Document:

Exclusive License Agreement

 Exhibit 10.38 
 EXCLUSIVE LICENSE AGREEMENT 
 This License Agreement (“Agreement”) is entered into as of
this 19 day of December, 2006 (“Effective Date”), by and between: 
 on the one hand, 
 Pfizer Inc, a corporation organized and existing under the laws of the State of Delaware, with its principal place
of business at 234 East 42nd Street, New York, New York 10017 (including its Affiliates (as defined herein,
“Licensee”), 
 and on the other hand, 
 Kosan Biosciences Incorporated, a corporation organized and existing under the laws of the State of Delaware, with its principal place of business at 3832 Bay Center Place, Hayward, California 94545 (“Kosan”). Licensee and
Kosan each may be referred to herein as a “Party,” and collectively as “Parties.” 
 WHEREAS, Kosan owns or possesses
certain patent rights and know-how with respect to motilin agonist compounds, including KOS-2187; 
 WHEREAS, Kosan desires to license its
technology and rights to Licensee for the continued development and commercialization of Kosan’s motilin agonist compounds, including but not limited to KOS-2187; 
 WHEREAS, Licensee desires to continue the development and commercialization of KOS-2187 and such other Kosan compounds as Licensee may determine could be beneficial in the treatment of GI disorders; 
 WHEREAS, Licensee desires to obtain an exclusive license under Kosan’s patent rights and know-how with respect to such compounds, including
KOS-2187; and 
 WHEREAS, Kosan is willing to grant an exclusive license to Licensee under such patent rights and know-how all as more
particularly described in, and subject to the terms and conditions of, this Agreement. 
 NOW THEREFORE, in consideration of the foregoing
and of the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties mutually agree as follows: 
  
 CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 ARTICLE 1 
 DEFINITIONS 
 As used in this Agreement, the following terms shall have the following meanings, and
singular forms, plural forms and derivative forms (i.e. other parts of speech), shall be interpreted accordingly: 
 1.1
“Affiliate” means any corporation or non-corporate business entity which controls, is controlled by, or is under common control with a Party to this Agreement. A corporation or non-corporate business entity shall be regarded as in
control of another corporation if it owns or directly or indirectly controls greater than fifty percent (>50%) of the voting stock of the other corporation or such lesser maximum percentage permitted in those jurisdictions where majority
ownership by foreign entities is prohibited, or (a) in the absence of the ownership of greater than fifty percent (>50%) of the voting stock of a corporation, or (b) in the case of a non-corporate business entity, if it possesses,
directly or indirectly, the power to direct or cause the direction of the management and policies of the corporation or non-corporate business entity, as applicable, whether through the ownership or control of voting securities, by contract or
otherwise. 
 1.2 “Approval” or “Approved” means any and all approvals, including supplements and amendments,
licenses, registration or authorizations of any agency, department or bureau or government authority that are necessary for the manufacture, distribution, use marketing or sale of a pharmaceutical product in a regulatory jurisdiction. 
 1.3 “Bulk KOS-2187” means Kosan’s inventory of the active pharmaceutical ingredient for KOS-2187. 
 1.4 “Business Day” or business day means a day other than Saturday, Sunday or any other day on which commercial banks located in New
York, New York are obligated by applicable laws to close. 
 1.5 “CTA” means a Clinical Trial Authorization filed with the
EMEA with respect to the EU or with the Regulatory Agency of a country within the EU for a compound to be developed for use within the Field. 
 1.6 “Combination Product” means a product that contains a Licensed Product in any dosage strength or formulation and one (1) additional active ingredient. 
 1.7 “Commencement” means, with respect to a clinical trial, the date upon which the first patient receives the first dose of an item
that is the subject of such clinical trial. 
  
 CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 1.8 “Commercialize” or “Commercialization” means all activities
relating to the commercialization of a Licensed Product including, without limitation, promotion, marketing, sales and distribution. 
 1.9
“Commercially Reasonable Efforts” means those efforts and resources that Licensee would use were it developing or commercializing its own pharmaceutical products that are of similar market potential as the Licensed Product, taking
into account product labeling or anticipated labeling, present and future market potential, past performance, financial return, medical and clinical considerations, present and future regulatory environment and competitive market conditions in the
Field, all as measured by the facts and circumstances at the time such efforts are due. 
 1.10 “Control” means the
possession of the ability to grant a license or sublicense as provided for herein without violating the terms of any agreement or other arrangement with any Third Party. 
 1.11 “Dollars” or “$” means US dollars. 
 1.12 “EU” means
the European Union. 
 1.13 “FDA” means the US Food and Drug Administration and any successor entity thereto. 
 1.14 “Field” [*]. 
 1.15
“First Commercial Sale” means the first sale of a Licensed Product to a Third Party. 
 1.16 [*] 
 1.17 [*] 
 1.18 “GI
Indication” [*] 
 1.19 “GI Product” [*] 
 1.20 “IND” means an Investigational New Drug Application filed with FDA for a Licensed Product to be developed for use in the Field or
foreign equivalent. 
 1.21 “Joint Research and Development Plan” shall have the meaning given in Section 6.4.

 1.22 “Know-How” means all non-patented data, information, methods, procedures, processes and other know-how related to
the use, manufacture or sale of Kosan Compound Library. Know-How includes but is not limited to: biological, chemical, biochemical, toxicological, pharmacological, metabolic, formulation, clinical, analytical and stability information, standard
operating procedures and protocols relating 
  
 CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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to the research scale, pilot scale and commercial scale synthesis of the Kosan Compound Library (other than such information and data which is or becomes the
subject of a patent or patent application). 
 1.23 “KOS-2187” means the compound known as [*]. 
 1.24 “Kosan Compound Library” means the compounds generically or specifically described in the Kosan Patent Rights. 
 1.25 “Kosan [*] Patent Rights” means the patent applications listed on Exhibit A as Kosan Patent Family [*], including any patents
issuing therefrom, as well as all continuations, continuations-in-part, divisions, patents of addition, reissues, renewals, extensions, substitutions, and supplementary protection certificates thereof, and the foreign patents and foreign patent
applications corresponding to any of the foregoing. 
 1.26 “Kosan Know-How” means all Know-How that is Controlled by Kosan
as of the Effective Date. 
 1.27 “Kosan Patent Rights” means all patents and patent applications that are Controlled by
Kosan as of the Effective Date, including all continuations, continuations-in-part, divisions, patents of addition, reissues, renewals, extensions, substitutions, and supplementary protection certificates thereof, and the foreign patents and foreign
patent applications corresponding to any of the foregoing. The Kosan Patent Rights existing as of the Effective Date are set forth in Exhibit A. 
 1.28 “Kosan Technology” means collectively Kosan Know-How and Kosan Patent Rights. 
 1.29 “Licensed
Product” means (a) any product the manufacture, use or sale of which is covered by a Valid Claim or (b) any product covered by Section 4.1(c) with respect to countries where the manufacture, use or sale of the product is not
covered by a Valid Claim. 
 1.30 “Licensee” means Licensee and its Affiliates. 
 1.31 “Licensee Quarter” means (i) in the US, each of the four (4) thirteen (13)-week periods used by Licensee in its audited
financial reports, the first such period commencing on January 1 of any year and (ii) in any country in the Territory other than the US, each of the four (4) thirteen (13)-week periods used by Licensee in its audited financial
reports, the first such period commencing on December 1 of any year. Provisions in this Agreement requiring a calculation of sales in the Territory in the first Licensee Quarter or in [*] consecutive Licensee Quarters shall be calculated by
adding the sales in the first Licensee Quarter in the US pursuant to clause (i) above and the sales in the first Licensee Quarter outside of the US pursuant to clause (ii) above and likewise for each of the [*] Licensee Quarters in a
particular year. 
  
 CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 1.32 [*] 
 1.33 “NDA” means a New Drug Application filed with the FDA (or foreign equivalent thereof) for approval to market and sell a drug. 
 1.34 “Net Sales” means: 
 (a) with respect to a Licensed Product (subject to subsection (b) below), the amount invoiced by Licensee or a sublicensee for sales of such Licensed Product, to Third Parties, less, without duplication, (i) [*], (ii) [*];
and 
 (b) in the case of a Combination Product, 
 (i) if Licensee or any sublicensee separately sells in such country during such year when it sells such Combination Product both (1) one or more Licensed Products as a single chemical entity and (2) other
products containing active pharmaceutical ingredient(s) as a single chemical entity, both of which are also contained in such Combination Product, then the Net Sales attributable to such Combination Product during such year shall be calculated by
multiplying actual Net Sales of such Combination Product by the fraction A/(A+B) where: A is the sum of Licensee’s (or its sublicensees’) average Net Sales prices per daily dose during such year for each Licensed Product in such
Combination Product as a single chemical entity in such country and B is the sum of the average of Licensee’s (or its sublicensees’) Net Sales prices per daily dose during such year in such country, for each product(s) containing the
active pharmaceutical ingredient(s) in such Combination Product (other than the Licensed Product) as a single chemical entity; 
 (ii) if
Licensee or any sublicensee separately sells, in such country during such year when it sells such Combination Product, one or more Licensed Products as a single chemical entity but does not separately sell, in such country, other products containing
the active pharmaceutical ingredient(s) that are also contained in such Combination Product, then the Net Sales attributable to such Combination Product during such year shall be calculated by multiplying the Net Sales of such Combination Product by
the fraction A/C where: A is the sum of Licensee’s (or its sublicensees’) average Net Sales prices per daily dose during such year for each Licensed Product in such Combination Product as a single chemical entity in such country, and C is
Licensee’s (or its sublicensees’) average Net Sales price per daily dose during such year for the Combination Product in such country; and 
 (iii) if Licensee or its sublicensee does not separately sell, in such country during such year when it sells such Combination Products, each Licensed Product contained in the Combination Product, then the Net Sales
attributable to such Combination Product during such year shall be calculated by multiplying the Net Sales of such Combination Product by the fraction D/D+E where D is the fair market value of the portion of the Combination Product that contains the
Licensed Product and E is the fair market value of the portion of the Combination Product containing the other active ingredient in the Combination Product, as the fair market values are determined by mutual agreement of the Parties. 
  
 CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 In all cases, Net Sales shall be determined from books and records maintained in accordance with [*] 
 1.35 “Non-GI Product” means a Licensed Product that has been Approved for an indication [*]. 
 1.36 “Phase I” means, with respect to the US, the first phase of human clinical trials using a limited number of human subjects to gain
evidence of the safety and tolerability of a Licensed Product and information regarding pharmacokinetics and potentially pharmacological activity for such Licensed Product, which human clinical trials are completed prior to the initiation of Phase
II, as described in 21 C.F.R. § 312.21(a), as may be amended, or, with respect to any other country or jurisdiction, the equivalent of such a clinical trial in such other country or jurisdiction. 
 1.37 “Phase II” means, with respect to the US, the second phase of human clinical trials of a Licensed Product to gain evidence of the
efficacy in one or more indications and expanded evidence of the safety of such Licensed Product, as well as an indication of the dosage regimen required, as described in 21 C.F.R.§ 312.21(b), as may be amended, or, with respect to any other
country or jurisdiction, the equivalent of such a clinical trial in such other country or jurisdiction. 
 1.38 [*] 
 1.39 [*] 
 1.40 [*] 
 1.41 “Registration” in relation to any Licensed Product means such approvals by government authorities in a country or community or
association of countries included in the Territory (including, where applicable, price approvals) that are required to be obtained prior to marketing or selling such Licensed Product for use in the Field. 
 1.42 “Regulatory Agency” means, with respect to any particular country, the governmental authority, body, commission, agency or other
instrumentality of such country (or the EMEA with respect to the EU), with the primary responsibility for the evaluation or approval of pharmaceutical products before a Licensed Product can be tested, marketed, promoted, distributed or sold in such
country, including such governmental bodies that have jurisdiction over the pricing of such pharmaceutical product. The term “Regulatory Agency” includes the FDA. 
 1.43 “Regulatory Filing” means any filing with a Regulatory Agency relating to or to permit or request, as applicable, the clinical
evaluation or Registration of a pharmaceutical product. Regulatory Filings include without limitation INDs, CTAs and NDAs. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,
MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
  

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 1.44 “Reverted Product” means a Licensed Product (a) [*] and (b) that is
required to be reverted to Kosan in accordance with Section 12.8. 
 1.45 “Royalty Term” shall be as defined in
Section 4.1. 
 1.46 “Second GI Product” [*]. 
 1.47 “Second Non-GI Product” [*] 
 1.48 “Territory” means the entire world. 
 1.49 “Third Party” means any party other than Kosan,
Kosan’s Affiliates or Licensee. 
 1.50 “US” means the United States of America, its territories and possessions.

 1.51 “Valid Claim” means any claim from (a) an issued and unexpired patent included within the Kosan Patent Rights
that has not been revoked or held unenforceable or invalid by a final decision of a court or other governmental authority of competent jurisdiction, unappealable or unappealed within the time allowed for appeal or that has not been disclaimed,
denied or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise; or (b) a patent application included within the Kosan Patent Rights; provided however, that such a claim from a patent application has not been
canceled, withdrawn, or abandoned or been pending for more than [*] from the date of its first priority filing anywhere in the world. If a claim of a patent application that ceased to be a Valid Claim under item (b) because of the passage of
time that later issues as part of a patent within item (a), then it shall again be considered to be a Valid Claim effective as of the earlier of the grant, allowance or issuance of such patent. 
 ARTICLE 2 
 GRANT OF LICENSE/ASSIGNMENT OF
PATENTS 
 2.1 Grant. Subject to the terms and conditions of this Agreement, Kosan hereby grants to Licensee, and Licensee hereby
accepts on its and their behalf, an exclusive license, with a right to sublicense as provided in Section 2.2, under the Kosan Technology to (a) develop, use, sell, offer for sale, import and/or export Licensed Products in the Territory and
in the Field, and (b) make and have made Licensed Products in the Territory for such development, use, sale, offering for sale, importation and/or exportation. [*] 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 2.2 Right to Sublicense. Licensee shall have the right to sublicense the rights granted under
Section 2.1 to Third Parties in the Field or the Territory. Licensee assumes full responsibility for the performance of such sublicense, and compliance with the terms of this Agreement by such sublicensee, and will itself pay and account to
Kosan for all royalties or other payments due under this Agreement by reason of the operations of any such sublicensee. Any agreement governing the terms of a sublicense by Licensee or any of its sublicensees of any of the rights granted under
Section 2.1 must be consistent with the terms and conditions of this Agreement. 
 ARTICLE 3  
 MILESTONE PAYMENTS  
 3.1 Upfront
Payment. Upon the Effective Date hereof, Licensee shall pay Kosan a non-refundable upfront license fee in the amount of Twelve Million Five Hundred Thousand Dollars ($12,500,000). 
 3.2 Milestone Payments. 
 (a)
Development. Licensee shall pay to Kosan non-refundable milestone payments specified below with respect to development by Licensee and its sublicensees of Licensed Product as a human therapeutic no later than thirty (30) days after the
following events have occurred. 
 Licensee will only pay the development milestones listed below once for each Licensed Product. 
 Licensee will pay development milestones for a Second GI Product only if [*]. Development milestone payments will then be paid [*] for the Second GI Product. 

Licensee will pay development milestones for a Second Non-GI Product only if [*]. Milestone payments will then be paid [*] for the Second Non-GI Product. 

 

				
	 Milestone Event
	  	Milestone Payment	 
	 [*]
	  	[	*]

 It is the parties’ intent that each of the foregoing [*]. However, the parties recognize that it is possible
that during the development of a Licensed Product, one or more of the above milestone events may be skipped. Therefore, if a particular milestone event occurs on a given date and, as of such date, any of the prior milestone events have not occurred,
Licensee shall be required to make the prior milestone payment(s) as if such milestone event(s) had occurred as of the date the subsequent milestone event occurred. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 (b) Examples. 
 (i) KOS-2187 enters into [*] but is discontinued in favor of another Licensed Product (“KOS-X”), which proceeds to [*]. In this situation, Licensee would be required to pay Kosan [*] within 30 days after [*]
with KOS-2187, would not be required to pay Kosan a milestone payment for [*] with KOS-X and would be required to pay Kosan [*] within 30 days after [*] with KOS-X. 
 (ii) KOS-2187 proceeds through clinical development and is first Approved (in the US) on [*]. On [*], KOS-X is in [*] and [*] of KOS-X is initiated on [*]. In this situation, (A) with respect to KOS-2187,
Licensee would be required to pay Kosan each of the first [*] milestone payments listed in the table above within 30 days of the occurrence of the applicable milestone event and (B) with respect to KOS-X, Licensee would be required to pay Kosan
the [*] milestone payments listed in the table above within 30 days after [*]. 
 (c) Commercialization. Licensee shall pay to Kosan
non-refundable milestone payments specified below with respect to Commercialization by Licensee and its sublicensees of each Licensed Product as a human therapeutic no later than sixty (60) days after the end of the applicable Licensee Quarter.
Licensee will pay each Commercialization milestone only once for each Licensed Product: 
  

					
	 Milestone Event
	  	Milestone Payment	 
	 Upon aggregate Net Sales in the Territory reaching $[*] in any [*] consecutive Licensee Quarters
	  	$	[	*]
		
	 Upon aggregate Net Sales in the Territory reaching $[*] in any [*] consecutive Licensee Quarters
	  	$	[	*]
		
	 Upon aggregate Net Sales in the Territory reaching $[*] in any [*] consecutive Licensee Quarters
	  	$	[	*]
		
	 Upon aggregate Net Sales in the Territory reaching $[*] in any [*] consecutive Licensee Quarters
	  	$	[	*]

 (d) [*] 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 ARTICLE 4  
 ROYALTIES 
 4.1 Royalties in General. For each Licensed Product, the obligation of Licensee to
pay Kosan royalties in a given country shall commence on the date of the First Commercial Sale of such Licensed Product by the Licensee in such country and shall continue until the later of (i) the date upon which no Valid Claim would cover the
manufacture, use or sale of such Licensed Product in the country of manufacture, use or sale, or (ii) the date which is [*] after the date of such First Commercial Sale in such country (the “Royalty Term”). 
 (a) Licensee shall pay or cause to be paid to Kosan a royalty based on Net Sales of Licensed Products made by Licensee and its sublicensees [*] as
provided for in the table below in this Section 4.1(a). 
  

				
	 Total Annual Net Sales
 of Licensed Products [*]
	  	Royalty Rate	 
	 [*]
	  	[	*]

 (b) [*]. 
 (c) [*] 
 (d) Examples 
 (1) [*] 
 4.2 Accrual of Royalties. No royalty shall be due or owing from the use or distribution of
Licensed Product in transactions where no consideration is received by the Licensee, such as when Licensed Product is made or used for tests or development purposes or is distributed as samples. Royalties shall accrue based on the fair market value
of any non-monetary consideration received. No royalties shall be payable on sales between Licensee, its Affiliates and sublicensees, but royalties shall be payable on subsequent sales by any such entities. No multiple royalties shall be payable
under this Agreement because Commercialized Licensed Product is covered by more than one Valid Claim. 
 4.3 Compulsory Licenses. If
Licensee is required to grant a compulsory license to a Third Party as required by the applicable laws of any country in the Territory under the Kosan Patent Rights, and the royalty rate payable to Licensee for sales of Licensed Product by such
Third Party is lower than the royalty rate payable by Licensee to Kosan for such sales, then the royalty rate payable hereunder by Licensee for sales 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,
MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
  

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of Licensed Products by such Third Party in such country shall be [*] payable by such Third Party to Licensee for such country. If Licensee is required to
grant a license under this Section 4.3, the compulsory licensee shall not be considered a licensee under Section 4.4. 
 4.4 [*]

 4.5 Third Party Royalty Obligations. If (a) in order to avoid infringement of any patent not licensed hereunder, it is
reasonably necessary for Licensee to obtain a license from a Third Party in order to make, use, sell, offer for sale, supply, cause to be supplied, or import a Licensed Product in a country in the Territory and to pay a royalty or other
consideration under such license (including in connection with the settlement of a patent infringement claim), in which case, Licensee shall discuss the matter with Kosan prior to obtaining such a license, or (b) shall be subject to a final
court or other similar binding order or ruling requiring any payments, including the payment of a royalty to a Third Party patent holder in respect of sales of any Licensed Product in a country in the Territory, then the amount of Licensee’s
royalty payments with respect to Net Sales for such Licensed Product in such country shall be reduced by [*] of (i) the royalties on sales of such Licensed Product payable by Licensee to such Third Party or (ii) other amount payable by
Licensee specifically as a total buyout of all of the Third Party’s expected royalties on sales of such Licensed Product, provided, however, that in no event will a deduction, or deductions, under this Section 4.5, in the aggregate, reduce
any royalty payment made by Licensee in respect of Net Sales of such Licensed Product by more than [*]. If, but for the proviso in the preceding sentence, the deduction under Section 4.5(ii) would have reduced a royalty payment made by Licensee
by more than [*], then the amount of such deduction that exceeds [*] will be carried over to the subsequent royalty payment until the full amount the Licensee would have been entitled to deduct (absent the above limitation) is deducted. 

ARTICLE 5 
 ROYALTY REPORTS AND
ACCOUNTING 
 5.1 Royalty Payments; Royalty Reports. After the First Commercial Sale and for the remaining term of this Agreement,
Licensee shall submit with each payment of royalties to Kosan a written royalty report (“Royalty Report”) covering sales of Licensed Product for each Licensee Quarter with the following information provided on a country-by-country
basis: 
 (a) [*] for each Licensed Product (by country) in local currency and in Dollars; 
 (b) the royalties, payable in Dollars, which shall have accrued hereunder in respect to such Net Sales; 
 (c) withholding taxes, if any, required by law to be deducted in respect of such sales; 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. 
  

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 (d) the exchange rates used in determining the amount of Dollars; and 
 (e) the names and addresses of all sublicensees. 
 Royalty Reports shall be due for the entire Territory no later than sixty (60) days after the end of the Licensee Quarter to which they pertain. Royalty payments for each Licensee Quarter with respect to Net Sales covered by a Royalty
Report shall be due at the same time as such written report for the Licensee Quarter. 
 5.2 Manner of Payment. All payments due under
this Agreement shall be made in Dollars via wire transfer of immediately available funds. 
 5.3 Sales Record Audit. Licensee shall
keep, and shall cause each of its Affiliates, and sublicensees, if any, to keep, full and accurate books of accounting in accordance with GAAP containing all particulars that may be necessary for the purpose of calculating all royalties payable to
Kosan. Such books of accounting (including, without limitation, those of the Licensee’s Affiliates, and sublicensees, if any) shall be kept at their principal place of business and, with all necessary supporting data, shall during all
reasonable times for the [*] next following the end of the calendar year to which each shall pertain, be open for inspection at reasonable times by an independent certified accountant selected by Kosan, and reasonably acceptable to Licensee, at
Kosan’s expense, for the purpose of verifying royalty statements for compliance with this Agreement. Such accountant must have agreed in writing to maintain all information learned in confidence, except as necessary to disclose to Kosan such
compliance or noncompliance by the Licensee. The results of each inspection, if any, shall be binding on both Parties other than in the case of manifest error. Kosan shall pay for such inspections, except that in the event there is any upward
adjustment in aggregate royalties payable for the Licensee Quarter period of such inspection of more than [*] of the amount paid, Licensee shall pay for the reasonable out-of-pocket costs of such inspection. Any underpayments shall be paid by
Licensee within ten (10) Business Days of notification of the results of such inspection. Any overpayments shall be promptly paid by Kosan. 
 5.4 Currency Exchange. Conversion of sales recorded in local currencies to Dollars for the purpose of calculating the sales milestone payments under Section 3.2(b) or royalty payments will be performed [*]. 
 5.5 Taxes. It is understood and agreed between the Parties that any payments made under Sections 3.1, 3.2 or 4.1 of this Agreement are inclusive
of any value added or similar tax imposed upon such payments. In addition, in the event any such payments made by Licensee become subject to withholding taxes under the laws of any jurisdiction, Licensee shall deduct and withhold the amount of such
taxes for the account of Kosan to the extent required by applicable laws or regulations, such amounts payable to Kosan shall be reduced by the amount of taxes deducted and withheld, and Licensee shall pay the amounts of such taxes to the proper
governmental authority in a timely manner and promptly transmit to Kosan an official tax certificate or other 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 
  

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evidence of such tax obligations together with proof of payment from the relevant governmental authority of all amounts deducted and withheld sufficient to
enable Kosan to claim such payment of taxes. Any such withholding taxes required under applicable laws or regulations to be paid or withheld shall be an expense of, and borne solely by, Kosan. Licensee will provide Kosan with reasonable assistance
to enable Kosan to recover such taxes as permitted by applicable laws or regulations. 
 5.6 Interest Due. Without limiting any
other rights or remedies available to Kosan, Licensee shall pay Kosan interest on any payments that are not paid on or before the date such payments are due under this Agreement at an annual rate equal to the [*] rate effective for the date
the payment was due, as reported by the Wall Street Journal. If the payment is still not received [*] after its due date, the interest rate will increase to [*]. 
 ARTICLE 6 
 DEVELOPMENT AND MARKETING 
 6.1 Development and Commercialization. Licensee will use Commercially Reasonable Efforts to develop, seek Approval for and Commercialize [*],
including KOS-2187, and in the event that [*], develop, seek Approval for and Commercialize [*], the manufacture, use or sale of which is covered by a Valid Claim. Licensee’s initial development plan for KOS-2187 is attached as Exhibit B.
Licensee will have the sole authority and discretion to modify the development plan and to make all decisions relating to Licensed Product development and Commercialization, including termination. 
 6.2 Development Information Exchange. It is the parties’ intent that there will be open communications between the Parties to discuss the
development of Licensed Products. [*] the Parties shall meet to review and discuss (a) past, current and anticipated development and regulatory activities with respect to Licensed Products, including without limitation the then current
development plans and projected timing for the milestone events listed in Section 3.2, and (b) the status of prosecution and maintenance of Kosan Patent Rights. Development information exchange meetings shall be held at mutually agreeable
times and at least [*] per calendar year shall be in person at a location to be designated by each Party in turn in Sandwich, UK, Nagoya, Japan, California, US or another location agreed by the Parties. Licensee and Kosan shall each bear all
expenses of their respective representatives at development information exchange meetings. Licensee’s development lead for the Licensed Product will actively participate in each development information exchange meeting. [*], shall also be
available at reasonable times to answer questions Kosan may have between development information exchange meetings. 
 6.3 Supply of
Compound by Kosan. If requested by Licensee, Kosan shall deliver to Licensee or designee [*] within thirty (30) days after such request. If 
  
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MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
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requested by Licensee in writing within sixty (60) days after the Effective Date, Kosan [*] within thirty (30) days after the request by Licensee.
Title and risk of loss of Bulk KOS-2187 and compounds within the Kosan Compound Library shall [*]. If requested by Licensee, Kosan will use reasonable efforts to obtain the consent of its Third Party manufacturer for KOS-2187 in order for Kosan to
assign its rights under the manufacturing agreement with that manufacturer dated [*] with respect to manufacture of KOS-2187. 
 6.4
Research and Development Collaboration. In order to transition the continued research, Kosan Know-How, and initiate Phase I development of KOS-2187, the Parties will agree [*] to the Joint Research and Development Plan, as may be amended or
supplemented from time to time by the Parties (the “Joint Research and Development Plan. The agreed elements of the Joint Research and Development Plan are attached as Exhibit C. If the Parties are unable to agree on the Joint Research and
Development Plan, Licensee shall have the right to make any final decisions relating to development activities. Kosan shall use commercially reasonable efforts to conduct, on behalf of Licensee, the research and development activities set forth in
the Joint Research and Development Plan. In conducting the Joint Research and Development Plan, Kosan shall comply with all applicable laws, regulations and generally accepted principles of good clinical practice. Licensee will pay Kosan its
reasonable costs, as agreed in advance by the Parties, for its work under the Joint Research and Development Plan. Such payments shall be made on a quarterly basis within sixty (60) days after receipt of Kosan’s invoice therefor. Any taxes
or withholding on the payments to be made by Licensee under this Section 6.4 (other than taxes on Kosan’s income) shall be borne by Licensee. Any invention covering the manufacture, use or sale of a compound within the Kosan Compound
Library conceived or reduced to practice by employees or agents of Kosan or Licensee in performance of the Joint Research and Development Plan shall be [*] owned by [*], such inventions shall [*] and [*]. All data and information generated in the
performance of the Joint Research and Development Plan shall be owned by [*] and shall be considered [*] Confidential Information, subject to the exceptions set forth in Section 10.3. Except for accrued obligations, and unless otherwise agreed
by the Parties, the Parties’ obligations under the Joint Research and Development Plan shall terminate upon Commencement of the first Phase II trial for Licensed Product. In the event Licensee decides to initiate development activities with
respect to a compound within the Kosan Compound Library other than KOS-2187 during the term of this Agreement, Licensee shall notify Kosan, and the Parties shall discuss whether Licensee is interested in having Kosan assist in any such activities
under an amended Joint Research and Development Plan. In the event Kosan undergoes a Change of Control, Licensee shall have the right to terminate the Joint Research and Development Plan upon thirty days notice. Change of Control means that any of
the following has occurred (i) a pharmaceutical company with sales of greater than $1 billion per year (“Large Pharmaceutical Company”) becomes the beneficial owner, directly or indirectly, of fifty percent or more of the voting stock
of Kosan; (ii) Kosan enters into agreement with a Large Pharmaceutical Company providing for the sale of substantially all of Kosan’s assets; or (iii) Kosan enters into a merger, reorganization or consolidation agreement or other
similar transaction with a Large Pharmaceutical Company. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. 
  

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 ARTICLE 7 
 PATENT RIGHTS 
 7.1 Ownership, Prosecution and Maintenance of Kosan Patent Rights in the
Territory, Except in the US. Within thirty (30) days of the Effective Date, Kosan shall execute an assignment transferring all of Kosan’s right, title and interest in and to the Kosan Patent Rights to Licensee in every country in the
Territory except the US (“Ex-US Kosan Patent Rights”). Licensee shall have the right, but not the obligation, to prosecute any and all patent applications within the Ex-US Kosan Patent Rights, including but not limited to, the right
to conduct interferences, oppositions, reissue proceedings and reexaminations, to obtain patents thereon, and to maintain all patents included therein. The prosecution and maintenance of the Ex-US Kosan Patent Rights may be performed by outside
counsel of Licensee’s choosing. Kosan’s comments regarding the choice of such outside counsel shall be considered, but Licensee’s decision in this regard shall be final. Kosan will not file any additional patents claiming the
manufacture, use or sale of any compound within the Kosan Compound Library, unless requested by Licensee. Licensee shall be responsible for one hundred percent (100%) of expenses incurred in preparing, filing, prosecuting and maintaining the
Ex-US Kosan Patent Rights. Licensee shall keep Kosan fully informed in a timely manner, and, as is reasonably practicable, of the progress regarding the prosecution of each patent application included within the Ex-US Kosan Patent Rights. Kosan
shall have the right to review all pending patent applications and other proceedings, and to make recommendations to Licensee regarding the prosecution of such patent applications; provided that all final decisions regarding the prosecution and
maintenance of such Ex-US Kosan Patent Rights shall be made by Licensee. 
 7.2 Discontinuance/Abandonment. Notwithstanding
Section 7.1, Licensee shall have the right to discontinue the prosecution of any patent application, or to abandon any patent, on a country-by-country basis, encompassed within the Ex-US Kosan Patent Rights. The cancellation or amendment of a
claim or claims during the prosecution of a patent application in a country within the Ex-US Kosan Patent Rights shall not constitute a discontinuance or abandonment under this section, provided that such cancellation or abandonment does not
prejudice the ability to obtain granted claims to the cancelled subject matter in a related continuation, divisional, or other application in such country. If Licensee decides to discontinue the prosecution of any patent application or to abandon
any patent within the Ex-US Kosan Patent Rights in any country, Licensee shall inform Kosan at least sixty (60) days prior to such discontinuance and Kosan shall be given the opportunity to prosecute such patent application and/or maintain such
patent at its expense prior to the date that such discontinuance would otherwise take effect. Kosan shall advise Licensee in writing of its decision regarding the opportunity to prosecute and/or maintain such application or 
  
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CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
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patent within thirty (30) days of the date of discontinuance and in the absence of a written decision from Kosan, Licensee shall have the right to
discontinue or abandon such application or patent. In the event Kosan timely elects to prosecute and maintain such patent or patent application, Licensee shall execute an assignment transferring ownership of the patent or patent application to Kosan
in each such country. Effective upon Kosan’s election to prosecute and maintain any patent or patent application in a particular country, Kosan may, in its sole discretion, elect, by written notice to Licensee, to exclude such patent or patent
application from the Kosan Patent Rights under this Agreement. 
 7.3 Status of Ex-US Kosan Patent Rights. 
 (a) Initial. As of the Effective Date, Kosan shall advise Licensee as to the current status of any patent applications and patents included within
the Ex-US Kosan Patent Rights, and, to the extent it has not previously done so, promptly make available to Licensee all documentation relating to such patent applications and patents, including, but not limited to, copies of all patent
applications, relevant prior art, search reports, official actions and examination reports, and all correspondence to and from local agents or attorneys responsible for local prosecution of such applications. 
 (b) Annual. Within thirty (30) days after the end of each calendar year, Licensee shall: (i) advise Kosan as to the then-current status
of any patent applications or patents within the Ex-US Kosan Patent Rights specifically relevant to any Licensed Product; and (ii) to the extent Kosan requests, make available to Kosan materially relevant documentation relating to such patent
applications and patents, including, but not limited to, copies thereof. 
 (c) Notices. Kosan will execute and file at
Licensee’s expense those notices and other filings as Licensee shall reasonably request be made, from time to time with any patent office or patent agency in the Ex-US Territory, and in all other respects shall reasonably cooperate with
Licensee, to affect an orderly transfer of ownership and affect the further prosecution and maintenance of the Ex-US Kosan Patent Rights granted to Licensee under this Agreement. 
 7.4 Ownership, Prosecution and Maintenance of Kosan Patent Rights in the US  
 Prior to the assignment under Section 7.7, Kosan shall have the right to prosecute any and all patent applications within Kosan Patent Rights within
the US (“US Kosan Patent Rights”) including but not limited to, the right to conduct interferences, oppositions, reissue proceedings and reexaminations, to obtain patents thereon, and to maintain all patents included therein. The
prosecution and maintenance of US Kosan Patent Rights may be performed by outside counsel of Kosan’s choosing and approved by Licensee, which approval shall not be unreasonably withheld or delayed. Licensee hereby approves [*] as outside
counsel. Licensee shall be responsible for one hundred percent (100%) of expenses incurred by Kosan in preparing, filing, prosecuting and maintaining the US Kosan Patent Rights. Kosan shall keep Licensee fully informed in a 
  
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CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
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timely manner, and as is reasonably practicable, of the progress regarding the prosecution of each patent application included within the US Kosan Patent
Rights. Licensee shall have the right to review all pending patent applications and other proceedings, and to make recommendations to Kosan regarding the prosecution of such patent applications; provided that all final decisions regarding the
prosecution and maintenance of such US Kosan Patent Rights shall be made by Kosan. 
 7.5 Discontinuance/Abandonment. Notwithstanding
Section 7.4, Kosan shall have the right to discontinue the prosecution of any patent application, or to abandon any patent, encompassed within the US Kosan Patent Rights. The cancellation or amendment of a claim or claims during the prosecution
of a patent application within the US Kosan Patent Rights shall not constitute a discontinuance or abandonment under this section, provided that such cancellation or amendment does not prejudice the ability to obtain granted claims to the cancelled
subject matter in a related continuation, divisional, or other US patent application. If Kosan decides to discontinue the prosecution of any patent application or to abandon any patent within the US Kosan Patent Rights, Kosan shall inform Licensee
at least sixty (60) days prior to such discontinuance and Licensee shall be given the opportunity to prosecute such patent application and/or maintain such patent at its expense prior to the date that such discontinuance would otherwise take
effect. Licensee shall advise Kosan in writing of its decision regarding the opportunity to prosecute and/or maintain such application or patent within thirty (30) days of the date of such discontinuance and in the absence of a written decision
from Licensee, Kosan shall have the right to discontinue or abandon such application or patent. Effective upon Licensee’s election to prosecute and maintain any patent or patent application in the US, Licensee may, in its sole discretion,
elect, by written notice to Kosan, to exclude such patent or patent application from the Kosan Patent Rights under this Agreement. 
 7.6
Status of US Kosan Patent Rights. 
 (a) Initial. As of the Effective Date, Kosan shall advise Licensee as to the current status
of any patent applications and patents included within the US Kosan Patent Rights, and, to the extent it has not previously done so, promptly make available to Licensee all documentation relating to such patent applications and patents, including,
but not limited to, copies of all patent applications, relevant prior art, search reports, official actions and examination reports, and all correspondence to and from local agents or attorneys responsible for local prosecution of such applications.

 (b) Annual. Within thirty (30) days after the end of each calendar year, Kosan shall: (i) advise Licensee as to the
then-current status of any patent applications or patents within the US Kosan Patent Rights specifically relevant to any Licensed Product; and (ii) to the extent Licensee requests, make available to Licensee materially relevant documentation
relating to such patent applications and patents, including, but not limited to, copies thereof. 
  
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BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
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 7.7 Assignment of US Kosan Patent Rights. Upon [*] for a Licensed Product, Kosan shall execute an
assignment transferring all of Kosan’s right, title and interest in and to the US Kosan Patent Rights to Licensee (“Assigned US Kosan Patent Rights”). Thereafter, Licensee shall have the right to prosecute and maintain any and
all patent applications within the Assigned US Kosan Patent Rights, including but not limited to, the right to conduct interferences, oppositions, reissue proceedings and reexaminations, to obtain patents thereon, and to maintain all patents
included therein. The prosecution and maintenance of the Assigned US Kosan Patent Rights may be performed by outside counsel of Licensee’s choosing. Kosan’s comments regarding the choice of such outside counsel shall be considered, but
Licensee’s decision in this regard shall be final. Kosan will not file any additional patents claiming the manufacture, use or sale of any compound within the Kosan Compound Library, unless requested by Licensee. Licensee shall be responsible
for one hundred percent (100%) of expenses incurred in preparing, filing, prosecuting and maintaining the Assigned US Kosan Patent Rights. Licensee shall keep Kosan fully informed in a timely manner, and as is reasonably practicable, of the
progress regarding the prosecution of each patent application included within the Assigned US Kosan Patent Rights. Kosan shall have the right to review all pending patent applications and other proceedings, and to make recommendations to Licensee
regarding the prosecution of such patent applications; provided that all final decisions regarding the prosecution and maintenance of such Assigned US Kosan Patent Rights shall be made by Licensee. 
 7.8 Discontinuance/Abandonment. Subsequent to the assignment by Kosan to Licensee of Assigned US Kosan Patent Rights pursuant to section 7.7, the
discontinuance/abandonment of such Assigned US Kosan Patent Rights by Licensee, and the opportunity of Kosan to elect to continue the prosecution and maintenance of such discontinued/abandoned Assigned US Kosan Patent Rights, shall be governed as in
Section 7.2 with respect to Ex-US Kosan Patent Rights. 
 7.9 Patent Term Extension. Licensee shall have the exclusive right and
obligation to seek, at Licensee’s expense, patent term extensions or supplemental patent protection, including supplementary protection certificates, in any country in the Territory in relation to the Licensed Products. Kosan and Licensee shall
cooperate in connection with all such activities, and Licensee, its agents and attorneys will give due consideration to all timely suggestions and comments of Kosan regarding any such activities; provided that all final decisions shall be
made by Licensee. 
 7.10 Orange Book Listings. With respect to filings in the FDA Orange Book (and foreign equivalents) for issued
patents for a Licensed Product, Licensee shall be solely responsible at its expense for fulfilling its obligations under applicable law to list any applicable Kosan Patent Rights in a timely manner and make all applicable filings regarding the Kosan
Patent Rights required to be filed by it under applicable law. Licensee will be solely responsible for any such filings and listings, and for any and all decisions with respect to such filings and listings. 
  
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CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
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 7.11 Notification of Patent Certification. 
 (a) Notice. If a Party becomes aware of any certification filed pursuant to 21 U.S.C. § 355(b)(2)(A) or 355(j)(2)(A)(vii)(IV), or any notice
under any future analogous provisions of United States Law relating to regulation or approval of drug products (or any amendment or successor statute thereto) claiming that any Kosan Patent Rights covering a Licensed Product in the Field, are
invalid or otherwise unenforceable, or that infringement will not arise from the manufacture, use, import or sale of a product by a Third Party (a “Paragraph IV Claim”), such Party shall promptly notify the other Party in writing
within five (5) Business Days after its receipt thereof. 
 (b) Control of Response. Licensee shall have the first right, but not
the obligation, to initiate patent infringement litigation for such Paragraph IV Claim, at its own expense. If Licensee elects not to assume control over enforcing any Paragraph IV Claim, Licensee shall notify Kosan as soon as practicable but in any
event not later than ten (10) days before the first action required to enforce or preserve such Paragraph IV Claim so that Kosan may, but shall not be required to, assume sole control over enforcing such Paragraph IV Claim using counsel of its
own choice. The Parties shall reasonably cooperate in the prosecution of any Paragraph IV Claim so long as such Paragraph IV Claim relates to Kosan Patent Rights, and share any damages, settlements, accounts of profits, or other financial
compensation recovered from a Third Party as a result of such prosecution, as set forth in Section 8.2; provided that the Party controlling such Paragraph IV Claim shall promptly reimburse all out-of-pocket expenses (including reasonable
counsel fees and expenses) actually incurred by the other Party in connection with such cooperation. 
 7.12 Limitation on Patent
Actions. Neither Party shall be required to take any action pursuant to Sections 7.9 to 7.11 hereof that such Party reasonably determines in its sole judgment and discretion conflicts with or violates any court or government order or decree that
such Party is then subject to or otherwise may create legal liability on the part of such Party. 
 7.13 Kosan License.
Notwithstanding the grant in Section 2.1, Kosan shall retain an exclusive, worldwide, fully paid-up license, with the right to sublicense, under the Kosan [*] Patent Rights assigned to Licensee pursuant to this Article 7 to make, have made,
use, offer to sell, sell and import any products that do not have utility as a motilin agonist. 
 ARTICLE 8  
 INFRINGEMENT 
 8.1
Applicability. The provisions of this Article 8 shall govern the Parties’ rights and obligations, as between themselves, with respect to actions against Third Parties for infringement of the Kosan Patent Rights or misappropriation of the
Kosan Know-How licensed under this Agreement. 
  
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CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
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 8.2 Third Party Infringement. 
 (a) Notice. Each Party shall promptly report in writing to the other Party during the Term any known or suspected (i) infringement of any of
the Kosan Patent Rights, or (ii) unauthorized use or misappropriation of any of the Kosan Know-How (an “Infringement Claim”) of which such Party becomes aware, and shall provide the other Party with all available evidence
supporting such known or suspected infringement or unauthorized use. 
 (b) Initial Right to Enforce. Licensee shall have the first
right, but not the obligation, to initiate a suit or take other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce the Kosan
Patent Rights relating to a Licensed Product in the Field in the Territory at its expense. Any suit by Licensee shall be either in the name of Kosan or its Affiliate, the name of Licensee or its Affiliate, or jointly by Licensee, Kosan and their
respective Affiliates, as may be required by the Law of the forum. For this purpose, Kosan shall execute such legal papers and cooperate in the prosecution of such suit as may be reasonably requested by Licensee; provided that Licensee shall
promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by Kosan in connection with such cooperation. 
 (c) Step-In Right. If Licensee does not initiate a suit or take other appropriate action that it has the initial right to initiate or take pursuant to this Section 8.2, then Kosan may, in its discretion,
provide Licensee with notice of Kosan’s intent to initiate a suit or take other appropriate action. If Kosan provides such notice and Licensee does not initiate a suit or take such other appropriate action within thirty (30) days after
receipt of such notice from Kosan, then Kosan shall have the right to initiate a suit or take other appropriate action that it believes is reasonably required to protect the Kosan Patent Rights. Any suit by Kosan shall be either in the name of Kosan
or its Affiliate, the name of Licensee or its Affiliate, or jointly by Licensee, Kosan and their respective Affiliates, as may be required by the Law of the forum. For this purpose, Licensee shall execute such legal papers and cooperate in the
prosecution of such suit as may be reasonably requested by Kosan; provided that Kosan shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually incurred by Licensee in connection with such
cooperation. 
 (d) Conduct of Certain Actions; Costs. The Party initiating suit shall have the sole and exclusive right to select
counsel for any suit initiated by it pursuant to this Section 8.2. The initiating Party shall assume and pay all of its own out-of-pocket costs incurred in connection with any litigation or proceedings initiated by it pursuant to this
Section 8.2, including the fees and expenses of the counsel selected by it. The other Party shall have the right to participate and be represented in any such suit by its own counsel at its own expense. 
  
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CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
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 (e) Recoveries. In the event Licensee assumes control over enforcing any Infringement Claim, Kosan
shall be entitled to receive [*] of any damages, settlements, accounts of profits, or other financial compensation recovered by Licensee from a Third Party based upon any such Infringement Claim after deducting Licensee’s actual out-of-pocket
expenses (including reasonable counsel fees and expenses) incurred in pursuing such Infringement Claim, and Licensee may retain the balance. In the event Kosan assumes control over enforcing any Infringement Claim, Licensee shall be entitled to
receive [*] of any damages, settlements, accounts of profits, or other financial compensation recovered from a Third Party based upon any such Infringement Claim after deducting Kosan’s actual out-of-pocket expenses (including reasonable
counsel fees and expenses) incurred in pursuing such Infringement Claim, and Kosan may retain the balance. 
 (f) Patent Invalidity
Claim. Each of the Parties shall promptly notify the other in the event of any legal or administrative action by any Third Party against a Kosan Patent Right of which it becomes aware, including any nullity, revocation, reexamination or
compulsory license proceeding. Licensee shall have the first right, but not the obligation, to defend against any such action involving a Kosan Patent Right, in its own name, and the costs of any such defense shall be at Licensee’s expense.
Kosan, upon request of Licensee, agrees to join in any such action and to cooperate reasonably with Licensee; provided that Licensee shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and expenses) actually
incurred by Kosan in connection with such cooperation. If Licensee does not defend against any such action involving such Kosan Patent Right, then Kosan shall have the right, but not the obligation, to defend such action and any such defense shall
be at Kosan’s expense. Licensee, upon request of Kosan, agrees to join in any such action and to cooperate reasonably with Kosan; provided that Kosan shall promptly reimburse all out-of-pocket expenses (including reasonable counsel fees and
expenses) actually incurred by Licensee in connection with such cooperation. 
 ARTICLE 9  
 REPRESENTATIONS AND WARRANTIES 
 9.1
Representations and Warranties of Kosan. Kosan hereby represents and warrants to Licensee as of the Effective Date that: 
 (a) Kosan
is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware, with the corporate power and authority to enter into this Agreement and to perform its obligations hereunder. The execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Kosan. This Agreement has been duly executed and delivered by Kosan and constitutes
the valid, binding and enforceable obligation of Kosan, subject to applicable bankruptcy, reorganization, insolvency, moratorium and other laws affecting creditors’ rights generally from time to time in effect and to general principles of
equity. 
  
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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
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 (b) Kosan is not subject to, or bound by, any provision of: 
 (i) any articles or certificates of incorporation or by-laws; 
 (ii) any mortgage, deed of trust, lease, note, shareholders’ agreement, bond, indenture, license, permit, trust, custodianship, or other instrument, agreement or restriction; or 
 (iii) any judgment, order, writ, injunction or decree or any court, governmental body, administrative agency or arbitrator; 
 that would prevent, or be violated by, or under which there would be a default as a result of, nor is the consent of any Third Party required for, the execution,
delivery and performance by Kosan of this Agreement and the obligations contained herein. The execution and delivery of this Agreement by Kosan and the performance by Kosan will not violate any laws or order of any court or government authority.

 (c) [*] 
 (d) [*] 

(e) To the best of Kosan’s knowledge, [*]. 
 (f) [*]. 
 (g) None of the Kosan Patent Rights [*] 
 (h) The Bulk KOS-2187 transferred to Licensee [*]. 
 (i) [*] 
 9.2 Representations and Warranties of Licensee. Licensee hereby represents and warrants to Kosan as of the Effective Date that: 
 (a) Licensee is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its organization, with the
corporate power and authority to enter into this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all requisite
corporate action on the part of Licensee. This Agreement has been duly executed and delivered by Licensee constitutes the valid, binding and enforceable obligation of each of them, subject to applicable bankruptcy, reorganization, insolvency,
moratorium and other laws affecting creditors’ rights generally from time to time in effect and to general principles of equity. 
 (b)
Licensee is not subject to, or bound by, any provision of: 
 (i) any articles or certificates of incorporation or by-laws; 
  
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CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
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 (ii) any mortgage, deed of trust, lease, note, shareholders’ agreement, bond, indenture, license,
permit, trust, custodianship, or other instrument, agreement or restriction, or 
 (iii) any judgment, order, writ, injunction or decree or
any court, governmental body, administrative agency or arbitrator, 
 that would prevent, or be violated by, or under which there would be a default as a
result of, nor is the consent of any Third Party required for, the execution, delivery and performance by Licensee of this Agreement and the obligations contained herein. 
 9.3 Disclaimer of Warranties. EXCEPT AS SET FORTH EXPRESSLY IN THIS AGREEMENT, EACH PARTY HEREBY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION THE
WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT OF THE INTELLECTUAL RIGHTS OF THIRD PARTIES. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BOTH PARTIES ACKNOWLEDGE AND DISCLAIM ANY WARRANTY AS TO
REGULATORY APPROVAL, PRODUCT INTRODUCTION, SAFETY, USEFULNESS OR COMMERCIAL SUCCESS OF ANY LICENSED PRODUCT. 
 ARTICLE 10 
 CONFIDENTIALITY 
 10.1 Treatment of
Confidential Information. Except as otherwise provided in this Article 10, during the term of this Agreement and for a period of [*] thereafter, each Party agrees to keep confidential all of the other Party’s Confidential Information that
is disclosed to it or its Affiliates. Confidential Information shall be defined as information marked confidential or if disclosed orally, summarized in writing and provided to the receiving Party within thirty days after disclosure. Each Party
agrees to preserve and protect the Confidential Information to the same extent it protects its own confidential information. Each Party will use the Confidential Information only as permitted under this Agreement, and will not disclose Confidential
Information to any third parties. 
 10.2 Right to Disclose. To the extent it is reasonably necessary or appropriate to fulfill its
obligations or exercise its rights under this Agreement or any rights which survive termination or expiration hereof, Licensee and Kosan may disclose Confidential Information to their respective Affiliates, sublicensees, consultants, outside
contractors, clinical investigators or other Third Parties that need to know such information, provided that such entities or persons agree in writing (a) to keep the Confidential Information confidential for [*] after the date of
disclosure to such entities and to the same extent as Licensee and Kosan are required to keep the Confidential Information confidential and (b) to use the Confidential Information only for such purposes as Licensee and Kosan are entitled to use
the Confidential Information. Each Party or its Affiliates or 
  
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sublicensees may disclose such Confidential Information to government or other regulatory authorities to the extent that such disclosure (i) is
reasonably necessary to obtain patents or authorizations to conduct clinical trials with or to market commercially the Licensed Products or to prosecute or defend litigation; provided that this clause (i) shall only apply with respect to Kosan
in the event of a reversion under Section 12.8; (ii) is otherwise legally required; or (iii) is permitted pursuant to Section 15.7; provided that if a Party is legally required to make such a disclosure under (ii), it shall first
have given prompt notice to the other Party hereto to enable it to seek any available exemptions from or limitations on such a disclosure, or to apply for confidential treatment or a protective order. 
 10.3 Release From Restrictions. The foregoing obligations in respect of disclosure and use of Confidential Information shall not apply to any part
of such Confidential Information that the non-disclosing Party, or its Affiliates (all collectively referred to as the “Receiving Party”) can demonstrate by contemporaneously prepared competent evidence: 
 (a) is or becomes part of the public domain other than by acts of the Receiving Party in contravention of this Agreement; 
 (b) is disclosed to the Receiving Party or its Affiliates or sublicensees by a Third Party who had the right to disclose such Confidential Information to
the Receiving Party; or 
 (c) prior to disclosure under this Agreement, was already in the possession of the Receiving Party or its
Affiliates or sublicensees, provided such Confidential Information was not obtained, directly or indirectly, from the other Party under this Agreement. 
 10.4 Confidentiality of Agreement. Except as otherwise required by law or the terms of this Agreement or mutually agreed upon by the Parties hereto, each Party shall treat as confidential the terms and
conditions of this Agreement, except that Kosan and Licensee may each disclose such terms and conditions of this Agreement and the achievement of milestone events, and payments, to its Affiliates and sublicensees, and current and potential
investors, provided that the recipient has entered into a confidentiality agreement in accordance with Section 10.2. Furthermore, each Party in connection with its status as a public company may disclose the terms to the extent required by the
federal securities laws, and provided, that such Party shall seek confidential treatment of key business terms contained in this Agreement, including but not limited to the royalty rates and the milestone payments. Each Party shall provide the other
Party any such disclosure or filing in advance and include any reasonable and timely suggestions, advice and input from the other Party with respect to seeking confidential treatment of key business terms contained in the Agreement. In addition, the
Parties have agreed to the publicity-related provisions that are set forth in Section 15.7. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 
  

 24 

 10.5 Return of Confidential Information. Upon termination of this Agreement by either Party for
any reason, the rights of each Party to retain and use the Confidential Information of the other shall be as provided in Article 12, provided, however, that each Party may retain a single archival copy of the other Party’s Confidential
Information solely for the purpose of determining the extent of disclosure of Confidential Information hereunder and assuring compliance with the surviving provisions of this Agreement. 
 ARTICLE 11 
 REGULATORY 
 11.1 Assignment of Regulatory Filings. At Licensee’s request, Kosan shall transfer and assign to Licensee, all Regulatory Filings owned by
Kosan related to KOS-2187 (the “Transferred Regulatory Filings”), including but not limited to any CTA regarding KOS-2187, and copies of all written correspondence with Regulatory Agencies regarding KOS-2187. If requested by
Licensee, Kosan agrees to perform within thirty (30) days of the Effective Date all such acts, and execute such further instruments, documents or certificates, as may be required for the Transferred Regulatory Filings to be transferred and
assigned more effectively to Licensee. Effective upon such date that Kosan transfers to Licensee each Transferred Regulatory Filing officially with the applicable Regulatory Agency; Licensee shall and hereby does undertake all regulatory
responsibilities, obligations and risks related to such Regulatory Filing. However, both Parties agree to work together to ensure a smooth transfer of Transferred Regulatory Filings and continuous dialog with FDA or foreign equivalent. 

ARTICLE 12 
 TERM AND TERMINATION

 12.1 Term. This Agreement shall become binding upon the Effective Date and shall continue thereafter in full force and effect,
unless terminated sooner pursuant to Sections 12.2, 12.3 or 12.4, until it expires upon the expiration of Licensee’s obligation to pay royalties to Kosan hereunder (such expiration of the term of this Agreement without termination,
“Expiration”). The Parties acknowledge and agree that Licensee shall have no obligation to pay Kosan any royalties after the expiration of the applicable periods referred to in Section 4.1 hereof for Net Sales accruing after
such periods. 
 12.2 Bilateral Termination Rights. Either Party may terminate this Agreement upon (i) the bankruptcy,
liquidation or dissolution of the other Party (without further action by the Party); or (ii) the filing of any voluntary petition for bankruptcy, dissolution, liquidation or winding-up of the affairs of the other Party which is not dismissed
within one hundred twenty (120) days after the date on which it is filed or commenced. 
 12.3 Licensee’s Right to
Terminate. 
 (a) For Material Breach at any Time. Licensee may terminate this Agreement, as a whole, at any time if (i) Kosan
materially breaches the Agreement and (ii) such material breach is not cured by Kosan within [*] after Licensee provides Kosan with written notice of such breach, or, [*]. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. 
  

 25 

 (b) For Convenience. Licensee may terminate this Agreement for convenience, upon [*] prior written
notice to Kosan. [*] 
 12.4 Kosan’s Right to Terminate. Kosan may terminate this Agreement, as a whole, at any time if
(i) Licensee materially breaches the Agreement and (ii) such material breach is not cured by Licensee within [*] after Kosan provides Licensee with written notice of such breach. [*] 
 12.5 General Effect of Expiration or Termination. Upon Expiration or termination of this Agreement for any reason, all rights and obligations of
the Parties hereunder shall cease, except as explicitly provided for below in this Article 12 or elsewhere in this Agreement. Upon Expiration or termination, [*]. Expiration or termination of this Agreement shall not relieve the Parties of any
obligation accruing prior to such Expiration or termination. 
 12.6 Rights Upon Expiration or Any Termination. 
 (a) Upon Expiration of this Agreement in any country, Licensee shall continue to have a royalty-free, perpetual right to Commercialize Licensed Products
in the Field and Territory, as the license granted Licensee in Section 2.1 shall automatically become royalty-free, non-exclusive and perpetual in the country of Expiration. 
 (b) Upon Expiration or termination of this Agreement, the following Sections and Articles shall survive such expiration or termination, subject to any
later termination dates provided for therein: Sections 5.3, 5.5 and 5.6 and Articles 10, 12, 13 and 15. 
 12.7 Rights Upon Certain
Licensee Termination. 
 Upon termination by Licensee pursuant to Section 12.2 or for Kosan’s uncured material breach of this Agreement pursuant
to Section 12.3(a), the following Sections shall survive such termination in addition to the Sections and Articles set forth to survive in Section 12.6(b): Sections 2.1 and 3.2 [*]; Article 4 [*] and all other Sections and Articles
governing the mechanics of milestone and royalty payments hereunder). The licenses granted by Kosan to Licensee shall [*] if Licensee terminates under Section 12.2 or 12.3(a). 
 12.8 Rights Upon Kosan Termination and Other Licensee Terminations. (i) If Kosan terminates this Agreement pursuant to Section 12.2 or
Section 12.4, the following provisions will apply. (ii) If Licensee terminates for convenience pursuant to Section 12.3(b) [*], then the following provisions will apply [*]. 
  
 CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 26 

 (a) Kosan Patent Rights. Licensee will assign to Kosan all of Licensee’s right, title and
interest in the Kosan Patent Rights within thirty (30) days after termination. 
 (b) [*] Licensed Product. In the event of a
termination of this Agreement by Kosan pursuant to Section 12.4 or 12.2 or if Licensee terminates for convenience pursuant to Section 12.3(b), and if [*] Licensee shall [*]. 
 (c) Licensed Product other than an Approved Licensed Product. The following provisions in paragraphs (d) through (j) will apply to each
Reverted Product [*]. 
 (d) Assignment and Technology License. (i) Licensee will grant to Kosan, effective upon such
termination, an irrevocable, perpetual and exclusive license under any patent or patent application owned or Controlled by Licensee that claims the composition of matter or method of use of the Reverted Product to (A) develop, use, sell, offer
for sale, import and/or export Reverted Products and (B) make and have made Reverted Products for such development, use, sale, offering for sale, importation and/or exportation. Such license shall be sublicenseable by Kosan through one or more
tiers of sublicensees without Licensee’s consent. [*] 
 In all cases where patents or patent rights covered by this Section 12.8(d) are licensed
to Licensor by a Third Party, as a condition precedent for a license to be granted to Kosan pursuant to this Section 12.8(d), Kosan shall be required to agree to pay any payments, including royalties on sales by Kosan or its sublicensees, that
accrue and become payable to such Third Party licensor after the effective date of the license to Kosan and provided that to the extent any patents and patent applications are licensed to Kosan on a non-exclusive basis, Kosan’s payment
obligations to the Third Party shall be on a pro rata basis with any other licensees thereof, including Licensee. Licensee will not be obligated to grant sublicenses under this Section 12.8(d) if Licensee is prevented from granting such
sublicenses under its agreements with its licensors, but shall be required to use reasonable efforts to obtain permission to do so from any such licensors. 
 (e) Regulatory Filings. Licensee shall assign (or cause to be assigned) to Kosan any Regulatory Filings of Licensee or its sublicensee with respect to any Reverted Product , and take such actions and execute
such other instruments, assignments and documents as may be necessary to affect the transfer of rights thereunder to Kosan within sixty (60) days after termination. Licensee shall, in each sublicense that it grants hereunder, require the
sublicensee to transfer any Regulatory Filings with respect to any Reverted Product in the event of a termination of this Agreement or such sublicense, to Kosan if this Agreement does not remain in effect, and to Licensee if only such sublicense
terminates. 
 (f) Data Disclosure. In accordance with Section 12.8(h), Licensee will transfer the Product Documents to Kosan for
each Reverted Product within sixty (60) days after termination. Licensee will not be liable for any inaccuracy or incompleteness 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,
MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
  

 27 

 
of the Product Documents. Product Documents means (a) a copy of the [*], (b) copies of completed and final [*], (c) copies of all documents
filed to the IND, NDA and foreign equivalents, (d) [*] the investigator filing package for each clinical study of the Reverted Product, (e) copies of correspondence with the FDA and equivalent foreign agencies and (f) [*] information
[*] is relevant to safety of the Reverted Product. 
 (g) Remaining Quantities. Upon Kosan’s request, Licensee shall negotiate in
good faith for the transfer to Kosan or its designee all quantities of Reverted Products in the possession of the Licensee. 
 (h)
Technology Transfer. The appropriate technical teams at Kosan and Licensee will meet to plan technical transfer for the Reverted Products as follows: (a) Licensee’s project lead(s) for the Reverted Products will meet with
representatives from Kosan for not more than [*] to [*] with respect to Reverted Product’s pre-clinical and clinical development and establish a plan for the transfer for technology with respect to Reverted Products; (b) Licensee will
allocate [*] appropriately qualified FTEs to work with Kosan to [*] to Kosan over a total period not to exceed [*]; (c) [*]; and (d) the technical transfer must be completed within [*] of the initial technical transfer planning meeting.

 (i) [*] 
 (j) Kosan
Covenant. Kosan shall not conduct any clinical trials for any Reverted Product if the clinical development of such Reverted Product was terminated by Licensee because of either (a) FDA or other Regulatory Agency action or advice that due to
an unfavorable patient benefit/risk balance, further development of the Licensed Product is not reasonable or (b) [*] 
 (k)
Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by Kosan are, and shall otherwise be deemed to be, for purposes of Article 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual
property” as defined under Article 101 of the U.S. Bankruptcy Code. The Parties agree that Licensee, as licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy
Code. The Parties further agree that, in the event of the commencement of any proceeding by or against Kosan under the U.S. Bankruptcy Code, Licensee shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such
intellectual property and all embodiments of such intellectual property, and, if not already in its possession, Kosan shall promptly deliver to Licensee all such intellectual property and all embodiments of such intellectual property (a) upon
Licensee’s request any time following commencement of any such proceeding, unless Kosan elects to continue to perform all of its obligations under this Agreement or (b) if not delivered under (a) above, upon Licensee’s request
any time following the rejection of this Agreement by or on behalf of Kosan. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. 
  

 28 

 ARTICLE 13 
 INDEMNIFICATION 
 13.1 Indemnification by Licensee. Subject to Section 13.3 hereof,
Licensee hereby agrees to defend, indemnify and hold harmless Kosan and its Affiliates and licensors, and their directors, officers, employees and agents (“Kosan Indemnitees”) from and against any liabilities, losses, fines, penalties,
damages, expenses (including reasonable attorney’s fees and expenses and expenses incurred in connection with the enforcement of this provision), actions or claims brought or threatened after the Effective Date of this Agreement and which arise
out of claims against Kosan brought by Third Parties after the Effective Date of this Agreement, including but not limited to, any actions in contract (including breach of warranty) or tort (including negligence, strict liability or commercial
torts) which arise, result from, or relate to: 
 (i) any breach of any of the representations or warranties of Licensee contained in
Section 9.2 hereof, 
 (ii) the negligence, recklessness or willful misconduct of the Licensee; and 
 (iii) any development or Commercialization of Licensed Product including without limitation, any manufacture, storage, use or possession of Compound or
Licensed Product by Licensee, its sublicensees and distributors, including without limitation any Bulk KOS-2187 or compound within the Kosan Compound Library provided by Kosan. 
 Items (i) through (iii) are hereinafter collectively referred to as a “Kosan Loss.” Licensee shall have no obligation to indemnify Kosan, to the extent that any Kosan Loss arises out of the
negligence or willful misconduct of any Kosan Indemnitee or Kosan’s breach of this Agreement. 
 13.2 Indemnification by Kosan.
Subject to Section 13.3 hereof, Kosan hereby agrees to indemnify and hold harmless Licensee and its sublicensees, and their directors, officers, employees and agents (“Licensee Indemnitees”) from and against any liabilities,
losses, fines, penalties, damages, expenses (including reasonable attorney’s fees and expenses and expenses incurred in connection with the enforcement of this provision), actions or claims brought or threatened after the Effective Date and
which arise out of claims against Licensee brought by Third Parties after the Effective Date, including but not limited to, any actions in contract (including breach of warranty) or tort (including negligence, strict liability or commercial torts)
which arise, result from, or relate to: 
 (i) any breach of any of the representations or warranties of Kosan contained in Section 9.1
hereof, 
 (ii) the negligence, recklessness or willful misconduct of Kosan, its Affiliates or agents; or 
  
 CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 29 

 (iii) any development or Commercialization of Reverted Product by Kosan, its Affiliates or agents
including without limitation, any manufacture, storage, use or possession of Reverted Product by Kosan, its Affiliates or agents. 
 Items (i) through
(iii) are hereinafter collectively referred to as a “Licensee Loss.” Kosan shall have no obligation to indemnify Licensee, to the extent that any Licensee Loss arises out of the negligence or willful misconduct of any Licensee
Indemnitee or Licensee’s breach of this Agreement. 
 13.3 Indemnification Procedures With Respect to Third Party Claims.

 (a) To be eligible to seek indemnification under this Article 13 in respect to a liability, loss, fine, penalty, damage, expense, action,
or claim brought against such Indemnitee by a Third Party (such claim hereinafter referred to as a “Third Party Claim”), a Licensee Indemnitee or Kosan Indemnitee (each, an “Indemnitee”) shall promptly give written
notice thereof to the Party from whom indemnification is sought (such Party hereinafter referred to as the “Indemnitor”) within a reasonable period of time after the assertion of such Third Party Claim by such Third Party; provided,
however, that the failure to provide written notice of such Third Party Claim within a reasonable period of time shall not relieve the Indemnitor of any of its obligations hereunder, except to the extent that the Indemnitor is prejudiced by such
failure. 
 Except for patent disputes and claims covered under Article 8, the Indemnitor shall have the right to assume the complete control of the defense,
compromise or settlement of any Third Party Claim if the Indemnitor, in the reasonable judgment of the Indemnitee, has the financial resources to satisfy the amount of any judgment, the claims seek monetary judgment only, and the Indemnitor agrees
in writing to satisfy and discharge the Third Party Claim. If these conditions are not met, the Indemnitee shall defend the Third Party Claim at the expense of the Indemnitor. If the conditions are met, the Indemnitor shall have the right to defend,
compromise or settle the Third Party Claim (provided that no settlement of any Third Party Claim shall include any admission of wrongdoing on the part of an Indemnitee, without the prior written consent of such Indemnitee, which consent shall not be
unreasonably withheld), including, at its own expense, employment of legal counsel. 
 The Indemnitor will not, without the prior written consent of the
Indemnitee, enter into any compromise or settlement that commits the Indemnitee to take, or forbear to take, any action. The Indemnitee shall have sole authority to settle any Third Party Claim that involves non-monetary damages or equitable relief.
At any time thereafter the Indemnitor shall be entitled to exercise, on behalf of the Indemnitee, any rights which may mitigate the extent or amount of such Third Party Claim; provided, however, that if the Indemnitor shall have exercised its right
to assume control of such Third Party Claim, the Indemnitee (i) may, in its sole discretion and at its own expense (which expense shall not be subject to indemnification hereunder), employ legal counsel to represent it (in addition to the legal
counsel employed by the Indemnitor) in any such matter, and in such event legal counsel selected by the Indemnitee shall be required to 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,
MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
  

 30 

 
confer and cooperate with such counsel of the Indemnitor in such defense, compromise or settlement for the purpose of informing and sharing information with
the Indemnitor; (ii) shall, at its own expense, make available to Indemnitor those employees, officers and directors or Indemnitee whose assistance, testimony or presence is necessary or appropriate to assist the Indemnitor in evaluating and in
defending any such Third Party Claim (provided, however, that any such access shall be conducted in such a manner as not to interfere unreasonably with the operations of the businesses of Indemnitee); and (iii) shall otherwise fully cooperate
with the Indemnitor and its legal counsel in the investigation and defense of such Third Party Claim. 
 (b) If the Parties acting in good
faith cannot agree as to the applicability of Section 13.1 and/or 13.2 to a particular Third Party Claim, then each Party (and its respective Indemnitees) reserves the right to conduct its own defense of such Third Party Claim and seek
indemnification from the applicable Party upon its resolution. 
 ARTICLE 14  
 REGISTRATION OF LICENSE 
 14.1 Licensee may, at its expense, register the
exclusive license granted under this Agreement in any country of, or community or association of countries in, the Territory where Commercializing a Licensed Product in such country would be covered by a Valid Claim. Kosan shall reasonably cooperate
in such registration at Licensee’s expense. Upon request by Licensee, Kosan agrees promptly to execute any “short form” licenses developed in a form reasonably acceptable to both Licensee and Kosan and reasonably submitted to it by
Licensee from time to time in order to effect the foregoing registration in such country. No such “short form” license shall be deemed to amend or be used to interpret this Agreement. If there is any conflict between such a license or
other recordation document and this Agreement, this Agreement shall control. 
 ARTICLE 15  
 GENERAL PROVISIONS 
 15.1 Force
Majeure. Neither Party shall be held liable or responsible to the other Party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement, other than an obligation
to make payments hereunder, when such failure or delay is caused by or results from fire; flood; earthquake; tornado; embargo; government regulation; prohibition or intervention; war; act of war (whether war be declared or not); insurrection; act of
terrorism; riot; civil commotion; strike; lockout; act of God or any other cause beyond the reasonable control of the affected Party to anticipate, prevent, avoid or mitigate (a “Force Majeure Event”) so long as the affected Party
uses commercially reasonable efforts to overcome the effects of the Force Majeure Event. 
 15.2 Further Assurances. Each Party hereto
agrees to perform such acts, execute such further instruments, documents or certificates, and provide such cooperation in proceedings and actions as may be reasonably requested by the other Party in order to carry out the intent and purpose of this
Agreement, including without limitation the registration or recordation of the rights granted hereunder. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 
  

 31 

 15.3 Severability. Both Parties hereby expressly acknowledge and agree that it is the intention of
neither Party to violate any public policy, statutory or common law, rules, regulations, treaty or decision of any government agency or executive body thereof of any country or community or association of countries and specifically agree that if any
word, sentence, paragraph, clause or combination thereof in this Agreement is found by a court or executive body with judicial powers having jurisdiction over this Agreement or any of the Parties hereto in a final unappealed order, to be in
violation of any such provisions in any country or community or association of countries, then in such event such words, sentences, paragraphs, clauses or combination shall be inoperative in such country or community or association of countries (or
reformed, for example but without limitation, to apply for a shorter period of time, such that their effect is in compliance with law) and the remainder of this Agreement shall remain binding upon the Parties hereto. 
 15.4 Notices. Any notice required or permitted to be given hereunder shall be in writing
and shall be deemed to have been properly given if delivered in person, or if mailed by registered or certified mail (return receipt requested) postage prepaid, or by a nationally recognized overnight courier, to the addresses given below or such
other addresses as may be designated in writing by the Parties from time to time during the term of this Agreement. Any notice sent by overnight courier shall be deemed received on the first Business Day after posted with the courier. Any notice
sent by registered, certified mail shall be deemed received on the fourth (4th) Business Day following the date
of posting. 
  

			
	In the case of Kosan:	  	Kosan Biosciences Incorporated
		  	3832 Bay Center Place
		  	Hayward, CA 94545
		  	Attention: General Counsel
		
		  	Telephone No.: 510-732-8400

  
 CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 32 

			
	In the case of Licensee:	  	Pfizer Inc.
		  	235 E. 42nd St.
		  	New York, New York 10017-5755
		
		  	Attention: Vice President, General Counsel
		
		  	Telephone No.: 212-733-2323
		
	With Copies to:	  	Pfizer Global Research and Development
		  	50 Pequot Ave
		  	New London, CT 06320
		  	Attention: Vice President, Strategic Alliances
		
	And:	  	Vice President, Chief Counsel

 15.5 Assignment. This Agreement may not be assigned or otherwise transferred by either
Party without the written consent of the other Party; provided, however, that either Party may, without such consent, assign this Agreement (i) to a successor corporation in connection with the transfer or sale of all or substantially
all of its business to which this Agreement pertains or in the event of the merger or consolidation with another corporation; (ii) to an Affiliate and (iii) with respect to Licensee, to a Third Party if Licensee is required to divest any
of the Licensed Products in order to comply with applicable antitrust law or government order. Any purported assignment in violation of the preceding sentence shall be void. Any permitted assignee shall assume all obligations of its assignor under
this Agreement. 
 15.6 Performance by Affiliates. Each of Kosan and Licensee acknowledge that their obligations and rights under this
Agreement may be performed and exercised by Affiliates of Kosan and Licensee, respectively. Obligations of the Party for which one of its Affiliates is performing hereunder shall be deemed to extend to such performing Affiliate. Each of Kosan and
Licensee guarantee performance of this Agreement by its Affiliates. Wherever in this Agreement the Parties delegate responsibility to Affiliates or local operating entities, the Parties agree that such entities shall not make decisions inconsistent
with this Agreement, amend the terms of this Agreement or act contrary to its terms in any way. Further, if a Party’s Affiliate breaches any aspect of this Agreement performance of which has been delegated to such Affiliate or acts in any way
inconsistently with the foregoing sentence, then the other Party shall be entitled to proceed against the Party whose Affiliate so breached, and shall not first be required to proceed against the Affiliate that so breached. 
 15.7 Publicity. The Parties have agreed that Kosan may issue the press release in the form previously provided to Licensee. Neither Party will
originate any publicity, news release or other public announcement, written or oral, relating to the confidential terms or conditions contained in this Agreement without the prior notification to the other Party, unless such disclosure is required
by law or stock exchange rule, is 
  
 CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 33 

 
required to be contained in financial statements prepared in accordance with generally accepted accounting principles, or has been announced previously in
accordance with this Section 15.7. If disclosure is required by law or stock exchange rule, the disclosing Party shall use commercially reasonable efforts to obtain confidential treatment, give the other Party sufficient advance notice to allow
the other Party to comment and redact business and financial provisions reasonably identified by the other Party. Licensee agrees that the timely announcement of the progression of a Licensed Product through clinical development is required for
Kosan to communicate effectively with its shareholders and prospective investors, including but not limited to the announcement of the initiation of clinical trials, the filing of an NDA, Approval and First Commercial Sale of a Licensed Product.

 15.8 Amendment. The Parties hereto may amend, modify or alter any of the provisions of this Agreement, but only by a written
instrument that explicitly refers to this Agreement and is duly executed by both Parties hereto. 
 15.9 Entire Agreement. This
Agreement contains the entire understanding of the Parties with respect to the subject matter hereof. All express or implied agreements and understandings, either oral or written, heretofore made with respect to such subject matter are expressly
superceded by this Agreement. 
 15.10 Waiver. The failure of a Party to enforce at any time for any period any of the provisions
hereof shall not be construed as a waiver of such provisions or of the rights of such Party thereafter to enforce each such provision. 
 15.11 No Implied Licenses. Except as expressly and specifically provided under this Agreement, the Parties agree that neither Party is granted any implied rights to or under any of the other Party’s current or future patents,
trade secrets, copyrights, moral rights, trade or service marks, trade dress, or any other intellectual property rights. 
 15.12
Independent Contractors. The Parties agree that the relationship of Kosan and Licensee established by this Agreement is that of independent licensee and licensor. Furthermore, the Parties agree that this Agreement does not, is not intended
to, and shall not be construed to, establish a partnership or joint venture, and nor shall this Agreement create or establish an employment, agency or any other relationship. Except as may be specifically provided herein, neither Party shall have
any right, power or authority, nor shall they represent themselves as having any authority to assume, create or incur any expense, liability or obligation, express or implied, on behalf of the other Party, or otherwise act as an agent for the other
Party for any purpose. 
 15.13 No Third Party Beneficiaries. All rights, benefits and remedies under this Agreement are solely
intended for the benefit of Kosan and Licensee, and no Third Party shall have any rights whatsoever to (i) enforce any obligation contained in this Agreement; (ii) seek a benefit or remedy for any breach of this Agreement; or
(iii) take any other action relating to this Agreement under any legal theory, including but not limited to, actions in contract, tort (including but not limited to negligence, gross negligence and strict liability), or as a defense, setoff or
counterclaim to any action or claim brought or made by the Parties. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. 
  

 34 

 15.14 Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY
LOSS OF PROFITS, LOSS OF BUSINESS OR INTERRUPTION OF BUSINESS, OR FOR ANY OTHER INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OF ANY KIND, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGES, EXCEPT FOR
INDEMNIFICATION OBLIGATIONS. IN NO CASE SHALL EITHER PARTY BE LIABLE FOR ANY REPRESENTATION OR WARRANTY MADE BY THE OTHER PARTY TO ANY THIRD PARTY. Notwithstanding the foregoing, each Party shall be liable to the other for special, indirect or
consequential damages arising out a breach of the non-disclosure and non-use obligations under Article 10. Nothing in this Section 15.14 is intended to limit either Party’s obligations under Article 13 in relation to amounts paid to a
Third Party. Kosan’s aggregate liability with respect to the Bulk KOS-2187 and compounds within the Kosan Compound Library provided by Kosan pursuant to Section 6.3 shall be limited to [*]. 
 15.15 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, exclusive of its
choice-of-law rules. Venue for any dispute under this Agreement shall be in New York City, New York, and each Party expressly consents to the exclusive jurisdiction of the United States District Court for the Southern District of New York or the
local courts sitting in New York. 
 15.16 Headings. The article, section and paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
 15.17 Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same document. 
 15.18 Dispute Resolution. The Parties recognize that disputes as to certain matters may from time to time arise during the term of this Agreement which relate to either Party’s rights and/or obligations
hereunder. The Parties shall seek to amicably resolve disputes arising under this Agreement in an expedient manner by mutual cooperation. 
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,
MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 
  

 35 

 In Witness Hereof, the Parties have executed this Agreement effective as of the Effective Date. 
  

			
	Pfizer Inc
		
	 By:
	 	 /s/ Martin Mackay

	 Name:
	 	 Martin Mackay

	 Title:
	 	 SVP WW Research and Technology

	
	 Kosan Biosciences Incorporated

		
	 By:
	 	 /s/ Robert G. Johnson, Jr.

	 Name:
	 	 Robert G. Johnson, MD, PhD

	 Title:
	 	 Chief Executive Officer

  
  
  
  
  
  
  
  
  
 CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
  

 36 

 EXHIBIT A 
 KOSAN PATENT RIGHTS 
  

											
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
					
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
					
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
					
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
					
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
					
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
					
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
					
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
					
	Kosan Patent Family: [*]	 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	

  
  
  
  
  
  
  
  
  
 CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXHIBIT B 
 INITIAL KOS-2187 DEVELOPMENT PLAN 
 [*] 
  
  
  
  
  
  
  
  
  
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,
MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Exhibit C 
 Joint Research and Development Work Plan 
  

	I.	Working Team: The Parties will promptly establish a research and development team (the “Working Team”) that will meet [*]. The initial Working Team meeting shall be
in [*]. Prior to the initial Working Team meeting, Licensee shall provide to Kosan the name and contact information for the research and development representative of Licensee who shall be Kosan’s primary contact person under this Joint
Research and Development Plan. The Working Team shall discuss the research and development activities for Licensed Product, [*]. The frequency of Working Team meetings will [*]. Meetings will take place by phone, or in person if deemed appropriate
by the Working Team, to conduct the research and development efforts detailed herein. [*] will chair the Working Team. [*] will nominate a point person who will serve as the primary point of contact for [*]. Other [*] representatives may attend
based on the subject matter to be discussed at a particular meeting; provided that [*] provides reasonable advance notice to the chairperson of any additional attendees. Working Team will include members of Kosan’s and Licensee’s
respective research and development organizations. [*] 

  

	II.	Scope of Work: The initial scope of work contemplated by this Plan includes the following, but may be modified [*]. 

  

	 	a.	[*] 

  

	 	i.	Regulatory Documents. [*] 

  

	 	ii.	Completion of Audit Reports. [*] 

  

	 	iii.	Pharmaceutical Sciences/Manufacturing 

	 	1.	[*] 

  

	 	b.	Preparation for the Initial Phase 1 Trial. In order to facilitate the initiation of the first in human trial: 

  

	 	i.	[*] 

  

	 	c.	Costs. [*] 

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXHIBIT D 
 EXCEPTIONS TO SECTION 9.1(i) 
  

											
	Kosan Patent Family: [*]	 		 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	
						
	Kosan Patent Family: [*]	 		 		 		 		 	
	Title (US): [*]	 		 		 		 		 	
	Kosan ref. Country	 	Appln No.	 	Appln Date	 	Pat/Pub No.	 	Pat/Pub. Date	 	Status
	[*]	 		 		 		 		 	

  
  
  
  
  
  
  
  
  
 CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.Seventh Amended and Restated Registration Rights Agreement

 Exhibit 4.2 
 NIMBLEGEN SYSTEMS, INC. 
 SEVENTH AMENDED AND RESTATED 
 REGISTRATION RIGHTS AGREEMENT 
 January 25, 2007 

 Table of Contents 
  

							
	 	 	 	 	 	  	Page
	 1.
	 	 DEFINED TERMS.
	  	2
			
	 2.
	 	 REGISTRATION RIGHTS.
	  	3
		 	 2.1
	 	 Demand Registration.
	  	3
		 	 2.2
	 	 Piggyback Registrations.
	  	6
		 	 2.3
	 	 Form S-3 Registration.
	  	7
		 	 2.4
	 	 Expenses of Registration.
	  	8
		 	 2.5
	 	 Obligations of the Company.
	  	9
		 	 2.6
	 	 Termination of Registration Rights.
	  	10
		 	 2.7
	 	 Delay of Registration; Furnishing Information.
	  	10
		 	 2.8
	 	 Indemnification.
	  	11
		 	 2.9
	 	 Assignment of Registration Rights.
	  	13
		 	 2.10
	 	 Rule 144 Reporting.
	  	13
			
	 3.
	 	 MISCELLANEOUS.
	  	14
		 	 3.1
	 	 Governing Law.
	  	14
		 	 3.2
	 	 Survival.
	  	14
		 	 3.3
	 	 Successors and Assigns.
	  	14
		 	 3.4
	 	 Entire Agreement.
	  	14
		 	 3.5
	 	 Severability.
	  	14
		 	 3.6
	 	 Amendment and Waiver.
	  	14
		 	 3.7
	 	 Delays or Omissions.
	  	15
		 	 3.8
	 	 Notices.
	  	15
		 	 3.9
	 	 Attorneys’ Fees.
	  	16
		 	 3.10
	 	 Titles and Subtitles.
	  	16
		 	 3.11
	 	 Counterparts, Facsimile Signatures.
	  	16
		 	 3.12
	 	 English as Official Language.
	  	16
		 	 3.13
	 	 Dispute Resolution.
	  	16
		 	 3.14
	 	 References to Dollars.
	  	16
		 	 3.15
	 	 Effective Date.
	  	16

 NIMBLEGEN SYSTEMS, INC. 
 SEVENTH AMENDED AND RESTATED 
 REGISTRATION RIGHTS AGREEMENT 
 This SEVENTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is dated as of January 25, 2007 by and among NIMBLEGEN
SYSTEMS, INC., a Delaware corporation (the “Company”), and the individuals and entities listed on the signature pages hereof, and any other individuals or entities that may execute a counterpart signature page to this Agreement subsequent
to the date hereof (collectively, the parties hereto and such other persons or entities are referred to herein as the “Preferred Stockholders”), and amends and restates the Sixth Amended and Restated Registration Rights Agreement dated as
of December 22, 2006 (the “Amended Agreement”), by and among the Company and the individuals and entities listed on the signature pages thereof and any other individuals or entities that may have executed a counterpart signature page
thereto. 
 RECITALS 
 WHEREAS,
on or about September 28, 2004 or December 8, 2006, the Company issued shares of its Series E Preferred Stock to certain of the Preferred Stockholders who own Series E Preferred Stock in the Company and who are listed on
Exhibit A attached hereto as Series E Preferred Stockholders (collectively, the “Series E Preferred Stockholders”) pursuant to a Series E Preferred Stock Exchange Agreement dated September 28, 2004 (the
“Series E Preferred Stock Exchange Agreement”) or pursuant to the Company’s Sixth Amended and Restated Certificate of Incorporation (the “Recapitalization Charter Amendment”), as the case may be; 
 WHEREAS, on or about December 8, 2006, the Company issued shares of its Series F Preferred Stock to certain of the Preferred Stockholders who
own Series F Preferred Stock in the Company and who are listed on Exhibit A attached hereto as Series F Preferred Stockholders (collectively, the “Series F Preferred Stockholders”) pursuant to the Recapitalization
Charter Amendment and in respect of shares originally issued on or about September 28, 2004, June 24, 2005, November 23, 2005 pursuant to a Series F Preferred Stock Purchase Agreement dated September 28, 2004 (the “2004
Series F Preferred Stock Purchase Agreement”), respective Subscription Agreements, each dated June 24, 2005 (each a “Subscription Agreement”), a Series F Preferred Stock Purchase Agreement dated November 23, 2005
(the “2005 Series F Preferred Stock Purchase Agreement”), as the case may be, and on or about December 22, 2006, the Company issued shares of its Series F Preferred Stock to certain of the Preferred Stockholders pursuant to
a Series F Preferred Stock Purchase Agreement dated as of December 22, 2006 (the “2006 Series F Preferred Stock Purchase Agreement”); 
 WHEREAS, the Company is and will be issuing shares of its Series F Preferred Stock to Preferred Stockholders listed on Exhibit A attached hereto as Series F Preferred Stockholders (also, collectively, the
“Series F Preferred Stockholders”) in accordance with the terms and conditions of that certain Series F Preferred Stock Purchase Agreement dated as of January 25, 2007 (the “2007 Series F Preferred Stock
Purchase Agreement”); 

 WHEREAS, in connection with these transactions, the Company has granted and agreed to grant registration
rights to the Preferred Stockholders as set forth below in accordance with the terms and conditions set forth below; and 
 WHEREAS, the
Preferred Stockholders desire to set forth their agreements regarding such registration herein and in connection therewith the Company and the Preferred Stockholders desire to amend and restate the Amended Agreement as provided herein. 

NOW, THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and conditions set forth in this Agreement, the
Series E Preferred Stock Exchange Agreement, the Recapitalization Charter Amendment, the 2004 Series F Preferred Stock Purchase Agreement, each Subscription Agreement, the 2005 Series F Preferred Stock Purchase Agreement, the 2006
Series F Preferred Stock Purchase Agreement, and the 2007 Series F Preferred Stock Purchase Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto mutually
agree as follows: 
 AGREEMENT 
  

	1.	DEFINED TERMS. 

 As used in this Agreement, the following
terms shall have the following respective meanings: 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “Form S-3” means such form under the Securities Act in effect on the date hereof or any successor registration form under the
Securities Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC. 
 “Holder” means any Series E Holder or Series F Holder. 
 “Initial Offering” means the Company’s first firm commitment underwritten public offering of its Common Stock registered under the Securities Act. 
 “Registration Expenses” shall mean all expenses incurred by the Company in complying with Sections 2.1, 2.2, and 2.3 hereof, including,
without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, reasonable fees and disbursements of a single special counsel for the Holders, blue sky fees and expenses and the expense of
any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the Company which shall be paid in any event by the Company, stock transfer taxes, underwriting discounts and commissions).

  

 2 

 “Registrable Securities” means Series E Registrable Securities or Series F
Registrable Securities. Notwithstanding the foregoing, Registrable Securities shall not include any securities sold by a person to the public pursuant to a registration statement or Rule 144 or sold in a private transaction in which the
transferor’s rights under Section 2 are not assigned. 
 “Register,” “registered” and “registration”
refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement or document. 
 “SEC” means the Securities and Exchange Commission. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Series E Holder”
shall mean any holder of record of Series E Registrable Securities that have not been sold to the public or any assignee of record of any such Series E Registrable Securities in accordance with Section 2.9 hereof. 
 “Series F Holder” shall mean any holder of record of Series F Registrable Securities that have not been sold to the public or any
assignee of record of any such Series F Registrable Securities in accordance with Section 2.9 hereof. 
 “Series E Preferred
Stock” means the $0.001 par value, Series E Preferred Stock of the Company. 
 “Series F Preferred Stock” means the
$0.001 par value, Series F Preferred Stock of the Company. 
 “Series E Registrable Securities” means (1) Common
Stock of the Company issued or issuable upon conversion of the Series E Preferred Stock, and (2) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as)
a dividend or other distribution with respect to, or in exchange for or replacement of, such above-described securities. 
 “Series F Registrable Securities” means (1) Common Stock of the Company issued or issuable upon conversion of the Series F Preferred Stock, and (2) any Common Stock of the Company issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or replacement of, such above-described securities. 
  

	2.	REGISTRATION RIGHTS. 

 2.1 Demand Registration.

 (a) Subject to the conditions of this Section 2.1, if the Company shall receive a written request from Series F
Holders (the “Initiating Series F Holders”) who in the aggregate hold more than fifty percent (50%) of the Series F Registrable Securities that the Company file a registration statement under the Securities Act covering the
registration with an anticipated aggregate 

  

 3 

 
offering price, net of underwriting discounts and commissions, exceeding $5,000,000, then the Company shall, within thirty (30) days of the receipt
thereof, give written notice of such request to all Holders, and subject to the limitations of this Section 2.1, use its best efforts to effect, as soon as practicable, the registration under the Securities Act of all Series E Registrable
Securities that the Series E Holders request to be registered and all Series F Registrable Securities that the Series F Holders request to be registered. 
 (b) Subject to the conditions of this Section 2.1, if the Company shall receive a written request from Series E Holders (the
“Initiating Series E Holders”) who in the aggregate hold more than fifty percent (50%) of the Series E Registrable Securities that the Company file a registration statement under the Securities Act covering the registration
with an anticipated aggregate offering price, net of underwriting discounts and commissions, exceeding $5,000,000, then the Company shall, within thirty (30) days of the receipt thereof, give written notice of such request to all Holders, and
subject to the limitations of this Section 2.1, use its best efforts to effect, as soon as practicable, the registration under the Securities Act of all Series E Registrable Securities that the Series E Holders request to be
registered and all Series F Registrable Securities that the Series F Holders request to be registered. 
 (c) For
purposes of determining whether a sufficient number of Initiating Series E Holders and Initiating Series F Holders have exercised their rights to demand registration under Sections 2.1(a) or 2.1(b), above, respectively, the number of
Series E Registrable Securities and Series F Registrable Securities may, at the request of the Initiating Series E Holders or the Initiating Series F Holders be aggregated to determine whether Initiating Series E Holders or
Initiating Series F Holders holding in the aggregate at least fifty percent (50%) of all Series E Registrable Securities and Series F Registrable Securities have exercised rights under Sections 2.1(a) or 2.1(b). For purposes
hereof, Initiating Series E Holders and Initiating Series F Holders shall be referred to collectively herein as the “Initiating Holders”. 
 (d) If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they
shall so advise the Company as a part of their request made pursuant to this Section 2.1 or any request pursuant to Section 2.3 and the Company shall include such information in the written notice referred to in Sections 2.1(a) or
2.1(b), or Section 2.3(a), as applicable. In such event, the right of any Holder to include its 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 enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by a majority in interest of the Initiating Holders (which underwriter or underwriters shall be reasonably acceptable to the Company). Notwithstanding any other provision of this
Section 2.1 or Section 2.3, if the underwriter advises the Company that marketing factors require a limitation of the number of securities to be underwritten (including Registrable Securities), then the Company shall so advise all Holders
of Registrable Securities which would 
  

 4 

 
otherwise be underwritten pursuant hereto, and the number of shares that may be included in the underwriting shall be allocated: (i) first to the
Holders of all Series F Registrable Securities on a pro rata basis based on the number of all Series F Registrable Securities held by all such Holders (including the Initiating Series F Holders); and (ii) second, to the Holders
of all Series E Registrable Securities on a pro rata basis based on the number of Series E Registrable Securities held by all such Holders (including the Initiating Series E Holders); provided, however, that the number of shares of
Registrable Securities to be included in such underwriting and registration shall not be reduced unless all other securities of the Company are first entirely excluded from the underwriting and registration. Any Registrable Securities excluded or
withdrawn from such underwriting shall be withdrawn from the registration. 
 (e) The Company shall not be required to effect
a registration pursuant to this Section 2.1: 
 (1) prior to the earlier of (i) one hundred eighty (180) days
following the effective date of the registration statement pertaining to the Initial Offering; or (ii) September 28, 2007; 
 (2) with respect to requests under Section 2.1(a), after the Company has effected two (2) registrations pursuant to Section 2.1(a) and such registrations have been declared or ordered effective, and with respect to requests
under Section 2.1(b), after the Company has effected two (2) registrations pursuant to Section 2.1(b) and such registrations have been declared or ordered effective; 
 (3) during the period starting with the date sixty (60) days prior to the Company’s estimated date of filing, and ending on the
date six (6) months following the effective date of the registration statement pertaining to a public offering (other than a registration of securities in a Rule 145 transaction or with respect to an employee benefit plan); provided that
the Company makes reasonable good faith efforts to cause such registration statement to become effective; 
 (4) if within
thirty (30) days of receipt of a written request from the Initiating Series F Holders pursuant to Section 2.1(a) and/or the Initiating Series E Holders pursuant to Section 2.1(b), the Company gives notice to the Holders of the
Company’s intention to make a public offering within thirty (30) days; provided, that such right to delay a request shall be exercised by the Company not more than twice in any twelve (12) month period; 
 (5) if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 2.1 a certificate signed by
the Chairman of the Board stating that, in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such registration statement to be effected at such time, in which
event the Company shall have the right to defer such filing for a period of not more than 

  

 5 

 
ninety (90) days after receipt of the request of the Initiating Holders; provided that such right to delay a request shall be exercised by the Company
not more than once in any twelve (12) month period; or 
 (6) if the Initiating Series E Holders or the Initiating
Series F 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 Section 2.3 below. 
 2.2 Piggyback Registrations. The Company shall notify all Holders in writing at least fifteen (15) days prior to the filing of any
registration statement under the Securities Act for purposes of a public offering of securities of the Company (including, but not limited to, registration statements relating to secondary offerings of securities of the Company, but excluding
registration statements relating to employee benefit plans or with respect to corporate reorganizations or other transactions under Rule 145 of the Securities Act) and will afford each such Holder an opportunity to include in such registration
statement all or part of such Registrable Securities held by such Holder. Each Holder desiring to include in any such registration statement all or any part of the Registrable Securities held by such Holder shall, within fifteen (15) days after
the above-described notice from the Company, so notify the Company in writing. Such notice shall state the intended method of disposition of the Registrable Securities by such Holder. If a Holder decides not to include all of its Registrable
Securities in any registration statement thereafter filed by the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be
filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein. 
 (a)
If the registration statement under which the Company gives notice under this Section 2.2 is for an underwritten offering, the Company shall so advise the Holders. In such event, the right of any such Holder to be included in a registration
pursuant to this Section 2.2 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 Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company. Notwithstanding any other provision
of this Agreement, if the underwriter determines in good faith that marketing factors require a limitation of the number of shares to be underwritten below the aggregate number of shares that the Company, the Holders, and other stockholders of the
Company wish to offer for sale in such offering, the difference shall be applied: (1) first, to reduce the number of shares offered for sale by other stockholders; (2) second, to reduce the number of shares offered for sale by the Holders
to fifteen percent (15%) of the total number of shares registered in the offering; and (3) third, to reduce the number of shares offered by the Company and the number of shares offered by the Holders, pro rata. In no event will shares of
any other selling stockholder be included in such registration which would reduce the number of shares which may be included by Holders without the written consent of Holders of not less than sixty-six and two-thirds percent (66 2/3%) of the
Registrable Securities proposed to be sold in the offering. 
  

 6 

 
If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the
underwriter, delivered at least ten (10) business days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration. For
any Holder which is a partnership or corporation, the partners, retired partners and shareholders of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing
person shall be deemed to be a single Holder, and any pro rata reduction with respect to such Holder shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such Holder, as
defined in this sentence. 
 (b) The Company shall have the right to terminate or withdraw any registration initiated by it
under this Section 2.2 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The Registration Expenses of such withdrawn registration shall be borne by the Company in
accordance with Section 2.4 hereof. 
  

	2.3	Form S-3 Registration. In case the Company shall receive from any Holder or Holders of Registrable Securities a written request or requests that the Company effect a
registration on Form S-3 (or any successor to Form S-3) or any similar short-form registration statement and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the
Company will: 

 (a) promptly give written notice of the proposed registration, and any related qualification or
compliance, to all other Holders of Registrable Securities; and 
 (b) as soon as practicable, effect such registration and
all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company;
provided however, that the Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 2.3: 
 (1) if Form S-3 (or any successor or similar form) is not available for such offering by the Holders; 
 (2) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an
aggregate price to the public of less than $5,000,000; 
 (3) if within thirty (30) days of receipt of the written
request described in the preamble to this Section 2.3, the Company gives notice to the Holder or Holders of the Company’s intention to make a public offering within thirty 
  

 7 

 (30) days; provided, that such right to delay a request shall be exercised by the
Company not more than twice in any twelve (12) month period; 
 (4) during the period starting with the filing of, and
ending on the date six (6) months following the effective date of the registration statement pertaining to a public offering (other than a registration of securities in a Rule 145 transaction or with respect to an employee benefit plan);

 (5) if the Company shall furnish to the Holders a certificate signed by the Chairman of the Board of Directors of the
Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such Form S-3 registration to be effected at such time, in which event the Company
shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than ninety (90) days after receipt of the request of the Holder or Holders under this Section 2.3; provided, that such right to delay
a request shall be exercised by the Company not more than once in any twelve (12) month period; or 
 (6) in any
particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance. 
 (c) Subject to the foregoing, the Company shall file a Form S-3 registration statement covering the Registrable Securities and other
securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders. Registrations effected pursuant to this Section 2.3 shall not be counted as demands for registration or registrations
effected pursuant to Sections 2.1 or 2.2, respectively. 
  

	2.4	Expenses of Registration. Except as specifically provided herein, all Registration Expenses incurred in connection with any registration, qualification or compliance pursuant
to Section 2.1 or any registration under Section 2.2 or Section 2.3 herein shall be borne by the Company. All underwriting discounts and selling commissions incurred in connection with any registrations hereunder shall be borne by the
holders of the securities so registered pro rata on the basis of the number of shares so registered. The Company shall not, however, be required to pay for expenses of any registration proceeding begun pursuant to Section 2.1, the request of
which has been subsequently withdrawn by the Initiating Holders unless (a) the withdrawal is based upon material adverse information concerning the Company of which the Initiating Holders were not aware at the time of such request or
(b) the Holders of a majority of Registrable Securities having the right to request a registration pursuant to Section 2.1 agree to forfeit their right to one (1) requested registration pursuant to Section 2.1, in which event
such right shall be forfeited by all Holders. If the Holders are required to pay the Registration Expenses, such expenses shall be borne by the holders of securities (including Registrable Securities) requesting such registration in proportion to
the number of shares for which registration was requested. If the Company is required to pay the Registration Expenses of a withdrawn offering pursuant to clause (a), above, then the Holders shall not forfeit their rights pursuant to
Section 2.1 to a demand registration. 

  

 8 

 2.5 Obligations of the Company. Whenever required 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 all 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 up to one hundred twenty (120) days or, if earlier, until the Holder or Holders have completed the distribution related thereto, provided that the Company shall not be required to file, cause to
become effective or maintain the effectiveness of any registration statement that contemplates a distribution of securities on a delayed or continuous basis pursuant to Rule 415 under the Securities Act; 
 (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 provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for the period set forth in paragraph (a), above;

 (c) Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with
the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 
 (d) Use its reasonable best 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 Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions; 
 (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 managing underwriter(s) of such offering; provided that each Holder participating in such underwriting shall also enter into and perform
its obligations under such an agreement; 
 (f) Notify each Holder of Registrable Securities covered by such registration
statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; 
  

 9 

 (g) Cause all such Registrable Securities registered pursuant hereunder to be listed on
each securities exchange on which similar securities issued by the Company are then listed; 
 (h) Provide a transfer agent
and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; and 
 (i) Use its best efforts to furnish, on the date that such Registrable Securities are delivered to the underwriters for sale, if such
securities are being sold through underwriters, (1) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an
underwritten public offering, addressed to the underwriters, if any, and (2) a letter dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering addressed to the underwriters. The opinion referred to in (1) above and, to the extent consistent with then applicable law and generally accepted accounting
principles and practices, the letter referred to in (2) above also shall be addressed to the Holders requesting registration of Registrable Securities. 
  

	2.6	Termination of Registration Rights. All registration rights granted under this Section 2 shall terminate and be of no further force and effect if (a) the Company
has completed its Initial Offering and is subject to the provisions of the Exchange Act, and (b) all Registrable Securities held by and issuable to such Holder (and its affiliates, partners, former partners, members and former members) may be
sold under Rule 144 during any ninety (90) day period. 

  

	2.7	Delay of Registration; Furnishing Information. 

 (a) No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or
implementation of this Section 2. 
 (b) It shall be a condition precedent to the obligations of the Company to take any
action pursuant to Section 2.1, 2.2 or 2.3 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall
be required to effect the registration of their Registrable Securities. 
 (c) The Company shall have no obligation with
respect to any registration requested pursuant to Section 2.1 or Section 2.3 if, due to the operation of Section 2.1(d), the number of shares or the anticipated aggregate offering price of the Registrable Securities to be included in
the registration does not equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Company’s obligation to initiate such registration as specified in Section 2.1 or
Section 2.3, whichever is applicable. 
  

 10 

 2.8 Indemnification. In the event any Registrable Securities are included in a registration
statement under Sections 2.1, 2.2 or 2.3: 
 (a) To the extent permitted by law, the Company will indemnify and hold
harmless each Holder, the partners, officers and directors of each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act
or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”) by the Company: (1) any untrue statement or alleged untrue statement of a
material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (2) the 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 (3) any violation or alleged violation by the Company 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 in connection with the offering covered by such registration statement; and the Company will pay as incurred to each such Holder, partner, officer, director,
underwriter or controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided however, that the indemnity agreement contained
in this Section 2.8(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor
shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by such Holder, partner, officer, director, underwriter or controlling person of such Holder. 
 (b) To the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration qualifications or compliance is being effected,
indemnify and hold harmless the Company, each of its directors, its officers and each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter and any other Holder selling securities under such registration
statement or any of such other Holder’s partners, directors or officers or any person who controls such Holder, against any losses, claims, damages or liabilities (joint or several) to which the Company or any such director, officer,
controlling person, underwriter or other such Holder, or partner, director, officer or controlling person of such other Holder may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses,
claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information
furnished by such Holder under an instrument duly executed by such Holder 

  

 11 

 
and stated to be specifically for use in connection with such registration; and each such Holder will pay as incurred any legal or other expenses reasonably
incurred by the Company or any such director, officer, controlling person, underwriter or other Holder, or partner, officer, director or controlling person of such other Holder in connection with investigating or defending any such loss, claim,
damage, liability or action if it is judicially determined that there was such a Violation; provided, however, that the indemnity agreement contained in this Section 2.8(b) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action 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 any indemnity under this Section 2.8 exceed the net
proceeds from the offering received by such Holder. 
 (c) Promptly after receipt by an indemnified party under this
Section 2.8 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.8, deliver to the
indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own 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
proceeding. Without regard to the foregoing, the indemnified party will have an absolute right to participate in such proceeding using separate counsel at its own expense. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action, if materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 2.8, but the omission so
to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 2.8. 
 (d) If the indemnification provided for in this Section 2.8 is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall to the extent permitted by applicable law contribute to the
amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the
other in connection with the Violation(s) that resulted in such loss, claim, damage or liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined
by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party
and the parties’ relative intent, knowledge, 

  

 12 

 
access to information and opportunity to correct or prevent such statement or omission; provided, that in no event shall any contribution by a Holder
hereunder exceed the net proceeds from the offering received 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) The obligations of the Company and Holders under this Section 2.8 shall survive
completion of any offering of Registrable Securities in a registration statement and the termination of this agreement. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party,
consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or
litigation. 
 2.9 Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to
this Section 2 may be assigned: (i) by any Holder of Series F Registrable Securities, to any third party, and (ii) by any Holder of Series E Registrable Securities, to any third party, which, in each case, (a) is a
subsidiary, parent, stockholder, general partner, limited partner, retired partner, member or retired member of such Holder, (b) is such Holder’s family member or a trust for the benefit of such Holder or such family member, or (c) an
Affiliate of such Holder; provided, however, that in the case of any transfer under clauses (i) or (ii) above, (a) the transferor shall, within twenty (20) days after such transfer, furnish to the Company written notice of the
name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee shall agree to be subject to all provisions set forth in this Agreement; and (c) such
transferee must not be a person deemed by the Board of Directors of the Company, in its reasonable judgment, to be a competitor or potential competitor of the Company. Otherwise, such rights may not be assigned. For purposes hereof,
“Affiliate” shall mean an entity controlling, controlled by or under common control with a Holder. 
 2.10 Rule 144
Reporting. With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its best
efforts to: 
 (a) Make and keep public information available, as those terms are understood and defined in SEC Rule 144
or any similar or analogous rule promulgated under the Securities Act, at all times after the effective date of the first registration filed by the Company for an offering of its securities to the general public; 
 (b) File with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act; and 

 

 13 

 (c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith
upon request: a written statement by the Company as to its compliance with the reporting requirements of said Rule 144 of the Securities Act and of the Exchange Act (at any time after it has become subject to such reporting requirements); a
copy of the most recent annual or quarterly report of the Company; and such other reports and documents as a Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities without
registration. 
  

	3.	MISCELLANEOUS. 

 3.1 Governing Law. This Agreement
shall be governed by and construed under the laws of the State of Wisconsin as applied to agreements among Wisconsin residents entered into and to be performed entirely within Wisconsin. 
 3.2 Survival. The representations, warranties, covenants, and agreements made herein shall survive any investigation made by any Holder and the
closing of the transactions contemplated hereby. All statements as to factual matters contained in any certificate or other instrument delivered by or on behalf of the Company pursuant hereto in connection with the transactions contemplated hereby
shall be deemed to be representations and warranties by the Company hereunder solely as of the date of such certificate or instrument. 
 3.3
Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto and shall
inure to the benefit of and be enforceable by each person who shall be a holder of Registrable Securities from time to time; provided however, that prior to the receipt by the Company of adequate written notice of the transfer of any Registrable
Securities specifying the full name and address of the transferee, the Company may deem and treat the person listed as the holder of such shares in its records as the absolute owner and holder of such shares for all purposes. 
 3.4 Entire Agreement. This Agreement constitutes the full and entire understanding and agreement among the parties with regard to the subjects
hereof and no party shall be liable or bound to any other in any manner by any representations, warranties, covenants and agreements with regard to the subjects hereof except as specifically set forth herein. 
 3.5 Severability. In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein. 
 3.6 Amendment and Waiver. 
 (a) Except as otherwise expressly provided, this Agreement may be amended or modified only upon the written consent of the Company (as
approved by a majority of the members of the Board of Directors then in office), the Holders of more than fifty percent (50%) of the Series E Registrable Securities then outstanding and the Holders of more than fifty percent (50%) of the
Series F Registrable Securities then outstanding. 
  

 14 

 (b) Except as otherwise expressly provided, the obligations of the Company and the rights
of the Holders of Series E Registrable Securities under this Agreement may be waived only with the written consent of the holders of more than fifty percent (50%) of the Series E Registrable Securities then outstanding unless such
waiver is effectuated by virtue of an amendment to this Agreement affecting all Holders equally in proportion to their holdings of Registrable Securities. 
 (c) Except as otherwise expressly provided, the obligations of the Company and the rights of the Holders of Series F Registrable Securities under this Agreement may be waived only with the written consent of the
holders of more than fifty percent (50%) of the Series F Registrable Securities then outstanding unless such waiver is effectuated by virtue of an amendment to this Agreement affecting all Holders equally in proportion to their holdings of
Registrable Securities. 
 (d) Notwithstanding the foregoing, the provisions of this Agreement may not be waived, amended or
otherwise modified in a manner that adversely affects one group of Holders differently from another group of Holders without the written consent of a majority of the shares of Registrable Securities held by the group of Holders so affected.

 (e) Notwithstanding the foregoing, this Agreement may be amended to add as a party any Series E Holder or
Series F Holder to the extent not otherwise a party hereto; provided, however, that such Holder shall have executed a counterpart to this Agreement agreeing to be bound by the terms of this Agreement as a Holder. 
 3.7 Delays or Omissions. It is agreed that no delay or omission to exercise any right, power, or remedy accruing to any Holder, upon any breach,
default or noncompliance of the Company under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or of any similar breach,
default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent, or approval of any kind or character on any Holder’s part of any breach, default or noncompliance under the Agreement or any waiver on such
Holder’s part of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, by law, or otherwise afforded to
Holders, shall be cumulative and not alternative. 
 3.8 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 facsimile if sent during normal business hours of the recipient; if not, then on the next business day, (c) five
(5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt. All communications shall be sent to the party to be notified at the address as set forth on the signature pages hereof or Exhibit A hereto or at such other address as such party may designate by ten (10) days’
advance written notice to the other parties hereto. 
  

 15 

 3.9 Attorneys’ Fees. In the event that any suit or action is instituted to enforce any
provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this Agreement, including
without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 
 3.10 Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 
 3.11 Counterparts, Facsimile Signatures. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all
of which together shall constitute one instrument. This Agreement may be executed by facsimile and each facsimile signature will have the same effect as an original signature. 
 3.12 English as Official Language. The parties acknowledge and agree that English shall be the official language for the interpretation of this
Agreement. 
 3.13 Dispute Resolution. Any party to this Agreement who is not a U.S. resident or citizen or is a foreign entity shall
attempt to resolve through negotiation any disputes, controversies or other claims arising out of or in connection with this Agreement with any other party to this Agreement. To the extent that any such disputes, controversies or claims cannot be
resolved as a result of such discussions, such unresolved disputes, controversies and claims shall be settled by arbitration in accordance with the UNCITRAL Arbitration Rules in effect on the date of this Agreement. The appointing authority shall be
the International Chamber of Commerce. The number of arbitrators shall be three (3). The place of arbitration shall be Toronto, Canada. The language to be used in the arbitration shall be English. In connection with the arbitration, the Federal
Rules of Evidence in effect in the United States of America will govern evidentiary questions and the procedural and substantive rules of the State of Wisconsin, United States of America will apply. The parties acknowledge and agree that this
Agreement and all agreements, documents, instruments and certificates delivered in connection herewith (including the Related Agreements) and any award rendered pursuant hereto or thereto shall be governed by the 1958 United Nations Convention on
the Recognition and Enforcement of Foreign Arbitral Awards. In the event of any conflict between the UNCITRAL Arbitration Rules and this clause, this clause shall govern. Judgment upon the award rendered may be entered in any court having
jurisdiction. Application shall be made to such court for judicial acceptance of the award and an order of enforcement as the case may be. 
 3.14 References to Dollars. All references herein to “$” or “Dollars” shall be to United States Dollars. 
 3.15 Effective Date. If the “Closing Date” as defined in the 2007 Series F Preferred Stock Purchase Agreement is not January 25, 2007 but instead a later date not later than February 9, 2007 as provided in
Section 2.1 of the 2007 Series F Preferred 

  

 16 

 
Stock Purchase Agreement, then, notwithstanding the date of January 25, 2007 first written above in this Agreement, this Agreement shall be effective as
of such Closing Date and not as of January 25, 2007. 
  

 17 

 IN WITNESS WHEREOF, the parties hereto have executed this SEVENTH AMENDED AND RESTATED REGISTRATION
RIGHTS AGREEMENT as of the date set forth in the first paragraph hereof. 
  

			
	COMPANY:
	
	NIMBLEGEN SYSTEMS, INC.
		
	By:	 	 /s/ Stanley D. Rose

	Print Name:	 	Stanley D. Rose
	Title:	 	CEO
	
	STOCKHOLDERS:
	
	780 PARTNERS
		
	By:	 	 /s/ Richard J. Bliss

	Print Name:	 	Richard J. Bliss
	Title:	 	Managing Partner
	
	 BAIRD VENTURE PARTNERS I
 LIMITED
PARTNERSHIP

		
	By:	 	Baird Venture Partners Management Company I, LLC, its General Partner
		
	By:	 	 /s/ Peter K. Shagory

	Title:	 	Director
		
		 	  

		 	Frederick R. Blattner

 Signature Page – Seventh Amended And Restated Registration Rights Agreement 

			
	BVP I AFFILIATES FUND LIMITED
PARTNERSHIP
		
	By:	 	Baird Venture Partners Management Company I, LLC, its General Partner
		
	By:	 	 /s/ Peter K. Shagory

	Title	 	Director
	
	FHF PARTNERS
		
	By:	 	 /s/ Mitchell S. Fromstein

	Print Name:	 	Mitchell S. Fromstein
	Title:	 	General Partner
		
		 	 /s/ Roland Green

		 	Roland Green
	
	ICE NINE INVESTMENTS, LLC
		
	By:	 	 /s/ Nicholas Seay

	Print Name:	 	Nicholas Seay
	Title:	 	Managing Member
	
	ITX INTERNATIONAL EQUITY CORPORATION
		
	By:	 	 /s/ Takehito Jimro

	Print Name:	 	Takehito Jimro
	Title:	 	CEO
		
		 	 /s/ Emile Nuwaysir

		 	Emile Nuwaysir
		
		 	 /s/ Frank V. Sica

		 	Frank V. Sica

 Signature Page – Seventh Amended And Restated Registration Rights Agreement 

			
	 SKYLINE VENTURE PARTNERS
 QUALIFIED
PURCHASER FUND II, L.P.

		
	By:	 	Skyline Venture Management II LLC, its General Partner
		
	By:	 	 /s/ John G. Freund

		 	John G. Freund, Managing Director
	
	SKYLINE VENTURE PARTNERS II, L. P.
		
	By:	 	Skyline Venture Management II LLC, its General Partner
		
	By:	 	 /s/ John G. Freund

		 	John G. Freund, Managing Director
	
	SKYLINE EXPANSION FUND, L.P.
		
	By:	 	Skyline Expansion Fund Management, LLC
	Its:	 	General Partner
		
	By:	 	Skyline Venture Management III, LLC
	Its:	 	Managing Member
		
	By:	 	 /s/ John G. Freund

		 	John G. Freund, Managing Director
		
		 	 /s/ David C. Sneider

		 	David C. Sneider
	
	SCHOTT AG
		
	By:	 	 /s/ Gordon Weber

	Print Name:	 	Gordon Weber
	Title:	 	General Counsel

 Signature Page – Seventh Amended And Restated Registration Rights Agreement 

			
	 STATE OF WISCONSIN INVESTMENT
 BOARD

		
	By:	 	 /s/ Christopher D. Prestinacomo

	Print Name:	 	Christopher D. Prestinacomo
	Title:	 	Portfolio Manager
	
	TACTICS II LLC
		
	By:	 	 /s/ Robert J. Palay

	Print Name:	 	Robert J. Palay
	Title:	 	Member
		
		 	 /s/ Michael J. Treble

		 	Michael J. Treble
	
	VENTURE INVESTORS EARLY STAGE FUND III LIMITED PARTNERSHIP
		
	By:	 	Venture Investors LLC, its General Partner
		
	By:	 	 /s/ John Neis

		 	John Neis, Member
	
	WISCONSIN ALUMNI RESEARCH FOUNDATION
		
	By:	 	 /s/ Carrie Thome

	Print Name:	 	Carrie Thome
	Title:	 	Assoc. Dir. of Inv.
		
	By:	 	 /s/ Kenneth Lutz

	Print Name:	 	Kenneth Lutz
	Title:	 	Controller

 Signature Page – Seventh Amended And Restated Registration Rights Agreement 

			
	TEXAS INSTRUMENTS, INCORPORATED
		
	By:	 	  

	Print Name:	 	  

	Title:	 	  

		
		 	 /s/ Harold Garner

		 	Harold Garner
	
	STARTech SEED FUND II, L.P.
		
	By:	 	  

	Print Name:	 	  

	Title:	 	  

		
		 	 /s/ Stanley D. Rose

		 	Stanley D. Rose
		
		 	  

		 	Rodney Wallace
		
		 	 /s/ Steven W. Smith

		 	Steven W. Smith
		
		 	 /s/ Daniel Clutter

		 	Daniel Clutter
	
	CARGILL, INCORPORATED
		
	By:	 	 /s/ James Sayre

	Print Name:	 	James Sayre
	Title:	 	President, Cargill Ventures

 Signature Page – Seventh Amended And Restated Registration Rights Agreement 

			
	 TOPSPIN PARTNERS, L.P.

		
	By:	 	 /s/ Steven J. Winick

	Print Name:	 	Steven J. Winick
	Title:	 	Principal
	
	TOPSPIN ASSOCIATES, L.P.
		
	By:	 	 /s/ Steven J. Winick

	Print Name:	 	Steven J. Winick
	Title:	 	Principal
	
	BROOKSIDE CAPITAL PARTNERS FUND, L.P.
		
	By:	 	 /s/ Ted Pappendick

	Print Name:	 	Ted Pappendick
	Title:	 	Managing Director
	
	ADAGE CAPITAL PARTNERS, L.P.
		
	By:	 	 /s/ D. Labow

	Print Name:	 	D. Labow
	Title:	 	Chief Operating Officer
	
	STARK MASTER FUND LTD.
		
	By:	 	 /s/ Brian H. Davidson

	Print Name:	 	Brian H. Davidson
	Title:	 	 Authorized Signatory of Stark
 Offshore Management
LLC,
 Investment Manager of Stark Master Fund Ltd.

 Signature Page – Seventh Amended and Restated Registration Right Agreement 

			
	 BBT FUND, L.P.

		
	By:	 	BBT Genpar, L.P.
	Its:	 	General Partner
		 	By: FFT-FW, Inc.
		 	Its: General Partner
		
	By:	 	 /s/ William O. Reimann

	Print Name:	 	William O. Reimann
	Title:	 	Vice President
	
	CAP FUND, L.P.
		
	By:	 	Cap Genpar, L.P.
	Its:	 	General Partner
		 	By: Cap-FW, Inc.
		 	Its: General Partner
		
	By:	 	 /s/ William O. Reimann

	Print Name:	 	William O. Reimann
	Title:	 	Vice President
	
	SRI FUND, L.P.
		
	By:	 	SRI Genpar, L.P.
	Its:	 	General Partner
		 	By: BBT-FW, Inc.
		 	Its: General Partner
		
	By:	 	 /s/ William O. Reimann

	Print Name:	 	William O. Reimann
	Title:	 	Vice President
	
	QVT FUND LP
		
	By:	 	QVT Associates GP LLC
	Its:	 	General Partner
		
	By:	 	 /s/ Dan Gold

	Print Name:	 	Dan Gold
	Title:	 	Managing Member
		
	By:	 	 /s/ Nicholas Brumm

	Print Name:	 	Nicholas Brumm
	Title:	 	Managing Member

 Signature Page – Seventh Amended and Restated Registration Right Agreement 

			
	THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY (SBST-LS)
		
	By:	 	 /s/ Martina Poquet

		 	Martina Poquet, Director-Separate Investments
		
		 	 /s/ J. Warren Huff

		 	J. Warren Huff

 Signature Page – Seventh Amended and Restated Registration Right Agreement

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