Document:

Master Services Agreement

 Exhibit 10.1 

FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 

MASTER SERVICES AGREEMENT 
 This Master
Services Agreement (this “Agreement”), with an Effective Date of September 30, 2013, will set forth the terms and conditions between BioDelivery Sciences International, Inc., 801 Corporate Center Drive, Raleigh, NC 27607 (hereinafter
“BDSI”), and Quintiles Commercial US, Inc., 10 Waterview Boulevard, Parsippany, NJ 07054 (hereinafter “Quintiles”). 

Background: 
 A. BDSI is
in the business of developing, manufacturing and/or distributing pharmaceutical and/or biotechnology products (“BDSI Product(s)”). Quintiles is in the business of providing sales, marketing, consulting, strategic advisory, outsourcing
implementation, educational and alternative commercialization services for the pharmaceutical, healthcare and biotechnology industries. 

B. BDSI and Quintiles desire to enter into this Agreement to provide the terms and conditions upon which BDSI may engage Quintiles and its
corporate Affiliates from time-to-time to provide contract sales, marketing, consulting, strategic advisory, outsourcing implementation, educational and alternative commercialization services for individual projects by executing individual Work
Orders (as defined below) specifying the details of the services and the related terms and conditions. 
 Agreement: 

 

	1.	Definitions 

  

	1.1	“Affiliate” shall mean any corporation or business entity controlled by, controlling, or under common control with a party to this Agreement as of the Effective Date. For this purpose, “control”
shall mean direct or indirect beneficial ownership of at least fifty percent (50%) of the voting stock or income interest in such corporation or other business entity, or such other relationship as, in fact, constitutes actual control.

  

	1.2	“FDA” shall mean the US Food and Drug Administration. 

  

	1.3	“Fees” shall mean *** agreed to by the parties pursuant to applicable executed Work Orders that is payable to Quintiles in return for Services performed pursuant to such Work Order. Fees shall ***.

  

	1.4	“Pass-Through Expenses” shall mean the *** incurred by Quintiles or Quintiles personnel in the course of providing Services and evidenced ***, in accordance with *** or the ***. 

 

	1.5	“Project” shall mean the complete task or set of tasks described in a specific Work Order. 

  
 1 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	1.6	“Services” shall mean the responsibilities, obligations and activities which are to be performed by Quintiles, as they are described in this Agreement and in specific Work Orders. 

 

	1.7	“Term” and “Project Term” shall have the meanings described in Section 10.1. 

  

	1.8	“Work Order” shall have the meaning described in Section 2.2. 

  

	2.	Scope of Agreement; Services to be Provided; Work Orders; Project Teams. 

  

	2.1	Scope of Agreement. This Agreement allows the parties to contract for multiple Projects through the issuance of multiple Work Orders. This Agreement covers the provision of strategic advisory, consulting, and
commercialization services by Quintiles and Quintiles’ corporate Affiliates (see Section 10) when requested by BDSI and agreed to by Quintiles as set forth in the relevant Work Order. BDSI shall, in its sole discretion, determine
when and whether to offer projects to Quintiles and its corporate Affiliates, including the decision whether or not to enter into a specific Work Order. 

  

	2.2	Work Orders. The specific details and tasks of each Project shall be separately negotiated and specified in writing on terms and in a form acceptable to the parties (each such writing, a “Work Order”).
The first Work Order is of even date hereof and subsequently issued Work Orders may follow the same basic template. Each Work Order will include, as appropriate, ***. Each Work Order shall be subject to all of the terms and conditions of this
Agreement, in addition to the specific details set forth in the Work Order. To the extent any terms or provisions of a Work Order conflict with, expand or contract the terms and provisions of this Agreement, the terms and provisions of this
Agreement shall control, unless the Work Order expressly and specifically states an intent to supersede the Agreement on a specific matter (but then only with respect to the particular Work Order and with respect only to the matter so specified). A
change in a Work Order shall be evidenced by an amendment to the relevant Work Order duly executed by BDSI and Quintiles in form acceptable to both parties. Quintiles will manage and administer each Project in accordance with the specifications and
timelines contained in each Work Order. 

  

	3.	Payment of Fees and Pass-Through Expenses. 

  

	3.1	BDSI shall pay Quintiles the Fees and Pass-Through Expenses expressly described in each Work Order. Unless otherwise agreed in a particular Work Order, Quintiles will invoice BDSI *** for the Fees and Pass-Through
Expenses relating to the Project. Each invoice shall be supported by a detailed expense report, and supporting documentation will be made available to BDSI upon request. Depending on the *** of the *** and based upon *** to between the parties, ***
agrees that a *** for Quintiles to ***. Any such prepayment shall be specified in the applicable Work Order. 

  
 2 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	3.2	BDSI shall make payment for all undisputed amounts of invoiced Fees within *** after the receipt of *** invoice (“Due Date”). All invoices shall be deemed received *** after the date postmarked if sent by
mail, on the date sent if they are sent electronically or by facsimile, and *** after the date they are sent if delivered by a reputable overnight delivery service. Quintiles reserves the right to impose, and BDSI agrees to pay if imposed by
Quintiles, *** (or if less, the maximum amount permitted by law) of all undisputed amounts owing hereunder, which are outstanding *** from the Due Date of the invoice. 

 

	3.3	If any portion of an invoice is disputed, BDSI shall pay the undisputed amounts by the Due Date, and the parties shall use good faith efforts to reconcile the disputed amount for payment as soon as practicable.

  

	3.4	If the period of non-payment of an undisputed amount exceeds *** past the Due Date, Quintiles may, at its sole discretion and without prejudice to any other rights or remedies, exercise its right to give notice of a
default in accordance with Section 10.3. 

  

	3.5	Payments shall be by wire-transfer or by check as follows: 

 Postal Mail:  

Quintiles Commercial US, Inc. 

PO Box 601070 
 Charlotte, NC
28260-1070 
 Overnight Mail:  

Quintiles Commercial US, Inc. 

c/o Wells Fargo Bank 
 *** 

1525 West WT Harris Blvd - 2C2 

Charlotte, NC 28262 

Electronic Payment:  

*** 
 Quintiles Federal
Employment ID Number is 22-3529314. 
  

	3.6	*** shall pay all applicable sales and use taxes solely pertaining to the Services, including all (and to the extent) applicable Goods and Services Tax (“GST”), Value Added Tax (“VAT”), local taxes,
applicable duties, electronic delivery taxes, excise taxes, levies and import fees (collectively, “Taxes”) that are imposed by federal, state, or local law or legislation in connection with the provision of Services and that are not
recoverable by ***. *** set forth in a Work Order are ***. Where Taxes are paid by ***, ***will provide an invoice showing the ***. Where any Taxes are paid directly to a tax authority or government by BDSI, BDSI shall not deduct this amount from
any amount due to Quintiles. For the avoidance of doubt, the requirements of this provision ***. 

  
 3 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	4.	Confidentiality and Ownership of Information. 

  

	4.1	Each of the parties acknowledges that, in the course of performing its obligations hereunder, it may receive information from the other party which is proprietary to the disclosing party and which the disclosing party
wishes to protect from public disclosure (“Confidential Information”). Quintiles and BDSI agree to retain in confidence, during the Term of this Agreement and any Work Order, and any subsequent renewals thereof, and thereafter for a period
of ***, all Confidential Information disclosed to it by or on behalf of the other party, and that it will not, without the written consent of such other party, use Confidential Information for any purpose other than the purposes indicated herein.
These restrictions shall not apply to Confidential Information that: (i) is or becomes public knowledge (through no fault of the receiving party); (ii) is made lawfully available to the receiving party by an independent third party,
provided that such third party is not bound (to receiving party’s knowledge) by a confidentiality obligation with the disclosing party; (iii) is already in the receiving party’s possession at the time of receipt from the disclosing
party (and such prior possession can be properly demonstrated by the receiving party), provided the source of such information was not bound (to the receiving party’s knowledge) by a confidentiality obligation with the disclosing party with
respect to such information; (iv) is independently developed by the receiving party and/or Affiliates (and such independent development can be properly demonstrated by the receiving party); or (v) is required by law, regulation, rule, act
or order of any governmental authority or agency or stock exchange on which the receiving party is traded to be disclosed by the receiving party, provided, however, if reasonably possible, such receiving party gives the disclosing party sufficient
advance written notice to permit it to seek a protective order or other similar order with respect to such Confidential Information and, thereafter, the receiving party discloses only the minimum Confidential Information required to be disclosed in
order to comply. In the event that the receiving party or its Representatives are requested or required (by oral questions, interrogatories, requests for information or documents in legal proceedings, subpoena, civil investigative demand or other
similar legal process) to disclose any of the Confidential Information, the receiving party shall provide the disclosing party with prompt written notice of any such request or requirement so that the disclosing party may in its sole discretion seek
a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. If, in the absence of a protective order or other remedy or the receipt of a waiver by the disclosing party, the receiving party or its
Representatives are nonetheless, in the opinion of competent, legal counsel, legally compelled to disclose Confidential Information to any tribunal, the receiving party or its Representatives may, without liability hereunder, disclose to such
tribunal only that portion of the Confidential Information which such counsel reasonably advises is legally required to be disclosed, provided that the receiving party use its reasonable best efforts to preserve the confidentiality of the
Confidential Information, including, without limitation, by cooperating with the disclosing party to obtain an appropriate protective order or other reliable assurance that confidential treatment will be accorded the Confidential Information by such
tribunal; and provided further that the receiving party shall promptly notify the disclosing party of (i) the receiving party’s determination to make such disclosure and (ii) the nature, scope and contents of such disclosure.

  
 4 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	4.2	Quintiles and BDSI shall limit disclosure of the other party’s Confidential Information to only those of their respective officers, representatives, agents, permitted subcontractors and employees (collectively
“Representatives” and each a “Representative”) who are directly concerned with the performance of this Agreement and have a legitimate need to know such Confidential Information (“Informed Persons”). The receiving party
accepts responsibility for any breach of this Agreement by the receiving party or any of its Representatives and will undertake appropriate and reasonable precautions at its sole expense to ensure the protection, confidentiality and security of the
Confidential Information, including assuring that all Informed Persons are aware of the confidential or proprietary nature of the Confidential Information and have themselves signed confidentiality agreements or otherwise legally bound by
confidentiality. Upon receipt of notice of termination by BDSI, Quintiles shall return all BDSI Confidential Information to BDSI. 

  

	4.3	All BDSI patents, trade secrets, copyrights, trade names, trademarks, service marks, proprietary materials or intellectual property and all improvements to any of the foregoing (collectively “BDSI Property”)
used in connection with the Services provided pursuant to this Agreement or any Work Order shall remain the sole and exclusive property of BDSI, and Quintiles’s rights to use such BDSI Property shall be limited to those permitted by this
Agreement or any Work Order. 

  

	4.4	BDSI acknowledges that Quintiles and its Affiliates possess certain inventions, processes, know-how, trade secrets, improvements, other intellectual properties and other assets, including but not limited to analytical
methods, procedures and techniques, computer technical expertise and software, and business practices, including, but not limited to the Quintiles Sales Force Automation System (SFA) or Quintiles’ Customer Relationship Management System (CRM)
as applicable, the Quintiles Pharmaceutical Selling System, and the Quintiles Sample Accountability System which have been independently developed by or for Quintiles and its Affiliates and which relates to the business or operations of Quintiles
and its Affiliates (collectively “Quintiles Property”). BDSI and Quintiles agree that any Quintiles Property or improvements, modifications and enhancements thereto that are not specific to BDSI Confidential Information or BDSI Property,
which are used, improved, modified or developed by Quintiles or its Affiliates under or during the term of this Agreement or any Work Order, are the sole and exclusive property of Quintiles. 

 

	4.5	The ownership of the disclosing party’s Confidential Information shall at all times remain solely with the disclosing party (or the third party to whom the disclosing party owes a duty of confidentiality). Nothing
herein shall be deemed to grant a license or other right, whether directly or by implication, estoppel or otherwise, to any Confidential Information disclosed pursuant to this Agreement except as herein expressly stated. 

  
 5 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	4.6	The obligation of confidentiality shall survive for *** from expiration or earlier termination of this Agreement. 

  

	4.7	No party shall issue a press release or other public announcement relating to this Agreement or the activities contemplated herein without the prior written approval of the other party. 

 

	5.	Independent Contractor Relationship. 

  

	5.1	For the purposes of this Agreement and any Work Order, the parties hereto are independent contractors and nothing contained in this Agreement or any Work Order shall be construed to place them in the relationship of
partners, principal and agent, employer and employee or joint venturers. Neither party shall have the power or right to bind or obligate the other party, nor shall either party hold itself out as having such authority. 

 

	5.2	No provision of this Agreement or any Work Order shall be deemed to create or imply any contract of employment between BDSI and any employee of Quintiles. All persons performing Services shall be employees of Quintiles,
or permitted subcontractors engaged by Quintiles with prior consent of BDSI, and shall not be entitled to any benefits applicable to employees of BDSI. 

  

	5.3	Quintiles will be responsible for all financial, legal and compliance matters related to its employees, including, but notwithstanding, the obligation to: (i) maintain all necessary personnel and payroll records
for Quintiles employees; (ii) compute wages and withhold applicable Federal, State and local taxes and Federal FICA payments for Quintiles employees; (iii) remit Quintiles employee withholdings to the proper governmental authorities and
make employer contributions for Federal FICA and Federal and State unemployment insurance payments; (iv) pay net wages and fringe benefits, if any, directly to Quintiles employees; and (v) provide for appropriate employer’s liability
and Workers’ Compensation insurance coverage in sufficient amounts to at a minimum cover its obligations hereunder and to comply with any applicable laws, regulations and ordinances. 

 

	5.4	Quintiles shall be responsible for management of all employer obligations in connection with Quintiles employees who perform the Services. Quintiles employees shall remain exclusively under the direct authority and
control and responsibility of Quintiles. BDSI may be involved in providing training, direction or equipment to a Quintiles employee only in the manner and to the extent specifically described in a Work Order. The employer obligations of Quintiles
shall include: (i) human resource issues, including establishment of employee policies, and administration of health and benefits plans, 401K plan, and other employee benefit plans; (ii) work performance and work behavior issues, including
probationary period, periodic and annual appraisals, employee discipline and termination; (iii) administration of systems for time-keeping, payroll and employee expense reimbursement; (iv) day to day management of employment issues in
connection with performance of the Services. 

  
 6 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	6.	Regulatory Compliance. 

  

	6.1	In carrying out their responsibilities under this Agreement and each Work Order, Quintiles and BDSI agree to comply, to the extent applicable, with all laws, rules and regulations, including, but not limited to the
Federal Equal Employment Opportunity Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the Immigration Reform and Control Act of 1986, the
Food, Drug and Cosmetic Act, Section 1128B(b) of the Social Security Act (42 U.S.C. §1320a-7b(b)), and the Prescription Drug Marketing Act. BDSI shall be primarily responsible for compliance, if and to the extent applicable, with the
Physician Payment Sunshine Act, Cal. Health & Safety Code s. 119400-119402, and any similar law or regulation of any other governmental unit and shall provide Quintiles with any applicable per physician spending limits arising therefrom. To
facilitate the BDSI’s compliance with federal and state physician spend reporting requirements, Quintiles will provide its standard monthly excel file that includes data and in a format and format sufficient for BDSI’s ready compliance
with federal and state reporting requirements. 

  

	6.2	If Quintiles or its employees become aware of adverse drug experience reports involving the use of any BDSI Product, while performing any Services in connection with the BDSI Product, Quintiles shall notify BDSI *** and
***. ***shall deliver to *** a written copy of such ***. 

  

	6.3	Quintiles represents and warrants that neither it nor any of its Affiliates providing Services under this Agreement has been debarred or is subject to debarment pursuant to the the Federal Food, Drug and Cosmetic Act,
as amended, and the rules and regulations promulgated thereunder and as may be in effect from time to time (the.“Act”) or has been excluded from participating in any federal healthcare program, and Quintiles covenants that it shall not use
in any capacity, in connection with the Services to be performed under this Agreement, any person (i) who has been debarred pursuant to Section 306 of the Act, or (ii) is otherwise ineligible to participate in federal healthcare
programs. Quintiles further covenants that it will not use in any capacity in connection with the Services to be performed under this Agreement, any person known to Quintiles, after appropriate or reasonable inquiry, who is the subject of a
conviction described in such 42 U.S.C. § 1320a-7(a) for which a person can be debarred, suspended or excluded. Quintiles agrees to notify BDSI *** if it is debarred or it becomes aware of the fact that any Quintiles personnel performing
Services under this Agreement is debarred or is the subject of a conviction described in 42 U.S.C. § 1320a-7(a), or if any action, suit, claim, investigation or legal or administrative proceeding is pending or is threatened, relating to the
debarment, suspension, exclusion, ineligibility or conviction of Quintiles or any Quintiles personnel providing Services hereunder. 

  

	6.4	Both parties agree that each party, in fulfilling its obligations under this Agreement, will not violate any applicable law or regulation. 

  
 7 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	6.5	BDSI shall be solely responsible for responding to any government or regulatory agency concerning use or marketing of BDSI Products, except where (i) such responsibility is expressly transferred to Quintiles in a
Work Order; or (ii) to the extent any notice or reporting requirement is by law made directly applicable to Quintiles. Written reports made by Quintiles as a result of any government investigation or audit shall be charged to BDSI ***; provided
such government investigation or audit does not result or arise from Quintiles’ negligence, misconduct or breach of this Agreement and/or Work Order. Both Quintiles and BDSI shall provide the other with copies of all written reports, including
all applicable documentation, made to any governmental or regulatory agency that implicates the other party in any manner. Both Quintiles and BDSI shall provide the other with a written summary of any oral or telephonic report involving the other
party in any respect made to any governmental or regulatory agency. In no event shall Quintiles respond to any agency without the prior consent of BDSI, unless compelled to do so by law, as reasonably determined by competent legal counsel.

  

	6.6	*** shall promptly notify *** of any information *** receives regarding any threatened or pending action by a government or regulatory agency that may affect the *** Products or its ability to fulfill its obligations in
this Agreement and/or any Work Order. 

  

	6.7	*** shall notify *** of every instance of actual or suspected fraud or misconduct on the part of a *** employee promptly after the initial discovery of any suspicious findings or possible evidence of such. *** shall, at
the request of ***, cooperate with *** in order to respond, or in formulating a procedure for taking appropriate action. 

  

	6.8	Subject to the provisions in Article 7, Quintiles shall maintain all sample accountability records (if applicable) for *** from the date of creation. After ***, with at least *** prior notice, Quintiles shall destroy
such records unless BDSI has requested their return at BDSI’s expense. 

  

	6.9	Anti-Bribery. Each party agrees that: 

 (a) it will not, and will ensure that each of its
Representatives will not, (i) offer, promise or give an advantage to another person, or (ii) request, agree to receive or accept a financial or other advantage in violation of any anticorruption laws, rules, regulations and decrees
applicable to the respective party (collectively, “Legislation”), including without limitation the United States Foreign Corrupt Practices Act, as amended (the “FCPA. It is each party’s responsibility to be familiar with, and
comply with, the provisions of the applicable Legislation. 
 (b) from time to time, at the reasonable request of the other party, it will
confirm in writing that it has complied with its undertakings under subsection (a) above and will provide any information reasonably requested by the other party in support of such compliance. 

  
 8 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	7.	Return of BDSI Materials. 

 Within *** after the termination or expiration of the
Agreement or any Work Order, all BDSI Confidential Information, BDSI Property and other data owned by BDSI, regardless of the method of storage or retrieval, shall at BDSI’s request either be delivered to BDSI in such form as is then
currently in the possession of Quintiles, or disposed of, at the direction and written request of BDSI, unless such materials are otherwise required to be stored or maintained by Quintiles as a matter of law or regulation. BDSI shall pay ***
associated with any of the above options that are documented by contemporaneous written records. Quintiles reserves the right to retain, *** subject to the confidentiality provisions herein, one copy of all materials provided in connection with
performance of the Services, to be used to solely to satisfy regulatory requirements or to resolve disputes regarding the Services. For the copy, Quintiles shall store the copy in a secure location, and ensure that only Informed Persons on a
need-to-know basis has access to the copy. 
  

	8.	Indemnification and Liability Limits. 

  

	8.1	Quintiles shall indemnify, defend and hold harmless BDSI, its Affiliates and their Representatives from and against *** (collectively, “Losses”), joint or several, resulting or arising from *** to the extent
resulting from or arising out of any ***; all except to the extent such Losses resulted from *** of BDSI, its Affiliates or their Representatives. 

  

	8.2	BDSI shall indemnify, defend and hold harmless Quintiles, its Affiliates and their Representatives from and against *** to the extent resulting from or arising out of ***; all except to the extent such Losses are
determined to have resulted from *** of Quintiles or its employees. 

  

	8.3	The party seeking indemnification hereunder (the “Indemnified Party”) shall: (a) give the party obligated to indemnify (the “Indemnifying Party”) *** notice of any such claim or law suit
(including a copy thereof); (b) Indemnified Party and its employees shall fully cooperate with Indemnifying Party and its legal representatives in the investigation and defense of any matter the subject of indemnification; and
(c) Indemnified Party shall not unreasonably withhold its approval of the settlement of any such claim, liability, or action by Indemnifying Party covered by this Indemnification provision; provided, however, that Indemnified Party’s
failure to comply with its obligations pursuant to Section 8.3 shall not constitute a breach of this Agreement nor relieve Indemnifying Party of its indemnification obligations pursuant to Section 9, except to the extent, if any, that
Indemnifying Party’s defense of the affected claim, action or proceeding actually was materially impaired thereby. 

  

	8.4	*** SHALL HAVE *** FOR ANY ***. IN ADDITION, IN NO EVENT SHALL THE COLLECTIVE, AGGREGATE LIABILITY *** OF ***, OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, SUBCONTRACTORS OR AGENTS UNDER THIS AGREEMENT ***.

  
 9 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	8.5	Quintiles shall not be liable to BDSI for claims or losses arising out of the statements or representations of Quintiles employees in furtherance of the Services with respect to BDSI Products to the extent the
statements or representations are at the direction of BDSI and conform (in manner, substance and form) to official instructions and written or printed statements or representations made to Quintiles and Quintiles employees by BDSI with respect to
the BDSI Products. 

  

	8.6	In the event that Quintiles, any of its Affiliates or their Representatives is served with or becomes subject to any subpoena, order, judgment, complaint, proceeding, enforcement or other legal process (each, a
“Legal Proceeding”) to which BDSI is a party or subject, but Quintiles is not, which Legal Proceeding seeks from Quintiles disclosure of any documents or information related to the Services, then BDSI shall bear and/or reimburse Quintiles
for all reasonable third party fees, costs and expenses associated with such Legal Proceeding; provided the Legal Proceeding is not the result of or arises from any negligence or misconduct or breach of this Agreement and/or any Work Order by
Quintiles, any of its Affiliates or their Representatives. 

  

	9	Insurance. 

 *** shall ***, obtain and maintain in full force and effect, the following
insurance during the Term (and any subsequent renewals thereof): ***. *** shall provide *** with a certificate of insurance evidencing all coverage herein required, *** after the effective date of this Agreement and upon each insurance renewal. ***
must provide *** notice of cancellation or material change in insurance coverage. Insurance obligations set forth herein must be provided by insurance carriers with a rating of not less than A-, VII, as rated by AM Best & Company or
equivalent rating agency. Notwithstanding the foregoing, the insurance obligations hereunder may be met by a program of self-insurance supported by actuarial analysis or public financial reports. 

 

	10.	Term and Termination. 

  

	10.1	This Agreement shall commence on the date of execution and shall continue until terminated as hereinafter provided (the “Term”). Each Work Order shall include a statement of the Project start date and the
Project end date (the “Project Term”). 

  

	10.2	Except as otherwise set forth in the applicable Work Order, either party may terminate this Agreement or any Work Order without cause at any time by *** notice to the other party. 

 

	10.3	 Either party may terminate this Agreement by written notice at any time if the other party defaults in the performance of its material obligations
under the Agreement or materially breaches the Agreement and does not cure such material default or breach within the Cure Period. Either party may terminate a Work Order by written notice at any time if the other party defaults in the performance
of its material obligations under the Work Order Agreement or materially breaches the Work Order. In the event of any such default or 

  
 10 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	 	
breach of the Agreement or Work Order, the party declaring the default or breach shall provide the defaulting or breaching party with written notice setting forth the nature of the default or
breach, and the defaulting or breaching party shall have *** to cure the default. If the defaulting party fails to cure the default within the foregoing time period, the other party may terminate the Agreement or Work Order, as the case may be, by
written notice to the defaulting or breaching party, which notice shall be effective upon receipt. During the *** cure period for termination due to default or breach, each party will continue to perform its obligations under the Agreement. If the
cure period has expired without a substantial cure of the breach, then the parties shall promptly meet to prepare a close-out schedule, and Quintiles shall cease performing all work not necessary for the orderly close-out of the Services or required
by laws or regulations. 

  

	10.4	Either party may terminate this Agreement by written notice to the other party, effective upon receipt with no right to cure the default, if the other party files a petition for bankruptcy, reorganization or arrangement
under any state statute, or makes an assignment for the benefit of creditors or takes advantage of any insolvency statute or similar statute, or if a receiver or trustee is appointed for the property and assets of the party and the receivership
proceedings are not dismissed within *** of such appointment. 

  

	10.5	In the event this Agreement or a Work Order is terminated for any reason, BDSI shall pay to Quintiles: (a) all Fees for Services rendered which have accrued and are due and owing to Quintiles because of any
completed performance of Quintiles’ obligations not under dispute prior to the effective date of termination; and (b) all pass-through expenses actually incurred and documented by contemporaneous, written records by Quintiles prior to the
effective date of termination. In the event this Agreement or a Work Order is terminated for any reason other than due to a material breach of the Agreement or applicable Work Order by Quintiles, BDSI shall also pay: (c) all actual
costs, including time spent by Quintiles personnel (which shall be billed at Quintiles’ standard rates in effect as of the date of the termination notice), incurred to complete activities associated with the termination and close-out of the
affected Project(s), provided Quintiles uses commercially reasonable efforts to minimize all actual costs and such actual costs are documented with contemporaneous written records; and (d) any other costs not identified above which have been
expressly identified in a Work Order as being due upon termination of such Work Order. 

  

	11.	Relationship with Affiliates. 

  

	11.1	 BDSI agrees that Quintiles may utilize the Services of its corporate Affiliates to fulfill Quintiles’ obligations under this Agreement or any
Work Order, and Quintiles shall remain responsible for all such Services performed by its Affiliates. Any Quintiles Affiliate so utilized shall be (i) subject to all of the terms and conditions applicable to Quintiles under this Agreement and
the Work Order applicable to such Project(s), including, but not limited to, provisions establishing the standards for performance, (ii) entitled to all rights and protections afforded Quintiles under this Agreement and the Work Order
applicable to such Project(s), including, but not limited to, the indemnity and limitation of liability protections 

  
 11 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	 	
set forth herein, and (iii) solely responsible for the performance of the Services under such Work Order. Any such Affiliate of Quintiles may execute a Work Order directly and, with respect
to the corresponding Project, the rights and obligations of the parties shall be governed by all of the terms and conditions of this Agreement, to the same extent as if such Quintiles Affiliate was a party to this Agreement. 

 

	11.2	BDSI and Quintiles acknowledge that with prior written approval by BDSI on a case-by-case basis, certain Affiliates of BDSI may utilize the services of Quintiles (and its Affiliates) under this Agreement and under any
Work Order. In such event, (i) BDSI shall cause such BDSI Affiliate to acknowledge and be bound by all the terms and conditions of this Agreement and the specific Work Order, and (ii) BDSI shall remain responsible and obligated under this
Agreement and the Work Order, as if BDSI was directly receiving the Services provided to such BDSI Affiliate. Any such Affiliate of BDSI may execute a Work Order directly and, with respect to the corresponding Project, the rights and obligations of
the parties shall be governed by all of the terms and conditions of this Agreement, to the same extent as if such BDSI Affiliate was a party to this Agreement. 

  

	11.3	Unless otherwise expressly provided for in this Agreement, Quintiles will not subcontract all or any part of the services provided hereunder without first obtaining BDSI’s prior written consent. Quintiles shall
require each BDSI-approved subcontractor to execute a written agreement with terms no less restrictive than those set forth in Article 4 of this Agreement. Quintiles further represents and warrants that the services performed by any such
subcontractors will be performed in accordance with all the terms and conditions of this Agreement, including the warranties of Section 18.4. 

  

	12.	Cooperation. 

 All data and information in BDSI’s possession or control reasonably
necessary for Quintiles to perform the Services under this Agreement or applicable Work Order will be delivered by BDSI to Quintiles. Quintiles shall not be liable to BDSI nor be deemed to have breached this Agreement or any Work Order as a result
of errors, delays or other consequences directly and substantially arising from BDSI’s failure to timely provide documents, materials or information or to otherwise cooperate with Quintiles in order for Quintiles to timely and properly perform
Quintiles’ obligations, and any such failure by BDSI shall automatically extend any timelines affected by a time period reasonably commensurate to take into account such failure, unless BDSI agrees in writing to pay any additional,
reasonable costs that would be required to meet the original timeline. Nothing set forth in this Article 12 shall remove any liability of Quintiles for its negligence or wilfull misconduct or violation of any municipal, state, and federal laws,
rules, and regulations. 

  
 12 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	13.	Force Majeure. 

 If the performance or observance of this Agreement or any obligation of
this Agreement or any Work Order is prevented or delayed by reason outside the control of the affected party, such as an act of God, civil commotion, storm, fire, riots, strikes, legal moratorium (other than FDA action), war or revolution, the party
so affected shall, upon prompt notice of such cause being given to the other party, be excused from such performance or observance to the extent of such prevention or during the period of such delay, provided that the party so affected shall use its
best efforts to avoid or remove the cause(s) of non-performance and observance with utmost dispatch; and further provided that the prevention or delay is not the result of or arise from the negligence or misconduct of the affected party. 

 

	14.	Review of Work; Audit. 

 During the term of this Agreement, Quintiles will permit BDSI or
a third-party auditor selected by BDSI, who is bound by obligations of confidentiality at least as restrictive as those set forth herein and who is not an entity competitive to Quintiles, at *** and in a *** as agreed upon by the parties, but no
more frequently than ***, and at BDSI’s expense, to (i) examine the documentation associated with the work performed hereunder to confirm that the Services are being conducted in accordance with the terms herein or in the applicable Work
Order, or (ii) audit the financial records related to Quintiles’ performance of the Services. 
  

	15.	Notices. 

 Any notice required or permitted to be given by either party shall be in
writing. All notices shall be to the parties and addresses listed below, and shall be deemed given (i) on the date received if delivered personally or sent by facsimile or (ii) one business day after the date r sent by an reputable
overnight delivery service, or (iii) three (3) days after the date postmarked if sent by regular, registered or certified mail, return receipt requested, postage prepaid. 

 

											
	          If to Quintiles:	  	        ***	  		  		  		  	
						
	          With a copy to:	  	        ***	  		  		  		  	
						
	          If to BDSI:	  	        ***	  		  		  		  	
						
	          With a copy to:	  	        ***	  		  		  		  	

  

	16.	Assignment. 

 *** shall not have the right or the power to assign any of its rights, or
delegate or subcontract the performance of any of its obligations under this Agreement, without the prior written authorization of ***; provided, however, that the prior written authorization of *** shall not be required for *** to assign any of its
rights, or delegate or subcontract the performance of any of its obligations hereunder to an Affiliate or as a result of a merger or acquisition; provided the assignee is not a competitor of ***, in which case, such assignment would

  
 13 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

 
require *** prior written consent, which shall not be unreasonably withheld. Notwithstanding anything contained herein to the contrary, *** shall have the right to assign and transfer this
Agreement and any Work Order, if any, in part or in whole, to any other third party that is not a competitor of *** with *** prior written consent, which shall not be unreasonably withheld. The Agreement shall inure to the benefit of any permitted
assigns, successors in business, or subsidiaries or Affiliates of the parties. Any attempted assignment or transfer in contravention of this Article 16 shall be null and void. 

 

	17.	Arbitration. 

 Resolution of disputes concerning any aspect of the Services, this
Agreement or any Work Order shall be accomplished by good faith negotiations between BDSI and Quintiles, to be commenced within *** after notice. If necessary, thereafter, resolution of such disputes shall be accomplished, at written request of
either party to the other party, by binding arbitration, which shall not interfere with the timely rendering of Services. Arbitration will be pursuant to the Rules of Conciliation and Arbitration of the American Arbitration Association, using a
three-person panel of arbitrators, one (1) to be designated by BDSI, one (1) by Quintiles, and a third to be agreed upon by the other two (2) arbitrators. If the two party-appointed arbitrators are unable to agree on a third
arbitrator within *** after the second arbitrator is appointed, the third arbitrator shall be selected by the American Arbitration Association. 
  

	18.	Additional Warranties and Representations. 

  

	18.1	Quintiles and BDSI warrant and represent to the other that they have the full right and authority to enter into this Agreement and that there is no impediment that would inhibit their ability to perform their respective
obligations under this Agreement or any Work Order. Each party further represents that it will not enter into any such agreement during the term of this Agreement. 

 

	18.2	Quintiles and BDSI agree to perform their obligations hereunder in a timely, professional and competent manner. 

  

	18.3	BDSI warrants and represents that it possesses good title to, or the right to use, any and all trademarks of the BDSI Products, free and clear of any claims or encumbrances that would impede the performance by either
party under the terms of this Agreement or any Work Order. In addition, BDSI owns or controls the patents or appropriate licenses in connection with all BDSI Products to be involved in the Services, and has no knowledge of the existence of any claim
or adverse rights which would restrict or prevent BDSI or Quintiles from performing the Services pursuant to this Agreement or a Work Order. 

  
 14 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	18.4	Quintiles represents and warrants that: 

  

	 	i)	neither Quintiles nor any of its Representatives who are directly concerned with the performance of the Services has been debarred pursuant to the Federal Food, Drug and Cosmetic Act (“FDCA”) or
is currently excluded, debarred, suspended, or otherwise ineligible to participate in any federal health care programs or in any federal procurement or non-procurement programs. Moreover, if Quintiles or any of its Representatives who is directly
concerned with the performance of the Services subsequently becomes debarred, excluded, suspended or ineligible as set forth in the preceding sentence, or is convicted of a criminal offense that falls within the ambit of the federal statute
providing for mandatory exclusion from participation in any federal health care programs but has not yet been excluded, debarred, suspended, or otherwise declared ineligible to participate in those programs, Quintiles agrees immediately to notify
BDSI of such event. 

  

	 	ii)	it shall, and shall cause its Representatives to, comply with all municipal, state, and federal laws, rules, and regulations applicable to the performance of the Quintiles’ obligations under this Agreement and any
Work Order. 

  

	19.	General Provisions 

  

	19.1	This Agreement shall be construed, governed, interpreted, and applied in accordance with the laws of the State of North Carolina, without giving effect to the principles of conflict of laws. The parties agree that any
action or proceeding arising out of or in connection with this Agreement will be venued in a federal or state court of appropriate venue and subject matter jurisdiction located in the State of North Carolina. Each party hereto irrevocably consents
to the personal jurisdiction of the courts in the State of North Carolina. 

  

	19.2	The rights and obligations of BDSI and Quintiles under this Agreement and any Work Order, which by intent or meaning have validity beyond such termination (including, but not limited to, rights with respect to
confidentiality, mutual indemnification and liability limitations) shall survive the termination of this Agreement or such Work Order for the terms expressly set forth herein and if no term is provided, indefinitely. Notwithstanding, for the sake of
clarity, Articles 1, 2, 3, 4, 6, 7, 8, 9, 15, 16, 17, 18 and 19 and Sections 5.3, 10.3, 10.5, 10.6 and 11.4 shall survive the expiration or termination of this Agreement and any Work Order. 

 

	19.3	This Agreement contains the entire understandings of the parties with respect to the subject matter herein, and cancels and supersedes all previous agreements (oral and written), negotiations and discussions, dealing
with the same subject matter. The parties, from time to time during the term of this Agreement, may modify any of the provisions hereof only by an instrument in writing duly executed by both parties. 

 

	19.4	References to any Schedule, Appendix, Attachment or Exhibit attached to this Agreement or any Work Order shall be deemed to incorporate the entire contents of the Schedule, Appendix, Attachment or Exhibit by reference,
as if it were fully set forth in the Agreement or Work Order to which it is attached. 

  

	19.5	 No failure or delay on the part of a party in either exercising or enforcing any right under this Agreement or any Work Order will operate as a waiver
of, or impair, any such right. No single or partial exercise or enforcement of any such right will preclude any other or further 

  
 15 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

	 	
exercise or enforcement thereof or the exercise or enforcement of any other right. No waiver of any such right will have effect unless given in a signed writing. No waiver of any such right will
be deemed a waiver of any other right. 

  

	19.6	If any part or parts of this Agreement or a Work Order are held to be illegal, void or ineffective, the remaining portions of the Agreement or Work Order shall remain in full force and effect. If any of the terms or
provisions are in conflict with any applicable statute or rule of law, then such term(s) or provision(s) shall be deemed inoperative to the extent that they may conflict therewith, and shall be deemed to be modified or conformed with such statute or
rule of law. In the event of any ambiguity respecting any term or terms hereof, the parties agree to construe and interpret such ambiguity in good faith in such a way as is appropriate to ensure its enforceability and viability. Neither party shall
assert against the other that the compensation arrangement provided in this Agreement or any Work Order is ground for voiding the Agreement or Work Order, or rendering the same unenforceable. 

 

	19.7	The headings contained in this Agreement and any Work Order are used only as a matter of convenience, and in no way define, limit, construe or describe the scope or intent of any section of this Agreement or such Work
Order. 

  

	19.8	Quintiles agrees promptly to inform BDSI of any event or change in circumstances which may reasonably be expected to negatively affect Quintiles’ ability to perform its obligations under this Agreement in the
manner contemplated by the parties. 

  

	20.	Execution in Counterparts 

  

	20.1	This Agreement may be executed in any number of counterparts, each of which when executed and delivered, shall constitute an original, but all of which together shall constitute one agreement binding on all parties,
notwithstanding that all parties are not signatories to the same counterpart. 

  

	20.2	Transmission by fax or by electronic mail in portable document format (pdf) of an executed counterpart of this Agreement shall be deemed to constitute due and sufficient delivery of such counterpart. The parties shall
deliver to each other an original counterpart of this Agreement promptly after delivery by fax or electronic mail provided however, that failure by either party to so deliver an original counterpart shall not affect the sufficiency of a fax or
electronic mail of such counterpart as provided in the first sentence of this paragraph. 

 [Remainder of page left
intentionally blank] 

  
 16 

 FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

CONFIDENTIAL TREATMENT REQUESTED WITH RESPECT TO CERTAIN PORTIONS HEREOF 

DENOTED WITH “***” 
  

 IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto through their duly authorized
officers on the date(s) set forth below. 
  

									
	QUINTILES COMMERCIAL US, INC.	 		 	BDSI
					
	By:	 	 /s/ Kenneth P. Budesa
	 		 	By:	 	 /s/ Al Medwar

	Name:	 	 Kenneth P. Budesa
	 		 	Name:	 	 Al Medwar

	Title:	 	 V.P. Finance
	 		 	Title:	 	 Vice President, Marketing & Corporate Development

					
	Date:	 	Sept. 29, 2013	 		 	Date:	 	9/27/13

  
 17EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered
into effective as of February 4, 2014 (the “Effective Date”), by and between REGULUS THERAPEUTICS INC., a Delaware corporation (the
“Company”), and DAVID SZEKERES (the “Executive”). The Company and the Executive are hereinafter collectively referred to
as the “Parties”, and individually referred to as a “Party”. From and following the Effective Date, this Agreement shall replace and supersede that certain Offer Letter Agreement between Executive and
Regulus Therapeutics Inc. dated December 18, 2013 (the “Prior Agreement”). 

RECITALS 

WHEREAS, the Company desires to employ Executive to provide personal services to the Company, and wishes
to provide Executive with certain compensation and benefits in return for his services, and Executive wishes to be so employed and to receive such benefits; and 

WHEREAS, the Company and Executive wish to enter into this Agreement to define their mutual rights and
duties with respect to Executive’s compensation and benefits. 
 Now, THEREFORE, in
consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the Parties, intending to be legally bound, agree as follows: 

AGREEMENT 

1. EMPLOYMENT. 

1.1 Term. The term of this Agreement shall begin on the Effective Date, and shall continue until terminated in accordance with
Section 5 herein. 
 1.2 Title. The Executive shall serve as the Company’s Chief Business Officer and General Counsel and
shall serve in such other capacity or capacities as the Board of Directors of the Company (the “Board’’) may from time to time prescribe, but only as consistent with the customary duties of a
Chief Business Officer and General Counsel. The Executive will also initially be a member of the Regulus Strategic Committee and may continue such membership as determined by the Chief Executive Officer of the Company in his sole discretion. 

1.3 Duties. The Executive shall report to the Chief Executive Officer of the Company and shall do and perform all reasonable services,
acts or things necessary or advisable to manage and conduct the business of the Company and which are normally associated with the position of a Chief Business Officer and General Counsel, consistent with the bylaws of the Company and as required by
the Board or the management of the Company. 
 1.4 Location. The Executive shall perform services pursuant to this Agreement at the
Company’s offices located in San Diego, California, or at any other place at which the Company maintains an office; provided, however, that the Company may from time to time require the Executive to travel temporarily to other locations in
connection with the Company’s business. 

  
 1. 

 2. LOYAL AND CONSCIENTIOUS
PERFORMANCE. 
 2.1 Loyalty. During the Executive’s employment by the Company the Executive shall devote the
Executive’s full business energies, interest, abilities and productive time to the proper and efficient performance of the Executive’s duties under this Agreement. 

2.2 Non-Company Business. While employed by the Company, Executive shall not, without the Company’s prior written consent,
(i) render to others, services of any kind for compensation, or engage in any other business activity that would materially interfere with the performance of Executive’s duties under this Agreement, or (ii) directly or indirectly,
whether as a partner, employee, creditor, shareholder, or otherwise, promote, participate or engage in any activity or other business competitive with the Company’s business. Notwithstanding the foregoing, Executive may, however, without the
Company’s prior written consent, continue Executive’s current service as a member of the board of directors or advisor of Anochi BioPharma, Annai Systems, Association of Corporate Counsel, with or without compensation, and may serve as a
member of the board of directors of other companies or organizations provided that Executive notifies the Board in advance of commencing any such membership and the Board determines that such membership does not conflict with Executive’s
obligations to the Company. Executive shall not invest in any company or business which competes in any manner with the Company; provided that, Executive may, without violating this section, own, as a passive investment, shares of capital
stock of a publicly-held corporation that engages in competition if (i) such shares are actively traded on an established national securities market in the United States, (ii) the number of shares of such corporation’s capital stock
that are owned beneficially (directly or indirectly) by the Executive represents less than one percent of the total number of shares of such corporation’s outstanding capital stock, and (iii) Executive is not otherwise associated directly
or indirectly with such corporation or with any affiliate of such corporation. 
 3. COMPENSATION OF
THE EXECUTIVE. 
 3.1 Base Salary. The Company shall pay the Executive a base salary at the rate of
$295,000 per year (the “Base Salary”), less payroll deductions and all required withholdings, payable in regular bi-weekly payments or otherwise in accordance with Company policy. Such Base Salary
shall be prorated for any partial year of employment on the basis of a 365-day fiscal year. 
 3.2 Discretionary Bonuses. In addition
to the Base Salary, the Executive will be eligible to receive a yearly discretionary merit bonus pursuant to the Company’s annual performance bonus plan, with a target amount of such bonus equal to 35% of Executive’s Base Salary (the
“Annual Bonus”). Whether Executive receives an Annual Bonus for any given year, and the amount of any such Annual Bonus, will be determined by the Board in its sole discretion based upon the
Company’s and Executive’s achievement of objectives and milestones to be determined on an annual basis by the Board. Executive must remain an active employee through the end of the applicable performance period in order to earn an Annual
Bonus for that year and any such bonus will be paid in a lump sum prior to March 15 of the year following the year in which Executive’s right to such amount became vested. 

  
 2. 

 3.3 Equity Compensation. Contingent on your commencement of employment and subject to
approval by the Board (or the Compensation Committee of the Board, if applicable), you will be granted a stock option under the Company’s 2012 Equity Incentive Plan (the “Plan”) to purchase
250,000 shares of the Company’s common stock, with an exercise price per share equal to the closing price of the Company’s common stock on the date of grant. The option will vest with respect to 25% of the shares subject to the option on
the one year anniversary of the Effective Date and in equal monthly installments thereafter over the next three years, subject to your continued service to the Company and the terms of the Plan. The Board may grant additional stock, stock options,
or other equity awards to Executive in its sole discretion. 
 3.4 Changes to Compensation. It is anticipated that the Executive will
be considered on an annual basis for merit increases in base compensation consistent with performance and market trends but subject to Board approval in its sole discretion. Subject to Section 5.3 below, the Executive’s compensation may be
changed from time to time in the Company’s sole discretion based upon Board approved changes to the Company’s operating plan after considering relevant business conditions. 

3.5 Employment Taxes. All of the Executive’s compensation and payments under this Agreement shall be subject to customary
withholding taxes and any other employment taxes as are commonly required to be collected or withheld by the Company. 
 3.6 Benefits.
The Executive shall, in accordance with Company policy and the terms of the applicable plan documents, be eligible to participate in benefits under any executive benefit plan or arrangement which may be in effect from time to time and made
available to the Company’s executive or key management employees. 
 3.7 Vacations and Holidays. In accordance with Company
policies, Executive shall be entitled to accrue three weeks of paid vacation during each calendar year, subject to applicable maximum accrual caps; and Executive shall also be entitled to certain paid holidays. The Company may modify any of its
benefit plans or policies, including its vacation and holiday policies, from time to time in its sole discretion. 
 3.8 Expenses.
The Company will reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive in furtherance or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s
expense reimbursement policy as in effect from time to time. For the avoidance of doubt, to the extent that any reimbursements payable to Executive are subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”): (a) to be eligible to obtain reimbursement for such expenses Executive must submit expense reports within 45 days after the expense is incurred, (b) any such reimbursements
will be paid no later than December 31 of the year following the year in which the expense was incurred, (c) the amount of expenses reimbursed in one year will not affect the amount eligible for reimbursement in any subsequent year, and
(d) the right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit. 

  
 3. 

 4. DEFINITIONS. 

For purposes of this Agreement, the following terms shall have the following meanings: 

4.1 Cause. “Cause” for the Company to terminate Executive’s employment hereunder means the occurrence of
any of the following events: (i) Executive’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) Executive’s attempted commission of,
or participation in, a fraud or act of dishonesty against the Company; (iii) Executive’s intentional, material violation of any contract or agreement between the Participant and the Company (including this Agreement) or of any statutory
duty owed to the Company; (iv) Executive’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) Executive’s gross misconduct. 

4.2 Change in Control. For purposes of this Agreement, “Change in Control” means: the occurrence of any one or
more of the following events: (i) any person (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended), other than Isis Pharmaceuticals, Inc. or Alnylam Pharmaceuticals, becomes the owner, directly
or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities (other than in connection with a transaction involving the issuance of securities by the Company
the principal purpose of which is to raise capital for the Company); (ii) there is consummated a merger, consolidation or similar transaction to which the Company is a party and the stockholders of the Company immediately prior thereto do not
own outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving entity immediately following such merger, consolidation or similar transaction or more than 50% of the combined outstanding voting
power of the parent of the surviving entity immediately following such merger, consolidation or similar transaction; or (iii) there is consummated a sale, lease exclusive license or other disposition of all or substantially all of the
consolidated assets of the Company and its subsidiaries, other than a sale, lease or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity more than 50% of the combined voting power
of which is owned immediately following such disposition by the stockholders of the Company immediately prior thereto. 
 4.3
Complete Disability. “Complete Disability” shall mean the inability of the Executive to perform the Executive’s duties under this Agreement because the Executive has become permanently disabled within the meaning
of any policy of disability income insurance covering employees of the Company then in force. In the event the Company has no policy of disability income insurance covering employees of the Company in force when the Executive becomes disabled, the
term Complete Disability shall mean the inability of the Executive to perform the Executive’s duties under this Agreement by reason of any incapacity, physical or mental, which the Board, based upon medical advice or an opinion provided by a
licensed physician acceptable to the Board, determines can be expected to result in death or expected to last for a continuous period of more than 12 months. Based upon such medical advice or 

  
 4. 

 
opinion, the determination of the Board shall be final and binding and the date such determination is made shall be the date of such Complete Disability for purposes of this Agreement. The
Company shall act upon this Section in compliance with the Family Medical Leave Act (if applicable to the Company), the Americans with Disabilities Act (as amended), and applicable state and local laws. 

4.4 Good Reason. “Good Reason” for the Executive to terminate the Executive’s employment hereunder shall
mean the occurrence of any of the following events without the Executive’s consent; provided however, that any resignation by the Executive due to any of the following conditions shall only be deemed for Good Reason if: (i) the Executive
gives the Company written notice of the intent to terminate for Good Reason within 90 days following the first occurrence of the condition(s) that the Executive believes constitutes Good Reason, which notice shall describe such condition(s);
(ii) the Company fails to remedy, if remediable, such condition(s) within 30 days following receipt of the written notice (the “Cure Period”) of such condition(s) from the Executive; and
(iii) Executive actually resigns his employment within the first 15 days after expiration of the Cure Period: 
 4.4.1 a
material breach of this Agreement by the Company; 
 4.4.2 a material reduction by the Company of the Executive’s Base Salary
as initially set forth herein or as the same may be increased from time to time; 
 4.4.3 a material reduction in the
Executive’s authority, duties or responsibilities; or 
 4.4.4 the Company relocates the facility that is the Executive’s
principal place of business with the Company to a location that requires an increase in the Executive’s one-way driving distance by more than 35 miles. 

5. COMPENSATION UPON TERMINATION. 

5.1 Death Or Complete Disability. If the Executive’s employment with the Company is terminated as a result of Executive’s
death or Complete Disability, the Company shall pay to Executive, and/or Executive’s heirs, the Executive’s Base Salary and accrued and unused vacation benefits earned through the date of termination at the rate in effect at the time of
termination, less standard deductions and withholdings (the “Accrued Obligations”), and the Company shall thereafter have no further obligations to the Executive and/or Executive’s heirs under this
Agreement. 
 5.2 With Cause or Without Good Reason. If the Executive’s employment with the Company is terminated at any time
either by the Company for Cause or by the Executive without Good Reason, the Company shall pay the Accrued Obligations, and the Company shall thereafter have no further obligations to the Executive under this Agreement. 

  
 5. 

 5.3 Without Cause or for Good Reason during first Six Months of Employment. If the
Executive’s employment with the Company is terminated prior to the six-month anniversary of the Effective Date either by the Company without Cause or by the Executive with Good Reason, then in either case the Company shall pay the Accrued
Obligations and the Company shall thereafter have no further obligations to the Executive under this Agreement, provided that, notwithstanding the foregoing, if such termination occurs within the one month period immediately preceding or the
twelve month period immediately following the effective date of a Change in Control, then subject to the Executive’s delivery to the Company of an effective Release (as defined in and as required pursuant to Section 5.4 below), Executive
shall additionally be entitled to (1) the Equity Acceleration set forth in Section 5.4.3 below and (2) the Bonus Payment set forth in Section 5.5.1 below. 

5.4 Without Cause or for Good Reason after Six Months of Employment. If on or after the date that is six months following the Effective
Date, the Executive’s employment with the Company is terminated by the Company without Cause, or Executive resigns for Good Reason, and in either case Executive signs a waiver and release of claims (in substantially the form attached hereto as
Exhibit A, or in such other form of release as the Company may require (the “Release”)) on or within the time period set forth therein, but in no event later than 45 days after Executive’s
termination date, and allows such Release to become effective in accordance with its terms (such latest permitted date on which the Release could become effective, the “Release Deadline”), then
Executive will receive the following benefits: 
 5.4.1 Severance Payment. A payment equal to the equivalent of 12 months of the
Executive’s Base Salary (the “Severance Payment”), less standard deductions and withholdings, which shall be paid in a single lump sum within five days after the effective date of the Release. For the
avoidance of doubt, the Severance Payment shall relate to the Base Salary at the rate in effect during the last regularly scheduled payroll period immediately preceding the date of the termination, and prior to any reduction in Base Salary that
would permit the Executive to voluntarily terminate employment for Good Reason. 
 5.4.2 Health Insurance. If Executive is eligible
for and timely elects continued group health plan coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) following Executive’s termination, and subject to
Executive’s delivery to the Company of an effective Release, the Company will pay the Executive’s COBRA group health insurance premiums for the Executive and his eligible dependents until the earliest of (A) the close of the 12 month
period following the termination of Executive’s employment (the “COBRA Payment Period”), (B) the expiration of Executive’s eligibility for the continuation coverage under COBRA, or
(C) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment. For purposes of this Section 5.4.2, references to COBRA premiums shall not include
any amounts payable by Executive under an Internal Revenue Code Section 125 health care reimbursement plan. Notwithstanding the foregoing, if at any time the Company determines, in its sole discretion, that it cannot pay the COBRA premiums
without potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then regardless of whether Executive elects continued health coverage under COBRA,
and in lieu of providing the COBRA premiums, the Company will instead pay Executive on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable
tax withholdings (such amount, the “Special Severance Payment”), which payments shall continue until the earlier of expiration of the COBRA Payment Period or the date when

  
 6. 

 
Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment. On the 60th day following Executive’s termination, the Company will make the first payment under this clause (and, in the case of the Special Severance Payment, such payment will be to Executive, in a lump
sum) equal to the aggregate amount of payments that the Company would have paid through such date had such payments commenced on the date of Executive’s termination through the effective date of the Release, with the balance of the payments
paid thereafter on the schedule described above. If Executive becomes eligible for coverage under another employer’s group health plan, Executive must immediately notify the Company of such event, and all payments and obligations under this
Subsection shall cease. 
 5.4.3 Equity Acceleration. Contingent on the effective date of the Release, all of the outstanding stock
options, restricted stock or other equity awards that Executive holds with respect to the Company’s common stock shall accelerate and vest such that all shares shall be vested and fully exercisable as of the effective date of Executive’s
termination of employment. In order to give effect to the foregoing provision, notwithstanding anything to the contrary set forth in Executive’s equity award agreements, following any termination of Executive’s employment that is without
Cause or for Good Reason, none of Executive’s equity awards shall terminate with respect to any vested or unvested portion subject to such award before the later of (A) the effective date of the Release, or (B) the Release Deadline.

 5.5 Additional Change in Control Related Severance Benefits. In the event that the Executive’s employment with the Company is
terminated without Cause or Executive resigns for Good Reason within the one month period immediately preceding or the twelve month period immediately following the effective date of a Change in Control, then subject to the Executive’s delivery
to the Company of an effective Release as required pursuant to Section 5.4, Executive shall be entitled to all of the severance benefits described under Section 5.4 above, provided that: 

5.5.1 The Executive shall additionally be entitled to a lump sum payment equivalent to the Executive’s target Annual Bonus that
was in effect at the time of Executive’s termination (the “Bonus Payment”). The Bonus Payment shall be subject to all standard deductions and withholdings and shall be paid in a single lump sum within five
days after the later of (A) the effective date of the Release, or (B) the effective date of the Change in Control (if Executive’s termination occurs prior to the Change in Control), but in no event later than March 15 of the year
following the year in which Executive’s termination of employment occurred. 
 5.6 Termination by Mutual Agreement of the
Parties. The Executive’s employment pursuant to this Agreement may be terminated at any time upon mutual agreement, in writing, of the Parties. Any such termination of employment shall have the consequences specified in such writing. 

5.7 Survival of Certain Provisions. Sections 6 and 18 shall survive the termination of this Agreement. 

  
 7. 

 6. CONFIDENTIAL AND PROPRIETARY INFORMATION;
NONSOLICITATION. 
 6.1 As a condition of employment, Executive agrees to execute and abide by the Employee
Confidential Information and Inventions Agreement attached hereto as EXHIBIT B. 
 6.2 While employed by the
Company and for one year thereafter, the Executive agrees that in order to protect the Company’s trade secrets and confidential and proprietary information from unauthorized use, the Executive will not, either directly or through others,
solicit or attempt to solicit any employee, consultant or independent contractor of the Company to terminate his or her relationship with the Company in order to become an employee, consultant or independent contractor to or for any other person or
business entity. 
 7. ASSIGNMENT AND BINDING EFFECT. 

This Agreement shall be binding upon and inure to the benefit of the Executive and the Executive’s heirs, executors, personal
representatives, assigns, administrators and legal representatives. Because of the unique and personal nature of the Executive’s duties under this Agreement, neither this Agreement nor any rights or obligations under this Agreement shall be
assignable by the Executive. This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives. 

8. CHOICE OF LAW. 

This Agreement shall be construed and interpreted in accordance with the internal laws of the State of California. 

9. INTEGRATION. 

This Agreement, including Exhibit A and Exhibit B, contains the complete, final and exclusive agreement of the Parties
relating to the terms and conditions of the Executive’s employment and the termination of the Executive’s employment, and supersedes all prior and contemporaneous oral and written employment agreements or arrangements between the Parties
including the Prior Agreement except as indicated herein. 
 10. AMENDMENT. 

Except as otherwise provided for in this Agreement, this Agreement cannot be amended or modified except by a written agreement signed by the
Executive and the Company as directed by the Board. 
 11. WAIVER. 

No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party
against whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach. 

  
 8. 

 12. SEVERABILITY. 

The finding by a court of competent jurisdiction of the unenforceability, invalidity or illegality of any provision of this Agreement shall not
render any other provision of this Agreement unenforceable, invalid or illegal. Such court shall have the authority to modify or replace the invalid or unenforceable term or provision with a valid and enforceable term or provision which most
accurately represents the Parties’ intention with respect to the invalid or unenforceable term or provision. 
 13.
INTERPRETATION; CONSTRUCTION. 
 The headings set forth in this Agreement are for convenience of reference
only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but the Executive has been encouraged to consult with, and have consulted with, the Executive’s own
independent counsel and tax advisors with respect to the terms of this Agreement. The Parties acknowledge that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and any rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 

14. REPRESENTATIONS AND WARRANTIES. 

The Executive represents and warrants that the Executive is not restricted or prohibited, contractually or otherwise, from entering into and
performing each of the terms and covenants contained in this Agreement, and that the Executive’s execution and performance of this Agreement will not violate or breach any other agreements between the Executive and any other person or entity.

 15. COUNTERPARTS; FACSIMILE. 

This Agreement may be executed in two counterparts, each of which shall be deemed an original, all of which together shall contribute one and
the same instrument. Facsimile signatures shall be treated the same as original signatures. 
 16. DISPUTE
RESOLUTION. 
 To ensure the timely and economical resolution of disputes that may arise in connection with
Executive’s employment with the Company, Executive and the Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this
Agreement, Executive’s employment, or the termination of Executive’s employment, including but not limited to statutory claims, shall be resolved to the fullest extent permitted by law by final, binding and confidential arbitration, by a
single arbitrator, in San Diego, California, conducted by JAMS, Inc. (“JAMS”) under the then applicable JAMS rules (which can be found at the following web address:
http://www.jamsadr.com/rulesclauses). By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. The Company
acknowledges that Executive will have the 

  
 9. 

 
right to be represented by legal counsel at any arbitration proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to
award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall be authorized to
award any or all remedies that Executive or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required of the Executive if the dispute
were decided in a court of law. Nothing in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any awards or
orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction. 

17. TRADE SECRETS. 

It is the understanding of both the Company and the Executive that the Executive shall not divulge to the Company and/or its subsidiaries any
confidential information or trade secrets belonging to others, including the Executive’s former employers, nor shall the Company and/or its Affiliates seek to elicit from the Executive any such information. Consistent with the foregoing, the
Executive shall not provide to the Company and/or its Affiliates, and the Company and/or its Affiliates shall not request, any documents or copies of documents containing such information. 

18. ADVERTISING WAIVER. 

The Executive agrees to permit the Company and/or its affiliates, subsidiaries, or joint ventures currently existing or which shall be
established during Executive’s employment by the Company (collectively, “Affiliates”), and persons or other organizations authorized by the Company and/or its Affiliates, to use, publish and distribute
advertising or sales promotional literature concerning the products and/or services of the Company and/or its Affiliates, or the machinery and equipment used in the provision thereof, in which the Executive’s name and/or pictures of the
Executive taken in the course of the Executive’s provision of services to the Company and/or its Affiliates, appear. The Executive hereby waives and releases any claim or right the Executive may otherwise have arising out of such use,
publication or distribution. The Company agrees that, following termination of the Executive’s employment, it will not create any new such literature containing the Executive’s name and/or pictures without the Executive’s prior
written consent. 
 19. APPLICATION OF SECTION 409A. 

All benefits under this Agreement are intended to qualify for an exemption from application of Section 409A of the Code and the
regulations and other guidance thereunder and any state law of similar effect (“Section 409A”) or to comply with its requirements to the extent necessary to avoid adverse personal tax consequences
under Section 409A, and any ambiguities herein shall be interpreted accordingly. 

  
 10. 

 Notwithstanding anything to the contrary set forth herein, any severance benefits that constitute
“deferred compensation” within the meaning of Section 409A shall not commence in connection with the Executive’s termination of employment unless and until the Executive has also incurred a “separation from service” (as
such term is defined in Treasury Regulation Section 1.409A-l(h)) (“Separation From Service”), unless the Company reasonably determines that such amounts may be provided to the Executive without causing the Executive to
incur the additional 20% tax under Section 409A. 
 It is intended that each installment of the severance benefit payments provided for
in this Agreement is a separate “payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). For the avoidance of doubt, it is intended that payments of the severance benefits set forth in this Agreement satisfy, to the
greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if the Company (or, if applicable, the successor entity
thereto) determines that the severance benefits constitute “deferred compensation” under Section 409A and the Executive is, on the termination of service, a “specified employee” of the Company or any successor entity
thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the severance benefit
payments shall be delayed until the earlier to occur of: (i) the date that is six months and one day after the Executive’s Separation From Service, or (ii) the date of the Executive’s death. None of the severance benefits will be
paid or otherwise delivered prior to the effective date of the Release. If the severance benefits are not covered by one or more exemptions from the application of Section 409A and the Release could become effective in the calendar year
following the calendar year in which Executive’s Separation From Service occurs, the Release will not be deemed effective any earlier than the Release Deadline. Except to the minimum extent that payments must be delayed because Executive is a
“specified employee” or until the effectiveness of the Release, all amounts will be paid as soon as practicable in accordance with the Company’s normal payroll practices. 

The severance benefits are intended to qualify for an exemption from application of Section 409A or comply with its requirements to the
extent necessary to avoid adverse personal tax consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly. 

20. PARACHUTE PAYMENTS. 

Except as otherwise provided in an agreement between the Executive and the Company, if any payment or benefit the Executive would receive from
the Company or otherwise in connection with a Change in Control (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount (as defined herein). The “Reduced Amount” shall be
either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into
account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Executive’s receipt, on an after-tax basis, of the greater amount of the
Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount,
reduction shall occur in the manner that results in the greatest economic benefit to Executive. 

  
 11. 

 The independent registered public accounting firm engaged by the Company for general audit
purposes as of the day prior to the effective date of the event described in Section 280G(b)(2)(A)(i) of the Code shall perform the foregoing calculations. If the independent registered public accounting firm so engaged by the Company is
serving as accountant or auditor for the individual, entity or group effecting such event, the Company shall appoint a nationally recognized independent registered public accounting firm to make the determinations required hereunder. The Company
shall bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder. The independent registered public accounting firm engaged to make the determinations hereunder shall
provide its calculations, together with detailed supporting documentation, to the Company and Executive within thirty (30) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the
Company or Executive) or such other time as reasonably requested by the Company or Executive. Any good faith determinations of the independent registered public accounting firm made hereunder shall be final, binding and conclusive upon the Company
and Executive. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 12. 

 IN WITNESS WHEREOF, the
Parties have executed this Agreement as of the date first above written. 
  

			
	REGULUS THERAPEUTICS INC.
		
	By:	 	/s/ Kleanthis G. Xanthopoulos
	Name:	 	Kleanthis G. Xanthopoulos, Ph.D.
	Title:	 	President & CEO

  

	
	
	/s/ David Szekeres, J.D.
	DAVID SZEKERES, J.D.

 [SIGNATURE PAGE TO EMPLOYMENT AGREEMENT] 

 EXHIBIT A 

RELEASE AND WAIVER OF CLAIMS 

In consideration of the payments and other benefits set forth in Section 5 of the Employment Agreement dated
                , 2014, to which this form is attached (the “Employment Agreement”), I,
                , hereby furnish Regulus Therapeutics Inc. (the “Company”) with the following release and waiver (“Release and
Waiver”). 
 In exchange for the consideration provided to me by the Employment Agreement that I am not otherwise entitled to
receive, I hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns
(collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing
this Release and Waiver (collectively, the “Released Claims”). The Released Claims include, but are not limited to: (1) all claims arising out of or in any way related to my employment with the Company or the termination of
that employment; (2) all claims related to my compensation or benefits from the Company, including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or
any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort-claims, including, but not limited to, claims for
fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees,
or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990 (as amended), the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the
federal Family and Medical Leave Act (as amended), the California Labor Code, and the California Fair Employment and Housing Act (as amended). Notwithstanding the foregoing, the following are not included in the Released Claims (the
“Excluded Claims”): (a) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party, the charter, bylaws, or operating agreements of the Company,
or under applicable law; (b) any rights or claims to unemployment compensation, funds accrued in my 401k account, or any vested equity incentives; (c) any rights that are not waivable as a matter of law; or (d) any claims arising from
the breach of this Release and Waiver. I hereby represent and warrant that, other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released Claims. 

I also acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the
debtor.” I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to any claims I may have against the Company. 

 I acknowledge that, among other rights, I am waiving and releasing any rights I may have under
ADEA, that this Release and Waiver is knowing and voluntary, and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of age or
older upon execution of this Release and Waiver, I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to claims under the ADEA
which may arise after this Release and Waiver is executed; (b) I should consult with an attorney prior to executing this Release and Waiver; (c) I have twenty-one (21) days in which to consider this Release and Waiver (although I may
choose voluntarily to execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent to this Release and Waiver; and (e) this Release and Waiver shall not be
effective until the seven (7) day revocation period has expired without my having previously revoked this Release and Waiver. 
 If I
am less than 40 years of age upon execution of this Release and Waiver, I acknowledge that I have the right to consult with an attorney prior to executing this Release and Waiver (although I may choose voluntarily not to do so); and that I have ten
(10) days from the date of termination of my employment with the Company in which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver earlier). 

I acknowledge my continuing obligations under my Employee Confidentiality and Inventions Assignment Agreement a copy of which is attached
hereto (the “CIAA”). Pursuant to the CIAA, I understand that among other things, I must not use or disclose any confidential or proprietary information of the Company and I must immediately return all Company property and documents
(including all embodiments of proprietary information) and all copies thereof in my possession or control. I understand and agree that my right to the severance benefits I am receiving is in exchange for my agreement to the terms of this Release and
Waiver and is contingent upon my continued compliance with my CIAA. 
 This Release and Waiver, including the CIAA, constitutes the
complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein. This Release
and Waiver may only be modified by a writing signed by both me and a duly authorized officer of the Company. 
  

									
					
	Date:	 	 	 		 	By:	 	 
		 		 		 		 	

 EXHIBIT B 

EMPLOYEE CONFIDENTIAL INFORMATION AND INVENTIONS
AGREEMENT

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