Document:

Form of Subscription Agreement

 Exhibit 10.3 
  
 SUBSCRIPTION AGREEMENT 
  
 SUBSCRIPTION AGREEMENT (this “Agreement”) made as of the last date set forth on the signature page hereof between Chelsea Therapeutics, Inc.
(the “Company”), and the undersigned (the “Subscriber”). 
  
 W I T N E S S E T H: 
  
 WHEREAS,
the Company has retained Paramount BioCapital, Inc. (“Paramount” or the “Placement Agent”) to act as exclusive placement agent, on a “best efforts” basis, in a private offering (the “Offering”) consisting of
shares of Series A Convertible Preferred Stock, par value $.001 per share, stated value $3.08 per share (the “Preferred Stock”) of the Company, and in connection therewith has authorized Paramount to engage one or more other firms to
assist in finding qualified subscribers for the Preferred Stock (such other firms, if any, together with Paramount, the “Placement Agent”); 
  
 WHEREAS, the Company desires to issue a maximum of 2,300,000 shares of Preferred Stock (the “Maximum Offering”) with an option in favor of
Paramount to offer up to an additional 1,000,000 shares of Preferred Stock to cover over-allotments (the “Increased Maximum Offering”). The minimum investment per subscriber is 25,000 shares ($110,000), although the Company and the
Placement Agent, in their sole discretion, may allow sales of a fewer number of Shares. Each share of Preferred Stock is convertible at the option of the holder thereof into one (1) share of common stock, par value $.001 per share, of the Company
(the “Common Stock”), initially at a conversion price equal to $3.08 per share of Common Stock; 
  
 WHEREAS, the Subscriber desires to purchase that number of shares of Preferred Stock set forth on the signature page hereof on the terms and conditions
hereinafter set forth; 
  
 NOW, THEREFORE, in consideration of the
premises and the mutual representations and covenants hereinafter set forth, the parties hereto do hereby agree as follows: 
  
 I. SUBSCRIPTION FOR PREFERRED SHARES AND REPRESENTATIONS BY SUBSCRIBER 
  
 1.1 Subject to the terms and conditions hereinafter set forth and in the Confidential Offering Memorandum dated September 2, 2004 (such memorandum,
together with all amendments thereof and supplements and exhibits thereto, the “Memorandum”), the Subscriber hereby irrevocably subscribes for and agrees to purchase from the Company such number of shares of Preferred Stock, and the
Company agrees to sell to the Subscriber such number of shares of Preferred Stock, as is set forth on the signature page hereof (the “Preferred Shares”) at a per share price equal to $3.08. The purchase price is payable by personal or
business check or money order made payable to “US Bank Trust National Association as Escrow Agent for Paramount/Chelsea” contemporaneously with the execution and delivery of this Agreement by the Subscriber. Subscribers may also pay the
subscription amount by, wire transfer of immediately available funds to: 
  

			
	 Bank:
	  	 US Bank Trust N.A.

	 ABA Number:
	  	 [    ]

	 Further Credit to Account Name:
	  	 US Bank and Trust Corp Trust Acct

	 Account #:
	  	 [    ]

	 Final Beneficiary Recipient/Subacct:    
	  	 Paramount BioCapital/Chelsea Therapeutics

	 SEI/Subacct Number:
	  	 786754000

	 Reference:
	  	 [Investor Name]

  
 - CONTINUED ON NEXT
PAGE - 

 1.2 The Subscriber recognizes that the purchase of the Preferred Shares involves a high degree of risk
including, but not limited to, the following: (a) the Company remains a development stage business with limited operating history and requires substantial funds in addition to the proceeds of the Offering; (b) an investment in the Company is highly
speculative, and only investors who can afford the loss of their entire investment should consider investing in the Company and the Preferred Shares; (c) the Subscriber may not be able to liquidate its investment; (d) transferability of the
Preferred Shares and the shares of Common Stock issuable upon conversion of the Preferred Shares (sometimes hereinafter collectively referred to as the “Securities”) is extremely limited; (e) in the event of a disposition, the Subscriber
could sustain the loss of its entire investment; and (f) the Company has not paid any dividends since its inception and does not anticipate paying any dividends, even if declared by the Board of Directors pursuant to the terms of the Preferred
Stock. Without limiting the generality of the representations set forth in Section 1.5 below, the Subscriber represents that the Subscriber has carefully reviewed the section of the Memorandum captioned “Risk Factors.” 
  
 1.3 The Subscriber represents that the Subscriber is an “accredited
investor” as such term is defined in Rule 501 of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), as indicated by the Subscriber’s responses to the questions
contained in Article VII hereof, and that the Subscriber is able to bear the economic risk of an investment in the Preferred Shares. 
  
 1.4 The Subscriber hereby acknowledges and represents that (a) the Subscriber has knowledge and experience in business and financial matters, prior
investment experience, including investment in securities that are non-listed, unregistered and/or not traded on a national securities exchange nor on the National Association of Securities Dealers, Inc. (the “NASD”) automated quotation
system (“NASDAQ”), or the Subscriber has employed the services of a “purchaser representative” (as defined in Rule 501 of Regulation D), attorney and/or accountant to read all of the documents furnished or made available by the
Company both to the Subscriber and to all other prospective investors in the Preferred Stock to evaluate the merits and risks of such an investment on the Subscriber’s behalf; (b) the Subscriber recognizes the highly speculative nature of this
investment; and (c) the Subscriber is able to bear the economic risk that the Subscriber hereby assumes. 
  
 1.5 The Subscriber hereby acknowledges receipt and careful review of this Agreement, the form of Certificate of Designations attached to the Memorandum as
Appendix B, the Memorandum (which includes the Risk Factors), including all exhibits thereto, and any documents which may have been made available upon request as reflected therein (collectively referred to as the “Offering Materials”) and
hereby represents that the Subscriber has been furnished by the Company during the course of the Offering with all information regarding the Company, the terms and conditions of the Offering and any additional information that the Subscriber has
requested or desired to know, and has 

  

 2 

 
been afforded the opportunity to ask questions of and receive answers from duly authorized officers or other representatives of the Company concerning the
Company and the terms and conditions of the Offering. 
  
 1.6 (a)
In making the decision to invest in the Preferred Shares the Subscriber has relied solely upon the information provided by the Company in the Offering Materials. To the extent necessary, the Subscriber has retained, at its own expense, and relied
upon appropriate professional advice regarding the investment, tax and legal merits and consequences of this Agreement and the purchase of the Preferred Shares hereunder. The Subscriber disclaims reliance on any statements made or information
provided by any person or entity in the course of Subscriber’s consideration of an investment in the Preferred Shares other than the Offering Materials. The Subscriber acknowledges and agrees that (i) the Company has prepared the Offering
Materials and that no other person, including without limitation, the Placement Agent, has supplied any information for inclusion in the Offering Materials other than information furnished in writing to the Company by the Placement Agent
specifically for inclusion in those parts of the Offering Materials relating specifically to the Placement Agent, (ii) the Placement Agent has no responsibility for the accuracy or completeness of the Offering Materials and (iii) the Subscriber has
not relied upon the independent investigation or verification, if any, that may have been undertaken by the Placement Agent. 
  
 (b) The Subscriber represents that (i) the Subscriber was contacted regarding the sale of the Preferred Shares by the Company or the Placement Agent (or
an authorized agent or representative of the Company or the Placement Agent) with whom the Subscriber had a prior substantial pre-existing relationship and (ii) no shares of Preferred Stock were offered or sold to it by means of any form of general
solicitation or general advertising, and in connection with the sale of the Preferred Shares, the Subscriber did not (A) receive or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar
media or broadcast over television or radio, whether closed circuit, or generally available; or (B) attend any seminar meeting or industry investor conference whose attendees were invited by any general solicitation or general advertising.

  
 1.7 The Subscriber hereby represents that the Subscriber,
either by reason of the Subscriber’s business or financial experience or the business or financial experience of the Subscriber’s professional advisors (who are unaffiliated with and not compensated by the Company or any affiliate or
selling agent of the Company, including the Placement Agent, directly or indirectly), has the capacity to protect the Subscriber’s own interests in connection with the transaction contemplated hereby. 
  
 1.8 The Subscriber hereby acknowledges that the Offering has not been
reviewed by the United States Securities and Exchange Commission (the “SEC”) nor any state regulatory authority since the Offering is intended to be exempt from the registration requirements of Section 5 of the Securities Act pursuant to
Regulation D promulgated thereunder. The Subscriber understands that the Securities have not been registered under the Securities Act or under any state securities or “blue sky” laws and agrees not to sell, pledge, assign or otherwise
transfer or dispose of the Securities unless they are registered under the Securities Act and under any applicable state securities or “blue sky” laws or unless an exemption from such registration is available. 
  
 1.9 The Subscriber understands that the Securities comprising the Preferred
Shares have not been registered under the Securities Act by reason of a claimed exemption under the provisions of the Securities Act that depends, in part, upon the Subscriber’s investment intention. In this connection, the Subscriber hereby
represents that the Subscriber is purchasing the Securities for the Subscriber’s own account for investment and not with a view toward the resale or distribution to others. The Subscriber, if an entity, further represents that it was not formed
for the purpose of purchasing the Securities. 
  

 3 

 1.10 The Subscriber understands that there is no public market for the Preferred Shares nor the shares of
Common Stock issuable upon conversion of the Preferred Shares and that no market may develop for any of such Securities. The Subscriber understands that even if a public market develops for such Securities, Rule 144 (“Rule 144”)
promulgated under the Securities Act requires for non-affiliates, among other conditions, a one-year holding period prior to the resale (in limited amounts) of securities acquired in a non-public offering without having to satisfy the registration
requirements under the Securities Act. The Subscriber understands and hereby acknowledges that the Company is under no obligation to register any of the Preferred Shares or any of the shares of Common Stock issuable upon conversion of the Preferred
Shares under the Securities Act or any state securities or “blue sky” laws other than as set forth in Article V. 
  
 1.11 The Subscriber consents to the placement of a legend on any certificate or other document evidencing the Securities that such Securities have not
been registered under the Securities Act or any state securities or “blue sky” laws and setting forth or referring to the restrictions on transferability and sale thereof contained in this Agreement. The Subscriber is aware that the
Company will make a notation in its appropriate records with respect to the restrictions on the transferability of such Securities. The legend to be placed on each certificate shall be in form substantially similar to the following: 
  
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY STATE SECURITIES OR “BLUE SKY LAWS”, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER
SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.” 
  
 1.12 The Subscriber understands that the Placement Agent and/or the Company
will review this Agreement and are hereby given authority by the Subscriber to call Subscriber’s bank or place of employment or otherwise review the financial standing of the Subscriber; and it is further agreed that the Placement Agent and the
Company, each at their sole discretion, reserve the unrestricted right, without further documentation or agreement on the part of the Subscriber, to reject or limit any subscription and to close the Offering to the Subscriber at any time and that
the Company will issue stop transfer instructions to its transfer agent with respect to such Securities. No subscriptions for fractional shares of Series A Preferred Stock will be accepted. 
  
 1.13 The Subscriber hereby represents that the address of the Subscriber
furnished by Subscriber on the signature page hereof is the Subscriber’s principal residence if Subscriber is an individual or its principal business address if it is a corporation or other entity. 
  
 1.14 The Subscriber represents that the Subscriber has full power and
authority (corporate, statutory and otherwise) to execute and deliver this Agreement and to purchase the Preferred Shares and the shares of Common Stock issuable upon conversion of the Preferred Shares. This Agreement constitutes the legal, valid
and binding obligation of the Subscriber, enforceable against the Subscriber in accordance with its terms. 
  
 1.15 If the Subscriber is a corporation, partnership, limited liability company, trust, employee benefit plan, individual retirement account, Keogh Plan,
or other tax-exempt entity, it is authorized and qualified to invest in the Company and the person signing this Agreement on behalf of such entity has been duly authorized by such entity to do so. 
  

 4 

 1.16 The Subscriber acknowledges that if he or she is a Registered Representative of an NASD member firm,
he or she must give such firm the notice required by the NASD’s Rules of Fair Practice, receipt of which must be acknowledged by such firm in Section 7.4 below. 
  
 1.17 The Subscriber acknowledges that at such time, if ever, as the Securities are registered (as such term is defined in
Article V hereof), sales of the Securities will be subject to state securities laws. 
  
 1.18 (a) Subject to the provision below and Section 1.18(b), the Subscriber hereby agrees that from the earlier to occur of (i) the date of the initial offering of the Common Stock to the public pursuant to a
registration statement under the Securities Act (the “IPO”) or (ii) the first date (the “Trading Date”) on which the Common Stock (or securities received in exchange for Common Stock) trades on a national securities exchange or
on the NASDAQ, including the Over the Counter Bulletin Board (a “Trading Event”) and continuing for a period of 180 days thereafter or such longer period as may be requested by the underwriter or underwriters, in the case of an IPO (the
“Lock-Up Period”), the Subscriber will not, without the prior written consent of the Company, offer, pledge, sell, contract to sell, grant any option for the sale of, or otherwise dispose of, directly or indirectly, the Registrable
Securities (as defined in Section 5.1) purchased or acquired by the Subscriber. In addition, the Subscriber agrees that during the period from the date that Subscriber was first contacted with respect to the potential purchase of the Preferred
Shares through the last date upon which Subscriber holds any Securities or Registrable Securities, the Subscriber will not directly or indirectly, through related parties, affiliates or otherwise sell “short” or “short against the
box” (as those terms are generally understood) any equity security of the Company. 
  
 (b) In connection with any subsequent public offering of the Company‘s securities, the Holder hereby agrees to be subject to a lock-up for a period of 60 days or such longer period following such public offering
as and if required by the underwriter or underwriters of such public offering. The foregoing lock-ups shall be applicable regardless of whether the Securities are then registered for re-sale under the Securities Act. This Section 1.18 shall be
binding upon any transferee of the Securities. 
  
 (c) In order
to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities (as defined below) of each Holder (as defined below) (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period. 
  
 1.19 (a)
The Subscriber agrees not to issue any public statement with respect to the Subscriber’s investment or proposed investment in the Company or the terms of any agreement or covenant between them and the Company without the Company’s prior
written consent, except such disclosures as may be required under applicable law or under any applicable order, rule or regulation. 
  
 (b) The Company agrees not to disclose the names, addresses or any other information about the Subscribers, except as required by law; provided, that the
Company may use the name (but not the address) of the Subscriber in any registration statement filed pursuant to Article V in which the Subscriber’s shares are included. 
  

 5 

 1.20 The Subscriber represents and warrants that it has not engaged, consented to or authorized any
broker, finder or intermediary to act on its behalf, directly or indirectly, as a broker, finder or intermediary in connection with the transactions contemplated by this Agreement. The Subscriber hereby agrees to indemnify and hold harmless the
Company from and against all fees, commissions or other payments owing to any such person or firm acting on behalf of such Subscriber hereunder. 
  
 1.21 The Subscriber agrees to hold the Company and its directors, officers, employees, affiliates, controlling persons and agents (including the Placement
Agent and their officers, directors, employees, counsel, controlling persons and agents) and their respective heirs, representatives, successors and assigns harmless and to indemnify them against all liabilities, costs and expenses incurred by them
as a result of (a) any sale or distribution of the Securities by the Subscriber in violation of the Securities Act or any applicable state securities or “blue sky” laws; or (b) any false representation or warranty or any breach or failure
by the Subscriber to comply with any covenant made by the Subscriber in this Agreement (including the Confidential Investor Questionnaire contained in Article VII herein) or any other document furnished by the Subscriber to any of the foregoing in
connection with this transaction. 
  
 II.
REPRESENTATIONS BY AND COVENANTS OF THE COMPANY 
  
 The
Company hereby represents and warrants to the Subscriber that: 
  
 2.1 Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has full corporate power and authority to conduct its
business. 
  
 2.2 Capitalization and Voting Rights. The
authorized, issued and outstanding capital stock of the Company is as set forth in the Memorandum and all issued and outstanding shares of the Company are validly issued, fully paid and nonassessable. Except as set forth in the Memorandum, there are
no outstanding options, warrants, agreements, convertible securities, preemptive rights or other rights to subscribe for or to purchase any shares of capital stock of the Company. Except as set forth in the Offering Materials and as otherwise
required by law, there are no restrictions upon the voting or transfer of any of the shares of capital stock of the Company pursuant to the Company’s Amended Certificate of Incorporation (the “Certificate of Incorporation”), By-Laws
or other governing documents or any agreement or other instruments to which the Company is a party or by which the Company is bound. 
  
 2.3 Authorization; Enforceability. The Company has all corporate right, power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby. All corporate action on the part of the Company, its directors and stockholders necessary for the (i) authorization execution, delivery and performance of this Agreement by the Company; and (ii) authorization, sale,
issuance and delivery of the Securities contemplated hereby and the performance of the Company’s obligations hereunder has been taken. This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive
relief or other equitable remedies, and to limitations of public policy. The Preferred Shares, when issued and fully paid for in accordance with the terms of this Agreement, will be validly issued, fully paid and nonassessable. The Company shall, at
all times when any of the Preferred Shares remain outstanding, have authorized and reserved for issuance a sufficient number of shares of Common Stock to provide for conversion of the Preferred Stock. Upon the issuance and delivery of the shares of
Common Stock issuable upon conversion of the Preferred Shares, such shares of Common 

  

 6 

 
Stock will be validly issued, fully paid and nonassessable. The issuance and sale of the Preferred Shares contemplated hereby and the issuance and sale of
the Common Stock underlying the Preferred Stock, will not give rise to any preemptive rights or rights of first refusal on behalf of any person which have not been waived in connection with this offering. 
  
 2.4 Terms of Preferred Stock. The Preferred Stock has all of the
rights, preferences and privileges as set forth in the form of the Certificate of Designations attached as Appendix B to the Memorandum. 
  
 2.5 No Conflict; Governmental Consents. 
  
 (a) Except as would not reasonably be expected to have a material adverse effect on the business, assets, liabilities, financial condition or operations
of the Company (a “Material Adverse Effect”), the execution and delivery by the Company of this Agreement and the consummation of the transactions contemplated hereby will not result in the violation of any material law, statute, rule,
regulation, order, writ, injunction, judgment or decree of any court or governmental authority to or by which the Company is bound, or of any provision of the Certificate of Incorporation or By-Laws of the Company, and will not conflict with, or
result in a material breach or violation of, any of the terms or provisions of, or constitute (with due notice or lapse of time or both) a default under, any lease, loan agreement, mortgage, security agreement, trust indenture or other agreement or
instrument to which the Company is a party or by which it is bound or to which any of its properties or assets is subject, nor result in the creation or imposition of any lien upon any of the properties or assets of the Company. 
  
 (b) No consent, approval, authorization or other order of any governmental
authority is required to be obtained by the Company in connection with the authorization, execution and delivery of this Agreement or with the authorization, issue and sale of the Preferred Shares or the Securities comprising the Preferred Shares,
except such filings as may be required to be made with the SEC, NASD, NASDAQ and with any state or foreign blue sky or securities regulatory authority. 
  
 2.6 Licenses. Except as otherwise set forth in the Memorandum or as would not be reasonably expected to have a Material Adverse Effect, the Company
has sufficient licenses, permits and other governmental authorizations currently required for the conduct of its business or ownership of properties and is in all material respects complying therewith. 
  
 2.7 Litigation. The Company knows of no pending or threatened legal or
governmental proceedings against the Company which could materially adversely affect the business, property, financial condition or operations of the Company or which materially and adversely questions the validity of this Agreement or any
agreements related to the transactions contemplated hereby or the right of the Company to enter into any of such agreements, or to consummate the transactions contemplated hereby or thereby. The Company is not a party or subject to the provisions of
any order, writ, injunction, judgment or decree of any court or government agency or instrumentality which could materially adversely affect the business, property, financial condition or operations of the Company. There is no action, suit,
proceeding or investigation by the Company currently pending in any court or before any arbitrator or that the Company intends to initiate. 
  
 2.8 Disclosure. The information set forth in the Offering Materials as of the date hereof contains no untrue statement of a material fact nor omits
to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they were made, not misleading. 
  

 7 

 2.9 Investment Company The Company is not an “investment company” within the meaning of
such term under the Investment Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder. 
  
 2.10 Placement Agent. The Company has engaged, consented to and authorized Paramount to act as agent of the Company solely in connection with the
transactions contemplated by this Agreement. The Company will pay Paramount a commission in the form of both cash and warrants (the “Introduction Warrants”) and will reimburse Paramount’s reasonable out-of-pocket expenses incurred in
connection with the Offering up to $50,000, and the Company agrees to indemnify and hold harmless the Subscribers from and against all fees, commissions or other payments owing by the Company to Paramount or any other person or firm acting on behalf
of the Company hereunder. 
  
 2.11 Financial Statements.
The financial statements of the Company included in the Memorandum (the “Financial Statements”) fairly present in all material respects the financial condition and position of the Company at the dates and for the periods indicated; and
have been prepared in conformity with generally accepted accounting principles consistently applied throughout the periods covered thereby. Since the date of the most recent balance sheet included as part of the Financial Statements, there has not
been to the Company’s knowledge: (i) any change in the assets, liabilities, financial condition or operations of the Company from that reflected in the Financial Statements, other than changes in the ordinary course of business, none of which
individually or in the aggregate has had or is reasonably expected to have a material adverse effect on such assets, liabilities, financial condition or operations; or (ii) any other event or condition of any character that, either individually or
cumulatively, has materially and adversely affected the business, assets, liabilities, financial condition or operations of the Company, except for the expenses incurred in connection with the transactions contemplated by this Agreement. 

 
 2.12 Intellectual Property. Except as not reasonably be expected to
have a Material Adverse Effect: (a) to the best of its knowledge, the Company owns or possesses sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information and other proprietary
rights and processes necessary for its business as now conducted and as presently proposed to be conducted, without any known infringement of the rights of others; (b) except as disclosed in the Memorandum, there are no material outstanding options,
licenses or agreements of any kind relating to the foregoing proprietary rights, nor is the Company bound by or a party to any material options, licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade names,
copyrights, trade secrets, licenses, information and other proprietary rights and processes of any other person or entity other than such licenses or agreements arising from the purchase of “off the shelf” or standard products; and (c) the
Company has not received any written communications alleging that the Company has violated or, by conducting its business as presently proposed to be conducted, would violate any of the patents, trademarks, service marks, trade names, copyrights or
trade secrets or other proprietary rights of any other person or entity. 
  
 2.13 Title to Properties and Assets; Liens, Etc. The Company has good and marketable title to its properties and assets, including the properties and assets reflected in the most recent balance sheet included
in the Financial Statements, and good title to its leasehold estates, in each case subject to no mortgage, pledge, lien, lease, encumbrance or charge, other than (a) those resulting from taxes which have not yet become delinquent; (b) liens and
encumbrances which do not materially detract from the value of the property subject thereto or materially impair the operations of the Company; (c) those that have otherwise arisen in the ordinary course of business; and (d) those that would not
reasonably be expected to have a Material Adverse Effect. The Company is in compliance with all material terms of each lease to which it is a party or is otherwise bound. 
  

 8 

 2.14 Obligations to Related Parties. Except as disclosed in the Memorandum or as would not
reasonably be expected to have a Material Adverse Effect, there are no obligations of the Company to officers, directors, stockholders, or employees of the Company other than (a) for payment of salary or other compensation for services rendered, (b)
reimbursement for reasonable expenses incurred on behalf of the Company and (c) for other standard employee benefits made generally available to all employees (including stock option agreements outstanding under any stock option plan approved by the
Board of Directors of the Company). Except as may be disclosed in the Financial Statements, the Company is not a guarantor or indemnitor of any indebtedness of any other person, firm or corporation. 
  
 III. TERMS OF SUBSCRIPTION 
  
 3.1 The minimum purchase that may be made by any prospective investor shall
be 25,000 shares of Preferred Stock. Subscriptions for investment below the minimum investment may be accepted at the discretion of Paramount and the Company. 
  

3.2 Pending the sale of the Preferred Shares, all funds paid hereunder shall be deposited by the Company in escrow with US Bank Trust, having a branch
at 100 Wall Street, Suite 1600, NY, NY 10005. The Subscriber hereby authorizes and directs the Company and Paramount to direct the Escrow Agent to return any funds for unaccepted subscriptions to the same account from which the funds were drawn,
without interest, including any customer account maintained with Paramount. 
  
 3.3 At any time on or prior to December 15, 2004 (subject to extension or earlier termination without notice to subscribers by agreement of the Company and Paramount) as extended or earlier terminated, (the
“Offering Termination Date”), the Company may conduct a closing of the purchase and sale of Preferred Stock (a “Closing”) and may conduct subsequent Closings on an interim basis until the Maximum Offering amount (or Increased
Maximum Offering amount, if applicable) has been obtained or until the Offering Termination Date. 
  
 3.4 Certificates representing the Preferred Shares purchased by the Subscriber pursuant to this Agreement will be prepared for delivery to the Subscriber
within 10 business days following the Closing at which such purchase takes place. The Subscriber hereby authorizes and directs the Company to deliver the certificates representing the Preferred Shares purchased by the Subscriber pursuant to this
Agreement directly to the Subscriber’s account maintained by Paramount, if any, or, if no such account exists, to the residential or business address indicated on the signature page hereto. 
  
 3.5 Placement of the shares of Preferred Stock will be made by the Company
who will remit certain compensation to the Placement Agent for introduction to investors and other services. 
  
 IV. CONDITIONS TO OBLIGATIONS OF THE SUBSCRIBERS 
  
 4.1 The Subscriber’s obligation to purchase the Preferred Shares at the Closing at which such purchase is to be
consummated is subject to the fulfillment on or prior to such Closing of the following conditions, which conditions may be waived at the option of each Subscriber to the extent permitted by law: 
  
 (a) Representations and Warranties Correct. The representations and
warranties made by the Company in Article II hereof shall be true and correct in all material respects. 
  

 9 

 (b) Covenants. All covenants, agreements and conditions contained in this Agreement to be
performed by the Company on or prior to the date of such Closing shall have been performed or complied with in all material respects. 
  
 (c) No Legal Order Pending. There shall not then be in effect any legal or other order enjoining or restraining the transactions contemplated by
this Agreement. 
  
 (d) No Law Prohibiting or Restricting Such
Sale. There shall not be in effect any law, rule or regulation prohibiting or restricting such sale or requiring any consent or approval of any person, which shall not have been obtained, to issue the Securities (except as otherwise provided in
this Agreement). 
  
 V. REGISTRATION
RIGHTS 
  
 5.1 Definitions. As used in this Agreement,
the following terms shall have the following meanings. 
  
 (a)
The term “Holder” shall mean any holder of Registrable Securities. 
  
 (b) The terms “register”, “registered” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the
Securities Act, and the declaration or order of effectiveness of such registration statement or document. 
  
 (c) The term “Registrable Securities” shall mean (i) the shares of Common Stock issuable upon conversion of the shares of Preferred Stock sold
in the Offering; (ii) the shares of Common Stock issuable upon conversion of the shares of Preferred Stock underlying the Placement Warrants; and (iii) any shares of Common Stock issuable (or issuable upon the conversion or exercise of any warrant,
right or other security that is issued) pursuant to a dividend or other distribution with respect to or in replacement of any Securities; provided, however, that securities shall only be treated as Registrable Securities if and only for so long as
they (A) have not been disposed of pursuant to a registration statement declared effective by the SEC; (B) have not been sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act so that all
transfer restrictions and restrictive legends with respect thereto are removed upon the consummation of such sale; (C) are held by a Holder or a permitted transferee of a Holder pursuant to Section 5.11; and (D) may not be disposed of under Rule 144
under the Securities Act without restriction. 
  
 5.2 Piggyback
Registration. 
  
 (a) The Company agrees that if, at any
time, and from time to time, after the earlier to occur of (i) an IPO and (ii) a Trading Event, the Board of Directors of the Company (the “Board”) shall authorize the filing of a registration statement under the Securities Act (other than
the IPO or a registration statement on Form S-8, Form S-4 or any other form that does not include substantially the same information as would be required in a form for the general registration of securities) in connection with the proposed offer of
any of its securities by it or any of its stockholders, the Company shall: (A) promptly notify each Holder that such registration statement will be filed and that the Registrable Securities then held by such Holder will be included in such
registration statement at such Holder’s request; (B) cause such registration statement to cover all of such Registrable Securities issued to such Holder for which such Holder requests inclusion; (C) use best efforts to cause such registration
statement to become effective as soon as practicable; and (D) take all other reasonable action necessary 

  

 10 

 
under any Federal or state law or regulation of any governmental authority to permit all such Registrable Securities that have been issued to such Holder to
be sold or otherwise disposed of, and will maintain such compliance with each such Federal and state law and regulation of any governmental authority for the period necessary for such Holder to promptly effect the proposed sale or other disposition.

  
 (b) Notwithstanding any other provision of this Section 5.2,
the Company may at any time, abandon or delay any registration commenced by the Company. In the event of such an abandonment by the Company, the Company shall not be required to continue registration of shares requested by the Holder for inclusion,
the Holder shall retain the right to request inclusion of shares as set forth above and the withdrawn registration shall not be deemed to be a registration request for the purposes of Section 5.2(c) below. 
  
 (c) Each Holder shall have the right to request inclusion of any of its
Registrable Securities in a registration statement as described in this Section 5.2, up to three times. 
  
 5.3 Demand Registration. 
  
 (a) Registration on Request. 
  
 (i) The Company agrees that if, at any time, and from time to time, but at least 180 days after the earlier to occur of (i) an IPO and (ii) a Trading
Event, and ending on the date that is five years from the final Closing, one or more of the Holders desire to effect the registration under the Securities Act of outstanding Registrable Securities, such Holders may make a written request that the
Company effect such registration; provided that such requested registration would cover at least 51% of the Registrable Securities owned by all the Holders at such time; and provided, further, that the Holders shall be entitled
to no more than one such demand registration. 
  
 (ii) The
Company further agrees that if, at any time, and from time to time, after the Company has qualified for the use of Form S-3 or any successor form, and ending on the date that is five years from the final Closing, one or more of the Holders desire to
effect the registration under the Securities Act on Form S-3 or any successor form (“Short-Form Registration”) of outstanding Registrable Securities, such Holders may make a written request that the Company effect a Short-Form
Registration; provided that the aggregate price to the public of the shares as to which such registration is requested (based on the then current market price and before deducting underwriting discounts and commissions) would equal or exceed
$5,000,000. It is understood and agreed that the Holders may make good faith requests for Short-Form Registrations on an unlimited number of occasions; provided that, the Company shall not be required to effect more than one Short Form Registration
in any 12 month period. 
  
 (iii) Each request made by one or
more of the Holders pursuant to subsections (i) or (ii) above (the “Initiating Holders”) will specify the number of shares of Registrable Securities proposed to be sold and will also specify the intended method of disposition thereof.
Following receipt of any such request, the Company shall promptly notify all Holders other than the Initiating Holders of receipt of such request and the Company shall use best efforts to file, within 60 days of such request, the registration under
the Securities Act of the Registrable Securities which the Company has been so requested to register in the request by the Initiating Holders (and in all notices received by the Company from such other Holders within 30 days after the giving of such
notice by the Company), to the extent necessary to permit the disposition (in accordance with the intended methods thereof as aforesaid) of the Registrable Securities to be registered. If such method of disposition shall be an underwritten public
offering, the Holders of a majority of the shares of Registrable Securities to be sold in such offering may designate the managing underwriter of such offering, subject to the approval of the 

  

 11 

 
Company, which approval shall not be unreasonably withheld or delayed. The Holders will be permitted to withdraw Registrable Securities from a registration
at any time prior to the effective date of such registration; provided the remaining number of shares of Registrable Securities subject to a requested registration is not less than the minimum amount required pursuant to this Section 5.3.

  
 (b) Limitations on Demand Registration.
Notwithstanding Section 5.3(a), 
  
 (i) the Company shall not be
obligated to file a registration statement relating to a registration request pursuant to this Section 5.3 at any time during the 180-day period immediately following the effective date of a registration statement filed by the Company covering a
firm commitment underwritten public offering of securities of the Company; and if the Board determines, in its good faith judgment, that the Company should not file any registration statement otherwise required to be filed pursuant to Section 5.3 or
should withdraw any such previously filed registration statement because the Company is engaged in or in good faith plans to engage in any financing, acquisition or other material transaction which would be adversely affected by the filing or
maintenance of a registration statement otherwise required to be filed or maintained pursuant to Section 5.3, or that the Company is in the possession of material nonpublic information required to be disclosed in such registration statement or an
amendment or supplement thereto, the disclosure of which in such registration statement would be materially disadvantageous to the Company (a “Disadvantageous Condition”), the Company shall be entitled to postpone for the shortest
reasonable period of time (but not exceeding 180 days from the date of the determination), the filing of such registration statement or, if such registration statement has already been filed, may withdraw such registration statement and shall
promptly give the Holders written notice of such determination, containing a general statement of the reasons for such postponement and an approximation of the anticipated delay. If the Company shall so postpone the filing or effect the withdrawal
of the registration statement, the Holders who made the request for registration shall have the right to withdraw the request for registration by giving written notice to the Company within 30 days after receipt of the notice of postponement. Upon
the receipt of any such notice, such Holders shall forthwith discontinue use of the prospectus contained in such registration statement and, if so directed by the Company, shall deliver to the Company all copies of the prospectus then covering such
Registrable Securities current at the time of receipt of such notice (or, if no registration statement has yet been filed, all drafts of the prospectus covering such Registrable Securities). If any Disadvantageous Condition shall cease to exist, the
Company shall promptly notify the Holders to such effect. If any registration statement shall have been withdrawn, the Company shall, at such time as it is possible or, if earlier, at the end of the 180-day period following such withdrawal, file a
new registration statement covering the Registrable Securities that were covered by such withdrawn registration statement, and the effectiveness of such registration statement shall be maintained for such time as may be necessary so that the period
of effectiveness of such new registration statement, when aggregated with the period during which such withdrawn registration statement was effective, if any, shall be such time as may be otherwise required by this Agreement. The Company’s
right to delay a request for registration or to withdraw a registration statement pursuant to this Section 5.3 may not be exercised more than once in any one-year period. 
  
 5.4 Registration Procedures. Whenever required under this Article V to include Registrable Securities in a Company
registration statement, the Company shall, as expeditiously as reasonably possible: 
  
 (a) Use best efforts to (i) cause such registration statement to become effective, and (ii) cause such registration statement to remain effective until the earliest to occur of (A) such date as the sellers of
Registrable Securities (the “Selling Holders”) have completed the distribution described in the registration statement and (B) such time that all of such Registrable Securities are no 

  

 12 

 
longer, by reason of Rule 144(k) under the Act, required to be registered for the sale thereof by such Holders. The Company will also use its best efforts
to, during the period that such registration statement is required to be maintained hereunder, file such post-effective amendments and supplements thereto as may be required by the Securities Act and the rules and regulations thereunder or otherwise
to ensure that the registration statement does not contain any untrue statement of material fact or omit to state a fact required to be stated therein or necessary to make the statements contained therein, in light of the circumstances under which
they are made, not misleading; provided, however, that if applicable rules under the Securities Act governing the obligation to file a post-effective amendment permits, in lieu of filing a post-effective amendment that (i) includes any prospectus
required by Section 10(a)(3) of the Securities Act or (ii) reflects facts or events representing a material or fundamental change in the information set forth in the registration statement, the Company may incorporate by reference information
required to be included in (i) and (ii) above to the extent such information is contained in periodic reports filed pursuant to Section 13 or 15(d) of the Exchange Act in the registration statement. In the event that the Company becomes qualified
for the use of Form S-3 or any successor form at a time when any registration statement on any other Form which includes Registrable Securities is required to be maintained hereunder, the Company shall, upon the request of any Selling Holder,
subject to Section 5.5, (i) as expeditiously as reasonably possible, use best efforts to cause a Short-Form Registration covering such Registrable Securities to become effective and (ii) comply with each of the other requirements of this Section 5.4
which may applicable thereto. Upon the effectiveness of such Short-Form Registration, the Company shall be relieved of its obligations hereunder to keep in effect the registration statement which initially covered the Registrable Securities included
in such Short-Form Registration. 
  
 (b) Prepare and file with
the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such registration statement. 
  
 (c)
Make available for inspection upon reasonable notice during the Company’s regular business hours by each Selling Holder, any underwriter participating in any distribution pursuant to such registration statement, and any attorney, accountant or
other agent retained by such Selling Holder or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the Company’s officers, directors and employees to supply all information
reasonably requested by any such Selling Holder, underwriter, attorney, accountant or agent in connection with such registration statement. 
  
 (d) Furnish to the Selling Holders such numbers of copies of a prospectus, including a preliminary prospectus as amended or supplemented from time to
time, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them. 
  
 (e) Use best efforts to register and qualify the securities covered by such
registration statement under such other federal or state securities laws of such jurisdictions as shall be reasonably requested by the Selling Holders; provided, however, that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities
Act. 
  
 (f) In the event of any underwritten public offering,
enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering. Each Selling Holder participating in such underwriting shall also enter into and perform its
obligations under such an agreement. 
  

 13 

 (g) Notify each Holder of Registrable Securities covered by such registration statement, at any time
when a prospectus relating thereto is required to be delivered under the Securities Act, (i) when the registration statement or any post-effective amendment and supplement thereto has become effective; (ii) of the issuance by the SEC of any stop
order or the initiation of proceedings for that purpose (in which event the Company shall make every effort to obtain the withdrawal of any order suspending effectiveness of the registration statement at the earliest possible time or prevent the
entry thereof); (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose; and (iv) of
the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in the light of the circumstances then existing. 
  
 (h) Cause all such Registrable Securities registered hereunder to be listed on each securities exchange or quotation service on which similar securities
issued by the Company are then listed or quoted or, if no such similar securities are listed or quoted on a securities exchange or quotation service, apply for qualification and use best efforts to qualify such Registrable Securities for inclusion
on the New York Stock Exchange or listing on a quotation system of the National Association of Securities Dealers, Inc. 
  
 (i) Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and CUSIP number for all such Registrable
Securities, in each case not later than the effective date of such registration. 
  
 (j) Cooperate with the Selling Holders and the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates representing the Registrable Securities to be sold, which certificates
will not bear any restrictive legends; and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters, if any, shall request at least two business days prior to any sale of the
Registrable Securities to the underwriters. 
  
 5.5 Furnish
Information. It shall be a condition precedent to the obligation of the Company to take any action pursuant to this Article V with respect to the Registrable Securities of any Selling Holder that such Holder shall furnish to the Company such
information regarding the Holder, the Registrable Securities held by the Holder, and the intended method of disposition of such securities as shall be reasonably required by the Company to effect the registration of such Holder’s Registrable
Securities. 
  
 5.6 Registration Expenses. 
  
 (a) Expenses of Demand Registration. The Company shall bear and pay
all expenses incurred in connection with any registration, filing or qualification of Registrable Securities with respect to registrations pursuant to Section 5.3 for each Holder, including (without limitation) all registration, filing, and
qualification fees, printers and accounting fees relating or apportionable thereto (“Registration Expenses”), but excluding underwriting discounts and commissions relating to Registrable Securities and excluding any professional fees or
costs of accounting, financial or legal advisors to any of the Holders. 
  

 14 

 (b) Expenses of Company Registration. The Company shall bear and pay all Registration Expenses
incurred in connection with any registration, filing or qualification of Registrable Securities with respect to registrations pursuant to Section 5.2 for each Holder, but excluding underwriting discounts and commissions relating to Registrable
Securities and excluding any professional fees or costs of accounting, financial or legal advisors to any of the Holders. 
  
 5.7 Underwriting Requirements. In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company
shall not be required under Section 5.2 to include any of the Holders’ Registrable Securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or by
other persons entitled to select the underwriters), and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of securities, including
Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the
offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering
(the securities so included to be apportioned pro rata among the selling stockholders according to the total amount of securities entitled to be included therein owned by each selling stockholder or in such other proportions as shall mutually be
agreed to by such selling stockholders). For purposes of the preceding parenthetical concerning apportionment, for any selling stockholder who is a holder of Registrable Securities and is a partnership or corporation, the partners, retired partners
and stockholders of such holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling stockholder”, and any
pro-rata reduction with respect to such “selling stockholder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling stockholder”, as
defined in this sentence. 
  
 5.8 Delay of Registration. No
Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Article. 

 
 5.9 Indemnification. In the event that any Registrable Securities
are included in a registration statement under this Article V: 
  
 (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the
meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, or the Exchange Act, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact
contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, or any rule or regulation promulgated under the Securities Act, or the
Exchange Act, and the Company will pay to each such Holder, underwriter or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage,
liability, or action; provided, however, that the indemnity agreement contained in this Section 

  

 15 

 
5.9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs
in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter or controlling person. 
  
 (b) To the extent permitted by law, each Selling Holder will indemnify and hold harmless the Company, each of its
directors, each of its officers, each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter, any other Holder selling securities in such registration statement and any controlling person of any such
underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Securities Act, or the Exchange Act, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such
Holder expressly for use in connection with such registration; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this Section 5.9(b), in connection with
investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 5.9(b) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, further, that, in no event shall any indemnity under this Section 5.9(b) exceed
the greater of the cash value of the (i) gross proceeds from the offering received by such Holder or (ii) such Holder’s investment pursuant to this Agreement as set forth on the signature page attached hereto. 
  
 (c) Promptly after receipt by an indemnified party under this Section 5.9 of
notice of the commencement of any action (including any governmental action), such indemnified party shall, if a claim in respect thereof is to be made against any indemnifying party under this Section 5.9, deliver to the indemnifying party a
written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly notified, to assume the defense
thereof with counsel selected by the indemnifying party and approved by the indemnified party (whose approval shall not be unreasonably withheld); provided, however, that an indemnified party (together with all other indemnified parties which may be
represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 5.9, but the omission so
to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 5.9. 
  
 (d) If the indemnification provided for in this Section 5.9 is held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, liability, claim, damage, or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in 

  

 16 

 
connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the alleged omission to state a
material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.

  
 (e) Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall
control. 
  
 (f) The obligations of the Company and Holders under
this Section 5.9 shall survive the completion of any offering of Registrable Securities in a registration statement under this Article V, and otherwise. 
  
 5.10 Reports Under Securities Exchange Act of 1934. With a view to making available to the Holders the benefits of Rule 144 and any other rule or
regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to: 
  
 (a) make and keep public information available, as those terms are
understood and defined in Rule 144, at all times after 90 days after the effective date of the registration statement filed in connection with an IPO or Trading Event by the Company; 
  
 (b) file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act
and the Exchange Act; and 
  
 (c) furnish to any Holder, so long
as the Holder owns any Registrable Securities, forthwith upon request (i) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (ii) such other information as may be
reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form. 
  
 5.11 Permitted Transferees. The rights to cause the Company to register Registrable Securities granted to the Holders
by the Company under this Article V may be assigned in full by a Holder in connection with a transfer by such Holder of its Registrable Securities if: (a) such Holder gives prior written notice to the Company; (b) such transferee agrees to comply
with the terms and provisions of this Agreement; (c) such transfer is otherwise in compliance with this Agreement, (d) such transfer is otherwise effected in accordance with applicable securities laws and (e) such Holder transfers at least 10,000
shares of Registrable Securities to the transferee. Except as specifically permitted by this Section 5.11, the rights of a Holder with respect to Registrable Securities as set out herein shall not be transferable to any other Person, and any
attempted transfer shall cause all rights of such Holder therein to be forfeited. 
  
 5.12 Termination of Registration Rights The right of any Holder to request or demand inclusion in any registration pursuant to Section 5.2 and Section 5.3 shall terminate if all shares of Registrable Securities
held by such Holder may immediately be sold under Rule 144. 
  

 17 

 VI. MISCELLANEOUS 
  
 6.1 Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by registered or
certified mail, return receipt requested, or delivered by hand against written receipt therefor, addressed as follows: 
  
 if to the Company, to it at: 
  
 Chelsea Therapeutics, Inc. 
 13950 Ballantyne Corporate Place 
 Unit 325 
 Charlotte, NC 28277 
 Attn: Dr. Simon Pedder 
  
 With a copy
to: 
  
 Wyrick Robbins Yates & Ponton LLP

 4701 Lake Boone Trail, Suite 300 
 Raleigh, NC 27607 
 Attn: David Mannheim 
  
 Paramount
BioCapital, Inc. 
 787 Seventh Avenue, 48th Floor 
 New York, NY 10019

 Attn: Basil Christakos 
  
 if to the Subscriber, to the Subscriber’s address indicated on the signature page of this Agreement. 
  
 Notices shall be deemed to have been given or delivered on the date of mailing, except
notices of change of address, which shall be deemed to have been given or delivered when received. 
  
 6.2 Except as otherwise provided herein, this Agreement shall not be changed, modified or amended except by a writing signed by the parties to be charged,
and this Agreement may not be discharged except by performance in accordance with its terms or by a writing signed by the party to be charged. 
  
 6.3 Subject to the provisions of Section 5.11, this Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective
heirs, legal representatives, successors and assigns. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them. 
  
 6.4 Upon the execution and
delivery of this Agreement by the Subscriber, this Agreement shall become a binding obligation of the Subscriber with respect to the purchase of Preferred Shares as herein provided, subject, however, to the right hereby reserved by the Company to
enter into the same agreements with other subscribers and to add and/or delete other persons as subscribers. 
  
 6.5 NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT 

  

 18 

 
ALL THE TERMS AND PROVISIONS HEREOF SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE AND PROCEDURAL LAWS OF THE STATE OF DELAWARE
WITHOUT REGARD TO SUCH STATE’S PRINCIPLES OF CONFLICTS OF LAW. IN THE EVENT THAT A JUDICIAL PROCEEDING IS NECESSARY, THE SOLE FORUM FOR RESOLVING DISPUTES ARISING OUT OF OR RELATING TO THIS AGREEMENT IS THE STATE AND FEDERAL COURTS LOCATED IN
THE STATE OF DELAWARE, THE PARTIES HEREBY IRREVOCABLY CONSENT TO THE JURISDICTION OF SUCH COURTS AND AGREE TO SAID VENUE. 
  
 6.6 In order to discourage frivolous claims the parties agree that unless a claimant in any proceeding arising out of this Agreement succeeds in
establishing his claim and recovering a judgment against another party (regardless of whether such claimant succeeds against one of the other parties to the action), then the other party shall be entitled to recover from such claimant all of
its/their reasonable legal costs and expenses relating to such proceeding and/or incurred in preparation therefor. 
  
 6.7 The holding of any provision of this Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect any other
provision of this Agreement, which shall remain in full force and effect. If any provision of this Agreement shall be declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, such
provision shall be interpreted so as to remain enforceable to the maximum extent permissible consistent with applicable law and the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and
enforceable to the extent they are valid, legal and enforceable, and no provisions shall be deemed dependent upon any other covenant or provision unless so expressed herein. 
  
 6.8 It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate, or be
construed, as a waiver of any subsequent breach by that same party. 
  
 6.9 The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

  
 6.10 This Agreement may be executed in two or more
counterparts each of which shall be deemed an original, but all of which shall together constitute one and the same instrument. 
  
 6.11 Nothing in this Agreement shall create or be deemed to create any rights in any person or entity not a party to this Agreement, except (a) for the
holders of Registrable Securities and (b) for the Placement Agent pursuant to Sections 1.6(a), 1.12 and 2.10 hereof, (c) for the indemnified parties (including without limitation the Placement Agent and its sub agents, if any) pursuant to Section
1.21 hereof; and (d) that the Placement Agent may rely upon the representation and acknowledgements of the Subscriber in Articles I and VII hereof 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 19 

 VII. CONFIDENTIAL INVESTOR QUESTIONNAIRE 
  
 7.1 The Subscriber represents and warrants that he, she or it comes within
one category marked below, and that for any category marked, he, she or it has truthfully set forth, where applicable, the factual basis or reason the Subscriber comes within that category. ALL INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT
STRICTLY CONFIDENTIAL. The undersigned agrees to furnish any additional information which the Company deems necessary in order to verify the answers set forth below. 
  

			
	Category A     	  	The undersigned is an individual (not a partnership, corporation, etc.) whose individual net worth, or joint net worth with his or her spouse, presently exceeds $1,000,000.
		
	 	  	Explanation. In calculating net worth you may include equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Equity
in personal property and real estate should be based on the fair market value of such property less debt secured by such property.
		
	Category B     	  	The undersigned is an individual (not a partnership, corporation, etc.) who had an income in excess of $200,000 in each of the two most recent years, or joint income with his or her spouse in
excess of $300,000 in each of those years (in each case including foreign income, tax exempt income and full amount of capital gains and losses but excluding any income of other family members and any unrealized capital appreciation) and has a
reasonable expectation of reaching the same income level in the current year.
		
	Category C     	  	The undersigned is a director or executive officer of the Company which is issuing and selling the Preferred Shares.
		
	Category D     	  	 The undersigned is a bank; a savings and loan association; insurance company; registered investment company; registered business development company;
licensed small business investment company (“SBIC”); or employee benefit plan within the meaning of Title 1 of ERISA and (a) the investment decision is made by a plan fiduciary which is either a bank, savings and loan association,
insurance company or registered investment advisor, or (b) the plan has total assets in excess of $5,000,000 or (c) is a self directed plan with investment decisions made solely by persons that are accredited investors. (describe entity)

 
 ______________________________________________________________________________________________
  
 ______________________________________________________________________________________________

		
	Category E     	  	 The undersigned is a private business development company as defined in section 202(a)(22) of the Investment Advisors Act of 1940. (describe
entity)
  
 ______________________________________________________________________________________________
  
 ______________________________________________________________________________________________

		
	Category F     	  	The undersigned is either a corporation, partnership, Massachusetts business trust, or non-profit organization within the meaning of Section 501(c)(3) of the

  

 20 

			
	 	  	 Internal Revenue Code, in each case not formed for the specific purpose of acquiring the Preferred Shares and with total assets in excess of
$5,000,000. (describe entity)
  
 ______________________________________________________________________________________________
  
 ______________________________________________________________________________________________

		
	Category G     	  	The undersigned is a trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Preferred Shares, where the purchase is directed by a
“sophisticated investor” as defined in Regulation 506(b)(2)(ii) under the Act.
		
	Category H     	  	 The undersigned is an entity (other than a trust) in which all of the equity owners are “accredited investors” within one or more of the
above categories. If relying upon this Category alone, each equity owner must complete a separate copy of this Agreement. (describe entity)
  
 ______________________________________________________________________________________________

		
	Category I     	  	The undersigned is not within any of the categories above and is therefore not an accredited investor.
		
	 	  	The undersigned agrees that the undersigned will notify the Company at any time on or prior to the Closing Date in the event that the representations and warranties in this Agreement shall cease
to be true, accurate and complete.

  
 7.2 SUITABILITY
(please answer each question) 
  
 (a) For an individual
Subscriber, please describe your current employment, including the company by which you are employed and its principal business: 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
  
 (b) For an individual Subscriber, please describe any college or graduate degrees held by you: 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
  
 (c) For all Subscribers, please list types of prior investments: 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________ 
  
  
 (d) For all Subscribers, please state whether you have you participated in other private placements before: 
  
 YES
                                    NO
             
  

 21 

 (e) If your answer to question (d) above was “YES”, please indicate frequency of such prior
participation in private placements of: 
  

							
	 	  	Public
Companies

	  	Private
Companies

	  	Public or Private
Biotechnology Companies

	 Frequently
	  	_________	  	_________	  	__________________
	 Occasionally
	  	_________	  	_________	  	__________________
	 Never
	  	_________	  	_________	  	__________________

  
 (f) For individual
Subscribers, do you expect your current level of income to significantly decrease in the foreseeable future: 
  
 YES
                                    NO
             
  
 (g) For trust, corporate, partnership and other institutional Subscribers, do you expect your total assets to significantly decrease in the foreseeable future: 
  
 YES
                                    NO
             
  
 (h) For all Subscribers, do you have any other investments or contingent liabilities which you reasonably anticipate could cause you to need sudden cash requirements in excess of cash readily available to you:

  
 YES
                                    NO
             
  
 (i) For all Subscribers, are you familiar with the risk aspects and the non-liquidity of investments such as the securities for which you seek to subscribe? 
  
 YES
                                    NO
             
  
 (j) For all Subscribers, do you understand that there is no guarantee of financial return on this investment and that you run the risk of losing your entire investment? 
  
 YES
                                    NO
             
  
 7.3 MANNER IN WHICH TITLE IS TO BE HELD. (circle one) 
  

	 	(a)	Individual Ownership 

	 	(b)	Community Property 

	 	(c)	Joint Tenant with Right of Survivorship (both parties must sign) 

	 	(d)	Partnership* 

	 	(e)	Tenants in Common 

	 	(f)	Company* 

	 	(g)	Trust* 

	 	(h)	Other 

  

	*	If Preferred Shares are being subscribed for by an entity, the attached Certificate of Signatory must also be completed. 

  

 22 

 7.4 NASD AFFILIATION. 
  
 Are you affiliated or associated with an NASD member firm (please check one): 
  
 Yes
                                No
             
  
 If Yes, please describe: 
  
 ________________________________________________________________________________________________________ 
  
 ________________________________________________________________________________________________________ 
  
 ________________________________________________________________________________________________________ 

	*	If Subscriber is a Registered Representative with an NASD member firm, have the following acknowledgment signed by the appropriate party: 

  
 The undersigned NASD member firm acknowledges receipt of the notice required by Article 3,
Sections 28(a) and (b) of the Rules of Fair Practice. 
  

			
	  

	 Name of NASD Member Firm

		
	 By:
	 	  

	 	 	 Authorized Officer

	
	 Date:
                    

  
 7.5 The undersigned is
informed of the significance to the Company of the foregoing representations and answers contained in the Confidential Investor Questionnaire contained in this Article VII and such answers have been provided under the assumption that the Company
will rely on them. 
  

			
	Signature:	 	  

	 	 	  

	 	 	 (If purchased jointly)

		
	Print Name:	 	  

	 	 	  

	 	 	 (If purchased jointly)

	
	Date:                     

  

 23 

 NUMBER OF PREFERRED SHARES              X
$3.08 =                      (the “Purchase Price”)  
  

					
	  

 Signature
	 	 	 	  

 Signature (if purchasing
jointly)

			
	
 Name Typed or Printed
	 	 	 	
 Name Typed or Printed

			
	
 Entity Name
	 	 	 	
 Entity Name

			
	
 Address
	 	 	 	
 Address

			
	
 City, State and Zip Code
	 	 	 	
 City, State and Zip Code

			
	
 Telephone-Business
	 	 	 	
 Telephone—Business

			
	
 Telephone-Residence
	 	 	 	
 Telephone—  Residence

			
	
 Facsimile-Business
	 	 	 	
 Facsimile—  Business

			
	
 Facsimile-Residence
	 	 	 	
 Facsimile—  Residence

			
	
 Tax ID # or Social Security #
	 	 	 	
 Tax ID # or Social Security #

			
	 Name in which securities should be issued:
                            
	 	 	 	 

  
 Dated:
                    , 2004 
  
 This Subscription Agreement is agreed to and accepted as of
                    , 2004. 
  

			
	 CHELSEA THERAPEUTICS, INC.

		
	 By:
	 	 /s/ Simon Pedder, Ph.D.

	 Name:
	 	Simon Pedder, Ph.D.
	 Title:
	 	President and Chief Executive Officer

 CERTIFICATE OF SIGNATORY 
  
 (To be completed if Preferred Shares are 
 being subscribed for by an entity) 
  
 I,
                                        ,
am the
                                        
of
                                        
                     (the “Entity”). 
  
 I certify that I am empowered and duly authorized by the Entity to execute and carry out the terms of the Subscription Agreement and to purchase and hold the Preferred
Shares, and certify further that the Subscription Agreement has been duly and validly executed on behalf of the Entity and constitutes a legal and binding obligation of the Entity. 
  
 IN WITNESS WHEREOF, I have set my hand this      day of
                     ,              
  

	
	
	
 (Signature)Forms of Notice of Stock Option Grant and Stock Option Agreement

 Exhibit 10.4 
  
 CHELSEA THERAPEUTICS, INC. 
  
 AMENDED AND RESTATED 2004 STOCK PLAN 
  
 1. Purpose. The purpose of the Amended and Restated 2004 Stock Plan
(the “Plan”) of Chelsea Therapeutics, Inc. (the “Company”) is to increase shareholder value and to advance the interests of the Company by furnishing a variety of economic incentives (“Incentives”)
designed to attract, retain and motivate employees, directors and consultants. Incentives may consist of opportunities to purchase or receive shares of Common Stock, $.001 par value, of the Company (“Common Stock”) on terms
determined under this Plan. 
  
 2. Administration. The Plan
shall be administered by a committee of the Board of Directors of the Company (the “Committee”). The Committee shall consist of not less than two directors of the Company who shall be appointed from time to time by the board of
directors of the Company. Each member of the Committee shall be a “non-employee director” within the meaning of Rule 16b-3 of the Exchange Act of 1934, as amended (together with the rules and regulations promulgated thereunder, the
“Exchange Act”), and an “outside director” as defined in Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). The Committee shall have complete authority to determine all
provisions of all Incentives awarded under the Plan (as consistent with the terms of the Plan), to interpret the Plan, and to make any other determination which it believes necessary and advisable for the proper administration of the Plan. The
Committee’s decisions and matters relating to the Plan shall be final and conclusive on the Company and its participants. No member of the Committee will be liable for any action or determination made in good faith with respect to the Plan or
any Incentives granted under the Plan. The Committee will also have the authority under the Plan to amend or modify the terms of any outstanding Incentives in any manner; provided, however, that the amended or modified terms are permitted by the
Plan as then in effect and that any recipient of an Incentive adversely affected by such amended or modified terms has consented to such amendment or modification. No amendment or modification to an Incentive, however, whether pursuant to this
Section 2 or any other provision of the Plan, will be deemed to be a re-grant of such Incentive for purposes of this Plan (notwithstanding that such amendment or modification may be deemed to be a new grant of an incentive stock option, as such term
is defined in Section 422 of the Code, under the Code). If at any time there is no Committee, then for purposes of the Plan the term “Committee” shall mean the Company’s Board of Directors. 
  
 3. Eligible Participants. Employees of the Company or its subsidiaries
(including officers and employees of the Company or its subsidiaries), directors and consultants, advisors or other independent contractors who provide services to the Company or its subsidiaries (including members of the Company’s scientific
advisory board) shall become eligible to receive Incentives under the Plan when designated by the Committee. Participants may be designated individually or by groups or categories (for example, by pay grade) as the Committee deems appropriate.
Participation by officers of the Company or its subsidiaries and any performance objectives relating to such officers must be approved by the Committee. Participation by others and any performance objectives relating to others may be approved by
groups or categories (for example, by pay grade) and authority to designate participants who are not officers and to set or modify such targets may be delegated. 

 4. Types of Incentives. Incentives under the Plan may be granted in any one or a combination of
the following forms: (a) incentive stock options and non-statutory stock options (Section 6); (b) stock appreciation rights (“SARs”) (Section 7); (c) stock awards (Section 8); (d) restricted stock (Section 8); and (e) performance
shares (Section 9). Only employees of the Company shall be entitled to receive incentive stock options under Section 422 of the Code. 
  
 5. Shares Subject to the Plan. 
  
 5.1. Number of Shares. Subject to adjustment as provided in Section 11.6, the number of shares of Common Stock which may be issued
under the Plan is 1,275,000 shares of Common Stock. Of such aggregate number of shares of Common Stock that may be issued under the Plan, the maximum number of shares that may be issued as incentive stock options under Section 422 of the Code is
1,275,000. Any shares of Common Stock available for issuance as incentive stock options may be alternatively issued as other types of Incentives under the Plan. Shares of Common Stock that are issued under the Plan or that are subject to outstanding
Incentives will be applied to reduce the maximum number of shares of Common Stock remaining available for issuance under the Plan. 
  
 5.2. Cancellation. To the extent that cash in lieu of shares of Common Stock is delivered upon the exercise of an SAR pursuant to
Section 7.4, the Company shall be deemed, for purposes of applying the limitation on the number of shares, to have issued the greater of the number of shares of Common Stock which it was entitled to issue upon such exercise or on the exercise of any
related option. In the event that a stock option or SAR granted hereunder expires or is terminated or canceled unexercised or unvested as to any shares of Common Stock, such shares may again be issued under the Plan either pursuant to stock options,
SARs or otherwise. In the event that shares of Common Stock are issued as restricted stock or pursuant to a stock award and thereafter are forfeited or reacquired by the Company pursuant to rights reserved upon issuance thereof, such forfeited and
reacquired shares may again be issued under the Plan, either as restricted stock, pursuant to stock awards or otherwise. Shares of Common Stock which are withheld to pay the exercise price of an option and/or any related withholding obligations
shall again be available for issuance under the Plan. The Committee may also determine to cancel, and agree to the cancellation of, stock options in order to make a participant eligible for the grant of a stock option at a lower price than the
option to be canceled. 
  
 6. Stock Options. A stock option
is a right to purchase shares of Common Stock from the Company. The Committee may designate whether an option is to be considered an incentive stock option or a non-statutory stock option. To the extent that any incentive stock option granted under
the Plan ceases for any reason to qualify as an “incentive stock option” for purposes of Section 422 of the Code, such incentive stock option will continue to be outstanding for purposes of the Plan but will thereafter be deemed to be a
non-statutory stock option. Each stock option granted by the Committee under this Plan shall be subject to the following terms and conditions: 
  
 6.1. Price. The option price per share shall be determined by the Committee, subject to adjustment under Section 11.6. 

 

 2 

 6.2. Number. The number of shares of Common Stock subject to the option shall be
determined by the Committee, subject to adjustment as provided in Section 11.6. The number of shares of Common Stock subject to a stock option shall be reduced in the same proportion that the holder thereof exercises a SAR if any SAR is granted in
conjunction with or related to the stock option. 
  
 6.3. Duration and Time for Exercise. Subject to earlier termination as provided in Section 11.4 and except for incentive stock options which shall be subject to the provisions of Section 6.5, the term of each stock option shall be
determined by the Committee but shall not exceed ten years from the date of grant. Each stock option shall become exercisable at such time or times during its term as shall be determined by the Committee at the time of grant. The Committee may
accelerate the exercisability of any stock option. 
  
 6.4. Manner of Exercise. Subject to the conditions contained in this Plan and in the agreement with the recipient evidencing such option, a stock option may be exercised, in whole or in part, by giving written notice to the Company,
specifying the number of shares of Common Stock to be purchased and accompanied by the full purchase price for such shares. The exercise price shall be payable (a) in United States dollars upon exercise of the option and may be paid by cash;
uncertified or certified check; bank draft; (b) at the discretion of the Committee, by delivery of shares of Common Stock that are already owned by the participant in payment of all or any part of the exercise price, which shares shall be valued for
this purpose at the Fair Market Value on the date such option is exercised; or (c) at the discretion of the Committee, by instructing the Company to withhold from the shares of Common Stock issuable upon exercise of the stock option shares of Common
Stock in payment of all or any part of the exercise price and/or any related withholding tax obligations, which shares shall be valued for this purpose at the Fair Market Value or in such other manner as may be authorized from time to time by the
Committee. The shares of Common Stock delivered by the participant pursuant to Section 6.4(b) must have been held by the participant for a period of not less than six months prior to the exercise of the option, unless otherwise determined by the
Committee. Prior to the issuance of shares of Common Stock upon the exercise of a stock option, a participant shall have no rights as a shareholder. Except as otherwise provided in the Plan, no adjustment will be made for dividends or distributions
with respect to such stock options as to which there is a record date preceding the date the participant becomes the holder of record of such shares, except as the Committee may determine in its discretion. 
  
 6.5. Incentive Stock Options. Notwithstanding
anything in the Plan to the contrary, the following additional provisions shall apply to the grant of stock options which are intended to qualify as incentive stock options (as such term is defined in Section 422 of the Code): 
  
 (a) To the extent that the aggregate Fair Market Value
(determined as of the time the option is granted) of the shares of Common Stock with respect to which incentive stock options are exercisable for the first time by any participant during any calendar year (under the Plan and any other incentive
stock option plans of the Company or any subsidiary or parent corporation of the Company) shall exceed 

  

 3 

 
$100,000, such excess portion of the incentive stock options will be treated as Non-Statutory Stock Options; provided that this provision shall have no force
or effect to the extent that its inclusion in the Plan is not necessary for the Incentive to qualify as incentive stock options pursuant to Section 422 of the Code. The determination will be made by taking incentive stock options into account in the
order in which they were granted. 
  
 (b) Any
incentive stock option certificate authorized under the Plan shall contain such other provisions as the Committee shall deem advisable, but shall in all events be consistent with and contain all provisions required in order to qualify the options as
incentive stock options. 
  
 (c) All incentive
stock options must be granted within ten years from the earlier of the date on which this Plan was adopted by board of directors or the date this Plan was approved by the Company’s shareholders. 
  
 (d) Unless sooner exercised, all incentive stock options
shall expire no later than 10 years after the date of grant. No incentive stock option may be exercisable after ten (10) years from its date of grant (or five (5) years from its date of grant if, at the time the incentive stock option is granted,
the Participant owns, directly or indirectly, more than 10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary corporation of the Company). 
  
 (e) The exercise price for incentive stock options shall be
not less than 100% of the Fair Market Value of the Common Stock subject thereto on the date of grant; provided that the exercise price shall be 110% of the Fair Market Value if, at the time the incentive stock option is granted, the participant
owns, directly or indirectly, more than 10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary corporation of the Company. 
  
 6.6 Right of Redemption. The agreement with the recipient evidencing a stock option grant may include
a provision whereby the Company may elect, prior to the date of the first registration of an equity security of the Company pursuant to the Exchange Act of 1934, as amended, to repurchase from a former Company employee, director, consultant, advisor
or other independent contractor, and their respective successors and assigns, all or any part of the shares of Common Stock received by a participant pursuant to the exercise of a stock option. Any such repurchase must be made no later than six
months following the termination of the holder’s relationship with the Company giving rise to the stock option grant and at Fair Market Value, as determined by the Committee, on such date of redemption. 
  
 7. Stock Appreciation Rights. An SAR is a right to receive, without
payment to the Company, a number of shares of Common Stock, cash or any combination thereof, the amount of which is determined pursuant to the formula set forth in Section 7.4. An SAR may be granted (a) with respect to any stock option granted under
this Plan, either concurrently with the grant of such stock option or at such later time as determined by the Committee (as to all or any portion of the 

  

 4 

 
shares of Common Stock subject to the stock option), or (b) alone, without reference to any related stock option. Each SAR granted by the Committee under
this Plan shall be subject to the following terms and conditions: 
  
 7.1. Number; Exercise Price. Each SAR granted to any participant shall relate to such number of shares of Common Stock as shall be determined by the Committee, subject to adjustment as provided in Section 11.6.
In the case of an SAR granted with respect to a stock option, the number of shares of Common Stock to which the SAR pertains shall be reduced in the same proportion that the holder of the option exercises the related stock option. The exercise price
of an SAR will be determined by the Committee, in its discretion, at the date of grant but may not be less than 100% of the Fair Market Value of the shares of Common Stock subject thereto on the date of grant. 
  
 7.2. Duration. Subject to earlier termination as
provided in Section 11.4, the term of each SAR shall be determined by the Committee but shall not exceed ten years and one day from the date of grant. Unless otherwise provided by the Committee, each SAR shall become exercisable at such time or
times, to such extent and upon such conditions as the stock option, if any, to which it relates is exercisable. The Committee may in its discretion accelerate the exercisability of any SAR. 
  
 7.3. Exercise. An SAR may be exercised, in whole or
in part, by giving written notice to the Company, specifying the number of SARs which the holder wishes to exercise. Upon receipt of such written notice, the Company shall, within 90 days thereafter, deliver to the exercising holder certificates for
the shares of Common Stock or cash or both, as determined by the Committee, to which the holder is entitled pursuant to Section 7.4. 
  
 7.4. Payment. Subject to the right of the Committee to deliver cash in lieu of shares of Common Stock (which, as it pertains to
officers and directors of the Company, shall comply with all requirements of the Exchange Act), the number of shares of Common Stock which shall be issuable upon the exercise of an SAR shall be determined by dividing: 
  
 (a) the number of shares of Common Stock as to which the SAR
is exercised multiplied by the amount of the appreciation in such shares (for this purpose, the “appreciation” shall be the amount by which the Fair Market Value of the shares of Common Stock subject to the SAR on the exercise date exceeds
(1) in the case of an SAR related to a stock option, the exercise price of the shares of Common Stock under the stock option or (2) in the case of an SAR granted alone, without reference to a related stock option, an amount which shall be determined
by the Committee at the time of grant, subject to adjustment under Section 11.6); by 
  
 (b) the Fair Market Value of a share of Common Stock on the exercise date. 
  
 In lieu of issuing shares of Common Stock upon the exercise of a SAR, the Committee may elect to pay the
holder of the SAR cash equal to the Fair Market Value on the exercise date of any or all of the shares which would otherwise be issuable. No fractional 

  

 5 

 
shares of Common Stock shall be issued upon the exercise of an SAR; instead, the holder of the SAR shall be entitled to receive a cash adjustment equal to
the same fraction of the Fair Market Value of a share of Common Stock on the exercise date or to purchase the portion necessary to make a whole share at its Fair Market Value on the date of exercise. 
  
 8. Stock Awards and Restricted Stock. A stock award consists of the
transfer by the Company to a participant of shares of Common Stock, without other payment therefor, as additional compensation for services to the Company. The participant receiving a stock award will have all voting, dividend, liquidation and other
rights with respect to the shares of Common Stock issued to a participant as a stock award under this Section 8 upon the participant becoming the holder of record of such shares. A share of restricted stock consists of shares of Common Stock which
are sold or transferred by the Company to a participant at a price determined by the Committee (which price shall be at least equal to the minimum price required by applicable law for the issuance of a share of Common Stock) and subject to
restrictions on their sale or other transfer by the participant, which restrictions and conditions may be determined by the Committee as long as such restrictions and conditions are not inconsistent with the terms of the Plan. The transfer of Common
Stock pursuant to stock awards and the transfer and sale of restricted stock shall be subject to the following terms and conditions: 
  
 8.1. Number of Shares. The number of shares to be transferred or sold by the Company to a participant pursuant to a stock award or
as restricted stock shall be determined by the Committee. 
  
 8.2. Sale Price. The Committee shall determine the price, if any, at which shares of restricted stock shall be sold or granted to a participant, which may vary from time to time and among participants and which
may be below the Fair Market Value of such shares of Common Stock at the date of sale. 
  
 8.3. Restrictions. All shares of restricted stock transferred or sold hereunder shall be subject to such restrictions as the
Committee may determine, including, without limitation any or all of the following: 
  
 (a) a prohibition against the sale, transfer, pledge or other encumbrance of the shares of restricted stock, such prohibition to lapse at
such time or times as the Committee shall determine (whether in annual or more frequent installments, at the time of the death, disability or retirement of the holder of such shares, or otherwise); 
  
 (b) a requirement that the holder of shares of restricted
stock forfeit, or (in the case of shares sold to a participant) resell back to the Company at his or her cost, all or a part of such shares in the event of termination of his or her employment or consulting engagement during any period in which such
shares are subject to restrictions; or 
  
 (c)
such other conditions or restrictions as the Committee may deem advisable. 
  

 6 

 8.4. Escrow. In order to enforce the restrictions imposed by the Committee
pursuant to Section 8.3, the participant receiving restricted stock shall enter into an agreement with the Company setting forth the conditions of the grant. Shares of restricted stock shall be registered in the name of the participant and
deposited, together with a stock power endorsed in blank, with the Company. Each such certificate shall bear a legend in substantially the following form: 
  
 The transferability of this certificate and the shares of Common Stock represented by it are subject to the terms and conditions (including conditions of
forfeiture) contained in the 2004 Stock Plan of Chelsea Therapeutics, Inc., (the “Company”), as amended from time to time, and an agreement entered into between the registered owner and the Company. A copy of the 2004 Stock Plan, as
amended from time to time, and the agreement is on file in the office of the secretary of the Company. 
  
 8.5. End of Restrictions. Subject to Section 11.5, at the end of any time period during which the shares of restricted stock are
subject to forfeiture and restrictions on transfer, such shares will be delivered free of all restrictions to the participant or to the participant’s legal representative, beneficiary or heir. 
  
 8.6. Shareholder. Subject to the terms and conditions
of the Plan, each participant receiving restricted stock shall have all the rights of a shareholder with respect to shares of stock during any period in which such shares are subject to forfeiture and restrictions on transfer, including without
limitation, the right to vote such shares. Dividends paid in cash or property other than Common Stock with respect to shares of restricted stock shall be paid to the participant currently. 
  
 9. Performance Shares. A performance share consists of an award which
shall be paid in shares of Common Stock, as described below. The grant of a performance share shall be subject to such terms and conditions as the Committee deems appropriate, including the following: 
  
 9.1. Performance Objectives. Each performance share
will be subject to performance objectives for the Company or one of its operating units to be achieved by the participant before the end of a specified period. The number of performance shares granted shall be determined by the Committee and may be
subject to such terms and conditions, as the Committee shall determine. If the performance objectives are achieved, each participant will be paid in shares of Common Stock or cash as determined by the Committee. If such objectives are not met, each
grant of performance shares may provide for lesser payments in accordance with formulas established in the award. 
  
 9.2. Not Shareholder. The grant of performance shares to a participant shall not create any rights in such participant as a
shareholder of the Company, until the payment of shares of Common Stock with respect to an award. 
  

 7 

 9.3. No Adjustments. No adjustment shall be made in performance shares granted on
account of cash dividends which may be paid or other rights which may be issued to the holders of Common Stock prior to the end of any period for which performance objectives were established. 
  
 9.4. Expiration of Performance Share. If any
participant’s employment or consulting engagement with the Company is terminated for any reason other than normal retirement, death or disability prior to the achievement of the participant’s stated performance objectives, all the
participant’s rights on the performance shares shall expire and terminate unless otherwise determined by the Committee. In the event of termination of employment or consulting by reason of death, disability, or normal retirement, the Committee,
in its own discretion may determine what portions, if any, of the performance shares should be paid to the participant. 
  
 10. Change of Control. 
  
 10.1 Change in Control. For purposes of this Section 10, a “Change in Control” of the Company will mean the
following: 
  
 (a) the sale, lease, exchange or
other transfer, directly or indirectly, of substantially all of the assets of the Company (in one transaction or in a series of related transactions) to a person or entity that is not controlled by the Company; 
  
 (b) the approval by the shareholders of the Company of any
plan or proposal for the liquidation or dissolution of the Company; 
  
 (c) any person not a shareholder of the Company on the date of the Plan becomes after the effective date of the Plan the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of (i) 20% or more, but not 50% or more, of the combined voting power of the Company’s outstanding securities ordinarily having the right to vote at elections of directors, unless the transaction resulting in such ownership has been
approved in advance by the Continuing Directors (as defined below), or (ii) 50% or more of the combined voting power of the Company’s outstanding securities ordinarily having the right to vote at elections of directors (regardless of any
approval by the Continuing Directors); provided that a traditional institutional or venture capital financing transaction shall be excluded from this definition; or 
  
 (d) a merger or consolidation to which the Company is a party if the shareholders of the Company immediately
prior to the effective date of such merger or consolidation have “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act), immediately following the effective date of such merger or consolidation, of securities of the
surviving corporation representing (i) 50% or more, but less than 80%, of the combined voting power of the surviving corporation’s then outstanding securities ordinarily having the right to vote at elections of directors, unless such merger or
consolidation has been approved in advance by the Continuing Directors, or (ii) less than 50% of the combined voting power of the surviving corporation’s then outstanding securities ordinarily having the right to vote at elections of directors
(regardless of any approval by the Continuing Directors). 
  

 8 

 10.2 Continuing Directors. For purposes of this Section 10, “Continuing
Directors” of the Company will mean any individuals who are members of the Board on the effective date of the Plan and any individual who subsequently becomes a member of the Board whose election, or nomination for election by the
Company’s shareholders, was approved by a vote of at least a majority of the Continuing Directors (either by specific vote or by approval of the Company’s proxy statement in which such individual is named as a nominee for director without
objection to such nomination). 
  
 10.3
Acceleration of Incentives. Unless otherwise resolved by the Committee in its sole discretion at such time, if a Change in Control of the Company occurs whereby the acquiring entity or successor to the Company does not agree to assume the
Incentives or replace them with substantially equivalent incentive awards (as determined by the Committee in its reasonable discretion), then (a) all outstanding options and SARs will vest and will become immediately exercisable in full and, if not
exercised on the date of the Change of Control, will terminate on such date regardless of whether the participant to whom such options or SARs have been granted remains in the employ or service of the Company or any subsidiary of the Company or any
acquiring entity or successor to the Company; (b) the restrictions on all shares of restricted stock awards shall lapse immediately; and (c) all performance shares criteria shall be deemed to be met and payment made immediately. 
  
 10.4 Cash Payment for Options. If a Change in Control
of the Company occurs, then the Committee, if approved by the Committee in its sole discretion either in an agreement evidencing an option at the time of grant or at any time after the grant of an option, and without the consent of any participant
affected thereby, may determine that: 
  
 (a)
some or all participants holding outstanding options will receive, with respect to some or all of the shares of Common Stock subject to such options, as of the effective date of any such Change in Control of the Company, cash in an amount equal to
the excess of the Fair Market Value of such shares immediately prior to the effective date of such Change in Control of the Company over the exercise price per share of such options; and 
  
 (b) any options as to which, as of the effective date of any such Change in Control, the Fair Market Value
of the shares of Common Stock subject to such options is less than or equal to the exercise price per share of such options, shall terminate as of the effective date of any such Change in Control. 
  
 If the Committee makes a determination as set forth in subparagraph (a) of
this Section 10.4, then as of the effective date of any such Change in Control of the Company such options will terminate as to such shares and the participants formerly holding such options will only have the right to receive such cash payment(s).
If the Committee makes a determination as set forth in subparagraph (b) of this Section 10.4, then as of the effective date of any such Change in Control of the Company such options will terminate, become void and expire as to all unexercised shares
of Common Stock subject to such options on such date, and the participants formerly holding such options will have no further rights with respect to such options. 
  

 9 

 11. General. 
  
 11.1. Effective Date. The Plan will become effective upon approval by the Company’s board of
directors. 
  
 11.2. Duration. The Plan
shall remain in effect until all Incentives granted under the Plan have either been satisfied by the issuance of shares of Common Stock or the payment of cash or been terminated under the terms of the Plan and all restrictions imposed on shares of
Common Stock in connection with their issuance under the Plan have lapsed. No Incentives may be granted under the Plan after the earlier of the tenth anniversary of the date of the adoption of the Plan or the date the Plan is approved by the
shareholders of the Company. 
  
 11.3.
Non-transferability of Incentives. Except in the event of the holder’s death, by will or the laws of descent and distribution to the limited extent provided in the Plan or the Incentive, unless approved by the Committee, no stock option,
SAR, restricted stock or performance award may be transferred, pledged or assigned by the holder thereof, either voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise, and the Company shall not be required to
recognize any attempted assignment of such rights by any participant. During a participant’s lifetime, an Incentive may be exercised only by him or her or by his or her guardian or legal representative. 
  
 11.4. Effect of Termination or Death. In the event
that a participant ceases to be an employee of or consultant to the Company, or the participants’ other service with the Company is terminated, for any reason, including death, any Incentives may be exercised or shall expire at such times as
may be determined by the Committee in its sole discretion in the agreement evidencing an Incentive. Notwithstanding the other provisions of this Section 11.4, upon a participant’s termination of employment or other service with the Company and
all subsidiaries, the Committee may, in its sole discretion (which may be exercised at any time on or after the date of grant, including following such termination), cause options and SARs (or any part thereof) then held by such participant to
become or continue to become exercisable and/or remain exercisable following such termination of employment or service and Restricted Stock Awards, Performance Shares and Stock Awards then held by such participant to vest and/or continue to vest or
become free of transfer restrictions, as the case may be, following such termination of employment or service, in each case in the manner determined by the Committee; provided, however, that no Incentive may remain exercisable or continue to vest
beyond its expiration date. Any incentive stock option that remains unexercised more than one (1) year following termination of employment by reason of death or disability or more than three (3) months following termination for any reason other than
death or disability will thereafter be deemed to be a Non-Statutory Stock Option. 
  

 10 

 11.5. Additional Conditions. Notwithstanding anything in this Plan to the
contrary: (a) the Company may, if it shall determine it necessary or desirable for any reason, at the time of award of any Incentive or the issuance of any shares of Common Stock pursuant to any Incentive, require the recipient of the Incentive, as
a condition to the receipt thereof or to the receipt of shares of Common Stock issued pursuant thereto, to deliver to the Company a written representation of present intention to acquire the Incentive or the shares of Common Stock issued pursuant
thereto for his or her own account for investment and not for distribution; and (b) if at any time the Company further determines, in its sole discretion, that the listing, registration or qualification (or any updating of any such document) of any
Incentive or the shares of Common Stock issuable pursuant thereto is necessary on any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval of any governmental regulatory body is necessary or
desirable as a condition of, or in connection with the award of any Incentive, the issuance of shares of Common Stock pursuant thereto, or the removal of any restrictions imposed on such shares, such Incentive shall not be awarded or such shares of
Common Stock shall not be issued or such restrictions shall not be removed, as the case may be, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions
not acceptable to the Company. Notwithstanding any other provision of the Plan or any agreements entered into pursuant to the Plan, the Company will not be required to issue any shares of Common Stock under this Plan, and a participant may not sell,
assign, transfer or otherwise dispose of shares of Common Stock issued pursuant to any Incentives granted under the Plan, unless (a) there is in effect with respect to such shares a registration statement under the Securities Act of 1933, as amended
(the “Securities Act”), and any applicable state or foreign securities laws or an exemption from such registration under the Securities Act and applicable state or foreign securities laws, and (b) there has been obtained any other
consent, approval or permit from any other regulatory body which the Committee, in its sole discretion, deems necessary or advisable. The Company may condition such issuance, sale or transfer upon the receipt of any representations or agreements
from the parties involved, and the placement of any legends on certificates representing shares of Common Stock, as may be deemed necessary or advisable by the Company in order to comply with such securities laws or other restrictions. The Committee
may restrict the rights of participants to the extent necessary to comply with Section 16(b) of the Exchange Act, the Internal Revenue Code or any other applicable law or regulation. The grant of an Incentive award pursuant to the Plan shall not
limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer all or any
part of its business or assets. 
  
 11.6.
Adjustment. In the event of any recapitalization, stock dividend, stock split, combination of shares or other change in the Common Stock, the number of shares of Common Stock then subject to the Plan, including shares subject to restrictions,
options or achievements of performance shares, shall be adjusted in proportion to the change in outstanding shares of Common Stock. In the event of any such adjustments, the purchase price of any option, the performance objectives of any Incentive,
and the shares of Common Stock issuable pursuant to any Incentive shall be adjusted as and to the extent appropriate, in the discretion of the Committee, to provide participants with the same relative rights before and after such adjustment.

  

 11 

 11.7. Incentive Plans and Agreements. Except in the case of stock awards, the
terms of each Incentive shall be stated in a plan or agreement approved by the Committee. The Committee may also determine to enter into agreements with holders of options to reclassify or convert certain outstanding options, within the terms of the
Plan, as incentive stock options or as non-statutory stock options and in order to eliminate SARs with respect to all or part of such options and any other previously issued options. 
  
 11.8. Withholding. 
  
 (a) The Company shall have the right to (i) withhold and deduct from any payments made under the Plan or
from future wages of the participant (or from other amounts that may be due and owing to the participant from the Company or a subsidiary of the Company), or make other arrangements for the collection of, all legally required amounts necessary to
satisfy any and all foreign, federal, state and local withholding and employment-related tax requirements attributable to an Incentive, or (ii) require the participant promptly to remit the amount of such withholding to the Company before taking any
action, including issuing any shares of Common Stock, with respect to an Incentive. At any time when a participant is required to pay to the Company an amount required to be withheld under applicable income tax laws in connection with a distribution
of Common Stock or upon exercise of an option or SAR, the participant may satisfy this obligation in whole or in part by electing (the “Election”) to have the Company withhold from the distribution shares of Common Stock having a
value up to the amount required to be withheld. The value of the shares to be withheld shall be based on the Fair Market Value of the Common Stock on the date that the amount of tax to be withheld shall be determined (“Tax Date”).

  
 (b) Each Election must be made prior to the
Tax Date. The Committee may disapprove of any Election, may suspend or terminate the right to make Elections, or may provide with respect to any Incentive that the right to make Elections shall not apply to such Incentive. An Election is
irrevocable. 
  
 (c) If a participant is an
officer or director of the Company within the meaning of Section 16 of the Exchange Act, then an Election is subject to the following additional restrictions: 
  

(1) No Election shall be effective for a Tax Date which occurs within six months of the grant or exercise of the award, except that
this limitation shall not apply in the event death or disability of the participant occurs prior to the expiration of the six-month period. 
  
 (2) The Election must be made either six months prior to the Tax Date or must be made during a period beginning on the third business day

  

 12 

 
following the date of release for publication of the Company’s quarterly or annual summary statements of sales and earnings and ending on the twelfth
business day following such date. 
  
 (d) If the
option granted to a participant hereunder is an incentive stock option, and if the participant sells or otherwise disposes of any of the shares of Common Stock acquired pursuant to the incentive stock option on or before the later of (1) the date
two years after the date of grant, or (2) the date one year after the date of exercise, the participant shall immediately notify the Company in writing of such disposition. The participant agrees that the participant may be subject to income tax
withholding by the Company on the compensation income recognized by the participant from the early disposition by payment in cash or out of the current earnings paid to the participant. 
  
 11.9. No Continued Employment, Engagement or Right to Corporate Assets. No participant under the Plan
shall have any right, because of his or her participation, to continue in the employ of the Company for any period of time or any right to continue his or her present or any other rate of compensation. Nothing contained in the Plan shall be
construed as giving an employee, a consultant, such persons’ beneficiaries or any other person any interests of any kind in the assets of the Company or creating a trust of any kind or a fiduciary relationship of any kind between the Company
and any such person. 
  
 11.10. Deferral
Permitted. Payment of cash or distribution of any shares of Common Stock to which a participant is entitled under any Incentive shall be made as provided in the Incentive. Payment may be deferred at the option of the participant if provided in
the Incentive. 
  
 11.11. Amendment of the
Plan. The Board may amend, suspend or discontinue the Plan at any time; provided, however, that no amendments to the Plan will be effective without approval of the shareholders of the Company if shareholder approval of the amendment is then
required pursuant to Section 422 of the Code, the regulations promulgated thereunder or the rules of any stock exchange or Nasdaq or similar regulatory body. No termination, suspension or amendment of the Plan may adversely affect any outstanding
Incentive without the consent of the affected participant; provided, however, that this sentence will not impair the right of the Committee to take whatever action it deems appropriate under Sections 2, 10 and 11 of the Plan. 
  
 11.12. Definition of Fair Market Value. For purposes
of this Plan, the “Fair Market Value” of a share of Common Stock at a specified date shall, unless otherwise expressly provided in this Plan, be the amount which the Committee or the board of directors of the Company determines in
good faith in the exercise of its reasonable discretion to be 100% of the fair market value of such a share as of the date in question; provided, however, that notwithstanding the foregoing, if such shares are listed on a U.S. securities exchange or
are quoted on the Nasdaq National Market System or Nasdaq SmallCap Stock Market (“Nasdaq”), then Fair Market Value shall be determined by reference to the last sale price of a share of Common Stock on such U.S. securities exchange
or Nasdaq on the applicable date. 

  

 13 

 
If such U.S. securities exchange or Nasdaq is closed for trading on such date, or if the Common Stock does not trade on such date, then the last sale price
used shall be the one on the date the Common Stock last traded on such U.S. securities exchange or Nasdaq. 
  
 11.13 Breach of Confidentiality, Assignment of Inventions, or Non-Compete Agreements. Notwithstanding anything in the Plan to the
contrary, in the event that a participant materially breaches the terms of any confidentiality, assignment of inventions, or non-compete agreement entered into with the Company or any subsidiary of the Company, whether such breach occurs before or
after termination of such participant’s employment or other service with the Company or any subsidiary, the Committee in its sole discretion may immediately terminate all rights of the participant under the Plan and any agreements evidencing an
Incentive then held by the participant without notice of any kind. 
  
 11.13 Governing Law. The validity, construction, interpretation, administration and effect of the Plan and any rules, regulations and actions relating to the Plan will be governed by and construed exclusively
in accordance with the laws of the State of North Carolina, notwithstanding the conflicts of laws principles of any jurisdictions. 
  
 11.14 Successors and Assigns. The Plan will be binding upon and inure to the benefit of the successors and permitted assigns of the
Company and the participants in the Plan. 
  
 11.15 Lock-up Agreement. Each recipient of securities hereunder agrees, in connection with the first registration with the United States Securities and Exchange Commission under the Securities Act of 1933, as amended, of the public
sale of the Company’s Common Stock, not to sell, make any short sale of, loan, grant any option for the purchase of or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written
consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective date of such registration as the Company or the underwriters, as the case may be, shall specify. Each such recipient
agrees that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce this Section. Each such recipient agrees to execute a form of agreement reflecting the foregoing restrictions as requested by the
underwriters managing such offering. 
  

 14 

 CHELSEA THERAPEUTICS, INC. 
 2004 Stock Plan 
 NOTICE OF STOCK OPTION GRANT 
  

					
	  

	 	 	 	  

	 (Optionee and address)

	 	 	 	  Grant Number  
	  

	 	 	 	 

  
 You have been granted
an option to purchase Common Stock of Chelsea Therapeutics, Inc. (the “Company”), as follows: 
  

					
	Date of Grant	 	______________
		
	Vesting Commencement Date	 	______________
		
	Exercise Price per Share	 	______________
		
	Total Number of Shares Granted	 	______________
		
	Total Exercise Price	 	______________
			
	Type of Option:	 	                     Incentive Stock Option	 	 
			
	 	 	                     Nonstatutory Stock Option	 	 
			
	Term/Expiration Date:	 	10 Years/                    	 	 
			
	 	 	5 Years/                    	 	 
		
	Vesting Schedule:	 	Subject to accelerated vesting as set forth in the Plan or in the Stock Option Agreement, this Option may be exercised, in whole or in part, in accordance with the following
schedule: A) one half of the shares subject to the Option shall vest on the date one year from the Vesting Commencement Date; and B) one half of the shares subject to the Option shall vest on the date that is two years after the Vesting Commencement
Date; provided that such optionee remains an employee of, or consultant to, the Company as of each such vesting date.
		
	Termination Period:	 	Option may be exercised for up to 90 days after termination of employment or consulting relationship except as set out in Sections 7 and 8 of the Stock Option Agreement (but in no
event later than the Expiration Date. By your signature and the signature of the Company’s representative below, you and the Company agree that this option is granted under and governed by the terms and conditions of the Chelsea Therapeutics,
Inc. 2004 Stock Plan (the “Plan”) and the Stock Option Agreement, all of which are attached and made a part of this document.

 Dated:
                     
  

					
	OPTIONEE:	 	CHELSEA THERAPEUTICS, INC.
			
	  

	 	By:	 	  

	 	 	Name:	 	  

	
 Print Name
	 	Title:	 	  

 CHELSEA THERAPEUTICS, INC. 
  
 STOCK OPTION AGREEMENT 
  
 1. Grant of Option. Chelsea Therapeutics, Inc., a Delaware corporation (the “Company”), hereby grants to the Optionee named in the Notice
of Grant (the “Optionee”) an option (the “Option”) to purchase a total number of shares of Common Stock (the “Shares”) set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant
(the “Exercise Price”) subject to the terms, definitions and provisions of the Chelsea Therapeutics, Inc. 2004 Stock Plan (the “Plan”) adopted by the Company, which is incorporated herein by reference. Unless otherwise defined
herein, the terms defined in the Plan shall have the same defined meanings in this Option. To the extent of any conflict between the terms of this Stock Option Agreement and the Plan, the terms of the Plan shall control. 
  
 If designated an Incentive Stock Option, this Option is intended to qualify
as an Incentive Stock Option as defined in Section 422 of the Code, or any successor provision. 
  
 2. Exercise of Option. This Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant, the
terms of the Plan and as follows: 
  
 (a) Right to
Exercise. 
  
 (i) This Option may not be exercised for a
fraction of a share. 
  
 (ii) In the event of Optionee’s
death, disability or other termination of employment, the exercisability of the Option is governed by Sections 6, 7 and 8 below, subject to the limitation contained in subsection 2(a)(iii). 
  
 (iii) In no event may this Option be exercised after the date of expiration
of the term of this Option as set forth in the Notice of Grant. 
  
 (b) Method of Exercise. This Option shall be exercisable by written notice (in the form attached hereto as Exhibit A) which shall state the election to exercise the Option, the number of Shares in respect of which the
Option is being exercised, and such other representations and agreements as to the holder’s investment intent with respect to such shares of Common Stock as may be required by the Company pursuant to the provisions of the Plan. Such written
notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised upon
receipt by the Company of such written notice accompanied by the Exercise Price. 
  
 No Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions of law and the requirements of any stock exchange upon which the Shares
may then be listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is exercised with respect to such Shares. 

 3. Optionee’s Representations. In the event the Shares purchasable pursuant to the exercise
of this Option have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), at the time this Option is exercised, Optionee shall, if required by the Company, concurrently with the exercise of all or any
portion of this Option, deliver to the Company an Investment Representation Statement in the form attached hereto as Exhibit B. 
  
 4. Method of Payment. Payment of the Exercise Price shall be by cash, check or any combination thereof, at the election of the Optionee.

  
 5. Restrictions on Exercise. This Option may not be
exercised until such time as (a) the Plan and the Shares covered by this Option have been approved by the stockholders of the Company and (b) the issuance of such Shares upon such exercise or the method of payment of consideration for such shares
does not constitute a violation of any applicable federal or state securities or other law or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations (“Regulation G”) as promulgated by the Federal
Reserve Board. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 
  
 6. Termination of Relationship. In the event of termination of
Optionee’s employment or consulting relationship with the Company, Optionee may, to the extent otherwise so entitled at the date of such termination (the “Termination Date”), exercise this Option during the Termination Period set out
in the Notice of Grant. To the extent that Optionee was not entitled to exercise this Option at the date of such termination, or if Optionee does not exercise this Option within the time specified herein, the Option shall terminate. 
  
 7. Disability of Optionee. Notwithstanding the provisions of Section 6
above, in the event of termination of Optionee’s consulting or employment relationship as a result of his total and permanent disability (as defined in Section 22(e)(3) of the Code or any successor provision), Optionee may, but only within
twelve (12) months from the date of termination of employment or consulting relationship (but in no event later than the date of expiration of the term of this Option as set forth in Section 10 below), exercise this Option to the extent Optionee was
entitled to exercise it at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the date of termination, or if Optionee does not exercise such Option (which Optionee was entitled to exercise) within
the time specified herein, the Option shall terminate. 
  
 8.
Death of Optionee. In the event of the death of Optionee during the term of this Option and, with respect to a Consultant, during such Consultant’s continuing consulting relationship with the Company or within 90 days of termination of
Consultant’s relationship with the Company and, with respect to an employee, during such employee’s employment relationship with the Company or within 90 days of termination of such employee’s relationship with the 

  

 2 

 
Company, the Option may be exercised at any time within twelve (12) months following the date of termination (but in no event later than the date of
expiration of the term of this Option as set forth in Section 10 below), by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that Optionee
was entitled to at the date of death. 
  
 9. Nontransferability
of Option. This Option may not be transferred in any manner other than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by Optionee. The terms of this Option shall be binding upon the
executors, administrators, heirs, successors and assigns of the Optionee. 
  
 10. Term of Option. This Option may be exercised only within the term set out in the Notice of Grant and the Plan, and may be exercised during such term only in accordance with the Plan and the terms of this
Option. 
  
 11. Taxation Upon Exercise of Option. Optionee
understands that, upon exercising a Nonstatutory Stock Option, he or she will recognize income for tax purposes in an amount equal to the excess of the then fair market value of the Shares over the exercise price. If the Optionee is an employee, the
Company will be required to withhold from Optionee’s compensation, or collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. Additionally, the Optionee may at some point
be required to satisfy tax withholding obligations with respect to the disqualifying disposition of an Incentive Stock Option. The Optionee shall satisfy his or her tax withholding obligation arising upon the exercise of a Nonstatutory Stock Option
or a disqualifying disposition by one or some combination of the following methods: (i) by cash payment, or (ii) out of Optionee’s current compensation, or (iii) if permitted by the Committee, in its discretion, by surrendering to the Company
Shares that (a) in the case of Shares previously acquired from the Company, have been owned by the Optionee for more than six months on the date of surrender, and (b) have a fair market value on the date of surrender equal to or greater than
Optionee’s marginal tax rate times the ordinary income recognized, or (iv) if permitted by the Committee, in its discretion, and if the Option is designated as a Nonstatutory Stock Option by electing to have the Company withhold from the Shares
to be issued upon exercise of the Option that number of Shares having a fair market value equal to the amount required to be withheld. For this purpose, the fair market value of the Shares to be withheld shall be determined on the date that the
amount of tax to be withheld is to be determined (the “Tax Date”). 
  
 If the Optionee is subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (an “Insider”), any surrender of previously owned Shares to satisfy tax withholding
obligations arising upon exercise of this Option must comply with the applicable provisions of Rule 16b-3 promulgated under the Exchange Act (“Rule 16b-3”) and shall be subject to such additional conditions or restrictions as may be
required thereunder to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 
  
 All elections by an Optionee to have Shares withheld to satisfy tax-withholding obligations shall be made in writing in a form acceptable to the Committee
and shall be subject to the following restrictions: 
  

	 	(1)	the election must be made on or prior to the applicable Tax Date; 

  

 3 

	 	(2)	once made, the election shall be irrevocable as to the particular Shares of the Option as to which the election is made; 

  

	 	(3)	all elections shall be subject to the consent or disapproval of the Committee; 

  

	 	(4)	if the Optionee is an Insider, the election must comply with the applicable provisions of Rule 16b-3 and shall be subject to such additional conditions or restrictions as may be
required thereunder to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 

  
 12. Tax Consequences. Set forth below is a brief summary as of the date of this Option of some of the federal tax consequences of exercise of this
Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 
  
 (a) Exercise of ISO. If this Option qualifies as an ISO, there will
be no regular federal income tax liability upon the exercise of the Option, although the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price will be treated as an item of adjustment to the
alternative minimum tax for federal tax purposes in the year of exercise and may subject the Optionee to the alternative minimum tax. 
  
 (b) Exercise of Nonstatutory Stock Option. If this Option does not qualify as an ISO, there may be a regular federal income tax liability upon the
exercise of the Option. The Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price
and the Company will qualify for a deduction in the same amount, subject to the requirement that the compensation be reasonable. If Optionee is an employee, the Company will be required to withhold from Optionee’s compensation or collect from
Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 
  
 (c) Disposition of Shares. In the case of an NSO, if Shares are held for at least one year, any gain realized on disposition of the Shares will be
treated as long-term capital gain for federal income tax purposes. In the case of an ISO, if Shares transferred pursuant to the Option are held for at least one year after exercise and are disposed of at least two years after the Date of Grant, any
gain realized on disposition of the Shares will also be treated as long-term capital gain for federal income tax purposes. If Shares purchased under an ISO are disposed of 

  

 4 

 
within one-year after exercise or within two years after the Date of Grant, any gain realized on such disposition will be treated as compensation income
(taxable at ordinary income rates) in an amount equal to the excess of the lesser of (1) the fair market value of the Shares on the date of exercise, or (2) the sale price of the Shares over the Exercise Price paid for those shares. The Company will
also be allowed a deduction equal to any such amount recognized, subject to the requirement that the compensation be reasonable. 
  
 (d) Notice of Disqualifying Disposition of ISO Shares. If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise
disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify the Company in writing of
such disposition. Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee from the early disposition by payment in cash or out of the current earnings paid to the
Optionee. 
  
 13. Company’s Right of First Refusal.
Before any Shares held by Optionee or any transferee (either being sometimes referred to herein as the “Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall
have a right of first refusal to purchase the Shares on the terms and conditions set forth in this Section (the “Right of First Refusal”). 
  
 (a) Notice of Proposed Transfer. The Holder of the Shares shall deliver to the Company a written notice (the “Notice”) stating: (i) the
Holder’s bona fide intention to sell or otherwise transfer such Shares; (ii) the name of each proposed transferee (“Proposed Transferee”); (iii) the number of Shares to be transferred to each Proposed Transferee; and (iv) the bona
fide cash price or other consideration for which the Holder proposes to transfer the Shares (the “Offered Price”), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s). 
  
 (b) Exercise of Right of First Refusal. At any time within thirty (30)
days after receipt of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of the Proposed Transferees,
at the purchase price determined in accordance with subsection (c) below. 
  
 (c) Purchase Price. The purchase price (“Purchase Price”) for the Shares purchased by the Company or its assignee(s) under this Section shall be the Offered Price. If the Offered Price includes
consideration other than cash, the cash equivalent value of the noncash consideration shall be determined by the Board of Directors of the Company in good faith. 
  
 (d) Payment. Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash
(by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within 30 days after receipt of the Notice or
in the manner and at the times set forth in the Notice. 
  

 5 

 (e) Holder’s Right to Transfer. If all of the Shares proposed in the Notice to be transferred
to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the Offered Price or at a higher price,
provided that such sale or other transfer is consummated within 90 days after the date of the Notice and provided further that any such sale or other transfer is effected in accordance with any applicable securities laws and the Proposed Transferee
agrees in writing that the provisions of this Section and the Plan shall continue to apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not transferred to the Proposed Transferee within such
period at the Offered Price or a higher price, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise
transferred. 
  
 (f) Exception for Certain Family
Transfers. Anything to the contrary contained in this Section notwithstanding, the transfer of any or all of the Shares on the Optionee’s death by will or intestacy to the Optionee’s immediate family or a trust for the benefit of the
Optionee’s immediate family shall be exempt from the provisions of this Section. “Immediate Family” as used herein shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister. In such case, the
transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of this Section and the Plan, and there shall be no further transfer of such Shares except in accordance with the terms of this Section and the
Plan. 
  
 (g) Termination of Right of First Refusal. The
Right of First Refusal shall terminate as to any Shares 90 days after the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange
Commission under the Securities Act. 
  
 14. Restrictive
Legends and Stop-Transfer Orders. 
  
 (a) Legends.
Optionee understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be
required by state or federal securities laws: 
  
 THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL
IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
  

 6 

 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN (A) RESTRICTIONS ON TRANSFER AND RIGHT
OF FIRST REFUSAL OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AND (B) DRAG-ALONG RIGHTS AS SET FORTH IN THE ISSUER’S STOCK PLAN AND THE STOCK OPTION AGREEMENT RELATING TO THESE SHARES, COPIES OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF
THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 
  
 (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue
appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 
  
 (c) Refusal to Transfer. The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any transferee to whom
such Shares shall have been so transferred. 
  
 15. Successors
and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
herein set forth, this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors and assigns. 
  
 16. Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or by the Company forthwith to the
Company’s Board of Directors or the Committee that administers the Plan, which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Board or committee shall be final and binding on the Company and on
Optionee. 
  
 17. Governing Law; Severability. This
Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina excluding that body of law pertaining to conflicts of law. Should any provision of this Agreement be determined by a court of law to be illegal
or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable. 
  
 18. Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or
upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to the other party at its address as shown below beneath its signature, or to such other address as such party may designate in writing from time to
time to the other party. 
  

 7 

 19. Further Instruments. The parties agree to execute such further instruments and to take such
further action as may be reasonably necessary to carry out the purposes and intent of this Agreement. 
  
 20. 2004 Stock Plan. Optionee acknowledges receipt of a copy of the Plan and represents that he is familiar with the terms and provisions thereof,
and hereby accepts this Option subject to all of the terms and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board or Committee upon any questions arising under the Plan or this Option. 
  
 21. Lock-up Agreement. Optionee agrees, in connection with the first
registration with the United States Securities and Exchange Commission under the Securities Act of 1933, as amended, of the public sale of the Company’s Common Stock, not to sell, make any short sale of, loan, grant any option for the purchase
of or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from
the effective date of such registration as the Company or the underwriters, as the case may be, shall specify. Optionee agrees that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce this Section
21. Optionee agrees to execute a form of agreement reflecting the foregoing restrictions as requested by the underwriters managing such offering. 
  
 22. Drag Along Rights. 
  
 (a) Optionee hereby agrees that if the holders of at least a majority of the outstanding voting securities voting together as a single class (on an
as-converted to Common Stock basis) (the “Consenting Stockholders”) approve of a merger or consolidation of the Company (other than a transaction pursuant to which the holders of the Company’s outstanding voting securities own 50% or
more of the outstanding voting securities of the surviving entity), a sale of all the Company’s capital stock or sale of all or substantially all of the assets of the Company (each a “Drag-Along Sale”), and such Drag-Along Sale is
approved by a majority of the members of the Board of Directors of the Company, then the Consenting Stockholders will be entitled to cause Optionee to sell all of his shares of the Company’s capital stock in the Drag-Along Sale and to vote all
of his shares of capital stock in favor of such a transaction (the “Drag-Along Right”). The Company shall, promptly following notice from the Consenting Stockholders (which notice shall be signed by the requisite number of Consenting
Stockholders or include a copy of a consent of such stockholders) that they desire to exercise the Drag-Along Right, give to Optionee a notice (a “Drag-Along Notice”) containing a description of the material terms of such proposed
transaction including the name and address of the acquiring party, the consideration per share offered by the acquiring party, the payment terms and closing date, which shall be a date not less than thirty (30) days after the giving of the
Drag-Along Notice, and including a copy of any written offer, letter of intent, term sheet or contract of sale for such Drag-Along Sale. Notwithstanding the foregoing, any merger or consolidation of the Company, sale of 

  

 8 

 
the Company’s capital stock, or sale of all or substantially all of the assets of the Company shall not be deemed a “Drag-Along Sale” for
purposes of this Section if (i) the liability of any of the Company’s stockholders (as stockholders) under the transaction documents or other instruments effecting or relating to such merger, consolidation or sale of the Company’s capital
stock or assets (the “Sale Transaction Documents”) is joint or not several from the liability of any other stockholder of the Company; or (ii) if the liability of a stockholder under the Sale Transaction Documents may exceed the lesser of
(A) such stockholder’s pro rata portion (based upon the number of shares of Common Stock held on an as-converted to Common Stock basis by such stockholder in relation to the number of shares of Common Stock held on an as-converted to Common
Stock basis by all stockholders of the Company) of a claim for which such stockholder may be liable under the Sale Transaction Documents, or (B) the value of the consideration actually to be received by such stockholder (as a stockholder or
otherwise) in connection with such merger, consolidation or sale of the Company’s capital stock or assets. 
  
 (b) In connection with the pursuit and consummation of any Drag-Along Sale provided for above, Optionee hereby: (i) grants the Secretary of the Company an
irrevocable proxy (which shall be and shall be deemed to be coupled with an interest) to vote (by actual vote or by written consent) the shares held by Optionee or his successors and permitted assigns and transferees in favor of any Drag-Along Sale
pursued in connection with this Section in the event that such Optionee or his successors and permitted assigns and transferees fail to consent in writing or vote for any such Drag-Along Sale; provided the sale is effected substantially in
accordance with the material terms set forth in the Drag-Along Notice; and (ii) agrees to promptly execute and deliver (without unreasonable condition or delay) any transaction agreement(s) and documentation (including, without limitation,
stockholder agreements, waivers and releases, and affiliate letters) deemed necessary, appropriate or advisable by the Company or a majority of the Consenting Stockholders in connection with the Drag-Along Sale. In the event that Optionee or his
successors or permitted assigns and transferees fails to promptly execute and deliver any such transaction agreement(s) and documentation, or attempts to unreasonably condition or delay the execution or delivery thereof, the Company (or its
designee) shall be deemed to have been irrevocably appointed as the attorney-in-fact of Optionee (or the successor or permitted assignees or transferees thereof), with full power to execute and deliver any and all such transaction agreement(s) and
documentation in the name and on behalf of Optionee (or the successor or permitted assignees or transferees thereof). In addition to any other rights and remedies available to it at law or in equity, the Consenting Stockholders (and, with respect to
the immediately preceding sentence, the Company) will be entitled to specifically enforce the terms of this Agreement with respect to or related to any Drag-Along Sale. 
  
 (c) The rights and obligations established in this Section shall terminate upon the earlier of (a) the closing of a public
offering pursuant to an effective registration statement under the Securities Act, covering the offer and sale of the Company’s Common Stock and (b) any acquisition of the Company effected by means of merger, consolidation, share exchange or
other form of corporate reorganization in which outstanding shares of the Company are exchanged for securities or other consideration issued, or caused to be issued, by the acquiring corporation or its affiliate, or a sale of all or substantially
all of the assets of the Company. 
  

 9 

 EXHIBIT A 
  
 CHELSEA THERAPEUTICS, INC. 
  
 EXERCISE NOTICE 
  

	
	Chelsea Therapeutics, Inc.
	  

	  

	Attention: Secretary

  
 1. Exercise of
Option. Effective as of today, the undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase
                     shares of the Common Stock (the “Shares”) of Chelsea Therapeutics, Inc. (the “Company”) under and
pursuant to the Company’s 2004 Stock Plan (the “Plan”) and the Notice of Stock Option Grant dated             , 200     with its attached
Stock Option Agreement (the “Option Agreement”). The purchase price for the Shares shall be $                     as required by the
Option Agreement. Optionee herewith delivers to the Company the full Exercise Price for the Shares. 
  
 2. Representations of Optionee. Optionee acknowledges that Optionee has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions. Optionee represents that Optionee is purchasing the Shares for Optionee’s own account for investment and not with a view to, or for sale in connection with, a distribution of any of such
Shares. 
  
 3. Compliance with Securities Laws. Optionee
understands and acknowledges that the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and, notwithstanding any other provision of the Option Agreement to the contrary, the exercise of
any rights to purchase any Shares is expressly conditioned upon compliance with the Securities Act, all applicable state securities laws and all applicable requirements of any stock exchange or over the counter market on which the Company’s
Common Stock may be listed or traded at the time of exercise and transfer. Optionee agrees to cooperate with the Company to ensure compliance with such laws. 
  
 4. Federal Restrictions on Transfer. Optionee understands that the Shares have not been registered under the Securities Act and therefore cannot be
resold and must be held indefinitely unless they are registered under the Securities Act or unless an exemption from such registration is available and that the certificate(s) representing the Shares may bear a legend to that effect. Optionee
understands that the Company is under no obligation to register the Shares and that an exemption may not be available or may not permit Optionee to transfer Shares in the amounts or at the times proposed by Optionee. Specifically, Optionee has been
advised that Rule 144 promulgated under the Securities Act, which permits certain resales of unregistered securities, is not presently available with respect to the Shares and, in any event requires that the Shares be paid for and then be held for
at least one year (and in some cases two years) before they may be resold under Rule 144. 

 5. Rights as Stockholder. Until the stock certificate evidencing such Shares is issued (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the optioned Shares,
notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. 
  
 Optionee shall enjoy rights as a stockholder until such time as Optionee disposes of the Shares or the Company and/or its assignee(s) exercises the Right
of First Refusal pursuant to the Option Agreement. Upon such exercise, Optionee shall have no further rights as a holder of the Shares so purchased except the right to receive payment for the Shares so purchased in accordance with the provisions of
this Agreement, and Optionee shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation. 
  
 6. Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of
Optionee’s purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on
the Company for any tax advice. 
  
 7. Entire Agreement.
The Plan and Option Agreement are incorporated herein by reference. This Exercise Notice, the Plan and the Option Agreement and any Investment Representation statement executed and delivered to Company by Optionee shall constitute the entire
agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and is governed by North Carolina law except for that body of law pertaining to
conflict of laws. 
  

									
	Submitted by:	 	 	 	Accepted by:
			
	OPTIONEE:	 	 	 	Chelsea Therapeutics, Inc.
				
	  

	 	 	 	By:	 	  

	 	 	 	 	 	 	Name:	 	  

	 	 	 	 	 	 	Title:	 	  

					
	Address:	 	  

	 	 	 	Address:	 	  

	  

	 	 	 	  

	  

	 	 	 	  

 EXHIBIT B 
  
 INVESTMENT REPRESENTATION STATEMENT 
  

					
	OPTIONEE	 	:	  	__________________________________________
			
	COMPANY	 	:	  	Chelsea Therapeutics, Inc.
			
	SECURITY	 	:	  	Common Stock
			
	AMOUNT	 	:	  	______________________________ Shares 

  
 In connection with the purchase of the
above-listed Securities, I, the Optionee, represent to the Company the following. 
  
 1. Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the securities.
Optionee is purchasing the securities for investment for Optionee’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended
(the “Securities Act”). 
  
 2. Optionee understands that
the securities have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee’s investment intent as expressed herein.

  
 3. Optionee further understands that the securities must be
held indefinitely unless subsequently registered under the Securities Act or unless an exemption from registration is available. Moreover, Optionee understands that the Company is under no obligation to register the securities. In addition, Optionee
understands that the certificate evidencing the securities will be imprinted with a legend that prohibits the transfer of the securities unless they are registered or such registration is not required in the opinion of counsel for the Company.

  
 4. Optionee is familiar with the provisions of Rules 144,
144(k) and 701, promulgated under the Securities Act, that permit limited public resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof (or from an affiliate of such issuer) in a nonpublic offering,
subject to the satisfaction of certain conditions. 
  
 Subject to
any lock-up agreement, in the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the securities exempt under Rule 701 may be
resold by the Optionee 90 days thereafter, subject to the satisfaction of certain of the conditions 

 
specified by Rule 144, including: (a) the sale being made through a broker in an unsolicited “broker’s transaction” or in transactions
directly with a market maker (as that term is defined under the Exchange Act); and (b) in the case of an affiliate, the availability of certain public information about the Company, and the amount of securities being sold during any three-month
period not exceeding the limitations specified in Rule 144(e), if applicable. 
  
 If the purchase of the securities does not qualify under Rule 701 at the time of purchase, then the securities may be resold by the Optionee in certain limited circumstances subject to the provisions of Rule 144,
which require: (a) the availability of certain public information about the Company; (b) the resale occurring not less than one year after the party has purchased, and made full payment (within the meaning of Rule 144) for, the securities to be
sold; and (3) in the case of an affiliate, or of a nonaffiliate who has held the securities less than two years, the sale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market
maker (as that term is defined under the Exchange Act) and the amount of securities being sold during any three-month period not exceeding the specified limitations. 
  
 If all of the requirements of Rule 144 are not satisfied, Optionee may be able to sell the securities without registration
pursuant to the exemption contained in Rule 144(k), provided that the resale occurs not less than two years after the party has purchased, and made full payment (within the meaning of Rule 144) for, the securities. 
  
 5. Optionee further understands that at the time Optionee wishes to sell the
securities there may be no public market upon which to make such a sale, and that, even if such a public market then exists, the Company may not be satisfying the current public information requirements of Rules 144 or 701, and that, in such event,
Optionee would be precluded from selling the securities under Rules 144 or 701 even if the one-year minimum holding period had been satisfied; however, Optionee may be able to sell the securities pursuant to the exemptions contained in Rule 144(k)
if the two-year holding period has been satisfied. 
  
 6. Optionee
further understands that in the event all of the applicable requirements of Rules 144, 144(k) or 701 are not satisfied, registration under the Securities Act or some registration exemption will be required; and that, notwithstanding the fact that
Rules 144, 144(k) and 701 are not exclusive, the Staff of the SEC has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144, 144(k) or 701 will
have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their brokers who participate in such transactions do so at their own risk. 
  

					
	Date	 	 	 	Signature of Optionee:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]