Document:

EX-10.1

 Exhibit No. 10.1 

 

Confidential Materials omitted and filed separately with the 

Securities and Exchange Commission. Double asterisks denote omissions. 

COLLABORATIVE RESEARCH, DEVELOPMENT 
 AND LICENSE AGREEMENT 
 By and Between 

CURIS, INC. 
 and 
 GENENTECH, INC. 

 Table of Contents 

 

									
	1.	  	DEFINITIONS	  	 	1	  
			
	2.	  	CONDUCT OF COLLABORATION; GOVERNANCE	  	 	9	  
				
		  	2.1	  	Objective	  	 	9	  
				
		  	2.2	  	Joint Steering Committee	  	 	9	  
				
		  	2.3	  	Co-Development Steering Committee	  	 	10	  
				
		  	2.4	  	Product Prioritization	  	 	11	  
			
	3.	  	RESEARCH PROGRAM; DESIGNATION AND DEVELOPMENT OF LEAD PRODUCTS	  	 	11	  
				
		  	3.1	  	Research Plan	  	 	11	  
				
		  	3.2	  	Designation of Lead Products	  	 	12	  
				
		  	3.3	  	Genentech Development and Commercialization Responsibilities	  	 	12	  
			
	4.	  	CO-DEVELOPMENT OF COLLABORATION PRODUCTS	  	 	13	  
				
		  	4.1	  	Co-Development Plan and Budget	  	 	13	  
				
		  	4.2	  	Collaboration Products	  	 	13	  
				
		  	4.3	  	Sharing of Operating Profits (Losses)	  	 	15	  
				
		  	4.4	  	Co-Development Responsibilities	  	 	15	  
			
	5.	  	TECHNOLOGY TRANSFER; THIRD PARTY LICENSORS	  	 	16	  
				
		  	5.1	  	Transfer of Materials	  	 	16	  
				
		  	5.2	  	IND Transfer	  	 	16	  
				
		  	5.3	  	Transfer of Data	  	 	16	  
				
		  	5.4	  	Existing License Agreements	  	 	16	  
				
		  	5.5	  	Research Materials	  	 	17	  
			
	6.	  	CURIS DEVELOPMENT RIGHTS	  	 	17	  
				
		  	6.1	  	Development of Compounds Other Than Lead Products	  	 	17	  
				
		  	6.2	  	Commercialization of Curis Products	  	 	19	  
			
	7.	  	LICENSE GRANTS	  	 	20	  
				
		  	7.1	  	License Grants to Genentech	  	 	20	  
				
		  	7.2	  	License Grants to Curis	  	 	21	  
				
		  	7.3	  	Retained Rights	  	 	22	  
				
		  	7.4	  	No Implied Licenses	  	 	22	  
			
	8.	  	FEES AND PAYMENTS	  	 	22	  

  
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		  	8.1	  	Upfront Fee	  	 	22	  
				
		  	8.2	  	Annual License Fee	  	 	22	  
				
		  	8.3	  	Equity Investment	  	 	23	  
				
		  	8.4	  	Milestone Payments	  	 	23	  
				
		  	8.5	  	Royalties Payable by Genentech	  	 	25	  
				
		  	8.6	  	Royalties Payable by Curis	  	 	27	  
				
		  	8.7	  	Payments to Evotec OAI	  	 	28	  
				
		  	8.8	  	Payments to Third Party Licensors	  	 	28	  
			
	9.	  	PAYMENTS; RECORDS; AUDITS	  	 	28	  
				
		  	9.1	  	Payment; Reports	  	 	28	  
				
		  	9.2	  	Exchange Rate; Manner and Place of Payment	  	 	29	  
				
		  	9.3	  	Late Payments	  	 	29	  
				
		  	9.4	  	Records and Audits	  	 	29	  
				
		  	9.5	  	Withholding of Taxes	  	 	29	  
				
		  	9.6	  	Exchange and Royalty Rate Controls	  	 	30	  
			
	10.	  	INTELLECTUAL PROPERTY	  	 	30	  
				
		  	10.1	  	Ownership of Technology	  	 	30	  
				
		  	10.2	  	Patent Prosecution	  	 	30	  
				
		  	10.3	  	Cooperation of the Parties	  	 	31	  
				
		  	10.4	  	Infringement by Third Parties	  	 	32	  
				
		  	10.5	  	Infringement of Third Party Rights	  	 	33	  
			
	11.	  	REPRESENTATIONS AND WARRANTIES	  	 	33	  
				
		  	11.1	  	Mutual Representations and Warranties	  	 	33	  
				
		  	11.2	  	Representations and Warranties of Curis; Covenants of Curis	  	 	34	  
				
		  	11.3	  	Disclaimer Concerning Technology	  	 	34	  
			
	12.	  	CONFIDENTIALITY; PUBLICATION	  	 	35	  
				
		  	12.1	  	Confidentiality	  	 	35	  
				
		  	12.2	  	Exceptions	  	 	35	  
				
		  	12.3	  	Terms of Agreement	  	 	35	  
				
		  	12.4	  	Authorized Disclosure	  	 	35	  
				
		  	12.5	  	Publications	  	 	36	  
			
	13.	  	TERM AND TERMINATION	  	 	36	  
				
		  	13.1	  	Term of the Agreement	  	 	36	  

  
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		  	13.2	  	Termination by Genentech	  	 	37	  
				
		  	13.3	  	Termination for Cause	  	 	37	  
				
		  	13.4	  	Effect of Termination or Expiration; Surviving Obligations	  	 	37	  
				
		  	13.5	  	Exercise of Right to Terminate	  	 	38	  
				
		  	13.6	  	Damages; Relief	  	 	38	  
				
		  	13.7	  	Termination of the Harvard Licenses	  	 	38	  
				
		  	13.8	  	Termination of the 1996 Stanford License	  	 	39	  
			
	14.	  	INDEMNITY	  	 	39	  
				
		  	14.1	  	Indemnification	  	 	39	  
				
		  	14.2	  	Indemnification Procedure	  	 	40	  
			
	15.	  	GOVERNING LAW; DISPUTE RESOLUTION	  	 	40	  
				
		  	15.1	  	Governing Law	  	 	40	  
				
		  	15.2	  	Disputes	  	 	40	  
				
		  	15.3	  	Arbitration Procedures	  	 	42	  
			
	16.	  	GENERAL PROVISIONS	  	 	42	  
				
		  	16.1	  	Notices	  	 	43	  
				
		  	16.2	  	Force Majeure	  	 	43	  
				
		  	16.3	  	Entirety of Agreement	  	 	43	  
				
		  	16.4	  	Amendment	  	 	43	  
				
		  	16.5	  	Non-Waiver	  	 	43	  
				
		  	16.6	  	Disclaimer of Agency or Partnership	  	 	43	  
				
		  	16.7	  	Severability	  	 	43	  
				
		  	16.8	  	Assignment; Acquisition	  	 	44	  
				
		  	16.9	  	Headings	  	 	44	  
				
		  	16.10	  	Limitation of Liability	  	 	44	  
				
		  	16.11	  	Compliance with Laws	  	 	44	  
				
		  	16.12	  	Counterparts	  	 	44	  
				
		  	16.13	  	Currency	  	 	44	  
				
		  	16.14	  	Bankruptcy	  	 	44	  
				
		  	16.15	  	Manufacture in United States	  	 	45	  
				
		  	16.16	  	Public Disclosure	  	 	45	  
				
		  	16.17	  	Export	  	 	45	  

  
 iii

 COLLABORATIVE RESEARCH, DEVELOPMENT 

AND LICENSE AGREEMENT 
 THIS COLLABORATIVE RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT (this
“Agreement”), entered into as of June 11, 2003 (the “Effective Date”), by and between CURIS, INC., a Delaware corporation (“Curis”),
with offices at 61 Moulton Street, Cambridge, Massachusetts 02138, on behalf of itself and its Affiliates, and GENENTECH, INC., a Delaware corporation (“Genentech”), with offices at 1 DNA
Way, South San Francisco, California 94080. Curis and Genentech may each be referred to herein individually as a “Party” and collectively as the “Parties.” 

W I T N E S S E T H: 
 WHEREAS, Curis possesses proprietary technologies, including small molecules, antibodies and proteins that may antagonize or inhibit the Hedgehog Pathway (as defined below) for use
in research, discovery and development of pharmaceutical products; 
 WHEREAS, Genentech is engaged in the
research, development, marketing, manufacture and sale of pharmaceutical products; 
 WHEREAS, Genentech
desires to have access to Curis’ Hedgehog Pathway assets, and discovery and development capabilities for purposes of discovering and developing human therapeutic products; and 

WHEREAS, Curis and Genentech desire to enter into a collaborative relationship for research, discovery and
development activities using Curis’ Hedgehog Pathway technologies and for the development and commercialization of human therapeutic products resulting from such activities. 

NOW, THEREFORE, in consideration of the foregoing and the covenants and premises contained in this
Agreement, the Parties agree as follows: 
 1. DEFINITIONS. As used herein, the following terms
shall have the following meanings: 
 1.1 “1996 Stanford License” shall have the meaning set forth in the
definition of Existing License Agreements. 
 1.2 “Active R&D” shall mean, with respect to any indication
in the Limited Field, that Genentech is engaged in active research and development activities with respect to human pharmaceutical products for use in such indication as reasonably demonstrated by Genentech’s contemporaneously-created written
records. 
 1.3 “Affiliate” shall mean any company or entity controlled by, controlling, or under common
control with a Party hereto and shall include any company or entity of which 

 
greater than fifty percent (50%) of the voting stock or participating profit interest of which is owned or controlled, directly or indirectly, by a Party, and any company or entity which
owns or controls, directly or indirectly, greater than fifty percent (50%) of the voting stock of a Party. In the case of Genentech, for purposes of this Agreement, the term “Affiliate” shall [**]. 

1.4 “Antibody Compound” shall have the meaning set forth in the definition of Compound. 

1.5 “BCC” shall mean basal cell carcinoma. 
 1.6 “BCC Cost Sharing Ratio” shall have the meaning set forth in Section 4.2(a). 
 1.7 “BCC Field” shall mean the treatment of BCC with a formulation that is delivered topically or intralesionally and not via Systemic Delivery. 

1.8 “BLA” shall mean a Biologics License Application, filed with the FDA, or the equivalent application or filing in
another country, as applicable. 
 1.9 “Co-Development Budget” shall have the meaning set forth in
Section 4.1. 
 1.10 “Co-Development Plan” shall have the meaning set forth in Section 4.1.

 1.11 “Co-Development Steering Committee” or “CSC” shall have the meaning set forth in
Section 2.3. 
 1.12 “Co-Development Territory” shall mean (a) in the case of a Collaboration Product
designated pursuant to Section 3.2, the United States of America, including its territories and possessions, and (b) in the case of a Collaboration Product designated pursuant to Section 6.1(a), the Territory. 

1.13 “Collaboration” shall mean the programs of collaborative research and development with respect to Compounds under
this Agreement. 
 1.14 “Collaboration Product” shall mean (a) a Lead Product that is designated as a
“Collaboration Product” pursuant to Section 3.2, or (b) a Compound that is designated as a “Collaboration Product” pursuant to Section 6.1(a). 

1.15 “Compound” shall mean [**]. 
 1.16 “Compound Class” shall mean either (a) Small Molecule Compounds or (b) Antibody Compounds 
 1.17 “Confidential Information” shall mean all information disclosed by a Party to the other pursuant to this Agreement, including, without limitation, manufacturing, marketing,
financial, personnel, scientific and other business information and plans, whether in oral, written, graphic or electronic form; provided, however, that such information, if disclosed in tangible form, shall be marked “Confidential”
and, if disclosed orally, shall within thirty (30) days of oral disclosure be summarized in writing, marked “Confidential,” and transmitted to the other Party. 

  
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 1.18 “Control” shall mean possession of the ability to grant a license or
sublicense without violating (a) any law or governmental regulation applicable to such license or sublicense or (b) the terms of any agreement or other arrangement with any Third Party. 

1.19 “Cost Sharing Ratio” shall mean the BCC Cost Sharing Ratio or the Hair Growth Prevention Cost Sharing Ratio, as
applicable. 
 1.20 “Curis Collaboration Patent” shall mean all Joint Patents issued during the Term that
solely claim Curis Inventions. 
 1.21 “Curis Expenses” shall have the meaning provided in
Section 6.1(c)(ii). 
 1.22 “Curis Inventions” shall mean all Inventions having as a named inventor only
employees, agents, sublicensees, Affiliates, subcontractors or other designated Third Parties of Curis. 
 1.23 “Curis
Know-How” shall mean, to the extent useful for the purposes of the Collaboration, all tangible or intangible know-how, trade secrets, inventions, (whether or not patentable), data, preclinical results, physical, chemical or biological
material and other information and data pertaining to Compounds or Products, or otherwise necessary or useful for the practice of the Curis Patents which are not generally publicly known and are Controlled by Curis as of the Effective Date or during
the Term, including any replication or any part of such information or material, but excluding any Curis Patents. 
 1.24
“Curis Patents” shall mean, to the extent useful for the purposes of the Collaboration and Controlled by Curis as of the Effective Date or during the Term, all foreign and domestic: (a) patents existing as of the Effective Date or
issued during the Term; (b) patents issuing from patent applications that are pending as of the Effective Date or during the Term (including provisionals, divisionals, continuations and continuations-in-part of such applications); and
(c) substitutions, extensions, reissues, renewals and inventors certificates relating to the foregoing patents, in each case, which pertain to any of the Compounds or Products. The Curis Patents as of the Effective Date are listed on
Schedule 1.24 hereto. 
 1.25 “Curis Product” shall mean any Product designated as a
“Curis Product” pursuant to Article 6. 
 1.26 “Curis Plan” shall have the meaning set forth in
Section 6.1(a). 
 1.27 “Curis Technology” shall mean the Curis Patents and the Curis Know-How.

 1.28 “Development Costs” shall have the meaning set forth in Schedule 4.2. 

  
 3 

 1.29 “Evotec Agreement” shall mean that certain Service and Secrecy
Agreement dated May 1, 2001 between Curis and Evotec OAI, as may be amended from time to time. 
 1.30 “Evotec
Payments” shall have the meaning set forth in Section 8.7. 
 1.31 “Existing Genentech Patents”
shall mean those U.S. Patents set forth on Schedule 1.31 hereto, all foreign counterparts thereof, patents issuing from any of the foregoing (including provisionals, divisionals, continuations and continuations-in-part of such
applications); and substitutions, extensions, reissues, renewals and inventors certificates relating to any of the foregoing patents. 
 1.32 “Existing License Agreements” shall mean (a) the Agreement dated September 26, 1996 among Curis, The Johns Hopkins University and the University of Washington (the
“JHU License”), (b) the Exclusive License Agreement dated May 3, 2000 between Curis and The Johns Hopkins University, (c) the License Agreement dated February 9, 1995 between Curis and Harvard,
(d) the License Agreement dated February 1, 1997 between Curis and Harvard (together (c) and (d) are referred to herein as the “Harvard Licenses”), (e) the License Agreement dated January 1, 1995
between Curis and the Trustees of Columbia University, (f) the Agreement dated February 12, 1996 between Curis and The Board of Trustees of the Leland Stanford Junior University (the “1996 Stanford License”), and
(g) The License Agreement dated November 20, 1997 between Curis and the Board of Trustees of the Leland Stanford Junior University, in each case as may be amended from time to time as permitted by this Agreement. 

1.33 “Existing Licensors” shall mean the parties to the Existing License Agreements other than Curis. 

1.34 “FDA” shall mean the United States Food and Drug Administration or any successor agency thereto having the
administrative authority to regulate the marketing of human pharmaceutical products or biological therapeutic products, delivery systems and devices in the United States of America. 

1.35 “FTE” shall mean the equivalent of a full-time scientist’s work time over a twelve (12) month period
(including normal vacations, sick days and holidays). The portion of an FTE year devoted by a scientist to a particular activity or program shall be determined by dividing the number of full working days during any twelve (12) month period
devoted by such scientist to such activity or program by the total number of working days during such twelve (12) month period. 
 1.36 “Genentech Inventions” shall mean all Inventions having as a named inventor only employees, agents, sublicensees, Affiliates, subcontractors or other designated Third Parties of
Genentech. 
 1.37 “Genentech Know-How” shall mean, to the extent useful for the purposes of the Collaboration,
all tangible or intangible know-how, trade secrets, inventions (whether or not patentable), data, preclinical results, physical, chemical or biological material and other information and data pertaining to Compounds or Products or otherwise
necessary or 

  
 4 

 
useful for the practice of the Genentech Patents, which are not generally publicly known and are Controlled by Genentech during the Term, including any replication or any part of such information
or material, but excluding any Genentech Patents. 
 1.38 “Genentech Patents” shall mean, to the extent
Controlled by Genentech as of the Effective Date or during the Term: (a) the Existing Genentech Patents; and (b) all foreign and domestic: (i) Joint Patents issued during the Term that solely claim Genentech Inventions;
(ii) Joint Patents issuing from patent applications that are pending during the Term that solely claim Genentech Inventions (including provisionals, divisionals, continuations and continuations-in-part of such applications); and
(iii) substitutions, extensions, reissues, renewals and inventors certificates relating to the foregoing patents, in each case, which are necessary to make, have made, use, sell, have sold, offer for sale or import any of the Compounds or
Products. 
 1.39 “Genentech Technology” shall mean the Genentech Patents and Genentech Know-How. 

1.40 “Good Laboratory Practices” or “GLP” shall mean current good laboratory practices under FDA rules
and regulations. 
 1.41 “Good Manufacturing Practices” or “GMP” shall mean current good
manufacturing practices under FDA rules and regulations. 
 1.42 “Hair Growth Prevention Cost Sharing Ratio”
shall have the meaning set forth in Section 4.2(b). 
 1.43 “Hair Growth Prevention Field” shall mean any
human therapeutic use for the regulation of hair growth. 
 1.44 “Harvard” shall mean the President and Fellows
of Harvard College. 
 1.45 “Harvard Licenses” shall have the meaning set forth in the definition of Existing
License Agreements. 
 1.46 “Hedgehog Pathway” shall mean either or both (as the case may be) (a) the
Hedgehog protein family or (b) the signaling pathway activated by an extracellular ligand of the Hedgehog protein family. 

1.47 “IND” shall mean an Investigational New Drug Application filed with the FDA, or the equivalent application or
filing necessary to commence human clinical trials in another country, as applicable. 
 1.48 “Inventions”
shall have the meaning set forth in Section 10.1. 
 1.49 “JHU License” shall have the meaning set forth
in the definition of Existing License Agreements. 

  
 5 

 1.50 “Joint Invention” shall mean any Invention made jointly by employees
or agents of both Curis and Genentech. 
 1.51 “Joint Patents” shall have the meaning set forth in
Section 10.1. 
 1.52 “Joint Steering Committee” or “JSC” shall mean the committee formed
pursuant to Section 2.2. 
 1.53 “Know-How Product” shall mean any formulation of a Compound, which
formulation is not a Valid Claim Product. 
 1.54 “Lead Product” shall mean any Product that, after reasonable
evaluation by the JSC pursuant to Section 3.2 using mutually agreed upon criteria, has been selected by the JSC for clinical development. 
 1.55 “License Fee” shall have the meaning set forth in Section 8.2. 
 1.56 “License Field” shall mean [**]. 
 1.57 “Limited
Field” shall mean [**].  
 1.58 “Major Market” shall mean (a) with respect to the License
Field, the United States of America, the United Kingdom, Germany, France, Spain, Italy and Japan and (b) with respect to the BCC Field, the United States of America, the United Kingdom, Germany, France, Spain, Italy and Australia. 

1.59 “Materials” shall have the meaning set forth in Section 3.1. 

1.60 “Milestone Payments” shall have the meaning set forth in Section 8.4. 

1.61 “Modified Product” shall mean any Product that either: 

(a) does not contain any Compound that was created, developed or in-licensed by Curis, but contains one or more Compounds
created, developed or in-licensed (other than from Curis) by Genentech; or 
 (b) contains a Compound that is [**] a
Compound [**] under U.S. patent law, [**]. 
 1.62 “NDA” shall mean a New Drug Application or BLA, as
applicable, or an equivalent application filed with the FDA, or the equivalent community application filed in the European Union, or the equivalent application filed as a national application in any other country or regulatory jurisdiction.

 1.63 “Net Sales” shall mean, with respect to a given period of time, the gross amount invoiced by a Party
and its Affiliates and sublicensees for sales of Lead Products, Collaboration Products or Curis Products, as applicable, during such period, less the following 

  
 6 

 
deductions from such gross amounts as allocable to such Lead Products, Collaboration Products or Curis Products (if not previously deducted from the amount invoiced) to the extent actually
incurred, allowed or taken: 
 (a) credits or allowances granted for damaged Lead Products, Collaboration Products or
Curis Products, as applicable, returns or rejections of Lead Products, Collaboration Products or Curis Products, as applicable, price adjustments and billing errors; 
 (b) governmental and other rebates (or equivalents thereof) granted to managed health care organizations, pharmacy benefit managers (or equivalents thereof), federal, state/provincial, local and
other governments, their agencies and purchasers and reimbursers or to trade customers; 
 (c) normal and customary
trade, and quantity discounts, allowances and credits allowed or paid; 
 (d) commissions paid to Third Party
distributors, brokers or agents (excluding sales personnel, sales representatives and sales agents that are employees or consultants of a Party or its Affiliates or sublicensees) in countries outside the United States in which such commissions are
paid by deducting such commissions from the gross sales invoiced for sales to such Third Parties; 
 (e) transportation
costs, including insurance, for outbound freight related to delivery of the product; and 
 (f) sales taxes, VAT taxes
and other taxes directly linked to the sales of the product. 
 Sales between or among a Party and its Affiliates and sublicensees shall be
excluded from the computation of Net Sales, but the subsequent final sales to Third Parties by such Affiliates or sublicensees shall be included with Net Sales; provided however, that if such Affiliates or sublicensees are the end users of
such Product, the amount billed therefore shall be deemed to be the amount that would be invoiced to a Third Party in an arm’s-length transaction for the sale of such products. 

In the event a Lead Product, Collaboration Product or Curis Product is sold in combination with one or more other active pharmaceutical
ingredients (a “Combination”), then Net Sales shall be calculated by multiplying the Net Sales of that Combination by the fraction A/B, where A is the gross selling price of the Product sold separately and B is the gross
selling price of the Combination. In the event that no such separate sales are made, Net Sales for royalty determination shall be calculated by multiplying Net Sales of the Combination by the fraction C/(C+D), where C is the fully allocated cost of
the Lead Product, Collaboration Product or Curis Product and D is the fully allocated cost of the other active pharmaceutical ingredient(s) in the Combination. 
 1.64 “Operating Profits (Losses)” shall have the meaning set forth in Schedule 4.2. 

  
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 1.65 “Phase I Clinical Trials” shall mean the initial trials in the
Territory on a limited number of normal volunteers or patients that are designed to establish that a drug is safe for its intended use and to support its continued testing in Phase II Clinical Trials. 

1.66 “Phase II Clinical Trials” shall mean those trials in the Territory on a limited number of patients that are
designed to establish the safety and biological activity of a drug for its intended use and to define warnings, precautions and adverse reactions that are associated with the drug in the dosage range to be prescribed. 

1.67 “Phase II/III Clinical Trials” shall mean those trials in the Territory designed to address the same matters
addressed by a Phase II Clinical Trials as well as to generate additional data related to dosing and the effect of the relevant therapy on a limited number of patients. 
 1.68 “Phase III Clinical Trials” shall mean those pivotal trials in the Territory of a drug on sufficient numbers of patients to establish the safety and efficacy of such drug for
the desired claims and indications. 
 1.69 “Product” shall mean any Know-How Product or Valid Claim Product.

 1.70 “Regulatory Approval” shall mean any and all approvals (including price and reimbursement approvals),
licenses, registrations, or authorizations of the United States or European Union or any country, federal, state or local regulatory agency, department, bureau or other government entity that are necessary for the manufacture, use, storage, import,
transport and/or sale of a Product in such jurisdiction. 
 1.71 “Research Plan” shall have the meaning set
forth in Section 3.1. 
 1.72 “Royalty Term” shall mean: 

(a) in the case of a Lead Product, the period beginning on the first commercial sale of such Lead Product and ending, on a
Compound-by-Compound and country-by-country basis, upon (a) in the case of a Valid Claim Product, the expiration of the last to expire patent containing a Valid Claim in the Curis Patents or Joint Patents (excluding the Genentech Patents) in
such country or (b) in the case of a Know-How Product, [**] years from the date of first sale; and 
 (b) in the
case of a Curis Product, the period beginning on the first commercial sale of such Curis Product and ending, on a Compound-by-Compound and country-by-country basis, upon (a) in the case of a Valid Claim Product, the expiration of the last to
expire patent containing a Valid Claim in the Genentech Patents or Joint Patents (excluding the Curis Collaboration Patents) in such country or (b) in the case of a Know-How Product, [**] years from the date of first sale. 

1.73 “Small Molecule Compound” shall have the meaning set forth in the definition of Compound. 

  
 8 

 1.74 “Stock Purchase Agreement” shall mean that certain stock purchase
agreement between the Parties to be entered into concurrently herewith, in substantially the form attached hereto as Exhibit A. 
 1.75 “Systemic Delivery” shall include, but not be limited to, [**] delivery. 
 1.76 “Term” shall have the meaning set forth in Section 13.1. 
 1.77 “Territory” shall mean the entire world. 
 1.78
“Third Party” shall mean any entity other than Curis or Genentech or an Affiliate of Curis or Genentech. 

1.79 “Upfront Fee” shall have the meaning set forth in Section 8.1. 

1.80 “Valid Claim” shall mean a claim of an unexpired issued patent, which has not been held unenforceable, unpatentable
or invalid by a decision of a court or other governmental agency of competent jurisdiction unappealable or unappealed within the time allowed for appeal or which has not been admitted to be invalid or unenforceable through reexamination, reissue,
disclaimer, or otherwise. 
 1.81 “Valid Claim Product” shall mean any formulation of a Compound for which
(i) the manufacture, use or sale, but for the licenses granted to Genentech hereunder, would infringe a Valid Claim of the Curis Patents, Genentech Patents (other than Existing Genentech Patent Rights) or Joint Patents or (ii) the method
of identification of which or the method of identification of the utility of which is covered by a Valid Claim of the Curis Patents, Genentech Patents (other than Existing Genentech Patent Rights) or Joint Patents. 

2. CONDUCT OF COLLABORATION; GOVERNANCE 

2.1 Objective. Subject to the terms and conditions of this Agreement, Curis and Genentech shall use commercially reasonable
efforts, in accordance with standard industry practice, to conduct collaborative research activities with the goal of developing and commercializing one or more Compounds in the License Field as quickly as reasonably possible. 

2.2 Joint Steering Committee. Promptly after the Effective Date, the Parties will form a Joint Steering Committee (the
“JSC”) composed of an equal number of employees of each of Curis and Genentech, but in no event to exceed four (4) members from each Party. The JSC shall determine the specific goals for the Collaboration, shall manage
the ongoing research conducted under the Collaboration in accordance with the Research Plan, shall monitor the progress and results of such work, and shall oversee and coordinate the development and commercialization of Compounds (other than
Collaboration Products); provided, however, that the JSC shall not have decision-making authority with respect to the development and commercialization of Collaboration Products, which shall be governed by the CSC. The presence of at least
one (1) representative of each Party shall constitute a quorum for the conduct of any JSC meeting. All decisions of the JSC shall require unanimous approval, with the representatives of each Party collectively having one (1) vote, provided
in the event of a deadlock, the issue shall be referred to the Chief Executive Officer of Curis and the Senior Vice 

  
 9 

 
President of Research of Genentech, or their respective designees, who shall promptly meet and attempt in good faith to resolve such issue within thirty (30) days. If such executives cannot
resolve such matter, then Genentech shall have final decision-making authority with regard to decisions regarding the Collaboration (including, without limitation, the JSC’s designation of a Compound as either a Lead Product or Excluded
Product); provided, however, that in no event shall Genentech have the right or power to take any of the following actions without the approval of Curis’ representatives on the JSC: 

(a) approve the initial Research Plan (an outline of which has been agreed upon by the Parties as of the Effective Date);

 (b) amend or modify this Agreement or the Research Plan; 

(c) resolve any such matter in a manner that conflicts with the provisions of this Agreement (including, without limitation, the
Research Plan); 
 (d) make any decision with respect to the development or commercialization of Curis Products; or

 (e) make any decision with respect to the prosecution, maintenance, defense or enforcement of any Curis Patents.

 The JSC shall meet at such frequency as the JSC agrees, except that, until the filing of the first IND for a Lead Product utilizing Systemic
Delivery in a Major Market, the JSC shall meet on at least a quarterly basis. Meetings of the JSC, and JSC dispute resolution meetings between Curis’ Chief Executive Officer and Genentech’s Senior Vice President of Research (or their
designees), may be conducted by videoconference, teleconference or in person, as agreed by the Parties, and the Parties shall agree upon the time and place of meetings. A reasonable number of additional representatives of a Party may attend meetings
of the JSC in a non-voting capacity. The JSC shall exist for so long as either any work is being conducted under the Research Plan or any Compound is being developed or commercialized by Genentech, Curis, or any of their respective Affiliate(s) or
sublicensee(s) in any Major Market. 
 The JSC shall also be responsible for designating one or more representatives of each Party with
expertise in patent law (which individuals need not be members of the JSC) to oversee intellectual property matters relating to the Collaboration, subject to the provisions of Article 10, and such patent committee shall coordinate with and
report to the JSC. 
 2.3 Co-Development Steering Committee. Promptly following the JSC’s designation pursuant to
Section 3.2 of the first Collaboration Product, the Parties will form a Co-Development Steering Committee (the “CSC”) for such Collaboration Product and any subsequent Collaboration Product(s). The CSC will be composed
of an equal number of representatives from both Curis and Genentech. The CSC shall meet within thirty (30) days of such designation of the first Collaboration Product and shall be responsible for managing research and development activities
conducted in furtherance of the Co-Development Plan and monitoring the progress and results of such work. The CSC shall also be responsible for creating a finance subcommittee with individuals with expertise in the areas of accounting, financial
planning, financing reporting, cost allocations and financial audits (which individuals need not 

  
 10 

 
be members of the CSC), and such finance committee shall coordinate with and report to the CSC. The presence of at least one (1) representative of each Party shall constitute a quorum for
the conduct of any CSC meeting. All decisions of the CSC shall require unanimous approval, with the representatives of each Party collectively having one (1) vote, provided in the event of a deadlock, the issue shall be referred to the Chief
Executive Officer of Curis and the Chief Medical Officer of Genentech, or their respective designees, who shall promptly meet and attempt in good faith to resolve such issue within thirty (30) days. If such executives cannot resolve such
matter, then Genentech shall have final decision-making authority with regard to decisions regarding the development and the commercialization of Collaboration Products; provided, however, that in no event shall Genentech have the right or
power, without the approval of Curis’ representatives on the CSC, to approve any modification, or series of modifications, to any Co-Development Plan or Co-Development Budget, which modification(s) would increase the expenses to be borne by
Curis by more than [**] percent ([**]%) of the expenses Curis was obligated to bear in connection with the unmodified Co-Development Plan or Co-Development Budget, as applicable. The CSC shall meet on a quarterly basis or at such other frequency as
the CSC agrees. Meetings of the CSC, and CSC dispute resolution meetings between Curis’ Chief Executive Officer and Genentech’s Chief Medical Officer (or their designees), may be conducted by videoconference, teleconference or in person,
as agreed by the Parties, and the Parties shall agree upon the time and place of meetings. A reasonable number of additional representatives of a Party may attend meetings of the CSC in a non-voting capacity. 

2.4 Product Prioritization. The Parties acknowledge and agree that Genentech (or the JSC as a whole) may, in good faith,
prioritize the development of certain Compounds over the development of other Compounds as a result of such factors as product performance, safety and tolerability, dosing convenience, route of administration, ease and expense of manufacturing,
regulatory approval prospects, the competitive landscape, economic factors and potential channel conflicts with other Compounds or products. The Parties further acknowledge and agree that (i) for some indications, one Compound Class may have
greater utility than the other Compound Class, and (ii) for some indications, the greatest utility may be maintained through the use of Compounds from both Compound Classes. Notwithstanding the foregoing, the Parties will use commercially
reasonable efforts to explore the utility and market potential of Compounds from both Compound Classes for indications in the License Field. 
 3. RESEARCH PROGRAM; DESIGNATION AND DEVELOPMENT OF LEAD
PRODUCTS 
 3.1 Research Plan. Within sixty (60) days following its formation, the
JSC will develop and approve a written research plan setting forth the research obligations of each of the Parties under the Collaboration until the filing of the first IND for a Lead Product utilizing Systemic Delivery in a Major Market or the
earlier termination of this Agreement in accordance with Article 13 hereof (the “Research Plan”), which will be deemed a part of, and is hereby incorporated by reference in, this Agreement. The Parties anticipate that
the Research Plan will include the research responsibilities of Curis set forth in the research program outline agreed upon by the Parties as of the Effective Date. The Research Plan will also include a detailed list of the materials to be provided
by Curis to Genentech (the “Materials”), which may include, without limitation, Compound samples, assays, reagents, cell lines and relevant animal models. Curis and Genentech will each conduct research in accordance with the
Research Plan, as it may be amended from time to time upon unanimous approval of the JSC, or as reasonably directed by 

  
 11 

 
the JSC, subject to the provisions of Section 2.2. Curis shall use commercially reasonable and diligent efforts to advance and complete the foregoing research in a timely manner. In
furtherance of that obligation, Curis will assign no fewer than 8 FTE’s approved by the JSC (such approval not to be unreasonably withheld or delayed) for a period of no less than 2 years following the Effective Date (unless this Agreement is
earlier terminated) to complete the tasks described above. The Parties agree that up to 4 of such FTE’s assigned to the research may be Evotec OAI employees. If and to the extent that Genentech wishes to have more than 4 of such FTE’s be
Evotec OAI employees, Genentech shall be responsible for the FTE costs charged by Evotec OAI with respect to the number of Evotec OAI FTE’s that is in excess of 4. Curis shall cause the Evotec Agreement to be renewed until at least
April 30, 2005 and during such time shall not, without the prior written consent of Genentech, amend the Evotec Agreement in a manner that would diminish the rights granted to Genentech hereunder or otherwise be detrimental to Genentech.

 3.2 Designation of Lead Products. The JSC will assess each Compound and designate, in writing, which will be
designated as Lead Products. Any designation of a Lead Product will also specify the indications for which the Parties intend to develop such Lead Product. If the JSC designates any such Lead Product for development in the BCC Field or the Hair
Growth Prevention Field, such Lead Product shall be deemed a “Collaboration Product” for purposes of this Agreement. The Parties agree that the JSC shall make Lead Product determinations in a reasonable period of time
following presentation to the JSC of data concerning each such Product sufficient to support making such determination. The Parties anticipate that Lead Products will meet, without limitation, the criteria set forth in
Schedule 3.2. 
 3.3 Genentech Development and Commercialization Responsibilities. The following
provisions shall apply to the development and commercialization of Lead Products other than Collaboration Products: 
 (a)
Clinical Development Responsibilities. Genentech or its sublicensees will be responsible for the clinical development of such Lead Products and will bear all associated costs. In addition, if required for IND filing, Genentech and/or its
sublicensees will be responsible for conducting pharmacokinetics, toxicology or other IND-enabling studies with respect to such Lead Products. Genentech will use commercially reasonable efforts to develop and to obtain Regulatory Approval of such
Lead Products in the Major Markets and such other markets as Genentech deems advisable in accordance with generally accepted practices in the pharmaceutical industry. 
 (b) Regulatory Affairs. Genentech and/or its sublicensee(s) shall be responsible for all interactions with regulatory authorities in the Territory with respect to such Lead Products and will bear
the associated costs, and, subject to Genentech’s payment obligations herein, shall own any IND and NDA filings made with respect to such Lead Products. Genentech shall regularly (and on at least a semi-annual basis) provide Curis, via the JSC
or CSC, as applicable, with an update describing the progress made to date towards obtaining Regulatory Approval of any such Lead Product(s) and the plans for achieving such Regulatory Approval(s) in the future. 

  
 12 

 (c) Manufacturing and Supply. Genentech and/or its sublicensee(s) shall be
responsible for, and shall bear all associated costs of, manufacturing all preclinical, clinical and commercial forms of such Lead Products, including the bulk drug substance and finished drug product forms thereof. Genentech shall keep Curis
reasonably informed of manufacturing and supply related activity. 
 (d) Formulation. Genentech and/or its
sublicensee(s) shall be responsible for formulating such Lead Products and shall bear all associated costs. 
 (e) Sales and
Marketing. Genentech and/or its sublicensee(s) shall be responsible for all sales and marketing activities, and all other commercialization requirements, related to such Lead Products and shall bear all associated costs. Genentech and/or its
sublicensee(s) shall keep Curis reasonably informed of sales and marketing related activity. Genentech and/or its sublicensee(s) shall use commercially reasonable efforts, in accordance with generally accepted practices in the pharmaceutical
industry, to maximize Net Sales of Lead Products in each country where such Lead Products have obtained Regulatory Approval for the sale of such Lead Products. 
 4. CO-DEVELOPMENT OF COLLABORATION PRODUCTS 

4.1 Co-Development Plan and Budget. Promptly following the designation of any Collaboration Product, Genentech (in the case of a
Collaboration Product to be developed in the BCC Field (a “BCC Product”)) or Curis (in the case of a Collaboration Product to be developed in the Hair Growth Prevention Field (a “Hair Growth Prevention
Product”)) shall, with input from the other Party, prepare a comprehensive development plan for such Collaboration Product (a “Co-Development Plan”) designed to generate the preclinical, clinical and regulatory
information required for filing a U.S. IND application and a U.S. NDA. The Party that is primarily responsible for preparing a particular Co-Development Plan under the preceding sentence shall be considered the “Proposing
Party” for purposes of this Article 4. The Co-Development Plan shall describe in detail the development activities to be performed by each Party with respect to such Collaboration Product, as well as criteria that must be met by
the Collaboration Product at each stage of development. For purposes of clarification, upon CSC approval, the Co-Development Plan may include development activities with respect to indications in the License Field that are in addition to the BCC
Field or the Hair Growth Prevention Field, as applicable. Each Co-Development Plan shall also include a budget of projected Development Costs for each calendar year with respect to the applicable Collaboration Product (a “Co-Development
Budget”). The Co-Development Plan and Co-Development Budget shall be prepared within ninety (90) days of the initial meeting of the CSC with respect to the applicable Collaboration Product (or as otherwise mutually agreed by the
Parties). The Co-Development Budget for a Collaboration Product for a given calendar year shall constitute the maximum Development Costs to be incurred by either Party under the Co-Development Plan in such calendar year, unless a modification to
such budget is approved by the CSC. 
 4.2 Collaboration Products. 

(a) BCC Products. The Parties agree that BCC Products may be developed in one of two ways pursuant to this Agreement. In
Curis’ sole discretion, each BCC 

  
 13 

 
Product may be (i) re-designated as Lead Product, whereupon it will cease to be a Collaboration Product for purposes of this Agreement and will instead be developed by Genentech in
accordance with Article 3 of this Agreement, or (ii) co-developed by the Parties as a Collaboration Product in accordance with this Article 4. Within thirty (30) days of finalization of the applicable Co-Development Plan and
Co-Development Budget, Curis will notify Genentech in writing as to which of the preceding development methods Curis has chosen, and if Curis elects to co-develop a BCC Product as described in the preceding clause (ii), such notice shall also
specify the percentage (not to exceed fifty percent (50%)) of Development Costs for BCC and any subsequent indications approved by the CSC for such Collaboration Product that Curis will bear (the “BCC Cost Sharing
Ratio”). In the event Curis notifies Genentech that a Collaboration Product will be re-designated as a Lead Product, the CSC formed in connection with such Collaboration Product shall be dissolved, unless, and until such time as,
another Collaboration Product has been designated. In the event Curis notifies Genentech that a Collaboration Product will be co-developed by the Parties under this Article 4, the CSC shall in good faith further elaborate and refine the
Co-Development Plan (as necessary) to describe in detail the manner in which Operating Profits (Losses) (including, without limitation, Development Costs) with respect to such Collaboration Product in the Co-Development Territory will be reported,
calculated and shared by the Parties, which description shall include and be consistent with the principles set forth in Schedule 4.2 hereto and shall be completed within sixty (60) days following Curis’ notice of its
desire to co-develop such Collaboration Product. Each such further elaborated and refined Co-Development Plan shall be deemed a part of, and is hereby incorporated by reference in, this Agreement. 

(b) Hair Growth Prevention Products. The Parties agree that Hair Growth Prevention Products may be developed in one of two ways
pursuant to this Agreement. In Genentech’s sole discretion, each Hair Growth Prevention Product may be (i) designated as a Curis Product, whereupon it will cease to be a Collaboration Product for purposes of this Agreement and will instead
be developed by Curis in accordance with Article 6 of this Agreement, or (ii) co-developed by the Parties as a Collaboration Product in accordance with this Article 4. Within thirty (30) days of finalization of the applicable
Co-Development Plan and Co-Development Budget, Genentech will notify Curis in writing as to which of the preceding development methods Genentech has chosen, and if Genentech elects to co-develop the Hair Growth Prevention Product as described in the
preceding clause (ii), such notice shall also specify the percentage (not to exceed [**] percent ([**]%), unless otherwise agreed by Curis) of Development Costs for Hair Growth Prevention and any subsequent indications approved by the CSC for
such Collaboration Product that Genentech will bear (the “Hair Growth Prevention Cost Sharing Ratio”). In the event Genentech notifies Curis that a Hair Growth Prevention Product will be designated as a Curis Product, the CSC
formed in connection with such Collaboration Product shall be dissolved, unless, and until such time as, another Collaboration Product has been designated. In the event Genentech notifies Curis that a Collaboration Product will be co-developed by
the Parties under this Article 4, the CSC shall in good faith further elaborate and refine the Co-Development Plan (as necessary) to describe in detail the manner in which Operating Profits (Losses) (including, without limitation, Development
Costs) with respect to such Collaboration Product in the Co-Development Territory (unless otherwise agreed by the Parties) will be reported, calculated and shared by the Parties, which description shall include and be consistent with the principles
set forth in Schedule 4.2 hereto and shall be completed within sixty (60) days following Genentech’s notice of its desire to co-develop such Collaboration Product. Each such further elaborated and refined Co-Development
Plan shall be deemed a part of, and is hereby incorporated by reference in, this Agreement. 

  
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 4.3 Sharing of Operating Profits (Losses).  

(a) Except as set forth in Section 4.3(b) below, all Operating Profits (Losses) from each Collaboration Product developed
pursuant to this Article 4 will be shared by the Parties in accordance with the applicable Cost Sharing Ratio for such Collaboration Product (e.g., if Curis bears 35% of Development Costs for such Collaboration Product, then Operating
Profits (Losses) for such Collaboration Product will be allocated 35% to Curis and 65% to Genentech). The Parties agree to maintain records in sufficient detail to calculate and confirm all elements of Operating Profits (Losses). Except as otherwise
provided in Section 4.3(b), the Parties’ obligation to share Operating Profits (Losses) with respect to each Collaboration Product shall continue for so long as the Parties are selling such Collaboration Product in the Co-Development
Territory. 
 (b) On a Collaboration Product-by-Collaboration Product basis, Curis (in the case of a BCC Product) or
Genentech (in the case of a Hair Growth Prevention Product) shall have the right to terminate its obligation to fund the percentage of Development Costs determined by the applicable Cost Sharing Ratio for a Collaboration Product at any time,
including, but not limited to, in the event such Party is unable to meet its obligation to fund such costs. A Party’s decision to terminate co-development of a Collaboration Product will have no effect on that Party’s right to co-develop
(or continue to co-develop) any other Collaboration Product. Effective upon the other Party’s receipt of written notice from the terminating Party that the terminating Party has elected to terminate co-development with respect to a
Collaboration Product, such Collaboration Product will be deemed re-designated as a Lead Product (if Curis is the terminating Party) or a Curis Product (if Genentech is the terminating Party) for purposes of this Agreement, including, without
limitation, for the purposes of Article 8, and the obligation of the Parties to share Operating Profits (Losses) with respect thereto shall cease; provided, however, that no retroactive milestone payments shall be due to Curis with
respect to such former Collaboration Product for any milestones that occurred prior to or within three (3) months following the date that Curis elected to elected to terminate co-development of such Collaboration Product. From and after
re-designation of a Collaboration Product as a Lead Product or Curis Product pursuant to this Section 4.3(b), such Lead Product or Curis Product shall no longer be eligible for designation as a Collaboration Product hereunder. 

4.4 Co-Development Responsibilities. To the extent that a Collaboration Product will be co-developed by the Parties under this
Article 4, the Parties will undertake the applicable Co-Development Plan. The Parties anticipate that each Party will take the lead in the areas of its expertise as directed by the CSC. All activities in connection with the development of such
Collaboration Product will be performed in accordance with the Co-Development Plan and Co-Development Budget or as otherwise directed by the CSC. Except as otherwise expressly set forth herein, Genentech shall have the sole and final decision-making
authority with respect to development and commercialization of, and the nature and timing of all regulatory filings for, each Collaboration Product. 

  
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 5. TECHNOLOGY TRANSFER; THIRD
PARTY LICENSORS 
 5.1 Transfer of Materials. As soon as reasonably
practicable following the Effective Date, Curis will provide the Materials to Genentech, at no cost to Genentech. Genentech will use the Materials solely for the Collaboration. Genentech shall not sell, transfer, disclose or otherwise provide access
to the Materials, any proprietary Curis method or process embodied therein, or any material that could not have been made but for the foregoing, to any person or entity without the prior written consent of Curis, except that Genentech may allow
access to the Materials to its employees, agents, sublicensees, Affiliates or subcontractors for purposes consistent with this Agreement. Genentech will take reasonable steps to ensure that such employees, agents and permitted subcontractors will
use the Materials in a manner that is consistent with the terms of this Agreement. Genentech understands that the Materials may have unpredictable and unknown biological and/or chemical properties, and that they are to be used with caution.
Genentech will use the Materials in compliance with all applicable laws and regulations. For purposes of clarification, Genentech acknowledges and agrees that Curis shall have the right to retain stocks of the Materials (a) for its own use
outside the scope of this Agreement and/or (b) for its internal use in connection with research within the scope of this Agreement. 
 5.2 IND Transfer. As of the Effective Date, Curis hereby transfers and assigns to Genentech all Curis’ right, title and interest in and to United States IND application entitled
“CUR-61414 for the Treatment of Basal Cell Carcinoma.” Within a reasonable period of time following the Effective Date, Curis shall take such actions and execute such documents as may be reasonably required to effectuate such transfer and
assignment, at Genentech’s expense. Curis will provide to Genentech copies of all regulatory correspondence related thereto. 
 5.3 Transfer of Data. As soon as reasonably practicable following the Effective Date, Curis will disclose to Genentech for use in connection with the Collaboration all chemical structures,
pre-clinical data and reports (e.g., PK, ADME, toxicology, etc.) on the Compounds, to the extent in the possession and Control of Curis. 
 5.4 Existing License Agreements. Genentech agrees to use reasonable efforts to assist Curis in complying with Curis’ obligations under the Existing License Agreements, including but not
limited to record keeping with respect to Lead Products and Collaboration Products sold, provisions for patent infringement by Third Parties and patent marking requirements. Curis shall be responsible for required communications with the Existing
Licensors with respect to diligence obligations under the Existing License Agreements. Curis shall not, without the prior written consent of Genentech, amend any Existing License Agreement in a manner that would diminish the rights granted to
Genentech hereunder or otherwise be detrimental to Genentech. Genentech agrees that, to the extent Genentech is a sublicensee of Curis’ rights under the 1996 Stanford License, Genentech shall be subject to the provisions set forth in Articles
8, 9 and 10 of the 1996 Stanford License that apply to Curis, and that to the extent Genentech is a sublicensee of Curis’ rights under the JHU License, Genentech shall be subject to the provisions set forth in Articles 8, 9, 10 and 12 of
the JHU License for the benefit of The Johns Hopkins University, the Howard Hughes Medical Institute and the University of Washington. 

  
 16 

 5.5 Research Materials. Genentech acknowledges and agrees that the Existing Licensors
retain certain rights under the Existing License Agreements. To the extent an Existing Licensor requests, for research purposes, samples of Materials licensed to Curis pursuant to an Existing License Agreement, Genentech agrees to provide such
Materials on Curis’ behalf to the Existing Licensor or its designee to the extent that Genentech has sufficient quantities of such Materials and Curis does not. Genentech’s obligation pursuant to this Section 5.5 shall be limited to
the provision of reasonable quantities of Materials. Curis agrees to reimburse Genentech for the direct cost of such Materials within ninety (90) days of receipt of written invoice for Materials Genentech has provided pursuant to this Section.

 6. CURIS DEVELOPMENT RIGHTS 

6.1 Development of Compounds Other Than Lead Products. 
 (a) In the event that Curis wishes to pursue pre-clinical and clinical development of any Compound other than a Lead Product in one or more indications in the Limited Field, then, provided that
human pharmaceutical products for use in such indication(s) are not then the subject of Active R&D by Genentech, Curis, working together with Genentech, may develop and propose to the JSC a development plan (each, a “Curis
Plan”) for such Compound for such indication(s). Within [**] days of delivery of such Curis Plan to Genentech in accordance with Section 16.1, Genentech shall notify Curis in writing as to whether Genentech will pursue the
development of such Compound as a Lead Product. If Genentech timely provides Curis with written notice of its election to undertake the development of such Compound, such Compound will be designated as a Lead Product and be developed in accordance
with the development plan approved by the JSC and this Agreement. Alternatively, if a Curis Plan provides for development of a Compound in the Hair Growth Prevention Field, such Compound may, at Genentech’s option, be developed as a
“Collaboration Product” (instead of a Lead Product) for purposes of this Agreement in accordance with the provisions of Article 4. 
 (b) If Genentech decides not to pursue development of a Compound proposed for development pursuant to Section 6.1(a) as a Lead Product, or fails to respond in writing within such [**] day
period, Curis may pursue development of such Compound for the indication(s) set forth in the Curis Plan on its own, whereupon any formulation of such Compound will be deemed a “Curis Product” for purposes of this Agreement.
Thereafter, Curis may independently conduct preclinical and clinical development of such Curis Product, or Curis may license a Third Party sublicensee reasonably acceptable to Genentech (such acceptance not to be unreasonably withheld or delayed) to
conduct such development according to a development plan and other terms and conditions (including appropriate compensation to Genentech) as are mutually agreed by the Parties, in each case subject to the provisions of this Section 6.1.

 (c) With respect to each Curis Product that is designated pursuant to Section 6.1(b) and with respect to which
Curis will independently conduct development, the following conditions will apply: 
 (i) Curis and Genentech will
mutually agree on the design of any preclinical studies, Phase I Clinical Trials and Phase II Clinical Trials, and will also agree upon the endpoints for such Phase I Clinical Trials and Phase II Clinical Trials; 

  
 17 

 (ii) Subject to Section 6.1(c)(iv) below, Curis shall be responsible for
conducting all such preclinical studies, Phase I Clinical Trials and Phase II Clinical Trials and shall bear [**]% of the costs thereof. Curis shall keep complete and accurate written records of the direct historical costs of such
preclinical studies, Phase I Clinical Trials and Phase II Clinical Trials (including, but not limited to, cost of drug substance and drug product) actually incurred by Curis with respect to such Curis Product (the “Curis
Expenses”); 
 (iii) Curis will notify Genentech in writing of Curis’ requirements for the manufacture
of the drug substance and the drug product for the Phase I Clinical Trials and Phase II Clinical Trials and may also solicit offers from Third Party contract manufacturers for such supply. Genentech shall have the right, but not the
obligation, to manufacture such drug substance and drug product, such right to be exercised no later than thirty (30) days from receipt of any such Curis notice by Genentech providing a written proposal to Curis setting forth the financial and
other material terms upon which Genentech (or its Affiliate) is willing to manufacture such drug substance and drug product; provided, however, the Parties agree that the price to be paid by Curis to Genentech for any such materials shall be
[**] percent ([**]%) of Genentech’s Cost of Goods, except that if the price offered to Curis in a bona fide offer of a reputable Third Party contract manufacturer for the same quantity of drug substance and drug product is less than [**]
percent ([**]%) of Genentech’s Cost of Goods, then Curis shall have the right to contract with such Third Party, instead of which Genentech, for such manufacture, unless within [**] days of Genentech’s receipt of such Third Party terms,
Genentech agrees to match the price offered by such Third Party. Except to the extent Curis is entitled to contract with such Third Party for such manufacture in accordance with the preceding sentence, Curis and Genentech shall negotiate and enter
into a definitive manufacturing agreement on commercially reasonable terms within [**] days of the date Genentech submits its manufacturing proposal to Curis. 
 (iv) Curis shall keep Genentech regularly and fully informed of the results of such preclinical and clinical development activities. Upon Genentech’s written request, and in any event within
thirty (30) days following completion of Phase II Clinical Trials of a Curis Product, Curis shall provide Genentech with written documentation of the Curis Expenses incurred by Curis with respect to such Curis Product. At any time prior to
the date that is [**] days after disclosure to Genentech of the results of Phase II Clinical Trials of such Curis Product (the “Exercise Period”), Genentech shall have the right either: 

(1) to designate such Curis Product as a Lead Product and assume responsibility for further development and commercialization
thereof, in which event Genentech shall provide Curis with written notice thereof and shall pay to Curis [**] percent ([**]%) of the Curis Expenses incurred to date for such Curis Product, in each case prior to the end of the Exercise Period; or

 (2) to require that Curis cease all further development of such Curis Product, in which event Genentech shall provide
Curis with written notice thereof and shall pay to Curis [**] percent ([**]%) of the Curis Expenses incurred to date for such Curis Product, in each case prior to the end of the Exercise Period. 

  
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 (v) Any Curis Product for which Genentech has exercised its right under
Section 6.1(c)(iv)(1) and paid Curis [**] percent ([**]%) of the Curis Expenses as set forth above shall, effective upon such payment, be deemed a Lead Product for purposes of this Agreement, except that Genentech shall not be obligated to pay
to Curis any milestone payments hereunder with respect to any milestone event that occurred prior to such exercise and payment. Curis shall transfer to Genentech, and Genentech shall have the right to use, all information generated by Curis with
respect to such Lead Product for the indication(s) specified in the applicable Curis Plan, and Genentech shall bear all costs of, and shall have exclusive rights and control over, further clinical development, regulatory affairs, and
commercialization of such Lead Product in such indication(s) in the Territory in accordance with this Agreement. 
 (vi)
If Genentech exercises its right under Section 6.1(c)(iv)(2) with respect to a Curis Product and pays Curis [**] percent ([**]%) of the Curis Expenses as set forth above shall, then neither Party shall thereafter have any right or license
to develop or commercialize such Curis Product. 
 (vii) If the Exercise Period with respect to a Curis Product expires
without Genentech having exercised its right under either Section 6.1(c)(iv)(1) or Section 6.1(c)(iv)(2), then Genentech shall have no further right to cause such Curis Product to be designated a Lead Product or to require that Curis cease
development or commercialization of such Curis Product. 
 6.2 Commercialization of Curis Products. With respect to any
Curis Product as to which Genentech has no further development rights hereunder (including, without limitation, an option to designate it as a Lead Product), Curis will be solely responsible for the manufacture, formulation and commercialization of
such Curis Product (either itself or through or in collaboration with a Third Party, but subject to the oversight of the JSC) and shall bear all associated costs. Genentech shall have the right, but not the obligation, to manufacture the drug
substance and drug product embodied in each Curis Product, such right to be exercised no later than thirty (30) days following Genentech’s final refusal to participate in the development of such Curis Product by Genentech providing a
written proposal to Curis setting forth the financial and other material terms upon which Genentech (or its Affiliate) is willing to manufacture such drug substance and drug product; provided, however, the Parties agree that the price to be
paid by Curis to Genentech for any such materials shall be [**] percent ([**]%) of Genentech’s Cost of Goods, except that if the price offered to Curis in a bona fide offer of a reputable Third Party contract manufacturer for the same
quantity of drug substance and drug product is less than [**] percent ([**]%) of Genentech’s Cost of Goods, then Curis shall have the right to contract with such Third Party, instead of which Genentech, for such manufacture, unless within ten
(10) days of Genentech’s receipt of such Third Party terms, Genentech agrees to match the price offered by such Third Party. Except to the extent Curis is entitled to contract with such Third Party for such manufacture in accordance with
the preceding sentence, Curis and Genentech shall negotiate and enter into a definitive manufacturing agreement on commercially reasonable terms within ninety (90) days of the date Genentech submits its manufacturing proposal to Curis. For the
avoidance of doubt, as between the Parties, except to the extent Genentech has any further rights hereunder 

  
 19 

 
to develop a Curis Product, Curis shall be responsible for all interactions with regulatory authorities in the Territory with respect to such Curis Product and will bear the associated costs.
Curis shall own any IND and NDA filings made with respect to each such Curis Product. 
 7. LICENSE
GRANTS 
 7.1 License Grants to Genentech. 

(a) Research License. Subject to the terms of this Agreement and subject to the rights of Existing Licensors under the Existing
License Agreements, Curis hereby grants to Genentech an exclusive, royalty-free, worldwide right and license, during the Term, with the right to sublicense in accordance with Section 7.1(c), under the Curis Technology and Curis’ interest
in Joint Patents to perform Genentech’s obligations under the Research Plan. 
 (b) Development and Commercialization
License for Lead Products and Collaboration Products. Subject to the terms of this Agreement and subject to the rights of Existing Licensors under the Existing License Agreements, Curis hereby grants to Genentech an exclusive, royalty-bearing
license, during the Term, with the right to sublicense in accordance with Section 7.1(c), under the Curis Technology and Curis’ interest in Joint Patents to make, have made, use, sell, offer for sale, have sold and import Lead Products and
Collaboration Products in the License Field in the Territory. 
 (c) Sublicensing. Genentech’s right to sublicense
its rights under Sections 7.1(a) and 7.1(b) [**], to grant further sublicenses. [**], Genentech hereby assumes responsibility [**], as applicable. Genentech [**] granted by Genentech hereunder [**]. 

(d) Diligence. In the event that Curis in good faith believes that Genentech is not meeting its diligence obligations as set
forth in Section 3.3(a) or 3.3(e) (subject to the provisions of Section 2.4), Curis may provide Genentech with written notice thereof. Within [**] days of such notice, Genentech shall do one of the following: (i) provide Curis with
reasonably satisfactory evidence that Genentech is meeting such diligence obligations; (ii) provide Curis with reasonably satisfactory evidence that Genentech has commenced activities sufficient to meet such diligence obligations; or
(iii) provide Curis with reasonably satisfactory evidence that it is not commercially reasonable for Genentech to pursue development of the applicable Lead Product or other Compound. 

(e) Cessation of Development of Antibody Compounds. If, as a result of development decisions made by Genentech or the JSC, no
Antibody Compound is under research or development as part of the Collaboration for a period of [**] months or more and: 

(i) Curis has presented Genentech with a development plan containing reasonably satisfactory evidence that a given Antibody
Compound may have utility for a certain indication; 
 (ii) the potential market for a product based on that Antibody
Compound approved for such indication is not significant enough to warrant development and commercialization of such product by Genentech (as determined solely by Genentech in good faith); and 

  
 20 

 (iii) a product based on that Antibody Compound developed for such indication could
not reasonably be expected to compete with any Small Molecule Compound (or Product based thereon) then under research, development or commercialization by Genentech pursuant to this Agreement; 

then within [**] days of delivery of the development plan described in subsection (i) above, Genentech will either (a) designate such Antibody
Compound as a Lead Product and initiate commercially reasonable efforts to develop same or (b) designate such Antibody Compound as a Curis Product and Curis may develop and commercialize such Curis Product in accordance with all of the terms
and conditions of the Agreement pertaining to Curis Products, including, without limitation, Section 6.1 and Section 7.2(c). 
 7.2 License Grants to Curis. 
 (a) Research License. Subject to the
terms of this Agreement, Genentech hereby: (i) grants to Curis a non-exclusive, worldwide, royalty-free license during the Term, [**], under the Genentech Technology, to perform Curis’ obligations under the Research Plan; and
(ii) grants back to Curis a non-exclusive, worldwide, royalty-free license during the Term, [**], under the rights licensed to Genentech under Section 7.1(a), to perform Curis’ obligations under the Research Plan. 

(b) Development License for Lead Products and Collaboration Products. Subject to the terms of this Agreement, Genentech hereby:
(i) grants to Curis a non-exclusive, worldwide, royalty-free license during the Term, [**], under the Genentech Technology, to perform Curis’ development obligations with respect to Lead Products under this Agreement and with respect to
Collaboration Products under all applicable Co-Development Plans; and (ii) grants back to Curis a non-exclusive, worldwide, royalty-free license during the Term, [**], under the rights licensed to Genentech under Section 7.1(b), to perform
Curis’ development obligations with respect to Lead Products under this Agreement and with respect to Collaboration Products under all applicable Co-Development Plans. 
 (c) Development and Commercialization License for Curis Products. Subject to the terms of this Agreement (including, without limitation, Section 6.1), Genentech hereby: 

(i) grants to Curis an exclusive (except as set forth below), royalty-bearing license during the Term, [**], under the Genentech
Technology and Genentech’s interest in the Joint Patents, to develop Curis Products in accordance with the applicable JSC-approved Curis Plan and to make, have made, use, sell, offer for sale, have sold and import such Curis Product in the
License Field in the Territory; provided, however, that Curis shall not have any right or license under this Section 7.2(c) with respect to [**]; and 
 (ii) grants back to Curis an exclusive (except as set forth below), royalty-free license during the Term, [**], under the Curis Technology and the Joint Patents, to develop Curis Products in
accordance with the applicable JSC-approved Curis Plan and to make, have made, use, sell, offer for sale, have sold and import such Curis Product in the License Field in the Territory. 

  
 21 

 Notwithstanding the foregoing, the license granted under this Section 7.2(c) shall terminate with
respect to a Curis Product upon the earlier of (A) designation of such Curis Product as a Lead Product or a Collaboration Product or (B) Genentech’s exercise of its right to require Curis to cease development and commercialization of
such Curis Product in accordance with Section 6.1(c)(iv)(2). In addition, the exclusivity of the foregoing license shall be subject to Genentech’s retained rights under the Genentech Technology, the Curis Technology and the Joint Patents
to perform its manufacturing rights under any manufacturing agreement entered into by Curis and Genentech in accordance with Section 6.1(c)(iii). 
 (d) Subcontracting. The Parties agree that Curis shall have the right to subcontract one or more of its obligations under the Research Plan or any Co-Development Plan, provided that Curis shall be
responsible for the performance of such subcontractors to the same extent as if Curis were itself performing the subcontracted activity and shall guarantee the compliance of such subcontractors with the provisions of this Agreement, including,
without limitation, Sections 12.1 through 12.4. 
 7.3 Retained Rights. Curis hereby expressly reserves the right to
practice, and to grant licenses under, the Curis Technology and the Joint Patents for any and all purposes other than [**]. Genentech hereby expressly reserves the right to practice, and to grant licenses under, the Genentech Technology and the
Joint Patents for any and all purposes other than the purposes for which Curis has been granted an exclusive license under Section 7.2. 
 7.4 No Implied Licenses. No right or license under any intellectual property rights of either Party is granted or shall be granted by implication. All such rights or licenses are or shall be
granted only as expressly provided in the terms of this Agreement. 
 8. FEES AND
PAYMENTS 
 8.1 Upfront Fee. In partial consideration of the rights and licenses granted
hereunder with respect to Small Molecule Compounds, Genentech shall pay to Curis a one-time, non-refundable fee (the “Upfront Fee”) of five million dollars ($5,000,000) within thirty (30) days of the Effective Date.

 8.2 Annual License Fee. Within thirty (30) days of each of the first and second anniversaries of the Effective
Date, provided that Curis has used commercially reasonable efforts to meet its obligations under Section 3.1 during the first or second twelve (12) month period of this Agreement, as applicable, Genentech shall pay to Curis an annual
license fee (each a “License Fee”) of two million dollars ($2,000,000), for an aggregate of four million dollars ($4,000,000) in License Fees. Termination of this Agreement by Genentech effective twelve (12) months or
more after the Effective Date pursuant to Section 13.2 hereof will not terminate Genentech’s obligation to pay the first License Fee required by this Section 8.2. In addition, if Genentech provides notice to Curis of the termination
of this Agreement pursuant to Section 13.2 with one hundred eighty (180) or fewer days remaining in the second twelve (12) month period of this Agreement, Genentech shall pay the second License Fee on or before its scheduled due date.

  
 22 

 8.3 Equity Investment. In partial consideration of the rights and licenses granted
hereunder with respect to Antibody Compounds, within thirty (30) days of the Effective Date, Genentech shall purchase three million five hundred thousand dollars ($3,500,000) of Curis common stock, at a price per share equal to the average of
the daily closing prices for the Curis common stock for the thirty (30) consecutive trading days immediately preceding the Effective Date, and otherwise on the terms set forth in the Stock Purchase Agreement. 

8.4 Milestone Payments. Within thirty (30) days after achievement by Genentech or its sublicensees of each of the following
milestones solely with respect to the first Small Molecule Compound or the first Antibody Compound to achieve the first occurrence of each event set forth below for those first Compounds, Genentech shall pay Curis the following non-refundable
milestone payments (the “Milestone Payments”): 
 (a) Small Molecule Compounds. 

 

					
	 Milestone Event for Products Based on Small Molecule Compounds
	  	Payment Amount	 
	 Filing of an IND in any Major Market for the treatment or prevention of any human cancer, including, but not limited to,
BCC
	  	$	3,000,000	  
	 Filing of [**]
	  	$	[**]	  
		
	 First administration of the Compound in a patient enrolled in the first Phase II Clinical Trial for:
	  			
	 BCC
	  	$	3,000,000	  
	 First non-BCC solid tumor indication
	  	$	3,000,000	  
	 Second non-BCC solid tumor indication
	  	$	3,000,000	  
		
	 First administration of the Compound in a patient enrolled in the first Phase III or Phase II/III Clinical Trial
for:
	  			
	 BCC
	  	$	6,000,000	  
	 [**]
	  	$	[**]	  
	 [**]
	  	$	[**]	  
		
	 First NDA filed and accepted by the FDA or foreign equivalent agency in:
	  			
	 United States
	  	$	8,000,000	  
	 Major Market in the European Union
	  	$	6,000,000	  
	 [**]
	  	$	[**]	  
	 Australia (for BCC only)
	  	$	4,000,000	  
		
	 Approval of an NDA in United States for commercial sale of the Compound for:
	  			
	 BCC
	  	$	10,000,000	  
	 [**]
	  	$	[**]	  
	 [**]
	  	$	[**]	  
		
	 Approval of [**]
	  			
	 [**]
	  	$	[**]	  
	 [**]
	  	$	[**]	  
	 [**]
	  	$	[**]	  
		
	 Approval of [**]
	  			
	 [**]
	  	$	[**]	  
	 [**]
	  	$	[**]	  
		
	 Approval of [**]
	  	$	[**]	  

  
 23 

					
		
	 (b) Antibody Compounds.
	 			
		
	 Milestone Event for Products Based on Antibody Compounds
	 	Payment Amount	 
	 Filing of [**]
	 	$	[**]	  
		
	 Filing of [**]
	 	$	[**]	  
		
	 First [**]
	 			
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
		
	 First [**]:
	 			
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
		
	 First [**]
	 			
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
		
	 Approval of [**]
	 			
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
		
	 Approval of [**]:
	 			
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
		
	 Approval of [**]:
	 			
	 [**]
	 	$	[**]	  
	 [**]
	 	$	[**]	  
		
	 Approval of [**]
	 	$	[**]	  

  
 24 

 8.5 Royalties Payable by Genentech. 

(a) Royalty Payments on Lead Products. 
 (i) Except to the extent Section 8.5(a)(ii) applies, Genentech shall pay to Curis the following royalties on worldwide Net Sales of each Lead Product (excluding Collaboration Products and
Curis Products), calculated on a Lead Product-by-Lead Product and country-by-country basis: 
 (1) [**] percent ([**]%)
of that portion of worldwide annual Net Sales of a Lead Product that is less than or equal to [**] dollars ($[**]); 
 (2)
[**] percent ([**]%) of that portion of worldwide annual Net Sales of a Lead Product that is in excess of [**] dollars ($[**]) and less than or equal to [**] dollars ($[**]); 

(3) [**] percent ([**]%) of that portion of worldwide annual Net Sales of a Lead Product that is in excess of [**]dollars ($[**])
and less than or equal to [**]dollars ($[**]); and 
 (4) [**] percent ([**]%) of that portion of worldwide annual Net
Sales of a Lead Product that is in excess of [**] dollars ($[**]). 
 (ii) With respect to each Lead Product (excluding
Collaboration Products and Curis Products) for the treatment of BCC in a topical formulation (and not for Systemic Delivery), Genentech shall pay to Curis the following royalties on Net Sales of such Lead Product: 

(1) [**] percent ([**]%) of that portion of annual Net Sales of such Lead Product in the United States that is less than or equal
to [**] dollars ($[**]); and 

  
 25 

 (2) [**] percent ([**]%) of that portion of annual Net Sales of such Lead Product in
the United States that is greater than [**] dollars ($[**]). 
 For purposes of clarification, the royalties described in this
Section 8.5(a)(ii) are not due with respect to a Collaboration Product which is co-developed by Curis and Genentech unless such Collaboration Product is re-designated as a Lead Product pursuant to Section 4.2 or 4.3(b). 

(iii) With respect to Lead Products (excluding Collaboration Products and Curis Products) in a topical formulation (and not for
Systemic Delivery) approved for the treatment of BCC in the Territory (regardless of whether such Lead Products are approved and marketed in the United States as Collaboration Products), [**] percent ([**]%) of annual Net Sales of such Lead Products
in all countries of the Territory, excluding the United States. 
 (b) Royalty Payment Reductions. Each of the following
royalty reduction mechanisms shall operate independently, and one or more may apply to a Lead Product. 
 (i)
Genentech’s total royalty obligation to Curis with respect to a Lead Product shall be reduced by an amount equal to [**] percent ([**]%) of annual Net Sales of such Lead Product in each country in which either (A) such Lead Product is
a Know-How Product or (B) a product (a “Competing Product”) that binds to the same molecular target as such Lead Product has been approved by the applicable regulatory authority and is being sold in such country by a
Third Party for use in the same indication as such Lead Product. 
 (ii) Genentech’s total royalty obligation to
Curis with respect to a Lead Product shall be reduced by an amount equal to [**] percent ([**]%) of annual Net Sales of such Lead Product to the extent that such Lead Product is a Modified Product. 

(iii) If a license under a Valid Claim of any patent rights of one or more Third Parties is required in order for Genentech to
either (i) commercialize a Lead Product, which Valid Claim, but for such license, would be infringed by the practice of the Curis Patents, Genentech Patents or Joint Patents, (ii) commercialize a Lead Product, which Valid Claim, but for
such license, would be infringed by the identification of, or the identification of the utility of, such Lead Product or (iii) make, have made, use, sell, have sold, offer for sale or import a Lead Product, which Valid Claim, but for such
license, would be infringed by such acts, then in each case (i), (ii) or (iii) above, Genentech may deduct [**] percent ([**]%) of the amount of any royalty payments made to such Third Party(ies) for such license(s) from the royalties
payable hereunder with respect to such Lead Product; provided, however, that in no event shall any tier of the royalties that would otherwise be due under Section 8.5(a) with respect to such Lead Product be reduced by more than
[**] ([**]) percentage points (e.g., the royalty payable under Section 8.5(a)(i)(1) shall never be less than [**] percent ([**]%) of Net Sales of such Lead Product). 

  
 26 

 Notwithstanding the foregoing or any other provision of this Agreement to the contrary, in no event shall
all applicable royalty reduction provisions of Sections 8.5(b)(i), 8.5(b)(ii) and 8.5(b)(iii) taken together reduce the royalties that would otherwise be due under Section 8.5(a) by more than [**] percent ([**]%). 

(c) Royalty Term. Royalties for sales of each Lead Product in a given country shall be paid for a period equal to the Royalty
Term for such Lead Product in such country. Upon expiration of the Royalty Term for a Lead Product in a country, Genentech shall have a fully-paid, royalty free, non-exclusive, perpetual license under the Curis Technology to make, have made, use,
sell, offer for sale and import such Lead Product in the License Field in such country. 
 (d) No Credit. The Parties
agree and understand that the Upfront Fee, both License Fees and all Milestone Payments and Evotec Payments due hereunder are in addition to, and shall not be creditable against, any royalty payments due hereunder. 

8.6 Royalties Payable by Curis. 
 (a) Royalty Payments on Curis Products. Curis shall pay to Genentech the applicable royalty set forth below on worldwide Net Sales of each Curis Product, calculated on a Product-by-Product basis:

 (i) with respect to any Curis Product that was identified using, or the utility of which was identified using, a
Valid Claim of the Genentech Patents, but the manufacture, use or sale of which, but for the licenses granted to Curis hereunder, would not infringe a Valid Claim of the Genentech Patents, [**] percent ([**]%) of annual Net Sales of such Curis
Product; and 
 (ii) with respect to any Curis Product the manufacture, use or sale of which, but for the licenses
granted to Curis hereunder, would infringe a Valid Claim of the Genentech Patents, [**] percent ([**]%) of annual Net Sales of such Curis Product. 
 (b) Royalty Payment Reductions. If a license under a Valid Claim of any patent rights of one or more Third Parties is required in order for Curis to either (i) commercialize a Curis Product,
which Valid Claim, but for such license, would be infringed by the practice of the Genentech Patents or Joint Patents, (ii) commercialize a Curis Product, which Valid Claim, but for such license, would be infringed by the identification of, or
the identification of the utility of, such Curis Product or (iii) make, have made, use, sell, have sold, offer for sale or import a Curis Product, which Valid Claim, but for such license, would be infringed by such acts, then in each case (i),
(ii) or (iii) above, Curis may deduct [**] percent ([**]%) of the amount of any royalty payments made to such Third Party(ies) for such license(s) from the royalties payable hereunder with respect to such Curis Product; provided,
however, that in no event shall all deductions permitted by this Section 8.6(b) with respect to a Curis Product reduce the royalties that would otherwise be due under Section 8.6(a) with respect to such Curis Product by more than [**]
percent ([**]%). 
 (c) Royalty Term. Royalties for sales of each Curis Product in a given country shall be paid for a
period equal to the Royalty Term for such Curis Product in such 

  
 27 

 
country. Upon expiration of the Royalty Term for a Curis Product in a country, Curis shall have a fully-paid, royalty free, non-exclusive, perpetual license under the applicable Genentech
Patent(s) to make, have made, use, sell, offer for sale and import such Curis Product in the License Field in such country. 

8.7 Payments to Evotec OAI. If Curis and Genentech reasonably determine that Curis is obligated to pay milestone payments to
Evotec OAI pursuant to the Evotec Agreement (each, an “Evotec Payment”), Genentech will reimburse Curis for such Evotec Payments, not to exceed on a Compound-by-Compound basis: 

(a) [**] dollars ($[**]) upon completion of Phase II Clinical Trials for the first indication for a Compound, and [**]
dollars ($[**]) upon the earlier to occur of (i) completion of Phase II Clinical Trials for the second indication for such Compound and (ii) twenty-four (24) months after completion of Phase II Clinical Trials for the first
indication for such Compound; 
 (b) [**] dollars ($[**]) upon receipt of marketing approval of such Compound in a Major
Market for the first indication, and [**] dollars ($[**]) upon the earlier to occur of (i) receipt of marketing approval of such Compound in a Major Market for the second indication or (ii) twenty-four (24) months after receipt of
marketing approval of such Compound in a Major Market for the first indication; and 
 (c) [**] dollars ($[**]) upon the
achievement of [**] dollars ($[**]) in cumulative worldwide Net Sales of a Product based on such Compound. 
 Curis will bear all costs that may
become due under the Evotec Agreement as a result of the transactions and activities contemplated by this Agreement other than (A) those expressly set forth above and (B) to the extent that the JSC approves having more than 4 Evotec OAI
FTE’s assigned to performance of the Research Plan in accordance with Section 3.1, the costs charged by Evotec OAI for such number of FTEs in excess of 4. 
 8.8 Payments to Third Party Licensors. Curis will bear all costs that may become due under the Existing License Agreements as a result of the transactions and activities contemplated by this
Agreement, including but not limited to license fees, milestone payments and royalty payments required thereunder. Subject to Section 8.5(b), Genentech shall be solely responsible for all payments that may become due to Third Party licensors of
patent rights necessary for the development or commercialization of Lead Products other than payments due under the Existing License Agreements. 
 9. PAYMENTS; RECORDS; AUDITS 
 9.1 Payment; Reports. Royalty payments and reports for the sale of Products shall be estimated and reported for each of the first three (3) calendar quarters of each year and reconciled
following the last quarter of each year. All estimated and reconciled royalty payments due to a Party under this Agreement shall be paid within sixty (60) days of the end of the applicable calendar quarter. Each payment of royalties shall be
accompanied by a report of Net Sales of Products in sufficient detail to permit confirmation of the accuracy of the royalty payment made, including, without limitation, the number of each Product sold, the gross sales

  
 28 

 
and Net Sales of each Product in United States dollars, the royalties payable, the exchange rates used and any other information necessary to determine the appropriate amount of royalties due. To
the extent annual reconciliation results require a reimbursement by one Party to the other Party, such Party will remit such amounts within thirty (30) days of receipt of the report detailing such reconciliation. Each Party will keep complete
and accurate records pertaining to the development of Products and the sale or other disposition of Products in sufficient detail to permit the other Party to confirm the accuracy of all payments due hereunder. Such records shall be retained for at
least three (3) years. 
 9.2 Exchange Rate; Manner and Place of Payment. All payments hereunder shall be payable in
United States dollars. With respect to each quarter, for countries other than the United States, whenever conversion of Net Sales from any foreign currency shall be required, such conversion shall be made using the exchange rate in effect on the
last day of business for a given calendar quarter in which the Net Sales are made, as published by Reuters. All payments owed under this Agreement shall be made by wire transfer to a bank and account designated in writing by the Party entitled to
receive such payment, unless otherwise specified by such Party. 
 9.3 Late Payments. In the event that any payment,
including but not limited to royalties, Milestone Payments, the Upfront Fee, Annual License Fees and Evotec Payments, due hereunder is not made when due, the payment shall accrue interest from the date due at the prime rate plus two
(2) percentage points, as published in the Federal Reserve Bulletin H.15 or successor thereto; provided, however, that in no event shall such rate exceed the maximum legal annual interest rate allowed by law. The payment of such interest
shall not limit a Party from exercising any other rights it may have as a consequence of the lateness of any payment. 
 9.4
Records and Audits. On thirty (30) days prior written notice and no more than once per calendar year, Curis and the Existing Licensors, if applicable, on the one hand, and Genentech, on the other hand, shall have the right to have an
independent certified public accountant reasonably acceptable to the other Party inspect the books and records of such other Party and its sublicensees, during usual business hours for the sole purpose of verifying the completeness and accuracy of
the reports delivered and payments made under this Agreement. Such examination with respect to any fiscal year shall not take place later than three (3) years following the end of such fiscal year, and no fiscal year may be audited more than
once. The accountant shall inform the auditing Party (and, if Curis is the auditing Party, the Existing Licensors, if applicable) only if there has been an underpayment or an overpayment, and if so, the amount thereof and whether the books and
records have been kept in a manner consistent with good accounting practices. The expense of any such inspection shall be borne by the auditing Party; provided, however, that, if the inspection discloses an underpayment in excess of five
percent (5%) (in aggregate or for any twelve (12) month period), then the audited Party shall pay the out-of-pocket costs of such audit. The audited Party will promptly remit to the auditing Party the amount of any underpayments revealed
by such audit, plus interest. 
 9.5 Withholding of Taxes. Any withholding of taxes levied by tax authorities outside the
United States on the payments hereunder shall be borne by the Party receiving such payment and deducted by the Party making such payment from the sums otherwise payable by it hereunder for payment to the proper tax authorities. The Parties agree to

  
 29 

 
cooperate with each other, in the event a Party claims exemption from such withholding or seeks deductions under any double taxation or other similar treaty or agreement from time to time in
force, such cooperation to consist of providing receipts of payment of such withheld tax or other documents reasonably available. 
 9.6 Exchange and Royalty Rate Controls. If at any time legal restrictions prevent the prompt remittance of part or all royalties with respect to any country where any Product is sold, payment shall
be made through such lawful means or methods as the paying Party may determine. When in any country the law or regulations prohibit both the transmittal and deposit of royalties on sales in such a country, royalty payments shall be suspended for as
long as such prohibition is in effect, and as soon as such prohibition ceases to be in effect, all royalties that would have been obligated to be transmitted or deposited, but for the prohibition, shall forthwith be deposited or transmitted promptly
to the extent allowable, as the case may be. If any royalty rate specified in this Agreement should exceed the permissible rate established in any country, the royalty rate for sales in such country shall be adjusted to the highest legally
permissible or government-approved rate. 
 10. INTELLECTUAL PROPERTY

 10.1 Ownership of Technology. Inventorship with respect to inventions conceived and reduced to practice during the Term
by either (a) Genentech’s employees, agents, sublicensees, Affiliates, subcontractors or other designated Third Parties, (b) Curis’ employees, agents, sublicensees, Affiliates, subcontractors or other designated Third Parties or
(c) both Parties’ employees, agents, sublicensees, Affiliates, subcontractors or other designated Third Parties, in each case (a), (b) or (c), pursuant to work carried out under the Collaboration (collectively, the
“Inventions”) shall be jointly owned by Genentech and Curis during the Term of this Agreement. Each Party shall require all of its employees, agents, sublicensees, Affiliates, subcontractors or other designated Third Parties
to assign all Inventions invented by them and that are the subject of patent applications, to Genentech and Curis as joint owners. All foreign and domestic patents and patent applications (including provisionals, divisionals, continuations and
continuations-in-part thereof) claiming any Invention shall be considered “Joint Patents” for purposes of this Agreement. Except as expressly permitted under the terms of the Agreement, neither Party shall transfer any
ownership interest or grant any rights to any Third Party to any Inventions or Joint Patents without the prior written consent of the other Party. 
 10.2 Patent Prosecution. It is the intention of the Parties to secure broad patent protection for discoveries and inventions made in the course of the Collaboration. 

(a) Genentech shall be responsible for the filing, prosecution and maintenance, at Genentech’s sole cost, of all Genentech
Patents. 
 (b) Subject to the rights of the Existing Licensors pursuant to the Existing License Agreements, the Parties
shall be jointly responsible for the filing, prosecution, maintenance, enforcement and defense of any Curis Patent licensed to Genentech hereunder that claims any method of use, composition of matter, or method of manufacture of any Compound (other
than a Curis Product as to which Genentech has no further development rights hereunder (including, without limitation, an option to designate it as a Lead Product)), excluding the Curis 

  
 30 

 
Patents described in Section 10.2(c). As promptly as practicable following the Effective Date, the Parties shall mutually agree upon an independent law firm to file, prosecute, maintain,
enforce and defend the Curis Patents that are subject to this Section 10.2(b). The Parties agree to instruct the law firm to take and act on the input and instructions of both Parties without prejudice to either Party. The Parties shall share
equally in all costs associated with such prosecution, maintenance, enforcement and defense. 
 (c) Curis shall be
solely responsible for the filing, prosecution and maintenance, at Curis’ sole cost, of: (i) any Curis Patent licensed to Curis pursuant to an Existing License Agreement which Curis does not have the sole right to file, prosecute and
maintain by the terms of such Existing License Agreement; (ii) all Curis Patents under which any Third Party has been granted a license prior to the Effective Date; (iii) all Curis Patents that claim any composition of matter, method of
use or method of manufacture of any compound other than a Compound (regardless of whether any such Curis Patent also claims any method of use, composition of matter, or method of manufacture of any Compound); and (iv) all Curis Patents that
claim a Curis Product as to which Genentech has no further development rights hereunder (including, without limitation, an option to designate it as a Lead Product). 
 (d) The Parties shall be jointly responsible for the filing, prosecution, maintenance, enforcement and defense of Joint Patents using a mutually agreeable independent law firm. The Parties agree to
instruct the law firm to take and act on the input and instructions of both Parties without prejudice to either Party. The Parties shall share equally in all costs associated with such prosecution, maintenance, enforcement and defense. 

(e) To the extent that a Party is solely responsible for filing, prosecution and maintenance under this Section 10.2 of
patent rights that are owned or co-owned by, or subject to a license granted under this Agreement to, such Party shall (i) consider in good faith the requests and suggestions of such other Party with respect to strategies for filing,
prosecuting and maintaining such patent rights that are subject to this Section 10.2, and (ii) keep such other Party informed of progress with regard to the filing, prosecution and maintenance of such patent applications and patents. In
the event Curis is solely responsible for the filing, prosecution and maintenance of patent applications or patents hereunder that are owned or co-owned by, or are subject to an exclusive license granted under this Agreement, and Curis elects not to
do so (other than because Curis has determined in good faith not to file a patent application with respect to an invention but to maintain such invention as a trade secret), it shall inform Genentech at least sixty (60) days before any relevant
deadline for filing or other action and transmit all information reasonable and appropriate relating to such patent or patent application, and Genentech shall have the right to file, prosecute and maintain such patent applications and patents at its
own expense, in which case Curis shall assign to Genentech its rights in such patent applications and patents. 
 10.3
Cooperation of the Parties. Each Party agrees to cooperate fully in the preparation, filing, and prosecution of any patent and patent applications related to the Collaboration. Such cooperation includes, but is not limited to: 

(a) executing all papers and instruments, or requiring its employees or agents to execute such papers and instruments, so as to
effectuate the ownership of patent rights set forth in Section 10.1 above and to enable the owning Party to apply for and to prosecute patent applications in any country; and 

  
 31 

 (b) promptly informing the other Party of any matters coming to such Party’s
attention that may affect the preparation, filing, prosecution or maintenance of any such patent applications. 
 10.4
Infringement by Third Parties. 
 (a) Curis and Genentech shall promptly notify the other in writing of any alleged
or threatened infringement of any Curis Patent, Genentech Patent or Joint Patent of which they become aware. 
 (b)
Genentech shall have the first right, but not the obligation, to bring and control any action or proceeding, at its own expense and by counsel of its own choice, with respect to infringement of any Genentech Patent. 

(c) The enforcement of any Curis Patent that is subject to the provisions of Section 10.2(b) against any Third Party shall
be governed by such Section 10.2(b). 
 (d) Curis shall have the first right, but not the obligation, to bring and
control any action or proceeding with respect to infringements of any Curis Patent other than those subject to Section 10.2(b). 
 (e) The enforcement of any Joint Patent against any Third Party shall be governed by Section 10.2(d). 
 (f) The Party not bringing an action under this Section 10.4 shall have the right, at its own expense and by counsel of its own choice, to be represented in any action involving any patent
owned solely by such Party or jointly by the Parties. If Curis fails to bring an action or proceeding with respect to a patent that is owned or Controlled by Curis and that is subject to an exclusive license granted under this Agreement to
Genentech, Genentech within: (i) sixty (60) days following the notice of alleged infringement; or (ii) ten (10) days before the time limit, if any, set forth in the appropriate laws and regulations for the filing of such actions, whichever
comes first, Genentech shall have the right to bring and control any such action at its own expense and by counsel of its own choice, and Curis shall have the right, at its own expense and by counsel of its own choice, to be represented in any such
action. In the event a Party brings an infringement action, the other Party shall cooperate fully, including if required to bring such action, the furnishing of a power of attorney. Neither Party shall have the right to settle any patent
infringement action under this Section 10.4 in a manner that diminishes the rights or interests of the other Party without the consent of such other Party. Both the right of Genentech to bring infringement actions under this Section 10.4
and the distribution of any recovery received as a result of an action brought pursuant to this Section 10.4 shall be subject to the rights of applicable Existing Licensors under applicable Existing License Agreements. Except as provided in the
preceding sentence or otherwise agreed to by the Parties as part of a cost-sharing arrangement, any recovery realized as a result of such litigation, after reimbursement of any litigation expenses of the Parties, shall be: (i) shared equally by
the Parties in the case of litigation pursuant to Section 10.4(c) or 10.4(e); or (ii) retained by Genentech, except that any 

  
 32 

 
portion of such recovery that is attributable to lost sales of a Lead Product or Collaboration Product shall be treated as Net Sales of such Lead Product or Collaboration Product for purposes of
this Agreement. If, within ninety (90) days following notice from Curis of evidence of an unabated infringing act of a Third Party with respect to a Genentech Patent and that is subject to an exclusive license granted under this Agreement to
Curis, Genentech fails to bring an action or proceeding against such Third Party for such infringing act, then Curis’ total royalty obligation to Genentech with respect to any Curis Product covered by a Valid Claim in such infringed Genentech
Patent shall be reduced by an amount equal to [**] percent ([**]%) of annual Net Sales of such Curis Product in each country in the Territory in which such Third Party’s infringing act results in the marketing and sale of an approved
pharmaceutical product that directly competes with the Curis Products in question; provided, however, that no royalty due to Genentech with respect to any Curis Product shall be reduced by more than [**] percent ([**]%). 

10.5 Infringement of Third Party Rights. Each Party shall promptly notify the other in writing of any allegation by a Third Party
that the activity of either of the Parties hereunder infringes or may infringe the intellectual property rights of such Third Party. Genentech shall have the first right but not the obligation to control any defense of any such claim involving
alleged infringement of Third Party rights by Genentech’s activities under this Agreement at its own expense and by counsel of its own choice, and Curis shall have the right but not the obligation, at its own expense, to be represented in any
such action by counsel of its own choice. If Genentech fails to proceed in a timely fashion with regard to such defense, Curis shall have the right but not the obligation to control any such defense of such claim at its own expense and by counsel of
its own choice, and Genentech shall have the right but not the obligation, at its own expense, to be represented in any such action by counsel of its own choice. Curis shall have the first right but not the obligation to control any defense of any
such claim involving alleged infringement of Third Party rights by Curis’ activities under this Agreement at its own expense and by counsel of its own choice, and Genentech shall have the right but not the obligation, at its own expense, to be
represented in any such action by counsel of its own choice. If Curis fails to proceed in a timely fashion with regard to such defense, Genentech shall have the right but not the obligation to control any such defense of such claim at its own
expense and by counsel of its own choice, and Curis shall have the right but not the obligation, at its own expense, to be represented in any such action by counsel of its own choice. Neither Party shall have the right to settle any infringement
action under this Section 10.5 in a manner that diminishes the rights or interests of the other Party hereunder without the consent of such Party. 
 11. REPRESENTATIONS AND WARRANTIES 
 11.1 Mutual Representations and Warranties. Each Party represents to the other that as of the Effective Date: 
 (a) Corporate Power. It is duly organized and validly existing under the laws of its state of incorporation or formation, and has full corporate power and authority to enter into this Agreement and
to carry out the provisions hereof; 
 (b) Due Authorization. It is duly authorized to execute and deliver this
Agreement and to perform its obligations hereunder, and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action; 

  
 33 

 (c) Binding Agreement. This Agreement is legally binding upon it and enforceable in
accordance with its terms. The execution, delivery and performance of this Agreement by it do not conflict with, or require the consent of a Third Party (including, without limitation, in the case of Curis any Existing Licensor) under, any
agreement, instrument or understanding, oral or written, to which it is a Party or by which it may be bound (other than consents that have been obtained prior to the Effective Date), nor violate any material law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over it; and 
 (d) Grant of Rights; Maintenance of
Agreements. It has not granted, and will not grant during the Term, any right to any Third Party which would conflict with the rights granted to the other Party hereunder. It has (or will have at the time performance is due) maintained and will
maintain and keep in full force and effect all agreements (including license agreements) and filings (including patent filings) necessary to perform its obligations in accordance with the terms of this Agreement. 

11.2 Representations and Warranties of Curis; Covenants of Curis. Curis hereby represents and warrants to Genentech that as of the
Effective Date: 
 (a) Curis has sufficient rights in the Curis Patents listed on Schedule 1.24 to
grant the licenses granted to Genentech hereunder; 
 (b) Curis is not aware of any action, suit or inquiry or
investigation instituted by or before any court or governmental agency that questions or threatens the validity of any Curis Patent listed on Schedule 1.24 hereto; 

(c) Curis has not received any notice from any Third Party alleging that the practice of any Curis Patent listed on
Schedule 1.24 infringes the intellectual property rights of such Third Party; and 
 (d) Curis has
not pledged, assigned or granted any security interest in any Curis Patent listed on Schedule 1.24 hereto to any Third Party. In addition, Curis shall not, during the Term, pledge, assign or grant any security interest in any of
the Curis Patents to any Third Party. 
 11.3 Disclaimer Concerning Technology. EXCEPT AS SPECIFICALLY SET FORTH HEREIN,
THE TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS PROVIDED BY EACH PARTY AND THE MATERIALS PROVIDED BY CURIS HEREUNDER ARE PROVIDED “AS IS,” AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION THE WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES. Without limiting the
generality of the foregoing, each Party expressly does not warrant (a) the success of any study or test commenced under the Collaboration or (b) the safety or usefulness for any purpose of the technology it provides hereunder. 

  
 34 

 12. CONFIDENTIALITY; PUBLICATION

 12.1 Confidentiality. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the
Parties, the Parties agree that, during the Term and for the five (5) year period immediately following the Term, each Party (the “Receiving Party”) shall keep confidential and shall not publish or otherwise disclose and
shall not use for any purpose (other than as expressly provided for in this Agreement) any Confidential Information furnished to it by, or otherwise belonging to, the other Party (the “Disclosing Party”) pursuant to this
Agreement. Each Party may use Confidential Information of the other Party only to the extent required to accomplish the purposes of this Agreement. The Receiving Party will use at least the same standard of care as it uses to protect proprietary or
confidential information of its own to ensure that its employees, agents, consultants and other representatives do not disclose or make any unauthorized use of the Disclosing Party’s Confidential Information. Each Party will promptly notify the
other upon discovery of any unauthorized use or disclosure of the other Party’s Confidential Information. 
 12.2
Exceptions. The obligations of confidentiality and non-use contained in Section 12.1 will not apply to the extent it can be established by the Receiving Party by competent proof that such Confidential Information: 

(a) is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party, generally known or
available; 
 (b) is known by the Receiving Party at the time of receiving such information, other than under
confidentiality, as evidenced by its records; 
 (c) is hereafter furnished to the Receiving Party by a Third Party, as
a matter of right and without restriction on disclosure; 
 (d) is independently developed by the Receiving Party
without the aid, application or use of Confidential Information of the Disclosing Party; or 
 (e) is the subject of a
written permission to disclose provided by the Disclosing Party. 
 12.3 Terms of Agreement. The Parties agree that this
Agreement and the terms hereof will be considered Confidential Information of both Parties. 
 12.4 Authorized Disclosure.
Each Party may disclose Confidential Information belonging to the other Party to the extent such disclosure is reasonably necessary in the following instances: 
 (a) filing or prosecuting patent rights in accordance with this Agreement; 

(b) submitting regulatory filings with respect to Products in accordance with this Agreement; 

  
 35 

 (c) prosecuting or defending litigation; 

(d) complying with applicable court orders or governmental regulations; 

(e) complying with reporting requirements under the Existing License Agreements; 

(f) conducting pre-clinical or clinical trials of Products in accordance with this Agreement; and 

(g) disclosure to bona fide potential sublicensees (to the extent permitted hereunder), or to existing or potential
investors and lenders for fundraising or financing efforts or in connection with due diligence or similar investigations by such Third Parties, in each case who agree to be bound by similar terms of confidentiality and non-use at least equivalent in
scope to those set forth in this Section 12. 
 Notwithstanding the foregoing, in the event a Party is required to make a
disclosure of the other Party’s Confidential Information pursuant to Section 12.4(c) or 12.4(d), it will provide the other Party with as much prior written notice as reasonably possible and seek (or cooperate with the other Party’s
efforts to seek) to secure confidential treatment of such information at least as diligently as such Party would use to protect its own Confidential Information. The Parties will consult with each other on the provisions of this Agreement to be
redacted in any filings made by the Parties with the Securities and Exchange Commission or as otherwise required by law. 

12.5 Publications. Each Party to this Agreement recognizes that the publication or disclosure of papers, presentations, abstracts
or any other written or oral presentations regarding results of and other information regarding the Collaboration may be beneficial to both Parties provided such publications or presentations are subject to reasonable controls to protect
Confidential Information. Accordingly, each Party shall have the right to review and approve any paper or presentation proposed for disclosure by the other Party which utilizes data generated from the Collaboration and/or includes Confidential
Information of the other Party. Before any such paper or presentation is disclosed, the Party proposing disclosure shall deliver a complete copy to the other Party at least thirty (30) days prior to submitting the paper to a publisher or making
the presentation to a Third Party. The JSC (or the other Party if the JSC is no longer in existence) shall review any such paper or presentation and give its comments to the disclosing Party within fifteen (15) days of its receipt of such paper
or presentation. The disclosing Party shall comply with the reviewing Party’s request to delete references to Confidential Information of the reviewing Party in any such paper or presentation. 

13. TERM AND TERMINATION 

13.1 Term of the Agreement. The term of this Agreement (the “Term”) shall commence on the Effective Date
and continue until six (6) months after the later to occur of either (i) the expiration of the last Royalty Term for any Product or (ii) such time as no activities under the Collaboration have occurred for a period of twelve
(12) consecutive months, unless earlier terminated in accordance with this Article 11. 

  
 36 

 13.2 Termination by Genentech. Genentech may terminate this Agreement without cause,
effective no earlier than twelve (12) months after the Effective Date upon six (6) months’ prior written notice to Curis of such termination. Genentech may also terminate this Agreement solely with respect to one or more: specific
Compound, delivery system for a Compound (i.e., Systemic Delivery or topical delivery) and/or indication for which a Compound may be used and/or the country(ies) in which a Compound may be developed and commercialized. Any such termination is
permitted no earlier than twelve (12) months after the Effective Date upon six (6) months’ prior written notice and the Agreement shall thereafter be read and interpreted in light of such termination(s). 

13.3 Termination for Cause. Each Party shall have the right to terminate this Agreement upon sixty (60) days’ prior
written notice to the other upon the occurrence of either of the following: 
 (a) Upon or after the bankruptcy,
insolvency, dissolution or winding up of the other Party (other than a dissolution or winding up for the purpose of reconstruction or amalgamation); or 
 (b) Upon or after the breach of any material provision of this Agreement by the other Party if the breaching Party has not cured such breach within the sixty (60) day period following written
notice of termination by the non-breaching Party. 
 13.4 Effect of Termination or Expiration; Surviving Obligations.

 (a) Upon termination of this Agreement in its entirety by Genentech pursuant to Section 13.2, or termination of
this Agreement by Curis pursuant to Section 13.3: 
 (i) all licenses granted by Curis to Genentech hereunder shall
automatically terminate and revert to Curis; 
 (ii) all licenses granted by Genentech to Curis under
Section 7.2(c) that are in effect as of the date of termination with respect to a Curis Product existing as of such termination date shall survive such termination and remain in full force and effect in accordance with their respective terms
for so long as Curis is not in breach of its obligations to Genentech under this Agreement (including, without limitation, its obligations to make royalty payments to Genentech under Section 8.6); and 

(iii) from and after such termination, Genentech itself shall not conduct or have conducted, or direct any Affiliate, licensee or
sublicensee to engage in, any development or commercialization activities relating to any Compound or Product created or identified, or the utility of which was identified, in the course of the Collaboration, for so long as a given Compound is
covered by a Valid Claim in a Curis Patent, Joint Patent or Genentech Patent (excluding the Existing Genentech Patents). 

(b) Upon termination of this Agreement by Genentech pursuant to Section 13.3: 

(i) all licenses granted by Genentech to Curis hereunder shall automatically terminate and revert to Genentech; and 

  
 37 

 (ii) all licenses granted by Curis to Genentech under Sections 7.1(b) that are
in effect as of the time of termination shall survive such termination and remain in full force and effect in accordance with their respective terms for so long as Genentech is not in breach of its obligations to Curis under this Agreement
(including, without limitation, its obligations under Articles 8 and 9); provided, however, that each Collaboration Product as to which Genentech has a license under Section 7.1(b) as of the effective time of such termination shall
thereafter be deemed a Lead Product for purposes of Articles 8 and 9 and shall no longer be subject to sharing of Operating Profits (Losses). 
 (c) Within thirty (30) days after the expiration of the Agreement, or the earlier termination of the Agreement by any Party for any reason, the Parties hereto shall assign, as required, all
issued and pending Joint Patents to each Party in accordance with its relationship to the Invention(s) claimed in each such patent. Accordingly, Genentech shall assign to Curis all of Genentech’s ownership interest in those Joint Patents solely
claiming a Curis Invention, Curis shall assign to Genentech all of Curis’ ownership interest in those Joint Patents solely claiming a Genentech Invention and any Joint Patents claiming Joint Inventions or claiming both a Genentech Invention and
a Curis invention would remain jointly owned by the Parties. 
 (d) Expiration or termination of this Agreement shall
not relieve either Party of any obligation accruing prior to such expiration or termination. Except as otherwise provided in this Section 13.4, upon expiration or termination of this Agreement, all rights and obligations of the Parties under
this Agreement shall terminate, except that the terms of this Section 13.4 (and the provisions referenced herein) and Sections 7.3, 7.4, 11.3, 12.1, 12.2, 12.3, 12.4, 13.5, 13.6, 13.7 and 13.8 and Articles 9, 14, 15 and 16 of this
Agreement shall survive expiration or termination of this Agreement. Within thirty (30) days following the expiration or termination of this Agreement, except to the extent and for so long as a Party retains license rights as provided in this
Section 13.4, each Party shall deliver to the other Party all embodiments of any and all Confidential Information of the other Party (including all copies thereof) in its possession. 

13.5 Exercise of Right to Terminate. The use by either Party hereto of a termination right provided for under this Agreement shall
not give rise to the payment of damages or any other form of compensation or relief to the other Party with respect thereto. 

13.6 Damages; Relief. Subject to Section 13.5 above, termination of this Agreement shall not preclude either Party from
claiming any other damages, compensation or relief that it may be entitled to upon such termination. 
 13.7 Termination of
the Harvard Licenses. In the sole discretion of Harvard, upon the termination of each of the Harvard Licenses, Genentech’s rights and obligations as a sublicensee of Curis under each such Harvard License shall either (a) be terminated
or (b) become rights and obligations of Genentech as if Genentech were the direct licensee under each of the Harvard Licenses. Any sublicenses granted by Genentech hereunder, to the extent the sublicense includes rights conveyed by a Harvard
License, will contain this right for Harvard. 

  
 38 

 13.8 Termination of the 1996 Stanford License. In the event the 1996 Stanford License
Agreement is terminated, Genentech’s rights and obligations as a sublicensee of Curis under the 1996 Stanford License shall become rights and obligations of Genentech as if Genentech were the direct licensee under the 1996 Stanford License.

 14. INDEMNITY 
 14.1 Indemnification. 
 (a) Curis hereby agrees to save, defend and
hold Genentech and its Affiliates and their respective directors, officers, employees and agents (each, a “Genentech Indemnitee”) harmless from and against any and all claims, suits, actions, demands, liabilities, expenses
and/or loss, including reasonable legal expense and attorneys’ fees (collectively, “Losses”), to which any Genentech Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third
Party to the extent such Losses arise directly or indirectly out of: (i) the practice by Curis or its sublicensees (other than Genentech) of any license granted hereunder, (ii) the manufacture, use, handling, storage, sale or other
disposition of any Curis Product by Curis or its sublicensees (other than Genentech), (iii) the breach by Curis or its sublicensees (other than Genentech) of any warranty, representation, covenant or agreement made by Curis in this Agreement,
or (iv) the negligence or willful misconduct of any Curis Indemnitee; except, in each case, to the extent such Losses result from the negligence or willful misconduct of any Genentech Indemnitee or the breach by Genentech of any warranty,
representation, covenant or agreement made by Genentech in this Agreement. 
 (b) Genentech hereby agrees to save,
defend and hold Curis and its Affiliates and their respective directors, officers, employees and agents (each, a “Curis Indemnitee”) harmless from and against any and all Losses to which any Curis Indemnitee may become
subject as a result of any claim, demand, action or other proceeding by any Third Party to the extent such Losses arise directly or indirectly out of: (i) the practice by Genentech or its sublicensees (other than Curis) of any license granted
hereunder, (ii) the manufacture, use, handling, storage, sale or other disposition of any Lead Product or Collaboration Product by Genentech or its sublicensees (other than Curis), (iii) the breach by Genentech or its sublicensees (other
than Curis) of any warranty, representation, covenant or agreement made by Genentech in this Agreement, or (iv) the negligence or willful misconduct of any Genentech Indemnitee; except, in each case, to the extent such Losses result from the
negligence or willful misconduct of any Curis Indemnitee or the breach by Curis of any warranty, representation, covenant or agreement made by Curis in this Agreement. 
 14.2 Indemnification Procedure. 
 (a) Each indemnified Party agrees
to give the indemnifying Party written notice, as soon as is practicable, but in any event within thirty (30) days if possible, of any Losses or the discovery of fact upon which such indemnified party intends to base a request for
indemnification under Section 14.1(a) or 14.1(b). 

  
 39 

 (b) Each Party shall furnish promptly to the other Party copies of all papers and
official documents received in respect of any Losses. The indemnified Party shall cooperate with the indemnifying Party, at the indemnifying Party’s expense, in providing witnesses and records necessary in the defense against any Losses.

 (c) With respect to any Losses relating solely to the payment of money damages and that will not result in the
indemnified Party’s becoming subject to injunctive or other relief, contains an admission of guilt or other responsibility or liability or otherwise adversely affecting the business of the indemnified party in any manner, and as to which the
indemnifying Party shall have acknowledged in writing the obligation to indemnify the indemnified Party hereunder, the indemnifying Party shall have the sole right to defend, settle, or otherwise dispose of such claim, on such terms as the
indemnifying Party, in its sole discretion, shall deem appropriate. 
 (d) With respect to all other Losses, the
indemnifying Party shall obtain the written consent of the indemnified Party, which shall not be unreasonably withheld, prior to ceasing to defend, settling, or otherwise disposing thereof. 

(e) The indemnifying Party shall not be liable for any settlement or other disposition of a Loss by the indemnified Party that is
reached without the written consent of the indemnifying Party. 
 (f) Except as provided above, the costs and expenses,
including fees and disbursements of counsel, incurred by any indemnified Party in connection with any claim shall be reimbursed on a Calendar Quarter basis by the indemnifying Party, without prejudice to the indemnifying Party’s right to
contest the indemnified Party’s right to indemnification and subject to refund in the event the indemnifying Party is ultimately held not to be obligated to indemnify the indemnified Party. 

15. GOVERNING LAW; DISPUTE RESOLUTION 

15.1 Governing Law. This Agreement shall be governed by the laws of the State of California as such laws are applied to contracts
entered into or to be performed entirely within such state. 
 15.2 Disputes. The Parties recognize that disputes as to
certain matters may from time to time arise which relate to either Party’s rights and obligations hereunder. It is the objective of the Parties to establish procedures to facilitate the resolution of such disputes in an expedient manner by
mutual cooperation and without resort to litigation. To accomplish this objective, the Parties agree to follow the procedures set forth in Section 15.3 if and when such a dispute arises between the Parties. 

15.3 Arbitration Procedures. 
 (a) Discussions Between the Parties. If any claim, dispute, or controversy of any nature arising out of or relating to this Agreement, including, without limitation, any action or claim based on
tort, contract or statute, or concerning the interpretation, effect, termination, validity, performance and/or breach of this Agreement, but specifically 

  
 40 

 
excluding any claim, dispute or controversy arising with respect to the JSC or a CSC for which the Parties have established a complete dispute resolution mechanism under Sections 2.2 and
2.3, respectively (each, a “Claim”), arises between the Parties and the Parties cannot resolve the dispute within thirty (30) days of a written request by either Party to the other Party, the Parties agree to refer the
Claim to the Vice President of Business Development of Genentech and the Chief Executive Officer of Curis, or their respective designees, for resolution. If, after an additional sixty (60) days, such officers or their designees have not
succeeded in negotiating a resolution of the dispute, then, upon the written request of either Party, such dispute shall be resolved by final and binding arbitration in accordance with Section 15.3(b). 

(b) Arbitration. Claims between the Parties under this Section 15.3(b) shall be finally settled by binding arbitration
conducted in the English language in accordance with the Rules of Commercial Arbitration of the American Arbitration Association (“AAA”). The arbitration shall be held in San Francisco, California and shall be conducted by
three (3) arbitrators who are knowledgeable in the subject matter at issue in the dispute. One (1) arbitrator will be selected by Curis, one (1) arbitrator will be selected by Genentech, and the third arbitrator will be selected by
mutual agreement of the two (2) arbitrators selected by the Parties, provided that if a Party fails to select an arbitrator within thirty (30) days of the request for arbitration, the arbitrator that was to be selected by such Party shall
be appointed in accordance with the rules of the AAA. During the period prior to the hearing, each Party shall have the right to conduct up to two (2) depositions and to submit up to twenty (20) document requests to the other Party. The
arbitrators may proceed to an award, notwithstanding the failure of either Party to participate in the proceedings. The arbitrators shall, within forty-five (45) calendar days after the conclusion of the arbitration hearing, issue a written
award and statement of decision describing the essential findings and conclusions on which the award is based, including the calculation of any damages awarded. The arbitrators shall be authorized to award compensatory damages, but shall NOT be
authorized to (i) award non-economic or punitive damages (except to the extent expressly permitted by this Agreement), or (ii) reform, modify or materially change this Agreement or any other agreements contemplated hereunder; provided,
however, that the damage limitations described in part (i) of this sentence will not apply if such damages are statutorily imposed. The arbitrators also shall be authorized to grant any temporary, preliminary or permanent equitable remedy
or relief that the arbitrators deem just and equitable and within the scope of this Agreement, including, without limitation, an injunction or order for specific performance. The award of the arbitrators shall be the sole and exclusive remedy of the
Parties. Judgment on the award rendered by the arbitrators may be enforced in any court having competent jurisdiction thereof, subject only to revocation on grounds of fraud or clear bias on the part of the arbitrators. Notwithstanding anything
contained in this Section 15.3(b) to the contrary, each Party shall have the right to institute judicial proceedings against the other Party or anyone acting by, through or under such other Party, in order to enforce the instituting
Party’s rights hereunder through specific performance, injunction or similar equitable relief. This Section 15.3(b) shall not apply to any dispute, controversy or claim that concerns (A) the validity, enforceability or infringement of
a patent, trademark or copyright; or (B) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory. 
 (c) Costs and Awards. Each Party shall bear its own attorneys’ fees, costs, and disbursements arising out of the arbitration, and shall pay an equal share of the fees and costs of the
arbitrators; provided, however, that the arbitrators shall be authorized to 

  
 41 

 
determine whether a party is the prevailing party, and if so, to award to that prevailing party reimbursement for its reasonable attorneys’ fees, costs and disbursements (including, for
example, expert witness fees and expenses, photocopy charges and travel expenses), and/or the fees and costs of the arbitrators. Absent the filing of an application to correct or vacate the arbitration award (if permitted by AAA rules), each Party
shall fully perform and satisfy the arbitration award within fifteen (15) days of the service of the award. 
 (d)
Waiver and Acknowledgment. By agreeing to this binding arbitration provision, the Parties understand that they are waiving certain rights and protections which may otherwise be available if a Claim between the Parties were determined by
litigation in court, including, without limitation, the right to seek or obtain certain types of damages precluded by this provision, the right to a jury trial, certain rights of appeal, and a right to invoke formal rules of procedure and evidence.

 16. GENERAL PROVISIONS 

16.1 Notices. Any notice to be given under this Agreement must be in writing and delivered either in person, by any method of mail
(postage prepaid) requiring return receipt, or by overnight courier or facsimile confirmed thereafter by any of the foregoing, to the Party to be notified at its address(es) given below, or at any address such Party has previously designated by
prior written notice to the other. Notice shall be deemed sufficiently given for all purposes upon the earlier of: (a) the date of actual receipt; (b) if mailed, three days after the date of postmark; or (c) if delivered by overnight
courier, the next business day the overnight courier regularly makes deliveries. 
  

			
	All notices to Genentech shall be addressed as follows:	  	 Genentech, Inc.
 1 DNA
Way
 South San Francisco, CA 94080

Attn: Corporate Secretary
 Fax: (650)
952-9881

		
	with a copy to:	  	 Genentech, Inc.
 1 DNA
Way
 South San Francisco, CA 94080

Attn: Vice President, Business Development
 Fax:
(650) 225-3009

		
	All notices to Curis shall be addressed as follows:	  	 Curis, Inc.
 61 Moulton
Street
 Cambridge, Massachusetts 02138

Attn: Chief Executive Officer
 Fax: (617)
503-6501

		
	with a copy to:	  	 Cooley Godward LLP 
 4401 Eastgate Mall
 San Diego, CA 92121
 Attn: L. Kay Chandler
 Fax: (858) 550-6420

  
 42 

 Any Party may, by written notice to the other, designate a new address or fax number to which notices to the
Party giving the notice shall thereafter be mailed or faxed. 
 16.2 Force Majeure. No Party shall be liable for any
delay or failure of performance (other than payment obligations) to the extent such delay or failure is caused by circumstances beyond its reasonable control and that by the exercise of due diligence it is unable to prevent, provided that the Party
claiming excuse uses its commercially reasonable efforts to overcome the same. 
 16.3 Entirety of Agreement. This
Agreement (including the Research Plan, any and all Co-Development Plans, and the Exhibit and the Schedules hereto) embodies the entire, final and complete agreement and understanding between the Parties and replaces and supersedes all prior
discussions and agreements between them with respect to its subject matter, other than the Stock Purchase Agreement and the Registration Rights Agreement referenced therein, which shall continue in full force and effect in accordance with their
respective terms. Notwithstanding the foregoing, this Agreement is subject to the terms of the Existing License Agreements, as more fully described herein. 
 16.4 Amendment. No modification or waiver of any terms or conditions hereof shall be effective unless made in writing and signed by a duly authorized officer of each Party. 

16.5 Non-Waiver. The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any
right arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any other instance. Any waiver by a Party of a particular provision or
right shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such Party. 
 16.6 Disclaimer of Agency or Partnership. The Parties are independent contractors and nothing in this Agreement or the performance of the Parties under this Agreement shall constitute (or be deemed
to constitute in law or in equity) a partnership, agency, fiduciary, distributorship, employment, or joint venture relationship between the Parties. Neither Party is, or will be deemed to be, the legal representative or agent of the other, nor shall
either Party have the right or authority to assume, create, or incur any Third Party liability or obligation of any kind, express or implied, against or in the name of or on behalf of another except as expressly set forth in this Agreement. In
addition, neither Party shall be deemed to be a member of a partnership with the other Party for tax or any other purpose. 

16.7 Severability. If a court of competent jurisdiction declares any provision of this Agreement invalid or unenforceable, or if
any government or other agency having jurisdiction over either Curis or Genentech deems any provision to be contrary to any laws, then that provision shall be severed and the remainder of the Agreement shall continue in full force and effect. To the
extent possible, the Parties shall revise such invalidated provision in a manner that will render such provision valid without impairing the Parties’ original intent. 

  
 43 

 16.8 Assignment; Acquisition. Except as expressly provided hereunder, neither this
Agreement nor any rights or obligations hereunder may be assigned or otherwise transferred by either Party without the prior written consent of the other Party (which consent shall not be unreasonably withheld); provided, however, that either
Party may assign this Agreement and its rights and obligations hereunder without the other Party’s consent in connection with the transfer or sale of all or substantially all of the business of such Party to which this Agreement relates to a
Third Party, whether by merger, sale of stock, sale of assets or otherwise. In the event of such transaction, however (whether this Agreement is actually assigned or is assumed by the acquiring Party by operation of law (e.g., in the context
of a reverse triangular merger), intellectual property rights of the acquiring party to such transaction (if other than one of the Parties to this Agreement) shall not be included in the technology licensed hereunder. The rights and obligations of
the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. Any assignment not in accordance with this Agreement shall be void. 

16.9 Headings. The headings contained in this Agreement are inserted for reference only and shall not be deemed a part of the text
hereof. 
 16.10 Limitation of Liability. EXCEPT FOR AMOUNTS PAYABLE UNDER SECTION 4.3 AND ARTICLE 8 AND LIABILITY
FOR BREACH OF CONFIDENTIALITY OR FOR INFRINGEMENT OR MISAPPROPRIATION, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS, ARISING FROM OR
RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES; provided, however, that this Section 16.10 shall not be construed to limit either Party’s indemnification obligations under
Article 14. 
 16.11 Compliance with Laws. In exercising their rights and obligations under this Agreement, the
Parties shall comply fully with the requirements of any and all applicable laws, regulations, rules, and orders of any federal, state, or local, whether international or domestic, governmental body having jurisdiction of the exercise of rights under
this Agreement. 
 16.12 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be
an original and all of which shall constitute together the same document. 
 16.13 Currency. All dollar amounts stated
herein are in United States dollars. 
 16.14 Bankruptcy. All rights and licenses granted under this Agreement will be
considered for purposes of Section 365(n) of the Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101(56) of the Bankruptcy Code. The Parties agree that a licensee of such rights under this
Agreement will retain and may fully exercise all of its rights and elections under the Bankruptcy Code. In the event that a licensor seeks or is 

  
 44 

 
involuntarily placed under the protection of the Bankruptcy Code, and the trustee in bankruptcy rejects this Agreement, the licensee hereby elects, pursuant to Section 365(n), to retain all
rights granted to it under this Agreement to the extent permitted by law. 
 16.15 Manufacture in United States. The
Parties acknowledge that the Existing License Agreements are subject to Title 35 United States Code Sections 200 through 204. As a result, the Parties agree to take all reasonable action necessary to enable the Existing Licensors to satisfy their
obligations to the United States Federal Government in relation thereto. 
 16.16 Public Disclosure. Neither Party may
make any public announcement or issue any press releases disclosing achievement of regulatory, scientific or other milestones regarding the Collaboration without the prior review and written consent of the other Party, provided that Genentech shall
not unreasonably withhold or delay its consent to the issuance of a press release disclosing achievement of any milestone event described in Section 8.4. Notwithstanding the foregoing, no disclosure that are required, in the reasonable judgment
of a Party, to comply with applicable laws or regulations, no public announcement, news release, public statement or publication relating to the existence of this Agreement, or the terms hereof, will be made without the other Party’s prior
written approval, which approval shall not be unreasonably withheld. The Parties agree that they will use reasonable efforts to coordinate the initial announcement or press release relating to the existence of this Agreement so that such initial
announcement or press release is made within ten (10) days of the Effective Date. 
 16.17 Export. The Parties agree
not to export, directly or indirectly, any U.S. source technical data acquired from the other Party or any products utilizing such data to countries outside the United States, which export may be in violation of the United States export laws or
regulations. 
 [Remainder of this page intentionally left blank.] 

  
 45 

 IN WITNESS WHEREOF, the Parties hereto
have duly executed this COLLABORATIVE RESEARCH, DEVELOPMENT AND LICENSE Agreement. 
  

									
	GENENTECH, INC.	 		 	CURIS, INC.
					
	By:	 	 /s/ Joseph S. McCracken
	 		 	By:	 	 /s/ Daniel R. Passeri

					
	Name:	 	 Joseph S. McCracken
	 		 	Name:	 	 Daniel R. Passeri

					
	Title:	 	 Vice President, Business and Commercial Development
	 		 	Title:	 	 President and Chief Executive Officer

 EXHIBIT A 

Stock Purchase Agreement 
 [Filed separately as Exhibit 10.2 to the Company’s Current Report on Form 8-K 

filed on July 10, 2003.] 

 SCHEDULE 1.24 

Curis Patents as of the Effective Date 
  

									
	 Application Number
	  	Country	 	Filing Date	 	Patent Number	 	Issue Date
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
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	 [**]
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	 [**]
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	 [**]
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	 [**]
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	 [**]
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	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
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	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]
	 [**]
	  	[**]	 	[**]	 	[**]	 	[**]

									
	 Application Number
	  	Country	  	Filing Date	  	Patent Number	  	Issue Date
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
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	 [**]
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	 [**]
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	 [**]
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	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]

									
	 Application Number
	  	Country	  	Filing Date	  	Patent Number	  	Issue Date
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
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	 [**]
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	 [**]
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	 Application Number
	  	Country	  	Filing Date	  	Patent Number	  	Issue Date
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]
	 [**]
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	 [**]
	  	[**]	  	[**]	  	[**]	  	[**]

 SCHEDULE 1.31 

Existing Genentech Patents 
  

			
	U.S. Patent Number	  	Title
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]
	 [**]
	  	[**]

 SCHEDULE 3.2 

Lead Product Criteria 
  

	1.	Demonstration of [**]; or 

  

	2.	Demonstration of [**]. 

  
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 SCHEDULE 4.2 

Calculation of Operating Profits (Losses) 
 The Co-Development Plan for a Collaboration Product shall reflect sharing by the Parties of Operating Profits (Losses) with respect to such Collaboration Product in accordance with the Cost Sharing Ratio
for such Collaboration Product. 
 The “Operating Profits (Losses)” for each Collaboration Product will be equal to: (i) Net
Sales of such Collaboration Product and Sublicensing Revenues (as defined below), less (ii) Allowable Expenses (as defined below), as more fully described below. All calculations hereunder will be made using, and all defined and undefined terms
will be construed in accordance with, U.S. generally accepted accounting principles, consistently applied, and consistent with generally accepted costing methods (including appropriate Allocable Overhead) for similar products in the pharmaceutical
industry. Without limiting the foregoing, no cost item will be included more than once in calculating Operating Profits (Losses). In addition, neither Party will be entitled to include in Operating Profits (Losses) any expense incurred by or on
behalf of such Party that was in excess of the most recently approved Co-Development Budget, unless such excess amounts were pre-approved or are approved in writing by both Parties. 
 Frequency of Reporting. 
 The fiscal year will be a calendar year. Reporting
by each Party for revenues and expenses will be performed as follows: 
  

							
	 Reporting Event
	  	 Frequency
	  	 Timing of Submission

				
	 Actuals (including draft settlement statements)
	  	Quarterly	  	Q1-Q3:	  	+45 days
		  		  	Q4:	  	+45 days
				
	 Forecasts (rest of year - by month)
	  	Quarterly	  	Q1-Q3	  	+60 days
				
	 Settlement payments between the Parties
	  	Quarterly	  	Quarter end	  	+60 days
				
	 Preliminary budgets (one year)
	  	Annually	  	September 15	  	
				
	 Final combined commercial and development budget (one year - by quarter)
	  	Annually	  	October 15	  	
				
	 Long Range Plan (current year plus 5 years)
	  	Annually	  	April 15	  	

  
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 Reports of actual results compared to budget will be made by the Parties to the CSC on a
quarterly basis. Variances from the total overall budgets, and significant variances in budget line items for costs or revenue line items, will be included in the calculation of Operating Profits and Losses only when approved by the CSC. 

Genentech will be responsible for the preparation of consolidated reporting of the Collaboration (including Development Costs and any
Operating Profit or Loss), calculation of the sharing and initial determination of the cash settlement (subject to approval by the CSC). Within forty-five (45) days of each quarter end, Genentech will provide the financial representatives from
each Party with a statement showing the consolidated results and calculations of the Operating Profit or Loss sharing (or calculation of expenses to be shared) and cash settlement required in a format substantially as depicted above. 

Genentech shall record sales in the United States. On a monthly basis, Genentech will supply Curis with each month’s gross sales and
Net Sales of Collaboration Products in units and U.S. dollars in the United States. Each such report shall be provided as early as possible, but no later than ten (10) days after the last day of the month in question, and shall provide monthly
and year-to-date cumulative figures. 
 The financial representatives from the Parties will meet as appropriate but at least
quarterly to review and approve the following: 
  

	 	•	 	 Development Costs 

  

	 	•	 	 Costs of Products Sold 

  

	 	•	 	 Selling and Marketing expenses 

  

	 	•	 	 actual results 

  

	 	•	 	 forecasts 

  

	 	•	 	 budgets 

  

	 	•	 	 inventory levels 

  

	 	•	 	 sales returns and allowances 

  

	 	•	 	 other financial matters, including each Party’s methodologies for charging costs to the collaboration, for determination of actuals, forecasts,
budgets and long range plans and the results of applying such methodologies. 

 Co-Development Budgets. 

Co-Development Budgets will be prepared annually by the Parties. 
 Co-Development Budgets under this Schedule 4.2 will be supplemented with detailed plans for U.S. clinical trials and drug approval applications as determined by the Parties in
accordance with the Agreement. Co-Development Budgets, once approved by the CSC, can only be changed with the approval of the CSC. 

  
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 The financial representatives of each Party will be responsible for identifying,
analyzing and reporting all significant line item budget variances and all overall, total budget variances. Except as provided otherwise in the Agreement, only the CSC may approve materially unfavorable line item budget variations, and all total
budget variations, chargeable to the collaboration during the course of the year. 
 Payments between the Parties. 

Payments to each Party of the agreed upon percentages of Operating Profit or Loss as provided under the applicable Cost Sharing Ratio will
be made quarterly, based on actual results within sixty (60) days after the end of each quarter. A report, as approved by the CSC, specifying how each payment was calculated shall also be submitted with each payment to both Parties. Balancing
payments by one Party to reimburse the other Party for purposes of the sharing of Operating Loss, including Development Costs, under the Agreement will be approved by the CSC and shall be made within sixty (60) days of receipt of the approved
CSC report. In the event any payment is made after the time period specified herein, the paying Party shall increase the amount otherwise due and payable by adding interest thereon, computed at the Prime Rate plus two percent (2%). Genentech will
perform the consolidation and settlement calculations for submission to the CSC. 
 Responsibility for Reporting. 

The responsibility for the consolidated reporting of the collaboration to the CSC shall be with Genentech in close cooperation with Curis and the
financial representatives of the Parties. This will be the basis for collaboration accounting and determining of payments to the Parties. Genentech shall provide Curis with a copy of the collaboration consolidated reporting and the calculation
serving as the basis of determining payments to the Parties. Curis will provide Genentech with financial statements within thirty (30) days after the end of the quarter for its activities in the United States, prepared in accordance with the
terms contained in this Schedule 4.2 in order for Genentech to prepare the consolidated reports. 
 Each Party will keep and
maintain complete and accurate records pertaining to Net Sales of Collaboration Products, Sublicensing Revenues and Allowable Expenses in sufficient detail to permit the other Party to confirm the accuracy of the Operating Profits (Losses) subject
to sharing by the Parties hereunder. Such records shall be retained for at least three (3) years, and no fiscal year may be audited more than once. Each Party shall have the right, upon reasonable prior written notice to the other Party and no
more than once per calendar year, to have an independent certified public accountant reasonably acceptable to the other Party inspect the books and records of the other Party, its Affiliates and sublicensees, during usual business hours for the sole
purpose of verifying the accuracy of the Net Sales of Collaboration Products, Sublicensing Revenues and Allowable Expenses reported by the audited Party hereunder. Such examination with respect to any fiscal year shall not take place later than
three (3) years following the end of such fiscal year. The accountant shall inform the auditing Party only if there has been an inaccuracy in such reporting, and if so, the amount thereof and whether the

  
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books and records have been kept in a manner consistent with good accounting practices. The expense of any such inspection shall be borne by the auditing Party; provided, however, that, if
the inspection discloses an underreporting of Net Sales or Sublicensing Revenues, or an overreporting of Allowable Expenses, in each case that is in excess of five percent (5%) of Operating Profits (Losses) (in aggregate over no less than a
twelve (12) month period), then the audited Party shall pay the out-of-pocket costs of such audit. The Parties will make prompt adjustments to reflect the results of such audit. 

1. “Allocable Overhead” shall mean the costs incurred by a Party or for its account which are attributable to a
Party’s supervisory services, occupancy costs, payroll and its payroll, information systems, human relations or purchasing functions and which are allocated to company departments based on space occupied or headcount or other activity-based
method consistently applied by a Party, or a standard rate if agreed to by the Parties. Allocable Overhead shall not include any costs attributable to general corporate activities, including, by way of example, executive management, investor
relations, business development, legal affairs and finance, and shall not duplicate General & Administrative Expenses hereunder. 
 2. “Allowable Expenses” shall mean the following expenses to the extent incurred with respect to such Collaboration Product: (i) Development Costs; (ii) Cost of Products Sold;
(iii) Selling and Marketing Expenses; and (iv) General & Administrative Costs. 
 3. “Cost of
Goods” shall mean, with respect to any bulk Collaboration Product or finished Collaboration Product, but subject to the last sentence of this paragraph 2, the actual fully allocated cost of manufacturing such Collaboration Product (in
accordance with cGMP’s) determined in accordance with U.S. generally accepted accounting principles applied consistently throughout the organization of a Party or its Affiliate(s) or sublicensee(s) determining such costs, which includes the
direct and indirect cost of any raw materials, packaging materials and labor (including benefits) utilized in such manufacturing (including formulation, filling, finishing, quality assurance, quality control and stability testing, labeling and
packaging, as applicable), plus an appropriate share of all factory overhead, both fixed and variable, allocated to the Collaboration Product being manufactured, in accordance with the normal accounting practices for all other products manufactured
in the applicable facility. “Cost of Goods” shall exclude any allocation of cost related to idle capacity, unless such excess capacity is specifically reserved for Collaboration Product. 

4. “Cost of Products Sold” shall mean the actual cost of bulk Collaboration Products or finished Collaboration Products
sold, determined in accordance with U.S. generally accepted accounting principles applied consistently within and throughout all operating units of a Party. “Cost of Products Sold” shall include: (i) in the case of manufacturing
services provided by a Party or its Affiliate(s) or sublicensee(s), its Cost of Goods of such bulk Collaboration Products or finished Collaboration Products, (ii) the net cost or credit of any value-added taxes actually paid or utilized by a
Party or its Affiliate(s) or sublicensee(s) in respect of the manufacture of the bulk Collaboration Products or finished Collaboration Products, (iii) in the 

  
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case of finished Collaboration Products or bulk Collaboration Products acquired by a Party or its Affiliate(s) or sublicensee(s) from a Third Party, payments made to such Third Party for such
acquisition, including the net cost or credit of any value-added taxes actually paid or utilized by the purchaser in respect of such acquisition of such finished products or bulk products, plus reasonable expenses of quality assurance, quality
control and transportation of Collaboration Product, and (iv) royalties or other compensation payable to a Third Party with respect to a license under Patents of such Third Party necessary for the manufacture, use, sale, offer for sale or
import of Collaboration Products (other than royalties due under the Existing License Agreements). 
 5. “Development
Costs” means costs (including Allocable Overhead directly attributable to the development of such Collaboration Product but excluding other overhead) actually incurred by a Party or for its account after designation of such Collaboration
Product and specifically attributable to the development of such Collaboration Product in the Co-Development Territory for use in the BCC Field or Hair Growth Prevention Field, as applicable,. Development Costs will include, but not be limited to:
(a) costs of research and development, including costs of studies on the toxicological, pharmacokinetic, metabolic or clinical aspects of such Collaboration Product conducted internally or by individual investigators or consultants;
(b) Cost of Goods for Collaboration Product for use in clinical trials in the BCC Field or Hair Growth Prevention Field, as applicable, in the Co-Development Territory; (c) costs of preparing and reviewing data or information for the
purpose of submission to the FDA for Regulatory Approval in the BCC Field or Hair Growth Prevention Field, as applicable; (d) fees associated with U.S. regulatory filings or other U.S. governmental requirements related to the Collaboration
Product in the BCC Field or Hair Growth Prevention Field, as applicable; and (e) applicable Allocable Overhead, including expenses for data management, statistical designs and studies, document preparation, and other administration expenses
associated with clinical testing programs. 
 6. “Selling and Marketing Expenses” shall mean the costs incurred
by Genentech or for its account attributable to the sale, promotion and marketing of Collaboration Product in the Co-Development Territory from and after commercial launch of such Collaboration Product in the Co-Development Territory and shall
consist of Selling Expenses, Marketing Management Expenses, Market and Consumer Research Expenses, Advertising Expenses, Professional Promotion Expenses, Education Expenses, Trademark Expenses, each as defined below; provided, however, that
to the extent the activities giving rise to any item of Selling and Marketing Expenses relate to, or are conducted for the benefit of, multiple products and/or services and one or more of such products and/or services are not Collaboration Products,
then such item of expense shall be allocated on a pro rata basis among such Collaboration Product(s) and other product(s) and/or service(s) based upon net sales of each respective product or service by such operating unit during the most
recent quarter: 
  

	 	a)	 “Selling Expenses” shall include the following costs directly associated with the efforts of field sales representatives with
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sales force (including training expenses directly related to the Collaboration Product); field sales offices; reimbursement (public payors, private payors and others); customer support; home
offices; staffs directly involved in the management of and the performance of the selling functions; and payments to Third Parties under contract sales and marketing agreements. The costs of detailing sales calls will be allocated on a weighted
average basis based on the proportionate time and effort given to the detailing of Collaboration Products versus product other than a Collaboration Product at an accounting charge rate consistently applied within and across Genentech’s, its
Affiliate’s or a Third Party’s operating units and which is no less favorable than the internal charge rate used by Genentech or such Affiliate or Third Party for its own internal cost accounting purposes for products other than a
Collaboration Product (excluding internal profit margins and markups). 

  

	 	b)	“Marketing Management Expenses” shall include product management and sales promotion management compensation and departmental expenses.
This will include, but not be limited to, costs associated with developing overall sales and marketing strategies (e.g., product line or customer segment), including marketing strategies for managed care providers, as well as
planning and programs for Collaboration Products.  

  

	 	c)	“Market and Consumer Research Expenses” shall include compensation and departmental expenses for market and consumer research personnel
and payments to Third Parties related to conducting and monitoring professional and consumer appraisals of existing, new or proposed Collaboration Products, such as market share services (e.g., IMS data), special research
testing and focus groups. 

  

	 	d)	“Advertising Expenses” shall include all media costs associated with Collaboration Product advertising as follows (whether to
professionals, patients or lay consumers): production expense/artwork including set up; design and art work for an advertisement; the cost of securing print space, air time, etc. in newspapers, magazines, trade journals, television, radio,
billboards, web sites, etc. 

  

	 	e)	“Professional Promotion Expenses” shall include the expenses associated with programs to promote a Collaboration Product directly to the
prescriber or end user. This category will include, but not be limited to, expenses associated with promoting Collaboration Products directly to the professional community such as professional samples, professional literature, promotional material
costs, patient aids and detailing aids.  

  

	 	f)	“Education Expenses” shall include expenses associated with professional education with respect to a Collaboration Product through any means not
covered above, including, but not limited to, articles appearing in journals, newspapers, magazines or other media; seminars, scientific exhibits, trade show booths, financial support to professional societies and conventions; and symposia, advisory
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	 	g)	“Trademark Expenses” shall mean the fees and expenses paid to outside legal counsel and experts, and filing and maintenance expenses,
incurred to establish and maintain trademarks for a Collaboration Product (other than any trademark incorporating or based on a Party’s corporate name or logo). 

 

	 	h)	“Distribution Expenses” shall mean the costs, including applicable Allocable Overhead, specifically identifiable to the distribution of a
Collaboration Product, including customer services, collection of data about sales to hospitals and other end users, order entry, billing, credit and collection and other such activities.  

7. “General & Administrative Expenses” shall mean an amount intended to cover a Party’s general and
administrative costs chargeable to the Collaboration, which shall be an amount equal to [**] percent ([**]%) of the sum of Development Costs, Cost of Products Sold, and Selling and Marketing Expenses. 

8. “Sublicensing Revenues” shall mean all license fees, milestone payments, royalties, annual maintenance fee or similar
payment or consideration paid by a sublicensee to Genentech or its Affiliates solely in consideration for the grant by Genentech or its Affiliates of a sublicense to develop, manufacture and/or commercialize any Collaboration Product (with any of
the foregoing consideration received by Genentech or its Affiliates other than in the form of cash to be valued at its fair market value as of the date of receipt); provided, however, that “Sublicensing Revenues” shall in any event
exclude payments for equity or debt securities of Genentech or its Affiliates (at its fair market value upon date of receipt) and reasonable payments tied to the provision of goods and/or services by Genentech or its Affiliates to a sublicensee to
compensate Genentech or its Affiliates for the provision of such goods and/or services. 

  
 -viii-Directed Employee Benefit Trust Agreement

 Exhibit 10.298 
  

			
	 Directed Employee Benefit Trust Agreement
	  	

 This TRUST AGREEMENT (the “Agreement”) is entered into by and between the company
identified on the Execution Page (the “Company”) and THE CHARLES SCHWAB TRUST COMPANY (the “Trustee”). The Agreement relates to the trust portion of the retirement plan (the “Plan”) and trust identified on the Execution
Page which has been established by the Company for the benefit of its employees and to the account established by the Trustee under this Agreement to hold the account assets transferred by the Company to the Trustee (the “Account”), if
any. This Agreement is effective on the date it is accepted by the Trustee. 
 PURPOSE OF TRUST FUND 

The Company adopted the Plan for the exclusive purpose of providing benefits to certain of its employees and their beneficiaries and defraying
reasonable expenses of administering the Plan. The Plan provides that, from time to time, cash and other assets may be paid to the Trustee by the Company to be held and administered as a trust for the uses and purposes of the Plan. The Company
intends that the Plan will qualify under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and that the Trust will constitute a part of the Plan, as a tax-exempt entity within the meaning of Code
Section 501(a). 
 The Company and the Trustee enter into this Agreement whereby the Company appoints Trustee as the trustee of the
cash, marketable securities, and other property acceptable to the Trustee (as described in Article 2.5) which may be contributed by Company from time to time to the Trust Fund. The Trustee will have no duties or responsibilities with respect to any
property other than cash, marketable securities, and other property accepted by the Trustee. The Charles Schwab Trust Company agrees to act as the Trustee of the Trust according to the terms and conditions of this Agreement. 

The parties agree that the Trustee will (i) establish an account to hold the trust assets transferred by the Company to the Trustee hereunder
(the “Trust Fund” or “Trust”), (ii) provide safekeeping and custody of and administer trust assets held in such Trust Fund, and (iii) perform the functions and duties assigned to it under this Agreement subject to the
Company’s directions. The Trustee will act only at the direction of the Company or a party authorized to act on the Company’s behalf. The Trustee has no authority to take any discretionary action and does not exercise discretionary
authority or control with respect to Plan assets. The Company warrants and represents that all directions provided to the Trustee will be in conformity with the terms of the applicable Plan and related documents governing the establishment and
operation of the Trust Fund, including, this Agreement (“collectively, the “Plan Documents”), and acknowledges and agrees that the Trustee shall have no liability or responsibility in this regard. 

The Company warrants and represents that the transfer of custody of the Trust Fund to the Trustee hereunder and the maintenance of custody by
Trustee is authorized by the Plan Documents. Furthermore, the Company warrants and represents that any such Plan Documents are in full force and effect and have not been revoked, modified or amended in any way that would cause the representations
made in this Agreement to be inaccurate or incorrect. The Company confirms that it is authorized to enter into this Agreement and to carry out all of its duties as described in this Agreement. 

The Trustee is subject to the Company’s directions given in accordance with this Agreement. The Company’s directions may be given by
(i) resolution of the Company, (ii) one or more individuals designated by the Company to act on the Company’s behalf, or (iii) any other person authorized in writing by the Company or such designated individual(s). The Company
will notify the Trustee of the identity of any person(s) authorized to act on its behalf from time to time and will timely notify the Trustee of any person who ceases to be authorized to act and any person who becomes authorized to act. The Trustee
will be entitled to rely in good faith on directions received from such authorized person(s) until notified by the Company to the contrary, and the Company acknowledges and agrees that the Trustee shall have no liability or responsibility in this
regard. 

  

  
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 ARTICLE 1 
 CONTRIBUTIONS AND DISTRIBUTIONS 
 1.1 Plan Administrator Directions. The Company will be
the Plan Administrator. The Company, by action of its governing body (the Board of Directors for a corporation, the partnership for a partnership, collectively the “Governing Body”) will have the right to appoint and empower any other
person(s) or entity to serve as Plan Administrator, or to serve on the Plan administrative committee (collectively the “Administrator”) on its behalf. The Company appointing the Administrator will inform the Trustee of the appointment by
providing it with a copy of the appropriate resolution from the Company’s Governing Body. The Company will notify Trustee of the name(s) of the Administrator as of the date of this Agreement and will inform Trustee of any subsequent change. In
the absence of such notification, the Company will be the Administrator. The Administrator will be the Plan’s named fiduciary unless the Company designates other persons who are authorized to act as or on behalf of the Plan as named fiduciary
and so informs the Trustee in writing. 
 The Administrator may delegate to any other person or persons any of the Administrator’s
rights, powers or responsibilities with respect to the operation and administration of the Trust Fund. The Company or the Administrator will identify in a written notice to the Trustee the identity of the person(s) authorized to give directions to
the Trustee on behalf of the Administrator. Such notice will contain specimens of the authorized signatures and will indicate the number of authorized persons required to effect Trustee action. The Trustee will be entitled to rely upon such written
notice as evidence of the identity and authority of the persons appointed. Unless otherwise set forth in this Agreement, for purposes of this Agreement, any reference to the Administrator will include the delegates of the Administrator. 

The Company will provide the Trustee with copies of all Plan or other documents required by the Trustee at or before the time this Agreement is
executed by the Company and will provide the Trustee all other documents amending or supplementing the Plan promptly upon their adoption. The Company or the Plan Administrator, as applicable, will provide the Trustee with copies of all agreements
with all agents, including any investment managers, appointed by the Company (each an “Investment Manager”) or the Plan Administrator and all other documents amending or supplementing such agreements. 

Directions from the Administrator to the Trustee will be in writing and signed by the Administrator or persons authorized by the Administrator or
may be made by any other method acceptable to the Trustee, including direction by facsimile transmission, electronically, including e-mail, the Internet, intranet systems and automated telephonic response systems to the extent permitted by law, the
terms of the Plan as communicated by the Administrator to the Trustee (upon which communication the Trustee shall entitled to rely, without duty or inquiry or investigation), the Trustee and the terms of this Agreement, under procedures agreed to by
the Trustee and the Administrator. 
 1.2 Contributions. The Company will deliver contributions or transfers required by the Trust
Agreement to the Trustee for inclusion in the Trust Fund. All contributions or transfers will be received by the Trustee in cash or in other property acceptable to the Trustee (as described in Article 2.5). The Trust Fund will consist of the
contributions and transfers received by the Trustee, together with the income on and increment in such assets. The Trustee will manage and administer the Trust Fund without distinction between principal and income. 

The Trustee has no responsibility to (i) monitor or enforce contributions required or permitted by the Plan Documents, (ii) compute the
required amount of such contributions, (iii) determine whether the Trust Fund is sufficient to provide benefits described in the Plan Documents, or (iv) determine whether contributions actually made comply with the Plan Documents, the
governing Plan documents, or, for any Account established on behalf of a Trust Fund subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) (an “ERISA Account”), the Internal Revenue Code of 1986, as amended (the
“Code”) or the regulations promulgated thereunder. Contributions normally will be made by wire transfer of cash or by check, or in the form of property acceptable to the Trustee. 

  
  

 

  
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 1.3 Rollover Contributions. At the written direction of the Administrator, the Trustee will
accept a rollover contribution to the Trust Fund on behalf of an employee eligible to make such a contribution. Such contributions will consist of cash or other property otherwise accepted by the Trustee. The Administrator will be solely responsible
for determining: 
 (a)     Where applicable, that such contributions constitute eligible rollover
contributions within the meaning of Code Section 402(c)(4) or 408(d)(3); 
 (b)     Whether the
employee making the contribution is eligible to do so because he or she is either a participant or an eligible employee who is about to become a participant; and 

(c)     Where applicable, that the contribution was distributed from an employee benefit plan qualified under
Code Section 401(a), a Code Section 403(b) plan, a governmental deferred compensation plan under Code Section 457, from an individual retirement account or annuity described in Code Section 408, or from any other plan from which
it is appropriate to accept rollover contributions. 
 The Trustee will accept such contributions from the Administrator or, at the
direction of the Administrator, in a trustee-to-trustee transfer directly from the trustee of the employee benefit Plan from which the distribution is made. 
 1.4 Collection of Income and Principal. The Trustee will collect the income when paid on Trust Assets and principal of Trust Assets when paid on maturity, redemption, sale or otherwise and invest it in
accordance with Articles 2 and 3. The Trustee will make reasonable efforts to diligently collect income and principal of which the Trustee has received actual notice in accordance with normal industry practices. The Trustee will be under no duty to
take any action to effect collection of any amounts with respect to which payment is in default, or if payment is refused after due demand. The Trustee will notify the Company or the investment manager appointed in accordance with Article 2.4 (an
“Investment Manager”) of any default or refusal to pay. 
 1.5 Payments and Distributions. At the written direction of
the Administrator, the Trustee will from time to time make distributions or transfers from the Trust as specified in such written directions, including distributions for the payment of reasonable Plan expenses. The Trustee will have no liability for
making any distribution or transfer directed by the Administrator and will be under no duty to inquire whether directions from the Administrator conform to Plan provisions, the Code, ERISA or regulations promulgated thereunder. 

The Administrator will furnish to the Trustee all information necessary to enable the Trustee to withhold from each distribution the amount
necessary to pay Federal and state income taxes due. If the Administrator fails to provide adequate tax withholding information, the Trustee will have no obligation to withhold any amount to cover the payment of such taxes. However, the Trustee may,
in its sole discretion, and to the extent required under applicable law, withhold from any distribution to any payee such sum as the Trustee may reasonably estimate is necessary to cover required Federal and state taxes which are, or may be,
assessed with regard to the amount distributable to such payee. Upon the discharge or settlement of such tax liability the Trustee will pay the balance of such sum, if any, to such payee. 

If the Administrator directs that any payment or payments be made or discontinued contingent upon future events, it will be the responsibility of
the Administrator to notify the Trustee in writing that such event has occurred, that such payments should be made or discontinued, and that any payments made by the Trustee prior to the date of such notification will, as to the Trustee, be proper
payments. 
 Payments by the Trustee will be delivered or mailed to addresses supplied by the Administrator, or if the Administrator does
not provide an address, to the recipient in care of the Administrator. The Trustee’s obligation to make such payments will be satisfied upon such delivery or mailing. The Trustee will have no obligation to determine the identity of persons
entitled to benefits or their mailing addresses. 

  
  

 

  
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 If the payment made to a participant or beneficiary is returned to the Trustee, or if the payment is
not perfected within such time limits as the Trustee in its sole discretion may determine from time to time, the Trustee will inform the Administrator or its authorized agent acting on its behalf. It will be the responsibility of the Administrator
or such authorized agent acting on its behalf to instruct the Trustee on the proper disposition of the payment under the terms of the Plan, and the Trustee will have no obligation to take any further action with respect to such payment absent such
instructions. 
 1.6 Participant Loans and Qualified Domestic Relations Orders. If the Plan authorizes loans to Plan participants,
the Trustee will issue such loans from the Trust at the direction of the Administrator. The Administrator will issue directions to Trustee in accordance with the terms of the loan policy drafted by the Administrator. The Plan’s loan policy is
contained in a separate agreement established under the terms of the Plan. Likewise, Trustee will make payments pursuant to domestic relations orders only at the direction of the Administrator. Administrator will be responsible for establishing
written procedures to evaluate and administer the payment of benefits under domestic relations orders as required under the Code and ERISA. 
 The following provisions apply with respect to any participant loans (“Loans”) made from the Plan and domestic relations orders (“DROs”) received by the Plan. 

(a)     Loans will be made pursuant to a request furnished to the Trustee by the Administrator. 

(b)     The Trustee will have no responsibility for reviewing any documentation concerning Loans, including
without limitation the loan policy, any promissory notes, federal truth-in-lending disclosure forms and spousal consent forms (collectively “Loan Documents”) for compliance with applicable state and Federal laws. The Trustee will have no
responsibility for holding any Loan Documents. Administrator will be solely responsible for reviewing and maintaining all Loan Documents. 
 (c)     The Administrator will perform all accounting required for all Loans, including the establishment thereof and all renewals and payments thereon. The Administrator will promptly transmit
any payments on Loans to the Trustee and will transmit to the Trustee such information as is necessary for the Trustee to properly account for all such payments. In the event of the failure of a participant to make any timely repayment on a Loan,
the Administrator will instruct the Trustee with respect to all matters surrounding such failure, including without limitation whether to declare the loan in default and whether to treat the loan as a deemed distribution for purposes of tax
reporting. The Trustee will not have any responsibility to declare a Loan in default absent any instructions to do so from the Administrator. 
 (d)     The Trustee will establish a single master loan record on its books and records to represent the Plan’s Loans. The Trustee will process disbursements, renewals and payments on its
books and records on an aggregate (not a per participant) basis against this master loan record. 

(e)     The Administrator will be solely responsible for determining whether any Domestic Relations Orders
(DRO) received by the Plan constitutes a “qualified domestic relations order” within the meaning of Code Section 414(p) (“QDRO”). The Trustee will not have any responsibility to make such determination. 

(f)     When the Trustee receives a direction from the Administrator to make any payment to an alternate
beneficiary under a DRO, the Trustee will be entitled to treat such direction as having been made following a determination by the Administrator (pursuant to its written procedures) that the DRO constitutes a QDRO. 

(g)     The Trustee will have no administrative obligations with regard to Loans or DROs other than as
specifically provided herein. 
 1.7 Trustee’s Reliance on Administrator’s Directions. The Trustee may rely upon
directions from the Administrator in making payments from the Trust Fund, including payments pursuant to a domestic relations order determined by the Administrator to be qualified within the meaning of Code Section

  
  

 

  
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414(p), or payments made to satisfy taxes due. The Trustee will have no liability for payments made, or for failure to make payments, or for discontinuing payments, on the direction of the
Administrator. The Trustee will have no liability for failure to make payments from the Trust in the absence of proper written directions from the Administrator. 
 The Trustee may request instructions from the Administrator and will have no duty to act or liability for failure to act if such instructions are not forthcoming from the Administrator. If requested instructions
are not received within a reasonable time, the Trustee may, but is under no duty to act in its own discretion to carry out the provisions of this Agreement. 
 1.8 Disputed Payments. If any controversy or disagreement arises regarding any payment from the Trust Fund or the person(s) to whom payment or delivery of any asset should be made by the Trustee, the Trustee
may retain the assets involved without liability pending settlement of the controversy or disagreement and/or require that such controversy or disagreement be adjudicated pursuant to arbitration as provided in Article 9.5. The Trustee will not be
liable for the payment of any interest or income on such assets that it retains pursuant to the instruction of an arbitrator. The Trustee may consult its legal counsel or legal counsel of the Company and will be protected to the extent permitted by
law in acting upon advice of counsel. 
 ARTICLE 2 
 FIDUCIARY RESPONSIBILITY AND INDEMNIFICATION 
 2.1 Administrator Direction of Investments.
Except as provided in Articles 2.3 and 2.4 below, the Administrator will have complete authority over and responsibility for the management, disposition, and investment of Trust assets. The Trustee will comply with proper written directions of
the Administrator concerning those assets. The Administrator will not issue any direction to the Trustee that would violate the terms of the Plan and Trust, or be prohibited by the provisions of ERISA, the Internal Revenue Code, and/or any other
applicable law, rules and regulations, including but not limited to the provisions of Section 404 and 406(b) of ERISA and the regulations promulgated thereunder and will provide the Trustee with supportive documentation to such effect upon
reasonable request. Except as required by ERISA or otherwise provided in this Agreement the Trustee will have no duty or responsibility to review, initiate action, or make recommendations regarding Trust assets and will retain assets until directed
in writing by the Administrator to dispose of them. 
 2.2 Funding Policy. Except to the extent that the Administrator:
(i) determines that its authority and responsibility is limited by Section 404(c) of ERISA or (ii) has properly delegated its authority and responsibility to a third party, the Administrator will be responsible for establishing and
carrying out a funding policy and method for the Plan, as specified in Section 402(b)(1) of ERISA, consistent with the objectives of the Plan and the requirements of ERISA and taking into consideration the Plan’s short-term and long-term
financial needs. The Administrator acknowledges and agrees that it shall be its responsibility and liability, and not that of the Trustee, to determine whether or not it is responsible for establishing and carrying out a funding policy and method in
light of the application of (i) or (ii) above. 
 The Trustee will not be responsible for establishing the Plan’s funding
policy or for ensuring adherence to the policy, nor will the Trustee be responsible for the proper diversification of the Trust Fund. Except to the extent that the Administrator: (i) determines that its authority and responsibility is limited
by Section 404(c) of ERISA or (ii) has properly delegated its authority and responsibility to a third party, the Administrator will be responsible for the Plan’s funding policy, for the diversification of Trust Fund assets, and for
the Trust Fund’s compliance with statutory limitations on the amount of investment in securities or other property of the Company, or its affiliated companies. 
 2.3 Participant Direction of Investments. If permissible under the Plan, each participant and/or beneficiary may have investment power over the account maintained for him or her, and may direct the
investment and reinvestment of assets of the account among the options authorized by the Administrator. Such direction shall be furnished to the Trustee in writing under procedures agreed to by the Trustee and the Administrator. To the extent
provided under ERISA section 404(c), the Trustee shall not be liable for 

  
  

 

  
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any loss, or by reason of any breach, which results from such participant’s or beneficiary’s exercise of control. If a participant who has investment authority under the terms of the
Plan fails to provide such directions, the Administrator shall direct the investment of the participant’s accounts. The Administrator shall maintain records showing the interest of each participant and/or beneficiary in the Trust Fund unless
the Trustee enters into an agreement with the Company to keep separate accounts for each such participant and/or beneficiary. The Trustee shall have no duty or responsibility to review or make recommendations regarding investments made at the
direction of the Administrator or participant and shall be required to act only upon receipt of proper written directions. A participant or beneficiary shall not have authority to direct the investment of assets in his or her account in a loan to
any participant, including himself or herself, or “collectibles” within the meaning of Code section 408(m)(2). 
 For Plans that permit a participant to direct the investment of his or her account assets, the Trustee will, upon written instructions from the Administrator, establish on behalf of a participant or beneficiary a
Schwab Personal Choice Retirement AccountTM (“PCRA Account”) at Charles Schwab & Co., Inc. (the
“Broker/Dealer”). Such Account will be used to segregate the non-core assets representing the value of an individual participant’s or beneficiary’s account(s) under the Plan. The participant or beneficiary will be allowed to
manage the investment of the assets in his or her PCRA Account and will be solely responsible for any loss resulting from his or her exercise of control over the assets segregated into his or her PCRA Account. 

2.4 Investment Manager Direction of Investments. The Administrator may appoint one or more investment managers within the meaning of
Section 3(38) of ERISA (each, an “Investment Manager”) to direct, control or manage the investment of all or a portion of the Trust assets, as provided in Sections 3(38) and 403(a)(2) of ERISA, such assets to be held either in an
account directly held by the Trustee or in a managed account portfolio established by the Trustee, at the direction of the Administrator, and held by a sub-custodian or broker-dealer (each, a “Sub-Custodian”) appointed by the Trustee in
its sole discretion. The Administrator may remove an Investment Manager and may appoint a replacement Investment Manager. The Administrator will promptly notify the Trustee in writing of the appointment or removal of each Investment Manager and/or
of the establishment of a managed account portfolio. The Trustee acknowledges that it will have responsibility for notifying any applicable Sub-Custodian of the revocation of the investment responsibility held by an Investment Manager, the
appointment of a successor Investment Manager, and/or the termination of a managed account portfolio. Any notification from the Administrator confirming the appointment of an Investment Manager or the establishment of a managed account portfolio to
be held by a Sub-Custodian will include a designation of those assets and/or managed account portfolios over which the Investment Manager will exercise control. 
 The Administrator will cause the Investment Manager to acknowledge to the Trustee in writing that the Investment Manager is registered as an investment advisor under the Investment Advisors Act of 1940 with respect
to the performance of its duties in connection with the Plan and is an investment manager as that term is defined by the Section 3(38) of ERISA and, as such, is a fiduciary with respect to the Plan. If the foregoing conditions are met, the
Investment Manager will have the power to manage, acquire, or dispose of any Trust assets, or any account portfolio holding any Trust assets, designated as subject to such Investment Manager’s control. The Trustee will not be liable for acts or
omissions of the Investment Manager, or be under any obligation to invest or otherwise manage any asset of the Trust, or any account portfolio holding any asset of the Trust, that is subject to the management of such Investment Manager. 

The Trustee and/or any Sub-Custodian will act only upon receipt of proper written directions from the duly appointed Investment Manager or by any
other method acceptable to the Trustee. The Trustee will have no liability to review or question any such directions. 

The Company acknowledges and agrees that the establishment of a managed account portfolio to be held by a Sub-Custodian
appointed by the Trustee as described herein is subject to additional fees as set forth in Article 6.2, SchwabPlan®
Services Agreement (by and between Charles Schwab & Co., Inc. and Schwab Retirement Plan Services, Inc., effective October 1, 1998, as amended from time to time) and the applicable fee schedules defined therein. 

  
  

 

  
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 2.5 Acceptable Investments. Depending on the Trustee’s ability to support and administer
the asset, the Trustee’s powers and duties over the asset, the type of account, the business risk, and other factors, the Trustee will accept (which acceptance shall not be unreasonably withheld) assets for acquisition or holding in the Trust,
including in a participant’s PCRA Account as described under Article 2.3. The Administrator directing such investments (the “Directing Party”) shall be solely responsible for determining whether the investment is appropriate, prudent
and permissible under ERISA, the Internal Revenue Code, and any other applicable law, rules, and regulations, whether the investment is permissible under the terms of the Plan Documents, the economic viability of the underwriter, and diversification
of Trust Fund assets. The Trustee does not (i) exercise investment management powers over the Trust Fund, or (ii) determine whether a particular investment decision made by the Administrator fits the investment objectives of the Trust Fund
or is otherwise appropriate for the Trust Fund. 
 Subject to the foregoing subjective criteria, and to other policies and procedures that
may be issued by the Trustee from time to time, the following types of assets are ordinarily acceptable in the Trust Fund: 
 (a)     Cash 
 (b)     Publicly traded stock
listed on a U.S. stock exchange or regularly quoted over-the-counter 
 (c)     Publicly traded bonds
listed on a U.S. bond exchange or regularly quoted over-the-counter 
 (d)     Mutual funds available
through the Charles Schwab & Co., Inc. Mutual Fund Marketplace 
 (e)     Registered limited
partnership interests, REITs and similar investments listed on a U.S. stock exchange or regularly quoted over-the-counter 

(f)     Commercial paper, bankers acceptances eligible for rediscounting at the Federal Reserve, repurchase and
reverse repurchase agreements and other “money market” instruments for which trading and custodial facilities are readily available 
 (g)     U.S. Government and U.S. Government Agency issues 
 (h)
    Municipal securities whose bid and asked values are readily available 
 (i)
    Federally insured savings accounts, Certificates of Deposit and Bank Investment Contracts. The Directing Party is responsible for determining Federal insurance coverage and limits and for diversifying Trust Fund assets in
accordance with those limits. 
 (j)     American Depository Receipts, Eurobonds and similar
instruments listed on a U.S. exchange or regularly quoted domestically over-the-counter for which trading and custodial facilities are readily available. 
 (k)     Life insurance, annuities, and Guaranteed Investment Contracts issued by insurance companies licensed to do business in one or more states in the U.S. 

(l)     The securities of The Charles Schwab Corporation, its affiliates and subsidiaries. These securities may
be subject to legal and regulatory prohibitions or restrictions and are not permitted to be held in PCRA Accounts. 
 Notwithstanding the
above, the Company understands that in certain circumstances a particular investment may be determined by the Trustee to be unacceptable, even though it would be acceptable in other instances. 

Subject to the Trustee’s administrative capabilities and its sole determination of the business risk involved in holding the particular asset
in question, a direction to invest the Trust Fund (including a participant’s PCRA Account) in the following types of assets may be acceptable: 

  
  

 

  
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 (a)     Unregistered Limited Partnerships 

(b)     Other unregistered securities, closely held stock and other securities for which there is no readily
available market 
 (c)     Loans secured by First Deeds of Trust 

(d)     Other secured loans 

(e)     Foreign securities for which trading and custodial facilities are readily available. 

(f)     Covered put and call options (if held in self-directed brokerage accounts and authorized by the
Administrator) 
 Certain of the above types of assets are not publicly traded, and original and/or current cost basis and periodic
valuations may not be readily available. For such assets (each a “Non-Standard Asset”) accepted by the Trustee for acquisition or holding in the Trust Fund, including in a PCRA Account, the Company acknowledges and agrees: 

(a)     To consult with competent tax, accounting, and/or legal counsel with respect to the requirements
applicable to periodic valuations of such assets and to comply with such requirements, in particular as these impact the Company’s provision of directions to the Trustee with respect to such valuations. 

(b)     To provide the Trustee with directions with respect to the use of original and/or current cost basis
with respect to each Non-Standard Asset, whenever such direction is requested by the Trustee or its affiliate, including but not limited to the time of transfer of such assets to the Trust. 

(c)     To provide the Trustee with appropriate directions regarding the valuation of each Non-Standard asset
in accordance with Article 4.3 herein. 
 (d)     In the event that unrelated business taxable income
(“UBTI”) is generated with respect to any Non-Standard Asset, to provide full and accurate information with respect to such UBTI as is necessary for the reporting of such UBTI. Should any applicable UBTI information not be provided to the
Trustee, the Company acknowledges that the Trustee shall not have any responsibility or liability for, and shall not make any federal tax reports or filings that require, the reporting or inclusion of this information. 

(e)     To the extent that any legal documents required to effectuate the acquisition or holding of any
Non-Standard Asset requires execution by a third party, including but not limited to a participant or beneficiary, the Company agrees to provide such properly executed documents to the Trustee upon request within a reasonable timeframe prior to the
transaction. 
 The Company understands that the Trustee reserves the right to refuse to purchase or hold any
particular issue or asset described herein, including Non-Standard Assets. The Company acknowledges and agrees that the purchase and holding of any such assets may be subject to additional fees as set forth in the SchwabPlan® Services Agreement. In addition, notwithstanding any general indemnity given elsewhere, the Trustee reserves the right to seek
specific indemnity from the Company or other appropriate parties where the Trustee determines in its sole discretion that the acquisition or holding of a particular asset or class of asset involves unusual business risk. 

2.6 Unacceptable Investments. 
 The following assets are unacceptable in the Trust Fund: 
 (a)
    General partnerships or undivided interests in real property 

  
  

 

  
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 (b)     Tangible personal property (e.g., precious metals, gems,
works of art, stamps, coins, furniture and other household items, motor vehicles, etc.) 
 (c)
    Real estate 
 (d)     Foreign currency and bank accounts 

(e)     Short sales 
 (f)     Commodity futures and forward contracts 
 (g)
    Oil, gas and mineral interests 
 (h)     Intangible personal property (e.g.,
patents and rights) 
 (i)     Unsecured loans 

2.7 Limitation on Liability. The Trustee will not be liable in any way for any loss resulting from a cause over which it does not have
direct control and with respect to which it cannot make reasonable arrangements to mitigate, including, but not limited to, any failure of electronic or mechanical equipment or communication lines, telephone or other interconnect problems or
unauthorized access, strikes or other labor disputes, acts of God, fire, war or civil strife. 
 2.8 Indemnification. Trustee will
not be liable for any act or failure to act carried out in good faith reliance on any representation of the Administrator. Except in the event that the Trustee has breached its duties under this Agreement due to its negligence or willful misconduct,
the Company and to the extent permitted under ERISA, the Plan, will indemnify and hold harmless the Trust Fund, the Trustee, and its officers, employees, affiliates and agents from and against all liabilities, losses, expenses, and claims (including
reasonable attorney’s fees and costs of defense) arising out of: 
 (a)     Any action or
inaction by the Trustee in accordance with the written directions (or the absence of such directions) from the Company, the Administrator, the third party administrator (the Plan’s “Recordkeeper”), an Investment Manager, a
participant, beneficiary, or alternate payee under a QDRO pursuant to Article 1.6 and any person authorized to act on behalf of one or more of them (a “Directing Party”); 

(b)     Any action or inaction by the Trustee that results from the Trustee’s good faith reliance on the
action or inaction of a Directing Party, including any such action related to directions to invest Trust assets or otherwise deal with Plan assets; 
 (c)     With respect to a direction to invest in Non-Standard Assets: 
 (i)     The Trustee’s inability to invest, re-invest, liquidate or collect income received with respect to such Non-Standard Assets; 

(ii)     The Trustee’s use of any cost basis, unit or share, UBTI, and/or valuation
information provided to it in accordance with its acceptance of such Non-Standard Assets or the Company’s directions to the Trustee regarding such information, including, but not limited to: (1) use of a prior annual valuation amount where
a subsequent valuation amount has not yet been obtained or for which directions from the Company have not yet been provided to the Trustee; (2) the Company provision of an improper or incorrect valuation amount to the Trustee, (3) the
failure of the Company to provide a valuation direction to the Trustee; 

  
  

 

  
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 (iii)     The investment, reinvestment, reporting,
disclosure, liquidation and distribution under the Plan of and with respect to participant and beneficiary contributions and benefits based on such cost basis, unit or share, UBTI, and/or valuation information. 

(d)     The Trustee’s execution of it duties under this Agreement in good faith, except in the event of
the Trustee’s breach of its duties under this Agreement due to its own negligence or willful misconduct; 
 (e)
    The acts or omissions to act with respect to the Plan or Trust by a Directing Party; 
 (f)
    Any violation by a Directing Party of the provisions of ERISA or the regulations thereunder; 

(g)     Any violation by a Directing Party of the terms of the Plan Documents, instruments, investment policies
or guidelines (“Plan Documents”); or 
 (h)     Any breach of the representations and
warranties of Article 2.9 of this Agreement. 
 For purposes of this Article, “affiliate” will mean any member of a controlled
group of corporations or a group of trades or businesses under common control, within the meaning of Section 414(b) and (c) of the Code of which the Trustee is a member. 

Expenses incurred by the Trustee that it believes are subject to indemnification under this Agreement will be paid by the Company upon the
Trustee’s request, provided that the Company may delay payment of any amount in dispute until such dispute is resolved according to the provisions of Article 9.5 of the Agreement. Such resolution may include the award of interest on unpaid
amounts determined to be payable to the Trustee under this Article. 
 If the Trust ceases to be a tax-exempt trust under Section 401
and Section 501 of the Code, the Company will indemnify the Trustee for any Federal or state taxes which the Trustee is required to pay as a result of any distribution made at the direction of the Administrator and the Company will be
subrogated to the right of the Trustee to proceed against any person or decedent’s estate benefiting from such tax payment. 
 Each
party must notify the other promptly in the event that a claim has been made and/or suit has been brought which could give rise to rights under this Article. 
 All indemnities provided herein will survive termination of this Agreement. 
 2.9 Representations
and Warranties 
 The Company represents and warrants as follows: 

(a)     there are no Plan Documents that limit the investments of the Plan, the powers of the Trustee, or the
ability to pay expenses out of the Plan that have not been provided to the Trustee and in the event any Plan Document is modified to impose such a limitation, the modified Plan Document will be provided by the Company to the Trustee within fifteen
days of the adoption of the modification; 
 (b)     no direction will be issued by the Company or the
Administrator to the Trustee in violation of the terms of the Plan Documents, this Agreement, or ERISA or the regulations thereunder; 
 (c)     it maintains and follows procedures for identifying prohibited transactions as defined under ERISA and applicable ERISA exemptive relief; 

(d)     no direction will be issued by the Company or the Administrator to the Trustee that will result in a
non-exempt prohibited transaction under ERISA or the Code; 
 (e)     it will provide the Trustee with
appropriate direction in the event the Company discloses material non-public information concerning the Company to the Trustee; and 

  
  

 

  
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 (f)     there are no existing SEC Form 8-K filings that disclose
material information regarding the Company’s financial condition or operation that would call into question the Company’s ability to continue as a going concern, bankruptcy filings or formal civil or criminal charges filed against the
Company or its officers or directors by federal or state regulators other than those that have been disclosed to the Trustee by the Company, and in the event any such filing is made, the Company will provide the Trustee with a copy of such filing
within fifteen days. 
 ARTICLE 3 
 TRUST INVESTMENTS AND TRUSTEE POWERS 
 3.1 Powers of the Trustee. The Trustee will not
have any discretion or authority with regard to the investment of the Trust Fund, but must act solely as a directed trustee of the funds contributed to it. As a directed trustee, the Trustee is authorized and empowered, by way of limitation, with
the following powers, rights and duties, each of which the nondiscretionary Trustee exercises solely in accordance with the written direction of the Administrator, its delegate, properly authorized participants (as described in Article 2.3), or a
properly appointed Investment Manager (as described in Article 2.4): 
 (a)     To invest any part or
all of the Trust Fund in common stock, preferred stock, convertible preferred stock, bonds, debentures, convertible debentures and bonds, mortgages, notes, time certificates of deposit, commercial paper and other evidences of indebtedness (including
those of the Trustee, The Charles Schwab Corporation (the “Public Company”), the Broker/Dealer, their affiliates and subsidiaries, to the extent permitted under applicable laws), other securities, annuity contracts, mutual funds (including
those advised by the Trustee or its affiliate(s), to the extent permitted by law, for which the Company hereby acknowledges that the Trustee or its affiliate(s) receives a fee), covered calls and protective puts, U.S. Treasury notes and any other
direct or indirect obligations of the United States government or its agencies, other property of any kind (personal, real, or mixed, and tangible or intangible), collective investments (as described in Article 3.2), insurance contracts of any type
(as described in Article 3.3), limited partnerships (if provided with documentation which the Trustee in its sole discretion deems adequate), securities issued by the Company (as described in Article 3.4), and to make any other investments as
directed. 
 (b)     To collect income generated by the Trust Fund investments and proceeds realized
on the sale or disposition of assets and to hold the same pending reinvestment or distribution in accordance with this Agreement; 
 (c)     To register Trust Fund property in the Trustee’s own name, in the name of a nominee or in bearer form, provided the Trustee’s records and accounts show that such property is an
asset of the Trust Fund; 
 (d)     To deposit securities in a security depository and permit the
securities so deposited to be held in the name of the depository’s nominee, and to deposit securities issued or guaranteed by the U.S. Government or any agency or instrumentality thereof, including securities evidenced by book entry rather than
by certificate, with the U.S. Department of the Treasury, a Federal Reserve Bank or other appropriate custodial entity, in the same account as the Trustee’s own property, provided the Trustee’s records and accounts show that such
securities are assets of the Trust Fund; 
 (e)     To retain the property in the Trust; 

(f)     To sell Trust assets, at either public or private sale, at such time or times and on such terms and
conditions as it may deem appropriate; 
 (g)     To consent to or participate in any plan for the
reorganization, consolidation, or merger of any business unit, any security of which is held in the Trust Fund, to pay calls and assessments imposed upon the owners of such securities as condition of their participating therein, and to consent to
any contract, lease, mortgage, purchase or sale of property, by or between such business unit and any other party; 

  
  

 

  
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 (h)     To renew or extend the time of payment of any obligation
due or becoming due; 
 (i)     To compromise, arbitrate (subject to the restrictions of Article 9.5),
or otherwise adjust or settle claims in favor of or against the Trust and to deliver or accept consideration in either total or partial satisfaction of any indebtedness or other obligation, and to continue to hold property so received for the period
of time that the Trustee deems appropriate; 
 (j)     To exercise or dispose of any right it may have
as the holder of any security, to convert the same into another security, to acquire any additional security or securities, to make any payments, to exchange any security, or to do any other act with reference thereto; 

(k)     To exchange any property for other property upon such terms and conditions as the Trustee may deem
proper, and to give or receive money to effect equality in price; 
 (l)     To sue or defend in
connection with any and all securities or property at any time received or held in the Trust Fund and to charge against the Trust Fund all reasonable expenses, including attorney’s fees in connection therewith; 

(m)     To borrow money from any source (including the Trustee) and to execute promissory notes, mortgages or
other obligations and to pledge or mortgage any Trust assets as security, subject to applicable requirements of the Code and ERISA; 
 (n)     To deposit any security with any protective or reorganization committee, and to delegate to that committee such power and authority as the Trustee may deem proper, and to agree to pay
out of the Trust Fund that portion of the expenses and compensation of that committee as the Trustee may deem proper; 

(o)     To have, respecting securities, all the rights, powers and privileges of an owner, including the power
to give proxies, pay assessments and other sums deemed by the Trustee to be necessary for the protection of the Trust Fund, to vote any corporate stock either in person or by proxy, with or without the power of substitution; 

(p)     To appoint agents as necessary or desirable, including legal counsel who may be counsel for the
Company; 
 (q)     To the extent permitted under applicable laws, to invest in savings accounts,
certificates of deposit or other deposits which bear a reasonable interest rate in a bank, including those of the Trustee, the Charles Schwab Bank, N.A., or any affiliate or subsidiary, if such bank is supervised by the United States or any state;

 (r)     To hold in cash, without liability for interest, such portion of the Trust Fund which, in
its discretion, will be reasonable under the circumstances, pending investments, the payment of expenses, or the distribution of benefits; 
 (s)     To lend securities from the Trust on a secured basis in accordance with a separate written agreement between the Administrator, the Trustee, and its affiliates; and 

(t)     To exercise all of the further rights, powers, options and privileges granted, provided for, or vested
in trustees generally under the laws of the State of California, so that the powers conferred upon the Trustee herein will not be in limitation of any authority conferred by law, but will be in addition thereto. 

3.2 Collective Investment Funds. The Trust Fund may be invested and reinvested, in whole or in part, in any common or collective investment
fund (the “Collective Fund” or “Fund”) maintained by the Trustee or an investment manager exclusively for the commingling and collective investment of assets of qualified retirement plans and tax-exempt trusts in which the Trust
Fund is eligible to participate. The documents 

  
  

 

  
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establishing or amending these trusts are hereby incorporated by reference into this Agreement. Notwithstanding any other provision of this Agreement, to the extent Trust Fund assets are invested
in a Collective Fund, the terms of the Fund’s governing instrument will govern the investment responsibilities and powers of the entity responsible for management of the Collective Fund (the “Fund Manager”). The market value of the
Trust Fund’s interest in any Collective Fund will be the fair market value of the interest as determined by the Fund Manager in accordance with the Fund’s governing instrument. For purposes of valuation of Trust Fund assets, the Trustee
will be entitled to rely conclusively on the value reported by the Fund Manager. 
 3.3 Insurance Contracts/Pooled Investment Vehicles.
The Administrator may direct the Trustee to invest Trust Fund assets in a pooled investment vehicle funded by contracts issued by an insurance company qualified to do business in a state (within the meaning of ERISA Section 3(10))
including, without limitation, group annuity and guaranteed investment contracts. Any such contract may provide for the allocation of amounts received by the insurance company to its general account, one or more of its separate accounts (including
pooled separate accounts), or both. To the extent Trust Fund assets are allocated to a separate account of an insurance company, the Administrator will appoint the insurance company as an investment manager as provided in Article 2.4 above.
Notwithstanding any other provision of the Agreement, the terms of the contract(s) governing the separate account(s) in which the Trust Fund is invested will govern the investment responsibilities and powers of the insurance company and, to the
extent required by law, the terms of such contract(s) will be incorporated into the Agreement. 
 To the extent permitted by the Plan, the
Administrator may direct the Trustee to apply for and purchase individual life insurance or annuity contracts (the “Contracts”) from an insurance company (the “Insurer”), subject to the following provisions: 

(a)     The Administrator will be responsible for ensuring that the purchases conform to the requirements of
the Plan and any rules and policies established by the Administrator regarding the form, value, optional settlement methods and other provisions of the Contracts. The Trustee will not be responsible for the validity or proper execution of any
Contract delivered to it, or any act of any person that renders the Contract void or voidable. The Trustee will not be responsible if the Contract held in the Trust Fund fails to meet the requirements of the Plan, and will have no duty to inform
participants of the terms and conditions of any such Contract. 
 (b)     The Administrator will
instruct the Insurer to notify the Administrator of all premiums becoming due under the Contracts. The Administrator will deliver all premium notices to the Trustee, together with a direction to the Trustee to liquidate assets and pay the premiums
out of the Trust Fund. The Trustee will have no responsibility for paying the premium unless the Administrator provides the Trustee written instructions to do so and sufficient liquid Trust assets are available for that purpose. 

(c)     The Administrator will cause the Plan to be designated as the sole owner of all Contracts. The Trustee
will exercise its powers, rights, privileges, options and other incidents of ownership with respect to the Contracts only at the written direction of the Administrator. The Administrator will be responsible for informing the Trustee of the identity
of all beneficiaries of any Contract. 
 (d)     The Company hereby instructs the Trustee to value
every Contract held in the Trust at $1.00. 
 3.4 Employer Securities. To the extent permitted by the Plan and ERISA and subject to
the applicable Federal and state securities laws, the Administrator may direct the Trustee to invest in qualifying employer securities (“Employer Securities”) within the meaning of ERISA Section 407(d)(4) and (5). The Administrator
will have full responsibility for determining that any such investment and the exercise of any voting rights appurtenant to Employer Securities, comply with applicable law. Notwithstanding any other provision of the Plan or this Agreement, the
Administrator will have responsibility for determining whether such shares should be sold, exchanged, or otherwise disposed of, except as provided in Article 3.6, 3.7 and 3.8 herein. 

  
  

 

  
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 With respect to Plans holding Employer Securities, it will be the responsibility of the Administrator,
and not the Trustee, to assure compliance with all requirements imposed under the securities laws of the United States or any state, including, but not limited to, registration and filing requirements. The Trustee is hereby specifically indemnified
and held harmless for any loss or liability it may incur, or for any penalties that may be imposed as a result of, the Administrator’s failure to comply with such requirements. The Trust Fund will not invest in Employer Securities unless the
Administrator determines that the securities are exempt from registration under the Federal Securities Act of 1933 (the “1933 Act”), as amended, and are exempt from registration or qualification under the applicable state law, and of any
other applicable blue sky law, or in the alternative, that the securities have been so registered and/or qualified. The Administrator will also specify what restrictive legend on transfer, if any, is required to be set forth on the certificates for
the securities and the procedure to be followed by the Trustee to effectuate a resale of such securities. 
 The Administrator will not
direct that Trust assets be invested in Employer Securities, if such investment would be prohibited by ERISA. The Administrator will only direct the investment of Trust funds into Employer Securities if: (i) those securities are traded on an
exchange permitting a readily ascertainable fair market value, (ii) the Administrator agrees to instruct the Trustee to obtain a current valuation by a qualified independent appraiser on an annual basis, or (iii) the Administrator agrees
to obtain such a valuation and deliver it to the Trustee on an annual basis. 
 The Company hereby acknowledges (i) that the
Administrator has the sole responsibility for all decisions to invest Trust assets in Employer Securities, except to the extent that the Administrator has determined that its responsibility is limited by Section 404(c) of ERISA or the
Administrator has properly delegated its responsibility to a third party, (ii) that the Trustee has no duty to question any such direction, and (iii) that the Company will indemnify and hold harmless the Trustee from any liability to any
parties, including without limitation Plan participants and beneficiaries, that may result to the Trustee from following any such direction to invest Trust assets in Employer Securities, irrespective of whether such direction constitutes a proper
direction within the meaning of ERISA. 
 3.5 Securities Notification and Reporting. The Company represents and warrants that it
will take all responsibility (and hereby assumes all liability for the failure) to notify participants of any limitations on investment directions necessary or appropriate to comply with Federal securities laws (including the Securities Exchange Act
of 1934 and the 1933 Act), including but not limited to the frequency of investment changes by certain officers and shareholder-employees pursuant to Section 16 of the Securities Exchange Act of 1934 and, to the extent applicable, the volume of
trading in Employer Securities pursuant to Regulation M and the timing of trading and blackout periods under the Sarbanes-Oxley Act of 2002. Consequently the Trustee will have no liability to a participant, beneficiary, or the Company for carrying
out instructions relating to the acquisition or disposition of Employer Securities regardless of whether those instructions subject such person or the Company to any liability. 

The Company represents and warrants that either the percentage of the issued and outstanding class of equity security registered under
Section 12 of the Securities Exchange Act of 1934 which is Employer Securities owned by the Plan (the “Plan Percentage”) is less than 4.5% or that the Plan and its prior trust have complied with all notice and filing requirements
imposed by Federal securities laws with regard to the securities. The Company covenants that it will: 
 (a)
    Notify the Trustee in writing within five business days following any date as of which the Plan Percentage equals or exceeds 4.5%; 
 (b)     Monitor the Plan Percentage on a daily basis so long as the Plan Percentage is at least 4.5%; 
 (c)     Notify the Trustee in writing within five business days following any date as of which the Plan Percentage equals or exceeds 5% and, if applicable, 10%; and 

(d)     Provide monthly written reports to the Trustee disclosing the Plan Percentage. The foregoing monitoring
and notification requirements will cease during any month when the Plan Percentage is below 

  
  

 

  
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4.5% for each day of the month. The provisions of this Article 3.5 will survive the termination of this Trust Agreement. 
 The Company further represents and warrants that the Company will file all statements and reports required by the Securities and Exchange Commission that are required on account of the purchase, sale or ownership
of Employer Securities by the Trust Fund, including without limitation Forms 11-K, 13-D, 13-G, and Forms 4 and 5, and that the Trustee will have no responsibility for any such filings. 

3.6 Securities Voting Rights. Except as provided in Article 3.7 and 3.8 regarding Employer Securities, the Administrator, or any Investment
Manager it appoints will exercise the voting or other rights in Trust Fund securities. Where an Investment Manager has been authorized to acquire and dispose of all or a portion of the Trust Fund, the Investment Manager will be responsible and
liable for voting or exercising other rights in the securities subject to its management and control. 
 The Trustee will deliver to the
Administrator, or the person or persons identified by the Administrator, proxies and powers of attorney and related informational material it receives, for any shares or other property held including Employer Securities in the Trust. Subject to the
provisions of Article 3.7 and 3.8 regarding Employer Securities, the Administrator will have responsibility for voting such shares and the tendering of such shares, by proxy or in person. The Trustee may use agents to affect such delivery to the
Administrator. In no event will the Trustee be responsible for the voting or tendering of shares of securities held in the Trust or for ascertaining or monitoring whether, or how, proxies are voted or whether the proper number of proxies is
received. The Company will indemnify and hold harmless the Trustee from any liability to any parties, including without limitation Plan participants and beneficiaries, that may result to the Trustee from following any such direction to vote or
tender shares of securities held in the Trust (or any failure to vote or tender such shares in the absence of such a direction), irrespective of whether such direction constitutes a proper direction within the meaning of ERISA. 

3.7 Employer Securities Voting Rights. If Employer Securities are a permissible investment option under the Plan, all voting rights with
respect to the Employer Securities held in the Trust Fund and allocated to participants’ Accounts shall be exercised by the Trustee in such manner as may be directed by the respective participants (which term, for purposes of this Section,
shall include the beneficiary of a deceased participant and any alternate payee for whom an account has been established with an interest in the Employer Securities). Any Employer Securities in the Trust Fund that are allocated to Participants who
fail to give directions to the Trustee and all Employer Securities otherwise unallocated, if any, shall be voted by the Trustee in the same proportion as the shares for which voting instructions have been received, subject to the power,
responsibility and obligation of the Administrator to direct the Trustee to act with respect to the voting of such shares in a different manner, if the Administrator determines that such action is consistent with and/or required by its fiduciary
obligations under ERISA. The Company acknowledges that it shall be the responsibility of the Administrator, and not the Trustee, to determine whether the fiduciary responsibilities of ERISA require that a direction be provided to the Trustee to
override such proportionate voting. 
 In the event that no voting rights are required by law or the terms of the Plan to be passed
through to participants, the shares will be voted by the Administrator or other authorized party unless otherwise agreed to in writing. The Company acknowledges that it shall be the responsibility of the Administrator, and not the Trustee, to
determine the manner in which such shares are to be voted consistent with the Administrator’s fiduciary obligations under ERISA. 

Except as otherwise specifically provided above with respect to proportionate voting, the Company further acknowledges that the failure of the
Administrator to provide a direction to the Trustee with respect to the voting of Employer Securities shall constitute the determination by and direction of the Administrator to the Trustee that such shares not be voted and that the Administrator
has made such determination consistent with its fiduciary obligations under ERISA. 

  
  

 

  
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 The Company and the Administrator will indemnify and hold the Trustee harmless with respect to the
Trustee’s voting or not voting of Employer Securities as provided above. The Administrator may establish such rules and guidelines it deems necessary to properly effect the provisions of this Section. 

3.8 Employer Securities Tender Rights. If Employer Securities are a permissible investment option under the Plan, all tender or exchange
rights with respect to the Employer Securities held in the Trust Fund and allocated to participants’ Accounts shall be exercised by the Trustee in such manner as may be directed by the respective participants (which term, for purposes of this
Section, shall include the beneficiary of a deceased participant and any alternate payee for whom an account has been established with an interest in the Employer Securities). The Administrator directs the Trustee not to tender or exchange any
Employer Securities in the Trust Fund that are allocated to Participants who fail to give directions to the Trustee and all Employer Securities that are otherwise unallocated, if any. The Company acknowledges that it shall be the responsibility of
the Administrator, and not the Trustee, to determine whether the fiduciary responsibilities of ERISA require that a direction be provided to the Trustee to override a participant’s election to tender or exchange or to override the direction
provided herein not to tender or exchange Employer Securities. 
 The Company and the Administrator will indemnify and hold the Trustee
harmless with respect to the Trustee’s tendering or exchanging or not tendering or exchanging Employer Securities as provided above. The Administrator may establish such rules and guidelines it deems necessary to properly effect the provisions
of this Section. 
 3.9 Products of an Affiliate. At the direction of the Administrator, the Trustee may purchase shares of
regulated investment companies (or other investment vehicles) advised by the Public Company (defined in Section 5.1 below), the Broker/Dealer (defined in Section 5.1 below), the Trustee or any affiliate or subsidiary of any of them
(“Affiliated Funds”), except as prohibited by law or regulation. 
 Uninvested Trust cash may be invested in Affiliated Funds
designated by the Administrator for that purpose, unless the Administrator specifically instructs the Trustee to use another fund or account acceptable to the Trustee. 
 Affiliated Funds may not be purchased or held by the Trust unless the Administrator has received disclosure concerning the Public Company’s, the Broker/Dealer’s, the Trustee’s and/or their
affiliate’s and subsidiary’s relationship to the Affiliated Funds. Such disclosure must include an explanation of any fees paid to the Public Company, the Broker/Dealer, the Trustee and/or their affiliates and subsidiaries. 

3.10 Overdrafts. Notwithstanding any other provision in this Agreement to the contrary, the Trustee will have the right, but not the
responsibility to clear, or cover overdrafts incurred by the Trust Fund. In order to fulfill its obligation to clear Trust Fund overdrafts, the Trustee will request the Administrator to direct the Trustee to sell specific Trust assets in an amount
sufficient to cover the overdraft. If the Trustee does not receive the requested direction before the close of business on the day of its request, Trustee will have the right but not the responsibility to sell Trust Fund assets in an amount
necessary to cover the overdraft. 
 In the event the Trustee determines to sell Trust Fund assets in order to cover the overdraft, the
Trustee will first liquidate any available money market funds held by the Trust Fund, and to the extent such amounts are not sufficient to cover the overdraft, Trustee will liquidate other classes of Trust assets in the following order until
sufficient funds are generated to cover the overdraft: 
  

	 	               (1)
	     Capital preservation funds 
	 

	 	               (2)
	     Bond investment funds 
	 

	 	               (3)
	     Balanced investment funds 
	 

	 	               (4)
	     Stock investment funds 
	 

	 	               (5)
	     Equities and other securities 
	 

  
  

 

  
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 3.11 Multiple Trusts and Trustees. If the Plan permits the appointment of multiple trustees and
the establishment of separate trusts to hold Plan assets, the Company may appoint trustees in addition to the Trustee and establish trusts in addition to the Trust Fund to hold Plan assets. Trustee under this Agreement will have no duty,
responsibility or liability for Plan assets held in these other trusts by other trustees, except as required by applicable law. 
 3.12
Pooling with Assets of Other Plans. If the Company creates or maintains for its employees or the employees of an affiliated company one or more employee benefit plans qualified under Code Section 401(a) in addition to the Plan, the Company
may request the Trustee to hold the assets of the additional plan or plans in the Trust Fund. With the consent of the Trustee, the assets of the one or more additional plan(s) maintained by the Company may be maintained as one Trust, and their
assets may be commingled. 
 The Administrator will keep records showing the interest of the Plan and each additional Plan in the Trust
Fund unless the Trustee enters into an agreement with the Company to keep separate accounts for each such Plan. The Company and the Administrator will not permit or cause the assets of one Plan within the Trust to be used to pay benefits or
administrative expenses of any other Plan within the Trust Fund. 
 3.13 No Duty to Inquire. All persons dealing with the Trustee
are released from inquiring into the decision or authority of the Trustee and from seeing to the proper application of any monies paid or securities or other property delivered to the Trustee. 

3.14 No Duty to Investigate. The Trustee will bear no liability for acting upon any instruction or document believed by it to be genuine and
to be presented or signed by a party duly authorized to do so, and the Trustee will be under no duty to make any investigation or inquiry about the correctness of such instruction or document. 

3.15 Advice of Counsel. The Trustee may consult with legal counsel of its choice, including counsel for the Company, upon any question or
matter arising hereunder, and the opinion of such counsel, when relied upon by the Trustee will be evidence the Trustee was acting in good faith and with the care and prudence required under ERISA. 

ARTICLE 4 
 SETTLEMENT OF
ACCOUNTS 
 4.1 Trustee Records. The Trustee will maintain accurate and detailed records of all investments, receipts,
disbursements, and other transactions related to the Trust. The records will be available for inspection and audit at all reasonable times by the Administrator, the Company, or their authorized representatives. 

4.2 Trustee Reports 
 (a)    Within sixty days following the close of the Plan’s fiscal year or the close of any other period as may be agreed upon by the Trustee and the Administrator, including monthly, the
Trustee will file with the Administrator a written accounting of the Trust Fund (the “Trust Statement”) setting forth a description of all securities and other property purchased and sold, all receipts, disbursements, and other
transactions affected by it during that fiscal year or other designated period, and listing the securities and other property held by the Trustee at the end of such fiscal year or other designated period, together with their then fair market values.

 (b)    The Administrator may approve the Trust Statement by written notice of approval delivered to
the Trustee or by failure to deliver to the Trustee express objections to the Trust Statement in writing within sixty days from the date upon which the Trust Statement was mailed or otherwise delivered to the Administrator. 

  
  

 

  
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 (c)    The Trust Statement will be deemed approved upon receipt by
the Trustee of the Administrator’s written approval of the Trust Statement or upon the passage of the sixty day period of time, except for any matters covered by written objections that have been delivered to the Trustee by the Administrator
and for which the Trustee has not given an explanation or made an adjustment satisfactory to the Administrator. 

(d)    If the Trust Statement is not settled as provided above, the Trustee, the Company or the Administrator
will have the right to submit such controversy or disagreement to arbitration pursuant to Article 9.5, at the expense of the Trust Fund for a settlement of the accounting. Any determination by the arbitrator entered in such proceeding will be
conclusive on all persons interested in the Trust Fund. 
 4.3 Valuation. Notwithstanding any other provision of this Article 4,
unless the Trustee is able to obtain the value of the Trust Fund assets, including any Non-Standard Assets held by the Trust Fund, from readily available public sources, as of each annual valuation date assigned by the Company, the Administrator
will direct the Trustee with respect to the current fair market value of the Trust Fund assets within the time frame requested by the Trustee, and the Trustee will, in accordance with such valuation, account for such assets and include such
information in reports pursuant to Article 4.2 of this Agreement. In the event the Administrator fails to provide such direction, the Administrator directs the Trustee to engage an independent appraiser that meets the requirements of Code
Section 401(a)(28)(C) to determine the current fair market value of the Trust Fund assets. Any expenses and costs with respect to such appraisal will be paid out of the Trust Fund or, at the option of the Company, by the Company. 

The Company acknowledges and agrees that in the event that any Trust Fund assets, including Non-Standard Assets, are transferred from an account
held by a prior trustee or custodian to the trust account, (whether from Charles Schwab & Co., Inc. or an unrelated financial provider): 
 (1)    if such assets are valued at zero, the Trustee shall use such zero valuation for such assets for all plan purposes until such time as the Company provides the Trustee with a replacement
valuation or, at the Company’s direction, the Trustee obtains such a replacement valuation. 

(2)    if it does not provide the Trustee with a subsequent valuation direction or such subsequent valuation
direction is not timely provided by it, the Trustee shall use the last valuation direction previously provided by the Company to the Trustee for all Plan purposes. 

The Company further acknowledges and agrees that in no event will the Trustee be responsible for use of an updated valuation
amount prior to actual receipt by the Trustee of such updated valuation information. In the event that an updated valuation amount is provided by the Company as a result of an error or inaccuracy in a prior valuation direction, the Company shall
compensate the Trustee based on its standard hourly rates for Extraordinary Services attributed to work that must be corrected, as defined in the SchwabPlan® Services Agreement referenced in Article 6.2 herein. 

The Company, and not the Trustee, will be responsible and liable for the determination of whether the valuation and the valuation method are
acceptable and have been conducted in accordance with applicable legal and regulatory requirements. The Trustee will not be liable for an inaccurate valuation and shall have no duty of investigation or inquiry with respect thereto, and the Company
shall indemnify, release and hold the Trustee harmless for any losses, liabilities, claims and expenses (including attorney’s fees and costs of defense) resulting from the valuation of Trust Fund assets. 

ARTICLE 5 
 SERVICES BY
AND BROKERAGE TRANSACTED THROUGH AFFILIATED ORGANIZATIONS 
 5.1 Services by the Affiliated Organizations. The Trustee may
contract or make other arrangements for the provision of services to the Trust Fund with any organizations affiliated with or subsidiaries of the Trustee, including the Charles Schwab Corporation (the “Public Company”) and Charles
Schwab & Co., Inc. (the “Broker/Dealer”), their respective affiliates and subsidiaries, successors and assigns, except where such arrangements are prohibited by law or regulation. 

  
  

 

  
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 5.2 Brokerage. The Trustee is authorized to place securities orders, settle securities trades,
hold securities in custody, and perform related activities on behalf of the Trust Fund through or by the Broker/Dealer whenever possible unless the Company specifically directs Trustee to settle a trade directly with another broker/dealer or to
settle a trade placed by the Investment Manager for execution at another broker/dealer. Trades and related activities transacted through the Broker/ Dealer or another broker/dealer, initiated by either Trustee or the Investment Manager, are subject
to fees and commissions established by the Broker/Dealer or other broker/dealer, which may be paid from the Trust Fund or netted from the proceeds of trades. Transactions executed by the Broker/Dealer or other broker/dealer are subject to the
applicable account agreement, trading rules and policies as modified or amended from time to time, together with the applicable rules, regulations, customs and usage of any exchange, market, clearing house or self-regulatory organization and
applicable federal and state laws, rules and regulations. Trades may not be executed through the Broker/Dealer or other broker/dealer unless the Company has received disclosure concerning the relationship of the Broker/Dealer or other broker/dealer
to Trustee, and fees and commissions which may be paid to the Public Company, Broker/ Dealer, Trustee, and/or their affiliates or subsidiaries as a result of using the execution or other services of the Broker/Dealer or other broker/dealer.

 5.3 Mutual Funds and Uninvested Cash. The Administrator may direct purchases of shares of regulated investment companies (or
other investment vehicles) advised by affiliates of the Public Company, Broker/Dealer (“Schwab Funds”) or Trustee unless such investment is forbidden by law or regulation. Uninvested cash of the Trust Fund will be invested as selected by
the Administrator unless the Company or the Investment Manager, if any, specifically instructs the use of another fund or account, except where forbidden by law or regulation. 
 5.4 Disclosure of Information. The Trustee is authorized to disclose such information as is necessary to the operation and administration of the Trust to the Public Company or any of its affiliates, and to
such other persons or organizations that the Trustee determines have a legitimate business purpose for obtaining such information. 
 The
Trustee is authorized to disclose upon request to companies whose securities are held in the Trust Fund: (1) the Company’s and/or the Investment Manager’s name and address (2) the holdings in the Trust Fund of securities issued
by the requesting company, and (3) with respect to Rule 22c-2 of the Investment Company Act of 1940, the taxpayer identification number (“TIN”), if known, of any or all Plan participant(s) that purchased, redeemed, transferred or
exchanged holdings in a fund subject to Rule 22c-2 through an account maintained by the Trustee, and the amounts and dates of each purchase, redemption, transfer or exchange, and other information that may be required by such rule. 

ARTICLE 6 
 TAXES,
EXPENSES AND COMPENSATION OF TRUSTEE 
 6.1 Taxes. The Trustee will notify the Administrator of any tax levied upon or assessed
against the Trust Fund of which the Trustee has knowledge. If the Trustee receives no instructions from the Administrator, the Trustee may pay the tax from the Trust Fund. If the Administrator wishes to contest the tax assessment, it will give
appropriate written instructions to the Trustee. The Trustee will not be required to bring any legal actions or proceedings to contest the validity of any tax assessments unless the Trustee has been indemnified to its satisfaction against loss or
expense related to such actions or proceedings, including reasonable attorney’s fees. 
 6.2 Trustee
Compensation and Expenses. The Company shall quarterly pay the Trustee its expenses in administering the Trust and reasonable compensation for its services as Trustee as described in the SchwabPlan® Services Agreement, which may be amended from time to time. Trustee reserves the right to alter this rate of compensation at any time by providing the Company with
written notice of such change at least sixty days prior to its effective date. Reasonable compensation shall include (compensation for any (i) Extraordinary Services as defined in the SchwabPlan® Services Agreement, (ii) computations required, including with respect to the valuation of assets when current market values are

  
  

 

  
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not published, and (iii) covering of overdrafts. The Trustee shall have a lien on the Trust Fund for compensation and for any reasonable expenses including counsel, appraisal, or accounting
fees, and such amounts may be withdrawn from the Trust Fund unless paid by the Company within thirty days after mailing of the written billing by the Trustee. 

The Company acknowledges receipt of the SchwabPlan® Services Agreement and, where applicable, the Schwab Retirement Account/Personal Choice Retirement Account® Plan Application (“Application”), or any other specific fee schedules applicable to the Trust Fund (“Other Fee Schedules”) prior to execution of
this Agreement. The Company acknowledges and agrees that the amounts described in the SchwabPlan® Services Agreement
and/or Other Fee Schedules, whichever it has received, are approved by it and are payable to the Trustee and to the Recordkeeper, as applicable, and that such amounts have been taken into consideration in determining the reasonableness of the
amounts payable to the Trustee and the Recordkeeper. 
 Reasonable compensation will include the float earned on uninvested cash, the
reimbursement of expenses incurred by the Trustee in providing Extraordinary Services, and other compensation and remuneration as defined in any Other Fee Schedules. The Trustee reserves the right to alter this rate of compensation at any time by
providing the Company or the Recordkeeper, as applicable, with written notice of such change at least sixty days prior to its effective date. 
 6.3 Additional Trustee Compensation. In addition to fees set forth elsewhere, the Company acknowledges that the Trustee may receive, as compensation for its services, any credit, interest or other earnings
(collectively “Float”) on aggregate cash balances that the Trustee has on deposit with any third-party bank or other financial institution. Such cash balances may result from cash contributions not yet invested, cash pending trade
settlements or cash pending distributions from the Trust. 
 (a)    The Trustee has the authority to
initiate investments on behalf of the Trust only upon receipt of instructions from the Administrator. The Trustee calculates its cash Float investment amount each business day by netting all cash activity and adjusting for cash reserved for
investment or reinvestment and for cash reserved for distributions. The result is further adjusted by an additional reserve amount determined by the Trustee in its sole discretion as necessary to satisfy the Trust’s cash needs during the
following day for settlement of trades and payments, which may be adjusted from time to time. 

(b)    The Trustee invests the net cash Float amount primarily in overnight and short-term investments,
including money market funds, repurchase agreements, U.S. Government notes, bankers acceptances, and similar securities. The average maturity of the portfolio will not exceed ninety days. Thus the interest rates earned on Float approximate money
market or federal funds rates. Exact rates earned for representative periods are available upon request. 

(c)    The Trustee will comply with the following service standards. 

  i.    Incoming Cash: On days on which it is open for business, the Trustee will deposit into the Trust all incoming cash consisting of wires or Automated Clearing House (“ACH”) receipts on the date of receipt. The Trustee
will process all incoming checks on the date of receipt if the Trustee receives them by the Trustee’s cash deposit cutoff deadline as published from time to time, such deadline being 4:00 p.m. PST at the time of this Agreement. Checks generally
require two or three days to clear and be deposited into the Trust. Funds received after the cutoff times will be processed on the next business day. The period during which Trustee earns Float on these deposits (the “Float Period”) begins
when the ACH transfer, wire or check is deposited to the Trust and ends when the cash is invested. 

  ii.    Outgoing Cash: On days on which it is open for business, the Trustee will process outgoing checks, wires and ACH transfers within forty eight hours after receipt of the distribution instructions from an authorized party.
Outgoing checks are delivered to the U.S. postal service or other designated delivery services. The Float Period for distributions issued using checks begins on the day a check is issued from the Trust and ends when the check is presented for
payment. If distributions are made using ACH transfers the Float Period begins when the ACH transfer is initiated and ends the next 

  
  

 

  
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business day when the funds are deposited in the payee’s account. If distributions are made using wire transfers no Float is earned. 

  iii.     Cash Pending Trade
Settlement: The Trustee will process investment directives received from the Administrator if the Trustee receives them by the Trustee’s trade cut-off deadlines as published from time to time.
At the time of this Agreement, directives received before 10:00 a.m. PST (9:00 p.m. PST for trades processed through the Same Day/Late Day program) are initiated on the day received. Directives received after these times are processed on the next
business day. The Float Period for such transactions ends when the trade is settled. Most mutual fund trades settle the day after they are initiated. Most other trades settle within three days following the day they are initiated. 

ARTICLE 7 
 RESIGNATION OR
REMOVAL OF TRUSTEE 
 7.1 Resignation/Removal and Replacement. The Trustee may resign as trustee hereunder or may be removed by
the Company. This resignation or removal may be accomplished at any time upon the giving of sixty days written notice to the Trustee or Company, as applicable (or less if the receiving party agrees to waive notice). Upon resignation or removal, the
Company will appoint a successor trustee who will then succeed to all the powers and duties given to the Trustee by this Agreement. The terminating Trustee will transfer all property of the Trust Fund then held by it to such successor trustee, in
accordance with the written directions of the Administrator. 
 The terminating Trustee may require as a condition of making any transfer
to the successor trustee that the successor trustee present evidence that any bonding requirement under ERISA Section 412 has been met. The terminating Trustee may also require that the Company indemnify it against any losses arising from the
replacement of the Trustee. 
 If either party has given notice of termination as provided under this Agreement, and upon the expiration
of the advance notice period no other successor trustee has been appointed and has accepted such appointment, this provision will serve as (i) notice of appointment of the individual members of the Company’s Governing Body to serve as
Trustee and (ii) as acceptance by the Governing Body of that appointment. The Trustee is authorized to reserve such sum of money as it may deem advisable for payment of its fees and expenses in connection with the settlement of its accounts or
other proper Trust expenses, and any balance of such reserve remaining after the payment of such fees and expenses will be paid to the successor trustee. 
 7.2 Settlement of Accounts. Within sixty days of the transfer to the successor trustee, the terminating Trustee will provide the Company with a Trust Statement in the form and manner prescribed for the
annual Trust Statement by Article 4.2. Unless the Company files written objections with the Trustee within sixty days after such Trust Statement has been mailed or otherwise delivered, the Company will be deemed to have approved the Trust Statement.

 7.3 Termination of Liability. Upon settlement of its account and transfer of the Trust Fund to the successor trustee, all rights
and privileges under the Plan and this Agreement will vest in the successor trustee and thereafter liability of the Trustee for future action or inaction will terminate subject only to the requirement that the Trustee execute all necessary documents
to transfer the Trust Fund to the successor trustee. The Trustee will not be obligated to transfer all of the assets of the Trust Fund until the Trustee is indemnified in a manner satisfactory to it for all fees and expenses reasonably anticipated
to be incurred through the date of transfer. 
 ARTICLE 8 
 TERMINATION OF TRUSTEE AND AMENDMENT 
 8.1 Termination. The Company intends that this
Trust and the Plan of which it is a part will be permanently administered for the benefit of Plan participants and beneficiaries, and to defray reasonable expenses of administering the Plan. This Trust is irrevocable except with respect to Article
9.4; however, 

  
  

 

  
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the Company may terminate this Trust by resolution of its Governing Body and upon at least sixty days written notice to the Trustee (unless such notice is waived). Upon such termination, the
Trust Fund will be distributed by the Trustee as and when directed by the Administrator in accordance with the provisions of Article 1.5 and the Plan document. 
 From the date of termination of the Plan and until the final distribution of Trust assets, the Trustee will continue to have all the powers provided under this Agreement that are necessary or desirable for the
orderly liquidation and distribution of the Trust Fund. In no instance upon any termination, or discontinuance, and subsequent distribution will the Trust Fund or any part of it be used for, or diverted to, purposes other than providing benefits to
participating employees and beneficiaries, and defraying the administrative expenses of the Plan until all Plan liabilities have been satisfied, except as provided in Article 9.4 if the Trust fails to initially qualify for tax-exempt status.

 8.2 Conditions on Final Distribution. Upon termination of the Plan and this Trust the Trustee may place conditions on its final
transfer or distribution of the Trust Fund. The Trustee may require as a condition to its final distribution of Trust assets that it receive a copy of any approval required by law to be obtained from the Pension Benefit Guaranty Corporation (the
“PBGC”) and a determination letter from the Internal Revenue Service that the termination does not affect the tax exempt status of the Plan and Trust. If a PBGC approval is required, the Trustee will not transfer or distribute funds until
it receives a copy of the PBGC notice of approval. The Trustee, in its sole discretion, may waive receipt of the Internal Revenue Service determination letter and accept instead the Company’s indemnification of it against any liability arising
from such transfer or distribution, or may require the Company to post a bond sufficient to protect the Trustee against such liability until such time as a favorable determination letter from the Internal Revenue Service is received. 

8.3 Amendment. Except as provided for in this Agreement and the SchwabPlan® Services Agreement, including in Article 8.1, this Agreement may be amended at any time by written amendment adopted by the Company and the Trustee, provided, that
such amendment will not operate: 
 (a)     To cause any part of the Trust Fund to revert to or be
recoverable by the Company or to be used for or diverted to purposes other than the exclusive benefit of participants and their beneficiaries, except to the extent permitted by law and the Plan; or 

(b)     To reduce the then accrued benefits or the amounts then held for the benefit of any participant or
beneficiary of the Plan. 
 ARTICLE 9 
 MISCELLANEOUS 
 9.1 Construction and Severability. This Agreement will be construed and
administered under the Code, ERISA and other pertinent Federal statutes, and, to the extent not otherwise preempted, under the laws of the State of California. If any provision is susceptible to more than one interpretation, the interpretation to be
given is that which is consistent with the trust being a qualified trust under the meaning of Section 401 and Section 501 of the Code. If any provision of the Agreement is held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions will continue to be fully effective. 
 9.2 Headings. The headings in this instrument have
been inserted for convenience of reference only, and are to be ignored in any construction of the provisions of this Agreement. 
 9.3
Restriction on Alienation. No person entitled to any benefit under this Trust and the Plan will have any right to assign, alienate, hypothecate, or encumber his or her interest in any benefits under this Agreement and those benefits will not in
any way be subject to claim of his or her creditors or liable to attachment, execution, or other process of law. Any attempt at alienation will be void, and the Trustee will disregard any attempted alienation. The Trust Fund will not be liable for
or subject to the debts or torts of any participant or beneficiary, and benefits will not be considered an asset of a participant in bankruptcy. This does not preclude the Trustee from complying with a QDRO (as provided in Article 1.6). 

  
  

 

  
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 9.4 Failure to Obtain Qualification. It is intended that this Trust will be tax exempt under
Section 501 of the Code and that the Plan referred to herein will qualify under Section 401(a) of the Code. However, notwithstanding any other provisions of the Trust, if the Internal Revenue Service is requested to issue to the Company a
favorable written determination or ruling with respect to the initial qualification of the Plan and exemption of the Trust from tax and such request is denied, the Trustee will, after receiving a written direction from the Administrator, pay to each
participant that portion of the Trust Fund applicable to said participant’s voluntary contributions, if any, and provided the Plan so states, pay to the Company any part of the Trust Fund attributable to Company contributions then remaining in
the Trustee’s possession. As a condition to such repayment, the Company must execute, acknowledge, and deliver to the Trustee its written undertaking, in form satisfactory to the Trustee, to indemnify, defend, and hold the Trustee harmless from
all claims, actions, demands, or liabilities arising in connection with such repayment, and provided further that such repayment will occur within one year after the date the request for qualification is denied. 

9.5 Arbitration of Disputes. Any dispute under this Agreement will be resolved by submission of the issue to a member of the American
Arbitration Association who is chosen by the Company and the Trustee. If the Company and the Trustee cannot agree on such a choice, each will nominate a member of the American Arbitration Association, and the two nominees will then select an
arbitrator. Expenses of the arbitration will be paid as decided by the arbitrator. 
 9.6 Entire Agreement. This Agreement and the
Plan are both part of and constitute a single, integrated employee benefit Plan and trust and will be construed together. If there is a conflict between the provisions of the Plan and this Agreement, the provisions of this Agreement will control
with respect to all rights, duties, responsibilities, obligations, powers and authorities of the Trustee. The Trustee will not be a named fiduciary under the Plan, nor will it have any duty to inquire into, or liability with respect to, the
provisions of the Plan. 
 9.7 Governing Law. The Trust Fund will be administered by the Trustee in the State of California, and
all questions as to its validity will be determined in accordance with the laws of the State of California. 
 9.8 Recorded
Conversations. The Trustee is authorized to tape record conversations between the Trustee and persons acting on behalf of the Plan or a participant in the Plan to verify data on transactions. 

9.9 Execution and Counterparts. This Agreement may be executed in several counterparts, each of which will be deemed original and such
counterparts will constitute but one instrument that may be sufficiently evidenced by any one counterpart. 
 9.10 Successors and
Assigns. This Agreement will inure to the benefit of, and will be binding upon, the parties and their successors and assigns. 

9.11 Gender. As used in this Agreement, the masculine gender will include the feminine and neuter genders and the singular will include the
plural and the plural the singular, as the context requires. 
 9.12 Extraordinary Events. The Trustee is not responsible for
losses caused directly or indirectly by conditions beyond its control, including, but not limited to, war, natural disasters, government restrictions, exchange or market rulings, strikes, interruptions of communications or data processing services,
or disruptions in orderly trading on any exchange or market. 
 9.13 Notices, Change of Address. Any notice required or permitted
to be given under this Agreement will be sufficient if in writing and sent by registered mail, postage prepaid, addressed as follows: 
 If to the Company, to the address provided on the Execution page. 
 If to the Trustee:

  
  

 

  
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 The Charles Schwab Trust Company 

215 Fremont Street, 6th Floor 
 San Francisco, California 94105 
 Attention: Vice President, Sales &
Relationship Management 
 or to such other address as the Company or the Trustee may hereafter specify in writing by providing ten days
prior notice of such change to the other party. All notices, requests, demands and other communications will be in writing and will be deemed to have been duly given on the date of service, if served personally on the party to whom notice is to be
given, or on the fifth day after mailing, if mailed and properly addressed as indicated on the Application. 
 IN
WITNESS WHEREOF, CHARLES SCHWAB & CO., INC. and THE CHARLES SCHWAB TRUST COMPANY, have caused this Agreement to be executed by their respective duly authorized representatives this 17th day of August, 2007. 
  

									
	 CHARLES SCHWAB & CO., INC.
 COMPANY
	 		 	 THE CHARLES SCHWAB TRUST COMPANY
 TRUSTEE

			
	 PLAN
ADMINISTRATOR                                , for
	 		 	
			
	 the SCHWABPLAN RETIREMENT SAVINGS AND
INVESTMENT PLAN
	 		 	
			
	 Plan and Trust
	 		 	
					
	 By:
	 	         /s/
Jan Hier-King                                   
	 		 	 By:
	 	
        /s/ Scott A. Glave                 
                                  

									
					
	 Printed Name:
	 	         JAN
HIER-KING                        
	 		 	 Printed Name:
	 	         Scott A.
Glave                                   

									
					
	 Title:
	 	     EVP Human
Resources                         
	 		 	 Title:
	 	
                        Vice President    
                             

					
			
	 Address:
	 	             101 Montgomery
Street                          
	 	

									
				
	
                            MS: 
120KNY30-431                                
	 		 		 	

									
				
	
                            San 
Francisco, CA 94104                      
	 		 		 	
				
	
_

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