Document:

Form of Second Warrant to Purchase Series C2 Preferred Stock

 Exhibit 4.9 
 THE SECURITIES REPRESENTED BY AND UNDERLYING THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
UNLESS THE TRANSFER IS IN ACCORDANCE WITH RULE 144 OR SIMILAR RULE OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SAID ACT. 
 “SECOND WARRANT” 
 STOCK PURCHASE WARRANT 
 To Purchase Shares of Series C2 Preferred Stock of 
 NeurogesX, Inc. 
 WHEREAS, This Warrant is
being delivered as one of the “Second Warrants,” as such term is defined in the Series C2 Preferred Stock Purchase Agreement, dated as of
                    , 2005 (the “SPA”). 
 WHEREAS, All terms undefined herein shall have the meaning for such terms as set forth in the SPA. 
 THIS
CERTIFIES that, for value received, «Name» or its registered assigns (the “Holder”), is entitled, upon the terms and subject to the conditions hereinafter set forth, during the Exercise Period, as defined below, but not
thereafter, to subscribe for and purchase, from NeurogesX, Inc., a California corporation (the “Company”), up to an aggregate number of shares of Series C2 Preferred Stock of the Company (the “Shares”) equal to the Holder’s
Pro Rata Portion, as defined below, of the Leftover Shares, as defined below, at a price per Share of $0.75 (the “Exercise Price”). Until such time as this Warrant is exercised in full or expires, the Exercise Price and the number of
securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter provided. 
 For purposes of this Warrant, the term “Exercise Period” shall mean the period beginning on the date which is the 5th business day (the “Start Date”) after the date on which all of the First Warrants have been terminated (the “First Warrant Termination Date”) and continuing until the 20th business day after the First Warrant Termination Date (the “Second Warrant Termination Date”). 
 For purposes of this Warrant, the term “Leftover Shares” shall mean the difference between (i) the aggregate maximum number of Shares
underlying all First Warrants issued under the SPA that were not acquired (or deemed to be acquired) as of the First Warrant Termination Date and (ii) the aggregate incremental number of Shares that were not actually acquired because of an
election to convert such First Warrants pursuant to Section 3 thereof (“Conversion Shares”). 
 For purposes of this Warrant,
the term “Pro Rata Portion” shall be mean, with respect to the Holder, the product of (i) the Leftover Shares and (ii) the quotient of (x) the number of Shares that the Holder has acquired (or deemed to acquire) as of the
First Warrant Termination Date pursuant to the SPA and its First Warrant increased by any applicable Conversion Shares and (y) the aggregate 

 
number of Shares that have been acquired (or deemed to be acquired) as of the First Warrant Termination Date pursuant to the SPA and all First Warrants by
holders that have validly elected to exercise its rights to acquire Shares pursuant to the Second Warrants increased by all applicable Conversion Shares. 
 In determining “Leftover Shares” and “Pro Rata Portion” all references to Series C2 Preferred Stock shall be deemed to mean the securities into which shares of Series C2 Preferred Stock have been
converted in the event of any such conversion. 
 Notwithstanding the foregoing, this Second Warrant shall terminate immediately and the
Holder shall have no rights hereunder (including, without limitation, the right to exercise or convert this Second Warrant), as of immediately after First Warrant Termination Date if the Holder (or its assignor) has not acquired (or been deemed to
acquire) the maximum number of shares of the Company’s equity securities to which it was entitled to acquire pursuant to the First Warrant acquired by the Holder (or its assignor) and the SPA (the “Maximum Amount”). 
 By the 3rd business day after the First Warrant Termination Date, the Company shall deliver to each Holder that has acquired (or been deemed to acquire)
its Maximum Amount, a written notice setting forth such Investor’s Pro Rata Portion of the Leftover Shares. 
 1. Title to
Warrant. Prior to the expiration hereof and subject to compliance with applicable laws, this Warrant and all rights hereunder are transferable in accordance with the terms of this Warrant upon delivery of this Warrant by the holder hereof
together with the Assignment Form annexed hereto as Attachment C properly endorsed to the office or agency of the Company, referred to in Sections 2 and 3 hereof. 
 2. Exercise of Warrant. 
 (a) Subject
to Section 10 hereof, the purchase rights represented by this Warrant are exercisable by the registered holder hereof, in whole or in part, at any time after the Start Date and before the close of business on the Termination Date by the
delivery of this Warrant and the Notice of Exercise form annexed hereto as Attachment A duly executed to the office of the Company in San Carlos, California (or such other office or agency of the Company as it may designate by notice in
writing to the registered holder hereof at the address of such holder appearing on the books of the Company), and upon payment of the Exercise Price for the Shares thereby purchased (by (i) cash, (ii) by check or bank draft payable to the
order of the Company, (iii) by cancellation of indebtedness of the Company to the holder hereof, if any, at the time of exercise in an amount equal to the aggregate purchase price of the Shares thereby purchased, or (iv) any combination of
the foregoing); whereupon the holder of this Warrant shall be entitled to receive a certificate for the number of Shares so purchased. The Company agrees that if at the time of the surrender of this Warrant and purchase the holder hereof shall be
entitled to exercise this Warrant, the Shares so purchased shall be and be deemed to be issued to such holder as the record owner of such Shares at the close of business on the date on which this Warrant shall have been exercised as aforesaid.

  

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 (b) If this Warrant is exercised in part, the holder of this Warrant shall be entitled to receive a new
warrant, which shall be dated as of the date of this Warrant, covering the number of Shares in respect of which this Warrant shall not have been exercised. 
 3. Right to Convert Warrant. The registered holder hereof shall have the right to convert this Warrant, without the payment of any consideration in addition to the consideration provided for in this
Section 3, by the delivery of this Warrant and the Notice of Conversion form annexed hereto as Attachment B duly executed to the office of the Company in San Carlos, California (or such other office or agency of the Company as it may
designate by notice in writing to the registered holder hereof at the address of such holder appearing on the books of the Company), in whole or in part, at any time after the Start Date and before the close of business on the Termination Date, into
the Shares as provided for in this Section 3. Upon exercise of this conversion right, the holder hereof shall be entitled to receive that number of Shares determined in accordance with the following formula: 
  

			
	X=	  	Y(A-B)
		  	A

 Where: 
  

					
	A	  	=	  	the Fair Market Value (as defined below) of one (1) Share as of the date a conversion of this Warrant is made.
			
	B	  	=	  	the Exercise Price for one (1) Share under this Warrant in effect as of the time of such conversion.
			
	X	  	=	  	the number of Shares issuable to the holder pursuant to this Section 3.
			
	Y	  	=	  	the number of Shares covered by this Warrant that the holder of this warrant elects to convert pursuant to this Section 3.

 “Fair Market Value” of a Share shall mean: 
 (a) if the conversion right is being exercised contemporaneously with occurrence of the Company’s initial public offering, the product of
(i) initial public offering price per share (before deducting underwriting commissions and discounts and offering expenses) and (ii) the number of shares of Common Stock issuable upon conversion of one (1) Share issuable upon exercise
of this Warrant; 
 (b) if the conversion right is being exercised at a time where there exists a public market for the Company’s Common
Stock at the time of such exercise, the product of (i) the average of the closing price quoted on the exchange on which the Common Stock is listed as published in the Wall Street Journal for the five (5) trading days prior to the date of
determination of Fair Market Value and (ii) the number of shares of Common Stock that would have been issued with respect to such Share had such Share been converted into shares of Common Stock as of the consummation of the initial public
offering (as equitably adjusted for all stock splits, recapitalizations and the like after the date of conversion). 
  

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 (c) in all other cases, the fair value as determined in good faith by the Company’s Board of
Directors. 
 Upon conversion of this Warrant in full, the registered holder hereof shall be entitled to receive a certificate for the number
of Shares determined in accordance with this Section 3. Upon conversion of this Warrant in part, the registered holder hereof shall be entitled to receive a certificate for the number of Shares determined in accordance with this Section 3,
and a new warrant, which shall be dated as of the date of this Warrant, covering the number of Shares remaining under this Warrant after a conversion pursuant to this Section 3. 
 4. Issuance of Stock; No Fractional Shares or Scrip. Certificates for the stock purchased hereunder or issuable upon conversion hereof shall be delivered
to the holder hereof promptly after the date on which this Warrant shall have been exercised or converted as aforesaid. The Company covenants that all Shares which may be issued upon the exercise of rights represented by this Warrant will, upon
exercise of the rights represented by this Warrant, be fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).
The Company agrees that, if at the time of the surrender of this Warrant and exercise of the rights represented hereby, the holder hereof shall be entitled to exercise such rights, the Shares so issued shall be and be deemed to be issued to such
holder as the record owner of such Shares as of the close of business on the date on which this Warrant shall have been exercised or converted as aforesaid. No fractional shares or scrip representing fractional shares shall be issued upon the
exercise or conversion of this Warrant. If upon any exercise of this Warrant a fraction of a share results, the Company may in its sole discretion, either (i) round down to the nearest whole share and pay the cash value of any such fractional
share or (ii) round up to the nearest whole share. 
 5. Charges, Taxes and Expenses. Issuance of certificates for the Shares
upon the exercise or conversion of this Warrant shall be made without charge to the holder hereof for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid
by the Company, and such certificates shall be issued in the name of the holder of this Warrant or in such name or names as may be directed by the holder of this Warrant; provided, however, that in the event certificates for Shares are
to be issued in a name other than the name of the holder of this Warrant, this Warrant when surrendered for exercise or conversion shall be accompanied by the Assignment Form attached hereto duly executed by the holder hereof; and provided
further, that upon any transfer involved in the issuance or delivery of any certificates for the Shares, the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

 6. No Rights as Shareholders. This Warrant does not entitle the holder hereof to any voting rights or other rights as a shareholder
of the Company prior to the exercise or conversion hereof. 
 7. Exchange and Registry of Warrant. This Warrant is exchangeable, upon
the surrender hereof by the registered holder at the above-mentioned office or agency of the Company, for a new Warrant of like tenor and dated as of such exchange. 
  

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 The Company shall maintain at the above-mentioned office or agency a registry showing the name and
address of the registered holder of this Warrant. This Warrant may be surrendered for exchange, transfer or exercise, in accordance with its terms, at such office or agency of the Company, and the Company shall be entitled to rely in all respects,
prior to written notice to the contrary, upon such registry. 
 8. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by
the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon reimbursement to the
Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of this Warrant, if mutilated, the Company will make and deliver a new Warrant of like tenor and dated as of such cancellation, in lieu of this Warrant.

 9. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall be a Saturday or a Sunday or shall be a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not a legal holiday. 
 10. Acquisition and Dilution. 
 (a)
Merger, Sale of Assets, etc. 
 (i) “Acquisition.” For the purpose of this Warrant, “Acquisition” means any
sale, license, or other disposition of all or substantially all of the assets of the Company (including a sale of all or substantially all of the intellectual property of the Company), or any reorganization, consolidation, acquisition or merger of
the Company where the holders of the Company’s securities before the transaction own less than 50% of the outstanding voting securities of the surviving entity after the transaction. 
 (ii) If at any time after the date hereof the Company proposes to consummate an Acquisition in which the shareholders of the Company shall receive cash
or publicly traded securities in exchange for their shares of stock in the Company pursuant to such transaction, then the Company shall give the holder of this Warrant written notice (the “Merger Notice”) of such impending transaction not
later than fifteen (15) days prior to the shareholders’ meeting called to approve such transaction, or fifteen (15) days prior to the closing of such transaction, whichever is earlier, and shall also notify the holder of this Warrant
of the final approval of such transaction. The first of such notices shall describe the material terms and conditions of the impending transaction, and the Company shall thereafter give the holder of this Warrant prompt notice of any material
changes. To the extent this Warrant has not been exercised or converted in full by the closing of such transaction then this Warrant shall automatically be terminated upon the closing of such transaction. In such event, the holder may provide an
exercise notice hereunder that is contingent upon consummation of any such Acquisition. 
 (iii) If either (x) this Warrant is not
terminated in an Acquisition pursuant to the provisions of Section 10(a)(ii), (a “Non-Terminating Acquisition”) or (y) upon any reorganization, consolidation, acquisition or merger of the Company where the holders of the 

  

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Company’s securities before the transaction own at least 50% of the outstanding voting securities of the surviving entity after the transaction (a
“Non Qualifying Acquisition”), then, as a condition of such Non- Terminating Acquisition or Non-Qualifying Acquisition, as applicable, lawful and adequate provisions shall be made by the Company whereby the Holder shall thereafter have the
right to purchase and receive (in lieu of the shares of the Preferred Stock or Common Stock, as applicable, of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented by this Warrant) such shares of
stock, securities or other assets or property as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Preferred Stock or Common Stock, as applicable, equal to the number of shares of such stock
immediately theretofore purchasable and receivable upon the exercise of the rights represented by this Warrant. In the event of any Non- Terminating Acquisition or Non-Qualifying Acquisition, as applicable,, appropriate provision shall be made by
the Company with respect to the rights and interests of the Holder that the provisions hereof (including, without limitation, provisions for adjustments of the Exercise Price and of the number of shares purchasable and receivable upon the exercise
of this Warrant) shall thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise hereof. 
 (b) Reclassification, etc. If the Company at any time shall, by subdivision, combination or reclassification of security or otherwise, change any of the securities to which purchase rights under this Warrant
exist into the same or a different number of securities of any class or classes, this Warrant shall thereafter be to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities
which were subject to the purchase rights under this Warrant immediately prior to such subdivision, combination, reclassification or other change. If the Company shall subdivide the Shares, by split-up or otherwise, or combine the Shares, or issue
additional shares of its Series C2 Preferred Stock in payment of a stock dividend on the Shares, the number of shares issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock
dividend, or proportionately decreased in the case of a combination, and the Exercise Price shall forthwith be proportionately decreased in the case of a subdivision or stock dividend, or proportionately increased in the case of a combination.

 (c) Conversion of Stock. In case all the authorized Shares are converted into other securities or property, or the Shares otherwise
ceases to exist, then, in such case, the Holder, upon exercise of this Second Warrant at any time after the date on which the Shares is so converted or ceases to exist (the “Conversion Date”), shall receive, in lieu of the number of Shares
that would have been issuable upon such exercise immediately prior to the Conversion Date (the “Former Number of Shares”), the stock and other securities and property which the Holder would have been entitled to receive upon the Conversion
Date if the Holder had exercised this Second Warrant with respect to the Former Number of Shares immediately prior to the Conversion Date (all subject to further adjustment as provided in this Second Warrant). 
 (d) Cash Distributions. No adjustment on account of cash dividends on the Shares issuable upon the exercise of this Warrant will be made to the
purchase price or the number of Shares under this Warrant. 
  

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 (e) Authorized Shares. The Company covenants that, during the period the Warrant is outstanding,
it will reserve from its authorized and unissued Preferred Stock and Common Stock a sufficient number of shares to provide, respectively, for the exercise or conversion of this Warrant in full, and the conversion into shares of Common Stock of all
Shares receivable upon such exercise or conversion. The Company further covenants that such shares as may be issued pursuant to such exercise or conversion will, upon issuance after the exercise or conversion in accordance with the terms of
Section 2 or 3 above, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issuance thereof, but only to the extent that the Company is required to pay such taxes, liens and
charges pursuant to the terms of this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the
necessary certificates for the Shares upon the exercise of the purchase rights under this Warrant. 
 (f) Conversion Price
Adjustments. The rate at which the Shares are convertible into shares of Common Stock of the Company is subject to adjustment as set forth in the Company’s articles of incorporation, as amended from time to time. Any adjustment to the
conversion rate of the Shares issuable upon the exercise of this Warrant effected prior to any exercise or conversion of this Warrant shall apply to any Shares thereafter issued pursuant to the terms hereof. 
 (g) Certificate of Adjustment. Whenever the Exercise Price is adjusted, as herein provided, the Company shall promptly deliver to the holder of
the Warrant a certificate of the President of the Company setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 
 (h) No Impairment. The Company will not, by amendment of its articles of incorporation or through any reclassification, capital reorganization,
consolidation, merger, sale or conveyance of assets, dissolution, liquidation, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate in order to protect the rights and obligations that the holder of this Warrant possesses pursuant to this Warrant.

 11. Restrictions on Transferability of Securities. 
 (a) Restrictions on Transferability. This Warrant, the Shares issuable upon exercise of this Warrant, and the shares of Common Stock issuable upon conversion of the Shares (collectively the
“Securities”) shall not be sold, assigned, transferred or pledged except upon the conditions specified in this Section 11, which conditions are intended to ensure compliance with the provisions of the Securities Act. Each holder of
any of the Securities will cause any proposed purchaser, assignee, transferee, or pledgee of the Securities held by such holder to agree in writing to take and hold such Securities subject to the provisions and upon the conditions specified in this
Warrant as if such purchaser, assignee, transferee or pledgee were the Holder hereunder. 
 (b) Restrictive Legends. Each certificate
representing the Securities and any other securities issued in respect of the Securities upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the provisions of 

  

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Section 11(c) below) be stamped or otherwise imprinted with legends in substantially the following form (in addition to any legend required under
applicable state securities laws): 
 (i) 33 Act Legend. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION UNLESS THE TRANSFER IS IN ACCORDANCE WITH RULE 144 OR SIMILAR RULE OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF SAID ACT. 
 (ii) Lock-Up Legend. 
 UPON THE REQUEST OF THE COMPANY OR THE UNDERWRITERS, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, SHORT SOLD, LOANED, MADE SUBJECT TO
AN OPTION TO PURCHASE SUCH SECURITIES OR OTHERWISE DISPOSED OF FOR A PERIOD NOT TO EXCEED 180 DAYS FOLLOWING THE EFFECTIVE DATE OF A REGISTRATION STATEMENT FILED BY THE COMPANY FOR ITS INITIAL PUBLIC OFFERING, WITHOUT THE PRIOR WRITTEN CONSENT OF
THE COMPANY OR THE UNDERWRITERS. 
 The Holder and each holder of Securities and each subsequent assignee, transferee or pledgee (hereinafter
collectively, including the Holder, referred to as a “Holder”) consents to the Company making a notation on its records and giving instructions to any transfer agent of the Securities in order to implement the restrictions on transfer
established in Sections 11 and 14. 
 (c) Notice of Proposed Transfers. Each Holder of a certificate representing the Securities,
by acceptance thereof, agrees to comply in all respects with the provisions of Sections 11 and 14. Prior to any proposed sale, assignment, transfer or pledge (a “Transfer”) of any Securities (other than (i) a transfer not
involving a change in beneficial ownership, (ii) in transactions involving the distribution without consideration of Securities by a Holder to any of its affiliates, equityholders, members, retired members, partners, or retired partners, or to
the estate of any of its equityholders, members, retired members, partners or retired partners, (iii) a transfer to an affiliated fund, partnership or company, which is not a competitor of the Company (as determined in good faith by the
Company’s Board of Directors), subject to compliance with applicable securities laws or (iv) transfers in compliance with Rule 144, so long as the Company is furnished with satisfactory evidence of compliance with such Rule), unless
there is in effect a registration statement under the Securities Act covering the proposed transfer, the Holder thereof shall give prior written notice to the Company of such Holder’s intention to effect such transfer, sale, assignment or
pledge. Each such notice shall describe the manner and circumstances of the proposed transfer, sale, assignment or pledge in sufficient detail, and shall be accompanied, at such Holder’s expense, by either (i) an opinion of counsel (who
shall, and whose opinion shall be, addressed to the Company and 

  

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reasonably satisfactory to the Company) to the effect that the proposed transfer of the Securities may be effected without registration under the Securities
Act or (ii) a “no action” letter from the Securities and Exchange Commission (the “Commission”) to the effect that the transfer of such securities without registration will not result in a recommendation by the staff of the
Commission that action be taken with respect thereto, whereupon the Holder of such Securities shall be entitled to transfer such Securities in accordance with the terms of the notice delivered by such Holder to the Company. Each certificate
evidencing the Securities transferred as above provided shall bear (except if such transfer is made pursuant to Rule 144, in which case the legend set forth in Section 11(b)(i) shall not be required) the restrictive legends set forth in
Section 11(b) above, except that each such certificate shall not bear the legend set forth in Section 11(b)(i) if in the opinion of counsel for such Holder and in the opinion of counsel for the Company such legend is not required in order
to establish compliance with any provision of the Securities Act. Notwithstanding the foregoing, upon exercise of this Second Warrant, in the event that the Holder is a party to, and or subject to the provisions of, that certain Third Amended and
Restated Investors’ Rights Agreement dated as of the original date of issuance of this Second Warrant, as the same may be amended from time to time, then (x) the provisions of this Section 11(c) shall be inapplicable to the Transfer
of any of the Shares issuable upon exercise or conversion of this Second Warrant and (y) the terms and conditions of Section 3.9 of the SPA shall apply to the Transfer of any of the Shares issuable upon exercise or conversion of this
Second Warrant as though the Holder were an Investor (as defined therein). 
 (d) Removal of Restrictions on Transfer of Securities.
The legend referred to in Section 11(b)(i) hereof stamped on a certificate evidencing the Securities and the stock transfer instructions and record notations with respect to the Securities shall be removed, and the Company shall issue a
certificate without such legend to the Holder of the Securities, if the Securities are registered under the Securities Act, or if such Holder provides the Company with an opinion of counsel (which may be counsel for the Company) reasonably
satisfactory to the Company to the effect that a public sale or transfer of such security may be made without registration under the Securities Act or such Holder provides the Company with reasonable assurances, which may, at the option of the
Company, include an opinion of counsel (which may be counsel for the Company) reasonably satisfactory to the Company, that such security can be sold pursuant to paragraph (k) of Rule 144 (or any successor provision) under the Securities
Act. After the expiration of the Lock-Up Period (as defined in Section 14 below), and upon request of the Holder, the legend referred to in Section 11(b)(ii) hereof stamped on a certificate evidencing the Securities and the stock transfer
instructions and record notations with respect to the Securities shall be removed, and the Company shall issue a certificate without such legend to the Holder of the Securities. 
 12. Investment Representations of the Holder. With respect to the acquisition of any of the Securities, the Holder hereby represents and warrants
to the Company as follows: 
 (a) Experience. The Holder has substantial experience in evaluating and investing in private placement
transactions of securities in companies similar to the Company so that it is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests. The Holder is an “accredited
investor” within the meaning of Regulation D promulgated under the Securities Act. 
  

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 (b) Investment. The Holder is acquiring the Securities for investment for its own account, not as
a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof. The 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, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Holder’s representations as expressed herein.

 (c) Rule 144. The Holder acknowledges that the Securities must be held indefinitely unless subsequently registered under the
Securities Act, or unless an exemption from such registration is available. The Holder is aware of the provisions of Rules 144 and 144A promulgated under the Securities Act that permit limited resale of securities purchased in a private placement
subject to satisfaction of certain conditions. 
 (d) No Public Market. The 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. 
 (e) Access to Data. The Holder has had an opportunity to discuss the Company’s business, management and financial affairs with the Company’s management and has also had an opportunity to ask questions of the Company’s
officers, which questions were answered to the Holder’s satisfaction. 
 13. Notices. If at any time prior to the exercise or
conversion of this Warrant in full the Company takes a record of the holders of the Company’s stock for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, any right to subscribe for,
purchase or otherwise acquire any shares of stock of any class or any other securities or property, or to receive any other right, the Company will give to the holder of this Warrant, at least thirty (30) days prior to the date specified
therein, written notice specifying the date on which any such record is to be taken for the purpose of such dividend, distribution or right, and the amount and character of such dividend, distribution or right. 
 14. Lock-Up Agreement. If requested by the Company and an underwriter of Common Stock (or other securities) of the Company, no Holder shall sell
(including, without limitation, any short sale) or otherwise transfer or dispose of any Common Stock and options (or other securities) of the Company held by such Holder (other than those included in the registration) during the one hundred eighty
(180) day period following the effective date of a registration statement of the Company filed under the Securities Act (the “Lock-Up Period”), provided that: (i) such one hundred eighty (180) day “market
stand-off” agreement shall only apply to the first such registration statement of the Company, including securities to be sold on its behalf to the public in an underwritten offering; and (ii) all Holders, as such term is defined in the
Third Amended and Restated Holders’ Rights Agreement, dated as of October __, 2005, as the same may be amended and/or restated from time to time, and officers and directors of the Company enter into similar agreements. The Company may impose
stop-transfer instructions with respect to Securities of a Holder to enforce the provisions of this Section 14. 
  

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 15. Miscellaneous. 
 (a) Issue Date. The provisions of this Warrant shall be construed and shall be given effect in all respect as if it had been issued and delivered by the Company on the date hereof. This Warrant shall be binding
upon any successors or assigns of the Company. This Warrant shall be governed in all respects by the laws of the State of California. 
 (b)
Waivers and Amendments. Any term of this Warrant may be amended and the observance of any term of this Warrant 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 more than a majority of the Common Stock issued or issuable upon conversion of the Series C2 Preferred Stock issued pursuant to the SPA and the Warrants, provided that no amendment or waiver which, by
its express terms, affects the express rights or obligations hereunder of the Holder differently than the express rights or obligations of the Second Warrants held by all Holders shall be binding as to the Holder unless the Holder consents in
writing to such amendment or waiver. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any securities issued under this Warrant at the time outstanding (including securities into which such
securities have been converted), each future holder of all such securities and the Company. The Holder acknowledges that by the operation of this Section (and subject to the limitations set forth herein) hereof the holders of more than a majority of
the Common Stock issued or issuable upon conversion of the Series C2 Preferred Stock issued pursuant to the SPA and the Warrants will have the right and power to diminish or eliminate all rights of the Holder under this Warrant. 
 (c) Notices. All notices and other communications required or permitted to be given under this Warrant shall be in writing and shall be deemed
effectively given upon personal delivery, delivery by nationally recognized courier or upon deposit with the United States Post Office (by first class mail, postage prepaid) addressed as follows: (i) if to the Company, at the address of its
principal office in the State of California, or at such other address as the Company shall have furnished Holder in writing, and (ii) if to the Holder, to the address set forth for such Holder on Exhibit A to the SPA, or such other
address as the Holder shall have furnished the Company in writing. 
 (d) Survival. The provisions of Sections 11 and 14 hereof
shall survive the exercise or conversion of this Warrant and shall remain in effect until such time as the Holder or any Holder no longer holds Securities. 
 (e) Binding Effect on Successors. This Warrant shall be binding upon any corporation succeeding the Company by merger, consolidation or acquisition of all or substantially all of the Company’s assets. All
of the covenants and agreements of the Company shall inure to the benefit of successors and assigns of the holder hereof. 
  

 -11- 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officers thereunto duly
authorized. 
 Dated:                     , 2005

  

			
	NEUROGESX, INC.
		
	Name:	 	  

	By:	 	  

	Title:	 	  

 Agreed and Accepted: 
 HOLDER: 
  
 [INSERT SIGNATURE BLOCK] 

 ATTACHMENT A 
 NOTICE OF EXERCISE 
 To: NeurogesX, Inc. 
 (1) The undersigned hereby elects to purchase
                     shares of [Series C2 Preferred Stock] of NeurogesX, Inc. pursuant to the terms of the attached Warrant, and tenders
herewith payment of the purchase price in full for such shares, together with all applicable transfer taxes, if any. 
 (2) Please issue a
certificate of certificates representing said shares of [Series C2 Preferred Stock] in the name of the undersigned or in such other name as is specified below: 
 (Name) 
 (Address) 
 (3) The undersigned represents that the aforesaid shares of [Series C2 Preferred Stock] are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with,
the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares. 
  

			
		  	  

	        (Date)	  	(Signature)

 ATTACHMENT B 
 NOTICE OF CONVERSION 
 To: NeurogesX, Inc. 
 (1) The undersigned hereby elects to convert
                     shares of the attached Warrant into such number of shares of [Series C2 Preferred Stock] of NeurogesX, Inc. as is
determined pursuant to Section 3 of such Warrant, which conversion shall be effected pursuant to the terms of the attached Warrant. 
 (2) Please issue a certificate or certificates representing said shares of NeurogesX, Inc. [Series C2 Preferred Stock] in the name of the undersigned or in such other name as is specified below: 
 (Name) 
 (Address) 
 (3) The undersigned represents that the aforesaid shares of NeurogesX, Inc. [Series C2 Preferred Stock] are being acquired for the account of the
undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares. 
  

			
		  	  

	 (Date)
	  	(Signature)

  

 -2- 

 ATTACHMENT C 
 ASSIGNMENT FORM 
 (To assign the foregoing warrant, execute this form and supply the 
 required information. Do not use this form to purchase shares.) 
 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to 
  

					
	  

	(Please Print)
		
	 whose address is 
	 	  

	(Please Print)

 Dated:
                    , 20     
  

			
	Transferring Holder’s Signature:	  	  

		
	Transferring Holder’s Address:	  	  

		  	  

  

	
	Signed in the presence of:
	
	  

 NOTE: The signature to this Assignment Form set forth above must correspond with the name of the Holder as it
appears on the face of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing
Warrant. 
 In connection with the transfer of the Warrant (or a portion thereof) to the undersigned, the undersigned hereby agrees to be
bound by and comply with all of the provisions and obligations applicable to the Holder contained in the Warrant and to execute any further documentation necessary to carry out the intent of the foregoing agreement to be bound. 
  

			
	Transferee Holder’s Signature:	 	  

		
	Transferee Holder’s Name (printed):	 	  

		
	Transferee Holder’s Address:2000 Stock Incentive Plan

 Exhibit 10.1 
 NEUROGESX, INC., 
 a California corporation 
 2000 STOCK INCENTIVE PLAN 
 (Effective June 5, 2000, As Amended March 16, 2006) 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 1. Purpose
	  	1
		
	 2. Definitions
	  	1
		
	 (a)    “Acceleration Agreement” shall mean an employment or other agreement between the Company and an Offeree
or Optionee addressing the acceleration of vesting of Shares, Options or Restricted Stock, respectively, upon or in connection with a Change of Control
	  	1
	 (b)    “Board”
	  	1
	 (c)    “Change of Control” shall mean an acquisition of the Company by another entity in which the Company or
the shareholders of the Company receive cash or publicly traded securities and that involves (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becoming the “beneficial owner” (as defined
in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities, (ii) a sale
of all or substantially all of the assets or outstanding stock of the Company, or (iii) the consummation of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the
total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation
	  	2
	 (d)    “Code”
	  	2
	 (e)    “Committee”
	  	2
	 (f)     “Common Stock”
	  	2
	 (g)    “Company”
	  	2
	 (h)    “Consultant”
	  	2
	 (i)     “Director”
	  	2
	 (j)     “Employee”
	  	2
	 (k)    “Exercise Price”
	  	2
	 (l)     “Fair Market Value”
	  	2
	 (m)   “Incentive Stock Option” or “ISO”
	  	2
	 (n)    “Non-Employee Director”
	  	2
	 (o)    “Nonstatutory Option” or “NSO”
	  	2
	 (p)    “Offeree”
	  	2
	 (q)    “Officer”
	  	2
	 (r)     “Option”
	  	2

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page
	 (s)    “Optionee”
	  	2
	 (t)     “Parent”
	  	3
	 (u)    “Plan”
	  	3
	 (v)    “Purchase Price”
	  	3
	 (w)   “Restricted Stock”
	  	3
	 (x)    “Service”
	  	3
	 (y)    “Stock Option Agreement”
	  	3
	 (z)    “Stock Option Agreement”
	  	3
	 (aa)  “Stock Purchase Right”
	  	3
	 (bb)  “Subsidiary”
	  	3
	 (cc)  “Ten Percent Shareholder”
	  	3
		
	 3. Administration
	  	3
		
	 (a)    Committees of the Board
	  	3
	 (b)    Authority of the Board
	  	4
		
	 4. Eligibility
	  	4
		
	 5. Stock Subject to Plan
	  	4
		
	 (a)    Basic Limitation
	  	4
	 (b)    Additional Shares
	  	4
		
	 6. Terms and Conditions of Grants or Sales
	  	4
		
	 (a)    Stock Option Agreement
	  	4
	 (b)    Duration of Offers and Nontransferability of Rights
	  	4
	 (c)    Purchase Price
	  	4
	 (d)    Withholding Taxes
	  	5
	 (e)    Change of Control
	  	5
	 (f)     Restrictions on Transfer of Common Stock
	  	5
		
	 7. Terms and Conditions of Options
	  	5
		
	 (a)    Stock Option Agreement
	  	5
	 (b)    Number of Shares
	  	5
	 (c)    Exercise Price
	  	5
	 (d)    Withholding Taxes
	  	6
	 (e)    Exercisability
	  	6
	 (f)     Term
	  	6
	 (g)    Nontransferability
	  	6
	 (h)    Exercise of Options on Termination of Service
	  	6
	 (i)     No Rights as a Shareholder
	  	6
	 (j)     Modification, Extension and Assumption of Options
	  	7
	 (k)    Change of Control
	  	7

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page
	 (l)     Restrictions on Transfer
	  	7
		
	 8. Forms of Payment
	  	7
		
	 (a)    General Rule
	  	7
	 (b)    Surrender of Stock
	  	8
	 (c)    Promissory Notes
	  	8
	 (d)    Cashless Exercise
	  	8
		
	 9. Adjustments Upon Changes in Common Stock
	  	8
		
	 (a)    General
	  	8
	 (b)    Mergers and Consolidations
	  	8
	 (c)    Reservation of Rights
	  	9
		
	 10. Legal Requirements
	  	9
		
	 (a)    Restrictions on Issuance
	  	9
	 (b)    Financial Reports
	  	9
		
	 11. No Employment Rights
	  	9
		
	 12. Duration and Amendments
	  	9
		
	 (a)    Term of the Plan
	  	9
	 (b)    Right to Amend or Terminate the Plan
	  	10
	 (c)    Effect of Amendment or Termination
	  	10
		
	 13. Stock Purchase Rights
	  	10
		
	 (a)    Rights to Purchase
	  	10
	 (b)    Repurchase Option
	  	10
	 (c)    Other Provisions
	  	10
	 (d)    Rights as a Shareholder
	  	11
	 (e)    Change of Control
	  	11

  

 -iii- 

 NEUROGESX, INC. 
 2000 STOCK INCENTIVE PLAN 
 Adopted By the Board June 5, 2000 
 Approved By Shareholders June 5, 2000 
 As Amended March 16, 2006 
 1. Purpose. The purpose of the NeurogesX, Inc. 2000 Stock Incentive Plan (the
“Plan”) is to offer selected employees, directors and consultants of NeurogesX, Inc., a California corporation (the “Company”), an opportunity to acquire a proprietary interest in the success of the Company, or to increase
such interest, to encourage such persons to remain in the employ of the Company and to attract new employees with outstanding qualifications. Stock purchase rights may also be granted under the Plan. 
 The Plan provides for the direct grant or sale of Common Stock and for the grant of Options to purchase Common Stock. Options granted under the Plan may
include Nonstatutory Options as well as Incentive Stock Options intended to qualify under section 422 of the Internal Revenue Code. 
 2. Definitions.
 (a) “Acceleration Agreement” shall mean an employment or other agreement
between the Company and an Offeree or Optionee addressing the acceleration of vesting of Shares, Options or Restricted Stock, respectively, upon or in connection with a Change of Control. 
 (b) “Board” shall mean the Board of Directors of the Company, as constituted from time to time. 
 (c) “Change of Control” shall mean an acquisition of the Company by another entity in which the Company or the
shareholders of the Company receive cash or publicly traded securities and that involves (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becoming the “beneficial owner” (as defined in
Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities, (ii) a sale of
all or substantially all of the assets or outstanding stock of the Company, or (iii) the consummation of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the
total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation. 

 (d) “Code” shall mean the Internal Revenue Code of 1986, as amended.

 (e) “Committee” shall mean a committee consisting of one or more members of the Board that is appointed by
the Board to administer the Plan. 
 (f) “Common Stock” means the Company’s common stock. 
 (g) “Company” shall mean NeurogesX, Inc., a California corporation. 
 (h) “Consultant” shall mean an individual who performs bona fide services to the Company, a Parent or a Subsidiary other
than as an Employee. 
 (i) “Director” shall mean a member of the Board. 
 (j) “Employee” shall mean any individual, including Officers and Directors, who is a common-law employee of the Company,
a Parent or a Subsidiary. The payment of a Director’s fee by the Company shall not be sufficient to constitute “employment” by the Company. 
 (k) “Exercise Price” shall mean the amount for which one share of Common Stock may be purchased upon exercise of an
Option, as specified by the Board in the applicable Stock Option Agreement. 
 (l) “Fair Market Value” shall
mean the fair market value of a share of Common Stock, as determined by the Board in good faith. Such determination shall be conclusive and binding on all persons. 
 (m) “Incentive Stock Option” or “ISO” shall mean an incentive stock option described in Code
section 422(b). 
 (n) “Non-Employee Director” shall mean a member of the Board who is not an Employee.

 (o) “Nonstatutory Option” or “NSO” shall mean a stock option that is not an ISO.

 (p) “Offeree” shall mean an individual to whom the Board has offered the right to acquire Common Stock
other than upon exercise of an Option. 
 (q) “Officer” means a person who is an officer of the Company
within the meaning of section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 (r) “Option” shall mean an ISO or NSO granted under the Plan entitling the holder to purchase Common Stock. 
 (s) “Optionee” shall mean an Employee or Consultant who holds an Option. 
  

 -2- 

 (t) “Parent” shall have the meaning set forth in
section 424(e) of the Code. 
 (u) “Plan” shall mean this 2000 Stock Incentive Plan. 
 (v) “Purchase Price” shall mean the consideration for which one share of Common Stock may be acquired under the Plan
pursuant to a grant or sale under Section 6 or Section 13, respectively, as specified by the Board. 
 (w)
“Restricted Stock” means shares of Common Stock acquired pursuant to a grant of a Stock Purchase Right under Section 13 below. 
 (x) “Service” shall mean service as an Employee, Non-Employee Director or Consultant. 
 (y) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to an Option. 
 (z) “Stock Option Agreement” shall mean the agreement between the Company and an Offeree who acquires Common Stock under
the Plan (other than pursuant to an Option) that contains the terms, conditions and restrictions pertaining to the acquisition of such Common Stock. 
 (aa) “Stock Purchase Right” means a right to purchase Common Stock pursuant to Section 13 below. 
 (bb) “Subsidiary” shall have the meaning set forth in section 424(f) of the Code. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date. 
 (cc) “Ten Percent Shareholder” means an individual who
owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of
section 424(d) of the Code shall be applied. 
 3. Administration.
 (a) Committees of the Board. The Board shall administer the Plan. However, any or all administrative functions otherwise
exercisable by the Board may be delegated to a Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time terminate the
functions of the Committee and reassume all powers and authority previously delegated to the Committee. Any reference to the Board in the Plan shall be construed as a reference to the Committee (if any) to whom the Board has assigned a
particular function. 
  

 -3- 

 (b) Authority of the Board. Subject to the provisions of the Plan, the Board
shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan. All decisions, interpretations and other actions of the Board shall be final and binding on all parties who have an
interest in the Plan or any option or shares issued thereunder. 
 4. Eligibility. Only Employees, Non-Employee Directors and
Consultants shall be eligible for the grant of Options or the direct grant or sale of Common Stock. Only Employees shall be eligible for the grant of ISOs. 
 5. Stock Subject to Plan.
 (a) Basic Limitation. The stock issuable under
the Plan shall be shares of authorized but unissued or reacquired Common Stock. The maximum number of shares of Common Stock which may be issued under the Plan shall not exceed Sixteen Million Seven Hundred Fifteen Thousand (16,215,000) shares,
subject to adjustment pursuant to Section 9. 
 (b) Additional Shares. If any outstanding Option or other
right to acquire Common Stock for any reason expires or is canceled, forfeited or otherwise terminated, the Common Stock allocable to the unexercised portion of such Option or other right shall again be available for the purposes of the Plan. If
shares of Common Stock issued under the Plan are reacquired by the Company pursuant to any right of repurchase or right of first refusal, such shares of Common Stock shall again be available for the purposes of the Plan, except such shares shall not
be available for ISOs. 
 6. Terms and Conditions of Grants or Sales.
 (a) Stock Option Agreement. Each grant or sale of Common Stock under the Plan other than upon exercise of an Option shall be
evidenced by a Stock Option Agreement between the Offeree and the Company. Such grant or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the
Plan and that the Board deems appropriate for inclusion in such Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
 (b) Duration of Offers and Nontransferability of Rights. Any right to acquire Common Stock under the Plan other than an Option
shall automatically expire if not exercised by the Offeree within the number of days specified by the Board and communicated to the Offeree. Such right shall not be transferable and shall be exercisable only by the Offeree to whom such right was
granted. 
 (c) Purchase Price. The Purchase Price shall be established by the Board and set forth in the Stock
Option Agreement and, to the extent required to comply with the California Corporations Code or the regulations thereunder, shall not be less than eighty-five percent (85%) of Fair Market Value (one hundred percent (100%) for Ten Percent
Shareholders). The Purchase Price shall be payable in a form described in Section 8 or, in the discretion of the Board, in consideration for past services rendered to the Company or for its benefit. 
  

 -4- 

 (d) Withholding Taxes. As a condition to the purchase of Common Stock, the
Offeree shall make such arrangements as the Board may require for the satisfaction of any federal, state or local withholding tax obligations that may arise in connection with such purchase. 
 (e) Change of Control. Upon a Change of Control, any Shares acquired pursuant to this Section 6 will vest and have any
Company repurchase or reacquisition right lapse as to 25% of such Shares (but in no event shall the number of Shares which so vests exceed the number of Shares issued pursuant an award under this Section 6). Notwithstanding the foregoing, this
Section 6(e) will not apply, and no vesting will occur as the result of this Section 6(e), to Shares held by an Offeree if such Offeree has an Acceleration Agreement, which agreement may provide for more or less acceleration of vesting
than provided under this Section 6(e). In the event an Offeree has been awarded one or more grants under this Section 6 and such Offeree’s Acceleration Agreements, if any, do not cover one or more of such awards, then the awards not
covered by an Acceleration Agreement will vest in accordance with the terms of this Section 6(e) upon a Change of Control. 
 (f) Restrictions on Transfer of Common Stock. No Common Stock granted or sold under the Plan may be sold, made the subject of any short sale or loan, hypothecated, pledged, optioned or otherwise transferred or disposed of by the
offeree thereof for such period of time (not to exceed one hundred eighty (180) days) following the effective date of a registration statement covering securities of the Company filed under the Securities Act of 1933, as amended, unless
such restriction is consented to or waived by the managing underwriter of such registration. Subject to the preceding sentence, any Common Stock granted or sold under the Plan shall be subject to such special conditions, rights of repurchase, rights
of first refusal and other transfer restrictions as the Board may determine. Such restrictions shall apply in addition to any general restrictions that may apply to all holders of Common Stock. 
 7. Terms and Conditions of Options.
 (a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Options shall be subject to all applicable terms
and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Board deems appropriate for inclusion in such Stock Option Agreements. The provisions of the various Stock Option
Agreements entered into under the Plan need not be identical. 
 (b) Number of Shares. Each Stock Option Agreement
shall specify the number of shares of Common Stock that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 9. The Stock Option Agreement shall also specify whether the Option is an ISO or a
NSO. 
 (c) Exercise Price. An Option’s Exercise Price shall be established by the Board and set forth in a
Stock Option Agreement. The Exercise Price of an ISO shall not be less than one hundred percent (100%) of the Fair Market Value (one hundred ten percent (110%) for Ten Percent Shareholders) on the date of grant. The Exercise Price of
a NSO shall not be less than eight-five percent (85%) of the Fair Market Value (one hundred ten percent (110%) for Ten Percent 

  

 -5- 

 
Shareholders) on the date of grant. The Exercise Price shall be payable in a form described in Section 8. Notwithstanding the foregoing, an Option
may be granted with an exercise price lower than that set prescribed in this paragraph if the Option grant is attributable to the issuance or assumption of an option in a transaction to which Code section 424(a) applies. 
 (d) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Board may
require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Board may require for the satisfaction of any
federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Common Stock acquired by exercising an Option. 
 (e) Exercisability. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to vest or
become exercisable. To the extent required to comply with the California Corporations Code or the regulations thereunder, an Option granted to Employees who are not officers shall vest and become exercisable no less rapidly than the rate of twenty
percent (20%) per year for each of the first five (5) years from the date of grant. Subject to the preceding sentence, the vesting of any Option shall be determined by the Board in its sole discretion. A Stock Option Agreement may permit
an Optionee to exercise an Option before it is vested, subject to the Company’s right of repurchase over any shares acquired under the unvested portion of the Option (an “early exercise”), which right of repurchase shall lapse at the
same rate the Option would have vested had there been no early exercise. 
 (f) Term. The Stock Option Agreement
shall specify the term of the Option. The term shall not exceed ten (10) years from the date of grant (five (5) years in the case of an ISO granted to a Ten Percent Shareholder). Subject to the preceding sentence, the Board at its sole
discretion shall determine when an Option is to expire. 
 (g) Nontransferability. No Option shall be transferable
by the Optionee other than by will or by the laws of descent and distribution. An Option may be exercised during the lifetime of the Optionee only or by the guardian or legal representative of the Optionee. No Option or interest therein may be
transferred, assigned, pledged or hypothecated by the Optionee during his lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 
 (h) Exercise of Options on Termination of Service. To the extent required to comply with the California Corporations Code or
the regulations thereunder, each Stock Option Agreement shall provide that the Optionee shall have the right to exercise the Option following termination of the Optionee’s Service, during the Option’s term, for at least thirty
(30) days following termination of Service for any reason except termination for cause, death or disability, and for at least six (6) months following termination of Service due to death or disability. 
 (i) No Rights as a Shareholder. An Optionee, or a transferee of an Optionee, shall have no rights as a Shareholder with
respect to any Common Stock covered by an Option until such person becomes entitled to receive such Common Stock by filing a notice of exercise and paying the Exercise Price pursuant to the terms of such Option and executing a form of Stock Option
Agreement. 
  

 -6- 

 (j) Modification, Extension and Assumption of Options. Within the limitations
of the Plan, the Board may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options for the same or a different
number of shares of Common Stock and at the same or a different Exercise Price. Notwithstanding the foregoing, no modification of an Option shall, without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s
obligations under such Option. 
 (k) Change of Control. Upon a Change of Control, all outstanding Options on the
date of such Change of Control will vest and become exercisable as to 25% of the Shares subject to such Options (that is, in addition to the Shares subject to such Options which have vested and become exercisable as of the date of such Change of
Control), but in no event shall the number of Shares subject to such Options which so vest exceed the total number of Shares subject to such Options. In all other respects, each such Option will continue to be bound by and subject to the terms of
its applicable Option Agreement and the Plan. Notwithstanding the foregoing, this Section 7(k) will not apply, and no vesting will occur as the result of this Section 7(k), to Options held by an Optionee if such Optionee has an
Acceleration Agreement, which agreement may provide for more or less acceleration of vesting than provided under this Section 7(k). In the event an Optionee has been awarded one or more Options under this Section 7 and such Optionee’s
Acceleration Agreements, if any, do not cover one or more of such Options, then the Options not covered by an Acceleration Agreement will vest in accordance with the terms of this Section 7(k) upon a Change of Control. 
 (l) Restrictions on Transfer. No shares of Common Stock issued upon exercise of an Option may be sold or otherwise transferred
or disposed of by the Optionee during the one hundred eighty (180) day period following the effective date of a registration statement covering securities of the Company filed under the Securities Act of 1933 (unless such restriction is
consented to or waived by the managing underwriter). Subject to the preceding sentence, any Common Stock issued upon exercise of an Option shall be subject to such rights of repurchase, rights of first refusal and other transfer restrictions as the
Board may determine. Such restrictions shall apply in addition to any restrictions that may apply to holders of Common Stock generally. Any right to repurchase an Optionee’s Common Stock at the original Exercise Price upon termination of the
Optionee’s Service shall lapse at least as rapidly as the schedule set forth in subsection (e) above. Any such repurchase right may be exercised only within ninety (90) days after the termination of the Optionee’s Service for
cash or for cancellation of indebtedness incurred in purchasing the Common Stock. 
 8. Forms of Payment.
 (a) General Rule. The entire Purchase Price or Exercise Price shall be payable in cash or cash equivalents acceptable to the
Company at the time of exercise or purchase, except as otherwise provided in this Section 8. 
  

 -7- 

 (b) Surrender of Stock. To the extent that a Stock Option Agreement or Stock
Option Agreement so provides, payment may be made all or in part with Common Stock that has already been owned by the Optionee or the Optionee’s representative for any time period specified by the Board and that are surrendered to the Company
in good form for transfer. Such Common Stock shall be valued at Fair Market Value on the date when the new Common Stock is purchased under the Plan. 
 (c) Promissory Notes. To the extent that a Stock Option Agreement or Stock Option Agreement so provides, payment may be made all or in part with a full recourse promissory note executed by the Optionee.
The interest rate and other terms and conditions of such note shall be determined by the Board. The Board may require that the Optionee pledge his or her Common Stock to the Company for the purpose of securing the payment of such note. In no event
shall the stock certificate(s) representing such Common Stock be released to the Optionee until such note is paid in full, unless otherwise provided in the Stock Option Agreement or Stock Option Agreement. 
 (d) Cashless Exercise. To the extent that a Stock Option Agreement so provides and a public market for the Common Stock
exists, payment may be made all or in part by delivery (on a form acceptable to the Board) of an irrevocable direction to a securities broker to sell Common Stock and to deliver all or part of the sale proceeds to the Company in payment of the
aggregate Exercise Price. 
 9. Adjustments Upon Changes in Common Stock.
 (a) General. In the event of a subdivision of the outstanding Common Stock, a declaration of a dividend payable in Common
Stock, a declaration of an extraordinary dividend payable in a form other than Common Stock in an amount that has a material effect on the value of Common Stock, a combination or consolidation of the outstanding Common Stock into a lesser number of
shares, a recapitalization, a reclassification or a similar occurrence, the Board shall make appropriate adjustments in one or more of (i) the number of shares of Common Stock available for future grants of Options or other rights to acquire
Common Stock under Section 5, (ii) the number of shares of Common Stock covered by each outstanding Option or other right to acquire Common Stock or (iii) the Exercise Price of each outstanding Option or the Purchase Price of each
other right to acquire Common Stock. 
 (b) Mergers and Consolidations. In the event that the Company is a party
to a merger or consolidation, outstanding Options or other rights to acquire Common Stock shall be subject to the agreement of merger or reorganization. Such agreement, without an Optionee’s consent, may provide for: 
 (i) The continuation of such outstanding Options by the Company (if the Company is the surviving corporation); 
 (ii) The assumption of the Plan and such outstanding Options by the surviving corporation or its parent; 
  

 -8- 

 (iii) The substitution by the surviving corporation or its parent of options with
substantially the same terms for such outstanding Options; or 
 (iv) The cancellation of such outstanding Options to the
extent not exercised before the merger or consolidation. 
 (c) Reservation of Rights. Except as provided in this
Section 9, an Optionee or Offeree shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend, or (iii) any other increase or decrease in the number of
shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of
shares of Common Stock subject to an Option, or the number of shares subject to any other right to acquire Common Stock and/or the Exercise Price or Purchase Price. The grant of an Option or other right to acquire Common Stock pursuant to the Plan
shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any
part of its business or assets. 
 10. Legal Requirements.
 (a) Restrictions on Issuance. Common Stock shall not be issued under the Plan unless the issuance and delivery of such Common
Stock complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and
the regulations of any stock exchange on which the Company’s securities may then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency that the Company determines is necessary or advisable.

 (b) Financial Reports. To the extent required to comply with the California Corporations Code or the
regulations thereunder, not less often than annually the Company shall furnish to Optionees and Offerees Company summary financial information including a balance sheet regarding the Company’s financial condition and results of operations,
unless such Optionees or Offerees have duties with the Company that assure them access to equivalent information. Such financial statements need not be audited. 
 11. No Employment Rights. No provision of the Plan, nor any Option granted or other right to acquire Common Stock granted under the Plan, shall be construed to give any person any right to become, to be
treated as, or to remain an Employee, Consultant or Non-Employee Director. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason. 
  

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 12. Duration and Amendments.
 (a) Term of the Plan. The Plan, as set forth herein, shall become effective on the date of its adoption by the Board, subject
to the approval of the Company’s Shareholders. In the event that the Shareholders fail to approve the Plan within twelve (12) months after its adoption by the Board, any Option grants or other right to acquire Common Stock already made
shall be null and void, and no additional Option grants or other right to acquire Common Stock shall be made after such date. The Plan shall terminate automatically ten (10) years after its adoption by the Board and may be terminated on any
earlier date pursuant to subsection (b) below. 
 (b) Right to Amend or Terminate the Plan. The Board
may amend or terminate the Plan at any time. Rights under any Option granted or other right to acquire Common Stock granted before amendment of the Plan shall not be materially altered, or impaired adversely, by such amendment, except with consent
of the Optionee or Offeree. An amendment of the Plan shall be subject to the approval of the Company’s Shareholders only to the extent required by applicable laws, regulations or rules. 
 (c) Effect of Amendment or Termination. No Common Stock shall be issued or sold under the Plan after the termination thereof,
except upon exercise of an Option granted prior to such termination. The termination of the Plan, or any amendment thereof, shall not affect any Common Stock previously issued or Option previously granted under the Plan. 
 13. Stock Purchase Rights.
 (a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of the Plan. After the Board determines that it will
offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid,
and the time within which such person must accept such offer, which shall in no event exceed thirty (30) days from the date upon which the Board makes the determination to grant the Stock Purchase Right. The offer shall be accepted by execution
of a Restricted Stock Option Agreement in the form determined by the Administrator. Shares purchased pursuant to the grant of a Stock Purchase Right shall be referred to herein as “Restricted Stock.” 
 (b) Repurchase Option. Unless the Board determines otherwise, the Restricted Stock Option Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s employment or engagement with the Company for any reason (including death or disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Option Agreement shall be the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at such rate as the Board may determine, but
in no case at a rate of less than twenty percent (20%) per year over five (5) years from the date of purchase. 
 (c) Other Provisions. The Restricted Stock Option Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Board in its sole discretion. In addition, the
provisions of Restricted Stock Option Agreements need not be the same with respect to each purchaser. 
  

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 (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised, the
purchaser shall have rights equivalent to those of a shareholder and shall be a shareholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment shall be made for a dividend or
other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 9 of the Plan. 
 (e) Change of Control. Upon a Change of Control, any Restricted Stock acquired pursuant to a Stock Purchase Right will vest and have any Company repurchase option lapse as to 25% of such Restricted Stock
(but in no event shall the number of Shares which so vests exceed the number of Shares issued pursuant to such Stock Purchase Right). Notwithstanding the foregoing, this Section 13(e) will not apply, and no vesting will occur as the result of
this Section 13(e), to Restricted Stock held by an Offeree if such Offeree has an Acceleration Agreement, which agreement may provide for more or less acceleration of vesting than provided under this Section 13(e). In the event an Offeree
has been awarded one or more Stock Purchase Rights under this Section 13 and such Offeree’s Acceleration Agreements, if any, do not cover one or more of such awards, then the Stock Purchase Rights (or the Restricted Stock acquired pursuant
thereto) not covered by an Acceleration Agreement will vest in accordance with the terms of this Section 13(e) upon a Change of Control. 
  

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