Document:

EX-10.18

 Exhibit 10.18 

SECOND AMENDED AND RESTATED 

INVESTORS’ RIGHTS AGREEMENT 

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
			
	1.	 	Definitions	  	 	1	 
			
	2.	 	Registration Rights	  	 	5	 
				
		 	2.1	 	Demand Registration	  	 	5	 
		 	2.2	 	Company Registration	  	 	6	 
		 	2.3	 	Underwriting Requirements	  	 	7	 
		 	2.4	 	Obligations of the Company	  	 	8	 
		 	2.5	 	Furnish Information	  	 	10	 
		 	2.6	 	Expenses of Registration	  	 	10	 
		 	2.7	 	Delay of Registration	  	 	10	 
		 	2.8	 	Indemnification	  	 	10	 
		 	2.9	 	Reports Under Exchange Act	  	 	12	 
		 	2.10	 	Limitations on Subsequent Registration Rights	  	 	13	 
		 	2.11	 	“Market Stand-off” Agreement	  	 	13	 
		 	2.12	 	Legend	  	 	14	 
		 	2.13	 	Termination of Registration Rights	  	 	14	 
			
	3.	 	Information and Observer Rights	  	 	15	 
				
		 	3.1	 	Delivery of Financial Statements	  	 	15	 
		 	3.2	 	Visitation and Inspection	  	 	16	 
		 	3.3	 	Observer Rights	  	 	16	 
		 	3.4	 	Termination of Information and Observer Rights	  	 	17	 
		 	3.5	 	Confidentiality	  	 	17	 
			
	4.	 	Rights to Future Stock Issuances	  	 	18	 
				
		 	4.1	 	Right of First Offer	  	 	18	 
		 	4.2	 	Termination	  	 	19	 
			
	5.	 	Additional Covenants	  	 	19	 
				
		 	5.1	 	Insurance	  	 	19	 
		 	5.2	 	Employee Agreements	  	 	19	 
		 	5.3	 	Board Matters	  	 	20	 
		 	5.4	 	Successor Indemnification	  	 	20	 
		 	5.5	 	Expenses of Counsel	  	 	20	 
		 	5.6	 	Indemnification Matters	  	 	20	 
		 	5.7	 	Right to Conduct Activities	  	 	21	 
		 	5.8	 	FCPA	  	 	21	 
		 	5.9	 	Approval of Material Transactions	  	 	22	 
		 	5.10	 	Termination of Covenants	  	 	22	 

  
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	6.	 	Miscellaneous	  	 	22	 
				
		 	6.1	 	Successors and Assigns	  	 	22	 
		 	6.2	 	Governing Law	  	 	22	 
		 	6.3	 	Counterparts	  	 	23	 
		 	6.4	 	Titles and Subtitles	  	 	23	 
		 	6.5	 	Notices	  	 	23	 
		 	6.6	 	Amendments and Waivers	  	 	24	 
		 	6.7	 	Severability	  	 	25	 
		 	6.8	 	Aggregation of Stock	  	 	25	 
		 	6.9	 	Additional Investors	  	 	25	 
		 	6.10	 	Entire Agreement	  	 	26	 
		 	6.11	 	Dispute Resolution	  	 	26	 
		 	6.12	 	Delays or Omissions	  	 	27	 
		 	6.13	 	Acknowledgment	  	 	27	 
		 	6.14	 	Massachusetts Business Trust	  	 	27	 
		 	6.15	 	Investor Consent and Waiver	  	 	27	 
			
	Schedule A	 	 -   Schedule of Investors
	  			
			
	Schedule B	 	 -   Schedule of Key Holders
	  			

  
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 SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 

THIS SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Agreement”), is made as of August 9, 2019, by
and among Harmony Biosciences II, Inc., a Delaware corporation (the “Company”), and each of the investors listed on Schedule A hereto, each of which is referred to in this Agreement as an
“Investor”, and each of the stockholders of the Company and holders of warrants to acquire shares of capital stock of the Company listed on Schedule B hereto, each of whom is referred to herein as a
“Key Holder”. 
 RECITALS 

WHEREAS, the holders of the Series A Preferred Stock and the Series B Preferred Stock are party with the Company and the Key Holders to
that certain Amended and Restated Investors’ Rights Agreement, dated as of January 8, 2018 (the “Prior Agreement”); 

WHEREAS, the Company and the Purchasers (as hereinafter defined) are parties to that certain Series C Preferred Stock Purchase
Agreement of even date herewith (the “Purchase Agreement”), pursuant to which the Company has agreed to issue to the Purchasers (as defined in the Purchase Agreement), and the Purchasers have agreed to purchase, shares of Series C
Preferred Stock (the “Series C Issuance”); 
 WHEREAS, pursuant to Section 4 of the Prior Agreement, each of
the holders of Series A Preferred Stock and Series B Preferred Stock, and each of the Key Holders (in their respective capacities as Major Holders), has a right of first offer in connection with the Series C Issuance (the “Series C
ROFR”); 
 WHEREAS, the Company, the Key Holders and the Investors desire to amend and restate the Prior Agreement in its
entirety as set forth herein, and the holders of the Series A Preferred Stock, the holders of the Series B Preferred Stock and the Key Holders desire to waive the Series C ROFR; 

WHEREAS, pursuant to Section 6.6 of the Prior Agreement, the Prior Agreement may be amended with the written consent of the
Company and the holders of a majority of the shares of Preferred Stock then outstanding; and 
 WHEREAS, for purposes of this
Agreement, to the extent any Person holds both shares of Preferred Stock and shares of Common Stock, such Person shall be treated as an Investor with respect to such shares of Preferred Stock and with respect to the shares of Common Stock issued or
issuable upon conversion of such shares of Preferred Stock, and as a Key Holder with respect to such shares of Common Stock. 
 NOW,
THEREFORE, the parties hereby agree as follows: 
 1.    Definitions. For purposes of this Agreement: 

1.1    “Affiliate” means, with respect to (a) any specified Person, any other Person who, directly
or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer or director of such 

  
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Person or any venture capital fund or institutional investor now or hereafter existing that is controlled by one or more general partners, managing members or management companies of, or shares
the same management company with, such Person, (b) in the case of a Fidelity Investor, an investment company registered under the Investment Company Act advised or sub-advised by Fidelity or any
affiliated investment advisor of Fidelity, one or more mutual fund, pension fund, pooled investment vehicle or institutional client advised or sub-advised by Fidelity or any affiliated investment advisor of
Fidelity, in each case, registered under the Investment Advisers Act of 1940, as amended and (c) Novo Holdings A/S (“Novo”), Novo Ventures (US), Inc. and any venture capital fund or other Person now or hereafter existing or
formed for the purpose of making or evaluating investments in other Persons that is controlled by or under common control with Novo, and for the avoidance of doubt, shall not include any other affiliate of Novo. 

1.2     “Common Stock” means shares of the Company’s common stock, par value $0.00001 per share.

 1.3     “Damages” means any loss, damage, claim or liability (joint or several) to which a party
hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or
alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged
omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of
the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law. 

1.4     “Derivative Securities” means any securities or rights convertible into, or exercisable or
exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants. 
 1.5    
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

1.6     “Excluded Registration” means (i) a registration relating to the sale of securities to
employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar plan, (ii) a registration relating to an SEC Rule 145 transaction, (iii) a registration on any form that does not include substantially the
same information as would be required to be included in a registration statement covering the sale of the Registrable Securities or (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of
debt securities that are also being registered. 
 1.7     “Fidelity” means Fidelity
Management & Research Company. 
 1.8     “Fidelity Investor” means any Investor advised or sub-advised by Fidelity. 

  
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 1.9     “Form
S-1” means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC. 

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

1.11     “GAAP” means generally accepted accounting principles in the United States. 

1.12     “Holder” means any holder of Registrable Securities who is a party to this Agreement. 

1.13     “Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including, adoptive relationships, of a natural person referred to herein. 

1.14     “Initiating Holders” means, collectively, Holders who properly initiate a registration request
under this Agreement. 
 1.15     “Investment Company Act” means the Investment Company Act of 1940, as
amended. 
 1.16     “IPO” means the Company’s first underwritten public offering of its Common
Stock under the Securities Act. 
 1.17     “Major Holder” means the Investors and the Key Holders.

 1.18     “Major Investor” means each of Marshman, Valor, any Fidelity Investor, HBM Healthcare
Investments (Cayman) Ltd. (“HBM”), Vivo, Novo Holdings A/S, venBio Global Strategic Fund II, L.P., Pivotal Alpha Limited and each Quantum/Aisling Investor. 

1.19     “Marshman” means Marshman Fund Trust II. 

1.20     “Marshman Registrable Securities” means (i) the 50,000,000 shares of Common Stock held by
Marshman as of the date hereof and (ii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or
in replacement of, such shares. 
 1.21     “Marshman Warrant” means that certain Warrant to Purchase
Common Stock of Harmony Biosciences II, Inc., issued by the Company to Marshman on September 22, 2017. 
 1.22    
“New Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options or warrants to purchase such equity securities, or securities of any type whatsoever that are,
or may become, convertible or exchangeable into or exercisable for such equity securities. 

  
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 1.23     “Person” means any individual, corporation,
partnership, trust, limited liability company, association or other entity. 
 1.24     “Preferred
Stock” means, collectively, the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock. 

1.25     “Quantum/Aisling Investors” means Aisling Capital IV, LP, QSIP LP and SCI Partners, LP,
collectively. 
 1.26     “Registrable Securities” means (i) the Common Stock issuable or issued
upon conversion of the Preferred Stock, (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company, acquired by the Investors after the date
hereof, (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the
shares referenced in clauses (i) and (ii) above and (iv) the Subordinate Registrable Securities; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this
Agreement are not assigned pursuant to Subsection 6.1, and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Subsection 2.13 of this Agreement. 

1.27     “Registrable Securities then outstanding” means the number of shares determined by adding the
number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities. 

1.28     “SEC” means the Securities and Exchange Commission. 

1.29     “SEC Rule 144” means Rule 144 promulgated by the SEC under the Securities Act. 

1.30     “SEC Rule 145” means Rule 145 promulgated by the SEC under the Securities Act. 

1.31     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. 
 1.32     “Selling Expenses” means all underwriting discounts, selling
commissions and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne and paid by the Company as
provided in Subsection 2.6. 
 1.33     “Series A Preferred Stock” means shares of
the Company’s Series A Preferred Stock, par value $0.00001 per share. 
 1.34     “Series B Preferred
Stock” means shares of the Company’s Series B Preferred Stock, par value $0.00001 per share. 

  
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 1.35     “Series C Preferred Stock” means shares of the
Company’s Series C Preferred Stock, par value $0.00001 per share. 
 1.36     “Subordinate Registrable
Securities” means collectively (a) Marshman Registrable Securities, (b) any Common Stock issued upon the exercise of the Marshman Warrant and the Valor Warrant and (c) any Common Stock issued as (or issuable upon the
conversion or exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, such shares. 

1.37     “Valor” means Valor IV Pharma Holdings, LLC. 

1.38     “Valor Warrant” means that certain Warrant to Purchase Common Stock of Harmony Biosciences II,
Inc., issued by the Company to Valor on September 22, 2017. 
 1.39     “Vivo” means collectively,
Vivo Capital Fund VIII, L.P. and Vivo Capital Surplus Fund VIII, L.P. 
 2.    Registration Rights. The Company
covenants and agrees as follows: 
 2.1    Demand Registration. 

(a)    Form S-1 Demand. If, at any time after the effective date of the
registration statement for the IPO, the Company receives a request from Holders of more than fifty percent (50%) of the Registrable Securities then outstanding that the Company file a Form S-1 registration
statement, then the Company shall (i) within ten (10) days after the date such request is given, give notice thereof (the “Demand Notice”) to all Holders other than the Initiating Holders and (ii) as soon as
practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering all
Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the
Company within twenty (20) days following the date the Demand Notice is given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3. 

(b)    Form S-3 Demand. If, at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from any Holder that the Company file a Form S-3 registration statement with respect to outstanding Registrable
Securities of such Holder, then the Company shall (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders and (ii) as soon as practicable, and in any event
within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities that the
Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days
following the date the Demand Notice is given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3. 

(c)    Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant
to this Subsection 2.1 a certificate signed by the Company’s 

  
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chief executive officer stating that in the good faith judgment of the Company’s Board of Directors (the “Board”) it would be materially detrimental to the Company and its
stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere with a
significant acquisition, corporate reorganization or other similar transaction involving the Company, (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential or
(iii) render the Company unable to comply with requirements under the Securities Act or the Exchange Act, then the Company shall have the right to defer taking action with respect to such filing, and any time periods with respect to filing or
effectiveness thereof shall be tolled correspondingly, for a period of not more than one hundred twenty (120) days after the request of the Initiating Holders is given; provided, however, that the Company may not invoke this right
more than twice in any twelve (12) month period; provided, further, that the Company shall not register any securities for its own account or that of any other stockholder during such one hundred twenty (120) day period other
than an Excluded Registration. 
 (d)    The Company shall not be obligated to effect, or to take any action to effect,
any registration pursuant to Subsection 2.1(a) (i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is one hundred eighty
(180) days after the effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective,
(ii) after the Company has effected five (5) registrations pursuant to Subsection 2.1(a) or (iii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately
registered on Form S-3 pursuant to a request made pursuant to Subsection 2.1(b). The Company shall not be obligated to effect, or to take any action to effect, any registration
pursuant to Subsection 2.1(b) (A) during the period that is thirty (30) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the
effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective or (B) if the Company has
effected two (2) registrations pursuant to Subsection 2.1(b) within the twelve (12) month period immediately preceding the date of such request. A registration shall not be counted as “effected” for
purposes of this Subsection 2.1(d) until such time as the applicable registration statement has been declared effective by the SEC, unless the Holders of a majority of the Registrable Securities to be registered in such
registration withdraw their request for such registration, elect not to pay the registration expenses therefor and forfeit their right to one (1) demand registration statement pursuant to Subsection 2.6, in which case
such withdrawn registration statement shall be counted as “effected” for purposes of this Subsection 2.1(d). 

2.2    Company Registration. If the Company proposes to register (including, for this purpose, a registration
effected by the Company for stockholders other than the Holders) any of its securities under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at
such time, promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of
Subsection 2.3, cause to be registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or

  
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withdraw any registration initiated by it under this Subsection 2.2 before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities
in such registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Subsection 2.6. 

2.3    Underwriting Requirements. 

(a)    If, pursuant to Subsection 2.1, the Initiating Holders intend to distribute the
Registrable Securities covered by their request by means of an underwriting, then they shall so advise the Company as a part of their request made pursuant to Subsection 2.1, and the Company shall include such information
in the Demand Notice. The underwriter(s) will be selected by the Initiating Holders, subject to the reasonable approval of the Company. In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration
shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall (together with the Company as provided in Subsection 2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting. Notwithstanding any
other provision of this Subsection 2.3, if the managing underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating
Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of
Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders;
provided, however, that the number of Registrable Securities held by the Holders to be included in such underwriting that are not Subordinate Registrable Securities shall not be reduced unless all other securities (including the
Subordinate Registrable Securities) are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any
Holder to the nearest one hundred (100) shares. 
 (b)    In connection with any offering involving an underwriting
of shares of the Company’s capital stock pursuant to Subsection 2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless the Holders accept the terms
of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If the total number of
securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is
compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, that the underwriters and the Company in their sole discretion
determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included
in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable) to the number of Registrable Securities owned by each selling Holder or in such other proportions

  
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as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of
shares allocated to any Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than
securities to be sold by the Company) are first entirely excluded from the offering, (ii) the number of Registrable Securities included in the offering be reduced below twenty-five percent (25%) of the total number of securities included in
such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder’s securities are included in such offering or
(iii) any Registrable Securities that are not Subordinate Registrable Securities be excluded from such underwriting unless all Subordinate Registrable Securities are first excluded from such offering. For purposes of the provision in this
Subsection 2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of
such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder”,
and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such “selling Holder”, as defined in this sentence. 

(c)    For purposes of Subsection 2.1, a registration shall not be counted as
“effected” if, as a result of an exercise of the underwriter’s cutback provisions in Subsection 2.3(a), fewer than fifty percent (50%) of the total number of Registrable Securities that Holders have requested
to be included in such registration statement are actually included. 
 2.4    Obligations of the Company.
Whenever required under this Section 2 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 

(a)    prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its
commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period
of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however, that (i) such one hundred twenty (120) day period shall be
extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration, and (ii) in the case of any
registration of Registrable Securities on Form S-3 that are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty (120) day
period shall be extended for up to sixty (60) days, if necessary, to keep the registration statement effective until all such Registrable Securities are sold; 

(b)    prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus
used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement; 

  
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 (c)    furnish to the selling Holders such numbers of copies of a
prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities; 

(d)    use its commercially reasonable efforts to register and qualify the securities covered by such registration
statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall not be required to qualify to do
business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act; 

(e)    in the event of any underwritten public offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the underwriter(s) of such offering; 
 (f)    use its commercially
reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities
issued by the Company are then listed; 
 (g)    provide a transfer agent and registrar for all Registrable Securities
registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; 

(h)    promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any
disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents and properties of
the Company, and cause the Company’s officers, directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent, in each case, as necessary or
advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith; 

(i)    notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration
statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and 

(j)    after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the
Company amend or supplement such registration statement or prospectus. 
 In addition, the Company shall ensure that, at all times after any
registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company’s directors may implement a trading program under
Rule 10b5-1 of the Exchange Act. 

  
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 2.5    Furnish Information. It shall be a condition precedent to
the obligations of the Company to take any action pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself,
the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder’s Registrable Securities. 

2.6    Expenses of Registration. All expenses (other than Selling Expenses, which shall be borne by the Holders as
provided herein) incurred in connection with registrations, filings or qualifications pursuant to Section 2, including all (a) registration, filing, and qualification fees, (b) printers’ and accounting fees,
(c) fees and disbursements of counsel for the Company and (d) the reasonable fees and disbursements of one (1) counsel for the selling Holders (“Selling Holder Counsel”), shall be borne and paid by the Company;
provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Subsection 2.1 if the registration request is subsequently withdrawn at the
request of the Holders of a majority of the Registrable Securities to be registered in such registration (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in
the withdrawn registration), unless the Holders of a majority of the Registrable Securities to be registered in such registration elect not to pay the registration expenses therefor and forfeit their right to one (1) demand registration
statement pursuant to Subsection 2.1(a); provided, further, that if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the
Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit
their right to one registration pursuant to Subsection 2.1(a). All Selling Expenses relating to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by the Holders
pro rata on the basis of the number of Registrable Securities registered on their behalf. 
 2.7    Delay of
Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or
implementation of this Section 2. 
 2.8    Indemnification. If any Registrable Securities are
included in a registration statement under this Section 2: 
 (a)    To the extent permitted
by law, the Company will indemnify and hold harmless (i) each selling Holder, and the partners, members, officers, directors and stockholders of each such Holder, (ii) legal counsel and accountants for each such Holder, (iii) any
underwriter (as defined in the Securities Act) for each such Holder and (iv) each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will
pay to each such Holder, underwriter, controlling Person or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as
such 

  
 10 

 
expenses are incurred; provided, however, that the indemnity agreement contained in this Subsection 2.8(a) shall not apply to amounts paid in settlement of
any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon
actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person or other aforementioned Person expressly for use in connection with such
registration. 
 (b)    To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify
and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any) who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the
Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent
that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration; and each
such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such
expenses are incurred; provided, however, that the indemnity agreement contained in this Subsection 2.8(b) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is
effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, further, that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under
Subsections 2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder. 

(c)    Promptly after receipt by an indemnified party under this Subsection 2.8 of notice of the
commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this
Subsection 2.8, give the indemnifying party notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate
jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other
indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one (1) separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action. The failure to give notice to the
indemnifying party within a reasonable time following the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Subsection 2.8, to the extent that such
failure materially prejudices the indemnifying party’s ability to defend such action. The failure to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this
Subsection 2.8. 

  
 11 

 (d)    To provide for just and equitable contribution to joint liability
under the Securities Act in any case in which either (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Subsection 2.8 but it is judicially determined (by
the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that
this Subsection 2.8 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this
Subsection 2.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities or expenses to which they may be subject (after contribution from others) in such proportion as
is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions or other actions that resulted in such loss, claim, damage, liability or expense, as well as to
reflect any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material
fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission; provided, however, that, in any such case (A) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by
such Holder pursuant to such registration statement, and (B) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation; provided, further, that in no event shall a Holder’s liability pursuant to this Subsection 2.8(d), when combined with the amounts paid or payable by such Holder
pursuant to Subsection 2.8(b), exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder. 

(e)    Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in
the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 

(f)    Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public
offering, the obligations of the Company and Holders under this Subsection 2.8 shall survive the completion of any offering of Registrable Securities in a registration under this Section 2, and otherwise shall
survive the termination of this Agreement. 
 2.9    Reports Under Exchange Act. With a view to making available
to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall: 
 (a)    make and keep available adequate current public
information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO; 

  
 12 

 (b)    use commercially reasonable efforts to file with the SEC in a
timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and 

(c)    furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to
the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the
IPO), the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form
S-3 (at any time after the Company so qualifies) and (ii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any
such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies
to use such form). 
 2.10    Limitations on Subsequent Registration Rights. From and after the date of this
Agreement, the Company shall not, without the prior written consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company that
would provide to such holder the right to include securities in any registration on other than either a pro rata basis with respect to the Registrable Securities or on a subordinate basis after all Holders have had the opportunity to include in the
registration and offering all shares of Registrable Securities that they wish to so include; provided that this limitation shall not apply to any additional Investor who becomes a party to this Agreement in accordance with
Subsection 6.9. 
 2.11    “Market
Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter(s), during the period commencing on the date of the final
prospectus relating to the registration by the Company for its own behalf of shares of its Common Stock or any other equity securities under the Securities Act on a registration statement on Form S-1, and
ending on the date specified by the Company and the managing underwriter(s) (such period not to exceed one hundred eighty (180) days), (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly)
for Common Stock held immediately before the effective date of the registration statement for such offering or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this
Subsection 2.11 shall apply only to the IPO, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares (A) by any Holder who is a natural person to
any trust for the direct or indirect benefit of such Holder or such Holder’s spouse or descendants (whether natural or adopted) or (B) by any Holder that is a trust to the natural persons who are beneficiaries of such Holder, provided
that, in each case, the trustee of such trust (in the case of clause (A)) or such natural persons (in the case of clause (B)) agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer

  
 13 

 
shall not involve a disposition for value, and shall be applicable to the Holders only if all officers, directors and stockholders individually owning more than one percent (1%) of the
Company’s outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding Preferred Stock) are subject to the same restrictions. The underwriters in connection with such registration are intended third-party
beneficiaries of this Subsection 2.11 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be
reasonably requested by the underwriters in connection with such registration that are consistent with this Subsection 2.11 or that are necessary to give further effect thereto. Any discretionary waiver or termination of
the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject to such agreements, based on the number of shares subject to such agreements. Notwithstanding the foregoing, in the
event that the Company and/or the underwriter(s) in connection with the IPO agree to allow any officer, director or stockholders individually owning more than one percent (1%) of the Company’s outstanding Common Stock (after giving effect to
conversion into Common Stock of all outstanding Preferred Stock) to hold its shares of Company capital stock subject to lock-up restrictions which are more favorable to such securityholder than the lock-up restrictions set forth in this Subsection 2.11, the lock-up restrictions applicable to such Registrable Securities held by any Major Investor
will be automatically amended to conform to the more favorable lock-up restrictions applicable to the shares held by such securityholder. 

2.12    Legend. Each certificate, instrument or book entry representing (i) the Preferred Stock, (ii) the
Registrable Securities and (iii) any other securities issued in respect of the securities referenced in clauses (i) and (ii), upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall be notated
with a legend substantially in the following form: 
 THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD, PLEDGED OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT. 

Notwithstanding the foregoing, the Company shall be obligated to reissue promptly unlegended certificates at the request of any Holder if the Company has
completed its IPO or in connection with a sale of Registrable Securities by a Holder pursuant to SEC Rule 144 and the Holder shall have obtained an opinion of counsel (which counsel may be counsel to the Company) reasonably acceptable to the Company
(it being understood that internal securities counsel of any Major Investor shall be deemed acceptable for transfers by any such Major Investor or Affiliate thereof) to the effect that the securities proposed to be disposed of may lawfully be so
disposed of without registration, qualification and legend. 
 2.13    Termination of Registration Rights. The
right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to Subsection 2.1 or Subsection 2.2 shall terminate upon earliest to occur of: 

(a)    the closing of a Deemed Liquidation Event, as such term is defined in the Company’s Third Amended and Restated
Certificate of Incorporation (the “Certificate of Incorporation”), in which the consideration received by the Investors is in the form of cash and/or freely-tradeable marketable securities; 

  
 14 

 (b)    such time as SEC Rule 144 or another similar exemption under the
Securities Act is available for the sale of all of such Holder’s shares without limitation during a three (3) month period without registration; 

(c)    the fifth (5th) anniversary of the IPO; and 

(d)    the Redemption Date (as defined in the Certificate of Incorporation); provided, that if any Investor elects
to exclude any shares of Preferred Stock held by such Investor from any redemption under Section (B)(6) of Article Fourth of the Certificate of Incorporation, then the right of such Investor to request registration or inclusion of
Registrable Securities in any registration pursuant to Subsection 2.1 or Subsection 2.2 shall not terminate on the Redemption Date. 

3.    Information and Observer Rights. 

3.1    Delivery of Financial Statements. The Company shall deliver: 

(a)    to each Investor, as soon as practicable, but in any event within one hundred twenty (120) days after the end
of each fiscal year of the Company, (i) a balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, (iii) a statement of stockholders’ equity as of the end of such year, all such
financial statements set forth in subsections (i) through (iii) audited and certified by independent public accountants of regionally recognized standing selected by the Company, and (iv) a comparison between (A) the actual
amounts as of and for such fiscal year and (B) the comparable amounts included in the Budget (as defined below) for such year, with an explanation of any material differences between such amounts and a schedule as to the sources and
applications of funds for such year; 
 (b)    to each Investor, as soon as practicable, but in any event within
forty-five (45) days after the end of each fiscal quarter of the Company, (i) unaudited statements of income and cash flows for such fiscal quarter, (ii) an unaudited balance sheet and a statement of stockholders’ equity as of
the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements contemplated by subsection (i) or (ii) may (A) be subject to normal year-end audit
adjustments and (B) not contain all notes thereto that may be required in accordance with GAAP), and (iii) a comparison between (x) the actual amounts as of and for such fiscal quarter and (y) the comparable amounts included in
the Budget for such quarter, with an explanation of any material differences between such amounts and a schedule as to the sources and applications of funds for such quarter; 

(c)    to each Investor, as soon as practicable, a budget and business plan for the next fiscal year (collectively, the
“Budget”), approved by the Board and prepared on a quarterly basis, including balance sheets, income statements, and statements of cash flow for such months and, promptly after prepared, any other budgets or revised budgets prepared
by the Company; 
 (d)    to each Major Investor, copies of all materials distributed to the Board; and 

  
 15 

 (e)    to each Investor, promptly and accurately, and shall use its best
efforts to cause its transfer agent to promptly respond to requests by such Investor from time to time for, information relating to, the (i) accounting or securities law matters required in connection with such Investor’s audit or
(ii) the actual holdings of such Investor, including in relation to the total outstanding number of shares of each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the
end of the period, the Common Stock issuable upon conversion or exercise of any outstanding securities convertible or exercisable for Common Stock and the exchange ratio or exercise price applicable thereto, and the number of shares of issued stock
options and stock options not yet issued but reserved for issuance, if any, all in sufficient detail as to permit the requesting Investor to calculate its respective percentage equity ownership in the Company. 

If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period
the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries. 

Notwithstanding anything else in this Subsection 3.1 to the contrary, other than with respect to any Major Investor,
the Company may cease providing the information set forth in this Subsection 3.1 during the period starting with the date sixty (60) days before the Company’s good-faith estimate of the date of filing of a
registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related offering; provided that the Company’s covenants under this
Subsection 3.1 shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective. 

3.2    Visitation and Inspection. The Company shall permit each Investor, at such Investor’s expense, to visit
and inspect the Company’s properties, examine its books of account and records, and discuss the Company’s affairs, finances and accounts with its officers, during normal business hours of the Company as may be reasonably requested by such
Investor; provided, however, that the Company shall not be obligated pursuant to this Subsection 3.2 to provide access to any information that it reasonably and in good faith considers to be a trade secret or confidential
information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel. 

3.3    Observer Rights. The Company shall invite one representative of each of (i) Fidelity, (ii) QSIP LP, on
behalf of the Quantum/Aisling Investors and (iii) any other Investor for so long as such Investor (A) owns not less than nine percent (9%) of the shares of the then outstanding Preferred Stock (or an equivalent amount of Common Stock
issued upon conversion thereof) and (B) is not entitled to appoint a member of the Board pursuant to Subsection 1.2 of that certain Second Amended and Restated Voting Agreement, dated as of the date hereof, by and among the Company and the
other parties thereto (the “Voting Agreement”), to attend all meetings of the Board and any committee thereof in a nonvoting observer capacity and, in this respect, shall give each such representative copies of all notices, minutes,
consents and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided, however, that each such representative shall agree to hold in confidence

  
 16 

 
and trust all information so provided; provided, further, that the Company reserves the right to withhold any information and to exclude any such representative from any meeting or
portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest. 

3.4    Termination of Information and Observer Rights. The covenants set forth in
Subsection 3.1, Subsection 3.2 and Subsection 3.3 shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO,
(ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act or (iii) upon a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation, in
which the consideration received by the Investors is in the form of cash and/or freely-tradeable marketable securities, whichever event occurs first. 

3.5    Confidentiality. Each Investor agrees that such Investor will keep confidential and will not disclose,
divulge or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Agreement (including notice of the Company’s intention to file a
registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Subsection 3.5 by such Investor), (b) is or has been
independently developed or conceived by the Investor without use of the Company’s confidential information or (c) is or has been made known or disclosed to the Investor by a third party without a breach of any obligation of confidentiality
such third party may have to the Company; provided, however, that (1) each Investor that is a limited partnership or limited liability company may disclose such proprietary or confidential information to any former partners or
members who retained an economic interest in such Investor, current or prospective partner of the partnership or any subsequent partnership under common investment management, limited partner, general partner, member or management company of such
Investor (or any employee or representative of any of the foregoing); provided, that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information,
(2) an Investor may disclose confidential information (i) to its attorneys, accountants, consultants and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company,
(ii) to any prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Subsection 3.5, (iii) to any Affiliate, partner, member,
stockholder or wholly owned subsidiary of such Investor in the ordinary course of business; provided, that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such
information or (iv) as may otherwise be required by law; provided, that the Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure and (3) each
Investor that is a registered investment company within the meaning of the Investment Company Act, may make disclosures consistent with such Investor’s required investment reporting practices. The obligations of an Investor under this
Subsection 3.5 shall terminate two (2) years after the earlier of: (x) such time as the Investor no longer holds any shares of Preferred Stock and (y) a Deemed Liquidation Event, as such term is defined in
the Certificate of Incorporation. 

  
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 4.    Rights to Future Stock Issuances. 

4.1    Right of First Offer. Subject to the terms and conditions of this Subsection 4.1
and applicable securities laws, if the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Holder. A Major Holder shall be entitled to apportion the right of first offer hereby
granted to it in such proportions as it deems appropriate, among (i) itself and (ii) its Affiliates; provided, that, as a condition precedent to any issuance of such New Securities to such Affiliate, the Company shall require any
such Affiliate (x) to become a party to this Agreement by executing a counterpart signature page hereto agreeing to be bound by and subject to the terms of this Agreement as a Major Holder and (y) to become a party to the Voting Agreement
and that certain Second Amended and Restated Right of First Refusal and Co-Sale Agreement, dated as of the date hereof, by and among the Company and the other parties thereto by executing a counterpart
signature page thereto agreeing to be bound by and subject to the terms of such agreements. 
 (a)    The Company shall
give notice (the “Offer Notice”) to each Major Holder, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered and (iii) the price and terms, if any, upon
which it proposes to offer such New Securities. 
 (b)    By notification to the Company within twenty (20) days
after the Offer Notice is given, each Major Holder may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Common Stock
then held by such Major Holder (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held by such Major Holder)
bears to the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Stock and other Derivative Securities) (such portion, a Major Holder’s “Pro Rata
Amount”). At the expiration of such twenty (20) day period, the Company shall promptly notify each Major Holder that elects to purchase or acquire all the shares available to it (each, a “Fully Exercising Investor”) of
any other Major Holder’s failure to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company, elect to purchase or acquire, in
addition to the number of shares specified above, up to that portion of the New Securities for which Major Holders were entitled to subscribe but that were not subscribed for by the Major Holders which is equal to the proportion that the Common
Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and
held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. The
closing of any sale pursuant to this Subsection 4.1(b) shall occur within the later of ninety (90) days following the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to
Subsection 4.1(c). 
 (c)    If all New Securities referred to in the Offer Notice are not
elected to be purchased or acquired as provided in Subsection 4.1(b), then the Company may, during the ninety (90) day period following the expiration of the periods provided in
Subsection 4.1(b), offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less 

  
 18 

 
than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such
period, or if such agreement is not consummated within thirty (30) days following the execution thereof, then the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the
Major Holders in accordance with this Subsection 4.1. 
 (d)    The right of first offer in
this Subsection 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Certificate of Incorporation) or (ii) Common Stock issued in the IPO. 

(e)    Notwithstanding any provision hereof to the contrary, in lieu of complying with the provisions of this
Subsection 4.1, the Company may elect to give notice to the Major Holders within thirty (30) days after the issuance of any New Securities. Such notice shall describe the type, price and terms of the New Securities.
Each Major Holder shall have twenty (20) days from the date notice is given to elect to purchase up to the number of New Securities that would, if purchased by such Major Holder, maintain such Major Holder’s percentage-ownership position,
calculated as set forth in Subsection 4.1(b) before giving effect to the issuance of such New Securities. The closing of such sale shall occur within sixty (60) days following the date that notice is given to the Major
Holders. 
 4.2    Termination. The covenants set forth in Subsection 4.1 shall
terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act or
(iii) upon a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation, in which the consideration received by the Investors is in the form of cash and/or freely-tradeable marketable securities, whichever event
occurs first. 
 5.    Additional Covenants. 

5.1    Insurance. The Company has obtained, from financially sound and reputable insurers, Directors and Officers
liability insurance in an amount and on terms and conditions satisfactory to the Board (including the directors appointed by Vivo, Valor and HBM (the “Investor Directors”) pursuant to Subsection 1.2 of the Voting Agreement),
and will use commercially reasonable efforts to cause such insurance policy to be maintained until such time as the Board (including the Investor Directors) determines that such insurance should be discontinued. Notwithstanding any other provision
of this Section 5.1 to the contrary, for so long as the Investor Directors are serving on the Board, the Company shall not cease to maintain a Directors and Officers liability insurance policy in an amount of at least five
million dollars ($5,000,000) unless approved by the Investor Directors. 
 5.2    Employee Agreements. The
Company has caused or will cause (a) each person now or hereafter employed by it or by any subsidiary (or engaged by the Company or any subsidiary as a consultant/independent contractor) with access to confidential information and/or trade
secrets to enter into a nondisclosure and proprietary rights assignment agreement, and (b) any employee who receives shares or options to purchase shares of capital stock of the Company to enter into a one (1) year noncompetition and
nonsolicitation agreement, substantially in the form approved by the Board. In addition, the Company shall not amend, modify, terminate, waive or otherwise alter to reduce the term of any noncompetition or nonsolicitation restriction in any such
noncompetition and nonsolicitation agreement, without the consent of the Board. 

  
 19 

 5.3    Board Matters. Unless otherwise determined by the vote of
a majority of the directors then in office, the Board shall meet at least quarterly in accordance with an agreed-upon schedule. The Company shall reimburse the directors for all reasonable out-of-pocket travel expenses incurred (consistent with the Company’s travel policy) in connection with attending meetings of the Board. 

5.4    Successor Indemnification. If the Company or any of its successors or assignees consolidates with or merges
into any other Person and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall be made so that the successors and assignees of the Company assume the
obligations of the Company with respect to indemnification of members of the Board as in effect immediately before such transaction, whether such obligations are contained in the Company’s Bylaws, the Certificate of Incorporation, or elsewhere,
as the case may be. 
 5.5    Expenses of Counsel. In the event of a transaction which is a Sale of the Company
(as defined in the Voting Agreement), the reasonable fees and disbursements, not to exceed $200,000, of one (1) counsel for the Investors (“Investor Counsel”), in their capacities as stockholders, shall be borne and paid by the
Company. At the outset of considering a transaction which, if consummated would constitute a Sale of the Company, the Company shall obtain the ability to share with the Investor Counsel (and such counsel’s Investor clients) and shall share the
confidential information (including, without limitation, the initial and all subsequent drafts of memoranda of understanding, letters of intent and other transaction documents and related noncompete, employment, consulting and other compensation
agreements and plans) pertaining to and memorializing any of the transactions which, individually or when aggregated with others would constitute the Sale of the Company. The Company shall be obligated to share (and cause the Company’s counsel
and investment bankers to share) such materials when distributed to the Company’s executives and/or any one or more of the other parties to such transaction(s). In the event that Investor Counsel deems it appropriate, in its reasonable
discretion, to enter into a joint defense agreement or other arrangement to enhance the ability of the parties to protect their communications and other reviewed materials under the attorney client privilege, the Company shall, and shall direct its
counsel to, execute and deliver to Investor Counsel and its clients such an agreement in form and substance reasonably acceptable to Investor Counsel. In the event that one or more of the other party or parties to such transactions require the
Investor clients of Investor Counsel to enter into a confidentiality agreement and/or joint defense agreement in order to receive such information, then the Company shall share whatever information can be shared without entry into such agreement and
shall, at the same time, in good faith work expeditiously to enable Investor Counsel and its clients to negotiate and enter into the appropriate agreement(s) without undue burden to the Investor clients of Investor Counsel. 

5.6    Indemnification Matters. The Company hereby acknowledges that one (1) or more of the directors
nominated to serve on the Board by the Investors (each a “Fund Director”) may have certain rights to indemnification, advancement of expenses and/or insurance provided by one or more of the Investors and certain of their affiliates
(collectively, the “Fund Indemnitors”). The Company hereby agrees (a) that it is the indemnitor of first resort (i.e., its obligations to any such 

  
 20 

 
Fund Director are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Fund Director are
secondary), (b) that it shall be required to advance the full amount of expenses incurred by such Fund Director and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement by or on behalf of
any such Fund Director to the extent legally permitted and as required by the Certificate of Incorporation or the Company’s Bylaws (or any agreement between the Company and such Fund Director), without regard to any rights such Fund Director
may have against the Fund Indemnitors, and (c) that it irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in
respect thereof. The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of any such Fund Director with respect to any claim for which such Fund Director has sought indemnification from the Company shall affect
the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Fund Director against the Company. 

5.7    Right to Conduct Activities. The Company hereby agrees and acknowledges that certain of the Investors, such
Investors’ respective affiliates and the Fidelity Investors are professional investment managers and/or funds (collectively, the “Professional Investment Funds”), and as such, invest in numerous portfolio companies, some of
which may be deemed competitive with the Company’s business (as currently conducted or as currently proposed to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, none of the Professional Investment
Funds shall be liable to the Company for any claim arising out of, or based upon, (a) the investment by any of them in any entity competitive to the Company, or (b) actions taken by any partner, officer or other representative of any of
them to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company;
provided, however, that the foregoing shall not relieve (i) any of the Investors from liability associated with the unauthorized disclosure of the Company’s confidential information obtained pursuant to this Agreement, or
(ii) any director or officer of the Company from any liability associated with his or her fiduciary duties to the Company. 

5.8    FCPA. The Company represents that it shall not (and shall not permit any of its subsidiaries or affiliates
or any of its or their respective directors, officers, managers, employees, independent contractors, representatives or agents to) promise, authorize or make any payment to, or otherwise contribute any item of value to, directly or indirectly, to
any third party, including any Non-U.S. Official (as such term is defined in the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”)), in each case, in violation of the FCPA,
the U.K. Bribery Act or any other applicable anti-bribery or anti-corruption law. The Company further represents that it shall (and shall cause each of its subsidiaries and affiliates to) cease all of its or their respective activities, as well as
remediate any actions taken by the Company, its subsidiaries or affiliates, or any of their respective directors, officers, managers, employees, independent contractors, representatives or agents in violation of the FCPA, the U.K. Bribery Act or any
other applicable anti-bribery or anti-corruption law. The Company further represents that it shall (and shall cause each of its subsidiaries and affiliates to) maintain systems of internal controls (including, but not limited to, accounting systems,
purchasing systems and billing systems) to ensure compliance with the FCPA, the U.K. Bribery Act or any other applicable anti-bribery or anti-corruption law. Upon request, 

  
 21 

 
the Company agrees to provide responsive information and/or certifications concerning its compliance with applicable anti-corruption laws. The Company shall promptly notify each Investor if the
Company becomes aware of any allegation, voluntary disclosure, investigation, prosecution or other enforcement action related to the FCPA or any other anti-corruption law. The Company shall, and shall cause any direct or indirect subsidiary or
entity controlled by it, whether now in existence or formed in the future, to comply with the FCPA. The Company shall use its best efforts to cause any direct or indirect subsidiary, whether now in existence or formed in the future, to comply in all
material respects with all applicable laws. 
 5.9    Approval of Material Transactions. The Company shall not,
without approval of the Board and, so long as at least 44,236,730 shares of Preferred Stock (which number is subject to appropriate adjustment for all stock splits, dividends, combinations, recapitalizations and the like) remain outstanding at such
time, the holders of a majority of the shares of Preferred Stock, (a) consummate any material acquisition of any pharmaceutical product, or (b) enter into any line of business other than the acquisition, development, sale, distribution and
lifecycle management of pharmaceutical products or biologics and any similar, related or complementary business or activity. 

5.10    Termination of Covenants. The covenants set forth in this Section 5 (other than
Subsection 5.4) shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of
Section 12(g) or 15(d) of the Exchange Act or (iii) upon a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation, in which the consideration received by the Investors is in the form of cash and/or
freely-tradeable marketable securities, whichever event occurs first. 
 6.    Miscellaneous. 

6.1    Successors and Assigns. The rights under this Agreement may be assigned (but only with all related
obligations) by any party hereto to a transferee of the Preferred Stock or Common Stock, as the case may be, held by such party; provided, however, that (a) the Company is, within a reasonable time after such transfer, furnished
with written notice of the name and address of such transferee and the Preferred Stock or Common Stock, as the case may be, with respect to which such rights are being transferred, and (b) such transferee agrees in a written instrument
delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of Subsection 2.11. The terms and conditions of this Agreement inure to the benefit of and are
binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees
any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein. 

6.2    Governing Law. This Agreement shall be governed by the internal law of the State of Delaware, without giving
effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 

  
 22 

 6.3    Counterparts. This Agreement may be executed in two
(2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature
complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 

6.4    Titles and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not
to be considered in construing or interpreting this Agreement. 
 6.5    Notices. All notices required or
permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified; (b) when sent by confirmed electronic mail or confirmed facsimile if sent during normal business hours
of the recipient, if not, then on the next business day; (c) one (1) business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt; or (d) five (5) business
days after having been sent by registered or certified mail, return receipt requested, postage prepaid. All communications to the Company shall be sent to: 

Harmony Biosciences II, Inc. 

[Address] 
 with a copy (which
shall not constitute notice) to: 
 Katten Muchin Rosenman LLP 

[Address] 
 All communications to the Investors
and Key Holders shall be sent to each Investor’s or Key Holder’s address as set forth beneath its name on Schedule A or Schedule B hereto, as applicable, or at such other address as the
relevant recipient may designate pursuant to the provisions of this Section 6.5, with a copy (which shall not constitute notice) to: 

Cooley LLP 
 [Address] 

DLA Piper LLP (US) 
 [Address]

  
 23 

 Fenwick & West LLP 

[Address] 
 Vedder Price LLP

 [Address] 
 McDermott
Will & Emery LLP 
 [Address] 

Notwithstanding any of the foregoing, with respect to HBM, only a nationally recognized overnight courier shall be used to effectuate the delivery of any
notices pursuant to this Section 6.5, and such notice or other communication for purposes of this Agreement shall not be treated as effective or having been given if some other delivery method is utilized. 

6.6    Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this
Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of a majority of the Preferred Stock then outstanding; provided,
that any provision hereof may be waived by any waiving party on such party’s own behalf, without the consent of any other party. Notwithstanding the foregoing, (a) this Agreement may not be amended or terminated and the observance of any
term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, termination or waiver applies to all Investors in the same fashion; provided, however, that in the event
that the right of first offer in Section 4 is waived with respect to any issuance of New Securities, and one or more of the Major Holders that consented to such waiver (each a “Waiving Major Holder”)
nevertheless purchases any such New Securities, each Major Holder that is not a Waiving Major Holder shall be entitled to purchase their Pro Rata Amount in such offering (or such lesser amount as corresponding to the proportionate amount of New
Securities purchased by such Waiving Major Holder, in the event such Waiving Major Holder purchased less than its Pro Rata Amount), (b) for so long as any Fidelity Investor holds any shares of Registrable Securities, the definition of
“Affiliate” as it relates to a Fidelity Investor, the definitions of “Fidelity” and “Fidelity Investor”, and Subsections 5.7, 6.14 and this clause (b) of this
Subsection 6.6 may not be amended, terminated or waived without the prior written consent of Fidelity, (c) for so long as a Major Investor (other than any Fidelity Investor with respect to
Subsections 2.11, 3.1, 3.2, 3.3, 3.4, 3.5 and this clause (c) of this Subsection 6.6, or any Quantum/Aisling Investor with respect to

  
 24 

 
Subsections 3.3, 3.4 and this clause (c) of this Subsection 6.6) holds any shares of Registrable Securities, any rights provided or
granted to, or any obligations imposed upon, such Major Investor under Subsections 2.11, 3.1, 3.2, 3.3, 3.4, 3.5 and this clause (c) of this
Subsection 6.6 may be amended or waived (either generally or in a particular instance) in a manner that adversely affects any such Major Investor only with the written consent of the Major Investors holding a majority of
the shares of Preferred Stock held by all Major Investors (other than any Fidelity Investor with respect to Subsections 2.11, 3.1, 3.2, 3.3, 3.4, 3.5 and this clause (c) of this
Subsection 6.6, or any Quantum/Aisling Investor with respect to Subsections 3.3, 3.4 and this clause (c) of this Subsection 6.6) adversely affected thereby,
(d) for so long as any Fidelity Investor holds any shares of Registrable Securities, any rights provided or granted to, or any obligations imposed upon, such Fidelity Investor under Subsections 2.11, 3.1,
3.2, 3.3, 3.4, 3.5 and this clause (d) of this Subsection 6.6 may be amended or waived (either generally or in a particular instance) in a manner that adversely affects such Fidelity
Investor only with the written consent of such Fidelity Investor, (e) for so long as any Quantum/Aisling Investor holds any shares of Registrable Securities, any rights provided or granted to, or any obligations imposed upon, such
Quantum/Aisling Investor under Subsections 3.3, 3.4 and this clause (e) of this Subsection 6.6 may be amended or waived (either generally or in a particular instance) in a manner that
adversely affects such Quantum/Aisling Investor only with the written consent of such Quantum/Aisling Investor, (f) the definition of “Major Investor” may not be amended to delete any Major Investor without the consent of such Major
Investor, (g) for so long as Novo holds any shares of Registrable Securities, the definition of “Affiliate” as it relates to Novo may not be amended, terminated or waived without the prior written consent of Novo and (h) this
Agreement may not be amended, and no provision hereof may be waived, in each case, in any way that would adversely affect the rights of the Key Holders hereunder without the written consent of the holders of a majority of the Registrable Securities
held by the Key Holders. The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination or waiver. Any amendment, termination or
waiver effected in accordance with this Subsection 6.6 shall be binding on all parties hereto, regardless of whether any such party has consented thereto. No waivers of or exceptions to any term, condition or provision of
this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition or provision. Notwithstanding the foregoing, this Agreement may not be terminated without the prior
written consent of the holders of at least two thirds (66 2/3%) of the Preferred Stock then outstanding. 

6.7    Severability. In case any one or more of the provisions contained in this Agreement is for any reason held
to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal or unenforceable provision shall be reformed and construed so
that it will be valid, legal and enforceable to the maximum extent permitted by law. 
 6.8    Aggregation of
Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as
among themselves in any manner they deem appropriate. 
 6.9    Additional Investors. Notwithstanding anything to
the contrary contained herein, if the Company issues additional shares of the Preferred Stock after the date hereof, whether 

  
 25 

 
pursuant to the Purchase Agreement or otherwise, any purchaser of such shares of Preferred Stock may become a party to this Agreement by executing and delivering an additional counterpart
signature page to this Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as
such additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” hereunder. 

6.10    Entire Agreement. This Agreement (including any Schedules and Exhibits hereto) constitutes the full
and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties, including the Prior Agreement, is
expressly canceled. 
 6.11    Dispute Resolution. The parties (a) hereby irrevocably and unconditionally
submit to the jurisdiction of the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware, or if the Delaware Court of Chancery declines to accept jurisdiction over a particular action or proceeding, any
federal court within the State of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this
Agreement except in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware, or if the Delaware Court of Chancery declines to accept jurisdiction over a particular action or proceeding, any federal court
within the State of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the
above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or
the subject matter hereof may not be enforced in or by such court. 
 WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OF THE COMPANY OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE),
BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS
AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 

The prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such
party may be entitled. 

  
 26 

 6.12    Delays or Omissions. No delay or omission to exercise any
right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such nonbreaching or nondefaulting party, nor shall it be
construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 

6.13    Acknowledgment. The Company acknowledges that the Investors are in the business of venture capital
investing and therefore review the business plans and related proprietary information of many enterprises, including enterprises which may have products or services which compete directly or indirectly with those of the Company. Nothing in this
Agreement shall preclude or in any way restrict the Investors from investing or participating in any particular enterprise whether or not such enterprise has products or services which compete with those of the Company. 

6.14    Massachusetts Business Trust. A copy of this Agreement and Declaration of Trust of each Investor affiliated
with Fidelity, or any affiliate thereof, is on file with the Secretary of State of the Commonwealth of Massachusetts and notice is hereby given that this Agreement is executed on behalf of the trustees of such Investor or any affiliate thereof as
trustees and not individually and that the obligations of this Agreement are not binding on any of the trustees, officers or stockholders of such Investor or any affiliate thereof individually but are binding only upon such Investor or any affiliate
thereof and its assets and property. 
 6.15    Investor Consent and Waiver. Each of the holders of the Series A
Preferred Stock and the Series B Preferred Stock executing this Agreement, and each of the Key Holders executing this Agreement, hereby: 

(a)    approves and consents to the execution and filing of the Third Amended and Restated Certification of Incorporation
and the terms thereof, including the creation of the Series C Preferred Stock and the increase in the number of authorized shares of Common Stock; 

(b)    approves and consents to the Series C Issuance; and 

(c)    except to the extent set forth in the Purchase Agreement, elects not to purchase any Series C Preferred Stock in
the Series C Issuance and irrevocably waives in the entirety, on behalf of itself and, together with all other holders of the Series A Preferred Stock and the Series B Preferred Stock executing this Agreement, on behalf of all Major Holders, their
respective Series C ROFR and all notice requirements set forth in Section 4 of the Prior Agreement in connection therewith. 

[Signature Pages Follow] 

  
 27 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 COMPANY:

 
 HARMONY BIOSCIENCES II, INC.

		
	By:	 	/s/ Andrew Serafin
		 	Name: Andrew Serafin
		 	Title: Assistant Secretary

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 KEY HOLDER:

 
 MARSHMAN FUND TRUST II

		
	By:	 	/s/ Charles Harris
		 	Name: Charles Harris
		 	Title: Trustee

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 KEY HOLDER:

 
 VALOR IV PHARMA HOLDINGS, LLC

		
	By:	 	/s/ Antonio J. Gracias
		 	Name: Antonio J. Gracias
		 	Title: Manager

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 PATRICK J. MORRIS REVOCABLE TRUST U/A/D 3/11/11

		
	By:	 	/s/ Patrick J. Harris
		 	Name: Patrick J. Morris
		 	Title: Grantor and Trustee

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 HBM HEALTHCARE INVESTMENTS (CAYMAN) LTD.

		
	By:	 	/s/ Jean Marc LeSieur
		 	Name: Jean Marc LeSieur
		 	Title: Director

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 WILBUR H. GANTZ III REVOCABLE
TRUST

		
	By:	 	/s/ Wilbur H. Gantz, III
		 	Name: Wilbur H. Gantz, III
		 	Title: Trustee

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 BABAR GHIAS LIVING TRUST DATED AUGUST 7, 2017

		
	By:	 	/s/ Babar Ghias
		 	Name: Babar Ghias
		 	Title: Grantor and Trustee

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF. the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 AISLING CAPITAL IV, LP

		
	By:	 	/s/ Robert Wenzel
		 	Name: Robert Wenzel
		 	Title: CFO

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 TIMOTHY M. CUNNIFF REVOCABLE TRUST U/A/D 12/14/15

		
	By:	 	/s/ Timothy M. Cunniff
		 	Name: Timothy M. Cunniff
		 	Title: Trustee

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 MARSHMAN FUND TRUST II

		
	By:	 	/s/ Charles Harris
		 	Name: Charles Harris
		 	Title: Trustee

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

	
	 INVESTOR:

	
	 /s/ Michael L. Derby

	 Michael L. Derby

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

	
	 INVESTOR:

	
	 /s/ Jeffrey B. Kindler

Jeffrey B. Kindler

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 VALOR IV PHARMA HOLDINGS, LLC

		
	By:	 	/s/ Antonio J. Gracias
		 	Name: Antonio J. Gracias
		 	Title: Manager

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

	
	INVESTOR:
	
	/s/ Darien Parhad
	Darien Parhad

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 STAR INVESTMENT SERIES LLC - SERIES 46

		
	By:	 	/s/ James A. Star
		 	Name: James A. Star
		 	Title: Manager

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 PIVOTAL ALPHA LIMITED

		
	By:	 	/s/ Sun Xintong
		 	Name: Sun Xintong
		 	Title: Director

  

			
	 INVESTOR:

 
 PIVOTAL ALPHA LIMITED

		
	By:	 	/s/ Tang Chun Wai Nelson
		 	Name: Tang Chun Wai Nelson
		 	Title: Director

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 BIOPROJET PHARMA SAS

		
	By:	 	/s/ Jeanne-Marie Lecomte
		 	Name: Jeanne-Marie Lecomte
		 	Title: Chairman

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

	
	 INVESTOR:

	
	 /s/ Robert Pelzer

	Robert Pelzer

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 VIVO CAPITAL SURPLUS FUND VIII, L.P.

 
 By: Vivo Capital VIII, LLC

Its: General Partner

		
	By:	 	/s/ Albert Cha
		 	 Name: Albert Cha

		 	 Title: Managing Member

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 VIVO CAPITAL SURPLUS FUND VIII, L.P.

 
 By: Vivo Capital VIII, LLC

Its: General Partner

		
	By:	 	/s/ Albert Cha
		 	Name: Albert Cha
		 	Title: Managing Member

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 OCTAGON INVESTMENT PARTNERS, LLC

		
	By:	 	/s/ Michael E. Levy
		 	Name: Michael E. Levy
		 	Title: Managing Partner

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

	
	 INVESTOR:

	
	 /s/ Spiro Katerinis

	Spiro Katerinis

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 ANDREW T. SERAFIN REVOCABLE TRUST U/A/D FEBRUARY 9, 2011

		
	By:	 	/s/ Andrew T. Serafin
		 	Name: Andrew T. Serafin
		 	Title: Trustee

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 FIDELITY ADVISOR SERIES VII: FIDELITY ADVISOR HEALTH CARE FUND

		
	By:	 	/s/ Colm Hogan
		 	Name: Colm Hogan
		 	Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 FIDELITY CENTRAL INVESTMENT PORTFOLIOS LLC: FIDELITY HEALTH CARE CENTRAL
FUND

		
	By:	 	/s/ Colm Hogan
		 	Name: Colm Hogan
		 	Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 FIDELITY GROWTH COMPANY COMMINGLED POOL

 
 By: Fidelity Management & Trust Co.

		
	By:	 	/s/ Colm Hogan
		 	 Name: Colm Hogan

		 	 Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 FIDELITY MT. VERNON STREET TRUST: FIDELITY GROWTH COMPANY FUND

		
	By:	 	/s/ Colm Hogan
		 	Name: Colm Hogan
		 	Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 FIDELITY MT. VERNON STREET TRUST: FIDELITY SERIES GROWTH COMPANY FUND

		
	By:	 	/s/ Colm Hogan
		 	Name: Colm Hogan
		 	Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 FIDELITY SELECT PORTFOLIOS: HEALTH CARE PORTFOLIO

		
	By:	 	/s/ Colm Hogan
		 	Name: Colm Hogan
		 	Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 FIDELITY SELECT PORTFOLIOS PHARMACEUTICALS PORTFOLIO

		
	By:	 	/s/ Colm Hogan
		 	Name: Colm Hogan
		 	Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 VARIABLE INSURANCE PRODUCTS FUND IV: HEALTH CARE PORTFOLIO

		
	By:	 	/s/ Colm Hogan
		 	Name: Colm Hogan
		 	Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:
  

NOVO HOLDINGS A/S

		
	By:	 	/s/ Martin Edwards
		 	Name: Martin Edwards
		 	Title: Senior Partner

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 VENBIO GLOBAL STRATEGIC FUND II, L.P.

 
 By: venBio Global Strategic GP II, L.P., its general partner

 
 By: venBio Global Strategic GP II, Ltd., its general partner

		
	By:	 	/s/ Aaron Royston
		 	 Name: Aaron Royston

		 	 Title: Vice President

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:
  

SARA B. CROWN 65 TRUST

		
	By:	 	/s/ Debra Levin
		 	Name: H. Debra Levin
		 	Title: Trustee

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Investors
‘ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:
  

SCI PARTNERS LP

		
	By:	 	/s/ David Taylor
		 	Name: David Taylor
		 	Title: COO/GC

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated
Investors’ Rights Agreement as of the date first written above. 
  

			
	 INVESTOR:

 
 QSIP LP
  

By: Newlight Partners LP as Investment Manager

		
	By:	 	/s/ David Taylor
		 	 Name: David Taylor

		 	 Title: Authorized Signatory

  

SIGNATURE PAGE TO SECOND AMENDED AND
RESTATED INVESTORS’ RIGHTS AGREEMENT 

 SCHEDULE A 

INVESTORS 
 Name and Address

 Marshman Fund Trust II 
 [Address] 

Valor IV Pharma Holdings, LLC 
 [Address] 

Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund  

[Address] 
 Fidelity Growth Company Commingled Pool 

[Address] 
 Fidelity Mt. Vernon Street Trust: Fidelity Growth
Company Fund 
 [Address] 
 Fidelity Advisor Series VII:
Fidelity Advisor Health Care Fund 
 [Address] 

 Fidelity Select Portfolios: Health Care Portfolio 

[Address] 
 Variable Insurance Products Fund IV: Health Care
Portfolio 
 [Address] 
 Fidelity Central Investment
Portfolios LLC: Fidelity Health Care Central Fund 
 [Address] 

Fidelity Select Portfolios: Pharmaceuticals Portfolio 

[Address] 
 Vivo Capital Fund VIII, L.P. 

[Address] 
 Vivo Capital Surplus Fund VIII, L.P. 

[Address] 
 HBM Healthcare Investments (Cayman) Ltd. 

[Address] 

 Novo Holdings A/S 

[Address] 
 venBio Global Strategic Fund II, L.P. 

[Address] 
 Bioprojet Pharma, SAS 

[Address] 
 Pivotal Alpha Limited 

[Address] 

 Star Investment Series LLC – Series 46 

[Address] 
 Sara B. Crown 65 Trust 

[Address] 
 Octagon Investment Partners, LLC 

[Address] 
 Patrick J. Morris Revocable Trust U/A/D 3/11/11

 [Address] 
 Timothy M. Cunniff Revocable Trust U/A/D
12/14/15 
 [Address] 
 Babar Ghias Living Trust dated
August 7, 2017 
 [Address] 
 Jeffrey B. Kindler

 [Address] 
 Andrew T. Serafin Revocable Trust u/a/d
February 9, 2011 
 [Address] 

 Spiro Katerinis 

[Address] 
 Darien Parhad 

[Address] 
 Wilbur H. Gantz III Revocable Trust 

[Address] 
 Michael L. Derby 

[Address] 
 Robert Pelzer 

[Address] 
 Aisling Capital IV, LP 

[Address] 
 QSIP LP 

[Address] 

 SCI Partners LP 

[Address] 

 SCHEDULE B 

KEY HOLDERS 
 Marshman Fund Trust II

 [Address] 
 Valor IV Pharma Holdings, LLC 

[Address]tricida-2018esppfinalame

                                                                  EXHIBIT 10.4                                  TRICIDA, INC.                        EMPLOYEE STOCK PURCHASE PLAN  1. Purpose. The purpose of this Plan is to provide Employees of the Company and Participating  Subsidiaries with an opportunity to purchase common stock of the Company through accumulated payroll  deductions. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase  Plan” under Section 423 of the Code. The provisions of the Plan, accordingly, shall be construed so as to  extend and limit participation in a manner consistent with the requirements of that Section of the Code.  2. Definitions. As used herein, the terms set forth below have the meanings assigned to them in this  Section 2 and shall include the plural as well as the singular.  1933 Act means the Securities Act of 1933, as amended.  1934 Act means the Securities Exchange Act of 1934, as amended.  Board means the Board of Directors of Tricida, Inc.  Business Day shall mean a day on which The NASDAQ Global Select Market (“NASDAQ”) is open for  trading.  Brokerage Account means the account in which the Purchased Shares are held.  Code means the Internal Revenue Code of 1986, as amended.  Committee means the Compensation Committee of the Board, or the designee of the Compensation  Committee.  Company means Tricida, Inc., a Delaware corporation.  Compensation means the base pay received by a Participant, plus commissions, overtime and regular  annual, quarterly and monthly cash bonuses and vacation, holiday and sick pay. Compensation does not  include: (1) income related to stock option awards, stock grants and other equity incentive awards,  (2) expense reimbursements, (3) relocation-related payments, (4) benefit plan payments (including but not  limited to short-term disability pay, long-term disability pay, maternity pay, military pay, tuition  reimbursement and adoption assistance), (5) deceased pay, (6) income from non-cash and fringe benefits,  (7) severance payments, and (8) other forms of compensation not specifically listed herein.  Employee means any individual who is a common law employee of the Company or any other  Participating Subsidiary. For purposes of the Plan, the employment relationship shall be treated as  continuing intact while the individual is on sick leave or other leave of absence approved by the Company  or the Participating Subsidiary, as appropriate, and only to the extent permitted under Section 423 of the  Code. For purposes of the Plan, an individual who performs services for the Company or a Participating  Subsidiary pursuant to an agreement (written or oral) that classifies such individual’s relationship with the  Company or a Participating Subsidiary as other than a common law employee shall not be considered an  “employee” with respect to any period preceding the date on which a court or administrative agency  issues a final determination that such individual is an “employee.”  Enrollment Date means the first Business Day of each Offering Period.  Exercise Date means the last Business Day of each Offering Period (or, if determined by the Committee,  the Purchase Period if different from the Offering Period).                                         1 

 

Fair Market Value on or as of any date means the “NASDAQ Official Closing Price” (as defined on  www.nasdaq.com) (or such substantially similar successor price thereto) for a Share as reported on  www.nasdaq.com (or a substantially similar successor website) on the relevant valuation date or, if no  NASDAQ Official Closing Price is reported on such date, on the preceding day on which a NASDAQ  Official Closing Price was reported; or, if the Shares are no longer listed on NASDAQ, the closing price  for Shares as reported on the official website for such other exchange on which the Shares are listed.  Offering Period means every six-month period beginning each January 1st and July 1st or such other  period designated by the Committee; provided that in no event shall an Offering Period exceed  27 months, with the commencement of the first Offering Period to be determined by the Committee.   Notwithstanding anything herein to the contrary, the Committee may establish an Offering Period with  multiple Purchase Periods within such Offering Period.    Option means an option granted under this Plan that entitles a Participant to purchase Shares.  Participant means an Employee who satisfies the requirements of Sections 3 and 5 of the Plan.  Participating Subsidiary means each Subsidiary other than those that the Committee or the Board has  excluded from participation in the Plan.   Plan means this Tricida, Inc. Employee Stock Purchase Plan.  Purchase Account means the account used to purchase Shares through the exercise of Options under the  Plan.  Purchase Period means the period designated by Committee during which payroll deductions or other  contributions of the Participants are accumulated under the Plan.  A Purchase Period may coincide with  an entire Offering Period or there may be multiple Purchase Periods within an Offering Period, as  determined by the Committee prior to the commencement of the applicable Offering Period.  Purchase Price shall be the lesser of: (i) 85% percent of the Fair Market Value of a Share on the  applicable Enrollment Date for an Offering Period and (ii) 85% percent of the Fair Market Value of a  Share on the applicable Exercise Date; provided, however, that the Committee may determine a different  per share Purchase Price provided that such per share Purchase Price is communicated to Participants  prior to the beginning of the Offering Period and provided that in no event shall such per share Purchase  Price be less than the lesser of (i) 85% of the Fair Market Value of a Share on the applicable Enrollment  Date or (ii) 85% of the Fair Market Value of a Share on the Exercise Date.  Purchased Shares means the full Shares issued or delivered pursuant to the exercise of Options under the  Plan.  Shares means the common stock, par value $0.001 per share, of the Company.  Subsidiary means an entity, domestic or foreign, of which not less than 50% of the voting equity is held  by the Company or a Subsidiary, whether or not such entity now exists or is hereafter organized or  acquired by the Company or a Subsidiary; provided such entity is also a “subsidiary” within the meaning  of Section 424 of the Code.  Termination Date means the date on which a Participant terminates employment or on which the  Participant ceases to provide services to the Company or a Subsidiary as an employee, and specifically  does not include any period following that date which the Participant may be eligible for or in receipt of  other payments from the Company including in lieu of notice or termination or severance pay or as  wrongful dismissal damages.                                          2 

 

3. Eligibility.  (a) Only Employees of the Company or a Participating Subsidiary shall be eligible to be granted Options  under the Plan and, in no event may a Participant be granted an Option under the Plan following his or her  Termination Date.  (b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an Option  under the Plan if (i) immediately after the grant, such Employee (or any other person whose stock would  be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the  Company and/or hold outstanding Options or options to purchase stock possessing 5% or more of the  total combined voting power or value of all classes of stock of the Company or of any of its Subsidiaries  or (ii) such Option would permit his or her rights to purchase stock under all employee stock purchase  plans (described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate that  exceeds $25,000 of the Fair Market Value of such stock (determined at the time each such Option is  granted) for each calendar year in which such Option is outstanding at any time. Except as otherwise  determined by the Committee prior to the commencement of an Offering Period, no Participant may  purchase more than 2,500 Shares during any Offering Period.  4. Exercise of an Option. Options shall be exercised on behalf of Participants in the Plan every Exercise  Date, using payroll deductions that have accumulated in the Participants’ Purchase Accounts during the  immediately preceding Purchase Period or that have been retained from a prior Purchase Period pursuant  to Section 8 hereof.   5. Participation.  (a) An Employee shall be eligible to participate on the first Enrollment Date that occurs after such  Employee’s first date of employment with the Company or a Participating Subsidiary; provided, that such  Employee properly completes and submits an election form by the deadline prescribed by the Company.  (b) An Employee who does not become a Participant on the first Enrollment Date on which he or she is  eligible may thereafter become a Participant on any subsequent Enrollment Date by properly completing  and submitting an election form by the deadline prescribed by the Company.  (c) Payroll deductions for a Participant shall commence on the first payroll date following the Enrollment  Date and shall end on the last payroll date in the Purchase Period to which such authorization is  applicable, unless sooner terminated by the Participant as provided in Section 12 hereof.     6. Payroll Deductions.  (a) A Participant shall elect to have payroll deductions made during a Purchase Period equal to no less  than 1% of the Participant’s Compensation up to a maximum of 15% (or such greater amount as the  Committee establishes from time to time). The amount of such payroll deductions shall be in whole  percentages. All payroll deductions made by a Participant shall be credited to his or her Purchase  Account. A Participant may not make any additional payments into his or her Purchase Account.  (b) Except as otherwise determined by the Committee prior to commencement of an Offering Period, a  Participant may not increase or decrease the rate of payroll deductions during an Offering Period. A  Participant may change his or her payroll deduction percentage under subsection (a) above for any  subsequent Offering Period by properly completing and submitting an election change form in accordance  with the procedures prescribed by the Committee. The change in amount shall be effective as of the first  Enrollment Date following the date of filing of the election change form.  (c) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code  and Section 3(b) hereof, a Participant’s payroll deductions may be decreased to 0% at any time during an                                          3 

 

Offering Period. Payroll deductions shall recommence at the rate provided in such Participant’s election  form at the beginning of the first Offering Period which is scheduled to end in the following calendar  year, unless terminated by the Participant as provided in Section 12 hereof.  7. Grant of Option. On the applicable Enrollment Date, each Participant in an Offering Period shall be  granted an Option to purchase on the applicable Exercise Date a number of full Shares determined by  dividing such Participant’s payroll deductions accumulated prior to such Exercise Date and retained in the  Participant’s Purchase Account as of the applicable Exercise Date by the applicable Purchase Price.   8. Exercise of Option. A Participant’s Option for the purchase of Shares shall be exercised automatically  on the Exercise Date, and the maximum number of Shares subject to the Option shall be purchased for  such Participant at the applicable Purchase Price with the accumulated payroll deductions in his or her  Purchase Account.  If the Fair Market Value of a Share on the first day of the current Offering Period in  which a participant is enrolled is higher than the Fair Market Value of a Share on the first day of any  subsequent Offering Period, the Company may establish procedures to automatically enroll such  participant in the subsequent Offering Period and any funds accumulated in a participant’s account prior  to the first day of such subsequent Offering Period will be applied to the purchase of shares on the  Exercise Date immediately prior to the first day of such subsequent Offering Period. A participant does  not need to file any forms with the Company to be automatically enrolled in the subsequent Offering  Period.   No fractional Shares shall be purchased; any payroll deductions accumulated in a Participant’s Purchase  Account which are not sufficient to purchase a full Share shall be retained in the Purchase Account for the  next subsequent Purchase Period, subject to earlier withdrawal by the Participant as provided in  Section 12 hereof. All other payroll deductions accumulated in a Participant’s Purchase Account and not  used to purchase Shares on an Exercise Date shall be distributed to the Participant. During a Participant’s  lifetime, a Participant’s Option is exercisable only by him or her. The Company shall satisfy the exercise  of all Participants’ Options for the purchase of Shares through (a) the issuance of authorized but unissued  Shares, (b) the transfer of treasury Shares, (c) the purchase of Shares on behalf of the applicable  Participants on the open market through an independent broker and/or (d) a combination of the foregoing.    9. Issuance of Stock. The Shares purchased by each Participant shall be issued in book entry form and  shall be considered to be issued and outstanding to such Participant’s credit as of the end of the last day of  each Purchase Period. The Committee may permit or require that shares be deposited directly in a  Brokerage Account with one or more brokers designated by the Committee or to one or more designated  agents of the Company, and the Committee may use electronic or automated methods of share transfer.  The Committee may require that Shares be retained with such brokers or agents for a designated period of  time and/or may establish other procedures to permit tracking of disqualifying dispositions of such shares,  and may also impose a transaction fee with respect to a sale of Shares issued to a Participant’s credit and  held by such a broker or agent. The Committee may permit Shares purchased under the Plan to participate  in a dividend reinvestment plan or program maintained by the Company, and establish a default method  for the payment of dividends.  10. Approval by Stockholders. Notwithstanding the above, the Plan is expressly made subject to the  approval of the stockholders of the Company within 12 months before or after the date the Plan is adopted  by the Board. Such stockholder approval shall be obtained in the manner and to the degree required under  applicable federal and state law. If the Plan is not so approved by the stockholders within 12 months  before or after the date the Plan is adopted by the Board, this Plan shall not come into effect.   11. Administration.                                          4 

 

(a) Powers and Duties of the Committee. The Plan shall be administered by the Committee. Subject to the  provisions of the Plan, Section 423 of the Code and the regulations thereunder, the Committee shall have  the discretionary authority to determine the time and frequency of granting Options, the duration of  Offering Periods and Purchase Periods, the terms and conditions of the Options and the number of Shares  subject to each Option. The Committee shall also have the discretionary authority to do everything  necessary and appropriate to administer the Plan, including, without limitation, interpreting the provisions  of the Plan (but any such interpretation shall not be inconsistent with the provisions of Section 423 of the  Code). All actions, decisions and determinations of, and interpretations by the Committee with respect to  the Plan shall be final and binding upon all Participants and upon their executors, administrators, personal  representatives, heirs and legatees. No member of the Board or the Committee shall be liable for any  action, decision, determination or interpretation made in good faith with respect to the Plan or any Option  granted hereunder. The Plan shall be administered so as to ensure that all Participants have the same  rights and privileges as are provided by Section 423(b)(5) of the Code.  (b) Administrator. The Company, Board or the Committee may engage the services of a brokerage firm or  financial institution (the “Administrator”) to perform certain ministerial and procedural duties under the  Plan including, but not limited to, mailing and receiving notices contemplated under the Plan, determining  the number of Purchased Shares for each Participant, maintaining or causing to be maintained the  Purchase Account and the Brokerage Account, disbursing funds maintained in the Purchase Account or  proceeds from the sale of Shares through the Brokerage Account, and filing with the appropriate tax  authorities proper tax returns and forms (including information returns) and providing to each Participant  statements as required by law or regulation.    (c) Indemnification. Each person who is or shall have been (a) a member of the Board, (b) a member of  the Committee, or (c) an officer or employee of the Company to whom authority was delegated in relation  to this Plan, shall be indemnified and held harmless by the Company against and from any loss, cost,  liability or expense that may be imposed upon or reasonably incurred by him or her in connection with or  resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or  she may be involved by reason of any action taken or failure to act under the Plan and against and from  any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by  him or her in satisfaction of any judgment in any such claim, action, suit or proceeding against him or her;  provided, however, that he or she shall give the Company an opportunity, at its own expense, to handle  and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless  such loss, cost, liability or expense is a result of his or her own willful misconduct or except as expressly  provided by statute.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to  which such persons may be entitled under the Company’s certificate of incorporation or bylaws, any  contract with the Company, as a matter of law, or otherwise, or of any power that the Company may have  to indemnify them or hold them harmless.  12. Withdrawal. A Participant may withdraw from the Plan by properly completing and submitting to the  Company a withdrawal form in accordance with the procedures prescribed by the Committee, which must  be submitted prior to the date specified by the Committee before the last day of the applicable Offering  Period. Upon withdrawal, any payroll deductions credited to the Participant’s Purchase Account prior to  the effective date of the Participant’s withdrawal from the Plan will be returned to the Participant. No  further payroll deductions for the purchase of Shares will be made during subsequent Offering Periods,  unless the Participant properly completes and submits an election form, by the deadline prescribed by the  Company. A Participant’s withdrawal from an offering will not have any effect upon his or her eligibility  to participate in the Plan or in any similar plan that may hereafter be adopted by the Company.                                          5 

 

13. Termination of Employment. On the Termination Date of a Participant for any reason prior to the  applicable Exercise Date, whether voluntary or involuntary, and including termination of employment due  to retirement, death or as a result of liquidation, dissolution, sale, merger or a similar event affecting the  Company or a Participating Subsidiary, the corresponding payroll deductions credited to his or her  Purchase Account will be returned to him or her or, in the case of the Participant’s death, to the person or  persons entitled thereto under Section 16, and his or her Option will be automatically terminated.  14. Interest. No interest shall accrue on the payroll deductions of a Participant in the Plan.   15. Stock.  (a) The stock subject to Options shall be common stock of the Company as traded on the NASDAQ or on  such other exchange as the Shares may be listed.  (b) Subject to adjustment upon changes in capitalization of the Company as provided in Section 18  hereof, the maximum number of Shares which shall be made available for sale under the Plan shall be  800,000 Shares.  In addition, subject to adjustments upon changes in capitalization of the Company as  provided in Section 18 hereof, the maximum number of Shares which shall be made available for sale  under the Plan shall automatically increase on the first trading day in January of each calendar year during  the term of this Plan, commencing with January 2019, by an amount equal to the lesser of (i) one percent  (1%) of the total number of Shares issued and outstanding on December 31 of the immediately preceding  calendar year, (ii) 800,000 Shares or (iii) such number of Shares as may be established by the Board.  If,  on a given Exercise Date, the number of Shares with respect to which Options are to be exercised exceeds  the number of Shares then available under the Plan, the Committee shall make a pro rata allocation of the  Shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall  determine to be equitable.  (c) A Participant shall have no interest or voting right in Shares covered by his or her Option until such  Option has been exercised and the Participant has become a holder of record of Shares acquired pursuant  to such exercise.  16. Designation of Beneficiary. The Committee may permit Participants to designate beneficiaries to  receive any Purchased Shares or payroll deductions, if any, in the Participant’s accounts under the Plan in  the event of such Participant’s death. Beneficiary designations shall be made in accordance with  procedures prescribed by the Committee. If no properly designated beneficiary survives the Participant,  the Purchased Shares and payroll deductions, if any, will be distributed to the Participant’s estate.  17. Assignability of Options. Neither payroll deductions credited to a Participant’s Purchase Account nor  any rights with regard to the exercise of an Option or to receive Shares under the Plan may be assigned,  transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and  distribution or as provided in Section 16 hereof) by the Participant. Any such attempt at assignment,  transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as  an election to withdraw from an Offering Period in accordance with Section 12 hereof.   18. Adjustment of Number of Shares Subject to Options.  (a) Adjustment. Subject to any required action by the stockholders of the Company, the maximum  number of securities available for purchase under the Plan, as well as the price per security and the  number of securities covered by each Option under the Plan which has not yet been exercised shall be  appropriately adjusted in the event of any a stock split, reverse stock split, stock dividend, combination or  reclassification of the common stock of the Company, or any other increase or decrease in the number of  Shares effected without receipt of consideration by the Company; provided, however, that conversion of  any convertible securities of the Company shall not be deemed to have been “effected without receipt of                                          6 

 

consideration.” Such adjustment shall be made by the Board or the Committee, whose determination in  that respect shall be final, binding and conclusive. If any such adjustment would result in a fractional  security being available under the Plan, such fractional security shall be disregarded. Except as expressly  provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into  shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect  to, the number or price of Shares subject to an Option. The Options granted pursuant to the Plan shall not  be adjusted in a manner that causes the Options to fail to qualify as options issued pursuant to an  “employee stock purchase plan” within the meaning of Section 423 of the Code.  (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the  Offering Period then in progress will terminate immediately prior to the consummation of such proposed  action, unless otherwise provided by the Board, and the Board may either provide for the purchase of  Shares as of the date on which such Offering Period terminates or return to each Participant the payroll  deductions credited to such Participant’s Purchase Account.  (c) Merger or Asset Sale. In the event of a proposed sale of all or substantially all of the assets of the  Company, or the merger of the Company with or into another corporation, each outstanding Option shall  be assumed or an equivalent option substituted by the successor corporation or a parent or subsidiary of  the successor corporation, unless the Board determines, in the exercise of its sole discretion, that in lieu of  such assumption or substitution to either terminate all outstanding Options and return to each Participant  the payroll deductions credited to such Participant’s Purchase Account or to provide for the Offering  Period in progress to end on a date prior to the consummation of such sale or merger.   19. Amendments or Termination of the Plan.  (a) The Board or the Committee may at any time and for any reason amend, modify, suspend, discontinue  or terminate the Plan without notice; provided that no Participant’s existing rights in respect of existing  Options are adversely affected thereby. To the extent necessary to comply with Section 423 of the Code  (or any other applicable law, regulation or stock exchange rule), the Company shall obtain stockholder  approval in such a manner and to such a degree as required.  (b) Without stockholder consent and without regard to whether any Participant rights may be considered  to have been “adversely affected,” the Board or the Committee shall be entitled to change the Purchase  Price, Offering Periods, Purchase Periods, eligibility requirements, limit or increase the frequency and/or  number of changes in the amount withheld during a Purchase Period, establish the exchange ratio  applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in an  amount less than or greater than the amount designated by a Participant in order to adjust for delays or  mistakes in the Company’s processing of properly completed withholding elections, establish reasonable  waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts  applied toward the purchase of Shares for each Participant properly correspond with amounts withheld  from the Participant’s Compensation, and establish such other limitations or procedures as the Board or  the Committee determines in its sole discretion advisable which are consistent with the Plan; provided,  however, that changes to (i) the Purchase Price, (ii) the Offering Period, (iii) the Purchase Period, (iv) the  maximum percentage of Compensation that may be deducted pursuant to Section 6(a) or (v) the  maximum number of Shares that may be purchased in a Purchase Period, shall not be effective until  communicated to Participants in a reasonable manner, with the determination of such reasonable manner  in the sole discretion of the Board or the Committee.  20. No Other Obligations. The receipt of an Option pursuant to the Plan shall impose no obligation upon  the Participant to purchase any Shares covered by such Option. Nor shall the granting of an Option  pursuant to the Plan constitute an agreement or an understanding, express or implied, on the part of the  Company to employ the Participant for any specified period.                                          7 

 

21. Notices and Communication. Any notice or other form of communication which the Company or a  Participant may be required or permitted to give to the other shall be provided through such means as  designated by the Committee, including but not limited to any paper or electronic method.    22. Condition upon Issuance of Shares.  (a) Shares shall not be issued with respect to an Option unless the exercise of such Option and the  issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law,  domestic or foreign, including, without limitation, the 1933 Act and the 1934 Act and the rules and  regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares  may then be listed, and shall be further subject to the approval of counsel for the Company with respect to  such compliance.  (b) As a condition to the exercise of an Option, the Company may require the person exercising such  Option to represent and warrant at the time of any such exercise that the Shares are being purchased only  for investment and without any present intention to sell or distribute such Shares if, in the opinion of  counsel for the Company, such a representation is required by any of the aforementioned applicable  provisions of law.  23. General Compliance. The Plan will be administered and Options will be exercised in compliance with  the 1933 Act, 1934 Act and all other applicable securities laws and Company policies, including without  limitation, any insider trading policy of the Company.  24. Term of the Plan. The Plan shall become effective upon the earlier to occur of (i) its adoption by the  Board and (ii) its approval by the stockholders of the Company (the “Effective Date”), and shall continue  in effect until the earlier of (A) the termination of the Plan pursuant to Section 19 hereof and (B) the ten- year anniversary of the Effective Date, with no new Offering Periods commencing on or after such ten- year anniversary.  25. Governing Law. The Plan and all Options granted hereunder shall be construed in accordance with  and governed by the laws of the State of Delaware without reference to choice of law principles and  subject in all cases to the Code and the regulations thereunder.  26. Non-U.S. Participants. To the extent permitted under Section 423 of the Code, without the  amendment of the Plan, the Company may provide for the participation in the Plan by Employees who are  subject to the laws of foreign countries or jurisdictions on such terms and conditions different from those  specified in the Plan as may in the judgment of the Company be necessary or desirable to foster and  promote achievement of the purposes of the Plan and, in furtherance of such purposes the Company may  make such modifications, amendments, procedures, subplans and the like as may be necessary or  advisable to comply with provisions of laws of other countries or jurisdictions in which the Company or  the Participating Subsidiaries operate or have employees. Each subplan shall constitute a separate  “offering” under this Plan in accordance with Treas. Reg. §1.423-2(a).                                          8

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