Document:

EX-10.1

 Exhibit 10.1 

CHIASMA, INC. 
 THE
COMPANY’S ISRAELI STOCK OPTION PLAN - 2003 
  

	1.	Definitions 

 As used herein the following terms shall have the
meanings hereinafter set forth, unless the context clearly indicates to the contrary. 
  

	1.1	“Affiliated Company” - means any “employing company” within the meaning of Section 102(a) of the Ordinance. 

 

	1.2	“Applicable Laws” - means the requirements relating to the administration of stock option plans under Israeli law, U.S. state corporate laws, U.S. federal and state securities laws, any stock exchange
or quotation system on which the Common Stock is listed or quoted and the applicable laws, rules and regulations of any other country or jurisdiction where Options are granted under the Plan. 

 

	1.3	“Approved 102 Options” - an Option granted pursuant to Section 102(b) of the Ordinance and held in trust by a Trustee. 

 

	1.4	“Board” - means the Board of Directors of the Company. 

  

	1.5	“Cause” - (a) conviction of any felony involving moral turpitude or affecting the Company or any Affiliated Company; (b) embezzlement of funds of the Company or any Affiliated Company;
(c) any breach of the Grantee’s fiduciary duties or duties of care towards the Company or any Affiliated Company (including, without limitation, disclosure of confidential information of the Company or any Affiliated Company or breach of a
non-competition undertaking); (d) any conduct in bad faith reasonably determined by the Board to be materially detrimental to the Company or, with respect to any Affiliated Company, reasonable determined by the Board of Directors of such
Affiliated Company; or (e) any other event classified under the relevant agreement between the Grantee and the Company or the Affiliated Company, as applicable, as a “cause” for termination or by other language of similar substance.

  

	1.6	“Company” - Chiasma, Inc., a Delaware corporation. 

  

	1.7	“Date of Grant” - as defined in Section 6.4 hereinbelow. 

  

	1.8	“Date of Start” - as defined in Section 7.2 hereinbelow. 

  

	1.9	“Election” - the election by the Company, with respect to granting of Approved 102 Options, of either one of the following tax tracks — “Capital Gains Tax Track” or “Ordinary Income
Tax Track”, which election shall be in accordance with and bind the Company as provided in Section 102(g) of the Ordinance. 

  

	1.10	“Employee” - any employee of the Company or an Affiliated Company, including an office holder or a director, but excluding a Holder of Control in such company or a person who as a result of the granting
of the Options pursuant to this Plan shall become a Holder of Control in such company. 

  

	1.11	“Exercise Notice” - as defined in Section 7.6 hereinbelow. 

  

	1.12	“Exercise Period” - as defined in Section 7.4 hereinbelow. 

  

	1.13	“Exercise Price” - the price to be paid for the exercise of each Option. 

  

	1.14	“Exercised Shares” - the Shares that are issued upon the exercise of the Options. 

  

	1.15	“Expiration Date” - as defined in Section 7.3 hereinbelow. 

  

	1.16	“Grantee” - an Employee, a Holder of Control, a consultant or other services providers of the Company or an Affiliated Company, to whom Options are granted. 

	1.17	“Holder of Control” - as defined in Section 32(9) to the Ordinance. 

  

	1.18	“IPO” - an initial public offering of securities of the Company in a recognized stock exchange market or the listing thereof on NASDAQ or another recognized automated quotation system.

  

	1.19	“Merger Transaction” - as defined in Section 7.5 hereinbelow. 

  

	1.20	“Option(s)” - an option or options granted within the framework of this Plan, each of which imparts the right to purchase one Share. 

 

	1.21	“3(i) Option” - an Option granted pursuant to section 3(i) of the Ordinance. 

  

	1.22	“Ordinance” - the Israeli Income Tax Ordinance [New Version], 1961, and the rules and regulations promulgated thereunder as are in effect from time to time and any similar successor rules and
regulations promulgated. 

  

	1.23	“Plan” - this Company’s Israeli Stock Option Plan - 2003, as may be amended from time to time as set forth hereinbelow. 

 

	1.24	“Restricted Period” - as defined in Section 9.1 hereinbelow. 

  

	1.25	“Section 102” - Section 102 of the Ordinance and the rules and regulations promulgated thereunder as are in effect from time to time and any similar successor rules and regulations promulgated.

  

	1.26	“Service” - means a Grantee’s employment or service with the Company or an Affiliated Company, whether in the capacity of an Employee or otherwise. A Grantee’s Service shall not be deemed to
have terminated merely because of a change in the capacity in which the Grantee renders Service to the Company or an Affiliated Company or a change in the identity the Company or the Affiliated Company for which the Grantee renders such Service,
provided that there is no interruption or termination of the Grantee’s Service. Furthermore, a Grantee’s Service with the Company or an Affiliated Company shall not be deemed to have terminated if the Grantee takes any military leave, sick
leave, or other bona fide leave of absence approved by the Company or the Affiliated Company by which the Grantee is employed or engaged, as applicable; provided, however, that if any such leave exceeds ninety (90) days, on the ninety-first
(91st) day of such leave the Grantee’s Service shall be deemed to have terminated unless the Grantee’s right to return to Service with the Company or an Affiliated Company is secured by statute or contract. Notwithstanding the
foregoing, unless otherwise designated by the Company or an Affiliated Company, as the case may be, or required by law, a leave of absence shall not be treated as Service for purposes of determining vesting under the vesting schedule of the Options.
The Grantee’s Service shall be deemed to have terminated either upon an actual termination of Service or upon the corporation for which the Grantee performs Service ceasing to be an Affiliated Company. Subject to the foregoing, the Company, in
its discretion, shall determine whether the Grantee’s Service has terminated and the effective date of such termination. 

  

	1.27	“Share(s)” - Share(s) of Common Stock, US $ 0.01 par value each, of the Company, to which, subject to the provisions herein, are attached the rights specified in the Company’s Certificate of
Incorporation and By-Laws. 

  

	1.28	“Trustee” - the trustee designated by the Company for the purposes of this Plan and approved by the applicable tax assessor. 

 

	1.29	“Unapproved 102 Option” - an Option granted pursuant to Section 102(c) of the Ordinance and not held in trust by a Trustee. 

 

	1.30	“Vested Option(s)” - that portion of the Options which the Grantee is entitled to exercise in accordance with the provisions of Section 7.2 of the Plan or the provisions of the option agreement
executed with such Grantee. 

  
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	2.	The Plan 

  

	2.1	Purpose 

 The purpose and intent of the Plan is to advance the interests of the Company
by affording to selected Employees, Holders of Control, consultants and other services providers of the Company or an Affiliated Company an opportunity to acquire a proprietary interest in the Company or to increase their proprietary interest
therein, as applicable, by the grant in favor of such Employees, Holders of Control, consultants and other services providers, of Options under the terms set forth herein, and thus, to provide an additional incentive to such Employees, Holders of
Control, consultants and other services providers, to be employed and/or engaged by and remain in the employ of and/or engagement with the Company or the Affiliated Company, as the case may be, to encourage the sense of proprietorship of such
employees, Holders of Control, consultants and other services providers, and to stimulate then-active interest in the success of the Company and the Affiliated Company in which he/she is employed and/or engaged. 

 

	2.2	Framework 

 Options may be granted under this Plan in one of the following ways:
(i) Approved 102 Options - to Employees through a Trustee, in accordance with those provisions of Section 102 applicable to the granting of Options through a Trustee, in such tax track as determined in accordance with the Election of the
Company; or (ii) Unapproved 102 Options - to Employees, not through a Trustee; or (iii) 3(i) Options - to Grantees who are not Employees, not through a Trustee. 
  

	2.3	Effective Date and Term 

 The Plan shall become effective as of the day it was adapted by
the Board, and shall continue in effect until the earlier of (i) its termination by the Board; or (ii) the date on which all of the Shares available for issuance under the Plan have been issued and all restrictions on such shares under the
terms of the Plan and the agreements evidencing Options granted under the Plan have lapsed; provided however, that in any event no Options shall be granted under the Plan following the lapse often (10) years from the date the Plan is adopted by
the Board. Without derogating from the authorities of the Board herein, the Company shall obtain the approval of the Company’s shareholders for the adoption of this Plan or for any amendment to this Plan, if shareholders’ approval is
necessary or desirable to comply with any Applicable Laws. 
  

	3.	Administration 

  

	3.1	The Plan shall be administered by the Board or by a committee appointed by the Board. Unless the powers of such committee have been specifically limited, the committee shall have all of the powers of the Board granted
herein, including, without limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by Applicable Laws (in which event of such limitations, such committee may make
recommendations to the Board). Subject to the above, the term “Board” whenever used herein, shall mean the Board or such appointed committee, as applicable. 

 

	3.2	The Board shall have sole and full discretion and authority, without the need for shareholders’ approval, unless such approval is required to comply with Applicable Laws, to administer the Plan and all actions
thereunder or related thereto, including, without limitation, to perform any and all of the following, from time to time and at any time: 

  

	 	3.2.1	To designate Grantees; 

  

	 	3.2.2	To determine the tax-track of the Options to be issued (Approved 102 Options, Unapproved 102 Options, 3(i) Options); 

  

	 	3.2.3	To make the Election; 

  

	 	3.2.4	To determine the terms of the option agreements to be signed between the Company and the Grantee (which need not be identical), including, without limitation the number of Options to be granted in favor of each Grantee,
the Exercise Price thereof, the time when an Option can be exercised, and the conditions under which such Options may be exercised; 

  

	 	3.2.5	To interpret the Plan; 

  
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	 	3.2.6	To make all other determinations deemed necessary or advisable for the administration of the Plan; 

  

	 	3.2.7	To prescribe, amend, modify (including by adding new terms and rules), and to rescind and terminate the Plan or any of its terms; and 

 

	 	3.2.8	To prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt supplements to, or alternative versions of, the Plan, including, without limitation, as the Board deems necessary or
desirable to comply with the laws of, or to accommodate the tax policy or custom of, foreign jurisdictions whose citizens may be granted Options. 

  

	 	3.2.9	to modify and amend, including decreasing, the Exercise Price of the Options, including following their grant; 

  

	 	3.2.10	to re-price Options; 

  

	 	3.2.11	to grant to the holder of an outstanding Option, in exchange for the surrender and cancellation of such Option, a new Option having a purchase price equal to, lower than or higher than the Exercise Price provided in the
Option so surrendered and canceled, and containing suck other terms and conditions as the Board may prescribe in accordance with the provisions of the Plan; 

  

	 	3.2.12	to determine the fair market value of the Shares, and the mechanism of such determination. 

  

	3.3	Unless otherwise determined by the Board, any amendment or modification of the Plan shall be deemed to have been included, ab initio, in the Plan and shall have full effect over the relationship between the Company and
the Grantee. 

  

	3.4	Termination of the Plan shall not affect the Board’s ability to exercise its powers with respect to Options granted under the Plan prior to the date of such termination. 

 

	3.5	In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of the Company or any Affiliated Company, members of the Board and any officers or employees of the
Company or an Affiliated Company to whom authority to act for the Board or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection
with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of diem may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted
hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days
after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 

 

	4.	Eligibility 

 The persons eligible for participation in the Plan as Grantees may
include Employees, Holders of Control, consultants and other services providers of the Company or any Affiliated Company. In determining the persons in favor of whom Options shall be granted, the number of Options to be granted and the terms
thereof, the Board may take into account the nature of the services rendered by such person, his/her present and future potential contribution to the Company and the Affiliated Company in which he/she is employed and/or engaged, and such other
factors as the Board in its discretion shall deem relevant. 

  
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	5.	Reserved Shares 

 The Company has reserved
(            ) authorized but unissued Shares for the purpose of the Plan, subject to adjustment as set forth in Section 14 hereinbelow. 

Any of such Shares which may remain unissued and which are not subject to outstanding Options at the termination of the Plan shah cease to be
reserved for the purpose of the Plan, but until termination of the Plan the Company shall at all times reserve sufficient number of Shares to meet the requirements of the Plan. Should any Option for any reason expire or be canceled prior to its
exercise or relinquishment in full, the Shares subject to such Option may again be subjected lo an Option under the Plan. 
  

	6.	Grant of Options and Issuance of Shares in Trust 

  

	6.1	The Options shall be granted at no cost. 

  

	6.2	Each Option granted pursuant to the Plan shall be evidenced by a written executed option agreement or other written instrument determined by the Board, which shall set forth the terms and conditions with respect to the
Options, as the Board may deem necessary. 

  

	6.3	The Approved 102 Options granted hereunder shall be granted to the Trustee and the Exercised Shares issued pursuant to the exercise of the Approved 102 Options shall be issued to the Trustee, and both shall be
registered in the name of the Trustee, who shall hold the Approved 102 Options and such Exercised Shares in trust until such time when they are released, as provided in Section 9 hereunder. 

 

	6.4	In addition to the execution of the option agreement, all Grantees shall be required to execute all other documents required by the Company, whether before or after the grant of the Options (including without
derogating, any customary documents and undertakings towards the Trustee and the tax authorities). 

 Unless otherwise
determined by the Board, which determination shall not require shareholders’ approval, unless such approval is required to comply with Applicable Laws, the granting of Options pursuant to the Plan shall be subject to the signing of all required
documents by the Grantee, and shall be deemed to occur on the date resolved by the Board and stated in the Grantee’s option agreement (the “Date of Grant”). 

 

	7.	Terms of Options 

 Option agreements between the Company and a Grantee will be in
such form approved by the Board, which may be a general form or a specific form with respect to a certain Grantee. 
 Unless otherwise
determined by the Board, which determination shall not require shareholders’ approval, unless such approval is required to comply with Applicable Laws, and provided accordingly in the option agreement, the option agreement shall include, by
appropriate language, the number of options granted and the substance of all of the following provisions: 
  

	7.1	Exercise Price: 

 The Exercise Price for each Grantee shall be determined by the Board,
which determination shall not require shareholders’ approval, unless such approval is required to comply with Applicable Laws, and shall be specified in the option agreement; provided however, that the Exercise Price shall not be less than the
par value of the Shares. 
  

	7.2	Vesting: 

 Unless otherwise determined by the Board, which determination shall not
require shareholders’ approval, unless such approval is required to comply with Applicable Laws, with respect to any specific Grantee, and provided accordingly in the option agreement, the Options shall vest (become exercisable) according to
the following 4 (four) year vesting schedule: 
  

			
	Period of Grantee’s Continuous Service from the Date of Start:		Portion of Total Number of Options that is Vested and Excercisable
	 	 
	Upon the lapse of full 12 (twelve) months of continuous Service,		1/4
	 	 
	Upon the lapse of each full additional month of the Grantee’s continuous Service thereafter, until all the
Options are vested, an additional		1/48

  
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 For the purposes herein, the “Date of Start” shall mean the Date of Grant,
unless otherwise determined by the Board, which determination shall not require shareholders’ approval, unless such approval is required to comply with Applicable Laws, and provided accordingly in the option agreement. 

 

	7.3	Expiration Date: 

 Options not exercised, shall expire and terminate and become null and
void, forthwith upon 10 (ten) years from the Date of Grant, unless expired prior to that date pursuant to Sections 7.5 or 10 below. Such date(s) at which an Option expires and terminates shall be hereinafter referred to as the “Expiration
Date”. 
  

	7.4	Exercise Period: 

 Each Option shall be exercisable after it becomes vested and until the
Expiration Date of such Option (the “Exercise Period”) 
  

	7.5	Effect of A Merger: 

 In the event of a merger of the Company with or into another
corporation, or the sale of all or substantially all the assets or the shares of the Company (such merger or sale: the “Merger Transaction”), the surviving or the acquiring entity, as the case may be, or their respective parent
company or subsidiary (the “Successor Entity”), may either assume the Company’s rights and obligations under outstanding Options or substitute the outstanding Options with substantially equivalent options exercisable to shares of the
Successor Entity’s shares. 
 For purposes of this Section 7.5, the outstanding Options shall be deemed assumed or substituted by
the Successor Entity if, following the consummation of the Merger Transaction, the outstanding Options confer the right to receive, for each share subject to any outstanding Option immediately prior to the consummation of the Merger Transaction, the
same consideration (whether shares, cash or other securities or property) lo which an existing holder of a Share on the effective date of consummation of the Merger Transaction was entitled; provided however, that if the consideration to which such
existing holder is entitled is not solely securities of the Successor Entity, then the Board may determine, with the consent of the Successor Entity, that the consideration to be received by the Grantees for their outstanding Options, will be solely
securities of the Successor Entity equal in their market value to the per share consideration received by the holders of shares in the Merger Transaction. 

In the event that the Successor Entity does not assume or substitute all of the outstanding Options of a Grantee, then the Grantee shall have a
period of 15 days, from the date designated by the Company in a written notice given to the Grantee, to exercise the Vested Options of the Grantee. All Options, whether vested or not, which are neither assumed or substituted by the Successor Entity,
nor exercised by the end of the said 15 day period, shall expire and terminate effective as of the date of the consummation of the Merger Transaction, shall become null and void and shall not entitle the Grantee to any right in or towards the
Company or the Successor Entity. 
  

	7.6	Exercise Notice and Payment: 

 Vested Options may be exercised at one time or from time
to time during the Exercise Period, by giving a written notice of exercise (the “Exercise Notice”) to the Company (and in the case of Approved 102 Options, with a copy to the Trustee), at their principal offices, in accordance with
the following terms: 
  

	 	(a)	The Exercise Notice must be signed by the Grantee and must be delivered to the Company (and in the case of Approved 102 Options, with a copy to the Trustee), prior to the termination of the Options, by certified or
registered mail—return receipt requested, with a copy delivered to the Chief Financial Officer (or such outer authorized representative) of the Affiliated Company with which the Grantee is employed or engaged, if applicable. 

  
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	 	(b)	The Exercise Notice will specify the number of Vested Options being exercised. 

  

	 	(c)	The Exercise Notice will be accompanied by payment in full of the Exercise Price for the exercised Options and by such other representations and agreements as required by the Company with respect to the Grantee’s
investment intent regarding the Exercised Shares. Payment will be made by personal check or cashier’s check payable to the -order of the Company, provided however, that in case of payment by personal check (and not by cashier’s check), the
Options shall not be deemed exercised, and the Company shall not issue the Exercised Shares in respect thereof, until the personal check shall have been fully and irrevocably honored by the bank on which it was drawn. 

 

	7.7	Conditions of Issuance 

 The Company shall not issue the Shares and the Options shall not
be deemed exercised until the Company has been provided with the tax authorities’ confirmation which either (i) waives or defers the tax withholding obligation; or (ii) confirms the payment of the tax with respect to such exercise; or
(iii) confirms the conclusion of another arrangement with the Grantee regarding the tax amounts, if any, that are to be withheld by the Company or any Affiliated Company under law with respect to such exercise, and which is satisfactory to the
Company, and if such arrangement requires the approval of the Trustee, is also satisfactory to the Trustee. 
 Furthermore, notwithstanding
any other provision of the Plan, the Company shall have no obligation to issue or deliver Shares under the Plan unless the exercise of the Option and the issuance and delivery of such Shares complies with Applicable Laws and may be further subject
to the approval of counsel for the Company with respect to such compliance. The Company may further require the Grantee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with Applicable Laws. 

As a condition to the exercise of an Option, the Company may require, inter alia: (i) the Grantee 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 necessary or desirable;
(ii) the Grantee to make such other representations, warranties and covenants as may be reasonably required to comply with Applicable Laws; (iii) a legend on the Shares indicating that such Shares may not be pledged, sold or otherwise
transferred unless an opinion of counsel is provided (and agreed to by counsel to the Company) slating that such transfer is not in violation of any applicable law or regulation, may be stamped on the stock certificates to ensure exemption from
registration; and/or (iv) the Grantee to execute and deliver to the Company an agreement as may be in use by the Company at such time that describes certain terms and conditions applicable to the Shares. 

 

	8.	Transferability 

  

	8.1	Other than by will or laws of descent, Options or any of the rights in connection therewith shall not be assignable, transferable, made subject to attachment, lien or encumbrance of any kind, and the Grantee shall not
be entitled with regard to the same, and shall not grant with regard thereto, any power of attorney or transfer deed, whether valid immediately or in the future. 

  

	8.2	Exercised Shares may be subject to a right of first refusal, one or more repurchase options, a market stand-off/lock up period, or other conditions and restrictions as may be included in the Company’s Certificate
of Incorporation and/or By-Laws and/or option agreement, upon determination of the Board to its discretion at the time the Options are granted, provided however, that if the Options are subject to a right of first refusal or a repurchase option,
then for as long as the Company is not publicly traded, a Grantee shall not transfer any Exercised Shares, prior to the lapse of six (6) months and one day from the date on which he exercised the Options. The Company shall have the right to
assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. Upon request by the Company, each Grantee shall execute any agreement evidencing such
transfer restrictions prior to the receipt of Exercised Shares hereunder, and shall promptly present to the Company any and all certificates representing Exercised Shares for the placement on such certificates of appropriate legends evidencing any
such transfer restrictions. 

  
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 The Grantee may transfer or sell only Exercised Shares, or any part thereof, to any third party,
provided that all of the following conditions have been met prior to such transfer: (i) the transfer is made in accordance with and subject to the provisions of the Company’s Certificate of Incorporation and/or By-Laws (including, without
limitation, any rights of first refusal provided therein, if any); and (ii) the transferee confirmed in writing its acceptance of the terms and conditions of the Plan and the option agreement with respect to the Exercised Shares being
transferred, instead of the Grantee, to the satisfaction of the Board (including the execution of the proxy referred to in Section 11.2 hereinbelow); and (iii) the actual payment of all taxes required to be paid upon such sale and transfer
of the Exercised Shares have been made to the tax assessor, and the Trustee (if applicable) received confirmation from the tax assessor that all taxes required to be paid upon such sale and transfer have been paid. 

Any transfer that is not made in accordance with the Plan or the option agreement shall be null and void. 

 

	8.3	No transfer of an Exercised Share or Option by the Grantee by will or by the laws of descent shall be effective against the Company, unless the Company shall have been furnished with written notice thereof, and with an
authenticated copy of the will and/or such other evidence as the Board may deem necessary to establish the validity of the transfer, and with the acceptance by the transferee or transferees of the terms and conditions of the Plan and the option
agreement signed with the Grantee and, if applicable, Section 102. 

  

	8.4	Notwithstanding anything to the contrary herein, in the event that prior to an IPO, holders holding in the aggregate no less than the majority of the Company’s then issued shares of capital stock, wish to sell
their shares to a third parry, or in the event of a transaction in which one stockholder or an affiliate of one of the stockholders, purchases a majority of the Company’s then issued shares of capital stock from other stockholders of the
Company (not including shares which were issued under an employee share option plan), then, if so requested by the purchaser, the Grantee shall be obligated to join such sale and to sell all of his/her shares in the Company (and if requested, also
his/her Vested Options—to the extent not expired), all under the same terms under which the other shares are being sold (provided that with respect to Vested Options, the Exercise Price shall be deducted from the purchase price paid for the
shares in such transaction) and in accordance with the provisions of the Certificate of Incorporation and/or By-Laws of the Company. 

  

	9.	Release of Approved 102 Options 

  

	9.1	Approved 102 Options and Exercised Shares issued pursuant to the exercise thereof, and all rights attached thereto (including bonus shares), shall be held by the Trustee for such period of time as required by the
provisions of Section 102 applicable to options granted through a Trustee in the tax track applicable to the Options, as per the Election (the “Restricted Period”). 

 

	9.2	The Grantee shall not be entitled to receive the Approved 102 Options, the Exercised Shares issued pursuant to the exercise thereof or any right attached thereto (including bonus shares), or to request the transfer
thereof to any third party, before the lapse of the Restricted Period. 

  

	9.3	The Trustee may release only Exercised Shares (and not Options); Exercised Shares issued pursuant to the exercise of Approved 102 Options and all rights attached thereto (including bonus shares), shall not be released
before the end of the Restricted Period. Subject to the aforesaid, the Trustee may, pursuant to the written request of the Grantee, release and transfer the Exercised Shares to the Grantee, or to any third party lo whom the Grantee wishes to sell
the Exercised Shares, as indicated in the Grantee’s written notice, provided however that the Trustee shall not release, transfer or do any other transaction or action with respect to the Exercised Shares before both of the following conditions
have been fulfilled: (i) payment has been remitted to the tax authorities of all taxes required to be paid upon the release and transfer of the Exercised Shares, and confirmation of such payment has been received by the Trustee (except if the
transfer is by will or laws of descent); and (ii) the Trustee has received written confirmation issued by the Company or the applicable. Affiliated Company to the Trustee, to the effect that all requirements for said release and transfer have
been fulfilled according to the terms of the Company’s Certificate of Incorporation and/or By-Laws, the Plan and the option agreement. 

  
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	10.	Termination of Options 

  

	10.1	Notwithstanding anything to the contrary, any Option granted in favor of any Grantee but not exercised by such Grantee within the Exercise Period and in strict accordance with the terms of the Plan and the option
agreement, shall, upon the lapse of the Exercise Period, immediately expire and terminate, become null and void, and shall not entitle the Grantee to any right in, or towards the Company or any Affiliated Company in connection with the same, and all
interests and rights of the Grantee, in and to the same, shall expire. 

  

	10.2	Notwithstanding anything to the contrary herein, upon the termination of a Grantee’s Service, for any reason whatsoever, any Options granted in favor of such Grantee which are not Vested Options, shall immediately
expire and terminate, become null and void, and shall not entitle the Grantee to any right in, or towards the Company or any Affiliated Company m connection with the same, and all interests and rights of the Grantee, in and to the same, shall
expire. 

  

	10.3	Notwithstanding anything to the contrary herein, upon the termination of a Grantee’s Service for “Cause” all of such Grantee’s Vested Options shall also immediately expire and terminate, become null
and void, and shall not entitle the Grantee to any right in, or towards the Company or any Affiliated Company in connection with the same, and all interests and rights of the Grantee, in and to the same, shall expire. 

 

	10.4	Notwithstanding anything to the contrary herein, following termination of Grantee’s Service, not for “Cause”, the Grantee may exercise Options which are Vested Options at the date of such termination,
subject to the following terms (unless otherwise determined by the Board, which determination shall not require shareholders’ approval, unless such approval is required to comply with Applicable Laws), and subject to the Expiration Date:

  

	 	10.4.1	the Vested Options may be exercised within a period of 3 (three) months from the date of such termination; and 

  

	 	10.4.2	if such termination is the result of death or disability of the Grantee, the Vested Options may be exercised within a period of 12 (twelve) months from the date of such termination; 

 

	10.5	Notwithstanding anything to the contrary herein, upon the issuance of a court order declaring the bankruptcy of a Grantee, or the appointment of a receiver or a provisional receiver for a Grantee over all of his assets,
or any material part thereof, or upon making a general assignment for the benefit of his creditors, any Options issued in favor of such Grantee which are not Vested Options shall immediately expire and terminate, become null and void and shall not
entitle the Grantee, his receiver,-successors, creditors or assignees, to any right in, or towards the Company in connection with the same, and all interests and rights of the Grantee, his receiver, successors, creditors or assignees, in and to the
same, shall expire. 

  

	10.6	Without derogating from the foregoing, an Employee for whom Unapproved 102 Options were granted must sign, upon termination of his/her employment, a guarantee in the form required by the Company, to secure payment of
all taxes which become due upon the future transfer of his/her Exercised Shares which may be issued following the exercise of his/her outstanding Unapproved 102 Options. 

 

	11.	Rights as Shareholder and Voting Rights 

  

	11.1	It is hereby clarified that a Grantee shall not, by virtue of the Plan, the option agreement or any Option granted in his/her favor thereunder, have any of the rights of a shareholder with respect to any Shares
represented by the Options, until the Options have been exercised and the Exercised Shares have been issued in the Grantee’s name. 

Furthermore, with respect to Exercised Shares issued following the exercise of Approved 102 Options, as long as such Exercise Shares are
registered in the name of the Trustee, the Company shall consider only the Trustee as the owner of such shares for all purposes whatsoever (including without limitation, for the purpose of delivering notices), and except as specifically designated
otherwise herein (such as with respect to the right to receive dividends as provided in Section 12.1 hereafter), the Grantee shall not have any rights by virtue of such Exercised Shares until such Exercised Shares shall have been transferred to
the Grantee by registering them in the Grantee’s name. 

  
 9 

	11.2	Prior to the closing of an IPO, the Board shall be entitled to require, as a condition to the exercise of any Option, that the Grantee (and the Trustee, if the Trustee wall be the holder of the Exercised Shares) sign
and deliver to such person as may be designated by the Board (the “Nominee”) an irrevocable proxy, in a form to be provided by the Company, appointing the Nominee as the sole person entitled to exercise the voting rights conferred
by such shares. The Nominee shall not exercise the voting rights conferred by the Exercised Shares held by him or with respect to which the Nominee has been given an irrevocable proxy as aforesaid, in any way whatsoever, and shall not issue a proxy
to any person or entity to vote such shares, unless otherwise instructed by the Board, and in accordance with such instructions. The Nominee shall be indemnified and held harmless by the Company, to the extent permitted by applicable law, against
any cost or expense (including counsel fees) reasonably incurred by rum/it, or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with the voting
of the aforesaid proxy unless arising out of such Nominee’s own fraud or bad faith. Such indemnification shall be in addition to any rights of indemnification the Nominee(s) may have as a director or otherwise under the Company’s
Certificate of Incorporation and/or By-Laws, any agreement, any vote of shareholders or disinterested directors, insurance policy or otherwise. Without derogating from the above, with respect to Exercised Shares of Approved 102 Options, such Shares
shall be voted in accordance with the provisions of Section 102. 

  

	11.3	Notwithstanding anything to the contrary herein or in the Company’s Certificate of Incorporation and/or By-Laws, none of the Grantees shall have (and they hereby waive the right to have), any pre-emptive rights to
purchase, along with the other shareholders in the Company, a pro rata portion of any securities proposed to be offered by the Company prior to the offering thereof to any third party and any rights of first refusal to purchase any securities of the
Company offered by the other shareholders of the Company. 

  

	12.	Dividends and Bonus Shares 

  

	12.1	Cash dividends paid or distributed, if any, with respect to the Exercised Shares shall be remitted directly to the Grantee who is entitled to the Exercised Shares for which the dividends are being paid or distributed,
subject to any applicable taxation on such distribution of dividend, and the withholding thereof, and when applicable, subject to the provisions of Section 102. 

 

	12.2	All bonus shares to be issued by the Company, if any, with regard to the Exercised Shares held by the Trustee, shall be registered in the name of the Trustee and all provisions applying to the Exercised Shares, shall
apply to the bonus shares, mutatis mutandis. Said bonus shares shall be subject to the Restricted Period applicable to the Exercised Shares with respect to which they were issued. 

 

	13.	Liquidation 

 If the Company is liquidated or dissolved while unexercised Options
remain outstanding under the Plan, then the Board in its own discretion may determine that all or part of such outstanding Options may be exercised in full by the Grantees as of immediately prior to the effective date of any such liquidation or
dissolution of the Company, without regard to the vesting terms thereof. 
  

	14.	Adjustments 

 The number of Shares to which each outstanding Option is
exercisable, together with those Shares otherwise reserved for the purposes of the Plan for Options not yet exercised as provided under Section 5 above, shall be proportionately adjusted for any increase or decrease in the number of Shares
resulting from a stock split, reverse stock split, combination or reclassification of the Shares, as well as for any distribution of bonus shares. Such adjustment shall be made by the Board, whose determination in that respect shall be final,
binding and conclusive. 
  

	15.	Rights to Changes, Etc. 

 The Plan or the option agreement shall not affect, in
any way, the rights, power or freedom of the Company or of its stockholders to make or authorize any sale, transfer or any change whatsoever in all or any part of the Company’s assets, obligations or business, or any other business, commercial
or corporate act or proceeding, whether of a similar character or otherwise; any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or business; any merger or consolidation of the Company;
any issue of bonds, debentures, shares (including preferred or prior preference shares ahead of or affecting the existing shares of the Company including the shares into which 

  
 10 

 
the Options granted hereunder are exercisable or the Exercised Shares or the rights thereof, etc.); or the dissolution or liquidation of the Company; and none of the above acts or authorizations
shall entitle the Grantee to any right or remedy, including, without limitation, a right of compensation for any dilution resulting from any issuance of any shares or of any other securities in the Company to any person or entity whatsoever. 

 

	16.	No Employment / Engagement Obligations 

 Nothing in the Plan, the option agreement
or in any Option granted hereunder shall guarantee the Grantee’s employment or engagement in the Company or any Affiliated Company, and no obligation of the Company or any Affiliated Company as to the length of employment or engagement of the
Grantee or as to any other term of employment shall be implied by the same; the Company and any Affiliated Company reserve the right to terminate the employment or engagement of any Grantee pursuant to such Grantee’s terms of employment or
engagement and any law. 
  

	17.	No Representation 

 The Company does not and shall not, through this Plan or
through any option agreement, make or be deemed to make any representation toward any Grantee with regard to the Company, its business, its value or with regard to the Company’s shares in general, and the Exercised Shares in particular, their
value or rights. 
 The Grantee, in entering the option agreement, represents and warrants toward the Company, that his/her consent to the
grant of the Options issued in favor of him/her and their exercise (if so exercised), is not, in any respect, made on the basis of any representation or warranty made by the Company or by any of its directors, officers, shareholders or employees,
and is made based only upon his examination and expectations of the Company, on an “as is” basis, The Grantee waives any claim whatsoever of “non conformity” of any kind or any other cause of action or claim of any kind with
respect to the Options and/or the Shares exercised thereupon. 
  

	18.	Tax Consequences 

  

	18.1	All tax consequences arising from the grant or exercise of any Option, the payment for or the transfer of the Exercised Shares to the Grantee, or from any other event or act (of the Company, any Affiliated Company, the
Trustee or the Grantee) hereunder, shall be borne solely by the Grantee; the Grantee shall indemnify the Company and the Trustee and hold them harmless from and against any and all liability for any such tax or interest or penalty thereon, including
without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Grantee, unless the said liability is a result of default of the Company. 

The Company, any Affiliated Company and the Trustee may withhold, from any payment made to the Grantee, the amount of the tax and/or other
mandatory payment the withholding of which is required with respect to the Options and/or the Exercised Shares under any law. The Company or an Affiliated Company shall have the right to require the Grantee, through payroll withholding, cash payment
or otherwise, to make adequate provision for any such tax withholding obligations of the Company, an Affiliated Company or the Trustee arising in connection with the Options or the Exercised Shares. 

 

	18.2	Without derogating from the foregoing, it is hereby clarified that the Grantee shall bear and be liable for all tax and other consequences in the event that his/her Approved 102 Options and/or Exercised Shares are not
held for the entire Restricted Period, all as provided in Section 102. 

  

	19.	Subordination 

 It is clarified that the grant of the Approved 102 Options
hereunder is subject to the approval by the Tax Authorities of the Plan and the Trustee, in accordance with the Ordinance and the provisions of Section 102 applicable to the granting of Options through a Trustee in the tax track applicable to
the Options, in accordance with the Election. It is also clarified that the Approved 102 Options, the Plan and the option agreements are subject to the provisions of Section 102 applicable to the granting of options through a Trustee in the tax
track applicable to any granted Options, in accordance with the Election, and the terms of the Tax Authorities permit, if any, which shall be deemed an integral part of each, accordingly, and which 

  
 11 

 
shall prevail over any term that is inconsistent with such provisions of Section 102. Any provision of Section 102 and/or such permit which is necessary in order to receive and/or to
keep any tax benefit pursuant to Section 102 which is not expressly specified in the Plan or in the option agreement shall be considered binding upon the Company and the Grantee. 

It is further clarified that Unapproved 102 Options granted to Employees hereunder, and their respective option agreements, are subject to the
provisions of Section 102 applicable to the granting of Options not through a Trustee, which shad be deemed an integral part of each, accordingly, and which shall prevail over any term that is inconsistent with such provisions of
Section 102. 
  

	20.	Non-Exclusivity of the Plan 

 The adoption of the Plan by the Board shall not be
construed as amending, modifying or rescinding any previously approved incentive arrangements or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without
limitation, the granting of options for shares in the Company otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. 

 

	21.	Termination or Amendment of Plan 

 The Board may terminate or amend the Plan at
any time. However, subject to changes in applicable law, regulations or rules dial would permit otherwise, without the approval of the Company’s stockholders there shall be no amendment of the Plan that would require approval of the
Company’s stockholders under any applicable law, regulation or rule. No termination or amendment of the Plan shall affect any then outstanding Options unless expressly provided by the Board. 

  
 12 

 CHIASMA, INC. 

Increase in Reserved Shares for Issuance Under 2003 Plan 

RESOLVED, that the number of shares of common stock of the Company, par value $0.01 per share (the “Common Stock”),
reserved for issuance upon exercise of stock options to purchase shares of Common Stock granted to employees, directors, consultants and service providers of the Company under the Company’s 2003 Israeli Stock Option Plan (the “2003
Plan”) be increased by 30,000 shares of Common Stock to a total of 164,200 Shares of Common Stock; that the 2003 Plan be amended to reflect such increase; that the number of shares of Common Stock reserved for issuance under the 2003 Plan
be and hereby is increased to a total of 164,200; and that the amendment to the 2003 Plan be submitted to the stockholders of the Company for their approval. 

RESOLVED, that the Board of Directors hereby ratifies and approves, as of the date of their respective initial grant, all options
granted under the Company’s 2003 Plan. 

  
 13 

 FORM OF OPTION AGREEMENT 

OPTION AGREEMENT made and entered into in Jerusalem Effective as of [●] day of [●] 20[●], (the “Date of
Grant”) by and between CHIASMA, INC., (the “Company”) of the first part and [●] (the “Grantee”) of the second part. 

WHEREAS, the Company has decided to grant options in favor of the Grantee to purchase share(s) of Common Stock having a par value of US
$0.01 each of the Company, under and in accordance with the Company’s Israeli Stock Option Plan - 2003, attached hereto as Annex A (hereinafter the “Plan”), adopted by the Board on November 26, 2003; and

 WHEREAS, the Grantee has agreed to such grant, subject to all the terms and conditions as set forth in the Plan and as
provided herein. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements herein contained, the
parties agree as follows: 
  

	1.	Preamble and Interpretation 

 1.1 The preamble to this Option Agreement and the Annexes
attached hereto form an integral part hereof. 
 1.2 The captions of clauses in this Option Agreement are intended solely for convenience
and will have no meaning in the interpretation of this Option Agreement. 
 1.3 All the capitalized terms not defined herein shall have the
meaning given to them in the Plan, unless the context clearly indicates to the contrary. 
  

	2.	The Plan 

 This Option Agreement and the Options granted hereunder, are subject to the
provisions of the Plan (as may be amended from time to time), which shall be deemed an integral part hereof. The grant of the Options, the exercise thereof and all the other terms in connection therewith shall be in accordance with and pursuant to
the terms of the Plan. The Grantee hereby undertakes to comply with the terms of the Plan. Any interpretation of this Option Agreement will be made in accordance with the Plan, but in the event there is any contradiction between the provisions of
this Option Agreement and the Plan, the provisions of the Option Agreement will prevail 
  

	3.	Grant of Options 

 After the execution by the Grantee of this Option Agreement and any
other documents required by the Company in connection herewith, the Company shall execute this Option Agreement and issue [●] Options which shall be: 

Approved 102 Options - subject to the “Capital Gain Income Tax Track” of Section 102 - and shall be granted to the Trustee in
favor of the Grantee. 

 and which shall be governed by and subject to the terms and conditions set forth in the Plan,
applicable to such tax track of Options {the “Grantee’s Options”). 
  

	4.	Vesting and Exercise of Options 

 4.1 Without derogating from and subject to the
provisions of the Plan the Grantee’s Options shall vest over a total of four years as follows: 
  

			
	 Period of Grantee’s Continuous
Service from the Date of Start:
	  	 Portion of Total Number

of Options that is
 Vested
and Exercisable

	Upon the lapse of full 12 (twelve) months of continuous Service	  	
		
	Upon the lapse of each full additional month of the Grantee’s continuous Service thereafter, until all the Options are vested, an additional	  	

 For the purposes herein, the “Date of Start” of the Grantee’s Options shall be [●]. 

4.2 Subject to the applicable terms and conditions of the Plan, and during the Exercise Period, the Options which are vested with the Grantee
in accordance with Section 4.1 above, may be exercised by the Grantee, in accordance with the applicable provisions of the Plan. Pursuant to Section 11.2 of the Plan and, when applicable, subject to the provisions of the Section 102,
until the closing of an IPO, the Board shall be entitled to require, as a condition to the exercise of any Option, that the Grantee (and the Trustee, If the Trustee will be the holder of the Exercised Shares) sign and deliver to such person as may
be designated by the Board an irrevocable proxy, in a form to be provided by the Company. 
 4.3 Without derogating from the provisions of
the Plan, and in addition thereto, the grant of the Options and the issuance of Exercised Shares shall be subject to compliance with all Applicable Laws. The Options may not be exercised if the issuance of the Exercised Shares would constitute a
violation of any Applicable Laws, In addition, the Options may not be exercised unless (i) a registration statement under the United States Securities Act of 1933, as now in effect or as hereafter amended (the “Securities Act”)
shall at the time of exercise of the Options be in effect with respect to the shares issuable upon exercise of the Options or (ii) in the opinion of legal counsel to the Company, the Exercised Shares may be issued in accordance with the terms
of an applicable exemption from the registration requirements of the Securities Act or any other applicable securities laws. THE GRANTEE IS CAUTIONED THAT THE OPTIONS MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY,
THE GRANTEE MAY NOT BE ABLE TO EXERCISE THE OPTIONS WHEN DESIRED EVEN THOUGH THE OPTIONS ARE VESTED. The inability of the Company or any Affiliated Company to obtain from any regulatory body having jurisdiction, the authority if any, deemed by the
Company’s legal counsel to be necessary to the lawful issuance and sale of any Exercised Shares 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. As a condition to the exercise of the Options, the Company may require the Grantee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any Applicable Laws and to make any representation
or warranty with respect thereto as may be requested by the Company. 

  
 2 

 4.4 The Company shall not be required to issue fractional shares upon the exercise of the
Options. If any fractional Share would be deliverable upon exercise, such fraction shall be rounded up one-half or less, or otherwise rounded down, to the nearest whole number. 

 

	5.	Exercise Price 

 The Exercise Price for each Option shall be $[●]. 

 

	6.	Restrictions on Transfer and Voting of Shares 

 6.1 The transfer of the Exercised Shares
shall be subject to the limitations and restrictions set forth in the Plan (including without limitation, the bring along obligation), and in the Company’s Certificate of Incorporation and By-Laws, as shall be in effect from time to time, any
shareholders’ agreement to which the holders of Shares are bound, and the right of first refusal described below in this Section 6. 

6.2 Additionally, the Grantee acknowledges that if the Company’s shares are registered for trading in any public market, the
Grantee’s right to sell shares may be subject to some limitations, as set forth by the Company or its underwriters, including without limitation, customary lockup requirements. In such event, the Grantee will unconditionally agree to any such
limitations. 
 Notwithstanding anything to the contrary contained herein and without derogating from the other provisions of this
Section 6.2 above, in connection with any underwritten public offering by the Company of its securities, pursuant to an effective registration statement filed under the Securities Act. including an initial public offering of the Company’s
securities, the Grantee shall not, directly or indirectly, sell or otherwise transfer, hypothecate, pledge, grant or otherwise dispose of the Options (whether or not vested), the Exercised Shares, or Shares issued by virtue of the Exercised Shares
(together, the “Restricted Shares”), without the prior written consent of the Company or its underwriters. Such restrictions shall be in effect for a period of one hundred and eighty (180) days following the effective date of
the registration statement filed by the Company under the Securities Act or for a longer period as may be requested by the Company or such underwriters (hereinafter, the “Lock-Up Period”). 

In order to enforce the above restrictions, the Company may impose stop-transfer instructions with respect to the Restricted Shares until the
end of the applicable Lock-Up Period. 
 6.3 The Grantee further acknowledges that without derogating from the provisions of
Section 6.2 above, Approved 102 Options and the Exercised Shares issued pursuant to the exercise thereof and all rights attached thereto (including bonus shares), shall also be subject to those special limitations and restrictions
applicable under the Plan and the Ordinance and shall not be released before the end of the Restricted Period, applicable to the type (tax track) of the Approved 102 Option granted hereunder, 

  
 3 

 6.4 The Grantee shall not dispose of any Shares in transactions which violate, in the opinion of
the Company, any applicable rules and regulations. Without derogating from the above, the Grantee understands and acknowledges that the Shares have not been registered under the Securities Act, and that consequently the Shares must be held
indefinitely unless they are subsequently registered under the Securities Act, an exemption from such registration is available, or they are sold in accordance with Rule 144 or Rule 701 under the Securities Act. The Grantee further
understands and acknowledges that the Company is under no obligation to register the Shares, The Grantee understands that the certificate or certificates evidencing the Shares may be imprinted with legends which prohibit the transfer of the-Shares
unless they are registered or such registration is not required in the opinion of legal counsel satisfactory to the Company. The Grantee is aware that Rule 144 under the Securities Act (“Rule 144”), which permits limited
public resale of securities acquired in a nonpublic offering, is not currently available with respect to the Shares and, in any event, is available only if certain conditions are satisfied. The Grantee understands that any sale of the Shares that
might be made in reliance upon Rule 144 may only be made in limited amounts in accordance with the terms and conditions of such rule and that a copy of Rule 144 will be delivered to the Grantee upon request. 

6.5 The Grantee agrees that the Company shall have the authority to endorse upon the: certificate or certificates representing the shares of
the Grantee such legends referring to the foregoing restrictions, and any other applicable restrictions, as it may deem appropriate (which do not violate the Grantee’s rights according to this Option Agreement). 

6.6 Without derogating from the provisions of the Plan, and in addition thereto, the Grantee will be required by the Company, at the
Company’s discretion, to give a declaration in writing upon exercising the Option, that the Grantee is acquiring the Exercised Shares for his or her own account, for investment and not with a view to immediate sale upon, the distribution of
such Exercised Shares. 
 6.7 Without derogating from the restrictions and limitations regarding transferability as provided in the Plan and
in this Option Agreement, and in addition thereto, the Exercised Shares shall also be subject to the following: 
 6.7.1 Limitation of
Transfer and Grant of Right of First Refusal. Notwithstanding anything to the contrary herein, unless otherwise determined by the Board, until such time as the Company shall complete an IPO, s Grantee shall not have the right to sell, exchange,
assign, pledge, encumber, charge or otherwise transfer or dispose of (“Transfer”) Exercised Shares, within six (6) months and one day of the date of exercise of the Options by virtue of which such Exercised Share was issued.
Additionally, and without derogating from the above, except as provided in Section 6.7.8 below, in the event the Grantee, the Grantee’s legal representative or other holder of shares acquired upon exercise of the Options proposes to
Transfer any Exercised Shares which in accordance with the Plan and this Option Agreement are permitted to be Transferred (the “Transfer Shares’) to any person or entity, including, without limitation, any stockholder of the
Company, the Company shall have the right regarding the Transfer Shares as set forth in this Section 6.7 (the “Right of First Refusal”). 

  
 4 

 6.7.2 Notice of Proposed Transfer. Prior to any proposed Transfer of the Transfer Shares,
the Grantee shall deliver written notice (the “Transfer Notice”) to the Company describing fully the proposed Transfer, including the number of Transfer Shares, the name and address of the proposed transferee (the “Proposed
Transferee”) and, if the Transfer is voluntary, the proposed Transfer price, and containing such information necessary to show the bona fide nature of the proposed Transfer, In the event of a bona fide gift or involuntary Transfer, the
proposed Transfer price shall be deemed to be the fair market value of the Transfer Shares. 
 6.7.3 Bona Fide Transfer. If the
Company determines that the information provided by the Grantee in the Transfer Notice is insufficient to establish the bona fide nature of a proposed voluntary Transfer, the Company shall give the Grantee written notice of the Grantee’s
failure to comply with the procedure described in this Section 6.7, and the Grantee shall have no right to Transfer the Transfer Shares without first complying with the procedure described in this Section 6.7. The Grantee shall not be
permitted to Transfer the Transfer Shares if the proposed transfer is not bona fide. 
 6.7.4 Exercise of Right of First Refusal. The
Company shall have the right to purchase all or a portion of the Transfer Shares at the purchase price, and on the terms, set forth in the Transfer Notice by delivery to the Grantee of a notice of exercise of the Right of First Refusal within thirty
(30) days after the date the Transfer Notice is duly delivered to the Company. The Company’s exercise or failure to exercise the Right of First Refusal with respect to any proposed Transfer described in a Transfer Notice shall not affect
the Company’s right to exercise the Right of First Refusal with respect to any proposed Transfer described in any other Transfer Notice, whether or not such other Transfer Notice is issued by the Grantee or issued by a person other than the
Grantee with respect to a proposed Transfer to the same Proposed Transferee. If the Company exercises the Right of First Refusal, the Company and the Grantee shall thereupon consummate the sale of the Transfer Shares to the Company on the terms set
forth in the Transfer Notice within sixty (60) days after the date the Transfer Notice is delivered to the Company (unless a longer period is offered by the Proposed Transferee); provided, however, that in the event the Transfer Notice
provides for the payment for the Transfer Shares other than in cash, the Company shall have the option of paying for the Transfer Shares by the present value cash equivalent of the consideration described in the Transfer Notice as reasonably
determined by the Company. For purposes of the foregoing, cancellation of any indebtedness of the Grantee to the Company or any Affiliate shall be treated as payment to the Grantee in cash. 

6.7.5 Failure to Exercise Right of First Refusal. If the Company fails to exercise the Right of First Refusal in full (or to such
lesser extent as the Company and the Grantee otherwise agree) within the period specified in Section 6.7.4 above, the Grantee may conclude a Transfer to the Proposed Transferee of the Transfer Shares on the terms and conditions described in the
Transfer Notice; provided such transfer occurs not later than ninety (90) days following delivery to the Company of the Transfer Notice. The Company shall have the right to demand further assurances from the Grantee and the Proposed
Transferee (in a form satisfactory to the Company) that the Transfer of the Transfer Shares was actually carried out on the terms and conditions described in the Transfer Notice. No Transfer 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. Any proposed Transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent
proposed Transfer by the Grantee, shall again be subject to the Right of First Refusal and shall require compliance by the Grantee with the procedure described in this Section 6.7. 

  
 5 

 6.7.6 Transferees of Transfer Shares. All transferees of the Transfer Shares or any
interest therein, other than the Company, shall be required as a condition of such Transfer to agree in writing (in a form satisfactory to the Company) that such transferee shall receive and hold such Transfer Shares or interest therein subject to
all of the terms and conditions of the Plan and this Option Agreement, including this Section 6.7 providing for the Right of First Refusal with respect to any subsequent transfer. Any Transfer of any shares acquired upon exercise of the Options
shall be void unless the provisions of this Section 6.7 are met. 
 6.7.7 Assignment of Right of First Refusal. The Company
shall have the right to assign the Right of First Refusal at any time, whether or not there has been an attempted Transfer, to one or more persons as may be selected by the Company. 

6.7.8 Early Termination of Right of First Refusal. The other provisions of this Option Agreement notwithstanding, the Right of First
Refusal shall terminate and be of no further force and effect upon (a) the occurrence of a Merger Transaction, unless the Successor Entity assumes the Company’s rights and obligations under the Options or substitutes substantially
equivalent options for the Successor’s Entity’s stock for the Options, or (b) the existence of a public market for the class of shares subject to the Right of First Refusal. A “public market” shall be deemed to exist if
(i) such stock is listed on a national securities exchange (as that term is used in the Securities Exchange Act of 1934) or (ii) such stock is traded on the over-the-counter market and prices therefor are published daily on business days
in a recognized financial journal. 
 6.7.9 Any transfer of Exercised Shares that is not made in accordance with the Plan or this Option
Agreement shall be null and void. The Company shall not be required (a) to transfer on its books any shares which will have been transferred in violation of any of the provisions set forth in this Option Agreement or (b) to treat as owner
of such shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such shares will have been so transferred. 

6.7.10 If, from time to time, there is any stock dividend, stock split or other change, as described in the Plan, in the character or amount
of any of the outstanding stock of the corporation the stock of which is subject to the provisions of this Option Agreement, then in such event any and all new, substituted or additional securities to which the Grantee is entitled by reason of the
Grantee’s ownership of the Exercised Shares shall be immediately subject to the Right of First Refusal and any security interest held by the Company with the same force and effect as the shares subject to such restrictions immediately before
such event. 
  

	7.	Taxes and Indemnification: 

 7.1 The receipt of the Option and the exercise thereof may
result in tax consequences. THE GRANTEE IS ADVISED TO CONSULT A TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING OR EXERCISING THE OPTIONS OR DISPOSING OF THE SHARES 

  
 6 

 7.2 All tax consequences arising from the grant or exercise of any Option, the payment for or the
transfer of the Exercised Shares to the Grantee, or from any other event or act (of the Company, any Affiliated Company, the Trustee or the Grantee) hereunder, shall be borne solely by the Grantee; the Grantee shall indemnify the Company and/or any
Affiliated Company and/or the Trustee and hold them harmless from and against any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have
withheld, any such tax from any payment made to the Grantee. 
 The Company, any Affiliated Company and the Trustee may withhold, from any
payment made to the Grantee, the amount of the tax and/or other mandatory payment the withholding of which is required with respect to the Options and/or the Exercised Shares under any law. The Company or an Affiliated Company shall have the right
to require the Grantee, through payroll withholding, cash payment or otherwise, to make adequate provision for any such tax withholding obligations of the Company, an Affiliated Company or the Trustee arising in connection with the Options or the
Exercised Shares. 
 7.3 Without derogating from the foregoing, it is hereby clarified that the Grantee shall bear and be liable for all tax
and other consequences in the event that his/her Approved 102 Options and/or Exercised Shares are not held for the entire Restricted Period, all as provided in Section 102. 

7.4 Without derogating from the provisions of the Plan, it is further clarified that the Grantee shall not be entitled to receive any
Exercised Shares prior to the Company being provided with the tax authorities’ confirmation which either (i) waives or defers the tax withholding obligation; or (ii) confirms the payment of the tax with respect to such exercise; or
(iii) confirms the conclusion of another arrangement with the Grantee regarding the tax amounts, if any, that are to be withheld by the Company or any Affiliated Company under law with respect to such exercise, and which is satisfactory to the
Company, and if such arrangement requires the approval of the Trustee, is also satisfactory to the Trustee. 
  

	8.	Subordination 

 8.1 With regard to Approved 102 Options, the provisions of the Plan
and/or the Option Agreement shall be subject to the provisions of Section 102 applicable to the granting of Options through a Trustee in the tax track applicable to any granted Options in accordance with the Election, and the terms of the Tax
Assessing Officer’s permit, if any, which shall be deemed an integral part of each, and which shall prevail over any term that is inconsistent with such provisions of Section 102. Any provision of Section 102 and/or the said permit
which is necessary in order to receive and/or to keep any tax benefit pursuant to Section 102, which is not expressly specified in the Plan or the Option Agreement, shall be considered binding upon the Company and the Grantees. 

8.2 With regard to Unapproved 102 Options granted to Employees hereunder, such Options and their respective Option Agreements, are
subject to the provisions of Section 102 applicable to the granting of Options not through a Trustee, which shall be deemed an integral part of each, and which shall prevail over any term that is inconsistent with such provisions of
Section 102. 

  
 7 

	9.	Miscellaneous 

 9.1 The invalidity or unenforceability of any provision herein shall not
affect the validity or enforceability of the balance hereof. 
 9.2 The Plan and this Option Agreement represents the entire undertaking by
the Company regarding the subject matter and supersedes all prior undertakings with respect thereto. 
 9.3 No provision hereof may be
waived or discharged except by a written document signed by a duly authorized representative of the Company. 
 9.4 The failure of the
Company at any time or times to require performance of any provision hereof shall in no manner affect the right of the Company at a later time to enforce the same. No waiver by the Company of the breach of any of the terms or covenants contained in
this Option Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any breach, or a waiver of the breach of any of the terms or covenants contained in this
Option Agreement. 
 9.5 All notices given by one Party to the other hereunder will be given in writing, and will be deemed to have been
delivered to the addressee immediately on its delivery if delivered by hand or upon transmission if sent by facsimile and confirmed by written reply by facsimile immediately thereafter, or within seven (7) business days after being sent by
registered mail, as per the addresses indicated hereinabove, or such other address or facsimile number as a Party may thereafter give by written notice to the other Party to this Option Agreement. 

9.6 This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect
to the principles of conflict of laws. The competent courts of Tel-Aviv, Israel shall have the sole jurisdiction in any matters pertaining to this Agreement, to the complete exclusion of any other courts. 

[Remainder of page intentionally left blank] 

  
 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Option Agreement to be duly
executed on the day and year first written above. 
  

			
	COMPANY:
	
	CHIASMA, INC.
		
	By:		  

	Name:		
	Title:		

 I, the undersigned, hereby acknowledge receipt of a copy of the Plan and am familiar with the terms and
provisions thereof and accept the Options subject to all of the terms and provisions thereof. I have reviewed the Plan and this Option Agreement in its entirety, have had an opportunity to obtain the advice of counsel prior to executing this Option
Agreement, and fully understand all provisions of this Option Agreement I agree to notify the Company upon any change in the residence address indicated above. 

I hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Board upon any question arising under the
Plan or this Option Agreement. 
 In case of Approved 102 Options: 

I hereby further acknowledge that I am aware that I am being granted an Approved 102 Option, of the “Capital Gain Income Tax
Track”, and that I am familiar with the provisions of Section 102 and the regulations and rules promulgated thereunder, applicable to such Option type, including without limitations, the tax implications applicable to such grant, and agree
to be bound by said provisions. I accept the provisions of the trust agreement signed between the Company and the Trustee, attached as Annex B hereto, and agree to be bound by its terms. 

In case of Unapproved 102 Options: 
 I
further undertake that if I cease to be employed by the Company or any Affiliated Company, I shall execute upon such termination, a guarantee in the form required by the Company, to secure payment of all taxes which become due upon the future sale
of my Exercised Shares which may be issued following the exercise of my outstanding Unapproved 102 Options. 
  

	
	GRANTEE:
	
	  

 [Signature Page to Option Agreement]EX-10.2

 Exhibit 10.2 

CHIASMA, INC. 
 2008 STOCK
INCENTIVE PLAN 
 1. Purpose 
 The
purpose of this 2008 Stock Incentive Plan (the “Plan”) of Chiasma, Inc., a Delaware corporation (the “Company”), is to advance the interests of the Company’s stockholders by enhancing the Company’s ability to attract,
retain and motivate persons who are expected to make important contributions to the Company and by providing such persons with equity ownership opportunities and performance-based incentives that are intended to better align the interests of such
persons with those of the Company’s stockholders. Except where the context otherwise requires, the term “Company” shall include any of the Company’s present or future parent or subsidiary corporations as defined in
Sections 424(e) or (f) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”) and any other business venture (including, without limitation, joint venture or limited liability
company) in which the Company has a controlling interest as determined by the Board of Directors of the Company (the “Board”). 
 2.
Eligibility 
 All of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted options,
restricted stock, restricted stock units (“RSUs”) and other stock-based awards (each, an “Award”) under the Plan. Each person who receives an Award under the Plan is deemed a “Participant”. 

3. Administration and Delegation 
 (a)
Administration by Board of Directors. The Plan will be administered by the Board. The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it
shall deem advisable. The Board may construe and interpret the terms of the Plan and any Award agreements entered into under the Plan. The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in
the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency. All decisions by the Board shall be made in the Board’s sole discretion and shall be final and
binding on all persons having or claiming any interest in the Plan or in any Award. No director or person acting pursuant to the authority delegated by the Board shall be liable for any action or determination relating to or under the Plan made in
good faith. 
 (b) Appointment of Committees. To the extent permitted by applicable law, the Board may delegate any or all of its
powers under the Plan to one or more committees or subcommittees of the Board (a “Committee”). All references in the Plan to the “Board” shall mean the Board or a Committee of the Board or the officers referred to in
Section 3(c) to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee or officers. 

 (c) Delegation to Officers. To the extent permitted by applicable law, the Board may
delegate to one or more officers of the Company the power to grant Awards (subject to any limitations under the Plan) to employees or officers of the Company or any of its present or future subsidiary corporations and to exercise such other powers
under the Plan as the Board may determine, provided that the Board shall fix the terms of the Awards to be granted by such officers (including the exercise price of such Awards, which may include a formula by which the exercise price will be
determined) and the maximum number of shares subject to Awards that the officers may grant; provided further, however, that no officer shall be authorized to grant Awards to any “executive officer” of the Company (as defined by
Rule 3b-7 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or to any “officer” of the Company (as defined by Rule 16a-1 under the Exchange Act). 

4. Stock Available for Awards 
 (a)
Number of Shares. Subject to adjustment under Section 8, Awards may be made under the Plan for up to 500,000 shares (after giving effect to the 1,000-into-l reverse stock split approved by the Board in May 2008) of common stock, $0.01
par value per share, of the Company (the “Common Stock”). If any Award expires or is terminated, surrendered or canceled without having been frilly exercised, is. forfeited in whole or in part (including as the result of shares of Common
Stock subject to such Award being repurchased by the Company at the original issuance price pursuant to a contractual repurchase right), or results in any Common Stock not being issued, the unused Common Stock covered by such Award shall again be
available for the grant of Awards under the Plan. Further, shares of Common Stock tendered to the Company by a Participant to exercise an Award shall be added to the number of shares of Common Stock available for the grant of Awards under the Plan.
However, in the case of Incentive Stock Options (as hereinafter defined), the foregoing provisions shall be subject to any limitations under the Code, Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or
treasury shares. 
 (b) Substitute Awards. In connection with a merger or consolidation of an entity with the Company or the
acquisition by the Company of property or stock of an entity, the Board may grant Awards in substitution for any options or other stock or stock-based awards granted by such entity or an affiliate thereof. Substitute Awards may be granted on such
terms as the Board deems appropriate in the circumstances, notwithstanding any limitations on Awards contained in the Plan. Substitute Awards shall not count against the overall share limit set forth in Section 4(a), except as may be required
by reason of Section 422 and related provisions of the Code. 
 5. Stock Options 

(a) General. The Board may grant options to purchase Common Stock (each, an “Option”) and determine the number of shares of
Common Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it considers
necessary or advisable. Unless otherwise determined by the Board, an Option that is not intended to be an Incentive Stock Option (as hereinafter defined) shall be designated a “Nonstatutory Stock Option”. 

  
 -2- 

 (b) Incentive Stock Options. An Option that the Board intends to be an “incentive
stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be granted to employees of Chiasma, Inc., any of Chiasma, it’s present or future parent or subsidiary corporations as defined in
Sections 424(e) or (f) of the Code, and any other entities the employees of which are eligible to receive Incentive Stock Options under the Code, and shall be subject to and shall be construed consistently with the requirements of
Section 422 of the Code. The Company shall have no liability to a Participant, or any other party, if an Option (or any part thereof) that is intended to be an Incentive Stock Option is not an Incentive Stock Option or for any action taken by
the Board, including without limitation the conversion of an Incentive Stock Option to a Nonstatutory Stock Option. 
 (c) Exercise
Price. The Board shall establish the exercise price of each Option and specify the exercise price in the applicable option agreement. The exercise price shall be not less than 100% of the Fair Market Value (as defined below) on the date the
Option is granted. 
 (d) Duration of Options. Each Option shall be exercisable at such times and subject to such terms and
conditions as the Board may specify in the applicable option agreement. 
 (e) Exercise of Option. Options may be exercised by
delivery to the Company of a written notice of exercise signed by the proper person or by any other form of notice (including electronic notice) approved by the Board together with payment in full as specified in Section 5(f) for the number of
shares for which the Option is exercised. Shares of Common Stock subject to the Option will be delivered by the Company as soon as practicable following exercise. 

(f) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option granted under the Plan shall be paid for as follows:

 (1) in cash or by check, payable to the order of the Company; 

(2) when the Common Stock is registered under the Exchange Act, except as may otherwise be provided in the applicable option agreement, by
(i) delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price and any required tax withholding or (ii) delivery by the Participant to the
Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding; 

(3) when the Common Stock is registered under the Exchange Act and to the extent provided for in the applicable option agreement or approved by
the Board, in its sole discretion, by delivery (either by actual delivery or attestation) of shares of Common Stock owned by the Participant valued at their fair market value as determined by (or in a manner approved by) the Board (“Fair Market
Value”), provided (i) such method of payment is then permitted under applicable law, (ii) such Common Stock, if acquired directly from the Company, was owned by the Participant for such minimum period of time, if any, as may be
established by the Board in its discretion and (iii) such Common Stock is not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements; 

  
 -3- 

 (4) to the extent permitted by applicable law and provided for in the applicable option agreement
or approved by the Board, in its sole discretion, by (i) delivery of a promissory note of the Participant to the Company on terms determined by the Board, or (ii) payment of such other lawful consideration as the Board may determine; or

 (5) by any combination of the above permitted forms of payment. 

6. Restricted Stock: Restricted Stock Units 

(a) General. The Board may grant Awards entitling recipients to acquire shares of Common Stock (“Restricted Stock”), subject
to the right of the Company to repurchase all or part of such shares at their issue price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the recipient in the event that conditions specified by
the Board in the applicable Award are not satisfied prior to the end of the applicable restriction period or periods established by the Board for such Award. Instead of granting Awards for Restricted Stock, the Board may grant Awards entitling the
recipient to receive .shares of Common Stock or cash to be delivered at the time such Award vests (“Restricted Stock Units”) (Restricted Stock and Restricted Stock Units are each referred to herein as a “Restricted Stock Award”).

 (b) Terms and Conditions for All Restricted Stock Awards. The Board shall determine the terms and conditions of a Restricted Stock
Award, including the conditions for vesting and repurchase (or forfeiture) and the issue price, if any. 
 (c) Additional Provisions
Relating to Restricted Stock. 
 (1) Dividends. Participants holding shares of Restricted Stock will be entitled to all ordinary
cash dividends paid with respect to such shares, unless otherwise provided by the Board. Unless otherwise provided, by the Board, if any dividends or distributions are paid in shares, or consist of a dividend or distribution to holders of Common
Stock other than an ordinary cash dividend, the shares, cash or other property will be subject to the same restrictions on transferability and forfeitability as the shares of Restricted Stock with respect to which they were paid. 

(2) Stock Certificates. The Company may require that any stock certificates issued in respect of shares of Restricted Stock shall be
deposited in escrow by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). At the expiration of the applicable restriction periods, the Company (or such designee) shall deliver the certificates no
longer subject to such restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a manner determined by the Board, by a Participant to receive amounts due or exercise rights of the Participant m the event of
the Participant’s death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, “Designated Beneficiary” shall mean the Participant’s estate. 

7. Other Stock-Based Awards 
 Other
Awards of shares of Common Stock, and other Awards that are valued in whole or in part by reference to, or are otherwise based on, shares of Common Stock or other property, 

  
 -4- 

 
may be granted hereunder to Participants (“Other Stock-Based Awards”), including without limitation stock appreciation rights (“SARs”) and Awards entitling recipients to
receive shares of Common Stock to be delivered in the future. Such Other Stock-Based Awards shall also be available as a form of payment in the settlement of other Awards granted under the Plan or as payment in lieu of compensation to which a
Participant is otherwise entitled. Other Stock-Based Awards may be paid in shares of Common Stock or cash, as the Board shall determine. Subject to the provisions of the Plan, the Board shall determine the terms and conditions of each Other
Stock-Based Award, including any purchase price applicable thereto. 
 8. Adjustments for Changes in Common Stock and Certain Other Events 

(a) Changes in Capitalization. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of
shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any dividend or distribution to holders of Common Stock other than an ordinary cash dividend, (i) the number and class of securities available
under this Plan, (ii) the number and class of securities and exercise price per share of each outstanding Option, (iii) the number of shares subject to and the repurchase price per share subject to each outstanding Restricted Stock Award,
and (iv) the terms of each other outstanding Award shall he equitably adjusted by the Company (or substituted Awards may be made, if applicable) in the manner determined by the Board. Without limiting the generality of the foregoing, in the
event the Company effects a split of the Common Stock by means of a stock dividend and the exercise price of and the number of shares subject to an outstanding Option are adjusted as of the date of the distribution of the dividend (rather than as of
the record date for such dividend), then an optionee who exercises an Option between the record date and the distribution date for such stock dividend shall be entitled to receive, on the distribution date, the stock dividend with respect to the
shares of Common Stock acquired upon such Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend. 

(b) Reorganization Events. 

(1) Definition. A “Reorganization Event” shall mean: (i) any merger or consolidation of the Company with or into another
entity as a result of which all of the Common Stock of the Company is converted into or exchanged for the right to receive cash, securities or other property or is cancelled, (ii) any exchange of all of the Common Stock of the Company for cash,
securities or other property pursuant to a share exchange transaction or (iii) any liquidation or dissolution of the Company. 
 (2)
Consequences of a Reorganization Event on Awards Other than Restricted Stock Awards. In connection with a Reorganization Event, the Board may take any one or more of the following actions as to all or any (or any portion of) outstanding
Awards other than Restricted Stock Awards on such terms as the Board determines: (i) provide that Awards shall be assumed, or substantially equivalent Awards shall be substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), (ii) upon written notice to a Participant, provide that the Participant’s unexercised Awards will terminate immediately prior to the consummation of such Reorganization Event unless exercised by the Participant within a specified
period following the date of such notice, (iii) provide that outstanding Awards shall become exercisable, realizable, or 

  
 -5- 

 
deliverable, or restrictions applicable to an Award shall lapse, in whole or in part prior to or upon such Reorganization Event, (iv) in the event of a Reorganization Event under the terms
of which holders of Common Stock will receive upon consummation thereof a cash payment for each share surrendered in the Reorganization Event (the “Acquisition Price”), make or provide for a cash payment to a Participant equal to the
excess, if any, of (A) the Acquisition Price times the number of shares of Common Stock subject to the Participant’s Awards (to the extent the exercise price does not exceed the Acquisition Price) over (B) the aggregate exercise price
of all such outstanding Awards and any applicable tax withholdings, in exchange for the termination of such Awards, (v) provide that, in connection with a liquidation or dissolution of the Company, Awards shall convert into the right to receive
liquidation proceeds (if applicable, net of the exercise price thereof and any applicable tax withholdings) and (vi) any combination of the foregoing. In taking any of the actions permitted under this Section 8(b), the Board shall not be
obligated by the Plan to treat all Awards, all Awards held by a Participant, or all Awards of the same type, identically. 
 For purposes of
clause (i) above, an Option shall be considered assumed if, following consummation of the Reorganization Event the Option confers the right to purchase, for each share of Common Stock subject to the Option immediately prior to the consummation
of the Reorganization Event, the consideration (whether cash, securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each share of Common Stock held immediately prior to the consummation of the
Reorganization Event (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if the consideration received as a result
of the Reorganization Event is not solely common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation, provide for the consideration to be received
upon the exercise of Options to consist solely of common stock of the acquiring or succeeding corporation (or an affiliate thereof) equivalent in value (as determined by the Board) to the per share consideration received by holders of outstanding
shares of Common Stock as a result of the Reorganization Event. 
 (3) Consequences of a Reorganization Event on Restricted Stock
Awards. Upon the occurrence of a Reorganization Event other than a liquidation or dissolution of the Company, the repurchase and other rights of the Company under each outstanding Restricted Stock Award shall inure to the benefit of the
Company’s successor and shall, unless the Board determines otherwise, apply to the cash, securities or other property which the Common Stock was converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the
same extent as they applied to the Common Stock subject to such Restricted Stock Award. Upon the occurrence of a Reorganization Event involving the liquidation or dissolution of the Company, except to the extent specifically provided to the contrary
in the instrument evidencing any Restricted Stock Award or any other agreement between a Participant and the Company, all restrictions and conditions on all Restricted Stock Awards then outstanding shall automatically be deemed terminated or
satisfied. 

  
 -6- 

 9. General Provisions Applicable to Awards 

(a) Transferability of Awards. Except as the Board may otherwise determine or provide in an Award, Awards shall not be sold, assigned,
transferred, pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution or, other than in the case of an Incentive Stock Option, pursuant
to a qualified domestic relations order, and, during the life of the Participant, shall be exercisable only by the Participant. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees.

 (b) Documentation. Each Award shall be evidenced in such form (written, electronic or otherwise) as the Board shall determine.
Each Award may contain terms and conditions in addition to those set forth in the Plan. 
 (c) Board Discretion. Except as otherwise
provided by the Plan, each Award may be made alone or in addition or in relation to any other Award. The terms of each Award need not be identical, and the Board need not treat Participants uniformly. 

(d) Termination of Status. The Board shall determine the effect on an Award of the disability, death, termination or other cessation of
employment, authorized leave of absence or other change in the employment or other status of a Participant and the extent to which, and the period during which, the Participant, or the Participant’s legal representative, conservator, guardian
or Designated Beneficiary, may exercise rights under the Award. 
 (e) Withholding. The Participant must satisfy all applicable
federal, state, and local or other income and employment tax withholding obligations before the Company will deliver stock certificates or otherwise recognize ownership of Common Stock under an Award. The Company may decide to satisfy the
withholding obligations through additional withholding on salary or wages. If the Company elects not to or cannot withhold from other compensation, the Participant must pay the Company the full amount, if any, required for withholding or have a
broker tender to the Company cash equal to the withholding obligations. Payment of withholding obligations is due before the Company will issue any shares on exercise or release from forfeiture of an Award or, if the Company so requires, at the same
time as is payment of the exercise price unless the Company determines otherwise. If provided for in an Award or approved by the Board in its sole discretion, a Participant may satisfy such tax obligations in whole or in part by delivery of shares
of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value; provided, however, except as otherwise provided by the Board, that the total tax withholding where stock is being used to
satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such
supplemental taxable income). Shares surrendered to satisfy tax withholding requirements cannot be subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements. 

  
 -7- 

 (f) Amendment of Award. 

(1) The Board may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another Award of the
same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option. The Participant’s consent to such action shall be required unless (i) the Board determines
that the action, taking into account any related action, would not materially and adversely affect the Participant’s rights under the Plan or (ii) the change is permitted under Section 8 hereof. 

(2) The Board may, without stockholder approval, amend any outstanding Award granted under the Plan to provide an exercise price per share
that is lower than the then-current exercise price per share of such outstanding Award. The Board may also, without stockholder approval, cancel any outstanding award (whether or not granted under the Plan) and grant in substitution therefor new
Awards under the Plan covering the same or a different number of shares of Common Stock and having an exercise price per share lower than the then-current exercise price per share of the cancelled award. 

(g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan or to
remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal
matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed
and delivered to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations. 

(h) Acceleration. The Board may at any time provide that any Award shall become immediately exercisable in full or in part, free of
some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be. 
 10. Miscellaneous 

(a) No Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of an Award
shall not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant
free from any liability or claim under the Plan: except as expressly provided in the applicable Award. 
 (b) No Rights As
Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until becoming
the record holder of such shares. 
 (c) Effective Date and Term of Plan. The Plan shall become effective on the date on which it is
adopted by the Board. No Awards shall be granted under the Plan after the expiration 

  
 -8- 

 
of 10 years from the earlier of (i) the date on which the Plan was adopted by the Board or (ii) the date the Plan was approved by the Company’s stockholders, but Awards previously
granted may extend beyond that date. 
 (d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion
thereof at any time; provided that if at any tune the approval of the Company’s stockholders is required as to any modification or amendment under Section 422 of the Code or any successor provision with respect to Incentive Stock Options,
the Board may not effect such modification or amendment without such approval. Unless otherwise specified in the amendment, any amendment to the Plan adopted in accordance with this Section 10(d) shall apply to, and be binding on the holders
of, all Awards outstanding under the Plan at the time the amendment is adopted, provided the Board determines that such amendment does not materially and adversely affect the rights of Participants under the Plan. 

(e) Authorization of Sub-Plans. The Board may from time to time establish one or more sub-plans or procedures under the Plan for
purposes of satisfying applicable blue sky. securities or tax laws of various jurisdictions or to recognize differences in laws, rules, regulations or customs of such foreign jurisdictions with respect to tax, securities, currency, employee benefit
or other matters. The Board shall establish such sub-plans by adopting supplements to this Plan containing (i) such limitations on the Board’s discretion under the Plan as the Board deems necessary or desirable or (ii) such additional
terms and conditions not otherwise inconsistent with the Plan as the Board shall deem necessary or desirable. All supplements adopted by the Board shall be deemed to be part of the Plan, but each supplement shall apply only to Participants within
the affected jurisdiction and the Company shall not be required to provide copies of any supplement to Participants in any jurisdiction which is not the subject of such supplement. 

(f) Compliance with Code Section 409A. No Award shall provide for deferral of compensation that does not comply with
Section 409A of the Code, unless the Board, at the time of grant, specifically provides that the Award is not intended to comply with Section 409A of the Code. The Company shall have no liability to a Participant, or any other party, if an
Award that is intended to be exempt from, or compliant with, Section 409A is not so exempt or compliant or for any action taken by the Board. 

(g) Currency Exchange Rates. Except as otherwise determined by the Board, all monetary values with respect to Awards, including without
limitation the Fair Market Value, the exercise price and issue price, shall be stated in United States Dollars. In the event that any such amount is in fact to be paid in any other currency, the exchange rate shall be the last known representative
rate of the United States Dollar to such other currency on the date of payment. 
 (h) Governing Law. The provisions of the Plan and
all Awards made hereunder shall be governed by and interpreted in accordance with the laws of the State of Delaware, excluding choice-of-law principles of the law of such state that would require the application of the laws of a jurisdiction other
than such state. 

  
 -9- 

 CHIASMA, INC. 

AMENDMENT TO THE 
 2008
STOCK INCENTIVE PLAN 
 The Chiasma, Inc. 2008 Stock Incentive Plan (the “Plan”) is hereby amended as follows: 

The first sentence of Section 4(a) of the Plan is hereby amended and restated in its entirety to read as follows: 

“Subject to adjustment under Section 8, Awards may be made under the Plan for up to 38,230,000 shares of common stock, $0.01 par value
per share, of the Company (the “Common Stock”).” 
  

			
	ADOPTED BY BOARD OF DIRECTORS:		April 14, 2015
		
	ADOPTED BY STOCKHOLDERS:		May 7, 2015

 CHIASMA, INC. 

Incentive Stock Option Agreement 

Granted Under 2008 Stock Incentive Plan 
  

	1.	Grant of Option. 

 This agreement evidences the grant by Chiasma, Inc., a Delaware
corporation (the “Company”), on             , 20[    ] (the “Grant Date”) to
[            ], an employee of the Company (the “Participant”), of an option to purchase, in whole or in part, on the terms provided herein and in the Company’s 2008 Stock
Incentive Plan (the “Plan”), a total of [                ] shares (the “Shares”) of common stock, $0.01 par value per share, of the Company
(“Common Stock”) at $[            ] per Share. Unless earlier terminated, this option shall expire at 5:00 p.m., Eastern time, on
[                ] (the “Final Exercise Date”). 

It is intended that the option evidenced by this agreement shall be an incentive stock option as defined in Section 422 of the Internal
Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”). Except as otherwise indicated by the context, the term “Participant”, as used in this option, shall be deemed to include any person who
acquires the right to exercise this option validly under its terms. 
  

	2.	Vesting Schedule. 

 This option will become exercisable (“vest”) as to [25]% of
the original number of Shares on the first anniversary of the Grant Date and as to an additional [2.0833]% of the original number of Shares at the end of each successive [month] following the first anniversary of the Grant Date until the [fourth]
anniversary of the Grant Date. 
 The right of exercise shall be cumulative so that to the extent the option is not exercised in any period
to the maximum extent permissible it shall continue to be exercisable, in whole or in part, with respect to all Shares for which it is vested until the earlier of the Final Exercise Date or the termination of this option under Section 3 hereof
or the Plan. 
  

	3.	Exercise of Option. 

 (a) Form of Exercise. Each election to exercise this option
shall be in writing, signed by the Participant, and received by the Company at its principal office, accompanied by this agreement, and payment in full in the manner provided in the Plan. The Participant may purchase less than the number of shares
covered hereby, provided that no partial exercise of this option may be for any fractional share or for fewer than ten whole shares. 
 (b)
Continuous Relationship with the Company Required. Except as otherwise provided in this Section 3, this option may not be exercised unless the Participant, at the time he or she exercises this option, is, and has been at all times since
the Grant Date, an employee or officer of, or consultant or advisor to, the Company or any parent or subsidiary of the Company as defined in Section 424(e) or (f) of the Code (an “Eligible Participant”). 

 (c) Termination of Relationship with the Company. If the Participant ceases to be an
Eligible Participant for any reason, then, except as provided in paragraphs (d) and (e) below, the right to exercise this option shall terminate three months after such cessation (but in no event after the Final Exercise Date),
provided that this option shall be exercisable only to the extent that the Participant was entitled to exercise this option on the date of such cessation. Notwithstanding the foregoing, if the Participant, prior to the Final Exercise
Date, violates the non-competition or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company, the right to exercise this option shall terminate
immediately upon such violation. 
 (d) Exercise Period Upon Death or Disability. If the Participant dies or becomes disabled (within
the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or she is an Eligible Participant and the Company has not terminated such relationship for “cause” as specified in paragraph (e) below, this
option shall be exercisable, within the period of one year following the date of death or disability of the Participant, by the Participant (or in the case of death by an authorized transferee), provided that this option shall be
exercisable only to the extent that this option was exercisable by the Participant on the date of his or her death or disability, and further provided that this option shall not be exercisable after the Final Exercise Date. 

(e) Termination for Cause. If, prior to the Final Exercise Date, the Participant’s employment is terminated by the Company for
Cause (as defined below), the right to exercise this option shall terminate immediately upon the effective date of such termination of employment. If, prior to the Final Exercise Date, the Participant is given notice by the Company of the
termination of his or her employment by the Company for Cause, and the effective date of such employment termination is subsequent to the date of delivery of such notice, the right to exercise this option shall be suspended from the time of the
delivery of such notice until the earlier of (i) such time as it is determined or otherwise agreed that the Participant’s employment shall not be terminated for Cause as provided in such notice or (ii) the effective date of such
termination of employment (in which case the right to exercise this option shall, pursuant to the preceding sentence, terminate upon the effective date of such termination of employment). If the Participant is party to an employment or severance
agreement with the Company that contains a definition of “Cause” for termination of employment, “Cause” shall have the meaning ascribed to such term in such agreement. Otherwise, “Cause” shall mean willful misconduct by
the Participant or willful failure by the Participant to perform his or her responsibilities to the Company (including, without limitation, breach by the Participant of any provision of any employment, consulting, advisory, nondisclosure,
non-competition or other similar agreement between the Participant and the Company), as determined by the Company, which determination shall be conclusive. The Participant shall be considered to have been discharged for Cause if the Company
determines, within 30 days after the Participant’s resignation, that discharge for cause was warranted. 
  

	4.	Company Right of First Refusal. 

 (a) Notice of Proposed Transfer. If the
Participant proposes to sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively, “transfer”) any Shares acquired upon exercise of this option, then the Participant shall first
give 

  
 2 

 
written notice of the proposed transfer (the “Transfer Notice”), to the Company. The Transfer Notice shall name the proposed transferee and state the number of such Shares the
Participant proposes to transfer (the “Offered Shares”), the price per share and all other material terms and conditions of the transfer. 

(b) Company Right to Purchase. For 30 days following its receipt of such Transfer Notice, the Company shall have the option to purchase
all or part of the Offered Shares at the price and upon the terms set forth in the Transfer Notice. In the event the Company elects to purchase all or part of the Offered Shares, it shall give written notice of such election to the Participant
within such 30-day period. Within 10 days after his or her receipt of such notice, the Participant shall tender to the Company at its principal offices the certificate or certificates representing the Offered Shares to be purchased by the Company,
duly endorsed in blank by the Participant or with duly endorsed stock powers attached thereto, all in a form suitable for transfer of the Offered Shares to the Company. Promptly following receipt of such certificate or certificates, the Company
shall deliver or mail to the Participant a check in payment of the purchase price for such Offered Shares; provided that if the terms of payment set forth in the Transfer Notice were other than cash against delivery, the Company may
pay for the Offered Shares on the same terms and conditions as were set forth in the Transfer Notice; and provided further that any delay in making such payment shall not invalidate the Company’s exercise of its option to purchase
the Offered Shares. 
 (c) Shares Not Purchased By Company. If the Company does not elect to acquire all of the Offered Shares, the
Participant may, within the 30-day period following the expiration of the option granted to the Company under subsection (b) above, transfer the Offered Shares which the Company has not elected to acquire to the proposed transferee,
provided that such transfer shall not be on terms and conditions more favorable to the transferee than those contained in the Transfer Notice. Notwithstanding any of the above, all Offered Shares transferred pursuant to this
Section 4 shall remain subject to the right of first refusal set forth in this. Section 4 and such transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that such transferee shall be
bound by all of the terms and conditions of this Section 4. 
 (d) Consequences of Non-Delivery. After the time at which the
Offered Shares are required to be delivered to the Company for transfer to the Company pursuant to subsection (b) above, the Company shall not pay any dividend to the Participant on account of such Offered Shares or permit the Participant to
exercise any of the privileges or rights of a stockholder with respect to such Offered Shares, but shall, insofar as permitted by law, treat the Company as the owner of such Offered Shares. 

(e) Exempt Transactions. The following transactions shall be exempt from the provisions of this Section 4: 

(1) any transfer of Shares to or for the benefit of any spouse, child or grandchild of the Participant, or to a trust for their benefit; 

(2) any transfer pursuant to an effective registration statement filed by the Company under the Securities Act of 1933, as amended (the
“Securities Act”); and 

  
 3 

 (3) the sale of all or substantially all of the outstanding shares of capital stock of the
Company (including pursuant to a merger or consolidation); 
 provided, however, that in the case of a transfer pursuant to clause
(1) above, such Shares shall remain subject to the right of first refusal set forth in this Section 4 and such transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that such transferee
shall be bound by all of the terms and conditions of this Section 4. 
 (f) Assignment of Company Right. The Company may assign
its rights to purchase Offered Shares in any particular transaction under this Section 4 to one or more persons or entities. 
 (g)
Termination. The provisions of this Section 4 shall terminate upon the earlier of the following events: 
 (1) the closing of
the sale of shares of Common Stock in an underwritten public offering pursuant to an effective registration statement filed by the Company under the Securities Act; or 

(2) the sale of all or substantially all of the outstanding shares of capital stock, assets or business of the Company, by merger,
consolidation, sale of assets or otherwise (other than a merger or consolidation in which all or substantially all of the individuals and entities who were beneficial owners of the Company’s voting securities immediately prior to such
transaction beneficially own, directly or indirectly, more than 75% (determined on an as-converted basis) of the outstanding securities entitled to vote generally in the election of directors of the resulting, surviving or acquiring corporation in
such transaction). 
 (h) No Obligation to Recognize Invalid Transfer. The Company shall not be required (1) to transfer on its
books any of the Shares which shall have been sold or transferred in violation of any of the provisions set forth in this Section 4, or (2) to treat as owner of such Shares or to pay dividends to any transferee to whom any such Shares
shall have been so sold or transferred. 
 (i) Legends. The certificate representing Shares shall bear a legend substantially in the
following form (in addition to, or in combination with, any legend required by applicable federal and state securities laws and agreements relating to the transfer of the Company securities): 

“The shares represented by this certificate are subject to a right of first refusal in favor of the Company, as provided in a certain
stock option agreement with the Company.” 
  

	5.	Agreement in Connection with Initial Public Offering. 

 The Participant agrees, in connection with the
initial underwritten public offering of the Common Stock pursuant to a registration statement under the Securities Act, (i) not to (a) offer, pledge, announce the intention to sell, 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, 

  
 4 

 
or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any other securities of the Company or (b) enter into any swap or other agreement that transfers,
in whole or in part, any of the economic consequences of ownership of shares of Common Stock or other securities of the Company, whether any transaction described in clause (a) or (b) is to be settled by delivery of securities, in cash or
otherwise, during the period beginning on the date of the filing of such registration statement with the Securities and Exchange Commission and ending 180 days after the date of the final prospectus relating to the offering (plus up to an additional
34 days to the extent requested by the managing underwriters for such offering in order to address Rule 2711(f) of the National Association of Securities Dealers, Inc. or any similar successor provision), and (ii) to execute any agreement
reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering. The Company may impose stop-transfer instructions with respect to the shares of Common Stock or other securities subject
to the foregoing restriction until the end of the “lock-up” period. 
  

	6.	Tax Matters. 

 (a) Withholding. No Shares will be issued pursuant to the exercise
of this option unless and until the Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required by law to be withheld in respect of this option. 

(b) Disqualifying Disposition. If the Participant disposes of Shares acquired upon exercise of this option within two years from the
Grant Date or one year after such Shares were acquired pursuant to exercise of this option, the Participant shall notify the Company in writing of such disposition. 
  

	7.	Nontransferability of Option. 

 This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the lifetime of the Participant, this option shall be exercisable only by the
Participant. 
  

	8.	Provisions of the Plan. 

 This option is subject to the provisions of the Plan (including
the provisions relating to amendments to the Plan), a copy of which is furnished to the Participant with this option. 

  
 5 

 IN WITNESS WHEREOF, the Company has caused this option to be executed under its corporate seal by
its duly authorized officer. This option shall take effect as a sealed instrument. 
  

			
	CHIASMA, INC.

 
			
		
	By:		  

 
			
		
	Name:		  

 
			
		
	Title:		  

  
 6 

 PARTICIPANT’S ACCEPTANCE 

The undersigned hereby accepts the foregoing option and agrees to the terms and conditions thereof. The undersigned hereby acknowledges
receipt of a copy of the Company’s 2008 Stock Incentive Plan. 
  

			
	PARTICIPANT:

 
			
	
	  

		
	Address:		  

		
			  

  
 7 

 CHIASMA, INC. 

Nonstatutory Stock Option Agreement 

Granted Under 2008 Stock Incentive Plan 
  

	1.	Grant of Option. 

 This agreement evidences the grant by Chiasma, Inc., a
Delaware corporation (the “Company”), on             , 200[ ] (the “Grant Date”) to [            ] an
[employee], [consultant], [director] of the Company (the “Participant”), of an option to purchase, in whole or in part, on the terms provided herein and in the Company’s 2008 Stock Incentive Plan (the “Plan”), a total of
[            ] shares (the “Shares”) of common stock, $0.01 par value per share, of the Company (“Common Stock”) at
$[            ] per Share. Unless earlier terminated, this option shall expire at 5:00 p.m., Eastern time, on [            ]
(the “Final Exercise Date”). 
 It is intended that the option evidenced by this agreement shall not be an incentive stock
option as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”). Except as otherwise indicated by the context, the term “Participant”, as used in
this option, shall be deemed to include any person who acquires the right to exercise this option validly under its terms. 
  

	2.	Vesting Schedule. 

 This option will become exercisable (“vest”) as to [25]% of
the original number of Shares on the first anniversary of the Grant Date and as to an additional [2.0833]% of the original number of Shares at the end of each successive [month] following the first anniversary of the Grant Date until the [fourth]
anniversary of the Grant Date. 
 The right of exercise shall be cumulative so that to the extent the option is not exercised in any period
to the maximum extent permissible it shall continue to be exercisable, in whole or in part, with respect to all Shares for which it is vested until the earlier of the Final Exercise Date or the termination of this option under Section 3 hereof
or the Plan. 
  

	3.	Exercise of Option. 

 (a) Form of Exercise. Each election to exercise this option
shall be in writing, signed by the Participant, and received by the Company at its principal office, accompanied by this agreement, and payment in full in the manner provided in the Plan. The Participant may purchase less than the number of shares
covered hereby, provided that no partial exercise of this option may be for any fractional share or for fewer than ten whole shares. 
 (b)
Continuous Relationship with the Company Required. Except as otherwise provided in this Section 3, this option may not be exercised unless the Participant, at the time he or she exercises this option, is, and has been at all times since
the Grant Date, an employee or officer of, or consultant or advisor to, the Company or any other entity the employees, officers, directors, consultants, or advisors of which are eligible to receive option grants under the Plan (an “Eligible
Participant”). 

 (c) Termination of Relationship with the Company. If the Participant ceases to be an
Eligible Participant for any reason, then, except as provided in paragraphs (d) and (e) below, the right to exercise this option shall terminate three months after such cessation (but in no event after the Final Exercise Date),
provided that this option shall be exercisable only to the extent that the Participant was entitled to exercise this option on the date of such cessation. Notwithstanding the foregoing, if the Participant, prior to the Final Exercise
Date, violates the non-competition or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company, the right to exercise this option shall terminate
immediately upon such violation. 
 (d) Exercise Period Upon Death or Disability. If the Participant dies or becomes disabled (within
the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or she is an Eligible Participant and the Company has not terminated such relationship for “cause” as specified in paragraph (e) below, this
option shall be exercisable, within the period of one year following the date of death or disability of the Participant, by the Participant (or in the case of death by an authorized transferee), provided that this option shall be
exercisable only to the extent that this option was exercisable by the Participant on the date of his or her death or disability, and further provided that this option shall not be exercisable after the Final Exercise Date. 

(e) Termination for Cause. If, prior to the Final Exercise Date, the Participant’s employment or other relationship with the
Company is terminated by the Company for Cause (as defined below), the right to exercise this option shall terminate immediately upon the effective date of such termination of employment or other relationship. If, prior to the Final Exercise Date,
the Participant is given notice by the Company of the termination of his or her employment or other relationship by the Company for Cause, and the effective date of such employment or other termination is subsequent to the date of the delivery of
such notice, the right to exercise this option shall be suspended from the time of the delivery of such notice until the earlier of (i) such time as it is determined or otherwise agreed that the Participant’s employment or other
relationship shall not be terminated for Cause as provided in such notice or (ii) the effective date of such termination of employment or other relationship (in which case the right to exercise this option shall, pursuant to the preceding
sentence, terminate immediately upon the effective date of such termination of employment or other relationship). If the Participant is party to an employment, consulting or severance agreement with the Company that contains a definition of
“cause” for termination of employment or other relationship, “Cause” shall have the meaning ascribed to such term in such agreement. Otherwise, “Cause” shall mean willful misconduct by the Participant or willful failure
by the Participant to perform his or her responsibilities to the Company (including, without limitation, breach by the Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or other similar agreement
between the Participant and the Company), as determined by the Company, which determination shall be conclusive. The Participant shall be considered to have been discharged for “Cause” if the Company determines, within 30 days after the
Participant’s resignation, that discharge for cause was warranted. 

  
 -2- 

	4.	Company Right of First Refusal 

 (a) Notice of Proposed Transfer. If the
Participant proposes to sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively, “transfer”) any Shares acquired upon exercise of this option, then the Participant shall first
give written notice of the proposed transfer (the “Transfer Notice”) to the Company. The Transfer Notice shall name the proposed transferee and state the number of such Shares the Participant proposes to transfer (the “Offered
Shares”), the price per share and all other material terms and conditions of the transfer. 
 (b) Company Right to Purchase. For
30 days following its receipt of such Transfer Notice, the Company shall have the option to purchase all or part of the Offered Shares at the price and upon the terms set forth in the Transfer Notice. In the event the Company elects to purchase all
or part of the Offered Shares, it shall give written notice of such election to the Participant within such 30-day period. Within 10 days after his or her receipt of such notice, the Participant shall tender to the Company at its principal offices
the certificate or certificates representing the Offered Shares to be purchased by the Company, duly endorsed in blank by the Participant or with duly endorsed stock powers attached thereto, all in a form suitable for transfer of the Offered Shares
to the Company. Promptly following receipt of such certificate or certificates, the Company shall deliver or mail to the Participant a check in payment of the purchase price for such Offered Shares; provided that if the terms of
payment set forth in the Transfer Notice were other than cash against delivery, the Company may pay for the Offered Shares on the same terms and conditions as were set forth in the Transfer Notice; and provided further that any delay
in making such payment shall not invalidate the Company’s exercise of its option to purchase the Offered Shares. 
 (c) Shares Not
Purchased By Company. If the Company does not elect to acquire all of the Offered Shares, the Participant may, within the 30-day period following the expiration of the option granted to the Company under subsection (b) above, transfer the
Offered Shares which the Company has not elected to acquire to the proposed transferee, provided that such transfer shall not be on terms and conditions more favorable to the transferee than those contained in the Transfer Notice.
Notwithstanding any of the above, all Offered Shares transferred pursuant to this Section 4 shall remain subject to the right of first refusal set forth in this Section 4 and such transferee shall, as a condition to such transfer, deliver
to the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this Section 4. 

(d) Consequences of Non-Delivery. After the time at which the Offered Shares are required to be delivered to the Company for transfer to
the Company pursuant to subsection (b) above, the Company shall not pay any dividend to the Participant on account of such Offered Shares or permit the Participant to exercise any of the privileges or rights of a stockholder with respect to
such Offered Shares, but shall, insofar as permitted by law, treat the Company as the owner of such Offered Shares. 

  
 -3- 

 (e) Exempt Transactions. The following transactions shall be exempt from the provisions of
this Section 4: 
 (1) any transfer of Shares to or for the benefit of any spouse, child or grandchild of the Participant, or to a trust
for their benefit; 
 (2) any transfer pursuant to an effective registration statement filed by the Company under the Securities Act of 1933,
as amended (the “Securities Act”); and 
 (3) the sale of all or substantially all of the outstanding shares of capital stock of
the Company (including pursuant to a merger or consolidation); 
 provided, however, that in the case of a transfer pursuant to
clause (1) above, such Shares shall remain subject to the right of first refusal set forth in this Section 4 and such transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that such
transferee shall be bound by all of the terms and conditions of this Section 4. 
 (f) Assignment of Company Right. The Company
may assign its rights to purchase Offered Shares in any particular transaction under this Section 4 to one or more persons or entities. 

(g) Termination. The provisions of this Section 4 shall terminate upon the earlier of the following events: 

(1) the closing of the sale of shares of Common Stock in an underwritten public offering pursuant to an effective registration statement filed
by the Company under the Securities Act; or 
 (2) the sale of all or substantially all of the outstanding shares of capital stock, assets or
business of the Company, by merger, consolidation, sale of assets or otherwise (other than a merger or consolidation in which all or substantially all of the individuals and entities who were beneficial owners of the Company’s voting securities
immediately prior to such transaction beneficially own, directly or indirectly, more than 75% (determined on an as-converted basis) of the outstanding securities entitled to vote generally in the election of directors of the resulting, surviving or
acquiring corporation in such transaction). 
 (h) No Obligation to Recognize Invalid Transfer. The Company shall not be required
(1) to transfer on its books any of the Shares which shall have been sold or transferred in violation of any of the provisions set forth in this Section 4, or (2) to treat as owner of such Shares or to pay dividends to any transferee
to whom any such Shares shall have been so sold or transferred. 
 (i) Legends. The certificate representing Shares shall bear a
legend substantially in the following form (in addition to, or in combination with, any legend required by applicable federal and state securities laws and agreements relating to the transfer of the Company securities): 

“The shares represented by this certificate are subject to a right of first refusal in favor of the Company, as provided in a certain
stock option agreement with the Company.” 

  
 -4- 

	5.	Agreement in Connection with Initial Public Offering 

 The Participant agrees, in
connection with the initial underwritten public offering of the Common Stock pursuant to a registration statement under the Securities Act, (i) not to (a) offer, pledge, announce the intention to sell, 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 other securities of the Company
or (b) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of shares of Common Stock or other securities of the Company, whether any transaction described in clause (a)
or (b) is to be settled by delivery of securities, in cash or otherwise, during the period beginning on the date of the filing of such registration statement with the Securities and Exchange Commission and ending 180 days after the date of the
final prospectus relating to the offering (plus up to an additional 34 days to the extent requested by the managing underwriters for such offering in order to address Rule 2711(f) of the National Association of Securities Dealers, Inc. or any
similar successor provision), and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering. The Company may impose stop-transfer instructions
with respect to the shares of Common Stock or other securities subject to the foregoing restriction until the end of the “lock-up” period. 
  

	6.	Withholding. 

 No Shares will be issued pursuant to the exercise of this option unless
and until the Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required by law to be withheld in respect of this option. 

 

	7.	Nontransferability of Option. 

 This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the lifetime of the Participant, this option shall be exercisable only by the
Participant. 
  

	8.	Provisions of the Plan. 

 This option is subject to the provisions of the Plan (including the provisions
relating to amendments to the Plan), a copy of which is furnished to the Participant with this option. 

  
 -5- 

 IN WITNESS WHEREOF, the Company has caused this option to be executed under its corporate seal by
its duly authorized officer. This option shall take effect as a sealed instrument. 
  

			
	CHIASMA, INC.
		
	 By:
	 	  

		 	
Name:                        
                                         
                 

		 	
Title:                        
                                         
                   

  
 -6- 

 PARTICIPANT’S ACCEPTANCE 

The undersigned hereby accepts the foregoing option and agrees to the terms and conditions thereof. The undersigned hereby acknowledges
receipt of a copy of the Company’s 2008 Stock Incentive Plan. 
  

	
	PARTICIPANT:
	  

	
	Address:                                     
                                         
        
	                                      
                                         
                      

  
 -7- 

 CHIASMA, INC. 

2008 STOCK INCENTIVE PLAN 

SUB-PLAN FOR PARTICIPANTS IN ISRAEL 
 This
Sub-Plan (the “Sub-Plan”) is a supplement to the 2008 Stock Incentive Plan (the “Plan”) for purposes of all Awards granted under the Plan to Participants who are subject to Israeli taxation. This Sub-Plan shall
apply to all Awards that the Board determines shall be governed by the Sub-Plan. 
 1. Definitions 

As used herein, the following terms shall have the meanings set forth below, unless the context clearly indicates to the contrary. All capitalized terms, to
the extent not defined herein, shall have the meanings set forth in the Plan. 
  

	1.1	“Affiliated Company” — for purposes of eligibility under the Sub-Plan shall mean the Company’s present or future parent or subsidiary corporations, provided however that in the event of any
other business venture, such other business venture shall be an “employing company” within the meaning of such term in Section 102 of the Ordinance. 

 

	1.2	“Fair Market Value” — solely for the purposes of 102 Trustee Awards, if and to the extent Section 102 prescribes a specific mechanism for determining the Fair Market Value of the Awards, then
notwithstanding Section 5(c) of the Plan, the Fair Market Value of 102 Trustee Awards shall be as prescribed in Section 102, if applicable. 

  

	1.3	“102 Non-Trustee Award” — an Award granted in accordance with and pursuant to Section 102, not through a Trustee. 

 

	1.4	“3(i) Award” — an Award granted pursuant to Section 3(i) of the Ordinance. 

  

	1.5	“Ordinance” — the Israeli Income Tax Ordinance [New Version], 1961, and the rules and regulations promulgated thereunder, as are in effect from time to time, and any similar successor rules and
regulations. 

  

	1.6	“Restricted Period” — as defined in Section 4.3 below. 

  

	1.7	“Section 102” — Section 102 of the Ordinance and the rules and regulations promulgated thereunder, as are in effect from time to time, and any similar successor rules and regulations.

  

	1.8	“Trustee” — the trustee designated or replaced by the Company and/or applicable Affiliated Company for the purposes of the Plan and approved by the Israeli tax authorities, pursuant to and in
accordance with the provisions of Section 102. 

  

	1.9	“102 Trustee Award” — an Award granted through a Trustee in accordance with and pursuant to Section 102, 

 2. General 
  

	2.1	The purpose of this Sub-Plan is to establish certain rules and limitations applicable to Awards granted to Participants, the grant of an Award to whom (or the exercise/issuance thereof by whom) is subject to taxation by
the Israeli Income Tax (“Israeli Participants”), in order that such Awards may comply with the requirements of Israeli Law, including, if applicable, Section 102. 

 

	2.2	The Plan and this Sub-Plan are complementary to each other and shall be read and deemed as one. In the event of any contradiction, whether explicit or implied, between the provisions of this Sub-Plan and the Plan, the
provisions of this Sub-Plan shall prevail with respect to Awards granted to Israeli Participants. 

  

	2.3	Awards may be granted under this Sub-Plan in one of the following tax tracks, at the Company’s discretion and subject to applicable restrictions or limitations as provided in applicable law, including without
limitation any applicable restrictions and limitations in Section 102 regarding the eligibility of Participant to each of the following tax tracks, based on their capacity and relationship towards the Company: 

 

	 	(i)	102 Trustee Awards — in such tax track as determined in accordance with the Election; or 

  

	 	(ii)	102 Non-Trustee Awards; or 

  

	 	(iii)	3(i) Awards. 

 For avoidance of doubt, the designation of Awards to any of the above tax tracks
shall be subject to the terms and conditions set forth in Ordinance. 
  

	2.4	Each Participant shall be required to execute, in addition to the Award Agreement, any and all other documents required by the Company or any Affiliated Company, whether before or after the grant of the Awards
(including without limitation any customary documents and undertakings towards the Trustee, if applicable, and/or any tax authorities). Notwithstanding anything to the contrary in the Plan or in this Sub-Plan, no Award shall be deemed granted unless
all documents required by the Company or any Affiliated Company to be signed by the Participant prior to or upon the grant of such Award, shall have been duly signed and delivered to the Company or such Affiliated Company. 

3. Administration 
 Without derogating from the
powers and authorities of the Board detailed in the Plan, the Board shall have the full and final power and, in its discretion, without the need for shareholders’ approval, unless such approval is required to comply with applicable laws, to
administer this Sub-Plan and to take all actions related hereto and to such administration, including without limitation the performance, from time to time and at any time, of any and all of the following: 

 

	3.1	the determination of the specific tax track (as described in Section 2.3 above) in which the Awards are to be issued. 

  

	3.2	the Election; 

  

	3.3	the appointment of the Trustee; 

  
 -2- 

	3.4	the adoption of forms of Awards Agreements, to be applied with respect to Israeli Participants, incorporating and reflecting, inter alia, relevant provisions regarding the grant of Awards in accordance with this
Sub-Plan, and the amendment or modification from time to time of the terms thereof. 

 4. 102 Trustee Awards 

4.1 Grant in the Name of Trustee: 

Notwithstanding anything to the contrary in the Plan, 102 Trustee Awards granted hereunder shall be granted to, and if applicable the Common
Stock, issued pursuant to the exercise thereof (including bonus shares), issued to, the Trustee, and they shall be registered in the name of the Trustee, who shall hold them in trust until such time as they are released by the transfer or sale
thereof by the Trustee, in the case the requirements of Section 102 for 102 Trustee Awards are not met, than the 102 Trustee Awards may be regarded as 102 Non-Trustee Awards, all in accordance with the provisions of Section 102. 

Notwithstanding anything to the contrary in the Plan, the Date of Grant of a 102 Trustee Awards shall be the date determined by the Board to be
the effective date of the grant of the 102 Trustee Awards to a Participant, or, if the Board has not determined such effective date, the date of the resolution of the Board approving the grant of such Award, which in the case of 102 Trustee Awards
shall not be before the lapse of 30 days from the date upon which the Plan is first submitted to the relevant Israeli Tax Authorities. 
 4.2
Exercise of 102 Trustee Awards: 
 Unless other procedures shall be determined from time to time by the Board and notified to
the Participant, the mechanism of exercising vested 102 Trustee Awards shall be in accordance with the provisions of the Plan, except that any notice of exercise of 102 Trustee Award shall be made in such form and method in compliance with the
provisions of Section 102 and shall also be delivered in copy to the authorized representative of the Affiliated Company with which the Participant is employed and/or engaged, if applicable, and to the Trustee. 

4.3 Restrictions on Transfer: 
  

	 	(a)	102 Trustee Awards and if applicable the Common Stock issued pursuant to the exercise thereof, and all rights attached thereto (including bonus shares), shall be held by the Trustee for such period of time as required
by the provisions of Section 102 applicable to Awards granted through a Trustee in the applicable tax track, as per the Election (the “Restricted Period”). 

 

	 	(b)	 Subject to the provisions of Section 102 and any rules or regulation or orders or procedures promulgated thereunder, the Israeli Participant
shall provide the Company and the Trustee with a written undertaking and confirmation under which the Israeli Participant confirms that he/she is aware of the provisions of Section 102 and the Elected tax track and agrees to the provisions of
the Trust Note between the Company and the Trustee, and undertakes not to release, by sale or transfer, the 102 Trustee Award, and the Common Stock issued pursuant to the exercise of Options and/or Restricted Stock or Restricted Stock Units, and all

  
 -3- 

	 	
rights attached thereto (including bonus shares) prior to the lapse of the Restricted Period. The Israeli Participant shall not be entitled to sell or release from trust the 102 Trustee Award,
nor the Common Stock issued pursuant to the exercise thereof, nor any right attached thereto (including bonus shares), nor to request the transfer or sale of any of the same to any third party, before the lapse of the Restricted Period.
Notwithstanding the above, if any such sale or transfer occurs during the Restricted Period, the sanctions under Section 102 of the Ordinance and under any rules or regulation or orders or procedures promulgated thereunder shall apply to and
shall be borne by such Israeli Participant. 

  

	 	(c)	Without derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the applicable Award Agreement and applicable law, the Trustee shall not release, by sale or transfer,
the Common Stock issued pursuant to the exercise of the 102 Trustee Awards, and all rights attached thereto (including bonus shares) to the Israeli Participant or to any third party to whom the Israeli Participant wishes to sell them (unless the
contemplated transfer is by will or laws of descent) unless and until the Trustee has either (i) withheld payment of all taxes required to be paid upon the sale or transfer thereof, if any, or (ii) received confirmation either that such
payment, if any, was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Company and the Trustee. For the removal of doubt, it is clarified that the Trustee may release by sale or transfer
to a third party only the Common Stock issued pursuant to the exercise of Options and/or Restricted Stock or Restricted Stock Units (and not Awards). 

4.4 Rights as Stockholder: 
 Without
derogating from the provisions of the Plan, it is hereby further clarified that with respect to Common Stock issued pursuant to the exercise of 102 Trustee Awards, as long as they are registered in the name of the Trustee, the Trustee shall be the
registered owner of such shares of stock. 
 4.5 Bonus Shares: 

All bonus shares to be issued by the Company, if any, with regard to Common Stock issued pursuant to the exercise of 102 Trustee Awards, while
held by the Trustee, shall be registered in the name of the Trustee; and all provisions applying to such Common Stock shall apply to bonus shares issued by virtue thereof, if any, mutatis mutandis. Said bonus shares shall be subject to the
Restricted Period of the Common Stock by virtue of winch they were issued. 
 4.6 Voting: 

Without derogating from the provisions of Section S below, with respect to Common Stock of 102 Trustee Awards, such Common Stock shall be
voted in accordance with the provisions of Section 102. 

  
 -4- 

 4.7 Conditions of Issuance: 

Without derogating from the provisions of the Plan, and in addition thereto, the arrangements with the tax authorities referred to therein
shall, in the event of 102 Trustee Awards also need to be satisfactory to the Trustee. 
 5. 102 Non-Trustee Awards 

 

	5.1	102 Non-Trustee Awards granted hereunder shall be granted to, and the Common Stock issued pursuant to the exercise thereof, issued to, the Israeli Participant. 

 

	5.2	Without derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the applicable Award Agreement and applicable law, the Common Stock issued pursuant to the exercise of
the 102 Non-Trustee Awards, and all rights attached thereto (including bonus shares) shall not be transferred unless and until the Company has either (a) withheld payment of all taxes required to be paid upon the sale or transfer thereof, if
any, or (b) received confirmation either that such payment, if any, was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Company. 

 

	5.3	An Israeli Participant to whom 102 Non-Trustee Awards are granted must provide, upon termination of his/her employment, a surety or guarantee to the satisfaction of the Company, to secure payment of all taxes which may
become due upon the future transfer of his/her Common Stock to be issued upon the exercise of his/her outstanding 102 Non-Trustee Awards, all in accordance with the provisions of Section 102. 

6. 3(i) Awards 
  

	6.1	3(i) Awards granted hereunder shall be granted to, and the Common Stock issued pursuant thereto issued to, the Israeli Participant. 

 

	6.2	Without derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the applicable Award Agreement and applicable law, the Common Stock issued pursuant to the exercise of
the 3(i) Awards, and all rights attached thereto (including bonus shares) shall not be transferred unless and until the Company has either (a) withheld payment of all taxes required to be paid upon the sale or transfer thereof, if any, or
(b) received confirmation either that such payment, if any, was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Company. 

 

	6.3	The Company may require, as a condition to the grant of the 3(i) Awards, that an Israeli Participant to whom 3(i) Awards are to be granted, provide a surety or guarantee to the satisfaction of the Company, to secure
payment of all taxes which may become due upon the future transfer of his/her Common Stock to be issued upon the exercise of his/her outstanding 3(i) Awards. 

7. Tax Consequences 
 Without
derogating from and in addition to any provisions of the Plan, any and all tax and/or other mandatory payment consequences arising from the grant or exercise of Options and/or issuance of Restricted Stock or Restricted Stock Units, the payment for
or 

  
 -5- 

 
the transfer or sale of Common Stock, or from any other event or act in connection therewith (including without limitation, in the event that the Awards do not qualify under the tax
classification/tax track in which they were intended) whether of the Company, any Affiliated Company, the Trustee or the Israeli Participant, shall be borne solely by the Israeli Participant. The Company, any applicable Affiliated Company, and the
Trustee, may each withhold (including at source), deduct and/or set-off, from any payment made to the Participant, the amount of the taxes and/or other mandatory payments the of which is required with respect to the Awards and/or Common Stock
Furthermore, each Israeli Participant shall indemnify the Company, any applicable Affiliated Company and the Trustee, or any one thereof, and to hold them harmless from any and all liability for any such tax and/or other mandatory payments or
interest or penalty thereupon, including without limitation liabilities relating to the necessity to withhold, or to have withheld, any such tax and/or other mandatory payments from any payment made to the Israeli Participant. 

Without derogating from the aforesaid, each Israeli Participant shall provide the Company and/or any applicable Affiliated Company with any
executed documents, certificates and/or forms that may be required from time to time by the Company or such Affiliated Company in order to determine and/or establish the tax liability of such Israeli Participant. 

Without derogating from the foregoing, it is hereby clarified that the Israeli Participant shall bear and be liable for all tax and other
consequences in the event that his/her 102 Trustee Awards and/or the Common Stocks issued pursuant to the exercise thereof are not held for the entire Restricted Period, all as provided in Section 102. 

The Company and or when applicable the Trustee shall not be required to release any share certificate to a Participant until all required
payments have been fully made. 
 8. Currency Exchange Rates 

Except as otherwise determined by the Board, all monetary values with respect to Awards granted pursuant to this Sub-Plan, including without
limitation the Fair Market Value, the exercise price of any Option and the issue price of any Restricted Stock or Restricted Stock Unit, shall be stated in United States Dollars, hi the event that the exercise price/issued price is in fact to be
paid in New Israeli Shekels, at the sole discretion of the Board, the conversion rate shall be the last known representative rate of the United States Dollars to the New Israeli Shekels on the date of payment. 

9. Subordination to the Ordinance 
  

	9.1	It is clarified that the grant of the 102 Trustee Awards hereunder is subject to the approval by the applicable tax authorities of the Plan, this Sub-Plan and the Trustee, in accordance with Section 102.

  

	9.2	Any provisions of the Section 102 or Section 3(i) of the Ordinance and/or any of the rules or regulations promulgated thereunder, which is not expressly specified in the Plan or in the applicable Award
Agreement, including without limitation any such provision which is necessary in order to receive and/or to keep any tax benefit, shall be deemed incorporated into this Sub-Plan and binding upon the Company, and applicable Affiliated Company and the
Israeli Participant. 

  
 -6- 

	9.3	With regards to 102 Trustee Award, the provisions of the Plan and/or this Sub-Plan and/or the Award Agreement shall be subject to the provisions of Section 102 and the Tax Assessing Officer’s permit, and the
said provisions and permit shall be deemed an integral part of the Plan and of this Sub-Plan and of the Award Agreement. 

  

	9.4	The Awards, the Plan, this Sub-Plan and any applicable Awards Agreements are subject to the applicable provisions of the Ordinance, which shall be deemed an integral part of each, and which shall prevail over any term
that is inconsistent therewith. 

  
 -7- 

 EXHIBIT A 

OPTION AGREEMENT 

Made and entered into in             , as of the
            day of             200    , 

By and between: 
  

			
	Chiasma, Inc., a Delaware corporation (the “Company”)		of the first part

 and 
  

			
	                        		
	of                         (the “Israeli Grantee”)		of the second part

  

			
	WHEREAS		the Company has decided to grant an option in favor of the Israeli Grantee to purchase shares of Common Stock of the Company, having a par value of US $0.01 per share (the “Common Stock”), under and in accordance
with the Company’s 2008 Stock Incentive Plan and the Company’s Sub-Plan for Participants in Israel, both attached hereto as Annex A (hereinafter the “Plan”); and
		
	WHEREAS		the Israeli Grantee has agreed to such grant, subject to all the terms and conditions as set forth in the Plan and as provided herein;

 Now, therefore, in consideration of the premises and mutual covenants and agreements herein contained, the parties agree as
follows: 
  

	1.	The Plan. This Option Agreement and the option evidenced hereby, are subject to the provisions of the Plan (as may be amended from time to time), which shall be deemed an integral part hereof. The grant of
the option, the exercise thereof and all the other terms in connection therewith shall be in accordance with and pursuant to the terms of the Plan. The Israeli Grantee hereby undertakes to comply with the terms of the Plan. Any interpretation of
this Option Agreement will be made in accordance with the Plan, but in the event there is any contradiction between the provisions of this Option Agreement and the Plan, the provisions of this Option Agreement will prevail. 

 

	2.	Grant of Option. After the execution by the Israeli Grantee of this Option Agreement and any other documents required by the Company in connection herewith, the Company shall execute this Option Agreement
evidencing the grant of an option to purchase up to             shares (the “Shares”) of Common Stock (the “Option”) which shall be a:

  

			
	—		102 Trustee Award - subject to the “[Capital Gain / Ordinary Income] Tax Track” of Section 102 - and shall be granted to the Trustee in favor of the Grantee.
	—		102 Non-Trustee Award
	—		3(i) Award
		
			and which shall be governed by and subject to the terms and conditions set forth in the Plan, applicable to such tax track of Option.

  

	3.	Vesting and Exercise of Option. 

  

	3.1	[Without derogating from and subject to the provisions of the Plan, 25% of the Shares subject to the Option shall be vested on the Start Date, 25% of the Shares subject to the Option shall vest on the first anniversary
of the Start Date and 2.083% of the Shares subject to the Option shall vest each month thereafter until the Option is fully vested on the third anniversary of the Start Date.]1 

For the purposes hereof, the “Start Date” shall mean [the Date of Grant]. 

 

	1 	 Modify vesting as per Board of Directors grant as necessary. 

 For the purposes hereof, the term “Service” means an Israeli
Grantee’s employment or engagement by the Company or its Affiliated Company. Service shall be deemed terminated upon the effective date of the termination of the employment/engagement relationship. An Israeli Grantee’s Service shall
not be deemed terminated or interrupted solely as a result of a change in the capacity in which the Israeli Grantees renders Service to the Company or an Affiliated Company (i.e., as an employee, officer, director, consultant, etc.); nor shall it be
deemed terminated or interrupted due solely to a change in the identity of the specific entity (out of the Company and its Affiliated Companies) to which the Israeli Grantee renders such Service, provided that there is no actual interruption or
termination of the continuous provision by the Israeli Grantee of such Service to any of the Company or its Affiliated Companies. Furthermore, an Israeli Grantee’s Service with the Company or its Affiliated Company shall not be deemed
terminated or interrupted as a result of any military leave, sick leave, or other bona fide leave of absence taken by the Israeli Grantee and approved by the Company or Affiliated Company by which the Israeli Grantee is employed or engaged, as
applicable; provided, however, that if any such leave exceeds ninety (90) days, then on the ninety-first (91st) day of such leave the Israeli Grantee’s Service shall be deemed to have terminated unless the Israeli Grantee’s right
to return to Service with the Company or its Affiliated Company is secured by statute or contract. Notwithstanding the foregoing, unless otherwise designated by the Company or its Affiliated Company, as the case may be, or required by law, time
spent in a leave of absence shall not be treated as time spent providing Service for the purposes of calculating accrued vesting rights under the vesting schedule of the Option. Without derogating from the aforesaid, the Service of an Israeli
Grantee to an Affiliated Company shall also be deemed terminated in the event that such Affiliated Company for which the Israeli Grantee performs Service ceases to fall within the definition of an “Affiliated Company” under the Plan,
effective as of the date said Affiliated Company ceases to be such. In all other cases .in which any doubt may arise regarding the termination of an Israeli Grantee’s Service or the effective date of such termination, or the implications of
absence from Service on vesting, the Company, in its sole discretion, shall determine whether the Israeli Grantee’s Service has terminated and the effective date of such termination and the implications, if any, on vesting. 

For the purposes hereof “Eligible Participant” shall be an employee or officer of, or consultant or advisor to, the
Company or any other entity the employees, officers, directors, consultants, or advisors of which are eligible to receive options grants under the Plan who .has provided continuous Service at all times since the Date of Grant. 

The Option shall be exercisable from the date upon which it becomes vested until the Expiration Date (as specified in Section 3.5
below) of such Option (the “Exercise Period”). 
  

	3.2	Except as otherwise provided in this Section 3, the Option may not be exercised unless the Israeli Grantee, at the time he or she exercises the Option, is an Eligible Participant. 

 

	3.3	Subject to the applicable terms and conditions of the Plan, and during the Exercise Period, the Options which are vested with the Israeli Grantee in accordance with Section 3.1 above, may be exercised by the
Israeli Grantee by providing the Company an exercise notice signed by the Israeli Grantee, all in accordance with the applicable provisions of the Plan. The Grantee may purchase less than the number of shares covered thereby, provided that no
partial exercise of the Option may be for any fractional share or for fewer than ten whole shares. 

  

	3.4	Subject to the provisions of Section 102, when applicable, until the IPO (as defined in Section 5.4.1), the Board of Directors of the Company (the “Board”) shall be entitled to require, as a
condition to the exercise of any Option, that the Israeli Grantee (and the Trustee, if the Trustee will be the holder of the Shares issued upon exercise) sign and deliver to such person as may be designated by the Board (the
“Nominee”) an irrevocable proxy with respect to all Shares, in a form to be provided by the Company, appointing the Nominee as the sole person entitled to exercise the voting rights conferred by such Shares. The Nominee shall not
exercise the voting rights conferred by the exercised Shares held by him or with respect to which the Nominee has been given an irrevocable proxy as aforesaid, in any way whatsoever, and shall not issue a proxy to any person or entity to vote such
shares, unless otherwise instructed by the Board, and in accordance with such instructions. 

  

	3.5	Subject to the provisions of the Section 102, when applicable, until the IPO, the Company shall be entitled to require, as a condition to the exercise of any Option, that the Israeli Grantee (and the Trustee, if
the Trustee will be the holder of the Shares issued upon exercise) shall become a party and be subject to that certain Amended and Restated Right of First Refusal and Co-Sale Agreement dated as of May 12, 2008 by and among the Company and the
Stockholders party thereto, as amended from time to time (the “ROFR Agreement”). 

  
 2 

	3.6	The grant of the Option and the issuance of shares of Common Stock upon the exercise of the Option shall be subject to the terms and conditions of the Plan, including, without limitation, compliance with all applicable
laws. THE ISRAELI GRANTEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE REQUIRED CONDITIONS ARE SATISFIED. ACCORDINGLY, THE ISRAELI GRANTEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED.

  

	3.7	Expiration Date. Unless expired earlier pursuant to the Plan, the Option shall expire and terminate and become null and void upon the lapse of ten (10) years from the Date of Grant (the “Expiration
Date”). 

  

	3.8	Termination of Relationship with the Company. If the Israeli Grantee ceases to be an Eligible Participant for any reason, then, except as provided in Sections 3.9 and 3.10 below, the right to exercise the
Option shall terminate three months after such cessation (but in no event after the Expiration Date), provided that the Option shall be exercisable only to the extent that the Israeli Grantee was entitled to exercise the Option on the date of such
cessation. Notwithstanding the foregoing, if the Israeli Grantee, prior to the Expiration Date, violates the non-competition or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement
between the Israeli Grantee and the Company or any Affiliated Company, the right to exercise the Option shall terminate immediately upon such violation. 

  

	3.9	Exercise Period Upon Death or Disability. If the Israeli Grantee dies or becomes disabled prior to the Expiration Date while he or she is an Eligible Participant and the Company or any Affiliated Company has not
terminated such relationship for “Cause” as specified in Section 3.10 below, the Option shall be exercisable, within the period of one year following the date of death or disability of the Israeli Grantee, by the Israeli Grantee (or
in the case of death by an authorized transferee), provided that the Option shall be exercisable only to the extent that it was exercisable by the Israeli Grantee on the date of his or her death or disability, and further provided that the Option
shall not be exercisable after the Expiration Date. 

  

	3.10	Termination for Cause. If the Israeli Grantee’s employment or other relationship with the Company or its Affiliated Company is terminated by the Company or its Affiliated Company for Cause (as defined
below), (i) the right to exercise the Option shall terminate immediately upon the effective date of such termination of employment or other relationship and (ii) if such employment or other relationship is terminated prior to the IPO, the
Company shall be entitled, at its option, to exercise its Repurchase Option (as defined in Section 5.2). If the Israeli Grantee is given notice by the Company or its Affiliated Company of the termination of his or her employment or other
relationship by the Company or its Affiliated Company for Cause, and the effective date of such employment or other termination is subsequent to the date of the delivery of such notice, the right to exercise the Option shall be suspended from the
time of the delivery of such notice until the earlier of (i) such time as it is determined or otherwise agreed that the Israeli Grantee’s employment or other relationship shall not be terminated for Cause as provided in such notice or
(ii) the effective date of such termination of employment or other relationship (in which case the right to exercise the Option shall, pursuant to the preceding sentence, terminate immediately upon the effective date of such termination of
employment or other relationship). 

 “Cause” shall mean (a) the conviction of the Israeli Grantee for any
felony involving moral turpitude or affecting the Company or any Affiliated Company; (b) the embezzlement of funds of the Company or any Affiliated Company; (c) any breach of the Grantee’s fiduciary duties or duties of care towards
the Company or any Affiliated Company (including without limitation any disclosure of confidential information of the Company or any Affiliated Company or any breach of a non-competition undertaking); (d) any conduct in bad faith reasonably
determined by the Board to be materially detrimental to the Company or, with respect to any Affiliated Company, reasonably determined by the Board of Directors of such Affiliated Company to be materially detrimental to either the Company or such
Affiliated Company; or (e) any other event classified under any applicable agreement between the Grantee and the Company or the Affiliated Company, as applicable, as a “Cause” for termination or by other language of similar substance.
The Israeli Grantee shall be considered to have been discharged for “Cause” if the Company or its Affiliated Company determines, within 30 days after the Israeli Grantee’s resignation, that discharge for cause was warranted. 

  
 3 

	4.	The Exercise Price. The Exercise Price for each Share to be purchased upon exercise of the Option shall be U.S.            . 

 

	5.	Company Right of First Refusal and Repurchase Option. No Shares acquired upon exercise of the Option shall be transferred except in accordance with this Section 5. 

 

	5.1	Company Right of First Refusal 

  

	5.1.1	Notice of Proposed Transfer. If the Israeli Grantee proposes to sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively, “transfer”) any
Shares acquired upon exercise of the Option, then the Israeli Grantee shall first give written notice of the proposed transfer (the “Transfer Notice”) to the Company. The Transfer Notice shall name the proposed transferee and state the
number of such Shares the Israeli Grantee proposes to transfer (the “Offered Shares”), the price per share and all other material terms and conditions of the transfer. 

 

	5.1.2	Company Right to Purchase. For 30 days following its receipt of such Transfer Notice, the Company shall have the option to purchase all or part of the Offered Shares at the price and upon the terms set forth in
the Transfer Notice. In the event the Company elects to purchase all or part of the Offered Shares, it shall give written notice of such election to the Israeli Grantee within such 30-day period. Within 10 days after his or her receipt of such
notice, the Israeli Grantee shall tender to the Company at its principal offices the certificate or certificates representing the Offered Shares to be purchased by the Company, duly endorsed in blank by the Israeli Grantee or with duly endorsed
stock powers attached thereto, all in a form suitable for transfer of the Offered Shares to the Company. Promptly following receipt of such certificate or certificates, the Company shall deliver or mail to the Israeli Grantee a check in payment of
the purchase price for such Offered Shares; provided that if the terms of payment set forth in the Transfer Notice were other than cash against delivery, the Company may pay for the Offered Shares on the same terms and conditions as were set forth
in the Transfer Notice; and provided further that any delay in making such payment shall not invalidate the Company’s exercise of its option to purchase the Offered Shares. 

 

	5.1.3	Shares Not Purchased By Company. If the Company does not elect to acquire all of the Offered Shares, the Israeli Grantee may, within the 30-day period following the expiration of the option granted to the Company
under Section 5.1.2 above and subject to any obligations applicable to the Israeli Grantee under the ROFR Agreement or any other shareholder agreement to which Israeli Grantee is a party, transfer the Offered Shares which the Company has not
elected to acquire to the proposed transferee, provided that such transfer shall not be on terms and conditions more favorable to the transferee than those contained in the Transfer Notice. Notwithstanding any of the above, all Offered Shares
transferred pursuant to this Section 5.1 shall remain subject to (i) the right of first refusal set forth in this Section 5.1 and (ii) the Repurchase Option set forth in Section 5.2 and such transferee shall, as a condition
to such transfer, deliver to the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this Section 5.1 and Section 5.2, if applicable. 

 

	5.1.4	Consequences of Non-Delivery. After the time at which the Offered Shares are required to be delivered to the Company for transfer to the Company pursuant to Section 5.1.2 above, the Company shall not pay any
dividend to the Israeli Grantee on account of such Offered Shares or permit the Israeli Grantee to exercise any of the privileges or rights of a stockholder with respect to such Offered Shares, but shall, insofar as permitted by law, treat the
Company as the owner of such Offered Shares. 

  

	5.1.5	Exempt Transactions. The following transactions shall be exempt from the provisions of this Section 5.1: 

  

	 	a)	any transfer of Shares to or for the benefit of any spouse, child or grandchild of the Israeli Grantee, or to a trust for their benefit; 

  
 4 

	 	b)	any transfer pursuant to an effective registration statement filed by the Company under the Securities Act of 1933, as amended (the “Securities Act”); and 

 

	 	c)	the sale of all or substantially all of the outstanding shares of capital stock of the Company (including pursuant to a merger or consolidation); 

provided, however, that in the case of a transfer pursuant to clause 5.1.5(a) above, such Shares shall remain subject to the right of
first refusal set forth in this Section 5.1 and to the Repurchase Option set forth in Section 5.2 and such transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that such transferee shall
be bound by all of the terms and conditions of this Section 5. 
  

	5.2	Repurchase Option. If the Israeli Grantee’s employment or other relationship with the Company or its Affiliated Company is terminated by the Company or its Affiliated Company for Cause (as defined in
Section 3.10) prior to the IPO, the Company shall be entitled, at its option, to repurchase from the Israeli Grantee (or his transferee or estate, if applicable) any Shares previously exercised hereunder for a purchase price per share equal to
the Exercise Price (the “Repurchase Price”) in accordance with the provisions of this Section 5.2 (the “Repurchase Option”). The Company may exercise the Repurchase Option by delivering or mailing to the
Israeli Grantee (or his transferee or estate, as applicable), within 90 days after the termination of the employment of the Israeli Grantee with the Company, a written notice of exercise of the Repurchase Option. Such notice shall specify the number
of Shares to be purchased. If and to the extent the Repurchase Option is not so exercised by the giving of such a notice within such 90-day period, the Repurchase Option shall automatically expire and terminate effective upon the expiration of such
90-day period. Within 10 days after delivery to the Israeli Grantee (or his transferee or estate, as applicable) of the Company’s notice of the exercise of the Repurchase Option pursuant to subsection (a) above, the Israeli Grantee (or his
transferee or estate, as applicable) shall tender to the Company at its principal offices the certificate or certificates representing the Shares which the Company has elected to purchase in accordance with the terms of this Agreement, duly endorsed
in blank or with duly endorsed stock powers attached thereto, all in form suitable for the transfer of such Shares to the Company. Promptly following its receipt of such certificate or certificates, the Company shall pay to the Israeli Grantee (or
his transferee or estate, as applicable) the aggregate Repurchase Price for such Shares (provided that any delay in making such payment shall not invalidate the Company’s exercise of the Repurchase Option with respect to such Shares). After the
time at which any Shares are required to be delivered to the Company for transfer to the Company pursuant to the preceding two sentences, the Company shall not pay any dividend to the Israeli Grantee (or his transferee or estate, as applicable) on
account of such Shares or permit the Israeli Grantee (or his transferee or estate, as applicable) to exercise any of the privileges or rights of a stockholder with respect to such Shares, but shall, in so far as permitted by law, treat the Company
as the owner of such Shares. The Repurchase Price may be payable, at the option of the Company, in cancellation of all or a portion of any outstanding indebtedness of the Israeli Grantee (or his transferee or estate, as applicable) to the Company or
in cash (by check) or both. The Company shall not purchase any fraction of a Share upon exercise of the Repurchase Option. 

  

	5.3	Assignment of Company Right. The Company may assign its right of first refusal and its Repurchase Option in any particular transaction under this Section 5 to one or more persons or entities.

  

	5.4	Termination. The provisions of this Section 5 shall terminate upon the earlier of the following events: 

  

	5.4.1	the closing of the sale of shares of Common Stock in an underwritten public offering pursuant to an effective registration statement filed by the Company under the Securities Act (“IPO”); or

  

	5.4.2	the sale of all or substantially all of the outstanding shares of capital stock, assets or business of the Company, by merger, consolidation, sale of assets or otherwise (other than a merger or consolidation in which
all or substantially all of the individuals and entities who were beneficial owners of the Company’s voting securities immediately prior to such transaction beneficially own, directly or indirectly, more than 75% (determined on an as-converted
basis) of the outstanding securities entitled to vote generally in the election of directors of the resulting, surviving or acquiring Company in such transaction). 

  
 5 

	5.5	No Obligation to Recognize Invalid Transfer. The Company shall not be required (1) to transfer on its books any of the Shares which shall have been sold or transferred in violation of any of the provisions
set forth in this Section 5, or (2) to treat as owner of such Shares or to pay dividends to any transferee to whom any such Shares shall have been so sold or transferred. 

 

	6.	Agreement in Connection with Initial Public Offering. The Israeli Grantee agrees, in connection with the IPO (or any other public offering of Common Stock under any applicable securities laws) and any
applicable stock exchange or stock market rules and regulations, (i) not to (a) offer, pledge, announce the intention to sell, 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 other securities of the Company or (b) enter into any swap or other agreement that transfers, in whole or
in part, any of the economic consequences of ownership of shares of Common Stock or other securities of the Company, whether any transaction described in clause (a) or (b) is to be settled by delivery of securities, in cash or otherwise,
during the period beginning on the date of the filing of such registration statement with the Securities and Exchange Commission and ending 180 days after the date of the final prospectus relating to the offering (plus up to an additional 34 days to
the extent requested by the managing underwriters for such offering in order to address Rule 2711(f) of the National Association of Securities Dealers, Inc. or any similar successor provision), and (ii) to execute any agreement reflecting
clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering. The Company may impose stop-transfer instructions with respect to the shares of Common Stock or other securities subject to the
foregoing restriction until the end of the “lock-up” period. 

  

	7.	Taxes and Indemnification 

  

	7.1	The receipt of the Option and the exercise thereof may result in tax and/or other mandatory payment consequences. THE ISRAELI GRANTEE IS ADVISED TO CONSULT A TAX ADVISOR WITH RESPECT TO THE TAX AND/OR OTHER MANDATORY
PAYMENT CONSEQUENCES OF RECEIVING OR EXERCISING THE OPTION OR DISPOSING OF THE SHARES. 

  

	7.2	Any and all tax and/or other mandatory payment consequences arising from the grant or exercise of the Option, the payment for or the transfer of the Shares to the Israeli Grantee, or the sale of the Shares by the
Israeli Grantee, or from any other event or act in connection therewith (including without limitation, in the event that the Option does not qualify under the tax classification/tax track in which they were intended), shall be borne solely by the
Israeli Grantee. Without derogating from the foregoing, it is hereby clarified that the Israeli Grantee shall bear and be liable for all tax and other consequences in the event that his/her 102 Trustee Award and/or Shares are not held for the entire
Restricted Period (as defined in the Plan), all as provided in Section 102. 

  

	7.3	The Company, any Affiliated Company and the Trustee may each withhold (including at source), deduct and/or set-off, from any payment made to the Israeli Grantee, the amount of the tax and/or other mandatory payment the
withholding of which is required with respect to the Option and/or the Shares under any applicable law, and/or any amount which the Israeli Grantee owes the Company, any Affiliated Company and/or the Trustee, pursuant to the indemnification below,
if any. The Company and/or an Affiliated Company shall have the right to require the Israeli Grantee, through payroll withholding, cash payment or otherwise, to make adequate provision for any such tax and/or other mandatory payment withholding
obligations of the Company, Affiliated Company or Trustee arising in connection with the Option or the Shares, or any such indemnification debt. The Company, any Affiliated Company and the Trustee, shall also comply with any and all applicable
reporting requirements to relevant authorities, and the Israeli Grantee hereby authorizes the Company, any Affiliated Company and/or the Trustee, to make such reporting, including with respect to information regarding said Israeli Grantee. Without
derogating from the aforesaid, each Israeli Grantee shall provide the Company and/or any applicable Affiliated Company with any executed documents, certificates and/or forms that may be required from time to time by the Company or such Affiliated
Company in order to determine and/or establish the tax liability of such Israeli Grantee. 

  
 6 

	7.4	Furthermore, each Israeli Grantee shall indemnify the Company, any applicable Affiliated Company and the Trustee, or any one thereof, and hold them harmless from and against any and all liability in relation with any
such tax and/or other mandatory payments or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax and/or other mandatory payments from any payment made to the
Israeli Grantee, unless said liability is a result of default by the Company. 

  

	7.5	Without derogating from the provisions of the Plan, it is further clarified that the Israeli Grantee shall not be entitled to receive any Shares and all rights attached thereto (including bonus shares) unless and until
the Company and/or Affiliated Company has either (a) withheld payment of all taxes required to be paid thereupon, if any; or (b) received confirmation from the applicable tax authorities either that such payment, if any, was remitted to
the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Company, and if such arrangement requires the approval of the Trustee, is also satisfactory to the Trustee. 

 

	8.	Nontransferability of Option. The Option may not be sold, assigned, transferred, pledged or otherwise encumbered by the Israeli Grantee, either voluntarily or by operation of law, except by will or the
laws of descent and distribution, and, during the lifetime of the Israeli Grantee, the Option shall be exercisable only by the Israeli Grantee. 

  

	9.	Trustee and/or Broker Fees. Without derogating from and in addition to any other payments which the Company, any Affiliated Company and/or the Trustee, if applicable, shall be entitled to deduct and/or
withhold, it is explicitly agreed that the Company, any Affiliated Company and/or the Trustee shall be entitled, and are hereby irrevocably authorized, to deduct and/or withhold at source, from any payment to which the Israeli Grantee may be
entitled to receive therefrom, any costs and expenses related to the grant, issuance, exercise and/or sale of the Option and/or Shares, which are to be borne by the Israeli Grantee, such as, by way of example, trustee and/or brokerage fees, etc.

  

	10.	Bonus Shares subject to this Agreement. Any and all bonus shares to be issued by the Company, if any, by virtue of any Shares, shall be subject to the provisions of this Option Agreement, mutatis
mutandis. 

  

	11.	Subordination. The Option, the Plan and this Option Agreement are subject to the applicable provisions of the Ordinance, which shall be deemed an integral part of each, accordingly, and which shall prevail
over any term that is inconsistent therewith. Any provisions of the Section 102, and/or any of the rules or regulations promulgated thereunder, if applicable, which is not expressly specified in the Plan or herein, including without limitation
any such provision which is necessary in order to receive and/or to keep any tax benefit, shall be deemed incorporated herein and binding upon the Company and the Israeli Grantee, as applicable. 

 

	12.	Legends. The certificate representing Shares shall bear a legend substantially in the following form (in addition to, or in combination with, any legend required by applicable federal and state securities
laws and agreements relating to the transfer of the Company securities): 

 “The shares represented by this
certificate are subject to a right of first refusal and a repurchase option in favor of the Company, as provided in a certain stock option agreement with the Company”. 
  

	13.	Miscellaneous; Preamble and Interpretation 

  

	13.1	The preamble to this Option Agreement and the Annexes attached hereto form integral parts hereof. 

  

	13.2	The captions of clauses in this Option Agreement are intended solely for convenience and will have no meaning in the interpretation of this Option Agreement. 

 

	13.3	All the capitalized terms not defined herein shall have the meaning given to them in the Plan, unless the context clearly indicates to the contrary. 

  
 7 

	13.4	The invalidity or unenforceability of any provision herein shall not affect the validity or enforceability of the balance hereof. 

  

	13.5	The Plan and this Option Agreement represents the entire undertaking by the Company regarding the subject matter and supersedes all prior undertakings with respect thereto. 

 

	13.6	No provision hereof may be waived or discharged except by a written document signed by a duly authorized representative of the Company. 

 

	13.7	The failure of the Company at any time or times to require performance of any provision hereof shall in no manner affect the right of the Company at a later time to enforce the same. No waiver by the Company of the
breach of any of the terms or covenants contained in this Option Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any breach, or a waiver of the
breach of any of the terms or covenants contained in this Option Agreement. 

  

	13.8	All notices given by one Party to the other hereunder will be given in writing, and will be deemed to have been delivered to the addressee immediately on its delivery if delivered by hand or upon transmission if sent by
facsimile and confirmed by written reply by facsimile immediately thereafter, or within three (3) business days after being sent by registered mail, as per the addresses indicated hereinabove, or such other address or facsimile number as a
Party may thereafter give by written notice to the other Party to this Option Agreement. 

 [Signature Page Follows]

  
 8 

 In Witness Whereof, the parties hereto have caused this Option Agreement to be duly executed on the day and
year first written above. 
  

	
	  

	Company

 I, the undersigned, hereby acknowledge receipt of a copy of the Plan and am familiar with the terms and provisions thereof and
accept the Option subject to all of the terms and provisions thereof. I have reviewed the Plan and this Option Agreement in their entirety, have had an opportunity to obtain the advice of counsel prior to executing this Option Agreement, and fully
understand all provisions of this Option Agreement. I agree to notify the Company upon any change in the residence address indicated above. I hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Board upon
any question arising under the Plan or this Option Agreement. 
 In case of 102 Trustee Award: 

I hereby further acknowledge that I am aware that I am being granted an 102 Trustee Award, of the “Capital Gain Tax Track”, and that I am
familiar with the provisions of Section 102 and the regulations and rules promulgated thereunder, applicable to such Option in such tax track, including without limitations, the tax implications applicable to such grant, and agree to be bound
by said provisions. I accept the provisions of the Trust Note signed between the Company and the Trustee, attached as Annex B hereto, and agree to be bound by its terms, and I undertake not to release, by sale or transfer, the 102
Trustee Award, Shares issued pursuant to the exercise thereto, and all rights attached thereto (including bonus shares) prior to the lapse of the Restricted Period. 

If any such sale or release occurs during the Restricted Period, the sanctions under Section 102 of the Ordinance and under any rules or regulation or
orders or procedures promulgated thereunder shall apply to and shall be borne by me. 
 In case of 102 Non-Trustee Award: 

I hereby further undertake that if I cease to be employed by the Company or any Affiliated Company, 1 shall provide the Company upon such termination, a surety
or guarantee to the satisfaction of the Company, to secure payment of all taxes which may become due upon the future transfer of my Shares to be issued upon the exercise of my outstanding 102 Non-Trustee Award. 

 

	
	  

	Israeli Grantee

  
 9 

 CHIASMA, INC. 

ISRAEL SUB-PLAN 
 NOTICE
OF STOCK OPTION EXERCISE 
 Date:              

Chiasma, Inc. 
 P.O. Box 395 

Georgetown, MA 01833 
 Attention: CFO 

Dear Sir or Madam: 
 I am the holder of that
certain Stock Option (the “Stock Option”) granted to me under the Chiasma, Inc. (the “Company”) 2008 Stock Incentive Plan, evidenced by an Option Agreement made and entered into on
            1 (the “Option Agreement”) for the purchase of
            2 shares of Common Stock of the Company at a purchase price of
$            3 per share. 

I hereby exercise my option to purchase             4 shares of Common Stock (the “Shares”), for which I have enclosed
            5 in the amount of             .6 
 [I am aware, agree and acknowledge that the Common Stock issued pursuant to this
exercise notice are subject to the provisions of Section 102 (as such term is defined in the Company’s Sub-Plan for Participants in Israeli) (the “Plan”), and the “Capital Gains Tax Track”, and will be issued in the
name of ESOP Management & Trust Services Ltd., as the Trustee under the Plan.]7 

I am further aware and confirm that the provisions of the Plan and my Option Agreement shall continue to apply, as applicable to the Common
Stock issued pursuant to the exercise of the Option. 
  
  

	1 	Enter the date of grant. 

	2 	Enter the total number of shares of Common Stock for which the option was granted. 

	3 	Enter the option exercise price per share of Common Stock. 

	4 	Enter the number of shares of Common Stock to be purchased upon exercise of all or part of the option. 

	5 	Enter “cash”, “personal check” or if permitted by the option or Plan, “stock certificates No. XXXX and XXXX”. 

	6 	Enter the dollar amount (price per share of Common Stock times the number of shares of Common Stock to be purchased), or the number of shares tendered. Fair market value of shares tendered, together with cash or check,
must cover the purchase price of the shares issued upon exercise. 

	7 	Applicable only to 102 Trustee Awards. 

 Representations, Warranties and Covenants. 

I represent, warrant and covenant as follows: 

1. I am purchasing the Shares for my own account for investment only, and not with a view to, or for sale in connection with, any distribution of the
Shares in violation of the Securities Act of 1933 (the “Securities Act”), or any rule or regulation under the Securities Act. 
 2.
I have had such opportunity as I have deemed adequate to obtain from representatives of the Company such information as is necessary to permit me to evaluate the merits and risks of my investment in the Company. 

3. I have sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the purchase of the Shares
and to make an informed investment decision with respect to such purchase. 
 4. I can afford a complete loss of the value of the Shares and
am able to bear the economic risk of holding such Shares for an indefinite period. 
 5. I understand that (i) the Shares have not been
registered under the Securities Act and are “restricted securities” within the meaning of Rule 144 under the Securities Act, (ii) the Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently
registered under the Securities Act or an exemption from registration is then available; (iii) in any event, the exemption from registration under Rule 144 will not be available for at least one year and even then will not be available
unless a public market then exists for the Common Stock, adequate information concerning the Company is then available to the public, and other terms and conditions of Rule 144 are complied with; and (iv) there is now no registration
statement on file with the Securities and Exchange Commission with respect to any stock of the Company and the Company has no obligation or current intention to register the Shares under the Securities Act. 

Irrevocable Proxy 
 The undersigned hereby
irrevocably appoints the Chief Executive Officer of the Company or such other designee as determined in the sole discretion of the Board of Directors of the Company (the “Nominee”), as the sole and exclusive attorney and proxy of the
undersigned, with full power of substitution and resubstitution, to the full extent of the undersigned’s rights with respect to the Shares, until the closing of an IPO (as such term is defined in the Option Agreement). Upon the execution
hereof, all prior proxies given by the undersigned with respect to the Shares are hereby revoked and no subsequent proxies will be given. 

This proxy is coupled with an interest and irrevocable and it will also bind my heirs and successors by operation of law, and is granted in
consideration of the Company’s grant of the Stock Option and the issuance of the Shares pursuant to the Option Agreement. The Nominee will be empowered at any time prior to the Expiration Date to exercise all voting and other rights (including,
without limitation, the power to execute and deliver written consents with respect to the Shares) of the undersigned at every annual, special or adjourned meeting of the stockholders of the Company, and in every written consent in lieu of such a
meeting, or otherwise; provided, 

  
 -2- 

 
however, that the Nominee identified above shall not exercise the voting rights conferred by the Shares held by him or with respect to which he has been given an the aforesaid irrevocable proxy,
in any way whatsoever, and shall not issue a proxy to any person or entity to vote such shares, unless otherwise instructed by the Board of Directors of the Company, and in accordance with such instructions. 

I acknowledge and agree that if prior to the closing of the Company’s IPO, the right to vote any shares of Common Stock exercised pursuant to the
exercise of the Option is held by the Trustee, then the Trustee shall be eligible to provide the right to vote any such shares to the Nominee. 

Repurchase Option; Right of First Refusal 
 The
undersigned acknowledges and agrees that, in accordance with Section 5 of the Option Agreement, the Shares are subject to the Company’s Repurchase Option in the event that the undersigned’s employment with the Company (or an
Affiliated Company (as defined in the Option Agreement)) is terminated with Cause (as defined in the Option Agreement). The undersigned further acknowledges and agrees that, in accordance with Section 5 of the Option, the Shares are subject to
the Company’s right of first refusal in the event the undersigned proposes to transfer the Shares. 
  

	
	Very truly yours,
	
	  

	(Signature)

  

  
 -3- 

 Exercise Application 

To: ESOP Management and Trust Services Ltd. 

I am the owner of an Option to purchase             Shares of Chiasma Inc. (the
“Parent Company”), (respectively: the “Option” and the “Shares”). 
 On
            I have paid the full exercise price totaling US $            to the Parent Company. 

I hereby instruct you to exercise the Option to purchase             Shares of the Parent Company,
at an exercise price of US $            per Share, which were granted to me pursuant to the Plan. 

The Option is held by ESOP Management and Trust Service LTD., in accordance with the provisions of Section 102 of the Israeli Tax Ordinance, the
Agreement and the “Chiasma Inc. The Company’s Sub-Plan for Participants in Israel,” under which the Option was allotted (“the Plan”). 
  

							
	  
		  
		  
		  

	Optionee’s Name		Signature		Date		Optionee’s I.D.

 Company’s Acknowledgement 

We hereby confirm to you as follows: 
 The above-named Option
Holder,             , is entitled to exercise             Shares under the Option, as specified above, in accordance with the
terms of the Plan. 
 The exercise price due by the Option Holder was paid to us directly by the Option Holder. 

With respect to options under Section 102 - Please find the Share Certificate which represents the shares resulting from the exercise described above.

  

					
	  
		  
		  

	Company: Signature		Print Name and Title		Date

  
 -4-

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