Document:

Exhibit 10.14

 

RUTHIGEN, INC.

 

AMENDED AND RESTATED 2013 EMPLOYEE, DIRECTOR
AND CONSULTANT EQUITY INCENTIVE PLAN

 

		1.	DEFINITIONS.

 

Unless otherwise specified
or unless the context otherwise requires, the following terms, as used in this RUTHIGEN, INC. Amended and Restated 2013 Employee,
Director and Consultant Equity Incentive Plan, have the following meanings:

 

Administrator means the
Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means
the Committee.

 

Affiliate means a corporation
which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

Agreement means an agreement
between the Company and a Participant delivered pursuant to the Plan and pertaining to a Stock Right, in such form as the Administrator
shall approve.

 

Board of Directors means
the Board of Directors of the Company.

 

Cause means, with respect
to a Participant (a) dishonesty with respect to the Company or any Affiliate, (b) insubordination, substantial malfeasance or non-feasance
of duty, (c) unauthorized disclosure of confidential information, (d) breach by a Participant of any provision of any employment,
consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company or any Affiliate,
and (e) conduct substantially prejudicial to the business of the Company or any Affiliate; provided, however, that any provision
in an agreement between a Participant and the Company or an Affiliate, which contains a conflicting definition of Cause for termination
and which is in effect at the time of such termination, shall supersede this definition with respect to that Participant. The determination
of the Administrator as to the existence of Cause will be conclusive on the Participant and the Company.

 

Code means the United States
Internal Revenue Code of 1986, as amended including any successor
statute, regulation and guidance thereto.

 

Committee means the committee
of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the
Plan, which members shall be non-employee directors as defined in Rule 16b-3 of the Exchange Act and outside directors as defined
in Section 162(m) of the Code.

 

Common Stock means shares
of the Company’s common stock, $0.0001 par value per share.

 

Company means Ruthigen,
Inc., a Delaware corporation.

 

Consultant means any natural
person who is an advisor or consultant that provides bona fide services to the Company or its Affiliates, provided that such services
are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly
promote or maintain a market for the Company’s or its Affiliates’ securities.

 

Disability or Disabled
means permanent and total disability as defined in Section 22(e)(3) of the Code.

 

Employee means any employee
of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of
the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the
Plan.

 

Exchange Act means the Securities
Exchange Act of 1934, as amended.

 

    	1

    	 

    

 

Fair Market Value of a Share
of Common Stock means:

 

(1)          If
the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly
reported for the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite tape or other
comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last
market trading day prior to such date; 

 

(2)          If
the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices
are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices
for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of
trading in the over-the-counter market for the trading day on which Common Stock was traded on the applicable date and if such
applicable date is not a trading day, the last market trading day prior to such date; and

 

(3)          If
the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the
Administrator, in good faith, shall determine. 

 

ISO means an option intended
to qualify as an incentive stock option under Section 422 of the Code.

 

Non-Qualified Option means
an option which is not intended to qualify as an ISO.

 

Option means an ISO or Non-Qualified
Option granted under the Plan.

 

Participant means an Employee,
director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan. As
used herein, “Participant” shall include “Participant’s Survivors” where the context requires.

 

Performance Based Award
means a Stock Grant or Stock-Based Award which vests based on the attainment of written Performance Goals as set forth in Paragraph
9 hereof.

 

Performance Goals means
performance goals based on one or more of the following criteria: (i) pre-tax income or after-tax income; (ii) income or earnings
including operating income, earnings before or after taxes, interest, depreciation, amortization, and/or extraordinary or special
items; (iii) net income excluding amortization of intangible assets, depreciation and impairment of goodwill and intangible assets
and/or excluding charges attributable to the adoption of new accounting pronouncements; (iv) earnings or book value per share (basic
or diluted); (v) return on assets (gross or net), return on investment, return on capital, return on invested capital or return
on equity; (vi) return on revenues; (vii) cash flow, free cash flow, cash flow return on investment (discounted or otherwise),
net cash provided by operations, or cash flow in excess of cost of capital; (viii) economic value created; (ix) operating margin
or profit margin; (x) stock price or total shareholder return; (xi) income or earnings from continuing operations; (xii) cost targets,
reductions and savings, expense management, productivity and efficiencies; (xiii) operational objectives, consisting of one or
more objectives based on achieving progress in research and development programs or achieving regulatory milestones related to
development and or approval of products; and (xiv) strategic business criteria, consisting of one or more objectives based on meeting
specified market penetration or market share of one or more products or customers, geographic business expansion, customer satisfaction,
employee satisfaction, human resources management, supervision of litigation, information technology, and goals relating to acquisitions,
divestitures, joint ventures and similar transactions. Where applicable, the Performance Goals may be expressed in terms of a relative
measure against a set of identified peer group companies, attaining a specified level of the particular criterion or the attainment
of a percentage increase or decrease in the particular criterion, and may be applied to one or more of the Company or an Affiliate
of the Company, or a division or strategic business unit of the Company, all as determined by the Committee. The Performance Goals
may include a threshold level of performance below which no Performance-Based Award will be issued or no vesting will occur, levels
of performance at which Performance-Based Awards will be issued or specified vesting will occur, and a maximum level of performance
above which no additional issuances will be made or at which full vesting will occur. Each of the foregoing Performance Goals shall
be evaluated in an objectively determinable manner in accordance with Section 162(m) of the Code and in accordance with generally
accepted accounting principles where applicable, unless otherwise specified by the Committee, and shall be subject to certification
by the Committee. The Committee shall have the authority to make equitable adjustments to the Performance Goals in recognition
of unusual or non-recurring events affecting the Company or any Affiliate or the financial statements of the Company or any Affiliate,
in response to changes in applicable laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary
or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in
accounting principles provided that any such change shall at all times satisfy the provisions of Section 162(m) of the Code.

 

    	2

    	 

    

 

Plan means this Ruthigen,
Inc. Amended and Restated 2013 Employee, Director and Consultant Equity Incentive Plan.

 

RSU or Restricted Stock
Unit means the grant of a contingent entitlement to receive shares of Common Stock based on the attainment of performance or
time based vesting criteria, which for purposes of the Plan shall be a type of Stock-Based Award.

 

Securities Act means the
Securities Act of 1933, as amended.

 

Shares means shares of the
Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the
Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under
the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.

 

Stock Appreciation Right
means the right to receive an amount equal to the excess of the Fair Market Value of a share of Common Stock (as determined on
the date of exercise) over the purchase price of a share of Common Stock on the date a stock appreciation right is granted.

 

Stock-Based Award means
a grant by the Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant, which
the Committee may, in its sole discretion, structure to qualify in whole or in part as “performance-based compensation”
under Section 162(m) of the Code.

 

Stock Grant means a grant
by the Company of Shares under the Plan which the Committee may, in its sole discretion, structure to qualify in whole or in part
as “performance-based compensation” under Section 162(m) of the Code.

 

Stock Right means a right
to Shares or the value of Shares of the Company granted pursuant to the Plan — an ISO, a Non-Qualified Option, a Stock Grant
or a Stock-Based Award.

 

Survivor means a deceased
Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right
by will or by the laws of descent and distribution.

 

		2.	PURPOSES OF THE PLAN.

 

The Plan is intended
to encourage ownership of Shares by Employees and directors of and certain Consultants to the Company and its Affiliates in order
to attract and retain such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional
incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs, Non-Qualified
Options, Stock Grants and Stock-Based Awards.

 

		3.	SHARES SUBJECT TO THE PLAN.

 

(a)          The
number of Shares which may be issued from time to time pursuant to this Plan shall be 6,853,319, or the equivalent of such number
of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination,
recapitalization or similar transaction in accordance with Paragraph 25 of the Plan. ISOs may be issued for up to 100% of the Shares
issuable pursuant to this Plan. 

 

(b)          Notwithstanding
Subparagraph (a) above, on the first day of each calendar year of the Company during the period beginning in calendar year
2016, and ending on the second day of calendar year 2023, the number of Shares that may be issued from time to time pursuant
to the Plan, shall be increased by an amount equal to the lesser of (i) 2,551,500  shares of our Common Stock or the equivalent
of such number of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split,
stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 25 of the Plan; (ii) 5% of
the number of outstanding shares of Common Stock on such date; or (iii) an amount determined by the Board.

 

    	3

    	 

    

 

(c)          If
an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire
(at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock
Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued or reacquired
Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan. Notwithstanding
the foregoing, if a Stock Right is exercised, in whole or in part, by tender of Shares or if the Company or an Affiliate’s
tax withholding obligation is satisfied by withholding Shares, the number of Shares deemed to have been issued under the Plan for
purposes of the limitation set forth in Paragraph 3(a) above shall be the number of Shares that were subject to the Stock Right
or portion thereof, and not the net number of Shares actually issued, and any Stock Appreciation Right to be settled in shares
of Common Stock shall be counted in full against the number of Shares available for issuance under the Plan, regardless of the
number of exercise gain shares issued upon the settlement of the Stock Appreciation Right. However, in the case of ISOs, the foregoing
provisions shall be subject to any limitations under the Code.

 

		4.	ADMINISTRATION OF THE PLAN.

 

The Administrator of
the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee,
in which case the Committee shall be the Administrator. Notwithstanding the foregoing, the Board of Directors may not take any
action that would cause any outstanding Stock Right that would otherwise qualify as performance-based compensation under Section
162(m) of the Code to fail to so qualify. Subject to the provisions of the Plan, the Administrator is authorized to:

 

(a)          Interpret
the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems necessary or advisable
for the administration of the Plan;

 

(b)          Determine
which Employees, directors and Consultants shall be granted Stock Rights;

 

(c)          Determine
the number of Shares for which a Stock Right or Stock Rights shall be granted, provided, however, that in no event shall Stock
Rights with respect to more than 2,000,000 Shares be granted to any Participant in any fiscal year;

 

(d)          Determine
Performance Goals no later than such time as required to ensure that a Performance-Based Award which is intended to comply with
the requirements of Section 162(m) of the Code so complies;

 

(e)          Amend
any term or condition of any outstanding Stock Right, including, without limitation, accelerate the vesting schedule or extend
the expiration date, provided that (i) the exercise or purchase price of any Stock Right may not be reduced without prior stockholder
approval; (ii) such term or condition as amended is permitted by the Plan; (iii) any such amendment shall not impair the rights
of a Participant under any Stock Right previously granted without such Participant’s consent or in the event of death of
the Participant the Participant’s Survivors; and (iv) any such amendment shall be made only after the Administrator determines
whether such amendment would cause any adverse tax consequences to the Participant, including, but not limited to, the annual vesting
limitation contained in Section 422(d) of the Code and described in Paragraph 6(b)(iv) below with respect to ISOs and pursuant
to Section 409A of the Code; and

 

(f)          Make
any adjustments in the Performance Goals included in any Performance-Based Awards provided that such adjustments comply with the
requirements of Section 162(m) of the Code;

 

(g)          Adopt
any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with
or take advantage of any tax or other laws applicable to the Company, any Affiliate or to Participants or to otherwise facilitate
the administration of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or
Shares issuable pursuant to a Stock Right;

 

    	4

    	 

    

 

provided, however, that all such interpretations,
rules, determinations, terms and conditions shall be made and prescribed in the context of not causing any adverse tax consequences
under Section 409A of the Code and preserving the tax status under Section 422 of the Code of those Options which are designated
as ISOs and in accordance with Section 162(m) of the Code for all other Stock Rights to which the Committee has determined Section
162(m) is applicable. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the
Plan or of any Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the Administrator
is the Committee. In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan
that would otherwise be the responsibility of the Committee.

 

To the extent permitted
under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers
to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected
by it. The Board of Directors or the Committee may revoke any such allocation or delegation at any time. Notwithstanding the foregoing,
only the Board of Directors or the Committee shall be authorized to grant a Stock Right to any director of the Company or to any
“officer” of the Company as defined by Rule 16a-1 under the Exchange Act.

 

		5.	ELIGIBILITY FOR PARTICIPATION.

 

The Administrator will,
in its sole discretion, name the Participants in the Plan; provided, however, that each Participant must be an Employee, director
or Consultant of the Company or of an Affiliate at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator
may authorize the grant of a Stock Right to a person not then an Employee, director or Consultant of the Company or of an Affiliate;
provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become
a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right. ISOs may be granted only to
Employees who are deemed to be residents of the United States for tax purposes. Non-Qualified Options, Stock Grants and Stock-Based
Awards may be granted to any Employee, director or Consultant of the Company or an Affiliate. The granting of any Stock Right to
any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock
Rights or any grant under any other benefit plan established by the Company or any Affiliate for Employees, directors or Consultants.

 

		6.	TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall be
set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the
Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions, consistent
with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without
limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto. The Option Agreements
shall be subject to at least the following terms and conditions:

 

(a)          Non-Qualified
Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator
determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified
Option:

 

		(i)	Exercise Price: Each Option Agreement shall state the exercise
price (per share) of the Shares covered by each Option, which exercise price shall be determined by the Administrator and shall
be at least equal to the Fair Market Value per share of Common Stock on the date of grant of the Option.

 

		(ii)	Number of Shares: Each Option Agreement shall state the number
of Shares to which it pertains.

 

		(iii)	Vesting Periods: Each Option Agreement shall state the date
or dates on which it first is exercisable and the date after which it may no longer be exercised, and may provide that the Option
rights accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain performance
conditions or the attainment of stated goals or events. 

 

    	5

    	 

    

 

		(iv)	Additional Conditions: Exercise of any Option may be conditioned
upon the Participant’s execution of a Share purchase agreement in form satisfactory to the Administrator providing for certain
protections for the Company and its other shareholders, including requirements that:

 

		A.	The Participant’s or the Participant’s Survivors’
right to sell or transfer the Shares may be restricted; and

 

		B.	The Participant or the Participant’s Survivors may be required
to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting any applicable restrictions.

 

		(v)	Term of Option: Each Option shall terminate not more than
ten years from the date of the grant or at such earlier time as the Option Agreement may provide.

 

(b)          ISOs:
Each Option intended to be an ISO shall be issued only to an Employee who is deemed to be a resident of the United States for tax
purposes, and shall be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator
determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the Internal
Revenue Service:

 

		(i)	Minimum standards: The ISO shall meet the minimum standards
required of Non-Qualified Options, as described in Paragraph 6(a) above, except clause (i) and (v) thereunder.

 

		(ii)	Exercise Price: Immediately before the ISO is granted, if
the Participant owns, directly or by reason of the applicable attribution rules in Section 424(d) of the Code:

 

		A.	10% or less of the total combined voting power of all classes
of stock of the Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than
100% of the Fair Market Value per share of the Common Stock on the date of grant of the Option; or

 

		B.	More than 10% of the total combined voting power of all classes of
stock of the Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 110%
of the Fair Market Value per share of the Common Stock on the date of grant of the Option.

 

		(iii)	Term of Option: For Participants who own:

 

		A.	10% or less of the total combined voting power of all classes
of stock of the Company or an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such
earlier time as the Option Agreement may provide; or

 

		B.	More than 10% of the total combined voting power of all classes of
stock of the Company or an Affiliate, each ISO shall terminate not more than five years from the date of the grant or at such earlier
time as the Option Agreement may provide.

 

		(iv)	Limitation on Yearly Exercise: The Option Agreements shall
restrict the amount of ISOs which may become exercisable in any calendar year (under this or any other ISO plan of the Company
or an Affiliate) so that the aggregate Fair Market Value (determined on the date each ISO is granted) of the stock with respect
to which ISOs are exercisable for the first time by the Participant in any calendar year does not exceed $100,000.

 

    	6

    	 

    

 

		7.	TERMS AND CONDITIONS OF STOCK GRANTS.

 

Each Stock Grant to
a Participant shall state the principal terms in an Agreement duly executed by the Company and, to the extent required by law or
requested by the Company, by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain
terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the
following minimum standards:

 

(a)          Each
Agreement shall state the purchase price per share, if any, of the Shares covered by each Stock Grant, which purchase price shall
be determined by the Administrator but shall not be less than the minimum consideration required by the Delaware General Corporation
Law, if any, on the date of the grant of the Stock Grant;

 

(b)          Each
Agreement shall state the number of Shares to which the Stock Grant pertains; and

 

(c)          Each
Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant, including
the time period or attainment of Performance Goals or such other performance criteria upon which such rights shall accrue and the
purchase price therefor, if any.

 

		8.	TERMS AND CONDITIONS OF OTHER STOCK-BASED
AWARDS. 

 

The Administrator shall
have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator
may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible
into Shares and the grant of Stock Appreciation Rights, phantom stock awards or stock units. The principal terms of each Stock-Based
Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company,
by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which
the Administrator determines to be appropriate and in the best interest of the Company. Each Agreement shall include the terms
of any right of the Company including the right to terminate the Stock-Based Award without the issuance of Shares, the terms of
any vesting conditions, Performance Goals or events upon which Shares shall be issued. Notwithstanding the foregoing, each Stock
Appreciation Right shall (i) have an exercise price which shall not be less than the Fair Market Value per Share of Common Stock
and (ii) terminate not more than ten years from the date of the grant or at such earlier time as the Agreement therefor may provide.

 

The Company intends
that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code or meet the
requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent applicable, and be operated
in accordance with Section 409A so that any compensation deferred under any Stock-Based Award (and applicable investment earnings)
shall not be included in income under Section 409A of the Code. Any ambiguities in the Plan shall be construed to effect the intent
as described in this Paragraph 8.

 

		9.	PERFORMANCE
                                         BASED AWARDS.

 

Notwithstanding
anything to the contrary herein, during any period when Section 162(m) of the Code
is applicable to the Company and the Plan, Stock Rights granted under Paragraph 7 and Paragraph 8 may be granted by the Committee
in a manner which is deductible by the Company under Section 162(m) of the Code (“Performance-Based Awards”). A Participant’s
Performance-Based Award shall be determined based on the attainment of written Performance Goals, which must be objective and approved
by the Committee for a performance period of between one and five years established by the Committee (i) while the outcome for
that performance period is substantially
uncertain and (ii) no more than 90 days after the commencement of the performance period to which the Performance Goal relates
or, if less, the number of days which is equal to 25% of the relevant performance period.
The Committee shall determine whether, with respect to a performance period, the applicable
Performance Goals have been met with respect to a given Participant and, if they have, to so certify and ascertain the amount of
the applicable Performance-Based Award. No Performance-Based Awards will be issued for such performance period until such certification
is made by the Committee. The number of Shares issued in respect of a Performance-Based Award to a given Participant may be less
than the amount determined by the applicable Performance Goal formula, at the discretion of the Committee. The number of Shares
issued in respect of a Performance-Based Award determined by the Committee for a performance period shall be paid to the Participant
at such time as determined by the Committee in its sole discretion after the end of such performance period. Nothing in this paragraph
shall prohibit the Company from granting Stock-Based Awards subject to performance criteria that do not comply with this paragraph.

 

    	7

    	 

    

 

		10.	EXERCISE OF OPTIONS AND ISSUE OF SHARES.

 

An Option (or any part
or installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable to the
Administrator, which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance
with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set
forth in the Option Agreement. Such notice shall be signed by the person exercising the Option (which signature may be provided
electronically in a form acceptable to the Administrator), shall state the number of Shares with respect to which the Option is
being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of the exercise price
for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check,
or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if
required to avoid negative accounting treatment) having a Fair Market Value equal as of the date of the exercise to the aggregate
cash exercise price for the number of Shares as to which the Option is being exercised, or (c) at the discretion of the Administrator,
by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market
Value equal as of the date of exercise to the aggregate exercise price for the number of Shares as to which the Option is being
exercised, or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with
a securities brokerage firm, and approved by the Administrator, or (e) at the discretion of the Administrator, by any combination
of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, by payment of such other lawful consideration as
the Administrator may determine. Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of
an ISO as is permitted by Section 422 of the Code.

 

The Company shall then
reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s
Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that
the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares.

 

		11.	PAYMENT IN CONNECTION WITH THE ISSUANCE
OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

Any Stock Grant or
Stock-Based Award requiring payment of a purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being
granted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through
delivery of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) and having
a Fair Market Value equal as of the date of payment to the purchase price of the Stock Grant or Stock-Based Award, or (c) at the
discretion of the Administrator, by any combination of (a) and (b) above; or (d) at the discretion of the Administrator, by payment
of such other lawful consideration as the Administrator may determine.

 

The Company shall when
required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or Stock-Based Award
was made to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set
forth in the applicable Agreement. In determining what constitutes “reasonably promptly,” it is expressly understood
that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance.

 

		12.	RIGHTS AS A SHAREHOLDER.

 

No Participant to whom
a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right except
after due exercise of an Option or issuance of Shares as set forth in any Agreement, tender of the aggregate exercise or purchase
price, if any, for the Shares being purchased and registration of the Shares in the Company’s share register in the name
of the Participant.

 

		13.	ASSIGNABILITY AND TRANSFERABILITY OF
STOCK RIGHTS.

 

By its terms, a Stock
Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and
distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement provided that
no Stock Right may be transferred by a Participant for value. Notwithstanding the foregoing, an ISO transferred except in compliance
with clause (i) above shall no longer qualify as an ISO. The designation of a beneficiary of a Stock Right by a Participant, with
the prior approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited
by this Paragraph. Except as provided above during the Participant’s lifetime a Stock Right shall only be exercisable by
or issued to such Participant (or his or her legal representative) and shall not be assigned, pledged or hypothecated in any way
(whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted
transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary
to the provisions of this Plan, or the levy of any attachment or similar process upon a Stock Right, shall be null and void.

 

    	8

    	 

    

 

		14.	EFFECT ON OPTIONS OF TERMINATION OF
SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an Employee, director
or Consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:

 

(a)          A
Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate (for any reason other than termination
for Cause, Disability, or death for which events there are special rules in Paragraphs 15, 16, and 17, respectively), may exercise
any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of service, but only
within such term as the Administrator has designated in a Participant’s Option Agreement.

 

(b)          Except
as provided in Subparagraph (c) below, or Paragraph 16 or 17, in no event may an Option intended to be an ISO, be exercised later
than three months after the Participant’s termination of employment. 

 

(c)          The
provisions of this Paragraph, and not the provisions of Paragraph 16 or 17, shall apply to a Participant who subsequently becomes
Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant’s
Disability or death within three months after the termination of employment, director status or consultancy, the Participant or
the Participant’s Survivors may exercise the Option within one year after the date of the Participant’s termination
of service, but in no event after the date of expiration of the term of the Option.

 

(d)          Notwithstanding
anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination of director status
or termination of consultancy, but prior to the exercise of an Option, the Administrator determines that, either prior or subsequent
to the Participant’s termination, the Participant engaged in conduct which would constitute Cause, then such Participant
shall forthwith cease to have any right to exercise any Option.

 

(e)          A
Participant to whom an Option has been granted under the Plan who is absent from the Company or an Affiliate because of temporary
disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose,
shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s
employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly
provide; provided, however, that, for ISOs, any leave of absence granted by the Administrator of greater than ninety days, unless
pursuant to a contract or statute that guarantees the right to reemployment, shall cause such ISO to become a Non-Qualified Option
on the 181st day following such leave of absence.

 

(f)          Except
as required by law or as set forth in a Participant’s Option Agreement, Options granted under the Plan shall not be affected
by any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues
to be an Employee, director or Consultant of the Company or any Affiliate.

 

		15.	EFFECT ON OPTIONS OF TERMINATION OF
SERVICE FOR CAUSE.

 

Except as otherwise
provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as an
Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause prior to the time that all his or her
outstanding Options have been exercised:

 

(a)          All
outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated for Cause will
immediately be forfeited.

 

(b)          Cause
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the
Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s
termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant’s termination
the Participant engaged in conduct which would constitute Cause, then the right to exercise any Option is forfeited.

 

    	9

    	 

    

 

		16.	EFFECT ON OPTIONS OF TERMINATION OF
SERVICE FOR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

(a)          A
Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability may
exercise any Option granted to such Participant:

 

		(i)	To the extent that the Option has become exercisable but has not
been exercised on the date of the Participant’s termination of service due to Disability; and

 

		(ii)	In the event rights to exercise the Option accrue periodically, to
the extent of a pro rata portion through the date of the Participant’s termination of service due to Disability of any additional
vesting rights that would have accrued on the next vesting date had the Participant not become Disabled. The proration shall be
based upon the number of days accrued in the current vesting period prior to the date of the Participant’s termination of
service due to Disability.

 

(b)          A
Disabled Participant may exercise the Option only within the period ending one year after the date of the Participant’s termination
of service due to Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all
of the Shares on a later date if the Participant had not been terminated due to Disability and had continued to be an Employee,
director or Consultant or, if earlier, within the originally prescribed term of the Option. 

 

(c)          The
Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure
for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure
shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the
Administrator, the cost of which examination shall be paid for by the Company.

 

		17.	EFFECT ON OPTIONS OF DEATH WHILE AN
EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

(a)          In
the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate,
such Option may be exercised by the Participant’s Survivors:

 

		(i)	To the extent that the Option has become exercisable but has not
been exercised on the date of death; and

 

		(ii)	In the event rights to exercise the Option accrue periodically, to
the extent of a pro rata portion through the date of death of any additional vesting rights that would have accrued on the next
vesting date had the Participant not died. The proration shall be based upon the number of days accrued in the current vesting
period prior to the Participant’s date of death.

 

(b)          If
the Participant’s Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within
one year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option
as to some or all of the Shares on a later date if he or she had not died and had continued to be an Employee, director or Consultant
or, if earlier, within the originally prescribed term of the Option. 

 

		18.	EFFECT OF TERMINATION OF SERVICE ON
STOCK GRANTS AND STOCK-BASED AWARDS.

 

In the event of a termination
of service (whether as an Employee, director or Consultant) with the Company or an Affiliate for any reason before the Participant
has accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such grant shall terminate.

 

For purposes of this
Paragraph 18 and Paragraph 19 below, a Participant to whom a Stock Grant or a Stock-Based Award has been issued under the Plan
who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other than a Disability
as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence,
be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy
with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.

 

    	10

    	 

    

 

In addition, for purposes
of this Paragraph 18 and Paragraph 19 below, any change of employment or other service within or among the Company and any Affiliates
shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be
an Employee, director or Consultant of the Company or any Affiliate.

 

		19.	EFFECT ON STOCK GRANTS and stock-based
awards OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE, DEATH OR DISABILITY.

 

Except as otherwise
provided in a Participant’s Agreement, in the event of a termination of service for any reason (whether as an Employee, director
or Consultant), other than termination for Cause, Disability, or death for which events there are special rules in Paragraphs 20,
21, and 22, respectively, before all forfeiture provisions or Company rights of repurchase shall have lapsed, then the Company
shall have the right to cancel or repurchase that number of Shares subject to a Stock Grant or Stock-Based Award as to which the
Company’s forfeiture or repurchase rights have not lapsed.

 

		20.	EFFECT ON STOCK GRANTS and stock-based
awards OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise
provided in a Participant’s Agreement, the following rules apply if the Participant’s service (whether as an Employee,
director or Consultant) with the Company or an Affiliate is terminated for Cause:

 

(a)          All
Shares subject to any Stock Grant whether or not then subject to forfeiture or repurchase shall be immediately subject to repurchase
by the Company at par value and all Stock-Based Awards shall be forfeited to the Company as of the time the Participant is notified
his or her service is terminated for Cause. 

 

(b)          Cause
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the
Administrator’s finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s
termination of service, that either prior or subsequent to the Participant’s termination the Participant engaged in conduct
which would constitute Cause, then all Shares subject to any Stock Grant or Stock-Based Award that remained subject to forfeiture
provisions or as to which the Company had a repurchase right on the date of termination shall be immediately forfeited to the Company.

 

		21.	EFFECT ON STOCK GRANTS and stock-based
awards OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise
provided in a Participant’s Agreement, the following rules apply if a Participant ceases to be an Employee, director or Consultant
of the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s rights
of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event such forfeiture
provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion
of the Shares subject to such Stock Grant or Stock-Based Award through the date of Disability as would have lapsed had the Participant
not become Disabled. The proration shall be based upon the number of days accrued prior to the date of Disability.

 

The Administrator shall
make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for such determination
is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such
determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost
of which examination shall be paid for by the Company.

 

		22.	EFFECT ON STOCK GRANTS and stock-based
awards OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Agreement, the following rules apply in the event of the death of a Participant while the Participant
is an Employee, director or Consultant of the Company or of an Affiliate: to the extent the forfeiture provisions or the Company’s
rights of repurchase have not lapsed on the date of death, they shall be exercisable; provided, however, that in the event such
forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro
rata portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of death as would have lapsed had
the Participant not died. The proration shall be based upon the number of days accrued prior to the Participant’s date of
death.

 

    	11

    	 

    

 

		23.	PURCHASE FOR INVESTMENT.

 

Unless the offering
and sale of the Shares shall have been effectively registered under the Securities Act, the Company shall be under no obligation
to issue Shares under the Plan unless and until the following conditions have been fulfilled:

 

(a)          The
person who receives a Stock Right shall warrant to the Company, prior to the receipt of Shares, that such person is acquiring such
Shares for his or her own account, for investment, and not with a view to, or for sale in connection with, the distribution of
any such Shares, in which event the person acquiring such Shares shall be bound by the provisions of the following legend (or a
legend in substantially similar form) which shall be endorsed upon the certificate evidencing the Shares issued pursuant to such
exercise or such grant:

 

“The shares represented
by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a
pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act
of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration
under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.”

 

(b)At
the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued in
compliance with the Securities Act without registration thereunder.

 

		24.	DISSOLUTION OR LIQUIDATION OF THE COMPANY.

 

Upon the dissolution
or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all
Stock Grants and Stock-Based Awards which have not been accepted, to the extent required under the applicable Agreement, will terminate
and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have not otherwise
terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior to such dissolution
or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance
as of the date immediately prior to such dissolution or liquidation. Upon the dissolution or liquidation of the Company, any outstanding
Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the
applicable Agreement.

 

		25.	ADJUSTMENTS.

 

Upon the occurrence
of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall
be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement:

 

(a)          Stock
Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller
number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock,
or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed
with respect to such shares of Common Stock, each Stock Right and the number of shares of Common Stock deliverable thereunder shall
be appropriately increased or decreased proportionately, and appropriate adjustments shall be made including, in the exercise or
purchase price per share, to reflect such events. The number of Shares subject to the limitations in Paragraph 3(a), 3(b) and 4(c)
shall also be proportionately adjusted upon the occurrence of such events and the Performance Goals applicable to outstanding Performance-Based
Awards.

 

    	12

    	 

    

 

(b)          Corporate
Transactions. If the Company is to be consolidated with or acquired by another entity in a merger, consolidation, or sale of
all or substantially all of the Company’s assets other than a transaction to merely change the state of incorporation (a
“Corporate Transaction”), the Administrator or the board of directors of any entity assuming the obligations of the
Company hereunder (the “Successor Board”), shall, as to outstanding Options, either (i) make appropriate provision
for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the
consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities
of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that such Options must be exercised
(either (A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such Options being made partially
or fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end
of which period such Options which have not been exercised shall terminate; or (iii) terminate such Options in exchange for payment
of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares
of Common Stock into which such Option would have been exercisable (either (A) to the extent then exercisable or, (B) at the discretion
of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph) less the
aggregate exercise price thereof. For purposes of determining the payments to be made pursuant to Subclause (iii) above, in
the case of a Corporate Transaction the consideration for which, in whole or in part, is other than cash, the consideration other
than cash shall be valued at the fair value thereof as determined in good faith by the Board of Directors.

 

With respect to outstanding
Stock Grants, the Administrator or the Successor Board, shall make appropriate provision for the continuation of such Stock Grants
on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either
the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate Transaction or
securities of any successor or acquiring entity. In lieu of the foregoing, in connection with any Corporate Transaction, the Administrator
may provide that, upon consummation of the Corporate Transaction, each outstanding Stock Grant shall be terminated in exchange
for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the
number of shares of Common Stock comprising such Stock Grant (to the extent such Stock Grant is no longer subject to any forfeiture
or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights being waived
upon such Corporate Transaction).

 

In taking any of the
actions permitted under this Paragraph 25(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights, all
Stock Rights held by a Participant, or all Stock Rights of the same type, identically.

 

(c)          Recapitalization
or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant
to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock,
a Participant upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be entitled
to receive for the price paid upon such exercise or acceptance if any, the number of replacement securities which would have been
received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.

 

(d)          Adjustments
to Stock-Based Awards. Upon the happening of any of the events described in Subparagraphs (a), (b) or (c) above, any outstanding
Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs. The Administrator or the
Successor Board shall determine the specific adjustments to be made under this Paragraph 25, including, but not limited to the
effect of any, Corporate Transaction and, subject to Paragraph 4, its determination shall be conclusive.

 

(e)          Modification
of Options. Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph (a), (b) or (c) above with respect
to Options shall be made only after the Administrator determines whether such adjustments would (i) constitute a “modification”
of any ISOs (as that term is defined in Section 424(h) of the Code) or (ii) cause any adverse tax consequences for the holders
of Options, including, but not limited to, pursuant to Section 409A of the Code. If the Administrator determines that such adjustments
made with respect to Options would constitute a modification or other adverse tax consequence, it may refrain from making such
adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing indicates
that the holder has full knowledge of the consequences of such “modification” on his or her income tax treatment with
respect to the Option. This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion
of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).

 

(f)          Modification
of Performance-Based Awards. Notwithstanding the foregoing, with respect to any Performance-Based Award that is intended to
comply as “performance based compensation” under Section 162(m) of the Code, the Committee may adjust downwards, but
not upwards, the number of Shares payable pursuant to a Performance-Based Award, and the Committee may not waive the achievement
of the applicable Performance Goals except in the case of death or disability of the Participant.

 

    	13

    	 

    

 

		26.	ISSUANCES OF SECURITIES.

 

Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject
to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including
without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.

 

		27.	FRACTIONAL SHARES.

 

No fractional shares
shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional
shares equal to the Fair Market Value thereof.

 

		28.	CONVERSION OF ISOs
INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

 

The Administrator,
at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such Participant’s
ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior
to the expiration of such ISOs, regardless of whether the Participant is an Employee of the Company or an Affiliate at the time
of such conversion. At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions
on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such
conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any Participant the right to have
such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator
takes appropriate action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that
has not been exercised at the time of such conversion.

 

		29.	WITHHOLDING.

 

In the event that any
federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings
or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary,
wages or other remuneration in connection with the issuance of a Stock Right or Shares under the Plan or for any other reason required
by law, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance
in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount
of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock
or a promissory note, is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of
the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair
Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the Fair Market
Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance
the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise
of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding.

 

		30.	NOTICE TO COMPANY OF DISQUALIFYING
DISPOSITION.

 

Each Employee who receives
an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any Shares
acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code and includes
any disposition (including any sale or gift) of such Shares before the later of (a) two years after the date the Employee was granted
the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section
424(c) of the Code. If the Employee has died before such Shares are sold, these holding period requirements do not apply and no
Disqualifying Disposition can occur thereafter.

 

		31.	TERMINATION OF THE PLAN.

 

The Plan will terminate
on the date which is ten years from the earlier of the date of its adoption by the Board of Directors and the date of its
approval by the shareholders of the Company. The Plan may be terminated at an earlier date by vote of the shareholders or the Board
of Directors of the Company; provided, however, that any such earlier termination shall not affect any Agreements executed prior
to the effective date of such termination. Termination of the Plan shall not affect any Stock Rights theretofore granted.

 

    	14

    	 

    

 

		32.	AMENDMENT OF THE PLAN AND AGREEMENTS.

 

The Plan may be amended
by the shareholders of the Company. The Plan may also be amended by the Administrator, including, without limitation, to the extent
necessary to qualify any or all outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for
favorable federal income tax treatment as may be afforded incentive stock options under Section 422 of the Code (including deferral
of taxation upon exercise), and to the extent necessary to qualify the Shares issuable under the Plan for listing on any national
securities exchange or quotation in any national automated quotation system of securities dealers and in order to continue to comply
with Section 162(m) of the Code; provided that any amendment approved by the Administrator which the Administrator determines is
of a scope that requires shareholder approval shall be subject to obtaining such shareholder approval. Other than as set forth
in Paragraph 25 of the Plan, the Administrator may not without shareholder approval reduce the exercise price of an Option or cancel
any outstanding Option in exchange for a replacement option having a lower exercise price, any Stock Grant, any other Stock-Based
Award or for cash. In addition, the Administrator not take any other action that is considered a direct or indirect “repricing”
for purposes of the shareholder approval rules of the applicable securities exchange or inter-dealer quotation system on which
the Shares are listed, including any other action that is treated as a repricing under generally accepted accounting principles.
Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under
a Stock Right previously granted to him or her. With the consent of the Participant affected, the Administrator may amend outstanding
Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In the discretion of
the Administrator, outstanding Agreements may be amended by the Administrator in a manner which is not adverse to the Participant.
Nothing in this Paragraph 32 shall limit the Administrator’s authority to take any action permitted pursuant to Paragraph
25.

 

		33.	EMPLOYMENT OR OTHER RELATIONSHIP.

 

Nothing in this Plan
or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director
status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status
or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period
of time.

 

		34.	SECTION 409A.

 

If a Participant is
a “specified employee” as defined in Section 409A of the Code (and as applied according to procedures of the Company
and its Affiliates) as of his separation from service, to the extent any payment under this Plan or pursuant to the grant of a
Stock-Based Award constitutes deferred compensation (after taking into account any applicable exemptions from Section 409A of the
Code), and to the extent required by Section 409A of the Code, no payments due under this Plan or pursuant to a Stock-Based Award
may be made until the earlier of: (i) the first day of the seventh month following the Participant’s separation from service,
or (ii) the Participant’s date of death; provided, however, that any payments delayed during this six-month period shall
be paid in the aggregate in a lump sum, without interest, on the first day of the seventh month following the Participant’s
separation from service.

 

The Administrator shall
administer the Plan with a view toward ensuring that Stock Rights under the Plan that are subject to Section 409A of the Code comply
with the requirements thereof and that Options under the Plan be exempt from the requirements of Section 409A of the Code, but
neither the Administrator nor any member of the Board, nor the Company nor any of its Affiliates, nor any other person acting hereunder
on behalf of the Company, the Administrator or the Board shall be liable to a Participant or any Survivor by reason of the acceleration
of any income, or the imposition of any additional tax or penalty, with respect to a Stock Right, whether by reason of a failure
to satisfy the requirements of Section 409A of the Code or otherwise.

 

		35.	CLAWBACK.

 

Notwithstanding
anything to the contrary contained in this Plan, the Company may recover from a Participant any compensation received from any
Stock Right (whether or not settled) or cause a Participant to forfeit any Stock Right (whether or not vested) in the event that
the Company’s Clawback Policy then in effect is triggered.

 

		36.	GOVERNING LAW.

 

This Plan shall be
construed and enforced in accordance with the law of the State of Delaware.

 

    	15Exhibit 4.12

 

 

 

	
DATED

	
5 FEBRUARY 2015

 

	
(1)  

	
BIOMARIN FALCONS B.V.

 

 

	
(2)  

	
PROSENSA HOLDING N.V.

 

 

 

 

ASSET PURCHASE AGREEMENT

in relation to the all assets and liabilities of

PROSENSA HOLDING N.V.

 

 

 

 

  

  

  

TABLE OF CONTENTS

Page

 

	
1.

	
INTERPRETATION

	
2

	
2.

	
SALE AND PURCHASE

	
2

	
3.

	
PURCHASE PRICE

	
3

	
4.

	
CLOSING

	
3

	
5.

	
TAX

	
4

	
6.

	
SUBSIDIARY SHARES

	
4

	
7.

	
CONTRACTS

	
4

	
8.

	
PROSENSA INTELLECTUAL PROPERTY RIGHTS AND PROSENSA KNOW-HOW

	
5

	
9.

	
EMPLOYEES

	
6

	
10.

	
LOANS AND GUARANTEES

	
6

	
11.

	
WRONG BOX ASSETS AND AMOUNTS RECEIVED IN ERROR

	
7

	
12.

	
BUYER'S INDEMNITY

	
7

	
14.

	
COVENANTS

	
8

	
15.

	
LIQUIDATION

	
9

	
16.

	
VALUE ADDED TAX

	
10

	
17.

	
MISCELLANEOUS

	
11

	 	
SCHEDULE 1

	
SUBSIDIARIES

	
15

	 	
Part 1

	
The Subsidiary Shares

	
15

	 	
Part 2

	
List of Subsidiaries

	
15

	 	
SCHEDULE 2

	
PROSENSA INTELLECTUAL PROPERTY RIGHTS AND PROSENSA KNOW-HOW CERTIFICATE OF TRANSFER

	
16

	 	
SCHEDULE 3

	
INTERPRETATION

	
18

	 	
SCHEDULE 4

	
CLOSING

	
23

	 	
SCHEDULE 5

	
DEEDS OF TRANSFER

	
24

	 	
SCHEDULE 6

	
TAX MATTERS

	
25

	 	
SCHEDULE 7

	
CONTRACTS

	
27

 

 

  

  

  

 

 

THIS AGREEMENT (this "Agreement") is made on 5 February 2015

 

BETWEEN

 

	
(1)  

	
BIOMARIN FALCONS B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of the Netherlands with its corporate seat in Amsterdam and its offices at Barbara Strozzilaan 201, 1083 HN Amsterdam, the Netherlands, registered under number 61921599 (the "Buyer"); and

 

	
(2)  

	
PROSENSA HOLDING N.V., a public company with limited liability (naamloze vennootschap) incorporated under the laws of the Netherlands with its corporate seat in Leiden and its offices at J.H. Oortweg 21, 2333 CH Leiden, the Netherlands, registered under number  28076693(the "Seller").

 

The parties to this Agreement are hereinafter collectively referred to as the "Parties" and individually also as a "Party".

 

INTRODUCTION

 

	
(A)  

	
The Seller, the Buyer and BioMarin Pharmaceutical Inc. have entered into a purchase agreement dated 23 November 2014 (the "Purchase Agreement"). Pursuant to the Purchase Agreement, the Buyer, together with BioMarin Giants B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) organized and existing under the laws of the Netherlands, having its corporate seat in Amsterdam, the Netherlands, with office address at Barbara Strozzilaan 201, 1083 HN Amsterdam, the Netherlands, registered under number 62046241, has made a tender offer for all the outstanding ordinary shares with a nominal value of EUR 0.01 each of the Seller (the "Shares"), in exchange for (i) USD 17.75 per Share, in cash, without interest (the "Cash Consideration") and (ii) one contingent value right (a "CVR") which shall represent the right to receive the Milestone Payments (as defined in the Contingent Value Rights Agreement entered into between Parent, Buyer and a rights agent selected by Parent with the Seller’s prior approval), if any, at the times provided for in the Contingent Value Rights Agreement, per Share, without interest (the Cash Consideration together with one CVR, the "Offer Consideration", such tender offer, the "Offer").

 

	
(B)  

	
Simultaneously with the entering into by the Seller of the Purchase Agreement, the management board of the Seller (the "Management Board") and the supervisory board of the Seller (the "Supervisory Board" and, together with the Management Board, the "Boards") have resolved to approve the sale and transfer of the Assets and Liabilities to the Buyer and the entry into this Agreement on the Buyer's request.

 

	
(C)  

	
At an extraordinary general meeting of shareholders held on 13 January 2015, the shareholders of the Seller have approved, among other things, the sale and transfer of the Assets and Liabilities of the Seller to the Buyer and the dissolution (ontbinding) and subsequent liquidation (vereffening) of the Seller in accordance with article 2:19 of the DCC.

 

	
(D)  

	
Following the closing of the Offer and the Subsequent Offer Period, the Parties after due and careful consideration have decided to pursue the Asset Sale.

 

	
(E)  

	
The Seller wishes to sell and transfer an d the Buyer wishes to purchase and accept the Assets and Liabilities on the terms and subject to the conditions set out in this Agreement (the "Transaction").

 

	
(F)  

	
The Parties wish to set forth in this Agreement their respective rights and obligations in respect of the Transaction.

 

 

  

  

  

 

	
(G)  

	
The Seller has complied with its obligations under the Dutch Works Council Act (Wet op de Ondernemingsraden) and SER Merger Code (SER Fusiegedragsregels) and any similar laws or regulations of any jurisdiction other than the Netherlands (to the extent applicable).

 

IT IS AGREED AS FOLLOWS:

 

	
1.  

	
INTERPRETATION

 

	
1.1  

	
In addition to terms defined elsewhere in this Agreement, the definitions and other provisions in Schedule 3 (Interpretation) apply throughout this Agreement. Capitalized words and expressions used in this Agreement but not otherwise defined herein shall have the meaning ascribed to such words and expressions in the Purchase Agreement.

 

	
1.2  

	
This Agreement shall include the recitals and Schedules to this Agreement, each of which constitutes an integral part of this Agreement.

 

	
1.3  

	
References in this Agreement to:

 

	 	
(A)  

	
Clauses, subclauses and Schedules are to the clauses and subclauses of, and schedules to, this Agreement and include the matters referred to in such clauses, subclauses and schedules;

 

	 	
(B)  

	
statutes, acts and the like of whatever jurisdiction shall include any amendment, modification, re-enactment or extension thereof and any orders, regulations, instruments or other subordinate legislation made there under in force from time to time, except as otherwise specified;

 

	 	
(C)  

	
the masculine gender shall include the feminine gender and neuter and vice versa;

 

	 	
(D)  

	
the singular shall include the plural and vice versa; and

 

	 	
(E)  

	
persons shall include individuals and corporate entities, firms, unincorporated or incorporated associations, co-operatives, foundations, partnerships and other legal entities.

 

	
1.4  

	
The headings in this Agreement are inserted for convenience only and shall not affect the construction of this Agreement.

 

	
1.5  

	
Whenever the words "include", "includes", or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation".

 

	
2.  

	
SALE AND PURCHASE

 

	
2.1  

	
By and subject to the terms of this Agreement, the Seller hereby sells and agrees to transfer or assign (as the case may be) to the Buyer or its designated Affiliates, at Closing, and the Buyer (also on behalf of its designated Affiliates) hereby purchases and agrees to accept or assume (as the case may be) at Closing, the Assets and Liabilities.

 

	
2.2  

	
To the extent not explicitly transferred or assigned and accepted or assumed otherwise in accordance with this Agreement, any transfer or assignment (as the case may be) by the Seller to the Buyer or its designated Affiliates and the acceptance or assumption (as the case may be) by the Buyer or its designated Affiliates of any and all assets and liabilities to be transferred or assigned (as the case may be) by the Seller and accepted or assumed (as the case may be) by the Buyer or its designated Affiliates in accordance with this Agreement will take place without any further action being required at, and have effect  as per, Closing.

 

  

  

  

 

	
2.3  

	
Subject to and at Closing, the economic benefit and risk of the Assets and Liabilities will pass to the Buyer, without any carve-outs or exceptions (other than expressly provided for in this Agreement).

 

	
3.  

	
PURCHASE PRICE

 

	
3.1  

	
The aggregate consideration for the Assets and Liabilities (the "Purchase Price") shall be:

 

	 	
(A)  

	
a note payable (the "Note Payable") from Buyer or one or more of its designees in an aggregate principal amount equal to the Cash Consideration multiplied by the total number of outstanding Shares as of the Closing which Note Payable shall be pre-payable without penalty or premium but shall require Buyer to pay to the Seller an amount of the Note Payable equal to the sum of the Cash Consideration multiplied by the number of outstanding Shares not tendered in the Offer or the Subsequent Offering Period plus the Cash Consideration multiplied by the number of outstanding Shares accepted by BioMarin Giants in the Offer (the "Aggregate Cash Amount") to be paid or satisfied (as the case may be):

 

	 	
(1)  

	
in respect of the portion of the Aggregate Cash Amount that is equal to the amount of available unrestricted cash of the Seller as set forth on the Seller's balance sheet as of immediately prior to Closing (the "Seller Net Cash Amount"), if any, by way of set-off against the Seller's obligation to deliver the Seller Net Cash Amount to the Buyer at Closing as part of the Business; and

 

	 	
(2)  

	
in respect of the remainder of the Aggregate Cash Amount, if any, in cash.

 

If and to the extent the Seller Net Cash Amount exceeds the Aggregate Cash Amount (the "Seller Excess Cash"), the Seller shall transfer the Seller Excess Cash to the Buyer or its designee as part of the transfer of the Assets and Liabilities pursuant to this Agreement; and

 

	 	
(B)  

	
a note (the "Convertible Note") from Buyer convertible into an aggregate amount of CVRs equal to the total number of outstanding Shares as of the Closing (which Convertible Note shall be prepayable without penalty or premium but shall require Buyer to distribute to the Seller (or to such persons as designated by the Seller) a number of CVRs equal to the number of Shares not tendered in the Offer or the Subsequent Offering Period (such CVRs: the "Aggregate Minority CVRs").

 

	
3.2  

	
Any liabilities that are part of the Assets and Liabilities and that cannot be transferred will remain with the Seller, and the Buyer will indemnify and hold harmless the Seller in respect of those liabilities in accordance with Clause 12.1.

 

	
3.3  

	
The Buyer shall procure that the Purchase Price shall be sufficient to pay to the holders of the Shares not tendered in the Offer or the Subsequent Offering Period, for each issued and outstanding Share held by each such Shareholder (each a "Remaining Shareholder"), an amount of cash and CVRs that is equal to the Offer Consideration, without interest and less any applicable Dutch dividend withholding tax (dividendbelasting) or other Taxes, if any.

 

	
4.  

	
CLOSING

 

	
4.1  

	
Closing shall take place at the offices of the Buyer's Lawyers. Subject to Clause ‎4.2, Closing shall take place on February 11, 2015 or as soon as practicable thereafter or at such other time and on such other date as the Seller and the Buyer may agree.

 

  

  

  

 

	
4.2  

	
At Closing each Party shall do, or procure to be done, those things respectively listed in relation to it or its Group in Schedule 4 (Closing). The Parties shall use their best efforts to procure that each of the steps set out in Schedule 4 (Closing) occurs on the same Business Day. In the event that not all of the steps set out in Schedule 4 (Closing) can be completed on the same Business Day, Parties may agree that Closing shall be completed as far as practicable and any remaining steps shall occur as soon as possible thereafter provided that Closing shall be deemed to have occurred for all purposes of this Agreement on the date the Purchase Price has been paid.

 

	
4.3  

	
Subject to Clause 4.2, none of the Parties shall be obliged to complete the sale and purchase of the Assets and Liabilities unless all things set out in Schedule 4 (Closing) have been done on or prior to Closing. This subclause shall not, however, prejudice any rights or remedies available to any Party in respect of any default on the part of the other Party.

 

	
4.4  

	
The Notary is a civil law notary with Buyer’s Lawyers. The Seller acknowledges that it is aware of the provisions of the Ordinance Containing Rules of Professional Conduct and Ethics (Verordening beroeps- en gedragsregels) of the Royal Professional Organization of Civil Law Notaries (Koninklijke Notariële Beroepsorganisatie). The Seller acknowledges and agrees that Buyer’s Lawyers may advise and act on behalf of the Buyer and its Group with respect to the Deeds of Transfer, this Agreement and to any agreements and/or any disputes related to or resulting from this Agreement.

 

	
5.  

	
TAX

 

Subject to Closing occurring, the provisions of Schedule 6 (Tax Matters) will apply.

 

	
6.  

	
SUBSIDIARY SHARES

 

At Closing, the Seller shall transfer (leveren) and the Buyer shall accept the Subsidiary Shares, which transfer shall be effected by execution of a deed of transfer or deeds of transfer or other similar instruments required under Applicable Laws, substantially in the form attached hereto in Schedule 5 (Deeds of Transfer).

 

	
7.  

	
CONTRACTS

 

	
7.1  

	
Subject to the provisions of this Clause ‎7, the Seller hereby assigns with effect as of Closing  to the Buyer (or its designated Affiliates, which in case of any operational Contracts as set out in Schedule 7 will be Prosensa Therapeutics B.V. and all such Contracts will be assigned to Prosensa Therapeutics B.V. with effect as of Closing), and the Buyer (also on behalf of its designated Affiliates) hereby accepts or assumes (as the case may be) with effect as of Closing, all of the present and future rights, benefits and obligations of the Seller under the Contracts by way of transfer of contract (contractsoverneming) in accordance with article 6:159 of the DCC or the equivalent thereof under the relevant law governing such Contract. Unless explicitly agreed otherwise in respect of any Contracts in this Agreement, the absence of any third party consent required for such assignment shall not hold up Closing.

 

	
7.2  

	
The Parties have obtained or will use best efforts to obtain prior to the Closing the consent of the relevant insurers under the director and officer (D&O) Insurance Policies taken on by the Seller in respect of the assignment of the director and officer (D&O) Insurance Policies to Buyer. Notwithstanding Clause ‎7.1, the assignment of the director and officer (D&O) Insurance Policies will occur at the date as agreed between the Parties.

 

	
7.3  

	
The Parties will inform the counterparties to the Contracts (the "Counterparties" or a "Counterparty") of the Transaction as soon as practicable after Closing.

 

  

  

  

 

	
7.4

	
If and to the extent a Counterparty has notified the Seller of its objections against the transfer of its rights and obligations under the relevant Contract:

 

	 	
(A)

	
to the extent permitted under the relevant Contract, the Seller shall assign the rights under the relevant Contract to the Buyer or the designated Affiliate in consideration of the Buyer or the designated Affiliate acting as the Seller's subcontractor, and performing all the obligations of the Seller under the Contract to be discharged after Closing;

 

	 	
(B)  

	
until the obligations under the Contract may be transferred, the Seller shall (so far as it lawfully may):

 

	 	
(1)  

	
give all reasonable assistance to the Buyer or the designated Affiliate (at the Buyer's request and expense) to enable the Buyer or the designated Affiliate to enforce its rights under the Contract;

 

	 	
(2)  

	
at the Buyer's request, use its best efforts with the cooperation of the Buyer and the designated Affiliate to obtain the consent of the Counterparty to transfer the obligations under the relevant Contract; and

 

	 	
(3)  

	
promptly transfer to the Buyer or the designated Affiliate any amounts received under the relevant Contract; and

 

	 	
(C)  

	
to the extent it is not permitted under the relevant Contract for the Buyer or the designated Affiliate to act as the Seller's subcontractor, the Seller shall be entitled to terminate the relevant Contract, provided that in each case the Buyer shall indemnify the Seller Indemnified Parties against any and all liabilities, costs, claims and damages made after Closing arising from or in connection with such Contracts in accordance with Clause 12.1.

 

	
7.5  

	
The Seller shall promptly refer to the Buyer all inquiries relating to the Business and assign to the Buyer all orders relating to the Business which the Seller may receive after Closing.

 

	
7.6  

	
The obligations of the Seller under this Clause ‎7 shall in any event end upon the end of the Liquidation, if any.

 

	
8.  

	
PROSENSA INTELLECTUAL PROPERTY RIGHTS AND PROSENSA KNOW-HOW

 

	
8.1  

	
It is acknowledged by the Parties that the legal and beneficial interests in any Intellectual Property Rights held by the Seller has previously been assigned to and are held by Prosensa Technologies B.V. and Prosensa Therapeutics B.V., respectively. To the extent that the Seller as at Closing would hold legal title to any Intellectual Property Rights and Know How, such legal title will be assigned to Prosensa Technologies B.V. as per, and with effect as of, Closing. At Closing, the Seller shall sign the certificate of transfer in the Agreed Form, as set forth in Schedule 2 (Certificate of Transfer.

 

	
8.2  

	
To the extent that any Prosensa Intellectual Property and Prosensa Know-How is under license or other agreement from a third party and such license or other agreement cannot be effectively assigned to Buyer’s designated Affiliates except by an agreement with or consent to the assignment of the third party concerned:

 

	 	
(A)  

	
the Seller shall use best efforts to take all action necessary to procure that before or as soon as possible after Closing a new agreement is entered into with the appropriate third parties to ensure that Buyer’s designated Affiliate and not the Seller is entitled to use such Prosensa Intellectual Property Rights and Prosensa Know-How; and

 

  

  

  

 

	 	
(B)  

	
until such new agreement has been entered into, the Seller shall (if and to the extent allowed under the license or other agreement):

 

	 	
(1)

	
continue to perform the obligations of the relevant agreement for the Buyer’s designated Affiliate and

 

	 	
(2)  

	
give all reasonable assistance to the Buyer’s designated Affiliate to enable it to enforce its rights under the relevant agreements.

 

	
8.3  

	
The Buyer or its designated Affiliate shall assume as per Closing the obligations in respect of the Prosensa Intellectual Property Rights and Prosensa Know-How from the Seller and the Buyer or its designated Affiliate shall indemnify and hold harmless the Seller Indemnified Parties against any and all liabilities, costs, claims and damages arising from or in connection with such Prosensa Intellectual Property Rights and Prosensa Know-How in accordance with Clause 12.1.

 

	
8.4  

	
The Seller shall deliver to the Buyer’s designated Affiliate the possession (bezitsverschaffing) of all documentation and carriers belonging to the Prosensa Know-How within 10 Business Days after the Parties sign the Certificate of Transfer.

 

	
8.5  

	
The Seller acknowledges that the Prosensa Know-How is confidential and secret; it shall keep such strictly confidential and shall not disclose it to any third party.

 

	
8.6  

	
The obligations of the Seller under this Clause ‎8 shall in any event end upon the end of the Liquidation, if any.

 

	
9.  

	
EMPLOYEES

 

The Seller does not have any employees.

 

	
10.  

	
LOANS AND GUARANTEES

 

	
10.1 

	
Debtor and creditor balances in the ordinary course of trade

 

Following Closing, all debtor and creditor balances arising in the ordinary course of trade between the Seller and any Subsidiary shall be settled in the ordinary course of business.

 

	
10.2 

	
Guarantees and indemnities

 

The Buyer shall procure that on or as soon as practicable after Closing the Seller is released from:

 

	 	
(A)  

	
the guarantees and indemnities given by it in respect of obligations of any Subsidiary and, pending such release, the Buyer shall indemnify the Seller Indemnified Parties against all liabilities under those guarantees and indemnities; and

 

	 	
(B)  

	
any claims, liabilities (whether contingent or not), contracts, commitments or arrangements, with any Subsidiary, and the Buyer shall indemnify the Seller against all liabilities the Seller may incur in respect hereof.

 

  

  

  

 

	
10.3 

	
Set-off

 

Any payment obligations under this Clause ‎10 shall, to the extent possible, be discharged by way of set-off (verrekening).

 

	
11.  

	
WRONG BOX ASSETS AND AMOUNTS RECEIVED IN ERROR

 

	
11.1  

	
From time to time the Parties shall review the composition of any assets and liabilities that remained with the Seller with a view to transferring these assets or liabilities (the "Wrong Box Assets"). So far as permitted by Applicable Laws and subject to the receipt of all relevant regulatory approvals, any Wrong Box Asset shall be promptly transferred or assigned to the Buyer or its designated Affiliates and accepted or assumed by the Buyer or its designated Affiliates, for no further consideration, and shall be managed for the Buyer or its designated Affiliates pending the transfer or assignment.

 

	
11.2  

	
All amounts received by the Seller after Closing in respect of the Business, including any repayment of Taxes, and which are not otherwise transferred to the Buyer pursuant to this Agreement shall be paid by the Seller to the Buyer (or as the Buyer so directs) as soon as possible after they are received by the Seller.

 

	
12.  

	
BUYER'S INDEMNITY

 

	
12.1  

	
Subject to Closing occurring, the Buyer hereby undertakes to indemnify and hold harmless the Seller for and against any damages, liabilities, losses, costs (including adviser fees) and fines (collectively "Losses") actually incurred by the Seller arising directly or indirectly from any Assets and Liabilities or the Business (including, for the purposes of this indemnity, the NASDAQ listing agreement or any other agreement excluded from the definition of Contracts), but excluding any Losses related to Taxes. The provisions of Schedule 6 (Tax Matters) shall come into effect at Closing.

 

	
12.2  

	
The Buyer hereby undertakes to indemnify and hold harmless, by way of irrevocable third party stipulation for no consideration, each current and future member of the Boards as well as the Liquidator (each of them an "Indemnified Party") against Losses actually incurred by such Indemnified Party in that capacity arising directly or indirectly from the performance of the Seller's obligations hereunder), including for the avoidance of doubt, any such Losses arising, accruing or incurred after Closing to the extent they relate to the Transaction or the liquidation process of the Seller, in each case:

 

	 	
(A)  

	
excluding any Losses arising, accruing or incurred as a result of a breach of its obligations under this Agreement or the Purchase Agreement, or fraud by such Indemnified Party, as finally established by a court decision or settlement agreement; and

 

	 	
(B)  

	
except to the extent covered by insurance and actually paid out pursuant to any insurance taken out for the benefit of an Indemnified Party; and

 

	 	
(C)  

	
excluding any Losses incurred by such Indemnified Party in his capacity as a holder of Shares, including without limitation any withholding taxes and other taxes on any liquidation distributions to such Indemnified Party as part of the Liquidation,

 

provided that the Buyer will have sole control over any litigation relating to any Losses for which the Indemnified Party is seeking to be indemnified hereunder, including over any correspondence, negotiations and other communications with third parties that could potentially result in litigation, and provided that the Indemnified Party will not take any action that may prejudice or affect the position in litigation without the Buyer's prior written consent.

 

  

  

  

 

	
13.  

	
THIRD PARTY CLAIMS

 

	
13.1  

	
If a third party initiates a claim against the Seller, issues attachments (beslag) on assets of the Seller or otherwise takes actions against the Seller in respect of any claim which the Buyer assumed or for which the Buyer indemnified the Seller hereunder, then the Buyer will as soon as practically possible following a first written notice by the Seller assume the defence of and liability in respect of such claim and exclusively be responsible for the conduct of any appeal, dispute, compromise or defence of such claim.

 

	
13.2  

	
With respect to the litigation captioned Singh v. Schikan, et al., No. 14-cv-05450-NRB, in the U.S. District Court for the Southern District of New York (the “Singh Claim”), with effect as of Closing the Buyer shall assume the Seller’s defence of and any liability of the Seller in respect of the Singh Claim, and the Buyer shall exclusively be responsible for the conduct of any appeal, dispute, compromise or defence on behalf of the Seller of the Singh Claim.

 

	
14.  

	
COVENANTS

 

	
14.1 

	
Covenants of the Seller

 

The Seller covenants with the Buyer that:

 

	 	
(A)  

	
it will execute and do, or use its best efforts to procure to be executed and done by any other relevant party, as the case may be, all such deeds, documents, acts and things as the Buyer may from time to time require in order to transfer the Assets and Liabilities and/or any individual asset, Prosensa Intellectual Property Right, liability (whether contingent or not), obligation, and/or Contract to the Buyer or its designated Affiliates, or as otherwise may be necessary to give full effect to this Agreement;

 

	 	
(B)  

	
it will execute and do, or use its best efforts to procure to be executed and done by any other relevant party, as the case may be, all such deeds, documents, acts and things as the Buyer may from time to time require in order to allow it or any of the Subsidiaries to (re)register any Intellectual Property Right transferred by the Seller to any Subsidiary in its or their name; and

 

	 	
(C)  

	
it will use its best efforts to procure the convening of all meetings, the giving of all waivers and consents and the passing of all resolutions as may be necessary to give effect to this Agreement.

 

	
14.2 

	
Covenants of the Buyer

 

The Buyer covenants with the Seller that:

 

	 	
(A)  

	
it will execute and do, or use its commercially reasonable efforts to procure to be executed and done by any other relevant party, as the case may be, all such deeds, documents, acts and things as the Seller may from time to time require in order to accept and assume the Assets and Liabilities and/or any individual asset, liability (whether contingent or not), obligation and/or Contract from the Buyer, or as otherwise may be necessary to give full effect to this Agreement;

 

	 	
(B)  

	
it shall retain for such period as may be prescribed by Applicable Law, all books, records and other written information relating to the Business and, to the extent reasonably required by the Seller or the members of the Boards for the fulfilment of their legal obligations under applicable law, upon reasonable written notice, provide the Seller or the members of the Boards reasonable access during normal office hours to such books, records and other information; and

 

  

  

  

 

	 	
(C)  

	
following and subject to Closing, it shall arrange for adequate steps and/or a transaction or a series of transactions as specified by the Buyer to result in the payment to the then-existing Remaining Shareholders of the Shareholder Distribution(s).

 

	
15.  

	
LIQUIDATION

 

	
15.1  

	
In connection with the dissolution and liquidation of the Seller in accordance with paragraph 5 of Schedule 4 (Closing), it is currently envisaged that, as soon as possible after Closing but prior to filing a final distribution plan with the Commercial Register of the Netherlands Chamber of Commerce in accordance with paragraph 4 of the article 2:23b of the DCC in the manner contemplated by the Liquidator, the Seller will make one or more advance liquidation distributions. The advance liquidation distributions together with any final liquidation distribution will result in the distribution:

 

	 	
(A)  

	
to the holders of the Shares not tendered in the Offer or the Subsequent Offering Period of the Aggregate Cash Amount and the Aggregate Minority CVRs, minus any applicable Dutch dividend withholding tax in accordance with Clause ‎15.2 and any other applicable Taxes;

 

	 	
(B)  

	
to BioMarin Giants of (i) an amount equal to the Cash Consideration multiplied by the number of Shares accepted by BioMarin Giants in the Offer plus (ii) a number of CVRs equal to the number of Shares accepted by BioMarin Giants in the Offer; and

 

	 	
(C)  

	
to the Buyer of (i) an amount equal to the Cash Consideration multiplied by the number of Shares accepted by the Buyer in the Offer or the Subsequent Offering Period plus (ii) ) a number of CVRs equal to the number of Shares accepted by the Buyer in the Offer or the Subsequent Offering Period,

 

(the "Shareholder Distribution(s)") and no assets (baten) remaining after such Shareholder Distribution(s). Parties agree that any Shareholder Distribution(s) to the Buyer to the extent possible shall be made by way of set-off against the payment obligation of the Buyer under the Note Payable and the Convertible Note.

 

	
15.2  

	
Parties acknowledge that, except with respect to payments to holder of Shares that are eligible for an exemption or reduction at source, if any, and that timely and validly claim such exemption or reduction, as the case may be, the Seller will have to withhold 15% Dutch dividend withholding tax (dividendbelasting) with respect to the Shareholder Distribution(s), to the extent the (aggregate) fair market value of such Shareholder Distribution(s) per Share, determined in Euros against the then applicable exchange rate for US dollars to Euros, exceeds the average paid-in capital per Share as recognized for Dutch dividend withholding tax purposes. The Seller confirms to the Buyer that the average paid-in capital per Share as recognized for Dutch dividend withholding tax purposes as of the date of this Agreement amounts to approximately EUR 3.32, but that no decision (beschikking) within the meaning of article 13 of the 1965 Dividend Tax Act (Wet op de dividendbelasting 1965) has been obtained. Parties acknowledge that, based on this amount, the dividend tax will be due on the difference between the (aggregate) then fair market value of the Shareholder Distribution(s) per Share, determined in Euros, minus approximately EUR 3.32 and agree that the dividend tax on the total Shareholder Distribution(s) will be withheld from the cash portion thereof.

 

	
15.3  

	
Promptly following a Shareholder Distribution, the Seller shall deliver to Buyer such information related to each holder of Shares receiving CVRs as reasonably requested by Buyer for purposes of enabling the Rights Agent to update the CVR Registry (as defined in the Contingent Value Rights Agreement), including the name and address of such holders and the number of CVRs distributed to such holders. The Seller shall also, as promptly as practicable following the Shareholder Distribution(s), with the assistance of the Buyer, wind up its affairs, satisfy all valid claims of creditors and others having claims against the Seller and effectuate liquidation, all in full compliance with applicable laws.

 

  

  

  

 

	
15.4  

	
The Buyer shall:

 

	 	
(A)  

	
assist the Seller and the Liquidator to effect the Liquidation and take all actions reasonably requested by the Seller for such purpose, including by granting Seller and the Liquidator reasonable access to the Business and providing such other assistance as the Seller or the Liquidator may reasonably request;

 

	 	
(B)  

	
assist the Seller to effect the Shareholder Distribution(s) as soon as practicable after the Closing and prior to the commencement of the opposition period related to the Liquidation, including by undertaking to pay or discharge all outstanding debts, liabilities and claims that are assumed by the Buyer or its designated Affiliates under this Agreement;

 

	 	
(C)  

	
give certain statements and explanations to the Liquidator regarding (inter alia) the Buyer's financial position and the Buyer's obligations vis-à-vis the Seller Indemnified Parties after Closing; and

 

	 	
(D)  

	
assist the Seller and the Liquidator with any other reasonable requests and requirements.

 

	
16.  

	
VALUE ADDED TAX

 

	
16.1  

	
If at the time of the Transaction the Seller and the Buyer do not form a fiscal unity (fiscale eenheid) within the meaning of article 7, paragraph 4 of the DVATA, the Seller and the Buyer intend that article 37d of the DVATA shall apply to the Transaction and agree to use all commercially reasonable efforts to ensure that the Transaction is treated as neither a supply of goods, nor a supply of services under the DVATA.

 

	
16.2  

	
If, other than as currently is expected by the Parties, any VAT is payable in connection with the Transaction and the DTA have confirmed this in writing:

 

	 	
(A)  

	
the Seller shall deliver to the Buyer a proper VAT invoice (or equivalent, if any) in respect thereof together with a copy of the written confirmation from the DTA;

 

	 	
(B)  

	
the Buyer shall pay this VAT to the Seller within five Business Days following receipt of such invoice;

 

	 	
(C)  

	
upon receipt of such payment from the Buyer, the Seller shall pay this VAT to the DTA; and

 

	 	
(D)  

	
in the event that the Seller had already delivered to the Buyer an invoice without VAT on the basis of clause ‎16.1 above, in relation to the sale of the Assets and Liabilities, deliver a credit-invoice to the Buyer and replace this invoice with a new valid VAT invoice(s) or issue an additional invoice(s) which refer(s) to the original invoice for the amount of the VAT payable.

 

	
16.3  

	
The Seller shall in connection with the Liquidation and in consultation with the Buyer be entitled to obtain certainty by means of entering into an arrangement with the DTA on its obligations to retain and preserve any VAT records relating to the period during which the Seller owned the Assets and Liabilities, including a request that the Seller is entitled to transfer such obligations to the Buyer. The Buyer shall be kept informed by the Seller of the 

 

  

  

  

 

negotiations with the DTA, such that any observations and suggestions by the Buyer, to the extent they are reasonable, can be reflected in time in the negotiations and agreement with the DTA. Upon approval from the DTA, the Buyer shall preserve such VAT records in accordance with this arrangement for a period of seven years from Closing, or such longer period as may be prescribed by applicable law, regulations, orders and statutes and in such a manner that the Seller meets its obligations to retain and preserve VAT records as agreed between Seller and the DTA and permit the Seller and the Liquidator, on the Seller or the Liquidator giving reasonable notice, access during normal office hours to them where reasonably required for Taxation purposes. If the Seller does not elect to enter into such arrangement with the DTA, the Seller shall retain the records referred to in article 34 and 34a of the DVATA and accordingly shall:

 

	 	
(A)  

	
preserve the records in the Netherlands for such period as may be required by law;

 

	 	
(B)  

	
so long as it preserves the records permit the Buyer reasonable access to them to inspect or make copies of them; and

 

	 	
(C)  

	
not at any time cease to preserve the records without giving the Buyer a reasonable opportunity to inspect and remove such of them as the Buyer wishes.

 

	
17.  

	
MISCELLANEOUS

 

	
17.1 

	
Cost and expenses

 

Except as explicitly stated otherwise in this Agreement, the Buyer shall bear all costs and expenses incurred by any of the Parties in respect of the preparation and execution of this Agreement and the preparation and implementation of the Transaction (including the costs of carrying out the Liquidation and advisers' fees in connection therewith).

 

	
17.2 

	
Notices

 

All notices, consents, waivers and other communications under this Agreement must be in writing in English and delivered by hand or sent by registered mail, express courier or a PDF-document sent by e-mail to the appropriate addresses and email addresses set out below. A notice shall be effective upon receipt and shall be deemed to have been received at the time of delivery, if delivered by hand, registered mail or express courier, or at the time of successful transmission, if delivered by email.

 

To the Buyer:

 

BioMarin Pharmaceutical Inc.

105 Digital Drive

Novato, CA 94949

Attention: Chief Executive Officer

with a copy, which shall not constitute notice, to:

BioMarin Pharmaceutical Inc.

105 Digital Drive

Novato, CA 94949

Attention: General Counsel

  

  

  

 

To the Seller:

 

Prior to dissolution of the Seller commencing:

 

Prosensa Holding N.V.

J.H. Oortweg 21

2333 CH Leiden

The Netherlands

Attention: Management Board

After commencement of the dissolution of the Seller:

Prosensa Holding N.V.

J.H. Oortweg 21

2333 CH Leiden

The Netherlands

Attention: Stichting Prosensa as Liquidator

with a copy, which shall not constitute notice, to:

BioMarin Pharmaceutical Inc.

105 Digital Drive

Novato, CA 94949

Attention: General Counsel

	
17.3 

	
Assignment

 

	 	
(A)  

	
Except as permitted under Clause ‎17.3, none of the Parties may assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the other Parties.

 

	 	
(B)  

	
The Buyer is entitled to assign any and all of its rights and obligations under this Agreement to any of its Affiliates. In the event of such assignment, this Agreement shall, insofar as it refers to the Buyer, apply mutatis mutandis to the designated assignee. The Buyer shall remain jointly and severally liable with the designated assignee for the proper performance of any obligations assigned to the designated assignee under this Clause ‎17.3.

 

	
17.4 

	
No Rescission

 

To the extent permitted by applicable law, the Parties waive their right to rescind (ontbinden) this Agreement or to request the nullification (vernietiging), amendment (wijziging) or rescission (ontbinding) of this Agreement in legal proceedings.

 

	
17.5 

	
Partial Invalidity

 

The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. Any such invalid or unenforceable provision shall be replaced or be deemed to be replaced by a provision that is considered to be valid and enforceable. The interpretation of the replacing provisions shall be as close as possible to the intent of the invalid or unenforceable provision.

 

  

  

  

 

	
17.6 

	
Entire Agreement; Amendment; No Third Party Rights

 

This Agreement constitutes the entire agreement between the Parties with respect to the Transaction. This Agreement supersedes any and all earlier agreements, either verbally or in writing, between the Parties in relation to the Transaction. This Agreement shall only be amended or supplemented in writing. Nothing in this Agreement, express or implied, is intended to confer upon any person other than the Parties any rights under or by reason of this Agreement and this Agreement does not create any third party stipulation (derdenbeding).

 

	
17.7 

	
Further Assurances

 

Each Party shall, at its own cost and expense, execute and do (or procure to be executed and done) all such deeds, documents, acts and things as the other Party may from time to time reasonably require in order to give full effect to this Agreement.

 

	
17.8  

	
Counterparts

 

This Agreement may be executed in counterparts (each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement) and shall become effective when one or more counterparts have been signed by each Party and delivered (by electronic communication, facsimile or otherwise) to the other Party.

 

	
17.9 

	
Governing Law and Jurisdiction

 

	 	
(A)  

	
This Agreement is governed by the laws of the Netherlands.

 

	 	
(B)  

	
All disputes arising in connection with this Agreement shall be finally settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute, including the possibility of arbitral summary proceedings (arbitraal kort geding). The place of arbitration shall be Amsterdam. The arbitral tribunal shall be composed of three arbitrators. The arbitral tribunal shall decide in accordance with the rules of law. The arbitral procedure shall be conducted in English.

 

  

  

  

 

SIGNATORIES

 

This agreement has been signed by the Parties (or their duly authorised representatives) on the date stated at the beginning of this agreement.

 

 

	
PROSENSA HOLDING N.V.

	 
	 
	
By:

	/s/ Scott Clarke
	  	
Name:

	Scott Clarke
	  	
Title:

	Director

 

	
PROSENSA HOLDING N.V.

	 
	 
	
By:

	/s/ G. Eric Davis  
	  	
Name:

	G. Eric Davis
	  	
Title:

	Director

 

	
BIOMARIN FALCONS B.V.

	 
	 
	
By:

	/s/ G. Eric Davis
	  	
Name:

	G. Eric Davis
	  	
Title:

	Managing Director

  

  

  

 

SCHEDULE 1

 

SUBSIDIARIES

 

Part 1

The Subsidiary Shares

 

	
Subsidiaries

	
Shareholding

	 	 
	
Prosensa Therapeutics B.V.

	
100%

	 	 
	
Prosensa Technologies B.V.

	
100%

	 	 
	
Polybiotics B.V.

	
100%

	 	 
	
Prosensa Inc.

	
100%

 

Part 2

List of Subsidiaries

 

	
1.  

	
Prosensa Therapeutics B.V.

 

	
2.  

	
Prosensa Technologies B.V.

 

	
3.  

	
Polybiotics B.V.

 

	
4.  

	
Prosensa Inc.

 

 

 

  

  

  

 

SCHEDULE 2

 

PROSENSA INTELLECTUAL PROPERTY RIGHTS AND PROSENSA KNOW-HOW CERTIFICATE OF TRANSFER

 

BETWEEN

 

	
(1)

	
Prosensa Technologies B.V., a private company with limited liability organized and existing under the laws of the Netherlands, having its corporate seat in Leiden, the Netherlands, with office address at J.H. Oortweg 21, 2333 CH Leiden, the Netherlands, registered with the Commercial Register of the Netherlands Chamber of Commerce under number 28114300 ("Transferee"); and

 

	
(3)

	
Prosensa Holding N.V., a public company with limited liability (naamloze vennootschap) incorporated under the laws of the Netherlands with its corporate seat in Utrecht, the Netherlands (the "Transferor").

 

STATE THE FOLLOWING:

 

Pursuant to an Asset Purchase Agreement, dated 5 February 2015, between BioMarin Falcons B.V. and Transferor to which this Schedule 2 is attached (the "APA"), Transferor has agreed to transfer or assign (as the case may be) to the Transferee legal title to the Prosensa Intellectual Property Rights (as defined in the APA) and Prosensa Know-How (as defined in the APA), which has been accepted by Transferee in the APA. Transferor hereby transfers or assigns (as the case may be) to the Transferee legal title to the Prosensa Intellectual Property Rights and Prosensa Know-How, which include but are not limited to those Prosensa Intellectual Property Rights and Prosensa Know-How listed below, which transfer and assignment Transferee hereby accept. It is acknowledged by Transferor and Transferee that the beneficial interest of the Prosensa Intellectual Property Rights and Prosensa Know-How transferred or assigned hereunder is held by Prosensa Therapeutic B.V. This transfer and assignment includes where applicable priority rights pertaining to the rights concerned and registrations ensuing from any applications, as well as the right to take legal action – included but not limited to claiming damages – against any infringement, whether it occurred or started prior to or subsequent to the date of this Certificate of Transfer.

 

Rights to be transferred include, but are not limited to:

 

[to be finalized prior to Closing]

 

 

  

  

  

 

	
SIGNED by:

	
)

	
For and on behalf of

	
)

	
Prosensa Holding

	
)

	  	  
	  	  
	  	  
	  	  
	  	  
	  	  
	
SIGNED by:

	
)

	
For and on behalf of

	
)

	
Prosensa Technologies

	
)

	  	  
	  	  
	  	  
	  	  
	  	  
	
For acknowledgement

	  
	  	  
	
SIGNED by:

	
)

	
For and on behalf of

	
)

	
Prosensa Therapeutics

	
)

 

 

  

  

  

SCHEDULE 3

 

INTERPRETATION

 

 

In this Agreement:

 

"Accounts Payable" means the liability for (a) any amounts due or payable by the Seller relating to the period before Closing, (b) any amounts which become due or payable by the Seller after Closing in connection with goods supplied or services performed prior to Closing, (c) any interest payable on such amounts and (d) all securities, guarantees, indemnities and rights relating to those amounts.

 

"Accounts Receivable" means the rights to (a) any amounts due or payable to the Seller relating to the period before Closing, (b) any amounts which become due or payable to the Seller after Closing in connection with goods supplied or services performed prior to Closing, (c) any interest payable on such amounts and (d) the benefit of all securities, guarantees, indemnities and rights relating to those amounts.

 

"Affiliates" means in relation to any Party, any person belonging to the same group as such Party as defined in article 2:24b DCC from time to time, provided that at no time will Seller be considered an Affiliate of the Buyer (or vice versa).

 

"Aggregate Cash Amount" has the meaning ascribed to it in Clause ‎3.1(A);

 

"Aggregate Minority CVRs" has the meaning ascribed to it in Clause ‎3.1(B);

 

"Agreed Form" means, in relation to any document, the form of that document which has been initialled for the purpose of identification by the Seller and the Buyer with such changes as the Seller and the Buyer may agree in writing before Closing.

 

"Applicable Laws" means any and all applicable laws (whether civil, criminal or administrative) including common law, statutes, subordinate legislation, treaties, regulations, rules, directives, decisions, by-laws, orders, notices, demands, decrees, injunctions, guidance, judgments or resolutions of a parliamentary government, quasigovernment, federal, state or local government, statutory, administrative or regulatory body, securities exchange, court or agency in any part of the world which are in force or enacted and are, in each case, legally binding as at the relevant time, and the term Applicable Law will be construed accordingly.

 

"Assets and Liabilities" means all records, assets and liabilities (including any liability of the Seller in respect of the litigation captioned Singh v. Schikan, et al., No. 14-cv-05450-NRB, in the U.S. District Court for the Southern District of New York) of the Seller as at Closing including: (i) liabilities of the Seller arising, accruing or incurred after Closing to the extent they relate to and/or arise from the Business (including any liability of the Seller in respect of the litigation captioned Singh v. Schikan, et al., No. 14-cv-05450-NRB, in the U.S. District Court for the Southern District of New York); (ii) the Subsidiary Shares; (iii) any TLCF and Actual Tax Liabilities; (iv) the Prosensa Intellectual Property Rights; (v) any properties owned by the Seller; (vi) the benefits and liabilities under the Insurance Policies; (vii) the Accounts Receivable and Accounts Payable; (viii) the Claims Receivable and Claims Payable; (ix) the benefit of any Tax rulings; (ix) the Contracts, and (x) all other assets and liabilities of the Seller (including inter-company receivables of the Seller from any member of its Group and inter-company payables of Seller to any other member of Seller's Group), other than (a) any Seller Excess Cash (until payment thereof to the Buyer in accordance with this Agreement), and (b) any records that must remain with the Seller under statutory (including Tax) obligations.

 

"Boards" has the meaning ascribed to it in the Introduction under (B).

 

  

  

  

 

"Business Day" means a day (other than a Saturday or Sunday) on which banks and NASDAQ are generally open in the Netherlands and in the United States of America for normal business.

 

"Business" means the business of the Seller as conducted in the period up to Closing.

 

"Buyer" means Biomarin BioMarin Falcons B.V. or its permitted assignee.

 

"Buyer's Group" means the Buyer and its Affiliates, including, after Closing, the Subsidiaries.

 

"Buyer's Lawyers" means Jones Day.

 

"Cash Consideration" has the meaning set out in the Introduction under (A).

 

"Claims Payable" means any claims of third parties vis-à-vis the Seller as at Closing.

 

"Claims Receivable" means any claims of the Seller vis-à-vis third parties as at Closing.

 

"Closing" means completion of the closing steps as set out in Schedule 4 under 1, 2 and 3.

 

"Contracts" means (a) any and all agreements, commitments and binding arrangements of the Seller including, but not limited to, the agreements and arrangements set out in Schedule 7 and (b) all offers made by the Seller or by third parties in favor of or to the Seller as at Closing relating to the Business, in each case (a) and (b), including, for the avoidance of doubt, (i) any termination agreements, service contracts and/or management agreements between the Seller and any (former) Board member; and (ii) the Insurance Policies, but  excluding for the avoidance of doubt (m) this Agreement, (n) the NASDAQ listing agreement, (o) the engagement letter with Freeland Corporate Advisors N.V., (p) the agreement with DTC, (q) the asset transfer agreements between the Seller and the Subsidiaries dated 29 July 2008, (r) the agreement with American Stock Transfer & Trust company, and (s) any other agreement explicitly excluded in Schedule 7.

 

"Convertible Note" has the meaning ascribed to it in Clause ‎3.1(B).

 

"Counterparty" or "Counterparties" has the meaning set out in Clause ‎7.2.

 

"CVR" has the meaning set out in the Introduction under (A).

 

"DCC" means the Civil Code of the Netherlands (Burgerlijk Wetboek).

 

"DCITA" means the Dutch Corporate Income Tax Act 1969 (Wet op de vennootschapsbelasting 1969).

 

"Deeds of Transfer" means (i) the notarial deed to be executed by the Notary and (ii) other transfer instruments for the relevant Subsidiary Shares, the Agreed Form of which is attached as Schedule 5 (Deeds of Transfer).

 

"DTA" means the Dutch Tax Authorities.

 

"DVATA" means the Dutch Value Added Tax Act 1968 (Wet op de omzetbelasting 1968).

 

"Government Entity" means any international, European Union, national, provincial or local governmental body, regulatory body or authority exercising an executive, legislative, judicial, regulatory, administrative or other governmental function with jurisdiction in respect of the relevant matter.

 

"Group" means, in relation to any person or entity, such person or entity and its Affiliates.

 

  

  

  

 

"Insurance Policies" means the insurance policies taken out by, or for the benefit of, Seller or any of its Affiliates, including, for the avoidance of doubt, all director and officer (D&O) insurance policies.

 

"Intellectual Property Rights" means copyrights, design rights, trademarks, trade names, service marks, domain names, patents, data base rights, supplementary protection certificates, moral rights (to the extent assignable) and any other intellectual property rights (whether registered or unregistered) and all applications for any of them, anywhere in the world, or otherwise, as the context may require.

 

"Know-How" means all factual knowledge and expertise relating to the products and services  developed and produced by a party, which has been accumulated by and under the control of the Seller and is not protected by any Intellectual Property Rights, including product data information consisting of technical descriptions sufficient to allow consistent duplication. This includes process descriptions and any other documentation that define the composition, performance characteristics, production and acceptance procedures, technical descriptions, manufacturing process and quality assurance requirements necessary for manufacture or duplication, in addition to the principles of operation. It also includes all carriers containing such documentation, meaning all movable things (roerende zaken), such as CD-roms and DVDs.

 

"Liquidator" means Stichting Prosensa.

 

"Losses" has the meaning ascribed to it in Clause ‎12.

 

"Management Board" has the meaning as set out in the Introduction under (B).

 

"Notary" means a civil law notary (notaris) of Buyer's Lawyers.

 

"Note Payable" has the meaning ascribed to it in Clause ‎3.1(A).

 

"Notification" has the meaning set out in Clause ‎7.2.

 

"Offer Consideration" has the meaning set out in the Introduction under (A).

 

"Offer to Purchase" means the offer to purchase filed with the Securities Exchange Commission by the Buyer for the Offer.

 

"Offer" has the meaning set out in the Introduction under (A).

 

"Prosensa Intellectual Property Rights" means the Intellectual Property Rights owned, in-licensed or otherwise controlled, whether directly or indirectly, by the Seller.

 

"Prosensa Know-How" means the Know-How which has been accumulated by and under the control of the Seller.

 

"Purchase Agreement" has the meaning ascribed to it in the Introduction under (A).

 

"Purchase Price" has the meaning ascribed to it in Clause ‎3.1.

 

"Relief" means any loss, relief allowance (including amortisation or depreciation), credit, deduction, exemption or set-off in respect of any Tax or relevant to the computation of any income, profits or gains for the purposes of any Tax, or any right to repayment of or savings of Tax.

 

"Remaining Shareholder" has the meaning ascribed to it in Clause ‎3.3.

 

"Seller" means Prosensa Holding N.V.

 

"Seller Net Cash Amount" has the meaning ascribed to it in Clause ‎3.1.

 

  

  

  

 

"Seller Excess Cash" has the meaning ascribed to it in Clause ‎3.1.

 

"Seller's Group" means the Seller and its Group but excluding the Buyer's Group.

 

"Shareholder Distribution(s)" has the meaning ascribed to it in Clause ‎15.1.

 

"Shares" has the meaning ascribed to it the Introduction under (A).

 

"Subsidiaries" means the legal entities listed in Part 2 of Schedule 1 (Subsidiaries).

 

"Subsidiary Shares" means all shares in Subsidiaries held by the Seller as set out in Part 1 of Schedule 1 (Subsidiaries).

 

"Supervisory Board" has the meaning ascribed to it in the Introduction under (B).

 

"Tax Authority" means, any Government Entity, taxing authority or other authority competent to impose or collect any Tax.

 

"Tax Claim" means any notice, enquiry, demand, assessment, determination, letter or other document issued by a Tax Authority from which it appears that the addressee of such notice may be required to make an actual or suffer a deemed payment of Tax or may suffer the non-availability, loss, reduction or cancellation of a Relief.

 

"Tax" or "Taxes" means all forms of tax, duties, imposts and levies, of any country or jurisdiction, whether arising by way of a primary liability or by way of a secondary liability, including income tax (including income tax or amounts equivalent to or in respect of income tax required to be deducted or withheld from or accounted for in respect of any payment), corporate income tax, advance corporation tax, capital gains tax, capital tax, dividend (withholding) tax, environmental tax, inheritance tax, value added tax, real estate transfer tax, any liability for repayment of unlawful state aid in relation to Tax, customs and other import or export duties, excise duties, stamp duty, reserve tax, bank levy, wage tax, social security or other similar contributions, and any interest, penalty, surcharge or fine relating thereto.

 

"Tender Offer Statement" means that certain tender offer statement on Schedule TO, filed by BioMarin Pharmaceutical Inc., Buyer and BioMarin Giants B.V. with the U.S. Securities and Exchange Commission on December 12, 2014, as amended or supplemented from time to time.

 

"TLCF" means any available tax loss carry forward.

 

"Transaction" means the sale and transfer of the Assets and Liabilities by and from the Seller to the Buyer.

 

"VAT" means value added taxation or its equivalent in any relevant jurisdiction.

 

"Wrong Box Assets" has the meaning ascribed to it in Clause ‎11.1.

 

  

  

  

 

SCHEDULE 4

 

CLOSING

 

	
1.  

	
The Seller shall give the Buyer (and the Buyer shall accept) possession of those Assets which are transferable by delivery with the intention that title to those assets should pass to the Buyer by such delivery.

 

	
2.  

	
The Seller shall procure the transfer to the Buyer of all of the Assets and Liabilities (to the extent any such Assets and Liabilities can be so transferred) as at Closing, including:

 

	 	
(A)  

	
transferring (to the account nominated by the Buyer prior to the date of Closing) the Seller Excess Cash;

 

	 	
(B)  

	
executing the Certificate of Transfer; and

 

	 	
(C)  

	
executing the Deeds of Transfer.

 

	
3.  

	
The Buyer shall satisfy its obligation to pay the Purchase Price by:

 

	 	
(A)  

	
issuing the Note Payable to the Seller; and

 

	 	
(B)  

	
issuing the Convertible Note to the Seller.

 

	
4.  

	
Upon completion of the steps set out under paragraph 1, 2 and 3, Closing has occurred, and  the Seller shall procure that the Management Board immediately thereafter shall confirm the sale and with effect of such confirmation the dissolution shall commence and the Liquidator will have been appointed.

 

	
5.  

	
As soon as reasonably possible following Closing but after any advance Shareholders Distribution(s) have been made, the Seller shall procure that the Liquidator files a notice of the proposed liquidation and dissolution of the Seller with the Commercial Register of the Netherlands Chamber of Commerce as required under article 2:19(3) of the DCC (and for the period during which the Seller continues to exist for the purposes of the liquidation of its property, proprietary rights and interests, procure that in all documents and announcements of the Seller the words 'in liquidatie' are added to the Seller's name in accordance with article 2:19(5) of the DCC), and that the Liquidator make the public announcement in a newspaper  in accordance with article 2:23b of the DCC.

 

 

  

  

  

 

 

SCHEDULE 5

 

DEEDS OF TRANSFER

 

	
1.  

	
Deed of transfer in relation to the shares in Prosensa Therapeutics B.V.

 

	
2.  

	
Deed of transfer in relation to the shares in Prosensa Technologies B.V.

 

	
3.  

	
Deed of transfer in relation to the shares in Polybiotics B.V.

 

	
4.  

	
Stock transfer agreement in relation to the shares in Prosensa Inc.

 

 

 

  

  

  

 

 

SCHEDULE 6

 

TAX MATTERS

 

	
1.  

	
INTERPRETATION

 

	
1.1 

	
This Schedule, unless such words or expressions are defined in this Schedule or the contrary intention otherwise appears, words and expressions defined elsewhere in this Agreement have the same meaning and:

 

"Actual Tax Liability" means a payment of Tax for which the Seller is held liable including, for the avoidance of doubt, Dutch corporate income tax for which the Seller is liable as a result of the Transaction and any damages, liabilities, losses, costs and expenses in relation to Tax, but excluding any Dutch dividend withholding tax (dividendbelasting) and any other withholding taxes due with respect to the Shareholder Distribution(s); and

 

"Tax Return" means any correspondence, notice, claim, return, declaration, report and computation relating to Tax.

 

In this schedule, unless the contrary intention appears, a reference to a paragraph is to a paragraph of this schedule and a reference to a Clause is to a clause of this Agreement.

 

	
2.  

	
BUYER'S TAX INDEMNITY

 

	
2.1  

	
The Buyer and the Seller agree that the Buyer shall indemnify and hold the Seller harmless (schadeloos stellen) from and against any Actual Tax Liability.

 

	
2.2  

	
The amount of any indemnity payment due by the Buyer to the Seller in accordance with paragraph 2.1 will be determined so that it leaves the Seller in the same position as if no Actual Tax Liability had arisen. No payment is due under this paragraph ‎2 to the extent the Seller has been paid under another clause of the Agreement for the same liability.

 

	
2.3  

	
A payment to be made by the Buyer under this Schedule 6 (Tax Matters), if any, shall be made ultimately on the date which is five Business Days prior to the last date on which that payment of Tax may be made in order to avoid incurring a liability to interest or penalties.

 

	
3.  

	
CONDUCT OF TAX AFFAIRS

 

	
3.1  

	
The Buyer and the Seller agree that the Buyer shall have the sole conduct of the Tax affairs of the Seller and the Subsidiaries following the Transaction.

 

	
3.2  

	
The Buyer and the Seller agree that the Seller and the Subsidiaries will make all appropriate filings and elections, including on the basis of article 15af DCITA, to ensure that all tax attributes of the Seller and the Subsidiaries, including to the fullest extent allowed by law the TLCFs of the fiscal unity (fiscale eenheid) for Dutch corporate income tax purposes between the Seller and the Dutch Subsidiaries, will be allocated to the relevant Subsidiaries, such that those TLCFs and other tax attributes will be available to that Dutch Subsidiary after Closing.

 

	
4.  

	
CONDUCT OF TAX CLAIM

 

	
4.1  

	
If the Seller receives any Tax Claim, for whatever reason, it shall notify Buyer in writing as soon as reasonably practicable.

 

	
4.2  

	
The Buyer and the relevant Subsidiary shall be free to pay or settle any Tax Claim referred to in paragraph 4.1, in the name of the Seller or as the case may be in the name of the Subsidiaries, on such terms as they may in their absolute discretion think fit and without prejudice to their rights and remedies under this Schedule.

 

	
5.  

	
GROUP TAX ARRANGEMENTS

 

	
5.1  

	
The Seller agrees, and agrees to procure, that no Subsidiary shall have a liability after Closing to make a payment or repayment to the Seller in respect of group tax arrangements, a consolidation or fiscal unity, or under any tax sharing or tax allocation arrangement.

 

	
5.2  

	
Prior to Closing, the Seller will notify the relevant Tax Authority in writing that the fiscal unity for Dutch VAT purposes between the Seller and the Dutch Subsidiaries will be terminated as per Closing and the Seller will provide a copy of such notification to the Buyer within five Business Days after Closing.

 

  

  

  

 

SCHEDULE 7

 

CONTRACTS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}]]