1320a-7b(f)), or being subject to any pending process by which any such listing, exclusion, debarment, suspension or other ineligibility could occur, (c) being disqualified by any government or regulatory agency from performing specific services, or being subject to a pending disqualification proceeding, or (d) being convicted of a criminal offense related to the provision of healthcare items or services or being subject to any pending criminal action related to the provision of healthcare items or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "<u>Deferral Fee</u>" has the meaning set forth in Section 3.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "<u>Deferral Period</u>" has the meaning set forth in Section 3.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "<u>Deferred Options</u>" has the meaning set forth in Section 3.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "<u>Deficiency</u>" means the existence of any of the following factors, to the extent supported by reasonable and verifiable documentation or other supporting evidence: (a) a significant failure to adhere to internationally accepted standards of quality and safety in the manufacture of pharmaceutical or biologic products as documented by a regulatory authority with jurisdiction over pharmaceutical manufacturing, as the same are relevant to the stage of development and certification of the products to be manufactured; (b) less than [\*] of experience in manufacturing pharmaceutical or biological products; or (c) a significant history of violating confidentiality or intellectual property rights or (d) a party who is a direct competitor of Acuitas in the field of LNP Technology. For clarity, only the factors listed in (a), (b), (c) or (d) above will be considered in determining the existence of a Deficiency. A listing of pre-approved CMOs is provided in Exhibit 3.1(f).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 "<u>Diligent Efforts</u>" means, with respect to the efforts to be expended by each Party with respect to any activity set forth in the Workplan, active and sustained efforts to conduct the applicable activity, or to attempt to achieve the applicable requirement or goal, in a prompt and expeditious manner, as is reasonably practicable under the circumstances consistent with the Workplan (including the level of FTE funding and budget for out-of-pocket and Third Party contractors set forth therein) and the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "<u>Disclosing Party</u>" has the meaning set forth in Section 7.1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "<u>Dollars</u>" means United States dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 "<u>Donor DNA Sequence</u>" means (a) a DNA sequence [\*] and (b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 "<u>Effective Date</u>" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 "<u>Escrow Agent</u>" means the Third Party escrow agent designated by Acuitas and reasonably acceptable to Scribe, which escrow agent will initially be a partner with Seed Intellectual Property Law Group, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31 "<u>Executive Officers</u>" has the meaning set forth in Section 2.2(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32 "<u>Field of Use</u>" means all human therapeutic or prophylactic uses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33 "<u>Formulated Product</u>" means product produced by Acuitas in accordance with the Workplan that incorporates Scribe proprietary Technology formulated with Acuitas LNP Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34 "<u>Formulated Product Fee</u>" means the fees to be charged by Acuitas for supply of Formulated Product to Scribe under this Agreement, which fees are set forth Exhibit 1.34 and will include FTE Costs and reasonable Third Party costs for materials used in the Formulated Product or its manufacture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35 "<u>FTE</u>" means the work of a full-time person for one year, or more than one person working the equivalent of a full-time person for one year, where "full-time" is determined by the standard practices in the biopharmaceutical industry in the geographic area in which such personnel are working, but means [\*] per year, in the performance of the Works and Services, including scientific management oversight as reasonably required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36 "<u>FTE Costs</u>" mean the Dollar amount obtained by multiplying the number of actual FTEs employed by Acuitas in the conduct of the Works and Services by an annual rate per FTE equal to [\*]. Such FTE Costs represent reimbursement for all costs of FTEs in providing the Works and Services (including salaries, benefits, lab supplies, reagents, equipment and overhead, as well as other G&A costs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37 "<u>Genome Edit(ing)</u>" means to [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38 "<u>Genome Editing Construct</u>" means a [\*]. For the avoidance of doubt, each Genome Editing Construct will be defined by [\*] and each different combination of the foregoing will be a different Genome Editing Construct.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39 "<u>Genome Editing Protein Target</u>" means any Protein Target that corrects, modifies, inserts sequences, deletes sequences, activates, inactivates, represses or repairs expression of a genome sequence within a cell.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.40 "<u>GMP</u>" means current Good Manufacturing Practices as specified in Parts 210 and 211 of Title 21 of the U.S. C.F.R., ICH Guideline Q7A, or equivalent Laws of an applicable regulatory authority at the time of manufacture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41 "<u>Guide RNA</u>" means one or more synthetic, ribonucleic acid sequences that include [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42 "<u>Human Genome Target</u>" means (a) a naturally occurring human gene, including [\*]; (b) any naturally occurring non-coding region of the human genome including, [\*]; (c) a naturally occurring human pathogen gene, including [\*] ("<u>Human Pathogen Gene</u>"); or (d) any gene which is not covered by subclauses (a), (b) or (c) above, together with any variants of such gene, including the wild type and naturally occurring mutant and allelic variants, provided however that any such variant (i) [\*] and (ii) [\*]. For clarity, a DNA sequence may be considered to encode a protein regardless of whether such sequence contains a start codon. A Human Genome Target can be either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*] (a "<u>Therapeutic Human Genome Target</u>"), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*] (a "<u>Safe Harbour Human Genome Target</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43 "<u>Improvement</u>" means, with respect to Technology including the Acuitas Background Technology or the Scribe Background Technology, as applicable, any improvement, enhancement, change, modification, variation, or derivative of such Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44 "<u>Indemnification Claim Notice</u>" has the meaning set forth in Section 8.6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45 "<u>Indemnified Party</u>" has the meaning set forth in Section 8.6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46 "<u>Insolvency Legislation</u>" has the meaning set forth in Section 10.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.47 "<u>JDC</u>" has the meaning set forth in Section 2.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48 "<u>JDC Deadlock</u>" has the meaning set forth in Section 2.2(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.49 "<u>Joint IP</u>" means, without regard to inventorship, Patents Claiming Technology that arises out of the conduct of the Workplan that constitutes an Improvement to or incorporates both the Acuitas Background Technology and the Scribe Background Technology. For clarity, any Patents arising out of the performance of Program Activities will be Joint IP if such Patent Claims or exemplifies both of the following: (a) [\*]; and (b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.50 "<u>Joint Prosecution and Maintenance Agreement</u>" has the meaning set forth in Section 6.5(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51 "<u>Joint Technology</u>" means, without regard to inventorship, (a) Workplan Data and (b) Joint IP.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.52 "<u>Know-How</u>" means all Materials and all confidential and proprietary information including commercial, technical, scientific and other know-how and information, trade secrets, knowledge, technology, methods, processes, practices, formulae, instructions, skills, techniques, procedures, experiences, ideas, technical assistance, designs, drawings, assembly procedures, computer programs, specifications, data and results (including biological, chemical, pharmacological, toxicological, pharmaceutical, physical and analytical, preclinical, clinical, safety, manufacturing and quality control data and know-how, and including study designs and protocols), in all cases, *provided* that such information is confidential and proprietary, and regardless of whether patentable, in written, electronic or any other form now known or hereafter developed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53 "<u>Law</u>" or "<u>Laws</u>" means all laws, statutes, rules, regulations, orders, judgments, or ordinances having the effect of law of any federal, national, multinational, state, provincial, county, city or other political subdivision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54 "<u>Licensed Know-How</u>" means Know-How transferred or disclosed by Acuitas to Scribe under this Agreement or any Non-Exclusive License including but not limited to Know-How related to [\*] transferred to Scribe (or its CMO) by Acuitas pursuant to the Technology Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.55 "<u>Licensed Product</u>" means any product that (i) contains up to [\*] Genome Editing Constructs to Genome Edit [\*] up to [\*] Therapeutic Human Genome Targets, which Genome Editing Construct may include up to [\*], and (ii) is derived from, incorporates, or utilizes, any Licensed Technology. <u>For clarity, a Licensed Product containing more than</u> [\*] <u>Genome Editing Construct</u> [\*]<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.56 "<u>Licensed Technology</u>" means Patents covering LNP Technology and Licensed Know-How that are (a) Controlled by Acuitas or its Affiliates, (i) as of the Effective Date of the Agreement or (ii) generated or obtained during the Term of the Agreement (including the Acuitas Background Technology, Acuitas Sole Technology and Acuitas' interest in any Joint IP) and (b) necessary or useful for the research, development, manufacture, use, sale or other exploitation of a Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.57 "<u>LNP</u>" means lipid nanoparticles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.58 "<u>LNP Technology</u>" means any Technology that claims, embodies, or incorporates delivery systems (and components thereof) based on or incorporating LNPs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.59 "<u>Losses</u>" has the meaning set forth in Section 8.6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.60 "<u>Materials</u>" means any tangible chemical or biological material, [\*], along with any tangible chemical or biological material embodying any Know-How including Formulated Product and mRNA Constructs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.61 "<u>mRNA Construct</u>" means any mRNA that encodes a Genome Editing Protein Target and any associated non-coding sequences, including [\*]. The term "mRNA Construct" also includes [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.62 "<u>Non-Exclusive License</u>" means a non-exclusive license in the form attached hereto as Exhibit 5.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.63 "<u>Option</u>" has the meaning set forth in Section 5.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.64 "<u>Option Exercise Fees</u>" means for each Non-Exclusive License taken by Scribe hereunder, Three Million Dollars (US$3,000,000) payable on the Non-Exclusive License effective date of such Non-Exclusive License.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65 "<u>Option Limit</u>" has the meaning set forth in Section 5.1(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.66 "<u>Option Notice</u>" has the meaning set forth in Section 5.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.67 "<u>Party</u>" and "<u>Parties</u>" have the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.68 "<u>Patent(s)</u>" means (a) issued (and unexpired) patent, a patent application and a future patent issued from any such patent application, (b) a future patent issued from a patent application filed in any country worldwide that claims priority from a patent or patent application included in (a), (c) any additions, divisions, continuations, continuations-in-part, invention certificates, substitutions, reissues, reexaminations, extensions, registrations, utility models, supplementary protection certificates and renewals based on any patent or patent application under (a) or (b), but not including any rights that give rise to regulatory exclusivity periods (other than supplementary protection certificates, which will be treated as "<u>Patents</u>" hereunder), and (d) any counterpart of any patent or patent application under (a), (b) or (c) filed in any country worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.69 "<u>Pre-Existing Restrictions</u>" means, with respect to a particular Protein Target as of the date of the applicable Protein Target Notice, that Acuitas or its Affiliates are precluded from granting Scribe a Non-Exclusive License under the Licensed Technology (as set forth in this Agreement) due to a conflicting grant of rights (or an outstanding option to obtain such a grant of rights) or covenant to a Third Party with respect to such Protein Target pursuant to a *bona fide* written agreement that is executed in good faith in the ordinary course of business prior to the date of the Protein Target Notice for such Protein Target that is still in effect on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.70 "<u>Program</u>" means the program of activities using Acuitas LNP Technology and Scribe Technology for the development of Licensed Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.71 "<u>Protein Target</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any naturally occurring protein encoded by a specific gene locus, as identified by the applicable transcript identifier (*i.e.*, NCBI Refseq transcript ID), gene identifier (*i.e.*, NCBI Refseq Gene ID), gene name and synonyms and DNA sequence coordinates and the applicable amino acid sequence, together with [\*], *provided however that* [\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any protein that is not covered by subclause (a) above together with [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.72 "<u>Receiving Party</u>" has the meaning set forth in Section 7.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.73 "<u>Records</u>" has the meaning set forth in Section 3.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.74 "<u>Reserved Target</u>" means a Target with respect to which Scribe shall have delivered to the Escrow Agent a Target Notice and that is deemed to be added to the Reserved Target List in accordance with Section 4.2(d)(ii). A Target that is removed from or replaced on the Reserved Target List pursuant to Section 4.2 will no longer be deemed a Reserved Target. For avoidance of doubt, the term Reserved Target includes [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.75 "<u>Restricted Target List</u>" has the meaning set forth in Section 4.2(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.76 "<u>Scribe Background Technology</u>" means any and all proprietary Technology relating to Genome Editing Constructs including Guide RNAs and/or Donor DNA Sequences that is (a) owned or controlled by Scribe or its Affiliates (a) as of the Effective Date of this Agreement, or (b) generated, developed or obtained by Scribe outside of the scope of this Agreement, and in each case used for the conduct of the Workplan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.77 "<u>Scribe Indemnitees</u>" has the meaning set forth in Section 8.6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.78 "<u>Scribe Sole Technology</u>" means without regard to inventorship, all Technology (other than Workplan Data) that arises out of the Workplan and is solely an Improvement to the Scribe Background Technology and [\*]. For clarity, any Technology arising out of the Workplan that (a) [\*] and (b) [\*] is Joint Technology and not Scribe Sole Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.79 "<u>Scribe Technology</u>" means Scribe Background Technology, and Scribe Sole Technology. For the avoidance of doubt, any [\*] that is proprietary to Scribe and provided by or on behalf of Scribe to Acuitas will be Scribe Background Technology, and, therefore, Scribe Technology under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.80 "<u>Scribe Workplan Leader</u>" has the meaning set forth in Section 2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.81 "<u>Sole IP</u>" means with respect to Acuitas and Scribe, the Patents within the Acuitas Sole Technology and Scribe Sole Technology, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.82 "<u>Target</u>" means, collectively, a Genome Editing Protein Target, a Guide RNA, a Donor DNA Sequence and a Human Genome Target, as the case may be, each, as identified in the appropriate nomination form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.83 "<u>Target Acceptance Notice</u>" has the meaning set forth in Section 4.2(d)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.84 "<u>Target Notice</u>" has the meaning set forth in Section 4.2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.85 "<u>Target Rejection Notice</u>" has the meaning set forth in Section 4.2(d)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.86 "<u>Target Response Notice</u>" has the meaning set forth in Section 4.2(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 "<u>Technology</u>" means, collectively, Patents and Know-How.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.88 "<u>Technology Access Fee</u>" has the meaning set forth in Section 3.4(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.89 "<u>Term</u>" has the meaning set forth in Section 9.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.90 "<u>Territory</u>" means worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.91 "<u>Third Party</u>" means any person or entity other than Scribe, Acuitas and their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.92 "<u>Third Party Claims</u>" has the meaning set forth in Section 8.6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.93 "<u>Workplan</u>" has the meaning set forth in Section 3.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.94 "<u>Workplan Data</u>" means the results of studies using Formulated Product conducted in accordance with the Workplan. For avoidance of doubt, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.95 "<u>Workplan Leaders</u>" has the meaning set forth in Section 2.1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.96 "<u>Works and Services</u>" means the activities to be performed by Acuitas or Scribe, as applicable, pursuant to the Workplan.

**ARTICLE 2** 

**<u>Governance</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Management</u>. Management of the Program activities will be under the responsibility of [\*], for Acuitas (the "<u>Acuitas Workplan Leader</u>"), and [\*], for Scribe (the "<u>Scribe Workplan Leader</u>," and together with the Acuitas Workplan Leader, or such other individuals as the Parties may designate in writing from time to time (the "<u>Workplan Leaders</u>")). Each Workplan Leader will be the primary point of contact for the other Party on all matters relating to the Program activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Joint Development Committee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Development Committee</u>. As soon as practicable, the Parties will establish a joint development committee, comprising of [\*] (the "<u>JDC</u>"). [\*]. Each Party may replace its Workplan Leader and other JDC representatives at any time upon written notice to the other Party, *provided, however*, that each Party shall [\*] to ensure continuity on the JDC. With the consent of the other Party (which will not be unreasonably withheld, conditioned or delayed), each Party may [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Meetings</u>. During the Term, the JDC will meet [\*] by teleconference, videoconference or in person unless agreed otherwise by the JDC representatives. The JDC will have a quorum if at least [\*] representative of each Party is present or participating. Each Party will be responsible for all of its own expenses of participating in the JDC meetings. The Parties will endeavor to schedule meetings of the JDC at least [\*] in advance. The Parties will alternate in preparing the meeting agenda, and the Party that was responsible for preparing the meeting agenda will prepare and circulate for review and approval by the other Party written minutes of such meeting within [\*] after such meeting. The Parties will agree on the minutes of each meeting promptly, but in no event later than [\*] after such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Responsibilities</u>. The JDC will oversee and supervise the overall performance of the Workplan and within such scope will:

&nbsp;&nbsp;&nbsp;&nbsp;&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) review the efforts of the Parties in the performance of the Workplan and allocate those resources for the Workplan committed by Acuitas (FTE Costs and external costs) hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&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) revise and approve any revisions to the Workplan, or confirm that no revisions are necessary, on a regular basis and in any event before the start of each Calendar Quarter during the Term;

&nbsp;&nbsp;&nbsp;&nbsp;&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) form such other committees, which may meet on a regular or ad hoc basis, as the JDC may deem appropriate, *provided that* such committees may make recommendations to the JDC but may not be delegated JDC decision-making authority;

&nbsp;&nbsp;&nbsp;&nbsp;&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) address such other matters (A) relating to the activities of the Parties under the Workplan as either Party may bring before the JDC, (B) that are delegated to the JDC under this Agreement, or (C) as may be mutually agreed by the Parties from time to time; 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) attempt to resolve any disputes within the scope of the JDC's authority on an informal basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Decision-making</u>*.* The JDC will make decisions only by consensus with each Party having collectively [\*]. In the event the JDC is unable to reach agreement as to a matter within the JDC's jurisdiction within [\*] after it has first met and attempted to reach agreement (such event, a "<u>JDC Deadlock</u>"), upon the written request of a Party, such matter will be referred to a senior executive of each Party that is not on the JDC (the "<u>Executive Officers</u>") (or their designees, *provided that* such designee is not on the JDC and has decision-making authority on behalf of such Party), who will attempt in good faith to resolve such JDC Deadlock by negotiation and consultation for a [\*] period following receipt of such written notice. [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Limits on JDC Authority</u>. Each Party will retain the rights, powers and discretion granted to it under this Agreement and no such rights, powers, or discretion will be delegated to or vested in the JDC unless such delegation or vesting of rights is expressly provided for in this Agreement or the Parties expressly so agree in writing. The JDC will not have the power to amend, modify or waive compliance with this Agreement (other than as expressly permitted hereunder).

**ARTICLE 3** 

**<u>The Program</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Program Generally</u>. The Parties will jointly conduct the Program. It is intended that Acuitas will be responsible for the [\*], Scribe will be responsible for [\*], and Acuitas and Scribe will each [\*], in each case as set forth in the Workplan. It is intended that upon completion of the Workplan activities with respect to a Licensed Product, the Parties will have optimized the formulation for such Licensed Product such that GMP activities can be initiated by Scribe upon exercise of an Option with respect to that Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Workplan Preparation</u>. Within [\*]of the Effective Date the Parties will finalize a development plan (such plan, as amended from time to time in accordance with Section 3.1(c), the "<u>Workplan</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Workplan Contents</u>. The goal of the Workplan and the Program will be to evaluate and produce LNP formulations that are safe and efficacious for delivery of Scribe's Genome Editing Constructs and to advance the development of such Genome Editing Construct-LNP formulations as [\*]. All activities using Acuitas LNP Technology will be limited to Reserved Targets and will be only as set forth in the Workplan. The Workplan will include [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Amendments to the Workplan</u>. The Workplan will be reviewed as necessary at each meeting of the JDC, and at any other time upon [\*] request of either Party and will be modified in a manner that is consistent with the requirements for the Workplan set forth in Section 3.1(b) and otherwise at the direction of the JDC to reflect material scientific (and other) developments. Each Calendar Quarter, the JDC will update the Workplan to cover at least the subsequent [\*] of the Program in detail or confirm that no updates are necessary. In all events, the Workplan will be consistent and not conflict with the terms of this Agreement, and in the event of any conflict between the Workplan and this Agreement, the terms of this Agreement will control. The Workplan may be amended by the JDC [\*], including [\*]. Acuitas will [\*] with Scribe to comply with Scribe's requests. Scribe may not exercise its final decision-making authority to amend the Workplan to include any activities that conflict with Pre-Existing Restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Obligations Under the Workplan</u>. During the Term, each Party will perform the Works and Services in a professional manner and in accordance with the Workplan and all applicable Laws, and each Party will use Diligent Efforts to meet the objectives and timelines set forth therein. Neither Party shall knowingly employ (or use a subcontractor that employs) in the performance of the Works and Services

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any individual or entity that is Debarred or subject to Debarment. It is understood that the activities and goals of the Workplan are experimental and that successful results cannot be guaranteed. The Parties will otherwise conduct the Program on the terms and conditions set forth in this Agreement and in accordance with the Workplan. Each Party will cooperate with and provide reasonably requested non-financial support to the other Party in such other Party's performance of its responsibilities under the Workplan. In addition to the reporting obligations set forth in Section 3.3(b), each Party will keep the other Party reasonably informed of such Party's activities under the Workplan through the JDC or as otherwise reasonably requested by the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Supply of Formulated Product</u>. Acuitas will use Diligent Efforts to manufacture and supply Scribe with Formulated Product as set forth in the Workplan and Scribe will pay to Acuitas the Formulated Product Fee for such Formulated Product meeting the specifications and other requirements of the Workplan. Acuitas and Scribe will use the Formulated Product solely [\*] as set forth in the Workplan and will not use Formulated Product [\*]. The Formulated Product will be manufactured and supplied by Acuitas (i) in accordance with the specifications set forth in the Workplan, and (ii) in compliance with applicable Laws. No Formulated Product will be used outside of the Workplan. Scribe will not perform any chemical analysis or testing of Formulated Product except as set forth in the Workplan and specifically will not attempt to determine the lipid composition or lipid structures or in any way seek to reverse-engineer any Formulated Product. Further, Scribe will not provide any Formulated Product to a Third Party (except for a permitted subcontractor subject to Section 3.1(i)) unless previously approved by Acuitas in writing. In the event Scribe requests that Acuitas supply to Scribe Formulated Product with respect to a Human Genome Target following the execution of a Non-Exclusive License for the Human Genome Target, and Acuitas agrees to such supply, all uses of the Formulated Product will be considered Workplan activities governed by the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Technology Transfer to Contract Manufacturing Organization</u>. Following the completion of the Workplan for a Licensed Product and execution of a Non-Exclusive License, Acuitas will promptly (and in any event within [\*] following designation by Scribe of the applicable GMP contract manufacturing organization (a "<u>CMO</u>"), *provided* such CMO is able to support this timeline) conduct a single transfer of Know-How (including standard operating procedures and protocols) relating to the then-current formulation process, raw materials supply (including testing and release), and analytical characterization for the manufacture, testing and release of such Licensed Product ("<u>Transferred Technology</u>") pursuant to a mutually agreed plan (the "<u>Technology Transfer Plan</u>") to a single CMO determined by Scribe and subject to Acuitas' prior written consent, *provided* that Acuitas may not withhold consent to such CMO unless it provides credible evidence (reasonably satisfactory to Scribe) that the CMO is subject to a Deficiency ("<u>Technology Transfer</u>"). Acuitas consents to the CMOs set forth in Exhibit 3.1(f). Acuitas will provide reasonable assistance to enable the CMO to manufacture such Licensed Product. Initiation of such technology transfer will be determined by Scribe and will be for the then current formulation of the Licensed Product. Acuitas will be reimbursed for such activities by Scribe on an FTE basis and Scribe will also be responsible for all external costs incurred by Acuitas relating to transfer of Licensed Product formulation to such CMO, *provided* such costs are documented in writing and have been approved by Scribe in advance. [\*]. Once the Licensed Product formulation is transferred to the CMO, Scribe will assume responsibilities for future manufacturing of Licensed Product. Acuitas will provide ongoing technical support and reasonable cooperation as needed to respond to inquiries by regulatory authorities if requested by Scribe, with such support reimbursed on a time, materials, and FTE basis. All technology transfer activities and ongoing technical support will be considered Workplan activities governed by the terms of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Payment for External Expenses</u>. On a [\*] basis, Scribe will reimburse Acuitas for any reasonable external costs that are incurred by Acuitas in connection with performing the Works and Services in accordance with the Workplan and Workplan budget, *provided that* such external costs have been specified in the Workplan or, if agreed by the JDC, are promptly added to the Workplan. Upon request by Scribe, Acuitas will provide an estimate of [\*] costs within [\*] of such request. Acuitas will send a reasonably detailed invoice to Scribe no later than [\*] after the end of each [\*], which invoice shall include a detailed summary of and reasonable documentation for all such external costs. Scribe agrees to pay undisputed amounts in each such invoice within [\*] of Scribe's receipt thereof. Except for such reimbursement of external costs and Scribe's payments to Acuitas with respect to FTE Costs as set forth in Section 3.2, each Party will bear its own costs of performing the Workplan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Collaboration Partners</u>. Scribe may conduct parts of the Program together with a Third Party other than as set forth in subsection (i) below (Permitted Subcontracting); *provided that* [\*]. Acuitas may refuse to consent to a Third Party that Scribe wishes to use as a Collaboration Partner, and such refusal will be deemed reasonable, if (x) [\*] and (y) [\*]. For clarity, [\*]. Scribe will ensure that each Collaboration Partner is subject to terms and conditions consistent with the terms and conditions in this Agreement (i) protecting and limiting use and disclosure of Confidential Information and Materials and Know-How, and (ii) requiring such Collaboration Partner and its personnel to assign to Scribe all right, title and interest in and to any Technology created, conceived, developed or reduced to practice in the performance of the Workplan, in order to give effect to the provisions of this Agreement including but not limited to ARTICLES 6 and 7, as applicable, excluding any such arising Technology that is an Improvement to Technology of such Collaboration Partner and does not incorporate or consist of an Improvement to Acuitas Background Technology or Acuitas Sole Technology. For avoidance of doubt, breach of any of the terms or conditions of this Agreement by a Collaboration Partner shall be a breach by Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Permitted Subcontracting</u>. Each Party may subcontract activities to be performed under the Workplan to any of its Affiliates, subject to the Affiliate's compliance with the terms and conditions of this Agreement including ARTICLES 6 and 7 below. In addition, each Party may subcontract its activities to be performed under the Workplan to a Contract Research Organization provided that the subcontractor is reflected in the Workplan. Any such Contract Research Organization will have entered into a written agreement with the subcontracting Party that includes terms and conditions protecting and limiting use and disclosure of Confidential Information, Materials and Know-How at least to the same extent as under this Agreement, and requiring such Contract Research Organization and its personnel to assign to the subcontracting Party all right, title and interest in and to any Patents and Know-How and Materials created, conceived, developed or reduced to practice in connection with the performance of subcontracted activities in accordance with this Agreement in order to give effect to the provisions of this Agreement including but not limited to ARTICLES 6 and 7, as applicable, excluding any Improvement to such Contract Research Organization's Technology that does not incorporate or consist of an Improvement to Acuitas Background Technology or Acuitas Sole Technology. Any such subcontracting activities will be described in the reports for the Program required by Section 3.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>FTEs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally</u>*.* Acuitas will use Diligent Efforts to perform the Works and Services assigned to it under the Workplan and as part of the Program. The actual number of Acuitas FTEs committed to work on the Program at any particular point in time will be set forth in the Workplan. The Parties will prepare the Workplan, which will determine the number of Acuitas FTEs to be funded each year. Notwithstanding anything to the contrary set forth herein, in no event will (i) Acuitas be required to devote any FTEs to the conduct of the Program other than those funded by Scribe or (ii) Scribe be required to fund more than the actual number of FTEs devoted by Acuitas to the Workplan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>FTEs</u>*.* Acuitas will ensure that those individuals selected by Acuitas to perform the Works and Services and otherwise support the activities to be undertaken by Acuitas pursuant to the Workplan will have sufficient scientific expertise, skill, training, and competency to perform the proposed work and have similar skills, training and competency as those FTEs employed by Acuitas to perform work on Acuitas' internal programs and for Third Parties. In the event that Scribe has concerns regarding the selection of an individual to perform Works and Services or other activities under this Agreement, the Parties will discuss such concerns in good faith through the JDC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>FTE Costs</u>. Scribe will fund Acuitas FTEs based on the number of hours actually worked by such FTEs and otherwise as set forth in the Workplan, up to the amounts set forth in the Workplan budget. Scribe will reimburse Acuitas for FTE Costs on a [\*] basis. Acuitas will send a reasonably detailed invoice to Scribe no later than [\*] after the end of each [\*], which invoice shall include a summary of all activities by the name of each individual, number of hours devoted by each such individual, and Works and Services type/activity performed by each such individual during such [\*]. Scribe agrees to pay undisputed amounts in each such invoice within [\*] of Scribe's receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Program Records, Reports and Materials</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Records</u>. Each Party will maintain, or cause to be maintained, records of its activities under the Program in sufficient detail and in good scientific manner appropriate for scientific, Patent, and regulatory purposes, that will properly reflect all work included in the Program ("<u>Records</u>") for a period of at least [\*] after the creation of such Records or such longer period required by applicable Laws. Scribe will have the right to request and receive a copy of any such Records maintained by Acuitas; and Acuitas will have the right to request and receive a copy of any such Records maintained by Scribe to the extent such Records are required by Acuitas to exercise its rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Data and Program Reports</u>. Acuitas and Scribe will share with one another through the JDC the Workplan Data. The Parties will not share with each other Confidential Information or Know-How relating to the Scribe Background Technology or Acuitas Background Technology, or the Acuitas Sole Technology or Scribe Sole Technology, respectively, including, in the case of Acuitas, LNP formulation information, except as provided in Section 3.1(f) or as needed to respond to inquiries by regulatory authorities. Scribe will share with Acuitas Workplan Data regarding the [\*] only as and if needed by Acuitas to evaluate performance of the LNP Technology in order to conduct the Program. Acuitas may disclose Workplan Data in connection with the filing of patent applications for Acuitas Sole Technology (so long as no Scribe Confidential Information is disclosed) and as otherwise set forth in Sections 7.4(a), (b), and (d). Scribe may disclose Workplan Data in connection with the filing of patent applications for Scribe Sole Technology (so long as no Acuitas Confidential Information is disclosed) and as otherwise set forth in Sections 7.4(a), (b), (d) and (e). Scribe may only use Workplan Data for the performance of its obligations under this Agreement and for internal research and development activities (which, for clarity, shall not include regulatory approval or commercial exploitation of a product) and for avoidance of doubt may disclose Workplan Data for such purposes to Third Parties so long as no Acuitas Confidential Information is disclosed; *provided that* following Scribe's exercise of an Option, Scribe may also use and disclose such Workplan Data as set forth in a Non-Exclusive License. Acuitas may only use Workplan Data for the performance of its obligations under this Agreement and for internal research and development activities (which, for clarity, shall not include regulatory approval or commercial exploitation of a product) and for avoidance of doubt may disclose Workplan Data to Third Parties for such purposes so long as no Scribe Confidential Information is disclosed. During the Term, each Party will furnish to the JDC a summary written report within [\*] after the end of each [\*] describing its progress under the Workplan and evaluating such work in relation to the goals of the Workplan as well as provide such other information as reasonably requested by the JDC. Within [\*] following expiration or earlier termination of this Agreement, each Party will furnish to the JDC a final summary written report.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Materials</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Party will, during the Term, furnish to each other samples of Materials which comprise, embody or incorporate Scribe Technology or Acuitas LNP Technology, as the case may be, only as expressly set forth in the Workplan. Acuitas will furnish to Scribe the quantities of Formulated Product as set forth in the Workplan and will use commercially reasonable efforts to provide any additional quantities which will be required in performance of the Program. In addition, each Party will, upon the other Party's reasonable written request, furnish to such other Party other samples of Materials which comprise, embody or incorporate Scribe Technology or Acuitas LNP Technology that are in such Party's Control and are reasonable (both in quantity and identity) and useful for the other Party to carry out its responsibilities under the Workplan, *provided* [\*]. Upon termination or expiration of this Agreement and unless such Material is the GMP ready formulation as set forth in Section 3.1(f) of a Licensed Product under a Non-Exclusive License agreement, Materials will, at the providing Party's option and request to be made (if at all) within [\*] after such termination or expiration or the effective date of termination, be returned to the providing Party or destroyed. The provision of Materials hereunder by either Party will not constitute any grant, option or license under any Patents or Know-How, except as expressly set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Party will use such Materials only in accordance with the Workplan and otherwise in accordance with the terms and conditions of this Agreement. Except as otherwise specified in the Workplan or except with the prior written consent of the supplying Party, the Party receiving any Materials will not distribute or otherwise allow the release of Materials to any Third Party, except, with respect to either Party, to any permitted subcontractors under Section 3.1(i) and, with respect to Scribe, to its CMO or any Collaboration Partners. All Materials delivered to the receiving Party will remain the sole property of the providing Party (except that the Formulated Product will be the property of both Parties) and will be used in compliance with all applicable Laws and only to perform activities set forth in the Workplan. Formulated Product will be destroyed by both Parties upon written request by either Party. The Materials supplied under this Agreement will be used with prudence and appropriate caution in any experimental work because not all of their characteristics may be known.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Program Licenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By Acuitas</u>. Subject to the terms and conditions of this Agreement, Acuitas hereby grants to Scribe (and to its Affiliates) a worldwide, non-exclusive, royalty-free license under the Acuitas LNP Technology, solely to the extent necessary to enable Scribe (and its Affiliates) to perform its activities set forth in the Workplan and for no other purpose. The foregoing license will not include the right to grant sublicenses, except to permitted Collaboration Partners and Contract Research Organizations in accordance with Sections 3.1(i) and 3.1(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By Scribe</u>. Subject to the terms and conditions of this Agreement, Scribe hereby grants to Acuitas a worldwide, non-exclusive, royalty-free license under the Scribe Technology, solely to the extent needed to enable Acuitas to perform its activities set forth in the Workplan and for no other purpose. The foregoing license will not include the right to grant sublicenses, except to permitted Contract Research Organizations in accordance with Section 3.1(i).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Option for Acuitas In-Licensed Technology Licenses</u>. In the event that, upon exercise of its Option with respect to Licensed Products directed to a Reserved Targets, Scribe, in its reasonable judgment, considers it necessary or desirable to obtain a license to any LNP Technology controlled by a Third Party in order to develop, have developed, make, have made, use and have used (including for research and development), sell, offer for sale, have sold, import and have imported Licensed Products in the Field of Use in the Territory, Scribe may notify Acuitas and Acuitas will confirm whether any such LNP Technology constitutes Acuitas In-Licensed Technology. Acuitas hereby grants to Scribe the option to acquire one or more sublicenses with respect to any such LNP Technology that constitutes Acuitas In-Licensed Technology ("<u>Sublicense Option</u>"). Such sublicense will be granted subject to the terms and conditions of the Acuitas In-License on the effective date of the sublicense agreement and Scribe will be responsible for all royalties, milestones and other payments thereunder to the extent based on the grant or exercise of such sublicense rights to or by Scribe, its Affiliates or Sublicensees, it being understood and agreed that, except as set forth in this sentence, Scribe shall not be required to pay any financial consideration to Acuitas for the grant of a sublicense under any such Acuitas In-License over and above the financial consideration paid by Scribe under this Agreement or the applicable non-exclusive License Agreement(s) entered into between Scribe and Acuitas. The scope of each such Sublicense Option for a sublicense will not exceed the scope of the license granted to Scribe under Section 2.1(a) of the Non-Exclusive License. Scribe is entitled to exercise such its Sublicense Option at any time after it exercises its Option with respect to Licensed Products directed to a Reserved Target as set forth in ARTICLE 4, and upon written notice of Scribe that it exercises the Sublicense Option, the Parties shall finalize in good faith the terms and conditions of such sublicense agreement according to the terms and conditions of the Acuitas In-License. Acuitas shall have the sole right to amend, modify and/or terminate any Acuitas In-License until such time as Scribe and Acuitas shall have entered into the sublicense with respect to such Acuitas In-Licensed Technology, but once sublicensed to Scribe, Acuitas shall use Diligent Efforts to maintain, and shall not modify or terminate without Scribe's prior written consent (not to be unreasonably conditioned or delayed), any Acuitas In-License covering Acuitas In-Licensed Technology sublicensed by Scribe. Acuitas shall provide Scribe with opportunities to review Acuitas In-Licenses in advance and provide reasonable additional information requested by Scribe relating to Acuitas In-Licenses in order to facilitate Scribe's ability to make determinations regarding its exercise of the Sublicense Option. Scribe will abide, and will cause all of its Affiliates and applicable Sublicensees to abide, in all material respects by all requirements of each Acuitas In-License sublicensed hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Other Licenses</u>. No license or right is or will be created or granted hereunder by implication, estoppel or otherwise. All licenses and rights are or will be granted only as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Technology Access Fee</u>. For each Option, Scribe will pay to Acuitas a technology access fee equal to Four Hundred Thousand Dollars (US$400,000) for each Option ("<u>Technology Access Fee</u>") within [\*] following the Effective Date, and thereafter on each anniversary of the Effective Date for each Option that has not been taken as a license by Scribe as of the anniversary date. Technology Access Fees will not be prorated. Upon payment of a [\*] deferral fee (the "<u>Deferral Fee</u>") payable on the Effective Date, Scribe may defer the payment of the Technology Access Fee for [\*] of its [\*] Options (the "<u>Deferred Options</u>") for up to [\*] (the "<u>Deferral Period</u>"). With respect to each Deferred Option, if Scribe does not pay the Technology Access Fee for that Deferred Option within the Deferral Period, that Deferred Option will terminate. The Deferral Fee can be credited against the Technology Access Fee for one of the Deferred Options.

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**ARTICLE 4** 

**<u>Reserved Targets</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Generally</u>. Scribe will have the right, but not the obligation, to non-exclusively reserve Targets for potential use in the Workplan, in accordance with this ARTICLE 4. Scribe will select the Targets that will be the subject of the work performed as part of the Program from the Reserved Target List in accordance with this ARTICLE 4. Additionally, Scribe shall have the right, but not the obligation, to exercise Options in accordance with this ARTICLE 4 and ARTICLE 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Reserved Protein Target List, Restricted Protein Target List and Protein Target Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Escrow Agent</u>*.* The Escrow Agent will maintain in confidence the Restricted Target List and respond to Scribe's Target Notices and Option Notices on behalf of Acuitas. The Escrow Agent will not inform Acuitas of any Scribe potential Reserved Targets or any Scribe Reserved Targets, without Scribe's prior written consent. All costs and expenses incurred through the Escrow Agent will be borne by Acuitas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Pre-Existing Restrictions</u>*.* Acuitas will maintain, at the Escrow Agent, a current and up-to-date list of Targets that are subject to Pre-Existing Restrictions (the "<u>Restricted Target List</u>"). Such list will also identify the scope of the Pre-Existing Restrictions. The decision of the Escrow Agent with respect to the Targets subject to Pre-Existing Restrictions will be conclusive unless there is fraud on the part of Acuitas, in which case Scribe reserves all rights against Acuitas, but absent fraud on the part of the Escrow Agent, Scribe shall have no recourse against the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Target Notices</u>. If (i) Scribe desires to add or remove a Target to or from the Reserved Target List, or (ii) Scribe desires to exercise an Option for a Licensed Product, Scribe will notify the Escrow Agent in writing of the same. Such notice will identify as applicable, in addition to the information relating to such proposed Targets set forth on the form of Target Notice attached hereto as Exhibit 4.2, (A) in the case of clause (i) above, whether Scribe wishes to non-exclusively reserve such Target or remove such Target from the Reserved Target List, (B) in the case of clause (ii) above, if Scribe wishes to exercise an Option (each such notice, a "<u>Target Notice</u>"). For clarity, each Target Notice shall include [\*]. Reservations for all Targets should be made using the table in Exhibit 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Target Response Notices</u>. The Escrow Agent, on behalf of Acuitas, will review each Target Notice provided by Scribe and, within [\*] of the Escrow Agent's receipt of a Target Notice, the Escrow Agent will provide Scribe with written notice that includes the following information (each such notice, a "<u>Target Response Notice</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, as of the date of Scribe's Target Notice for a Target, such Target is on the Restricted Target List and is listed as being subject to Pre-Existing Restrictions that restrict Acuitas from taking the action requested by Scribe in the Target Notice, or if the action requested by Scribe would exceed the applicable Concurrent Reserved Target List Limit or the Option Limit, then the Target Response Notice issued for such Target will so certify to Scribe and will specify whether such applicable Target is subject to a Pre-Existing Restriction (such notice, a "<u>Target Rejection Notice</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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If, as of the date of Scribe's Target Notice for a Target, such Target is not subject to any Pre-Existing Restrictions that would prevent the action requested by Scribe in the Target Notice, and the action requested by Scribe would not exceed the applicable Concurrent Reserved Target List Limit or the Option Limit, then such Target shall, consistent with the Target Notice, automatically be as of the date of the Target Notice (A) added to or removed from the Reserved Target List on a non-exclusive basis, or (B) deemed to be subject to an Option exercised by Scribe on a non-exclusive basis subject to terms and conditions of Section 5.2, including the payment of the applicable Option Exercise Fee, and the Target Response Notice issued for such Target will certify the same to Scribe (such notice, an "<u>Target Acceptance Notice</u>"). So long as a Target is on the Reserved Target List and Scribe has an Option with respect to such Target, Acuitas and its Affiliates will not exclusively internally reserve such Target or

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grant to any Third Party an exclusive license or other rights (or an option to obtain such a grant of license or other rights) under the Licensed Technology with respect to such Target. This Section 4.2(d)(ii) shall survive the termination or expiration of this Agreement solely in the event that the Parties enter into a Non-Exclusive License prior to such termination or expiration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Concurrent Reserved Target List Limits</u>. During the Term, Scribe will have the right to select up to [\*] as provided for in Section 4.2(c) at any one time to be placed on the Reserved Target List (the "<u>Concurrent Reserved Target List Limit</u>"). Additional [\*] can be removed from the Reserved Target List, added to the Reserved Target List and/or replaced on the Reserved Target List at any time subject to the limitations on the total numbers of each Target to be associated with the [\*]. The Concurrent Reserved Target List Limit for [\*] will be reduced by one for each Option exercised such that the number of reserved [\*] plus the number of Options exercised shall not exceed [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Minimum Target Reservation Requirement</u>. Subject to the Concurrent Reserved Target List Limit and the availability of potential Reserved Targets for reservation pursuant to this Section 4.2, Scribe will elect and maintain at least [\*] to be placed on the Reserved Target List at all times ("<u>Minimum Target Reservation Requirement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Expiration of Pre-Existing Restrictions</u>. If any Pre-Existing Restrictions identified in a Target Rejection Notice that precluded Acuitas from taking the action requested by Scribe in a Target Notice later expire or otherwise are modified or terminate such that Acuitas is no longer precluded from taking the action requested by Scribe in a Target Notice, the Escrow Agent will notify Scribe of such event and Scribe will have an option, for a period of [\*] following delivery of such notice to Scribe, to (a) add such Target to the Reserved Target List, or (b) exercise an Option with respect to a Licensed Product directed to such Target, as the case may be, in each case ((a) and (b)), subject to the Concurrent Reserved Target List Limits and the Option Limit. For clarity, Scribe will at all times thereafter have the right to provide a Target Notice for such Target to the Escrow Agent pursuant to Section 4.2(c) but such Target Notice will be subject to any intervening Pre-Existing Restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Primary Human Genome Target Reservation and Maintenance Fees</u>. Scribe will pay to Acuitas (i) [\*] ("<u>Target Reservation and Maintenance Fee</u>"). Primary Human Genome Target(s) removed from the Reserved Target List may be made available to Third Parties and the related payments will not be credited against any Option Exercise Fees, unless the same Primary Human Genome Target is re-nominated to the Reserved Target List. Reservations of [\*] will be non-exclusive and will not be subject to any reservation or maintenance fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Credit</u>. The Target Reservation and Maintenance Fee for a [\*] against the Option Exercise Fee payable if Scribe exercises its Option for a Non-Exclusive License for Licensed Product directed to such [\*].

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**ARTICLE 5** 

**<u>Scribe License Options</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Option</u>. From the period commencing on the Effective Date and, subject to Section 9.2(a) and Section 10.15, ending on the expiration of the Term, Acuitas hereby grants to Scribe the options (each, an "<u>Option</u>") set forth below. Scribe's Option is non-exclusive with respect to Licensed Products directed to a reserved Therapeutic Human Genome Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Exclusive License</u>. An Option shall include the right to enter into a non-exclusive, worldwide license, with a right to sub-license through multiple tiers, under the Licensed Technology to research, develop, make, have made, keep, use, sell, offer to sell, have sold, import, export or otherwise commercialize and exploit Licensed Products in the Field of Use in the Territory. The Option to obtain a Non-Exclusive License will be limited to Human Genome Targets that are on the Reserved Target List at the time of exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Option Limit</u>. Scribe will have the right to exercise Options with respect to a [\*] Primary Human Genome Targets (the "<u>Option Limit</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Form of Non-Exclusive License Agreement</u>*.* The form of Non-Exclusive License agreement attached hereto as Exhibit 5.1(c) will be used for all licenses granted upon the exercise of an Option hereunder. Each Non-Exclusive License will grant rights for Licensed Products directed to the reserved Target(s) specified in the Option Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Scribe</u><u>'</u><u>s Exercise of Option</u>. Scribe may exercise each such Option by delivering to Acuitas an Option Notice and paying to Acuitas the Option Exercise Fee in accordance with this Section 5.2. If not exercised prior to the expiration of the Term, the Options granted to Scribe under this ARTICLE 5 with respect to all Reserved Targets will terminate in full and will no longer be exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Option Notice</u>*.* Scribe has the right to deliver to the Escrow Agent, prior to the expiration of the Term, a Target Notice including the information set forth in Exhibit 4.2(c), as applicable, for the Licensed Products directed to the Reserved Targets for which Scribe wishes to exercise an Option (each such Target Notice, an "<u>Option Notice</u>"). Scribe will submit one (1) Option Notice for each Licensed Product for which Scribe wishes to exercise the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Diligence Right</u>. Notwithstanding anything to the contrary contained herein, in connection with or after delivery of the Option Notice, Scribe has the right, in its sole discretion, to seek additional information and conduct a legal due diligence investigation regarding the Acuitas LNP Technology that covers the relevant Formulated Product or the manufacture thereof prior to entering into a Non-Exclusive License and paying the Option Exercise Fee in respect of such Non-Exclusive License. Scribe can exercise such right by providing written notice to Acuitas (a "<u>Diligence Request</u>") within [\*] following Scribe's delivery of an Option Notice and, in such event, Acuitas shall promptly (not later than [\*] after Acuitas receives such Diligence Request), identify and disclose to Scribe's external counsel, or cause to be identified and disclosed to Scribe's external counsel, on a confidential counsel-to-counsel basis such Acuitas LNP Technology covering the relevant Formulated Product or the manufacture thereof, including the structure and composition of the LNP Technology component of such Formulated Product and any components or intermediates thereof, and any method of making or manufacturing the foregoing, and Scribe shall have [\*] following such meeting and the identification and disclosure of such information (the "<u>Diligence Period</u>") to conduct such diligence investigation. Without limiting the foregoing, during the Diligence Period Acuitas shall provide or cause its counsel to provide, in good faith, to Scribe's counsel, on a confidential counsel-to-counsel basis, such additional information regarding such Acuitas LNP Technology as Scribe's external counsel may reasonably request in connection with such diligence investigation, subject to any then-existing confidentiality restrictions that prohibit Acuitas and its counsel from disclosing such information to Scribe's external counsel. Any such information disclosed by Acuitas or its counsel shall be subject to the terms of this Section 5.2(b). Scribe's counsel may disclose to Scribe's officers, directors and employees the findings of such due diligence investigation but will not disclose the structure or composition of the LNP Technology component (or any component or intermediary thereof) unless and until a Non-Exclusive License Agreement is concluded in connection with such Option Notice. On or prior to the expiration of the Diligence Period, Scribe shall notify Acuitas in writing whether it wishes to withdraw the applicable Option Notice or proceed with the execution of a Non-Exclusive License, and if Scribe elects to withdraw an Option Notice under this subsection (c), Scribe shall have no obligation to enter into a Non-Exclusive License or pay the Option Exercise Fee in respect thereof, and shall not be deemed to have exercised an Option with respect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Exclusive License Agreement</u>. Within [\*] of the Escrow Agent's receipt of an Option Notice, or (if applicable) Acuitas' receipt of Scribe's notice to proceed with execution of a Non-Exclusive License following completion of satisfactory diligence as set forth in Section 5.2(b), Scribe and Acuitas will enter into a Non-Exclusive License in the form attached hereto as Exhibit 5.2(c) for the Licensed Product directed to the Reserved Targets specified in the relevant Option Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Option Exercise Fee</u>*.* Within [\*] after the effective date of a Non-Exclusive License, Acuitas will issue an invoice to Scribe for the Option Exercise Fee (less any amounts creditable against such Option Exercise Fee) for such Non-Exclusive License pursuant to Section 4.4(b). Each such payment will be due within [\*] after Scribe's receipt of such invoice from Acuitas. A separate Option Exercise Fee will be required for each Non-Exclusive License executed by the Parties in accordance with this ARTICLE 5.

**ARTICLE 6** 

**<u>Intellectual Property</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Disclosure of LNP Know-How</u>. Notwithstanding anything to the contrary in this Agreement, neither Party will disclose to the other Party any Know-How owned or Controlled by such first Party other than pursuant to the Workplan or a Non-Exclusive License following Scribe's exercise of an Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Ownership</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Scribe Owned Technology</u>. As between the Parties, Scribe will own all right, title and interest in and to the Scribe Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Acuitas Owned Technology</u>. As between the Parties, Acuitas will own all right, title and interest in and to the Acuitas LNP Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Joint Technology</u>. The Parties will jointly own any and all Joint Technology. Each Party will have an undivided one-half interest in and to such Joint Technology. Subject to the terms of this Agreement and any Non-Exclusive License agreement, each Party may use and practice such Joint Technology, including the right to license and sublicense or otherwise to exploit such Joint Technology, and may transfer or encumber its ownership interest in and to the Joint Technology, without an accounting or obligation to, or consent required from, the other Party. At the reasonable written request of a Party, the other Party will in writing grant such consents and confirm that no such accounting is required to effectuate the foregoing regarding Joint Technology. Neither Party will file any Patent application or otherwise seek to protect any Joint Technology without the prior written consent of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Assignment of Technology</u>. Scribe, for itself and on behalf of its Affiliates, hereby assigns (and to the extent such assignment can only be made in the future, hereby agrees to assign), to Acuitas (i) any right, title and interest that it may have or acquire in any Acuitas Sole Technology, and (ii) a joint and undivided one-half interest in and to all Joint Technology. Acuitas, for itself and on behalf of its Affiliates, hereby assigns (and to the extent such assignment can only be made in the future, hereby agrees to assign), to Scribe (i) any right, title and interest that it may have or acquire in any Scribe Sole Technology,

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and (ii) a joint and undivided one-half interest in and to all Joint Technology. The Parties will reasonably cooperate to document the rights of each Party more fully as defined in this Section 6.2, including by executing all lawful papers and instruments, obtaining and executing necessary powers of attorney and assignments by the named inventors, making all rightful oaths and declarations and providing consultation and assistance as may be necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Assignment</u>. Each Party will require, to the extent legally possible under relevant national or local Laws and subject to Section 3.1(h) and Section 3.1(i), all of its employees, Affiliates and any Third Parties working pursuant to this Agreement on its behalf, to assign, or otherwise convey rights to such Party in, its right, title and interest in any invention or Patent conceived, reduced to practice, created or otherwise made in performance of the Workplan in order to accomplish the ownership provisions set forth in this ARTICLE 6. Each Party will be responsible for any compensation payable by such Party to its employees, Affiliates or any Third Parties working pursuant to this Agreement on its behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Prosecution and Maintenance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Sole IP</u>. As between the Parties (i) Scribe will have the sole right but not the obligation, at its expense, to prosecute and maintain Patents within the Scribe Technology and (ii) Acuitas will have the sole right but not the obligation, at its expense, to prosecute and maintain Patents within the Acuitas LNP Technology, subject to the terms of the Non-Exclusive License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Joint IP</u>. Upon written request by either Party, the Parties will promptly enter into a joint prosecution and maintenance agreement ("<u>Joint Prosecution and Maintenance Agreement</u>") with respect to the Joint IP that, unless otherwise agreed by the Parties, shall provide at a minimum that the Party with the responsibility to prosecute and maintain the Patents within the Joint IP will (i) keep the other Party reasonably informed of its prosecution and maintenance activities, (ii) provide the other Party with a reasonable opportunity to review in advance and comment on any material submissions or correspondence with a patent office and incorporate in good faith any comments from the other Party, and (iii) provide to the other Party copies of all correspondence sent to or received from (within [\*] after receipt thereof) a patent office with respect to such Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Cooperation</u>. Each Party will reasonably cooperate with the other Party in the prosecution and maintenance of the Patents within the Joint Technology. Such cooperation includes promptly executing all documents, or requiring inventors, subcontractors, employees and consultants to execute all documents, as reasonable and appropriate so as to enable the prosecution and maintenance of any such Patents in any country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Patent Enforcement</u> <u>and Defense</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Acuitas LNP Technology</u>. Acuitas will have the sole right, but not the obligation, to seek to enforce and defend Patents included in the Acuitas LNP Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Scribe Technology</u>. As between the Parties, Scribe will have the sole right but not the obligation, at its expense, to enforce and defend any Patents within the Scribe Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Joint Technology</u>. Acuitas shall have the first right, but not obligation, for enforcing the Joint Technology against any infringement by a Third Party in the Territory ("<u>Third Party Infringement</u>") if such Third Party Infringement is with respect to the LNP Technology (and not the Genome Editing Construct). Scribe shall have the first right, but not the obligation, for enforcing the Joint Technology against such Third Party Infringement if such Third Party Infringement is with respect to the

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Genome Editing Construct. If the Party with the first right to enforce the Joint Technology does not, within [\*] after becoming aware of the Third Party Infringement, commence a suit to enforce the Joint Technology, or take other action to terminate such Third Party Infringement, then the other Party will have the right, but not the obligation, to commence such a suit or take such an action at its own cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Defense of Joint IP Against Third Party Invalidity Claims</u>. Each Party shall promptly notify the other Party in writing of any alleged or threatened assertion (or claim), of invalidity or unenforceability of any Patents included in the Joint IP by a Third Party, in each case in the Territory and of which such Party becomes aware ("<u>Invalidity Claim</u>"). Acuitas will have the first right, but not the obligation, to defend any Invalidity Claim of a Joint IP Patent if such Claim is with respect to LNP Technology. Scribe will have the first right, but not the obligation, to defend against any Invalidity Claim with respect to Patents included in the Joint IP if such claim is with respect to the Genome Editing Construct. If the Party with the first right to defend any Invalidity Claim with respect to Joint IP does not, within [\*] after becoming aware of the Invalidity Claim commence an action to defend the Joint IP, then the other Party will have the right, but not the obligation, to commence such an action at its own cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Cooperation</u>. The Party bringing or defending a claim, suit or action pursuant to Section 6.6(c) or 6.7 ("<u>Controlling Party</u>") will be solely responsible for any costs and expenses incurred by such Controlling Party as a result of such claim, suit or action. For Joint IP claims, suits or actions, the other Party will have the right to participate or otherwise be involved and, if it elects to do so, the Controlling Party will provide the participating Party and its counsel an opportunity to consult with the Controlling Party and its counsel regarding such claim, suit or action. In any event, the other Party will provide to the Controlling Party reasonable assistance in such enforcement or defense, including joining an action as a party plaintiff if so required by Laws to pursue any such claim, suit or action, provided that the Controlling Party agrees to indemnify such other Party for its involvement in such claim, suit or action and pay those Losses incurred by such other Party in connection with such joinder, but subject to the indemnification obligations of the Parties pursuant to this Agreement and the Non-Exclusive License. The Controlling Party will keep the other Party regularly informed of the status and progress of such enforcement and defense efforts and will reasonably consider the other Party's comments on any such efforts. Neither Party will settle or consent to an adverse judgment in any such claim, suit or action without the prior written consent of the other Party (not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Recovery - Joint IP</u>. If the Controlling Party for any Joint IP claim, suit or action recovers monetary damages, such recovery will be allocated first to the reimbursement of any costs and expenses incurred by the Controlling Party and thereafter to the reimbursement of any costs and expenses incurred by the other Party, in each case in connection with such claim, suit or action. Any remaining amounts will be allocated [\*] to each Party.

**ARTICLE 7** 

**<u>Confidentiality</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Confidential Information</u>. Each Party ("<u>Disclosing Party</u><u>"</u>) may disclose to the other Party ("<u>Receiving Party</u>"), and the Receiving Party may acquire during the course and conduct of activities under the Agreement, certain non-public confidential information of the Disclosing Party in connection with this Agreement. The term "<u>Confidential Information</u>" means all proprietary or non-public information of any kind, whether in written, oral, graphical, machine-readable or other form, whether or not marked as confidential or proprietary, that is disclosed or made available by or on behalf of the Disclosing Party to or on behalf of the Receiving Party in connection with this Agreement; *provided*, that (a) the Acuitas Sole Technology will be the Confidential Information of Acuitas and the Scribe Sole Technology will be the Confidential Information of Scribe, (b) the Joint Technology will be Confidential Information of both

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Parties, and either Party may use and disclose Joint Technology in connection with such Party's permitted exploitation of such Technology, *provided that* the recipient is bound by confidentiality and non-use obligations no less restrictive than those under this Agreement and any Non-Exclusive License agreement, and (c) the data and results generated from the Workplan shall be subject to Section 3.3(b), which shall supersede any other provisions of this Agreement to the contrary. For the avoidance of doubt, the identity of any Scribe Reserved Targets and the information contained in any Protein Target Notice submitted by Scribe to the Escrow Agent, are the Confidential Information of Scribe. Confidential Information includes Confidential Information disclosed by either Party pursuant to the Confidential Disclosure Agreement prior to the Effective Date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Restrictions</u>. During the Term and for [\*] thereafter, or with respect to any trade secret included in the Confidential Information for so long as such trade secret is protected under applicable Laws (*provided*, that Receiving Party has not publicly disclosed such trade secret in breach of its obligations under this Article 7), the Receiving Party will keep all Disclosing Party's Confidential Information in confidence with the same degree of care with which Receiving Party holds its own confidential information, but in no event less than reasonable care. Receiving Party will not use Disclosing Party's Confidential Information except in connection with the performance of its obligations and exercise of its rights under this Agreement or any Non-Exclusive License. Receiving Party has the right to disclose Disclosing Party's Confidential Information without Disclosing Party's prior written consent to (a) Receiving Party's Affiliates, and (b) each of Receiving Party's employees, permitted subcontractors (subject to Section 3.1(i)), CMOs and Collaboration Partners, consultants or agents who have a need to know such Confidential Information in order to perform (or for such entities to determine their interest in performing) Receiving Party's obligations or in the exercise of the Receiving Party's rights under this Agreement and who are under written obligations to comply with the restrictions on use and disclosure that are no less restrictive than those set forth in this ARTICLE 7. Receiving Party assumes responsibility for such persons maintaining Disclosing Party's Confidential Information in confidence and using same only for the purposes described herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Exceptions</u>. Receiving Party's obligation of nondisclosure and the limitations upon the right to use the Disclosing Party's Confidential Information will not apply to a specific portion of the Disclosing Party's Confidential Information to the extent that Receiving Party can demonstrate that such portion: (a) was known to Receiving Party or any of its Affiliates prior to the time of disclosure by the Disclosing Party without obligation of confidentiality; (b) is or becomes public knowledge through no fault or omission of Receiving Party or any of its Affiliates; (c) is obtained on a non-confidential basis by Receiving Party or any of its Affiliates from a Third Party who, to Receiving Party's knowledge, is lawfully in possession thereof and under no obligation of confidentiality to Disclosing Party; or (d) has been independently developed by or on behalf of Receiving Party or any of its Affiliates without the aid, application or use of Disclosing Party's Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Permitted Disclosures</u>. Receiving Party may disclose Disclosing Party's Confidential Information to the extent (and only to the extent) such disclosure is permitted under Section 7.2 or is reasonably necessary in the following instances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in order and to the extent required to comply with applicable Laws (including any securities Laws or the regulations or rules of a securities exchange applicable to Receiving Party) or with a legal or administrative proceeding or as required by a court or administrative order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with prosecuting or defending litigation including responding to a subpoena in a Third Party litigation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with filing, prosecuting and enforcing Joint IP in connection with Receiving Party's rights and obligations pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to actual or potential acquirers or permitted assignees, investment bankers, investors, lenders, and other financing sources, and to consultants and advisors of the Receiving Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the case of Scribe, with prior written notice to Acuitas to Collaboration Partners approved by Acuitas (to the extent required under Section 3.1(h)), but in case the Collaboration Partner is only a potential licensee, partner or assignee, only such information that is reasonably necessary or useful for the potential licensee, partner or assignee to evaluate the Technology of interest, including design of experiments conducted under the Workplan, data and results generated under the Workplan and LNP/Licensed Product manufacturing processes, but if a Non-Exclusive License agreement has not been executed, excluding the particular chemical structure and formulation of any lipid nanoparticles (which excluded information may be disclosed to such potential licensee, partner or assignee upon Acuitas' prior written consent);

*provided*, that (1) where reasonably possible, Receiving Party will notify Disclosing Party of Receiving Party's intent to make any disclosure pursuant to subsections (a) or (b) above sufficiently prior to making such disclosure so as to allow Disclosing Party adequate time to take whatever action it may deem appropriate to protect the confidentiality of the information to be disclosed, and (2) with respect to subsections (d) or (e) above, (i) each of those entities are required to comply with the restrictions on use and disclosure no less restrictive than those in Section 7.2 (other than investment bankers, investors, lenders, and other financing sources which must be bound prior to disclosure by commercially reasonable obligations of confidentiality), (ii) the Receiving Party is responsible for any failures by such entities to observe such restrictions or obligations of confidentiality and (iii) to the extent Scribe discloses any Workplan Data to such entities, Scribe will acknowledge Acuitas as the source of the LNP. Confidential Information that is required to be disclosed pursuant to subsections (a) or (b) will remain otherwise subject to the confidentiality and non-use provisions of Section 7.1 and Section 7.2. If either Party concludes that a copy of this Agreement must be filed with the United States Securities and Exchange Commission or similar regulatory agency in a country other than the United States, at least [\*] in advance of any such filing such Party will provide the other Party with a copy of this Agreement showing any provisions hereof as to which the Party proposes to request confidential treatment, will provide the other Party with a reasonable opportunity to comment on any such proposed redactions and to suggest additional redactions, and will take such Party's reasonable and timely comments into consideration before so filing the Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Publications</u>. Notwithstanding anything in this Agreement to the contrary, each Party shall be permitted to publish the results of the Program including Workplan Data that constitute the other Party's or joint Confidential Information only with the prior written consent of the other Party, subject to Section 7.3 and Scribe's right to publish such results of its development under the applicable Non-Exclusive License agreement in accordance with Section 8.6 thereof. Either Party wishing to make a publication or public presentation of Program results that contains the Confidential Information of the other Party will deliver to the other Party a copy of any proposed written publication or presentation of Program results at least [\*] prior to submission for publication or presentation. Each Party will have the right to (a) remove its Confidential Information from the other Party's proposed publications, (b) propose modifications to the publication or presentation for patent reasons, trade secret reasons or business reasons, which proposals the publishing Party will consider in good faith, and (c) request a reasonable delay in publication or presentation in order to protect patentable information in accordance with ARTICLE 6. Following the expiration of the applicable time period for review, the publishing Party will be free to submit for publication or otherwise disclose to the public such results, subject to the procedures set forth in the remainder of this Section 7.6. If the nonpublishing Party provides written notice to the publishing Party requesting a delay pursuant to clause (c) in this Section 7.6, the publishing Party will delay such submission or presentation for a period of an additional [\*] to enable the nonpublishing Party to file patent applications on the disclosed subject matter. The publishing Party will thereafter be free to publish or disclose such information, except that subject to Section 7.3 the publishing Party may not disclose any Confidential Information of the nonpublishing Party. Expedited reviews for abstracts or poster presentations, or for other publications that may relate to potential patent applications, may be arranged only with the prior written consent of both Parties. Scribe and Acuitas will each comply with standard academic practice regarding authorship of scientific publications and recognition of the contributions of other parties in any publications relating to studies conducted under the Workplan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Patents</u>. Except as expressly permitted under this Agreement, neither Party will file a patent application that includes or discloses the Confidential Information of the other Party without the consent of such other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Terms of this Agreement; Publicity</u>. The Parties agree that the material terms of this Agreement will be treated as Confidential Information of both Parties, and thus may be disclosed only as permitted by Sections 7.2, 7.3 and 7.4. Except as required by applicable Laws (including any securities Laws or the regulations or rules of a securities exchange) or otherwise agreed by the Parties in writing, each Party agrees not to issue any press release or public statement disclosing information relating to the existence of this Agreement or the transactions contemplated hereby or the terms hereof without the prior written consent of the other Party, such consent not to be unreasonably withheld, conditioned or delayed.

**ARTICLE 8** 

**<u>Warranties; Covenants; Limitations of Liability; Indemnification</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Representations and Warranties</u>. Each Party represents and warrants to the other as of the Effective Date that (a) it is a corporation duly organized, validly existing, and in good standing under the Laws of the jurisdiction in which it is incorporated, (b) it has the legal right and power to enter into this Agreement, to extend the rights, licenses and options granted or to be granted to the other in this Agreement, and to fully perform its obligations hereunder, (c) it has taken all necessary corporate action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder, (d) this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, and binding obligation of such Party that is enforceable against it in accordance with its terms, (e) the execution, delivery and performance of this Agreement by such Party does not violate any Law of any court, governmental body or administrative or other agency having jurisdiction over such Party, (f) no government authorization, consent, approval, license, exemptions of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, under any applicable Laws currently in effect, is necessary for the transactions contemplated by this

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Agreement or for the performance of its obligations under this Agreement, and (g) and during the Term, that its Affiliates, its and their employees, and their consultants and agents have executed agreements or have existing obligations under Law requiring assignment to such Party of all intellectual property and proprietary rights made during the course of and as the result of their association with such Party (to the extent permitted by Laws), and obligating such individuals to maintain as confidential the Confidential Information of a Disclosing Party under this Agreement or any Non-Exclusive License agreement, and of any Third Party which such Party may receive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Additional Representations and Warranties of Acuitas</u>. Except as set forth in Schedule 8.2, Acuitas hereby represents and warrants to Scribe as of the Effective Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Impairment</u>. Neither Acuitas nor any of its Affiliates has entered into any agreement or otherwise licensed, granted, assigned, transferred, conveyed, or otherwise encumbered or disposed of any right, title or interest in or to any of its assets, including any Technology, that would in any way conflict with or impair the scope of any rights, licenses or options granted to Scribe hereunder or that would be granted to Scribe under any Non-Exclusive License agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Patents and Know-How</u>. Exhibit 1.1 sets forth a complete and accurate list of all Patents included in the Acuitas Background Technology as of the Effective Date. Acuitas Controls the Acuitas Background Technology. All Acuitas inventors of the Acuitas Background Technology have validly assigned their rights to such Technology to Acuitas. Acuitas is and will remain entitled to grant to Scribe the licenses and rights specified herein or under a Non-Exclusive License during the Term as contemplated by this Agreement, to the Patents and the Know-How within the Acuitas Background Technology. To Acuitas' knowledge, the Patents listed on Exhibit 1.1 have been diligently prosecuted and maintained in accordance with applicable Law. None of the Patents included in the Acuitas Background Technology listed on Exhibit 1.1 are or have been involved in any opposition, cancellation, interference, reissue or reexamination proceeding. As of the Effective Date, neither Acuitas nor any of its Affiliates has received any notice alleging that the Patents in the Acuitas Background Technology listed on Exhibit 1.1 are invalid or unenforceable, or challenging Acuitas' ownership of the Acuitas Background Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entire LNP Technology</u>. The Acuitas Background Technology licensed to Scribe under this Agreement comprises all LNP Technology owned or Controlled by Acuitas. As of the Effective Date, the LNP Technology owned or controlled by Acuitas pursuant to the License Agreement dated [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Encumbrances</u>. As of the Effective Date, neither Acuitas nor any of its Affiliates has granted any liens or security interests on the Acuitas Background Technology, and the Acuitas Background Technology is free and clear of any mortgage, pledge, claim, security interest, covenant, easement, encumbrance, lien or charge of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Defaults</u>. The execution, delivery and performance by Acuitas of this Agreement and the consummation of the transactions contemplated hereby will not result in any violation of, conflict with, result in a breach of or constitute a default under any understanding, contract or agreement to which Acuitas is a party or by which it is bound, in each case as would reasonably be expected to have a material adverse effect on the rights granted to Scribe hereunder or under any Non-Exclusive License agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Litigation</u>. There is no action, suit, proceeding, or investigation pending or, to the knowledge of Acuitas, currently threatened in writing against or affecting Acuitas that questions the validity of this Agreement, the right of Acuitas to enter into this Agreement or consummate the transactions contemplated hereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Infringement</u>. Neither Acuitas nor any of its Affiliates has received any notice of any claim that any Patent, Know-How, or other intellectual property owned or controlled by a Third Party would be infringed or misappropriated by the practice of any Acuitas LNP Technology. Subject to any confidentiality obligations owed by Acuitas to Third Parties, Acuitas will promptly notify Scribe of any such notice received by Acuitas or its Affiliates after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No</u> <u>Debarment</u>. Neither Acuitas, nor to Acuitas' knowledge any of its employees, have been Debarred or are subject to Debarment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Disclaimers</u>*.* Without limiting the respective rights and obligations of the Parties expressly set forth herein, each Party specifically disclaims any guarantee that the Program will be successful, in whole or in part. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, THE PARTIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTY OF ANY KIND UNDER THIS AGREEMENT, EITHER EXPRESS OR IMPLIED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>No Consequential Damages</u>. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT OR OTHERWISE, NEITHER PARTY WILL BE LIABLE TO THE OTHER OR ANY THIRD PARTY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT FOR ANY INDIRECT, PUNITIVE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES; *PROVIDED THAT* THIS SECTION 8.4 WILL NOT APPLY TO BREACHES OF ARTICLES 6 OR 7, OR THE PARTIES' INDEMNIFICATION RIGHTS AND OBLIGATIONS UNDER ARTICLE 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Performance by Others</u>. The Parties recognize that each Party may perform some or all of its obligations under this Agreement through Affiliates, or permitted subcontractors in accordance with Section 3.1(i); *provided, however*, that each Party will remain responsible and liable for the performance by its Affiliates or permitted subcontractors and will cause its Affiliates and permitted subcontractors to comply with the provisions of this Agreement in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnification by Acuitas</u>. Acuitas will indemnify Scribe, its Affiliates and its and their respective directors, officers, employees, Third Party licensors, licensees, permitted subcontractors, Collaboration Partners and agents, and their respective successors, heirs and assigns (collectively, "<u>Scribe Indemnitees</u>"), and defend and hold each of them harmless, from and against any and all losses, damages, liabilities, costs and expenses (including reasonable attorneys' fees and expenses) (collectively, "<u>Losses</u>") in connection with any and all suits, investigations, claims or demands of Third Parties (collectively, "<u>Third Party Claims</u>") against the Scribe Indemnitees to the extent arising from or occurring as a result of: (i) the material breach by Acuitas of any provision of this Agreement; or (ii) any negligence or willful misconduct on the part of any Acuitas Indemnitee in the conduct of the Workplan; or (iii) the use, practice, license or other exploitation of the Joint Technology by or on behalf of Acuitas for its own or a Third Party's account except in each case (i)-(ii) to the extent Scribe is obligated to indemnify an Acuitas Indemnitee in accordance with Section 8.6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by Scribe</u>. Scribe will indemnify Acuitas, its Affiliates and its and their respective directors, officers, employees and agents, and their respective successors, heirs and assigns (collectively, "<u>Acuitas Indemnitees</u>"), and defend and hold each of them harmless, from and against any and all Losses in connection with any and all Third Party Claims against Acuitas Indemnitees to the extent arising from or occurring as a result of: (i) the material breach by Scribe of any provision of this Agreement; or (ii) any negligence or willful misconduct on the part of any Scribe Indemnitee in the conduct of the Workplan; or (iii) any alleged infringement or misappropriation of Patents or other intellectual property

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rights by Acuitas in the conduct of the Workplan to the extent based solely on Acuitas' use of Scribe Technology or (iv) the use, practice, license or other exploitation of the Joint Technology by or on behalf of Scribe for its own or a Third Party's account, except in each case (i)-(iii) to the extent Acuitas is obligated to indemnify Scribe in accordance with Section 8.6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Claim</u>. All indemnification claims provided for in subsections (a) and (b) above will be made solely by such Party to this Agreement (the "<u>Indemnified Party</u>"). The Indemnified Party will promptly notify the indemnifying Party (the "<u>Indemnifying Party</u>") in writing of any Third Party Claims or the discovery of any fact upon which the Indemnified Party intends to base a request for indemnification under subsections (a) or (b) above (each such notice, an "<u>Indemnification Claim Notice</u>"), *provided that* the failure to promptly provide such notice and details will not relieve the Indemnifying Party of any of its indemnification obligations hereunder, except to the extent that the Indemnifying Party's defense of the relevant Third Party Claim is prejudiced by such failure. Each Indemnification Claim Notice must contain a description of the Third Party Claim and the nature and amount of any Loss (to the extent that the nature and amount of such Loss is known at such time). The Indemnified Party will furnish promptly to the Indemnifying Party copies of all papers and official documents received in respect of any Losses and Third Party Claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Defense, Settlement, Cooperation and Expenses</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Control of Defense</u>. At its option, the Indemnifying Party may assume the defense of any Third Party Claim by giving written notice to the Indemnified Party within [\*] after the Indemnifying Party's receipt of an Indemnification Claim Notice. Upon assuming the defense of a Third Party Claim, the Indemnifying Party may appoint as lead counsel in the defense of the Third Party Claim any legal counsel selected by the Indemnifying Party (the Indemnifying Party will consult with the Indemnified Party with respect to such legal counsel and a possible conflict of interest of such counsel retained by the Indemnifying Party). In the event the Indemnifying Party assumes the defense of a Third Party Claim, the Indemnified Party will immediately deliver to the Indemnifying Party all original notices and documents (including court papers) received by the Indemnified Party in connection with the Third Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&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>Right to Participate in Defense</u>. Without limiting subsection (i) above, any Indemnified Party will be entitled to participate in, but not control, the defense of such Third Party Claim and to employ counsel of its choice for such purpose; *provided, however*, that such employment will be at the Indemnified Party's own cost and expense unless (A) the Indemnifying Party has failed to assume the defense and employ counsel in accordance with subsection (i) above (in which case the Indemnified Party will control the defense) or (B) the Indemnified Party has received a written opinion of counsel, reasonably acceptable to the Indemnifying Party, to the effect that the interests of the Indemnified Party and the Indemnifying Party with respect to such Third Party Claim are sufficiently adverse to prohibit the representation by the same counsel of both Parties under applicable Law, ethical rules or equitable principles, in which case the Indemnifying Party will assume one hundred percent (100%) of any such reasonable costs and expenses of counsel for the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Settlement</u>. With respect to any Third Party Claims that relate solely to the payment of money damages in connection with a Third Party Claim and that will not (A) result in the Indemnified Party's becoming subject to injunctive or other relief, (B) include any admission or concession of liability or wrongdoing on the part of the Indemnified Party, or (C) otherwise adversely affect the business or Patents of the Indemnified Party in any manner, and as to which the Indemnifying Party will have acknowledged in writing the obligation to indemnify the Indemnified Party hereunder, the Indemnifying Party will have the sole right to consent to the entry of any judgment, enter into any settlement

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or otherwise dispose of such Loss, on such terms as the Indemnifying Party, in its sole discretion, will deem appropriate. With respect to all other Losses in connection with Third Party Claims, where the Indemnifying Party has assumed the defense of the Third Party Claim in accordance with subsection (i) above, the Indemnifying Party will have authority to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss; *provided* it obtains the prior written consent of the Indemnified Party (which consent will not be unreasonably withheld, conditioned or delayed). Where the Indemnifying Party has assumed the defense of the Third Party Claim in accordance with subsection (i) above, the Indemnifying Party will not be liable for any settlement or other disposition of a Loss by an Indemnified Party that is reached without the written consent of the Indemnifying Party. Regardless of whether the Indemnifying Party chooses to defend or prosecute any Third Party Claim, no Indemnified Party will admit any liability with respect to or settle, compromise or discharge, any Third Party Claim without the prior written consent of the Indemnifying Party, such consent not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Cooperation</u>. Regardless of whether the Indemnifying Party chooses to defend or prosecute any Third Party Claim, the Indemnified Party will cooperate in the defense or prosecution thereof and will furnish such records, information and testimony, provide such witnesses and attend such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested in connection therewith at the Indemnifying Party's expense. Such cooperation will include access during normal business hours afforded to the Indemnifying Party to, and reasonable retention by the Indemnified Party of, records and information that are reasonably relevant to such Third Party Claim, and making indemnified parties and other employees and agents available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder, and the Indemnifying Party will reimburse the Indemnified Party for all its reasonable out-of-pocket costs and expenses in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Costs and Expenses</u>. Except as provided above in this Section 8.6, the costs and expenses, including reasonable attorneys' fees and expenses, incurred by the Indemnified Party in connection with any claim will be reimbursed on a Calendar Quarter basis by the Indemnifying Party, without prejudice to the Indemnifying Party's right to contest the Indemnified Party's right to indemnification and subject to prompt refund in the event the Indemnifying Party is ultimately held not to be obligated to indemnify the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Insurance</u>. Each Party will maintain at its sole cost and expense, an adequate liability insurance or self-insurance program to protect against potential liabilities and risk arising out of activities to be performed under this Agreement and upon such terms (including coverages, deductible limits, and self-insured retentions) as are customary in the respective industry of such Party for the activities to be conducted by such Party under this Agreement. The coverage limits set forth herein will not create any limitation on a Party's liability to the other under this Agreement. Upon the request of a Party, the other Party will provide evidence of the insurance coverage required by this Section 8.7.

**ARTICLE 9** 

**<u>Term and Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Term</u>. This Agreement will commence as of the Effective Date and, unless sooner terminated in accordance with the terms of this ARTICLE 9 or by mutual written consent of the Parties, will terminate on the third (3<sup>rd</sup>) anniversary of the Effective Date; *provided*, Scribe will have one (1) option to extend the initial three (3) year term for an additional two (2) year period by providing written notice thereof to Acuitas at least [\*] prior to the third (3<sup>rd</sup>) anniversary of the Effective Date (such three (3) year period, together with any such two (2) year extension if such extension is requested in accordance with the foregoing, and any extension of an Option exercise period pursuant to Section 10.15, the "<u>Term</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Termination by Scribe</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Breach</u>. Scribe will have the right to terminate this Agreement or the Program in full upon delivery of written notice to Acuitas in the event of a material breach by Acuitas of its representations, warranties or obligations under this Agreement or any Non-Exclusive License agreement, *provided that* such breach has not been cured within [\*] after written notice thereof is given by Scribe to Acuitas specifying the nature of the alleged breach. In the event of a termination of the Program for Acuitas' uncured material breach, the JDC will be disbanded, Acuitas will receive no further reimbursement for FTE Costs or external expenses and Acuitas will conduct a technology transfer in accordance with Section 3.1(f) and provide necessary licenses to Scribe or its Third Party designee each as reasonably necessary for Scribe or such Third Party designee to complete the conduct of the Program. For avoidance of doubt, termination of the Program pursuant to this Section 9.2(a) will not terminate Scribe's reservation of Reserved Targets or the Options, subject to the payment of all fees associated therewith. Unless terminated earlier by Scribe in its sole discretion by written notice to Acuitas, any Option that is in effect as of the effective date of termination of the Program pursuant to Section 9.2(a), will continue in effect until the earlier of (i) such Option exercise and (ii) expiration of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Discretionary Termination</u>. Scribe will have the right to terminate this Agreement in full at any time without cause or for any or no reason by giving [\*] prior written notice to Acuitas. Upon termination by Scribe pursuant to this subsection, Scribe will pay to Acuitas all accrued, then-unpaid Protein Target Reservation and Maintenance Fees, and any amounts payable in accordance with the Workplan budget to Acuitas for any Works and Services performed pursuant to the Workplan up through the date of such termination and *provided however*, that if Scribe terminates the Agreement without cause within the first year after the Effective Date, then Scribe will pay any outstanding amount of the FTE Costs that would have been due under the Workplan for the [\*]period following termination (to the extent that such FTE Costs have been specified in the Workplan and have not been paid in advance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Termination by Acuitas</u>. Acuitas will have the right to terminate this Agreement in full upon delivery of written notice to Scribe in the event of a material breach by Scribe of its representations, warranties or obligations under this Agreement or any Non-Exclusive License, *provided that* such breach has not been cured within [\*] after written notice thereof is given by Acuitas to Scribe specifying the nature of the alleged breach. Scribe hereby agrees that Acuitas is entitled to receive payment of any amounts payable to Acuitas for any Works and Services performed pursuant to the Workplan up through the date of such termination. If Scribe disputes in good faith the existence or materiality of a breach specified in a notice provided in accordance with this Section 9.3, and Scribe provides Acuitas notice of such dispute within such [\*] cure period, then Acuitas will not have the right to terminate this Agreement under this Section 9.3 unless and until it is finally determined, in accordance with Section 10.1, that Scribe has materially breached this Agreement and Scribe has failed to cure such breach within [\*] following such decision. It is understood and agreed that during the pendency of such dispute, all of the terms and conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their respective obligations (including payment obligations) hereunder. If Acuitas terminates this Agreement pursuant to this Section 9.3, then Acuitas will have the right, but not the obligation, to terminate any then-existing Non-Exclusive License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Termination Upon Bankruptcy</u>. If either Party makes an assignment for the benefit of creditors, appoints or suffers appointment of a receiver or trustee over all or substantially all of its property, files a petition under any bankruptcy or insolvency act in any state or country or has any such petition filed against it which is not discharged within [\*] of the filing thereof, subject to customary extensions, then the other Party may thereafter terminate this Agreement effective immediately upon written notice to such Party. All rights and licenses granted under or pursuant to this Agreement by Acuitas are, and will otherwise

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be deemed to be, for purposes of the relevant provisions of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 ("<u>BIA</u>"), including Sections 65.11(7), 65.13(9), 72.1 and 246.1 of the BIA; and the relevant provisions of the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36 ("<u>CCAA</u>"), including Sections 32(6) and 36(8) of the CCAA (the BIA and CCAA being referred to collectively as the "<u>Insolvency Legislation</u>"), a grant of a "right to use" "intellectual property" as used in the Insolvency Legislation. The Parties agree that Scribe and its Affiliates, as licensees of such rights under this Agreement, will retain and may fully exercise all of their rights and elections under the Insolvency Legislation subject to the payment of amounts provided for herein. Without limiting Scribe's rights under the Insolvency Legislation, if Acuitas becomes insolvent or makes an assignment for the benefit of its creditors or there is filed by or against the Acuitas any bankruptcy, receivership, reorganization or similar proceeding pursuant to or under the Insolvency Legislation or otherwise, Scribe will be entitled to a copy of any and all such intellectual property and all embodiments of such intellectual property, and the same, if not already in the possession of Scribe, will be promptly delivered to Scribe (a) if requested by Scribe, before this Agreement is rejected, disclaimed, repudiated, rescinded or terminated by or on behalf of Acuitas, within [\*] after Scribe's written request, unless Acuitas, or its trustee or receiver, elects within [\*] to continue to perform all of its obligations under this Agreement, or (b) forthwith, if requested by Scribe after any rejection, disclaimer, repudiation, recission or termination of this Agreement by or on behalf of Acuitas, if not previously delivered as provided under clause (a) above. All rights of the Parties under this Section 9.4 and under the relevant intellectual property provisions of the Insolvency Legislation are in addition to and not in substitution of any and all other rights, powers, and remedies that each Party may have under this Agreement, the Insolvency Legislation, and any other applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Effects of Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon termination by either Party under Sections 9.2, 9.3 or 9.4, (i) Acuitas will terminate all Works and Services in progress in an orderly manner as soon as practical and in accordance with a schedule agreed to by Scribe, (ii) Acuitas will use commercially reasonable efforts to terminate or limit any outstanding commitments and costs associated with the Workplan, (iii) Acuitas will deliver to Scribe any of Scribe's Materials in its possession or control and all deliverables developed through termination or expiration, (iv) both Parties will destroy any Formulated Product in their possession or control, and (v) Acuitas will promptly issue a final invoice to Scribe and Scribe will pay Acuitas within [\*] of receipt of such invoice any undisputed monies due and owing Acuitas, up to the time of termination or expiration, for Works and Services actually performed and all authorized expenses actually incurred (as specified in the Workplan and Workplan budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Survival</u>. In addition to the termination consequences set forth in Section 9.5, the following provisions will survive termination or expiration of this Agreement, as well as any other provision which by its terms or by the context thereof, is intended to survive such termination: Article 1 (to the extent applicable to any other surviving provisions), ARTICLE 6, ARTICLE 7, and ARTICLE 10 and Section 3.1(f) (with respect to Acuitas' obligation to complete a technology transfer, as applicable), Section 3.3(a), Section 3.3(b) (with respect to the Parties' permitted disclosure and use of Workplan Data <u>and with respect to the last sentence thereof</u>), Section 3.3(c)(i) (with respect to the Parties' obligation to return or destroy Materials after expiration or termination of this Agreement), Section 4.2(a), Section 5.1(c), Section 5.2 (to the extent that Scribe exercises an Option, as applicable), Section 8.3, Section 8.4, Section 8.5, Section 8.6, Section 8.7, Section 9.4, Section 9.5, and this Section 9.6. Termination or expiration of this Agreement will not relieve the Parties of any liability or obligation which accrued hereunder prior to the effective date of such termination or expiration nor preclude either Party from pursuing all rights and remedies it may have hereunder or at Law or in equity with respect to any breach of this Agreement nor prejudice either Party's right to obtain performance of any obligation. All other rights and obligations that do not survive in accordance with this Section 9.6 will terminate upon expiration of this Agreement.

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**ARTICLE 10** 

**<u>Miscellaneous</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Dispute Resolution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Dispute Procedure</u>. Any dispute, controversy, or claim (together, a "<u>Dispute</u>") arising out of, relating to, or in connection with this Agreement, including with respect to the formation, applicability, breach, termination, validity, or enforceability of this Agreement, will be resolved pursuant to this Section 10.1 (Dispute Resolution), other than (i) disputes regarding issues within the purview of the JDC which will be resolved pursuant to Section 2.2(d); and (ii) disputes that cannot be resolved without an adjudication of the rights or obligations of a Third Party (other than any Scribe Indemnitees or Acuitas Indemnitees identified in Section 8.6 (Indemnification)), as to which the procedures set forth Sections 10.1(b) (Dispute Escalation) and 10.1(c) (Dispute Resolution by Arbitration) will not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dispute Escalation.</u> In the event of a Dispute between the parties, the Parties shall first attempt to resolve such Dispute amicably. If the Parties are not able to resolve a Dispute amicably, then each Party shall have the right to refer such dispute to Acuitas' Chief Executive Officer and to Scribe's Chief Executive Officer (or his or her designee, who must be a senior executive) (together, the "<u>Executive Officers</u>"), who will attempt in good faith to resolve such dispute by negotiation during a period of [\*]. Any final decision agreed to by such Executive Officers shall be conclusive and binding on the Parties. If such Executive Officers are unable to resolve such Dispute within such [\*], then either Party shall be free to commence legal action and seek such remedies as may be available to such Party, consistent with this Section 10.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Dispute Resolution by Arbitration</u>. If the Executive Officers are not able to resolve such Dispute as set forth above in Section 10.1(b), either Party may submit the dispute to arbitration for final resolution pursuant to this paragraph. Any such dispute shall be conducted by a tribunal of three arbitrators, in accordance with and pursuant to the Rules of Arbitration of the International Chamber of Commerce ("<u>ICC</u>") in effect at the time of the arbitration, except as they may be modified herein or by mutual agreement of the parties. The seat of the arbitration shall be New York, New York, and it shall be conducted in the English language. The Party that submits the dispute to arbitration (the "<u>claimant</u>") shall nominate an arbitrator in its request for arbitration. The other party (the "<u>respondent</u>") shall nominate an arbitrator within [\*] of the receipt of the request for arbitration. The two arbitrators shall nominate a third arbitrator within [\*] after the nomination of the second arbitrator. The third arbitrator shall act as Chair of the tribunal. If any of the three arbitrators is not nominated within the time prescribed above, then the ICC Court shall appoint that arbitrator. Arbitrators may communicate with Parties or Party representatives on an ex parte basis for the purpose of selecting the chair of the tribunal. Once the three-arbitrator tribunal is convened, no arbitrator or arbitrators may have ex parte communications with any Party or Party representative without the consent of all Parties. The arbitration award shall be final and binding on the Parties. The Parties undertake to carry out any award without delay and waive their right to any form of recourse based on grounds other than those contained in the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, insofar as such waiver can validly be made. Judgment upon the award may be entered by any court having jurisdiction thereof or having jurisdiction over the relevant party or its assets, pursuant to the substantive law of the State of New York without regard to its choice-of-law rules or the choice-of-law rules of any forum that would cause any substantive law other than the law of the State of New York to apply.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Actions to Enforce a Patent</u>. If the Executive Officers of the Parties are not able to resolve such dispute as set forth above in Section 10.1(b) and that dispute involves an allegation of patent infringement, the Party asserting patent infringement may commence an action to enforce that patent, or the Party accused of infringement may, to the extent permitted by law, commence an action for a declaratory judgment of non-infringement or invalidity in the United States District Court for the District of Delaware, or a proceeding for patent review or reexamination in the United States Patent and Trademark Office for any such disputes within this Section 10.1(d) (Actions to Enforce a Patent) involving one or more United States patents for which such forum has jurisdiction, and each Party hereby consents to the exclusive jurisdiction of such forum, and waives any jurisdictional or venue objections to suit in such forum and any right to seek to transfer such an action out of that forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Injunctive Relief</u>. Notwithstanding the dispute resolution procedures set forth in this Section 10.1 (Dispute Resolution), in the event of an actual or threatened breach hereunder, the aggrieved Party may seek equitable relief (including restraining orders, specific performance or other injunctive relief) in any court of competent jurisdiction, without first submitting to any dispute resolution procedures hereunder. Each Party hereby consents to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York and, if that court lacks subject-matter jurisdiction, the New York State Supreme Court, New York County, for any such actions seeking equitable relief and waives any jurisdictional objections to such suit in those courts. Each Party acknowledges that material breach of any of the terms or conditions of this Agreement would cause irreparable harm and damage to the other Party that may not be remediable through money damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Tolling</u>. The Parties agree that all applicable statutes of limitation and time-based defenses (such as estoppel and laches) will be tolled while the dispute resolution procedures set forth in Sections 10.1(a) (Dispute Procedure) and 10.1(b) (Dispute Escalation) are pending, and the Parties will cooperate in taking all actions reasonably necessary to achieve such a result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Prevailing Party</u>. The prevailing Party in any suit or arbitration related to this Agreement commenced under this Section 10.1 will be entitled to recover from the losing Party all reasonable out-of-pocket fees, costs, and expenses (including those of attorneys, professionals and accountants) incurred by the prevailing Party in connection with such arbitration or suit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Cumulative Remedies</u><u>.</u> All rights and remedies of the Parties hereunder will be cumulative and in addition to all other rights and remedies provided hereunder or available by agreement, in law, in equity, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Invoices and Payments</u>. All invoices to be delivered to Scribe hereunder shall be delivered in accordance with Section 10.11 or in such other manner specified by Scribe from time to time. All amounts specified in, and all payments to be made by Scribe under, this Agreement will be in U.S. dollars and will be paid by wire transfer to such bank account as Acuitas may designate at least [\*] before such payment is due. Scribe may withhold from payments due to Acuitas amounts for payment of any withholding tax that is required by Law to be paid to any taxing authority with respect to such payment. Scribe will provide Acuitas all relevant documents and correspondence and will also provide to Acuitas any other cooperation or assistance on a reasonable basis as may be necessary to enable Acuitas to claim exemption from such withholding taxes and to receive a refund of such withholding tax or claim a foreign tax credit. Upon the request of Acuitas, Scribe will give proper evidence from time to time as to the payment of any such tax.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Relationship of Parties</u>. Nothing in this Agreement is intended or will be deemed to constitute a partnership, agency, employer-employee or joint venture relationship between the Parties. No Party will incur any debts or make any commitments for the other, except to the extent, if at all, specifically provided therein. There are no express or implied Third Party beneficiaries hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Compliance with Law</u>. Each Party will perform or cause to be performed any and all of its obligations or the exercise of any and all of its rights hereunder in good scientific manner and in compliance with all applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Choice of Law</u>. This Agreement will be governed by and construed in accordance with the substantive law of the State of New York without regard to its choice-of-law rules or the choice-of-law rules of any forum that would cause any substantive law other than the law of the State of New York to apply, provided that any dispute relating to the scope, validity, enforceability, or infringement of any Patents will be governed by the substantive Laws of the jurisdiction in which such Patents apply. The Parties agree to exclude the application to this Agreement of the United Nations Convention on Contracts for the International Sale of Goods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Counterparts; Facsimiles</u>. 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. Facsimile or PDF execution and delivery of this Agreement by either Party will constitute a legal, valid and binding execution and delivery of this Agreement by such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>Headings</u><u>; Rule of Construction; Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Headings</u>. All headings in this Agreement are for convenience only and will not affect the meaning of any provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Waiver of Rule of Construction</u>. Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement will be construed against the drafting Party will not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Interpretation</u>. Whenever any provision of this Agreement uses the term "including" (or "includes"), such term will be deemed to mean "including without limitation" (or "includes without limitation"). "Herein," "hereby," "hereunder," "hereof" and other equivalent words refer to this Agreement as an entirety and not solely to the particular portion of this Agreement in which any such word is used. In this Agreement, the word "or" means "and/or". All definitions set forth herein will be deemed applicable whether the words defined are used herein in the singular or the plural. Unless otherwise provided, all references to Sections and Exhibits in this Agreement are to Sections and Exhibits of this Agreement. References to any Sections include Sections and subsections that are part of the related Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>Further Assurances</u>. Each Party shall take all customary and reasonable actions and do all things reasonably necessary or proper, including under applicable Law, to make effective and further the intents and purposes of the transactions contemplated by this Agreement, including executing any further instruments reasonably requested by the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <u>Binding Effect</u>. This Agreement will inure to the benefit of and be binding upon the Parties, their Affiliates, and their respective lawful successors and assigns.

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be unreasonably withheld, conditioned or delayed; *provided*, that either Party may assign this Agreement in whole or in part without such consent to an Affiliate or to its successor in connection with the sale of all or substantially all of its assets or business or that portion of its business pertaining to the subject matter of this Agreement (whether by merger, consolidation or otherwise); *provided that* such Affiliates or Third Party agree to be bound by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <u>Notices</u>. All notices, requests, demands and other communications required or permitted to be given pursuant to this Agreement will be in writing and will be deemed to have been duly given upon the date of receipt if delivered by hand, email, recognized international overnight courier, or registered or certified mail, return receipt requested, postage prepaid to the following addresses:

If to Scribe: Scribe Therapeutics Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*]

With a copy to: [\*]

If to Acuitas: [\*]

With a copy to: [\*]

Either Party may change its designated address by notice to the other Party in the manner provided in this Section 10.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <u>Amendment and Waiver</u>. This Agreement may be amended, supplemented, or otherwise modified only by means of a written instrument signed by both Parties; *provided that* any unilateral undertaking or waiver made by one Party in favor of the other will be enforceable if undertaken in a writing signed by the Party to be charged with the undertaking or waiver. Any waiver of any rights or failure to act in a specific instance will relate only to such instance and will not be construed as an agreement to waive any rights or fail to act in any other instance, whether or not similar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 <u>Severability</u>. In the event that any provision of this Agreement will, for any reason, be held to be invalid or unenforceable in any respect, such invalidity or unenforceability will not affect any other provision hereof, and the Parties will negotiate in good faith to modify the Agreement to preserve (to the extent possible) their original intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 <u>Entire Agreement</u>. This Agreement together with any Non-Exclusive License agreements and the Joint Prosecution and Maintenance Agreement (including all appendices and exhibits hereto and thereto) entered into during the Term are the sole agreements with respect to their subject matter and supersede all other agreements and understandings between the Parties with respect to same, including the Confidential Disclosure Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16 <u>Force Majeure</u>. Neither Acuitas nor Scribe will be liable for failure of or delay in performing obligations set forth in this Agreement (other than any obligation to pay monies when due), and neither will be deemed in breach of such obligations, if such failure or delay is due to natural disasters or any causes reasonably beyond the control of such Party; *provided that* the Party affected will promptly notify the other of the force majeure condition and will exert reasonable efforts to eliminate, cure or overcome any such causes and to resume performance of its obligations as soon as possible. If such force majeure event affects Acuitas' ability to timely perform its obligations under the Workplan, then the period which Scribe has to exercise its Options will be extended by a period equivalent to the period during which such force majeure event prevented Acuitas' performance of the Workplan.

[Signature page to follow]

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**IN WITNESS WHEREOF**, the Parties have caused this Development and Option Agreement to be executed by their respective duly authorized officers as of the Effective Date.

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| | |
|:---|:---|
| **ACUITAS THERAPEUTICS, INC.** | **ACUITAS THERAPEUTICS, INC.** |
| By: | /s/ Thomas Madden |
| (Signature) | (Signature) |
| Name: Thomas Madden | Name: Thomas Madden |
| Title: President & CEO | Title: President & CEO |
| **SCRIBE THERAPEUTICS INC.** | **SCRIBE THERAPEUTICS INC.** |
| By: | /s/ Benjamin Oakes |
| (Signature) | (Signature) |
| Name: Benjamin Oakes | Name: Benjamin Oakes |
| Title: President & CEO | Title: President & CEO |

---

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**<u>EXHIBIT 1.1</u>**

[Intentionally omitted]

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**<u>EXHIBIT 1.34</u>**

[Intentionally omitted]

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**<u>EXHIBIT 3.1(a)</u>**

[Intentionally omitted]

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**<u>EXHIBIT 3.1(f)</u>**

[Intentionally omitted]

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**<u>EXHIBIT 4.2</u>**

[Intentionally omitted]

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**<u>EXHIBIT 5.2(c)</u>**

[Intentionally omitted]

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**<u>EXHIBIT 8.2</u>**

[Intentionally omitted]

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**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO SCRIBE THERAPEUTICS INC. IF PUBLICLY DISCLOSED.** 

**NON-EXCLUSIVE LICENSE AGREEMENT** 

**by and between** 

**ACUITAS THERAPEUTICS, INC.** 

**and** 

**SCRIBE THERAPEUTICS INC.** 

**dated** 

**[________________]** 

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| | | **Page** |
|  ARTICLE 1 Definitions | ARTICLE 1 Definitions | 1 |
|  ARTICLE 2 License Grant; Technology Transfer | ARTICLE 2 License Grant; Technology Transfer | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 | License by Acuitas | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 | Updated License | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 | Sublicensing Rights | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 | Technology Transfer | 9 |
|  ARTICLE 3 Payments and Royalties | ARTICLE 3 Payments and Royalties | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 | License Maintenance Fees | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 | Milestone Payments | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 | Royalties | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 | Payment Terms | 12 |
|  ARTICLE 4 Ownership and Inventorship of IP | ARTICLE 4 Ownership and Inventorship of IP | 13 |
|  ARTICLE 5 Patent Prosecution and Maintenance | ARTICLE 5 Patent Prosecution and Maintenance | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 | General | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 | LNP Technology Patents | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 | Regulatory Exclusivity Periods | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 | Patent Listings | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 | Cooperation | 14 |
|  ARTICLE 6 Patent Enforcement and Defense | ARTICLE 6 Patent Enforcement and Defense | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 | Enforcement | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 | Infringement Defense | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 | Withdrawal, Cooperation and Participation | 15 |
|  ARTICLE 7 Confidentiality | ARTICLE 7 Confidentiality | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 | Confidential Information | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 | Restrictions | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 | Exceptions | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 | Permitted Disclosures | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 | Return of Confidential Information | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 | Publications | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 | Terms of this License Agreement; Publicity | 18 |
|  ARTICLE 8 Warranties; Limitations of Liability; Indemnification | ARTICLE 8 Warranties; Limitations of Liability; Indemnification | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 | Representations and Warranties | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 | Additional Representations of Acuitas | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 | Disclaimers | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 | No Consequential Damages | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 | Performance by Others | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 | Indemnification | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 | Insurance | 23 |

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| | | |
|:---|:---|:---|
|  ARTICLE 9 Term and Termination | ARTICLE 9 Term and Termination | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 | Term | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 | Termination by Acuitas | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 | Termination by Scribe | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 | Termination Upon Bankruptcy | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 | Effects of Termination | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 | Survival | 25 |
|  ARTICLE 10 General Provisions | ARTICLE 10 General Provisions | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 | Dispute Resolution | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 | Relationship of Parties | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 | Compliance with Law | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 | Choice of Law | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 | Counterparts; Facsimiles | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 | Headings | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 | Waiver of Rule of Construction | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 | Interpretation | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 | Binding Effect | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 | Assignment | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 | Notices | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 | Amendment and Waiver | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 | Severability | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 | Entire Agreement | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 | Force Majeure | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16 | Further Assurances | 29 |

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------

**<u>List of Appendices</u>**

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| | |
|:---|:---|
| Appendix 1.43 | Licensed Product |
| Appendix 1.44 | Patents within the Licensed Technology as of the License Agreement Effective Date |
| Appendix 2.3 | Pre-approved Contract Manufacturing Organizations (CMOs) |
| Appendix 8.2 | Exceptions to Acuitas Representations and Warranties in Section 8.2 |

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**<u>NON-EXCLUSIVE LICENSE AGREEMENT</u>**

**THIS NON-EXCLUSIVE LICENSE AGREEMENT** ("<u>License Agreement</u>") dated as of [_______________] (the "<u>License Agreement Effective Date</u>"), is made by and between Acuitas Therapeutics, Inc., a British Columbia corporation ("<u>Acuitas</u>"), and Scribe Therapeutics Inc., a Delaware corporation ("<u>Scribe</u>"). Each of Acuitas and Scribe may be referred to herein as a "<u>Party</u>" or together as the "<u>Parties</u>."

**WHEREAS**, Acuitas has proprietary LNP Technology (as defined below);

**WHEREAS**, Scribe has expertise and intellectual property relating to Genome Editing Constructs (as defined below), comprising Genome Editing Protein Targets (as defined below) and mRNA Constructs (as defined below); and

**WHEREAS**, Acuitas and Scribe are parties to that certain Development and Option Agreement dated November 7, 2022 (the "<u>Development and Option Agreement</u>"), pursuant to which Scribe has options to take licenses under the Licensed Technology (as defined below) with respect to Genome Editing Constructs to Genome Edit a specific Human Genome Target; and

**WHEREAS**, pursuant to the terms of the Development and Option Agreement, Scribe has exercised an option with respect to a Licensed Product (as defined below) and the Parties are now entering into a licensing arrangement whereby Scribe will have a license under the Licensed Technology to develop, make and commercialize such Licensed Product.

**NOW, THEREFORE**, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the amount and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

**ARTICLE 1** 

**<u>Definitions</u>**

The following terms and their correlatives will have the following meanings. Capitalized terms not defined herein will have the meaning set forth in the Development and Option Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "<u>Acuitas Indemnitees</u>" has the meaning set forth in Section 8.6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "<u>Affiliate</u>" of a person or entity means any other person or entity which (directly or indirectly) is controlled by, controls or is under common control with such person or entity. For the purposes of this definition, the term "<u>control</u>" (including, with correlative meanings, the terms "<u>controlled by</u>" and "<u>under common control with</u>") as used with respect to an entity will mean (a) in the case of a corporate entity, direct or indirect ownership of voting securities entitled to cast more than fifty percent (50%) of the votes in the election of directors, or (b) in the case of a non-corporate entity, direct or indirect ownership of more than fifty percent (50%) of the equity interests with the power to direct the management and policies of such entity; *provided that* if local Law restricts foreign ownership, control will be established by direct or indirect ownership of the maximum ownership percentage that may, under such local Law, be owned by foreign interests.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "<u>Business Day</u>" means a day on which banking institutions in both Alameda, California, United States and Vancouver, British Columbia, Canada are open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "<u>Calendar Quarter</u>" means the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31; *provided*, that (a) the first Calendar Quarter of the Term will begin on the License Agreement Effective Date and end on the first to occur of March 31, June 30, September 30 or December 31 thereafter and the last Calendar Quarter of the Term will end on the last day of the Term, and (b) the first Calendar Quarter of a Royalty Term for a Licensed Product in a country will begin on the First Commercial Sale of such Licensed Product in such country and end on the first to occur of March 31, June 30, September 30 or December 31 thereafter and the last Calendar Quarter of a Royalty Term will end on the last day of such Royalty Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "<u>CMO</u>" means contract manufacturing organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "<u>Combination Product</u>" means a product that includes at least one additional active ingredient sold in conjunction with or used in combination with a Licensed Product (whether packaged together or packaged separately but sold together for a single price). Drug delivery vehicles and excipients will not be deemed to be "active ingredients," except in the case where such delivery vehicle or excipient is recognized as an active ingredient in accordance with 21 C.F.R. 210.3(b)(7) or equivalent Laws in other jurisdictions; *provided, however*, that should the lipid nanoparticle components of a Licensed Product be characterized as "active ingredients" at any time during the Term, such lipid nanoparticles will not be considered an "active ingredient" for the purposes of this definition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "<u>Confidential Disclosure Agreement</u>" means the Confidential Disclosure Agreement between the Scribe and Acuitas dated October 7, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "<u>Confidential Information</u>" has the meaning set forth in Section 7.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "<u>Control</u>" or "<u>Controlled</u>" means, with respect to a particular Technology, Acuitas owns or has a license to use and practice such Technology and has the right to grant a license or sublicense to such Technology without violating the terms of any agreement with any Third-Party and without owing any milestone, royalty, or other monetary obligations to a Third-Party under the terms of any agreement with such Third-Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "<u>Debar</u>", "<u>Debarred</u>" or "<u>Debarment</u>" means (a) being debarred, or being subject to a pending debarment, pursuant to section 306 of the FDCA, 21 U.S.C. § 335a, (b) being listed by any federal and/or state agencies, excluded, debarred, suspended or otherwise made ineligible to participate in federal or state healthcare programs or federal procurement or non-procurement programs (as that term is defined in 42 U.S.C. § 1320a-7b(f)), or being subject to any pending process by which any such listing, exclusion, debarment, suspension or other ineligibility could occur, (c) being disqualified by any government or regulatory agency from performing specific services, or being subject to a pending disqualification proceeding, or (d) being convicted of a criminal offense related to the provision of healthcare items or services or being subject to any pending criminal action related to the provision of healthcare items or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "<u>Deficiency</u>" means the existence of any of the following factors, to the extent supported by reasonable and verifiable documentation or other supporting evidence: (a) a significant failure to adhere to internationally accepted standards of quality and safety in the manufacture of pharmaceutical or biologic products as documented by a regulatory authority with jurisdiction over pharmaceutical manufacturing, as the same are relevant to the stage of development and certification of the products to be manufactured; (b) less than [\*] of experience in manufacturing pharmaceutical or biological products; or (c) a significant history of violating confidentiality or intellectual property rights or (d) a party who is a direct competitor of Acuitas in the field of LNP Technology. For clarity, no factor that is not listed in (a), (b), (c) or (d) above will be considered in determining the existence of a Deficiency. A listing of pre-approved CMOs is provided in Appendix 2.3.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "<u>Development and Option Agreement</u>" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "<u>Diligent Efforts</u>" means, with respect to the efforts to be expended by a Party, active and sustained efforts to conduct the applicable activity, or to attempt to achieve the applicable requirement or goal, in a prompt and expeditious manner, as is reasonably practicable under the circumstances and the terms of this License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "<u>Disclosing Party</u>" has the meaning set forth in Section 7.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "<u>Dollars</u>" means United States dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "<u>Donor DNA Sequence</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 "<u>Escrow Agent</u>" means the Third-Party escrow agent designated by Acuitas and reasonably acceptable to Scribe, which escrow agent will initially be a partner with Seed Intellectual Property Law Group, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 "<u>Executive Officers</u>" has the meaning set forth in Section 10.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "<u>Field of Use</u>" means [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 "<u>First Commercial Sale</u>" means the first sale for use or consumption for which revenue has been recognized of any Licensed Product in a country after all required Marketing Authorization Approvals for commercial sale of such Licensed Product have been obtained in such country. A sale for compassionate or named patient use, test marketing or clinical trial purposes will not constitute a First Commercial Sale. First Commercial Sale will include any sales under emergency use authorizations in any country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "<u>Formulated Product</u>" means product produced by Acuitas upon request by Scribe that incorporates Scribe proprietary Genome Editing Constructs for Licensed Products formulated with Licensed Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "<u>FTE</u>" means the work of a full-time person for one year, or more than one person working the equivalent of a full-time person for one year, where "<u>full-time</u>" is determined by the standard practices in the biopharmaceutical industry in the geographic area in which such personnel are working, but means [\*] per year, in the performance of the agreed activities for the Technology Transfer or Bridging Work, including scientific management oversight as reasonably required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "<u>FTE Costs</u>" mean the amount obtained by multiplying the number of actual FTEs employed by Acuitas in the conduct of the agreed activities for the Technology Transfer by an annual rate per FTE equal to [\*], which may be prorated on a daily or hourly basis as necessary. Such FTE Costs represent reimbursement for all costs of FTEs in providing such activities (including salaries, benefits, lab supplies, reagents, equipment and overhead, as well as other G&A costs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "<u>GAAP</u>" means generally accepted accounting principles in the United States.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 "<u>Genome Edit(ing)</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "<u>Genome Editing Construct</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "<u>Genome Editing Protein Target</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 "<u>GMP</u>" means current Good Manufacturing Practices as specified in Parts 210 and 211 of Title 21 of the U.S. C.F.R., ICH Guideline Q7A, or equivalent Laws of an applicable Regulatory Authority at the time of manufacture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 "<u>Guide RNA</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 "<u>Human Genome Target</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31 "<u>Indemnification Claim Notice</u>" has the meaning set forth in Section 8.6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32 "<u>Indemnified Party</u>" has the meaning set forth in Section 8.6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33 "<u>Indemnifying Party</u>" has the meaning set forth in Section 8.6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34 "<u>Insolvency Legislation</u>" has the meaning set forth in Section 9.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35 "<u>Joint IP</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36 "<u>Know-How</u>" means all Materials and all confidential and proprietary commercial, technical, scientific and other know-how and information, trade secrets, knowledge, technology, methods, processes, practices, formulae, instructions, skills, techniques, procedures, experiences, ideas, technical assistance, designs, drawings, assembly procedures, computer programs, specifications, data and results (including biological, chemical, pharmacological, toxicological, pharmaceutical, physical and analytical, preclinical, clinical, safety, manufacturing and quality control data and know-how, and including study designs and protocols), in all cases, *provided that* such information is confidential and proprietary, and regardless of whether patentable, in written, electronic or any other form now known or hereafter developed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37 "<u>Know-How Royalties</u>" has the meaning set forth in Section 3.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38 "<u>Law</u>" or "<u>Laws</u>" means all laws, statutes, rules, regulations, orders, judgments or ordinances having the effect of law of any federal, national, multinational, state, provincial, county, city or other political subdivision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39 "<u>License Agreement</u>" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.40 "<u>License Agreement Effective Date</u>" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41 "<u>License Maintenance Fees</u>" means the fees set forth in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42 "<u>Licensed Know-How</u>" means Know-How transferred or disclosed to Scribe by Acuitas pursuant to the Development and Option Agreement or this Agreement including but not limited to the Know-How related to [\*] transferred to Scribe (or its CMO) by Acuitas pursuant to the Technology Transfer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43 "<u>Licensed Product</u>" has the meaning set forth in the Development and Option Agreement. [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44 "<u>Licensed Technology</u>" means Patents covering LNP Technology and Licensed Know-How that are (a) owned or Controlled by Acuitas or its Affiliates, (i) [\*] and (b) necessary or useful for the research, development, manufacture, use, sale or other exploitation of a Licensed Product. Without limiting the generality of this definition, the Patents included in the Licensed Technology as of the License Agreement Effective Date are listed in Appendix 1.44 attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45 "<u>LNP</u>" means lipid nanoparticles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46 "<u>LNP Technology</u>" means any Technology that claims, embodies, or incorporates delivery systems (and components thereof) based on or incorporating LNPs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.47 "<u>LNP Technology Patent(s)</u>" means Patents included in the Licensed Technology, including any future Patent that becomes part of the Licensed Technology during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48 "<u>Losses</u>" has the meaning set forth in Section 8.6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.49 "<u>Major Market Country</u>" means the United States, the United Kingdom, Germany, France, Spain, or Italy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.50 "<u>Marketing Authorization Approval</u>" means, with respect to a country or extra-national territory, any and all approvals (including a New Drug Application or Biologics License Application approved by the FDA), licenses, registrations, emergency use authorizations or other authorizations of any Regulatory Authority necessary in order to commercially distribute, sell or market a product in such country or some or all of such extra-national territory, including any pricing or reimbursement approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51 "<u>Materials</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.52 "<u>Milestone Event</u>" has the meaning set forth in Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53 "<u>Milestone Payment</u>" has the meaning set forth in Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54 "<u>Minimum Royalty</u>" has the meaning set forth in Section 3.3(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.55 "<u>mRNA Construct</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.56 "<u>Net Sales</u>" means, with respect to any Licensed Product, the amount earned and recognized as revenue by Scribe and its Affiliates or Sublicensees for bona fide sales of such Licensed Product to a Third-Party (other than Affiliates and Sublicensees, but including distributors for resale), less:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [\*];

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) [\*].

Net Sales will not include any payments from sales among Scribe, its Affiliates and Sublicensees, except for sales to distributors or subsequent resales from such distributors. Such amounts will be determined from the books and records of Scribe and its Affiliates and Sublicensees, maintained in accordance with GAAP consistently applied.

Net Sales for any Combination Product will be calculated [\*].

Net Sales of the Licensed Product for any Combination Product if the Licensed Product or other active ingredients in such Combination Product are not sold separately in such country, will be calculated by [\*]. In such event, Scribe will make a determination in good faith of the respective fair market values of each component included in the Combination Product and will notify Acuitas of such determination and provide Acuitas with Scribe's basis for such determination. If Acuitas in good faith does not agree with such determination, then the fair market value of each component of a Combination Product will be a determined by a Third-Party expert selected by Scribe and reasonably acceptable to Acuitas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.57 "<u>Party</u>" and "<u>Parties</u>" has the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.58 "<u>Patent</u>(s)" means an (a) unexpired and currently in force letters patent, a patent application, and a future patent issued from any such patent application, (b) a future patent issued from a patent application filed in any country worldwide that claims priority from a patent or patent application included in (a), (c) any additions, divisions, continuations, continuations-in-part, invention certificates, substitutions, reissues, reexaminations, extensions, registrations, utility models, supplementary protection certificates and renewals based on any patent or patent application under (a) or (b), but not including any rights that give rise to regulatory exclusivity periods (other than supplementary protection certificates, which will be treated as "<u>Patents</u>" hereunder), and (d) any counterpart of any patent or patent application under (a), (b) or (c) filed in any country worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.59 "<u>Patent Costs</u>" means the reasonable, documented, out-of-pocket costs and expenses paid to outside legal counsel, and filing and maintenance expenses, actually and reasonably incurred by a Party in prosecuting and maintaining Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.60 "<u>Patent Royalties</u>" has the meaning set forth in Section 3.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.61 "<u>Phase</u> <u>1 Study</u>" means a human clinical trial of a Licensed Product in any country, the primary purpose of which is the determination of safety and which may include the determination of metabolism and pharmacologic actions of the Licensed Product in humans, the side effects associated with increasing doses, and, if possible, to gain early evidence on effectiveness, as more fully defined in 21 C.F.R. § 312.21(a) or its successor regulation, or the equivalent in any foreign country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.62 "<u>Phase</u> <u>2 Study</u>" means a human clinical trial of a Licensed Product in any country, the primary purpose of which is to evaluate the effectiveness of the Licensed Product for a particular indication or indications in patients with the disease or condition under study and to determine the common short-term side effects and risks associated with the Licensed Product, as more fully defined in 21 C.F.R. § 312.21(b) or its successor regulation, or the equivalent in any foreign country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.63 "<u>Phase</u> <u>3 Study</u>" means a human clinical trial of a Licensed Product in any country, the primary purpose of which is to gather the additional information about effectiveness and safety that is needed to evaluate the overall benefit-risk relationship of the Licensed Product and to provide an adequate basis for physician labeling, as more fully defined in 21 C.F.R. § 312.21(c) or its successor regulation, or the equivalent in any foreign country.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.64 "<u>Receiving Party</u>" has the meaning set forth in Section 7.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65 "<u>Regulatory Authority</u>" means any national (*e.g.*, the United States Food and Drug Administration ("<u>FDA</u>")), supra-national (*e.g.*, the European Medicines Agency), regional, state or local regulatory agency, department, bureau, commission, council or other governmental authority, in any jurisdiction in the world, involved in the granting of Marketing Authorization Approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.66 "<u>Regulatory Exclusivity</u>" means with respect to any country or other jurisdiction in the Territory, an additional market protection, other than Patent protection, granted by a Regulatory Authority in such country or other jurisdiction which confers an exclusive commercialization period during which Scribe or its Affiliates or Sublicensees have the exclusive right to market and sell a Licensed Product in such country or other jurisdiction through a regulatory exclusivity right (*e.g.*, new chemical entity exclusivity, new use or indication exclusivity, new formulation exclusivity, orphan drug exclusivity, pediatric exclusivity, or any applicable data exclusivity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.67 "<u>Royalties</u>" has the meaning set forth in Section 3.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.68 "<u>Royalty Term</u>" has the meaning set forth in Section 3.3(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.69 "<u>Scribe Indemnitees</u>" has the meaning set forth in Section 8.6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.70 "<u>Solely Owned Technology</u>" has the meaning set forth in Article 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.71 "<u>Sublicensee</u>" means any Third-Party that is granted a sublicense as permitted by Section 2.2, either directly by Scribe or its Affiliates or indirectly by any other Sublicensee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.72 "<u>Technology</u>" means collectively Patents and Know-How.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.73 "<u>Technology Transfer</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.74 "<u>Technology Transfer Plan</u>" has the meaning set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.75 "<u>Term</u>" has the meaning set forth in Section 9.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.76 "<u>Territory</u>" means worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.77 "<u>Third-Party</u>" means any person or entity other than Scribe, Acuitas and their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.78 "<u>Third-Party Claims</u>" has the meaning set forth in Section 8.6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.79 "<u>Third-Party Payments</u>" has the meaning set forth in Section 3.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.80 "<u>Transferred Technology</u>" has the meaning set forth in the Development and Option Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.81 "<u>Valid Claim</u>" means, with respect to a claim of a Patent included in the Licensed Technology in a particular country, (a) a claim of an issued patent included in the Licensed Technology which has not expired or been abandoned and which has not been disclaimed, canceled, or held permanently revoked, invalid or unenforceable by a court or administrative agency of competent jurisdiction from which no further appeal is possible and that has not been cancelled, withdrawn, abandoned, disclaimed or admitted to be invalid or unenforceable through reissue, disclaimer or otherwise, or (b) a claim of a pending patent application included in the Licensed Technology which claim is being actively prosecuted and which has not been (i) canceled, withdrawn from consideration, or abandoned without being refiled in another application in the applicable jurisdiction (ii) finally rejected or determined to be unallowable by the applicable governmental authority (and from which no appeal is (within the time allowed for appeal) or can be taken), or (iii) disclaimed, or (iv) admitted to be invalid or unenforceable through reissue, disclaimer or otherwise, provided that any claim in any patent application pending for more than seven (7) years from the earliest date on which such patent application claims priority shall not be considered a Valid Claim for purposes of this License Agreement from and after such seven (7) year date unless and until a Patent containing such claim issues from such patent application and such issued claim meets the requirements of clause (a) hereof; provided, further, that in no event will any claim of Patent that would otherwise be expired except for a Patent term extension with respect to a product that is not a Licensed Product under this License Agreement be considered a Valid Claim. For purposes of this License Agreement, a claim of a pending international or regional patent application included in the Licensed Technology is a Valid Claim in each country designated by such international or regional patent application until the expiration date for national filing in each such designated country has passed without the filing of a national phase application in such country, with no opportunity to revive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.82 "<u>Workplan Data</u>" has the meaning set forth in the Development and Option Agreement.

**ARTICLE 2** 

**<u>License Grant; Technology Transfer</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>License by</u> <u>Acuitas</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>License</u>. Subject to the terms and conditions of this License Agreement, Acuitas hereby grants to Scribe a non-exclusive license, with the right to sublicense only as permitted by Section 2.3(b), under the Licensed Technology, to research, develop, have developed, make, have made, keep, use and have used, sell, offer for sale, have sold, import and have imported, export and have exported and otherwise commercialize and exploit Licensed Products in the Field of Use in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>License Limitations</u>. No licenses or other rights are granted by Acuitas hereunder to use any trademark, trade name, trade dress or service mark owned or otherwise Controlled by Acuitas or any of its Affiliates. All licenses and other rights are or will be granted only as expressly provided in this License Agreement or the Development and Option Agreement, and no other licenses or other rights are or will be created or granted by either Party hereunder by implication, estoppel or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Updated License</u>. Notwithstanding the foregoing, during clinical development, Scribe may, upon notice to Acuitas, elect to remove any of the Targets from the Licensed Product provided [\*]. During clinical development, Scribe may also, upon notice to Acuitas, elect to [\*] to a Licensed Product. If such added Target is, at the moment of Scribe's election, not a "Reserved Target" pursuant to the Development and Option Agreement, before adding the Target to the Licensed Product, Scribe must (i) [\*]; and (ii) [\*]. Further, Scribe's license under this License Agreement with respect to such Target, shall also include the Targets described in such updated Target Notice without any additional consideration being payable to Acuitas.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Sublicensing Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer</u>. The license granted in Section 2.1 is transferable only upon a permitted assignment of this License Agreement in accordance with Section 10.10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Scribe Sublicenses</u>. The license granted in Section 2.1 may be sublicensed (with the right to sublicense through multiple tiers), in full or in part, by Scribe, its Affiliates or Sublicensees to Scribe's Affiliates and Third-Parties, *provided*, that for any sublicense to Third-Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&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) Each sublicense will be in writing and on terms consistent with and subject to the terms of this License 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Scribe will provide Acuitas with a copy of any sublicense agreement with a Sublicensee that includes commercialization rights within [\*] of execution thereof, which sublicense agreement may be redacted as necessary to protect commercially sensitive information and will be treated as Scribe's Confidential Information hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&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) Scribe will be responsible for any and all obligations of such Sublicensee as if such Sublicensee were Scribe hereunder; 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any sublicense granted by Scribe to any rights licensed to it hereunder will terminate immediately upon the termination of the license from Acuitas to Scribe and its Affiliates with respect to such rights; *provided*, that such sublicensed rights will not terminate if, as of the effective date of such termination pursuant to Sections 9.2, 9.3(a) or 9.4, a Sublicensee is not in material default of its obligations under its sublicense agreement, and within [\*] of such termination, the Sublicensee agrees in writing to be bound directly to Acuitas under a license agreement substantially similar to this License Agreement with respect to the rights sublicensed hereunder, substituting such Sublicensee for Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subcontractors</u>. For clarity purposes, Scribe is entitled to engage contract research organizations, contract manufacturing organizations, distributors, wholesalers and other service providers for the development, manufacture and distribution of Licensed Products on behalf of Scribe. To the extent such contract organizations and service providers require a license to perform such subcontracted activities under applicable Laws, Scribe is entitled to grant a limited research, manufacturing or distribution sublicense (as applicable) without an obligation to meet the conditions of Section 2.3(b)(ii) and 2.3(b)(iv).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Technology Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Technology Transfer</u>. After the License Agreement Effective Date and promptly upon written request by Scribe (and in any event within [\*] following designation of the applicable CMO, *provided* such CMO is able to support this timeline), Acuitas will conduct a Technology Transfer as set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Activities</u>. Without limiting the foregoing, Acuitas will in particular:

&nbsp;&nbsp;&nbsp;&nbsp;&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) transfer to the CMO all documents relating to Licensed Technology necessary or useful for the manufacture of Licensed Products, including documents relating to the Transferred Technology, and that are owned or Controlled by Acuitas;

&nbsp;&nbsp;&nbsp;&nbsp;&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) allow Scribe to monitor the progress of the transfer and to confirm whether the transfer has been successfully completed;

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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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) provide training to the CMO by fully qualified and experienced employees or contractors of Acuitas in respect of the manufacture of Licensed Products. Unless otherwise agreed, the training will be provided at the CMO's site. For purposes of the training, Acuitas will make available at least two (2) experienced and competent Acuitas FTEs, the specific qualification of the Acuitas FTEs and the details of the training to be further described in the Technology Transfer Plan; 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) provide ongoing technical support in relation to the Transferred Technology to the CMO, as reasonably requested by Scribe from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Diligence</u>. Acuitas will perform the Technology Transfer in a professional manner and in accordance with the Technology Transfer Plan and use Diligent Efforts to meet the objectives and timelines set forth therein. Acuitas will ensure that the CMO is trained and empowered to manufacture the Licensed Product. It is understood that successful Technology Transfer cannot be guaranteed and Acuitas will not be found not to have used Diligent Efforts based on the failure by the CMO to achieve any particular result, unless Acuitas contributed to or caused such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Intellectual Property</u>. Any intellectual property generated during the Technology Transfer or ongoing technical support provided by Acuitas hereunder or through the use of Formulated Product will constitute Workplan Data in accordance with the Development and Option Agreement and will be included in Acuitas Sole Technology, Scribe Sole Technology or Joint IP, as the case may be, as set forth in the Development and Option Agreement, and will be subject to Articles 6 and 7 of the Development and Option Agreement, as applicable and as such provisions may be further subject to the provisions of this License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment</u>. Scribe will reimburse Acuitas on a [\*], up to the amounts set forth in the Technology Transfer Plan, for (i) FTE Costs based on the number of hours worked by Acuitas' FTEs, and (ii) any reasonable external costs approved by Scribe in advance that are incurred by Acuitas, in each case in the performance of the agreed technology transfer activities for the Technology Transfer. Acuitas will send a reasonably detailed invoice to Scribe no later than [\*] after the end of each [\*], which invoice will include a summary of all activities by the name of each individual, number of hours devoted by each such individual, and the type/activity performed by each such individual during such [\*], and a detailed summary and reasonable documentation of all external costs incurred by Acuitas during such Calendar Quarter. Scribe agrees to pay undisputed amounts in each such invoice within [\*] of Scribe's receipt thereof.

**ARTICLE 3** 

**<u>Payments and Royalties</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>License Maintenance Fees</u>. A License Maintenance Fee of Seven Hundred and Fifty Thousand Dollars (US$750,000) will be payable on [\*] and each [\*] thereafter until such time as the Milestone Payment for first dosing of the first patient in the first Phase 1 Study for a Licensed Product anywhere in the Territory is paid. In the [\*] period in which first dosing of the first patient in the first Phase 1 Study for a Licensed Product anywhere in the Territory is achieved, Acuitas will credit the License Maintenance Fee for that period on a pro rata basis against the Milestone Payment for such Milestone Event. For clarity, this pro rata credit will be for the remaining months in the last [\*] period to which the License Maintenance Fee applies and will be credited up to the maximum of the Milestone Payment payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Milestone Payments</u>. Scribe will make milestone payments (each, a "<u>Milestone Payment</u>") to Acuitas upon the first occurrence of each of the milestone events (each, a "<u>Milestone Event</u>") by Scribe or its Affiliates with respect to a Licensed Product as set forth below in Table 3.2. Scribe will notify Acuitas of the achievement of each Milestone Event within [\*] of such achievement. Each Milestone Payment will be payable to Acuitas by Scribe within [\*] of the achievement of the specified Milestone Event and such

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payments when owed or paid will be non-creditable. If one or more of the Milestone Events set forth below are not achieved with respect to a Licensed Product for any reason, the payment for such skipped Milestone Event will be due at the same time as the payment for the next achieved Milestone Event for a Licensed Product. Each Milestone Event will be paid just once under each License Agreement.

**Table 3.2– Milestone Events** 

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| | |
|:---|:---|
| *Milestone Event* | *Milestone Payment* |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Royalties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Royalties</u>. During the Royalty Term, Scribe will pay to Acuitas a royalty equal to [\*] of all Licensed Products sold by Scribe, its Affiliates, or Sublicensees which, [\*] ("<u>Patent Royalties</u>"). If, at any time during the Royalty Term, the manufacture, use or sale of a Licensed Product does not infringe a Valid Claim of an LNP Technology Patent, then [\*] ("<u>Know-How Royalties</u>", and together with the Patent Royalties, the "<u>Royalties</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Third-Party Payments</u>. If Scribe or its Affiliate or Sublicensee considers it necessary or useful to acquire or obtain a Patent license from any Third-Party solely under or Solely Relating to LNP Technology in order to develop, manufacture or commercialize a Licensed Product, the amount of Scribe's Royalty obligations under Section 3.3(a) will be [\*] of the amount of the royalty payments made to such Third-Party in respect of such LNP Technology ("<u>Third-Party Payments</u>"); *provided, however*, that such reduction will not result in less than the Minimum Royalty. For clarity, "Solely Relating to LNP Technology" means that the claims in such Third-Party Patent do not include any element or component other than a lipid component or the biophysical properties of the lipid nanoparticle itself excluding any nucleic acid component or method of use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Minimum Royalty</u>. In no event will the Royalty reductions under subparagraph (a) or (b) above result in a Royalty payable by Scribe to Acuitas for any Licensed Product that is less than the Royalty payable using a royalty rate of [\*] (the "<u>Minimum Royalty</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Royalty Term</u>. The Royalty term ("<u>Royalty Term</u>") will be determined on a country-by-country and Licensed Product-by-Licensed Product basis and will commence on the First Commercial Sale of a Licensed Product in such country and will expire on the last to occur of (i) the expiration of the last to expire Valid Claim that Covers the Licensed Product in such country, (ii) the expiration of any period of Regulatory Exclusivity, if any, for the Licensed Product in such country and (iii) ten (10) years from the First Commercial Sale of Licensed Product in such country. Thereafter, Scribe's license under Section 2.1 will become irrevocable, fully paid-up, and royalty-free on a country-by-country and Licensed Product-by-Licensed Product basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Blended Royalty</u>. The Parties acknowledge and agree that the Licensed Technology licensed under this License Agreement may justify Royalty rates or Royalty Terms of differing amounts for the sale of Licensed Products in the Territory, depending on the number of LNP Technology Patents and their respective expiry. The Parties have determined in light of such considerations and for reasons of mutual convenience that blended Royalty rates for the Licensed Technology licensed hereunder will apply during a single Royalty Term for sales of a Licensed Product in the Territory. Consequently, the Parties have agreed to adopt the Royalty rates set forth in this Section 3.3 with respect to the sales of Licensed Products in the Territory as blended Royalty rates. For the avoidance of doubt, Scribe's obligation to pay Royalties under this Section 3.3 is imposed only once at the applicable Royalty rate set forth in this Section 3.3 with respect to the same unit of Licensed Product, notwithstanding that such Licensed Product may be Covered by more than one Valid Claim of an LNP Technology Patent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Payment Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Manner of Payment; Invoices</u>. All amounts specified in this License Agreement are in U.S. dollars and all payments to be made by Scribe hereunder will be made in U.S. dollars by wire transfer to such bank account as Acuitas may designate in advance in writing. All invoices to be delivered to Scribe hereunder will be delivered in accordance with Section 10.11 or in such other manner specified by Scribe from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Records and Audits</u>. Scribe will keep, and will require each of its Affiliates and Sublicensees, as applicable, to keep adequate books and records of accounting for the purpose of calculating all Royalties payable to Acuitas hereunder. For the [\*] next following the end of the calendar year to which each will pertain, such books and records of accounting of Scribe (including those of Scribe's Affiliates) will be kept at each of their principal places of business and will be open for inspection at reasonable times and upon reasonable notice by an independent certified accountant selected by Acuitas, and which is reasonably acceptable to Scribe, for the sole purpose of inspecting the Royalties due to Acuitas under this License Agreement. In no event will such inspections be conducted hereunder more frequently than once every [\*] or more than once for the same time period. If discoveries are made of discrepancies in the inspection, the independent certified accountant will be able to revisit previous inspections. Such accountant must have executed and delivered to Scribe and its Affiliates a confidentiality agreement as reasonably requested by Scribe, which will include provisions limiting such accountant's disclosure to Acuitas to only the results and basis for such results of such inspection. The results of such inspection, if any, will be binding on both Parties absent manifest error. Any underpayments will be paid by Scribe within [\*] of notification of the results of such inspection. Any overpayments will be fully creditable against amounts payable in subsequent payment periods, or, upon the request of Scribe, paid by Acuitas to Scribe within [\*] of notification of the results of such inspection. Acuitas will pay for such inspections, except that in the event there is any upward adjustment in aggregate Royalties payable for any [\*] shown by such inspection of more than [\*] of the amount paid, in which case Scribe will reimburse Acuitas for any reasonable out-of-pocket costs of such accountant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reports and Royalty Payments</u>. For as long as Royalties are due under Section 3.3, Scribe will furnish to Acuitas a written report for each [\*], showing the amount of Net Sales of Licensed Products and Royalties due for such Calendar Quarter. Reports will be provided within [\*]of the end of the [\*] for Net Sales generated by Scribe and its Affiliates, and within [\*] of the end of the [\*] for Net Sales generated by Sublicensees. Royalty payments for each [\*] will also be due within [\*] of the end of the [\*]. Royalty payments for each [\*] will be due at the same time as the last such written report for the [\*]. The report will include, at a minimum, the following information for the applicable [\*], each listed by Licensed Product and by country of sale: [\*]. Scribe will require each Sublicensee to share with Scribe the information listed in the foregoing clauses as it relates to Net Sales made by such Sublicensee, and to the extent practicable, will include such Sublicensee information in such report. All such reports will be treated as Confidential Information of Scribe.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Currency Exchange</u>. With respect to Net Sales invoiced in U.S. dollars, the Net Sales and the amounts due to Acuitas hereunder will be expressed in U.S. dollars. With respect to Net Sales invoiced in a currency other than U.S. dollars, payments will be calculated based on standard methodologies employed by Scribe or its Affiliates or Sublicensees for consolidation purposes for the Calendar Quarter for which remittance is made for Royalties. This methodology will be shared with Acuitas with the first royalty report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Taxes</u>. Scribe may withhold from payments due to Acuitas amounts for payment of any withholding tax that is required by Law to be paid to any taxing authority with respect to such payments. Scribe will provide Acuitas all relevant documents and correspondence and will also provide to Acuitas any other cooperation or assistance on a reasonable basis including proper evidence as to the payment of any such tax, as may be necessary to enable Acuitas to claim exemption from such withholding taxes and to receive a refund of such withholding tax or claim a foreign tax credit. The Parties will cooperate with each other in seeking deductions under any double taxation or other similar treaty or agreement from time to time in force. Such cooperation may include Scribe making payments from a single source in the U.S., where reasonably possible. Apart from any such permitted withholding and those deductions expressly included in the definition of Net Sales, the amounts payable by Scribe to Acuitas hereunder will not be reduced on account of any taxes, charges, duties or other levies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Blocked Payments</u>. In the event that, by reason of applicable Law in any country, it becomes impossible or illegal for Scribe or its Affiliates or Sublicensees to transfer, or have transferred on its behalf, payments owed to Acuitas hereunder, Scribe will promptly notify Acuitas of the conditions preventing such transfer and such payments will be deposited in local currency in the relevant country to the credit of Acuitas in a recognized banking institution designated by Acuitas or, if none is designated by Acuitas within a period of [\*], in a recognized banking institution selected by Scribe or its Affiliate or Sublicensee, as the case may be, and identified in a written notice given to Acuitas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Interest Due</u>. If any payment due to Acuitas under this License Agreement is overdue (and is not subject to a good faith dispute), then Scribe will pay interest thereon (before and after any judgment) at an annual rate of the lesser of [\*] above the prime rate as reported in The Wall Street Journal, Eastern Edition, and the maximum rate permitted by applicable Law, such interest to run from the date upon which payment of such sum became due until payment thereof in full together with such interest. The rate of this interest will be calculated on a simple basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Mutual Convenience of the Parties</u>. The Royalty and other payment obligations set forth hereunder have been agreed to by the Parties for the purpose of reflecting and advancing their mutual convenience, including the ease of calculating and paying Royalties and other amounts to Acuitas.

**ARTICLE 4** 

**<u>Ownership and Inventorship of IP</u>**

As between the Parties, and except as set forth in Section 2.4(d), each Party will own and retain all right, title and interest in and to any and all Know-How and Patents arising therefrom that are discovered, created, conceived, developed or reduced to practice solely by or on behalf of such Party under or in connection with this License Agreement ("<u>Solely Owned Technology</u>"). Subject to the licenses hereunder and the other terms and conditions of this License Agreement or any other agreement between the Parties, each Party will be solely responsible for the prosecution and maintenance, and the enforcement and defense, of any Patents within its Solely Owned Technology.

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**ARTICLE 5** 

**<u>Patent Prosecution and Maintenance</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>General</u>. The Parties' rights and obligations with respect to the prosecution and maintenance of Patents included in the Acuitas Sole Technology, Scribe Sole Technology, and Joint IP shall be as set forth in the Development and Option Agreement and the Joint Prosecution and Maintenance Agreement (as defined therein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>LNP Technology Patents</u>. Without limiting the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Election Not to Prosecute or Maintain or Pay Patent Costs</u>. If Acuitas elects not (i) to prosecute or maintain any LNP Technology Patents for which it is responsible under the Development and Option Agreement in any particular Major Market Country before the applicable filing deadline or continue such activities once filed in a particular Major Market Country, or (ii) to pay the Patent Costs associated with prosecution or maintenance of any such LNP Technology Patents, then in each such case Acuitas will so notify Scribe, promptly in writing and in good time to enable Acuitas to meet any deadlines by which an action must be taken to preserve such LNP Technology Patent in such Major Market Country, if Scribe so requests. Upon receipt of each such notice by Acuitas, Scribe will have the right, but not the obligation, to notify Acuitas in writing on a timely basis that Acuitas should continue the prosecution or maintenance of such LNP Technology Patent in the respective Major Market Country, and thereafter, (x) Acuitas would prosecute and maintain such LNP Technology Patent in such Major Market Country at the direction and expense of Scribe and any other Acuitas Third-Party licensee of such LNP Technology Patent so electing (on a pro rata basis), (y) Acuitas would make available to Scribe all documentation and correspondence with respect to such LNP Technology Patent, and (z) Scribe's license to such LNP Technology Patent under Section 2.1 will automatically become irrevocable, perpetual, fully paid-up and royalty free but such LNP Technology Patent will thereafter no longer be part of the Licensed Technology in such Major Market Country for all other purposes of this License Agreement (e.g., such LNP Technology Patent will not be considered for purposes of determining whether a Valid Claim exists in a particular country). Scribe is entitled to discontinue the payment of Patent Costs for any LNP Technology Patents at any time, provided that it will so notify Acuitas in writing in time for such discontinuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Regulatory Exclusivity Periods</u>. With respect to any Patent term extension, supplemental protection certificate or any other Patent listing or extension with respect to any Licensed Technology Patent Covering a Licensed Product, the Parties will discuss and seek to reach mutual agreement, subject to applicable Law, on whether and which LNP Technology Patent will be subject to such action, and once such agreement is reached, Acuitas will cooperate with such action. Except where required under applicable Law, without the written consent of Scribe, Acuitas will not apply for, and is not authorized under this License Agreement to apply for, any Patent term extension, supplemental protection certificate or any other Patent listing or extension required for any regulatory exclusivity periods for any Licensed Product. For the avoidance of doubt, Acuitas is not restricted from applying for any Patent term extension, supplemental protection certificate or any other Patent listing or extension required for any regulatory exclusivity periods for any product other than the Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Patent Listings</u>. Scribe will have the sole right, in its sole discretion, to make all filings with Regulatory Authorities in the Territory for the Licensed Products in the FDA's Orange Book or Purple Book or in response to a biosimilar application under Section 351(k) of the Public Health Service Act, and under any similar or equivalent Laws in other countries or jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Cooperation</u>. Each Party will reasonably cooperate with the other Party in those activities involving the LNP Technology Patents set forth in Sections 5.2 to 5.4. Such cooperation includes promptly executing all documents, or requiring inventors, subcontractors, employees and consultants and agents of Scribe and Acuitas and their respective Affiliates and Sublicensees to execute all documents, as reasonable and appropriate so as to enable such activities in respect of any such LNP Technology Patents in any country.

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**ARTICLE 6** 

**<u>Patent Enforcement and Defense</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Enforcement</u>. The Parties' rights and obligations with respect to enforcement of Patents included in the Acuitas Sole Technology, Scribe Sole Technology, and Joint IP shall be as set forth in the Development and Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Infringement Defense</u>. Notwithstanding anything to the contrary in the Development and Option Agreement, the following provisions in this Section 6.2 and Section 6.3 shall apply. In the event that any action, suit or proceeding is brought against either Scribe or an Affiliate or a Sublicensee of Scribe or its Affiliates, alleging the infringement of the Patents or misappropriation of Know-How of a Third-Party by the research, development, manufacture, use, sale, import, export, commercialization or exploitation of a Licensed Product, Scribe will promptly notify the Acuitas within [\*] of the earlier of (x) receipt of service of process in such action, suit or proceeding, or (y) the date Scribe becomes aware that such action, suit or proceeding has been instituted. Scribe will have the sole right to defend such action, suit or proceeding in the Territory at its sole cost. For clarity, Scribe will have the sole right to defend any Patents owned or controlled by Scribe other than the LNP Technology Patents. Notwithstanding the foregoing, any response to a Third-Party infringer's counterclaim of invalidity or unenforceability of any LNP Technology Patents will be controlled by Acuitas unless otherwise mutually agreed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Withdrawal, Cooperation and Participation</u>. With respect to any infringement or defensive action identified above in Section 6.2 which may be controlled by either Scribe or Acuitas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The non-controlling Party will cooperate with the Party controlling any such action (as may be reasonably requested by the controlling Party), including by (A) providing access to relevant documents and other evidence, (B) making its and its Affiliates and Sublicensees and all of their respective employees, subcontractors, consultants and agents available at reasonable business hours and for reasonable periods of time, but only to the extent relevant to such action, and (C) if necessary, being joined as a party, subject for this clause (C) to the controlling Party agreeing to indemnify such non-controlling Party for its involvement as a named party in such action and paying those Losses incurred by such Party in connection with such joinder, but subject in all respects to the indemnification obligations of the Parties pursuant to Section 8.6 of the Development and Option Agreement and Section 8.6 of this License Agreement. The Party controlling any such action will keep the other Party updated with respect to any such action, including providing copies of all documents received or filed in connection with any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Party will have the right to participate or otherwise be involved in any such action controlled by the other Party, in each case at the participating (*i.e.*, non-controlling) Party's sole cost and expense. If a Party elects to so participate or be involved, the controlling Party will provide the participating Party and its counsel with an opportunity to consult with the controlling Party and its counsel regarding the prosecution of such action (including reviewing the contents of any correspondence, legal papers or other documents related thereto), and the controlling Party will take into account reasonable requests of the participating Party regarding such enforcement or defense. The foregoing will not apply to any defensive actions described in Section 6.2 that do not involve claims specifically relating to an LNP Technology Patent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Settlement</u>. Neither Party will settle or consent to an adverse judgment in any action described in Section 6.2 and controlled by such Party, including any judgment which affects the scope, validity or enforcement of any LNP Technology Patents involved therewith, without the prior written consent of the other Party (such consent not to be unreasonably withheld, conditioned or delayed); *provided*, that the foregoing will not apply to the extent that such settlement or consent to an adverse judgment does not relate to an LNP Technology Patent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Damages</u>. Unless otherwise agreed by the Parties, all monies recovered upon the final judgment or settlement of any action which may be controlled by either Scribe or Acuitas and described in Section 6.2 in each case will be used first to reimburse the controlling Party, and thereafter the non-controlling Party, for each of their out-of-pocket costs and expenses relating to the action, with the balance of any such recovery to be divided as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&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) To the extent such recovery reflects damages based on lost sales with respect to Licensed Products, Scribe will retain such lost sales recovery, less the amount of Royalties payable to Acuitas by treating such lost sales as "<u>Net Sales</u>" hereunder; 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any other recovery based on Licensed Products will be allocated [\*] to the Party controlling the action and [\*] to the other Party.

**ARTICLE 7** 

**<u>Confidentiality</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Confidential Information</u>. Each Party ("<u>Disclosing Party</u>") may disclose to the other Party ("<u>Receiving Party</u>") and Receiving Party may acquire during the course and conduct of activities under this License Agreement, certain non-public confidential information of Disclosing Party in connection with this License Agreement. The term "<u>Confidential Information</u>" means all proprietary or non-public information of any kind, whether in written, oral, graphical, machine-readable, or other form, whether or not marked as confidential or proprietary, that is disclosed or made available by or on behalf of the Disclosing Party to or on behalf of the Receiving Party in connection with this License Agreement. For the avoidance of doubt, except as otherwise set forth in this License Agreement, Confidential Information (as such term is defined in the Development and Option Agreement) relating to Licensed Product that is disclosed or made available by or on behalf of the Disclosing Party to the Receiving Party in connection with or under the Development and Option Agreement, or the Confidential Disclosure Agreement remains subject to the confidentiality and non-use provisions of the Development and Option Agreement. Notwithstanding Section 3.3(b) or any other provision of the Development and Option Agreement to the contrary, Scribe may use and disclose Workplan Data with respect to Licensed Product in the performance of its obligations and exercise of its rights under this License Agreement, including in connection with the development, manufacture and commercialization of Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Restrictions</u>. During the Term and for [\*] thereafter, or with respect to any trade secret included in the Confidential Information for so long as such trade secret is protected under applicable Laws (*provided*, that Receiving Party has not publicly disclosed such trade secret in breach of its obligations under this Article 7), Receiving Party will keep all Disclosing Party's Confidential Information in confidence with the same degree of care with which Receiving Party holds its own confidential information, but in no event less than reasonable care. Receiving Party will not use Disclosing Party's Confidential Information except for in connection with the performance of its obligations and exercise of its rights under this License Agreement. Receiving Party has the right to disclose Disclosing Party's Confidential Information without Disclosing Party's prior written consent to Receiving Party's Affiliates, and each of its and their employees, subcontractors, Sublicensees, consultants and agents who have a need to know such Confidential Information in order to perform (or for such entities to determine their interest in performing) Receiving Party's obligations or in the exercise of the Receiving Party's rights under this License Agreement and who are under written obligation to comply with the restrictions on use and disclosure that are no less restrictive than those set forth in this Article 7. Receiving Party assumes responsibility for such entities and persons maintaining Disclosing Party's Confidential Information in confidence and using same only for the purposes described herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Exceptions</u>. Receiving Party's obligation of nondisclosure and the limitations upon the right to use the Disclosing Party's Confidential Information will not apply to a specific portion of the Disclosing Party's Confidential Information to the extent that Receiving Party can demonstrate that such portion: (a) was known to Receiving Party or any of its Affiliates prior to the time of disclosure by the Disclosing Party without obligation of confidentiality; (b) is or becomes public knowledge through no fault or omission of Receiving Party or any of its Affiliates; (c) is obtained on a non-confidential basis by Receiving Party or any of its Affiliates from a Third-Party who to Receiving Party's knowledge is lawfully in possession thereof and under no obligation of confidentiality to Disclosing Party; or (d) has been independently developed by or on behalf of Receiving Party or any of its Affiliates without the aid, application or use of Disclosing Party's Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Permitted Disclosures</u>. Subject to Section 7.3, Receiving Party may disclose Disclosing Party's Confidential Information to the extent (and only to the extent) such disclosure is permitted under Section 7.2 or is reasonably necessary in the following instances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in order and to the extent required to comply with applicable Laws (including any securities Laws or regulations or the rules of a securities exchange applicable to Receiving Party) or with a legal or administrative proceeding or as required by a court or administrative order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with prosecuting or defending litigation, including responding to a subpoena in a Third-Party litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with filing, prosecuting and enforcing Joint IP in connection with Receiving Party's rights and obligations pursuant to this License Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to actual and potential acquirers, assignees, investment bankers, investors, lenders and other financing sources, and to consultants and advisors of the Receiving Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the case of Scribe, to (i) subcontractors, (ii) licensees, Sublicensees, assignees and collaboration partners, or (iii) potential licensees, Sublicensees, assignees or collaboration partners, in each case identified in advance to Acuitas, but in the case of (iii) only such information that is reasonably necessary or useful for the potential licensee, Sublicensee, assignee or collaboration partner to evaluate Licensed Product and LNP/Licensed Product manufacturing processes, including the particular chemical structure and formulation of any lipid nanoparticles incorporated in such products.

Where reasonably possible, Receiving Party will notify Disclosing Party of Receiving Party's intent to make any disclosure pursuant to subsections (a) or (b) above sufficiently prior to making such disclosure so as to allow Disclosing Party adequate time to take whatever action it may deem appropriate to protect the confidentiality of the information to be disclosed. Moreover, with respect to subsections (d) or (e) above, (i) each of those entities will be required to comply with the restrictions on use and disclosure no less restrictive that those in Section 7.2 (other than investment bankers, investors, lenders, and other financing sources which must be bound prior to disclosure by commercially reasonable obligations of confidentiality), (ii) the Receiving Party is responsible for any failures by such entities to observe such restrictions or obligations of confidentiality and (iii) to the extent Scribe discloses any Workplan Data to such entities, Scribe will acknowledge Acuitas as the source of the LNP. Confidential Information that is required to be disclosed pursuant to subsections (a) or (b) above will remain otherwise subject to the confidentiality and non-use provisions of Section 7.1 and Section 7.2. If either Party concludes that a copy of this License

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Agreement must be filed with the United States Securities and Exchange Commission or similar regulatory agency in a country other than the United States, at least [\*] in advance of any such filing such Party will provide the other Party with a copy of this License Agreement showing any provisions hereof as to which the Party proposes to request confidential treatment, will provide the other Party with a reasonable opportunity to comment on any such proposed redactions and to suggest additional redactions, and will take such Party's reasonable and timely comments into consideration before so filing this License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Publications</u>*.* Notwithstanding anything in this License Agreement or the Development and Option Agreement to the contrary, Scribe is permitted to publish the results of its development and other activities under this License Agreement, *provided, however*, that Scribe will not disclose Confidential Information of Acuitas. Scribe will deliver to Acuitas a copy of any proposed written publication or presentation of such results that contains the Confidential Information of Acuitas at least [\*] prior to submission for publication or presentation. Acuitas will have the right to (i) remove Acuitas' Confidential Information, (ii) propose modifications to the publication or presentation for patent reasons, trade secret reasons or business reasons, which proposals Scribe will consider in good faith, and (iii) request a reasonable delay in publication or presentation in order to protect patentable information in accordance with Article 5. Following the expiration of the applicable time period for review, Scribe will be free to submit for publication or otherwise disclose to the public such results, subject to the procedures set forth in the remainder of this Section 7.6. If Acuitas provides written notice to Scribe requesting a delay pursuant to clause (iii) in this Section 7.6, Scribe will delay such submission or presentation for a period of an additional [\*] to enable Acuitas to file patent applications on the disclosed subject matter. Scribe will thereafter be free to publish or disclose such information, except that Scribe may not disclose any Confidential Information of Acuitas. Expedited reviews for abstracts or poster presentations, or for other publications that may relate to potential patent applications, in each case that contain Confidential Information of Acuitas, may be mutually agreed by the Parties. Scribe will comply with standard academic practice regarding authorship of scientific publications and recognition of the contributions of other parties in any scientific publications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Terms of this License Agreement; Publicity</u>. The Parties agree that the existence and terms of the Parties' relationship and this License Agreement will be treated as Confidential Information of both Parties, and thus may be disclosed only as permitted by Sections 7.2, 7.3 or 7.4. Except as required by applicable Laws (including any securities Laws or the regulations or rules of a securities exchange) or otherwise agreed by the Parties in writing, each Party agrees not to issue any press release or public statement disclosing information relating to the existence of this License Agreement or the transactions contemplated hereby or the terms hereof without the prior written consent of the other Party, *provided*, *however*, *that* if Scribe issues any press release or public statement relating to the Licensed Product it will acknowledge that such Licensed Product incorporates LNP Technology licensed from Acuitas and Acuitas may at its sole discretion issue a press release or public statement confirming that such Licensed Product incorporates LNP Technology licensed from Acuitas.

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**ARTICLE 8** 

**<u>Warranties; Limitations of Liability; Indemnification</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Representations and Warranties</u>. Each Party represents and warrants to the other as of the License Agreement Effective Date that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a corporation duly organized, validly existing, and in good standing under the Laws of the jurisdiction in which it is incorporated,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has the legal right and power to enter into this License Agreement, to extend the rights and licenses granted or to be granted to the other in this License Agreement, and to fully perform its obligations hereunder,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it has taken all necessary corporate action on its part required to authorize the execution and delivery of this License Agreement and the performance of its obligations hereunder,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this License Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, and binding obligation of such Party that is enforceable against it in accordance with its terms,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the execution, delivery and performance of this License Agreement by such Party does not violate any Law of any court, governmental body or administrative or other agency having jurisdiction over such Party,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) except for the governmental approvals and Marketing Authorizations required to develop, manufacture and commercialize the Licensed Product, no government authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, under any applicable Laws currently in effect, is necessary for the transactions contemplated by this License Agreement or for the performance of its obligations under this License Agreement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) during the Term, that its Affiliates, its and their employees, and their consultants and agents have executed agreements or have existing obligations under Law requiring assignment to such Party of all intellectual property and proprietary rights made during the course of and as the result of their activities in connection with this License Agreement (to the extent permitted by Laws), and obligating such individuals to maintain as confidential the Confidential Information of a Disclosing Party under the Development and Option Agreement or this License Agreement, and of any Third-Party which such Party may receive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Additional Representations of</u> <u>Acuitas</u>. Except as set forth on Appendix 8.2, Acuitas hereby represents and warrants to Scribe as of the License Agreement Effective Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Impairment</u>. Neither Acuitas nor any of its Affiliates has entered into any agreement or otherwise licensed, granted, assigned, transferred, conveyed or otherwise encumbered or disposed of any right, title or interest in or to any of its assets, including any Technology, that would in any way conflict with or impair the scope of any rights or licenses granted to Scribe hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Patents and Know-How</u>. Appendix 1.44 sets forth a complete and accurate list of all LNP Technology Patents as of the License Agreement Effective Date. Acuitas is the sole and exclusive owner of the Licensed Technology, or otherwise has the right to license the Licensed Technology and grant rights to Scribe as set forth in this License Agreement on the License Agreement Effective Date and during the Term. All Acuitas inventors of the Licensed Technology have validly assigned their rights to the Licensed Technology to Acuitas. Acuitas is and will remain entitled to grant to Scribe the licenses and rights specified or contemplated by this License Agreement, to the Patents and the Know-How within the Licensed Technology. To Acuitas' knowledge, the LNP Technology Patents have been diligently prosecuted and maintained in accordance with applicable Laws. None of the LNP Technology Patents are or have been involved in any opposition, cancellation, interference, reissue or reexamination proceeding. As of the License Agreement Effective Date, neither Acuitas nor any of its Affiliates has received any notice alleging that the LNP Technology Patents are invalid or unenforceable or challenging Acuitas' ownership of the Licensed Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entire LNP Technology</u>. The Licensed Technology licensed to Scribe under this License Agreement comprises all LNP Technology owned or Controlled by Acuitas. As of the Effective Date, the LNP Technology owned or controlled by Acuitas pursuant to the License Agreement dated March 28, 2014 between Acuitas and Alnylam Pharmaceuticals, Inc. is the only LNP Technology owned or controlled by Acuitas that is not Licensed Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Encumbrances</u>. Acuitas and its Affiliates are not subject to any payment obligations to Third-Parties as a result of the execution or performance of this License Agreement. As of the License Agreement Effective Date, neither Acuitas nor any of its Affiliates has granted any liens or security interests on the Licensed Technology, and the Licensed Technology is free and clear of any mortgage, pledge, claim, security interest, covenant, easement, encumbrance, lien or charge of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Defaults</u>. The execution, delivery and performance by Acuitas of this License Agreement and the consummation of the transactions contemplated hereby will not result in any violation of, conflict with, result in a breach of or constitute a default under any understanding, contract or agreement to which Acuitas is a party or by which it is bound, in each case as would reasonably be expected to have a material adverse effect on the rights granted to Scribe hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Litigation</u>. There is no action, suit, proceeding, or investigation pending or, to the knowledge of Acuitas, currently threatened in writing against or affecting Acuitas that questions the validity of this License Agreement, the right of Acuitas to enter into this License Agreement or consummate the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Infringement</u>. Neither Acuitas nor any of its Affiliates has received any notice of any claim that any Patent, Know-How, or other intellectual property owned or controlled by a Third-Party would be infringed or misappropriated by the practice of any Acuitas LNP Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No</u> <u>Debarment</u>. Neither Acuitas, nor to Acuitas' knowledge any of its employees, have been Debarred or are subject to Debarment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Disclaimers</u>. Without limiting the respective rights and obligations of the Parties expressly set forth herein, each Party specifically disclaims any guarantee that any Licensed Product will be successful, in whole or in part. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS LICENSE AGREEMENT, THE PARTIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTY OF ANY KIND UNDER THIS LICENSE AGREEMENT, EITHER EXPRESS OR IMPLIED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4<u> </u><u>No Consequential Damages</u>. NOTWITHSTANDING ANYTHING IN THIS LICENSE AGREEMENT OR OTHERWISE, NEITHER PARTY WILL BE LIABLE TO THE OTHER OR ANY THIRD-PARTY WITH RESPECT TO ANY SUBJECT MATTER OF THIS LICENSE AGREEMENT FOR ANY INDIRECT, PUNITIVE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES; *PROVIDED THAT* THIS SECTION 8.4 WILL NOT APPLY TO BREACHES OF A PARTY'S OBLIGATIONS UNDER ARTICLE 7 OR THE PARTIES' INDEMNIFICATION RIGHTS AND OBLIGATIONS UNDER SECTION 8.6.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5<u> </u><u>Performance by Others</u>. The Parties recognize that each Party may perform some or all of its obligations under this License Agreement through Affiliates and Third-Party agents; *provided, however*, that each Party will remain responsible and liable for the performance by its Affiliates and Third-Party agents and will cause its Affiliates and Third-Party agents to comply with the applicable provisions of this License Agreement in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnification by</u> <u>Scribe</u>. Scribe will indemnify Acuitas, its Affiliates and their respective directors, officers, employees and agents, and their respective successors, heirs and assigns (collectively, "<u>Acuitas</u> <u>Indemnitees</u>"), and defend and hold each of them harmless, from and against any and all losses, damages, liabilities, costs and expenses (including reasonable attorneys' fees and expenses) (collectively, "<u>Losses</u>") in connection with any and all suits, investigations, claims or demands of Third-Parties (collectively, "<u>Third-Party Claims</u>") against the Acuitas Indemnitees to the extent arising from or occurring as a result of: (i) the material breach by Scribe of any provision of this License Agreement; (ii) any negligence or willful misconduct on the part of any Scribe Indemnitee in connection with this License Agreement; or (iii) the development or commercialization by or on behalf of Scribe or any of its Affiliates or Sublicensees of Licensed Products, except in each case (i)-(iii) to the extent Acuitas is obligated to indemnify Scribe in accordance with Section 8.6(b) of this License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by</u> <u>Acuitas</u>. Acuitas will indemnify Scribe, its Affiliates, and their respective directors, officers, employees and agents, and their respective successors, heirs and assigns (collectively, "<u>Scribe Indemnitees</u>"), and defend and hold each of them harmless, from and against any and all Losses in connection with any and all Third-Party Claims against Scribe Indemnitees to the extent arising from or occurring as a result of: (i) the material breach by Acuitas of any provision of this License Agreement; or (ii) any negligence or willful misconduct on the part of any Acuitas Indemnitee in connection with this License Agreement, except in each case (i)-(ii) to the extent Scribe is obligated to indemnify Acuitas in accordance with Section 8.6(a) of this License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Claim</u>. All indemnification claims provided for in Sections 8.6(a) and 8.6(b) will be made solely by such Party to this License Agreement (the "<u>Indemnified Party</u>"). The Indemnified Party will promptly notify the Indemnifying Party (the "<u>Indemnifying Party</u>") in writing of any Third-Party Claims or the discovery of any fact upon which the Indemnified Party intends to base a request for indemnification under Section 8.6(a) and 8.6(b) (each such notice, an "<u>Indemnification Claim Notice</u>"), *provided that* the failure to promptly provide such notice and details will not relieve the Indemnifying Party of any of its indemnification obligations hereunder except to the extent that the Indemnifying Party's defense of the relevant Third-Party Claim is prejudiced by such failure. Each Indemnification Claim Notice must contain a description of the Third-Party Claim and the nature and estimated amount of any Loss (to the extent that the nature and amount of such Loss is known at such time). The Indemnified Party will furnish promptly to the Indemnifying Party copies of all papers and official documents received in respect of any Losses and Third-Party Claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Defense, Settlement, Cooperation and Expenses</u>.

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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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Control of Defense</u>. At its option, the Indemnifying Party may assume the defense of any Third-Party Claim by giving written notice to the Indemnified Party within [\*] after the Indemnifying Party's receipt of an Indemnification Claim Notice. Upon assuming the defense of a Third-Party Claim, the Indemnifying Party may appoint as lead counsel in the defense of the Third-Party Claim any legal counsel selected by the Indemnifying Party (the Indemnifying Party will consult with the Indemnified Party with respect to such counsel and a possible conflict of interest of such counsel retained by the Indemnifying Party). In the event the Indemnifying Party assumes the defense of a Third-Party Claim, the Indemnified Party will immediately deliver to the Indemnifying Party all original notices and documents (including court papers) received by the Indemnified Party in connection with the Third-Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&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>Right to Participate in Defense</u>. Without limiting Section 8.6(d)(i), any Indemnified Party will be entitled to participate in, but not control, the defense of such Third-Party Claim and to employ counsel of its choice for such purpose; *provided, however*, that such employment will be at the Indemnified Party's own cost and expense unless (A) the Indemnifying Party has failed to assume the defense and employ counsel in accordance with Section 8.6(d)(i) (in which case the Indemnified Party will control the defense), or (B) the Indemnified Party has received a written opinion of counsel, reasonably acceptable to the Indemnifying Party, to the effect that the interests of the Indemnified Party and the Indemnifying Party with respect to such Third-Party Claim are sufficiently adverse to prohibit the representation by the same counsel of both Parties under applicable Law, ethical rules or equitable principles, in which case the Indemnifying Party will assume [\*] of any such costs and expenses of counsel for the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Settlement</u>. With respect to any Third-Party Claims that relate solely to the payment of money damages in connection with a Third-Party Claim and that will not (A) result in the Indemnified Party's becoming subject to injunctive or other relief, (B) include any admission or concession of liability or wrongdoing on the part of the Indemnified Party, or (C) otherwise adversely affect the business of the Indemnified Party in any manner, and as to which the Indemnifying Party will have acknowledged in writing the obligation to indemnify the Indemnified Party hereunder, the Indemnifying Party will have the sole right to agree to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss, on such terms as the Indemnifying Party, in its sole discretion, will deem appropriate. With respect to all other Losses in connection with Third-Party Claims, where the Indemnifying Party has assumed the defense of the Third-Party Claim in accordance with Section 8.6(d)(i), the Indemnifying Party will have authority to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss, *provided* it obtains the prior written consent of the Indemnified Party (which consent will not be unreasonably withheld, delayed or conditioned). Where the Indemnifying Party has assumed the defense of the Third-Party Claim in accordance with Section 8.6(d)(i), the Indemnifying Party will not be liable for any settlement or other disposition of a Loss by an Indemnified Party that is reached without the prior written consent of the Indemnifying Party. Regardless of whether the Indemnifying Party chooses to defend or prosecute any Third-Party Claim, no Indemnified Party will admit any liability with respect to or settle, compromise or discharge, any Third-Party Claim without the prior written consent of the Indemnifying Party, such consent not to be unreasonably withheld, delayed or conditioned.

&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Cooperation</u>. Regardless of whether the Indemnifying Party chooses to defend or prosecute any Third-Party Claim, the Indemnified Party will cooperate in the defense or prosecution thereof and will furnish such records, information and testimony, provide such witnesses and attend such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested in connection therewith, at the Indemnifying Party's expense. Such cooperation will include access during normal business hours afforded to the Indemnifying Party to, and reasonable retention by the Indemnified Party of, records and information that are reasonably relevant to such Third-Party Claim, and making Indemnified Parties and other employees and agents available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder, and the Indemnifying Party will reimburse the Indemnified Party for all its reasonable out-of-pocket costs and expenses in connection therewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Costs and Expenses</u>. Except as provided above in this Section 8.6(d), the costs and expenses, including attorneys' fees and expenses, incurred by the Indemnified Party in connection with any claim will be reimbursed on a Calendar Quarter basis by the Indemnifying Party, without prejudice to the Indemnifying Party's right to contest the Indemnified Party's right to indemnification and subject to prompt refund in the event the Indemnifying Party is ultimately held not to be obligated to indemnify the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Insurance</u>. Each Party will maintain at its sole cost and expense, an adequate liability insurance or self-insurance program (including product liability insurance) to protect against potential liabilities and risk arising out of activities to be performed under this License Agreement, including personal injury, physical injury or property damage arising out of the manufacture, sale, use, distribution or marketing of Licensed Products, and upon such terms (including coverages, deductible limits and self-insured retentions) as are customary in the respective industry of such Party for the activities to be conducted by such Party under this License Agreement. The coverage limits set forth herein will not create any limitation on a Party's liability to the other under this License Agreement. Upon the request of a Party, the other Party will provide evidence of the insurance coverage required by this Section 8.7.

**ARTICLE 9** 

**<u>Term and Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Term</u>. This License Agreement will commence as of the License Agreement Effective Date and, unless sooner terminated in accordance with the terms hereof or by mutual written consent of the Parties, will continue on a Licensed Product-by-Licensed Product and a country-by-country basis, until the expiration of the Royalty Term (i.e. when there are no more Royalty payments owed to Acuitas in such country with respect to such Licensed Product) (the period from the License Agreement Effective Date until the last to expire Royalty Term hereunder, the "<u>Term</u>"). Upon expiration of the applicable Royalty Term with respect to the applicable Licensed Product in the applicable country, the license contained in Section 2.1 will become fully paid-up, royalty-free, perpetual and irrevocable with respect to such Licensed Product in such country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Termination by</u> <u>Acuitas</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Breach</u>. Acuitas will have the right to terminate this License Agreement in full upon delivery of written notice to Scribe in the event of a material breach by Scribe of its representations, warranties or obligations under this License Agreement, *provided that* such breach has not been cured within [\*] after written notice thereof is given by Acuitas to Scribe specifying the nature of the alleged breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disputed Breach</u>. If Scribe disputes in good faith the existence or materiality of a breach specified in a notice provided in accordance with Section 9.2(a), and Scribe provides Acuitas notice of such dispute within such [\*] period, then Acuitas will not have the right to terminate this License Agreement under Section 9.2(a) unless and until it is finally determined, in accordance with Section 10.1, that Scribe has materially breached this License Agreement and Scribe has failed to cure such breach within [\*] following such decision. It is understood and agreed that during the pendency of such dispute, all of the terms and conditions of this License Agreement will remain in effect and the Parties will continue to perform all of their respective obligations hereunder. During the pendency of any such dispute, Scribe will pay to Acuitas all Milestone Payments and Royalty payments set forth herein that may become due during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Termination by Scribe</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Breach</u>. Scribe will have the right to terminate this License Agreement in full upon delivery of written notice to Acuitas in the event of a material breach by Acuitas of its representations, warranties or obligations under this License Agreement, *provided that* such breach has not been cured within [\*] after written notice thereof is given by Scribe to Acuitas specifying the nature of the alleged breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Discretionary Termination</u>. Scribe will have the right to terminate this License Agreement in full at its discretion for any or no reason by delivering written notice to Acuitas, such termination to be effective thirty (30) days following the date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Alternative to Termination Under Section</u> <u>9.3(a)</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) If Scribe has the right to terminate this License Agreement under Section 9.3(a), then Scribe may, in lieu of exercising such termination right, elect by written notice to Acuitas before the end of such applicable cure period to have this License Agreement continue in full force and effect for the Term, *provided that* the following will apply: starting immediately after the end of such applicable cure period, Scribe may reduce by [\*] the Milestone Payments and the Royalty rates subject to the Minimum Royalty.

&nbsp;&nbsp;&nbsp;&nbsp;&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) In the event Acuitas notifies Scribe within [\*] of receipt of Scribe's notice of material breach that Acuitas reasonably and in good faith disputes Scribe's right to terminate this License Agreement pursuant to Section 9.3(a), Scribe will instead deposit [\*] of any Milestone Payments and Royalty payments that become due and payable to Acuitas into an escrow account maintained by a mutually agreeable Third-Party pending the resolution of such dispute in accordance with Section 10.1. If Acuitas raises such dispute, the informal dispute resolution process in Section 10.1(a) will not apply, and the negotiation period for the Executive Officers in Section 10.1(b) will be limited to [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&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) In the event that it is established through the dispute resolution process that Scribe did have the right to terminate this License Agreement under Section 9.3(a), then the escrowed funds will be released to Scribe and the [\*] reduction will continue to apply going forward. In the event that it is established through the dispute resolution process that Scribe did not have the right to terminate this License Agreement under Section 9.3(a), then the escrowed funds will be released to Scribe and Scribe will pay to Acuitas the full amount of the Milestone Payments and Royalties that would have been payable with interest payable by Scribe in accordance with Section 3.4(g), and the Milestone Payments and the Royalty payments going forward will continue to be paid in accordance with Article 3 without any reduction under this Section 9.3(c), subject to the Minimum Royalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Termination Upon Bankruptcy</u>. If either Party makes an assignment for the benefit of creditors, appoints or suffers appointment of a receiver or trustee over all or substantially all of its property, files a petition or commences a proceeding under any bankruptcy or insolvency act in any state or country or has any such petition or application filed against it which is not discharged within [\*] of the filing thereof, subject to customary extensions, then the other Party may thereafter terminate this License Agreement effective immediately upon written notice to such Party. All rights and licenses granted under or pursuant to this License Agreement by Acuitas are, and will otherwise be deemed to be, for purposes of the relevant provisions of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 ("<u>BIA</u>"), including Sections 65.11(7), 65.13(9), 72.1 and 246.1 of the BIA; and the relevant provisions of the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36 ("<u>CCAA</u>"), including Sections 32(6) and 36(8) of the CCAA (the BIA and CCAA being referred to collectively as the "<u>Insolvency Legislation</u>"), a grant of a "right to use" "intellectual property" as used in the Insolvency Legislation. The Parties agree that Scribe and its Affiliates and Sublicensees, as licensees of such rights under this License Agreement, will retain and may fully exercise all of their rights and elections under the Insolvency Legislation subject to the payment of amounts provided

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for herein. Without limiting Scribe's rights under the Insolvency Legislation, if Acuitas becomes insolvent or makes an assignment for the benefit of its creditors or there is filed by or against Acuitas any bankruptcy, receivership, reorganization or similar proceeding pursuant to or under the Insolvency Legislation or otherwise, Scribe will be entitled to a copy of any and all such intellectual property and all embodiments of such intellectual property, and the same, if not already in the possession of Acuitas, will be promptly delivered to Scribe (a) if requested by Scribe, before this License Agreement is rejected, disclaimed, repudiated, rescinded or terminated by or on behalf of Acuitas, within [\*] after Scribe's written request, unless Acuitas, or its trustee or receiver, elects within [\*] to continue to perform all of its obligations under this License Agreement, or (b) forthwith, if requested by Scribe after any rejection, disclaimer, repudiation, rescission or termination of this License Agreement by or on behalf of Acuitas, if not previously delivered as provided under clause (a) above. All rights of the Parties under this Section 9.4 and the relevant intellectual property provisions of the Insolvency Legislation are in addition to and not in substitution of any and all other rights, powers, and remedies that each Party may have under this License Agreement, the Insolvency Legislation, and any other applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Effects of Termination</u>. Upon termination (but not expiration of the Term pursuant to Section 9.1) of this License Agreement for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Cessation of Rights</u>. Except as otherwise expressly provided herein, all rights and licenses granted by Acuitas to Scribe in Section 2.1 will terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sell Off. Notwithstanding the termination of Scribe's licenses and other rights under this License Agreement, Scribe will retain the right to distribute, sell or otherwise dispose of its existing inventory of the Licensed Products, in each case that is intended for distribution, sale or disposition in the Territory, for a period of not more than [\*] following the effective date of the termination, as though this License Agreement had not been terminated, and such distribution, sale or other disposition will not constitute infringement of the Patents or other intellectual property or proprietary rights of Acuitas or its Affiliates. Scribe's right to distribute, sell or otherwise dispose of its existing inventory of the Licensed Products pursuant to this Section 9.5(b) will be subject to Scribe's continuing obligation to pay Royalties with respect to the Net Sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Survival</u>. In addition to the termination consequences set forth in Section 9.5, the following provisions will survive termination or expiration of this License Agreement, as well as any other provision that by its terms or by the context thereof, is intended to survive such termination: Article 1 (to the extent applicable to any other surviving provisions), Article 4, Article 7, Article 10, Sections 2.3(b)(iv) (only upon the circumstances set forth therein), 2.4(d), 3.4(b), 8.3, 8.4, 8.5 and 8.6, the last sentence of Section 9.1 (only upon expiration of the Term), Section 9.4 and this Section 9.6. Termination or expiration of this License Agreement will not relieve the Parties of any liability or obligation which accrued hereunder prior to the effective date of such termination or expiration nor preclude either Party from pursuing all rights and remedies it may have hereunder or at Law or in equity with respect to any breach of this License Agreement nor prejudice either Party's right to obtain performance of any obligation. All other rights and obligations will terminate upon termination or expiration of this License Agreement.

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**ARTICLE 10** 

**<u>General Provisions</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Dispute Resolution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Dispute Procedure</u>. Any dispute, controversy, or claim (together, a "<u>Dispute</u>") arising out of, relating to, or in connection with this Agreement, including with respect to the formation, applicability, breach, termination, validity, or enforceability of this Agreement, will be resolved pursuant to this Section 10.1 (Dispute Resolution), other than (i) disputes regarding issues within the purview of the JDC which will be resolved pursuant to Section 2.2(d) of the Development and Option Agreement; and (ii) disputes that cannot be resolved without an adjudication of the rights or obligations of a Third-Party (other than any Scribe Indemnitees or Acuitas Indemnitees identified in Section 8.6 (Indemnification)), as to which the procedures set forth Sections 10.1(b) (Dispute Escalation) and 10.1(c) (Dispute Resolution by Arbitration) will not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dispute Escalation</u>. In the event of a Dispute between the parties, the Parties shall first attempt to resolve such Dispute amicably. If the Parties are not able to resolve a Dispute amicably, then each Party shall have the right to refer such dispute to Acuitas' Chief Executive Officer and to Scribe's Chief Executive Officer (or his or her designee, who must be a senior executive) (together, the "<u>Executive Officers</u>"), who will attempt in good faith to resolve such dispute by negotiation during a period of [\*]. Any final decision agreed to by such Executive Officers shall be conclusive and binding on the Parties. If such Executive Officers are unable to resolve such Dispute within such [\*] period, then either Party shall be free to commence legal action and seek such remedies as may be available to such Party, consistent with this Section 10.1.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Dispute Resolution by Arbitration</u>. If the Executive Officers are not able to resolve such Dispute as set forth above in Section 10.1(b), either Party may submit the dispute to arbitration for final resolution pursuant to this paragraph. Any such dispute shall be conducted by a tribunal of three arbitrators, in accordance with and pursuant to the Rules of Arbitration of the International Chamber of Commerce ("<u>ICC</u>") in effect at the time of the arbitration, except as they may be modified herein or by mutual agreement of the parties. The seat of the arbitration shall be New York, New York, and it shall be conducted in the English language. The Party that submits the dispute to arbitration (the "<u>claimant</u>") shall nominate an arbitrator in its request for arbitration. The other party (the "<u>respondent</u>") shall nominate an arbitrator within [\*] of the receipt of the request for arbitration. The two arbitrators shall nominate a third arbitrator within [\*] after the nomination of the second arbitrator. The third arbitrator shall act as Chair of the tribunal. If any of the three arbitrators is not nominated within the time prescribed above, then the ICC Court shall appoint that arbitrator. Arbitrators may communicate with Parties or Party representatives on an ex parte basis for the purpose of selecting the chair of the tribunal. Once the three-arbitrator tribunal is convened, no arbitrator or arbitrators may have ex parte communications with any Party or Party representative without the consent of all Parties. The arbitration award shall be final and binding on the Parties. The Parties undertake to carry out any award without delay and waive their right to any form of recourse based on grounds other than those contained in the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, insofar as such waiver can validly be made. Judgment upon the award may be entered by any court having jurisdiction thereof or having jurisdiction over the relevant party or its assets, pursuant to the substantive law of the State of New York without regard to its choice-of-law rules or the choice-of-law rules of any forum that would cause any substantive law other than the law of the State of New York to apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Actions to Enforce a Patent</u>. If the Executive Officers of the Parties are not able to resolve such dispute as set forth above in Section 10.1(b) and that dispute involves an allegation of patent infringement, the Party asserting patent infringement may commence an action to enforce that patent, or the Party accused of infringement may, to the extent permitted by law, commence an action for a declaratory judgment of non-infringement or invalidity in the United States District Court for the District of Delaware, or a proceeding for patent review or reexamination in the United States Patent and Trademark Office for any such disputes within this Section 10.1(d) (Actions to Enforce a Patent) involving one or more United States patents for which such forum has jurisdiction, and each Party hereby consents to the exclusive jurisdiction of such forum, and waives any jurisdictional or venue objections to suit in such forum and any right to seek to transfer such an action out of that forum.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Injunctive Relief</u>. Notwithstanding the dispute resolution procedures set forth in this Section 10.1 (Dispute Resolution), in the event of an actual or threatened breach hereunder, the aggrieved Party may seek equitable relief (including restraining orders, specific performance or other injunctive relief) in any court of competent jurisdiction, without first submitting to any dispute resolution procedures hereunder. Each Party hereby consents to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York and, if that court lacks subject-matter jurisdiction, the New York State Supreme Court, New York County, for any such actions seeking equitable relief and waives any jurisdictional objections to such suit in those courts. Each Party acknowledges that material breach of any of the terms or conditions of this Agreement would cause irreparable harm and damage to the other Party that may not be remediable through money damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Tolling</u>. The Parties agree that all applicable statutes of limitation and time-based defenses (such as estoppel and laches) will be tolled while the dispute resolution procedures set forth in Sections 10.1(a) (Dispute Procedure) and 10.1(b) (Dispute Escalation) are pending, and the Parties will cooperate in taking all actions reasonably necessary to achieve such a result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Prevailing Party</u>. The prevailing Party in any suit or arbitration related to this Agreement commenced under this Section 10.1 will be entitled to recover from the losing Party all reasonable out-of-pocket fees, costs, and expenses (including those of attorneys, professionals and accountants) incurred by the prevailing Party in connection with such arbitration or suit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Cumulative Remedies</u>. All rights and remedies of the Parties hereunder will be cumulative and in addition to all other rights and remedies provided hereunder or available by agreement, in law, in equity, or otherwise.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Relationship of Parties</u>. Nothing in this License Agreement is intended or will be deemed to constitute a partnership, agency, employer-employee or joint venture relationship between the Parties. No Party will incur any debts or make any commitments for the other, except to the extent, if at all, specifically provided therein. There are no express or implied Third-Party beneficiaries hereunder (except for Scribe Indemnitees and Acuitas Indemnitees for purposes of Section 8.6, and Scribe's Sublicensees for purposes of Section 2.3(b)(iv). For clarity, Scribe does not grant to Acuitas any rights or licenses under this License Agreement to any Scribe Technology, Scribe's interest in Joint IP, or any other intellectual property rights of Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Compliance with Law</u>. Each Party will perform or cause to be performed any and all of its obligations or the exercise of any and all of its rights hereunder in good scientific manner and in compliance with all applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Choice of Law</u>. This Agreement will be governed by and construed in accordance with the substantive law of the State of New York without regard to its choice-of-law rules or the choice-of-law rules of any forum that would cause any substantive law other than the law of the State of New York to apply, provided that any dispute relating to the scope, validity, enforceability, or infringement of any Patents will be governed by the substantive Laws of the jurisdiction in which such Patents apply. The Parties agree to exclude the application to this License Agreement of the United Nations Convention on Contracts for the International Sale of Goods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Counterparts; Facsimiles</u>. This License 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. Facsimile or PDF execution and delivery of this License Agreement by either Party will constitute a legal, valid, and binding execution and delivery of this License Agreement by such Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Headings</u>. All headings in this License Agreement are for convenience only and will not affect the meaning of any provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Waiver of Rule of Construction</u>. Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this License Agreement. Accordingly, the rule of construction that any ambiguity in this License Agreement will be construed against the drafting Party will not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>Interpretation</u>. Whenever any provision of this License Agreement uses the term "including" (or "includes"), such term will be deemed to mean "including without limitation" (or "includes without limitation"). "Herein," "hereby," "hereunder," "hereof" and other equivalent words refer to this License Agreement as an entirety and not solely to the particular portion of this License Agreement in which any such word is used. In this License Agreement, the word "or" means "and/or". All definitions set forth herein will be deemed applicable whether the words defined are used herein in the singular or the plural. Unless otherwise provided, all references to Sections and Appendices in this License Agreement are to Sections and Appendices of this License Agreement. References to any Sections include Sections and subsections that are part of the related Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>Binding Effect</u>. This License Agreement will inure to the benefit of and be binding upon the Parties, their Affiliates, and their respective lawful successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <u>Notices</u>. All notices, requests, demands and other communications required or permitted to be given pursuant to this License Agreement will be in writing and will be deemed to have been duly given upon the date of receipt if delivered by hand, email, recognized international overnight courier, or registered or certified mail, return receipt requested, postage prepaid to the following addresses:

---

| | |
|:---|:---|
| If to Scribe: | Scribe Therapeutics Inc. |
|  | [\*] |
| With a copy to: | Scribe Therapeutics Inc. |
|  | [\*] |
| If to Acuitas: | Acuitas Therapeutics Inc. |
|  | [\*] |
| With a copy to: | [\*] |

---

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Either Party may change its designated address by notice to the other Party in the manner provided in this Section 10.11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <u>Amendment and Waiver</u>. This License Agreement may be amended, supplemented, or otherwise modified only by means of a written instrument signed by both Parties; *provided that* any unilateral undertaking or waiver made by one Party in favor of the other will be enforceable if undertaken in a writing signed by the Party to be charged with the undertaking or waiver. Any waiver of any rights or failure to act in a specific instance will relate only to such instance and will not be construed as an agreement to waive any rights or fail to act in any other instance, whether or not similar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <u>Severability</u>. In the event that any provision of this License Agreement will, for any reason, be held to be invalid or unenforceable in any respect, such invalidity or unenforceability will not affect any other provision hereof, and the Parties will negotiate in good faith to modify the License Agreement to preserve (to the extent possible) their original intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 <u>Entire Agreement</u>. This License Agreement (including all appendices and exhibits hereto and thereto) and the Development and Option Agreement are the sole agreements with respect to the subject matter hereof and thereof and supersede all other agreements and understandings between the Parties with respect to same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 <u>Force Majeure</u>. Neither Party will be liable for failure of or delay in performing obligations set forth in this License Agreement (other than any obligation to pay monies when due), and neither will be deemed in breach of such obligations, if such failure or delay is due to natural disasters or any causes reasonably beyond the control of such Party; *provided*, that the Party affected will promptly notify the other of the force majeure condition and will exert reasonable efforts to eliminate, cure or overcome any such causes and to resume performance of its obligations as soon as possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16 <u>Further Assurances</u>. Each Party will take all customary and reasonable actions and do all things reasonably necessary or proper, including under applicable Law, to make effective and further the intents and purposes of the transactions contemplated by this License Agreement, including executing any further instruments reasonably requested by the other Party.

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------

**WITNESS WHEREOF**, the Parties have caused this Non-Exclusive License Agreement to be executed by their respective duly authorized officers as of the License Agreement Effective Date.

---

| |
|:---|
| **ACUITAS THERAPEUTICS, INC.** |
| By: |
| (Signature) |
| Name: |
| Title: |
| Date: |
| **SCRIBE THERAPEUTICS INC.** |
| By: |
| (Signature) |
| Name: |
| Title: |
| Date: |

---

------

**<u>APPENDIX 1.43</u>**

[Intentionally omitted]

------

**<u>APPENDIX 1.44</u>**

[Intentionally omitted]

------

**<u>APPENDIX 2.3</u>**

[Intentionally omitted]

------

**<u>APPENDIX 8.2</u>**

[Intentionally omitted]

------

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO SCRIBE THERAPEUTICS INC. IF PUBLICLY DISCLOSED.** 

March 4th, 2025

Dear Dr. Benjamin Oakes,

**Re: Development and Option Agreement dated November 7, 2022 (the "D&O Agreement") by and between Scribe Therapeutics Inc., a Delaware corporation ("<u>Scribe</u>") and Acuitas Therapeutics, Inc., a British Columbia corporation ("Acuitas") and Non-Exclusive License Agreement dated December 11, 2023 (the "NELA") between Scribe and Acuitas.** 

This letter agreement ("<u>Letter Agreement</u>") is to set forth certain understandings between Scribe and Acuitas (each, a "<u>Party</u>" and collectively, the "<u>Parties</u>") with respect to the D&O Agreement and NELA. Capitalized terms used but not defined herein shall have the definition provided in the D&O Agreement and NELA.

In consideration of the covenants and agreements contained in this Letter Agreement and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Scribe and Acuitas agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Technology Access Fee Section 3.4(e) of the D&O.** [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **License Maintenance Fee Exhibit 5.1(c) of the D&O Agreement and Section 3.1 of the NELA.** [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Milestones. Exhibit 5.2(c) of the D&O Agreement and Section 3.2 of the NELA.** Table 3.2 of Exhibit 5.2(c) of the D&O Agreement and Table 3.2 of the NELA are hereby amended and replaced by Table 3.2 below.

**Table 3.2– Milestone Events** 

---

| | |
|:---|:---|
| *Milestone Event* | *Milestone Payment* |
|  [\*] | [\*] |
|  [\*] | [\*] |
|  [\*] | [\*] |
|  [\*] | [\*] |

---

------

---

| | |
|:---|:---|
| *Milestone Event* | *Milestone Payment* |
|  [\*] | [\*] |
|  [\*] | [\*] |
|  [\*] | [\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Exercise of Option to Extend Term of the D&O Agreement.** In accordance with Section 9.1 of the
D&O Agreement, Scribe hereby elects to extend the Term of the D&O Agreement by an additional [\*] such that the Term of the D&O Agreement, unless terminated earlier in accordance with Sections 9.2, 9.3 or 9.4 thereof, will expire on
November 7, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Research Study**. Scribe and Acuitas hereby agree to engage in a collaborative research study as described
on Appendix A hereto (the "Research Study"). Scribe and Acuitas will each use reasonable efforts to conduct the Research Study in accordance with their respective responsibilities and the Research Study budget and timeline set forth in
Appendix A hereto. Each of Scribe and Acuitas will bear its own costs to conduct the Research Study. All data generated in the conduct of the Research Study ("Research Data") will be jointly owned by Scribe and Acuitas and each Party
will be allowed to use such data for research and development purposes. For clarity, Research Data includes raw data generated during the Research Study, as well as relevant correspondence with Contract Research Organizations. The Research Data will
be confidential information of both Scribe and Acuitas, provided that Scribe and Acuitas will be permitted to disclose Research Data to third parties, in each case solely in an anonymized form. Any Technology that is first discovered, created,
conceived, developed or reduced to practice in the conduct of the Research Study will be treated as Joint Technology in accordance with Article 6 of the D&O Agreement. Acuitas shall cause any third-party provider engaged to perform the Research
Study to assign any right and title to any such Technology to Scribe and Acuitas under terms reasonably acceptable to Scribe. It is understood that Scribe's agreement to conduct the Research Study on the terms set forth herein is the
consideration for Sections 1, 2 and 3 of this Letter Agreement and in case of a material breach by Scribe of its obligation to perform the Research Study under this Section 5, which breach is not cured within thirty (30) days of receiving
written notice thereof from Acuitas, Acuitas may, upon written notice to Scribe, terminate Sections 1, 2 and 3 of this Letter Agreement. Scribe and Acuitas acknowledge and agree that, notwithstanding anything to the contrary, in no event shall a
breach of this Section 5 by a Party provide any basis for the other Party to terminate the D&O Agreement or NELA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **General Terms**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. *Effect on D&O Agreement and NELA*. Except as expressly set forth herein, all other provisions of the
D&O Agreement and NELA will remain in full force and effect. In the event of any conflict between this Letter Agreement and the D&O Agreement or NELA with respect to the matters contemplated by this Letter Agreement, this Letter Agreement
will control.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. *Further Actions*. Each Party shall take all customary and reasonable actions and do all things reasonably
necessary or proper, including under applicable law, to make effective and further the intents and purposes of Article 5 of this Letter Agreement, including executing any further instruments reasonably requested by the other Party, in accordance
with the terms of this Agreement (e.g., in the case of both Parties, to effect the joint ownership provision set forth in Article 5, or in the case of Scribe, for Scribe to authorize the applicable CRO to analyze samples in performance of the
Research Study, or in the case of Acuitas, for Acuitas to engage the relevant CROs under terms reasonably acceptable to Scribe).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. *Headings*. All headings in this Letter Agreement are for convenience only and will not affect the meaning
of any provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. *Governing Law*. This Letter Agreement will be governed by and construed in accordance with the State of
New York without regard to its choice-of-law rules or the choice-of-law rules of any
forum that would cause any substantive law other than the law of the State of New York to apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. *Severability*. If any provision of this Letter Agreement will, for any reason, be held to be invalid or
unenforceable in any respect, such invalidity or unenforceability will not affect any other provision hereof (or the D&O Agreement or NELA), and the Parties will negotiate in good faith to modify the Letter Agreement to preserve (to the extent
possible) its original intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. *Counterparts.* This Letter 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. PDF execution and delivery of this Letter Agreement by either Party will constitute a legal, valid and binding execution and delivery of this Letter
Agreement by such Party

------

Please acknowledge your agreement with the foregoing by countersigning this Letter Agreement and returning a countersigned copy hereof to [\*].

---

| | |
|:---|:---|
| Sincerely yours, | Sincerely yours, |
| **Acuitas Therapeutics, Inc.** | **Acuitas Therapeutics, Inc.** |
| By: | /s/ T. D. Madden |
| Name: | Thomas D. Madden, Ph.D |
| Title: | President & CEO |

---

---

| | |
|:---|:---|
| *The foregoing is hereby agreed to and accepted:* | *The foregoing is hereby agreed to and accepted:* |
| **Scribe Therapeutics, Inc.** | **Scribe Therapeutics, Inc.** |
| By: | /s/ Benjamin Oakes |
| Name: | Benjamin Oakes, Ph.D |
| Title: | President and CEO |

---

------

**Appendix A** 

Research Study

[\*]

## Exhibit 10.10

**Exhibit 10.10** 

EXECUTION VERSION

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO SCRIBE THERAPEUTICS INC. IF PUBLICLY DISCLOSED.** 

**LICENSE AND COLLABORATION AGREEMENT** 

**between** 

**SCRIBE THERAPEUTICS INC.** 

**and** 

**PREVAIL THERAPEUTICS, INC.** 

**Dated as of May 11, 2023** 

------

EXECUTION VERSION

**<u>**TABLE OF CONTENTS**</u>**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  ARTICLE 1 DEFINITIONS | ARTICLE 1 DEFINITIONS | 1 |
|  ARTICLE 2 RESEARCH PROGRAM | ARTICLE 2 RESEARCH PROGRAM | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. | Overview | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. | Research Program Responsibilities | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. | Research Plans | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. | Preparation and Amendment of Research Plans | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. | Lead Molecule Selection | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. | Candidate Selection | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. | Novel Approaches to Licensed Products | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. | Funding | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. | Exchange of Materials; Research Program Records; Reporting | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. | Joint Steering Committee | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. | JSC Subcommittees | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12. | Alliance Managers | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13. | Functions and Powers of the JSC | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14. | Decisions | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15. | Certain Standards Applicable to Work | 25 |
|  ARTICLE 3 TARGETS | ARTICLE 3 TARGETS | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. | Initial Targets; Additional Targets | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. | Replacement Targets | 26 |
|  ARTICLE 4 DEVELOPMENT AND COMMERCIALIZATION | ARTICLE 4 DEVELOPMENT AND COMMERCIALIZATION | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. | Prevail Sole Right and Responsibility | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. | Diligence | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. | Prevail Regulatory Control | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. | Reports | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. | Adverse Event Database | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. | Subcontracting | 28 |
|  ARTICLE 5 COST-SHARING OPTION; CO-FUNDED PRODUCTS | ARTICLE 5 COST-SHARING OPTION; CO-FUNDED PRODUCTS | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. | Grant of Cost-Sharing Option | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. | Exercise of Cost-Sharing Option | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. | Cost-Sharing Option Discussion; Cost-Sharing Option Effective Date | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. | [\*] | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. | Progress; Amendments | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. | Compliance with Budgets | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. | Deferred Development Costs | 29 |

---

i

------

EXECUTION VERSION

**TABLE OF CONTENTS** 

**(continued)** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8. | Cost-Sharing Opt-Out | 30 |
|  ARTICLE 6 LICENSE RIGHTS | ARTICLE 6 LICENSE RIGHTS | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. | Exclusive License Grants to Prevail | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. | Non-Exclusive License Grants to Prevail | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. | Non-Exclusive License Grant to Scribe | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. | Right to Combine | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. | Prevail Covenant; [\*] | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. | Sublicenses | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. | No Implied Rights | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. | Safe Harbor Research | 31 |
|  ARTICLE 7 EXCLUSIVITY | ARTICLE 7 EXCLUSIVITY | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. | Scribe Exclusivity Obligations | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. | [\*] | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. | [\*] | 31 |
|  ARTICLE 8 FEES, ROYALTIES, & PAYMENTS | ARTICLE 8 FEES, ROYALTIES, & PAYMENTS | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. | Upfront Payment | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. | Investment | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. | Milestone Events and Payments | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. | Royalties | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. | Calculation and Payment of Expense and Margin Sharing | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6. | Late Payments | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7. | [\*] | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8. | Taxes on Income | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9. | Tax Withholding | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10. | Tax Cooperation | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11. | Financial Records | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12. | Audits | 37 |
|  ARTICLE 9 INTELLECTUAL PROPERTY | ARTICLE 9 INTELLECTUAL PROPERTY | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. | In General | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. | Exceptions | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. | United States Law | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. | Assignment Obligation | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. | Inventor's Remuneration | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6. | Independent Development | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7. | [\*] | 40 |

---

ii

------

EXECUTION VERSION

**TABLE OF CONTENTS** 

**(continued)** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8. | Other Scribe-Licensed Technology | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9. | Patent Prosecution and Maintenance | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10. | Infringement or Misappropriation by Third Parties | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11. | Defense and Settlement of Third Party Claims | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12. | Patent Extension | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13. | CREATE Act | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14. | Trademarks | 44 |
|  ARTICLE 10 REPRESENTATIONS, WARRANTIES AND COVENANTS | ARTICLE 10 REPRESENTATIONS, WARRANTIES AND COVENANTS | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. | Mutual Representations and Warranties | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. | Scribe Representations and Warranties | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. | Mutual Covenants | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. | Compliance | 47 |
|  ARTICLE 11 INDEMNIFICATION | ARTICLE 11 INDEMNIFICATION | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. | Indemnity | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. | Insurance | 51 |
|  ARTICLE 12 CONFIDENTIALITY | ARTICLE 12 CONFIDENTIALITY | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. | Confidential Proprietary Information | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. | Public Domain Information and Residual Knowledge | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. | Disclosure of Agreement | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. | Survival | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. | Publicity | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. | Publication | 55 |
|  ARTICLE 13 TERM & TERMINATION | ARTICLE 13 TERM & TERMINATION | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. | Term | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. | Termination for Material Breach | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. | Termination by Prevail | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4. | Termination by Scribe | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5. | Effects of Termination | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6. | Survival | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7. | Bankruptcy Code | 58 |
|  ARTICLE 14 GOVERNING LAW; DISPUTE RESOLUTION | ARTICLE 14 GOVERNING LAW; DISPUTE RESOLUTION | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. | Governing Law | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. | Disputes | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. | Litigation; Equitable Relief | 59 |

---

iii

------

EXECUTION VERSION

**TABLE OF CONTENTS** 

**(continued)** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  ARTICLE 15 MISCELLANEOUS | ARTICLE 15 MISCELLANEOUS | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. | Entire Agreement; Amendment | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. | Limitation of Liability | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. | Independent Contractors | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. | Notice | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. | Severability | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6. | Non-Use of Names | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7. | Assignment | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.8. | Scribe Change of Control | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9. | Waivers | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10. | Force Majeure | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.11. | Interpretation | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.12. | Counterparts; Electronic Signatures | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.13. | Expenses | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.14. | Further Assurances | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.15. | No Third Party Beneficiary Rights | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.16. | Construction | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.17. | Cumulative Remedies | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.18. | Extension to Affiliates | 63 |

---

iv

------

EXECUTION VERSION

**LICENSE AND COLLABORATION AGREEMENT** 

This License and Collaboration Agreement (this "**Agreement**") is made and entered into as of May 11, 2023 (the "**Effective Date**") by and between Scribe Therapeutics Inc. ("**Scribe**"), and Prevail Therapeutics, Inc., a Delaware corporation ("**Prevail**"). Scribe and Prevail are sometimes referred to herein individually as a "**Party**" and collectively as the "**Parties**."

**RECITALS** 

**WHEREAS**, Scribe owns and controls certain intellectual property rights with respect to CasX-based gene editing technologies;

**WHEREAS**, Prevail and its Affiliates have expertise in the research, development, manufacturing and commercialization of pharmaceutical products;

**WHEREAS**, the Parties wish to collaborate on certain activities aimed at research and development of Licensed Products (defined below) in accordance with the terms set forth below; and

**WHEREAS**, Scribe wishes to grant to Prevail, and Prevail wishes to obtain, exclusive licenses under certain of Scribe's intellectual property rights to Exploit Licensed Products, in accordance with the terms and conditions set forth below.

**NOW, THEREFORE**, in consideration of the premises and the mutual promises and conditions set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

**ARTICLE 1** 

**DEFINITIONS** 

Unless otherwise specifically provided herein, the following terms shall have the meanings set forth in this <u>Article 1</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.** "**Accounting Standards**" means, with respect to a Party or any of its Affiliates or its or their Sublicensees, United States Generally Accepted Accounting Principles **(**"**U.S. GAAP**"), consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.** "**Acquirer**" has the meaning set forth in <u>Section</u> <u>1.18</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.** "**Additional Target**" has the meaning set forth in <u>Section</u> <u>3.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.** "**Additional Target Effective Date**" has the meaning set forth in <u>Section</u> <u>3.1</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5.** "**Affiliate**" means, with respect to any Person, any entity that, at the relevant time (whether as of the Effective Date or thereafter), directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Person, for so long as such control exists. As used in this <u>Section</u> <u>1.5</u>, "control" means: (a) to possess, directly or indirectly, the power to direct or cause the direction of the management or policies of an entity, whether through ownership of voting securities or by contract relating to voting rights or corporate governance; or (b) direct or indirect ownership of fifty percent (50%) (or such lesser percentage that is the maximum allowed to be owned by a foreign entity in a particular jurisdiction) or more of the voting share capital or other equity interest in such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6.** "**Alliance Manager**" has the meaning set forth in <u>Section</u> <u>2.12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7.** "**Applicable Laws**" means the applicable provisions of any and all federal, national, supranational, regional, state and local laws, treaties, statutes, rules, regulations, guidelines or requirements, administrative codes, guidance, ordinances, judgments, decrees, directives, injunctions, orders, or permits of or from any court, arbitrator, Regulatory Authority, Governmental Authority, taxing authority, national securities exchange or exchange listing organization having jurisdiction over or related to the relevant subject item that may be in effect from time to time during the Term, including data protection and privacy laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8.** "**Background IP**" means the Prevail Background IP and the Scribe Platform IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9.** "**Bayh-Dole Act**" has the meaning set forth in <u>Section</u> <u>10.2.9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10.** "**Biosimilar Application**" has the meaning set forth in <u>Section</u> <u>9.10.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11.** "**BLA**" means a Biologics License Application as described in 21 C.F.R. 601.2 or an equivalent application in any other applicable jurisdiction in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12.** "**Business Day**" means any day, other than any Saturday, Sunday, or any day that banks are authorized or required to be closed in Indianapolis, Indiana, New York, New York or San Francisco, California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.13.** "**Calendar Quarter**" means each respective period of three (3) consecutive months ending on March 31, June 30, September 30, and December 31 of any calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.14.** "**Candidate**" has the meaning set forth in <u>Section</u> <u>2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.15.** "**Candidate Selection**" has the meaning set forth in <u>Section</u> <u>2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.16.** "**Candidate Selection Critical Success Factors**" has the meaning set forth in <u>Section</u> <u>2.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.17.** "**CasX Editor**" means a CRISPR-based gene editor comprising a [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.18.** "**Change of Control**" means, with respect to either Party: (a) the acquisition by a Third Party, in one transaction or a series of related transactions, of direct or indirect beneficial ownership of more than fifty percent (50%) of the outstanding voting equity securities of such Party; (b) a merger or consolidation involving such Party, as a result of which a Third Party acquires direct or indirect beneficial ownership of more than fifty percent (50%) of the voting power of the surviving entity immediately after such merger, reorganization or consolidation; or

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(c) a sale of all or substantially all of the assets of such Party in one transaction or a series of related transactions to a Third Party; (d) the acquisition of majority control of the board of directors or equivalent governing body of such Party; (e) the acquisition of the ability to cause the direction of the management or allocation of corporate resources of such Party; or (f) the acquisition of all or substantially all of the assets of such Party related to the transactions contemplated by this Agreement;. The acquiring or combining Third Party in any of (a)-(f), and any of such Third Party's Affiliates (whether in existence as of or at any time following the applicable transaction, but other than the acquired Party and its Affiliates as in existence prior to the applicable transaction or Affiliates the acquired Party controls after the applicable transaction) are referred to collectively herein as the "**Acquirer**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.19.** "**Claim**" has the meaning set forth in <u>Section</u> <u>11.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.20.** "**CMO**" means Contract Manufacturing Organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.21.** "**Clinical Trial**" means any human clinical trial of a pharmaceutical product including for clarity any post-Regulatory Approval clinical trial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.22.** "**Co-Funded Product**" means, during the Cost-Sharing Term, a Licensed Product Directed To [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.23.** "**Co-Funding Development and Commercialization Package**" has the meaning set forth in <u>Section</u> <u>4.4.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.24.** "**Co-Funding Development and Commercialization Plan**" has the meaning set forth in <u>Section</u> <u>4.4.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.25.** "**Code**" has the meaning set forth in <u>Section</u> <u>13.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.26.** "**Co-Funded Product Sharing Amounts**" has the meaning set forth in <u>Section</u> <u>8.5.5(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.27.** "**Combination Licensed Product**" has the meaning set forth in <u>Section</u> <u>1.116</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.28.** "**Commercial Milestone Event**" has the meaning set forth in <u>Section</u> <u>8.3.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.29.** "**Commercial Milestone Payment**" has the meaning set forth in <u>Section</u> <u>8.3.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.30.** "**Commercialization**" means any and all activities related to the preparation for sale of, offering for sale of, or sale of a Licensed Product, including activities related to marketing, promoting, distributing, importing, pricing and recording sales of such Licensed Product. When used as a verb, "**to Commercialize**" and "**Commercializing**" mean to engage in Commercialization, and "**Commercialized**" has a corresponding meaning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.31.** "**Commercially Reasonable Efforts**" of a Party means that level of efforts and resources commonly applied by such Party to carry out a particular task or obligation consistent with the general practice followed by such Party relating to other pharmaceutical compounds, products or therapies owned by it, or to which it has exclusive rights, [\*]. For clarity, "Commercially Reasonable Efforts" shall be determined on an indication-by-indication, product-by-product, and country-by-country basis within the Territory, and it is anticipated that the level of effort for different indications, products and countries may differ and may change over time, reflecting changes in the status of the compound, product or therapy and the indications and country(ies) involved.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.32.** "**Confidential Proprietary Information**" has the meaning set forth in <u>Section</u> <u>12.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.33.** "**Control**" means, with respect to any Know-How, Regulatory Documentation, material, Patent, or other intellectual property right, possession of the right, whether directly or indirectly and whether by ownership, license, or otherwise (other than by any license granted under this Agreement), to grant a license, sublicense, or other right to or under such Know-How, Regulatory Documentation, material, Patent, or other intellectual property right as provided for herein without violating the terms of any agreement with any Third Party. Notwithstanding the foregoing, Scribe will be deemed to "Control" any Know-How, Regulatory Documentation, material, Patent or other intellectual property rights that do not constitute Enabling Technology by reason of (a) a Scribe Future In-License unless and until Prevail provides notice under <u>Section</u> <u>9.8</u> electing to receive a sublicense under such Scribe Future In-License; or (b) no Know-How, Regulatory Documentation, material, Patent or other intellectual property rights arising under an agreement set forth on <u>Exhibit 1.33(b)</u> shall be deemed Controlled by Scribe absent the Parties' mutual written agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.34.** "**Cost-Sharing Option**" has the meaning set forth in <u>Section</u> <u>5.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.35.** "**Cost-Sharing Option Effective Date**" has the meaning set forth in <u>Section</u> <u>5.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.36.** "**Cost-Sharing Option Targets**" has the meaning set forth in <u>Section</u> <u>5.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.37.** "**Cost-Sharing Requirements**" means that, at the time of Scribe's delivery of the notice described in <u>Section</u> <u>5.2</u>, Scribe [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.38.** "**Cost-Sharing Requirements Dispute**" has the meaning set forth in <u>Section</u> <u>5.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.39.** "**Cost-Sharing Term**" means, with respect to the Co-Funded Product(s), [\*], the period beginning on the Cost-Sharing Option Effective Date and ending upon the earliest to occur of: (a) [\*]; (b) [\*]; and (c) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.40.** "**Cost-Sharing Termination for Deficiency**" has the meaning set forth in <u>Section</u> <u>5.4</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.41.** "**Cover**" means, with respect to a claim of a Patent and a relevant Licensed Product, that such claim would be infringed, absent a license, by the Exploitation of such Licensed Product (considering claims of patent applications to be issued as then pending).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.42.** "**Deferred Development Costs**" has the meaning set forth in <u>Section</u> <u>5.7</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.43.** "**Development**" or "**Develop**" means any and all activities directed to the non-clinical and clinical drug development activities that are necessary or useful to obtain Regulatory Approval for a Candidate, Licensed Product, or other compound, product or therapy, including design and conduct of pre-BLA approval clinical trials and the preparation and filing of Regulatory Filings and all regulatory affairs related to the foregoing. When used as a verb, "Developing" means to engage in Development and "Developed" has a corresponding meaning. For clarity, "Development" shall not include any Commercialization activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.44.** "**Development Costs**" means, with respect to a Co-Funded Product (or components thereof), to the extent such costs are calculated in accordance with Accounting Standards and incurred by a Party during the Cost-Sharing Term, the following worldwide costs associated with Research and Development activities pertaining to the Co-Funded Product (or components thereof), or with obtaining, maintaining and renewing Regulatory Filings and Regulatory Approvals pertaining to the Co-Funded Product (or components thereof):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(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;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** [\*]; 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;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** [\*].

All such foregoing costs to the extent incurred during the Cost-Sharing Term by a Party or such Party's Affiliates in the conduct of activities with respect to a Co-Funded Product (including the carrying out of any Research and Development activities and the conduct of any Clinical Trial) shall be included in such Party's Development Costs. For clarity, amounts incurred to support the obtaining or maintenance of Regulatory Approval solely [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.45.** "**Directed To**" means, with respect to a Licensed Target, any product containing [\*]. For these purposes, without limiting the foregoing, any product that includes reference to [\*] will be considered Directed To such Licensed Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.46.** "**Disclosing Party**" has the meaning set forth in <u>Section</u> <u>12.1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.47.** "**Dispute**" has the meaning set forth in <u>Section</u> <u>14.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.48.** "**Divestiture**" has the meaning set forth in <u>Section</u> <u>7.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.49.** "**Eli Lilly and Company Animal Care and Use Requirements for Animal Researchers and Suppliers**" has the meaning set forth in <u>Section</u> <u>2.15</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.50.** "**Eli Lilly and Company Good Research Practices**" has the meaning set forth in Section <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.51.** "**Enable**" has the meaning set forth in <u>Section</u> <u>7.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.52.** "**Enabling Technology**" means [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.53.** "**Escalation**" has the meaning set forth in <u>Section</u> <u>14.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.54.** "**EU5**" means any or all of the United Kingdom, France, Germany, Spain and Italy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.55.** "**Exclusivity Expiration Date**" has the meaning set forth in <u>Section</u> <u>7.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.56.** "**Exclusivity Period**" has the meaning set forth in <u>Section</u> <u>7.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.57.** "**Existing Patents**" has the meaning set forth in <u>Section</u> <u>10.2.4(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.58.** "**Expense and Margin Sharing**" has the meaning set forth in <u>Section</u> <u>8.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.59. "Exploit**" means to make, have made, use, have used, import, sell, and offer for sale, including to Research, Develop, Manufacture, and Commercialize. "**Exploitation**" means the act of Exploiting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.60.** "**Field**" means the diagnosis, prevention and treatment of any and all diseases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.61.** "**Firewalls**" means effective walls and screens established between Scribe, on the one hand, and on the other hand, an Acquirer of Scribe which has a Similar Program, to ensure that no non-public information, materials (such as [\*]) or non-personnel resources directly relating to [\*], or any non-public information, materials or non-personnel resources relating to [\*] during the Firewall Period. For purposes of this definition, "Firewalls" shall include, during the Firewall Period, as necessary to satisfy this definition: (a) walls and screens (whether technical or physical) between (i) [\*] and (ii) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.62.** "**Firewall Event**" has the meaning set forth in <u>Section</u> <u>15.8.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.63.** "**Firewall Period**" means, with respect to a Similar Program of an Acquirer of Scribe, the period commencing on the applicable Firewall Event and ending upon the Divestiture of the Similar Program by such Acquirer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.64.** "**First Commercial Sale**" means the first invoice for commercial quantities of any Licensed Product sold to a Third Party by Prevail, its Affiliates or Sublicensees in any country after receipt of all Regulatory Approvals for such Licensed Product in such country. Supply for nominal consideration solely for test marketing, sampling and promotional uses, clinical trial purposes or compassionate or similar uses shall not be considered to constitute a First Commercial Sale.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.65.** "**FTE**" means the equivalent of a full-time employee's work performing Research, Development or Commercialization activities under this Agreement which is [\*]. If any such individual works partially on Research, Development or Commercialization activities under this Agreement and partially on other work in [\*], then the "FTE" to be attributed to such individual's work hereunder shall be calculated based upon the percentage of such individual's total work time in such [\*] that such individual spent conducting Research, Development or Commercialization activities under this Agreement [\*], applied consistently throughout [\*]. Overtime, and work on weekends, holidays and the like will not be counted with any multiplier (e.g., time-and-a-half or double time) toward the number of hours that are used to calculate the FTE contribution. For clarity, no individual person can ever constitute more than a single FTE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.66.** "**FTE Rate**" means the rate of FTE costs incurred by a Party, which for the purposes of this Agreement is deemed to be [\*] and which shall be increased (or decreased) [\*] by [\*]. The FTE Rate includes [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.67.** "**Further Market Erosion**" has the meaning set forth in <u>Section</u> <u>8.4.2(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.68.** "**Generate**" means to generate, conceive, create, develop, or discover. "**Generation**" and "**Generated**" have corresponding meanings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.69.** "**Generic/Biosimilar Equivalent**" means, with reference to a Licensed Product, and on a Licensed Product-by-Licensed Product and country-by-country basis, any product (including a "generic product," "biogeneric," "follow-on biologic," "follow-on biological product," "follow-on protein product," "follow-on gene therapy product", "similar biological medicinal product," or "biosimilar product") approved by way of an abbreviated regulatory mechanism by the relevant Regulatory Authority in a country in reference to such Licensed Product, that in each case: (a) is sold in the same country (or is commercially available in the same country) as such Licensed Product by any Third Party that is not a Sublicensee of Prevail or its Affiliates; and (b) either (i) contains an active ingredient that is highly similar to and has no clinically meaningful differences from the Licensed Product, or (ii) meets the equivalency determination by the applicable Regulatory Authority in such country (including a determination that the product is "comparable," "interchangeable," "bioequivalent," "biosimilar" or other term of similar meaning, with respect to the Licensed Product), in each case, as is necessary to permit substitution of such product for the Licensed Product under Applicable Law in such country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.70.** "**GLP Toxicology Study**" means a toxicology study of a product in an animal species that is: (a) conducted in compliance with the then-current GLP; and (b) designed to support the filing of an IND for such product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.71.** "**Good Clinical Practices**" or "**GCPs**" means all applicable current Good Clinical Practice standards for the design, conduct, performance, monitoring, auditing, recording, analyses and reporting of Clinical Trials, including, as applicable, (a) as set forth in the International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use ("**ICH**") E6 and any other guidelines for good clinical practice for trials on medicinal products in the Territory, (b) the Declaration of Helsinki (2004) as last amended at the 52nd World Medical Association in October 2000 and any further amendments or clarifications thereto, (c) U.S. Code of Federal Regulations Title 21, Parts 50, 54, 56, 312 and 314, as may be amended from time to time, and (d) the equivalent Applicable Laws in any relevant country, each as may be amended and applicable from time to time and in each case, that provide for, among other things, assurance that the clinical data and reported results are credible and accurate and protect the rights, integrity, and confidentiality of trial subjects.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.72.** "**Good Laboratory Practices**" or "**GLPs**" means the applicable then-current standards for laboratory activities for pharmaceuticals, as set forth in the FDA's Good Laboratory Practice regulations as defined in 21 C.F.R. Part 58, the Council Directive 87/18/EEC, as amended, the principles for Good Laboratory Practice and/or the Good Laboratory Practice principles of the Organization for Economic Co-Operation and Development ("**OECD**"), and such standards of good laboratory practice as are required by the European Union and other organizations and governmental agencies in countries in which a Licensed Product is Developed, to the extent such standards are not less stringent than United States Good Laboratory Practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.73.** "**Good Manufacturing Practices**" or "**GMPs**" means the current Good Manufacturing Practices including, as applicable, (a) the principles detailed in the U.S. Current Good Manufacturing Practices, 21 C.F.R. Parts 4, 210, 211, 601, 610 and 820, (b) European Directive 2003/94/EC and Eudralex 4, (c) the principles detailed in the WHO TRS 986 Annex 2, TRS 961 Annex 6, TRS 957 Annex 2 and TRS 999 Annex 2, (d) ICH Q7 guidelines, and (e) the equivalent Applicable Laws in any relevant country, each as may be amended and applicable from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.74.** "**Governmental Authority**" means any national, international, federal, state, provincial or local government, or political subdivision thereof, or any multinational organization or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, and any court or tribunal (or any department, bureau or division thereof, or any governmental arbitrator or arbitral body).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.75.** "**Government Official**" has the meaning set forth in <u>Section</u> <u>10.4.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.76.** "**Gross Margin Share**" has the meaning set forth in <u>Section</u> <u>8.5.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.77.** "**HHMI**" has the meaning set forth in <u>Section</u> <u>6.1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.78.** "**Improvement**" means any modification, enhancement, improvement or derivative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.79.** "**IND**" means: (a) an investigational new drug application filed with the FDA for authorization to commence Clinical Trials and its equivalent in other countries or regulatory jurisdictions (an "**IND Filing**"); and (b) all supplements and amendments that may be filed with respect to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.80.** "**Infringement**" has the meaning set forth in <u>Section</u> <u>9.10.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.81.** "**Initiation**" shall mean (a) [\*]; and (b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.82.** "**Internal Compliance Codes**" has the meaning set forth in <u>Section</u> <u>10.4.4</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.83.** "**Internal Qualified Expenses**" means any expenses incurred or accrued by a Party in the performance of activities related to the Development (including activities related to efforts to submit Regulatory Filings) or Commercialization of a Licensed Product, with personnel costs charged on a FTE Rate basis unless otherwise mutually agreed by the Parties; *<u>provided</u>* that managerial, secretarial, clerical and administrative activities shall not be included within Internal Qualified Expenses; and no Internal Qualified Expense will be counted multiple times in Development Costs or U.S. Eligible Costs, as applicable. As used in this definition, the term "managerial" shall mean activities performed by individuals who are not directly overseeing individuals performing activities under this Agreement (e.g., "managerial" activities include activities performed by individuals overseeing those that directly oversee individuals performing activities under this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.84.** "**Indemnitee**" has the meaning set forth in <u>Section</u> <u>11.1.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.85.** "**Indemnitor**" has the meaning set forth in <u>Section</u> <u>11.1.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.86.** "**IND-Enabling Studies**" means studies that are conducted to meet the requirements for filing an IND with a Regulatory Authority, including ADME (absorption, distribution, metabolism, and excretion) studies, GLP Toxicology Studies, pharmacology studies in animal models, studies required for the preparation of the CMC section of such IND, including studies relating to analytical methods and purity analysis, and formulation and Manufacturing development studies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.87.** "**Initial Targets**" shall mean the following Targets: [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.88.** "**Intellectual Property Rights**" means any and all proprietary rights provided under: (a) patent law, including any Patents; (b) trademark law; (c) copyright law; or (d) any other applicable statutory provision or common law principle, including trade secret law, which may provide a right in ideas, formulae, algorithms, concepts, inventions (whether or not patentable), or Know-How, or the expression or use thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.89.** "**Inventions**" means all Know-How and inventions, whether or not patentable, including all rights, title and interest in and to the Intellectual Property Rights in all of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.90.** "**IRA Impact**" means, when both of the following have occurred: (a) [\*] and (b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.91.** "**JCC**" has the meaning set forth in <u>Section</u> <u>5.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.92.** "**JDC**" has the meaning set forth in <u>Section</u> <u>5.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.93.** "**Joint IP**" has the meaning set forth in <u>Section</u> <u>9.1.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.94.** "**Joint Know-How**" has the meaning set forth in <u>Section</u> <u>9.1.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.95.** "**Joint Patents**" has the meaning set forth in <u>Section</u> <u>9.1.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.96.** "**JSC**" has the meaning set forth in <u>Section</u> <u>2.10</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.97.** "**JSC Subcommittee**" has the meaning set forth in <u>Section</u> <u>2.11.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.98.** "**Know-How**" means any proprietary scientific or technical information, inventions, discoveries, results and data of any type whatsoever, in any tangible or intangible form, including inventions, discoveries, databases, safety information, practices, methods, instructions, techniques, processes, drawings, documentation, specifications, formulations, formulae, knowledge, know-how, trade secrets, materials, skill, experience, test data and other information and technology applicable to formulations, compositions or products or to their manufacture, development, registration, use, marketing or sale or to methods of assaying or testing them, including pharmacological, pharmaceutical, medicinal chemistry, biological, chemical, biochemical, toxicological and clinical test data, physical and analytical, safety, quality control data, manufacturing, and stability data, studies and procedures, and manufacturing process and development information, results and data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.99.** "**Launch**" means, with respect to a Licensed Product in any country in the Territory, the date of First Commercial Sale in such country for end use or consumption of such Licensed Product. "**Launched**" when used as an adjective shall have its correlative meaning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.100.** "**Lead Molecule**" has the meaning set forth in <u>Section</u> <u>2.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.101.** "**Lead Molecule Critical Success Factors**" has the meaning set forth in Section <u>2.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.102.** "**Lead Molecule Selection**" has the meaning set forth in <u>Section</u> <u>2.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.103.** "**Licensed Know-How**" means all Know-How Controlled by Scribe (whether prior to the Effective Date or during the Term) that is necessary or useful for the Exploitation of Licensed Products (including the Research, Development and Manufacturing of components thereof but solely for inclusion in a Licensed Product), and shall include Scribe's interest in [\*]. Licensed Know-How specifically includes any Know-How included in Scribe Platform IP Improvements assigned by Prevail to Scribe pursuant to <u>Section</u> <u>9.2.1</u>. The Licensed Know-How shall not include [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.104.** "**Licensed Patents**" means any Patent Controlled by Scribe (whether prior to the Effective Date or during the Term) that Covers an Invention that is necessary or useful for the Exploitation of Licensed Products, and shall include Scribe's interest in any Joint Patent. Licensed Patents specifically includes any Patents included in Scribe Platform IP Improvements assigned by Prevail to Scribe pursuant to <u>Section</u> <u>9.2.1</u>. The Licensed Patents shall not include [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.105.** "**Licensed Product**" means an *in vivo* gene-editing product Directed To a Licensed Target that, [\*] (such editor, the "**Licensed Product Gene Editor**"). Co-Funded Products, Royalty Products and Novel Approach Licensed Products shall each be considered Licensed Products. For clarity (a) [\*], and (b) [\*], a "Licensed Product" hereunder will be considered only [\*] such that any other [\*] will not be included in the licenses granted by Scribe under this Agreement and will be considered a different element of a Combination Licensed Product, as defined in the definition of "Net Sales."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.106.** "**Licensed Product Gene Editor**" has the meaning set forth in <u>Section</u> <u>1.105</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.107.** "**Licensed Product IP**" has the meaning set forth in <u>Section</u> <u>9.9.1(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.108.** "**Licensed Product Trademarks**" has the meaning set forth in <u>Section</u> <u>9.14</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.109.** "**Licensed Target**" means any Initial Target, Additional Target and Replacement Target, in each case so long as Prevail's rights with respect to such Target have not been terminated hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.110.** "**Losses**" has the meaning set forth in <u>Section</u> <u>11.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.111.** "**Loss of Market Exclusivity**" shall have the meaning set forth in <u>Section</u> <u>8.4.2(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.112.** "**Manufacture**" and "**Manufacturing**" means any and all activities related to the making, having made, production, manufacture, processing, filling, finishing, packaging, labeling, shipping, or holding of any product or any intermediate of any of the foregoing, including formulation, process development, process qualification and validation, scale-up, pre-clinical, clinical, and commercial manufacture and analytic development, product characterization, stability testing, quality assurance, and quality control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.113.** "**Material Amendment**" means, with respect to a given Research Plan, an amendment thereto (excluding any such amendment required pursuant to <u>Section</u> <u>3.2</u>) that would: <u>(</u>a) result in an aggregate increase of at least [\*] to the total budgeted amount set forth in the corresponding Research Budget *provided* that [\*]%)); (b) result in a material change in the scope of activities to be performed by Scribe under such Research Plan, reviewed on the basis of such Research Plan taken as a whole; (c) reasonably be expected to result in a delay of more than [\*]), or (d) require a material reallocation of tangible resources or employees by Scribe to a Research Plan [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.114.** "**Materials Transfer Record Form**" has the meaning set forth in <u>Section</u> <u>2.9.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.115. "Negotiation Notice**" has the meaning set forth in <u>Section</u> <u>7.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.116.** "**Net Sales**" means, with respect to a particular Licensed Product, the gross amount invoiced by Prevail or a Prevail Affiliate or any Sublicensee thereof to unrelated Third Parties, excluding any sublicensee, for the Licensed Product in the Territory, less:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Trade, quantity and cash discounts allowed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Discounts, refunds, rebates, chargebacks, retroactive price adjustments, and any other allowances which effectively reduce the net selling price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Licensed Product returns and allowances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** That portion of the sales value associated with drug delivery systems (i.e., comprising primarily hardware and/or software) calculated in accordance with Prevail's policies and procedures for its other products, consistently applied across products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** Any tax imposed on the production, sale, delivery or use of the Licensed Product, including sales, use, excise or value added taxes, or the annual fee imposed on the pharmaceutical manufacturers by the U.S. government;

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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;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** Wholesaler inventory management fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** Allowance for distribution expenses (but in no event more than two percent (2%) of such gross amount); 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;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** Any other similar and customary deductions which are in accordance with U.S. GAAP.

Such amounts shall be determined from the books and records of Prevail or its Affiliate or Sublicensee, maintained in accordance with U. S. GAAP or, in the case of Sublicensees, such similar accounting principles, consistently applied. Prevail further agrees in determining such amounts, it will use Prevail's then current standard procedures and methodology, including Prevail's then current standard exchange rate methodology for the translation of foreign currency sales into U.S. Dollars or, in the case of Sublicensees, such similar methodology, consistently applied.

In the event that the Licensed Product is sold as part of a Combination Licensed Product (where "**Combination Licensed Product**" means any pharmaceutical Licensed Product which comprises the Licensed Product and other active compound(s) or ingredients), the Net Sales of the Licensed Product, for the purposes of determining royalty payments, shall be determined by [\*].

In the event that the weighted average sale price of the Licensed Product can be determined but the weighted average sale price of the other compound(s) or ingredients cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by [\*].

In the event that the weighted average sale price of the other compound(s) or ingredients can be determined but the weighted average sale price of the Licensed Product cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by [\*].

In the event that the weighted average sale price of both the Licensed Product and the other compound(s) or ingredient(s) in the Combination Licensed Product cannot be determined, the Net Sales of the Licensed Product shall be [\*].

The weighted average sale price for a Licensed Product, other compound(s) or ingredients, or Combination Licensed Product shall be calculated [\*]and such price shall be used during all applicable royalty reporting periods for the entire [\*]. When determining the weighted average sale price of a Licensed Product, other compound(s) or ingredients, or Combination Licensed Product, the weighted average sale price shall be calculated by dividing the sales amount (translated into U.S. dollars) by the units of active ingredient sold during [\*]) of the preceding [\*] for the respective Licensed Product, other compound(s) or ingredients, or Combination Licensed Product. In the initial [\*], a forecasted weighted average sale price will be used for the Licensed Product, other compound(s) or ingredients, or Combination Licensed Product. Any over or under payment due to a difference between forecasted and actual weighted average sale prices will be paid or credited in the first royalty payment of the following [\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.117.** "**Milestone Events**" has the meaning set forth in <u>Section</u> <u>8.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.118.** "**Milestone Payments**" has the meaning set forth in <u>Section</u> <u>8.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.119.** "**Novel Approach**" has the meaning set forth in <u>Section</u> <u>2.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.120.** "**Novel Approach Licensed Products**" has the meaning set forth in <u>Section</u> <u>2.7.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.121.** "**Novel Approach Notice**" has the meaning set forth in <u>Section</u> <u>2.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.122.** "**Out-of-Pocket Costs**" means the costs and expenses paid to Third Parties (or payable to Third Parties and accrued in accordance with the Accounting Standards) incurred by a Party or any of its Affiliates in connection with the conduct of any applicable activities under this Agreement, excluding costs for general overhead, postage, communications, photocopying, printing, or internet expenses, professional dues, operating supplies, printers, photocopiers, fax machines, or other office equipment, computers, or computer service charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.123.** "**Party-Specific Regulations**" has the meaning set forth in <u>Section</u> <u>10.4.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.124.** "**Patents**" mean: (a) patents and patent applications; (b) any and all divisionals, continuations, continuations-in-part, reissues, renewals, substitutions, registrations, re-examinations, revalidations, extensions, supplementary protection certificates and the like of any such patents and patent applications; and (c) any and all foreign equivalents of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.125.** "**Person**" means any corporation, limited or general partnership, limited liability company, joint venture, trust, unincorporated association, governmental body, authority, bureau or agency, any other entity or body, or an individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.126.** "**Personal Information**" means, in addition to any definition for any similar term (e.g., "personal data" or "personally identifiable information" or "PII") provided by Applicable Laws, or by either Party in any of its own privacy policies, notices or contracts, all information that identifies, could be used to identify or is otherwise associated with an individual person, whether or not such information is directly associated with an identified individual person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.127.** "**Phase 1 Clinical Trial**" means a clinical trial of a Licensed Product generally consistent with 21 C.F.R. § 312.21(a) (or the non-United States equivalent thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.128.** "**Phase 2 Clinical Trial**" means a clinical trial of a Licensed Product generally consistent with 21 C.F.R. § 312.21(b) (or the non-United States equivalent thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.129.** "**Phase 3 Clinical Trial**" means a clinical trial of a Licensed Product generally consistent with 21 C.F.R. § 312.21(c) (or the non-United States equivalent thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.130.** "**Post-Initiation Registrational Trial**" means a Clinical Trial that following initiation is later determined to be adequate to obtain sufficient data and results to support the filing of an application for Regulatory Approval as a Registrational Trial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.131.** "**Prevail Background IP**" means any and all Patents and Know-How that Prevail or its Affiliates (a) Control as of the Effective Date, or (b) acquire Control of after the Effective Date outside the scope of the activities under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.132.** "**Prevail Background IP Improvement**" means any Invention developed by [\*], in the course of performing under this Agreement, that constitutes an Improvement of Prevail Background IP. Prevail Background IP Improvement shall include [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.133.** "**Prevail Collaboration IP**" has the meaning set forth in <u>Section</u> <u>9.1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.134.** "**Prevail Costs**" has the meaning set forth in <u>Section</u> <u>8.5.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.135.** "**Prevail Indemnitee**" has the meaning set forth in <u>Section</u> <u>11.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.136.** "**Prevail IP**" means the Prevail Background IP, the Prevail Background IP Improvements, the Prevail Collaboration IP and Prevail's interest in any Joint IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.137.** "**Prevail Patents**" means any Patent claiming or constituting any Prevail IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.138.** "**Prevail Research Pre-Fund**" has the meaning set forth in <u>Section</u> <u>2.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.139.** "**Prevail Research Reimbursement**" has the meaning set forth in <u>Section</u> <u>2.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.140.** "**Pricing and Reimbursement Approval**" means, with respect to a Licensed Product, the approval, agreement, determination or decision of any Regulatory Authority establishing the price or level of reimbursement for such Licensed Product, as required in a given country or jurisdiction prior to sale of such Licensed Product in such country or jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.141.** "**Program**" means a program to Generate, Research and Develop a Lead Molecule, Candidate and Licensed Product Directed To a Licensed Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.142.** "**Program Results**" has the meaning set forth in <u>Section</u> <u>12.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.143.** "**Proposed Replacement Target**" has the meaning set forth in <u>Section</u> <u>3.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.144.** "**Prosecute and Maintain"** or **"Prosecution and Maintenance"** with respect to a particular Patent, means all activities associated with the preparation, filing, prosecution and maintenance of such Patent, together with the conduct of interferences, derivation proceedings, *inter partes* review and post-grant review, the defense of oppositions and other similar proceedings with respect to that Patent, including any activities associated with claims, including as a counterclaim or declaratory judgment action, of unpatentability, invalidity or unenforceability of such Patent that are brought by a Third Party in connection with an Infringement under <u>Section</u> <u>9.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.145.** "**Receiving Party**" has the meaning set forth in <u>Section</u> <u>12.1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.146.** "**Regents**" has the meaning set forth in <u>Section</u> <u>6.1.2</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.147.** "**Registrational Trial**" means a Clinical Trial that is intended as of the time such Clinical Trial is initiated to be adequate to obtain sufficient data and results (either alone or together with another Registrational Trial) to support the filing of an application for Regulatory Approval. A Registrational Trial includes any Clinical Trial that satisfies at least one of the following criteria (a) it would, based on interactions with a Regulatory Authority or otherwise prior to the initiation of such trial, satisfy the requirements of 21 CFR 312.21(c); (b) it is designed in a manner to allow for the addition of patients such that it could satisfy the requirements of 21 CFR 312.21(c); or (c) it is a Post-Initiation Registrational Trial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.148.** "**Regulatory Approval**" means, with respect to a country or other jurisdiction in the Territory, all approvals (including approvals of Regulatory Approval Applications, as well as any such accelerated approvals), licenses, registrations, or authorizations of any Regulatory Authority necessary to initiate commercial distribution, marketing, and sale of a product in such country or other jurisdiction, including, as applicable, (a) BLA approval, (b) pre- and post-approval marketing authorizations (including any prerequisite Manufacturing approval or authorization related thereto), (c) labeling approval, (d) Pricing and Reimbursement Approval, and (e) any of the foregoing approvals that are accelerated approvals, but excluding approval that is in the nature of emergency use authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.149.** "**Regulatory Approval Application**" means a BLA or any similar or corresponding application outside of the United States in the Territory to obtain Regulatory Approval, including, with respect to the European Union, a marketing authorization application filed with the EMA pursuant to the centralized approval procedure or with the applicable Regulatory Authority of a country in Europe with respect to the mutual recognition procedure or any other national approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.150.** "**Regulatory Authority**" means any applicable supra-national, federal, national, regional, state, provincial, or local regulatory agency, department, bureau, commission, council, Governmental Authority, or other government entity regulating or otherwise exercising authority with respect to the Exploitation of Licensed Products in the Territory (including any Governmental Authority whose approval is required for pricing or reimbursement by national health insurance or its local equivalent), including the FDA in the United States, the Medicines and Healthcare Products Regulatory Agency in the United Kingdom, and the EMA in the European Union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.151.** "**Regulatory Documentation**" means all: (a) applications (including all INDs and Regulatory Approval Applications), registrations, licenses, authorizations, and approvals (including Regulatory Approvals); (b) correspondence and reports submitted to or received from Regulatory Authorities (including minutes and official contact reports relating to any communications with any Regulatory Authority) and all supporting documents with respect thereto, including all adverse event files and complaint files; and (c) clinical and other data contained or relied upon in any of the foregoing, in each case ((a), (b), and (c)) to the extent relating to a Lead Molecule, Candidate or Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.152.** "**Regulatory Filings**" means, collectively, any and all applications, filings, submissions, approvals (including supplements, amendments, pre- and post-approvals, pricing and reimbursement approvals), licenses, registrations, permits, notifications, and authorizations (including marketing and labeling authorizations), non-clinical and clinical study authorization applications or notifications (including all supporting files, writings, data, studies and reports) or waivers with respect to the testing or Exploitation of a Lead Molecule, Candidate or Licensed Product made to or received from any Regulatory Authority in a given country or jurisdiction, including INDs and BLAs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.153.** "**Reimbursement Cap**" has the meaning set forth in <u>Section</u> <u>2.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.154.** "**Replacement Target**" has the meaning set forth in <u>Section</u> <u>3.2.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.155.** "**Replacement Target Effective Date**" has the meaning set forth in <u>Section</u> <u>3.2.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.156.** "**Research**" means any and all research, discovery, and non-clinical and pre-clinical activities up to (but not including) IND-Enabling Studies, including, as applicable: (a) discovery, identification, research, engineering, characterization, development, modification, optimization, testing, validation, and studies; and (b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.157.** "**Research and Development Milestone Event**" has the meaning set forth in Section <u>8.3.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.158.** "**Research and Development Milestone Payment**" has the meaning set forth in Section <u>8.3.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.159.** "**Research Budget**" has the meaning set forth in <u>Section</u> <u>2.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.160.** "**Research Plan**" has the meaning set forth in <u>Section</u> <u>2.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.161.** "**Research Program**" has the meaning set forth in <u>Section</u> <u>2.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.162.** "**Research Program Records**" shall have the meaning set forth in <u>Section</u> <u>2.9.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.163.** "**Reserved Target**" shall mean the Target [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.164.** "**Residuals**" has the meaning set forth in <u>Section</u> <u>12.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.165.** "**Restricted Person**" has the meaning set forth in <u>Section</u> <u>10.4.8(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.166.** [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.167. "Royalty"** or "**Royalties**" has the meaning set forth in <u>Section</u> <u>8.4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.168.** "**Royalty Floor**" has the meaning set forth in <u>Section</u> <u>8.4.2(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.169.** "**Royalty Product**" means any Licensed Product, excluding any Co-Funded Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.170.** "**Royalty Term**" means, on a Licensed Product-by-Licensed Product and country-by-country basis, the period from First Commercial Sale until the latest to occur of (a) expiration of the last Valid Claim included in a Licensed Patent that Covers such Licensed Product, (b) expiration of all data, regulatory or market exclusivity periods (as may have been supplemented under Applicable Law) for such Licensed Product in such country, and (c) ten (10) years following the date of such First Commercial Sale in such country.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.171.** "**Sanctioned Territory**" has the meaning set forth in <u>Section</u> <u>10.4.8(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.172.** "**Scribe Collaboration IP**" has the meaning set forth in <u>Section</u> <u>9.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.173.** "**Scribe Costs**" has the meaning set forth in <u>Section</u> <u>8.5.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.174.** "**Scribe Future In-License**" has the meaning set forth in <u>Section</u> <u>9.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.175.** [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.176.** "**Scribe Future In-License Flow-Down Terms**" has the meaning set forth in <u>Section</u> <u>9.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.177.** "**Scribe Indemnitee**" has the meaning set forth in <u>Section</u> <u>11.1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.178.** "**Scribe IP**" means the Scribe Platform IP, the Scribe Platform IP Improvements, the Scribe Collaboration IP, Scribe's interest in any Joint IP, and the Licensed Patents and Licensed Know-How.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.179.** "**Scribe Opt-Out**" has the meaning set forth in <u>Section</u> <u>5.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.180.** "**Scribe Patents**" means any Patent claiming or constituting any Scribe IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.181.** "**Scribe Platform**" means Scribe's proprietary CasX gene editing technology, including [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.182.** "**Scribe Platform IP**" means any and all Patents that Cover and Know-How that is directed to the Scribe Platform that Scribe or its Affiliates (a) owns or Controls as of the Effective Date, or (b) acquires Control of after the Effective Date outside the scope of the activities under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.183.** "**Scribe Platform IP Improvement**" means any Invention developed by either Party (or jointly), in the course of performing its activities under this Agreement, that constitutes an Improvement to the Scribe Platform. Scribe Platform IP Improvement shall include any Invention developed by either Party (or jointly) in the course of performing its activities under this Agreement specifically relating to the Scribe Platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.184.** [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.185.** [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.186.** "**Similar Product**" means, other than a Licensed Product, any gene-editing product Directed To a Licensed Target or Reserved Target, regardless of therapeutic modality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.187.** "**Similar Program**" means Exploitation of a Similar Product, or the conduct of activities to Enable such Exploitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.188.** "**Similar Program Notice**" has the meaning set forth in <u>Section</u> <u>7.1.1</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.189.** "**Sublicensee**" means with respect to a given Party, any Third Party, other than an Affiliate, that is granted a sublicense by such Party or its Affiliate under this Agreement, excluding any Third Party granted a sublicense to a Patent (excluding [\*]).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.190.** "**Supply Price**" means the price for the Manufacture of a Co-Funded Product, including: [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.191.** "**Target**" means a human gene, genetic variations or mutations that cause or contribute to a human disease, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.192.** "**Target Election Period**" has the meaning set forth in <u>Section</u> <u>3.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.193.** "**Target Replacement Period**" means (a) with respect to an Initial Target, [\*] following the Effective Date, and (b) with respect to the Additional Target, [\*] following the Additional Target Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.194.** "**Term**" has the meaning set forth in <u>Section</u> <u>13.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.195.** "**Terminated Products or Targets**" has the meaning set forth in <u>Section</u> <u>13.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.196.** "**Territory**" means all of the countries in the world (including their respective territories and possessions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.197.** "**Third Party**" means any Person other than Prevail or Scribe or an Affiliate of Prevail or Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.198.** "**Third Party License Payments**" has the meaning set forth in <u>Section</u> <u>8.4.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.199.** "**UC Berkeley License**" has the meaning set forth in <u>Section</u> <u>6.1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.200.** "**UCB Field**" means prevention and treatment of human diseases, excluding infectious viral diseases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.201.** "**UCB-Licensed Patents**" means any Licensed Patents owned by Regents, rights to which are granted to Scribe through the UC Berkeley License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.202.** "**Unavailable Target**" means a Target that is at the time Prevail proposes it as a Proposed Replacement Target in accordance with <u>Section</u> <u>3.2</u> actively subject to (a) [\*], or (b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.203.** "**U.S. Eligible Cost**" means with respect to a Co-Funded Product, to the extent incurred during the Cost-Sharing Term, and in accordance with this Agreement (and, for clarity, solely to the extent not already counted as a deduction in the definition of Net Sales) each of the following costs to the extent allocable to the United States:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** all Internal Qualified Expenses or Out-of-Pocket Costs associated with activities related to the Commercialization of the Co-Funded Product, including: [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** [\*];

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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;&nbsp;&nbsp;&nbsp;&nbsp;**(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;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&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)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)** [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)** [\*]; 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;&nbsp;&nbsp;&nbsp;&nbsp;**(m)** [\*].

For clarity, "U.S. Eligible Costs" are exclusive of and do not include Development Costs, or any cost for which a Party is solely responsible under this Agreement (including as expressly set forth under the Co-Promotion Agreement or Supply Agreement, if applicable). Except to the extent already included in Internal Qualified Expenses, "U.S. Eligible Costs" shall not include either Party's costs to the extent they solely relate to overseeing execution of and compliance with the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.204.** "**U.S. Gross Margin**" means, with respect to a Co-Funded Product, the Net Sales of such Co-Funded Product in the U.S. less the applicable Supply Price paid in respect of such Co-Funded Product plus [\*] received from a [\*] to the extent reasonably allocable to the Co-Funded Product in the U.S.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.205.** "**Valid Claim**" means a claim for [\*] (a) an issued, unexpired and granted Licensed Patent, which claim has not been held unenforceable, unpatentable or invalid by a decision of a court or other governmental agency of competent jurisdiction; or (b) a pending Licensed Patent that has not been abandoned or finally rejected without the possibility of appeal or refiling.

**ARTICLE 2** 

**RESEARCH PROGRAM** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1. Overview.** The primary objective of Research and Development conducted under this Agreement is for Scribe and Prevail to collaborate under the Research Plans, and thereafter in accordance with the terms of this Agreement, with the intended purpose of using: (a) Scribe Platform IP and the Scribe Platform to Generate, engineer, screen and regulate Licensed Products based on Scribe's CasX gene editing technology focused on diseases resulting from variations or mutations in the Initial Targets and Additional Target, and (b) Prevail Background IP to Generate a treatment delivery for such Licensed Products (collectively, the "**Research Program**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2. Research Program Responsibilities.** All Research through Candidate Selection will be conducted in accordance with a Research Plan. Scribe will lead and be primarily responsible for [\*]. Prevail will lead and be primarily responsible for: [\*]. The Parties shall cooperate in good faith with respect to, including through the sharing of Know-How in furtherance of, all pre-clinical development activities with the guidance of the JSC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3. Research Plans**. The Research Program will consist of comprehensive research plans, each of which corresponds to a Licensed Target and satisfies the requirements of this <u>Section</u> <u>2.3</u> (each, a "**Research Plan**"). The Parties shall execute and perform the Research Program in accordance with such Research Plans. Each Research Plan shall include (a) the responsibilities of the Parties through Candidate Selection, (b) projected timelines for completion of such responsibilities, (c) a detailed budget that includes estimated expenses, including out-of-pocket and FTE costs, associated with each activity contemplated under the Research Plan (a "**Research Budget**"), (d) criteria for a gene editor molecule to achieve Lead Molecule Selection ("**Lead Molecule Critical Success Factors**") and Candidate Selection ("**Candidate Selection Critical Success Factors**"), in each case of this clause (d), as designated by Prevail after discussion between the Parties, and (e) required Program Results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4. Preparation and Amendment of Research Plans**. Each Research Plan for an Initial Target has been mutually prepared and agreed upon by the Parties, is attached on <u>Exhibit 2.4</u>, and is effective as of the Effective Date. Each other Research Plan (including as required in connection with <u>Section</u> <u>3.1</u> (*inclusion of the Additional Target*) or <u>Section</u> <u>3.2</u> (*substitution by a Replacement Target*)) shall be prepared by the Parties and become effective once executed by both Parties; [\*]. The JSC shall review performance of each Research Plan for the purpose of evaluating progress made thereunder. The JSC, and any Party through its representatives on the JSC, may propose amendments to any Research Plan at any time. The JSC shall promptly review any such amendment and shall decide whether to approve any such amendment [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5. Lead Molecule Selection**. The JSC shall supervise and guide the Parties on their respective pre-clinical development activities, with the goal of identifying a gene editor molecule that achieves the Lead Molecule Critical Success Factors. Each Party and its respective representatives will provide regular feedback to the JSC on progress (including feedback on any relevant results or insights), and the JSC shall regularly review such progress and provide feedback and guidance on next steps, and shall consider whether any such results or other feedback might inform any update to or amendment of the Research Plan, including the Parties' respective roles and responsibilities thereunder (in accordance with <u>Section</u> <u>2.15</u>). Scribe shall promptly notify the JSC of any determination that a gene editor molecule has achieved the Lead Molecule Critical Success Factors. No later than [\*] following receipt by the JSC of such notice, the JSC shall review and determine whether such gene editor molecule has achieved the Lead Molecule Critical Success Factors. In the event that the JSC determines that such gene editor molecule fails to satisfy the Lead Molecule Critical Success Factors, the JSC may either [\*]. In the event that the JSC determines such gene editor molecule has achieved the Lead Molecule Critical Success Factors (or the JSC otherwise determines to nominate a gene editor molecule as the Lead Molecule even though the Lead Molecule Critical Success Factors were not achieved), it shall promptly notify the Parties of such determination ("**Lead Molecule Selection**") and such gene editor molecule shall be considered a "**Lead Molecule**".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6. Candidate Selection**. The JSC shall supervise and guide the Parties on their respective pre-clinical development activities, with the goal of identifying a Lead Molecule that achieves the Candidate Selection Critical Success Factors. Each Party and its respective representatives will provide regular feedback to the JSC on progress (including feedback on any relevant results or insights), and the JSC shall regularly review such progress and provide feedback and guidance on next steps, and shall consider whether any such results or other feedback might inform any update to or amendment of the Research Plan, including the Parties' respective roles and responsibilities thereunder (in accordance with <u>Section</u> <u>2.15</u>). The JSC shall review and determine whether each Lead Molecule has achieved the Candidate Selection Critical Success Factors. In the event that the JSC determines that such Lead Molecule has not achieved the Candidate Selection Critical Success Factors, the JSC may either [\*]. In the event that the JSC determines such Lead Molecule has achieved the Candidate Selection Critical Success Factors (or the JSC otherwise determines to nominate the Lead Molecule as a Candidate even though the Candidate Selection Critical Success Factors were not achieved), it shall promptly notify the Parties of such determination ("**Candidate Selection**"), such Lead Molecule shall be considered a "**Candidate**", and unless otherwise agreed upon by the Parties the corresponding Research Plan shall be considered complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7. Novel Approaches to Licensed Products**. During the Term, Scribe may propose to the JSC a gene-editing approach for Researching products Directed To a Licensed Target, which approach is not as of the date thereof already included in the Research Program (a "**Novel Approach**"). For the purposes of clarity, [\*]. Any proposal to the JSC of a Novel Approach, will include information sufficient to evaluate the technical and commercial viability of the Novel Approach (a "**Novel Approach Notice**"). [\*] of the JSC's receipt of a Novel Approach Notice, Prevail will decide whether to include such Novel Approach in the Research Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7.1** If Prevail decides to include the foregoing, then (a) the JSC will prepare a corresponding Research Plan, and (b) Licensed Products resulting therefrom shall be considered "**Novel Approach Licensed Products**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7.2** If the JSC alternatively elects not to include the foregoing, then as an exception to Scribe's obligations under <u>Section</u> <u>7.1</u>, but subject to the requirements of this <u>Section</u> <u>2.7.2</u>, Scribe may independently pursue Research therefor; *<u>provided</u>* [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7.3** No decision not to pursue a Novel Approach will be considered a waiver by the JSC or Prevail of rights under this <u>Section</u> <u>2.7.3</u> with respect to an approach that deviates from a Novel Approach Notice, and any such deviating approaches will be subject to the terms of this <u>Section</u> <u>2.7.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8. Funding**. Within [\*] following the end of each [\*], Prevail shall reimburse Scribe for those amounts incurred by Scribe in accordance with each Research Budget during [\*]; *<u>provided</u>* that, unless otherwise agreed upon by the Parties, Prevail shall in no event be required to reimburse Scribe for more than [\*] per Research Budget [\*] (the "**Reimbursement Cap**") and provided [\*] (the "**Prevail Research Reimbursement Aggregate Cap**"). By way of example, if

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Scribe is conducting research under three (3) Research Plans during [\*], then the Prevail Research Reimbursement Aggregate Cap for such [\*] would be [\*], and Scribe may incur more than [\*] on a particular Research Plan, provided that the aggregate Reimbursement Cap across all three (3) Research Plans does not exceed [\*]. Unless otherwise agreed by the Parties, activities having occurred earlier in time will be allocated funds first until an insufficient amount the Reimbursement Cap (or, if applicable, the Prevail Research Reimbursement Aggregate Cap) remains to fully fund the subsequent activity under a Research Plan. Thereafter, either (y) such subsequent activity under the Research Plan will receive the remaining amount under the Reimbursement Cap (or, if applicable, the Prevail Research Reimbursement Aggregate Cap), or (z) a pro-rata share of the remaining amount under the Reimbursement Cap (or, if applicable, the Prevail Research Reimbursement Aggregate Cap) will be applied to subsequent activities anticipated to occur simultaneously. Other than the reimbursement described in this <u>Section</u> <u>2.8</u>, all activities conducted by either Party in connection with activities under this <u>Article 2</u> (including any overrun of a budgeted amount) shall be at that Party's sole cost and expense. Prevail shall have the right to conduct an audit of amounts applied by Scribe towards each Reimbursement Cap (by invoice or otherwise) following the procedures set forth under <u>Section</u> <u>8.12</u> *mutandis mutatis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9. Exchange of Materials; Research Program Records; Reporting**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9.1** <u>In General</u>. Each Party shall, and shall require its Affiliates and shall require its permitted Third Party subcontractors to, maintain complete, current, and accurate records of all work conducted and results achieved in the performance of the Research Program (the "**Research Program Records**") and all Know-How generated in conducting such activities. The Research Program Records shall accurately reflect all such work done and results achieved in sufficient detail to verify compliance with its obligations under this Agreement and shall be in a good scientific manner appropriate for applicable patent and regulatory purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9.2** <u>Transfer of Materials</u>. Each Party may, if necessary to perform under a Research Program, transfer certain physical materials to the other Party that are not otherwise delivered under a supply or other separate agreement between the Parties or their Affiliates. In each such case, any materials provided to a Party shall (a) be accompanied by a mutually executed material transfer record substantially in the form of <u>Exhibit</u> <u>2.9.2</u> (each a "**Materials Transfer Record Form**"), (b) only be used for the purposes set forth on the Materials Transfer Record Form executed for such materials, and (c) be subject to any other additional terms set forth on the Materials Transfer Record Form executed for such materials, and the receiving Party's signature to any Materials Transfer Record Form shall constitute its binding agreement to (y) only use the applicable materials for such limited use(s), and (z) comply with any such additional terms with respect to the applicable materials. The receiving Party shall not transfer such materials to any Third Party, except as necessary to exercise its rights or perform its obligations under this Agreement, and any such Third Party recipient of the materials shall be obligated to terms no less protective of the Party providing such materials as those set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9.3** <u>Audits</u>. Prevail shall have the right, during normal business hours and upon reasonable notice but not more frequently than [\*], using representatives selected by Prevail and reasonably acceptable to Scribe (and subject to the entry into a customary confidentiality agreement with Scribe), to inspect the Research Program Records of Scribe maintained pursuant to this <u>Section</u> <u>2.9</u> to the extent necessary to confirm Scribe's compliance with its obligations under this Agreement; *<u>provided</u>*, that the representatives: [\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9.4** <u>Information Sharing with Prevail; Adverse</u> <u>Event</u> <u>Reporting</u>. During the Term, (a) for each Licensed Target until a corresponding Lead Molecule Selection is achieved, subject to Scribe's confidentiality obligations under agreements with Third Party collaborators, Scribe shall [\*] share with Prevail data relating to gene editors it Generates during the Term which is [\*] improve Prevail's Exploitation of Licensed Products, (b) Scribe shall promptly notify Prevail of, and provide Prevail with Scribe's results relating to, any [\*] that may impact a Lead Molecule, and (c) Prevail shall promptly notify Scribe of, and provide Scribe with Prevail's results relating to, any [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10. Joint Steering Committee**. [\*] after the Effective Date, the Parties shall establish a cross-functional, joint steering committee (the "**JSC**") composed of up to three (3) senior representatives from each Party (*<u>provided</u>* that each Party has an equal number of representatives) that will oversee and manage the research and sharing contemplated under this <u>Article 2</u>, and have the functions and powers further set forth in <u>Section</u> <u>2.14</u>. Each Party shall appoint its respective representatives to the JSC from time to time, and may change its representatives, in its sole discretion, effective upon reasonable prior written notice to the other Party designating such change. The representatives from each Party on the JSC shall have appropriate technical credentials, experience and knowledge pertaining to and ongoing familiarity with gene editors and the collaboration of the Parties under this Agreement. The Prevail Alliance Manager shall be responsible for circulating agendas no later than [\*] prior to each JSC meeting and distributing minutes of the JSC meetings. The JSC shall meet at least [\*] for so long as it remains in effect. The JSC may conduct such meetings by telephone, videoconference, or in person. Each Party may call special meetings with at [\*] prior written notice, or a shorter time period in exigent circumstances, to resolve particular matters requested by such Party that are within the purview of the JSC. Meetings are effective only if at least one (1) representative of the JSC for each Party participates in such meeting. Each Alliance Manager shall be permitted to attend meetings of the JSC as a non-voting observer. [\*]. The JSC will automatically disband upon completion of the Research Program, subject to each of the activities contemplated by <u>Article 2</u> having been fully and finally performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11. JSC Subcommittees**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11.1** The JSC may, from time to time, establish subcommittees as it deems necessary to further the purposes of this Agreement and Research Program (a "**JSC Subcommittee**"), including as necessary to oversee and coordinate the Parties' activities related to the Research Program, and may delegate activities to such JSC Subcommittees. Each JSC Subcommittee shall undertake the activities delegated to it by the JSC. During the process of establishing each JSC Subcommittee, the JSC shall agree regarding which matters such JSC Subcommittee may resolve on its own (with discretion to refer any matter to the JSC for a final decision) and which matters such JSC Subcommittee will advise the JSC regarding (and with respect to which such advice-specific matters the JSC must resolve). Each JSC Subcommittee will be comprised of an equal number of members of each Party, such number as agreed by the Parties or otherwise by the JSC. Each Party may replace any of its designated JSC Subcommittee representatives at any time with reasonable prior written notice to the other Party. Each Party shall designate one (1) of its representatives on each JSC Subcommittee to serve as the co-chairperson

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of such committee, who will be jointly responsible for calling meetings of the JSC Subcommittee, circulating agendas and performing administrative tasks required to assure efficient operation of the JSC Subcommittee, but shall not have any extra or additional votes or authority. The co-chairpersons or their designees shall alternate responsibility for circulating agendas no later than [\*] prior to each meeting of the applicable JSC Subcommittee and distributing minutes of meetings of the applicable JSC Subcommittee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12. Alliance Managers**. [\*] after the Effective Date, each Party shall appoint one (1) individual to act as the alliance manager for such Party (each, an "**Alliance Manager**"). Without limiting the responsibilities and authorities of the JSC (as expressly set forth herein), the Alliance Managers shall each be the primary point of contact for the Parties regarding the activities contemplated by this <u>Article 2</u> and shall help facilitate all such activities thereunder. Either Party, upon prior written notice to the other Party, may change its Alliance Manager. For clarity, the same employee may not be both the Alliance Manager and a representative appointed by a Party to the JSC. In conducting themselves on the JSC or any subcommittee, all representatives of both Parties shall consider diligently, reasonably and in good faith all input received from the other Party. The Prevail Alliance Manager will be responsible for performing administrative tasks required to assure efficient operation of the JSC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13. Functions and Powers of the JSC**. Except where expressly provided to the contrary hereunder, the JSC shall be responsible for overseeing, coordinating and approving all development activities and strategies relating to the Research Program. Notwithstanding anything to the contrary herein, all responsibilities and decision-making authority of the JSC and the JSC Subcommittees shall be subject to the terms of this Agreement, including this <u>Section</u> <u>2.13</u>, and in particular the JSC shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.1** oversee the collaborative activities of the Parties under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.2** establish JSC Subcommittees as necessary to coordinate and conduct the activities of the Parties hereunder, and terminate or discontinue JSC Subcommittees, as necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.3** receive and discuss reports from JSC Subcommittees as may be established by the JSC from time to time, and provide guidance thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.4** direct and oversee the JSC Subcommittees as may be established by the JSC from time to time on all significant strategic issues that fall within the purview of such subcommittees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.5** resolve issues presented to it by, and disputes regarding performance of activities under the Research Program, including any disputes escalated from a JSC Subcommittee that could not be resolved by the members of such JSC Subcommittee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.6** review a comparison of actual cost versus Research Budget year to date and review and approve changes to the Research Budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.7** facilitate the exchange of Know-How or any materials required hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.8** review, discuss and approve a publication plan that will govern any publication activities with respect to Research Programs;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.9** coordinating and leading any necessary unwinding or transition activities of the Parties in the event a given Research Plan is terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.10** perform such other duties and tasks as are expressly assigned to the JSC under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.11** Review and discuss (with respect to an Additional Target or Replacement Target) Research Plans, and further approve any amendments to the Research Plans that may be necessary or desired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.12** oversee the implementation of the Research Plans, including activities, timing and deliverables thereunder, and coordination of such activities and timing across research programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.13** approve and refine (as necessary) the Lead Molecule Critical Success Factors and Candidate Selection Critical Success Factors for each project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.14** determine whether a gene editor molecule has satisfied the Lead Molecule Critical Success Factors and/or the Candidate Selection Critical Success Factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.15** determine whether a project with respect to a collaboration target should be discontinued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.16** discuss the progress of the Research Program and projects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13.17** review and evaluate data generated to develop new assays in support of the Research Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.14. Decisions**. The JSC and any JSC Subcommittees will use reasonable efforts to make decisions on all matters by consensus, with representatives of each Party having, collectively, one (1) vote on behalf of that Party. If the JSC cannot reach consensus or a dispute arises that cannot be resolved within the JSC, the Parties shall have final decision making as follows: Other than a determination with respect to (a) [\*], or (b) a Material Amendment, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.15. Certain Standards Applicable to Work**. All Research conducted by either Party will be conducted in accordance with the standards of Prevail's Affiliate, Eli Lilly and Company, "Eli Lilly and Company Good Research Practices," and "Eli Lilly and Company Animal Care and Use Requirements for Animal Researchers and Suppliers"; and all Applicable Laws, and data privacy and data security including implementing technical and organizational measures to protect all information under this Agreement that are appropriate and that provide no less protection than both: (a) good industry practice (i.e. in accordance with ISO 27001 and/or similar industry standards) and (b) its measures to protect its own information of a similar nature or importance. For the purposes of this Agreement "**Eli Lilly and Company Good Research Practices**" means the compiled set of shared research quality standards defining how the research laboratories of Eli Lilly and Company conduct good science for non-regulatory work as set forth in <u>Schedule</u> <u>2.15</u><u>(a)</u>, which standards are also applicable to Affiliates of Eli Lilly and Company. For purposes of this

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Agreement, "**Eli Lilly and Company Animal Care and Use Requirements for Animal Researchers and Suppliers**" means the guidelines relating to animal care and use for research done on behalf of Eli Lilly and Company as set forth in <u>Schedule</u> <u>2.15</u><u>(b)</u>, which guidelines are also applicable to Affiliates of Eli Lilly and Company. Prevail may conduct compliance audits of Scribe and/or Scribe's Affiliates and Third Party subcontractors (other than for clarity those subcontractors whose services are not subject to GCP, GLP or GMP requirements) engaged in work related to this Agreement, during normal business hours, no more than once annually, to ensure compliance with applicable GCP, GLP, and GMP requirements and Applicable Laws, provided that Prevail has requested such audit with written notice of at least [\*] and such audit does not unreasonably interfere with the audited entity's operations. All such audits referenced in this <u>Section</u> <u>2.15</u> shall be conducted at Prevail's sole cost and expense.

**ARTICLE 3** 

**TARGETS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1. Initial Targets; Additional Targets**. As of the Effective Date, the Initial Targets are Licensed Targets included in the Research Program. During the Term until the later of (a) [\*] following first achievement of Lead Molecule Selection under the Research Plans directed to [\*], or (b) [\*] after the Effective Date (the "**Target Election Period**") (but in no event later than [\*] after the Effective Date), Prevail shall have the right to incorporate the Reserved Target under the Research Program. Following Prevail's exercise of such right (the date of such exercise, the "**Additional Target Effective Date**"), (w) Prevail shall make a one-time payment of [\*] to Scribe [\*] of the Additional Target Effective Date, (x) such Target shall cease to be the Reserved Target and will instead be an "**Additional Target**", (y) the Additional Target shall be considered a Licensed Target, and (z) a corresponding Research Plan shall be prepared and agreed upon in accordance with <u>Section</u> <u>2.4</u>. To the extent Prevail does not exercise its right to incorporate the Reserved Target under the Research Program during the Target Election Period, then such Target shall cease to be a Reserved Target, and rights granted to Prevail under this Agreement with respect to such Reserved Target shall expire (including under <u>Section</u> <u>7.1</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2. Replacement Targets**. During the Target Replacement Period, in accordance with this <u>Section</u> <u>3.2</u><u>,</u> Prevail may elect to replace an Initial Target or the Additional Target with one other Target identified by Prevail in its discretion. Prevail shall notify Scribe of its desire to exercise the foregoing election, with such notice identifying the Target that Prevail desires as a replacement (a "**Proposed Replacement Target**"). [\*] following receipt of such notice, Scribe shall inform Prevail whether the Proposed Replacement Target is an Unavailable Target. The replacement right set forth in this <u>Section</u> <u>3.2</u> is exercisable (a) [\*] per Licensed Target, if the Parties agree that [\*], and (b) other than in response to a determination set forth in the foregoing (a), [\*] in the aggregate, and not per Licensed Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.1** If Scribe identifies, and provides reasonable documentation evidencing, that the Proposed Replacement Target is an Unavailable Target, then such Proposed Replacement Target shall not become a Replacement Target.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.2** If Scribe does not identify the Proposed Replacement Target as an Unavailable Target, and [\*] following identification thereof Prevail notifies Scribe of its desire to proceed with inclusion of the Proposed Replacement Target under the Research Program (the date Scribe receives such notice, the "**Replacement Target Effective Date**"), then (a) the Proposed Replacement Target shall become a "**Replacement Target**", (b) such Replacement Target shall be considered a Licensed Target, (c) a corresponding Research Plan shall be prepared and agreed upon in accordance with <u>Section</u> <u>2.4</u> [\*], (d) Prevail's right to replace an Initial Target or the Additional Target (as applicable) under this <u>Section</u> <u>3.2</u> shall expire, (e) the replaced Initial Target or Additional Target shall cease to be such, and shall no longer be considered a Licensed Target under this Agreement (and the associated rights and licenses granted under Licensed Know-How and Licensed Patents to Prevail under <u>Section</u> <u>6.1</u> shall cease) and the associated Research Plan shall be terminated, and (f) the Parties shall discuss in good faith Prevail licensing to Scribe, in exchange for commensurate financials, certain Prevail Background IP necessary for Scribe to Exploit Licensed Products that are Directed To the replaced Initial Target or Additional Target (as applicable) and Generated under the corresponding terminated Research Plan, *<u>provided</u>* that this Agreement shall in no way require Prevail to grant the foregoing license to Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.3** If a Target that Scribe had advised Prevail was an Unavailable Target pursuant to <u>Section</u> <u>3.2.1</u> thereafter (but during the Target Replacement Period) ceases to be an Unavailable Target, and if Prevail at that time has the ability to add a Replacement Target in accordance with this <u>Section</u> <u>3.2</u>, Scribe shall promptly notify Prevail of the change in status of such Target and Prevail shall have [\*] in which Prevail can include the Target as a Replacement Target in accordance with <u>Section</u> <u>3.2.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.4** Prevail shall have the iterative right (as set forth in this <u>Section</u> <u>3.2</u>) to submit Proposed Replacement Targets to Scribe during the Target Replacement Period until either expiration of the Target Replacement Period or exercise by Prevail of its replacement right pursuant to this <u>Section</u> <u>3.2</u>.

**ARTICLE 4** 

**DEVELOPMENT AND COMMERCIALIZATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1. Prevail Sole Right and Responsibility.** Prevail shall be solely responsible for and shall have the exclusive right, [\*], to conduct all Exploitation under this Agreement following Candidate Selection, including the Exploitation of the Lead Molecule, Candidates and Licensed Products in the Field in the Territory. Subject to the terms of this Agreement, all decisions concerning Exploitation of the Lead Molecule, Candidates and Licensed Products, including the clinical and regulatory strategy of the foregoing, the manufacturing, marketing and sale of the foregoing, and the design, price and promotion of the foregoing, is within the sole discretion of Prevail; *<u>provided</u>* that prior to Lead Molecule Selection, the Parties will, in good faith, discuss CMC responsibilities through the JSC prior to any exercise of such discretion by Prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2. Diligence**. Prevail shall use Commercially Reasonable Efforts to Develop, obtain Regulatory Approval for, and achieve First Commercial Sale for, at least one (1) Licensed Product Directed To each Licensed Target, in the U.S. and at least one EU5 country.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3. Prevail Regulatory Control**. As between the Parties, Prevail shall have sole responsibility for and control of the preparation, submission, and maintenance of all Regulatory Filings and obtaining Regulatory Approvals (including the preparation and submission of the IND filing, BLA filing and for seeking BLA approval), and shall have sole control over all interactions with the applicable Regulatory Authority. Scribe shall reasonably cooperate with Prevail, at Prevail's reasonable request and expense, with respect to any regulatory matters related to a Regulatory Filing or Regulatory Approval. Prevail will own all right, title and interest in and to any and all Regulatory Filings and Regulatory Approvals and, as between the Parties, all such Regulatory Filings and Regulatory Approvals will be held in the name of Prevail. Scribe shall execute all documents and take all actions as are necessary or reasonably requested by Prevail to vest such title in Prevail. Prevail shall, upon Scribe's written request (which request shall not be made more than once a [\*]), provide Scribe with a copy of any Regulatory Filings submitted by or on behalf of Prevail, its Affiliates and Sublicensees for Licensed Products, but, in each in case, (a) [\*], (b) [\*], and (c) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4. Reports**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.1** Prevail shall keep Scribe reasonably informed, [\*], beginning on the first anniversary of the Effective Date. Prevail's obligations under this <u>Section</u> <u>4.4.1</u> shall cease for a Licensed Product when corresponding Regulatory Approval is obtained. Once First Commercial Sale of a Licensed Product is achieved, Prevail will provide Scribe with reports as provided in <u>Section</u> <u>8.4.3</u> and, as applicable, <u>Section</u> <u>8.5</u>, but Prevail shall have no additional reporting obligations with respect to its Commercialization activities, unless otherwise expressly specified in this Agreement. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.2** [\*] of receiving the final signed report for the applicable GLP Toxicology Studies but in all cases, prior to the first IND Filing in the U.S. for a Licensed Product with respect to [\*] Initial Targets (or Replacement Target thereof, if applicable), Prevail shall provide Scribe with the following: (a) [\*], (b) [\*], and (c) [\*] (the "**Co-Funding Development and Commercialization Plan**") [\*] (collectively, the "**Co-Funding Development and Commercialization Package**"). Prevail's obligation under this <u>Section</u> <u>4.4.2</u> to provide Co-Funding Development and Commercialization Packages shall cease following the expiration, or Scribe's exercise, of the Cost-Sharing Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5. Adverse Event Database**. Prevail shall establish, hold and maintain the global safety database for Licensed Products with respect to information on adverse events concerning the Licensed Products, as and to the extent required by Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6. Subcontracting**. Prevail may engage its Affiliates or Third Party subcontractors (including contract research organizations and contract manufacturing organizations) to perform any portions of its rights or obligations hereunder. The activities of any such Third Party subcontractors will be considered activities of Prevail under this Agreement. Prevail shall ensure compliance by such Third Party subcontractors with the terms of this Agreement.

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**ARTICLE 5** 

**COST-SHARING OPTION; CO-FUNDED PRODUCTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1. Grant of Cost-Sharing Option.** Prevail grants Scribe an option to elect to participate in Expense and Margin Sharing, during the Cost-Sharing Term, with respect to Licensed Products Directed To [\*] (or in each case the Replacement Target thereof, if applicable) (such Initial Targets or Replacement Targets thereof, the "**Cost-Sharing Option Targets**" and such option, the "**Cost-Sharing Option**"). The Cost-Sharing Option may be exercised only one (1) time, [\*], and only in accordance with this <u>Article 5</u>. [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2. Exercise of Cost-Sharing Option**. The Cost-Sharing Option may be exercised by Scribe (a) with notice to Prevail delivered [\*] following receipt of a Co-Funding Development and Commercialization Package, with such notice including information evidencing that Scribe satisfies the Cost-Sharing Requirements, and (b) only with respect to the Cost-Sharing Option Target that is the subject of such Co-Funding Development and Commercialization Package.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3. Cost-Sharing Option Discussion; Cost-Sharing Option Effective Date**. If Scribe timely exercises the Cost-Sharing Option, then Scribe's Chief Financial Officer and an executive designated by Prevail shall promptly meet and discuss Scribe's satisfaction of the Cost-Sharing Requirements. [\*] (a "**Cost-Sharing Requirements Dispute**"), [\*] shall be considered the "**Cost-Sharing Option Effective Date**." [\*] the JSC shall form and delineate responsibilities for (in addition to those set forth herein) a joint development committee (the "**JDC**") and joint commercialization committee (the "**JCC**"); [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4. Reassessment of Cost-Sharing Requirements**. During the Cost-Sharing Term, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5. Progress; Amendments**. During the Cost-Sharing Term, (a) Prevail shall, through the JDC or JCC (*as applicable*), provide a [\*] update as to progress made under the Co-Funding Development and Commercialization Plan, with such update being delivered in a manner convenient to Prevail (including in writing or a live presentation), and (b) any amendment to the Co-Funding Development and Commercialization Plan will be presented to the JSC for review and approval (subject to Prevail's rights under <u>Section</u> <u>2.14</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6. Compliance with Budgets**. Prevail and Scribe (under <u>Section</u> <u>8.5.1</u>) will use reasonable efforts to comply with any budgets contained in the Co-Funding Development and Commercialization Package, it being understood that such budgets are preliminary and are subject to change by the JSC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7. Deferred Development Costs**. To the extent that, in any [\*], aggregate Development Costs exceed [\*] of the total budgeted amount set forth in the Co-Funding Development and Commercialization Plan for such [\*], Scribe shall have the right, upon written notice to Prevail to defer payment of its [\*] share solely with respect to the amount of excess Development Costs ("**Deferred Development Costs**"). Scribe shall repay Prevail an amount equal to [\*] of such Deferred Development Costs [\*] after the date that [\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.8. Cost-Sharing Opt-Out**. Scribe may opt out of Expense and Margin Sharing, on a Co-Funded Product-by-Co-Funded Product basis, with notice delivered to Prevail (a) at any time [\*], (b) if Scribe did not opt out under clause (a) [\*] or (c) within [\*] (in each case (a) through (c), such right, a "**Scribe Opt-Out**"). Following exercise of the Scribe Opt-Out, (x) the corresponding Co-Funded Product shall constitute a Royalty Product for all purposes under this Agreement, (y) Expense and Margin Sharing shall no longer apply for such Royalty Product, and (z) [\*].

**ARTICLE 6** 

**LICENSE RIGHTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1. Exclusive License Grants to Prevail.** Scribe (on behalf of itself and its Affiliates) hereby grants to Prevail and its Affiliates an exclusive (even as to Scribe and its Affiliates), royalty-bearing (as set forth in <u>Section</u> <u>8.4</u>), license, with the right to grant sublicenses (through multiple tiers, as provided in <u>Section</u> <u>6.6</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1.1** under the Licensed Know-How and Licensed Patents (excluding UCB-Licensed Patents) to Exploit the Licensed Products (as well as the Research, Development and Manufacturing of components thereof, including any Lead Molecule or Candidate, but solely for inclusion in a Licensed Product) in the Field in the Territory; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1.2** under the UCB-Licensed Patents, to Exploit the Licensed Products (and components thereof in connection with Research and Development, including any Lead Molecule or Candidate) in the UCB Field in the Territory. Prevail, on behalf of itself and its Affiliates, with regards to the license granted under this <u>Section</u> <u>6.1.2</u>, hereby agrees (a) to comply with those obligations under the UC Berkeley License as such license is modified by that certain letter agreement with UC Berkeley executed on or prior to the Effective Date and applicable to any sublicenses thereunder, including [\*], and (b) that each sublicense granted by Prevail or its Affiliates under the UCB-Licensed Patents shall similarly conform with the obligations of (a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2. Non-Exclusive License Grants to Prevail**. Scribe hereby grants to Prevail and its Affiliates a non-exclusive, royalty-free, perpetual, irrevocable, fully paid license (with the right to grant sublicenses without restriction) under any Scribe Platform IP Improvements assigned by Prevail to Scribe pursuant to <u>Section</u> <u>9.2.1</u> [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3. Non-Exclusive License Grant to Scribe**. Prevail hereby grants to Scribe a non-exclusive, royalty-free license, without the right to grant sublicenses, under the Prevail Background IP solely as and to the extent necessary for Scribe to perform its obligations under this Agreement, including its Research activities under a Research Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4. Right to Combine**. The licenses granted by Scribe to Prevail include the right for Prevail to combine the licensed technology with other technologies owned or licensed by Prevail, and Exploit therapeutics based on such combinations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5. Prevail Covenant;** [\*]. During the Term, and except as set forth in this <u>Section</u> <u>6.5</u>, Prevail and its Affiliates shall not [\*]. Notwithstanding the foregoing, Prevail and its Affiliates shall not be prohibited from engaging in any activities using materials not protected by Intellectual Property Rights Controlled by Scribe, including as set forth in <u>Section</u> <u>12.2</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6. Sublicenses**. Prevail and its Affiliates may grant one or more sublicenses under the rights and licenses granted to it under <u>Article 6</u>, in full or in part, to Third Parties (in each case, with the right to sublicense through multiple tiers); *<u>provided</u>* that: (a) any such permitted sublicense is consistent with and subject to the terms and conditions of this Agreement; and (b) Prevail shall remain responsible for the performance of Prevail's obligations under this Agreement and shall be responsible for all actions of each such Sublicensee as if such Sublicensee were the Party hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7. No Implied Rights**. Except as expressly set forth in this Agreement, neither Party shall be granted by implication or otherwise, any license or right to or under any other Intellectual Property Right, including any trademarks, Know-How, or Patents, of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.8. Safe Harbor Research**. Except to the extent Scribe has granted exclusive rights to Prevail under this Agreement, and without limiting the restrictions under <u>Section</u> <u>6.5</u>, neither Party, by entering into this Agreement, is forfeiting any rights that such Party may have to perform research activities in compliance with 35 U.S.C. § 271(e)(1) or any experimental or research use exemption that may apply under Applicable Law or in any country.

**ARTICLE 7** 

**EXCLUSIVITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1. Scribe Exclusivity Obligations**. Neither Scribe nor any of its Affiliates shall (by themselves, or with or through any Third Party), directly or indirectly participate in, support, work for the benefit of, or otherwise enable (including by way of granting any license, authorization, or assignment of rights) (collectively, to "**Enable**") a Person (including Scribe or any of its Affiliates) to conduct a Similar Program. Such restriction shall expire, [\*] (such period, the "**Exclusivity Period**", and the date of expiration, an "**Exclusivity Expiration Date**"). [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1.1** If, within the [\*] following the Exclusivity Expiration Date, Scribe or its Affiliates intend to pursue internally (subject to <u>Section</u> <u>2.7</u>, excluding a Novel Approach), or sublicense, license or otherwise grant any rights to a Third Party so as to Enable [\*], a Similar Product or Similar Program, then [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2. Grant of Exclusionary Rights to Prevail**. Solely to preserve Prevail's rights of exclusivity under <u>Section</u> <u>7.1</u>, Scribe (on behalf of itself and its Affiliates) hereby grants to Prevail, during the Exclusivity Period, (a) [\*], and (b) [\*]. Notwithstanding the foregoing, the right granted to Prevail pursuant to this <u>Section</u> <u>7.2</u> shall not be construed as a right for Prevail to conduct any of the foregoing activities itself. Prevail's right to conduct such activities (and sublicense the same) are set forth in <u>Section</u> <u>6.1</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3. [\*]**.

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**ARTICLE 8** 

**FEES, ROYALTIES, & PAYMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1. Upfront Payment.** As partial consideration for the rights granted by Scribe to Prevail pursuant to the terms of this Agreement, Prevail shall pay Scribe a one-time, non-refundable, non-creditable payment equal to Forty Five Million Dollars ($45,000,000) within thirty (30) Business Days following the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2. Investment**. As of the Effective Date, Eli Lilly and Company and Scribe entered into that certain Convertible Note Agreement of even date herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3. Milestone Events and Payments**. Subject to the requirements of this <u>Section</u> <u>8.3</u>, Prevail shall make the non-refundable and non-creditable payments to Scribe described in this <u>Section</u> <u>8.3</u> (collectively, the "**Milestone Payments**") after the achievement of the corresponding events set forth in this <u>Section</u> <u>8.3</u> (collectively, the "**Milestone Events**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3.1** *Research and Development Milestones*. Prevail shall pay Scribe the below Milestone Payments (each, a "**Research and Development Milestone Payment**") [\*] after, on a Licensed Product-by-Licensed Product basis, the Milestone Event is first achieved by Scribe, Prevail, or their respective Affiliates or Sublicensees (as applicable) with respect to a Licensed Product (or Research and Development thereof) (each, a "**Research and Development Milestone Event**"). Each Research and Development Milestone Payment shall be payable [\*] Licensed Product, and shall not be payable on achievements of Co-Funded Product(s) if the Research and Development Milestone Event occurs during the Cost-Sharing Term. In the event that a Novel Approach Licensed Product achieves a Research and Development Milestone Event that was previously achieved by a Licensed Product Directed To the same Licensed Target, then the corresponding Research and Development Milestone Payment shall be reduced [\*]. In addition, if Prevail discontinues development of a Licensed Product and a later Licensed Product Directed To the same Target later achieves a Research and Development Milestone Event previously achieved by the discontinued Licensed Product, the corresponding Research and Development Milestone Payment will not be due for the replacement Licensed Product.

Table 8.3.1 – <u>Research and Development Milestone Payments</u>

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| | |
|:---|:---|
| ***Milestone Event*** | **Milestone Payment** |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3.2** *Commercial Milestones*. Prevail shall pay to Scribe the below Milestone Payments (each, a "**Commercial Milestone Payment**") [\*] following the end of the [\*] in which, on a Licensed Product-by-Licensed Product basis, the Milestone Event is first achieved by Prevail or its respective Affiliates or Sublicensees (as applicable) (each, a "**Commercial Milestone Event**"). Each Commercial Milestone Payment shall be payable [\*] Licensed Product. With the exception of those Commercial Milestone Payments marked with an (\*) below, no Commercial Milestone Payment shall be payable on achievements of Co-Funded Product(s) if such Milestone Event occurs during the Cost-Sharing Term. In the event that a Novel Approach Licensed Product achieves a Commercial Milestone Event that was previously achieved by a Licensed Product Directed To the same Licensed Target, then the corresponding Commercial Milestone Payment shall be reduced [\*].

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Table 8.3.2 – <u>Commercial Milestone Payments</u>

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| | |
|:---|:---|
| ***Milestone Event*** | **Milestone Payment** |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |
| [\*] | [\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4. Royalties**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4.1** *Royalty Rates*. Subject to this <u>Section</u> <u>8.4</u>, during the Royalty Term, Prevail shall pay Scribe, on a Licensed Product-by-Licensed Product and country-by-country basis, the royalty payments on Net Sales in each calendar year of each Licensed Product in the Territory at the below rates (the "**Royalty**" or "**Royalties**"). Such rates are intended to be tiered and incremental, and the higher incremental rate will only apply to that portion of the annual Net Sales in the Territory of the applicable Licensed Product that falls within the indicated range of sales. All Royalties payable pursuant to this <u>Section</u> <u>8.4.1</u> are subject to reduction as further described in <u>Section</u> <u>8.4.2</u>. The Royalties set forth for Co-Funded Products below shall only apply to the portion of annual Net Sales of the applicable Licensed Product sold outside the U.S. during the Cost-Sharing Term. For Co-Funded Products sold in the U.S. during the Cost-Sharing Term, Prevail will pay Scribe [\*] of Gross Margin Share as further described in <u>Section</u> <u>8.5.3</u>.

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Table 8.4.1– Royalty Rates

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| | | |
|:---|:---|:---|
| ***Net Sales in a Calendar Year*** | **Royalty Rate for**<br> **Royalty Products** | **Royalty Rate for**<br> **Co-Funded**<br> **Products Sold**<br> **Outside U.S.** |
| [\*] | [\*] | [\*] |
| [\*] | [\*] | [\*] |
| [\*] | [\*] | [\*] |
| [\*] | [\*] | [\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4.2** *Royalty Reductions.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** *Third Party Payments*. On a Licensed Product-by-Licensed Product and country-by-country basis, Prevail may deduct from any Royalty payment owed to Scribe for the sale of a given Licensed Product in a given country an amount equal to [\*] of any payments made by Prevail to a Third Party in consideration for a right or license under such Third Party's interest in any Intellectual Property Rights necessary or useful for Exploitation of any aspect of such Licensed Product; *<u>provided</u>* to the extent such Intellectual Property Rights constitute Enabling Technology that Scribe was unable to procure under Section 9.7, then Prevail may deduct in accordance with this section an amount equal to [\*] of the payments made by Prevail in consideration for a right or license under such Intellectual Property Rights (collectively, "**Third Party License Payments**"). In no event will Royalties payable to Scribe for each Licensed Product be reduced in a [\*], solely as a result of this <u>Section</u> <u>8.4.2(a)</u>, by more than [\*]; *<u>provided</u>* that an amount eligible for deduction in a given [\*] which was not applied because it would have resulted in a reduction of Royalties paid in such [\*] by more than [\*] can be applied instead in any subsequent [\*] during the Royalty Term. [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** *Valid Claim*. In any [\*] during the Royalty Term, for a Licensed Product for which there is no Valid Claim that Covers such Licensed Product in a country, the Royalty for such Licensed Product will be permanently reduced in such country [\*] for such [\*] (in addition to any other reductions in this <u>Section</u> <u>8.4.2(b)</u>) and thereafter for the remainder of the Royalty Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** *Loss of Market Exclusivity*. On a country-by-country basis, from and after (and including) the [\*] within which any of the following occurs: (x) the first commercial sale of the first Generic/Biosimilar Equivalent occurred with respect to a Licensed Product ("**Loss of Market Exclusivity**"); (y) the first commercial sale of the second or subsequent Generic/Biosimilar Equivalent occurred with respect to a Licensed Product ("**Further Market Erosion**") or (z) IRA Impact, the Royalty with respect to such Licensed Product in such country shall be permanently reduced as follows: (i) [\*] of the rates provided in <u>Section</u> <u>8.4.1</u> upon IRA Impact [\*], (ii) [\*] of the rates provided in <u>Section</u> <u>8.4.1</u> upon Loss of Market Exclusivity, (iii) [\*] of the rates provided in <u>Section</u> <u>8.4.1</u> when [\*], and (iv) [\*] of the rates provided in <u>Section</u> <u>8.4.1</u> upon Further Market Erosion.

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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;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** *Cumulative Royalty Reductions and Limitations*. Each of the potential Royalty reductions in this <u>Section</u> <u>8.4.2</u> may be taken in addition to, and not in lieu of, any other potential reductions set forth in this <u>Section</u> <u>8.4.2</u>; *<u>provided</u>* that in no event will royalties (i) [\*], and (ii) [\*], be reduced, [\*] below [\*] (collectively, the "**Royalty Floor**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4.3** *Payment; Reports*. Royalty payments due by Prevail to Scribe will be calculated and reported for each [\*] from and after the [\*] in which Net Sales are first made hereunder. All Royalties due shall be paid within [\*] after the end of each [\*] and shall be accompanied by a report setting forth (which report shall be issued within [\*] after the end of each [\*]), with respect to each [\*], on a Licensed Product-by-Licensed Product and country-by-country basis: (a) Net Sales of the Licensed Product by Prevail and its Affiliates and Sublicensees in such country, and (b) a calculation of Royalties due on such Net Sales. For the avoidance of doubt, nothing in this Agreement will require Prevail to disclose its (or any of its Affiliates' or Sublicensees') gross-to-net calculation of Net Sales to Scribe or Scribe's Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4.4** *Method of Payment; Currency Conversion*. Unless otherwise agreed by the Parties, all payments due under this Agreement shall be paid in U.S. Dollars by wire transfer or electronic funds transfer of immediately available funds to an account designated by the payee; *<u>provided,</u>* however, that Prevail shall only be required to disburse funds to the payee's jurisdiction of incorporation or to a jurisdiction in which the payee has a significant business presence. When conversion of payments from any currency other than U.S. Dollars is required, Prevail's then-current standard exchange rate methodology will be employed for the translation of foreign currency sales into U.S. Dollars; *<u>provided</u>*, that this methodology is used by Prevail in translation of its foreign currency operating results, is consistent with U.S. GAAP, is audited by Prevail's independent certified public accountants in connection with the audit of the consolidated financial statements of Prevail, and is used for external reporting of foreign currency operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4.5** *Records*. Prevail shall keep, and shall cause its Affiliates and Sublicensees to keep, complete and accurate records which may be necessary to ascertain properly and to verify the royalty payments due hereunder. Such records shall be kept for such period of time required by Applicable Laws, but no less than [\*] following the end of the calendar year to which they pertain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5. Calculation and Payment of Expense and Margin Sharing**. In respect to each Co-Funded Product during the Cost-Sharing Term, the Parties will share Development Costs and U.S. Gross Margin (minus U.S. Eligible Costs), (such share, the "**Expense and Margin Sharing**"), as further set forth below, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5.1** *Scribe Cost Reporting*. No later than [\*] after the end of each [\*] including and following the Cost-Sharing Option Effective Date, Scribe will provide Prevail a detailed, itemized report for the Development Costs (if any and applicable) and U.S. Eligible Costs incurred by Scribe or its Affiliates in such [\*], as applicable, for the Co-Funded Products (collectively, "**Scribe Costs**"). Such report to be in the form set forth in <u>Schedule</u> <u>8.5.1</u> or in such other form as the Parties may mutually agree from time-to-time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5.2** *Prevail Cost Reporting*. No later than [\*] after the end of each [\*] including and following the Cost-Sharing Option Effective Date, Prevail will provide Scribe a detailed itemized report of the Development Costs and U.S. Eligible Costs, excluding the underlying components of the Supply Price, incurred by Prevail or its Affiliates in such [\*], as applicable, for the Co-Funded Products (collectively, the "**Prevail Costs**"), such report to be in the form set forth in <u>Schedule</u> <u>8.5.1</u> or in such other form as the Parties may mutually agree from time-to-time. Under no circumstances will Prevail be obligated to disclose its calculation of any Supply Price (or the component and input costs thereof) in respect of any Co-Funded Product Manufactured by Prevail or a Prevail Affiliate [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5.3** *Gross Margin Share Reporting*. No later than [\*] after the end of each [\*] beginning in the [\*] in which such Co-Funded Product is first Launched, Prevail will provide Scribe with a report setting out the U.S. Gross Margin minus U.S. Eligible Costs (the "**Gross Margin Share**"), excluding the underlying components of the Supply Price, calculated by Prevail in respect of such Co-Funded Product for such [\*] for all sales of such Co-Funded Product in the U.S. For the avoidance of doubt, nothing in this Agreement will require Prevail to disclose its (or any of its Affiliates' or Sublicensees') gross-to-net calculation of Net Sales to Scribe or Scribe's Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5.4** *Income Taxes*. Subject to <u>Section</u> <u>8.9</u>, income and withholding taxes imposed on either of the Parties hereunder will not be included in cost sharing hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5.5** *Allocation, Reconciliation and True-Up*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** *Allocation of Development Costs and U.S. Eligible Costs*. On a [\*] basis, in respect to each Co-Funded Product, (a) Prevail shall be responsible for [\*] of the Development Costs and U.S. Eligible Costs during the Cost-Sharing Term, and (b) Scribe shall be responsible for [\*] of the Development Costs and U.S. Eligible Costs during the Cost-Sharing Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** *Allocation of Gross Margin Share*. On a [\*] basis, in respect to each Co-Funded Product, (a) Prevail shall be entitled to or responsible for [\*] of the Gross Margin Share during the Cost-Sharing Term, and (b) Scribe shall be entitled to or responsible for [\*] of the Gross Margin Share during the Cost-Sharing Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** *True-Up*. [\*] after the end of each [\*], Prevail will provide Scribe a report of the amount each Party is responsible for under <u>Section</u> <u>8.5.5(a)</u> for such [\*], and a report of the amount each Party is entitled to receive under <u>Section</u> <u>8.5.5(b)</u>, as Prevail calculates such amounts based on reports provided under <u>Sections 8.5.1</u> and <u>8.5.2</u>, and the report provided by Prevail under <u>Section</u> <u>8.5.3</u> (the net of such amounts, the "**Co-Funded Product Sharing Amounts**"). The Parties will make a balancing payment between the Parties in order to effect the sharing of the Co-Funded Product Sharing Amounts [\*] after delivery of such report of the Co-Funded Product Sharing Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6. Late Payments**. If any payment properly due under this Agreement and not subject to a good faith dispute is not paid when due in accordance with the applicable provisions of this Agreement, the payment shall accrue interest at the rate equal to the [\*] or the maximum rate allowable by Applicable Law, whichever is less. The payment of such interest shall not limit the Party entitled to receive payment from exercising any other rights it may have as a consequence of the lateness of any payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7.** [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.8. Taxes on Income**. Each Party shall pay all taxes (including related interest and penalties) imposed on its share of income arising directly or indirectly from the efforts of, or the receipt or deemed receipt of any payment by, such Party under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.9. Tax Withholding**. If any taxes (including related interest and penalties) are required to be withheld by a Party with respect to an amount payable to the other Party under this Agreement, such Party shall: (a) withhold such taxes from the payment made to the other Party; (b) timely pay the withheld taxes to the proper taxing authority; (c) send proof of payment to the other Party; and (d) reasonably assist the other Party in its efforts to obtain a refund of or credit for such tax payment in accordance with <u>Section</u> <u>8.10</u>. Any amount actually withheld and remitted by a Party to a taxing authority pursuant to this <u>Section</u> <u>8.9</u> shall be treated for all purposes of this Agreement as paid to the other Party. No amount shall be withheld, or a reduced amount shall be withheld, as applicable, if, in accordance with <u>Section</u> <u>8.10</u>, a Party that is entitled to a payment timely furnishes the other Party with the necessary tax forms and other documents required by Applicable Law, which shall be in a form reasonably satisfactory to the Party receiving the documents, identifying that the relevant payment is exempt from tax or subject to a reduced tax rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.10. Tax Cooperation**. The Parties shall cooperate with one another and use commercially reasonable efforts to reduce or eliminate tax withholding or similar obligations with respect to any payments made by one Party to the other Party under this Agreement. The Party entitled to receive a payment shall, upon reasonable request, provide the paying Party with any tax forms that may be reasonably necessary in order for the paying Party not to withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty. Each Party shall provide the other with reasonable assistance to enable the recovery, as permitted by Applicable Law, of withholding taxes, value added taxes, or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the Party bearing such withholding tax or value added tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.11. Financial Records**. Prevail shall, and shall cause its Affiliates and its and their Sublicensees to, keep complete and accurate financial books and records which may be necessary to ascertain properly and to verify the Royalty payments due hereunder, including the Co-Funded Product Sharing Amounts and the Gross Margin Share. Each Party shall, and shall cause its Affiliates and its and their Sublicensees to, retain such books and records until the later of: (a) [\*] after the end of the period to which such books and records pertain; and (b) the expiration of the applicable tax statute of limitations (or any extensions thereof) or for such longer period as may be required by Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.12. Audits**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.12.1** During the Term, upon the written request of the other Party, each Party shall, and shall cause its Affiliates and its and their Sublicensees to, permit a "Big Four" independent, certified public accountant (e.g., Deloitte, KPMG, PWC or EY), designated by the other Party and reasonably acceptable to the audited Party, at reasonable times and upon reasonable notice, to audit the books and records maintained by or on behalf of the audited Party pursuant to

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 <u>Section 8.11</u> to ensure the accuracy of all reports and payments made by such audited Party hereunder; *<u>provided</u>*, that such examinations must be of a reasonably tailored scope, and may not: (a) be conducted more than once in any [\*] period (unless a previous audit during such [\*] period revealed an underpayment with respect to such period); or (b) be repeated for any [\*]. The independent, certified public accountant shall report to Scribe and Prevail only the amounts of Net Sales, Royalties, Co-Funded Product Sharing Amounts, and Gross Margin Share due and payable. Except as provided below, the cost of any such audit shall be borne by the auditing Party, unless the audit reveals a variance of more than [\*] from the reported amounts or [\*], whichever is greater, in which case the audited Party shall bear the cost of the audit. Unless disputed, if such audit concludes that: (i) additional amounts were owed by the audited Party, the audited Party shall pay the additional amounts with interest from the date originally due as provided in <u>Section</u> <u>8.6</u> or (ii) excess payments were made by the audited Party, the auditing Party shall reimburse such excess payments, in each case ((i) or (ii)), [\*] after the date on which such audit is completed by the auditing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.12.2** The receiving Party shall treat all information subject to review under this <u>Section</u> <u>8.12</u> in accordance with <u>Article 12</u> and the Parties shall cause the auditors referenced in this <u>Section</u> <u>8.12</u> to enter into a reasonably acceptable confidentiality agreement with the audited Party obligating such firm to retain all such financial information in confidence pursuant to such confidentiality agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.12.3** [\*].

**ARTICLE 9** 

**INTELLECTUAL PROPERTY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1. In General**. As between the Parties: (a) each Party shall own and retain all right, title and interest in and to all of its Background IP; and (b) subject to <u>Section</u> <u>9.2</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1.1** all right, title, and interest in and to all Know-How Generated solely by or on behalf of Scribe (or its Affiliates) in the course of activities conducted under this Agreement, and any and all Patent and other Intellectual Property Rights with respect thereto, shall be exclusively owned by Scribe (the "**Scribe Collaboration IP**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1.2** all right, title, and interest in and to all Know-How Generated solely by or on behalf of Prevail (or its Affiliates or its or their Sublicensees) in the course of activities conducted under this Agreement, and any and all Patents and other Intellectual Property Rights with respect thereto, shall be exclusively owned by Prevail (the "**Prevail Collaboration IP**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1.3** all right, title, and interest in and to all Know-How Generated jointly by or on behalf of Prevail (or its Affiliates or its or their Sublicensees) and Scribe (or its Affiliates) in the course of activities conducted under this Agreement ("**Joint Know-How**") and any and all Patents ("**Joint Patents**") and other Intellectual Property Rights with respect to the Joint Know-How (collectively, together with the Joint Know-How and Joint Patents, "**Joint IP**") shall be owned jointly by Prevail and Scribe.

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Subject to the terms of this Agreement: (a) each Party shall have the right to practice, grant licenses under, and transfer any Joint IP (subject to the licenses granted Prevail hereunder); (b) neither Party shall have any obligation to account to the other for profits or to obtain any approval of the other Party to license or Exploit any Joint IP, including by reason of joint ownership thereof; and (c) each Party hereby waives any right it may have under the laws of any jurisdiction to require any such consent or accounting; *<u>provided</u>* that, in Exploiting or licensing such Joint IP, neither Party shall have any right or license to the underlying Background IP of the other Party, in each case, not otherwise expressly granted elsewhere in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2. Exceptions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2.1** Notwithstanding <u>Section</u> <u>9.1</u>, as between the Parties, Scribe shall exclusively own [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2.2** Notwithstanding <u>Section</u> <u>9.1</u>, as between the Parties, Prevail shall exclusively own [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3. United States Law**. The determination of whether Know-How is Generated by a Party for the purpose of allocating intellectual or other proprietary rights therein, shall be made in accordance with the United States patent law and other Applicable Law in the United States without regard to conflict of law, irrespective of where or when such Generation occurs. In the event that United States law otherwise would not apply to the Generation of any Know-How hereunder, each Party shall, and does hereby, assign, and shall cause its Affiliates and its and their licensees and Sublicensees to assign, to the other Party, without additional compensation, such right, title, and interest in and to any Know-How and proprietary intellectual property rights with respect thereto (including all rights of action and claims for damages and benefits arising due to past and present infringement of such rights), as is necessary to fully effect, as applicable, the provisions of this <u>Article 9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4. Assignment Obligation**. Each Party shall cause its and its Affiliates' and its and their Sublicensees' employees and representatives, and shall use commercially reasonable efforts to cause any Third Party who performs any activities on behalf of such Party under this Agreement or who Generates any Know-How by or on behalf of such Party or any of its Affiliates or its or their Sublicensees under this Agreement, to assign all inventions (or, if such Party, Affiliate, or Sublicensee is unable to cause any such Third Party to agree to such assignment obligation despite such Party's, Affiliate's, or Sublicensee's commercially reasonable efforts to negotiate such assignment obligation, to such Party or any of its Affiliates or Sublicensees shall cause such Third Party to provide an exclusive license under their rights in any Know-How resulting therefrom, including all rights of action and claims for damages and benefits arising due to past and present infringement of such Know-How) to such Party or any of its Affiliates or Sublicensees, except where Applicable Law requires otherwise and except in the case of governmental or not-for-profit institutions that have standard policies against such an assignment (in which case a suitable license, or right to obtain such a license, shall be obtained). Each Party shall use reasonable efforts to promptly disclose to the other Party in writing any Generated Know-How arising in the course of activities under this Agreement, including any invention disclosures, or other similar documents, submitted to it by its Sublicensees, employees and representatives describing such Know-How, and all information relating to such Know-How to the extent necessary or useful for preparation, filing and maintenance of any Patent with respect to such Know-How.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5. Inventor's Remuneration**. Each Party shall be solely responsible for any remuneration that may be due such Party's inventors under any applicable inventor remuneration laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6. Independent Development**. Subject to the licenses and obligations of exclusivity granted hereunder, nothing in this Agreement shall be construed as limiting either Prevail's or Scribe's right to research, develop, improve and in-license technology related to the Intellectual Property Rights of Prevail (in the case of Prevail) or the Intellectual Property Rights of Scribe (in the case of Scribe) outside the scope of this Agreement in its ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7. Enabling Technology IP**. As between the Parties (a) [\*], and (b) subject to <u>Section</u> <u>8.4.2(a)</u>, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8. Other Scribe-Licensed Technology**. If Scribe acquires or licenses any Patent with the right to grant a license or sublicense (as applicable) to Prevail and, to Scribe's knowledge, such Patent is necessary for Prevail to Exploit Licensed Products (other than with respect to Enabling Technology which is the subject of <u>Section</u> <u>9.7</u>), Scribe shall, promptly following execution of the relevant agreement (a "**Scribe Future In-License**"), notify Prevail and disclose to Prevail (a) the subject matter of the Scribe Future In-License, (b) any payments (such as royalties, milestone payment or the like) that would be directly attributable to Prevail's exercise of rights hereunder [\*], and (c) any terms of the Scribe Future In-License with which Prevail would be required to comply to enjoy the benefit of a license or sublicense ("**Scribe Future In-License Flow-Down Terms**"). For any Scribe Future In-License that contains such payment obligations, Scribe shall use reasonable efforts to ensure that [\*]. If requested by Prevail, Scribe will facilitate discussions with the relevant licensor [\*] of such Scribe Future In-License. Prevail may notify Scribe at any time if it wishes to have the benefit of a sublicense under any Scribe Future In-License, in which case Scribe will, [\*]. Conversely, Prevail may at any later time notify Scribe that it no longer wishes to have the benefit of a sublicense under any Scribe Future In-License in accordance with the terms of the applicable Scribe Future-In License, in which case [\*]. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9. Patent Prosecution and Maintenance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9.1** *Rights to Prosecute and Maintain Patents.* As between the Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Prevail shall have, (i) the sole right, but not the obligation, to Prosecute and Maintain any Patent that [\*] ("**Licensed Product IP**"), (ii) the sole right, but not the obligation, to Prosecute and Maintain any Patent that constitutes or claims any Prevail IP, and (iii) the first right, but not the obligation, to Prosecute and Maintain any Joint Patent, in each case (i) through (iii), at Prevail's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Scribe shall have (i) the sole right, but not the obligation, to Prosecute and Maintain any Patent that constitutes or claims any Scribe IP, other than Licensed Product IP, and (ii) the secondary right, but not the obligation, to Prosecute and Maintain any Joint Patent, in each case (i) and (ii), at Scribe's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9.2** *Scribe Secondary Right with Respect to Joint Patents and Licensed Product IP*. Prevail shall notify Scribe as to any final decision not to initiate or continue Prosecution and Maintenance of any Joint Patent and Licensed Product IP at least [\*] prior to any filing or payment

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due date, or any other due date that requires action to avoid loss of rights, in connection with such Joint Patent or Licensed Product IP. Thereafter, Scribe may, upon written notice to Prevail, Prosecute and Maintain such Joint Patent worldwide, at its sole cost and expense, using counsel of its choice, so long as Prevail's election not to Prosecute and Maintain such Joint Patent or Licensed Product IP is not based upon a reasonable strategic decision that Prevail has made in good faith for the benefit of the Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9.3** *Cooperation of the Parties*. With respect to Joint Patents or Licensed Product IP, the Party responsible for Prosecution and Maintenance shall (a) provide the other Party with all copies of material communications from patent authorities in the Territory, filings, responses, or submissions regarding any such Prosecution and Maintenance, and (b) consider in good faith any comments or feedback provided by the other Party with respect thereto at least [\*] prior to any filing deadlines (to the extent reasonably practicable). Each Party shall cooperate fully with the other Party in the Prosecution and Maintenance of Patents under this <u>Section</u> <u>9.9</u> at its own cost (except as expressly set forth otherwise in this Article 9), including by: (a) executing all papers and instruments, or requiring its employees or contractors, to execute such papers and instruments, to enable the other Party to apply for and to Prosecute and Maintain such Patents in any country; and (b) promptly informing the other Party of any material matters coming to such Party's attention that may affect the Prosecution and Maintenance of any such Patents. Each Party will use reasonable efforts via good faith consultation to avoid creating potential issues in Prosecution and Maintenance of Patents under this <u>Section</u> <u>9.9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10. Infringement or Misappropriation by Third Parties**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.1** *Notice*. Each Party shall notify the other [\*] of becoming aware of any alleged or threatened infringement by a Third Party of any Patents of the other Party in the Field in the Territory, in each case, with respect to any activity that would be covered by the exclusivity of the license grant under <u>Sections 6.1</u> or <u>7.2</u>, and any related declaratory judgment, opposition, or similar action alleging the invalidity, unenforceability or non-infringement of any of the Patents of the other Party (collectively, "**Infringement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.2** *Rights to Initiate Proceedings*. As between the Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Prevail shall have (i) the sole right, but not the obligation, to initiate any proceedings or take other appropriate actions against an Infringement, or defend against any challenge, of Prevail IP, (ii) the first right, but not the obligation, to initiate any proceedings or take other appropriate actions against an Infringement, or defend against any challenge, of Licensed Product IP, and (iii) the first right, but not the obligation, to initiate any proceedings or take other appropriate actions against Infringement, or defend against any challenge, of Joint IP to the extent the foregoing is competitive with a Licensed Product, in each case (i) through (iii), at Prevail's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Scribe shall have (i) the secondary right, but not the obligation, to initiate any proceedings or take other appropriate actions against an Infringement, or defend against any challenge, of Licensed Product IP, (ii) the secondary right, but not the obligation, to initiate any proceedings or take other appropriate actions against an Infringement, or defend against any challenge, of Joint IP to the extent the foregoing is competitive with a Licensed Product, and (iii) other than as set forth in this <u>Section</u> <u>9.10.2</u>, the sole right, but not the obligation, to initiate any proceedings or take other appropriate actions against an Infringement, or defend against any challenge, of Scribe IP, in each case (i) through (iii), at Scribe's sole cost and expense.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.3** *Scribe's Secondary Right with Respect to Licensed Product IP and Joint IP*. If Prevail fails to institute or prosecute an Infringement, or defend against any challenge, in each case as set forth in <u>Section</u> <u>9.10.2(a)(ii)</u> or <u>(iii)</u>, within a period of [\*] after the first notice of the applicable Infringement under <u>Section</u> <u>9.9.1</u>, then Scribe may, upon written notice to Prevail, institute, prosecute and control such Infringement, or defend against such challenge, at its sole cost and expense using counsel of its choice, so long as Prevail's election not to institute or prosecute such Infringement is not based upon a reasonable strategic decision that Prevail has made in good faith for the benefit of the Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.4** *Cooperation*. At the request and expense of the Party bringing an action under this <u>Section</u> <u>9.10.4</u>, the other Party shall provide reasonable assistance in connection therewith, including by executing reasonably appropriate documents, cooperating in discovery and joining as a party to the action if required by Applicable Law to pursue such action. In connection with any such enforcement action, the Party bringing such action shall not enter into any settlement admitting the invalidity or non-infringement of, or otherwise impairing the other Party's rights in the applicable Patents without the prior written consent of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.5** *Settlement; Recovery*. Unless otherwise set forth herein, the controlling Party shall have the right to settle any Infringement pursuant to this <u>Section</u> <u>9.10</u>; *<u>provided</u>*, that neither Party shall have the right to settle any such action in a manner that imposes any liability on, or involves any admission by, the other Party, without the express written consent of such other Party (which consent shall not be unreasonably withheld, conditioned, or delayed). Any recovery realized as a result of any Infringement described in this <u>Section</u> <u>9.10</u> (whether by way of settlement or otherwise) shall be first allocated to reimburse the Parties for their costs and expenses in making such recovery, which amounts shall be allocated pro rata if insufficient to cover the totality of such expenses. Any remainder after such reimbursement is made (a) in the case of Prevail as the enforcing Party, such remainder shall be retained by Prevail; *<u>provided</u>*, that, to the extent that any award or settlement amount (whether by judgment or otherwise) is based on loss of sales or profits with respect to a Licensed Product attributable to the infringement of Scribe IP or Joint IP, such amount shall be treated as Net Sales in the calendar year in which the amount is actually received and subject to the royalty payments under <u>Section</u> <u>8.4</u>, and (b) in the case of Scribe as the enforcing Party, such remainder shall be retained by Scribe; *<u>provided</u>*, that, to the extent that any award or settlement amount (whether by judgment or otherwise) is based on loss of sales or profits with respect to a Licensed Product attributable to the infringement of Scribe IP or Joint IP, such amount shall be shared equally between Scribe and Prevail. For clarity, only the Party controlling an action shall be considered the enforcing Party, and in no event shall a joining party to such action be considered an enforcing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.6** *Biosimilar Applications*. Notwithstanding the foregoing, Prevail shall have the first right, but not the obligation, to prosecute and manage any litigation with respect to Generic/Biosimilar Equivalents and any proceedings associated therewith, including any invalidity, unpatentability or unenforceability challenges, oppositions and post-grant proceedings in connection therewith. If either Party receives a notice or a copy of an application submitted to

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the FDA or its foreign counterpart for a Generic/Biosimilar Equivalent (a "**Biosimilar Application**") for which a Licensed Product is a "reference product" as such term is used in Section 351(i)(4) of the PHSA, or an equivalent under its foreign counterpart, whether or not such notice or copy is provided under any Applicable Laws, either Party shall, [\*], notify and provide the other Party copies of such notice or communication to the extent permitted by Applicable Law. Prevail shall carry out any such rights and responsibilities of the "reference product sponsor," as defined in Section 351(l)(1)(A) of the PHSA, for purposes of such Biosimilar Application, including bringing an action for patent infringement under Section 351(l)(6) of the PHSA based on any Patents Covering the Generic/Biosimilar Equivalent. If requested by Prevail, Scribe shall seek to obtain access to the Biosimilar Application and related confidential information, including in accordance with Section 351(l)(1)(B)(iii) of the PHSA, if applicable. If permitted pursuant to Applicable Law, upon Prevail's request, Scribe shall assist Prevail in identifying and listing any and all relevant Scribe Patents pursuant to Section 351(l)(1)(3)(A) or Section 351(l)(7) of the PHSA, in preparing, pursuant to section 351(l)(3)(C) of the PHSA, a detailed statement regarding the reference product sponsor's opinion that any such patent will be infringed and a response to the statement by the filer of the Biosimilar Application concerning validity and enforceability, in negotiating with the filer of the Biosimilar Application pursuant to Section 351(l)(4) of the PHSA, and in selecting Patents for and conducting litigation pursuant to Section 351(l)(5), Section 351(l)(6), and Section 351(l)(9) of the PHSA, to the extent applicable, and shall cooperate with Prevail in responding to relevant communications with respect to such lists and statements from the filer of the Biosimilar Application. Upon Prevail's request, Scribe shall assist in seeking an injunction against any commercial marketing by the filer of a Biosimilar Application as permitted pursuant to Section 351(l)(8)(B) of the PHSA or in filing an action for infringement against the filer of such Biosimilar Application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.11. Defense and Settlement of Third Party Claims**. Each Party shall promptly notify the other in writing of: (a) any allegation by a Third Party that the activity of either of the Parties pursuant to this Agreement infringes or may infringe the Intellectual Property Rights of such Third Party; or (b) any declaratory judgment action that is brought naming either Party as a defendant and alleging invalidity of any of the Prevail Patents or Scribe Patents. Scribe has the sole right to control any defense of any such claim described in (a) involving alleged infringement of Third Party rights by Scribe's activities at its own expense and by counsel of its own choice, and Prevail may, at its own expense, be represented in any such action by counsel of its own choice. Prevail has the sole right to control any defense of any such claim described in (a) involving alleged infringement of Third Party rights by Prevail's activities at its own expense and by counsel of its own choice, and Scribe may, at its own expense, be represented in any such action by counsel of its own choice. Neither Party may settle any patent infringement litigation under this <u>Section</u> <u>9.11</u> in a manner that admits the invalidity or unenforceability of the other Party's Patents or imposes on the other Party restrictions or obligations or other liabilities, without the written consent of such other Party, which consent shall not be unreasonably withheld, conditioned, or delayed. Nothing in this <u>Section</u> <u>9.11</u> will limit any indemnification rights or obligations of a Party under <u>Section</u> <u>11.1</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12. Patent Extension**. Prevail shall have the sole right, and Scribe shall have no right, to determine which Patent claiming or Covering a Licensed Product should be extended, and thereafter Prevail may obtain patent term restorations, supplemental protection certificates or their equivalents, and other forms of patent term extensions for a given Licensed Product with respect to any applicable Scribe Patent or Prevail Patent in any country or region where applicable. Prevail shall have final decision-making authority with respect to decisions regarding patent term extensions with respect to Prevail Patents; *<u>provided</u>* that with respect to Licensed Patents that are not within the Licensed Product IP, Prevail shall have the right to obtain patent term restorations, supplemental protection certificates or their equivalents, and other forms of patent term extensions upon written consent from Scribe, which shall be at Scribe's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.13. CREATE Act.** It is the Parties' intention that this Agreement is a "joint research agreement" as that phrase is defined in 35 U.S.C. § 102(c) as amended by the Cooperative Research and Technology Enhancement (CREATE) Act, including the provisions of 35 U.S.C. § 102(b)(2)(c). The Parties agree to cooperate and to take reasonable actions to maximize the protections available for the Licensed Products under such safe harbor provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.14. Trademarks**. Prevail shall have the right to select, and will be free, in its sole discretion, to use and to register in any trademark office in the Territory, any trademark for use with a Licensed Product (the "**Licensed Product Trademarks**"). As between the Parties, Prevail shall own all right, title and interest in and to any such Licensed Product Trademarks adopted by Prevail for use with Licensed Product, and is responsible for the registration, filing, maintenance and enforcement thereof.

**ARTICLE 10** 

**REPRESENTATIONS, WARRANTIES AND COVENANTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1. Mutual Representations and Warranties**. Each of Prevail and Scribe represent and warrant, as of the Effective Date, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1.1** it is duly organized and validly existing under the Applicable Laws of the jurisdiction of its incorporation or formation, as applicable, has full corporate, limited liability company or other power and authority, as applicable, to enter into this Agreement and to carry out the provisions hereof, and has sufficient facilities, experienced personnel or other capabilities (including via Affiliates and/or Third Parties) to enable it to perform its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1.2** it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the individual executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate, limited liability company or other action, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1.3** this Agreement is legally binding upon it and enforceable in accordance with its terms (except as the enforceability thereof may be limited by bankruptcy, bank moratorium or similar laws affecting creditors' rights generally and laws restricting the availability of equitable remedies and may be subject to general principles of equity whether or not such enforceability is considered in a proceeding at law or in equity) and the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate action and do not and will not: (a) conflict with, or constitute a default or result in a breach under, any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, or violate any Applicable Law; or (b) require any consent or approval of its stockholders or similar.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2. Scribe Representations and Warranties**. Scribe represents, warrants and covenants to Prevail that, as of the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.1** *No Unavailable Initial Targets; Reserved Target*. As of the Effective Date, Scribe is party to no agreement (or commitment to negotiate such an agreement) that would limit its ability to license Intellectual Property Rights of Scribe under any Initial Target or the Reserved Target to Prevail, including on an exclusive basis, as set forth in <u>Article 6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.2** *No Grants that Conflict with this Agreement*. Scribe and its Affiliates have not granted, and will not grant during the Term, any rights (or other encumbrances) to any Third Party under the Intellectual Property Rights of Scribe that prevent or conflict with the rights granted to Prevail hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.3** *Control over Know-How and Patents*. Scribe has Control over all Intellectual Property Rights owned by it or its Affiliates that are necessary or reasonably useful for the Exploitation of Licensed Products in the Field, as known to be contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.4** *Existing Patents*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** All Patent rights issued or subject to a pending application for issuance that are contained in the Intellectual Property Rights of Scribe, and existing and subject to the license granted to Prevail under <u>Section</u> <u>6.1</u> and <u>Section</u> <u>6.2</u> as of the Effective Date are listed on <u>Exhibit</u> <u>10.2.4</u><u>(a)</u> (the "**Existing Patents**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** All Existing Patents: (i) are to the extent issued, and to Scribe's knowledge, subsisting and not invalid or unenforceable, in whole or in part, or confer a valid right to claim priority thereto; (ii) are solely and exclusively owned by, or exclusively licensed to Scribe, free of any encumbrance, lien or claim of ownership by any Third Party that would adversely affect the licenses granted to Prevail hereunder; (iii) are to the extent subject to a pending application for issuance, and to Scribe's knowledge with respect to Existing Patents that are licensed to Scribe, being diligently prosecuted in good faith in the respective patent offices in which such applications have been filed in accordance with Applicable Law and, to Scribe's knowledge, all material references, documents and information have been presented to the relevant patent office in respect of such Existing Patents to the extent required by such patent office; and (iv) are, and to Scribe's knowledge with respect to Existing Patents that are licensed to Scribe, filed and maintained in accordance with applicable Patent office rules, and all applicable fees applicable thereto have been paid on or before any final due date for payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Neither Scribe nor any of its Affiliates have taken any action that would render unpatentable (including by means of the "on-sale bar" doctrine or prior publication) any invention claimed in the Existing Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** The Existing Patents represent all Patents of Scribe and its Affiliates that relate to the Scribe Platform or exploitation thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.5** *No Third Party Agreements*. Other than the UC Berkeley License, there are no license or other agreements from Third Parties regarding the exploitation of any Intellectual Property Rights of Scribe or other Scribe materials contemplated to be provided by Scribe to Prevail hereunder, to which Scribe or its Affiliate is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.6** *Litigation and Actions Relating to Intellectual Property*. Scribe: (a) has not received any written notice of any threatened claims or litigation seeking to invalidate or otherwise challenge the Intellectual Property Rights of Scribe subject to the licenses granted to Prevail pursuant to <u>Article 6</u>; and (b) is not aware of any pending or threatened action, suit, proceeding or claim by a Third Party asserting that Scribe or any of its Affiliates is infringing or has misappropriated or otherwise is violating any Patent right, trade secret or other proprietary right of any Third Party as would reasonably be expected to impair the ability of Scribe to fulfill any of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.7** *Other Material Claims and Actions*. There are no claims, actions, or proceedings pending or, to Scribe's knowledge, threatened by any Third Party; and to Scribe's knowledge, there are no formal inquiries initiated or written notices received that may lead to the institution of any such legal proceedings; in each case (or in aggregate) against Scribe or its properties, assets or business, which if adversely decided, would, individually or in the aggregate, have a material adverse effect on, or prevent Scribe's ability to conduct the Research or to grant the licenses or rights granted to Prevail under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.8** *Assignment by Employees, Agents and Consultants*. Except with respect to Scribe has obtained from each of its current employees, consultants and contractors, in each case who perform research and development activities pursuant to this Agreement, written agreements containing obligations of confidentiality and non-use and an assignment to Scribe of all inventions (and all of such Person's rights thereto) for which Scribe or Prevail is intended to have ownership or license rights under this Agreement such that no such employee, contractor or consultant shall retain any rights to such inventions that would prevent or conflict with Prevail's rights of ownership or use of such inventions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.9** *No Government Funding*. The inventions claimed or covered by the Existing Patents (other than UCB-Licensed Patents) (a) were not conceived, discovered, developed or otherwise made in connection with any research activities funded, in whole or in part, by, or otherwise using the resources of, any Governmental Authority (whether of the U.S., the United Kingdom, or otherwise); (b) are not a "**subject invention**" as that term is described in 35 U.S.C. Section 201(e) and (c) are not otherwise subject to the provisions of the Patent and Trademark Law Amendments Act of 1980, as amended, codified at 35 U.S.C. §§ 200-212, as amended, as well as any regulations promulgated pursuant thereto, including in 37 C.F.R. Part 401 (the "**Bayh-Dole Act**"). Scribe and its Affiliates have complied with the applicable provisions of the Bayh-Dole Act, in a manner that protects and preserves Scribe's right, title and interest in such inventions to the maximum extent permitted by law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3. Mutual Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3.1** *Debarment*. Each Party represents, warrants and covenants to the other Party that neither it nor its officers, employees, agents, consultants or any other person used by such Party in the performance of the respective research and development activities under this Agreement is: (a) debarred or disqualified under the FD&C Act; (b) listed by any government or regulatory agencies as ineligible to participate in any government healthcare programs or government procurement or non-procurement programs (as that term is defined in 42 U.S.C. § 1320a-7b(f)), or excluded, debarred, suspended or otherwise made ineligible to participate in any such program; or (c) convicted of a criminal offense related to the provision of healthcare items or services, or is subject to any such pending action. Each Party will not during the Term knowingly, employ or use, directly or indirectly, including through Affiliates the services of any such person. In the event that either Party becomes aware of the debarment or disqualification or threatened debarment or disqualification of any person providing services to such Party, directly or indirectly, including through Affiliates or, in the case of Prevail, Sublicensees, which directly or indirectly relate to activities contemplated by this Agreement, such Party shall promptly notify the other Party in writing and such Party shall cease employing, contracting with, or retaining any such person to perform any such services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3.2** *Protection of Information*. Each Party agrees that during the Term of this Agreement, and without limiting its obligations hereunder, each Party shall implement technical and organizational measures to protect all information under the Agreement that are appropriate and that provide no less protection than both (a) good industry practice (*i.e.*, in accordance with ISO 27001 and/or similar industry standards) and (b) such Party's measures to protect its own information of a similar nature or importance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4. Compliance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.1** *Compliance with this Agreement*. Each of the Parties shall, and shall cause their respective Affiliates to, comply in all material respects with the terms of this Agreement and Scribe will comply with the UC Berkeley License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.2** *Compliance with Applicable Laws*. Each Party covenants to the other that in the performance of its obligations under this Agreement, such Party shall comply with, and shall cause its Affiliates and its Affiliates' employees and contractors to comply, with all Applicable Laws. No Party shall, or shall be required to, undertake any activity under or in connection with this Agreement which violates, or which it believes, in good faith, may violate, any Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.3** *Compliance with Party-Specific Regulations*. In carrying out their respective obligations under this Agreement, the Parties agree to cooperate with each other as may reasonably be required to help ensure that each is able to fully meet its obligations with respect to all judgments, decrees, orders or similar decisions issued by any Governmental Authority specific to a Party, and all consent decrees, corporate integrity agreements, or other agreements or undertakings of any kind by a Party with any Governmental Authority, in each case as the same may be in effect from time to time and applicable to a Party's activities contemplated by this Agreement (the "**Party-Specific Regulations**"). Each Party shall be responsible for providing the other Party with any Party-Specific Regulations applicable to the other Party, including any updates to such Party-Specific Regulations, and the covenant in the preceding sentence shall only apply to the extent such Party-Specific Regulations and any updates thereto have been provided to the other Party. Neither Party shall be obligated to pursue any course of conduct that would result

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in such Party being in material breach of any Party-Specific Regulation applicable to it; *<u>provided</u>*<u> </u>that in the event that a Party refuses to fulfill its obligations under this Agreement in any material respect on such basis, the other Party shall have the right to terminate this Agreement in accordance with <u>Section</u> <u>13.2</u>; however, under such circumstances, such termination, including the applicable effects of such termination set forth in <u>Sections</u> <u>13.5</u> and <u>13.6</u>, shall be the sole remedy for such terminating Party and such terminating Party shall not be entitled to any other remedy under law or equity. All Party-Specific Regulations are binding only in accordance with their terms and only upon the Party to which they relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.4** *Compliance with Internal Compliance Codes*. All Internal Compliance Codes shall apply only to the Party to which they relate. The Parties agree to cooperate with each other to help ensure that each Party is able to comply with the substance of its respective Internal Compliance Codes and, to the extent practicable, each Party shall operate in a manner consistent with its Internal Compliance Codes applicable to its performance under this Agreement. "**Internal Compliance Codes**," as used in this <u>Section</u> <u>10.4.4</u>, means a Party's internal policies and procedures intended to ensure that a Party complies with Applicable Laws, Party-Specific Regulations, and such Party's internal ethical, medical and similar standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.5** *Compliance with Anti-Corruption Laws*. In connection with this Agreement, the Parties shall comply with all applicable local, national, and international laws, regulations, and industry codes dealing with government procurement, conflicts of interest, corruption or bribery, including, if applicable, the U.S. Foreign Corrupt Practices Act of 1977, as amended, and any laws enacted to implement the Organisation of Economic Cooperation and Development Convention on Combating Bribery of Foreign Officials in International Business Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.6** *Compliance with Privacy Laws*. In connection with this Agreement, Scribe and its Affiliates, and any Person acting for or on its or their behalf, will comply with all Applicable Laws with respect to data protection and privacy laws with respect to the receipt, collection, compilation, use, storage, processing, sharing, safeguarding, security (technical, physical and administrative), disposal, destruction, disclosure, or transfer (including cross-border) of Personal Information, including providing any notice, obtaining any consent or prior authorization, and conducting any assessment required under Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.7** *Prohibited Conduct*. Without limiting the other obligations of the Parties set forth in this <u>Section</u> <u>10.4.7</u>, each Party covenants to the other that, as of the Effective Date and in the performance of its obligations under this Agreement through the expiration and termination of this Agreement, such Party and, to its knowledge, its Affiliates and its Affiliates' employees and contractors, in connection with the performance of their respective obligations under this Agreement, have not made, offered, given, promised to give, or authorized, and will not make, offer, give, promise to give, or authorize, any bribe, kickback, payment or transfer of anything of value, directly or indirectly through Third Parties, to any Government Official for the purpose of: (a) improperly influencing any act or decision of the Person or Government Official; (b) inducing the Person or Government Official to do or omit to do an act in violation of a lawful or otherwise required duty; (c) securing any improper advantage; or (d) inducing the Person or Government Official to improperly influence the act or decision of any organization, including any government or government instrumentality, to assist any Party in obtaining or retaining business. For the

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purpose of this <u>Section</u> <u>10.4.7</u> "**Government Official**" means: (x) any officer, employee (including physicians, hospital administrators, or other healthcare professionals), agent, representative, department, agency, de facto official, representative, corporate entity, instrumentality or subdivision of any government, military or international organization, including any ministry or department of health or any state-owned or affiliated company or hospital; (y) any candidate for political office, any political party or any official of a political party, in each case for the purpose of obtaining or retaining business for or with, or directing business to, any Person, including either Party; or (z) any Person acting in an official capacity on behalf of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.8** *Trade Sanctions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Each Party agrees to comply with all applicable trade sanctions and export control laws and regulations, including where applicable the U.S. trade sanctions administered by the U.S. Treasury Department's Office of Foreign Assets Control (31 C.F.R. Part 501 et seq.), the U.S. Export Administration Regulations (15 C.F.R. Part 734 et seq.), and European Union trade sanctions and export laws (including without limitation Council Regulation (EC) No. 428/2009 (as amended)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Each Party represents and warrants that neither such Party, its directors, executive officers, agents, nor any person having a controlling interest in such Party are (a) a person targeted by trade or financial sanctions under the laws and regulations of the United Nations, the United States, the European Union and its Member States, the United Kingdom or any other jurisdiction that is applicable to the licenses or rights granted, or activities to be performed, under this Agreement, including but not limited to persons designated on the U.S. Department of the Treasury, Office of Foreign Assets Control's List of Specially Designated Nationals and Other Blocked Persons and Consolidated Sanctions List, the U.S. State Department's Non-proliferation Sanctions Lists, the UN Financial Sanctions Lists, the EU's Consolidated List of Persons, Groups and Entities Subject to EU Financial Sanctions, and the UK HM Treasury Consolidated Lists of Financial Sanctions Targets; (b) incorporated or headquartered in, or organized under the laws of, a territory subject to comprehensive U.S. sanctions (each, a "**Sanctioned Territory**") (currently, Cuba, Iran, Crimea, North Korea and Syria, but subject to change at any time) or (c) directly or indirectly owned or controlled by such persons (together "**Restricted Person**"). Each Party further represents and warrants that it shall notify the other Party in writing immediately if such Party or any of its directors, executive officers, agents, or any person having a controlling interest in such Party becomes a Restricted Person or if such Party becomes directly or indirectly owned or controlled by one or more Restricted Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Each Party agrees that no Intellectual Property Rights licensed under this Agreement, Lead Molecules, Candidates or Licensed Products (or any components thereof) will be used, sold, transferred, or otherwise made available, directly or indirectly, to or for the benefit of a Sanctioned Territory or Restricted Person without the prior written approval from the other Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.9** *Disclaimer*. Except as otherwise expressly set forth in this <u>Article 10</u>, neither Party makes any representations or extends any warranties of any kind, either express or implied, including warranties of merchantability, quality, fitness for a particular purpose, noninfringement, or validity of patent claims. Nothing in this Agreement shall be construed as a representation made or warranty given by either Party that either Party will be successful in obtaining any Patents or that any Patents will issue based on a pending application. Without limiting the respective rights and obligations of the Parties expressly set forth herein, each Party specifically disclaims any guarantee that any Licensed Products will be successful, in whole or in part. Each Party acknowledges that the results of a Research Plan (including whether a Lead Molecule or Candidate will result from the Research Plan), as well as the development and commercial performance of any Licensed Product are inherently uncertain, and neither Party provides any assurance, representation or warranty that a Lead Molecule will be identified (or if identified will advance to a Candidate), or that a Licensed Product will be developed or commercialized.

**ARTICLE 11** 

**INDEMNIFICATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1. Indemnity**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1.1** *By Scribe*. Subject to <u>Section</u> <u>11.1.3</u>, Scribe shall defend, indemnify and hold harmless Prevail and its Affiliates, and their respective directors, officers, employees, and agents (each, a "**Prevail Indemnitee**") from and against any and all costs, fees, expenses, losses, liabilities, and damages, including reasonable legal expenses and attorneys' fees (collectively, "**Losses**") to which any Prevail Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party (a "**Claim**") to the extent such Claim and Losses arise out of: (a) the gross negligence or willful misconduct of Scribe or its Affiliates in connection with performance of its activities under this Agreement; (b) the breach of this Agreement or the representations, warranties, and covenants made hereunder by Scribe; (c) the infringement of the Intellectual Property Rights of a Third Party by the activities conducted by Scribe or its Affiliates under the Research Program; and (d) the Exploitation of any Licensed Target or Reserved Target, compound or Licensed Product by or on behalf of Scribe or its Affiliates (including from product liability and intellectual property infringement claims, but except to the extent resulting from the incorporation of Prevail IP therein), except, in each case, to the extent such Losses result from matters described in clause (a), (b), or (c) of <u>Section</u> <u>11.1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1.2** *By Prevail*. Subject to <u>Section</u> <u>11.1.3</u>, Prevail shall defend, indemnify and hold harmless Scribe, its Affiliates, and their respective directors, officers, employees and agents (each, a "**Scribe Indemnitee**") from and against any and all Losses to which any Scribe Indemnitee may become subject as a result of any Claim to the extent such Claim and Losses arise out of: (a) the gross negligence or willful misconduct of Prevail, its Affiliates, or their respective Sublicensees in connection with performance of its or their activities under this Agreement; (b) the breach of this Agreement or the representations, warranties and covenants made hereunder by Prevail; or (c) other than where such activity is performed by Scribe or its Affiliates on behalf of Prevail, its Affiliates or their respective Sublicensees, the Exploitation of any Licensed Product by or on behalf of Prevail, its Affiliates, or their respective Sublicensees (including from product liability and intellectual property infringement claims, but except to the extent resulting from the incorporation of the Intellectual Property Rights of Scribe therein); except, in each case, to the extent such Losses result from matters subject to clauses (a), (b) or (c) of Section 11.1.1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1.3** *Procedure*. A Party that intends to claim indemnification under this <u>Article 11</u> (the "**Indemnitee**") shall promptly notify the Indemnitor (the "**Indemnitor**") in writing of any Claim in respect of which the Indemnitee intends to claim such indemnification. The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement of any action with respect to a Claim shall only relieve the Indemnitor of its indemnification obligations under this <u>Article 11</u> if and to the extent the Indemnitor is actually and materially prejudiced thereby. The Indemnitor has sole control of the defense or settlement thereof. The Indemnitee shall cooperate fully with the Indemnitor and its legal representatives in the investigation of any action with respect to a Claim covered by this indemnification. The Indemnitee may participate at its expense in the Indemnitor's defense of and settlement negotiations for any Claim with counsel of the Indemnitee's own selection. The Indemnitor shall not settle any Claim without the prior written consent of the Indemnitee, not to be unreasonably withheld, conditioned or delayed. So long as the Indemnitor is actively defending the Claim in good faith, the Indemnitee shall not settle or compromise any such Claim without the prior written consent of the Indemnitor. If the Indemnitor does not assume and conduct the defense of the Claim as provided above: (a) the Indemnitee may defend against, consent to the entry of any judgment, or enter into any settlement with respect to such Claim in any manner the Indemnitee may deem reasonably appropriate (and the Indemnitee need not consult with, or obtain any consent from, the Indemnitor in connection therewith); and (b) the Indemnitor shall remain responsible to indemnify the Indemnitee as provided in this <u>Article 11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2. Insurance**. During the Term, each Party shall maintain such types and amounts of liability insurance (including self-insurance) as is normal and customary in the industry generally for similarly situated parties and adequate to cover its obligations under this Agreement, and Scribe will upon request provide Prevail with a certificate of insurance in that regard, along with any amendments and revisions thereto.

**ARTICLE 12** 

**CONFIDENTIALITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1. Confidential Proprietary Information**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1.1** *Confidential Proprietary Information*. In connection with this Agreement, each Party may disclose technical, business or other confidential information, whether prior to, on, or after the Effective Date, including: (a) any unpublished Patents; and (b) any information regarding the scientific, regulatory or business affairs or other activities of either Party (such confidential information, "**Confidential Proprietary Information**"). Without limiting the foregoing, the terms of this Agreement are the Confidential Proprietary Information of both Parties and shall be treated confidentially by each of the Parties, subject to the exceptions set forth in <u>Section</u> <u>12.1.4</u>. Without limiting the foregoing, until such time as the applicable information has become available to the public in accordance with this Agreement, Scribe agrees that the collective results of the Research Program (the "**Program Results**") are the Confidential Proprietary Information of Prevail, and shall not disclose the Program Results except pursuant to <u>Section</u> <u>12.1.4</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1.2** *Restrictions*. A Party (the "**Receiving Party**") that receives Confidential Proprietary Information from the other Party (the "**Disclosing Party**") shall keep all the Disclosing Party's Confidential Proprietary Information in confidence with the same degree of care with which the Receiving Party holds its own confidential information (but in no event less than a commercially reasonable degree of care). A Receiving Party shall not use the Disclosing Party's Confidential Proprietary Information except in connection with the performance of its obligations and exercise of its rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1.3** *Exceptions*. The obligations of confidentiality and restriction on use of Confidential Proprietary Information under <u>Section</u> <u>12.1.2</u> do not apply to any information that the Receiving Party can prove by competent written evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party, generally known or available to the public; (b) is known by the Receiving Party at the time of receiving such information, other than by previous disclosure of the Disclosing Party, or its Affiliates, employees, agents, consultants, or contractors; (c) is hereafter furnished to the Receiving Party without restriction by a Third Party who has no obligation of confidentiality or limitations on use with respect thereto, as a matter of right; or (d) is independently discovered or developed by the Receiving Party without the use of or reference to Confidential Proprietary Information belonging to the Disclosing Party. Specific information shall not be deemed to be within any of the foregoing exclusions merely because it is embraced by more general information falling within those exclusions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1.4** *Permitted Disclosures*. The Receiving Party may disclose Confidential Proprietary Information belonging to the Disclosing Party as expressly permitted by this Agreement or if and to the extent such disclosure is reasonably necessary in the following instances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** made by or on behalf of the Receiving Party to a Patent authority as may be reasonably necessary or useful for purposes of Prosecution and Maintenance of Patents as permitted by this Agreement; *<u>provided</u>*, that neither Party shall file a patent application that discloses technology that is solely owned by the other Party pursuant to this Agreement without the prior written consent of the owning Party (such consent not to be unreasonably withheld, conditioned or delayed);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** made by or on behalf of the Receiving Party to Regulatory Authorities as required in connection with any Regulatory Filings for a product that such Party has a license or right to develop in a given country or jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** made by or on behalf of the Receiving Party as may be reasonably necessary for prosecuting or defending litigation as permitted by 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;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** made by or on behalf of the Receiving Party for the purpose of complying with a valid order of a court of competent jurisdiction or other Governmental Authority of competent jurisdiction or, if in the opinion of the Receiving Party's legal counsel, such disclosure is otherwise required by Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** made by or on behalf of the Receiving Party where such disclosure is required by a Regulatory Authority (including in filings with the Securities and Exchange Commission or other agency) of certain material developments or material information generated under this Agreement;

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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;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** made by or on behalf of the Receiving Party as of the Effective Date in response to a valid request by a U.S., state, foreign, provincial, or local tax authority, in which case either Party may disclose, a copy of this Agreement (including any Exhibits, Appendices, ancillary agreements, and amendments hereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** made by the Receiving Party to its and its Affiliates' employees, consultants, contractors and agents, and to Sublicensees (in the case of Prevail), in each case on a need-to-know basis (as reasonably determined by the Receiving Party) in connection with the Exploitation of Licensed Products or Terminated Products or Targets (if applicable) in the Field in the Territory, in each case under written obligations of confidentiality and non-use at least as stringent as those herein; 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;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** made to an investor, acquirer or merger partner *<u>provided</u>* that: (i) such Third Party (or group of Third Parties) and the Receiving Party have executed a bona fide written term sheet, letter of intent, expression of interest or other similar agreement forming the basis for future negotiations, (ii) such Third Party (or group of Third Parties) is bound by an obligation of confidentiality and non-use no less stringent than those contained in this Agreement, (iii) the Receiving Party shall be permitted to disclose only (A) a high level summary of the progress made under this Agreement, and (B) a version of this Agreement which has been redacted to the satisfaction of the other Party (with such assent not to be unreasonably withheld); *<u>provided</u>* that with respect to a reasonably credible acquirer or merger partner, the Receiving Party may disclose to such potential acquirer or merger partner an unredacted version of this Agreement following a bona fide exchange of a draft of the corresponding purchase or merger agreement, and (iv) to the extent any such Third Party (or, a Third Party included in such group or prospective investors, acquirers or merger partners) is Exploiting a Similar Product or Similar Program, then the terms of <u>Section</u> <u>15.8.4</u> shall apply.

If a Party is required to make a disclosure of the other Party's Confidential Proprietary Information pursuant to <u>Section</u> <u>12.1.4(c)</u> or <u>Section</u> <u>12.1.4(d)</u>, it shall, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use efforts to secure confidential treatment of such Confidential Proprietary Information at least as diligent as such Party would use to protect its own Confidential Proprietary Information, but in no event less than reasonable efforts. Any information disclosed pursuant to this <u>Section</u> <u>12.1.4</u> remains Confidential Proprietary Information and subject to the restrictions set forth in this Agreement, including the foregoing provisions of this <u>Article 12</u>. Notwithstanding anything to the contrary set forth herein, no summary, abstract, compendium, survey, overview, notes or other report delivered by a Party pursuant to an obligation set forth under this Agreement, or otherwise shared between the Parties in connection with discussions of the JSC or its subcommittees, shall be disclosed by a Party to a Third Party without the prior written consent of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2. Public Domain Information and Residual Knowledge**. Nothing in this Agreement shall prevent a Party from using any information that is in the public domain. A Party shall also not be restricted under, and shall not be in breach of, this Agreement from using, within or outside this Agreement and for any purpose, any general knowledge, skill, and expertise acquired by its employees (or its Affiliates' employees) in their performance of this Agreement

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("**Residuals**") solely to the extent such Residuals shall have been retained in the unaided memory (without intentional memorization) of such employees in intangible form and without use by the Party or such employees of tangible copies of any Confidential Proprietary Information of the other Party; *<u>provided</u>* that this provision will not be deemed in any event to provide any right to infringe, or to grant any license to or under, the intellectual property rights of the other Party or of Third Parties that have licensed or provided materials to the other Party; provided, further, that a Party's use of such Residuals is on an "as is, where is" basis, with all faults and all representations and warranties disclaimed and at such Party's sole risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.3. Disclosure of Agreement**. Notwithstanding the foregoing, either Party or its Affiliates may disclose the relevant terms of this Agreement: (a) to the extent required or advisable to comply with the rules and regulations promulgated by the U.S. Securities and Exchange Commission or any equivalent governmental agency in any country in the Territory, *<u>provided</u>* that such Party shall submit a confidential treatment request in connection with such disclosure and shall submit with such confidential treatment request only such redacted form of this Agreement, which redacted form of this Agreement shall be provided to the other Party for review and comment and which comments shall be considered in good faith by the disclosing Party; (b) upon request from a Governmental Authority (such as a tax authority), provided the disclosing Party uses reasonable efforts to ensure the Governmental Authority maintains such terms as confidential; (c) to applicable licensors, to the extent necessary to comply with the terms of any Third Party license agreement, the rights under which are sublicensed to the other Party under this Agreement; and (d) to the extent necessary to perform obligations or exercise rights under this Agreement, to any sublicensee, collaborator or potential sublicensee or potential collaborator of such Party, *<u>provided</u>* that any sublicensee, collaborator or potential sublicensee or collaborator agree in writing to be bound by obligations of confidentiality and non-use no less protective of the Disclosing Party than those set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.4. Survival**. Each Party's obligations under this <u>Section</u> <u>12.4</u> (other than <u>Section</u> <u>12.2</u>) shall apply during the Term and continue for seven (7) years thereafter with respect to Confidential Proprietary Information, except for information which is a "trade secret," for which each Party's obligations under <u>Section</u> <u>12.1</u> shall remain in place as long as the applicable Confidential Proprietary Information retains its status as a trade secret. <u>Section</u> <u>12.2</u> shall apply during the Term and shall survive any expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.5. Publicity**. Neither Party shall issue any press release or public statement disclosing information relating to this Agreement or the transactions contemplated hereby or the terms hereof without the prior written consent of the other Party, not to be unreasonably withheld, conditioned, or delayed; *<u>provided</u>* however, that neither Party will be prevented from complying with any duty of disclosure it may have pursuant to Applicable Laws or pursuant to the rules of any recognized stock exchange or quotation system subject to the restrictions set forth in <u>Sections 12.1.4</u> and <u>12.3</u>. If either Party desires to issue a press release or other public statement disclosing information relating to this Agreement or the transactions contemplated hereby or the terms hereof, the issuing Party will provide the other Party with a copy of the proposed press release or public statement. The issuing Party shall provide [\*] for the Receiving Party to provide any comments on such proposed press release or public statement. If the reviewing Party provides any comments, the Parties shall consult with one another on such proposed press release or public statement and work in good faith to prepare a mutually acceptable press release or public statement. Each Party may repeat any information relating to this Agreement that has already been publicly disclosed in accordance with this <u>Section</u> <u>12.5</u>, provided such information continues as of such time to be accurate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.6. Publication**. Prevail shall be entitled to issue scientific publications and make presentations with respect to the Lead Molecule, Candidate and Licensed Products, and their testing in accordance with Prevail's internal guidelines without approval by Scribe, and Prevail shall be in control of any publications or scientific presentations regarding the Licensed Products or their testing subject to this <u>Section</u> <u>12.6</u>. Scribe shall provide [\*] for Prevail to review any scientific publications regarding a Lead Molecule, Candidate or Licensed Products and shall not issue without Prevail's prior written consent.

**ARTICLE 13** 

**TERM & TERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.1. Term**. This Agreement commences on the Effective Date and, unless terminated earlier as provided in this <u>Article 13</u>, shall continue on a Licensed Product-by-Licensed Product basis until the later of (a) expiration of the last Royalty Term in the Territory for such Licensed Product, or (b) expiration of the Cost-Sharing Term (the "**Term**"). Upon expiration (but not earlier termination) of this Agreement with respect to a given Program and a given country, the licenses granted by Scribe to Prevail under <u>Section</u> <u>6.1</u> for all Licensed Products corresponding to such Program in such country shall continue in full force and effect on an exclusive basis and shall become fully paid, royalty-free, perpetual, and irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2. Termination for Material Breach**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2.1** *Termination*. Either Party may terminate this Agreement upon written notice to the other Party if such other Party materially breaches its obligations under this Agreement and, after receiving written notice from the non-breaching Party identifying such material breach in reasonable detail, fails to cure such material breach within [\*] from the date of such notice; *<u>provided</u>* that if such non-payment related breach is not reasonably capable of cure within such [\*] period, the breaching Party may submit, prior to the end of such [\*] period, a reasonable plan to cure the breach within an additional [\*], in which case the other Party may not terminate this Agreement for so long as the breaching Party is using Commercially Reasonable Efforts to implement such cure plan within such additional [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2.2** *Dispute*. If the alleged breaching Party disputes in good faith the existence or materiality of a breach specified in a notice provided by the other Party in accordance with <u>Section</u> <u>13.2.1</u>, and such alleged breaching Party provides the other Party notice of such dispute within such [\*] period, then the non-breaching Party may not terminate this Agreement under <u>Section</u> <u>13.2.1</u> unless and until it has been finally determined pursuant to <u>Article 14</u> that the alleged breaching Party has materially breached this Agreement and such Party fails to cure such breach within [\*] following such court's decision. During the pendency of such dispute, all of the terms and conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their respective obligations hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2.3** *Prevail Option to Continue*. In the case where Prevail is entitled to terminate this Agreement in accordance with <u>Section</u> <u>13.2.1</u> (and subject to the procedure in <u>Section</u> <u>13.2.2</u> in the case of a dispute as to the existence or materiality of a breach) in response to Scribe's uncured breach of <u>Section</u> <u>6.1</u>, <u>Section</u> <u>7.1</u> (excluding for clarity <u>Section</u> <u>7.1.1</u>), <u>Section</u> <u>7.2</u>, <u>Section</u> <u>7.3</u>, or an intentional disclosure by Scribe of Prevail's Confidential Information in violation of <u>Section</u> <u>12.1</u>, Prevail may instead not terminate this Agreement and elect, as Prevail's sole monetary remedy for such breach, to reduce all current and future amounts owed to Scribe under <u>Article 8</u> (excluding amounts owed under <u>Section</u> <u>8.5</u>) with respect to the affected Licensed Products by 50% (without limiting Prevail's rights with respect to <u>Section</u> <u>8.4.2</u> but subject to <u>Section</u> <u>8.4.2(d))</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3. Termination by Prevail**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.1** *Partial Termination*. Prevail may, at any time in its sole discretion and without cause, terminate this Agreement on a Research Plan-by-Research Plan, Licensed Target-by-Licensed Target or Licensed Product-by-Licensed Product basis upon [\*] prior written notice to Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.2** *Entire Agreement*. Prevail may, in its sole discretion, terminate this Agreement in its entirety at any time and without cause upon [\*] prior written notice to Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.4. Termination by Scribe**. If Prevail or its Affiliate or Sublicensee directly or indirectly (whether alone, or in concert with or for the benefit of any Third Party) challenges, opposes, seeks to invalidate or render void or unenforceable a Licensed Patent, through a declaratory judgment, or support for a post grant review or *inter partes* review, or any other similar action or proceeding (except to the extent required by Applicable Law, regulation, court order or *bona fide* judicial process) then, Scribe may terminate this Agreement in-part solely with respect to such Licensed Patent. Notwithstanding the foregoing, Scribe may not exercise its termination rights under this <u>Section</u> <u>13.4</u> if: (a) Prevail or its Affiliate withdraws (or causes to be withdrawn) the applicable challenge within [\*] after being requested to do so by Scribe in writing (which notice must be provided to Prevail prior to any exercise of Scribe's rights under this <u>Section</u> <u>13.4</u>); or (b) such challenge constitutes a defense or other validity, enforceability, or non-infringement challenge, whether the same action or in any other agency or forum of competent jurisdiction, advanced by Prevail or any of its Affiliates in response to any claim or action brought in the first instance by or on behalf of Scribe or any of its Affiliates with respect to a Licensed Patent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.5. Effects of Termination**. Upon any termination of this Agreement in its entirety or with respect to a Licensed Target or Licensed Product, the provisions of this <u>Section</u> <u>13.5</u> will apply, *<u>provided</u>* that if this Agreement is terminated only with respect to specified Licensed Targets or Licensed Products ("**Terminated Products or Targets**") and not in its entirety, then the following will apply to such Terminated Products or Targets only, and if this Agreement is terminated in its entirety, then all Licensed Targets or Licensed Products will be deemed Terminated Products or Targets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.5.1** *Termination of Licenses*. All licenses for Terminated Products or Targets granted by Scribe under <u>Article 6</u> (and if applicable, Prevail's license to Scribe under <u>Section</u> <u>6.2</u>) and all obligations under <u>Article 7</u> shall terminate automatically as of the effective date of termination; and the Program Results (other than Program Results specifically related to Prevail's proprietary delivery technologies) shall thereafter be deemed Scribe's Confidential Proprietary Information, *<u>provided</u>* that, if Prevail (or its Affiliates or Sublicensees) has inventory of usable Licensed Product(s) as of the effective date of termination, then Prevail (and its Affiliates and Sublicensees) may continue to sell off such inventory of Licensed Products in the Field in the Territory (and fulfill customer orders therefor, including to Manufacture Licensed Products for customer orders placed prior to the effective date of termination) until the earlier to occur of [\*] after the effective date of termination and the date on which Prevail (or its Affiliates or Sublicensees) no longer has such inventory of Licensed Product(s) and shall pay Scribe any applicable payments due based on such sales. Any permitted sublicense granted by Prevail or its Affiliate to a Third Party under the licenses granted to Prevail under this Agreement shall survive the termination of this Agreement. If permitted under such a surviving sublicense, effective upon termination of this Agreement, such sublicense shall become a direct license from Scribe to such Sublicensee, *<u>provided</u>*, that, if assignment of the sublicense or such conversion of the sublicense to a direct license is not permitted under the applicable sublicense, Prevail shall be entitled to retain its right to payment thereunder and shall remain liable for royalties under <u>Section</u> <u>8.4.1</u> of this Agreement with respect to sales by such Sublicensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.5.2** *Destruction of Confidential Proprietary Information*. Each Receiving Party shall destroy (at the Disclosing Party's written request) all such Confidential Proprietary Information of the Receiving Party in its possession as of the effective date of expiration or termination (with the exception of one copy of such Confidential Proprietary Information, which may be retained by the legal department of the Receiving Party to confirm compliance with the non-use and non-disclosure provisions of this Agreement), and any Confidential Proprietary Information of the Disclosing Party contained in its laboratory notebooks or databases, *<u>provided</u>* that each Receiving Party may retain and continue to use such Confidential Proprietary Information of the Disclosing Party to the extent necessary to exercise any surviving rights, licenses or obligations under this Agreement. Notwithstanding the foregoing, a Receiving Party shall not be required to destroy any computer files created during automatic system back up that are subsequently stored securely by it and not readily accessible to its employees, consultants, or others who received the Disclosing Party's Confidential Proprietary Information under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.6. Survival**. Expiration or termination of this Agreement shall not relieve the Parties of any obligation or right accruing prior to such expiration or termination. Except as set forth below or elsewhere in this Agreement, the obligations and rights of the Parties under the following provisions of this Agreement shall survive expiration or termination of this Agreement: <u>Section</u> <u>1</u>, <u>Section</u> <u>4.3</u>, <u>Section</u> <u>8.4.4</u>, <u>Section</u> <u>8.4.5</u>, <u>Section</u> <u>8.7</u>, <u>Section</u> <u>8.8</u>, <u>Section</u> <u>8.9</u>, <u>Section</u> <u>8.10</u> (in each case with respect to those Sections referenced in <u>Article 8</u>, solely with respect to amounts accrued or incurred during the Term), <u>Section</u> <u>8.11</u>, <u>Section</u> <u>8.12</u>, <u>Sections</u><u> </u><u>9.1</u> through <u>9.6</u> (in each case, solely with respect to IP Generated during the Term), <u>Sections 9.9</u> through <u>9.12</u>, <u>Section</u> <u>9.14</u>, <u>Article 11</u>, <u>Article 12</u>, <u>Section</u> <u>13.5</u>, <u>Section</u> <u>13.6</u>, and <u>Article 14</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.7. Bankruptcy Code**. If this Agreement is rejected or disclaimed by a Party as a debtor under Section 365 of the United States Bankruptcy Code or under any similar provisions in the bankruptcy, insolvency, reorganization or debtor relief laws of another jurisdiction (collectively, the "**Code**"), then, notwithstanding anything else in this Agreement to the contrary, all licenses and rights to licenses granted under or pursuant to this Agreement by the Party in bankruptcy to the other Party are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Code (or similar provision in the bankruptcy laws of the jurisdiction), licenses of rights to "intellectual property" as defined under Section 101(35A) of the Code (or similar provision in the bankruptcy laws of another applicable jurisdiction). The Parties agree that a Party that is a licensee of rights under this Agreement shall retain and may fully exercise all of its rights and elections under the Code, and that upon commencement of a bankruptcy proceeding by or against a Party under the Code, the other Party shall be entitled to a complete duplicate of, or complete access to (as such other Party deems appropriate), any such intellectual property and all embodiments of such intellectual property, if not already in such other Party's possession, shall be promptly delivered to such other Party: (a) upon any such commencement of a bankruptcy proceeding upon written request therefor by such other Party, unless the bankrupt Party elects to continue to perform all of its obligations under this Agreement; or (b) if not delivered under the foregoing subclause (a), upon the rejection of this Agreement by or on behalf of the bankrupt Party upon written request therefor by the other Party. The foregoing provisions of this <u>Section</u> <u>13.7</u> are without prejudice to any rights a Party may have arising under the Code.

**ARTICLE 14** 

**GOVERNING LAW; DISPUTE RESOLUTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.1. Governing Law**. This Agreement is governed by and will be construed in accordance with the laws of the State of New York, without reference to its conflict of laws principles. The United Nations Convention of International Contracts on the Sale of Goods (the Vienna Convention) does not apply to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.2. Disputes**. The Parties recognize that controversies or claims arising out of, relating to, or in connection with this Agreement may arise from time to time. It is the objective of the Parties to establish procedures to facilitate the resolution of disputes in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this objective, the Parties shall follow the procedures set forth in this <u>Article 14</u> to resolve any dispute. If any dispute, claim or controversy of any nature arising out of or relating to this Agreement, including any action or claim based on tort, contract or statute, or concerning the interpretation, effect, termination, validity, performance or breach of this Agreement (each, a "**Dispute**"), arises between the Parties, either Party may refer the Dispute to executive officers of each Party for resolution [\*] of a written request by either Party to the other Party. Each Party, [\*] after a Party has received such written request from the other Party to so refer such Dispute, shall notify the other Party in writing of the Executive Officer to whom such Dispute is referred, and such executive officers shall meet and seek to resolve such dispute in good faith ("**Escalation**"). If, after an additional [\*] after the notice of Dispute, such executive officers taking part in such Escalation have not succeeded in negotiating a resolution of the Dispute, and a Party wishes to pursue the matter further, such Party may seek to resolve the Dispute in any federal court having jurisdiction thereof located in New York, New York as further described in <u>Section</u> <u>14.3</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.3. Litigation; Equitable Relief**. The Federal courts located in New York, New York shall have exclusive jurisdiction over, and shall be the exclusive venue for resolution of, any Dispute not resolved through the informal dispute-resolution procedures described above. If, [\*] following a notice by either Party to the other that it does not believe the Dispute can be resolved through the executive officers, neither Party has commenced proceedings seeking to resolve such Dispute in any federal court having jurisdiction, then such Dispute and all related rights, demands, claims, actions, causes of action, suits, proceedings and Losses of every kind and nature shall be deemed to have been irrevocably waived and released, to the fullest extent permitted under Applicable Laws. Either Party may, at any time and without waiving any remedy under this Agreement, seek from any court having jurisdiction any temporary injunctive or provisional relief necessary to protect the rights or property of that Party. Any final judgment resolving a Dispute may be enforced by either Party in any court having appropriate jurisdiction. Notwithstanding the foregoing, any challenge to a Patent (including, without limitation validity, enforceability, or otherwise) may be brought before the U.S. Patent and Trademark Office or similar foreign body.

**ARTICLE 15** 

**MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.1. Entire Agreement; Amendment**. This Agreement, including the Exhibits hereto, sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto with respect to the subject matter hereof and supersedes, as of the Effective Date, all prior and contemporaneous agreements and understandings between the Parties with respect to the subject matter hereof, including the Confidentiality Agreement. The foregoing may not be interpreted as a waiver of any remedies available to either Party as a result of any breach, prior to the Effective Date, by the other Party of its obligations under the Confidentiality Agreement. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.2. Limitation of Liability**. Neither Party may recover from the other Party any special, incidental, consequential or punitive damages in connection with this Agreement, regardless of any notice of the possibility of such damages; *<u>provided</u>*, however, that this <u>Section</u> <u>15.2</u> shall not be construed to limit either party's indemnification obligations under <u>Article 11</u>, either party's liability for breach of its exclusivity obligations under <u>Article 7</u> or confidentiality obligations under <u>Article 12</u> or liability of a party for its infringement or misappropriation of any intellectual property rights or for a party's gross negligence, willful misconduct or fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.4. Notice**. Any notice required or permitted to be given by this Agreement must be in writing, in English. Any and all notices or other communications or deliveries required or permitted to be provided hereunder must be in writing and will be deemed given and effective if: (a) delivered by hand or by overnight courier with tracking capabilities; (b) mailed postage prepaid by first class, registered, or certified mail; or (c) delivered by electronic mail followed by delivery via either of the methods set forth in clauses (a) and (b) of this <u>Section</u> <u>15.4</u>, in each case, addressed as set forth below unless changed by notice so given:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***If to Scribe:*** | **Scribe Therapeutics Inc.** |
|  | **1150 Marina Village Parkway** |
|  | **Alameda, CA 94501** |
|  | **<u>Attn:</u> Chief Executive Officer** |
|  | **<u>Email:</u> [\*]** |
|  | **with a copy (which shall not constitute notice) to:** |
|  | **Fenwick & West LLP** |
|  | **801 California Street** |
|  | **Mountain View, CA 94041** |
|  | **<u>Attn:</u> [\*]** |
|  | **<u>Email:</u> [\*]** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***If to Prevail:*** | **Prevail Therapeutics, Inc.** |
|  | **430 East 29th Street, Suite 1520** |
|  | **New York, NY 10016** |
|  | **<u>Attn:</u> Chief Executive Officer** |
|  | **With copies (which shall not constitute notice) to:** |
|  | **Weil, Gotshal & Manges LLP 767 Fifth Avenue** |
|  | **New York, NY 10153** |
|  | **<u>Attn</u>: [\*]** |
|  | **<u>E-mail:</u> [\*]** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.5. Severability**. If, for any reason, any part of this Agreement is adjudicated invalid, unenforceable, or illegal by a court of competent jurisdiction: (a) such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability, or legality of any remaining portions of this Agreement; (b) this Agreement shall be construed and enforced as if such invalid, unenforceable or illegal provision had never comprised a part hereof; and (c) all remaining portions will remain in full force and effect and shall not be affected by the invalid, unenforceable or illegal provision or by its severance herefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.6. Non-Use of Names**. Scribe shall not use the name, trademark, logo, or physical likeness of Prevail or its respective officers, directors or employees, or any adaptation of any of them, in any advertising, promotional or sales literature, without Prevail's prior written consent. Scribe shall require its Affiliates to comply with the foregoing. Prevail shall not use the name, trademark, logo, or physical likeness of Scribe or its officers, directors or employees, or any adaptation of any of them, in any advertising, promotional or sales literature, without Scribe's prior written consent. Prevail shall require its Affiliates and Sublicensees to comply with the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.7. Assignment.** Neither Party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent of the other, except that a Party may make such an assignment or transfer without the other Party's consent to: (a) its Affiliate, *<u>provided</u>* that such Party shall remain primarily liable for any acts or omissions of such Affiliate; or (b) to an Acquirer in connection with a Change of Control, subject to <u>Section</u> <u>15.8</u>. Any permitted assignee shall, in writing to the non-assigning Party, expressly assume performance of such assigning Party's rights and obligations. Any permitted assignment is binding on the successors of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of this <u>Section</u> 15.7 is null, void and of no legal effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.8. Scribe Change of Control**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.8.1** *Notification of Change of Control*. Scribe shall provide Prevail with written notice of any Change of Control of Scribe promptly, but no later than [\*], following the earlier of the first public announcement of such Change of Control or the execution of a definitive agreement relating to such Change of Control (if such disclosure is not prohibited under Applicable Law or by the terms of any written agreement between Scribe and any third party), which notice shall describe the nature of the transaction (i.e. whether the transaction is an acquisition of all of Scribe's equity or assets) and the identity of the Acquirer. For avoidance of doubt, a Change of Control of Scribe shall not in any way limit or alter Prevail's termination rights in accordance with <u>Section</u> <u>13.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.8.2** *Acquirer Engaged in Similar Program*. If Scribe undergoes a Change of Control and, as of the closing date of such Change of Control transaction, such Acquirer is engaged in a Similar Program, then Scribe shall implement (as of the closing of such transaction) and enforce Firewalls for the duration of the Firewall Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.8.3** *Covenant Not to Sue With Respect To Acquirer Technology*. Following any Change of Control of Scribe to an Acquirer that owns or controls any Patent rights Covering the CasX Editor incorporated into a Licensed Product, Scribe shall cause the Acquirer to refrain from filing an enforcement claim or commencing a suit, action or proceeding based upon an assertion of infringement of any such Patent rights based upon any acts by Prevail or its Affiliates or Sublicensees that constitute an exercise of their rights or their performance under this Agreement. Notwithstanding the foregoing, an Acquirer may continue to pursue a filed action against Prevail or its Affiliate which would otherwise constitute a breach of this <u>Section</u> <u>15.8.3</u> *<u>provided</u>* (a) [\*], and (b) [\*]. The obligations of this <u>Section</u> <u>15.8.3</u> apply with respect to any Acquirer, regardless of whether or not such Acquirer is engaged in a Similar Program as of the closing of such Change of Control transaction. This <u>Section</u> <u>15.8.3</u> shall not relieve Prevail of its obligation to continue paying amounts attributable to any Licensed Know-How or Licensed Patents licensed prior to the Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.8.4** *Firewalled Programs*. Promptly following the first to occur of any of the following events in relation to an Acquirer of Scribe: (a) the effective date of a Change of Control of Scribe to an Acquirer with a Similar Program, or (b) the initiation of a Similar Program by an Acquirer of Scribe (each of (a) and (b) the "**Firewall Event**"), Scribe shall implement and enforce Firewalls between Scribe's activities hereunder and the Similar Program for the duration of the applicable Firewall Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.8.5** [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.9. Waivers**. The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any other instance. Any waiver by a Party of a particular provision or right shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.10. Force Majeure**. Neither Party shall be responsible to the other for any failure or delay in performing any of its obligations under this Agreement or for other nonperformance hereunder (excluding, in each case, the obligation to make payments when due) if such delay or nonperformance is caused by strike, fire, flood, earthquake, accident, war, act of terrorism, epidemics, pandemics, quarantines*,* act of God or of the government of any country or of any local government, or by any other cause unavoidable or beyond the control of any Party hereto. In such event, such affected Party shall use Commercially Reasonable Efforts to resume performance of its obligations and will keep the other Party informed of actions related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.11. Interpretation**. The captions and headings to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement. Unless specified to the contrary, references to Articles, Sections, Appendices or Exhibits mean the particular Articles, Sections, Appendices or Exhibits to this Agreement and references to this Agreement include all Exhibits hereto. In the event of any conflict between the main body of this Agreement and any Exhibit hereto, the main body of this Agreement shall prevail. Unless context otherwise clearly requires, whenever used in this Agreement: (a) the words "include" or "including" shall be construed as incorporating, also, "but not limited to" or "without limitation"; (b) the word "day" or "year" means a calendar day or year unless otherwise specified; (c) the word "notice" means notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this Agreement; (d) the words "hereof," "herein," "hereby" and derivative or similar words refer to this Agreement as a whole and not merely to the particular provision in which such words appear; (e) the words "shall" and "will" have interchangeable meanings for purposes of this Agreement; (f) provisions that require that a Party, the Parties or a committee hereunder "agree," "consent" or "approve" or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise; (g) words of any gender include the other gender; (h) words using the singular or plural number also include the plural or singular number, respectively; (i) references to any specific law, rule or regulation, or article, section or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement law, rule or regulation thereof; (j) the phrase "non-refundable" shall not prohibit, limit or restrict either Party's right to obtain damages in connection with a breach of this Agreement; and (k) neither Party shall be deemed to be acting on behalf of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.12. Counterparts; Electronic Signatures**. This Agreement may be executed in any number of counterparts, each of which is deemed an original, but all of which together constitute one instrument. This Agreement may be executed and delivered electronically and upon such delivery such electronic signature will be deemed to have the same effect as if the original signature had been delivered to the other Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.13. Expenses**. Each Party shall pay its own costs, charges and expenses incurred in connection with the negotiation, preparation and execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.14. Further Assurances**. Prevail and Scribe hereby covenant and agree without the necessity of any further consideration, to execute, acknowledge and deliver any and all documents and take any action as may be reasonably necessary to carry out the intent and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.15. No Third Party Beneficiary Rights**. Other than Regents and HHMI, this Agreement is not intended to and shall not be construed to give any Third Party any interest or rights (including any Third Party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby, except for Prevail Indemnitees and Scribe Indemnitees as expressly provided in <u>Section</u> <u>11.1</u> or as otherwise expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.16. Construction**. The Parties hereto acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement shall be construed fairly as to all Parties hereto and not in a favor of or against any Party, regardless of which Party was generally responsible for the preparation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.17. Cumulative Remedies**. No remedy referred to in this Agreement is intended to be exclusive unless explicitly stated to be so, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.18. Extension to Affiliates**. Except as expressly set forth otherwise in this Agreement, each Party shall have the right to extend the rights and immunities granted in this Agreement to one or more of its Affiliates. All applicable terms and provisions of this Agreement, except this right to extend, shall apply to any such Affiliate to which this Agreement has been extended to the same extent as such terms and provisions apply to the Party extending such rights and immunities. For clarity, Prevail extending the rights and immunities granted hereunder shall remain primarily liable for any acts or omissions of its Affiliates.

[*signature page follows*]

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

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| | |
|:---|:---|
| **PREVAIL THERAPEUTICS, INC.** | **PREVAIL THERAPEUTICS, INC.** |
| By: | /s/ F. Hefti |
| Name: | Franz Hefti |
| Title: | CEO |
| **SCRIBE THERAPEUTICS INC.** | **SCRIBE THERAPEUTICS INC.** |
| By: | /s/ Benjamin Oakes |
| Name: | Benjamin Oakes |
| Title: | President & Chief Executive Officer |

---

**[SIGNATURE PAGE TO RESEARCH AND COLLABORATION AGREEMENT]**

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**Exhibit 1.33(b) – Agreement** 

[Intentionally omitted]

------

**Exhibit 2.4 - Research Plan** 

[Intentionally omitted]

------

**Exhibit 2.9.2 -Materials Transfer Record Form** 

[Intentionally omitted]

------

**Exhibit 10.2.4(a) - Existing Patents** 

[Intentionally omitted]

------

**Schedule 2.15(a) - Eli Lilly and Company Good Research Practices** 

[Intentionally omitted]

------

**Schedule 2.15(b) –** 

**Eli Lilly and Company Animal Care and** 

**Use Requirements for Animal Researchers and Suppliers** 

[Intentionally omitted]

------

**Schedule <u>8.5.1</u> - Scribe Cost Reporting** 

[Intentionally omitted]

## Exhibit 10.11

**Exhibit 10.11** 

*Execution Copy*

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,** 

**MARKED BY [\*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND** 

**WOULD LIKELY CAUSE COMPETITIVE HARM TO SCRIBE THERAPEUTICS INC.** 

**IF PUBLICLY DISCLOSED.** 

LICENSE AGREEMENT

This **LICENSE AGREEMENT** (this "**Agreement**") is entered into as of June 19, 2023 (the "**Effective Date**") by and between **SCRIBE THERAPEUTICS INC.**, a Delaware corporation with an address at 1150 Marina Village Parkway, Alameda, CA 94501 ("**Scribe**"), and **GENZYME CORPORATION**, a Massachusetts corporation with an address at 450 Water Street, Cambridge, MA 02141 ("**Sanofi**"). Sanofi and Scribe are each hereafter referred to individually as a "**Party**" and together as the "**Parties**."

**WHEREAS**, Scribe is a biotechnology company that has certain expertise and proprietary rights relating to a next-generation gene editing platform (CRISPR/CasXE);

**WHEREAS**, Sanofi is a pharmaceutical company engaged in the research, development, manufacturing, marketing and distribution of biopharmaceutical products;

**WHEREAS**, Scribe desires to grant, and Sanofi desires to be granted, certain licenses in connection with the Exploitation of gene editing therapies leveraging the Licensed Editing Compositions, all on the terms and conditions set forth below.

**NOW, THEREFORE**, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:

**ARTICLE 1** 

**DEFINITIONS** 

Capitalized terms used in this Agreement and the Exhibits hereto shall have the following meanings (or as defined elsewhere in this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "**Accounting Standards**" means, as applicable, U.S. GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "**Additional Engineering**" has the meaning given in Section 2.4.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "**Additional Licensed Target**" means [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "**Adjusted Floor Notice**" has the meaning given in Section 4.7.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "**Adjustment Factor**" means an amount equal to the quotient of (i) the aggregate amount that Scribe shall have paid for reimbursement of Development Costs pursuant to Section 3.9.2(c) during the Profit/Loss Share Term, *<u>divided by</u>* (ii) [\*]; and such result shall be rounded down to the nearest integer. For clarity, the Adjustment Factor may be zero (0).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "**Affiliate**" means, with respect to a Person (including a Party), any entity that, at the relevant time (whether as of the Effective Date or thereafter), directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Person, for so long as such control exists. As used in this definition, "control" means: (a) to possess, directly or indirectly, the power to direct or cause the direction of the management or policies of an entity, whether through ownership of voting securities or by contract relating to voting rights or corporate governance or otherwise; or (b) direct or indirect ownership of more than fifty percent (50%) (or such lesser percentage that is the maximum allowed to be owned by a foreign entity in a particular jurisdiction) of the voting share capital or other equity interest in such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "**Alliance Manager**" has the meaning given in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "**Applicable Laws**" means the applicable provisions of any and all federal, national, supranational, regional, state and local laws, treaties, statutes, rules, regulations, guidelines or requirements, administrative codes, guidance, ordinances, judgments, decrees, directives, injunctions, orders, or permits of or from any court, arbitrator, Regulatory Authority, Governmental Authority, data protection authority, taxing authority, national securities exchange or exchange listing organization having jurisdiction over or related to the relevant subject item that may be in effect from time to time during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "**Approved Use**" means, on a Licensed Product-by-Licensed Product and country-by-country basis, use in an indication for which all Regulatory Approvals necessary for Commercialization of such Licensed Product in such country for such indication have been obtained by Sanofi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "**Assigned IP**" has the meaning given in Section 5.2.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "**Assigning Party**" has the meaning given in Section 5.2.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "**Available**" means, with respect to a Nominated Target pursuant to Section 2.3, that (i) Scribe has not previously granted [\*] a license or other right to such target to a Third Party that would conflict with the rights to be granted to Sanofi under this Agreement (if such target were to become a Licensed Target), and (ii) Scribe does not have an active program [\*]. "**Availability**" shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "**Background IP**" means, with respect to a Party, all Intellectual Property: (a) Controlled by such Party prior to the Effective Date; or (b) conceived, developed or acquired by such Party separate and apart from the conduct of activities under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "**Baseline Net Sales**" means, on a country-by-country basis, with respect to a Licensed Product for which a Biosimilar Product is sold, the average quarterly Net Sales of such Licensed Product in such country during the four (4) consecutive Calendar Quarters ending immediately prior to the Calendar Quarter in which Biosimilar Launch in such country occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "**Bayh-Dole Act**" means the Patent and Trademark Law Amendments Act of 1980, as amended, codified at 35 U.S.C. §§ 200-212, as amended, as well as any regulations promulgated pursuant thereto, including in 37 C.F.R. Part 401.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "**Biosimilar Launch**" means, with respect to a Licensed Product in a country or jurisdiction, the first sale of a Biosimilar Product for end use or consumption of such Biosimilar Product in such country or jurisdiction after Regulatory Approval required to market and sell the Biosimilar Product in such country or jurisdiction has been granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 "**Biosimilar Product**" means, with respect to a Licensed Product in a country or jurisdiction, any product sold by a Third Party that (a) has been granted a Regulatory Approval as a biosimilar or interchangeable product by the FDA pursuant to 351(k) of the PHSA, or otherwise references or relies on such Licensed Product; (b) has been granted a Regulatory Approval in the E.U. or any member state thereof as a generic medicinal product or a similar biological medicinal product with the Licensed Product as the reference medicinal product pursuant to Section 10 of Directive 2001/83/EC, as may be amended from time to time, together with any rules, regulations and requirements promulgated thereunder (including all additions, supplements, extensions and modifications thereof); or (c) has otherwise received regulatory approval as a generic, biosimilar or interchangeable product from any applicable Regulatory Authority in such country or jurisdiction, including by referencing or relying on Regulatory Approvals (or data therein) of such Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 "**Blended Royalty Rate**" means, on a Licensed Product-by-Licensed Product basis, for each Calendar Quarter during the Royalty Term, an amount, expressed as a percentage, equal to the quotient of (i) the amount of royalties for such Calendar Quarter pursuant to the first paragraph of Section 4.6, as adjusted pursuant to Section 4.6.1 (as applicable), and without any deductions under Sections 4.6.2, 4.6.3, 4.6.4 and 9.4.2, *<u>divided by</u>* (ii) the amount of Net Sales for such Calendar Quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "**Breaching Party**" has the meaning given in Section 9.2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 "**Business Day**" means a day (which is not a Saturday, Sunday or a public holiday in any of the following locations) on which banks are open in New York, USA and Paris, France.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "**Calendar Quarter**" means each respective period of three (3) consecutive months ending on March 31, June 30, September 30 and December 31 of any Calendar Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "**Calendar Year**" means each respective period of twelve (12) consecutive months commencing on January 1 and ending on December 31.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "**Change of Control of Scribe**" means any of the following, in a single transaction or a series of related transactions: (a) the sale or disposition of all or substantially all of the assets of Scribe to a Third Party (or multiple Third Parties acting in concert); (b) the direct or indirect acquisition by a Third Party (or multiple Third Parties acting in concert) (other than an employee benefit plan (or related trust) sponsored or maintained by Scribe or any of its Affiliates) of beneficial ownership of more than fifty percent (50%) of the then-outstanding common shares or voting power of Scribe or any direct or indirect parent entity that holds, directly or indirectly, beneficial ownership of more than fifty percent (50%) of the then-outstanding common shares or voting power of Scribe (a "**Parent Entity**"); or (c) the merger or consolidation of Scribe or any of its Parent Entities with or into any Third Party, unless, following such merger or consolidation, the stockholders of Scribe or Parent Entity (as applicable) immediately prior to such merger or consolidation beneficially own, directly or indirectly, more than fifty percent (50%) of the then-outstanding common shares or voting power of the entity resulting from such merger or consolidation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "**Claim**" has the meaning given in Section 7.1.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 "**Clinical Trial**" means a human clinical study conducted on sufficient numbers of human subjects that is designed to (a) establish that a pharmaceutical product is reasonably safe for continued testing, (b) investigate the safety and efficacy of the pharmaceutical product for its intended use, and to define warnings, precautions and adverse reactions that may be associated with the pharmaceutical product in the dosage range to be prescribed or (c) support Regulatory Approval of such pharmaceutical product or label expansion of such pharmaceutical product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "**CMC Information**" means information related to the chemistry, manufacturing and controls of Licensed Editing Compositions as required or specified by a Regulatory Authority, including as detailed in any Regulatory Filing or Regulatory Approval. For clarity, with respect to the Licensed Editing Compositions, CMC Information shall include detailed descriptions of how each gene editing component is manufactured, purified and tested, detailed descriptions of the manufacturing process and any in-process controls for each gene editing component, flow diagrams and a detailed narrative of all such manufacturing processes, lists of the reagents used during these processes and certificates of analysis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "**CMO**" means a contract manufacturing organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 "**Co-Promotion Agreement**" has the meaning given in Section 3.10.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 "**Co-Promotion Option**" has the meaning given in Section 3.10.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 "**Co-Promotion Term**" has the meaning given in Section 3.10.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31 "**Combination Product**" means any biopharmaceutical preparation in final form containing a Licensed Product in combination with (a) one or more other products containing different active ingredients than the Licensed Product, either as a fixed dose/unit or as separate doses/units in a single package, or (b) one or more devices, services or other items of value as a single package (such other active ingredients, devices, services or other items of value, "**Other Item**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32 "**Commercialization**" means any and all activities directed to the offering for sale and sale of a Licensed Product, including: (a) activities directed to storing, marketing, promoting, Detailing, distributing, importing, exporting, selling and offering to sell (including receiving, accepting, and filling orders); (b) handling all returns; (c) controlling invoicing, order processing, and collection of accounts receivable for the sales; (d) booking and recording sales in its books of account; (e) distributing and managing inventory; (f) interacting with Regulatory Authorities regarding any of the foregoing; (g) medical affairs, and (h) seeking pricing and reimbursement approvals (as applicable). When used as a verb, "to **Commercialize**" and "**Commercializing**" means to engage in Commercialization and "**Commercialized**" has a corresponding meaning.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33 "**Commercially Reasonable Efforts**" means, with respect to the efforts to be expended by the performing Party under this Agreement (or, if applicable, its Affiliates) with respect to any development objective, activity, or goal related to a Licensed Product, those diligent efforts that such Party or its Affiliate would normally use to accomplish such objective, activity, or decision, and specifically means the carrying out of development activities using efforts that Sanofi or its Affiliate would normally devote to a product at a similar stage in its development or product life and of similar market potential, strategic importance, and profit potential, based on conditions then prevailing and taking into account efficacy, safety, approved labeling, the competitiveness of alternative products sold by Third Parties in the marketplace, the patent and other proprietary position of the product, the likelihood of Regulatory Approval given the regulatory structure involved, regulatory exclusivity, profitability (including the likelihood of pricing approval), intellectual property coverage, present and future market and commercial potential, legal issues and all other relevant factors. Commercially Reasonable Efforts will be determined on a country-by-country and indication-by-indication basis for the applicable Licensed Product, and it is anticipated that the level of effort will change over time, reflecting changes in the status of such Licensed Product and the market or country involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34 "**Commercial Sales Milestone Event**" has the meaning given in Section 4.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35 "**Commercial Sales Milestone Payment**" has the meaning given in Section 4.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36 "**Competing Program**" means any program for the Exploitation of a cell therapy or gene therapy in any disease identified by Sanofi to Scribe, prior to a Change of Control of Scribe, in any written materials (pursuant to Section 3.8 or via the JFDC) as being the subject of Development activities (and such Development activities have not been discontinued as of the date of such Change of Control).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37 "**Confidential Information**" has the meaning given in Section 8.1.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38 "**Control**" or "**Controlled**" means, with respect to any materials, Know-How, Patents, or other Intellectual Property rights, that a Party or any of its Affiliates has the legal authority or right (whether by ownership, license, or otherwise) to grant to the other Party a license, covenant not to sue, sublicense, access, or right to use (as applicable) under such materials, Know-How, Patents, or other Intellectual Property rights, on the terms and conditions set forth herein, in each case without violating any obligations of the granting Party owed to a Third Party, breaching the terms of any agreement with a Third Party or subjecting the granting Party to any fee or charge in addition to the fees or charges the Parties have agreed to pay pursuant to this Agreement. Notwithstanding the foregoing, in the event a Party or its Affiliate is acquired, whether by merger, acquisition, sale of assets or other change of control transaction, then the rights to materials, Know-How, Patents, or other Intellectual Property rights of any Third Party acquirer or other successor-in-interest of such Party or Affiliate that were controlled by such acquirer or successor immediately prior to such transaction, or are developed or acquired by such acquirer or successor after the consummation of such transaction without the use of or that is otherwise an improvement or modification to the Licensed Technology in existence immediately prior to the acquisition, will not be deemed to be "Controlled" by such Party for purposes of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39 "**Cover**" means, with respect to a claim of a Patent and the relevant subject matter, that such claim would be infringed, absent a license, by the making, use, importation, exportation, offering for sale, sale, or other Exploitation of the relevant subject matter (considering claims of patent applications to be issued as then pending). "Covering" and "Covered by" have correlating meanings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.40 "**CRO**" means any Third Party contract research organization whose primary business is providing pharmaceutical research services on a fee-for-service basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41 "**Delivery Technology**" means any composition or method that directs or delivers a Licensed Editing Composition to a specific organ, tissue or cell in order for such Licensed Editing Composition to modify a specific gene within such organ, tissue or cell. Delivery Technology may include viral vectors, lipid nanoparticles and viral-like particles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42 "**Detail**" means, with respect to a Licensed Product in the United States, a face-to-face contact (including a virtual face-to-face meeting or group presentation) between a sales representative and one or more physicians or other HCPs from the same medical practice, including any such meeting conducted in a hospital or physician's office, during which key product attributes are orally presented to such HCP (including a primary position detail or a secondary position detail), in each case as measured by each Party's internal recording of such activity in accordance with the Co-Promotion Agreement; provided that such meeting is consistent with, and in accordance with, the requirements of Applicable Law, this Agreement and the Co-Promotion Agreement. The definition of "Detail" may be further refined in the Co-Promotion Agreement, and to the extent there is any inconsistency, the Co-Promotion Agreement shall prevail. For the avoidance of doubt, the following activities will not constitute a "Detail" unless otherwise agreed by the Parties: non-personal promotions, sample drops without discussion with the professional about the key product attributes; reminder details; market research activities presented to, and presentations to, third party payors or formulary committees; and activities performed by market access specialists, managed care account directors and other personnel not performing face-to-face sales calls or not specifically trained with respect to a Licensed Product. When used as a verb, "**Detail**" means to engage in a Detail, and "**Detailing**" shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43 "**Development**" means all internal and external research, development, and regulatory activities regarding pharmaceutical or biologic products, including (a) research, non-clinical testing, toxicology, route of synthesis, non-clinical activities, pre-clinical studies, and Clinical Trials, and (b) preparation, submission, review, and development of data or information for the purpose of submission to a Regulatory Authority to obtain authorization to conduct Clinical Trials and to obtain, support, or maintain Regulatory Approval of a Licensed Product, but excluding activities directed to manufacturing or Commercialization. Development shall include development and regulatory activities for additional forms, formulations, or indications for a Licensed Product after receipt of Regulatory Approval of such Licensed Product, including Clinical Trials initiated following receipt of Regulatory Approval or any Clinical Trial to be conducted after receipt of Regulatory Approval that was mandated by the applicable Regulatory Authority as a condition of such Regulatory Approval with respect to an approved formulation or indication (such as post-marketing studies and observational studies, if required by any Regulatory Authority in any country in the Territory to support or maintain Regulatory Approval for a Licensed Product in such country). "**Develop**," "**Developing**," and "**Developed**" shall be construed accordingly.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44 "**Development & Regulatory Milestone Event**" has the meaning given in Section 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45 "**Development & Regulatory Milestone Payment**" has the meaning given in Section 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46 "**Development Candidate Nomination**" means, with respect to a Licensed Target, such time as an investigational Licensed Product has been deemed a development candidate in accordance with Sanofi's then-current internal policies and formal governance procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.47 "**Development Cost Sharing & Profit/Loss Share Agreement**" has the meaning given in Section 3.9.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48 "**Development Cost Sharing & Profit/Loss Share Option**" has the meaning given in Section 3.9.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.49 "**Development Costs**" means, with respect to the Profit/Loss Share Target, all costs and expenses incurred on a worldwide basis by or on behalf of Sanofi relating to any activities (including, but not limited to, preclinical, manufacturing and clinical) for Profit/Loss Share Products up to, and including the first regulatory approval by the FDA for a Profit/Loss Share Product in the Territory, but excluding development costs and expenses which are directly and specifically related to a country or jurisdiction outside of the U.S.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.50 "**Disclosing Party**" has the meaning given in Section 8.1.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51 "**Dispute**" has the meaning given in Section 10.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.52 "**European Patent**" means patents granted through, and patent applications filed with, the European Patent Office under the European Patent Convention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53 "**EMA**" means the European Medicines Agency or any successor agency thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54 "**E.U.**" means the European Union and the United Kingdom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.55 "**Exploit**" means to make, use, offer to sell, sell, import, export, practice, research, develop, manufacture, commercialize or otherwise exploit [\*], and/or have others do any of the foregoing. "**Exploitation**" and "**Exploiting**" shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.56 "**FD&C Act**" means the United States Federal Food, Drug and Cosmetic Act, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.57 "**FDA**" means the United States Food and Drug Administration or any successor agency thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.58 "**Feasible**" means that the generation of Licensed Target-specific gRNA molecules is scientifically feasible, as determined by the Parties, with Sanofi having the final decision-making right. "**Feasibility**" shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.59 "**Field**" means, on a Licensed Target-by-Licensed Target basis: (i) with respect to the Initial Licensed Target, [\*], (ii) with respect to any Additional Licensed Target or Replacement Licensed Target [\*], any disease or medical condition in humans (excluding human infectious viral diseases) and (iii) with respect to any Additional Licensed Target or Replacement Licensed Target [\*], any disease or medical condition in humans (excluding human infectious viral diseases) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.60 "**First Commercial Sale**" means the first sale of a Licensed Product by Sanofi or its Affiliates or sublicensee to a Third Party for end use or consumption of such Licensed Product in a given country after Regulatory Approval required to market and sell the Licensed Product has been granted with respect to such Licensed Product in such country in which such Licensed Product is sold; provided that the following will not constitute a First Commercial Sale: (i) any sale by Sanofi or an Affiliate to a different Affiliate, (ii) any sales for test marketing or Clinical Trial purposes, (iii) any use of such Licensed Product in Clinical Trials or non-clinical Development activities with respect to such Licensed Product by or on behalf of Sanofi or any of its Affiliates or sublicensees, or (iv) any sale of such Licensed Product at or below the cost of goods as samples or for named patient, compassionate or other charitable purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.61 "**Floor**" has the meaning given in Section 4.6.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.62 "**FTE Rate**" means [\*] per annum, being [\*] per hour.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.63 "**Futile**" means, on a Licensed Target-by-Licensed Target basis, that (i) no Licensed Product directed to such Licensed Target has achieved Development Candidate Nomination and (ii) Sanofi determines, in its sole discretion, that no Licensed Product directed to such Licensed Target is reasonably likely to achieve Development Candidate Nomination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.64 "**Government Official**" means: (i) any officer, employee (including physicians, hospital administrators, or other healthcare professionals), agent, representative, department, agency, de facto official, representative, corporate entity, instrumentality or subdivision of any government, military or international organization, including any ministry or department of health or any state-owned or affiliated company or hospital; (ii) any candidate for political office, any political party or any official of a political party, in each case for the purpose of obtaining or retaining business for or with, or directing business to, any Person, including either Party; or (iii) any Person acting in an official capacity on behalf of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65 "**Governmental Authority**" means any national, international, federal, state, provincial or local government, or political subdivision thereof, or any multinational organization or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, and any court or tribunal (or any department, bureau or division thereof, or any governmental arbitrator or arbitral body).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.66 "**gRNA Candidate Validation Criteria**" means the following criteria: (i) in the event that Scribe has delivered to Sanofi more than [\*] gRNA sequences (as identified at a particular locus), [\*] (as rounding to the nearest whole number) of such gRNA sequences result in [\*] (as measured by protein knock-out or indel), or (ii) in the event that Scribe has delivered a [\*] gRNA sequence but [\*] gRNA sequences (as identified at a particular locus), [\*] of such gRNA sequences results in [\*] (as measured [\*]).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.67 "**HCP**" means any member of the medical, pharmacy or nursing professions who in the course of his or her professional activities may prescribe, administer or dispense to an end-user a medicinal product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.68 "**Hemoglobin-Related Target**" means any genetic target that results in the (i) [\*], in each case (i) and (ii) as listed in Exhibit 2.9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.69 [\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.70 "**IND**" means an investigational new drug application filed with the FDA or any similar application filed with a Regulatory Authority in a country other than the U.S. required to commence Clinical Trials of a pharmaceutical product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.71 "**Indemnitee**" has the meaning given in Section 7.1.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.72 "**Indemnitor**" has the meaning given in Section 7.1.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.73 "**Infringement**" has the meaning given in Section 5.6.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.74 "**Initial Licensed Target**" means the initial Licensed Target set forth on Exhibit 2.3.1 as of the Effective Date [\*], and does not include any Replacement Licensed Target replacing such Initial Licensed Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.75 "**Intellectual Property**" means all Patents, rights to inventions, copyrights, design rights, trademarks, trade secrets, Know-How and all other intellectual property (whether registered or unregistered) and all applications and rights to apply for any of the foregoing, anywhere in the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.76 "**JFDC**" means the Joint Finance and Development Committee established pursuant to the Development Cost Sharing & Profit/Loss Share Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.77 "**Know-How**" means any proprietary scientific or technical information, inventions, discoveries, results and data of any type whatsoever, in any tangible or intangible form, including inventions, discoveries, databases, safety information, practices, methods, instructions, techniques, processes, drawings, documentation, specifications, formulations, formulae, knowledge, know-how, trade secrets, materials, skill, experience, test data and other information and technology applicable to formulations, compositions or products or to their manufacture, development, registration, use, marketing or sale or to methods of assaying or testing them, including pharmacological, pharmaceutical, medicinal chemistry, biological, chemical, biochemical, toxicological and clinical test data, physical and analytical, safety, quality control data, manufacturing, and stability data, materials, studies and procedures, and manufacturing process and development information, results and data.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.78 "**Licensed Editing Compositions**" means a composition of (a) CRISPR CasXE enzyme [\*] and (b) Licensed gRNAs [\*], in each case that (i) [\*] and (ii) are Controlled by Scribe at any time during the Term. In the case of an Additional Licensed Target or Replacement Licensed [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.79 "**Licensed gRNAs**" means, with respect to each Licensed Target, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.80 "**Licensed Know-How**" means all materials and non-public Know-How that Scribe Controls as of the Effective Date or during the Term that (a) relate to any Licensed Editing Compositions, Licensed gRNAs, or Licensed Product or (b) are otherwise necessary or useful for the use of Licensed Editing Compositions and/or Licensed gRNAs in research, development, manufacture, commercialization or other exploitation of any Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.81 "**Licensed Materials**" means any tangible biological or chemical materials Controlled by Scribe at any time during the Term that is delivered to Sanofi under this Agreement and (a) relates to any Licensed Editing Compositions, Licensed gRNAs or Licensed Product or (b) is otherwise necessary or useful for the research, development, manufacture, commercialization or other exploitation of the Licensed Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.82 "**Licensed Patent**" means any Patent that Scribe Controls as of the Effective Date or during the Term that (a) Covers any Licensed Editing Compositions, Licensed gRNAs, or Licensed Product or (b) is otherwise necessary or useful for the use of Licensed Editing Compositions and/or Licensed gRNAs in research, Development, manufacture, Commercialization or other exploitation of any Licensed Product. The Licensed Patents include any Patents that constitute Scribe Platform IP and meet sub-clause (a) or (b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.83 "**Licensed Product**" means any pharmaceutical preparation containing or comprising a Licensed Editing Composition. For clarity, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.84 "**Licensed Target**" means the targets identified on Exhibit 2.3.1, as updated in accordance with Section 2.3 from time to time, if applicable. In the case of a Nominated Insertion into the Safe Harbor Gene Locus, then the "Licensed Target" is the combination of the Safe Harbor Gene Locus and the Nominated Insertion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.85 "**Licensed Technology**" means, collectively, the Licensed Patents, Licensed Know-How and Licensed Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.86 "**Losses**" has the meaning given in Section 7.1.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 "**Major Biopharmaceutical Company**" means (a) any entity that itself or through its Affiliates develops or commercializes healthcare products for human consumption that has a fully diluted market capitalization of at least [\*] as measured at the closing price on the last day of the preceding [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.88 "**Major European Markets**" means United Kingdom, Germany, Italy, Spain and France.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.89 "**Major Markets**" means United States, United Kingdom, Germany, Italy, Spain, France, China and Japan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.90 "**Material Safety Event**" means an event that is caused by the Licensed Editing Composition component of a Licensed Product, or is reasonably likely to be caused by the Licensed Editing Composition component of a Licensed Product, and results in one or more deaths, life threatening conditions, inpatient hospitalizations or a prolongation of existing hospitalizations, persistent or significant disabilities or incapacities or substantial disruption of the ability to conduct normal life functions, congenital anomaly/birth defects, significant interventions required to prevent permanent impairment or damage, or that may jeopardize the patient or subject and may require medical or surgical intervention to prevent any of the foregoing outcomes, in each case, as identified by a Regulatory Authority, an institutional review board for a Clinical Trial, or as reasonably determined by the Sanofi Safety Review Committee in accordance with its internal operating procedures consistently applied across its own pharmaceutical products. Where such Material Safety Event is identified only by the Sanofi Safety Review Committee for purposes of Section 5.4.2 or Section 9.4.3, Sanofi will provide written notice to Scribe and such notice will include a summary of such determination and corresponding concerns expressed by the Sanofi Safety Review Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.91 "**NDA**" means (a) any New Drug Application (as defined in the FD&C Act), any Biologics License Application ("**BLA**") (as defined in the PHSA) and applicable regulations promulgated thereunder by the FDA filed with the FDA to gain approval to market a pharmaceutical product in the U.S., (b) a marketing authorization application ("**MAA**") filed with (i) the EMA under the centralized EMA filing procedure to gain approval to market a biopharmaceutical in the E.U., or (ii) a Regulatory Authority in any E.U. country if the centralized EMA filing procedure is not used to gain approval to market a biopharmaceutical in the E.U., or (c) any other equivalent or related Regulatory Filing filed in support of approval to market a biopharmaceutical in any country outside of the U.S. or E.U. (including the United Kingdom), and, in each case ((a) through (c)), including any amendments thereto, and supplemental applications, but excluding applications for reimbursement approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.92 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.93 "**Net Sales**" means, with respect to a Licensed Product for any period, the gross amount billed or invoiced by Sanofi or any of its Affiliates or its or their sublicensees for the sale of a Licensed Product to a Third Party in the Territory commencing with the First Commercial Sale of such Licensed Product less the following deductions determined in accordance with Accounting Standards from such gross amounts in calculating the "gross to net" revenue adjustment, and which are actually incurred, allowed, accrued or specifically allocated with respect to such Licensed Product:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [\*];

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) [\*].

Any of the deductions listed above that involves a payment by such Party, its Affiliates or its or their sublicensees shall be taken as a deduction in the [\*] in which the payment is accrued by such entity. For purposes of determining Net Sales, a Licensed Product shall be deemed to be sold when recognized as a sale in accordance with the applicable Accounting Standards' revenue recognition criteria.

Net Sales shall not include 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) the sale, transfer or other disposition of a Licensed Product (x) prior to Regulatory Approval for use in Clinical Trials, (y) free of charge for use in special access programs or for compassionate or similar use, or (z) free of charge of reasonable quantities of promotional samples; 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transfer of Licensed Products to an Affiliate or sublicensee; provided, that, (x) unless subject to an exception in proviso (a) immediately above, the First Commercial Sale occurs if the Affiliate or sublicensee is the end user; and, provided further, that, (y) Sanofi does not consolidate the revenues recognized by the Affiliate or sublicensee with respect to any further resale of the Licensed Product.

In the event that a Licensed Product is sold in the Territory in the form of a Combination Product, Net Sales of such Combination Product shall be adjusted by [\*]. If either such Licensed Product or Other Item that contains the other active ingredients is not sold separately in the Territory, then the adjustment to Net Sales shall be determined by the Parties in good faith to reasonably reflect the fair market value of the contribution of such Licensed Product or Other Item that contains the other active ingredients in such Combination Product to the total fair market value of such Combination Product.

In the case of pharmacy incentive programs, hospital performance incentive programs chargebacks, disease management programs, similar programs or discounts on portfolio product offerings, [\*].

Subject to the above, Net Sales shall be calculated in accordance with the standard internal policies and procedures of Sanofi, its Affiliates or its or their sublicensees, which must be in accordance with applicable Accounting Standards.

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Notwithstanding the foregoing, in the event that Scribe exercises the Development Cost Sharing & Profit/Loss Share Option, solely with respect to Profit/Loss Share Products, during the Profit/Loss Share Term, for purposes of the calculation of royalties payable by Sanofi under Section 4.6 and for the determination of achievement of any Commercial Sales Milestones Event under Section 4.5, Net Sales shall exclude the gross amount billed or invoiced by Sanofi or any of its Affiliates or its or their sublicensees for the sale of such Profit/Loss Share Products to a Third Party in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.94 "**New gRNA IP**" has the meaning given in Section 5.2.4**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.95 "**New IP**" means any and all new inventions conceived or reduced to practice solely by or on behalf of either Party or jointly by the Parties during the Term in the course of the activities contemplated by this Agreement that are related to (a) [\*]; (b) [\*]; (c) [\*]; or (d) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.96 "**New Scribe IP**" any New IP conceived or reduced to practice solely by or on behalf of Scribe and that is not Assigned IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.97 "**Nominated Insertion**" means, with respect to a Safe Harbor Gene Locus, a therapeutic cargo or therapeutic vector (e.g., a gene, an engineered antibody, an enzyme or a modified effector protein) to be introduced at such Safe Harbor Gene Locus, nominated by Sanofi pursuant to Section 2.3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.98 "**Nominated Target**" has the meaning given in Section 2.3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.99 "**Non-Breaching Party**" has the meaning given in Section 9.2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.100 "**Non-Prosecuting Party**" has the meaning given in Section 5.5.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.101 "**Owning Party"** has the meaning given in Section 5.2.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.102 "**Patents**" means (a) issued and unexpired patents and pending patent applications, (b) any foreign counterparts thereof, (c) all divisionals, continuations, continuations in-part thereof or any other pending patent application claiming priority directly or indirectly to (i) any such specified issued and unexpired patents or pending patent applications or (ii) any issued and unexpired patent or pending patent application from which such specified patents or patent applications claim direct or indirect priority, and (d) all patents issuing on any of the foregoing, and any foreign counterparts thereof, together with all registrations, reissues, re-examinations, renewals, supplemental protection certificates, or extensions of any of the foregoing, and any foreign counterparts thereof. For avoidance of doubt European Patents and Unitary Patents are Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.103 "**Patent Challenge**" has the meaning given in Section 9.2.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.104 "**Payment**" has the meaning given in Section 4.11.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.105 "**Person**" means any corporation, limited or general partnership, limited liability company, joint venture, trust, unincorporated association, governmental body, authority, bureau or agency, any other entity or body, or an individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.106 "**Phase I Clinical Trial**" means a Clinical Trial in humans that generally provides for the first introduction into humans of a pharmaceutical or biologic product with the primary purpose of determining safety, metabolism, and pharmacokinetic properties and clinical pharmacology of such product, in a manner that meets the requirements of 21 C.F.R. § 312.21(a), as amended (or its successor regulation), or, with respect to any other country or region, the equivalent of such a Clinical Trial in such other country or region.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.107 "**Phase I/II Clinical Trial**" means a combined Phase I Clinical Trial and Phase II Clinical Trial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.108 "**Phase II Clinical Trial**" means a Clinical Trial of a Licensed Product conducted on a sufficient number of subjects for evaluating (and the principal purpose of which is to evaluate) the effectiveness of a pharmaceutical product for its particular intended use and obtaining (and to obtain) information about side effects and other risks associated with the drug, in a manner that is generally consistent with 21 C.F.R. § 312.21(b), as amended (or its successor regulation), or, with respect to any other country or region, the equivalent of such a Clinical Trial in such other country or region.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.109 "**Phase III Clinical Trial**" means a Clinical Trial in humans of a pharmaceutical or biologic product that the FDA permits to be conducted under an open IND and that is performed to gain evidence with statistical significance of the efficacy of such product in a target population, and to obtain expanded evidence of safety for such product that is needed to evaluate the overall benefit-risk relationship of such product, to form the basis for approval of an NDA by a Regulatory Authority and to provide an adequate basis for physician labeling, in a manner that meets the requirements of 21 C.F.R. § 312.21I, as amended (or its successor regulation), or, with respect to any other country or region, the equivalent of such a Clinical Trial in such other country or region, provided, however, that the FDA permits the treatment of patients in the U.S. under an open IND in such Clinical Trial. Notwithstanding anything to the contrary set forth in this Agreement, treatment of patients as part of an expanded access program, compassionate sales or use program (including named patient program or single patient program), or an indigent program, in each case, will not be included in determining whether or not a Clinical Trial is a Phase III Clinical Trial or whether a patient has been dosed thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.110 "**PHSA**" means the United States Public Health Service Act, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.111 "**Pivotal Trial**" means any (a) a Clinical Trial in humans that meets the requirements of 21 C.F.R. § 312.21(c), as amended (or its successor regulation), or, with respect to any other country or jurisdiction, the equivalent of such a Clinical Trial in such other country or jurisdiction, or (b) other Clinical Trial in humans of a pharmaceutical or biologic product, the results of which, together with prior data and information concerning such product, are intended to be or otherwise are sufficient, without any additional Clinical Trial, to meet the evidentiary standard for demonstrating the safety, efficacy, and of such active substance of such product established by a Regulatory Authority in any particular jurisdiction and is intended to support, or otherwise supports, the submission of an MAA in such jurisdiction (including any bridging study).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.112 "**Profit/Loss Share Product**" means a Licensed Product directed to the Profit/Loss Share Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.113 "**Profit/Loss Share Target**" means the Licensed Target for which the Development Cost Sharing & Profit/Loss Share Option has been exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.114 "**Profit/Loss Share Term**" has the meaning given in Section 3.9.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.115 "**Program Advancement**" has the meaning given in Section 2.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.116 "**Prosecute and Maintain**" or "**Prosecution and Maintenance**" with respect to a particular Patent, means all activities associated with the preparation, filing, prosecution and maintenance of such Patent, together with the conduct of interferences, derivation proceedings, *inter partes* review and post-grant review, the defense of oppositions and other similar proceedings with respect to that Patent. For avoidance of doubt, Prosecute and Maintain or Prosecution and Maintenance also includes: (A) the filing of an application to opt-out any European Patent from the exclusive competence of the Unified Patent Court; (B) lodging an application to withdraw an opt-out with respect to any European Patent from the exclusive competence of the Unified Patent Court, in accordance with Applicable Laws (including Article 83 of the Unified Patent Court Agreement and Rule 5 of the Rules of Procedure of the Unified Patent Court); (C) the filing of a request for Unitary Patent Effect for any granted European patent; and (D) the filing for patent term extension, including supplementary protection certificates (e.g., national supplementary protection certificates before national authorities of Unitary Supplementary Protection Certificates) and any other extensions that are now or become available in the future regarding patent rights. Capitalized terms in this Section 1.116 (if not defined herein) shall have the meaning given to such terms in the Rules of Procedure of the Unified Patent Court as adopted by the decision of the Administrative Committee on July 8, 2022 and established by the Agreement on a Unified Patent Court of February 19, 2013 (OJ C 175, 20.6.2013, p. 1) (including any subsequent amendments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.117 "**Prosecuting Party**" has the meaning given in Section 5.5.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.118 "**Receiving Party**" has the meaning given in Section 8.1.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.119 "**Redacted Version**" has the meaning given in Section 8.1.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.120 "**Reduction Factor**" means, on a Licensed Product-by-Licensed Product and country-by-country basis, an amount, expressed as a percentage, equal to the quotient of (i) the lowest amount of Net Sales that has been recorded in such country in any Calendar Quarter after Biosimilar Launch, *<u>divided by</u>* (ii) Baseline Net Sales for such Licensed Product in such country.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.121 "**Reduction Percentage**" means the percentage corresponding to the Reduction Factor in the table below:

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| | | |
|:---|:---|:---|
| **Reduction Factor** | **Reduction Percentage** | **Reduction Percentage** |
|  [\*] |  | [\*] |
|  [\*] |  | [\*] |
|  [\*] |  | [\*] |
|  [\*] |  | [\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.122 "**Regents**" has the meaning given in Section 1.150.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.123 "**Regulatory Approval**" means, collectively, any and all approvals (including supplements, amendments, pre- and post-approvals, pricing and reimbursement approvals), licenses, registrations, permits, notifications, and authorizations (including marketing and labeling authorizations) or waivers of any Regulatory Authority that are necessary for the testing, research, development, registration, manufacture (including formulation), use, storage, import, export, transport, promotion, marketing, distribution, offer for sale, sale or other commercialization of a pharmaceutical product (including any Licensed Product) in any country or jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.124 "**Regulatory Authority**" means any Governmental Authority that has responsibility in its applicable jurisdiction over the testing, research, development, registration, manufacture (including formulation), use, storage, import, export, transport, promotion, marketing, distribution, offer for sale, sale or other commercialization of pharmaceutical products (including any Licensed Product) in a given jurisdiction. For countries where governmental approval is required for pricing or reimbursement for a pharmaceutical product (including any Licensed Product) to be reimbursed by national health insurance (or its local equivalent), Regulatory Authority includes any Governmental Authority whose review or approval of pricing or reimbursement of such product is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.125 "**Regulatory Exclusivity**" means, with respect to each Licensed Product in any country in the Territory, a period of exclusivity (other than Patents exclusivity) granted or afforded by Applicable Laws or by a Regulatory Authority in such country that prevents the approval or marketing of any biosimilar of such Licensed Product in such country, including reference product exclusivity under Section 351(k)(7) of the PHSA and pediatric exclusivity under Section 351(m) of the same and any foreign equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.126 "**Regulatory Filings**" means all applications, filings, and dossiers, biologics master files, drug master files and other documents, data, results, and materials submitted to a Regulatory Authority in support of Development or Commercialization of a pharmaceutical or biologic product, including for the purpose of obtaining Regulatory Approval from that Regulatory Authority. Regulatory Filings include all INDs, NDAs, BLAs and other applications for Regulatory Approval and their equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.127 "**Replacement Licensed Target**" has the meaning given in Section 2.3.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.128 "**Report**" has the meaning given in Section 3.9.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.129 "**Restricted Period**" has the meaning given in Section 2.10.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.130 "**Restricted Availability Target**" means with respect to a Nominated Target, that Scribe has previously granted (or is in active discussions (as evidenced by the delivery to, or receipt of, a term sheet or most recent iteration of a term sheet from a *bona fide* Third Party offeror within the preceding [\*] with respect to the grant of) a non-exclusive license or other right to such target and field of use to a Third Party that would conflict with the exclusive rights to be granted to Sanofi under this Agreement (if such target were to become a Licensed Target).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.131 "**Right of Reference or Use**" means a "Right of Reference or Use" as that term is defined in 21 C.F.R. §314.3(b), and any non-United States equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.132 "**Royalty Term**" means, on a country-by-country and Licensed Product-by-Licensed Product basis, the period commencing with the First Commercial Sale of such Licensed Product in such country and terminating upon the latest of (a) the date on which the sale of such Licensed Product, in the absence of the licenses granted under this Agreement, would no longer infringe a Valid Claim in such country; (b) the expiration of Regulatory Exclusivity in such country, or (c) [\*] from the First Commercial Sale of such Licensed Product in such country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.133 "**Safe Harbor Gene Locus**" means [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.134 "**Sanofi Competitor**" means the acquirer, assignee or transferee, or their Affiliates (other than Scribe), in connection with a Change of Control of Scribe, that as of the closing of a Change of Control of Scribe has a Competing Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.135 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.136 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.137 "**Sanofi Indemnitee**" has the meaning given in Section 7.1.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.138 "**Sanofi Licensed Product IP**" has the meaning given in Section 5.2.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.139 "**Sanofi mRNA Modifications**" has the meaning given in Section 5.2.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.140 "**Scribe Activities Plan**" has the meaning given in Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.141 "**Scribe Indemnitee**" has the meaning given in Section 7.1.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.142 "**Scribe Platform IP**" has the meaning given in Section 5.2.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.143 "**Segregate**" means, with respect to a Competing Program, to segregate the Exploitation activities relating to such Competing Program from Sanofi's Confidential Information provided to Scribe under this Agreement, including by ensuring that [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.144 "**Term**" has the meaning given in Section 9.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.145 "**Terminated Licensed Product**" has the meaning given in Section 9.4.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.146 "**Terminated Licensed Product Data**" has the meaning given in Section 9.4.3(a).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.147 "**Terminated Licensed Product License**" has the meaning given in Section 9.4.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.148 "**Territory**" means worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.149 "**Third Party**" means a Person other than (a) Sanofi or its Affiliates and (b) Scribe or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.150 "**Third Party Infringement**" has the meaning given in Section 5.7.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.151 "**UC Berkeley License**" means that certain Amended and Restated Exclusive License Agreement, between Scribe and Regents of the University of California ("**Regents**"), dated September 23, 2020, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.152 "**UC Berkeley Patents**" has the meaning given in Section 2.1.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.153 "**Unified Patent Court**" means the court established by the EU under the Unified Patent Court Agreement of February 19, 2013 (2013/C 175/01) (OJ EU 20.6.2013, C 175/1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.154 "**Unitary Patent**" means those European Patents granted through the European Patent Office under the European Patent Convention, which are subject to EU Regulation No. 1257/2012 (OJ EU L 361, 31.12.2012, p. 1). A Unitary Patent may also be referred to as a European Patent with unitary effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.155 "**Upfront Payment**" has the meaning given in Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.156 "**U.S.**" means the United States of America and its territories and possessions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.157 "**Valid Claim**" means on a country-by-country and Licensed Product-by-Licensed Product basis any (a) composition of matter claim that Covers a Licensed Product or (b) method claims that Cover an Approved Use of a Licensed Product for the treatment of any diseases in the Field, in all cases for (a) and (b) in: (i) any issued and unexpired Patent within the Licensed Patents or New IP, which claim has not been held unenforceable, unpatentable or invalid by the final, unappealable decision of a court or other governmental agency of competent jurisdiction, and which has not been admitted to be invalid or unenforceable through abandonment, reissue, disclaimer or otherwise, or (ii) any pending Patent application within the Licensed Patents or New IP, which continues to be prosecuted in good faith, is not substantially similar in scope to another claim in an earlier filed Patent application, and which claim has not been abandoned or has not been finally rejected without the possibility of appeal or refiling; provided that, on a country-by-country basis, a pending Patent application, or the subject matter of a claim thereof, pending for more than [\*] after the [\*]. Notwithstanding the foregoing, Valid Claim specifically excludes [\*].

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**ARTICLE 2** 

**LICENSES; LICENSED TARGETS; TECHNOLOGY TRANSFER** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Licenses**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1 Scribe hereby grants to Sanofi and its Affiliates an exclusive, non-transferable (other than in accordance with Section 11.7), royalty-bearing license, with the right to grant sublicenses through multiple tiers (subject to Section 2.2), under the Licensed Technology to use the Licensed Editing Compositions for research, Development, registration, making, having made, selling, having sold, offering for sale, importing, exporting and otherwise Exploiting the Licensed Products in the Field in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2 Scribe hereby grants to Sanofi and its Affiliates a non-exclusive, non-transferable (other than in accordance with Section 11.7), royalty-bearing Right of Reference or Use, with the right to grant sublicenses through multiple tiers (subject to Section 2.2), under Scribe's Regulatory Filings for the purpose of research, Development, registration, making, having made, selling, having sold, offering for sale, importing, exporting and otherwise Exploiting the Licensed Products in the Field in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3 **UC Berkeley License**. Solely to the extent that the Licensed Patents include any Patents licensed to Scribe under the UC Berkeley License (the "**UC Berkeley Patents**") (i) this Agreement shall constitute a Sublicense (as such term is defined in the UC Berkeley License) and shall be subject to the terms of the UC Berkeley License applicable to Sublicensees (as such term is defined in the UC Berkeley License), (ii) as it relates to UC Berkeley Patents, the licenses granted to Sanofi and its Affiliates in Section 2.1.1 are limited to the extent of the licenses granted to Scribe under Paragraph 3.1 of the UC Berkeley License, (iii) to the extent applicable to Sublicensees, Sanofi and its Affiliates shall be subject to the rights of, and shall perform all obligations and observe all restrictions due to, the Regents and Howard Hughes Medical Institute (and, if applicable, the U.S. Government) under the UC Berkeley License, including the indemnification obligations set forth in Sections 19.1 and 19.2 of the UC Berkeley License, and (iv) the Regents and the Howard Hughes Medical Institute shall be intended third party beneficiaries of this Agreement. Scribe shall promptly notify Sanofi in the event that any obligation under the UC Berkeley License applicable to Sublicensees has been satisfied in full, in which case Sanofi shall be relieved of such obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.4 For clarity, the licenses, and the Right of Reference or Use, set forth in Sections 2.1.1, 2.1.2 and 2.1.3, does not include, and no licenses are granted by Scribe, with respect to the use of any Delivery Technology Controlled by Scribe or any other active pharmaceutical ingredients that may be incorporated into a Licensed Product that is not the Licensed Editing Composition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Sublicensing**. Subject to the terms and conditions of this Agreement, Sanofi shall have the right to grant (through multiple tiers) sublicenses under the rights granted under Sections 2.1.1 and 2.1.2, provided that: (i) further sublicenses under the UC Berkeley Patents shall require the Regents' consent in accordance with the UC Berkeley License and Scribe will promptly request such consent by Regents at Sanofi's direction, (ii) each sublicense will be consistent with the terms and conditions of this Agreement, including compliance with Section 2.1.3, and will include Intellectual Property ownership, confidentiality, non-disclosure, non-use provisions at least as restrictive or protective of the Licensed Technology and Scribe's Confidential Information as those set forth in this Agreement; and (iii) Sanofi shall remain responsible for the performance of its obligations under this Agreement, notwithstanding any such sublicense and the performance of any sublicensee, and for any payments due hereunder with respect to any activities of any sublicensee. Sanofi shall provide to Scribe a copy of any sublicense agreement promptly following execution of the sublicense agreement, provided that Sanofi shall be permitted to remove or redact any confidential, proprietary or competitively sensitive information, or other information that is not strictly required for Scribe to ensure compliance with the foregoing provisions of this Section.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 Licensed Target Designation**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1 **Number of Licensed Targets**. Subject to Section 2.3.3, Sanofi shall have the right to designate up to [\*] Licensed Targets in total (including the Initial Licensed Target) in accordance with this Section 2.3. For clarity, Sanofi has no obligation to nominate Additional Licensed Targets under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2 **Nomination**. At any time prior to the date which is [\*] after the Effective Date, Sanofi shall have the option to nominate additional targets to be Licensed Targets, up to a maximum of [\*] Licensed Targets (inclusive of the initial Licensed Target set forth on Exhibit 2.3.1). Sanofi shall nominate a target as a Licensed Target by providing to Scribe the identity of the target ("**Nominated Target**"). In the event the Nominated Target includes a Safe Harbor Gene Locus, the Parties acknowledge and agree that Sanofi shall be limited to [\*] Nominated Insertion and at the time of nomination of such Safe Harbor Gene Locus as the Nominated Target, Sanofi will identify the Nominated Insertion. Scribe shall notify Sanofi within [\*] whether the Nominated Target (which, for purposes of evaluation of Availability and Feasibility pursuant to this Section 2.3.2 shall include, if applicable, the Nominated Insertion), is Available and whether Scribe believes the Nominated Target is Feasible, including if any such Nominated Target is a Restricted Availability Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Feasibility**. If Scribe has provided notice that the Nominated Target is Feasible, then such Nominated Target shall be a Licensed Target, subject to Availability as set forth in Section 2.3.2(b). If Scribe has provided notice that the Nominated Target is not Feasible, then the Parties shall discuss in good faith whether the Nominated Target is Feasible. At the request of Sanofi, the Parties shall negotiate in good faith to agree upon a time-limited test plan to be conducted at Sanofi under a material transfer agreement (in a form substantially similar to material transfer agreements previously entered into by the Parties) to enable Sanofi to evaluate the Feasibility of such Nominated Target. If Sanofi decides the Nominated Target is Feasible, then such Nominated Target shall be a Licensed Target, subject to Availability as set forth in Section 2.3.2(b). If Sanofi agrees that the Nominated Target is not Feasible, then such Nominated Target shall not be a Licensed Target and Sanofi shall be free to nominate another Nominated Target pursuant to this Section 2.3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Availability**. If Scribe has provided notice that such Nominated Target: (i) is Available and is not a Restricted Availability Target, then such Nominated Target shall be a Licensed Target, subject to Feasibility as set forth in Section 2.3.2(a), (ii) is a Restricted Availability Target then, Sanofi may, in its sole discretion, select such Nominated Target as a Licensed Target, subject to Feasibility as set forth in Section 2.3.2(a), provided that the license granted pursuant to Section 2.1.1 shall be exclusive, subject only to the licenses or other rights to such Nominated Target granted to any applicable Third Parties as of such date, or (iii) is not Available and is not a Restricted Availability Target, or if such Nominated Target is a Restricted Availability Target that is not selected by Sanofi pursuant to the foregoing clause (ii)then Sanofi shall be free to nominate another Nominated Target pursuant to this Section 2.3.2.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3 **One-Time Replacement Right for each Licensed Target**. On a Licensed Target-by-Licensed Target basis, Sanofi shall have the one-time right, in its sole discretion, to replace a Licensed Target in accordance with this Section 2.3.3. Prior to the earlier of (i) Development Candidate Nomination for a Licensed Target and (ii) the date that is [\*] after the date designation of such Licensed Target pursuant to Section 2.3 (which designation date shall be the Effective Date for the Initial Licensed Target), Sanofi may elect to replace such Licensed Target with a different Nominated Target by providing Scribe with written notice thereof. The Parties shall use the process set forth in Section 2.3.2 to determine whether such replacement Nominated Target shall become a Licensed Target. Upon such replacement Nominated Target becoming a Licensed Target, then the target that is being replaced shall cease to be a Licensed Target and the replacement Licensed Target shall be deemed to be a Licensed Target for all purposes of this Agreement (each, a "**Replacement Licensed Target**"), provided that no Nomination Fee shall be payable in connection with such replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.4 **Update to Exhibit 2.3.1**. Upon designation of any Additional Licensed Target or Replacement Licensed Target in accordance with this Section 2.3, Exhibit 2.3.1 shall be deemed automatically updated to include such Licensed Target and the corresponding field of use and the Sanofi Alliance Manager will be responsible for distributing to Scribe an updated version of Exhibit 2.3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 Initial Development Activities**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.1 **Delivery of gRNA Sequences and Related Information for all Licensed Targets**. Without limiting Section 2.5, with respect to each Licensed Target, Scribe shall use Commercially Reasonable Efforts, and shall utilize its proprietary screening systems and Know-How, to identify Licensed Target-specific gRNA molecules and provide to Sanofi, within [\*] of the Effective Date for the Initial Licensed Target, or as soon as reasonably practicable but in any event within [\*] of designation of an Additional Licensed Target, or a Replacement Licensed Target, pursuant to Section 2.3, (a) a complete list of all gRNA molecules (including the spacer nucleotide sequence, scaffold nucleotide sequence and chemical modifications designs thereof) identified by Scribe for such Licensed Target, such list being ranked in order of potential in silico predicted off-target activity, and (b) the complete output of Scribe's algorithm or other proprietary screening systems, including filters applied to the list of gRNA molecules described under the preceding sub-clause (a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.2 **Evaluation of gRNA Molecules for Additional Licensed Targets and Replacement Licensed Targets**. Sanofi shall use Commercially Reasonable Efforts to timely evaluate the gRNA molecules provided pursuant to Section 2.4.1 for each Additional Licensed Target or Replacement Licensed Target against the gRNA Candidate Validation Criteria. Sanofi shall provide notice to Scribe within [\*] after achievement of the gRNA Candidate Validation Criteria for such gRNA molecules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.3 **Additional gRNA Engineering for Additional Licensed Targets and Replacement Licensed Targets**. If the gRNA molecules provided pursuant to Section 2.4.1 for each Additional Licensed Target or Replacement Licensed Target have failed to meet gRNA Candidate Validation Criteria, Sanofi shall provide notice of such determination to Scribe within [\*] after Sanofi makes such determination. Upon receipt of such notice, the Parties will discuss in

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good faith the results of such evaluation. At the request of Sanofi, Scribe will use Commercially Reasonable Efforts to engineer Licensed Editing Compositions to improve efficacy for such Licensed Target pursuant to a mutually agreed research plan and a budget, which shall initially be proposed by Scribe ("**Additional Engineering**"). Subject to the mutually agreed budget, Scribe's activities under such research plan shall be at Sanofi's cost, provided, that the first [\*] man-hours of activities conducted by employees of Scribe pursuant to such research plan during the first [\*] after initiation of such research plan shall be provided to Sanofi free of charge, and provided, further, that if the entire duration of the research plan is [\*] or less, the research plan will provide for not less than [\*] of activity to be conducted during such period (unless the particular research plan does not require [\*] man-hours, in which case the applicable lesser amount will be included). The Parties shall meet at [\*], [\*] and [\*] following the initiation of the research plan to discuss progress and probability of success.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.4 **Sanofi Options after Additional Engineering of gRNA fails to meet gRNA Candidate Validation Criteria for Additional Licensed Targets or Replacement Licensed Targets**. If the gRNA molecules provided pursuant to Section 2.4.1 for each Additional Licensed Target or Replacement Licensed Target have failed to meet gRNA Candidate Validation Criteria, after completion of Additional Engineering (if requested by Sanofi), Sanofi shall provide notice to Scribe of its election, in its sole discretion, to (i) exercise its right to replace such Additional Licensed Target pursuant to Section 2.3.3 (provided such right has not already been exercised for the same original Licensed Target), (ii) to suspend Development of such Licensed Target, or (iii) to advance Development of such Licensed Target ("**Program Advancement**"). With respect to any Licensed Target for which Development has been suspended in accordance with the foregoing clause (ii), if Sanofi subsequently determines, in its sole discretion, to advance Development of such Licensed Target, Sanofi shall provide notice of such determination to Scribe and such determination shall be deemed to be Program Advancement for purposes hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5 Technology and Material Transfer for all Licensed Targets**. Scribe shall carry out the technology and material transfer in accordance with the initial technology and material transfer plan set forth in Exhibit 2.5 for each Licensed Target, on the timelines set forth therein. Scribe shall cause its appropriately skilled employees and any necessary Third Party (including its CROs or CMOs) to perform such technology transfer. Scribe, at its sole cost and expense, shall deliver to Sanofi the complete, validated sequences of Licensed gRNAs. For a period of [\*] after the Effective Date for the Initial Licensed Target, and a period of [\*] after designation of an Additional Licensed Target, or a Replacement Licensed Target, pursuant to Section 2.3, Scribe shall (i) cause such employees of Scribe to provide Sanofi and/or sublicensees (at Sanofi's election) with such assistance as reasonably necessary to enable Sanofi and/or sublicensees (as applicable) to Develop and manufacture the applicable Licensed Products, and (ii) at the request of Sanofi, procure the introduction of Sanofi to its CMO and, if Sanofi wishes to enter into a direct agreement with such CMO, waive any exclusivity (or other) provisions in its agreement with such CMO, in each case to the extent necessary to allow Sanofi or its Affiliate to enter into an agreement with such CMO and, to the extent possible, procure that Sanofi may order material from such CMO using the same commodity number as is used by Scribe in respect of the relevant materials. The completion of the technology and material transfer in accordance with Exhibit 2.5, including the initial delivery to Sanofi of the complete, validated sequences of the selected Licensed gRNAs, and the [\*] man-hours of assistance provided by employees of Scribe pursuant to this Section 2.5 for each Licensed Target, shall be provided to Sanofi free of charge, provided, however, that in the event that Scribe performs Additional Engineering for any Licensed Target, Sanofi shall not be entitled to any free of charge assistance pursuant to this Section 2.5. Any such assistance beyond the foregoing shall be provided at Sanofi's cost, pursuant to a mutually agreed budget.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6 Futile Licensed Target**. In the event that, at any time for the Initial Licensed Target, or after achievement of Guide RNA Candidate Validation Criteria or Program Advancement for any other Licensed Target, a Licensed Target is determined by Sanofi to be Futile, Sanofi shall promptly provide notice of such determination to Scribe. Upon receipt of such notice, the Parties will discuss in good faith the results of the Development activities, and future prospects, for such Licensed Target. At the request of Sanofi, Scribe will use Commercially Reasonable Efforts, at Sanofi's cost, to engineer Licensed Editing Compositions to improve efficacy for such Licensed Target pursuant to a mutually agreed research plan and a budget (including a cap), which shall initially be proposed by Scribe. Scribe shall not commence any work under such research plan until the associated budget is agreed upon by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7 Improvements**. During the Term, Scribe shall keep Sanofi reasonably informed about any new material Licensed Know-How or material improvements to the Licensed Technology, and, for the period beginning [\*], Scribe shall provide any such know-how or improvements, in each case after Sanofi has provided a written request to receive such know-how or improvements, to enable Sanofi to Develop, manufacture, Commercialize or otherwise exploit the Licensed Products. In the case that clinical development of a program for any Licensed Target is delayed or paused for reasons related to the Licensed Editing Composition for such program (as reasonably determined by Sanofi), then upon Sanofi's reasonable request Scribe shall keep Sanofi reasonably informed about such know-how and improvements until the earlier of (i) [\*] after the Effective Date and (ii) completion of Phase II Clinical Trials for the final Licensed Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8 No Other Rights and Retained Rights**. Nothing in this Agreement shall be interpreted to grant to Sanofi or its Affiliates any rights under any Intellectual Property rights owned or Controlled by Scribe that is not expressly granted herein, whether by implication, estoppel, or otherwise. Sanofi shall not practice the Licensed Technology other than as expressly licensed and permitted under this Agreement. Any rights not expressly granted to Sanofi and its Affiliates by Scribe under this Agreement with respect to the Licensed Technology are hereby retained by Scribe. All rights and licenses granted under or pursuant to this Agreement, including all rights and licenses to use improvements or enhancements developed during the Term, are intended to be, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy Code or any analogous provisions in any other country or jurisdiction, licenses of rights to "intellectual property" as defined under Section 101(35A) of the Bankruptcy Code. The Parties agree that the licensee of such rights and licenses under this Agreement shall retain and may fully exercise all of its rights and elections under the Bankruptcy Code, including Section 365(n) of the Bankruptcy Code, or any analogous provisions in any other country or jurisdiction. All of the rights granted to either Party under this Agreement, to the extent it is in effect at such time, shall be deemed to exist immediately before the occurrence of any bankruptcy case in which the other Party is the debtor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9 Hemoglobin-Related Targets**. The list of Hemoglobin-Related Targets, as agreed by the Parties as of the Effective Date, is set forth on Exhibit 2.9. During the Restricted Period, to the extent Sanofi desires to add an additional target to Exhibit 2.9, it shall first consult with Scribe. Such consultation shall occur within [\*] of Sanofi's request and during such consultation the Parties will discuss in an attempt to agree upon whether such target meets the definition of a Hemoglobin-Related Target. In the event that, after such consultation, Sanofi reasonably believes that such target meets the definition of a Hemoglobin-Related Target and Scribe does not believe that such target meets the definition of a Hemoglobin-Related Target, then the Parties shall submit the matter to an independent expert with expertise in the field of hemoglobinopathies for a binding decision on the Parties. Such independent expert shall be instructed to make its determination by confirming the existence of any (i) published literature or data, (ii) public presentation or, (iii) non-public information or data obtained by, or generated by or on behalf of Sanofi indicating that such target meets the definition of a Hemoglobin-Related Target. Sanofi may provide such non-public information or data to the independent expert on a confidential basis and Sanofi shall have no obligation to, and the independent expert shall not, provide such information or data to Scribe. If the Parties agree that target meets the definition of Hemoglobin-Related Target, or if there is a disagreement and such expert decides that the target meets the definition of a Hemoglobin-Related Target, then the target shall be deemed a Hemoglobin-Related Target and Exhibit 2.9 shall be deemed automatically updated to include such target and the Sanofi Alliance Manager will be responsible for distributing to Scribe an updated version of Exhibit 2.9. For clarity, if the Parties disagree on whether such target meets the definition of a Hemoglobin-Related Target, then during the pendency of the notice and discussions and expert determination (if applicable) pursuant to this Exhibit 2.9, Scribe will not grant any Third Party rights with respect to such target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10 [\*]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11 [\*]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.1 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.2 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.3 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.4 [\*].

**ARTICLE 3** 

**DEVELOPMENT; REGULATORY; MANUFACTURING; COMMERCIALIZATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 Alliance Manager**. Within [\*] following the Effective Date, each Party shall appoint an individual to act as the Alliance Manager for such Party (each, an "**Alliance Manager**"). The Alliance Managers shall be the primary point of contact for the Parties regarding the activities contemplated under this Agreement and shall help facilitate all such activities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 Research and Development**. Sanofi shall have the sole and exclusive right and responsibility at its expense (subject to the Development Cost Sharing & Profit/Loss Share Option) for all research and clinical development activities for the Licensed Products in the Field in the Territory, and the development plan for each Licensed Product shall be determined in Sanofi's sole discretion. At the written request of Sanofi, Scribe shall perform certain pre-clinical activities (which may include the design of the gRNA molecules for the applicable Licensed Targets, off-

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target genome editing analysis of the Licensed Editing Compositions and/or performing further activities to improve efficiencies in the Licensed gRNAs) according to a plan to be agreed in writing by the Parties, substantially in the form of the template set forth on Exhibit 3.2 (such plan to include an estimated budget (which shall include man-hours to be provided at the FTE Rate) and timeline) (collectively, the "**Scribe Activities Plan**"). Scribe will conduct its activities under any Scribe Activities Plan and will invoice Sanofi in accordance with the payment terms set forth in such Scribe Activities Plan. Nothing in this Section shall limit Scribe's obligations to perform its obligations as set forth in Sections 2.4, 2.5, 2.6 and 2.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 Diligence**. Sanofi shall use Commercially Reasonable Efforts to obtain Regulatory Approval for [\*] Licensed Product for each Licensed Target in [\*] indication in the Field [\*] of the Major Markets. [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 Regulatory**. During the Term, upon Sanofi's written request, Scribe shall provide to Sanofi all of the regulatory documentation, including Regulatory Filings and CMC Information, with respect to the Licensed Editing Compositions, Licensed gRNAs, or the Licensed Product owned by Scribe; provided that Scribe may redact any portions that are not relating to the Licensed Technology. All Regulatory Filings and Regulatory Approvals for the Licensed Products shall be in the name of, and owned by, Sanofi. Sanofi shall be solely responsible for preparing, obtaining and maintaining all Regulatory Approvals for the Licensed Products in the Field within the Territory, and conducting all related communications with the Regulatory Authorities in the Territory. Sanofi shall, upon Scribe's written request, provide Scribe with a copy of any Regulatory Filings submitted by or on behalf of Sanofi, its Affiliates and sublicensees for Licensed Products in the United States and any Major European Market, but, in each in case, (i) limited to the portions of such Regulatory Filing specifically relating to the Licensed Technology and Sanofi may redact any information that Sanofi reasonably believes are proprietary or sensitive, (ii) such portions of such Regulatory Filing shall be provided for informational purposes only, and (iii) such portions of such Regulatory Filing shall be treated as Sanofi's Confidential Information for the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5 Manufacturing**. Following completion of the technology transfer described in Section 2.5 and/or any transfer of supplies of Licensed Materials, Sanofi shall be solely responsible (whether on its own or through one or more CMOs) for the manufacture of all pre-clinical, clinical, and commercial supplies of the corresponding Licensed Product in the Field for use in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6 Commercialization**. Subject to the Co-Promotion Option, Sanofi shall have the sole and exclusive right and responsibility for the Commercialization of the Licensed Products in the Field in the Territory including controlling all marketing and sales activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.7 Records**. Each Party shall maintain, or cause to be maintained, written (or electronic) records of its Development activities with respect to each Licensed Product, in each case in sufficient detail and in good scientific manner appropriate for patent and compliant regulatory purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.8 Reporting**. On a Licensed Target-by-Licensed Target basis, beginning as of the Effective Date for the Initial Licensed Target set forth on Exhibit 2.3.1, and beginning at such time as the gRNA Candidate Validation Criteria is met or Program Advancement occurs for any Additional Licensed Target or Replacement Licensed Target, and ending upon the first Regulatory Approval of a Licensed Product directed to such Licensed Target, Sanofi's Alliance Manager shall provide to Scribe's Alliance Manager written [\*] summarizing, in reasonable detail, Sanofi's Development efforts in the Major Markets with respect to such Licensed Target during the prior [\*] period, a summary of anticipated Development efforts in the Major Markets with respect to such Licensed Target for the subsequent [\*] period and, the anticipated date of First Commercial Sale of the first Licensed Product, provided, that while the JFDC is in effect, Sanofi shall have no reporting obligation under this Section 3.8 in respect of the Profit/Loss Share Products. Such reports will be Sanofi's Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.9 Development Cost Sharing & Profit/Loss Share Option**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.1 **Development Cost Sharing & Profit/Loss Share Option**. Scribe shall have a one-time option, exercisable in its sole discretion, for only one (1) Licensed Target (other than the Initial Licensed Target or any Replacement Licensed Target replacing the Initial Licensed Target) to co-fund Development Costs for such Licensed Target, in return for a share of U.S. profits and losses for such Licensed Target, on the terms and conditions set forth herein (the "**Development Cost Sharing & Profit/Loss Share Option**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.2 **Development Cost Sharing & Profit/Loss Share Terms and Conditions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that Scribe exercises the Development Cost Sharing & Profit/Loss Share Option in accordance with Section 3.9.3(b), (i) Scribe shall fund [\*] of Development Costs pursuant to Section (c) and (ii) the Parties shall enter into an agreement (the "**Development Cost Sharing & Profit/Loss Share Agreement**") providing for the Parties to share, [\*], U.S. profits and losses of each Profit/Loss Share Product, on the terms and conditions set forth in Exhibit 3.9.2 and such other terms and conditions as the parties may mutually agree. The Parties agree to use Commercially Reasonable Efforts to negotiate and enter into the Development Cost Sharing & Profit/Loss Share Agreement no later than the first anticipated approval of an IND for a Profit/Loss Share Product. Until such time as the Development Cost Sharing & Profit/Loss Share Agreement is entered into by the Parties, the terms of Exhibit 3.9.2 shall govern related activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, in connection with the exercise by Scribe of the Development Cost Sharing & Profit/Loss Share Option, the royalties payable by Sanofi under this Agreement shall be adjusted as provided in Section 4.6.1. For the avoidance of doubt, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within [\*] after the end of each Calendar Quarter during the Profit/Loss Share Term, Sanofi shall invoice Scribe for [\*] of Development Costs incurred by Sanofi in the previous Calendar Quarter and Scribe shall pay to Sanofi the invoiced amount not later than [\*] after receipt of such invoice. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.3 **Process**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At least [\*] prior to the first anticipated approval of an IND for a Licensed Product directed to a Licensed Target other than the Initial Licensed Target, Sanofi shall provide to Scribe: (i) the current summary report of the research and preclinical results for such Licensed Target, and (ii) a current development plan (specifying the intended number of indications, the plans for pivotal trials, and the estimated number of patients, etc.) and estimated budget for Development Costs for such Licensed Target (the "**Report**").

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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;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the [\*] period following delivery of the Report, Scribe may exercise the Development Cost Sharing & Profit/Loss Share Option by providing written notice of such exercise to Sanofi. In the event that no such notice is given during such [\*] period, or if Scribe shall provide written notice to Sanofi that it declines to exercise the Development Cost Sharing & Profit/Loss Share Option, then the Development Cost Sharing & Profit/Loss Share Option shall remain unexercised and exercisable in the future with respect to another Licensed Target (other than the Initial Licensed Target).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Concurrent with any exercise by Scribe of the Development Cost Sharing & Profit/Loss Share Option pursuant to Section 3.9.3(b), Scribe shall provide information to demonstrate that: [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.4 **Profit/Loss Share Term.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The "**Profit/Loss Share Term**" shall commence, on a Profit/Loss Share Product-by-Profit/Loss Share Product basis upon the first IND approval for a Profit/Loss Share Product and terminate upon the earliest to occur of: (i) the later to occur of (a) the date on which no Valid Claim Covers the sale such Profit/Loss Share Product in the U.S., and (b) the date that is [\*] after the date of the First Commercial Sale of such Profit/Loss Share Product in the U.S., (ii) termination by Sanofi pursuant to Section 3.9.4(b), and (iii) any other termination of the Development Cost Sharing & Profit/Loss Share 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that: (i) Scribe breaches its obligation to fund [\*] of Development Costs pursuant to Section 3.9.2(c) (and fails to cure such breach within [\*], or (ii) Scribe provides [\*] prior written notice to Sanofi that it desires to opt-out of sharing of Development Costs pursuant to Section 3.9.2(c), then Sanofi, in its sole discretion, may elect (and in the case of clause (ii), Sanofi shall elect without any discretion right) to terminate the Profit/Loss Share Agreement, the Profit/Loss Share Term and the other rights and obligations of Scribe pursuant to this Section 3.9, upon [\*] prior written notice to Scribe, provided, in the case of termination pursuant to the foregoing clause (ii), the effectiveness of such termination shall be no later than the end of such [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon termination or expiration of the Profit/Loss Share Term, this Section 3.9 shall be of no further force and effect, and the other terms and conditions of this Agreement will instead control with regards to the Profit/Loss Share Target and the Profit/Loss Share Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.5 **Change of Control of Scribe to a Major Biopharmaceutical Company**. Upon any Change of Control of Scribe in a transaction with a Major Biopharmaceutical Company [\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.10 Co-Promotion Option**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10.1 **Co-Promotion Option**. Scribe shall have a one-time option, exercisable in its sole discretion, to engage in [\*] of Detailing efforts with respect to Licensed Products, on the terms and conditions set forth herein (the "**Co-Promotion Option**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10.2 **Co-Promotion Terms and Conditions**. In the event that Scribe exercises the Co-Promotion Option in accordance with Section 3.10.3, the Parties shall enter into an agreement (the "**Co-Promotion Agreement**"), on the terms and conditions set forth in Exhibit 3.10.2 and such other reasonable and customary terms as the Parties shall mutually agree. The Parties agree to use Commercially Reasonable Efforts to negotiate and enter into the Co-Promotion Agreement no later than the date that is [\*] prior to the first anticipated First Commercial Sale of a Licensed Product in the U.S., as such anticipated First Commercial Sale date is reported by Sanofi to Scribe in writing at least [\*] in advance of such anticipated date. Until such time as the Co-Promotion Agreement is entered into by the Parties, the terms of Exhibit 3.10.2 shall govern related activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10.3 **Process**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Scribe may exercise the Co-Promotion Option during the period beginning at least [\*] prior to, and ending [\*] prior to, the first anticipated First Commercial Sale of a Licensed Product in the U.S., as such anticipated First Commercial Sale date is reported by Sanofi to Scribe in writing at least [\*] in advance of such anticipated date. Scribe may exercise the Co-Promotion Option by providing written notice of such exercise to Sanofi during such period. In the event that no such notice is given by Scribe during such period, or if at any time Scribe shall provide written notice to Sanofi that it declines to exercise the Co-Promotion Option, then the Co-Promotion Option shall be null and void or of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Co-Promotion Option shall not be exercisable by Scribe if: (i) the Development Cost Sharing & Profit/Loss Share Option shall not have been duly exercised by Scribe or the Profit/Loss Share Term has expired or been terminated, or (ii) Scribe is in breach of its obligations to fund [\*] of Development Costs pursuant to Section 3.9.2(c) or under the Profit/Loss Share 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;&nbsp;&nbsp;&nbsp;&nbsp;(c) Concurrent with any exercise by Scribe of the Co-Promotion Option pursuant to Section 3.10.3(a), Scribe shall provide information to demonstrate that: (i) Scribe has the necessary resources in place to engage in [\*] of Detailing efforts for Licensed Products using Scribe's own sales force (and not a contract sales force),\*\*\* and (ii) there has been no Change of Control of Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event of any Dispute as to the satisfaction of the conditions set forth in Sections 3.10.3(b) and 3.10.3(c), the Co-Promotion Option shall not be deemed to have been exercised by Scribe unless and until any such Dispute is finally resolved in favor of Scribe having satisfied such conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10.4 **Co-Promotion Term**. The "**Co-Promotion Term**" shall commence upon exercise by Scribe of the Co-Promotion Option and terminate on a Licensed Product-by-Licensed Product basis, upon the earliest to occur of: (i) Biosimilar Launch with respect to such Licensed Product, (ii) at the election of Sanofi, in its sole discretion, upon [\*] prior written notice to Scribe, in the event of a Change of Control of Scribe, and (iii) any termination of the Co-Promotion Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10.5 **Change of Control of Scribe**. Upon any Change of Control of Scribe prior to exercise of the Co-Promotion Option, the Co-Promotion Option shall automatically expire and no longer be available to Scribe or its successors or assigns.

**ARTICLE 4** 

**FEES, ROYALTIES, AND PAYMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Upfront Payment**. As partial consideration for the rights granted by Scribe to Sanofi pursuant to the terms of this Agreement, within [\*] after its receipt of an invoice for such amount (such invoice to be submitted to Sanofi no earlier than the Effective Date), Sanofi shall pay to Scribe a one-time, non-refundable and non-creditable payment of forty million dollars (USD$40,000,000) (the "**Upfront Payment**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Nomination Fee**. Upon the designation of each Additional Licensed Target pursuant to Section 2.3, within [\*] after Sanofi's receipt of an invoice for such amount, Sanofi shall pay to Scribe a one-time , non-refundable and non-creditable payment of [\*] (each such payment, a "**Nomination Fee**"). As set forth in Section 2.3.3, there is no Nomination Fee for a Replacement Licensed Target. For clarity, in no circumstances shall Sanofi be required to pay aggregate Nomination Fees in excess of [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 Payment upon attainment of gRNA Candidate Validation Criteria for Additional Licensed Targets and Replacement Licensed Targets**. Upon receipt of notice from Sanofi of attainment of gRNA Validation Criteria pursuant to Section 2.4.2 for any Additional Licensed Target (or if there is a Program Advancement under Section 2.4.4 for such Additional Licensed Target), and for any Replacement Licensed Target replacing such Additional Licensed Target (if applicable), Scribe shall send an invoice to Sanofi and within [\*] after Sanofi's receipt of such invoice, Sanofi shall pay to Scribe a non-refundable and non-creditable payment of [\*]. Such payment shall be made a maximum of one (1) time for each Additional Licensed Target, and for any Replacement Licensed Target replacing such Additional Licensed Target (if applicable), for a maximum total of all payments made pursuant to this Section 4.3 of [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 Development and Regulatory Milestone Payments**. Subject to the remainder of this Section 4.4, on a Licensed Target-by-Licensed Target basis, Sanofi shall pay to Scribe the payments set forth in the table below (each, a "**Development & Regulatory Milestone Payment**") upon the achievement of the applicable event listed below (each, a "**Development & Regulatory Milestone Event**") for such Licensed Target. Each Development and Regulatory Milestone Payment shall be due one-time only for each Licensed Target.

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| | | |
|:---|:---|:---|
| **No.** | **Development and Regulatory**<br>**Milestone Events** | **Development and Regulatory**<br>**Milestone Payment** |
| 1. | [\*] | [\*] |
| 2. | [\*] | [\*] |
| 3. | [\*] | [\*] |
| 4. | [\*] | [\*] |
| 5. | [\*] | [\*] |
| 6. | [\*] | [\*] |
| 7. | [\*] | [\*] |

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Notwithstanding anything herein to the contrary, in the event that Scribe exercises the Development Cost Sharing & Profit/Loss Share Option, solely with respect to the Profit/Loss Share Target, [\*].

For clarity, in no circumstances shall Sanofi be required to pay Development and Regulatory Milestone Payments in excess of [\*] in respect of each Licensed Target, or, in the event that Scribe exercises the Development Cost Sharing & Profit/Loss Share Option, solely with respect to the Profit/Loss Share Target [\*].

If Development & Regulatory Milestone Event #1, #2 or #3 is not achieved for a Licensed Target, such Development & Regulatory Milestone Event will be deemed achieved and payable upon the first achievement of any higher-numbered Development & Regulatory Milestone Event for such Licensed Target.

For each of the Development & Regulatory Milestone Events, Sanofi shall notify Scribe in writing of the achievement by Sanofi or its Affiliates or sublicensees of such Development & Regulatory Milestone Event no later than [\*] after achievement of such Development & Regulatory Milestone Event. Following the earlier of (i) such notification by Sanofi, or (ii) any public announcement that such Development & Regulatory Milestone Events has been achieved, Scribe will provide Sanofi with an invoice for the corresponding Development & Regulatory Milestone Event, and Sanofi will pay Scribe such Development and Regulatory Milestone Payment no later than [\*] after its receipt of the invoice for such Development and Regulatory Milestone Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 Commercial Sales Milestones**. Subject to the remainder of this Section 4.5, on a Licensed Product-by-Licensed Product basis, Sanofi shall pay to Scribe the payments set forth in the table below (each, a "**Commercial Sales Milestone Payment**") upon the first achievement of the applicable event listed below (each, a "**Commercial Sales Milestone Event**") for such Licensed Product. For clarity, in no circumstances shall Sanofi be required to pay Commercial Sales Milestone Payments in excess of [\*] in respect of each Licensed Product.

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| | | |
|:---|:---|:---|
| **Commercial Sales Milestone Event** | **Commercial Sales<br>Milestone Payment** | **Commercial Sales<br>Milestone Payment** |
|  Net Sales of a Licensed Product in a Calendar Year equal to or exceeding [\*] |  | [\*] |
|  Net Sales of a Licensed Product in a Calendar Year equal to or exceeding [\*] |  | [\*] |
|  Net Sales of a Licensed Product in a Calendar Year equal to or exceeding [\*] |  | [\*] |
|  Net Sales of a Licensed Product in a Calendar Year equal to or exceeding [\*] |  | [\*] |

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Each Commercial Sales Milestone Payment shall be due and payable only once per Licensed Product. For each of the Commercial Sales Milestone Events, Sanofi shall notify Scribe in writing of the achievement by Sanofi or its Affiliates or sublicensees of such Commercial Sales Milestone Event no later than [\*] after the end of the Calendar Quarter in which the Commercial Sales Milestone Event is achieved. Following the earlier of (i) such notification by Sanofi, or (ii) any public announcement that such Commercial Sales Milestone Event has been achieved, Scribe will provide Sanofi with an invoice for the corresponding Commercial Sales Milestone Event, and Sanofi will pay Scribe such Commercial Sales Milestone Payment no later than [\*] after its receipt of the invoice for such Commercial Sales Milestone Payment. If more than one Commercial Sales Milestone Event is achieved in any given Calendar Year with respect to a Licensed Product, then only the first Commercial Sales Milestone Payment shall be paid in such Calendar Year, and the following Commercial Sales Milestone Payments shall be paid by January 31<sup>st</sup> of the following Calendar Years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6 Royalties**. Subject to the remainder of this Section 4.6, during the Royalty Term for a Licensed Product, on a Licensed Product-by-Licensed Product and country-by-country basis, Sanofi shall pay Scribe royalties on Net Sales of such Licensed Product, as calculated by multiplying the applicable royalty rate set forth below by the corresponding portion of Net Sales of such Licensed Product in a Calendar Year.

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| | | |
|:---|:---|:---|
| **Net Sales of Licensed Product in a Calendar Year** | **Royalty Rate** | **Royalty Rate** |
|  [\*] |  | [\*] |
|  [\*] |  | [\*] |
|  [\*] |  | [\*] |
|  [\*] |  | [\*] |
|  [\*] |  | [\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1 **Royalty Adjustments Under the Profit/Loss Share**. Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that Scribe exercises the Development Cost Sharing & Profit/Loss Share Option, during the Profit/Loss Share Term, solely with respect to Licensed Products directed to the Profit/Loss Share Target, each of the royalty rates set forth in the table above shall be increased by [\*]. For clarity, [\*].

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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;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of termination of the Profit/Loss Share Term by Sanofi pursuant to Section 3.9.4(b), for the remainder of the Royalty Term, for each calculation of royalties pursuant to Section 4.6, the royalties payable shall be increased by an amount equal to the Adjustment Factor, *<u>multiplied by</u>* [\*] *<u>multiplied by</u>* the amount of Net Sales of the applicable Licensed Product in the United States during the applicable [\*] for which royalties are being calculated. For clarity, [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2 **Valid Claim**. Subject to Section 4.6.5, on a Licensed Product-by-Licensed Product and country-by-country basis, for any Calendar Quarter during the Royalty Term when no Valid Claim Covers the sale of such Licensed Product in such country, the amount of royalties payable pursuant to this Section 4.6 shall be reduced, for each such country where no Valid Claim Covers the sale of such Licensed Product in such country, by an amount equal to [\*] *<u>multiplied by</u>* the Blended Royalty Rate *<u>multiplied by</u>* the amount of Net Sales of such Licensed Product in such country during such [\*]. An illustrative example of this calculation is set forth in Exhibit 4.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.3 **Biosimilar Entry**. Subject to Section 4.6.5, on a Licensed Product-by-Licensed Product and country-by-country basis, after Biosimilar Launch in such country, for the remainder of the Royalty Term, for each calculation of royalties pursuant to this Section 4.6, the amount of royalties payable shall be reduced, for each such country where Biosimilar Launch has occurred, by an amount equal to the Reduction Percentage *<u>multiplied by</u>* the Blended Royalty Rate *<u>multiplied by</u>* the amount of Net Sales of such Licensed Product in such country during the applicable Calendar Quarter for which royalties are being calculated. For clarity, if the Reduction Percentage is [\*] for a country, no adjustment to the royalties shall be made pursuant to this Section 4.6.3 in respect of such country. An illustrative example of this calculation is set forth in Exhibit 4.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.4 **Third Party Payments**. Subject to Section 4.6.5, if Sanofi or any of its Affiliates acquires, in-licenses or otherwise obtains rights from a Third Party under an arms' length transaction, Intellectual Property that Covers the composition of matter or use of the sequences of the applicable [\*] for a Licensed Product that contains or comprises such composition of matter, or is manufactured using such Licensed Editing Compositions or Licensed gRNAs, Sanofi may deduct [\*] of any amounts paid by Sanofi to such Third Party in consideration for such Intellectual Property, from any royalty payments to Scribe under this Section 4.6 with respect to such Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.5 **Cumulative Reductions Floor**. On a Licensed Product-by-Licensed Product basis, in no event will the aggregate amount of royalties due to Scribe for a Licensed Product during a Calendar Quarter be reduced, by reason of Sections 4.6.2, 4.6.3 or 4.6.4 to below the greater of (a) [\*] of Net Sales during such [\*], or, in the event that Net Sales of such Licensed Product in any country in any [\*] is an amount that is lower than [\*] of Baseline Net Sales, then [\*] of Net Sales during such [\*], and (b) the lesser of (i) [\*] and (ii) the royalty as calculated pursuant to the first paragraph of this Section 4.6, as adjusted pursuant to Section 4.6.1, as applicable, and without any deductions under Sections 4.6.2, 4.6.3, 4.6.4 and 9.4.2 (the "**Floor**"). However, in the event there are amounts covered under Sections 4.6.2, 4.6.3 or 4.6.4 that Sanofi is unable to credit due to the Floor, then Sanofi shall be entitled to carry over such uncredited amounts and credit them in future [\*], subject to the Floor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7 Reports; Method of Payment; Foreign Exchange**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.1 Within [\*] after the end of each [\*], commencing with the [\*] during which any Net Sales of any Licensed Products are made anywhere in the Territory, Sanofi shall deliver a report to Scribe specifying on a Licensed Product-by-Licensed Product and country-by-country basis: (i) the amount of gross sales of the Licensed Products in the relevant [\*]; (ii) Net Sales in the relevant [\*]; (iii) to the extent such Net Sales include sales not denoted in U.S. dollars, a summary of the current exchange rate methodology then in use by Sanofi (in accordance with the remainder of this Section 4.7.1); (iv) a calculation of any adjustments to such royalties under Sections 4.6.2, 4.6.3 or 4.6.4 (subject to Section 4.6.5, but for purposes of such report, without regard to clause (b) of Section 4.6.5); and (v) a calculation of the final royalties payable to Scribe on such Net Sales. Sanofi shall pay the amount of royalties set forth in such report within [\*] after the end of [\*]. All reports delivered pursuant to this Section 4.7.1 will be Sanofi's Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.2 In the event that any report delivered pursuant to Section 4.7.1 reflects any adjustments to such royalties under Sections 4.6.2, 4.6.3 or 4.6.4 and Scribe believes, acting reasonably, that the applicable Floor in respect of a [\*] should be calculated as set out in clause (b) of Section 4.6.5, Scribe shall notify Sanofi in writing of its calculation of the Floor, and the additional amount of royalties owed by Sanofi to Scribe upon application of such Floor, within [\*] of delivery by Sanofi of the relevant report in accordance with Section 4.7.1, such notice to contain such supporting documentation as is necessary for Sanofi to verify such calculations (an "**Adjusted Floor Notice**"). Concurrently with delivery of the Adjusted Floor Notice, Scribe shall deliver to Sanofi an invoice for the corresponding additional amount of royalties owed by Sanofi to Scribe upon application of such Floor. Sanofi shall pay the additional amount of royalties owed by Sanofi to Scribe upon application of such Floor within [\*] after receipt of such invoice. In the event Sanofi shall dispute the additional amount of royalties owed by Sanofi to Scribe upon application of such Floor, Sanofi shall only pay the undisputed amount (if any) of such additional royalties, pending resolution of such dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.3 The Parties shall, without prejudice to their other rights under this Agreement, seek in good faith to reach agreement on the disputed items in any net sales report in accordance with Section 4.7.1 or any Adjusted Floor Notice. Sanofi is entitled to select and engage the services of an external independent auditor to assist with the calculation of royalties payable pursuant to this Agreement, including the calculation of the Floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.4 Unless otherwise agreed by the Parties, all payments due under this Agreement shall be paid in U.S. dollars by wire transfer or electronic funds transfer of immediately available funds to an account designated by Scribe. If any currency conversion is required in connection with the calculation of amounts payable under this Agreement, that conversion shall be made using the same exchange rates used by Sanofi for its own public financial reporting purposes, or if none is used, then the average of the buying and selling rates on the last Business Day of the Calendar Quarter to which the amount applies as published by the U.S. Federal Reserve.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8 Records and Audits**. Each Party shall keep, and shall cause its Affiliates and sublicensees to keep, records in accordance with Accounting Standards. Such records shall be kept for such period of time required by Applicable Laws. Each Party shall have the right, not more than once per Calendar Year, to have an internationally recognized independent accounting firm inspect the other Party's records for the purpose of (a) in the case of Scribe, determining the accuracy of royalty payments or Development Costs payments paid to it by Sanofi, and (b) in the case of Sanofi, determining that any royalty payments payable by Scribe to the Regents in respect of sales of Licensed Products that are subject to an Adjusted Floor Notice have been duly paid. No period shall be audited more than once, and, in respect of any Calendar Year, each Party's right to audit the records in respect of any period during such Calendar Year shall expire [\*] after the end of such Calendar Year. The accounting firm selected shall keep confidential any information obtained during such inspection and shall report to the Parties only the amounts of Net Sales and royalties due and payable, and/bor paid, as applicable. Such audits may be exercised during normal business hours upon reasonable prior written notice to the other Party. If it is determined that (i) additional royalties are owed by Sanofi, Sanofi shall pay to Scribe the additional royalties within [\*] of the date the accounting firm's written report is received by Sanofi, or (ii) Sanofi has overpaid royalties, then, Sanofi may credit the amount of such overpayment against any payments payable to Scribe after the date on which the accounting firm's report is received by Sanofi, or (iii) Scribe has not paid to the Regents any amount payable by Scribe to the Regents in respect of sales of Licensed Products, Sanofi may credit the amount of any such non-payment against any payments payable to Scribe after the date on which the accounting firm's report is received by Sanofi. The fees charged by the accounting firm of such accountant shall be paid (x) in respect of an audit by Scribe pursuant to sub-clause (a) above, by Scribe unless any additional royalties owed exceed [\*] of the royalties paid for the royalty period subject to the audit, in which case Sanofi shall pay the reasonable fees of such accounting firm, or (y) in respect of an audit by Sanofi pursuant to sub-clause (b) above, by Sanofi unless any non-payment is determined, in which case Scribe shall pay the reasonable fees of such accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9 Default Interest**. If and to the extent that any Party fails to make any payment hereunder when due in accordance with the applicable provisions of this Agreement, the defaulting Party shall pay to the other Party default interest at a rate equal to [\*] above prime rate (as reported in the Wall Street Journal) per annum as from the due date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10 UC Berkeley License Payments**. As between the Parties, Scribe will be solely responsible for making the payments owed to the Regents under the UC Berkeley License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.11 Taxes**. The Upfront Payment, milestones, royalties and other amounts payable by Sanofi to Scribe under this Agreement (each, a "**Payment**") shall be paid free and clear of any and all taxes, except for any withholding taxes required by Applicable Law. Sanofi shall deduct or withhold from the Payments any taxes that it is required by Applicable Law to deduct or withhold. Notwithstanding the foregoing, if Scribe is entitled under any applicable tax treaty to a reduction of rate of, or the elimination of, applicable withholding tax, it may deliver to Sanofi or the appropriate Governmental Authority (with the assistance of Sanofi to the extent that this is reasonably required and is expressly requested in writing) the prescribed forms necessary to reduce the applicable rate of withholding or to relieve Sanofi of its obligation to withhold such tax and Sanofi shall apply the reduced rate of withholding or dispense with withholding as the case may be; provided that Sanofi has received evidence of Scribe's delivery of all applicable forms (and, if necessary, its receipt of appropriate governmental authorization) at least [\*] prior to the time Payments are due. If in accordance with the foregoing, Sanofi withholds any amounts of tax, it shall pay to Scribe the balance when due, make timely payment to the proper tax authority of the withheld amount and send to Scribe proof of such payment within [\*] following such payments.

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**ARTICLE 5** 

**INTELLECTUAL PROPERTY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Background IP**. As between the Parties, each Party solely owns and will continue to solely own all rights, title and interests (including all Intellectual Property rights) in and to such Party's Background IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Ownership of New IP**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1 As between the Parties, inventorship of New IP shall be determined in accordance with U.S. patent laws, and, except as otherwise expressly set forth herein, ownership will follow inventorship. All such determinations shall be documented to ensure any Patents reflect appropriate inventorship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2 Scribe shall solely own all New IP that Covers or is directed to (i) an improvement, enhancement, modification [\*] or variation specific to any Licensed Editing Compositions [\*] and/or any modification to the nucleotide sequence of any Licensed gRNAs, or (ii) any method of use specific to any of the foregoing (the "**Scribe Platform IP**"). Sanofi shall assign and hereby assigns to Scribe all of its right, title and interest in and to the Scribe Platform IP. Sanofi shall promptly disclose to Scribe any Scribe Platform IP that is generated by Sanofi and/or its Affiliates, including all information relating to such Scribe Platform IP to the extent necessary or useful for the preparation, filing and maintenance of any Patents with respect to such Scribe Platform IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3 Sanofi shall solely own (a) any New IP conceived or reduced to practice solely by or on behalf of Sanofi or its Affiliates that Covers or is directed to (i) [\*] (the "**Sanofi mRNA Modifications**") and (ii) [\*] (the "**Sanofi gRNA Modifications**") and (b) subject to Section 5.2.2, any New IP that is specific to a Licensed Product (collectively, (a) and (b), the "**Sanofi Licensed Product IP**"). Scribe shall assign and hereby assigns to Sanofi all of its right, title and interest in and to the Sanofi Licensed Product IP. Scribe shall promptly disclose to Sanofi any Sanofi Licensed Product IP that is generated by Scribe and/or its Affiliates, including all information relating to such Sanofi Licensed Product IP to the extent necessary or useful for the preparation, filing and maintenance of any Patents with respect to such Sanofi Licensed Product IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.4 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.5 The Party required to assign (the "**Assigning Party**") to the other Party (the "**Owning Party**") rights in any New IP or New gRNA IP (the "**Assigned IP**") pursuant to Sections 5.2.2, 5.2.3 or 5.2.4 will take (and cause its Affiliates, and their respective employees, agents and contractors to take) such further actions reasonably requested by the Owning Party to evidence such assignment and to assist the Owning Party in obtaining Patent and other intellectual property protection for such Assigned IP, including executing further assignments, consents, releases and other commercially reasonable documentation and providing good faith testimony by affidavit, declaration, in-person or other proper means in support of any effort by the Owning Party to

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establish, perfect, defend or enforce its rights in any such Assigned IP through prosecution of governmental filings, regulatory proceedings, litigation and other means, including through the Prosecution and Maintenance and enforcement of such Assigned IP. Without limitation, the Assigning Party will cooperate with the Owning Party if the Owning Party applies for U.S. or foreign patent protection for such Assigned IP and will obtain the cooperation of the individual inventors of any such Assigned IP. If the Assigning Party is unable to assign any Assigned IP, then the Assigning Party hereby grants and agrees to grant to the Owning Party a royalty-free (but subject to payments under this Agreement), fully paid-up (but subject to payments under this Agreement), exclusive (even as to the Assigning Party, subject to the terms of this Agreement, including the licenses granted to the Assigning Party pursuant to Article 2, perpetual, irrevocable license (with the right to grant sublicenses through multiple tiers) under such Assigned IP for any and all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 Sanofi mRNA Modifications and Sanofi gRNA Modifications**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1 Sanofi and its Affiliates may use: (a) [\*], and (b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2 Sanofi and its Affiliates may use: (a) [\*], and (b) [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.3 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 gRNA Data**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.1 Upon Scribe's written request, Sanofi will promptly provide to Scribe [\*]. Subject to Section 5.4.3, Scribe shall have the right to [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.2 [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.3 Scribe and Sanofi will coordinate the filing of each Party's patent applications that (i) contain [\*] and (ii) are Covering New IP initially conceived for [\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5 Patent Prosecution and Maintenance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.1 Scribe shall have the sole right, but not the obligation, to control the Prosecution and Maintenance of the Licensed Patents and Scribe Platform IP, worldwide, using counsel of its own choice at its expense. Sanofi will have the review and comment rights set forth in Section 5.5.3 with respect to Scribe's Prosecution and Maintenance of any (i) Licensed Patents that Cover Licensed gRNAs, (ii) Assigned IP for which Sanofi is the Assigning Party, and (iii) any New Scribe IP that Sanofi intends to incorporate in a Licensed Product. Scribe shall promptly disclose to Sanofi any New Scribe IP and within [\*] of such disclosure, Sanofi shall provide notice to Scribe of Sanofi's good faith determination of whether it intends to incorporate such New Scribe IP into a Licensed Product. Scribe will not make damaging comments with regards to any Licensed Editing Composition or Licensed gRNA (or parts thereof). Scribe will discuss its Unified Patent Court opt-out and its unitary effect filings strategies with Sanofi and will consider in good faith Sanofi's timely and reasonable comments on Scribe's Unified Patent Court opt-out and unitary effect filings strategies.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.2 Sanofi shall have the sole right, but not the obligation, at Sanofi's sole cost to control the Prosecution and Maintenance of the Sanofi Licensed Product IP, worldwide, using counsel of its own choice. Scribe will have the review and comment rights set forth in Section 5.5.3 with respect to Sanofi's Prosecution and Maintenance of Sanofi Licensed Product IP that Cover compositions of matters (excluding formulation claims) that include Licensed Editing Compositions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.3 The Party that is responsible for providing review and comment rights with respect to the Prosecution and Maintenance of a given Patent in accordance with Sections 5.5.1 and 5.5.2 (the "**Prosecuting Party**") will provide the other Party (the "**Non-Prosecuting Party**") with drafts of all proposed substantive filings and correspondence to any patent authority in connection with the Prosecution and Maintenance of the applicable Patents subject to the Non-Prosecuting Party's review and comment pursuant to Sections 5.5.1 and 5.5.2 for the Non-Prosecuting Party's review and comment as soon as reasonably practicable taking into account the Prosecuting Party's proposed filing timelines. The Prosecuting Party will consider in good faith the Non-Prosecuting Party's timely and reasonable comments on the Prosecution and Maintenance of such Patents. The Prosecuting Party will keep the Non-Prosecuting Party reasonably informed of the status of the Prosecution and Maintenance of the applicable Patents for which the Prosecuting Party is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.4 Both Parties will use good faith efforts to obtain Patents to New IP that covers or is incorporated into Licensed Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.5 <u>Patent Extensions</u>. Sanofi will have the sole and exclusive right, but not the obligation, to make decisions regarding, and to apply for, patent term extensions, supplemental protection certificates, and the like for any Patents included in the Sanofi Licensed Product IP that Cover Licensed Products (including any component thereof) in each country and jurisdiction where it is possible to do so. If requested by Sanofi, Scribe will reasonably cooperate with Sanofi in obtaining said patent term extensions, or supplemental protection certificates, and the like.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.6 <u>Patent Listings</u>. As between the Parties, Sanofi will have the sole right to make all patent listings of Patents Covering Licensed Products (including any components thereof), or other Patent-related submissions with Regulatory Authorities for the Licensed Products. Scribe will cooperate with Sanofi's reasonable requests in connection therewith, including meeting any submission deadlines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.7 The Non-Prosecuting Party will fully cooperate with the Prosecuting Party in connection with the Prosecution and Maintenance of such Patents. Each Party will promptly notify the other Party of any opposition by a Third Party or similar adverse proceeding by a Third Party with respect to a Licensed Patent or Patent Covering Licensed Products (including any components thereof) of which it becomes aware.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6 Enforcement of Sanofi Licensed Product IP**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.1 Each Party will use good faith and reasonable efforts to notify the other Party of any infringement, misappropriation or other violation by a Third Party of any Licensed Patent or Patent Covering Licensed Editing Compositions or Licensed Products (including any components thereof) in the Territory of which it becomes aware, including any declaratory judgment or similar action alleging invalidity, unenforceability or non-infringement with respect to any such Patent (collectively, "**Infringement**"). If a Party is provided a written declaration of non-infringement, the receiving Party shall provide the other Party notice of such declaration within [\*] of its initial receipt of such declaration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.2 Sanofi shall have the sole right, but not the obligation, at Sanofi's sole cost to bring and control any legal action (including settlements thereof) in connection with any Infringement of Patents within the Sanofi Licensed Product IP and shall have the first right, but not the obligation, to bring and control any legal action (including settlements thereof) in connection with any Infringement of any Licensed Patents that solely Cover Licensed gRNAs incorporated into Licensed Products. At the request of Sanofi, Scribe shall provide reasonable assistance in connection with such legal action, including by executing reasonably appropriate documents, cooperating in discovery and joining as a party to the action if required by Applicable Laws to pursue such action. Any recoveries (including any settlement) will be allocated in the following order: (i) to reimburse Sanofi for the costs and expenses (including attorneys' and professional fees) that Sanofi incurred in connection with such action, to the extent not previously reimbursed; (ii) to reimburse Scribe, where it joins a legal action, for the costs and expenses (including attorneys' and professional fees) that Scribe incurred in connection with such action, to the extent not previously reimbursed; and (iii) any recoveries in excess of such costs and expenses will be retained by Sanofi but treated as Net Sales and subject to the payment of royalties under Section 4.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.3 Except as provided in Section 5.6.2, Scribe will have the right, but not the obligation, to defend, and take other actions (including to settle), with respect to such claim of Infringement as it relates to Licensed Patents, in its own cost and expense. With regard to any enforcement actions that relate to Licensed Patents that Cover any Licensed Products, Scribe will discuss its enforcement strategies with Sanofi and will consider in good faith Sanofi's timely and reasonable comments on Scribe's enforcement strategies. Any recoveries resulting from actions under this Section 5.6.3 will first be applied to reimburse the Parties for any the costs and expenses (including attorneys' and professional fees) that such Party incurred in connection with such action, and any remainder will be divided equally between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7 Defense of Third Party Claims**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.1 Each Party will promptly notify the other Party of any claim made in writing to such Party alleging that the research, development, manufacture, commercialization or other exploitation of the Licensed Products or the practice of the Licensed Patents hereunder, Scribe Platform IP, or Sanofi Licensed Product IP in the Territory infringes, misappropriates or otherwise violates any Patents, Know-How or other intellectual property rights of any Third Party ("**Third Party Infringement**"). Except as otherwise set forth in this Section 5.7, each Party shall have the sole right, but not the obligation, to defend, and take other actions (including to settle), with respect to any claim of Third Party Infringement made against such Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.2 Notwithstanding the foregoing, Sanofi will have the sole right, but not the obligation, at Sanofi's sole cost to defend, and take other actions (including to settle), with respect to any claim of Third Party Infringement related to Sanofi Licensed Product IP and the first right, but not the obligation, to defend, and take other actions (including to settle), with respect to any claim of Third Party Infringement related to Licensed gRNAs incorporated into a Licensed Product. If requested by Sanofi or required by applicable law, Scribe would join as a party to any action or proceedings concerning Sanofi Licensed Product IP or Licensed gRNAs incorporated into a Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.3 With regard to any defense actions that relate to Licensed Patents that Cover any Licensed Products, Scribe will discuss its defense strategies with Sanofi and will consider in good faith Sanofi's timely and reasonable comments on Scribe's defense strategies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.8 Litigation Costs.** Any litigation costs that are not recoverable from a Third Party or compensated by the damages received from a Third Party for any action under Section 5.6 or 5.7 will be deducted from the Net Sales that are subject to Sanofi's royalty payment obligations under Section 4.6 (Royalties).

**ARTICLE 6** 

**REPRESENTATIONS, WARRANTIES AND COVENANTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 Mutual Representations and Warranties**. Each of Sanofi and Scribe represents and warrants, as of the Effective Date, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 it is duly organized and validly existing under in the Applicable Laws of the jurisdiction of its incorporation or formation, as applicable, has full corporate, limited liability company or other power and authority, as applicable, to enter into this Agreement and to carry out the provisions hereof, and has sufficient facilities, experienced personnel or other capabilities (including via Affiliates or Third Parties) to enable it to perform its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the individual executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate, limited liability company or other action, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3 this Agreement is legally binding upon it and enforceable in accordance with its terms (except as the enforceability thereof may be limited by bankruptcy, bank moratorium or similar laws affecting creditors' rights generally and laws restricting the availability of equitable remedies and may be subject to general principles of equity whether or not such enforceability is considered in a proceeding at law or in equity) and the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate action and do not and shall not: (a) conflict with, or constitute a default or result in a breach under, any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, or violate any Applicable Law; or (b) require any consent or approval of its stockholders or similar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 Additional Representations and Warranties of Scribe**. Scribe represents and warrants, as of the Effective Date, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1 it has the full right, power and authority to grant all of the licenses and rights granted to Sanofi under this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2 there is no pending litigation against Scribe, or litigation that has been threatened in a writing received by Scribe, that alleges that Scribe's practice of the Licensed Technology prior to the Effective Date has infringed, misappropriated, or otherwise violated, or would infringe, misappropriate, or otherwise violate, any Intellectual Property of any Third Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3 there are no claims, judgments, or settlements awarded or pending against, or amounts with respect thereto owed by Scribe with respect to the Licensed Technology, and Scribe has not received written notice threatening any such claims, judgments, or settlements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.4 no Third Party has challenged the ownership, validity or enforceability, of any Licensed Patents, through a declaratory judgment, post grant review, inter partes review, or any other action or proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.5 the Licensed Patents existing as of the Effective Date are set forth on Exhibit 6.2.5, and each Licensed Patent (a) has been properly maintained and is not invalid or unenforceable, in whole or in part, (b) is in full force and effect and has been filed and Prosecuted and Maintained in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.6 to Scribe's knowledge, no Third Party is infringing the Licensed Patents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.7 all fees required to be paid by Scribe in any jurisdiction in order to maintain the Licensed Patents have been timely paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.8 it has not previously assigned, transferred, or granted any license or other rights under the Licensed Technology in any way that would conflict with the licenses granted to Sanofi hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.9 it has obtained from all individuals who participated in any respect in the invention, authorship or other creation by or on behalf of Scribe or its Affiliates of any Scribe-owned Licensed Technology valid and enforceable written assignments of all rights of such individuals in such Licensed Technology. No dispute regarding inventorship or ownership has been alleged or threatened with respect to any Licensed Technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.10 its rights, title, and interests to all the Licensed Technology are free of any lien or security interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.11 there are no additional licenses or rights (beyond those granted to Sanofi under this Agreement) under any intellectual property owned or Controlled by Scribe or its Affiliates that, to Scribe's knowledge, would be required in order for Sanofi to exploit the Licensed Technology or Licensed Product in the manner contemplated under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.12 none of its or its Affiliates' employees who have been, are, or will be involved in performance under this Agreement are, as a result of the nature of such performance, in violation of any covenant in any contract with any Third Party relating to non-disclosure of proprietary information, noncompetition, or non-solicitation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.13 it has implemented a compliance and ethics program containing adequate systems, policies, and procedures for the detection, investigation, documentation, and remediation of any allegations, reports, or findings related to a potential violation of Applicable Laws with respect to the activities contemplated under this Agreement. Such policies and procedures should set out rules governing interactions with healthcare professionals and Government Officials and the engagement of third parties. It has also implemented a system of internal accounting controls designed to ensure the making and keeping of fair and accurate books, records, and accounts with respect to the activities contemplated under this Agreement, and it monitors and audits its business activities to ensure compliance with Applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.14 there are no Third Party agreements pursuant to which Scribe Controls any Licensed Patents [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.15 [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.16 [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.17 [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.18 [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.19 [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.20 [\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.21 [\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.22 neither it nor any of its Affiliates has, regarding or related to its Background IP, been subject to a corporate integrity agreement, deferred prosecution agreement, consent decree, monitoring agreement, settlement agreement or other similar agreement or order mandating or prohibiting future or past activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 Mutual Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1 **Employees, Consultants and Contractors**. Each Party represents, warrants and covenants that it and its Affiliates have obtained from each of its and their respective former and current employees, consultants and contractors, and shall obtain from each of its and their respective future employees, consultants and contractors, in each case who have conceived, discovered, invented or created or who may conceive, discover, invent or create any New IP, written agreements containing obligations of confidentiality and non-use and an assignment to such Party all of such Person's rights to such New IP such that no such employee, contractor or consultant shall retain any rights thereto that would prevent or conflict with the other Party's rights of ownership, license or use thereof or thereto, as the case may be, contemplated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.2 **Debarment**. Each Party represents, warrants and covenants to the other Party that neither it nor its officers, employees, agents, consultants or any other person used by such Party in the performance of the respective research and Development activities under this Agreement is: (a) debarred or disqualified under the U.S. Federal Food, Drug and Cosmetic Act; (b) listed by any government or regulatory agencies as ineligible to participate in any government

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healthcare programs or government procurement or non-procurement programs (as that term is defined in 42 U.S.C. § 1320a-7b(f)), or excluded, debarred, suspended or otherwise made ineligible to participate in any such program; or (c) convicted of a criminal offense related to the provision of healthcare items or services, or is subject to any such pending action. Each Party shall not during the Term knowingly, employ or use, directly or indirectly, including through Affiliates the services of any such person. In the event that either Party becomes aware of the debarment or disqualification or threatened debarment or disqualification of any person providing services to such Party, directly or indirectly, including through Affiliates or, in the case of Sanofi, sublicensees, which directly or indirectly relate to activities contemplated under this Agreement, such Party shall promptly notify the other Party in writing and such Party shall cease employing, contracting with, or retaining any such person to perform any such services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4 Additional Scribe Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.1 Except to the extent expressly permitted under this Agreement, neither Scribe nor any of its Affiliates will, during the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) grant any right or license to any Third Party relating to any intellectual property rights that materially conflicts with or limits the scope of the rights or licenses granted to Sanofi under this Agreement; 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) waive any of their respective rights under, or (except as otherwise agreed by Sanofi in advance in writing) amend or terminate, the UC Berkeley License in any manner that conflicts with or limits the scope of any of the rights or licenses granted to Sanofi under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.2 Without limiting Section 6.4.1(b), Scribe will, as soon as practicable, furnish Sanofi with copies of each amendment of the UC Berkeley License (or any portion thereof) solely to the extent that such amendment relates to the rights and obligations of Sanofi under this Agreement, which copy may be redacted with respect to provisions that do not affect Sanofi's rights or obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.3 Scribe shall ensure that the obligations of the last sentence of Paragraph 7.1 of the UC Berkeley License at all times remain satisfied such that Paragraph 7.1 and Paragraph 7.2 shall not apply to Sanofi or its Affiliates hereunder as Sublicensees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.4 Upon any termination of the UC Berkeley License for whatever reason, Scribe shall immediately notify Sanofi of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.5 At Sanofi's request, Scribe shall use commercially reasonable efforts to cause UC Berkeley to obtain a waiver of any requirements under the Bayh-Dole Act, in respect of Licensed Technology that is sublicensed by Scribe to Sanofi under the UC Berkeley License, related to manufacturing of a Licensed Product in the United States.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5 Compliance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.1 **Compliance with this Agreement**. A Party may perform any obligation this Agreement imposes on such Party through any of such Party's Affiliates. All applicable terms and conditions of this Agreement will apply to any such Affiliate to the same extent as such terms and conditions apply to such Party. To the extent that this Agreement imposes obligations on Affiliates of a Party, such Party agrees to cause its Affiliates to perform such obligations. Each Party will remain fully liable for any acts or omissions of any of its Affiliates in breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.2 **Compliance with Applicable Laws**. Each Party covenants to the other that in the performance of its obligations under this Agreement, such Party shall comply with, and shall cause its Affiliates and its and its Affiliates' employees and contractors to comply with all Applicable Laws. No Party shall, or shall be required to, undertake any activity under or in connection with this Agreement which violates, or which it believes, in good faith, may violate, any Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.3 **Compliance with Anti-Corruption Laws**. In connection with this Agreement, the Parties shall comply with all applicable local, national, and international laws, regulations, and industry codes dealing with government procurement, conflicts of interest, corruption or bribery, including, if applicable, the U.S. Foreign Corrupt Practices Act of 1977, as amended, and any laws enacted to implement the Organisation of Economic Cooperation and Development Convention on Combating Bribery of Foreign Officials in International Business Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6 Mutual Disclaimer**. **EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR VALIDITY OF PATENT CLAIMS. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY EITHER PARTY THAT EITHER PARTY SHALL BE SUCCESSFUL IN OBTAINING ANY PATENTS OR THAT ANY PATENTS SHALL ISSUE BASED ON A PENDING APPLICATION. WITHOUT LIMITING THE RESPECTIVE RIGHTS AND OBLIGATIONS OF THE PARTIES EXPRESSLY SET FORTH HEREIN, EACH PARTY SPECIFICALLY DISCLAIMS ANY GUARANTEE THAT THE LICENSED PRODUCTS SHALL BE SUCCESSFUL, IN WHOLE OR IN PART.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7 Scribe Disclaimer.** Scribe hereby acknowledges and agrees that Sanofi and its Affiliates make (and have made) no representation or warranty, either express or implied, at law or in equity, that it will be able to successfully achieve any Development & Regulatory Milestone Event or Commercial Sales Milestone Event or that it will be able to achieve any amount of Net Sales and Scribe specifically disclaims that it is relying upon or has relied upon any such representations or warranties that may have been made any individual or entity. Scribe hereby further acknowledges and agrees that Sanofi and its Affiliates have, and will continue to have, other programs that may compete for resources that may be expended in the Development and Commercialization of any Licensed Product. Subject to the confidentiality and use restrictions in Article 8, nothing in this Agreement shall limit or restrict the right of the Sanofi or its Affiliates to Develop, make regulatory filings, obtain regulatory approvals with respect to, or Commercialize any product or to engage in any business or other activity.

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**ARTICLE 7** 

**INDEMNIFICATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1 Indemnity**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1 **By Scribe**. Subject to Section 7.1.3, Scribe shall defend, indemnify and hold harmless Sanofi and its Affiliates, and their respective directors, officers, employees and agents (each, a "**Sanofi Indemnitee**") from and against any and all costs, fees, expenses, losses, liabilities and damages, including reasonable legal expenses and attorneys' fees (collectively, "**Losses**") to which any Sanofi Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party (a "**Claim**") to the extent such Losses arise out of: (a) the gross negligence or willful misconduct of Scribe or its Affiliates in connection with its activities under this Agreement; or (b) the breach of this Agreement by Scribe or the breach of representations, warranties and covenants made hereunder by Scribe; except, in each case, to the extent such Losses result from matters subject to clause (a) or (b) of Section 7.1.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2 **By Sanofi**. Subject to Section 7.1.3, Sanofi shall defend, indemnify and hold harmless Scribe, its Affiliates, and their respective directors, officers, employees and agents (each, an "**Scribe Indemnitee**") from and against any and all Losses to which any Scribe Indemnitee may become subject as a result of any Claim to the extent such Losses arise out of: (a) the gross negligence or willful misconduct of Sanofi or its Affiliates in connection with its activities under this Agreement; or (b) the breach of this Agreement by Sanofi or the breach of representations, warranties and covenants made hereunder by Sanofi; except, in each case, to the extent such Losses result from matters subject to clause (a) or (b) of Section 7.1.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3 **Procedure**. A Party that intends to claim indemnification under this Article 7 (the "**Indemnitee**") shall promptly, and in any event within [\*] notify the Indemnitor (the "**Indemnitor**") in writing of any Claim in respect of which the Indemnitee intends to claim such indemnification. The failure to deliver written notice to the Indemnitor within such time period shall only relieve the Indemnitor of its indemnification obligations under this Article 7 if and to the extent the Indemnitor is actually prejudiced thereby. The Indemnitor has sole control of the defense or settlement thereof (as long as such Claim is solely for monetary damages and the Indemnitor agrees to pay all damages relating to such matter, as evidenced in a written confirmation delivered by the Indemnitor to the Indemnitee) with counsel selected by the Indemnitor and reasonably acceptable to the Indemnitee. The Indemnitee shall cooperate fully with the Indemnitor and its legal representatives in the investigation of any action with respect to a Claim. The Indemnitee may participate at its expense in the Indemnitor's defense of and settlement negotiations for any Claim with counsel of the Indemnitee's own selection and being reasonably acceptable to the Indemnitor. The Indemnitor shall not settle any Claim without the prior written consent of the Indemnitee, not to be unreasonably withheld, conditioned or delayed. So long as the Indemnitor is actively defending the Claim in good faith, the Indemnitee shall not settle or compromise any such Claim without the prior written consent of the Indemnitor. If the Indemnitor does not assume and conduct the defense of the Claim as provided above: (a) the Indemnitee may defend against, consent to the entry of any judgment, or enter into any settlement with respect to such Claim in any manner the Indemnitee may deem reasonably appropriate (and the Indemnitee need not consult with, or obtain any consent from, the Indemnitor in connection therewith); and (b) the Indemnitor shall remain responsible to indemnify the Indemnitee as provided in this Article 7.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2 Insurance**. During the Term, each Party shall maintain such types and amounts of liability insurance (including, with respect to Sanofi, self-insurance) as is normal and customary in the industry generally for similarly situated parties and adequate to cover its obligations under this Agreement, and each Party shall, upon request, provide the other Party with a certificate of insurance in that regard, along with any amendments and revisions thereto.

**ARTICLE 8** 

**CONFIDENTIALITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1 Confidential Information**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1 **Confidential Information**. In connection with this Agreement, a Party may disclose to the other Party certain confidential information of such disclosing Party (such confidential information, "**Confidential Information**"). Without limiting the foregoing, the terms of this Agreement are the Confidential Information of both Parties and shall be treated confidentially by each of the Parties, subject to the exceptions set forth in Section 8.1.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2 **Restrictions**. A Party (the "**Receiving Party**") that receives Confidential Information from the other Party (the "**Disclosing Party**") shall (i) keep all the Disclosing Party's Confidential Information in confidence with the same degree of care with which the Receiving Party holds its own confidential information (but in no event less than a commercially reasonable degree of care), (ii) not use the Disclosing Party's Confidential Information except in connection with the performance of its obligations and exercise of its rights under this Agreement, and (iii) not disclose the Disclosing Party's Confidential Information to any of its Affiliates or any Third Party without the prior written consent of the Disclosing Party, except for disclosures expressly permitted below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.3 **Exceptions**. The obligations of confidentiality and restriction on use of Confidential Information under Section 8.1.2 shall not apply to any information that the Receiving Party can prove by competent written evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party, known or available to the public; (b) is known by the Receiving Party at the time of receiving such information, other than by previous disclosure of the Disclosing Party, or its Affiliates, employees, agents, consultants, or contractors; (c) is hereafter furnished to the Receiving Party without restriction by a Third Party who has no obligation of confidentiality or limitations on use with respect thereto, as a matter of right; or (d) is independently discovered or developed by the Receiving Party without the use of or reference to the Confidential Information belonging to the Disclosing Party, as evidenced by the Receiving Party's contemporaneously-maintained written records. Specific information shall not be deemed to be within any of the foregoing exclusions merely because it is embraced by more general information falling within those exclusions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.4 **Permitted Disclosures**. The Receiving Party may disclose Confidential Information belonging to the Disclosing Party as expressly permitted under this Agreement or if and to the extent such disclosure is reasonably necessary in the following instances:

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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;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prosecution and Maintenance of Patents as expressly permitted under 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) to Regulatory Authorities by way of Regulatory Filings for Licensed Products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) prosecuting or defending litigation as permitted under 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;&nbsp;&nbsp;&nbsp;&nbsp;(d) made in response to a valid order of a court or other Governmental Authority or to comply with Applicable Laws (including securities laws); provided that the Receiving Party shall, to the extent permitted by Applicable Laws, first have given notice to the Disclosing Party and given the Disclosing Party a reasonable opportunity, at the Disclosing Party's expense, to quash such order or to obtain a protective order or seek confidential treatment; and provided further that the Confidential Information disclosed in response to such court or governmental order shall be limited to that information which is legally required to be disclosed in response to such court or governmental order or to comply with Applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in response to a valid request by a U.S., state, foreign, provincial, or local tax authority, in which case either Party may disclose, a copy of this Agreement (including any Exhibits, ancillary agreements and amendments hereto); provided that the Confidential Information disclosed in response to such tax authority order shall be limited to that information which is legally required to be disclosed in response to such tax authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) disclosure to its and its Affiliates' employees, consultants, contractors and agents, and to sublicensees, in each case on a need-to-know basis in connection with the research, Development, making, having made, use, keeping, import, export, offering for sale, selling, or otherwise Exploiting of Licensed Products in the Territory, and Commercialization of the Licensed Products in accordance with the terms of this Agreement, in each case under written obligations of confidentiality and non-use at least as stringent as those herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent otherwise necessary or reasonably useful for a Receiving Party to exploit the licenses granted to it under this Agreement; 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;&nbsp;&nbsp;&nbsp;&nbsp;(h) disclosure to Third Party *bona fide* potential and actual investors, acquirers, and other financial partners solely for the purpose of evaluating or carrying out an actual or potential investment or acquisition, in each case under written obligations of confidentiality and non-use at least as stringent as those herein; provided that (i) with respect to any such disclosure, such disclosure is under a written obligation of confidentiality that is consistent with market terms and such disclosure is of the Redacted Version only (provided that, it is agreed, that for these purposes, without prejudice to the redaction of other terms of this Agreement, such Redacted Version shall not redact the financial terms of this Agreement but shall redact any provisions of this Agreement which reveal the identity of the Licensed Targets and/or the Licensed gRNAs), and (ii) in connection with a proposed Change of Control of Scribe, only after negotiations with the proposed Third Party acquirer have progressed so that Scribe reasonably and in good faith believes it is in the final round of negotiations with such Third Party regarding execution of a definitive agreement with such Third Party with respect to the proposed transaction may Scribe

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provide an unredacted version of this Agreement to such Third Party. Nothing in this Section 8.1.4(h) shall permit the disclosure of any of Sanofi's Confidential Information (including, for clarity, any reports delivered by Sanofi pursuant to Sections 3.7 and 4.7, provided that Scribe may provide actual or projected financial information based on such reports to any such Third Party).

Notwithstanding the foregoing, if a Party is required to make a disclosure of the other Party's Confidential Information pursuant to Section 8.1.4(c) or (d), it shall, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use efforts to secure confidential treatment of such Confidential Information at least as diligent as such Party would use to protect its own Confidential Information, but in no event less than reasonable efforts. Any information disclosed pursuant to Section 8.1.4(c) or (d) remains Confidential Information and subject to the restrictions set forth in this Agreement, including the foregoing provisions of this Article 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.5 **Disclosure of Agreement**. Without limiting Section 8.1.4, either Party may disclose the relevant terms of this Agreement: (a) to the extent required or advisable to comply with the rules and regulations promulgated by the U.S. Securities and Exchange Commission or any equivalent governmental agency in any country in the Territory, provided that such Party shall submit a confidential treatment request in connection with such disclosure and shall submit with such confidential treatment request only such redacted form of this Agreement as may be mutually agreed in writing by the Parties (a "**Redacted Version**"); (b) upon request from a Governmental Authority (such as a tax authority), provided the Disclosing Party uses reasonable efforts to ensure the Governmental Authority maintains such terms as confidential; (c) to applicable licensors, solely to the extent necessary to comply with the terms of any Third Party license agreement, the rights under which are sublicensed under this Agreement; and (d) to the extent necessary to perform obligations or exercise rights under this Agreement, to any sublicensee, collaborator or potential sublicensee or potential collaborator, provided that any sublicensee, collaborator or potential sublicensee or collaborator agree in writing to be bound by obligations of confidentiality and non-use no less protective of the Disclosing Party than those set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.6 **Survival**. Each Party's obligations under this Section 8.1 apply during the Term and continue for [\*] thereafter with respect to Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2 Publicity**. Scribe shall issue a press release within four (4) weeks from the Effective Date (unless mutually agreed in writing between Parties) in the form attached hereto as Exhibit 8.2. Except as permitted under Section 8.1.4 or Section 8.1.5, neither Party shall issue any press release or public statement disclosing information relating to this Agreement or the transactions contemplated hereby or the terms hereof without the prior written consent of the other Party; provided however, that neither Party shall be prevented from complying with any duty of disclosure it may have pursuant to Applicable Laws or pursuant to the rules of any recognized stock exchange or quotation system subject to the restrictions set forth in Sections 8.1.4 and 8.1.5.

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**ARTICLE 9** 

**TERM & TERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1 Term**. This Agreement commences on the Effective Date and, unless terminated earlier as provided in this Article 9, shall continue, on a country-by-country and Licensed Product-by-Licensed Product basis, until the expiration of the Royalty Term (the "**Term**"). Upon the expiration of the Term, on a country-by-country and Licensed Product-by-Licensed Product basis, the licenses, and the Right of Reference or Use, granted to Sanofi under Section 2.1.1 and 2.1.2 shall survive and become perpetual, fully-paid and royalty-free.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2 Termination for Material Breach or Insolvency or Patent Challenge**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.1 **Material Breach**. Each Party (the "**Non-Breaching Party**") shall have the right to terminate this Agreement upon written notice to the other Party (the "**Breaching Party**") if the Breaching Party is in material breach of this Agreement and, after receiving written notice from the Non-Breaching Party identifying such material breach by the Breaching Party in reasonable detail, fails to cure such material breach within [\*] from the date of such notice (or, if such breach cannot be cured within [\*] from the date of such notice, if the Breaching Party has not commenced or is not diligently continuing in good faith efforts to cure such material breach; provided that, in any event, such material breach must be cured within [\*] from the date of such notice). Subject to Section 3.3, each Party has all rights and may seek all available remedies under Applicable Laws in the event of a breach of this Agreement by the other Party, regardless of whether such breach constitutes a material breach that could give rise to termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.2 **Termination for Insolvency**. To the extent permitted by Applicable Laws, either Party may terminate this Agreement in its entirety upon providing written notice to the other Party on or after the time that such other Party files or institutes a bankruptcy, reorganization, liquidation, or receivership proceeding or upon the appointment of a receiver or trustee over all or substantially all property of the other Party, or upon an assignment of a substantial portion of the assets of the other Party for the benefit of creditors; provided that in the case of any involuntary bankruptcy proceeding, such right to terminate shall only become effective if the other Party consents to the involuntary bankruptcy or such proceeding is not dismissed within [\*] after the filing thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.3 **Termination for Patent Challenge**. In the event that Sanofi or its Affiliate or sublicensee brings any legal action seeking to invalidate any Licensed Patent (a "**Patent Challenge**"), Scribe may at any time thereafter terminate this Agreement upon a [\*] written notice to Sanofi. A Patent Challenge under this Section 9.2.3 shall not include Sanofi or any of its Affiliates or Sublicensees: (i) responding to compulsory discovery, subpoenas or other requests for information in a judicial or arbitration proceeding, (ii) complying with any Applicable Law or court order, or (iii) challenging the validity or the qualification as a Valid Claim of a claim included in such Licensed Patent in defense of claims first brought by or on behalf of Scribe or the Regents. Notwithstanding the foregoing, this Section 9.2.3 shall not apply if: (a) the applicable Patent Challenge is dismissed or withdrawn within [\*] of Scribe's notice to Sanofi under this Section 9.2.3 and not thereafter continued, or (b) with respect to any such challenge by any such sublicensee, Sanofi terminates the sublicense granted to such sublicensee under Section 9.2.3 within [\*] of Scribe's notice to Sanofi under this Section 9.2.3. Notwithstanding anything to the contrary herein, a Patent Challenge shall not be deemed a material breach of Sanofi under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3 Termination for Convenience by Sanofi**. Sanofi may, at any time in its sole discretion and without cause, terminate this Agreement, on a Licensed Target-by-Licensed Target basis, a Licensed Product-by-Licensed Product basis, or the Agreement in its entirety, upon at least [\*] prior written notice to Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4 Effects of Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.1 **Termination by Scribe for Sanofi's material breach or insolvency, or termination by Sanofi for convenience**. Subject to the remainder of this Section 9.4.1, upon any termination of this Agreement by Scribe pursuant to Section 9.2.1, 9.2.2, 9.2.3 or termination by Sanofi pursuant to Section 9.3, with respect to (if terminated by Sanofi pursuant to Section 9.3 in respect of certain Licensed Products only) the relevant Licensed Products:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Sections 9.4.1(b) and 9.4.1(c), all provisions of this Agreement shall terminate, including all licenses granted hereunder with respect to such Licensed Product, and Sanofi shall no longer have any rights or obligations under this Agreement with respect to the relevant Licensed Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rights and obligations of the Parties set forth in the following Sections and Articles shall survive termination of this Agreement: Article 1 (to the extent applicable to the surviving provisions of this Agreement), Article 7, Article 8, this Section 9.4.1, Section 9.6, Section 9.7, Section 9.8 and Article 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Clinical Trial is being conducted at the time of the termination of this Agreement, Sanofi shall be entitled to complete such Clinical Trial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Sanofi or any of its Affiliates at the effective date of termination of this Agreement possesses any inventory of Licensed Product, has started the manufacture of Licensed Product, or has accepted any order for Licensed Product, Sanofi and its Affiliates will have the right, for up to [\*] following the effective date of termination of this Agreement, to sell their inventories thereof, complete the manufacture thereof, and Commercialize such fully-manufactured Licensed Product, in order to fulfill such accepted orders or distribute such fully-manufactured Licensed Product, subject to the obligation of Sanofi to pay Scribe any and all related milestone and royalty payments as provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.2 **Remedy in Lieu of Termination by Sanofi for Scribe's material breach**. In the case that Sanofi would have the right to terminate this Agreement for an uncured material breach of Section 2.1.1 or Article 8 (and provided that if Scribe disputes that Sanofi had such right, then the remedy in this Section 9.4.2 shall not take effect until a determination by a court of competent jurisdiction that Scribe has materially breached its obligations under Section 2.1.1 or Article 8 without cure, provided that Scribe shall have commenced legal proceedings in such court of competent jurisdiction within [\*] of the delivery of a notice by Sanofi that it is exercising its rights under this Section), Sanofi shall have the right, in lieu of such termination, to the following remedy:

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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;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the relevant material breach is in respect of one Licensed Product only, this remedy shall apply only in respect of that one Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject to sub-clause (c) below, the obligations of Sanofi to make payments to Scribe pursuant to Article 4, and the rights of Sanofi set forth in Article 4, shall continue, provided that any such amount that becomes payable by Sanofi shall be reduced by [\*]; 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;&nbsp;&nbsp;&nbsp;&nbsp;(c) in respect of any Licensed Product in respect of which the remedy in this Section applies which is Covered by a UC Berkeley Patent, sub-clause (b) of Section 4.6.5 shall apply, such that the obligations of Sanofi to make payments to Scribe pursuant to Article 4 shall continue, provided that the amount of any royalty payment payable to Scribe shall be the greater of (i) such royalty payment as reduced by [\*] and (ii) the amount calculated in accordance with sub-clause (b) of Section 4.6.5.

Sanofi's rights under this Section 9.4.2 are without prejudice to any other right or remedy that may be available to Sanofi under this Agreement, at law, in equity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.3 **Scribe Right of First Negotiation**. In accordance with the process described in Sections 9.4.3(a) through 9.4.3(c), Sanofi hereby grants Scribe a right of first negotiation for a grant by Sanofi to Scribe of a license under any Sanofi Licensed Product IP, Sanofi gRNA Data and Sanofi mRNA Modifications Covering any Licensed Products that are subject to any termination pursuant to Section 9.3 (unless such termination is after the occurrence of a Material Safety Event for such Licensed Product) or substitution of any Licensed Target pursuant to Section 2.3.3 (each a "**Terminated Licensed Product**"), for the purpose of Exploitation of such Terminated Licensed Products in the Field in the Territory (a "**Terminated Licensed Product License**"). For clarity, with regard to substitution pursuant to Section 2.3.3, such right of first negotiation would only apply to the Licensed Target that was replaced and not the Replacement Licensed Target. For the avoidance of doubt, the non-exclusive licenses granted by Sanofi to Scribe under Section 5.3.1 and Section 5.3.2 are in addition to, and will survive irrespective of, the rights described under this Section 9.4.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon any notification of termination pursuant to Section 9.3 or notification of substitution of any Licensed Target pursuant to Section 2.3.3, Sanofi shall provide to Scribe a summary of key research results generated prior to clinical development and top line results (excluding raw data) generated after initiation of clinical development that is specific to any Terminated Licensed Products (the "**Terminated Licensed Product Data**"), for the sole purpose of Scribe's evaluation of whether to exercise its right of first negotiation pursuant to this Section 9.4.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Scribe shall provide written notice to Sanofi, within [\*] after receipt by Scribe of such Terminated Licensed Product Data, indicating whether it elects to exercise its right of first negotiation. If Scribe provides written notice that it does not elect to exercise such right of first negotiation or fails to provide notice within such [\*] period, then such right of first negotiation shall terminate and be of no further effect, and Sanofi shall have no further obligation in respect of, the right of first negotiation under this Section 9.4.3.

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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;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Scribe provides written notice that it elects to exercise its right of first negotiation hereunder, the Parties shall negotiate exclusively and in good faith for a period of [\*] to enter into definitive agreements for a Terminated Licensed Product License. If the Parties do not enter into definitive agreements for a Terminated Licensed Product License within such period, Scribe shall have no further rights in respect of the right of first negotiation, and Sanofi shall have no further obligation to Scribe in respect of the right of first negotiation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5 Destruction of Confidential Information**. Each Receiving Party shall destroy (at the Disclosing Party's written request) all such Confidential Information of the Receiving Party in its possession as of the effective date of expiration or termination (with the exception of one copy of such Confidential Information, which may be retained by the legal department of the Receiving Party to confirm compliance with the non-use and non-disclosure provisions of this Agreement), and any Confidential Information of the Disclosing Party contained in its laboratory notebooks or databases, provided that each Receiving Party may retain and continue to use such Confidential Information of the Disclosing Party to the extent necessary to exercise any surviving rights, licenses or obligations under this Agreement. Notwithstanding the foregoing, a Receiving Party shall not be required to destroy any computer files created during automatic system back up that are subsequently stored securely by it and not readily accessible to its employees, consultants, or others who received the Disclosing Party's Confidential Information under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6 Sublicense Survival**. Any permitted sublicense granted by Sanofi to a Third Party under the licenses granted to Sanofi under this Agreement shall survive the termination of this Agreement; provided that, in the case where termination of this Agreement for such Party's uncured material breach pursuant to Section 9.2.1, such sublicensee did not cause such uncured material breach. Effective upon termination of this Agreement, such sublicense shall become a direct license from Scribe to such sublicensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7 Survival**. Except as set forth below or elsewhere in this Agreement, the obligations and rights of the Parties under the following provisions of this Agreement shall survive expiration of this Agreement pursuant to Section 9.1: Article 1, Section 6.7, Article 7, Article 8, Sections 9.4, 9.5, 9.6 and 9.8, and Article 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8 Accrued Liabilities**. Except as otherwise specifically provided herein, termination of this Agreement will not relieve either Party of any liability or obligation that accrued hereunder prior to the effective date of such termination, nor preclude any Party from pursuing all rights and remedies it may have hereunder or at law or in equity with respect to any breach of this Agreement nor prejudice any Party's right to obtain performance of any obligation that accrued hereunder prior to the effective date of such termination.

**ARTICLE 10** 

**DISPUTE ESCALATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1 Dispute Escalation**. Sanofi and Scribe recognize that a dispute, controversy or claim of any nature whatsoever arising out of or relating to this Agreement, or the breach, termination or invalidity thereof (each, a "**Dispute**"), may from time to time arise during the Term. Prior to exercising whatever right or remedy a Party may have at law, in equity or otherwise in connection with such Dispute, unless otherwise expressly provided in this Agreement, a Dispute

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shall first be referred to [\*] of Sanofi and the Chief Executive Officer of Scribe (or their designees who have been duly authorized to resolve such Dispute) for attempted resolution through good faith discussions. If such Dispute shall not have been finally resolved within [\*] of such referral, each Party may seek to exercise whatever right or remedy a Party may have at law, in equity or otherwise in connection with such Dispute.

**ARTICLE 11** 

**MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1 Governing Laws**. This Agreement is governed by and shall be construed in accordance with the laws of the State of New York, without reference to its conflict of laws principles. The United Nations Convention of International Contracts on the Sale of Goods (the Vienna Convention) does not apply to this Agreement. The federal and state courts located in New York, New York shall have exclusive jurisdiction over, and shall be the exclusive venue for resolution of, any dispute arising out of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2 Entire Agreement; Amendment**. This Agreement, including the Exhibits hereto, sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto with respect to the subject matter hereof and supersedes, as of the Effective Date, all prior and contemporaneous agreements and understandings between the Parties with respect to the subject matter hereof (including the confidentiality and non-disclosure agreement between the Parties dated February 9, 2022, as amended effective February 8, 2023, which is hereby terminated with effect from the Effective Date). No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.3 Limitation of Liability**. **TO THE EXTENT PERMITTED BY APPLICABLE LAW, NEITHER PARTY MAY RECOVER FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THIS SECTION 11.3 SHALL NOT BE CONSTRUED TO LIMIT EITHER PARTY'S INDEMNIFICATION OBLIGATIONS UNDER Article 7 OR EITHER PARTY FROM ITS LIABILITY FOR ANY DAMAGES BASED UPON SUCH PARTY'S BREACH OF ITS OBLIGATIONS UNDER Article 8.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.4 Independent Contractors**. The relationship between Sanofi and Scribe created under this Agreement is solely that of independent contractors. This Agreement does not create any agency, distributorship, employee-employer, partnership, joint venture or similar business relationship between the Parties. Neither Party is a legal representative of the other Party, and neither Party can assume or create any obligation, representation, warranty, or guarantee, express or implied, on behalf of the other Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.5 Notice**. Any notice required or permitted to be given under this Agreement must be in writing, in English. Any and all notices or other communications or deliveries required or permitted to be provided hereunder must be in writing and shall be deemed given and effective if: (a) delivered by hand or by overnight courier with tracking capabilities; (b) mailed postage prepaid by first class, registered, or certified mail; or (c) delivered by electronic mail followed by delivery via either of the methods set forth in clauses (a) and (b) of this Section 10.5, in each case, addressed as set forth below unless changed by notice so given:

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| | |
|:---|:---|
| If to Scribe: | Scribe Therapeutics Inc. |
|  | 1150 Marina Village Parkway |
|  | Alameda, CA 94501 |
|  | Attn: Chief Executive Officer |
|  | Email: [\*]<br>with a copy (which shall not constitute notice) to: |
|  | Fenwick & West LLP<br> 801 California Street |
|  | Mountain View, CA 94041 |
|  | Attn: [\*] |
|  | Email: [\*] |
| If to Sanofi: | Sanofi - [\*] |
|  | 450 Water Street |
|  | Cambridge, MA 02141 |
|  | Attn: [\*] |
|  | Email: [\*]<br>with a copy (which shall not constitute notice) to: |
|  | Sanofi – [\*]<br> 450 Water Street |
|  | Cambridge, MA 02141 |
|  | Attn: [\*] |
|  | Email: [\*]<br>and |
|  | Sanofi<br> 55 Corporate Drive |
|  | Bridgewater, NJ 08807 |
|  | Attn: [\*] |

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Each Party shall also provide a copy of any notice (via e-mail if available) to the other Party's Alliance Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.6 Severability**. If, for any reason, any part of this Agreement is adjudicated invalid, unenforceable, or illegal by a court of competent jurisdiction, such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability, or legality of any remaining portions of this Agreement. All remaining portions shall remain in full force and effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.7 Assignment**. Neither Party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent of the other, except that a Party may make such an assignment or transfer without the other Party's consent to: (a) its Affiliate, provided that such Party shall remain primarily liable for any acts or omissions of such Affiliate; or (b) by Sanofi in connection with the transfer or sale of all or substantially all of its business or assets related to this Agreement, or in the event of its merger, consolidation, change in control or other similar transaction. Any permitted assignee shall, in writing to the non-assigning Party, expressly assume performance of such assigning Party's rights and obligations. Any permitted assignment is binding on the successors of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of this Section 11.7 is null, void and of no legal effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.8 Change of Control of Scribe to a Sanofi Competitor**. In the event of a Change of Control of Scribe with a Sanofi Competitor, with effect from the consummation of such Change of Control of Scribe:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8.1 Scribe shall maintain and enforce internal processes, policies, procedures and systems (including appropriate administrative, physical and technical safeguards, operating system and network security controls, and other firewalls) that are sufficiently restrictive to Segregate Sanofi's Confidential Information from such Sanofi Competitor's Competing Program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8.2 Sanofi's reporting obligations to Scribe pursuant to this Agreement shall be deemed amended such that Sanofi will not be required to provide any Confidential Information to Scribe with respect to the applicable Licensed Product for which the Sanofi Competitor has a Competing Program, except to the extent such reporting or disclosure is required for Scribe's compliance with its express reporting and disclosure obligations under the UC Berkeley License, provided that any such reporting and disclosure obligations shall be limited to Development activities as set forth in Section 3.8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8.3 Scribe shall notify Sanofi in writing of any Change of Control of Scribe as soon as reasonably practicable following such Change of Control of Scribe but in any event within [\*] of such Change of Control of Scribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.9 Waivers**. The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any other instance. Any waiver by a Party of a particular provision or right shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.10 Force Majeure**. Neither Party shall be responsible to the other for any failure or delay in performing any of its obligations under this Agreement or for other nonperformance hereunder (excluding, in each case, the obligation to make payments when due) if such delay or nonperformance is caused by strike, fire, flood, earthquake, accident, war, act of terrorism, pandemics, act of God or of the government of any country or of any local government, or by any other cause unavoidable or beyond the control of any Party hereto. In such event, such affected Party shall use Commercially Reasonable Efforts to resume performance of its obligations and shall keep the other Party informed of actions related thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.11 Interpretation**. The captions and headings to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement. Unless specified to the contrary, references to Articles, Sections or Exhibits mean the particular Articles, Sections or Exhibits to this Agreement and references to this Agreement include all Exhibits hereto. In the event of any conflict between the main body of this Agreement and any Exhibit hereto, the relevant Exhibit shall prevail. Unless context otherwise clearly requires, whenever used in this Agreement: (a) the words "include" or "including" shall be construed as incorporating, also, "but not limited to" or "without limitation"; (b) the word "or" is used in the inclusive sense (i.e., "and/or"); (c) the word "day" or "year" means a calendar day or year unless otherwise specified; (d) the word "notice" means notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this Agreement; (e) the words "hereof," "herein," "hereby" and derivative or similar words refer to this Agreement as a whole and not merely to the particular provision in which such words appear; (f) the words "shall" and "will" have interchangeable meanings for purposes of this Agreement; (g) provisions that require that a Party, the Parties or a committee hereunder "agree," "consent" or "approve" or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise; (h) words of any gender include the other gender; (i) words using the singular or plural number also include the plural or singular number, respectively; (j) references to any specific law, rule or regulation, or article, Section or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement law, rule or regulation thereof; (k) the phrase "non-refundable, non-creditable" shall not prohibit, limit or restrict either Party's right to obtain damages in connection with a breach of this Agreement; and (l) neither Party shall be deemed to be acting on behalf of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.12 No Third Party Beneficiary Rights**. This Agreement is not intended to and shall not be construed to give any Third Party any interest or rights (including any Third Party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby, except as otherwise expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.13 Construction**. The Parties hereto acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement shall be construed fairly as to all Parties hereto and not in a favor of or against any Party, regardless of which Party was generally responsible for the preparation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.14 Cumulative Remedies**. No remedy referred to in this Agreement is intended to be exclusive unless explicitly stated to be so, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.15 Counterparts; Electronic Signatures**. This Agreement may be executed in any number of counterparts, each of which is deemed an original, but all of which together constitute one instrument. This Agreement may be executed and delivered electronically and upon such delivery such electronic signature shall be deemed to have the same effect as if the original signature had been delivered to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.16 Further Assurances**. Each Party will execute, acknowledge, and deliver such further instruments, and do all such other acts, as may be necessary or appropriate in order to carry out the expressly stated purposes and the clear intent of this Agreement.

[*Signature page follows*]

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**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed effective as of the Effective Date.

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| | |
|:---|:---|
| **SCRIBE THERAPEUTICS INC.** | **SCRIBE THERAPEUTICS INC.** |
| By: | /s/ Benjamin L. Oakes |
| Name: | Benjamin L. Oakes, Ph.D. |
| Title: | President & CEO |
| **GENZYME CORPORATION** | **GENZYME CORPORATION** |
| By: | /s/ Brian Bronk |
| Name: | Brian Bronk, Ph.D. |
| Title: | Head of Business Development, Neurology, Rare Diseases & Technology Platforms Partnering |

---

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**Exhibit 2.3.1** 

[Intentionally omitted]

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**Exhibit 2.5** 

[Intentionally omitted]

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**Exhibit 2.9** 

[Intentionally omitted]

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**Exhibit 3.2** 

[Intentionally omitted]

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**Exhibit 3.9.2** 

[Intentionally omitted]

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**Exhibit 3.10.2** 

[Intentionally omitted]

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**Exhibit 4.6** 

[Intentionally omitted]

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**Exhibit 6.2.5** 

[Intentionally omitted]

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**Exhibit 8.2** 

[Intentionally omitted]

## Exhibit 10.12

**Exhibit 10.12** 

**SCRIBE THERAPEUTICS INC.** 

**SCIENTIFIC ADVISORY BOARD MEMBER AGREEMENT** 

This Scientific Advisory Board Member Agreement (this "Agreement") is made and entered into as of April 12, 2021 (the "Effective Date") by and between Scribe Therapeutics Inc., a Delaware corporation having an address at 150 Marina Village Pkwy, Alameda, CA 94501 (the "Company"), and David F. Savage ("Member"), an individual having an address at .

**WHEREAS**, the Company desires to retain Member as an independent contractor to perform certain advisory services for the Company; and

**WHEREAS**, Member is willing to perform such services, on terms set forth more fully below.

**NOW, THEREFORE**, in consideration of the mutual promises contained herein, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. SERVICES, CONSIDERATION AND NATURE OF SCIENTIFIC ADVISORY BOARD** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Member agrees to serve as a member of the Scientific Advisory Board of the Company on the terms and conditions set forth herein. In Member's capacity as a member of the Scientific Advisory Board of the Company, Member agrees to perform for the Company the services described in <u>Exhibit A</u> (the "Services").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In consideration of Member's performance of the Services, the Company agrees to provide to Member the consideration set forth in <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. CONFIDENTIALITY AND NON-INTERFERENCE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Confidential Information" means any and all information disclosed by the Company to Member or that is ascertained, discovered or learned by Member, that is not generally known and that relates to the business or affairs of the Company or any third party with whom the Company deals. Without limiting the generality of the foregoing, Confidential Information includes all proprietary information, business and technical data, trade secrets or know-how belonging to the Company, including, but not limited to, research information and product or service plans and strategies, products, services, models, drawings, samples, formations, molecules, structures, prototypes, research, developments, customer or prospect lists, marketing and business plans, market information and expectations, inventions, ideas, concepts, designs, specifications, systems, software, plans, processes, procedures, techniques, methods, formulas, and marketing, financial or other business or technical information disclosed by the Company to Member, either directly or indirectly in writing, orally or otherwise, or ascertained, discovered or learned by Member; provided, however, that the term Confidential Information shall not include any information that (i) at the time of disclosure, is available to the general public, (ii) at a later date, becomes available to the general public through no fault of Member and then only after such later date, (iii) is received by Member at any time from a third party without breach of a non-disclosure or confidentiality obligation to the Company, (iv) as shown by proper documentation, is known to Member at the time of disclosure, (v) as shown by proper documentation, is developed independently by Member without reference to any Confidential Information, or (vi) is approved for disclosure by prior written permission of a corporate officer of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Member will not, during or subsequent to the term of this Agreement, use Confidential Information for any purpose whatsoever other than the performance of the Services on behalf of the Company, or disclose Confidential Information to any third party except upon request by the Company in the performance of the Services. Member agrees that Confidential Information shall remain the sole property of the Company. Member agrees that this Agreement shall apply to any Confidential Information disclosed to or ascertained, discovered or learned by Member on or after the Effective Date. Member further agrees to take all reasonable precautions to prevent any unauthorized disclosure or use of Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Member agrees that Member will not, during the term of this Agreement, improperly use or disclose to the Company any proprietary information or trade secrets of any former or current employer or other person or entity with which Member has an agreement or duty to keep in confidence information acquired by Member in confidence, and that Member will not bring onto the premises of the Company any unpublished document or proprietary information belonging to such employer, person or entity unless consented to in writing by such employer, person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Member recognizes that the Company has received and in the future will receive from third parties confidential or proprietary information of such third parties subject to a duty on the part of the Company to maintain the confidentiality of such information and to use it only for certain limited purposes. Member agrees that, insofar as Member is informed of the confidential status of such information in writing, Member owes the Company, during the term of this Agreement and thereafter, a duty to hold all such confidential or proprietary information in confidence and not to disclose it to any person, firm or entity or to use it except as necessary in carrying out the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon the termination of this Agreement, or upon earlier request by the Company, Member will deliver to the Company all property of the Company relating to, and all tangible embodiments of, Confidential Information in Member's possession or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The obligations of Member under this Section 2 shall survive and continue in full force and effect for five (5) years after termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If Member is required by a government body or court of competent jurisdiction to disclose any Confidential Information, Member agrees to give the Company prompt written notice of such requirement so that the Company may contest the disclosure or seek an appropriate protective order. Upon the request and at the expense of the Company, Member will cooperate with the Company's efforts to contest disclosure or obtain an appropriate protective order or other reliable assurance that the Confidential Information will be accorded confidential treatment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Member acknowledges that, in Member's capacity as a member of the Scientific Advisory Board, Member may help to develop, and will be exposed to, the Company's strategies, plans and other valuable Confidential Information, and that use or disclosure of such Confidential Information in breach of this Agreement would be extremely difficult to detect or prove. Member also acknowledges that the Company's relationships with its employees, customers, suppliers, affiliates and other business partners are valuable business assets. To forestall any use or disclosure of Confidential Information in breach of this Agreement, Member agrees that during the term of this Agreement and for a period of one (1) year thereafter, Member shall not, for Member or any third party, directly or indirectly, (i) divert or attempt to divert from the Company (or any affiliate) any business of any kind, including without limitation the solicitation of or interference with any of its customers, suppliers, affiliates or other business partners, or (ii) solicit, induce, recruit or encourage any person employed by the Company to terminate his or her employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. OWNERSHIP** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in Section 3(b), Member agrees that all copyrightable material, notes, records, inventions, improvements, developments, discoveries and trade secrets, whether or not patentable, conceived, made or discovered by Member in performing the Services, solely or in collaboration with others, during the term of this Agreement and outside the course of the member's activities as an HHMI (as defined below) employee or faculty member of the University of California, Berkeley (collectively, "Inventions") shall be the sole property of the Company. Member further agrees to assign (or cause to be assigned) and does hereby assign fully to the Company all such Inventions and any copyrights, patents or other intellectual property rights relating thereto. Member agrees that Member will from time to time during the term of this Agreement keep the Company advised as to Member's progress in performing the Services. Reports prepared by Member in connection with Member's performance of the Services, if any, shall be the property of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees that it will have no rights by reason of this Agreement in or to any copyrightable material, notes, records, inventions, improvements, developments, discoveries and trade secrets, whether or not patentable, developed as a result of a program of research financed by funds of any entity other than the Company for which Member is working or consulting which is outside the scope of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the termination of this Agreement, or upon the earlier request of the Company, Member will deliver to the Company all property of the Company relating to, and all tangible embodiments of, Inventions in Member's possession or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Member agrees to assist the Company, or its designee, at the expense of the Company, to obtain and from time to time enforce and defend the rights of the Company in the Inventions and any copyrights, patents or other intellectual property rights relating thereto in any and all countries, and to execute all documents reasonably necessary for the Company to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Member agrees that <u>if in the course of performing the Services</u>, Member incorporates into any Inventions developed hereunder any invention, improvement, development, concept, discovery or other proprietary information owned by Member or in which Member has an interest ("Item"), the Company is hereby granted and shall have a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to make, have made, modify, reproduce, display, use and sell such Item as part of or in connection with such Inventions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Member agrees that if the Company, after reasonable effort, is unable because of Member's unavailability, mental or physical incapacity, or for any other similar reason, to secure Member's signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering the Inventions assigned to the Company above, then Member hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Member's agent and attorney-in-fact, to act for and in Member's behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents and copyright registrations thereon with the same legal force and effect as if executed by Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. CONFLICTING OBLIGATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company acknowledges that as an independent contractor to the Company, Member may, in Member's discretion and subject to the terms and conditions of this Agreement, serve as a consultant, employee, director or advisor of other persons or entities. Attached to this Agreement as <u>Exhibit B</u> are the Howard Hughes Medical Institute Uniform Consulting Agreement Provisions (the "Uniform Provisions"), which will be executed by the parties simultaneously with the execution of this Agreement. The parties hereto agree that the Uniform Provisions are an integral part of this Agreement and this Agreement shall have no force or effect unless the Uniform Provisions are signed by both parties. In the event of any conflict between this Agreement and the Uniform Provisions, the Uniform Provisions shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Member certifies that Member has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement, or that would preclude Member from complying with the provisions hereof, and further certifies that Member will not enter into any such agreement during the term of this Agreement. Member agrees that, during the term of this Agreement, Member will inform the Company if a conflict arises due to (i) a change in the business interests of the Company, (ii) a change in the business interests of other persons or entities to which Member serves as a consultant, advisor or otherwise or (iii) the commencement of a new employment, consulting or business relationship related to Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. TERM AND TERMINATION** 

The term of this Agreement will begin on the Effective Date and will end on the fourth anniversary of the Effective Date or upon earlier termination as provided below (the "Term"). This Agreement may be terminated at any time by either party upon 30 days prior written notice. The Term will be automatically renewed for successive two-year periods, unless either party provides written notice of at least 30 days prior to the end of the Term that such party does not wish to renew this Agreement. Upon termination of this Agreement, all rights and duties of the parties hereunder shall cease, except that Sections 2, 3, and 5 through 16 shall survive any such termination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. CONSENT AND RELEASE** 

Member grants the Company the absolute right and permission to publish Member's name on the Company website. Member waives, discharges and releases any and all rights, demands, losses, liabilities, claims and causes of action whatsoever which Member may now or hereafter be entitled to assert against the Company arising directly or indirectly in connection with its use of Member's name, including but not limited to claims based on confidentiality, right of privacy, defamation, false light or right of publicity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. ASSIGNMENT** 

Neither this Agreement nor any right hereunder or interest herein may be assigned or transferred by Member without the prior express written consent of the Company. The Company may assign any or all of its rights and obligations hereunder to any of its affiliates or to a successor of the Company as part of a merger, consolidation or sale of all or substantially all of the Company's assets. Subject to the foregoing, this Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. NDEPENDENT CONTRACTOR** 

Member enters into this Agreement as, and shall continue to be, an independent contractor. Under no circumstances shall Member look to the Company as Member's employer, partner, agent, or principal. Member shall not be entitled to any benefits accorded to the Company's employees, including workers' compensation, disability insurance, retirement plans, or vacation or sick pay. Member acknowledges and agrees that Member is obligated to report as income all compensation received by Member pursuant to this Agreement, and that Member shall be personally responsible for and shall indemnify the Company for any and all taxes and other payments due on consideration received by Member from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. EQUITABLE RELIEF** 

Member agrees that its obligations in Sections 2 and 3 are necessary and reasonable in order to protect the Company, and expressly agrees that monetary damages would be inadequate to compensate the Company for any breach of Sections 2 or 3. Accordingly, Member agrees and acknowledges that any violation or threatened violation of Sections 2 or 3 will cause irreparable injury to the Company and that, in addition to any other remedies that may be available, in law, in equity or otherwise, the Company shall be entitled to obtain injunctive relief against the breach or threatened breach of Sections 2 or 3 or the continuation of any such breach, without the necessity of proving actual damages or posting any bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. NOTICES** 

All notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to a party; (b) three business days after deposit in the U.S. mail with first class or certified mail receipt requested postage prepaid and addressed to a party at the address set forth above; or (c) the next business day after deposit with a national overnight delivery service, postage prepaid, addressed to a party at the address set forth above with next business day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider. A party may change the addresses given above by giving the other party written notice of the new address in the manner set forth above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. GOVERNING LAW** 

This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, without reference to conflicts of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. ENTIRE AGREEMENT** 

This Agreement forms the entire agreement of the parties with regard to the Services and supersedes any prior agreements between them with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. WAIVER** 

Waiver of any term or provision of this Agreement or forbearance to enforce any term or provision by either party shall not constitute a waiver as to any subsequent breach or failure of the same term or provision or a waiver of any other term or provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. MODIFICATION** 

No modification to this Agreement, nor any waiver of any rights hereunder, shall be effective, unless assented to in writing by the party against whom such modification or waiver is to be asserted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. SEVERABILITY** 

If any provision of this Agreement, or the application thereof to any person, place, or circumstance, shall be held by an arbitrator or a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of this Agreement and such provisions as applied to other persons, places, and circumstances shall remain in full force and effect, and such provision shall be enforced to fullest extent consistent with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. COUNTERPARTS** 

This Agreement may be executed in counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. Facsimile signatures shall be deemed originals.

[*Signature Page Follows*]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

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| | | | |
|:---|:---|:---|:---|
| **COMPANY:** | **COMPANY:** | **MEMBER:** | **MEMBER:** |
| By: | /s/ Benjamin L. Oakes | By: | /s/ David F. Savage |
| Name: | Benjamin L. Oakes | Name: | David F. Savage |
| Title: | President |  |  |

---

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**EXHIBIT A** 

**SERVICES AND CONSIDERATION** 

1. <u>Contact</u>. Member shall coordinate Member's provision of the Services through the following principal contact at the Company:

Name: Benjamin Oakes

Title: President & CEO

2. <u>Services</u>. Member shall provide the following advice and services:

attend, either in person or telephonically, the meetings of the Scientific Advisory Board, subject to Member's scheduling conflicts, which meetings shall be held once or twice a year;

advise the Company in its development and implementation of business, product development and marketing strategies, including clinical trial design;

provide timely feedback and advice to electronic mail and telephone inquiries from the Company's management;

accompany the Company's management in an advisory capacity on business development meetings and senior level sales calls, subject to Member's scheduling conflicts;

provide the Company with access to Member's network of contacts to further the Company's business by, among other things, recommending and introducing experts, leaders, institutions and businesses to the Company as potential strategic partners;

review and advise the Company on strategic relationship opportunities, acquisition opportunities and financing alternatives; and

allow the Company to use Member's name and summary biography to identify him as a cofounder and Scientific Advisor.

Member shall render the Services at such times as Member and the Company agree, but Member's obligation to render the Services shall equal, but not exceed, 4 days per month.

3. <u>Consideration</u>.

In consideration of the Services rendered hereunder, Member shall receive a quarterly payment of Ten Thousand Dollars ($10,000.00) during the term of this Agreement. Such payment shall be made on each 3-month anniversary of the Effective Date (or, if such date is not a business day, the following business day).

In addition, the Company agrees to reimburse Member for all reasonable out-of-pocket expenses incurred by Member in the performance of the Services hereunder, including expenses for air travel (economy class) necessary and requested by the Company, and all reasonable living expenses incurred by Member when rendering Services for the Company

------

at locations away from Member's home or business. Any single expense in excess of Five Hundred Dollars ($500.00) must be approved by the Company in advance. Member shall thereafter, on a monthly basis, provide the Company with an invoice itemizing Member's travel and other expenses, together with receipts evidencing such expenses, and the Company shall make a reimbursement payment to Member within fifteen (15) days of receipt of such invoices and receipts.

All payments provided for under this Agreement shall be made in currency of the United States.

Except as expressly set forth herein, Member shall not be entitled to any compensation, remuneration or other benefit for rendering the Services hereunder.

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**EXHIBIT B** 

**THE HOWARD HUGHES MEDICAL INSTITUTE** 

<u>UNIFORM CONSULTING AGREEMENT PROVISIONS</u> 

**1.** The Howard Hughes Medical Institute ("HHMI") employs laboratory heads at major universities,
medical schools, research institutes, and hospitals throughout the United States (each, a "Host Institution"). These Uniform Consulting Agreement Provisions (the "Uniform Provisions") are attached to an agreement (the
"Agreement") under which an HHMI laboratory head (the "Consultant") has agreed to provide consulting services to the company named in the Agreement (the "Company"). The Consultant and the Company agree that the
Agreement shall have no force or effect unless these Uniform Provisions are signed by both parties and attached to the Agreement. By signing the Uniform Provisions, the Consultant and the Company agree to abide by them, and also agree that if
anything in the Agreement or any other agreement that the Consultant executes in connection with his or her provision of consulting services to the Company is inconsistent with the Uniform Provisions, the Uniform Provisions shall govern.

**2.** The Agreement shall disclose all compensation of whatever kind that is to be provided to the Consultant
in connection with the consulting services. Compensation for consulting may include fixed amounts of cash and equity (such as stock or stock options) but may not include incentive or contingent features, such as bonuses based on performance or upon
achievement of scientific or operational milestones of the Company.

**3.** (a) The following applies if the Company's stock is publicly traded on a securities exchange: The
Consultant will at no time hold more than 5 percent of the equity of the Company, as calculated in accordance with HHMI's Consulting for Companies – General Policy, available at http://www.hhmi.org/about/policies#consulting. If
equity is to be issued to the Consultant in connection with the provision of consulting services, the Consultant must provide all relevant documents to HHMI for review and approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The following applies if the Company's stock is not publicly traded on a securities exchange: The Company and the Consultant each acknowledge that they have reviewed HHMI's Consulting for Companies – General Policy and HHMI's policy on Consulting for and Equity Ownership in Start-Up and Other Private Companies, available at http://www.hhmi.org/about/policies#consulting. The Consultant agrees that he or she will, and the Company agrees that Consultant will be permitted to, reduce his or her equity ownership in the Company as necessary in order to remain in compliance with HHMI's Consulting for Companies – General Policy and HHMI's policy on Consulting for and Equity Ownership in Start-Up and Other Private Companies at all times. The Company and the Consultant agree to provide information to HHMI upon request that will allow HHMI to confirm compliance with HHMI's policies. In addition, Consultant must provide all documents relating to equity ownership that the Consultant will be asked to sign to HHMI for its prior review and approval.

**4.** The Consultant's services for the Company shall consist only of the discussion of ideas and
provision of advice; the Consultant shall not direct or conduct research for or on behalf of the Company.

------

**5.** The Company acknowledges that the Consultant is an HHMI employee and is subject to HHMI's
policies, including policies concerning consulting, conflicts of interest, and intellectual property. In accordance with HHMI policy, the Consultant may disclose to the Company any information that the Consultant would normally freely disclose to
other members of the scientific community at large, whether by publication, by presentation at seminars, or in informal scientific discussions. However, the Consultant shall not disclose to the Company information that (i) is proprietary to
HHMI or the Host Institution and (ii) is not generally available to the public, except through formal technology transfer procedures.

**6.** Subject to the terms of paragraph 7, below, the Consultant may assign to the Company any right, title
and interest the Consultant may have in any invention, discovery, improvement, or other intellectual property which the Consultant (whether alone or with others) develops (i) during the course of performing consulting services for the Company
under the Agreement and (ii) outside the course of the Consultant's activities as an HHMI employee or faculty member of the Host Institution.

**7.** The Company shall have no rights by reason of the Agreement in any publication, invention, discovery,
improvement, or other intellectual property whatsoever, whether or not publishable, patentable, or copyrightable, which is developed as a result of a program of research financed, in whole or in part, by funds provided by or under the control of

information or intellectual property that arises from any research undertaken by the Consultant in his or her capacity as an employee of HHMI or a member of the faculty of the Host Institution.

**8.** The Company agrees, at its sole expense, to defend HHMI against, and to indemnify and hold HHMI harmless
from, any claim, liability, judgment, cost, expense, damage, deficiency, loss, or obligation, of any kind or nature (including without limitation reasonable attorneys' fees and other costs and expenses of defense) relating to a claim or suit
by a third party against HHMI, either arising from the Agreement, the Consultant's performance of services for the Company under the Agreement, or any Company products or services which result from the Consultant's performance of
services under the Agreement.

**9.** Nothing in the Agreement shall affect the Consultant's right to use, disseminate, or publish any
information that (i) is or becomes available to the public through no breach of the Agreement by the Consultant; (ii) is obtained by the Consultant from a third party who had the legal right to disclose the information to the Consultant;
or (iii) is already in the possession of the Consultant on the date the Agreement becomes effective. In addition, the Company's confidential information does not include information generated by the Consultant (whether alone or with
others) unless the Consultant generated the information (i) during the course of performing consulting services for the Company under the Agreement and (ii) outside the course of the Consultant's activities as an HHMI employee or
Host Institution faculty member. Nothing in the Agreement shall prevent the Consultant from disclosing the Company's confidential information to the extent it is required to be disclosed by law, government regulation, or court order, provided
that the Consultant takes reasonable steps to provide the Company with sufficient prior notice to allow the Company to consent to the disclosure or seek a protective order.

------

**10.** The Company acknowledges and agrees that nothing in the Agreement shall affect the Consultant's
obligations to HHMI or the Host Institution, the Consultant's research on behalf of HHMI or the Host Institution, the Consultant's ability to submit and publish the results of HHMI or Host Institution research, or research collaborations
in which the Consultant is a participant, and that the Agreement shall have no effect upon transfers (by way of license or otherwise) to third parties of materials or intellectual property developed in whole or in part by the Consultant as an HHMI
employee or Host Institution faculty member.

**11.** The Consultant has the right to terminate the Agreement at any time by providing at least thirty
(30) days written notice of termination (or such shorter notice period as may be provided in the Agreement) to the Company.

**12.** Paragraphs 6, 7, 8, 9, 11, 12, 13, 14 and 15 of these Uniform Provisions shall survive termination of
the Agreement.

**13.** The Company may use the Consultant's name, and in doing so may cite the Consultant's
relationship with HHMI, so long as any such usage (i) is limited to reporting factual events or occurrences only, and (ii) is made in a manner that could not reasonably constitute an endorsement of the Company or of any Company program,
product or service. However, the Company shall not use the Consultant's name or HHMI's name in any press release, or quote the Consultant in any company materials, or otherwise use the Consultant's name or HHMI's name in a
manner not specifically permitted by the preceding sentence, unless in each case the Company obtains in advance HHMI's written consent, and, in the case of the use of the Consultant's name, the Consultant's consent as well.

**14.** The Consultant and the Company acknowledge that (i) the Consultant is entering into the Agreement
and these Uniform Provisions in the Consultant's individual capacity and not as an employee or agent of HHMI, (ii) HHMI is not a party to the Agreement or the Uniform Provisions and has no liability or obligation under them, and
(iii) HHMI is an intended third party beneficiary of the Agreement and the Uniform Provisions and certain provisions of the Agreement and the Uniform Provisions are for HHMI's benefit and are enforceable by HHMI in its own name.

**15.** If the Agreement is governed by California law, the parties acknowledge and agree that the Agreement is
not a contract of employment under California law, and the Consultant is not an employee of the Company for any purpose under California law.

**16.** These Uniform Provisions shall be in effect for the full term of the Agreement. The Company and the
Consultant agree that any amendment of the Agreement (including, without limitation, any extension of the Agreement's term or any change in the consideration to be provided to the Consultant under the Agreement) or any other departure from the
terms or conditions of the Agreement must be signed by the Consultant and an authorized representative of the Company, and also is subject to HHMI's prior written approval.

**17.** If any of these Uniform Provisions is adjudicated to be invalid, unenforceable, contrary to, or
prohibited under applicable laws or regulations of any jurisdiction, the Agreement shall terminate as of the date such adjudication is effective.

[*Signature Page Follows*]

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---

| | |
|:---|:---|
| Company: Scribe Therapeutics, Inc. | Company: Scribe Therapeutics, Inc. |
| By: | /s/ Benjamin Oakes |
|  | Name: Benjamin Oakes<br> Title: President & CEO<br>Date: |
| By: | /s/ David F. Savage |
|  | Name: David F. Savage<br>Date: 1/25/22 |

---

## Exhibit 10.13

**Exhibit 10.13** 

**SCRIBE THERAPEUTICS, INC.** 

**SCIENTIFIC ADVISORY BOARD MEMBER AGREEMENT** 

This Scientific Advisory Board Member Agreement (this "Agreement") is made and entered into as of October 27, 2021 (the "Effective Date") by and between Scribe Therapeutics, Inc., a Delaware corporation having an address at 150 Marina Village Pkwy, Alameda, CA 94501 (the "Company"), and Jennifer Doudna ("Member"), an individual having an address at .

**WHEREAS,** the Company desires to retain Member as an independent contractor and scientific advisor to perform certain advisory services for the Company; and

**WHEREAS,** Member is willing to perform such services, on terms set forth more fully below.

**NOW, THEREFORE**, in consideration of the mutual promises contained herein, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. SERVICES, CONSIDERATION AND NATURE OF SCIENTIFIC ADVISORY BOARD** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Member agrees to serve as a member of the Scientific Advisory Board of the Company on the terms and conditions set forth herein. In Member's capacity as a member of the Scientific Advisory Board of the Company, Member agrees to perform for the Company the services described in <u>Exhibit A</u> (the "Services").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In consideration of Member's performance of the Services, the Company agrees to provide to Member the consideration set forth in <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. CONFIDENTIALITY AND NON-INTERFERENCE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Confidential Information" means any and all information disclosed by the Company to Member or that is ascertained, discovered or learned by Member, that is not generally known and that relates to the business or affairs of the Company or any third party with whom the Company deals. Without limiting the generality of the foregoing, Confidential Information includes all proprietary information, business and technical data, trade secrets or know-how belonging to the Company, including, but not limited to, research information and product or service plans and strategies, products, services, models, drawings, samples, formations, molecules, structures, prototypes, research, developments, customer or prospect lists, marketing and business plans, market information and expectations, inventions, ideas, concepts, designs, specifications, systems, software, plans, processes, procedures, techniques, methods, formulas, and marketing, financial or other business or technical information disclosed by the Company to Member, either directly or indirectly in writing, orally or otherwise, or ascertained, discovered or learned by Member; provided, however, that the term Confidential Information shall not include any information that (i) at the time of disclosure, is available to the general public, (ii) at a later date, becomes available to the general public through no fault of Member

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and then only after such later date, (iii) is received by Member at any time from a third party without breach of a non-disclosure or confidentiality obligation to the Company, (iv) as shown by proper documentation, is known to Member at the time of disclosure, (v) as shown by proper documentation, is developed independently by Member without reference to any Confidential Information, or (vi) is approved for disclosure by prior written permission of a corporate officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Member will not, during or subsequent to the term of this Agreement, use Confidential Information for any purpose whatsoever other than the performance of the Services on behalf of the Company, or disclose Confidential Information to any third party except upon request by the Company in the performance of the Services. Member agrees that Confidential Information shall remain the sole property of the Company. Member agrees that this Agreement shall apply to any Confidential Information disclosed to or ascertained, discovered or learned by Member on or after the Effective Date. Member further agrees to take all reasonable precautions to prevent any unauthorized disclosure or use of Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Member agrees that Member will not, during the term of this Agreement, improperly use or disclose to the Company any proprietary information or trade secrets of any former or current employer or other person or entity with which Member has an agreement or duty to keep in confidence information acquired by Member in confidence, and that Member will not bring onto the premises of the Company any unpublished document or proprietary information belonging to such employer, person or entity unless consented to in writing by such employer, person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Member recognizes that the Company has received and in the future will receive from third parties confidential or proprietary information of such third parties subject to a duty on the part of the Company to maintain the confidentiality of such information and to use it only for certain limited purposes. Member agrees that, insofar as Member is informed of the confidential status of such information in writing, Member owes the Company, during the term of this Agreement and thereafter, a duty to hold all such confidential or proprietary information in confidence and not to disclose it to any person, firm or entity or to use it except as necessary in carrying out the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon the termination of this Agreement, or upon earlier request by the Company, Member will deliver to the Company all property of the Company relating to, and all tangible embodiments of, Confidential Information in Member's possession or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The obligations of Member under this Section 2 shall survive and continue in full force and effect for five (5) years after termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If Member is required by a government body or court of competent jurisdiction to disclose any Confidential Information, Member agrees to give the Company prompt written notice of such requirement so that the Company may contest the disclosure or seek an appropriate protective order. Upon the request and at the expense of the Company, Member will cooperate with the Company's efforts to contest disclosure or obtain an appropriate protective order or other reliable assurance that the Confidential Information will be accorded confidential treatment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Member acknowledges that, in Member's capacity as a member of the Scientific Advisory Board, Member may help to develop, and will be exposed to, the Company's strategies, plans and other valuable Confidential Information, and that use or disclosure of such Confidential Information in breach of this Agreement would be extremely difficult to detect or prove. Member also acknowledges that the Company's relationships with its employees, customers, suppliers, affiliates and other business partners are valuable business assets. To forestall any use or disclosure of Confidential Information in breach of this Agreement, Member agrees that during the term of this Agreement and for a period of one (1) year thereafter, Member shall not, for Member or any third party, directly or indirectly, (i) divert or attempt to divert from the Company (or any affiliate) any business of any kind, including without limitation the solicitation of or interference with any of its customers, suppliers, affiliates or other business partners, or (ii) solicit, induce, recruit or encourage any person employed by the Company to terminate his or her employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. OWNERSHIP** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in Section 3(b), Member agrees that all copyrightable material, notes, records, inventions, improvements, developments, discoveries and trade secrets, whether or not patentable, conceived, made or discovered by Member in performing the Services, solely or in collaboration with others, during the term of this Agreement and outside the course of the member's activities as an HHMI (as defined below) employee or faculty member of the University of California, Berkeley (collectively, "Inventions") shall be the sole property of the Company. Member further agrees to assign (or cause to be assigned) and does hereby assign fully to the Company all such Inventions and any copyrights, patents or other intellectual property rights relating thereto. Member agrees that Member will from time to time during the term of this Agreement keep the Company advised as to Member's progress in performing the Services. Reports prepared by Member in connection with Member's performance of the Services, if any, shall be the property of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees that it will have no rights by reason of this Agreement in or to any copyrightable material, notes, records, inventions, improvements, developments, discoveries and trade secrets, whether or not patentable, developed as a result of a program of research financed by funds of any entity other than the Company for which Member is working or consulting which is outside the scope of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the termination of this Agreement, or upon the earlier request of the Company, Member will deliver to the Company all property of the Company relating to, and all tangible embodiments of, Inventions in Member's possession or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Member agrees to assist the Company, or its designee, at the expense of the Company, to obtain and from time to time enforce and defend the rights of the Company in the Inventions and any copyrights, patents or other intellectual property rights relating thereto in any and all countries, and to execute all documents reasonably necessary for the Company to do so.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Member agrees that if in the course of performing the Services, Member incorporates into any Inventions developed hereunder any invention, improvement, development, concept, discovery or other proprietary information owned by Member or in which Member has an interest ("Item"), the Company is hereby granted and shall have a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to make, have made, modify, reproduce, display, use and sell such Item as part of or in connection with such Inventions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Member agrees that if the Company, after reasonable effort, is unable because of Member's unavailability, mental or physical incapacity, or for any other similar reason, to secure Member's signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering the Inventions assigned to the Company above, then Member hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Member's agent and attorney-in-fact, to act for and in Member's behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents and copyright registrations thereon with the same legal force and effect as if executed by Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. CONFLICTING OBLIGATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company acknowledges that as an independent contractor to the Company, Member may, in Member's discretion and subject to the terms and conditions of this Agreement, serve as a consultant, employee, director or advisor of other persons or entities. Attached to this Agreement as <u>Exhibit B</u> are the Howard Hughes Medical Institute Uniform Consulting Agreement Provisions (the "Uniform Provisions"), which will be executed by the parties simultaneously with the execution of this Agreement. The parties hereto agree that the Uniform Provisions are an integral part of this Agreement and this Agreement shall have no force or effect unless the Uniform Provisions are signed by both parties. In the event of any conflict between this Agreement and the Uniform Provisions, the Uniform Provisions shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Member certifies that Member has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement, or that would preclude Member from complying with the provisions hereof, and further certifies that Member will not enter into any such agreement during the term of this Agreement. Member agrees that, during the term of this Agreement, Member will inform the Company if a conflict arises due to (i) a change in the business interests of the Company, (ii) a change in the business interests of other persons or entities to which Member serves as a consultant, advisor or otherwise or (iii) the commencement of a new employment, consulting or business relationship related to Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. TERM AND TERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of this Agreement will begin on the Effective Date and will end on the fourth anniversary of the Effective Date or upon earlier termination as provided below (the "Term"). This Agreement may be terminated at any time by either party upon 30 days prior written notice. The Term will be automatically renewed for successive two-year periods, unless either party provides written notice of at least 30 days prior to the end of the Term that such party does not wish to renew this Agreement. Upon termination of this Agreement, all rights and duties of the parties hereunder shall cease, except that Sections 2, 3, and 5 through 16 shall survive any such termination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. CONSENT AND RELEASE** 

Member grants the Company the absolute right and permission to publish Member's name on the Company website. Member waives, discharges and releases any and all rights, demands, losses, liabilities, claims and causes of action whatsoever which Member may now or hereafter be entitled to assert against the Company arising directly or indirectly in connection with its use of Member's name, including but not limited to claims based on confidentiality, right of privacy, defamation, false light or right of publicity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. ASSIGNMENT** 

Neither this Agreement nor any right hereunder or interest herein may be assigned or transferred by Member without the prior express written consent of the Company. The Company may assign any or all of its rights and obligations hereunder to any of its affiliates or to a successor of the Company as part of a merger, consolidation or sale of all or substantially all of the Company's assets. Subject to the foregoing, this Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. INDEPENDENT CONTRACTOR** 

Member enters into this Agreement as, and shall continue to be, an independent contractor. Under no circumstances shall Member look to the Company as Member's employer, partner, agent, or principal. Member shall not be entitled to any benefits accorded to the Company's employees, including workers' compensation, disability insurance, retirement plans, or vacation or sick pay. Member acknowledges and agrees that Member is obligated to report as income all compensation received by Member pursuant to this Agreement, and that Member shall be personally responsible for and shall indemnify the Company for any and all taxes and other payments due on consideration received by Member from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. EQUITABLE RELIEF** 

Member agrees that its obligations in Sections 2 and 3 are necessary and reasonable in order to protect the Company, and expressly agrees that monetary damages would be inadequate to compensate the Company for any breach of Sections 2 or 3. Accordingly, Member agrees and acknowledges that any violation or threatened violation of Sections 2 or 3 will cause irreparable injury to the Company and that, in addition to any other remedies that may be available, in law, in equity or otherwise, the Company shall be entitled to obtain injunctive relief against the breach or threatened breach of Sections 2 or 3 or the continuation of any such breach, without the necessity of proving actual damages or posting any bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. NOTICES** 

All notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to a party; (b) three business days after deposit in the U.S. mail with first class or certified mail receipt requested postage prepaid and addressed to a party at the address set forth above; or (c) the next business day after deposit with a national overnight delivery service, postage prepaid, addressed to a party at the address set forth above with next business day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider. A party may change the addresses given above by giving the other party written notice of the new address in the manner set forth above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. GOVERNING LAW** 

This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, without reference to conflicts of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. ENTIRE AGREEMENT** 

This Agreement forms the entire agreement of the parties with regard to the Services and supersedes any prior agreements between them with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. WAIVER** 

Waiver of any term or provision of this Agreement or forbearance to enforce any term or provision by either party shall not constitute a waiver as to any subsequent breach or failure of the same term or provision or a waiver of any other term or provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. MODIFICATION** 

No modification to this Agreement, nor any waiver of any rights hereunder, shall be effective, unless assented to in writing by the party against whom such modification or waiver is to be asserted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. SEVERABILITY** 

If any provision of this Agreement, or the application thereof to any person, place, or circumstance, shall be held by an arbitrator or a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of this Agreement and such provisions as applied to other persons, places, and circumstances shall remain in full force and effect, and such provision shall be enforced to fullest extent consistent with applicable law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. COUNTERPARTS** 

This Agreement may be executed in counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. Facsimile signatures (or signatures captured in ".pdf" format) shall be deemed originals.

*[Signature Page Follows]* 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

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| | | | |
|:---|:---|:---|:---|
| **COMPANY:** | **COMPANY:** | **MEMBER:** | **MEMBER:** |
| By: | /s/ Benjamin L. Oakes | By: | /s/ Jennifer A. Doudna |
| Name: Benjamin L. Oakes | Name: Benjamin L. Oakes | Name: Jennifer A. Doudna, Ph.D. | Name: Jennifer A. Doudna, Ph.D. |
| Title: President | Title: President |  |  |

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**EXHIBIT A** 

**SERVICES AND CONSIDERATION** 

1. <u>Contact</u>. Member shall coordinate Member's provision of the Services through the following
principal contact at the Company:

Name: Benjamin Oakes

Title: President & CEO

2. <u>Services</u>. Member shall provide the following advice and services:

Attend, either in person or telephonically, the meetings of the Scientific Advisory Board, subject to Member's scheduling conflicts, which meetings shall be held once a year;

Provide timely feedback and advice to electronic mail and telephone inquiries from the Company's management;

Accompany the Company's management in an advisory capacity on business development meetings and senior level sales calls, subject to Member's scheduling conflicts;

Provide the Company with access to Member's network of contacts to further the Company's business by, among other things, recommending and introducing experts, leaders, institutions and businesses to the Company as potential strategic partners;

Allow the Company to use Member's name and summary biography to identify her as a co-founder and Scientific Advisor.

Member shall render the Services at such times as Member and the Company agree, but Member's obligation to render the Services shall equal, but not exceed, 4 days per month.

3. <u>Consideration</u>.

In consideration of the Services rendered hereunder, Member shall receive a quarterly payment of Ten Thousand Dollars ($10,000.00) during the term of this Agreement. Such payment shall be made on each 3-month anniversary of the Effective Date (or, if such date is not a business day, the following business day).

In addition, the Company agrees to reimburse Member for all reasonable out-of-pocket expenses incurred by Member in the performance of the Services hereunder, including expenses for air travel (economy class) necessary and requested by the Company, and all reasonable living expenses incurred by Member when rendering Services for the Company at locations away from Member's home or business. Any single expense in excess of Five Hundred Dollars ($500.00) must be approved by the Company in advance. Member shall thereafter, on a monthly basis, provide the Company with an invoice itemizing Member's travel and other expenses, together with receipts evidencing such expenses, and the Company shall make a reimbursement payment to Member within fifteen (15) days of receipt of such invoices and receipts.

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All payments provided for under this Agreement shall be made in currency of the United States.

Except as expressly set forth herein, Member shall not be entitled to any compensation, remuneration or other benefit for rendering the Services hereunder.

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**EXHIBIT B** 

**THE HOWARD HUGHES MEDICAL INSTITUTE** 

UNIFORM CONSULTING AGREEMENT PROVISIONS

1. The Howard Hughes Medical Institute ("HHMI") employs laboratory heads at major universities,
medical schools, research institutes, and hospitals throughout the United States (each, a "Host Institution"). These Uniform Consulting Agreement Provisions (the "Uniform Provisions") are attached to an agreement (the
"Agreement") under which an HHMI laboratory head (the "Consultant") has agreed to provide consulting services to the company named in the Agreement (the "Company"). The Consultant and the Company agree that the
Agreement shall have no force or effect unless these Uniform Provisions are signed by both parties and attached to the Agreement. By signing the Uniform Provisions, the Consultant and the Company agree to abide by them, and also agree that if
anything in the Agreement or any other agreement that the Consultant executes in connection with his or her provision of consulting services to the Company is inconsistent with the Uniform Provisions, the Uniform Provisions shall govern.

2. The Agreement shall disclose all compensation of whatever kind that is to be provided to the Consultant in
connection with the consulting services. Compensation for consulting may include fixed amounts of cash and equity (such as stock or stock options) but may not include incentive or contingent features, such as bonuses based on performance or upon
achievement of scientific or operational milestones of the Company.

3. (a) The following applies if the Company's stock is publicly traded on a securities exchange: The
Consultant will at no time hold more than 5 percent of the equity of the Company, as calculated in accordance with <u>HHMI's Consulting for Companies – General Policy</u>, available at <u>http://www.hhmi.org/about/policies#consulting</u>. If equity is to be issued to the Consultant in connection with the provision of consulting services, the Consultant must provide all relevant documents to HHMI for review and approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The following applies if the Company's stock is not publicly traded on a securities exchange: The Company and the Consultant each acknowledge that they have reviewed HHMI's Consulting for Companies – General Policy and <u>HHMI's policy on Consulting for and Equity Ownership in Start-Up and Other Private Companies</u>, available at <u>http://www.hhmi.org/about/policies#consulting</u>. The Consultant agrees that he or she will, and the Company agrees that Consultant will be permitted to, reduce his or her equity ownership in the Company as necessary in order to remain in compliance with <u>HHMI's Consulting for Companies – General Policy</u> and <u>HHMI's policy on Consulting for and Equity Ownership in Start-Up and Other Private Companies</u> at all times. The Company and the Consultant agree to provide information to HHMI upon request that will allow HHMI to confirm compliance with HHMI's policies. In addition, Consultant must provide all documents relating to equity ownership that the Consultant will be asked to sign to HHMI for its prior review and approval.

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4. The Consultant's services for the Company shall consist only of the discussion of ideas and provision of
advice; the Consultant shall not direct or conduct research for or on behalf of the Company.

5. The Company acknowledges that the Consultant is an HHMI employee and is subject to HHMI's policies,
including policies concerning consulting, conflicts of interest, and intellectual property. In accordance with HHMI policy, the Consultant may disclose to the Company any information that the Consultant would normally freely disclose to other
members of the scientific community at large, whether by publication, by presentation at seminars, or in informal scientific discussions. However, the Consultant shall not disclose to the Company information that (i) is proprietary to HHMI or
the Host Institution and (ii) is not generally available to the public, except through formal technology transfer procedures.

6. Subject to the terms of paragraph 7, below, the Consultant may assign to the Company any right, title and
interest the Consultant may have in any invention, discovery, improvement, or other intellectual property which the Consultant (whether alone or with others) develops (i) during the course of performing consulting services for the Company under
the Agreement and (ii) outside the course of the Consultant's activities as an HHMI employee or faculty member of the Host Institution.

7. The Company shall have no rights by reason of the Agreement in any publication, invention, discovery,
improvement, or other intellectual property whatsoever, whether or not publishable, patentable, or copyrightable, which is developed as a result of a program of research financed, in whole or in part, by funds provided by or under the control of

information or intellectual property that arises from any research undertaken by the Consultant in his or her capacity as an employee of HHMI or a member of the faculty of the Host Institution.

8. The Company agrees, at its sole expense, to defend HHMI against, and to indemnify and hold HHMI harmless from,
any claim, liability, judgment, cost, expense, damage, deficiency, loss, or obligation, of any kind or nature (including without limitation reasonable attorneys' fees and other costs and expenses of defense) relating to a claim or suit by a
third party against HHMI, either arising from the Agreement, the Consultant's performance of services for the Company under the Agreement, or any Company products or services which result from the Consultant's performance of services
under the Agreement.

9. Nothing in the Agreement shall affect the Consultant's right to use, disseminate, or publish any
information that (i) is or becomes available to the public through no breach of the Agreement by the Consultant; (ii) is obtained by the Consultant from a third party who had the legal right to disclose the information to the Consultant;
or (iii) is already in the possession of the Consultant on the date the Agreement becomes effective. In addition, the Company's confidential information does not include information generated by the Consultant (whether alone or with
others) unless the Consultant generated the information

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(i) during the course of performing consulting services for the Company under the Agreement and (ii) outside the course of the Consultant's activities as an HHMI employee or Host Institution faculty member. Nothing in the Agreement shall prevent the Consultant from disclosing the Company's confidential information to the extent it is required to be disclosed by law, government regulation, or court order, provided that the Consultant takes reasonable steps to provide the Company with sufficient prior notice to allow the Company to consent to the disclosure or seek a protective order.

10. The Company acknowledges and agrees that nothing in the Agreement shall affect the Consultant's
obligations to HHMI or the Host Institution, the Consultant's research on behalf of HHMI or the Host Institution, the Consultant's ability to submit and publish the results of HHMI or Host Institution research, or research collaborations
in which the Consultant is a participant, and that the Agreement shall have no effect upon transfers (by way of license or otherwise) to third parties of materials or intellectual property developed in whole or in part by the Consultant as an HHMI
employee or Host Institution faculty member.

11. The Consultant has the right to terminate the Agreement at any time by providing at least thirty (30) days
written notice of termination (or such shorter notice period as may be provided in the Agreement) to the Company.

12. Paragraphs 6, 7, 8, 9, 11, 12, 13, 14 and 15 of these Uniform Provisions shall survive termination of the
Agreement.

13. The Company may use the Consultant's name, and in doing so may cite the Consultant's relationship
with HHMI, so long as any such usage (i) is limited to reporting factual events or occurrences only, and (ii) is made in a manner that could not reasonably constitute an endorsement of the Company or of any Company program, product or
service. However, the Company shall not use the Consultant's name or HHMI's name in any press release, or quote the Consultant in any company materials, or otherwise use the Consultant's name or HHMI's name in a manner not
specifically permitted by the preceding sentence, unless in each case the Company obtains in advance HHMI's written consent, and, in the case of the use of the Consultant's name, the Consultant's consent as well.

14. The Consultant and the Company acknowledge that (i) the Consultant is entering into the Agreement and
these Uniform Provisions in the Consultant's individual capacity and not as an employee or agent of HHMI, (ii) HHMI is not a party to the Agreement or the Uniform Provisions and has no liability or obligation under them, and
(iii) HHMI is an intended third-party beneficiary of the Agreement and the Uniform Provisions and certain provisions of the

15. Agreement and the Uniform Provisions are for HHMI's benefit and are enforceable by HHMI in its own name.

16. If the Agreement is governed by California law, the parties acknowledge and agree that the Agreement is not a
contract of employment under California law, and the Consultant is not an employee of the Company for any purpose under California law.

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17. These Uniform Provisions shall be in effect for the full term of the Agreement. The Company and the Consultant
agree that any amendment of the Agreement (including, without limitation, any extension of the Agreement's term or any change in the consideration to be provided to the Consultant under the Agreement) or any other departure from the terms or
conditions of the Agreement must be signed by the Consultant and an authorized representative of the Company, and also is subject to HHMI's prior written approval.

18. If any of these Uniform Provisions is adjudicated to be invalid, unenforceable, contrary to, or prohibited
under applicable laws or regulations of any jurisdiction, the Agreement shall terminate as of the date such adjudication is effective.

*[Signature Page Follows]* 

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Company: Scribe Therapeutics, Inc.

By: <u>/s/ Benjamin L. Oakes</u> 

Name: Benjamin L. Oakes

Title: President & CEO Date:

By: <u>/s/ Jennifer A. Doudna</u> 

Name: Jennifer A. Doudna, Ph.D.

Date: