Document:

EX-10.3

 Exhibit 10.3 

2015 PERFORMANCE SHARE AGREEMENT 

PFSWEB, INC. 2005 EMPLOYEE STOCK AND INCENTIVE PLAN 

THIS PERFORMANCE SHARE AGREEMENT (“Agreement”) is made and entered into as of the 31st day of March, 2015 (the “Grant
Date”) by and between                      (the “Employee”) and PFSweb, Inc., a Delaware corporation (the “Company”). 

WHEREAS, the Company sponsors and maintains the PFSweb, Inc., 2005 Employee Stock and Incentive Plan, as the same may be amended from
time to time (the “Plan;” terms defined in the Plan having the same meaning when used herein, except as otherwise defined herein); and 

WHEREAS, the Board and Article 4 of the Plan have vested in the Committee the right to determine the type(s) and amount(s) of Award(s)
to be granted to any employee and the terms and conditions thereof; and 
 WHEREAS, Article 9 of the Plan provides for the grant to
an employee of Performance Shares subject to restrictions that include the achievement of Company performance goals; and 
 WHEREAS,
the Committee has decided to make a grant of Performance Shares to the Employee with respect to the Company’s performance for its fiscal year beginning on January 1, 2015 and ending on December 31, 2015 on the terms and conditions
hereinafter set forth; and 
 WHEREAS, the Employee desires to accept the Committee’s grant of such Performance Shares on the
terms and conditions hereinafter set forth; 
 NOW, THEREFORE, intending to be legally bound, and for good and valuable
consideration, the sufficiency of which is hereby acknowledged, the Company and the Employee hereby agree as follows: 
 1.
Definitions. The following terms (not otherwise defined herein), when used in this Agreement, shall have the following meanings, unless the context clearly requires otherwise (such definitions to be equally applicable to both the singular
and plural of the defined terms). 
 “Adjusted EBITDA” shall mean the amount determined by the Committee as the
Company’s “Adjusted EBITDA” for Fiscal Year 2015, as adjusted for, and without giving effect to, (i) the grant, issuance or approval of any Performance Awards for Fiscal Year 2015 and (ii) without duplication, such other
items as may be identified or otherwise designated as adjustments for purposes of determining “Adjusted EBITDA” in an Approved Budget. 

“Annual Closing Price” shall mean, for any Fiscal Year or Performance Period, the product obtained by multiplying
(i) the quotient obtained by dividing the Average Closing Price by the Opening Price, by (ii) 100. 
 “Annual Index
Targets” shall mean the First Annual Index target, the Second Annual Index target, the Third Annual Index Target and the Fourth Annual Index Target. 

 “Approved Budget” shall mean, for any Fiscal Year, the budget approved by the
Board as the “Approved Budget” for such Fiscal Year. 
 “Average Closing Price” shall mean, for any Fiscal Year
or Performance Period, the simple arithmetic average of the daily volume-weighted average price (“VWAP”) for the Stock on NASDAQ during the 20 consecutive trading days ending on and including the last day of the Fiscal Year or Performance
Period. 
 “Average Index Closing Price” shall mean, for any Fiscal Year or Performance Period, the simple arithmetic
average of the closing index values of the Index as reported by Bloomberg or other similar reporting service during the 20 consecutive trading days ending on and including the last day of the Fiscal Year or Performance Period. 

“Base Bonus” shall mean the Performance Shares payable to the Employee in respect of Fiscal Year 2015 upon the achievement of
the Base Bonus Target as set forth in the individual Award Certificate issued by the Committee to the Employee. 
 “Base Bonus
Target” shall mean Adjusted EBITDA for Fiscal Year 2015 equaling or exceeding the amounts so designated as set forth in the individual Award Certificate issued by the Committee to the Employee. 

“Cumulative Index Targets,” shall mean the First Cumulative Index Target, the Second Cumulative Index Target, the Third
Cumulative Index Target and the Fourth Cumulative Index Target as set forth below, which shall be deemed achieved for the Performance Periods set forth below if (i) for the First Cumulative Index Target, the Annual Closing Price equals or
exceeds the Index Closing Price within the corresponding ranges set forth below, and (ii) for Cumulative Index Targets other than the First Cumulative Index Target, the Annual Closing Price exceeds the Index Closing Price within the
corresponding ranges set forth below. 
  

									
	 Cumulative Index Target
	  	 First Performance
Period
	  	 Second Performance
Period
	  	 Third Performance
Period
	  	 Fourth Performance
Period

	 First Cumulative Index Target
	  	0.00 – 2.49	  	0.00 – 4.99	  	0.00 – 7.49	  	0.00 – 9.99
	 Second Cumulative Index Target
	  	2.50 – 4.99	  	5.00 – 9.99	  	7.50 –14.99	  	10.00 – 19.99
	 Third Cumulative Index Target
	  	5.00 – 7.49	  	10.00 –14.99	  	15.00 –22.49	  	20.00 – 29.99
	 Fourth Cumulative Index Target
	  	7.50 or more	  	15.00 or more	  	22.50 or more	  	30.00 or more

 “ERISA” shall mean the Employee Retirement Income Security Act of 1986, as amended. 

  
 2 

 “First Annual Index Target” shall mean, for any Fiscal Year, the Annual Closing
Price equals the Index Closing Price or exceeds the Index Closing Price by up to, but not including 2.5. 
 “First Performance
Period” shall mean the 2015 Fiscal Year. 
 “Fiscal Year” shall mean the 12-consecutive-month period beginning on
January 1 and ending on December 31, so that, by way of example, Fiscal Year 2015 shall mean the 12-consecutive-month period beginning on January 1, 2015 and ending on December 31, 2015. 

“Fiscal Year Date” shall mean December 31, 2015. 

“Fourth Annual Index Target” shall mean, for any Fiscal Year, the Annual Closing Price exceeds the Index Closing Price by 7.5
or more. 
 “Fourth Performance Period” shall mean the period beginning on January 1, 2015 and ending on
December 31, 2018. 
 “Index” shall mean the Russell Microcap Index, as issued by Russell Investments, Inc., or, if
such Index is no longer published or the Committee determines that such Index no longer appropriately represents the Company’s peer group (as measured by market capitalization), such other index as the Committee shall determine in its sole
discretion. 
 “Index Closing Price” shall mean, for any Fiscal Year or Performance Period, the product obtained by
multiplying (i) the quotient obtained by dividing the Average Index Closing Price by the Opening Index Price, by (ii) 100. 

“Opening Price” shall mean (i) Ten Dollars and Ninety-Nine Cents ($10.99) for purposes of determining the Annual Index
Targets for Fiscal Year 2015 and the Cumulative Index Targets and (ii) for purposes of determining the Annual Index Targets for any Fiscal Year other than Fiscal Year 2015, the Average Closing Price for the immediately preceding Fiscal Year.

 “Opening Index Price” shall mean (i) $495.10 for purposes of determining the Annual Index Targets for Fiscal Year
2015 and the Cumulative Index Targets and (ii) for purposes of determining the Annual Index Targets for any Fiscal Year other than Fiscal Year 2015, the Average Index Closing Price for the immediately preceding Fiscal Year. 

“Performance Period” shall mean the First Performance Period, the Second Performance Period, the Third Performance Period or
the Fourth Performance Period, as applicable. 
 “Second Annual Index Target” shall mean, for any Fiscal Year, the Annual
Closing Price exceeds the Index Closing Price by 2.5 or more up to, but not including 5.0. 
 “Second Performance Period”
shall mean the period beginning on January 1, 2015 and ending on December 31, 2016. 
 “Stretch Bonus” shall mean
the Performance Shares payable to the Employee in respect of Fiscal Year 2015 upon the achievement of the Stretch Bonus Target as set forth in the individual Award Certificate issued by the Committee to the Employee. 

  
 3 

 “Stretch Bonus Target” shall mean Adjusted EBITDA for Fiscal Year 2015 equaling
or exceeding the amounts so designated as set forth in the individual Award Certificate issued by the Committee to the Employee. 

“Target Bonus” shall mean the Performance Shares payable to the Employee upon the achievement of the Target Bonus Target as
set forth in the individual Award Certificate issued by the Committee to the Employee. 
 “Target Bonus Target” shall mean
Adjusted EBITDA for Fiscal Year 2015 equaling or exceeding the amounts so designated as set forth in the individual Award Certificate issued by the Committee to the Employee. 

“Third Annual Index Target” shall mean, for any Fiscal Year, the Annual Closing Price exceeds the Index Closing Price by 5.0
or more up to, but not including 7.5. 
 “Third Performance Period” shall mean the period beginning on January 1, 2015
and ending on December 31, 2017. 
 2. Performance Shares. The number of Performance Shares payable to the Employee
hereunder shall be determined as follows: 
 (a) Base Bonus. If the Base Bonus Target, but neither the Target Bonus Target nor the
Stretch Bonus Target, is achieved, the number of Performance Shares payable to the Employee hereunder shall be the Base Bonus. If the Base Bonus Target is not achieved, the Employee shall not be entitled to payment of any Performance Shares under
this Agreement. 
 (b) Target Bonus. If the Target Bonus Target, but not the Stretch Bonus Target, is achieved, the number of
Performance Shares payable to the Employee hereunder shall be the Target Bonus. 
 (c) Stretch Bonus. If the Stretch Bonus Target is
achieved, the number of Performance Shares payable to the Employee hereunder shall be the Stretch Bonus. 
 3. Determination of Target
Achievement. The Committee, in its sole and absolute discretion, shall determine when, whether, and if so, the extent to which, the Base Bonus Target, Target Bonus Target or Stretch Bonus Target, as applicable, has been achieved. Such
determination, which shall be final and binding on all parties, shall be certified in writing as soon as administratively practicable in Fiscal Year 2016. 

4. Vesting of Performance Shares; Forfeiture. Each Performance Share represents an unfunded, unsecured promise by the Company to
provide the Employee with the Performance Shares set forth herein, subject to the satisfaction of the vesting and other terms and conditions set forth herein. The Employee shall have no vested right in the Performance Shares unless the Committee
certifies to the Board that the Base Bonus Target, Target Bonus Target or Stretch Bonus Target, as applicable, has been achieved. Such achievement, as evidenced by such certification by the Committee, shall be construed by all parties as a condition
related to the purpose of the compensation for purposes of Section 409A of the Code. Provided that such certification is made, the Performance Shares shall vest and be issued and payable as follows: 

  
 4 

 4.1 Employment Vesting. A number of Performance Shares equal to one-third (1/3) of
the number of Performance Shares payable hereunder shall vest in four (4) equal installments (each, an “Employment Vesting Installment”), commencing on January 1, 2016 and on each January 1 thereafter, so that the
Employment Vesting Installment for Fiscal Year 2015 shall vest on January 1, 2016, the Employment Vesting Installment for Fiscal Year 2016 shall vest on January 1, 2017, the Employment Vesting Installment for Fiscal Year 2017 shall vest on
January 1, 2018, and the Employment Vesting Installment for Fiscal Year 2018 shall vest on January 1, 2019; provided that, for each such Employment Vesting Installment, as applicable, the Employee is employed by the Company as of the last
day of the Fiscal Year, as applicable, for the corresponding Employment Vesting Installment for such Fiscal Year. 
 4.2 Annual Index
Vesting. A number of Performance Shares equal to one-third (1/3) of the Performance Shares payable hereunder shall vest in four (4) equal installments (each, an “Annual Index Vesting Installment”), commencing on
January 1, 2016 and on each of January 1 thereafter, so that the Annual Index Vesting Installment for Fiscal Year 2015 shall vest on January 1, 2016, the Annual Index Vesting Installment for Fiscal Year 2016 shall vest on
January 1, 2017, the Annual Index Vesting Installment for Fiscal Year 2017 shall vest on January 1, 2018, and the Annual Index Vesting Installment for Fiscal Year 2018 shall vest on January 1, 2019; provided that, for each such Annual
Index Vesting Installment, as applicable: 
 (a) the Employee is employed by the Company as of the last day of the Fiscal Year, as
applicable, for the corresponding Annual Index Vesting Installment for such Fiscal Year; and 
 (b) for each applicable Fiscal Year:
(i) the First Annual Index Target is achieved, in which event the corresponding Annual Index Vesting Installment shall vest as to twenty-five percent (25%) of the Performance Shares subject thereto and the remaining seventy five percent
(75%) of such Annual Index Vesting Installment shall be forfeited; (ii) the Second Annual Index Target is achieved, in which event the corresponding Annual Index Vesting Installment shall vest as to fifty percent (50%) of the
Performance Shares subject thereto and the remaining fifty percent (50%) of such Annual Index Vesting Installment shall be forfeited; (iii) the Third Annual Index Target is achieved, in which event the corresponding Annual Index Vesting
Installment shall vest as to seventy-five percent (75%) of the Performance Shares subject thereto and the remaining twenty-five percent (25%) of such Annual Index Vesting Installment shall be forfeited; or (iv) the Fourth Annual Index
Target is achieved, in which event the corresponding Annual Index Vesting Installment shall vest as to one hundred percent (100%) of the Performance Shares subject thereto. 

The Annual Index Vesting Installment for any Fiscal Year shall not vest and shall be forfeited if none of the Annual Index Targets is achieved for such Fiscal
Year. 
 4.3 Cumulative Index Vesting. A number of Performance Shares equal to one-third (1/3) of the Performance Shares payable
hereunder shall vest in four (4) equal installments (each, a “Cumulative Index Vesting Installment”), commencing on January 1, 2016 and on each January 1 thereafter, so that the Cumulative Index Vesting Installment
for Fiscal Year 2015 shall vest on January 1, 2016, the Cumulative Index Vesting Installment for Fiscal Year 2016 shall 

  
 5 

 
vest on January 1, 2017, the Cumulative Index Vesting Installment for Fiscal Year 2017 shall vest on January 1, 2018, and the Cumulative Index Vesting Installment for Fiscal Year 2018
shall vest on January 1, 2019; provided that, for each such Cumulative Index Vesting Installment, as applicable: 
 (a) the Employee is
employed by the Company as of the last day of the Fiscal Year, as applicable, for the corresponding Cumulative Index Vesting Installment for such Fiscal Year; and 

(b) for each Fiscal Year whose last day corresponds to the last day of a Performance Period, as to the Cumulative Index Target Vesting
Installment for such Fiscal Year: (i) the First Cumulative Index Target is achieved, in which event the corresponding Cumulative Index Vesting Installment shall vest as to twenty-five percent (25%) of the Performance Shares subject thereto
and the remaining seventy five percent (75%) of such Cumulative Index Vesting Installment shall be forfeited; (ii) the Second Cumulative Index Target is achieved, in which event the corresponding Cumulative Index Vesting Installment shall
vest as to fifty percent (50%) of the Performance Shares subject thereto and the remaining fifty percent (50%) of such Cumulative Index Vesting Installment shall be forfeited; (iii) the Third Cumulative Index Target is achieved, in
which event the corresponding Cumulative Index Vesting Installment shall vest as to seventy-five percent (75%) of the Performance Shares subject thereto and the remaining twenty-five percent (25%) of such Cumulative Index Vesting
Installment shall be forfeited; or (iv) the Fourth Cumulative Index Target is achieved, in which event the corresponding Cumulative Index Vesting Installment shall vest as to one hundred percent (100%) of the Performance Shares subject
thereto. 
 The Cumulative Index Vesting Installment for any Fiscal Year shall not vest and shall be forfeited if none of the Cumulative Index Targets is
achieved for such Fiscal Year. 
 4.4 The Committee, in its sole and absolute discretion, shall determine when, whether, and if so, the
extent to which, the vesting conditions set forth in Sections 4.1, 4.2 and 4.3 have been satisfied. Such determination, which shall be final and binding on all parties, shall be certified in writing as soon as administratively practicable following
the last day of each Fiscal Year. 
 4.5 If, at any time, the Employee voluntarily leaves employment with the Company other than for Good
Reason or is terminated by the Company for Cause, the Employee shall forfeit the entirety of the then unvested Performance Shares otherwise payable hereunder. 

5. Payment of Performance Shares. Payment of the Performance Shares shall be made by book-entry or, if the Employee so directs
the Company not later than 10 days prior to the issuance thereof, by the issuance of one or more certificates, less all applicable withholdings, within 120 days after the last day of the applicable Fiscal Year. The Employee acknowledges and agrees
that the Company has the right to deduct from payments of any kind otherwise due to the Employee any federal, state or local taxes of any kind required by law to be withheld with respect to the grant or vesting, as applicable, of the Performance
Shares. 

  
 6 

 6. No Rights as Shareholder. The Employee shall have no rights to any of the
Performance Shares issuable hereunder unless and until all vesting and other conditions set forth herein have been fully satisfied, as determined by the Committee in its good faith judgment. Until the Performance Shares are vested, neither the
Performance Shares nor any of the rights relating thereto may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Employee. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or
encumber the Performance Shares or any of the rights related thereto prior to the vesting of such Performance Shares shall be wholly ineffective and shall not be recognized by the Company for any purpose, except that any Performance Shares which,
pursuant to the terms hereof, vest following the death or Disability of the Employee may be paid to the Employee’s heirs, estate, agents, beneficiaries or assigns. 

7. Provisions of Plan. Except as provided herein, the provisions of this Agreement shall be subject to the provisions of the
Plan, which are hereby incorporated herein by reference and made part hereof. The Employee acknowledges and agrees that he or she has been provided with and has read the Plan and understands the provisions thereof. In the event of any conflict
between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall take precedence, other than for such provisions of the Plan which, by their terms, are subject to the provisions of an Award Certificate. 

8. No ERISA Plan. Neither this Agreement nor the award of the Performance-Shares hereunder shall be construed by any party as
being subject to any provisions of ERISA, and shall not be so subject. Without in any way limiting the generality of the foregoing, the Performance Shares awarded hereunder shall constitute a mere unfunded promise to pay by the Company and a bonus
program within the meaning of Department of Labor Regulation Section 2510.3-2(c) promulgated under ERISA. 
 9. Notices.
Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Secretary of the Company at the Company’s principal corporate offices. Any notice required to be delivered to the Employee under
this Agreement shall be in writing and addressed to the Employee at the Employee’s address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time
to time. 
 10. Change in Control. Notwithstanding anything contained herein, all unvested Performance Shares shall accelerate
and immediately vest upon the occurrence of a Change in Control, such acceleration and vesting to be deemed to have occurred at such time as may be necessary or required in order for the Employee to be deemed the lawful owner and holder of record as
of the effective date and time of the Change in Control. For purposes of this paragraph, the term “unvested Performance Shares” shall mean, (i) as of any date of determination following the last day of Fiscal Year 2015, the maximum
number of Performance Shares then payable hereunder or subject to vesting hereunder, as determined under Section 2 above, assuming that all conditions to issuance and vesting hereunder have been satisfied and (ii) as of any date of
determination prior to or as of the last day of Fiscal Year 2015, the maximum number of Performance Shares then payable hereunder or subject to vesting hereunder, as determined under Section 2 above, assuming that the minimum Target Bonus
Target has been achieved and all conditions to issuance and vesting hereunder have been satisfied. 

  
 7 

 11. Parachute Payments and Parachute Awards. If the Employee is a
“disqualified individual,” as defined in paragraph (c) of Code Section 280G, then, notwithstanding any other provision of this Agreement or of any other agreement, contract, or understanding heretofore or hereafter entered into
by the Employee and the Company (an “Other Agreement”), except an agreement, contract, or understanding that expressly addresses Code Section 280G or Code Section 4999 (a “280G Agreement”), and
notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Employee (or an employee group of which the Employee is a member), whether or not such compensation is deferred, is in cash,
or is in the form of a benefit to or for the Employee (a “Benefit Arrangement”), any right the Employee has in respect of payment under this Agreement, any Other Agreement or any Benefit Arrangement will be reduced or eliminated:
(a) to the extent that such right to payment, taking into account all other rights, payments, or benefits to or for the Employee under all Other Agreements and all Benefit Arrangements, would cause the payment to Employee under this Agreement
to be considered a “parachute payment” within the meaning of paragraph (b)(2) of Code Section 280G as then in effect (a “Parachute Payment”); and (b) if, as a result of receiving such Parachute Payment, the
aggregate after-tax amounts the Employee is entitled to receive from the Company under all Other Agreements and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Employee without causing any such
payment or benefit to be considered a Parachute Payment. The Company will accomplish such reduction in a manner to be mutually agreed with, and most beneficial for, the Employee. The foregoing shall not be interpreted so as to restrict, reduce,
amend or modify any of the existing terms and provisions of any 280G Agreement to which the Employee and the Company may be a party, and any payment hereunder shall be entitled to the benefits thereof. 

12. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable,
such determination shall not affect the remaining provisions of this Agreement, which shall be enforced to the maximum extent permitted under applicable law. 

13. Modification. Subject to the provisions of the Plan, this Agreement may be modified only in writing pursuant to an agreement
by and between the Company and the Employee. 
 14. Headings. The headings contained herein are for convenience of reference
only and shall not be construed by any party as having any substantive significance. 
 15. Clawback. Notwithstanding any
other provisions in this Agreement, this Award is subject to recovery under any law, government regulation or stock exchange listing requirement, and is subject to such deductions and clawback as may be required to be made pursuant to such law,
government regulation or stock exchange listing requirement (or any policy adopted by the Company at any time pursuant to any such law, government regulation or stock exchange listing requirement). 

16. Section 409A of the Code. It is intended that all payments under this Agreement qualify as short-term deferrals exempt
from the requirements of Section 409A of the Code. In the event that any payment hereunder does not qualify for treatment as an exempt short-term deferral, it is intended that such payment shall be paid in a manner that satisfies the
requirements of Section 409A of the Code. This Agreement shall be interpreted and construed accordingly. 

  
 8 

 17. Execution and Counterparts. This Agreement shall be deemed executed and
delivered by the parties upon the execution of the individual Award Certificate issued to the Employee in connection herewith, which Award Certificate shall be executed by an authorized officer of the Company and may be executed in any number of
counterparts, each of which shall be deemed an original, and shall be effective when a counterpart thereof has been received from both parties. 

***** 

  
 9 

 2015 PERFORMANCE SHARES AWARD CERTIFICATE 

ISSUED UNDER THE 
 PFSWEB,
INC. 2005 EMPLOYEE STOCK AND INCENTIVE PLAN 
  
  

1. Employee Name:                     . 

2. Base Bonus Target: Adjusted EBITDA for Fiscal Year 2015 equaling or exceeding
$                     but not equaling or exceeding
$                    . 
 3. Target Bonus Target:
Adjusted EBITDA for Fiscal Year 2015 equaling or exceeding $                     but not equaling or exceeding
$                    . 
 4. Stretch Bonus Target:
Adjusted EBITDA for Fiscal Year 2015 equaling or exceeding $                    . 

5. Base Bonus:                  Shares, plus an additional number of
Shares equal to 1.00% of                      for each full
$                 increment by which the Base Bonus Target exceeds
$                     but does not equal or exceed
$                    . 
 6. Target Bonus:
                 Shares, plus an additional number of Shares equal to 1.00% of
                     for each full $                 increment by
which the Target Bonus Target exceeds $                     but does not equal or exceed
$                    . 
 7. Stretch Bonus:
                 Shares. 
 This Performance Shares Award Certificate is
issued, dated and effective as of the date set forth below. 
 Date: March 31, 2015 

 

							
	Employee:				PFSweb, Inc.
				
	  
				By:		  

	Signature						Name:
							Title:
	  
						
	Name						

  
 10EX-4.2

 Exhibit 4.2 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO RULE 144 OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
 WARRANT TO PURCHASE STOCK 

 

			
	Corporation:	 	ATYR PHARMA, INC., a Delaware corporation
	Number of Shares:	 	72,000 as adjusted below
	Class of Stock:	 	Series B Preferred Stock
	Initial Exercise Price:	 	$0.8334 per share
	Issue Date:	 	September 18, 2007
	Expiration Date:	 	September 18, 2017 (Subject to Section 4.1)

 THIS WARRANT TO PURCHASE STOCK (“WARRANT”) CERTIFIES THAT, for good and valuable consideration, the
receipt of which is hereby acknowledged, COMERICA BANK, a Michigan banking corporation, or its assignee (“Holder”), is entitled to purchase the number of fully paid and nonassessable shares of the class of securities (the
“Shares”) of ATYR PHARMA, INC. (the “Company”) at the initial exercise price per Share (the “Warrant Price”) all as set forth above and as adjusted pursuant to this Warrant, subject to the provisions and upon the terms
and conditions set forth in this Warrant. At such time as Company requests the initial advance under the Growth Capital Line, as defined in the Loan and Security Agreement between the Holder and the Company dated as of the date hereof, and the
Holder has delivered such funds to the Company (or such account as may be directed by the Company), the Number of Shares issuable hereunder shall increase by an additional 36,000 shares of Series B Preferred Stock. 

ARTICLE 1 
 EXERCISE

 1.1      Method of Exercise.  Holder may exercise this Warrant by delivering this
Warrant and a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Holder shall also deliver to the Company a check or wire for the aggregate Warrant Price for the Shares being
purchased. 
 1.2      Delivery of Certificate and New Warrant.  Within 45 days after Holder
exercises this Warrant and delivers to the Company the aggregate Warrant Price for the Shares being purchased, the Company shall deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully exercised and has not
expired, a new warrant representing the Shares not so acquired. 
 1.3      Replacement of
Warrants. In the case of loss, theft or destruction of this Warrant, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of mutilation, on surrender and cancellation of this
Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor. 

  
 1 

 1.4        Acquisition of the Company. 

1.4.1   “Acquisition.” For the purpose of this Warrant, “Acquisition” means (a) any sale,
license, or other disposition of all or substantially all of the assets (including intellectual property) of the Company, or (b) any reorganization, consolidation, merger or sale of the voting securities of the Company or any other transaction
where the holders of the Company’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction. 

1.4.2   “Cash Acquisition.” For the purpose of this Warrant, “Cash Acquisition” means any
Acquisition in which the consideration paid by the acquirer is comprised solely of cash, promissory notes and/or the assumption of indebtedness. 

1.4.3   Assumption of Warrant.  Upon the closing of any Acquisition (other than a Cash Acquisition), and as a
condition precedent thereto, the successor or surviving entity shall assume the obligations of this Warrant, and this Warrant shall be exercisable for the same securities, cash, and/or property as would be payable for the Shares issuable upon
exercise of the unexercised portion of this Warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price shall be adjusted accordingly, and the Warrant Price and number and class of
Shares shall continue to be subject to adjustment from time to time in accordance with the provisions hereof. 
 ARTICLE 2 

ADJUSTMENTS TO THE SHARES 

2.1        Stock Dividends, Splits, Etc.  If the Company declares or pays a dividend
on the its common stock payable in common stock, or other securities, or subdivides the outstanding common stock into a greater amount of common stock, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost
to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred. 

2.2        Reclassification, Exchange or Substitution.  Upon any reclassification,
exchange, substitution, or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon exercise or conversion of this Warrant, the
number and kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised immediately before such reclassification, exchange, substitution, or other event. Such an event shall include any automatic
conversion of the outstanding or issuable securities of the Company of the same class or series as the Shares to common stock pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation, as amended from time to time
(the “Certificate of Incorporation”) upon the closing of a registered public offering of the Company’s common stock or other circumstance as provided for in the Certificate of Incorporation. The Company or its successor shall promptly
issue to Holder a new warrant for such new securities or other property. The new warrant shall provide for adjustments which shall be as nearly equivalent as may be 

  
 2 

 
practicable to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon
exercise of the new warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other events. 

2.3      Adjustments for Combinations, Etc.  If the outstanding Shares are combined or
consolidated, by reclassification, reverse split or otherwise, into a lesser Number of Shares, the Warrant Price shall be proportionately increased and the Number of Shares issuable upon exercise hereof shall be proportionately decreased. If the
outstanding Shares are split or multiplied, by reclassification or otherwise, into a greater Number of Shares, the Warrant Price shall be proportionately decreased and the Number of Shares issuable upon exercise hereof shall be proportionately
increased. 
 2.4      Adjustments for Diluting Issuances.  The Number of Shares issuable
upon exercise of this Warrant shall be subject to adjustment, from time to time, in the manner set forth on Exhibit A in the event of Diluting Issuances (as defined on Exhibit A). 

2.5      No Impairment.  The Company shall not, by amendment of its Certificate of
Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or
performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out all the provisions of this Article 2 and in taking all such action as may be necessary or appropriate to protect Holder’s rights under
this Article 2 against impairment. Notwithstanding the foregoing, the Company shall not have been deemed to have impaired Holder’s rights hereunder if it amends its Certificate of Incorporation, or the holders of shares of the
Company’s Preferred Stock waive rights thereunder, in a manner that does not affect Holder in a manner different form the effect that such amendments or waivers have on the rights of all holders of the Series B Preferred Stock. 

2.6      Certificate as to Adjustments.  Upon each adjustment of the Warrant Price, the Company
at its expense shall promptly compute such adjustment, and furnish Holder with a certificate signed by its Chief Financial Officer or other authorized officer setting forth such adjustment and the facts upon which such adjustment is based. The
Company shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price. 

2.7      Fractional Shares. No fractional Shares shall be issuable upon exercise of this Warrant and the
Number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise of the Warrant, the Company shall eliminate such fractional share interest by paying Holder an amount computed by
multiplying the fractional interest by the fair market value, as determined by the Company’s Board of Directors, of a full Share. 

  
 3 

 ARTICLE 3 

REPRESENTATIONS AND COVENANTS OF THE COMPANY 

3.1      Representations and Warranties. The Company hereby represents and warrants to, and agrees
with, the Holder as follows: 
 3.1.1   The initial Warrant Price referenced on the first page of this
Warrant is equal to the price paid per share (on a post-split basis) in the Company’s most recent preferred stock financing, rounded up to the fourth decimal point. 

3.1.2   All Shares which may be issued upon the exercise of the purchase right represented by this Warrant, and
all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or
under applicable federal and state securities laws. 
 3.1.3   The Company’s capitalization table
attached to this Warrant as Exhibit C is true and complete as of the Issue Date. 
 3.2      Notice of
Certain Events.  If the Company proposes at any time (a) to declare any dividend or distribution upon its stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer
for subscription pro rata to the holders of any class or series of its stock any additional shares of stock of any class or series or other rights; (c) to effect any reclassification or recapitalization of stock; or (d) to merge or
consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind up, then, in connection with each such event, the Company shall give Holder (1) no
later than the date such notice is provided to the Company’s stockholders prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the holders of
stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; and (2) in the case of the matters referred to in (c) and (d) above no later than the
date such notice is provided to the Company’s stockholders prior written notice of the date when the same will take place (and specifying the date on which the holders of stock will be entitled to exchange their stock for securities or other
property deliverable upon the occurrence of such event). 
 3.3      Information Rights.  So
long as the Holder holds this Warrant and/or any of the Shares, the Company shall deliver to the Holder (a) promptly after mailing, copies of all communiques to the stockholders of the Company, (b) within one hundred fifty (150) days
after the end of each fiscal year of the Company, a copy of the annual audited financial statements of the Company delivered to the Company’s investors and certified by independent public accountants of recognized standing and
(c) within forty-five (45) days after the end of each of the first three quarters of each fiscal year, the Company’s quarterly, unaudited financial statements. The Company’s obligations under this Section shall terminate upon the
Company being subject to the periodic reporting requirements of the Securities Exchange Act of 1934, as amended. 

  
 4 

 3.4        Registration Under Securities Act of 1933,
as amended.  The Company agrees that the Shares or, if the Shares are convertible into common stock of the Company, such common stock, shall be subject to the registration rights set forth on Exhibit B. 

3.5        “Market Stand-Off Agreement. 

3.5.1    Market Standoff Period; Agreement.  The Holder agrees, if so requested by the managing
underwriter in connection with the Company’s initial public offering of equity securities not to effect (except as part of such underwritten registration in accordance with the registration rights provided pursuant to Exhibit B or pursuant
to a transaction exempt from registration (other than under Rule 144 or Rule 145 of the Securities Act) any sale, distribution, short sale, loan, grant of options for the purchase of, or otherwise dispose of, any shares of the capital
stock or other securities of the Company for such period as such managing underwriter requests, such period in no event to commence earlier than seven (7) days prior to, or to end more than 180 days after, the effective date of such
registration. In addition, the Holder agrees to execute and deliver to any managing underwriter (or, in the case of any offering that is not underwritten, an investment banker) in connection with such registration any lock-up letter requested of the
Holder and in form and substance reasonably satisfactory to the managing underwriter. The Holder further agrees that the Company may instruct its transfer agent to place stop transfer notations in its records to enforce the provisions of this
Section 3.5.1. 
 3.5.2    Transferees Bound.  By accepting this warrant, the Holder agrees that
it will not transfer this warrant and/or the Shares unless the transferee(s) of such Holder agrees in writing to be bound by all of the provisions of this Section 3.5. 

ARTICLE 4 

MISCELLANEOUS 

4.1        Term; Exercise Upon Expiration.  This Warrant is exercisable in whole or
in part, at any time and from time to time on or before the earlier of (i) the Expiration Date set forth above and (ii) the consummation of a Cash Acquisition. 

4.2        Legends.  This Warrant and the Shares (and the securities issuable,
directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form: 
 THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER THE
ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO RULE 144 OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 

  
 5 

 4.3      Compliance with Securities Laws on
Transfer.  This Warrant and the Shares issuable upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without
compliance with applicable federal and state securities laws by the transferor and the transferee. 

4.4      Transfer Procedure.  Subject to the provisions of Section 4.3, Holder may
transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable, directly or indirectly, upon conversion of the Shares, if any) by giving the Company notice of the portion of this Warrant being
transferred setting forth the name, address and taxpayer identification number of the transferee and surrendering this Warrant to the Company for reissuance to the transferee(s) (and Holder, if applicable); provided, however, that Holder may
transfer all or part of this Warrant to its affiliates, including, without limitation, Comerica Incorporated, at any time without notice or the delivery of any other instrument to the Company, and such affiliate shall then be entitled to all the
rights of Holder under this Warrant and any related agreements, and, upon receiving notice of such transfer, the Company shall cooperate fully in ensuring that any stock issued upon exercise of this Warrant is issued in the name of the affiliate
that exercises this Warrant. The terms and conditions of this Warrant shall inure to the benefit of, and be binding upon, the Company and the holders hereof and their respective permitted successors and assigns. Unless the Company is filing
financial information with the SEC pursuant to the Securities Exchange Act of 1934, the Company shall have the right to refuse to transfer any portion of this Warrant to any person who directly competes with the Company. 

4.5      Notices.   All notices and other communications from the Company to the Holder,
or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as may have been furnished to the Company or the Holder, as the case may be, in
writing by the Company or such Holder from time to time. All notices to the Holder shall be addressed as follows: 
 Comerica Bank c/o
Comerica Incorporated 
 Attn: Warrant Administrator 

500 Woodward Avenue, 32nd Floor, MC 3379 

Detroit, MI 48226 
 All notices
to the Company shall be addressed as follows: 
 ATYR PHARMA, INC. 

10885 Road to the Cure, Suite 100 

San Diego, CA 92121 
 Attn:
President 
 With a copy (which shall not constitute notice) to: 

Randy Socol 
 DLA Piper US LLP

 4365 Executive Drive, Ste. 1100 

San Diego, CA 92121-2133 

  
 6 

 4.6      Amendments.  This Warrant and any term
hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

4.7      Attorneys’ Fees.  In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 

4.8      Governing Law.  This Warrant shall be governed by and construed in accordance with the
laws of the State of California, without giving effect to its principles regarding conflicts of law. 

4.9      Confidentiality.  The Company hereby agrees to keep the terms and conditions of this
Warrant confidential. Notwithstanding the foregoing confidentiality obligation, the Company may disclose information relating to this Warrant (a) as required by law, rule, regulation, court order or other legal authority, provided that
(i) the Company has given Holder at least ten (10) days’ notice of such required disclosure, and (ii) the Company only discloses information that is required, in the opinion of counsel reasonably satisfactory to Holder, to be
disclosed or (b) as part of a due diligence investigation and Company shall use commercially reasonable efforts in obtaining an agreement from the party receiving such information to be bound by a confidentiality provision. 

IN WITNESS HEREOF, the undersigned parties have caused this Warrant to be executed as of the date first set forth above. 

 

			
	ATYR PHARMA, INC.
		
	By:	 	  /s/ Christina Waters

	Name:	 	 Christina Waters, Ph.D.
	Title:	 	 President and Chief Operating Officer          

  

			
	AGREED AND ACKNOWLEDGED:
	
	COMERICA BANK
		
	By:	 	 /s/ Dennis Kim

	Name:	 	 Dennis Kim

	Title:	 	 Corporate Banking Officer

  
 7 

 APPENDIX 1 

NOTICE OF EXERCISE 

1.        The undersigned hereby elects to purchase
                shares of the                   stock of ATYR PHARMA, INC.
pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full. 

2.        Please issue a certificate or certificates representing said shares in the name of the
undersigned or in such other name as is specified below: 
 Comerica Bank 

Attn: Warrant Administrator 

500 Woodward Avenue, 32nd Floor, MC 3379 

Detroit, MI 48226 

3.        The undersigned represents it is acquiring the shares solely for its own account and not as
a nominee for any other party and not with a view toward the resale or distribution thereof except in compliance with applicable securities laws. 

4.        The undersigned further acknowledges that it has reviewed the “Market Stand-Off”
agreement set forth in Section 3.5 of the Warrant and agrees to be bound by such provisions. 
  

	
	COMERICA BANK or Assignee
	
	  

	(Signature)
	
	  

	(Name and Title)
	
	  

	(Date)

  
 Page 1 

 EXHIBIT A 

Anti-Dilution Provisions 
 (For
Preferred Stock Warrants With Existing Anti-Dilution Protection) 
 In the event of the issuance (a “Diluting Issuance”) by
the Company, after the Issue Date of this Warrant, of securities at a price per share less than the Warrant Price, then the number of shares of common stock issuable upon conversion of the Shares shall be adjusted in accordance with those provisions
(the “Provisions”) of the Company’s Certificate of Incorporation which apply to Diluting Issuances. 

  
 Page 1 

 EXHIBIT B 

Registration Rights 
 The
common stock issuable upon conversion of the Shares, shall be deemed “registrable securities” entitled to “Incidental Registration” rights in accordance with the terms of the following agreement (the “Agreement”)
between the Company and its investor(s): 
 Amended and Restated Registration Rights Agreement made and entered into as of November 20,
2006, as amended from time to time. 
 By acceptance of the Warrant to which this Exhibit B is attached, Holder shall be deemed to be a
party to the Agreement solely for the purpose of the above-mentioned registration rights. 

  
 Page 2 

 EXHIBIT C 

Capitalization Table 

  
 Page 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00243-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00243-of-00352.parquet"}]]