Document:

EX-10.2

 Exhibit 10.2 
 NEITHER THIS WARRANT NOR THE SHARES OF CAPITAL STOCK ISSUED UPON ITS EXERCISE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL) REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THIS WARRANT MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF THIS WARRANT. 
 WARRANT AGREEMENT 
 To Purchase Shares of the Series C Preferred Stock of

 CONCERT PHARMACEUTICALS, INC. 
 Dated as of December 22, 2011 (the “Effective Date”) 

WHEREAS, CONCERT PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), has entered into a Loan and Security
Agreement of even date herewith (the “Loan Agreement”) with Hercules Technology Growth Capital, Inc. (the “Warrantholder”); 
 WHEREAS, the Company desires to grant to Warrantholder, in consideration for, among other things, the financial accommodations provided for in the Loan Agreement, the right to purchase shares of its
Series C Preferred Stock pursuant to this Warrant Agreement (the “Warrant”); 
 NOW, THEREFORE, in consideration of
the Warrantholder executing and delivering the Loan Agreement and providing the financial accommodations contemplated therein, and in consideration of the mutual covenants and agreements contained herein, the Company and Warrantholder agree as
follows: 
  

	 	SECTION 1.	GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK. 

 For value received, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe for and purchase,
from the Company, (i) on the Effective Date, 200,000 fully paid and non-assessable shares of the Preferred Stock (as defined below), and (ii) on the date, if any, that Company obtains the proceeds of the Second Tranche under the Loan
Agreement, 200,000 fully paid and non-assessable shares of the Preferred Stock, in each case at a purchase price of $2.50 per share (the “Exercise Price”). The number and Exercise Price of such shares are subject to adjustment as
provided in Section 8. As used herein, the following terms shall have the following meanings: 
 “Act”
means the Securities Act of 1933, as amended. 
 “Charter” means the Company’s Articles of Incorporation,
Certificate of Incorporation or other constitutional document, as may be amended from time to time. 
 “Common
Stock” means the Company’s common stock; 
 “Initial Public Offering” means the initial
underwritten public offering of the Company’s Common Stock pursuant to a registration statement under the Act, which registration statement has been declared effective by the Securities and Exchange Commission (“SEC”);

 “Investor Rights Agreement” means that certain Third Amended and Restated Investor Rights Agreement, dated as
of June 1, 2009, by and among the Company and certain holders of its capital stock, as it may be amended or restated from time to time. 
 “Merger Event” means a merger or consolidation involving the Company in which the Company is not the surviving entity, or in which the outstanding shares of the Company’s capital
stock are otherwise converted into or exchanged for shares of capital stock of another entity. 

  
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 “Preferred Stock” means the Series C Preferred Stock of the Company and any
other stock into or for which the Series C Preferred Stock has been converted or exchanged, and upon and after the occurrence of an event which results in the automatic or voluntary conversion, redemption or retirement of all (but not less than all)
of the outstanding shares of such Preferred Stock, including, without limitation, the consummation of an Initial Public Offering of the Common Stock in which such a conversion occurs, then from and after the date upon which such outstanding shares
are so converted, redeemed or retired, “Preferred Stock” shall mean such Common Stock; and 
 “Purchase
Price” means, with respect to any exercise of this Warrant, an amount equal to the Exercise Price as of the relevant time multiplied by the number of shares of Preferred Stock requested to be exercised under this Warrant pursuant to such
exercise. 
 “Registration Rights Agreement” means that certain Third Amended and Restated Registration Rights
Agreement, dated as of June 1, 2009, by and among the Company and certain holders of the Company’s capital stock, as amended, and as it may be further amended or restated from time to time. 

 

	 	SECTION 2.	TERM OF THE WARRANT. 

 Except as otherwise provided for herein, the term of this Warrant and the right to purchase Preferred Stock as granted herein (the “Warrant) shall commence on the Effective Date and shall be
exercisable for a period ending upon the sooner to occur of (i) ten (10) years after the Effective Date; or (ii) five (5) years after the Initial Public Offering. 

 

	 	SECTION 3.	EXERCISE OF THE PURCHASE RIGHTS. 

 (a) Exercise. The purchase rights set forth in this Warrant are exercisable by the Warrantholder, in whole or in part, at any time, or from time to time, prior to the expiration of the term set
forth in Section 2, by tendering to the Company at its principal office a notice of exercise in the form attached hereto as Exhibit I (the “Notice of Exercise”), duly completed and executed. Promptly upon receipt of the
Notice of Exercise and the payment of the Purchase Price in accordance with the terms set forth below, and in no event later than ten (10) days (three (3) business days, if the Company’s securities are then publicly traded)
thereafter, the Company shall issue to the Warrantholder a certificate for the number of shares of Preferred Stock purchased and shall execute the acknowledgment of exercise in the form attached hereto as Exhibit II (the
“Acknowledgment of Exercise”) indicating the number of shares which remain subject to future purchases, if any. 
 The Purchase Price may be paid at the Warrantholder’s election either (i) by cash or check, or (ii) by surrender of all or a portion of the Warrant for shares of Preferred Stock to be
exercised under this Warrant and, if applicable, a new warrant of like tenor representing the remaining number of shares purchasable hereunder, as determined below (“Net Issuance”). If the Warrantholder elects the Net Issuance
method, the Company will issue Preferred Stock in accordance with the following formula: 
  

					
		 		 	X = Y(A-B)
		 		 	            A
			
	Where:	 	X =	 	the number of shares of Preferred Stock to be issued to the Warrantholder.
			
		 		 	 Y = the number of shares of Preferred Stock requested to be exercised under this Warrant (including the number of shares cancelled in payment of the
Purchase Price).

			
		 		 	 A = the fair market value of one (1) share of Preferred Stock at the time of issuance of such shares of Preferred Stock.

			
		 	B =	 	the Exercise Price.

 For purposes of the above calculation, fair market value of Preferred Stock shall mean with respect to
each share of Preferred Stock: 
 (i) if the exercise is in connection with an Initial Public Offering, and if
the Company’s Registration Statement relating to such Initial Public Offering has been declared 

  
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effective by the SEC, then the fair market value per share shall be the product of (x) the initial “Price to Public” of the Common Stock specified in the final prospectus with
respect to the offering and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such exercise; 
 (ii) if the exercise is after, and not in connection with an Initial Public Offering, and: 
 (A) if the Common Stock is traded on a securities exchange, the fair market value shall be deemed to be the product of (x) the closing price on the day the Warrant is exercised and (y) the
number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such exercise; or 
 (B) if the Common Stock is traded over-the-counter, the fair market value shall be deemed to be the product of (x) the average of the closing bid and asked prices quoted on the NASDAQ system (or
similar system) on the day the Warrant is exercised and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such exercise; 

(iii) if at any time the Common Stock is not listed on any securities exchange or quoted in the over-the-counter market,
the fair market value of Preferred Stock shall be the product of (x) the price per share which the Company could obtain from a willing buyer in an arms’ length transaction for shares of Common Stock sold by the Company, from authorized but
unissued shares, as determined in good faith by its Board of Directors and (y) the number of shares of Common Stock into which each share of Preferred Stock is convertible at the time of such exercise, provided that, in the event that the
exercise is in connection with a Merger Event in which the Company is not the surviving entity, the fair market value of Preferred Stock shall be deemed to be the per share value received by the holders of the Company’s Preferred Stock on a
common equivalent basis pursuant to such Merger Event. 
 Upon partial exercise by either cash or Net Issuance, the Company
shall promptly issue a new Warrant representing the remaining number of shares purchasable hereunder. All other terms and conditions of such new Warrant shall be identical to those contained herein, including, but not limited to the Effective Date
hereof. 
 (b) Exercise Prior to Expiration. To the extent this Warrant is not previously exercised as to all Preferred
Stock subject hereto, and if the fair market value of one share of the Preferred Stock is greater than the Exercise Price then in effect, this Warrant shall be deemed automatically exercised pursuant to Section 3(a) (even if not surrendered)
immediately before its expiration. For purposes of such automatic exercise, the fair market value of one share of the Preferred Stock upon such expiration shall be determined pursuant to Section 3(a). To the extent this Warrant or any portion
thereof is deemed automatically exercised pursuant to this Section 3(b), the Company agrees to promptly notify the Warrantholder of the number of shares of Preferred Stock, if any, the Warrantholder is to receive by reason of such automatic
exercise. 
  

	 	SECTION 4.	RESERVATION OF SHARES. 

 During the term of this Warrant, the Company will at all times have authorized and reserved a sufficient number of shares of its Preferred Stock to provide for the exercise of the rights to purchase
Preferred Stock as provided for herein, and shall have authorized and reserved a sufficient number of shares of its Common Stock to provide for the conversion of the Preferred Stock issuable hereunder. 

 

	 	SECTION 5.	NO FRACTIONAL SHARES OR SCRIP. 

 No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant, but in lieu of such fractional shares the Company shall make a cash payment therefor upon
the basis of the Exercise Price then in effect. 
  

	 	SECTION 6.	REGISTRATION RIGHTS; NO RIGHTS AS STOCKHOLDER. 

 The Registration Rights Agreement has been amended to provide that the Common Stock into which the Preferred Stock issuable upon exercise of this Warrant is convertible shall be “Registrable
Shares”, and Warrantholder shall have the rights of, and be subject to the obligations of, a “Holder” under the Registration Rights Agreement. This Agreement does not entitle the Warrantholder to any voting rights or other rights as a
stockholder of the Company prior to the exercise of this Warrant. 

  
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	 	SECTION 7.	WARRANTHOLDER REGISTRY. 

 The Company shall maintain a registry showing the name and address of the registered holder of this Warrant. Warrantholder’s initial address, for purposes of such registry, is set forth in
Section 12(e) below. Warrantholder may change such address by giving written notice of such changed address to the Company. 
  

	 	SECTION 8.	ADJUSTMENT RIGHTS. 

The Exercise Price and the number of shares of Preferred Stock purchasable hereunder are subject to adjustment, as follows: 

(a) Merger Event. If at any time there shall be Merger Event, then, as a part of such Merger Event, lawful provision shall be made
so that the Warrantholder shall thereafter be entitled to receive, upon exercise of this Warrant, the number of shares of preferred stock or other securities or property of the successor corporation resulting from such Merger Event that would have
been issuable if Warrantholder had exercised this Warrant immediately prior to the Merger Event. In any such case, appropriate adjustment (as determined in good faith by the Company’s Board of Directors) shall be made in the application of the
provisions of this Warrant with respect to the rights and interests of the Warrantholder after the Merger Event to the end that the provisions of this Warrant (including adjustments of the Exercise Price and number of shares of Preferred Stock
purchasable) shall be applicable in their entirety, and to the greatest extent possible. Without limiting the foregoing, in connection with any Merger Event, upon the closing thereof, the successor or surviving entity shall assume the obligations of
this Warrant. In connection with a Merger Event and upon Warrantholder’s written election to the Company at least three (3) business days prior to the closing thereof, the Company shall cause this Warrant to be exchanged for the
consideration that Warrantholder would have received if Warrantholder chose to exercise its right to have shares issued pursuant to the Net Issuance provisions of this Warrant without actually exercising such right, acquiring such shares and
exchanging such shares for such consideration 
 (b) Reclassification of Shares. Except as set forth in
Section 8(a), if the Company at any time shall, by combination, reclassification, exchange or subdivision of securities or otherwise, change any of the securities as to which purchase rights under this Warrant exist into the same or a different
number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities which were
subject to the purchase rights under this Warrant immediately prior to such combination, reclassification, exchange, subdivision or other change. 
 (c) Subdivision or Combination of Shares. If the Company at any time shall combine or subdivide its Preferred Stock, (i) in the case of a subdivision, the Exercise Price shall be
proportionately decreased, and the number of shares of Preferred Stock issuable upon exercise of this Warrant shall be proportionately increased, or (ii) in the case of a combination, the Exercise Price shall be proportionately increased, and
the number of shares of Preferred Stock issuable upon the exercise of this Warrant shall be proportionately decreased. 
 (d)
Stock Dividends. If the Company at any time while this Warrant is outstanding and unexpired shall: 
 (i)
pay a dividend with respect to the Preferred Stock payable in Preferred Stock, then the Exercise Price shall be adjusted, from and after the date of determination of stockholders entitled to receive such dividend or distribution, to that price
determined by multiplying the Exercise Price in effect immediately prior to such date of determination by a fraction (A) the numerator of which shall be the total number of shares of Preferred Stock outstanding immediately prior to such
dividend or distribution, and (B) the denominator of which shall be the total number of shares of Preferred Stock outstanding immediately after such dividend or distribution; or 

(ii) make any other distribution with respect to Preferred Stock (or stock into which the Preferred Stock is convertible),
except any distribution specifically provided for in any other 

  
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clause of this Section 8, then, in each such case, provision shall be made by the Company such that the Warrantholder shall receive upon exercise of this Warrant a proportionate share of any
such distribution as though it were the holder of the Preferred Stock (or other stock for which the Preferred Stock is convertible) as of the record date fixed for the determination of the stockholders of the Company entitled to receive such
distribution. 
 (e) Antidilution Rights. Antidilution rights applicable to the Preferred Stock purchasable hereunder are
as set forth in the Charter and shall be applicable with respect to the Preferred Stock issuable hereunder. The Company shall promptly provide the Warrantholder with any restatement, amendment, modification or waiver of the Charter; provided,
that no such amendment, modification or waiver shall impair or reduce the antidilution rights applicable to the Preferred Stock as of the date hereof unless such amendment, modification or waiver affects the rights of Warrantholder with respect to
the Preferred Stock in the same manner (on a proportionate basis) as it affects all other holders of Preferred Stock. For the avoidance of doubt, there shall be no duplicate anti-dilution adjustment pursuant to this subsection (e), the forgoing
subsection (d) and the Charter. 
 (f) Notice of Adjustments. If: (i) the Company shall declare any dividend or
distribution upon its shares of Preferred Stock, whether in stock, cash, property or other securities; (ii) the Company shall offer for subscription (other than contractual preemptive rights) prorata to the holders of any of its Preferred Stock
any additional shares of stock of any class or other rights; (iii) there shall be any Merger Event; (iv) there shall be an Initial Public Offering; (v) the Company shall sell, lease, license or otherwise transfer all or substantially
all of its assets in a single transaction or series of related transactions, other than sales of inventory in the Company’s ordinary course of business; or (vi) there shall be any voluntary dissolution, liquidation or winding up of the
Company; then, in connection with each such event, the Company shall send to the Warrantholder: (A) at least twenty (20) days’ prior written notice of the date on which the books of the Company shall close or a record shall be taken
for such dividend, distribution, subscription rights (specifying the date on which the holders of Preferred Stock shall be entitled thereto) or for determining rights to vote in respect of such Merger Event, dissolution, liquidation or winding up;
(B) in the case of any such Merger Event, sale, lease, license or other transfer of all or substantially all assets, dissolution, liquidation or winding up, at least twenty (20) days’ prior written notice of the date when the same
shall take place (and specifying the date on which the holders of Preferred Stock shall be entitled to exchange their Preferred Stock for securities or other property deliverable upon such Merger Event, dissolution, liquidation or winding up); and
(C) in the case of an Initial Public Offering, the Company shall give the Warrantholder at least twenty (20) days’ written notice prior to the effective date thereof. 

Each such written notice shall set forth, in reasonable detail, to the extent known, (i) the event requiring the notice, and
(ii) if any adjustment is required to be made, (A) the amount of such adjustment, (B) the method by which such adjustment was calculated, (C) the adjusted Exercise Price (if the Exercise Price has been adjusted), and (D) the
number of shares subject to purchase hereunder after giving effect to such adjustment, and shall be given in the manner set forth in Section 12(e). 
 (g) Timely Notice. Failure to timely provide such notice required by subsection (f) above shall entitle Warrantholder to retain the benefit of the applicable notice period notwithstanding
anything to the contrary contained in any insufficient notice received by Warrantholder. 
  

	 	SECTION 9.	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. 

 The Company makes the following representations to the Warrantholder as of the Effective Date: 
 (a) Reservation of Preferred Stock. The Preferred Stock issuable upon exercise of the Warrantholder’s rights has been duly and validly reserved and, when issued in accordance with the
provisions of this Warrant, will be validly issued, fully paid and non-assessable, and will be free of any taxes, liens, charges or encumbrances of any nature whatsoever; provided, that the Preferred Stock issuable pursuant to this Warrant
may be subject to restrictions on transfer hereunder and under state and/or federal securities laws. The Company has made available to the Warrantholder true, correct and complete copies of its Charter and current bylaws. The issuance of
certificates for shares of Preferred Stock upon exercise of this Warrant shall be made without charge to the Warrantholder for any issuance tax in respect thereof, or other cost incurred by the Company in connection with such exercise and the
related issuance of shares of 

  
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Preferred Stock; provided, that the Company shall not be required to pay any tax which may be payable in respect of any transfer and the issuance and delivery of any certificate in a name
other than that of the Warrantholder. 
 (b) Due Authority. The execution and delivery by the Company of this Warrant and
the performance of all obligations of the Company hereunder, including the grant to Warrantholder of the right to acquire the shares of Preferred Stock and the Common Stock into which such Preferred Stock may be converted, have been duly authorized
by all necessary corporate action on the part of the Company. The execution and delivery of this Warrant: (1) do not violate the Charter or the Company’s current bylaws; (2) do not contravene any law or governmental rule, regulation
or order applicable to it; and (3) do not contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument to which it is a party or by which it is bound. This Warrant constitutes a valid and
binding agreement of the Company, enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’
rights generally, and (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 
 (c) Consents and Approvals. Subject to the accuracy of the representations and covenants of the Warrantholder contained in Section 10 hereof, no consent or approval of, giving of notice to,
registration with, or taking of any other action in respect of any state, federal or other governmental authority or agency is required with respect to the execution, delivery and performance by the Company of its obligations under this Warrant,
except for the filing of notices pursuant to Regulation D under the Act and any filing required by applicable state securities law, which filings will be effective by the time required thereby. 

(d) Issued Securities. All issued and outstanding shares of Common Stock, Preferred Stock or any other securities of the Company
have been duly authorized and validly issued and are fully paid and nonassessable. All outstanding shares of Common Stock, Preferred Stock and any other securities were issued in full compliance with all federal and state securities laws. In
addition, as of the date immediately preceding the date of this Warrant: 
 (i) The authorized capital of the
Company consists of (A) 83,716,667 shares of Common Stock, of which 7,289,956 shares are issued and outstanding, and (B) 62,916,667 shares of preferred stock of all series, of which (1) 10,000,000 shares have been designated as Series
A Convertible Preferred Stock, all of which are issued and outstanding and each share is convertible into one (1) share of Common Stock; (2) 24,250,000 shares have been designated Series B Convertible Preferred Stock, all of which are
issued and outstanding and each share is convertible into one (1) share of Common Stock; (3) 22,000,000 shares have been designated Series C Convertible Preferred Stock, of which 15,130,400 shares are issued and outstanding and each share
is convertible into one (1) share of Common Stock; and 6,666,667 shares have been designated Series D Convertible Preferred Stock, all of which are issued and outstanding and each share is convertible into one (1) share of Common Stock.

 (ii) The Company has reserved 12,500,000 shares of Common Stock for issuance under its 2006 Amended and
Restated Stock Option Plan, under which 188,080 shares of Common Stock have been issued upon the exercise of options, options to purchase 11,031,975 shares of Common Stock are outstanding and 281,876 shares of restricted stock are outstanding. Other
than as set forth in clause (i) above and this clause (ii), there are no other options, warrants, conversion privileges or other rights presently outstanding to purchase or otherwise acquire any authorized but unissued shares of the
Company’s capital stock or other securities of the Company. 
 (iii) Except as set forth in the Investor
Rights Agreement, no stockholder of the Company has preemptive rights to purchase new issuances of the Company’s capital stock. 
 (e) Other Commitments to Register Securities. Except as set forth in the Registration Rights Agreement, the Company is not, pursuant to the terms of any other agreement currently in existence,
under any obligation to register under the Act any of its presently outstanding securities or any of its securities which may hereafter be issued. 
 (f) Exempt Transaction. Subject to the accuracy of the Warrantholder’s representations in Section 10, the issuance of the Preferred Stock upon exercise of this Warrant, and the issuance
of the 

  
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Common Stock upon conversion of the Preferred Stock, will each constitute a transaction exempt from (i) the registration requirements of Section 5 of the Act, and (ii) the
qualification requirements of the applicable state securities laws. 
 (g) Compliance with Rule 144. If the Warrantholder
proposes to sell Preferred Stock issuable upon the exercise of this Warrant, or the Common Stock into which it is convertible, in compliance with Rule 144 promulgated by the SEC, then, upon Warrantholder’s written request to the Company, the
Company shall furnish to the Warrantholder, within ten days after receipt of such request, a written statement indicating whether the Company is in compliance with the filing requirements of the SEC as set forth in such Rule, as such Rule may be
amended from time to time. 
 (h) Information Rights. During the term of this Warrant, the Warrantholder shall be
entitled to the rights afforded to the Major Stockholders (as defined in the Investor Rights Agreement) pursuant to Section 2 of the Investor Rights Agreement. 
  

	 	SECTION 10.	REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER. 

 This Warrant has been entered into by the Company in reliance upon the following representations and covenants of the Warrantholder, which representations and covenants are made on the Effective Date and
upon each exercise of this Warrant (including any automatic exercise): 
 (a) Investment Purpose. This Warrant and the
right to acquire Preferred Stock, the Preferred Stock issuable upon exercise of the Warrantholder’s rights contained herein and the Common Stock issuable upon conversion of the Preferred Stock are and will be acquired for investment and not
with a view to the sale or distribution of any part thereof, and the Warrantholder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption. Warrantholder has not been
organized, reorganized or recapitalized specifically for the purpose of investing in the Company. 
 (b) Private Issue.
The Warrantholder understands (i) that the Preferred Stock issuable upon exercise of this Warrant and the Common Stock issuable upon conversion of the Preferred Stock is not registered under the Act or qualified under applicable state
securities laws on the ground that the issuance contemplated by this Warrant will be exempt from the registration and qualifications requirements thereof, and (ii) that the Company’s reliance on such exemption is predicated on the
representations set forth in this Section 10. 
 (c) Financial Risk. The Warrantholder has sufficient knowledge and
experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment in the Company. The Warrantholder has made such inquiry concerning
the Company and its business and personnel as it has deemed appropriate. 
 (d) Risk of No Registration. The
Warrantholder understands that if the Company does not register shares of capital stock with the SEC pursuant to Section 12 of the Securities Exchange Act of 1934 (the “1934 Act”), or file reports pursuant to Section 15(d)
of the 1934 Act, or if a registration statement covering the securities under the Act is not in effect when the Warrantholder desires to sell (i) this Warrant or the rights to purchase Preferred Stock pursuant to this Warrant, (ii) the
Preferred Stock issuable upon exercise of this Warrant or (iii) the Common Stock issuable upon conversion of the Preferred Stock issuable upon exercise of this Warrant, it may be required to hold such securities for an indefinite period. The
Warrantholder also understands that any sale of (A) this Warrant or its rights hereunder to purchase Preferred Stock or (B) Preferred Stock issued or issuable hereunder or the Common Stock issuable upon conversion thereof, which might be
made by it in reliance upon Rule 144 under the Act may be made only in accordance with the terms and conditions of that Rule. 

(e) Accredited Investor. Warrantholder is an “accredited investor” within the meaning of Rule 501 of Regulation D, as
presently in effect, under the Act. 
 (f) Market Stand-Off Agreement. In connection with the Initial Public Offering,
the Warrantholder, if requested by the Company and the managing underwriter shall agree, by executing and delivering such form of agreement as the Company and such underwriter shall reasonably request, not to sell publicly or otherwise transfer or
dispose of this Warrant, the shares of Preferred Stock or other shares 

  
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of capital stock issued upon exercise of this Warrant (or the conversion of any such shares) or other securities of the Company held by the Warrantholder prior to the effective date of such
registration statement for a specified period of time immediately following the effective date of such registration statement, such period of time not to exceed one hundred eighty (180) days; provided that (i) such one-hundred eighty
(180) day period may be extended on one occasion by the managing underwriter to the extent necessary to prevent the managing underwriter(s) from violating Section 2711(f)(4) of the rules of the National Association of Securities Dealers,
Inc., as incorporated into the rules of the Financial Industry Regulatory Authority, or any similar successor provision (e.g., as the result of the publication or other distribution of a research report or public appearance concerning the Company);
(ii) such agreement shall not apply to resales of the Company’s securities purchased by the Warrantholder in a public market, and (iii) all persons who hold shares of Common Stock, or securities convertible into or exchangeable or
exercisable for shares of Common Stock, which in aggregate represent one percent (1%) or more of the shares of Common Stock then outstanding (including all securities convertible into or exchangeable or exercisable for shares of Common Stock,
on an as converted, exchanged or exercised basis), and all officers and directors of the Company, enter into similar agreements. Notwithstanding the foregoing, any discretionary waiver by an underwriter of a lock-up agreement shall not be effective
unless such underwriter also releases all other stockholders of the Company from the equivalent provisions and a pro rata portion of their respective lock-up agreements. 
 (g) Confidentiality. Except as provided in the Loan Agreement (for as long as such Loan Agreement remains in effect), the Warrantholder agrees that it shall keep confidential and shall not disclose
or use (other than to monitor its investment in the Corporation) any confidential, proprietary, or secret information that it has or may obtain from the Company, unless such confidential information (i) is known or becomes known to the public
in general (other than as a result of a breach of this Section 10(g), (ii) is or has been independently developed or conceived by the Warrantholder without use of the Company’s confidential information or (iii) is or has been
made known or disclosed to the Warrantholder by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that the Warrantholder may disclose confidential information (A) to
its attorneys, accountants, consultants and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company and negotiating the terms thereof or (B) as may otherwise be required
by law, court order or subpoena, provided that the Warrantholder promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any required disclosure. 

 

	 	SECTION 11.	TRANSFERS. 

Subject to compliance with applicable federal and state securities laws and subsection 11(c) below: 

(a) This Warrant and all rights hereunder are transferable, in whole or in part, without charge to the holder hereof (except for transfer
taxes) upon surrender of this Warrant properly endorsed. 
 (b) Each taker and holder of this Warrant, by taking or holding the
same, consents and agrees that the holder hereof, when this Warrant shall have been properly endorsed and its transfer recorded on the Company’s books, shall be treated by the Company and all other persons dealing with this Warrant as the
absolute owner hereof for any purpose and as the person entitled to exercise the rights represented by this Warrant. The transfer of this Warrant shall be recorded on the books of the Company upon receipt by the Company of a notice of transfer in
the form attached hereto as Exhibit III (the “Transfer Notice”), at its principal offices and the payment to the Company of all transfer taxes and other governmental charges imposed on such transfer. Until the Company receives such
Transfer Notice, the Company may treat the registered owner hereof as the owner for all purposes. 
 (c) Neither this Warrant
nor the shares of capital stock issuable upon exercise of this Warrant (or upon conversion of the shares of Preferred Stock issuable upon exercise of this Warrant) shall be sold or transferred unless either (i) they first shall have been
registered under the Act, or (ii) the Company first shall have been furnished with an opinion of legal counsel, reasonably satisfactory to the Company, to the effect that such sale or transfer is exempt from the registration requirements of the
Act. The Company shall not require a legal opinion in connection with any transfer by Warrantholder of this Warrant to an affiliate of Warrantholder, provided that such transferee is an “accredited investor” within the meaning of Rule 501

  
 8 

 
of Regulation D, as in effect under the Act. Notwithstanding any of the foregoing, this Warrant nor the shares of Preferred Stock issuable hereunder may be transferred to a competitor of the
Company (as determined in good faith by the Company’s Board of Directors) prior to a Qualified Public Offering (as defined in the Investor Rights Agreement). 
 Each certificate representing shares of capital stock issuable upon exercise of this Warrant shall bear a legend substantially in the following form: 

“The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be
offered, sold or otherwise transferred, pledged or hypothecated unless and until such securities are registered under such Act or, subject to Section 11 of that certain Warrant Agreement dated December 22, 2011 (the “Warrant”),
an opinion of counsel satisfactory to the Company is obtained to the effect that such registration is not required.” 
  

	 	SECTION 12.	MISCELLANEOUS. 

(a) Effective Date. The provisions of this Warrant shall be construed and shall be given effect in all respects as if it had been
executed and delivered by the Company on the date hereof. This Warrant shall be binding upon any successors or assigns of the Company. 
 (b) Remedies. In the event of any default hereunder, the non-defaulting party may proceed to protect and enforce its rights either by suit in equity and/or by action at law, including but not
limited to an action for damages as a result of any such default, and/or an action for specific performance for any default where the non-defaulting party will not have an adequate remedy at law and where damages will not be readily ascertainable.
The parties hereto hereby declare that it is impossible to measure in money the damages which will accrue to a party hereunder by reason of the other party’s failure to perform any of the obligations under this Warrant and agree that the terms
of this Warrant shall be specifically enforceable by each party. 
 (c) Attorney’s Fees. In any litigation,
arbitration or court proceeding between the Company and the Warrantholder relating hereto, the prevailing party shall be entitled to reasonable attorneys’ fees and expenses and all reasonable costs of proceedings incurred in enforcing this
Warrant. For the purposes of this Section 12(c), attorneys’ fees shall include without limitation reasonable fees incurred in connection with the following (to the extent reasonably taken): (i) contempt proceedings;
(ii) discovery; (iii) motions, proceedings or other activities of any kind in connection with an insolvency proceeding; (iv) garnishment, levy, and debtor and third party examinations; and (v) post-judgment motions and
proceedings, including without limitation any of the foregoing reasonably taken to collect or enforce any judgment. 
 (d)
Severability. In the event any one or more of the provisions of this Warrant shall for any reason be held invalid, illegal or unenforceable, the remaining provisions of this Warrant shall be unimpaired, and the invalid, illegal or
unenforceable provision shall be replaced by a mutually acceptable valid, legal and enforceable provision, which comes closest to the intention of the parties underlying the invalid, illegal or unenforceable provision. 

(e) Notices. Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration, service of process
or other communication that is required, contemplated, or permitted under this Warrant or with respect to the subject matter hereof shall be in writing, and shall be deemed to have been validly served, given, delivered, and received upon the earlier
of: (i) the day of transmission by facsimile or hand delivery if transmission or delivery occurs on a business day at or before 5:00 pm in the time zone of the recipient, or, if transmission or delivery occurs on a non-business day or after
such time, the first business day thereafter, or the first business day after deposit with an overnight express service or overnight mail delivery service; or (ii) the third calendar day after deposit in the United States mails, with proper
first class postage prepaid, and shall be addressed to the party to be notified as follows: 

  
 9 

 If to Warrantholder: 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC. 
 Legal Department 
 Attention: Chief Legal Officer and Manuel Henriquez 

400 Hamilton Avenue, Suite 310 
 Palo Alto, CA 94301 
 Facsimile: 650-473-9194 

Telephone: 650-289-3060 
 (i) If to the Company: 
 CONCERT PHARMACEUTICALS, INC. 

99 Hayden Ave., Suite 500 
 Lexington, MA 02421 
 Attention: Nancy Stuart, Chief Operating Officer 

Facsimile: 781-674-5305 
 Telephone: 781-674-5205 
 With a copy to: 

WilmerHale 
 60
State Street 
 Boston, MA 02109 
 Attention: David Redlick, Esq. 
 Facsimile: 617-526-5000 

Telephone: 617-526-6000 
 or to
such other address as each party may designate for itself by like notice. Delivery hereunder to any party to this Warrant shall be effective if made in accordance with this Section despite failure to deliver to any Person not a party to this
Warrant. 
 (f) Entire Agreement; Amendments. This Warrant constitutes the entire agreement and understanding of the
parties hereto in respect of the subject matter hereof, and supersedes and replaces in their entirety any prior proposals, term sheets, letters, negotiations or other documents or agreements, whether written or oral, with respect to the subject
matter hereof. None of the terms of this Warrant may be amended except by an instrument executed by each of the parties hereto. 

(g) Headings. The various headings in this Warrant are inserted for convenience only and shall not affect the meaning or
interpretation of this Warrant or any provisions hereof. 
 (h) No Strict Construction. The parties hereto have
participated jointly in the negotiation and drafting of this Warrant. In the event an ambiguity or question of intent or interpretation arises, this Warrant shall be construed as if drafted jointly by the parties hereto and no presumption or burden
of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Warrant. 
 (i)
No Waiver. No omission or delay by either party at any time to enforce any right or remedy reserved to it, or to require performance of any of the terms, covenants or provisions hereof by the other party at any time designated, shall be a
waiver of any such right or remedy to which such party is entitled, nor shall it in any way affect the right of such party to enforce such provisions thereafter. 
 (j) Survival. All agreements, representations and warranties contained in this Warrant or in any document delivered pursuant hereto shall be for the benefit of Warrantholder or the Company, as the
case may be, and shall survive the execution and delivery of this Warrant and the expiration or other termination of this Warrant. 

  
 10 

 (k) Governing Law. This Warrant have been negotiated and delivered to Warrantholder
in the Commonwealth of Massachusetts, and shall have been accepted by Warrantholder in the Commonwealth of Massachusetts. Delivery of Preferred Stock to Warrantholder by the Company under this Warrant is due in the Commonwealth of Massachusetts.
This Warrant shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction. 

(l) Consent to Jurisdiction and Venue. All judicial proceedings arising in or under or related to this Warrant may be brought in
any state or federal court of competent jurisdiction located in the Commonwealth of Massachusetts. By execution and delivery of this Warrant, each party hereto generally and unconditionally: (a) consents to personal jurisdiction in Suffolk
County, Commonwealth of Massachusetts; (b) waives any objection as to jurisdiction or venue in the Business Litigation Session of the Suffolk County Superior Court, Suffolk County, Commonwealth of Massachusetts; (c) agrees not to assert
any defense based on lack of jurisdiction or venue in the aforesaid court; and (d) irrevocably agrees to be bound by any judgment rendered thereby in connection with this Warrant. Service of process on any party hereto in any action arising out
of or relating to this Warrant shall be effective if given in accordance with the requirements for notice set forth in Section 12(e), and shall be deemed effective and received as set forth in Section 12(e). Nothing herein shall affect the
right to serve process in any other manner permitted by law or shall limit the right of either party to bring proceedings in the courts of any other jurisdiction. 
 (m) Mutual Waiver of Jury Trial. Because disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced and expert person and the
parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their disputes be resolved by a judge applying such applicable laws. EACH OF THE COMPANY AND WARRANTHOLDER SPECIFICALLY WAIVES ANY RIGHT
IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY THE COMPANY AGAINST WARRANTHOLDER OR ITS ASSIGNEE OR BY WARRANTHOLDER OR ITS
ASSIGNEE AGAINST THE COMPANY. This waiver extends to all such Claims, including Claims that involve Persons other than Company and Warrantholder; Claims that arise out of or are in any way connected to the relationship between the Company and
Warrantholder; and any Claims for damages, breach of contract, specific performance, or any equitable or legal relief of any kind, arising out of this Warrant. 
 (n) Counterparts. This Warrant and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts, and by different parties hereto in separate counterparts,
each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and the same instrument. 
 [Remainder of Page Intentionally Left Blank] 

  
 11 

 IN WITNESS WHEREOF, the parties hereto have caused this Warrant to be executed by its
officers thereunto duly authorized Effective Date. 
  

							
	 Company:
	 		 	CONCERT PHARMACEUTICALS, INC.
				
		 		 	By:	 	/s/ Roger D. Tung
		 		 		 	  

				
		 		 	Name:	 	Roger D. Tung
				
		 		 	Title:	 	Chief Executive Officer
			
	 WARRANTHOLDER:
	 		 	HERCULES TECHNOLOGY GROETH CAPITAL, INC.
		 		 	A Maryland corporation
				
		 		 	By:	 	  

				
		 		 	Name:	 	  

				
		 		 	Title:	 	  

 IN WITNESS WHEREOF, the parties hereto have caused this Warrant to be executed by its
officers thereunto duly authorized Effective Date. 
  

							
	 Company:
	 		 	CONCERT PHARMACEUTICALS, INC.
				
		 		 	By:	 	  

				
		 		 	Name:	 	  

				
		 		 	Title:	 	  

 

									
	 WARRANTHOLDER:
	 		 	  HERCULES TECHNOLOGY GROETH CAPITAL, INC.
					
		 		 		 	By:	 	/s/ K. Nicholas Maritsch
		 		 		 		 	  

		 		 		 		 	Name: K. Nicholas Maritsch
		 		 		 		 	Its: Associate General Counsel

  
 12 

 EXHIBIT I 
 NOTICE OF EXERCISE 
  

	To:	CONCERT PHARMACEUTICALS, INC. 

  

	(1)	The undersigned Warrantholder hereby elects to purchase [                ] shares of the
Series [    ] Preferred Stock of [                    ], pursuant to the terms of the Warrant dated the
[    ] day of [            ,         ] (the “Warrant”) between
[                        ] and the Warrantholder, and [CASH PAYMENT: tenders herewith payment of the Purchase Price in full,
together with all applicable transfer taxes, if any.] [NET ISSUANCE: elects pursuant to Section 3(a) of the Warrant to effect a Net Issuance.] 

  

	(2)	Please issue a certificate or certificates representing said shares of Series [    ] Preferred Stock in the name of the undersigned or in such other
name as is specified below. 

  

					
		 	  

		 	(Name)
		
		 	  

		 	(Address)
	
	HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
			
		 	By:	 	  

		 	Name: K. Nicholas Martitsch
		 	Its: Associate General Counsel

  
 13 

 EXHIBIT II 
 ACKNOWLEDGMENT OF EXERCISE 
 The undersigned CONCERT PHARMACEUTICALS, INC., hereby acknowledge
receipt of the “Notice of Exercise” from Hercules Technology Growth Capital, Inc. to purchase [                ] shares of the Series
[    ] Preferred Stock of [                    ], pursuant to the terms of the Warrant, and further acknowledges that
[                ] shares remain subject to purchase under the terms of the Warrant. 
  

							
	 COMPANY:
	 		 	[                    ]
				
		 		 	By:	 	  

				
		 		 	Title:	 	  

				
		 		 	Date:	 	  

  
 14 

 EXHIBIT III 
 TRANSFER NOTICE 
 (To transfer or assign the foregoing Warrant execute this form and supply
required information. Do not use this form to purchase shares.) 
 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby transferred and assigned to 
  

					
	  
	 	
	(Please Print)	 		 	
			
	whose address is	 	  
	 	
		
	  
	 	

  

			
	Dated:	 	  

		
	Holder’s Signature:	 	  

		
	Holder’s Address:	 	  

	
	  

  
 15EX-10.3

 EXHIBIT 10.3 

CONCERT PHARMACEUTICALS, INC. 

AMENDED AND RESTATED 
 2006 STOCK OPTION AND GRANT PLAN 
  

	1.	Purpose 

 The purpose of
this Amended and Restated 2006 Stock Option and Grant Plan (the “Plan”) of Concert Pharmaceuticals, Inc., a Delaware corporation (the “Company”), is to advance the interests of the Company’s stockholders by
enhancing the Company’s ability to attract, retain and motivate persons who are expected to make important contributions to the Company and by providing such persons with equity ownership opportunities and performance-based incentives that are
intended to better align the interests of such persons with those of the Company’s stockholders. Except where the context otherwise requires, the term “Company” shall include any of the Company’s present or future parent or
subsidiary corporations as defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”) and any other business venture (including, without
limitation, joint venture or limited liability company) in which the Company has a controlling interest, as determined by the Board of Directors of the Company (the “Board”). 

 

	2.	Eligibility 

 All of the
Company’s employees, officers, directors, consultants and advisors are eligible to be granted options, restricted stock, restricted stock units (“RSUs”) and other stock-based awards (each, an “Award”) under the
Plan. Each person who receives an Award under the Plan is deemed a “Participant.” 
  

	3.	Administration and Delegation 

 (a) Administration by Board of Directors. The Plan will be administered by the Board. The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative rules,
guidelines and practices relating to the Plan as it shall deem advisable. The Board may construe and interpret the terms of the Plan and any Award agreements entered into under the Plan. The Board may correct any defect, supply any omission or
reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency. All decisions by the Board shall be made in the
Board’s sole discretion and shall be final and binding on all persons having or claiming any interest in the Plan or in any Award. No director or person acting pursuant to the authority delegated by the Board shall be liable for any action or
determination relating to or under the Plan made in good faith. 
 (b) Appointment of Committees. To the extent permitted
by applicable law, the Board may delegate any or all of its powers under the Plan to one or more committees or subcommittees of the Board. All references in the Plan to the “Board” shall mean the Board or a committee or subcommittee of the
Board or the officers referred to in Section 3(c) to the extent that the Board’s powers or authority under the Plan have been delegated to such committee or subcommittee or such officers. 

  
 1 

 (c) Delegation to Officers. To the extent permitted by applicable law, the Board may
delegate to one or more officers of the Company the power to grant Awards (subject to any limitations under the Plan) to employees or officers of the Company or any of its present or future subsidiary corporations and to exercise such other powers
under the Plan as the Board may determine, provided that the Board shall fix the terms of the Awards to be granted by such officers (including the exercise price of such Awards, which may include a formula by which the exercise price will be
determined) and the maximum number of shares subject to Awards that the officers may grant; provided further, however, that no officer shall be authorized to grant Awards to any “executive officer” of the Company (as defined by Rule 3b-7
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or to any “officer” of the Company (as defined by Rule 16a-1 under the Exchange Act). The Board may not delegate authority under this
Section 3(c) to grant restricted stock, unless Delaware law then permits such delegation. 
  

	4.	Stock Available for Awards. 

 (a) Number of Shares. Subject to adjustment under Section 8, Awards may be made under the Plan for up to 12,500,000 shares of common stock, par value $0.001 per share, of the Company (the
“Common Stock”). If any Award expires or is terminated, surrendered or canceled without having been fully exercised, is forfeited in whole or in part (including as the result of shares of Common Stock subject to such Award being
repurchased by the Company at the original issuance price pursuant to a contractual repurchase right), or results in any Common Stock not being issued, the unused Common Stock covered by such Award shall again be available for the grant of Awards
under the Plan. Further, shares of Common Stock tendered to the Company by a Participant to exercise an Award shall be added to the number of shares of Common Stock available for the grant of Awards under the Plan. However, in the case of Incentive
Stock Options (as hereinafter defined), the foregoing provisions shall be subject to any limitations under the Code. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 

(b) Substitute Awards. In connection with a merger or consolidation of an entity with the Company or the acquisition by the
Company of property or stock of an entity, the Board may grant Awards in substitution for any options or other stock or stock-based awards granted by such entity or an affiliate thereof. Substitute Awards may be granted on such terms as the Board
deems appropriate in the circumstances, notwithstanding any limitations on Awards contained in the Plan. Substitute Awards shall not count against the overall share limit set forth in Section 4(a), except as may be required by reason of
Section 422 and related provisions of the Code. 
  

	5.	Stock Options 

 (a)
General. The Board may grant options to purchase Common Stock (each, an “Option”) and determine the number of shares of Common Stock to be covered by each Option, the exercise price of each Option and the conditions and
limitations applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it considers necessary or advisable. An Option that is not intended to be an Incentive Stock Option (as
hereinafter defined) shall be designated a “Nonstatutory Stock Option.” 

  
 2 

 (b) Incentive Stock Options. An Option that the Board intends to be an
“incentive stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be granted to employees of Concert Pharmaceuticals, Inc., any of Concert Pharmaceuticals, Inc.’s present or
future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Code, and any other entities the employees of which are eligible to receive Incentive Stock Options under the Code, and shall be subject to and shall be
construed consistently with the requirements of Section 422 of the Code. The Company shall have no liability to a Participant, or any other party, if an Option (or any part thereof) that is intended to be an Incentive Stock Option is not an
Incentive Stock Option or for any action taken by the Board, including without limitation the conversion of an Incentive Stock Option to a Nonstatutory Stock Option. 
 (c) Exercise Price. The Board shall establish the exercise price of each Option and specify the exercise price in the applicable option agreement. The exercise price of any Option of granted on or
after March 15, 2009 shall be not less than 100% of the Fair Market Value (as defined below) on the date the Option is granted. 
 (d) Duration of Options. Each Option shall be exercisable at such times and subject to such terms and conditions as the Board may specify in the applicable option agreement. 

(e) Exercise of Option. Options may be exercised by delivery to the Company of a written notice of exercise signed by the proper
person or by any other form of notice (including electronic notice) approved by the Board together with payment in full as specified in Section 5(f) for the number of shares for which the Option is exercised. Shares of Common Stock subject to
the Option will be delivered by the Company as soon as practicable following exercise, subject to any restrictions which shall be set forth in the applicable option agreement. 
 (f) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option granted under the Plan shall be paid for as follows: 

(1) in cash or by check, payable to the order of the Company; 
 (2) when the Common Stock is registered under the Exchange Act, except as may otherwise be provided in the applicable option agreement, by (i) delivery of an irrevocable and unconditional undertaking
by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price and any required tax withholding or (ii) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions
to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding; 
 (3) when the Common Stock is registered under the Exchange Act and to the extent provided for in the applicable option agreement or approved by the Board, in its sole discretion, by delivery (either by
actual delivery or attestation) of shares of Common Stock owned by the Participant valued at their fair market value as determined by (or in a manner approved by) the Board (“Fair Market Value”), provided (i) such method of
payment is then permitted under applicable law, (ii) such Common Stock, if acquired directly from the Company, 

  
 3 

 
was owned by the Participant for such minimum period of time, if any, as may be established by the Board in its discretion and (iii) such Common Stock is not subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements; provided, however, that for Incentive Stock Options granted before March 15, 2009, any stock delivered pursuant to this subsection must have been beneficially owned by the
Participant for at least six months prior to delivery. 
 (4) to the extent permitted by applicable law and provided for in the
applicable option agreement or approved by the Board, in its sole discretion, by (i) delivery of a promissory note of the Participant to the Company on terms determined by the Board, or (ii) payment of such other lawful consideration as
the Board may determine, which shall be set forth in the applicable option agreement; or 
 (5) by any combination of the above
permitted forms of payment. 
  

	6.	Restricted Stock; Restricted Stock Units 

 (a) General. The Board may grant Awards entitling recipients to acquire shares of Common Stock (“Restricted Stock”), subject to the right of the Company to repurchase all or part
of such shares at their issue price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the recipient in the event that conditions specified by the Board in the applicable Award are not satisfied
prior to the end of the applicable restriction period or periods established by the Board for such Award. Instead of granting Awards for Restricted Stock, the Board may grant Awards entitling the recipient to receive shares of Common Stock or cash
to be delivered at the time such Award vests (“Restricted Stock Units”) (Restricted Stock and Restricted Stock Units are each referred to herein as a “Restricted Stock Award”). 

(b) Terms and Conditions for All Restricted Stock Awards. The Board shall determine the terms and conditions of a Restricted Stock
Award, including the conditions for vesting and repurchase (or forfeiture) and the issue price, if any. 
 (c) Additional
Provisions Relating to Restricted Stock. 
 (1) Dividends. Participants holding shares of Restricted Stock will be
entitled to all ordinary cash dividends paid with respect to such shares, unless otherwise provided by the Board. Unless otherwise provided by the Board, if any dividends or distributions are paid in shares, or consist of a dividend or distribution
to holders of Common Stock other than an ordinary cash dividend, the shares, cash or other property will be subject to the same restrictions on transferability and forfeitability as the shares of Restricted Stock with respect to which they were
paid. Each dividend payment will be made no later than the end of the calendar year in which the dividends are paid to shareholders of that class of stock or, if later, the 15th day of the third month following the date the dividends are paid to
shareholders of that class of stock. 
 (2) Stock Certificates. The Company may require that any stock certificates
issued in respect of shares of Restricted Stock shall be deposited in escrow by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). At the expiration of the applicable restriction periods, the Company
(or such designee) shall deliver the certificates no longer subject to such restrictions to the Participant or if the Participant has died, 

  
 4 

 
to the beneficiary designated, in the manner provided in Section 9(a) below, by a Participant to receive amounts due or exercise rights of the Participant in the event of the
Participant’s death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, “Designated Beneficiary” shall mean the Participant’s estate. 

 

	7.	Other Stock-Based Awards 

Other Awards of shares of Common Stock, and other Awards that are valued in whole or in part by reference to, or are otherwise based on,
shares of Common Stock or other property, may be granted hereunder to Participants (“Other Stock-Based Awards”), including without limitation stock appreciation rights and Awards entitling recipients to receive shares of Common
Stock to be delivered in the future. Such Other Stock-Based Awards shall also be available as a form of payment in the settlement of other Awards granted under the Plan or as payment in lieu of compensation to which a Participant is otherwise
entitled. Other Stock-Based Awards may be paid in shares of Common Stock or cash, as the Board shall determine. Subject to the provisions of the Plan, the Board shall determine the terms and conditions of each Other Stock-Based Award, including any
purchase price applicable thereto. 
  

	8.	Adjustments for Changes in Common Stock and Certain Other Events 

 (a) Changes in Capitalization. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar
change in capitalization or event, or any dividend or distribution to holders of Common Stock other than an ordinary cash dividend, (i) the number and class of securities available under this Plan, (ii) the number and class of securities
and exercise price per share of each outstanding Option, (iii) the number of shares subject to and the repurchase price per share subject to each outstanding Restricted Stock Award, and (iv) the terms of each other outstanding Award shall
be equitably adjusted by the Company (or substituted Awards may be made, if applicable) in the manner determined by the Board. Without limiting the generality of the foregoing, in the event the Company effects a split of the Common Stock by means of
a stock dividend and the exercise price of and the number of shares subject to an outstanding Option are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), then an optionee who
exercises an Option between the record date and the distribution date for such stock dividend shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise,
notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend. 
 (b) Reorganization Events. 
 (1) Definition. A
“Reorganization Event” shall mean: (a) any merger or consolidation of the Company with or into another entity as a result of which all of the Common Stock of the Company is converted into or exchanged for the right to receive
cash, securities or other property or is cancelled, (b) any exchange of all of the Common Stock of the Company for cash, securities or other property pursuant to a share exchange transaction, (c) any liquidation or dissolution of the
Company, (d) the sale of all or substantially all of the assets of the Company, (e) a “Deemed Liquidation” as defined in the Company’s Certificate of Incorporation, as

  
 5 

 
amended from time to time, or (f) any other transaction in which the owners of the Company’s outstanding voting power immediately prior to such transaction do not own at least a
majority of the outstanding voting power of the successor entity immediately upon completion of the transaction. 
 (2)
Consequences of a Reorganization Event on Awards Other than Restricted Stock Awards. In connection with a Reorganization Event, the Board may take any one or more of the following actions as to all or any (or any portion of) outstanding
Awards other than Restricted Stock Awards on such terms as the Board determines: (i) provide that Awards shall be assumed, or substantially equivalent Awards shall be substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), (ii) upon written notice to a Participant, provide that the Participant’s unexercised Awards will terminate immediately prior to the consummation of such Reorganization Event unless exercised by the Participant within a specified
period following the date of such notice, (iii) provide that outstanding Awards shall become exercisable, realizable, or deliverable, or restrictions applicable to an Award shall lapse, in whole or in part prior to or upon such Reorganization
Event, (iv) in the event of a Reorganization Event under the terms of which holders of Common Stock will receive upon consummation thereof a cash payment for each share surrendered in the Reorganization Event (the “Acquisition
Price”), make or provide for a cash payment to a Participant equal to the excess, if any, of (A) the Acquisition Price times the number of shares of Common Stock subject to the Participant’s Awards (to the extent the exercise
price does not exceed the Acquisition Price) over (B) the aggregate exercise price of all such outstanding Awards and any applicable tax withholdings, in exchange for the termination of such Awards, (v) provide that, in connection with a
liquidation or dissolution of the Company, Awards shall convert into the right to receive liquidation proceeds (if applicable, net of the exercise price thereof and any applicable tax withholdings) and (vi) any combination of the foregoing.
Notwithstanding anything herein to the contrary, in the event that provision is made in connection with a Reorganization Event for the assumption or substitution of Awards pursuant to clause (i) of the preceding sentence, any Award so assumed
or substituted shall, unless the Board determines otherwise with respect to such Award in particular, be deemed vested and exercisable in full upon the date on which the employment or service relationship with the Company or its successor entity, as
the case may be, of the Participant holding such Award terminates if such termination occurs within 18 months after such Reorganization Event and such termination is by the Company or its successor entity, as the case may be, without Cause (as
defined below). In taking any of the actions permitted under this Section 8(b), the Board shall not be obligated by the Plan to treat all Awards, all Awards held by a Participant, or all Awards of the same type, identically. 

For purposes of the preceding paragraph, “Cause” shall mean a vote of the Board resolving that the Participant should be
dismissed as a result of (I) the commission of any act by such Participant constituting financial dishonesty against the Company (which act would be chargeable as a crime under applicable law); (II) the Participant’s engaging in any other
act of dishonesty, fraud, intentional misrepresentation, moral turpitude, illegality or harassment which, as determined in good faith by the Board, would materially adversely affect the business or the reputation of the Company with its current or
prospective customers, suppliers, lenders and/or other third parties with whom it does or might do business or would expose the Company to a risk of civil or criminal legal damages, liabilities or penalties; (III) the repeated failure by the
Participant to follow the directives of the Company’s chief executive officer or the Board or (IV) 

  
 6 

 
any material misconduct, violation of the Company’s policies, or willful and deliberate non-performance of duty by the Participant in connection with the business affairs of the Company.
Notwithstanding the foregoing, this definition of Cause shall in any event include any termination of the Participant’s employment for “cause” as specified in a written employment agreement, if the Participant is party to a written
employment agreement with the Company. 
 For purposes of clause (i) above, an Option shall be considered assumed if,
following consummation of the Reorganization Event, the Option confers the right to purchase, for each share of Common Stock subject to the Option immediately prior to the consummation of the Reorganization Event, the consideration (whether cash,
securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each share of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if the consideration received as a result of the Reorganization Event is not solely common stock of the
acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation, provide for the consideration to be received upon the exercise of Options to consist solely of common stock
of the acquiring or succeeding corporation (or an affiliate thereof) equivalent in value (as determined by the Board) to the per-share consideration received by holders of outstanding shares of Common Stock as a result of the Reorganization Event.

 Notwithstanding the terms of any Award agreement entered into under the Plan prior to March 15, 2009, such Award shall
not terminate upon the consummation of a Reorganization Event except as provided herein. 
 (3) Consequences of a
Reorganization Event on Restricted Stock Awards. Upon the occurrence of a Reorganization Event other than a liquidation or dissolution of the Company, the repurchase and other rights of the Company under each outstanding Restricted Stock Award
shall inure to the benefit of the Company’s successor and shall, unless the Board determines otherwise, apply to the cash, securities or other property which the Common Stock was converted into or exchanged for pursuant to such Reorganization
Event in the same manner and to the same extent as they applied to the Common Stock subject to such Restricted Stock Award. Upon the occurrence of a Reorganization Event involving the liquidation or dissolution of the Company, except to the extent
specifically provided to the contrary in the instrument evidencing any Restricted Stock Award or any other agreement between a Participant and the Company, all restrictions and conditions on all Restricted Stock Awards then outstanding shall
automatically be deemed terminated or satisfied. 
  

	9.	General Provisions Applicable to Awards 

 (a) Transferability of Awards. Except as the Board may otherwise determine or provide in an Award, Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by the person to
whom they are granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution or, other than in the case of an Incentive Stock Option, pursuant to a qualified domestic relations order, and, during the life
of the Participant, shall be exercisable only by the Participant (or by the Participant’s guardian or 

  
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personal representative in the event of the Participant’s incapacity). A Participant may elect to designate or change a Designated Beneficiary at any time by filing a written notice of
designation, revocation or change with the Company. Such Designated Beneficiary may exercise the Participant’s rights under any Awards in the event of the Participant’s death, to the extent provided in the Plan or in the applicable Award
agreement. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees or such Designated Beneficiary so empowered. 
 (b) Documentation. Each Award shall be evidenced in such form (written, electronic or otherwise) as the Board shall determine. Each Award may contain terms and conditions in addition to those set
forth in the Plan. 
 (c) Board Discretion. Except as otherwise provided by the Plan, each Award may be made alone or in
addition or in relation to any other Award. The terms of each Award need not be identical, and the Board need not treat Participants uniformly. 
 (d) Termination of Status. The Board shall determine the effect on an Award of the disability, death, termination or other cessation of employment, authorized leave of absence or other change in
the employment or other status of a Participant and the extent to which, and the period during which, the Participant, or the Participant’s legal representative, conservator, guardian or Designated Beneficiary, may exercise rights under the
Award; provided, however, that the following events shall not be deemed a termination of employment: (1) a transfer to the employment of the Company from a Subsidiary (as defined below) or from the Company to a Subsidiary, or from one
Subsidiary to another; or (2) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the Participant’s right to re-employment is guaranteed either by a statute or by contract or
under the policy pursuant to which the leave of absence was granted or if the Board otherwise so provides in writing. A “Subsidiary” shall mean any corporation or other entity (other than the Company) in any unbroken chain of
corporations or other entities beginning with the Company if each of the corporations or entities (other than the last corporation or entity in the unbroken chain) owns stock or other interests possessing 50 percent or more of the economic interest
or 50 percent or more of the total combined voting power of all classes of stock or other interests in one of the other corporations or entities in the chain. 
 (e) Withholding. The Participant must satisfy all applicable federal, state, and local or other income and employment tax withholding obligations before the Company will deliver stock certificates
or otherwise recognize ownership of Common Stock under an Award. The Company may decide to satisfy the withholding obligations through additional withholding on salary or wages. If the Company elects not to or cannot withhold from other
compensation, the Participant must pay the Company the full amount, if any, required for withholding or have a broker tender to the Company cash equal to the withholding obligations. Payment of withholding obligations is due before the Company will
issue any shares on exercise or release from forfeiture of an Award or, if the Company so requires, at the same time as payment of the exercise price unless the Company determines otherwise. If provided for in an Award or approved by the Board in
its sole discretion, a Participant may satisfy such tax obligations in whole or in part by delivery of shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value; provided,
however, except 

  
 8 

 
as otherwise provided by the Board, that the total tax withholding where stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding
obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). Shares surrendered to satisfy tax withholding requirements cannot be
subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements. 
 (f) Amendment of Award.

 (1) The Board may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor
another Award of the same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option. The Participant’s consent to such action shall be required unless (i) the
Board determines that the action, taking into account any related action, would not materially and adversely affect the Participant’s rights under the Plan or (ii) the change is permitted under Section 8 hereof. 

(2) The Board may, without stockholder approval, amend any outstanding Award granted under the Plan to provide an exercise price per
share that is lower than the then-current exercise price per share of such outstanding Award. The Board may also, without stockholder approval, cancel any outstanding award (whether or not granted under the Plan) and grant in substitution therefor
new Awards under the Plan covering the same or a different number of shares of Common Stock and having an exercise price per share lower than the then-current exercise price per share of the cancelled award. 

(g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan
or to remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal
matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed
and delivered to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations. 

(h) Acceleration. The Board may at any time provide that any Award shall become immediately exercisable in full or in part, free
of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be. 
  

	10.	Miscellaneous 

 (a) No
Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the
Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Award. 

  
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 (b) No Rights As Stockholder. Subject to the provisions of the applicable Award, no
Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until becoming the record holder of such shares. 

(c) Effective Date and Term of Plan. The Plan shall become effective on the date on which it is adopted by the Board. No Awards
shall be granted under the Plan after the expiration of 10 years from the earlier of (i) the date on which the Plan was adopted by the Board or (ii) the date the Plan was approved by the Company’s stockholders, but Awards previously
granted may extend beyond that date. 
 (d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any
portion thereof at any time; provided that if at any time the approval of the Company’s stockholders is required as to any modification or amendment under Section 422 of the Code or any successor provision with respect to Incentive Stock
Options, the Board may not effect such modification or amendment without such approval. Unless otherwise specified in the amendment, any amendment to the Plan adopted in accordance with this Section 10(d) shall apply to, and be binding on the
holders of, all Awards outstanding under the Plan at the time the amendment is adopted, provided the Board determines that such amendment does not materially and adversely affect the rights of Participants under the Plan. 

(e) Authorization of Sub-Plans. The Board may from time to time establish one or more sub-plans under the Plan for purposes of
satisfying applicable blue sky, securities or tax laws of various jurisdictions. The Board shall establish such sub-plans by adopting supplements to this Plan containing (i) such limitations on the Board’s discretion under the Plan as the
Board deems necessary or desirable or (ii) such additional terms and conditions not otherwise inconsistent with the Plan as the Board shall deem necessary or desirable. All supplements adopted by the Board shall be deemed to be part of the
Plan, but each supplement shall apply only to Participants within the affected jurisdiction and the Company shall not be required to provide copies of any supplement to Participants in any jurisdiction which is not the subject of such supplement.

 (f) Compliance with Code Section 409A. No Award shall provide for deferral of compensation that does not comply
with Section 409A of the Code, unless the Board, at the time of grant, specifically provides that the Award is not intended to comply with Section 409A of the Code. The Company shall have no liability to a Participant, or any other party,
if an Award that is intended to be exempt from, or compliant with, Section 409A is not so exempt or compliant or for any action taken by the Board. 
 (g) Certain Definitions. For all Awards made under the Plan prior to March 15, 2009, the following terms shall have the following meanings under the Plan: 

“Committee” shall mean the Board. 
 “Initial Public Offering” shall mean the closing of a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as
amended, covering the offer and sale of Stock for the account of the Company to the public at 

  
 10 

 
an offering price per share (prior to underwriters’ discounts and commissions) of not less than $3.00 (as adjusted to reflect any stock dividends, distributions, combinations,
reclassifications or other like transactions effected by the Company in respect of the Stock) and with gross proceeds to the Company of not less than $30,000,000. 
 “ISO” shall mean an Incentive Stock Option. 

“Shares” shall mean shares of the Common Stock. 

“Stock” shall mean the Common Stock. 
 (h) Governing Law. For all Awards made under the Plan prior to March 15, 2009, the provisions of the Plan and such Awards shall be governed by and interpreted in accordance with the laws of
the State of New York, excluding choice-of-law principles of the law of such state that would require the application of the laws of a jurisdiction other than such state. For all other Awards made under the Plan, the provisions of the Plan and such
Awards shall be governed by and interpreted in accordance with the laws of the State of Delaware, excluding choice-of-law principles of the law of such state that would require the application of the laws of a jurisdiction other than such state.

 Adopted by the Board March 15, 2009 
 Adopted by the stockholders on April 1, 2009 
 Amended by the Board
March 25, 2010 
 Adopted by the stockholders as amended effective April 30, 2010 

  
 11

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