Document:

EX-10.5(d)

 Exhibit 10.5(d) 

ALIGOS THERAPEUTICS, INC. 

2018 EQUITY INCENTIVE PLAN 

Stock Option Grant Notice 
 Aligos
Therapeutics, Inc. (the “Company”), pursuant to its 2018 Equity Incentive Plan (the “Plan”), hereby grants to the participant set forth below (“Participant”), an option (the
“Option”) to purchase the number of shares of the Company’s Common Stock (referred to herein as “Shares”) set forth below. This Option is subject to all of the terms and conditions as set forth
herein and in the Stock Option Agreement attached hereto as Exhibit A (the “Stock Option Agreement”) and the Plan, each of which is incorporated herein by reference. Unless otherwise defined herein, the terms defined
in the Plan shall have the same defined meanings in this Stock Option Grant Notice (this “Grant Notice”) and the Stock Option Agreement. 
  

			
	Participant:	  	  

		
	Grant Date:	  	  

		
	Vesting Start Date:	  	  

		
	Exercise Price per Share:	  	$                                      
                                         
                                         
                    
		
	Total Exercise Price:	  	$                                      
                                         
                                         
                    
		
	Total Number of Shares
Subject to Option:	  	  

		
	Expiration Date:	  	  

  

	Type of Option:	 ☐ Incentive Stock Option ☐ Non-Qualified Stock
Option 

  

	Vesting Schedule:	 [The Option shall vest and become exercisable as to 25% of the total number of Shares subject to the Option on
the first anniversary of the Vesting Start Date and as to 1/48th of the total number of Shares subject to the Option on each monthly anniversary thereafter, so that all of the Shares subject to
the Option shall be fully vested and exercisable on the fourth anniversary of the Vesting Start Date, subject to Participant not experiencing a Termination of Service through each such vesting date.] 

By his or her signature below, Participant agrees to be bound by the terms and conditions of the Plan, the Stock Option Agreement, the special provisions for
Participant’s country of residence, if any, attached to this Stock Option Agreement as Exhibit A-1 (the “Non-U.S. Provisions”) and
this Grant Notice. Participant has reviewed the Plan, the Stock Option Agreement, the Non-U.S. Provisions, if applicable, and this Grant Notice in their entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, the Stock Option Agreement, the Non-U.S. Provisions, if applicable, and this Grant Notice. Participant hereby
agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator of the Plan upon any questions arising under the Plan or the Option. 

					
	 ALIGOS THERAPEUTICS, INC.:

 
	 		  	 PARTICIPANT:

 

			
	
By:                  
                                         
                                         
          
	 		  	
By:                  
                                         
                          

	
Name:                  
                                         
                                         
    
	 	
                   
                 
	  	
Name:                  
                                         
                    

	
Title:                  
                                         
                                         
      
	 		  	

 EXHIBIT A 

TO STOCK OPTION GRANT NOTICE 

Stock Option Agreement 
 Pursuant to the
Stock Option Grant Notice (the “Grant Notice”) to which this Stock Option Agreement (this “Agreement”) is attached, Aligos Therapeutics, Inc. (the “Company”) has granted to
Participant an Option under the Company’s 2018 Equity Incentive Plan (the “Plan”) to purchase the number of Shares indicated in the Grant Notice. 

1.    General. 

1.1    Defined Terms. Capitalized terms not specifically defined herein shall have the meanings specified in the
Plan and the Grant Notice. 
 1.2    Incorporation of Terms of the Plan. The Option is subject to the terms and
conditions of the Plan, the Non-U.S. Provisions, if applicable, and the Grant Notice, each of which are incorporated herein by reference. In the event of a conflict between the terms of the Agreement or the
Grant Notice and the Plan, the terms of the Plan shall control. If the Non-U.S. Provisions apply to Participant, in the event of a conflict between the terms of this Option Agreement, the Grant Notice or the
Plan and the Non-U.S. Provisions, the terms of the Non-U.S. Provisions shall control. 

1.3    Grant of Option. In consideration of Participant’s past and/or continued employment with or service to
the Company or a parent or subsidiary of the Company and for other good and valuable consideration, effective as of the grant date set forth in the Grant Notice (the “Grant Date”), the Company irrevocably grants to
Participant an Option to purchase any part or all of an aggregate of the number of Shares set forth in the Grant Notice, upon the terms and conditions set forth in the Plan, the Non-U.S. Provisions, if
applicable, and this Agreement. Unless designated as a Non-Qualified Stock Option in the Grant Notice, the Option shall be an Incentive Stock Option to the maximum extent permitted by law. 

2.    Period of Exercisability. 

2.1    Vesting; Commencement of Exercisability. 

(a)    Subject to Sections 2.1(b) and 2.3 below, the Option shall become vested and exercisable in such amounts and at
such times as are set forth in the vesting schedule in the Grant Notice (the “Vesting Schedule”). 

(b)    Unless otherwise determined by the Administrator, any portion of the Option that has not become vested and
exercisable on or prior to the date of Participant’s Termination of Service shall be forfeited on the date of Participant’s Termination of Service and shall not thereafter become vested or exercisable. 

2.2    Duration of Exercisability. The installments provided for in the Vesting Schedule are cumulative. Each such
installment which becomes vested and exercisable pursuant 

  
 A-1 

 
to the Vesting Schedule shall remain vested and exercisable until it becomes unexercisable under Section 2.3 below or pursuant to the terms of the Plan. Once the Option becomes
unexercisable, it shall be forfeited immediately. 
 2.3    Expiration of Option. The Option may not be exercised
to any extent by anyone after the first to occur of the following events: 
 (a)    The Expiration Date set forth in the
Grant Notice; 
 (b)    The expiration of three months following the date of Participant’s Termination of Service,
unless such Termination of Service occurs by reason of Participant’s death or Disability or for cause; 

(c)    The expiration of one year following the date of Participant’s Termination of Service by reason of
Participant’s death or Disability; or 
 (d)    The date of Participant’s Termination of Service for cause.

 Participant acknowledges that an Incentive Stock Option exercised more than three months after Participant’s Termination of Service
as an Employee, other than by reason of death or Disability, will be taxed as a Non-Qualified Stock Option. 

2.4    Special Tax Consequences. Participant acknowledges that, to the extent that the aggregate Fair Market Value
(determined as of the time the Option is granted) of all Shares with respect to which Incentive Stock Options, including the Option, are first exercisable for the first time by Participant in any calendar year exceeds $100,000 (or such other
limitation as imposed by Section 422(d) of the Code), the Option and such other options shall be treated as not qualifying under Section 422 of the Code but rather shall be considered Non-Qualified
Stock Options. Participant further acknowledges that the rule set forth in the preceding sentence shall be applied by taking Options and other “incentive stock options” into account in the order in which they were granted. 

3.    Exercise of Option. 

3.1    Person Eligible to Exercise. Except as may be otherwise provided by the Administrator, during the lifetime
of Participant, only Participant may exercise the Option or any portion thereof. After the death of Participant, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Section 2.3, be exercised
by Participant’s personal representative or by any person empowered to do so under the deceased Participant’s will or under the then applicable laws of descent and distribution. 

3.2    Partial Exercise. Any exercisable portion of the Option or the entire Option, if then wholly exercisable,
may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 2.3. 

3.3    Manner of Exercise. The Option, or any exercisable portion thereof, may be exercised solely by delivery to
the Secretary of the Company or the Secretary’s office, or such 

  
 A-2 

 
other place as may be determined by the Administrator, of all of the following prior to the time when the Option or such portion thereof becomes unexercisable under Section 2.3 above: 

(a)    An exercise notice in substantially in the form attached as Exhibit B to the Grant Notice
(or such other form as is prescribed by the Administrator) (the “Exercise Notice”) in writing signed by Participant or any other person then entitled to exercise the Option or portion thereof, stating that the Option or portion
thereof is thereby exercised, such notice complying with all Applicable Laws established by the Administrator; 

(b)    Subject to Section 5.6 of the Plan: 

(i)    Full payment (in cash or by check) for the Shares with respect to which the Option or portion thereof is exercised;
or 
 (ii)    With the consent of the Administrator, by delivery of Shares then issuable upon exercise of the Option
having a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof; or 

(iii)    On and after the date the Company becomes a Publicly Listed Company, through the (A) delivery by
Participant to the Company of an irrevocable and unconditional undertaking by a broker acceptable to the Company to deliver promptly to the Company sufficient funds to pay the exercise price or (B) delivery by Participant to the Company of a
copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company cash or a check sufficient to pay the exercise price; provided that payment is then made to the Company at such time as may
be required by the Administrator; or 
 (iv)    With the consent of the Administrator, any other method of payment
permitted under the terms of the Plan; or 
 (v)    Subject to any Applicable Laws, any combination of the
consideration allowed under the foregoing paragraphs; 
 (c)    The receipt by the Company of full payment for any
applicable withholding tax and/or social insurance contributions in cash or by check or in the form of consideration permitted by the Administrator, which, following the date the Company becomes a Publicly Listed Company shall include the method
provided for in Section 5.6(a) of the Plan; 
 (d)    If the Company is a not a Publicly Listed Company, the
Investment Representation Statement in the form attached as Exhibit B-1 to the Exercise Notice executed by Participant; and 

(e)    In the event the Option or portion thereof shall be exercised pursuant to Section 3.1 above by any person or
persons other than Participant, appropriate proof of the right of such person or persons to exercise the Option. 

  
 A-3 

 4.    Other Provisions. 

4.1    Restrictive Legends and Stop-Transfer Orders. 

(a)    Participant agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may
issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 

(b)    The Company shall not be required: (i) to transfer on its books any Shares that have been sold or otherwise
transferred in violation of any of the provisions of this Agreement, or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such shares shall have been so
transferred. 
 4.2    Notices. Any notice to be given under the terms of this Agreement to the Company shall be
addressed to the Company at its principal executive offices in care of the Secretary of the Company, and any notice to be given to Participant shall be addressed to Participant at the most recent address for Participant shown in the Company’s
records. By a notice given pursuant to this Section 4.2, either party may hereafter designate a different address for notices to be given to that party. Any notice which is required to be given to Participant shall, if Participant is then
deceased, be given to the person entitled to exercise his or her Option by written notice under this Section 4.2. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited
(with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service (or similar foreign body). 

4.3    Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation
or construction of this Agreement. 
 4.4    Submission to Jurisdiction; Waiver of Jury Trial. By
accepting this Option, Participant irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the courts of the state of California and of the United States of America, in each case located in the state of California, for
any action arising out of or relating to the Plan and this Option (and agrees not to commence any litigation relating thereto except in such courts), and further agrees that service of any process, summons, notice or document by U.S. registered mail
(or similar foreign equivalent) to the address contained in the records of the Company shall be effective service of process for any litigation brought against it in any such court. By accepting this Option, Participant irrevocably and
unconditionally waives any objection to the laying of venue of any litigation arising out of Plan or the Option in the courts of the state of California or the United States of America, in each case located in the state of California, and further
irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such litigation brought in any such court has been brought in an inconvenient forum. By accepting this Option, Participant irrevocably and
unconditionally waives, to the fullest extent permitted by applicable law, any and all rights to trial by jury in connection with any litigation arising out of or relating to the Plan or the Option. 

  
 A-4 

 4.5    Governing Law; Severability. This Agreement and the
Exercise Notice shall be administered, interpreted and enforced under the laws of the state of California, without regard to the conflicts of law principles thereof. Should any provision of this Agreement be determined by a court of law to be
illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable. 

4.6    Conformity to Securities Laws. Participant acknowledges that the Plan is intended to conform to the extent
necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and foreign and state securities laws and regulations. Notwithstanding
anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by Applicable Laws, the Plan and this
Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 

4.7    Successors and Assigns. The Company may assign any of its rights under this Agreement and the Exercise
Notice to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Participant and his or
her heirs, executors, administrators, successors and assigns. 
 4.8    Entire Agreement. The Plan, the Grant
Notice, this Agreement (including all Exhibits hereto) and any written employment agreement (including an offer letter) between Participant and Participant’s employing or service entity providing for acceleration of vesting of equity awards
upon certain events constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company, Participant’s employing or service entity and Participant with respect to the subject
matter hereof. 
 4.9    Rules Particular To Specific Countries.  

(a)    Generally. Participant shall, if required by the Administrator, enter into an election with the
Company or a Subsidiary (in a form approved by the Company) under which any liability to the Company’s (or a Subsidiary’s) Tax Liability (as defined below), including, but not limited to, National Insurance Contributions
(“NICs”) and the Fringe Benefit Tax (“FBT”), is transferred to and met by Participant. For purposes of this Section 4.9, “Tax Liability” shall mean any and all liability
under applicable non-U.S. laws, rules, or regulations from any income tax, the Company’s (or a subsidiary’s) NICs, FBT, or similar liability under non-U.S.
laws, and Participant’s NICs, FBT, or similar liability that are attributable to: (A) the grant or exercise of, or any other benefit derived by Participant from the Option; (B) the acquisition by Participant of the Shares on exercise
of the Option; or (C) the disposal of any Shares acquired upon exercise of the Option. 
 (b)    Tax
Indemnity. Participant shall indemnify and keep indemnified the Company and any of its Subsidiaries from and against any Tax Liability. 

4.10    Consent to Personal Data Processing and Transfer. By acceptance of this Option, Participant
acknowledges and consents to the collection, use, processing and transfer of 

  
 A-5 

 
personal data as described below. The Company, its parents, its Subsidiaries and Participant’s employer (all together, the “Company Entities”), hold certain personal
information, including Participant’s name, home address and telephone number, date of birth, social security number or other employee tax identification number, employment history and status, salary, nationality, job title, and any equity
compensation grants or Shares awarded, cancelled, purchased, vested, unvested or outstanding in Participant’s favor, for the purpose of managing and administering the Plan (“Data”). The Company Entities will transfer
Data to any third parties assisting the Company in the implementation, administration and management of the Plan. The Company Entities may also make the Data available to public authorities where required under locally applicable law. These
recipients may be located in Participant’s country or elsewhere, which Participant separately and expressly consents to, accepting that outside Participant’s location, data protection laws may not be as protective as within. Such third
parties are currently assisting the Company in the implementation, administration and management of the Plan. From time to time and without notice, the Company Entities may retain additional or different third parties for any of the purposes
mentioned. Participant hereby authorizes the Company Entities and all such third parties to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing participation
in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan on behalf of Participant to a third party with whom Participant may have elected to have payment made pursuant to the Plan. Participant
may, at any time, review Data, require any necessary amendments to it or withdraw the consent herein in writing by contacting the Company through its local H.R. Director; however, withdrawing the consent may affect Participant’s ability to
participate in the Plan and receive the benefits intended by this Option. Data will only be held as long as necessary to implement, administer and manage Participant’s participation in the Plan and any subsequent claims or rights. 

If Participant resides in the UK or the European Union, the Company Entities will hold, collect and otherwise process certain data as set out in the
applicable Company’s GDPR-compliant data privacy notice, which will be or has been provided to you separately. All personal data will be treated in accordance with applicable data protection laws and regulations. 

4.11    Special Provisions for Options Granted to Participants Outside the U.S. If Participant performs
services for the Company outside of the United States, this Option shall be subject to the special provisions, if any, for Participant’s country of residence, as set forth in the Non-U.S. Provisions. If
Participant relocates to one of the countries included in the Non-U.S. Provisions during the life of this Option, the special provisions for such country shall apply to Participant, to the extent the Company
determines that the application of such provisions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Company reserves the right to impose other requirements on this Option and the Shares
purchased upon exercise of this Option, to the extent the Company determines it is necessary or advisable in order to comply with local laws or facilitate the administration of the Plan, and to require Participant to sign any additional agreements
or undertakings that may be necessary to accomplish the foregoing. 
 4.12    Acknowledgment of Nature of Plan and
Option. In accepting this Option, Participant acknowledges that: 

  
 A-6 

 (a)    for labor law purposes, the Option and the Shares subject to the
Option are an extraordinary item that does not constitute wages of any kind for services of any kind rendered to the Company or to Participant’s service entity, and the award of the Option is outside the scope of Participant’s service
contract, if any; 
 (b)    for labor law purposes, the Option and the Shares subject to the Option are not part of
normal or expected wages or salary for any purposes, including, but not limited to, calculation of any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, holiday pay, long-service awards, pension or
retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the employer, its parent, or any subsidiary or affiliate of the Company; 

(c)    the Option and the Shares subject to the Option are not intended to replace any pension rights or compensation;

 (d)    neither the Option nor any provision of this Agreement, the Plan or the policies adopted pursuant to the Plan
confer upon Participant any right with respect to service or continuation of current service and shall not be interpreted to form a service contract or relationship with the Company or any subsidiary or affiliate; 

(e)    the future value of the underlying Shares is unknown and cannot be predicted with certainty; 

(f)    if the underlying Shares do not increase in value, the Option will have no value; and 

(g)    if Participant exercises the Option and acquires Shares, the value of the Shares acquired upon exercise may
increase or decrease in value, even below the exercise price of the Option. 
 * * * * * 

  
 A-7 

 EXHIBIT A-1 

TO STOCK OPTION AGREEMENT 

Special Provisions for Options for Participants Outside the U.S. 

This Exhibit A-1 (this “Appendix”) includes special terms and conditions applicable to
Participants in the countries below. These terms and conditions are in addition to those set forth in the Stock Option Agreement (the “Agreement”) and the Plan and to the extent there are any inconsistencies between these
terms and conditions and those set forth in the Agreement, these terms and conditions shall prevail. Any capitalized term used in this Exhibit A-1 without definition shall have the meaning ascribed to
such term in the Plan or the Agreement, as applicable. 
 This Appendix also includes information relating to exchange control and other issues of which
Participant should be aware with respect to his/her participation in the Plan. The information is based on the exchange control, securities and other laws in effect in the respective countries as of April 2020. Such laws are often complex and change
frequently. As a result, the Company strongly recommends that Participant not rely on the information herein as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at
the time the Option is exercised or Shares acquired under the Plan are sold. 
 In addition, the information is general in nature and may not apply to the
particular situation of Participant, and the Company is not in a position to assure Participant of any particular result. Accordingly, Participant is advised to seek appropriate professional advice as to how the relevant laws in his/her country may
apply to his/her situation. Finally, if Participant is a citizen or resident of a country other than the one in which he or she is currently working, the information contained herein may not be applicable to Participant. 

BELGIUM 
 The following section is added as
Section 4.13 of the Agreement: 
 4.13    Special Terms and Conditions for Belgium. The following shall only
apply if Participant is based in Belgium: 
 (a) Tax Considerations. The Option must be accepted within sixty (60) days from
receipt of this Agreement. Participant should also consult a personal tax advisor with respect to accepting the Option and completing the additional forms. 

(b) Tax Reporting Information. Participant is required to report any taxable income attributable to the Option on his or her annual tax
return. Participant is required to report any security or bank account (including brokerage accounts) he or she maintains outside of Belgium on his or her annual tax return. 

* * * * * 

  
 A-1-1 

 EXHIBIT B 

TO STOCK OPTION GRANT NOTICE 

Form of Exercise Notice 
 Effective as of
today,             ,        , the undersigned (“Participant”) hereby elects to exercise Participant’s option to
purchase Shares of Aligos Therapeutics, Inc. (the “Company”) under and pursuant to the Company’s 2018 Equity Incentive Plan (the “Plan”) and the Stock Option Grant Notice and Stock
Option Agreement dated             ,        , (the “Option Agreement”). Capitalized terms used herein without definition
shall have the meanings given in the Option Agreement. 
  

			
	Grant Date:	  	                                      
                                         
                                       
		
	Number of Shares as to which Option is Exercised:	  	                                      
                                         
                                       
		
	Exercise Price per Share:	  	$                    
		
	Total Exercise Price:	  	$                    
		
	Certificate to be issued or book entry to be made in name of:	  	  

		
	Cash Payment delivered herewith:	  	$                     (representing the full Exercise Price for the Shares, as well as any applicable withholding
tax)

 Type of Option:     ☐ Incentive Stock Option ☐
Non-Qualified Stock Option 
 1.    Representations of Participant.
Participant acknowledges that Participant has received, read and understood the Plan, the Grant Notice and the Option Agreement (including all attachments and exhibits thereto, if applicable). Participant agrees to abide by and be bound by their
terms and conditions. To the extent the Shares are issued in uncertificated form, Participant also acknowledges and agrees that this Exercise Notice constitutes the notice required by Section 151(f) of the Delaware General Corporation Law. 

2.    Tax Consultation. Participant understands that Participant may suffer adverse tax consequences as a result of
Participant’s purchase or disposition of the Shares. Participant represents that Participant has consulted with any tax consultants Participant deems advisable in connection with the purchase or disposition of the Shares and that Participant is
not relying on the Company for any tax advice. Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. Participant understands that Participant (and not the Company) shall be
responsible for Participant’s tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. 

3.    Restrictive Legends and Stop-Transfer Orders. 

3.1    Legends. Participant understands and agrees that the Company shall cause any certificates issued evidencing
the Shares to have the legends set forth below or legends 

  
 B-1 

 
substantially equivalent thereto, together with any other legends that may be required by foreign, state or federal securities laws: 

THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“ACT”), NOR HAVE THEY BEEN
REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. NO TRANSFER OF SUCH SECURITIES WILL BE PERMITTED UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER, THE TRANSFER IS MADE IN ACCORDANCE WITH RULE 144 UNDER
THE ACT OR REGULATION S UNDER THE ACT (AS APPLICABLE), OR IN THE OPINION OF COUNSEL (WHICH MAY BE COUNSEL FOR THE COMPANY) REGISTRATION UNDER THE ACT IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT AND WITH APPLICABLE STATE
SECURITIES LAWS. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL
HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE PLAN PURSUANT TO WHICH THESE SHARES WERE ISSUED, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON
TRANSFEREES OF THESE SHARES. 
 3.2    Participant agrees that, in order to ensure compliance with the restrictions
referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own
records. 
 3.3    The Company shall not be required (i) to transfer on its books any Shares that have been sold or
otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred. 
 3.4    To the extent the Shares are issued in uncertificated form, this Section 3 provides
Participant with notice that the Shares are subject to the aforementioned restrictions in satisfaction of the notice requirement set forth in Section 151(f) of the Delaware General Corporation Law. 

4.    Notices. Any notice required or permitted hereunder shall be given in accordance with the provisions set
forth in Section 4.2 of the Option Agreement. 
 5.    Lock-Up
Period. Participant shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of,
directly or indirectly, any Common 

  
 B-2 

 
Stock (or other securities) of the Company or enter into any swap, hedging or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of
any Common Stock (or other securities) of the Company held by Participant (other than those included in the registration) for a period specified by the representative of the underwriters of Common Stock (or other securities) of the Company not to
exceed 180 days following the effective date of any registration statement of the Company filed under the Securities Act (or such other period as may be requested by the Company or the underwriters to accommodate regulatory restrictions on
(i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2241, or any successor provisions or amendments thereto).

 Participant agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter which are consistent
with the foregoing or which are necessary to give further effect thereto. In addition, if requested by the Company or the representative of the underwriters of Common Stock (or other securities) of the Company, Participant shall provide, within ten
days of such request, such information as may be required by the Company or such representative in connection with the completion of any public offering of the Company’s securities pursuant to a registration statement filed under the Securities
Act. The obligations described in this Section 5 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar
forms that may be promulgated in the future, or a registration relating solely to a Securities and Exchange Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future.
The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of the 180 day (or other) period. Participant agrees that any transferee of the
Option or shares acquired pursuant to the Option shall be bound by this Section 5. 
 6.    Further
Instruments. Participant hereby agrees to execute such further instruments, including, without limitation, the Investment Representation Statement in the form attached hereto as Exhibit B-1, and to
take such further action as the Company determines are reasonably necessary to carry out the purposes and intent of this Agreement. 

7.    Entire Agreement. The Plan, the Grant Notice, the Investment Representation Statement in the form attached
hereto as Exhibit B-1, the Option Agreement (including all attachments and exhibits thereto, if applicable) and any written employment agreement (including an offer letter) between Participant and
Participant’s employing or service entity providing for acceleration of vesting of equity awards upon certain events are incorporated herein by reference. This Agreement, the Grant Notice, the Plan, the Investment Representation Statement in
the form attached hereto as Exhibit B-1, the Option Agreement (including all attachments and exhibits thereto, if applicable) and any written employment agreement (including an offer letter) between
Participant and Participant’s employing or service entity providing for acceleration of vesting of equity awards upon certain events constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and
agreements of the Company and Participant with respect to the subject matter hereof. 
  

			
	ACCEPTED BY: 
ALIGOS THERAPEUTICS, INC.	  	SUBMITTED BY
PARTICIPANT:

  
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 B-4 

 EXHIBIT B-1 

TO EXERCISE NOTICE 

Investment Representation Statement 

PARTICIPANT:     

COMPANY      :         Aligos Therapeutics, Inc. 

SECURITY      :         Common Stock 

AMOUNT        : 

DATE               : 

In connection with the purchase of the above-listed shares of Common Stock (the “Securities”) of Aligos Therapeutics, Inc. (the
“Company”), the undersigned (“Participant”) represents to the Company the following: 

1.    Participant is aware of the Company’s business affairs and financial condition and has acquired sufficient
information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Participant is acquiring these Securities for investment for Participant’s own account only and not with a view to, or for resale in
connection with, any “distribution” thereof within the meaning of the United States Securities Act of 1933, as amended (the “Securities Act”). 

2.    Participant acknowledges and understands that the Securities constitute “restricted securities” under the
Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Participant’s investment intent as expressed herein.
In this connection, Participant understands that, in the view of the United States Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Participant’s representation was predicated solely upon a
present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other
fixed period in the future. Participant further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Participant further
acknowledges and understands that the Company is under no obligation to register the Securities. Participant understands that any certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities
unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company and any other legend required under applicable securities laws or agreements. 

3.    Participant is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the
Securities Act, which, in substance, permit limited public resale of 

  
 B-1-1 

 
“restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain
conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to Participant, the exercise will be exempt from registration under the Securities Act. In the event the Company becomes
subject to the reporting requirements of Section 13 or 15(d) of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), 90 days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may under present law be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including:
(1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as such term is defined under the Exchange Act); and, in the case of an affiliate,
(2) the availability of certain public information about the Company, (3) the amount of Securities being sold during any three-month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a
Form 144, if applicable. 
 In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may
be resold in certain limited circumstances subject to the provisions of Rule 144, which, effective as of February 15, 2008, requires the resale to occur not less than six months, or, in the event the Company is not subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, not less than one year, after the later of the date the Securities were sold by the Company or the date the Securities were sold by an affiliate of the Company, within the
meaning of Rule 144; and, in the case of acquisition of the Securities by an affiliate, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above or, in the case of a non-affiliate who subsequently hold the Securities less than one year, the satisfaction of the conditions set forth in section (2) of the paragraph immediately above. 

4.    Participant further understands that in the event all of the applicable requirements of Rule 701 or 144 are not
satisfied, registration under the Securities Act, compliance with Regulation A, Regulation S, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the United
States Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of
proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Participant understands that no
assurances can be given that any such other registration exemption will be available in such event. 
 5.    If
Participant is not a U.S. person as defined in Rule 902 under the Securities Act, Participant understands that the issuance of the Securities may be made in reliance upon Participant’s representation to the Company, and by execution of this
Investment Representation Statement, Participant hereby confirms, that: (i) Participant is not a U.S. person as such term is defined in Rule 902 under the Securities Act; (ii) the Securities will be acquired for investment for
Participant’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof in the United States or to a United States resident, and that such Participant has no present intention of selling,
granting any participation in, or otherwise 

  
 B-1-2 

 
distributing the same; and (iii) Participant agrees to resell the Securities only in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or
pursuant to an available exemption from registration, and agrees not to engage in hedging transactions with regard to the Securities unless in compliance with the Securities Act. By executing this Investment Representation Statement, Participant
further represents that Participant does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person in the United States or to a United States
resident, with respect to any of the Securities. If Participant is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Participant hereby represents that he/she has satisfied
himself/herself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities, including (i) the legal requirements within its jurisdiction for the purchase of the Securities,
(ii) any foreign exchange restrictions applicable to such purchase, (iii) any government or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase,
holding, redemption, sale or transfer of the Securities. Participant’s subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of Participant’s
jurisdiction. 
  

	
	Signature of Participant:
	
	   

	
	Date:                                 ,  
           

  
 B-1-3EX-10.2

 Exhibit 10.2 
  

 
 TARSUS PHARMACEUTICALS,
INC. 
 2016 STOCK PLAN 

ADOPTED ON DECEMBER 14, 2016 

 TABLE OF CONTENTS 

 

					
		 		  	Page
	 SECTION 1.
	 	 ESTABLISHMENT AND PURPOSE
	  	1
			
	 SECTION 2.
	 	 ADMINISTRATION
	  	1
	 (a)
	 	 Committees of the Board of Directors
	  	1
	 (b)
	 	 Authority of the Board of Directors
	  	1
			
	 SECTION 3.
	 	 ELIGIBILITY
	  	1
	 (a)
	 	 General Rule
	  	1
	 (b)
	 	 Ten—Percent Stockholders
	  	1
			
	 SECTION 4.
	 	 STOCK SUBJECT TO PLAN
	  	2
	 (a)
	 	 Basic Limitation
	  	2
	 (b)
	 	 Additional Shares
	  	2
			
	 SECTION 5.
	 	 TERMS AND CONDITIONS OF AWARDS OR SALES
	  	2
	 (a)
	 	 Stock Grant or Purchase Agreement
	  	2
	 (b)
	 	 Duration of Offers and Nontransferability of Rights
	  	2
	 (c)
	 	 Purchase Price
	  	2
			
	 SECTION 6.
	 	 TERMS AND CONDITIONS OF OPTIONS
	  	2
	 (a)
	 	 Stock Option Agreement
	  	2
	 (b)
	 	 Number of Shares
	  	3
	 (c)
	 	 Exercise Price
	  	3
	 (d)
	 	 Exercisability
	  	3
	 (e)
	 	 Basic Term
	  	3
	 (f)
	 	 Termination of Service (Except by Death)
	  	3
	 (g)
	 	 Leaves of Absence
	  	4
	 (h)
	 	 Death of Optionee
	  	4
	 (i)
	 	 Restrictions on Transfer of Options
	  	4
	 (j)
	 	 No Rights as a Stockholder
	  	4
	 (k)
	 	 Modification, Extension and Assumption of Options
	  	4
	 (l)
	 	 Company’s Right to Cancel Certain Options
	  	4
			
	 SECTION 7.
	 	 PAYMENT FOR SHARES
	  	5
	 (a)
	 	 General Rule
	  	5
	 (b)
	 	 Services Rendered
	  	5
	 (c)
	 	 Promissory Note
	  	5
	 (d)
	 	 Surrender of Stock
	  	5
	 (e)
	 	 Exercise/Sale
	  	5
	 (f)
	 	 Net Exercise
	  	5
	 (g)
	 	 Other Forms of Payment
	  	5
			
	 SECTION 8.
	 	 ADJUSTMENT OF SHARES
	  	6
	 (a)
	 	 General
	  	6

  
 i 

							
	 (b)
	 	 Corporate Transactions
	  	 	6	 
	 (c)
	 	 Reservation of Rights
	  	 	7	 
			
	 SECTION 9.
	 	 MISCELLANEOUS PROVISIONS
	  	 	7	 
	 (a)
	 	 Securities Law Requirements
	  	 	7	 
	 (b)
	 	 No Retention Rights
	  	 	7	 
	 (c)
	 	 Treatment as Compensation
	  	 	8	 
	 (d)
	 	 Governing Law
	  	 	8	 
	 (e)
	 	 Conditions and Restrictions on Shares
	  	 	8	 
	 (f)
	 	 Tax Matters
	  	 	8	 
			
	 SECTION 10.
	 	 DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL
	  	 	9	 
	 (a)
	 	 Term of the Plan
	  	 	9	 
	 (b)
	 	 Right to Amend or Terminate the Plan
	  	 	9	 
	 (c)
	 	 Effect of Amendment or Termination
	  	 	9	 
	 (d)
	 	 Stockholder Approval
	  	 	9	 
			
	 SECTION 11.
	 	 DEFINITIONS
	  	 	9	 

  
 ii 

 TARSUS PHARMACEUTICALS, INC. 2016
STOCK PLAN 
 SECTION 1.     ESTABLISHMENT AND PURPOSE. 

The purpose of this Plan is to offer persons selected by the Company an opportunity to acquire a proprietary interest in the
success of the Company, or to increase such interest, by acquiring Shares of the Company’s Stock. The Plan provides both for the direct award or sale of Shares and for the grant of Options to purchase Shares. Options granted under the Plan may
be ISOs intended to qualify under Code Section 422 or NSOs which are not intended to so qualify. 
 Capitalized terms
are defined in Section 11. 
 SECTION 2.     ADMINISTRATION. 

(a)        Committees of the Board of Directors. The Plan may be
administered by one or more Committees. Each Committee shall consist, as required by applicable law, of one or more members of the Board of Directors who have been appointed by the Board of Directors. Each Committee shall have such authority and be
responsible for such functions as the Board of Directors has assigned to it. If no Committee has been appointed, the entire Board of Directors shall administer the Plan. Any reference to the Board of Directors in the Plan shall be construed as a
reference to the Committee (if any) to whom the Board of Directors has assigned a particular function. 

(b)        Authority of the Board of Directors. Subject to the provisions of the Plan,
the Board of Directors shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan. Notwithstanding anything to the contrary in the Plan, with respect to the terms and conditions of
awards granted to Participants outside the United States, the Board of Directors may vary from the provisions of the Plan to the extent it determines it necessary and appropriate to do so; provided that it may not vary from those Plan terms
requiring stockholder approval pursuant to Section 10(d) below. All decisions, interpretations and other actions of the Board of Directors shall be final and binding on all Purchasers, all Optionees and all persons deriving their rights from a
Purchaser or Optionee. 
 SECTION 3.     ELIGIBILITY. 

(a)        General Rule. Only Employees, Outside Directors and Consultants shall be
eligible for the grant of NSOs or the direct award or sale of Shares.1 Only Employees shall be eligible for the grant of ISOs. 

(b)        Ten-Percent Stockholders. A person
who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries shall not be eligible for the grant of an ISO unless (i) the Exercise Price is at least 110% of
the Fair Market Value of a Share on the Date of Grant and (ii) such ISO by its terms is not exercisable after the expiration of five years from the Date of Grant. For purposes of this Subsection (b), in determining stock ownership, the
attribution rules of Code Section 424(d) shall be applied. 
  

	1 	 Note that special considerations apply if the Company proposes to grant awards to an Employee or Consultant
of a Parent company. 

  
 1 

 SECTION 4.    STOCK SUBJECT TO PLAN. 

(a)        Basic Limitation. Not more than 1,960,000 Shares may be issued under the
Plan, subject to Subsection (b) below and Section 8(a).2 All of these Shares may be issued upon the exercise of ISOs. The number of Shares that are subject to Options or other rights
outstanding at any time under the Plan may not exceed the number of Shares that then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy
the requirements of the Plan. Shares offered under the Plan may be authorized but unissued Shares or treasury Shares. 

(b)        Additional Shares. In the event that Shares previously issued under the
Plan are reacquired by the Company, such Shares shall be added to the number of Shares then available for issuance under the Plan. In the event that Shares that otherwise would have been issuable under the Plan are withheld by the Company in payment
of the Purchase Price, Exercise Price or withholding taxes, such Shares shall remain available for issuance under the Plan. In the event that an outstanding Option or other right for any reason expires or is canceled, the Shares allocable to the
unexercised portion of such Option or other right shall be added to the number of Shares then available for issuance under the Plan. 
 SECTION 5.
    TERMS AND CONDITIONS OF AWARDS OR SALES. 

(a)        Stock Grant or Purchase Agreement. Each award of Shares under the Plan
shall be evidenced by a Stock Grant Agreement between the Grantee and the Company. Each sale of Shares under the Plan (other than upon exercise of an Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser and the Company.
Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in
a Stock Grant Agreement or Stock Purchase Agreement. The provisions of the various Stock Grant Agreements and Stock Purchase Agreements entered into under the Plan need not be identical. 

(b)        Duration of Offers and Nontransferability of Rights. Any right to purchase
Shares under the Plan (other than an Option) shall automatically expire if not exercised by the Purchaser within 30 days (or such other period as may be specified in the Award Agreement) after the grant of such right was communicated to the
Purchaser by the Company. Such right is not transferable and may be exercised only by the Purchaser to whom such right was granted. 

(c)        Purchase Price. The Board of Directors shall determine the Purchase Price
of Shares to be offered under the Plan at its sole discretion. The Purchase Price shall be payable in a form described in Section 7. 

SECTION 6.     TERMS AND CONDITIONS OF OPTIONS. 

(a)        Stock Option Agreement. Each grant of an
Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. The Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are
not inconsistent with the Plan and that the Board of Directors deems appropriate for inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 

 
  

	2 	 Please refer to Exhibit A for a schedule of the initial share reserve and any subsequent increases in the
reserve. 

  
 2 

 (b)        Number of Shares. Each Stock
Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or
an NSO. 
 (c)        Exercise Price. Each Stock Option Agreement shall specify the
Exercise Price. The Exercise Price of an Option shall not be less than 100% of the Fair Market Value of a Share on the Date of Grant, and in the case of an ISO a higher percentage may be required by Section 3(b). Subject to the preceding
sentence, the Exercise Price shall be determined by the Board of Directors at its sole discretion. The Exercise Price shall be payable in a form described in Section 7. This Subsection (c) shall not apply to an Option granted pursuant to
an assumption of, or substitution for, another option in a manner that complies with Code Section 424(a) (whether or not the Option is an ISO). 

(d)        Exercisability. Each Stock Option Agreement shall specify the date when all
or any installment of the Option is to become exercisable. No Option shall be exercisable unless the Optionee (i) has delivered an executed copy of the Stock Option Agreement to the Company or (ii) otherwise agrees to be bound by the terms
of the Stock Option Agreement. The Board of Directors shall determine the exercisability provisions of the Stock Option Agreement at its sole discretion. (e) Basic Term. The Stock Option Agreement shall specify the term of the Option. The term
shall not exceed 10 years from the Date of Grant, and in the case of an ISO, a shorter term may be required by Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to
expire. 
 (f)        Termination of Service (Except by Death). If an
Optionee’s Service terminates for any reason other than the Optionee’s death, then the Optionee’s Options shall expire on the earliest of the following dates: 

(i)        The expiration date determined pursuant to
Subsection (e) above; 
 (ii)        The date three months
after the termination of the Optionee’s Service for any reason other than Disability, or such earlier or later date as the Board of Directors may determine (but in no event earlier than 30 days after the termination of the Optionee’s
Service); or 
 (iii)        The date six months after the
termination of the Optionee’s Service by reason of Disability, or such later date as the Board of Directors may determine. 
 The
Optionee may exercise all or part of the Optionee’s Options at any time before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become exercisable before the Optionee’s Service
terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination). The balance of such Options shall lapse when the
Optionee’s Service terminates. In the event that the Optionee dies after the termination of the Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options may be exercised (prior to expiration)
by the executors or administrators of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become
exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination). 

  
 3 

 (g)        Leaves of Absence. For
purposes of Subsection (f) above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the Company in writing and if continued crediting of Service for this purpose is
expressly required by the terms of such leave or by applicable law (as determined by the Company). 

(h)        Death of Optionee. If an Optionee dies while the Optionee is in Service,
then the Optionee’s Options shall expire on the earlier of the following dates: 

(i)        The expiration date determined pursuant to
Subsection (e) above; or 
 (ii)        The date 12 months
after the Optionee’s death, or such earlier or later date as the Board of Directors may determine (but in no event earlier than six months after the Optionee’s death). 

All or part of the Optionee’s Options may be exercised at any time before the expiration of such Options under the preceding sentence by
the executors or administrators of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become
exercisable before the Optionee’s death (or became exercisable as a result of the death) and the underlying Shares had vested before the Optionee’s death (or vested as a result of the Optionee’s death). The balance of such Options
shall lapse when the Optionee dies. 
 (i)        Restrictions on Transfer of
Options. An Option shall be transferable by the Optionee only by (i) a beneficiary designation, (ii) a will or (iii) the laws of descent and distribution, except as provided in the next sentence. If the applicable Stock Option
Agreement so provides, an NSO shall also be transferable by gift or domestic relations order to a Family Member of the Optionee. An ISO may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or
legal representative. 
 (j)        No Rights as a Stockholder. An Optionee, or a
transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such person files a notice of exercise, pays the Exercise Price and satisfies all applicable withholding taxes
pursuant to the terms of such Option. 
 (k)        Modification, Extension and
Assumption of Options. Within the limitations of the Plan, the Board of Directors may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for
the grant of new Options or a different type of award for the same or a different number of Shares and at the same or a different Exercise Price (if applicable). The foregoing notwithstanding, no modification of an Option shall, without the consent
of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such Option. 

(l)        Company’s Right to Cancel Certain Options. Any
other provision of the Plan or a Stock Option Agreement notwithstanding, the Company shall have the right at any time to cancel an Option that was not granted in compliance with Rule 701 under the Securities Act. Prior to canceling such Option,
the Company shall give the Optionee not less than 30 days’ notice in writing. If the Company elects to cancel such Option, it shall deliver to the Optionee consideration with an aggregate Fair Market Value equal to the excess of (i) the
Fair Market Value of the Shares subject to such Option as of the time of the cancellation over (ii) the Exercise Price of such Option. The consideration may be delivered in the form of cash or cash equivalents, in the form of Shares, or a
combination of both. If the consideration would be a negative amount, such Option may be cancelled without the delivery of any consideration. 

  
 4 

 SECTION 7.    PAYMENT FOR SHARES. 

(a)        General Rule. The entire Purchase Price or Exercise Price of Shares issued
under the Plan shall be payable in cash or cash equivalents at the time when such Shares are purchased, except as otherwise provided in this Section 7. In addition, the Board of Directors in its sole discretion may also permit payment through
any of the methods described in (b) through (g) below. 
 (b)        Services
Rendered. Shares may be awarded under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior to the award. 

(c)        Promissory Note. All or a portion of the Purchase Price or Exercise Price
(as the case may be) of Shares issued under the Plan may be paid with a full-recourse promissory note. The Shares shall be pledged as security for payment of the principal amount of the promissory note and interest thereon. The interest rate payable
under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the imputation of additional interest under the Code. Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify
the term, interest rate, amortization requirements (if any) and other provisions of such note. 

(d)        Surrender of Stock. All or any part of the Exercise Price may be paid by
surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value as of the date when the Option is
exercised. 
 (e)        Exercise/Sale. If the Stock is publicly traded, all or part
of the Exercise Price and any withholding taxes may be paid by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales
proceeds to the Company. 
 (f)        Net Exercise. An Option
may permit exercise through a “net exercise” arrangement pursuant to which the Company will reduce the number of Shares issued upon exercise by the largest whole number of Shares having an aggregate Fair Market Value (determined by the
Board of Directors as of the exercise date) that does not exceed the aggregate Exercise Price or the sum of the aggregate Exercise Price plus all or a portion of the minimum amount required to be withheld under applicable tax law (with the Company
accepting from the Optionee payment of cash or cash equivalents to satisfy any remaining balance of the aggregate Exercise Price and, if applicable, any additional withholding obligation not satisfied through such reduction in Shares); provided that
to the extent Shares subject to an Option are withheld in this manner, the number of Shares subject to the Option following the net exercise will be reduced by the sum of the number of Shares withheld and the number of Shares delivered to the
Optionee as a result of the exercise. 
 (g)        Other Forms of Payment. To the
extent that an Award Agreement so provides, the Purchase Price or Exercise Price of Shares issued under the Plan may be paid in any other form permitted by the Delaware General Corporation Law, as amended. 

SECTION 8.    ADJUSTMENT OF SHARES. 

(a)        General. In the event of a subdivision of the outstanding Stock, a
declaration of a dividend payable in Shares, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a reclassification, or any other increase or decrease in the number of issued shares of Stock effected without
receipt of consideration by the Company, proportionate adjustments shall automatically be made in each of (i) the number and kind of Shares available for future grants under Section 4, (ii) the number and kind of Shares covered by
each outstanding Option and any outstanding and unexercised right to purchase Shares that has not yet expired pursuant to Section 5(b), (iii) the Exercise Price under each outstanding Option and the Purchase Price applicable to any
unexercised stock purchase right described in clause (ii) above, and (iv) any repurchase price that applies to Shares granted under the Plan pursuant to the terms of a Company repurchase right under the applicable Award Agreement. In the
event of a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a recapitalization, a spin-off, or a
similar occurrence, the Board of Directors at its sole discretion may make appropriate adjustments in one or more of the items listed in clauses (i) through (iv) above; provided, however, that the Board of Directors shall in any event make such
adjustments as may be required by Section 25102(o) of the California Corporations Code. No fractional Shares shall be issued under the Plan as a result of an adjustment under this Section 8(a), although the Board of Directors in its sole
discretion may make a cash payment in lieu of fractional Shares. 
  

  
 5 

 (b)        Corporate Transactions. In the
event that the Company is a party to a merger or consolidation, or in the event of a sale of all or substantially all of the Company’s stock or assets, all Shares acquired under the Plan and all Options and other Plan awards outstanding on the
effective date of the transaction shall be treated in the manner described in the definitive transaction agreement (or, in the event the transaction does not entail a definitive agreement to which the Company is party, in the manner determined by
the Board of Directors in its capacity as administrator of the Plan, with such determination having final and binding effect on all parties), which agreement or determination need not treat all Options and awards (or all portions of an Option or an
award) in an identical manner. The treatment specified in the transaction agreement or as determined by the Board of Directors may include (without limitation) one or more of the following with respect to each outstanding Option or award: 

(i)        Continuation of the Option or award by the Company (if the
Company is the surviving corporation). 
 (ii)        Assumption of
the Option by the surviving corporation or its parent in a manner that complies with Code Section 424(a) (whether or not the Option is an ISO). 

(iii)        Substitution by the surviving corporation or its parent
of a new option for the Option in a manner that complies with Code Section 424(a) (whether or not the Option is an ISO). 

(iv)        Cancellation of the Option and a payment to the Optionee
with respect to each Share subject to the portion of the Option that is vested as of the transaction date equal to the excess of (A) the value, as determined by the Board of Directors in its absolute discretion, of the property (including
cash) received by the holder of a share of Stock as a result of the transaction, over (B) the per-Share Exercise Price of the Option (such excess, the “Spread”). Such payment shall
be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent having a value equal to the Spread. In addition, any escrow, holdback, earn-out or similar
provisions in the transaction agreement may apply to such payment to the same extent and in the same manner as such provisions apply to the holders of Stock. If the Spread applicable to an Option is zero or a negative number, then the Option
may be cancelled without making a payment to the Optionee. 

  
 6 

 (v)        Cancellation
of the Option without the payment of any consideration; provided that the Optionee shall be notified of such treatment and given an opportunity to exercise the Option (to the extent the Option is vested or becomes vested as of the effective date of
the transaction) during a period of not less than five (5) business days preceding the effective date of the transaction, unless (A) a shorter period is required to permit a timely closing of the transaction and (B) such shorter
period still offers the Optionee a reasonable opportunity to exercise the Option. Any exercise of the Option during such period may be contingent upon the closing of the transaction. 

(vi)        Suspension of the Optionee’s right to exercise the
Option during a limited period of time preceding the closing of the transaction if such suspension is administratively necessary to permit the closing of the transaction. 

(vii)        Termination of any right the Optionee has to exercise the
Option prior to vesting in the Shares subject to the Option (i.e., “early exercise”), such that following the closing of the transaction the Option may only be exercised to the extent it is vested. 

For the avoidance of doubt, the Board of Directors has discretion to accelerate, in whole or part, the vesting and exercisability of an Option
or other Plan award in connection with a corporate transaction covered by this Section 8(b). 

(c)        Reservation of Rights. Except as provided in this Section 8, a
Participant shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of shares of stock of any
class. Any issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of
Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge
or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
 SECTION 9.
    MISCELLANEOUS PROVISIONS. 
 (a)        Securities
Law Requirements. Shares shall not be issued under the Plan unless, in the opinion of counsel acceptable to the Board of Directors, the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of law,
including (without limitation) the Securities Act, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities
may then be traded. The Company shall not be liable for a failure to issue Shares as a result of such requirements. 

(b)        No Retention Rights. Nothing in the Plan or in any right or
Option granted under the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing
or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause. 

  
 7 

 (c)        Treatment as
Compensation. Any compensation that an individual earns or is deemed to earn under this Plan shall not be considered a part of his or her compensation for purposes of calculating contributions, accruals or benefits under any other plan or
program that is maintained or funded by the Company, a Parent or a Subsidiary. 

(d)        Governing Law. The Plan and all awards, sales and grants under the Plan
shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State. 

(e)        Conditions and Restrictions on Shares. Shares issued under the Plan shall
be subject to such forfeiture conditions, rights of repurchase, rights of first refusal, other transfer restrictions and such other terms and conditions as the Board of Directors may determine. Such conditions and restrictions shall be set forth in
the applicable Award Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally. In addition, Shares issued under the Plan shall be subject to conditions and restrictions imposed either by applicable law
or by Company policy, as adopted from time to time, designed to ensure compliance with applicable law or laws with which the Company determines in its sole discretion to comply including in order to maintain any statutory, regulatory or tax
advantage. 
 (f)        Tax Matters. 

(i)        As a condition to the award, grant, issuance, vesting,
purchase, exercise or transfer of any award, or Shares issued pursuant to any award, granted under this Plan, the Participant shall make such arrangements as the Board of Directors may require or permit for the satisfaction of any federal, state,
local or foreign withholding tax obligations that may arise in connection with such event. 

(ii)        Unless otherwise expressly set forth in an Award
Agreement, it is intended that awards granted under the Plan shall be exempt from Code Section 409A, and any ambiguity in the terms of an Award Agreement and the Plan shall be interpreted consistently with this intent. To the extent an award is
not exempt from Code Section 409A (any such award, a “409A Award”), any ambiguity in the terms of such award and the Plan shall be interpreted in a manner that to the maximum extent permissible supports the award’s
compliance with the requirements of that statute. Notwithstanding anything to the contrary permitted under the Plan, in no event shall a modification of an Award not already subject to Code Section 409A be given effect if such modification
would cause the Award to become subject to Code Section 409A unless the parties explicitly acknowledge and consent to the modification as one having that effect. A 409A Award shall be subject to such additional rules and requirements as
specified by the Board of Directors from time to time in order for it to comply with the requirements of Code Section 409A. In this regard, if any amount under a 409A Award is payable upon a “separation from service” to an individual
who is considered a “specified employee” (as each term is defined under Code Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the Participant’s
separation from service or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such payment from being subject to Section 409A(a)(1). In addition, if a transaction subject to Section 8(b)
constitutes a payment event with respect to any 409A Award, then the transaction with respect to such award must also constitute a “change in control event” as defined in Treasury Regulation
Section 1.409A-3(i)(5) to the extent required by Code Section 409A. 

  
 8 

 (iii)        Neither the
Company nor any member of the Board of Directors shall have any liability to a Participant in the event an award held by the Participant fails to achieve its intended characterization under applicable tax law. 

SECTION 10.    DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL. 

(a)        Term of the Plan. The Plan, as set forth herein, shall become effective on
the date of its adoption by the Board of Directors, subject to approval of the Company’s stockholders under Subsection (d) below. The Plan shall terminate automatically 10 years after the later of (i) the date when the Board of
Directors adopted the Plan or (ii) the date when the Board of Directors approved the most recent increase in the number of Shares reserved under Section 4 that was also approved by the Company’s stockholders. The Plan may be
terminated on any earlier date pursuant to Subsection (b) below. 

(b)        Right to Amend or Terminate the Plan. Subject to Subsection (d) below,
the Board of Directors may amend, suspend or terminate the Plan at any time and for any reason. 

(c)        Effect of Amendment or Termination. No Shares shall be issued or sold and
no Option granted under the Plan after the termination thereof, except upon exercise of an Option (or any other right to purchase Shares) granted under the Plan prior to such termination. The termination of the Plan, or any amendment thereof, shall
not affect any Share previously issued or any Option previously granted under the Plan. 

(d)        Stockholder Approval. To the extent required by applicable law, the
Plan will be subject to approval of the Company’s stockholders within 12 months of its adoption date. To the extent required by applicable law, any amendment of the Plan will be subject to the approval of the Company’s stockholders within
12 months of the amendment date if it (i) increases the number of Shares available for issuance under the Plan (except as provided in Section 8), or (ii) materially changes the class of persons who are eligible for the grant of ISOs.
In addition, an amendment effecting any other material change to the Plan terms will be subject to approval of the Company’s stockholder only if required by applicable law. Stockholder approval shall not be required for any other amendment of
the Plan. 
 SECTION 11.     DEFINITIONS. 

(a)        “Award Agreement” means a Stock Grant Agreement, Stock
Option Agreement or Stock Purchase Agreement. 
 (b)        “Board of
Directors” means the Board of Directors of the Company, as constituted from time to time. 

(c)        “Code” means the Internal Revenue Code of 1986, as
amended. 
 (d)        “Committee” means a committee of the Board
of Directors, as described in Section 2(a). 

(e)        “Company” means Tarsus Pharmaceuticals, Inc., a Delaware
corporation. 

  
 9 

 (f)        “Consultant”
means a person, excluding Employees and Outside Directors, who performs bona fide services for the Company, a Parent3 or a Subsidiary as a consultant or advisor and who qualifies as a
consultant or advisor under Rule 701(c)(1) of the Securities Act or under Instruction A.1.(a)(1) of Form S-8 under the Securities Act. 

(g)        “Date of Grant” means the date of grant specified in the
applicable Stock Option Agreement, which date shall be the later of (i) the date on which the Board of Directors resolved to grant the Option or (ii) the first day of the Optionee’s Service. 

(h)        “Disability” means that the Optionee is unable to engage
in any substantial gainful activity by reason of any medically determinable physical or mental impairment. 

(i)        “Employee” means any individual who is a common-law employee of the Company, a Parent4 or a Subsidiary. 

(j)        “Exchange Act” means the Securities Exchange Act of 1934,
as amended. 
 (k)        “Exercise Price” means the amount for
which one Share may be purchased upon exercise of an Option, as specified by the Board of Directors in the applicable Stock Option Agreement. 

(l)        “Fair Market Value” means the fair market value of a
Share, as determined by the Board of Directors in good faith. Such determination shall be conclusive and binding on all persons. 

(m)        “Family Member” means (i) any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, (ii) any person sharing
the Optionee’s household (other than a tenant or employee), (iii) a trust in which persons described in Clause (i) or (ii) have more than 50% of the beneficial interest, (iv) a foundation in which persons described in
Clause (i) or (ii) or the Optionee control the management of assets and (v) any other entity in which persons described in Clause (i) or (ii) or the Optionee own more than 50% of the voting interests. 

(n)        “Grantee” means a person to whom the Board of Directors
has awarded Shares under the Plan. 
 (o)        “ISO” means an
Option that qualifies as an incentive stock option as described in Code Section 422(b). Notwithstanding its designation as an ISO, an Option that does not qualify as an ISO under applicable law shall be treated for all purposes as an NSO. 

(p)        “NSO” means an Option that does not qualify as an
incentive stock option as described in Code Section 422(b) or 423(b). 

(q)        “Option” means an ISO or NSO granted under the Plan and
entitling the holder to purchase Shares. 
 (r)        “Optionee”
means a person who holds an Option. 
  
  

3 Note that special considerations apply if the Company proposes to grant awards to
consultant or advisor of a Parent company. 
 4 Note that special considerations apply
if the Company proposes to grant awards to an Employee of a Parent company. 

  
 10 

 (s)        “Outside
Director” means a member of the Board of Directors who is not an Employee. 

(t)        “Parent” means any corporation (other than the Company) in
an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such
chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 

(u)        “Participant” means a Grantee, Optionee or Purchaser. 

(v)        “Plan” means this Tarsus Pharmaceuticals, Inc. 2016 Stock
Plan. 
 (w)        “Purchase Price” means the consideration for
which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Board of Directors. 

(x)        “Purchaser” means a person to whom the Board of Directors
has offered the right to purchase Shares under the Plan (other than upon exercise of an Option). 

(y)        “Securities Act” means the Securities Act of 1933, as
amended. 
 (z)        “Service” means service as an Employee,
Outside Director or Consultant. 
 (aa)        “Share” means one
share of Stock, as adjusted in accordance with Section 8 (if applicable). 

(bb)        “Stock” means the Common Stock of the Company. 

(cc)        “Stock Grant Agreement” means the agreement between the
Company and a Grantee who is awarded Shares under the Plan that contains the terms, conditions and restrictions pertaining to the award of such Shares. 

(dd)        “Stock Option Agreement” means the agreement between the
Company and an Optionee that contains the terms, conditions and restrictions pertaining to the Optionee’s Option. 

(ee)        “Stock Purchase Agreement” means the agreement between
the Company and a Purchaser who purchases Shares under the Plan that contains the terms, conditions and restrictions pertaining to the purchase of such Shares. 

(ff)        “Subsidiary” means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 

  
 11 

 EXHIBIT A 

SCHEDULE OF SHARES RESERVED FOR ISSUANCE
UNDER THE PLAN 
  

							
	 Date of Board

Approval
	  	 Date of Stockholder

Approval
	  	 Number of

Shares Added
	  	 Cumulative Number of

Shares

	December 14, 2016	  	January 17, 2017	  	Not Applicable	  	1,960,000
	November 29, 2017	  	November 29, 2017	  	750,000	  	2,710,000
	March 26, 2018	  	March 26, 2018	  	1,687,000	  	4,397,000
	December 12, 2019	  	December 12, 2019	  	15,435,815	  	19,832,815

 SUMMARY OF MODIFICATIONS
AND AMENDMENTS TO THE PLAN 
 The following is a summary of
material modifications made to the Plan (including any material deviations from the Gunderson Dettmer precedent form used to create the Plan): 

  
 E-1 

 TARSUS PHARMACEUTICALS, INC. 2016
STOCK PLAN 
 NOTICE OF STOCK OPTION
GRANT (INSTALLMENT EXERCISE) 
 The Optionee has been granted the following option to
purchase shares of the Common Stock of Tarsus Pharmaceuticals, Inc.: 
  

			
		
	 Name of Optionee:
	  	«Name»
		
	 Total Number of Shares:
	  	«TotalShares»
		
	 Type of Option:
	  	«ISO»Incentive Stock Option (ISO)
		
	 	  	«NSO»Nonstatutory Stock Option (NSO)
		
	 Exercise Price per Share:
	  	$«PricePerShare»
		
	 Date of Grant:
	  	«DateGrant»
		
	 Date Exercisable:
	  	This option may be exercised with respect to the first «Percent»% of the Shares subject to this option when the Optionee completes «CliffPeriod» months of continuous Service beginning with the Vesting
Commencement Date set forth below. This option may be exercised with respect to an additional «Fraction»% of the Shares subject to this option when the Optionee completes each month of continuous Service thereafter.
		
	 Vesting Commencement Date:
	  	«VestComDate»
		
	 Expiration Date:
	  	«ExpDate». This option expires earlier if the Optionee’s Service terminates earlier, as provided in Section 6 of the Stock Option Agreement, or if the Company engages in certain corporate transactions, as
provided in Section 8(b) of the Plan.

 By signing below, the Optionee and the Company agree that this option is granted under, and governed by the
terms and conditions of, the 2016 Stock Plan and the Stock Option Agreement. Both of these documents are attached to, and made a part of, this Notice of Stock Option Grant. Section 13 of the Stock Option Agreement includes
important acknowledgements of the Optionee. 
  

					
		
	 OPTIONEE:
	  	 TARSUS PHARMACEUTICALS, INC.

			
	  	  	 By:
	  	  
	 	  	 Title:
	  	  

 THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE THEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
REGISTRATION IS NOT REQUIRED. 
 TARSUS PHARMACEUTICALS, INC. 2016 STOCK
PLAN: 
 STOCK OPTION AGREEMENT (INSTALLMENT
EXERCISE) 
 SECTION 1.    GRANT OF OPTION. 

(a)        Option. On the terms and conditions set forth in the Notice of
Stock Option Grant and this Agreement, the Company grants to the Optionee on the Date of Grant the option to purchase at the Exercise Price the number of Shares set forth in the Notice of Stock Option Grant. The Exercise Price is agreed to be at
least 100% of the Fair Market Value per Share on the Date of Grant (110% of Fair Market Value if this option is designated as an ISO in the Notice of Stock Option Grant and Section 3(b) of the Plan applies). This option is intended to be an ISO
or an NSO, as provided in the Notice of Stock Option Grant. 

(b)        $100,000 Limitation. Even if this option is designated as an ISO in
the Notice of Stock Option Grant, it shall be deemed to be an NSO to the extent (and only to the extent) required by the $100,000 annual limitation under Section 422(d) of the Code. 

(c)        Stock Plan and Defined Terms. This option is granted pursuant to the
Plan, a copy of which the Optionee acknowledges having received. The provisions of the Plan are incorporated into this Agreement by this reference. Except as otherwise defined in this Agreement (including without limitation Section 14 hereof),
capitalized terms shall have the meaning ascribed to such terms in the Plan. 
 SECTION 2.    RIGHT TO EXERCISE. 

(a)        Exercisability. Subject to Subsection (b) below and the other
conditions set forth in this Agreement, all or part of this option may be exercised prior to its expiration at the time or times set forth in the Notice of Stock Option Grant. 

(b)        Stockholder Approval. Any other provision of this Agreement
notwithstanding, no portion of this option shall be exercisable at any time prior to the approval of the Plan by the Company’s stockholders. 

SECTION 3.    NO TRANSFER OR ASSIGNMENT OF OPTION. 

Except as otherwise provided in this Agreement, this option and the rights and privileges conferred hereby shall not be sold,
pledged or otherwise transferred (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment, levy or similar process. 

 SECTION 4.    EXERCISE PROCEDURES. 

(a)        Notice of Exercise. The Optionee or the Optionee’s
representative may exercise this option by: (i) signing and delivering written notice to the Company pursuant to Section 12(c) specifying the election to exercise this option, the number of Shares for which it is being exercised and the
form of payment and (ii) delivering payment, in a form permissible under Section 5, for the full amount of the Purchase Price (together with any applicable withholding taxes under Subsection (b)). In the event that this option is being
exercised by the representative of the Optionee, the notice shall be accompanied by proof (satisfactory to the Company) of the representative’s right to exercise this option. 

(b)        Withholding Taxes. In the event that the Company determines that it
is required to withhold any tax (including without limitation any income tax, social insurance contributions, payroll tax, payment on account or other tax-related items arising in connection with the
Optionee’s participation in the Plan and legally applicable to the Optionee (the “Tax-Related Items”)) as a result of the grant, vesting or exercise of this option, or as a result of the
transfer of shares acquired upon exercise of this option, the Optionee, as a condition of this option, shall make arrangements satisfactory to the Company to enable it to satisfy all Tax-Related Items. The
Optionee acknowledges that the responsibility for all Tax-Related Items is the Optionee’s and may exceed the amount actually withheld by the Company (or its affiliate or agent). 

(c)        Issuance of Shares. After satisfying all requirements for exercise
of this option, the Company shall cause to be issued one or more certificates evidencing the Shares for which this option has been exercised. Such Shares shall be registered (i) in the name of the person exercising this option, (ii) in the
names of such person and his or her spouse as community property or as joint tenants with the right of survivorship or (iii) with the Company’s consent, in the name of a revocable trust. Until the issuance of the Shares has been entered
into the books and records of the Company or a duly authorized transfer agent of the Company, no right to vote, receive dividends or any other right as a stockholder will exist with respect to such Shares. The Company shall cause such certificates
to be delivered to or upon the order of the person exercising this option. 
 SECTION 5.    PAYMENT FOR STOCK. 

(a)        Cash. All or part of the Purchase Price may be paid in cash or cash
equivalents. 
 (b)        Surrender of Stock. At the discretion of the Board
of Directors, all or any part of the Purchase Price may be paid by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be
valued at their Fair Market Value as of the date when this option is exercised. 

(c)        Exercise/Sale. All or part of the Purchase Price and any withholding
taxes may be paid by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company. However, payment
pursuant to this Subsection (c) shall be permitted only if (i) Stock then is publicly traded and (ii) such payment does not violate applicable law. 

SECTION 6.    TERM AND EXPIRATION. 

(a)        Basic Term. This option shall in any event expire on the expiration
date set forth in the Notice of Stock Option Grant, which date is 10 years after the Date of Grant (five years after the Date of Grant if this option is designated as an ISO in the Notice of Stock Option Grant and Section 3(b) of the Plan
applies). 

  
 2 

 (b)        Termination of Service
(Except by Death). If the Optionee’s Service terminates for any reason other than death, then this option shall expire on the earliest of the following occasions: 

(i)        The expiration date determined pursuant to
Subsection (a) above; 
 (ii)        The date three months
after the termination of the Optionee’s Service for any reason other than Disability; or 

(iii)        The date six months after the termination of the
Optionee’s Service by reason of Disability. 
 The Optionee may exercise all or part of this option at any time before its expiration
under the preceding sentence, but only to the extent that this option had become exercisable before the Optionee’s Service terminated. When the Optionee’s Service terminates, this option shall expire immediately with respect to the number
of Shares for which this option is not yet exercisable. In the event that the Optionee dies after termination of Service but before the expiration of this option, all or part of this option may be exercised (prior to expiration) by the executors or
administrators of the Optionee’s estate or by any person who has acquired this option directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that this option had become exercisable before the
Optionee’s Service terminated. Once this option (or portion thereof) has terminated, the Optionee shall have no further rights with respect to the option (or portion thereof) or to the underlying Shares. 

(c)        Death of the Optionee. If the Optionee dies while in Service, then
this option shall expire on the earlier of the following dates: 

(i)        The expiration date determined pursuant to
Subsection (a) above; or 
 (ii)        The date 12 months after
the Optionee’s death. 
 All or part of this option may be exercised at any time before its expiration under the preceding sentence by
the executors or administrators of the Optionee’s estate or by any person who has acquired this option directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that this option had become exercisable
before the Optionee’s death. When the Optionee dies, this option shall expire immediately with respect to the number of Shares for which this option is not yet exercisable. Once this option (or portion thereof) has terminated, the Optionee
shall have no further rights with respect to the option (or portion thereof) or to the underlying Shares. 

(d)        Extension of Post-Termination Exercise Periods. Following the date
on which the Company’s Stock is first listed for trading on an established securities market, if during any part of the exercise period described in Subsections (b)(ii) or (iii) or Subsection (c)(ii) above the exercise of this option would
be prohibited solely because the issuance of Shares upon such exercise would violate the registration requirements under the Securities Act or a similar provision of other applicable law, then instead of terminating at the end of such prescribed
period, the then-vested portion of this option will instead remain outstanding and not expire until the earlier of (i) the expiration date determined pursuant to Section 6(a) above or (ii) the date on which the then-vested portion of
this option has been exercisable without violation of applicable law for the aggregate period (which need not be consecutive) after termination of the Optionee’s Service specified in the applicable Subsection above. 

  
 3 

 (e)        Part-Time Employment and
Leaves of Absence. If the Optionee commences working on a part-time basis, then the Company may adjust the vesting schedule set forth in the Notice of Stock Option Grant. If the Optionee goes on a leave of absence, then the Company may adjust
the vesting schedule set forth in the Notice of Stock Option Grant in accordance with the Company’s leave of absence policy or the terms of such leave. Except as provided in the preceding sentence, Service shall be deemed to continue for any
purpose under this Agreement while the Optionee is on a bona fide leave of absence, if (i) such leave was approved by the Company in writing and (ii) continued crediting of Service for such purpose is expressly required by the terms
of such leave or by applicable law (as determined by the Company). Service shall be deemed to terminate when such leave ends, unless the Optionee immediately returns to active work. 

(f)        Notice Concerning ISO Treatment. Even if this option is designated
as an ISO in the Notice of Stock Option Grant, it ceases to qualify for favorable tax treatment as an ISO to the extent that it is exercised: 

(i)        More than three months after the date when the Optionee
ceases to be an Employee for any reason other than death or permanent and total disability (as defined in Section 22(e)(3) of the Code); 

(ii)        More than 12 months after the date when the Optionee
ceases to be an Employee by reason of permanent and total disability (as defined in Section 22(e)(3) of the Code); or 

(iii)        More than three months after the date when the Optionee
has been on a leave of absence for three months, unless the Optionee’s reemployment rights following such leave were guaranteed by statute or by contract. 

SECTION 7.    RIGHT OF FIRST REFUSAL. 

(a)        Right of First Refusal. In the event that the Optionee proposes to
sell, pledge or otherwise transfer to a third party any Shares acquired under this Agreement, or any interest in such Shares, the Company shall have the Right of First Refusal with respect to all (and not less than all) of such Shares. If the
Optionee desires to transfer Shares acquired under this Agreement, the Optionee shall give a written Transfer Notice to the Company describing fully the proposed transfer, including the number of Shares proposed to be transferred, the proposed
transfer price, the name and address of the proposed Transferee and proof satisfactory to the Company that the proposed sale or transfer will not violate any applicable federal, State or foreign securities laws. The Transfer Notice shall be signed
both by the Optionee and by the proposed Transferee and must constitute a binding commitment of both parties to the transfer of the Shares. The Company shall have the right to purchase all, and not less than all, of the Shares on the terms of the
proposal described in the Transfer Notice (subject, however, to any change in such terms permitted under Subsection (b) below) by delivery of a notice of exercise of the Right of First Refusal within 30 days after the date when the Transfer
Notice was received by the Company. 
 (b)        Transfer of Shares. If the
Company fails to exercise its Right of First Refusal within 30 days after the date when it received the Transfer Notice, the Optionee may, not later than 90 days following receipt of the Transfer Notice by the Company, conclude a transfer
of the Shares subject to the Transfer Notice on the terms and conditions described in the Transfer Notice, provided that any such sale is made in compliance with applicable federal, State and foreign securities laws and not in violation of any other
contractual restrictions to which the Optionee is bound. Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent 

  
 4 

 
proposed transfer by the Optionee, shall again be subject to the Right of First Refusal and shall require compliance with the procedure described in Subsection (a) above. If the Company
exercises its Right of First Refusal, the parties shall consummate the sale of the Shares on the terms set forth in the Transfer Notice within 60 days after the date when the Company received the Transfer Notice (or within such longer period as
may have been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provided that payment for the Shares was to be made in a form other than cash or cash equivalents paid at the time of transfer, the Company
shall have the option of paying for the Shares with cash or cash equivalents equal to the present value of the consideration described in the Transfer Notice. 

(c)        Additional or Exchanged Securities and Property. In the event of a
merger or consolidation of the Company, a sale of all or substantially all of the Company’s stock or assets, any other corporate reorganization, a stock split, the declaration of a stock dividend, the declaration of an extraordinary dividend
payable in a form other than stock, a spin-off, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities, any securities or other
property (including cash or cash equivalents) that are by reason of such transaction exchanged for, or distributed with respect to, any Shares subject to this Section 7 shall immediately be subject to the Right of First Refusal. Appropriate
adjustments to reflect the exchange or distribution of such securities or property shall be made to the number and/or class of the Shares subject to this Section 7. 

(d)        Termination of Right of First Refusal. Any other provision of this
Section 7 notwithstanding, in the event that the Stock is readily tradable on an established securities market when the Optionee desires to transfer Shares, the Company shall have no Right of First Refusal, and the Optionee shall have no
obligation to comply with the procedures prescribed by Subsections (a) and (b) above. 

(e)        Permitted Transfers. This Section 7 shall not apply to
(i) a transfer by beneficiary designation, will or intestate succession or (ii) a transfer to one or more members of the Optionee’s Immediate Family or to a trust established by the Optionee for the benefit of the Optionee and/or one
or more members of the Optionee’s Immediate Family, provided in either case that the Transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Agreement. If the Optionee transfers any Shares acquired
under this Agreement, either under this Subsection (e) or after the Company has failed to exercise the Right of First Refusal, then this Agreement shall apply to the Transferee to the same extent as to the Optionee. 

(f)        Termination of Rights as Stockholder. If the Company makes
available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Shares to be purchased in accordance with this Section 7, then after such time the person from whom such Shares are to be
purchased shall no longer have any rights as a holder of such Shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such Shares shall be deemed to have been purchased in accordance with the
applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Agreement. 

(g)        Assignment of Right of First Refusal. The Board of Directors may
freely assign the Company’s Right of First Refusal, in whole or in part. Any person who accepts an assignment of the Right of First Refusal from the Company shall assume all of the Company’s rights and obligations under this
Section 7. 
 SECTION 8.    LEGALITY OF INITIAL ISSUANCE. 

No Shares shall be issued upon the exercise of this option unless and until the Company has determined that: 

  
 5 

 (a)        It and the
Optionee have taken any actions required to register the Shares under the Securities Act or to perfect an exemption from the registration requirements thereof; 

(b)        Any applicable listing requirement of any stock exchange or
other securities market on which Stock is listed has been satisfied; and 

(c)        Any other applicable provision of federal, State or foreign
law has been satisfied. 
 SECTION 9.    NO REGISTRATION RIGHTS. 

The Company may, but shall not be obligated to, register or qualify the sale of Shares under the Securities Act or any other
applicable law. The Company shall not be obligated to take any affirmative action in order to cause the sale of Shares under this Agreement to comply with any law. 

SECTION 10.    RESTRICTIONS ON TRANSFER OF SHARES. 

(a)        Securities Law Restrictions. Regardless of whether the offer and
sale of Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws of any State or other relevant jurisdiction, the Company at its discretion may impose restrictions upon the
sale, pledge or other transfer of such Shares (including the placement of appropriate legends on the stock certificates (or electronic equivalent) or the imposition of stop-transfer instructions) and may refuse (or may be required to refuse) to
transfer Shares acquired hereunder (or Shares proposed to be transferred in a subsequent transfer) if, in the judgment of the Company, such restrictions, legends or refusal are necessary or appropriate to achieve compliance with the Securities Act
or other relevant securities or other laws, including without limitation under Regulation S of the Securities Act or pursuant to another available exemption from registration.

(b)        Market Stand-Off. In
connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company’s initial public offering, the Optionee or a
Transferee shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose
of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Agreement without the prior written consent of the Company or its managing underwriter. Such restriction (the “Market Stand-Off”) shall be in effect for such period of time following the date of the final prospectus for the offering as may be requested by the Company or such underwriter. In no event, however, shall such
period exceed 180 days plus such additional period as may reasonably be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports or (ii) analyst
recommendations and opinions, including (without limitation) the restrictions set forth in Rule 2711(f)(4) of the National Association of Securities Dealers and Rule 472(f)(4) of the New York Stock Exchange, as amended, or any similar
successor rules. The Market Stand-Off shall in any event terminate two years after the date of the Company’s initial public offering. In the event of the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without receipt of consideration, any new, substituted or
additional securities which are by reason of such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby become convertible, shall immediately be
subject to the Market Stand-Off. In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Shares acquired under
this Agreement until the end of the applicable stand-off period. The Company’s underwriters shall be beneficiaries of the agreement set forth in this Subsection (b). This Subsection (b) shall
not apply to Shares registered in the public offering under the Securities Act. 

  
 6 

 (c)        Investment Intent at
Grant. The Optionee represents and agrees that the Shares to be acquired upon exercising this option will be acquired for investment, and not with a view to the sale or distribution thereof. 

(d)        Investment Intent at Exercise. In the event that the sale of Shares
under the Plan is not registered under the Securities Act but an exemption is available that requires an investment representation or other representation, the Optionee shall represent and agree at the time of exercise that the Shares being acquired
upon exercising this option are being acquired for investment, and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the Company and its counsel, including (if
applicable because the Company is relying on Regulation S under the Securities Act) that as of the date of exercise the Optionee is (i) not a U.S. Person; (ii) not acquiring the Shares on behalf, or for the account or benefit, of a U.S.
Person; and (iii) is not exercising the option in the United States. 

(e)        Legends. All certificates evidencing Shares purchased under this
Agreement shall bear the following legend: 
 “THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED,
ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY
CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES. IN ADDITION, THE SHARES ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A LIMITED PERIOD FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S
SECURITIES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER WITHOUT THE CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF
WITHOUT CHARGE.” 
 All certificates evidencing Shares purchased under this Agreement in an unregistered transaction shall bear the
following legend (and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law): 

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”) OR ANY SECURITIES LAWS OF ANY U.S. STATE, AND MAY NOT BE SOLD, REOFFERED, PLEDGED, ASSIGNED, ENCUMBERED OR OTHERWISE TRANSFERRED OR DISPOSED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL,
SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY (CONFIRMED BY OPINION OF COUNSEL) OF AN ALTERNATIVE EXEMPTION FROM REGISTRATION UNDER THE ACT (INCLUDING WITHOUT
LIMITATION IN ACCORDANCE WITH REGULATION S UNDER THE ACT), THESE SHARES MAY NOT BE SOLD, REOFFERED, PLEDGED, ASSIGNED, ENCUMBERED OR OTHERWISE TRANSFERRED OR DISPOSED OF. HEDGING TRANSACTIONS INVOLVING THESE SHARES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE ACT.” 

  
 7 

 (f)        Removal of Legends. If,
in the opinion of the Company and its counsel, any legend placed on a stock certificate representing Shares sold under this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate for a
certificate representing the same number of Shares but without such legend. 

(g)        Administration. Any determination by the Company and its counsel in
connection with any of the matters set forth in this Section 10 shall be conclusive and binding on the Optionee and all other persons. 
 SECTION
11.        ADJUSTMENT OF SHARES. 
 In the event of any transaction described in
Section 8(a) of the Plan, the terms of this option (including, without limitation, the number and kind of Shares subject to this option and the Exercise Price) shall be adjusted as set forth in Section 8(a) of the Plan. In the event that
the Company is a party to a merger or consolidation or in the event of a sale of all or substantially all of the Company’s stock or assets, this option shall be subject to the treatment provided by the Board of Directors in its sole discretion,
as provided in Section 8(b) of the Plan. 
 SECTION 12.    MISCELLANEOUS PROVISIONS. 

(a)        Rights as a Stockholder. Neither the Optionee nor the
Optionee’s representative shall have any rights as a stockholder with respect to any Shares subject to this option until the Optionee or the Optionee’s representative becomes entitled to receive such Shares by filing a notice of exercise
and paying the Purchase Price pursuant to Sections 4 and 5. 
 (b)        No
Retention Rights. Nothing in this option or in the Plan shall confer upon the Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any
Parent or Subsidiary employing or retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause. 

(c)        Notice. Any notice required by the terms of this Agreement shall be
given in writing. It shall be deemed effective upon (i) personal delivery, (ii) deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid, (iii) deposit with Federal Express
Corporation, with shipping charges prepaid or (iv) deposit with any internationally recognized express mail courier service. Notice shall be addressed to the Company at its principal executive office and to the Optionee at the address that he
or she most recently provided to the Company in accordance with this Subsection (c). 

(d)        Modifications and Waivers. No provision of this Agreement shall be
modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Optionee and by an authorized officer of the Company (other than the Optionee). No waiver by either party of any breach of, or of
compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 

(e)        Entire Agreement. The Notice of Stock Option Grant, this Agreement
and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) that
relate to the subject matter hereof. 

  
 8 

 (f)        Choice of Law. This
Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State. 

SECTION 13.    ACKNOWLEDGEMENTS OF THE OPTIONEE. 

In addition to the other terms, conditions and restrictions imposed on this option and the Shares issuable under this option
pursuant to this Agreement and the Plan, the Optionee expressly acknowledges being subject to Sections 7 (Right of First Refusal), 8 (Legality of Initial Issuance) and 10 (Restrictions on Transfer of Shares, including without limitation the Market Stand-Off), as well as the following provisions: 

(a)        Tax Consequences (No Liability for Discounted Options). The Optionee
agrees that the Company does not have a duty to design or administer the Plan or its other compensation programs in a manner that minimizes the Optionee’s tax liabilities. The Optionee shall not make any claim against the Company or its Board
of Directors, officers or employees related to tax liabilities arising from this option or the Optionee’s other compensation. In particular, any Optionee subject to U.S. taxation acknowledges that this option is exempt from Section 409A of
the Code only if the Exercise Price is at least equal to the Fair Market Value per Share on the Date of Grant. Since Shares are not traded on an established securities market, the determination of their Fair Market Value is made by the Board of
Directors or by an independent valuation firm retained by the Company. The Optionee acknowledges that there is no guarantee in either case that the Internal Revenue Service will agree with the valuation, and the Optionee shall not make any claim
against the Company or its Board of Directors, officers or employees in the event that the Internal Revenue Service asserts that the valuation was too low. 

(b)        Electronic Delivery of Documents. The Optionee agrees to accept by
email all documents relating to the Company, the Plan or this option and all other documents that the Company is required to deliver to its security holders (including, without limitation, disclosures that may be required by the Securities and
Exchange Commission). The Optionee also agrees that the Company may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company. If the Company posts these documents on a
website, it shall notify the Optionee by email of their availability. The Optionee acknowledges that he or she may incur costs in connection with electronic delivery, including the cost of accessing the internet and printing fees, and that an
interruption of internet access may interfere with his or her ability to access the documents. This consent shall remain in effect until this option expires or until the Optionee gives the Company written notice that it should deliver paper
documents. 
 (c)        No Notice of Expiration Date. The Optionee agrees
that the Company and its officers, employees, attorneys and agents do not have any obligation to notify him or her prior to the expiration of this option pursuant to Section 6, regardless of whether this option will expire at the end of its
full term or on an earlier date related to the termination of the Optionee’s Service. The Optionee further agrees that he or she has the sole responsibility for monitoring the expiration of this option and for exercising this option, if at all,
before it expires. This Subsection (c) shall supersede any contrary representation that may have been made, orally or in writing, by the Company or by an officer, employee, attorney or agent of the Company. 

(d)        Waiver of Statutory Information Rights. The Optionee acknowledges
and agrees that, upon exercise of this option and until the first sale of the Company’s Stock to the general public pursuant to a registration statement filed under the Securities Act, he or she will be deemed to have waived any rights the
Optionee might otherwise have had under Section 220 of the Delaware General 

  
 9 

 
Corporation Law (or under similar rights under other applicable law) to inspect for any proper purpose and to make copies and extracts from the Company’s stock ledger, a list of its
stockholders and its other books and records or the books and records of any subsidiary. This waiver applies only in the Optionee’s capacity as a stockholder and does not affect any other inspection rights the Optionee may have under other
law or pursuant to a written agreement with the Company.
 (e)        Plan
Discretionary. The Optionee understands and acknowledges that (i) the Plan is entirely discretionary, (ii) the Company and the Optionee’s employer have reserved the right to amend, suspend or terminate the Plan at any time,
(iii) the grant of an option does not in any way create any contractual or other right to receive additional grants of options (or benefits in lieu of options) at any time or in any amount and (iv) all determinations with respect to any
additional grants, including (without limitation) the times when options will be granted, the number of Shares offered, the Exercise Price and the vesting schedule, will be at the sole discretion of the Company. 

(f)        Termination of Service. The Optionee understands and acknowledges
that participation in the Plan ceases upon termination of his or her Service for any reason, except as may explicitly be provided otherwise in the Plan or this Agreement. 

(g)        Extraordinary Compensation. The value of this option shall be an
extraordinary item of compensation outside the scope of the Optionee’s employment contract, if any, and shall not be considered a part of his or her normal or expected compensation for purposes of calculating severance, resignation, redundancy
or end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. 

(h)        Authorization to Disclose. The Optionee hereby authorizes and
directs the Optionee’s employer to disclose to the Company or any Subsidiary any information regarding the Optionee’s employment, the nature and amount of the Optionee’s compensation and the fact and conditions of the Optionee’s
participation in the Plan, as the Optionee’s employer deems necessary or appropriate to facilitate the administration of the Plan. 

(i)        Personal Data Authorization. The Optionee consents to the
collection, use and transfer of personal data as described in this Subsection (i). The Optionee understands and acknowledges that the Company, the Optionee’s employer and the Company’s other Subsidiaries hold certain personal
information regarding the Optionee for the purpose of managing and administering the Plan, including (without limitation) the Optionee’s name, home address, telephone number, date of birth, social insurance number, salary, nationality, job
title, any Shares or directorships held in the Company and details of all options or any other entitlements to Shares awarded, canceled, exercised, vested, unvested or outstanding in the Optionee’s favor (the “Data”). The
Optionee further understands and acknowledges that the Company and/or its Subsidiaries will transfer Data among themselves as necessary for the purpose of implementation, administration and management of the Optionee’s participation in the Plan
and that the Company and/or any Subsidiary may each further transfer Data to any third party assisting the Company in the implementation, administration and management of the Plan. The Optionee understands and acknowledges that the recipients of
Data may be located in the United States or elsewhere. The Optionee authorizes such recipients to receive, possess, use, retain and transfer Data, in electronic or other form, for the purpose of administering the Optionee’s participation in the
Plan, including a transfer to any broker or other third party with whom the Optionee elects to deposit Shares acquired under the Plan of such Data as may be required for the administration of the Plan and/or the subsequent holding of Shares on the
Optionee’s behalf. The Optionee may, at any time, view the Data, require any necessary modifications of Data or withdraw the consents set forth in this Subsection (i) by contacting the Company in writing. 

  
 10 

 SECTION 14.    DEFINITIONS. 

(a)        “Agreement” shall mean this Stock Option Agreement. 

(b)        “Board of Directors” shall mean the Board of Directors of
the Company, as constituted from time to time or, if a Committee has been appointed, such Committee. 

(c)        “Company” shall mean Tarsus Pharmaceuticals, Inc., a
Delaware corporation. 
 (d)        “Immediate Family” shall mean
any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law
and shall include adoptive relationships. 
 (e)        “Optionee”
shall mean the person named in the Notice of Stock Option Grant. 

(f)        “Plan” shall mean the Tarsus Pharmaceuticals, Inc. 2016
Stock Plan, as in effect on the Date of Grant. 
 (g)        “Purchase
Price” shall mean the Exercise Price multiplied by the number of Shares with respect to which this option is being exercised. 

(h)        “Right of First Refusal” shall mean the Company’s
right of first refusal described in Section 7. 

(i)        “Service” shall mean service as an Employee, Outside
Director or Consultant. 
 (j)         “Transferee” shall mean any
person to whom the Optionee has directly or indirectly transferred any Share acquired under this Agreement. 

(k)        “Transfer Notice” shall mean the notice of a proposed
transfer of Shares described in Section 7. 
 (l)        “U.S.
Person” shall mean a person described in Rule 902(k) of Regulation S of the Securities Act (or any successor rule or provision), which generally defines a U.S. person as any natural person resident in the United States, any estate of which
any executor or administrator is a U.S. Person, or any trust of which of any trustee is a U.S. Person. 

  
 11 

 TARSUS PHARMACEUTICALS, INC. 2016
STOCK PLAN 
 NOTICE OF STOCK OPTION
GRANT (EARLY EXERCISE) 
 The Optionee has been granted the following option to purchase
shares of the Common Stock of Tarsus Pharmaceuticals, Inc.: 
  

			
		
	 Name of Optionee:
	  	«Name»
		
	 Total Number of Shares:
	  	«TotalShares»
		
	 Type of Option:
	  	«ISO»Incentive Stock Option (ISO)
		
	 	  	«NSO»Nonstatutory Stock Option (NSO)
		
	 Exercise Price per Share:
	  	$«PricePerShare»
		
	 Date of Grant:
	  	«DateGrant»
		
	 Date Exercisable:
	  	 This option may be exercised at any time after the Date of Grant for all or any part of the Shares subject to this
option.

		
	 Vesting Commencement Date:
	  	«VestComDate»
		
	 Vesting Schedule:
	  	 The Right of Repurchase shall lapse with respect to the first «Percent»% of the Shares subject to this option
when the Optionee completes «CliffPeriod» months of continuous Service beginning with the Vesting Commencement Date set forth above. The Right of Repurchase shall lapse with respect to an additional «Fraction»% of the Shares
subject to this option when the Optionee completes each month of continuous Service thereafter.

		
	 Expiration Date:
	  	«ExpDate». This option expires earlier if the Optionee’s Service terminates earlier, as provided in Section 6 of the Stock Option Agreement, or if the Company engages in certain corporate transactions, as
provided in Section 8(b) of the Plan.

 By signing below, the Optionee and the Company agree that this option is granted under, and governed by the
terms and conditions of, the 2016 Stock Plan and the Stock Option Agreement. Both of these documents are attached to, and made a part of, this Notice of Stock Option Grant. Section 14 of the Stock Option Agreement includes
important acknowledgements of the Optionee. 

					
		
	 OPTIONEE:
	  	 TARSUS PHARMACEUTICALS, INC.

			
	  	  	 By:
	  	  
	 	  	 Title:
	  	  

 THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE THEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
REGISTRATION IS NOT REQUIRED. 
 TARSUS PHARMACEUTICALS, INC. 2016 STOCK
PLAN: 
 STOCK OPTION AGREEMENT (EARLY
EXERCISE) 
 SECTION 1.     GRANT OF OPTION. 

(a)        Option. On the terms and conditions set forth in the Notice
of Stock Option Grant and this Agreement, the Company grants to the Optionee on the Date of Grant the option to purchase at the Exercise Price the number of Shares set forth in the Notice of Stock Option Grant. The Exercise Price is agreed to be at
least 100% of the Fair Market Value per Share on the Date of Grant (110% of Fair Market Value if this option is designated as an ISO in the Notice of Stock Option Grant and Section 3(b) of the Plan applies). This option is intended to be an ISO
or an NSO, as provided in the Notice of Stock Option Grant. 

(b)        $100,000 Limitation. Even if this option is designated as an ISO in
the Notice of Stock Option Grant, it shall be deemed to be an NSO to the extent (and only to the extent) required by the $100,000 annual limitation under Section 422(d) of the Code. 

(c)        Stock Plan and Defined Terms. This option is granted pursuant to the
Plan, a copy of which the Optionee acknowledges having received. The provisions of the Plan are incorporated into this Agreement by this reference. Except as otherwise defined in this Agreement (including without limitation Section 15 hereof),
capitalized terms shall have the meaning ascribed to such terms in the Plan. 
 SECTION 2.     RIGHT TO EXERCISE. 

(a)        Exercisability. Subject to Subsection (b) below and the other
conditions set forth in this Agreement, all or part of this option may be exercised prior to its expiration at the time or times set forth in the Notice of Stock Option Grant. Shares purchased by exercising this option may be subject to the Right of
Repurchase under Section 7. 
 (b)        Stockholder Approval. Any
other provision of this Agreement notwithstanding, no portion of this option shall be exercisable at any time prior to the approval of the Plan by the Company’s stockholders. 

SECTION 3.     NO TRANSFER OR ASSIGNMENT OF OPTION. 

Except as otherwise provided in this Agreement, this option and the rights and privileges conferred hereby shall not be sold,
pledged or otherwise transferred (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment, levy or similar process. 

 SECTION 4.     EXERCISE PROCEDURES. 

(a)        Notice of Exercise. The Optionee or the Optionee’s
representative may exercise this option by: (i) signing and delivering written notice to the Company pursuant to Section 13(c) specifying the election to exercise this option, the number of Shares for which it is being exercised and the
form of payment and (ii) delivering payment, in a form permissible under Section 5, for the full amount of the Purchase Price (together with any applicable withholding taxes under Subsection (b)). In the event that this option is being
exercised by the representative of the Optionee, the notice shall be accompanied by proof (satisfactory to the Company) of the representative’s right to exercise this option. In the event of a partial exercise of this option, Shares shall be
deemed to have been purchased in the order in which they vest in accordance with the Notice of Stock Option Grant. 

(b)        Withholding Taxes. In the event that the Company determines that it
is required to withhold any tax (including without limitation any income tax, social insurance contributions, payroll tax, payment on account or other tax-related items arising in connection with the
Optionee’s participation in the Plan and legally applicable to the Optionee (the “Tax-Related Items”)) as a result of the grant, vesting or exercise of this option, or as a result of the
vesting or transfer of shares acquired upon exercise of this option, the Optionee, as a condition of this option, shall make arrangements satisfactory to the Company to enable it to satisfy all Tax-Related
Items. The Optionee acknowledges that the responsibility for all Tax-Related Items is the Optionee’s and may exceed the amount actually withheld by the Company (or its affiliate or agent). 

(c)        Issuance of Shares. After satisfying all requirements for exercise
of this option, the Company shall cause to be issued one or more certificates evidencing the Shares for which this option has been exercised. Such Shares shall be registered (i) in the name of the person exercising this option, (ii) in the
names of such person and his or her spouse as community property or as joint tenants with the right of survivorship or (iii) with the Company’s consent, in the name of a revocable trust. Until the issuance of the Shares has been entered
into the books and records of the Company or a duly authorized transfer agent of the Company, no right to vote, receive dividends or any other right as a stockholder will exist with respect to such Shares. In the case of Restricted Shares, the
Company shall cause such certificates to be deposited in escrow under Section 7(c). In the case of other Shares, the Company shall cause such certificates to be delivered to or upon the order of the person exercising this option. 

SECTION 5.     PAYMENT FOR STOCK. 

(a)        Cash. All or part of the Purchase Price may be paid in cash or cash
equivalents. 
 (b)        Surrender of Stock. At the discretion of the Board
of Directors, all or any part of the Purchase Price may be paid by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be
valued at their Fair Market Value as of the date when this option is exercised. 

(c)        Exercise/Sale. All or part of the Purchase Price and any withholding
taxes may be paid by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company. However, payment
pursuant to this Subsection (c) shall be permitted only if (i) Stock then is publicly traded and (ii) such payment does not violate applicable law. 

  
 2 

 SECTION 6.      TERM AND EXPIRATION. 

(a)        Basic Term. This option shall in any event expire on the expiration
date set forth in the Notice of Stock Option Grant, which date is 10 years after the Date of Grant (five years after the Date of Grant if this option is designated as an ISO in the Notice of Stock Option Grant and Section 3(b) of the Plan
applies). 
 (b)        Termination of Service (Except by Death). If the
Optionee’s Service terminates for any reason other than death, then this option shall expire on the earliest of the following occasions: 

(i)        The expiration date determined pursuant to
Subsection (a) above; 
 (ii)        The date three months
after the termination of the Optionee’s Service for any reason other than Disability; or 

(iii)        The date six months after the termination of the
Optionee’s Service by reason of Disability. 
 The Optionee may exercise all or part of this option at any time before its expiration
under the preceding sentence, but only to the extent that this option is exercisable for vested Shares on or before the date when the Optionee’s Service terminates. When the Optionee’s Service terminates, this option shall expire
immediately with respect to the number of Shares for which this option is not yet exercisable and with respect to any Restricted Shares. In the event that the Optionee dies after termination of Service but before the expiration of this option, all
or part of this option may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate or by any person who has acquired this option directly from the Optionee by beneficiary designation, bequest or
inheritance, but only to the extent that this option was exercisable for vested Shares on or before the date when the Optionee’s Service terminated. Once this option (or portion thereof) has terminated, the Optionee shall have no further rights
with respect to the option (or portion thereof) or to the underlying Shares. 

(c)        Death of the Optionee. If the Optionee dies while in Service, then
this option shall expire on the earlier of the following dates: 

(i)        The expiration date determined pursuant to
Subsection (a) above; or 
 (ii)        The date 12 months
after the Optionee’s death. 
 All or part of this option may be exercised at any time before its expiration under the preceding
sentence by the executors or administrators of the Optionee’s estate or by any person who has acquired this option directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that this option is
exercisable for vested Shares on or before the date of the Optionee’s death. When the Optionee dies, this option shall expire immediately with respect to the number of Shares for which this option is not yet exercisable and with respect to any
Restricted Shares. Once this option (or portion thereof) has terminated, the Optionee shall have no further rights with respect to the option (or portion thereof) or to the underlying Shares. 

  
 3 

 (d)        Extension of
Post-Termination Exercise Periods. Following the date on which the Company’s Stock is first listed for trading on an established securities market, if during any part of the exercise period described in Subsections (b)(ii) or (iii) or
Subsection (c)(ii) above the exercise of this option would be prohibited solely because the issuance of Shares upon such exercise would violate the registration requirements under the Securities Act or a similar provision of other applicable law,
then instead of terminating at the end of such prescribed period, the then-vested portion of this option will instead remain outstanding and not expire until the earlier of (i) the expiration date determined pursuant to Section 6(a) above
or (ii) the date on which the then-vested portion of this option has been exercisable without violation of applicable law for the aggregate period (which need not be consecutive) after termination of the Optionee’s Service specified in the
applicable Subsection above. 
 (e)        Part-Time Employment and Leaves of
Absence. If the Optionee commences working on a part-time basis, then the Company may adjust the vesting schedule set forth in the Notice of Stock Option Grant. If the Optionee goes on a leave of absence, then the Company may adjust the vesting
schedule set forth in the Notice of Stock Option Grant in accordance with the Company’s leave of absence policy or the terms of such leave. Except as provided in the preceding sentence, Service shall be deemed to continue for any purpose under
this Agreement while the Optionee is on a bona fide leave of absence, if (i) such leave was approved by the Company in writing and (ii) continued crediting of Service for such purpose is expressly required by the terms of such leave
or by applicable law (as determined by the Company). Service shall be deemed to terminate when such leave ends, unless the Optionee immediately returns to active work. 

(f)        Notice Concerning ISO Treatment. Even if this option is designated
as an ISO in the Notice of Stock Option Grant, it ceases to qualify for favorable tax treatment as an ISO to the extent that it is exercised: 

(i)        More than three months after the date when the Optionee
ceases to be an Employee for any reason other than death or permanent and total disability (as defined in Section 22(e)(3) of the Code); 

(ii)        More than 12 months after the date when the Optionee
ceases to be an Employee by reason of permanent and total disability (as defined in Section 22(e)(3) of the Code); or 

(iii)        More than three months after the date when the Optionee
has been on a leave of absence for three months, unless the Optionee’s reemployment rights following such leave were guaranteed by statute or by contract. 

SECTION 7.     RIGHT OF REPURCHASE. 

(a)        Scope of Repurchase Right. Until they vest in accordance with the
Notice of Stock Option Grant and Subsection (b) below, the Shares acquired under this Agreement shall be Restricted Shares and shall be subject to the Company’s Right of Repurchase. The Company, however, may decline to exercise its Right
of Repurchase or may exercise its Right of Repurchase only with respect to a portion of the Restricted Shares. The Company may exercise its Right of Repurchase only during the Repurchase Period following the termination of the Optionee’s
Service, but the Right of Repurchase may be exercised automatically under Subsection (d) below. If the Right of Repurchase is exercised, the Company shall pay the Optionee an amount equal to the lower of (i) the Exercise Price of each
Restricted Share being repurchased or (ii) the Fair Market Value of such Restricted Share at the time the Right of Repurchase is exercised. 

  
 4 

 (b)        Lapse of Repurchase
Right. The Right of Repurchase shall lapse with respect to the Restricted Shares in accordance with the vesting schedule set forth in the Notice of Stock Option Grant. 

(c)        Escrow. Upon issuance, the certificate(s) for Restricted Shares
shall be deposited in escrow with the Company to be held in accordance with the provisions of this Agreement. Any additional or exchanged securities or other property described in Subsection (f) below shall immediately be delivered to the
Company to be held in escrow. All ordinary cash dividends on Restricted Shares (or on other securities held in escrow) shall be paid directly to the Optionee and shall not be held in escrow. Restricted Shares, together with any other assets held in
escrow under this Agreement, shall be (i) surrendered to the Company for repurchase upon exercise of the Right of Repurchase or the Right of First Refusal or (ii) released to the Optionee upon his or her request to the extent that the
Shares have ceased to be Restricted Shares (but not more frequently than once every six months). In any event, all Shares that have ceased to be Restricted Shares, together with any other vested assets held in escrow under this Agreement, shall be
released within 90 days after the earlier of (i) the termination of the Optionee’s Service or (ii) the lapse of the Right of First Refusal. 

(d)        Exercise of Repurchase Right. The Company shall be deemed to have
exercised its Right of Repurchase automatically for all Restricted Shares as of the commencement of the Repurchase Period, unless the Company during the Repurchase Period notifies the holder of the Restricted Shares pursuant to Section 13(c)
that it will not exercise its Right of Repurchase for some or all of the Restricted Shares. The Company shall pay to the holder of the Restricted Shares the purchase price determined under Subsection (a) above for the Restricted Shares being
repurchased. Payment shall be made in cash or cash equivalents and/or by canceling indebtedness to the Company incurred by the Optionee in the purchase of the Restricted Shares. The certificate(s) representing the Restricted Shares being repurchased
shall be delivered to the Company. 
 (e)        Termination of Rights as
Stockholder. If the Right of Repurchase is exercised in accordance with this Section 7 and the Company makes available the consideration for the Restricted Shares being repurchased, then the person from whom the Restricted Shares are
repurchased shall no longer have any rights as a holder of the Restricted Shares (other than the right to receive payment of such consideration). Such Restricted Shares shall be deemed to have been repurchased pursuant to this Section 7,
whether or not the certificate(s) for such Restricted Shares have been delivered to the Company or the consideration for such Restricted Shares has been accepted. 

(f)        Additional or Exchanged Securities and Property. In the event of a
merger or consolidation of the Company, a sale of all or substantially all of the Company’s stock or assets, any other corporate reorganization, a stock split, the declaration of a stock dividend, the declaration of an extraordinary dividend
payable in a form other than stock, a spin-off, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities, any securities or other
property (including cash or cash equivalents) that are by reason of such transaction exchanged for, or distributed with respect to, any Restricted Shares shall immediately be subject to the Right of Repurchase. Appropriate adjustments to reflect the
exchange or distribution of such securities or property shall be made to the number and/or class of the Restricted Shares. Appropriate adjustments shall also be made to the price per share to be paid upon the exercise of the Right of Repurchase,
provided that the aggregate purchase price payable for the Restricted Shares shall remain the same. In the event of any transaction described in Section 8(b) of the Plan or any other corporate reorganization, the Right of Repurchase may be
exercised by the Company’s successor. 
 (g)        Transfer of Restricted
Shares. The Optionee shall not transfer, assign, encumber or otherwise dispose of any Restricted Shares without the Company’s written consent, except as provided in the following sentence. The Optionee may transfer Restricted Shares to one
or more members of the Optionee’s Immediate Family or to a trust established by the Optionee for the benefit of 

  
 5 

 
the Optionee and/or one or more members of the Optionee’s Immediate Family, provided in either case that the Transferee agrees in writing on a form prescribed by the Company to be bound by
all provisions of this Agreement. If the Optionee transfers any Restricted Shares, then this Agreement shall apply to the Transferee to the same extent as to the Optionee. 

(h)        Assignment of Repurchase Right. The Board of Directors may freely
assign the Company’s Right of Repurchase, in whole or in part. Any person who accepts an assignment of the Right of Repurchase from the Company shall assume all of the Company’s rights and obligations under this Section 7. 

SECTION 8.     RIGHT OF FIRST REFUSAL. 

(a)        Right of First Refusal. In the event that the Optionee proposes to
sell, pledge or otherwise transfer to a third party any Shares acquired under this Agreement, or any interest in such Shares, the Company shall have the Right of First Refusal with respect to all (and not less than all) of such Shares. If the
Optionee desires to transfer Shares acquired under this Agreement, the Optionee shall give a written Transfer Notice to the Company describing fully the proposed transfer, including the number of Shares proposed to be transferred, the proposed
transfer price, the name and address of the proposed Transferee and proof satisfactory to the Company that the proposed sale or transfer will not violate any applicable federal, State or foreign securities laws. The Transfer Notice shall be signed
both by the Optionee and by the proposed Transferee and must constitute a binding commitment of both parties to the transfer of the Shares. The Company shall have the right to purchase all, and not less than all, of the Shares on the terms of the
proposal described in the Transfer Notice (subject, however, to any change in such terms permitted under Subsection (b) below) by delivery of a notice of exercise of the Right of First Refusal within 30 days after the date when the Transfer
Notice was received by the Company. 
 (b)        Transfer of Shares. If the
Company fails to exercise its Right of First Refusal within 30 days after the date when it received the Transfer Notice, the Optionee may, not later than 90 days following receipt of the Transfer Notice by the Company, conclude a transfer
of the Shares subject to the Transfer Notice on the terms and conditions described in the Transfer Notice, provided that any such sale is made in compliance with applicable federal, State and foreign securities laws and not in violation of any other
contractual restrictions to which the Optionee is bound. Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by the Optionee, shall again be subject to the
Right of First Refusal and shall require compliance with the procedure described in Subsection (a) above. If the Company exercises its Right of First Refusal, the parties shall consummate the sale of the Shares on the terms set forth in the
Transfer Notice within 60 days after the date when the Company received the Transfer Notice (or within such longer period as may have been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provided that
payment for the Shares was to be made in a form other than cash or cash equivalents paid at the time of transfer, the Company shall have the option of paying for the Shares with cash or cash equivalents equal to the present value of the
consideration described in the Transfer Notice. 
 (c)        Additional or
Exchanged Securities and Property. In the event of a merger or consolidation of the Company, a sale of all or substantially all of the Company’s stock or assets, any other corporate reorganization, a stock split, the declaration of a stock
dividend, the declaration of an extraordinary dividend payable in a form other than stock, a spin-off, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the
Company’s outstanding securities, any securities or other property (including cash or cash equivalents) that are by reason of such transaction exchanged for, or distributed with respect to, any Shares subject to this Section 8 shall
immediately be subject to the Right of First Refusal. Appropriate adjustments to reflect the exchange or distribution of such securities or property shall be made to the number and/or class of the Shares subject to this Section 8. 

  
 6 

 (d)        Termination of Right of
First Refusal. Any other provision of this Section 8 notwithstanding, in the event that the Stock is readily tradable on an established securities market when the Optionee desires to transfer Shares, the Company shall have no Right of First
Refusal, and the Optionee shall have no obligation to comply with the procedures prescribed by Subsections (a) and (b) above. 

(e)        Permitted Transfers. This Section 8 shall not apply to
(i) a transfer by beneficiary designation, will or intestate succession or (ii) a transfer to one or more members of the Optionee’s Immediate Family or to a trust established by the Optionee for the benefit of the Optionee and/or one
or more members of the Optionee’s Immediate Family, provided in either case that the Transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Agreement. If the Optionee transfers any Shares acquired
under this Agreement, either under this Subsection (e) or after the Company has failed to exercise the Right of First Refusal, then this Agreement shall apply to the Transferee to the same extent as to the Optionee. 

(f)        Termination of Rights as Stockholder. If the Company makes
available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Shares to be purchased in accordance with this Section 8, then after such time the person from whom such Shares are to be
purchased shall no longer have any rights as a holder of such Shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such Shares shall be deemed to have been purchased in accordance with the
applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Agreement. 

(g)        Assignment of Right of First Refusal. The Board of Directors may
freely assign the Company’s Right of First Refusal, in whole or in part. Any person who accepts an assignment of the Right of First Refusal from the Company shall assume all of the Company’s rights and obligations under this
Section 8. 
 SECTION 9.     LEGALITY OF INITIAL ISSUANCE. 

No Shares shall be issued upon the exercise of this option unless and until the Company has determined that: 

(a)        It and the Optionee have taken any actions required to
register the Shares under the Securities Act or to perfect an exemption from the registration requirements thereof; 

(b)        Any applicable listing requirement of any stock exchange or
other securities market on which Stock is listed has been satisfied; and 

(c)        Any other applicable provision of federal, State or foreign
law has been satisfied. 
 SECTION 10.     NO REGISTRATION RIGHTS. 

The Company may, but shall not be obligated to, register or qualify the sale of Shares under the Securities Act or any other
applicable law. The Company shall not be obligated to take any affirmative action in order to cause the sale of Shares under this Agreement to comply with any law. 

  
 7 

 SECTION 11.     RESTRICTIONS ON TRANSFER OF SHARES. 

(a)        Securities Law Restrictions. Regardless of whether the offer and
sale of Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws of any State or other relevant jurisdiction, the Company at its discretion may impose restrictions upon the
sale, pledge or other transfer of such Shares (including the placement of appropriate legends on the stock certificates (or electronic equivalent) or the imposition of stop-transfer instructions) and may refuse (or may be required to refuse) to
transfer Shares acquired hereunder (or Shares proposed to be transferred in a subsequent transfer) if, in the judgment of the Company, such restrictions, legends or refusal are necessary or appropriate to achieve compliance with the Securities Act
or other relevant securities or other laws, including without limitation under Regulation S of the Securities Act or pursuant to another available exemption from registration.

(b)        Market Stand-Off. In
connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company’s initial public offering, the Optionee or a
Transferee shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose
of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Agreement without the prior written consent of the Company or its managing underwriter. Such restriction (the “Market Stand-Off”) shall be in effect for such period of time following the date of the final prospectus for the offering as may be requested by the Company or such underwriter. In no event, however, shall such period
exceed 180 days plus such additional period as may reasonably be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports or (ii) analyst
recommendations and opinions, including (without limitation) the restrictions set forth in Rule 2711(f)(4) of the National Association of Securities Dealers and Rule 472(f)(4) of the New York Stock Exchange, as amended, or any similar
successor rules. The Market Stand-Off shall in any event terminate two years after the date of the Company’s initial public offering. In the event of the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without receipt of consideration, any new, substituted or
additional securities which are by reason of such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby become convertible, shall immediately be
subject to the Market Stand-Off. In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Shares acquired under this Agreement until the end of the
applicable stand-off period. The Company’s underwriters shall be beneficiaries of the agreement set forth in this Subsection (b). This Subsection (b) shall not apply to Shares registered in the
public offering under the Securities Act. 
 (c)        Investment Intent at
Grant. The Optionee represents and agrees that the Shares to be acquired upon exercising this option will be acquired for investment, and not with a view to the sale or distribution thereof. 

(d)        Investment Intent at Exercise. In the event that the sale of Shares
under the Plan is not registered under the Securities Act but an exemption is available that requires an investment representation or other representation, the Optionee shall represent and agree at the time of exercise that the Shares being acquired
upon exercising this option are being acquired for investment, and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the Company and its counsel, including (if
applicable because the Company is relying on Regulation S under the Securities Act) that as of the date of exercise the Optionee is (i) not a U.S. Person; (ii) not acquiring the Shares on behalf, or for the account or benefit, of a U.S.
Person; and (iii) is not exercising the option in the United States. 

  
 8 

 (e)        Legends. All
certificates evidencing Shares purchased under this Agreement shall bear the following legend: 
 “THE SHARES
REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN
INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES AND CERTAIN REPURCHASE RIGHTS UPON TERMINATION OF SERVICE WITH THE COMPANY. IN ADDITION, THE SHARES ARE SUBJECT TO
RESTRICTIONS ON TRANSFER FOR A LIMITED PERIOD FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S SECURITIES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER WITHOUT THE CONSENT OF THE COMPANY OR THE
MANAGING UNDERWRITER. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.” 

All certificates evidencing Shares purchased under this Agreement in an unregistered transaction shall bear the following legend (and such
other restrictive legends as are required or deemed advisable under the provisions of any applicable law): 
 “THE
SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY SECURITIES LAWS OF ANY U.S. STATE, AND MAY NOT BE SOLD, REOFFERED, PLEDGED, ASSIGNED, ENCUMBERED OR OTHERWISE TRANSFERRED OR
DISPOSED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY (CONFIRMED BY OPINION
OF COUNSEL) OF AN ALTERNATIVE EXEMPTION FROM REGISTRATION UNDER THE ACT (INCLUDING WITHOUT LIMITATION IN ACCORDANCE WITH REGULATION S UNDER THE ACT), THESE SHARES MAY NOT BE SOLD, REOFFERED, PLEDGED, ASSIGNED, ENCUMBERED OR OTHERWISE TRANSFERRED OR
DISPOSED OF. HEDGING TRANSACTIONS INVOLVING THESE SHARES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.” 

(f)        Removal of Legends. If, in the opinion of the Company and its
counsel, any legend placed on a stock certificate representing Shares sold under this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate for a certificate representing the same number of
Shares but without such legend. 
 (g)        Administration. Any
determination by the Company and its counsel in connection with any of the matters set forth in this Section 11 shall be conclusive and binding on the Optionee and all other persons. 

  
 9 

 SECTION 12.     ADJUSTMENT OF SHARES. 

In the event of any transaction described in Section 8(a) of the Plan, the terms of this option (including, without
limitation, the number and kind of Shares subject to this option and the Exercise Price) shall be adjusted as set forth in Section 8(a) of the Plan. In the event that the Company is a party to a merger or consolidation or in the event of a sale
of all or substantially all of the Company’s stock or assets, this option shall be subject to the treatment provided by the Board of Directors in its sole discretion, as provided in Section 8(b) of the Plan. 

SECTION 13.     MISCELLANEOUS PROVISIONS. 

(a)        Rights as a Stockholder. Neither the Optionee nor the
Optionee’s representative shall have any rights as a stockholder with respect to any Shares subject to this option until the Optionee or the Optionee’s representative becomes entitled to receive such Shares by filing a notice of exercise
and paying the Purchase Price pursuant to Sections 4 and 5. 
 (b)        No
Retention Rights. Nothing in this option or in the Plan shall confer upon the Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any
Parent or Subsidiary employing or retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause. 

(c)        Notice. Any notice required by the terms of this Agreement shall be
given in writing. It shall be deemed effective upon (i) personal delivery, (ii) deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid, (iii) deposit with Federal Express
Corporation, with shipping charges prepaid or (iv) deposit with any internationally recognized express mail courier service. Notice shall be addressed to the Company at its principal executive office and to the Optionee at the address that he
or she most recently provided to the Company in accordance with this Subsection (c). 

(d)        Modifications and Waivers. No provision of this Agreement shall be
modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Optionee and by an authorized officer of the Company (other than the Optionee). No waiver by either party of any breach of, or of
compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 

(e)        Entire Agreement. The Notice of Stock Option Grant, this Agreement
and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) that
relate to the subject matter hereof. 
 (f)        Choice of Law. This
Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State. 

SECTION 14.     ACKNOWLEDGEMENTS OF THE OPTIONEE. 

In addition to the other terms, conditions and restrictions imposed on this option and the Shares issuable under this option
pursuant to this Agreement and the Plan, the Optionee expressly acknowledges being subject to Sections 7 (Right of Repurchase), 8 (Right of First Refusal), 9 (Legality of Initial Issuance) and 11 (Restrictions on Transfer of Shares, including
without limitation the Market Stand-Off), as well as the following provisions: 

  
 10 

 (a)        Tax Consequences. The
Optionee agrees that the Company does not have a duty to design or administer the Plan or its other compensation programs in a manner that minimizes the Optionee’s tax liabilities. The Optionee shall not make any claim against the Company or
its Board of Directors, officers or employees related to tax liabilities arising from this option or the Optionee’s other compensation. In particular, any Optionee subject to U.S. taxation acknowledges that this option is exempt from
Section 409A of the Code only if the Exercise Price is at least equal to the Fair Market Value per Share on the Date of Grant. Since Shares are not traded on an established securities market, the determination of their Fair Market Value is made
by the Board of Directors or by an independent valuation firm retained by the Company. The Optionee acknowledges that there is no guarantee in either case that the Internal Revenue Service will agree with the valuation, and the Optionee shall not
make any claim against the Company or its Board of Directors, officers or employees in the event that the Internal Revenue Service asserts that the valuation was too low. 

(b)        Electronic Delivery of Documents. The Optionee agrees to accept by
email all documents relating to the Company, the Plan or this option and all other documents that the Company is required to deliver to its security holders (including, without limitation, disclosures that may be required by the Securities and
Exchange Commission). The Optionee also agrees that the Company may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company. If the Company posts these documents on a
website, it shall notify the Optionee by email of their availability. The Optionee acknowledges that he or she may incur costs in connection with electronic delivery, including the cost of accessing the internet and printing fees, and that an
interruption of internet access may interfere with his or her ability to access the documents. This consent shall remain in effect until this option expires or until the Optionee gives the Company written notice that it should deliver paper
documents. 
 (c)        No Notice of Expiration Date. The Optionee agrees
that the Company and its officers, employees, attorneys and agents do not have any obligation to notify him or her prior to the expiration of this option pursuant to Section 6, regardless of whether this option will expire at the end of its
full term or on an earlier date related to the termination of the Optionee’s Service. The Optionee further agrees that he or she has the sole responsibility for monitoring the expiration of this option and for exercising this option, if at all,
before it expires. This Subsection (c) shall supersede any contrary representation that may have been made, orally or in writing, by the Company or by an officer, employee, attorney or agent of the Company. 

(d)        Waiver of Statutory Information Rights. The Optionee acknowledges
and agrees that, upon exercise of this option and until the first sale of the Company’s Stock to the general public pursuant to a registration statement filed under the Securities Act, he or she will be deemed to have waived any rights the
Optionee might otherwise have had under Section 220 of the Delaware General Corporation Law (or under similar rights under other applicable law) to inspect for any proper purpose and to make copies and extracts from the Company’s stock
ledger, a list of its stockholders and its other books and records or the books and records of any subsidiary. This waiver applies only in the Optionee’s capacity as a stockholder and does not affect any other inspection rights the Optionee may
have under other law or pursuant to a written agreement with the Company. 

(e)        Plan Discretionary. The Optionee understands and acknowledges that
(i) the Plan is entirely discretionary, (ii) the Company and the Optionee’s employer have reserved the right to amend, suspend or terminate the Plan at any time, (iii) the grant of an option does not in any way create any
contractual or other right to receive additional grants of options (or benefits in lieu of options) at any time or in any amount and (iv) all determinations with respect to any additional grants, including (without limitation) the times when
options will be granted, the number of Shares offered, the Exercise Price and the vesting schedule, will be at the sole discretion of the Company. 

  
 11 

 (f)        Termination of Service.
The Optionee understands and acknowledges that participation in the Plan ceases upon termination of his or her Service for any reason, except as may explicitly be provided otherwise in the Plan or this Agreement. 

(g)        Extraordinary Compensation. The value of this option shall be an
extraordinary item of compensation outside the scope of the Optionee’s employment contract, if any, and shall not be considered a part of his or her normal or expected compensation for purposes of calculating severance, resignation, redundancy
or end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. 

(h)        Authorization to Disclose. The Optionee hereby authorizes and
directs the Optionee’s employer to disclose to the Company or any Subsidiary any information regarding the Optionee’s employment, the nature and amount of the Optionee’s compensation and the fact and conditions of the Optionee’s
participation in the Plan, as the Optionee’s employer deems necessary or appropriate to facilitate the administration of the Plan. 

(i)        Personal Data Authorization. The Optionee consents to the
collection, use and transfer of personal data as described in this Subsection (i). The Optionee understands and acknowledges that the Company, the Optionee’s employer and the Company’s other Subsidiaries hold certain personal
information regarding the Optionee for the purpose of managing and administering the Plan, including (without limitation) the Optionee’s name, home address, telephone number, date of birth, social insurance number, salary, nationality, job
title, any Shares or directorships held in the Company and details of all options or any other entitlements to Shares awarded, canceled, exercised, vested, unvested or outstanding in the Optionee’s favor (the “Data”). The
Optionee further understands and acknowledges that the Company and/or its Subsidiaries will transfer Data among themselves as necessary for the purpose of implementation, administration and management of the Optionee’s participation in the Plan
and that the Company and/or any Subsidiary may each further transfer Data to any third party assisting the Company in the implementation, administration and management of the Plan. The Optionee understands and acknowledges that the recipients of
Data may be located in the United States or elsewhere. The Optionee authorizes such recipients to receive, possess, use, retain and transfer Data, in electronic or other form, for the purpose of administering the Optionee’s participation in the
Plan, including a transfer to any broker or other third party with whom the Optionee elects to deposit Shares acquired under the Plan of such Data as may be required for the administration of the Plan and/or the subsequent holding of Shares on the
Optionee’s behalf. The Optionee may, at any time, view the Data, require any necessary modifications of Data or withdraw the consents set forth in this Subsection (i) by contacting the Company in writing. 

SECTION 15.     DEFINITIONS. 

(a)        “Agreement” shall mean this Stock Option Agreement. 

(b)        “Board of Directors” shall mean the Board of Directors of
the Company, as constituted from time to time or, if a Committee has been appointed, such Committee. 

(c)        “Company” shall mean Tarsus Pharmaceuticals, Inc., a
Delaware corporation. 
 (d)        “Immediate Family” shall mean
any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law
and shall include adoptive relationships. 
 (e)        “Optionee”
shall mean the person named in the Notice of Stock Option Grant. 

  
 12 

 (f)        “Plan” shall
mean the Tarsus Pharmaceuticals, Inc. 2016 Stock Plan, as in effect on the Date of Grant. 

(g)        “Purchase Price” shall mean the Exercise Price multiplied
by the number of Shares with respect to which this option is being exercised. 

(h)        “Repurchase Period” shall mean a period of 90 consecutive
days commencing on the date when the Optionee’s Service terminates for any reason, including (without limitation) death or disability. 

(i)        “Restricted Share” shall mean a Share that is subject to
the Right of Repurchase. 
 (j)        “Right of First Refusal”
shall mean the Company’s right of first refusal described in Section 8. 

(k)        “Right of Repurchase” shall mean the Company’s right
of repurchase described in Section 7. 
 (l)        “Service”
shall mean service as an Employee, Outside Director or Consultant. 

(m)        “Transferee” shall mean any person to whom the Optionee
has directly or indirectly transferred any Share acquired under this Agreement. 

(n)        “Transfer Notice” shall mean the notice of a proposed
transfer of Shares described in Section 8. 
 (o)        “U.S.
Person” shall mean a person described in Rule 902(k) of Regulation S of the Securities Act (or any successor rule or provision), which generally defines a U.S. person as any natural person resident in the United States, any estate of which
any executor or administrator is a U.S. Person, or any trust of which of any trustee is a U.S. Person. 

  
 13 

 TARSUS PHARMACEUTICALS, INC. 2016
STOCK PLAN 
 NOTICE OF STOCK OPTION
EXERCISE (INSTALLMENT EXERCISE) 
 You must sign this Notice on Page 3 before
submitting it to the Company. 
 OPTIONEE INFORMATION: 

 

							
	 Name:
	 	 	  	 Social Security Number:
	  	 
	 Address:
	 	 	  	 Employee Number:
	  	 
		 	 	  		  	

 OPTION INFORMATION: 

 

			
	 Date of Grant: _____________ ___, 20__
	  	 Type of Stock Option:

	 Exercise Price per Share: $________
	  	 ☐ Nonstatutory (NSO)

	 Total number of shares of Common Stock of Tarsus
Pharmaceuticals, Inc. (the “Company”) covered by the option: __________________
	  	 ☐ Incentive (ISO)

 EXERCISE INFORMATION: 

 

					
	 Number of shares of Common Stock of the Company for which the option is being exercised now: ________________.
(These shares are referred to below as the “Purchased Shares.”)

	
	 Total Exercise Price for the Purchased Shares: $____________

	
	 Form of payment enclosed [check all that apply]:

	 ☐    Checkfor $____________, payable to
“Tarsus Pharmaceuticals, Inc.” 

	 ☐    Certificate(s)for ________________
shares of Common Stock of the Company. These shares will be valued as of the date this notice is received by the Company. [Requires Company consent.] 

	 ☐    AttestationForm covering
________________ shares of Common Stock of the Company. These shares will be valued as of the date this notice is received by the Company. [Requires Company consent.] 

	
	 Name(s) in which the Purchased Shares should be registered [please review the attached explanation of the
available forms of ownership, and then check one box]:

		
	 ☐    Inmy name only 
	  	
		
	 ☐    Inthe names of my spouse and myself
as community property
	  	 My spouse’s name (if applicable):

		
	 ☐    Inthe names of my spouse and myself
as community property with the right of survivorship
	  	 

					
	 ☐    Inthe names of my spouse and myself as
joint tenants with the right of survivorship
	  	
	 ☐    Inthe name of an eligible revocable trust
[requires Stock Transfer Agreement]
	  	 Full legal name of revocable trust: 
_____________________________________

_____________________________________ 
_____________________________________

	 The certificate for the Purchased Shares should be sent to the following address:
	  	 
_____________________________________ 
_____________________________________

_____________________________________ 

 Representations and Acknowledgements of the Optionee: 

 

	1.	 I represent and warrant to the Company that I am acquiring and will hold the Purchased Shares for investment
for my account only, and not with a view to, or for resale in connection with, any “distribution” of the Purchased Shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). 

 

	2.	 I understand that my purchase of the Purchased Shares has not been registered under the Securities Act by
reason of a specific exemption therefrom and that the Purchased Shares must be held indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company
and its counsel) that registration is not required. 

  

	3.	 I acknowledge that the Company is under no obligation to register the Purchased Shares or any sale or
transfer thereof. 

  

	4.	 I am aware of Rule 144 under the Securities Act, which permits limited public resales of securities acquired
in a non-public offering, subject to the satisfaction of certain conditions. These conditions may include (without limitation) that certain current public information about the issuer be available, that the
resale occur only after a holding period required by Rule 144 has been satisfied, that the sale occur through an unsolicited “broker’s transaction” and that the amount of securities being sold during any three-month period not exceed
specified limitations. I understand that the conditions for resale set forth in Rule 144 have not been satisfied as of the date set forth below, and that the Company is not required to take action to satisfy any conditions applicable to it.

  

	5.	 I will not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities Act,
the Securities Exchange Act of 1934, or the rules promulgated thereunder, including Rule 144 under the Securities Act. 

  

	6.	 I acknowledge that I have received and had access to such information as I consider necessary or appropriate
for deciding whether to invest in the Purchased Shares and that I had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the issuance of the Purchased Shares. 

 

	7.	 I am aware that my investment in the Company is a speculative investment that has limited liquidity and is
subject to the risk of complete loss. I am able, without impairing my financial condition, to hold the Purchased Shares for an indefinite period and to suffer a complete loss of my investment in the Purchased Shares. 

  
 2 

	8.	 I acknowledge that the Purchased Shares remain subject to the Company’s right of first refusal and the
market stand-off (sometimes referred to as the “lock-up”), all in accordance with the applicable Notice of Stock Option Grant and Stock Option Agreement.

  

	9.	 I acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice of Stock
Option Grant and Stock Option Agreement. 

  

	10.	 I acknowledge that I have received a copy of the Company’s explanation of the forms of ownership
available for my Purchased Shares. I acknowledge that the Company has encouraged me to consult my own adviser to determine the form of ownership that is appropriate for me. In the event that I choose to transfer my Purchased Shares to a trust, I
agree to sign a Stock Transfer Agreement. In the event that I choose to transfer my Purchased Shares to a trust that does not satisfy the requirements described in the attached explanation (i.e., a trust that is not an eligible revocable trust), I
also acknowledge that the transfer will be treated as a “disposition” for tax purposes. As a result, the favorable ISO tax treatment will be unavailable and other unfavorable tax consequences may occur. 

 

	11.	 I acknowledge that I have received a copy of the Company’s explanation of the federal income tax
consequences of an option exercise. I acknowledge that the Company has encouraged me to consult my own adviser to determine the tax consequences of acquiring the Purchased Shares at this time. 

 

	12.	 I agree that the Company does not have a duty to design or administer the 2016 Stock Plan or its other
compensation programs in a manner that minimizes my tax liabilities. I will not make any claim against the Company or its Board of Directors, officers or employees related to tax liabilities arising from my options or my other compensation. In
particular, I acknowledge that my options are exempt from section 409A of the Internal Revenue Code only if the exercise price per share is at least equal to the fair market value per share of the Company’s Common Stock at the time the option
was granted by the Company’s Board of Directors. Since shares of the Company’s Common Stock are not traded on an established securities market, the determination of their fair market value was made by the Company’s Board of Directors
or by an independent valuation firm retained by the Company. I acknowledge that there is no guarantee in either case that the Internal Revenue Service will agree with the valuation, and I will not make any claim against the Company or its Board of
Directors, officers or employees in the event that the Internal Revenue Service asserts that the valuation was too low. 

  

	13.	 I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing.

  

					
	SIGNATURE:	 		  	DATE:
			
	 	 		  	 

  
 3 

 EXPLANATION OF FORMS OF
STOCK OWNERSHIP 
 Purpose of This Explanation 

The purpose of this explanation is to provide you with a brief summary of the forms of legal ownership available for the shares that you are
purchasing (the “Purchased Shares”). For a number of reasons, this explanation is no substitute for personal legal advice: 
  

	☐	 To make the explanation short and readable, only the highlights are covered. Some legal rules are not
addressed, even though they may be important in particular cases. 

  

	☐	 While the summary attempts to deal with the most common situations, your own situation may well be different
from the norm. 

  

	☐	 The law may change, and the Company is not responsible for updating this summary. 

 

	☐	 The form in which you own your shares may have a substantial impact on the estate tax treatment that
applies to those shares when you die or the income tax treatment that applies when your survivors sell the shares after your death. 

FOR THESE REASONS, THE COMPANY STRONGLY
ENCOURAGES YOU TO CONSULT YOUR OWN ADVISER BEFORE EXERCISING YOUR OPTION
AND BEFORE MAKING A DECISION ABOUT THE FORM OF OWNERSHIP FOR YOUR
SHARES. 
 Overview 

The Notice of Stock Option Exercise offers five forms of taking title to the Purchased Shares: 

 

	☐	 In your name only, 

 

	☐	 In your name and the name of your spouse as community property, 

 

	☐	 In your name and the name of your spouse as community property with the right of survivorship,

  

	☐	 In your name and the name of your spouse as joint tenants with the right of survivorship, or

  

	☐	 In the name of an eligible revocable trust. 

Title in the Purchased Shares depends upon (a) your marital status, (b) the marital property laws of your state of residence and
(c) any agreement with your spouse altering the existing marital property laws of your state of residence. If you are not married, you generally will take title in your name alone. If you are married, title depends upon the marital property
laws of your state of residence. In general, states are classified either as “community property” states or as “common-law property” states. (But individual state law may vary within these
classifications.) 
 Community Property and Joint Tenancy 

Community property states include California, Texas, Washington, Arizona, Nevada, New Mexico, Idaho, Louisiana and Wisconsin. In a community
property state, property acquired during marriage by either spouse is presumed to be one-half owned by each spouse. All other property is classified as the separate property of the spouse who acquires the
property. While either spouse has equal management 

  
 4 

 
and control over the community property and may sell, spend or encumber all community property, neither spouse may gift community property or partition his/her
one-half interest without the consent of the other spouse. Upon divorce, all community property is divided equally among the spouses and each spouse is entitled to retain all of his/her separate property. Upon
the death of a spouse, one-half of the community property (and all of the decedent spouse’s separate property) will pass to the decedent spouse’s heirs. The other
one-half of the community property remains the property of the surviving spouse. 
 Other states are
common-law property states. In a common-law property state, each spouse is generally deemed to own whatever he/she earns or acquires. 

A married couple may elect to alter the marital property rules by mutually agreeing to take title to property in other forms. For example, a
couple residing in a community property state may generally enter into an agreement and transform what otherwise would be community property into the separate property of the spouse who earns or acquires the property. 

In addition, many community property and common-law property states allow married couples to take
joint title in property acquired during marriage. For example, California allows a married couple to take title in a joint tenancy with the right of survivorship. In a joint tenancy, each spouse owns a
one-half interest in the property as separate property. This means that each spouse may transfer or sell his/her one-half interest in the property while he/she is alive.
However, unlike traditional separate property, a spouse cannot transfer his/her one-half interest to heirs at death. Instead, the surviving spouse automatically receives the decedent spouse’s one-half interest and becomes the full owner of the property. (This is called the “right of survivorship.”) Both spouses must consent to taking property in a joint tenancy in lieu of having the community
property laws apply. 
 California also allows a married couple to take title in the shares as community property with the right of
survivorship. This means that the shares are treated like community property while both spouses are alive. However, if one spouse dies, then the other spouse automatically receives the decedent spouse’s
one-half interest and becomes the full owner of the shares. In other words, the decedent spouse’s will or trust does not control the disposition of the shares. 

If you have the Purchased Shares issued in a form other than those described above, then the transfer will be treated as a
“disposition” for tax purposes. This means that the effect, for tax purposes, will be the same as selling the Purchased Shares. Please refer to the attached tax summary for additional information. 

Trusts 
 A transfer to a trust generally
should not be treated as a “disposition” of the Purchased Shares for tax purposes if the trust satisfies each of the following conditions: 
  

	☐	 You are the sole grantor of the trust, 

 

	☐	 You are the sole trustee, or you and your spouse are the sole
co-trustees, 

  

	☐	 The trustee or trustees are not required to distribute the income of the trust to any person other than you
and/or your spouse while you are alive, and 

  

	☐	 The trust permits you to revoke all or part of the trust and to have the trust’s assets returned to
you, without the consent of any other person (including your spouse). 

  
 5 

 If you have the Purchased Shares issued to a trust that does not meet these requirements, then
the transfer will be treated as a “disposition” for tax purposes. This means that the effect, for tax purposes, will be the same as selling the Purchased Shares. Please refer to the attached tax summary for additional information. 

If you have the Purchased Shares issued to any trust, you will be required to sign a Stock Transfer Agreement in your capacity as trustee.
Under the Stock Transfer Agreement, the Purchased Shares remain subject to the Company’s right of first refusal in accordance with the applicable Notice of Stock Option Grant and Stock Option Agreement. 

THE COMPANY WILL NOT CHECK TO DETERMINE
WHETHER THE FORM OF OWNERSHIP THAT YOU ELECT IN YOUR NOTICE OF
STOCK OPTION EXERCISE IS APPROPRIATE. YOU SHOULD CONSULT YOUR OWN ADVISERS
ON THIS SUBJECT. IF AN INAPPROPRIATE ELECTION IS MADE, THE FORM OF
OWNERSHIP MAY NOT WITHSTAND LEGAL SCRUTINY OR MAY HAVE ADVERSE TAX
CONSEQUENCES. 

  
 6 

 EXPLANATION OF U.S. FEDERAL INCOME
TAX CONSEQUENCES 
 (Current as of October 2016) 

Purpose of This Explanation 
 The purpose
of this explanation is to provide you with a brief summary of the tax consequences of exercising your option. For a number of reasons, this explanation is no substitute for personal tax advice: 

 

	☐	 To make the explanation short and readable, only the highlights are covered. Some tax rules are not
addressed, even though they may be important in particular cases. 

  

	☐	 While the summary attempts to deal with the most common situations, your own tax situation may well be
different from the norm. 

  

	☐	 State and foreign income taxes are not addressed at all, even though they could have a significant impact on
your tax planning. Likewise, federal gift and estate taxes and state inheritance taxes are not discussed. 

  

	☐	 Tax planning involving incentive stock options is exceedingly complex, in part because of the possible
application of the alternative minimum tax. 

  

	☐	 This explanation assumes that your option is not subject to section 409A of the Internal Revenue Code.
However, the Company cannot be certain that section 409A is inapplicable to your option. (Please refer to the last segment of this summary for more information about section 409A.) 

 

	☐	 The tax rules change often, and the Company is not responsible for updating this summary. (Please refer to
the date at the top of this page.) 

 FOR THESE REASONS, THE
COMPANY STRONGLY ENCOURAGES YOU TO CONSULT YOUR OWN TAX ADVISER BEFORE
EXERCISING YOUR OPTION. 
 Exercise of NSO 

If you are exercising an NSO, you will be taxed at the time of exercise. You will recognize ordinary income in an amount equal to the excess
of (a) the fair market value of the Purchased Shares on the date of exercise over (b) the exercise price you are paying. If you are an employee or former employee of the Company, this amount is subject to withholding for income and payroll
taxes. Your tax basis in the Purchased Shares (to calculate capital gain when you sell the shares) is equal to the sum of the exercise price you paid for the Purchased Shares plus any additional amount you recognized as income on the exercise date.

 Disposition of NSO Shares 
 When you
dispose of the Purchased Shares, you will recognize a capital gain equal to the excess of (a) the sale proceeds over (b) your tax basis in the Purchased Shares. If the sale proceeds are less than your tax basis, you will recognize a
capital loss. The capital gain or loss will be long-term if you held the Purchased Shares for more than 12 months. The holding period starts when you exercise your NSO. In general, the maximum marginal federal income tax rate on long-term capital
gains is 20% under current law, but lower long-term capital gain rates may apply to taxpayers in the 15% and 10% marginal federal income tax brackets. 

  
 7 

 Effective January 1, 2013, as a result of the Health Care and Education Reconciliation Act
of 2010, an additional Medicare contribution tax is imposed at a rate of 3.8% on the “net investment income” of individuals with adjusted gross incomes in excess of $200,000 ($250,000 in the case of a joint return, and $125,000 in the case
of a married taxpayer filing separately). “Net investment income” includes income from interest, dividends, and capital gains, reduced by the deductions properly allocated to such income. 

Depending on the level of your adjusted gross income, the additional Medicare contribution tax may be imposed on any short-term and long-term
capital gain income and can increase your marginal tax rate. 
 Limit on ISO Treatment 

The Notice of Stock Option Grant indicates whether your option is a nonstatutory stock option (NSO) or an incentive stock option (ISO). The
favorable tax treatment for ISOs is limited, regardless of what the Notice of Stock Option Grant indicates. Of the options that become exercisable in any calendar year, only options covering the first $100,000 of stock are eligible for ISO
treatment. The excess over $100,000 automatically receives NSO treatment. For this purpose, stock is valued at the time of grant. This means that the value is generally equal to the exercise price. 

For example, assume that you hold an option to buy 60,000 shares for $8 per share. Assume further that the entire option becomes exercisable
in four equal annual installments. Only the first 50,000 shares qualify for ISO treatment. (12,500 times $8 equals $100,000.) The remaining 10,000 shares will be treated as if they had been acquired by exercising an NSO. This is true regardless of
when the option is actually exercised; what matters is when it first could have been exercised. 
 Exercise of ISO and ISO Holding Periods

 If you are exercising an ISO, you will not be taxed under the regular tax rules until you dispose of the Purchased Shares.5 (The alternative minimum tax rules are described below.) The tax treatment at the time of disposition depends on how long you hold the shares. You will satisfy the ISO holding periods if you hold the
Purchased Shares until the later of the following dates: 
  

	☐	 More than two years after the ISO was granted, and 

 

	☐	 More than one year after the ISO is exercised. 

Disposition of ISO Shares 
 If you
dispose of the Purchased Shares after satisfying both of the ISO holding periods, then you will recognize only a long-term capital gain at the time of disposition. The amount of the capital gain is equal to the excess of (a) the sale
proceeds over (b) the exercise price. In general, the maximum marginal federal income tax rate on long-term capital gains is 20% under current law, but lower long-term capital gain rates may apply to taxpayers in the 15% and 10% marginal
federal income tax brackets. 
  
  

	5 	 Generally, a “disposition” of shares purchased under an ISO encompasses any transfer of legal
title, such as a transfer by sale, exchange or gift. It generally does not include a transfer to your spouse, a transfer into joint ownership with right of survivorship (if you remain one of the joint owners), a pledge, a transfer by bequest or
inheritance, or certain tax-free exchanges permitted under the Internal Revenue Code. A transfer to a trust is a “disposition” unless the trust is an eligible revocable trust, as described in the
attached explanation. 

  
 8 

 Effective January 1, 2013, as a result of the Health Care and Education Reconciliation Act
of 2010, an additional Medicare contribution tax is imposed at a rate of 3.8% on the “net investment income” of individuals with adjusted gross incomes in excess of $200,000 ($250,000 in the case of a joint return, and $125,000 in the case
of a married taxpayer filing separately). “Net investment income” includes income from interest, dividends, and capital gains, reduced by the deductions properly allocated to such income. 

If you dispose of the Purchased Shares before either or both of the ISO holding periods are met, then you will recognize ordinary income at
the time of disposition. The amount of ordinary income will be equal to the excess of (a) the fair market value of the Purchased Shares on the date of exercise over (b) the exercise price. But if the disposition is an arm’s length
sale to an unrelated party, the amount of ordinary income will not exceed the total gain from the sale. Under current IRS rules, the ordinary income amount will not be subject to withholding for income or payroll taxes. 

Your tax basis in the Purchased Shares will be equal to the sum of the exercise price you paid for the Purchased Shares plus any additional
amount you recognized as ordinary income. Any gain in excess of your basis will be taxed as a capital gain—either long-term or short-term, depending on how long you held the Purchased Shares after the date of exercise. 

Summary of Alternative Minimum Tax 
 The
alternative minimum tax (AMT) must be paid to the extent that it exceeds your regular federal income tax for the year. For 2016, the first $186,300 ($93,150 for a married taxpayer filing a separate return) of your alternative minimum taxable income
for the year over the allowable exemption amount (see below) is subject to alternative minimum taxation at the rate of 26%. The balance of your alternative minimum taxable income is subject to alternative minimum taxation at the rate of 28%. The
dollar thresholds dividing the 26% and 28% rates are indexed for inflation in future years. Your alternative minimum tax base is equal to your alternative minimum taxable income (AMTI) minus your exemption amount. 

 

	☐	 Alternative Minimum Taxable Income. Your AMTI is equal to your regular taxable income, subject to
certain adjustments and increased by items of tax preference. Among the many adjustments made in computing AMTI are the following: 

  

	 	☐	 State and local income and property taxes are not allowed as a deduction. 

 

	 	☐	 Miscellaneous itemized deductions are not allowed. 

 

	 	☐	 Certain interest deductions are not allowed. 

 

	 	☐	 The standard deduction and personal exemptions are not allowed. 

 

	 	☐	 When an ISO is exercised, the spread is added to income for AMT purposes. (See discussion below.)

  

	☐	 Exemption Amount. Before AMT is calculated, AMTI is reduced by the exemption amount. Under current
law, the exemption amount is as follows: 

  
 9 

							
	Year:	  	Joint Returns:	  	Single Returns:	  	Separate Returns:
	20156	  	$83,400	  	$53,600	  	$41,700
	2016	  	$83,800	  	$53,900	  	$41,900

 The allowable exemption amount is reduced by $0.25 for each $1.00 by which alternative minimum
taxable income for the year exceeds the following amounts: 
  

							
	Year:	  	Joint Returns:	  	Single Returns:	  	Separate Returns:
	20157	  	$158,900	  	$119,200	  	$79,450
	2016	  	$159,700	  	$119,700	  	$79,850

 This means, for example, in 2016, the $83,800 exemption amount is phased out completely for
married individuals filing joint returns when their alternative minimum taxable income reaches $494,900 [($83,800 ÷ $0.25) + $159,700]. 

Application of AMT When ISO Is Exercised 

As noted above, when an ISO is exercised, the spread is included in AMTI at the time of exercise. 

A special rule applies if you dispose of the Purchased Shares in the same year in which you exercised the ISO. If the amount you realize on
the sale is less than the value of the stock at the time of exercise, then the amount includible in AMTI on account of the ISO exercise is limited to the gain realized on the sale.8 

To the extent that your AMT is attributable to the spread on exercising an ISO (and certain other items), you may be able to apply the AMT
that you paid as a credit against your income tax liability in future years. But the rules on calculating the available tax credits were amended frequently in recent years and have become extraordinarily complex. On this issue in particular, you
must consult your own tax adviser. 
 When Purchased Shares are sold, your basis for purposes of computing the capital gain or loss under
the AMT system is increased by the option spread that exists at the time of exercise. Again, an ISO is treated under the AMT system much like an NSO is treated under the regular tax system. But your basis in the ISO shares for purposes of computing
gain or loss under the regular tax system does not reflect any AMT that you pay on the spread at exercise. Therefore, if you pay AMT in the year of the ISO exercise and regular income tax in the year of selling the Purchased Shares, you could
pay tax twice on the same gain (except to the extent that you can use the AMT credit described above). 
  
  

 
  

	6 	 Amounts are indexed for inflation in future years. 

	7 	 Amounts are indexed for inflation in future years. 

	8 	 This is similar to the rule that applies under the regular tax system in the event of a disqualifying
disposition of ISO stock. The amount of ordinary income that must be recognized in that case generally does not exceed the amount of the gain realized in the disposition. 

  
 10 

 SECTION 409A OF THE INTERNAL
REVENUE CODE 
 The preceding summary assumes that section 409A of the Internal Revenue Code does not
apply to your option. In general, your option is exempt from section 409A if the exercise price per share is at least equal to the fair market value per share of the Company’s Common Stock at the time the option was granted by the Board of
Directors. Since shares of Common Stock are not traded on an established securities market, the determination of their fair market value generally is made by the Board of Directors or by an independent appraisal firm retained by the Company. In
either case, there is no guarantee that the Internal Revenue Service will agree with the valuation. 
 If your option were found to be
subject to section 409A, then you would be required to recognize ordinary income as early as the year in which the option (or portion thereof) vests. This amount would also be subject to a 20% federal tax in addition to the federal
income tax at your usual marginal rate for ordinary income. Additional state income taxes may apply in some states. 
 Disclaimer Under
IRS Circular 230 
 To ensure compliance with requirements imposed by U.S. tax authorities, we inform you that any
U.S. tax advice contained in the foregoing summary is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding United States federal, state or local tax penalties, or (ii) promoting, marketing or recommending
to another party any matters addressed herein (including any attachments). 

  
 11 

 TARSUS PHARMACEUTICALS, INC. 2016
STOCK PLAN 
 NOTICE OF STOCK OPTION
EXERCISE (EARLY EXERCISE) 
 You must sign this Notice on Page 3 before
submitting it to the Company. 
 Optionee Information: 
  

							
	 Name:
	  	 	  	 Social Security Number:
	  	 
	 Address:
	  	 	  	 Employee Number:
	  	 
		  	 	  		  	

 Option Information: 
  

			
	 Date of Grant: _____________ ___, 20__
	  	 Type of Stock Option:

	 Exercise Price per Share: $________
	  	 ☐ Nonstatutory (NSO)

	Total number of shares of Common Stock of Tarsus Pharmaceuticals, Inc. (the “Company”) covered by the option: __________________	  	 ☐ Incentive (ISO)

 Exercise Information: 
  

					
	
	 Number of shares of Common Stock of the Company for which the option is being exercised now: ________________.
(These shares are referred to below as the “Purchased Shares.”)

	
	 Total Exercise Price for the Purchased Shares: $____________

	
	 Form of payment enclosed [check all that apply]:

	
	 ☐    Checkfor $____________, payable to
“Tarsus Pharmaceuticals, Inc.” 

	
	 ☐    Certificate(s)for ________________
shares of Common Stock of the Company. These shares will be valued as of the date this notice is received by the Company. [Requires Company consent.] 

	
	 ☐    AttestationForm covering
________________ shares of Common Stock of the Company. These shares will be valued as of the date this notice is received by the Company. [Requires Company consent.] 

	
	 Name(s) in which the Purchased Shares should be registered [please review the attached explanation of the
available forms of ownership, and then check one box]:

	
	 ☐    Inmy name only 

		
	 ☐    Inthe names of my spouse and myself
as community property
	  	 My spouse’s name (if applicable):

		
	 ☐    Inthe names of my spouse and myself
as community property with the right of survivorship
	  	 
		
	 ☐    Inthe names of my spouse and myself as
joint tenants with the right of survivorship
	  	

					
	 ☐   In the name of an eligible revocable trust
[requires Stock Transfer Agreement]
	 		 	Full legal name of revocable trust: 

		 		 	 
	  
	 	  
	 	   

	  
	 	  
	 	   

  

					
	 The certificate for the Purchased Shares should be sent to the following address: 
	 		 	
		 		 	 
	  
	 	  
	 	   

	  
	 	  
	 	   

	  
	 	  
	 	   

 Representations and Acknowledgements of the Optionee: 

 

	1.	 I represent and warrant to the Company that I am acquiring and will hold the Purchased Shares for investment
for my account only, and not with a view to, or for resale in connection with, any “distribution” of the Purchased Shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). 

 

	2.	 I understand that my purchase of the Purchased Shares has not been registered under the Securities Act by
reason of a specific exemption therefrom and that the Purchased Shares must be held indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company
and its counsel) that registration is not required. 

  

	3.	 I acknowledge that the Company is under no obligation to register the Purchased Shares or any sale or
transfer thereof. 

  

	4.	 I am aware of Rule 144 under the Securities Act, which permits limited public resales of securities acquired
in a non-public offering, subject to the satisfaction of certain conditions. These conditions may include (without limitation) that certain current public information about the issuer be available, that the
resale occur only after a holding period required by Rule 144 has been satisfied, that the sale occur through an unsolicited “broker’s transaction” and that the amount of securities being sold during any three-month period not exceed
specified limitations. I understand that the conditions for resale set forth in Rule 144 have not been satisfied as of the date set forth below and that the Company is not required to take action to satisfy any conditions applicable to it.

  

	5.	 I will not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities Act,
the Securities Exchange Act of 1934, or the rules promulgated thereunder, including Rule 144 under the Securities Act. 

  

	6.	 I acknowledge that I have received and had access to such information as I consider necessary or appropriate
for deciding whether to invest in the Purchased Shares and that I had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the issuance of the Purchased Shares. 

 

	7.	 I am aware that my investment in the Company is a speculative investment that has limited liquidity and is
subject to the risk of complete loss. I am able, without impairing my financial condition, to hold the Purchased Shares for an indefinite period and to suffer a complete loss of my investment in the Purchased Shares. 

 

	8.	 I acknowledge that the Purchased Shares remain subject to the Company’s right of first refusal and the
market stand-off (sometimes referred to as the “lock-up”) and may remain subject to the Company’s right of repurchase, all in accordance with the
applicable Notice of Stock Option Grant and Stock Option Agreement. 

  
 2 

	9.	 I acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice of Stock
Option Grant and Stock Option Agreement. 

  

	10.	 I acknowledge that I have received a copy of the Company’s explanation of the forms of ownership
available for my Purchased Shares. I acknowledge that the Company has encouraged me to consult my own adviser to determine the form of ownership that is appropriate for me. In the event that I choose to transfer my Purchased Shares to a trust, I
agree to sign a Stock Transfer Agreement. In the event that I choose to transfer my Purchased Shares to a trust that does not satisfy the requirements described in the attached explanation (i.e., a trust that is not an eligible revocable trust), I
also acknowledge that the transfer will be treated as a “disposition” for tax purposes. As a result, the favorable ISO tax treatment will be unavailable and other unfavorable tax consequences may occur. 

 

	11.	 I acknowledge that I have received a copy of the Company’s explanation of the federal income tax
consequences of an option exercise and the tax election under section 83(b) of the Internal Revenue Code. In the event that I choose to make a section 83(b) election, I acknowledge that it is my responsibility—and not the Company’s
responsibility—to file the election in a timely manner, even if I ask the Company or its agents to make the filing on my behalf. I acknowledge that the Company has encouraged me to consult my own adviser to determine the tax consequences of
acquiring the Purchased Shares at this time. 

  

	12.	 I agree that the Company does not have a duty to design or administer the 2016 Stock Plan or its other
compensation programs in a manner that minimizes my tax liabilities. I will not make any claim against the Company or its Board of Directors, officers or employees related to tax liabilities arising from my options or my other compensation. In
particular, I acknowledge that my options are exempt from section 409A of the Internal Revenue Code only if the exercise price per share is at least equal to the fair market value per share of the Company’s Common Stock at the time the option
was granted by the Company’s Board of Directors. Since shares of the Company’s Common Stock are not traded on an established securities market, the determination of their fair market value was made by the Company’s Board of Directors
or by an independent valuation firm retained by the Company. I acknowledge that there is no guarantee in either case that the Internal Revenue Service will agree with the valuation, and I will not make any claim against the Company or its Board of
Directors, officers or employees in the event that the Internal Revenue Service asserts that the valuation was too low. 

  

	13.	 I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing.

  

					
	 SIGNATURE:
	 		 	 DATE:

			
	   
	 	  
	 	   

  
 3 

 EXPLANATION OF FORMS OF
STOCK OWNERSHIP 
 Purpose of This Explanation 

The purpose of this explanation is to provide you with a brief summary of the forms of legal ownership available for the shares that you are
purchasing (the “Purchased Shares”). For a number of reasons, this explanation is no substitute for personal legal advice: 
  

	☐	 To make the explanation short and readable, only the highlights are covered. Some legal rules are not
addressed, even though they may be important in particular cases. 

  

	☐	 While the summary attempts to deal with the most common situations, your own situation may well be different
from the norm. 

  

	☐	 The law may change, and the Company is not responsible for updating this summary. 

 

	☐	 The form in which you own your shares may have a substantial impact on the estate tax treatment that
applies to those shares when you die or the income tax treatment that applies when your survivors sell the shares after your death. 

FOR THESE REASONS, THE COMPANY STRONGLY
ENCOURAGES YOU TO CONSULT YOUR OWN ADVISER BEFORE EXERCISING YOUR OPTION
AND BEFORE MAKING A DECISION ABOUT THE FORM OF OWNERSHIP FOR YOUR
SHARES. 
 Overview 

The Notice of Stock Option Exercise offers five forms of taking title to the Purchased Shares: 

 

	☐	 In your name only, 

 

	☐	 In your name and the name of your spouse as community property, 

 

	☐	 In your name and the name of your spouse as community property with the right of survivorship,

  

	☐	 In your name and the name of your spouse as joint tenants with the right of survivorship, or

  

	☐	 In the name of an eligible revocable trust. 

Title in the Purchased Shares depends upon (a) your marital status, (b) the marital property laws of your state of residence and
(c) any agreement with your spouse altering the existing marital property laws of your state of residence. If you are not married, you generally will take title in your name alone. If you are married, title depends upon the marital property
laws of your state of residence. In general, states are classified either as “community property” states or as “common-law property” states. (But individual state law may vary within these
classifications.) 
 Community Property and Joint Tenancy 

Community property states include California, Texas, Washington, Arizona, Nevada, New Mexico, Idaho, Louisiana and Wisconsin. In a community
property state, property acquired during marriage by either spouse is presumed to be one-half owned by each spouse. All other property is classified as the separate property of the spouse who acquires the
property. While either spouse has equal management 

  
 4 

 
and control over the community property and may sell, spend or encumber all community property, neither spouse may gift community property or partition his/her
one-half interest without the consent of the other spouse. Upon divorce, all community property is divided equally among the spouses and each spouse is entitled to retain all of his/her separate property. Upon
the death of a spouse, one-half of the community property (and all of the decedent spouse’s separate property) will pass to the decedent spouse’s heirs. The other
one-half of the community property remains the property of the surviving spouse. 
 Other states are
common-law property states. In a common-law property state, each spouse is generally deemed to own whatever he/she earns or acquires. 

A married couple may elect to alter the marital property rules by mutually agreeing to take title to property in other forms. For example, a
couple residing in a community property state may generally enter into an agreement and transform what otherwise would be community property into the separate property of the spouse who earns or acquires the property. 

In addition, many community property and common-law property states allow married couples to take
joint title in property acquired during marriage. For example, California allows a married couple to take title in a joint tenancy with the right of survivorship. In a joint tenancy, each spouse owns a
one-half interest in the property as separate property. This means that each spouse may transfer or sell his/her one-half interest in the property while he/she is alive.
However, unlike traditional separate property, a spouse cannot transfer his/her one-half interest to heirs at death. Instead, the surviving spouse automatically receives the decedent spouse’s one-half interest and becomes the full owner of the property. (This is called the “right of survivorship.”) Both spouses must consent to taking property in a joint tenancy in lieu of having the community
property laws apply. 
 California also allows a married couple to take title in the shares as community property with the right of
survivorship. This means that the shares are treated like community property while both spouses are alive. However, if one spouse dies, then the other spouse automatically receives the decedent spouse’s
one-half interest and becomes the full owner of the shares. In other words, the decedent spouse’s will or trust does not control the disposition of the shares. 

If you have the Purchased Shares issued in a form other than those described above, then the transfer will be treated as a
“disposition” for tax purposes. This means that the effect, for tax purposes, will be the same as selling the Purchased Shares. Please refer to the attached tax summary for additional information. 

Trusts 
 A transfer to a trust generally
should not be treated as a “disposition” of the Purchased Shares for tax purposes if the trust satisfies each of the following conditions: 
  

	☐	 You are the sole grantor of the trust, 

 

	☐	 You are the sole trustee, or you and your spouse are the sole
co-trustees, 

  

	☐	 The trustee or trustees are not required to distribute the income of the trust to any person other than you
and/or your spouse while you are alive, and 

  

	☐	 The trust permits you to revoke all or part of the trust and to have the trust’s assets returned to
you, without the consent of any other person (including your spouse). 

  
 5 

 If you have the Purchased Shares issued to a trust that does not meet these requirements, then
the transfer will be treated as a “disposition” for tax purposes. This means that the effect, for tax purposes, will be the same as selling the Purchased Shares. Please refer to the attached tax summary for additional information. 

If you have the Purchased Shares issued to any trust, you will be required to sign a Stock Transfer Agreement in your capacity as trustee.
Under the Stock Transfer Agreement, the Purchased Shares remain subject to the Company’s right of first refusal and may remain subject to the Company’s right of repurchase, all in accordance with the applicable Notice of Stock Option Grant
and Stock Option Agreement. 
 THE COMPANY WILL NOT CHECK TO
DETERMINE WHETHER THE FORM OF OWNERSHIP THAT YOU ELECT IN YOUR NOTICE
OF STOCK OPTION EXERCISE IS APPROPRIATE. YOU SHOULD CONSULT YOUR OWN
ADVISERS ON THIS SUBJECT. IF AN INAPPROPRIATE ELECTION IS MADE, THE
FORM OF OWNERSHIP MAY NOT WITHSTAND LEGAL SCRUTINY OR MAY HAVE
ADVERSE TAX CONSEQUENCES. 

  
 6 

 EXPLANATION OF FEDERAL INCOME
TAX CONSEQUENCES 
 AND SECTION 83(b) ELECTION 

(Current as of October 2016) 
 Purpose of This
Explanation 
 The purpose of this explanation is to provide you with a brief summary of the tax consequences of exercising your option.
For a number of reasons, this explanation is no substitute for personal tax advice: 
  

	☐	 To make the explanation short and readable, only the highlights are covered. Some tax rules are not
addressed, even though they may be important in particular cases. 

  

	☐	 While the summary attempts to deal with the most common situations, your own tax situation may well be
different from the norm. 

  

	☐	 State and foreign income taxes are not addressed at all, even though they could have a significant impact on
your tax planning. Likewise, federal gift and estate taxes and state inheritance taxes are not discussed. 

  

	☐	 Tax planning involving incentive stock options is exceedingly complex, in part because of the possible
application of the alternative minimum tax. 

  

	☐	 The explanation assumes that you are paying the exercise price of your option in cash (or in the form of a
full-recourse promissory note with an interest rate that meets IRS requirements). If you are paying the exercise price in the form of stock, you become subject to special rules that are not addressed here. 

 

	☐	 This explanation assumes that your option is not subject to section 409A of the Internal Revenue Code.
However, the Company cannot be certain that section 409A is inapplicable to your option. (Please refer to the last segment of this summary for more information about section 409A.) 

 

	☐	 The tax rules change often, and the Company is not responsible for updating this summary. (Please refer to
the date at the top of this page.) 

 FOR THESE REASONS,
THE COMPANY STRONGLY ENCOURAGES YOU TO CONSULT YOUR OWN TAX ADVISER
BEFORE EXERCISING YOUR OPTION AND BEFORE MAKING A DECISION ABOUT FILING
OR NOT FILING A SECTION 83(b) ELECTION. 

Exercise of NSO to Purchase Vested Shares 

The Notice of Stock Option Grant indicates whether your Purchased Shares are already vested. Vested shares are no longer subject to the
Company’s right to repurchase them, although they are still subject to the Company’s right of first refusal. If you know that your Purchased Shares are already vested, there is no need to file a section 83(b) election. 

If you are exercising an NSO to purchase vested shares, you will be taxed at the time of exercise. You will recognize ordinary income in an
amount equal to the excess of (a) the fair market value of the Purchased Shares on the date of exercise over (b) the exercise price you are paying. If you are an employee or former employee of the Company, this amount is subject to
withholding for income and payroll taxes. Your tax basis in the Purchased Shares (to calculate capital gain when you sell the shares) is equal to the sum of the exercise price you paid for the Purchased Shares plus any additional amount you
recognized as income on the exercise date. 

  
 7 

 Exercise of NSO to Purchase Non-Vested Shares 

If you are exercising an NSO to purchase non-vested shares, and if you do not file a timely election
under section 83(b) of the Internal Revenue Code, then you will not be taxed at the time of exercise. Instead, you will be taxed whenever an increment of Purchased Shares vests—in other words, when the Company no longer has the right to
repurchase those shares. The Notice of Stock Option Grant indicates when this occurs, generally over a period of several years. Whenever an increment of Purchased Shares vests, you will recognize ordinary income in an amount equal to the excess of
(a) the fair market value of those Purchased Shares on the date of vesting over (b) the exercise price you are paying for those Purchased Shares. If you are an employee or former employee of the Company, this amount will be subject to
withholding for income and payroll taxes. Your tax basis in the Purchased Shares (to calculate capital gain when you sell the shares) will be equal to the sum of the exercise price you paid for the Purchased Shares plus any additional amount you
recognized as income on each vesting date. 
 If you are exercising an NSO to purchase non-vested
shares, and if you file a timely election under section 83(b) of the Internal Revenue Code, then you will be taxed at the time of exercise. You will recognize ordinary income in an amount equal to the excess of (a) the fair market value of
the Purchased Shares on the date of exercise over (b) the exercise price you are paying. If you are an employee or former employee of the Company, this amount is subject to withholding for income and payroll taxes. Your tax basis in the
Purchased Shares (to calculate capital gain when you sell the shares) is equal to the sum of the exercise price you paid for the Purchased Shares plus any additional amount you recognized as income as a result of filing the section 83(b) election.
Even if the fair market value of the Purchased Shares on the date of exercise equals the exercise price (and thus no tax is payable), the section 83(b) election must be made in order to avoid having any subsequent appreciation taxed as ordinary
income at the time of vesting. 
 YOU MUST FILE A
SECTION 83(b) ELECTION WITH THE INTERNAL REVENUE
SERVICE WITHIN 30 DAYS AFTER THE NOTICE OF STOCK OPTION EXERCISE IS
SIGNED. The 30-day filing period cannot be extended. If you miss the deadline, you will be taxed as the Purchased Shares vest, based on the value of the
shares at that time. (See above.) The form for making the 83(b) election is attached. Additional copies of the form must be filed with the Company. 

Disposition of NSO Shares 
 When you
dispose of the Purchased Shares, you will recognize a capital gain equal to the excess of (a) the sale proceeds over (b) your tax basis in the Purchased Shares. If the sale proceeds are less than your tax basis, you will recognize a
capital loss. The capital gain or loss will be long-term if you held the Purchased Shares for more than 12 months. The holding period normally starts when you exercise your NSO. In general, the maximum marginal federal income tax rate on long-term
capital gains is 20% under current law, but lower long-term capital gain rates may apply to taxpayers in the 15% and 10% marginal federal income tax brackets. 

Effective January 1, 2013, as a result of the Health Care and Education Reconciliation Act of 2010, an additional Medicare contribution
tax is imposed at a rate of 3.8% on the “net investment income” of individuals with adjusted gross incomes in excess of $200,000 ($250,000 in the case of a joint return, and $125,000 in the case of a married taxpayer filing separately).
“Net investment income” includes income from interest, dividends, and capital gains, reduced by the deductions properly allocated to such income. 

Depending on the level of your adjusted gross income, the additional Medicare contribution tax may be imposed on any short-term and long-term
capital gain income and can increase your marginal tax rate. 

  
 8 

 Limit on ISO Treatment 

The Notice of Stock Option Grant indicates whether your option is a nonstatutory stock option (NSO) or an incentive stock option (ISO). The
favorable tax treatment for ISOs is limited, regardless of what the Notice of Stock Option Grant indicates. Of the options that become exercisable in any calendar year, only options covering the first $100,000 of stock are eligible for ISO
treatment. The excess over $100,000 automatically receives NSO treatment. For this purpose, stock is valued at the time of grant. This means that the value is generally equal to the exercise price. 

For example, assume that you hold an option to buy 50,000 shares for $4 per share. Assume further that the entire option is exercisable
immediately after the date of grant. (It is irrelevant when the underlying stock vests.) Only the first 25,000 shares qualify for ISO treatment. (25,000 times $4 equals $100,000.) The remaining 25,000 shares will be treated as if they had been
acquired by exercising an NSO. This is true regardless of when the option is actually exercised; what matters is when it first could have been exercised. 

Exercise of ISO and ISO Holding Periods 

If you are exercising an ISO, you will not be taxed under the regular tax rules until you dispose of the Purchased Shares.9 (The alternative minimum tax rules are described below.) The tax treatment at the time of disposition depends on how long you hold the shares. You will satisfy the ISO holding periods if you hold the
Purchased Shares until the later of the following dates: 
  

	☐	 More than two years after the ISO was granted, and 

 

	☐	 More than one year after the ISO is exercised. 

Disposition of ISO Shares 
 If you
dispose of the Purchased Shares after satisfying both of the ISO holding periods, then you will recognize only a long-term capital gain at the time of disposition. The amount of the capital gain is equal to the excess of (a) the sale
proceeds over (b) the exercise price. In general, the maximum marginal federal income tax rate on long-term capital gains is 20% under current law, but lower long-term capital gain rates may apply to taxpayers in the 15% and 10% marginal
federal income tax brackets. 
 Effective January 1, 2013, as a result of the Health Care and Education Reconciliation Act of 2010, an
additional Medicare contribution tax is imposed at a rate of 3.8% on the “net investment income” of individuals with adjusted gross incomes in excess of $200,000 ($250,000 in the case of a joint return, and $125,000 in the case of a
married taxpayer filing separately). “Net investment income” includes income from interest, dividends, and capital gains, reduced by the deductions properly allocated to such income. 

If you dispose of the Purchased Shares before either or both of the ISO holding periods are met, then you will recognize ordinary income at
the time of disposition. The calculation of the ordinary income amount depends on whether the shares are vested at the time of exercise. 
  

	 	 

 

	9 	 Generally, a “disposition” of shares purchased under an ISO encompasses any transfer of legal
title, such as a transfer by sale, exchange or gift. It generally does not include a transfer to your spouse, a transfer into joint ownership with right of survivorship (if you remain one of the joint owners), a pledge, a transfer by bequest or
inheritance, or certain tax-free exchanges permitted under the Internal Revenue Code. A transfer to a trust is a “disposition” unless the trust is an eligible revocable trust, as described in the
attached explanation. 

  
 9 

	☐	 Shares Vested. If the shares are vested at the time of exercise, the amount of ordinary income will
be equal to the excess of (a) the fair market value of the Purchased Shares on the date of exercise over (b) the exercise price. But if the disposition is an arm’s length sale to an unrelated party, the amount of ordinary income will
not exceed the total gain from the sale. Under current IRS rules, the ordinary income amount will not be subject to withholding for income or payroll taxes. Your tax basis in the Purchased Shares will be equal to the sum of the exercise price you
paid for the Purchased Shares plus any additional amount you recognized as ordinary income. Any gain in excess of your basis will be taxed as a capital gain—either long-term or short-term, depending on how long you held the Purchased Shares
after the date of exercise. 

  

	☐	 Shares Not Vested. If the Purchased Shares are not vested at the time of exercise, then the amount of
ordinary income will be equal to the excess of (a) the fair market value of the Purchased Shares on the date of vesting over (b) the exercise price. But if the disposition is an arm’s length sale to an unrelated party, the
amount of ordinary income will not exceed the total gain from the sale. Under current IRS rules, the ordinary income amount will not be subject to withholding for income or payroll taxes. Your tax basis in the Purchased Shares will be equal to the
sum of the exercise price you paid for the Purchased Shares plus any additional amount you recognized as ordinary income. Any gain in excess of your basis will be taxed as a capital gain—either long-term or short-term, depending on how long you
held the Purchased Shares after the date of vesting. Please note that it makes no difference under the regular tax rules whether or not you filed a section 83(b) election at the time you exercised your ISO. In either case, your regular
taxable income is measured as of the time of vesting rather than the time of exercise. 

 Summary of Alternative Minimum Tax 

The alternative minimum tax (AMT) must be paid to the extent that it exceeds your regular federal income tax for the year. For 2016, the first
$186,300 ($93,150 for a married taxpayer filing a separate return) of your alternative minimum taxable income for the year over the allowable exemption amount (see below) is subject to alternative minimum taxation at the rate of 26%. The balance of
your alternative minimum taxable income is subject to alternative minimum taxation at the rate of 28%. The dollar thresholds dividing the 26% and 28% rates are indexed for inflation in future years.    Your alternative minimum
tax base is equal to your alternative minimum taxable income (AMTI) minus your exemption amount. 
  

	☐	 Alternative Minimum Taxable Income. Your AMTI is equal to your regular taxable income, subject to
certain adjustments and increased by items of tax preference. Among the many adjustments made in computing AMTI are the following: 

  

	 	☐	 State and local income and property taxes are not allowed as a deduction. 

 

	 	☐	 Miscellaneous itemized deductions are not allowed. 

 

	 	☐	 Certain interest deductions are not allowed. 

 

	 	☐	 The standard deduction and personal exemptions are not allowed. 

 

	 	☐	 When an ISO is exercised, the spread is added to income for AMT purposes. (See discussion below.)

  
 10 

	☐	 Exemption Amount. Before AMT is calculated, AMTI is reduced by the exemption amount. Under current
law, the exemption amount is as follows: 

  

							
	
Year:
	  	Joint Returns:	  	Single Returns:	  	Separate Returns:
	
201510
	  	$83,400	  	$53,600	  	$41,700
	
2016
	  	$83,800	  	$53,900	  	$41,900

 The allowable exemption amount is reduced by $0.25 for each $1.00 by which alternative minimum
taxable income for the year exceeds the following amounts: 
  

							
	
Year:
	  	Joint Returns:	  	Single Returns:	  	Separate Returns:
	
201511
	  	$158,900	  	$119,200	  	$79,450
	
2016
	  	$159,700	  	$119,700	  	$79,850

 This means, for example, in 2016, the $83,800 exemption amount is phased out completely for
married individuals filing joint returns when their alternative minimum taxable income reaches $494,900 [($83,800 ÷ $0.25) + $159,700]. 

Application of AMT When ISO Is Exercised 

As noted above, when an ISO is exercised, the spread is included in AMTI at the time of exercise, unless the Purchased Shares are not yet
vested at the time of exercise. If the Purchased Shares are not yet vested, the value of the shares minus the exercise price is included in AMTI when the shares vest. However, if you make an election under section 83(b) within 30 days after
exercise, then the spread is included in AMTI at the time of exercise. YOU MUST FILE AN 83(b) ELECTION WITH
THE INTERNAL REVENUE SERVICE WITHIN 30 DAYS AFTER THE NOTICE OF STOCK
OPTION EXERCISE IS SIGNED. The 30-day filing period cannot be extended. 

A special rule applies if you dispose of the Purchased Shares in the same year in which you exercised the ISO. If the amount you realize on
the sale is less than the value of the stock at the time of exercise, then the amount includible in AMTI on account of the ISO exercise is limited to the gain realized on the sale.12 

To the extent that your AMT is attributable to the spread on exercising an ISO (and certain other items), you may be able to apply the AMT
that you paid as a credit against your income tax liability in future years. But the rules on calculating the available tax credits were amended frequently in recent years and have become extraordinarily complex. On this issue in particular, you
must consult your own tax adviser. 
 When Purchased Shares are sold, your basis for purposes of computing the capital gain or loss under
the AMT system is increased by the option spread that exists at the time of exercise. Again, an ISO is treated under the AMT system much like an NSO is treated under the regular tax system. But your basis in the ISO shares for purposes of computing
gain or loss under the regular tax system does not reflect any AMT that you pay on the spread at exercise. Therefore, if you pay AMT in the year of the ISO exercise and regular income tax in the year of selling the Purchased Shares, you could
pay tax twice on the same gain (except to the extent that you can use the AMT credit described above). 
  

 

	10 	 Amounts are indexed for inflation in future years. 

	11 	 Amounts are indexed for inflation in future years. 

	12 	 This is similar to the rule that applies under the regular tax system in the event of a disqualifying
disposition of ISO stock. The amount of ordinary income that must be recognized in that case generally does not exceed the amount of the gain realized in the disposition. 

  
 11 

 Section 409A of the Internal Revenue Code 

The preceding summary assumes that section 409A of the Internal Revenue Code does not apply to your option. In general, your option is
exempt from section 409A if the exercise price per share is at least equal to the fair market value per share of the Company’s Common Stock at the time the option was granted by the Board of Directors. Since shares of Common Stock are not
traded on an established securities market, the determination of their fair market value generally is made by the Board of Directors or by an independent appraisal firm retained by the Company. In either case, there is no guarantee that the Internal
Revenue Service will agree with the valuation. 
 If your option were found to be subject to section 409A, then you would be required
to recognize ordinary income as early as the year in which the option (or portion thereof) vests. This amount would also be subject to a 20% federal tax in addition to the federal income tax at your usual marginal rate for ordinary income.
Additional state income taxes may apply in some states. 
 Disclaimer Under IRS Circular 230 

To ensure compliance with requirements imposed by U.S. tax authorities, we inform you that any U.S. tax advice contained in
the foregoing summary is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding United States federal, state or local tax penalties, or (ii) promoting, marketing or recommending to another party any matters
addressed herein (including any attachments). 

  
 12 

 SECTION 83(b) ELECTION 

The undersigned taxpayer hereby elects, pursuant to Sections 55 and 83(b) of the Internal Revenue Code of 1986, as amended, and pursuant to
Treasury Regulations Section 1.83-2, to include in gross income as compensation for services the excess (if any) of the fair market value of the shares described below over an amount paid for those
shares. 
  

	 	A.	 The taxpayer who performed the services is: 

 

					
	 Name:
	  	 	  	
	 Address:
	  	 	  	
		  	 	  	
	 Social Security No.:
	  	 	  	

  

	 	B.	 The property with respect to which the election is made is ______ shares of the common stock of Tarsus
Pharmaceuticals, Inc. 

  

	 	C.	 The property was transferred to the taxpayer on __________ ___, _____. 

 

	 	D.	 The taxable year for which the election is made is the calendar year _____. 

 

	 	E.	 The property is subject to a repurchase right pursuant to which the issuer has the right to acquire the
property if for any reason taxpayer’s service with the issuer terminates. The issuer’s repurchase right lapses in a series of installments over a ______-year period ending on __________ ___, _____. 

 

	 	F.	 The fair market value of such property at the time of transfer (determined without regard to any restriction
other than a restriction that by its terms will never lapse) is $_____ per share x _____ shares = $_________. 

  

	 	G.	 For the property transferred, the taxpayer paid $_____ per share × _____ shares = $_____.

  

	 	H.	 The amount to include in gross income is $__________. [The amount in Item F less the amount in Item
G] 

  

	 	I.	 This statement is executed on __________ ___, _____. 

 

					
	 	 		  	 
			
	 Signature of Spouse (if any)
	 		  	 Signature of Taxpayer

 Within 30 days after the date of transfer of the property, this election must be filed with the Internal Revenue Service
office where the taxpayer files his or her annual federal income tax return. The filing should be made by registered or certified mail, return receipt requested. The taxpayer must deliver a copy of the completed form to the Company. 

 TARSUS PHARMACEUTICALS, INC. 2016
STOCK PLAN: 
 SUMMARY OF STOCK GRANT
(FOR SERVICES) 
 The Transferee is acquiring shares of the Common Stock of Tarsus Pharmaceuticals, Inc.
on the following terms: 
  

			
	 Name of Transferee:
  

Total Number of Transferred Shares:
  

Date of Transfer:
  

Vesting Commencement Date:
  

Vesting Schedule:
	  	 «Name»
  

«TotalShares»
  

«DateTransfer»
  

«VestComDate»
  

The Forfeiture Condition shall lapse with respect to the first «Percent»% of the Transferred Shares when the Transferee completes
«CliffPeriod» months of continuous Service beginning with the Vesting Commencement Date set forth above. The Forfeiture Condition shall lapse with respect to an additional «Fraction»% of the Transferred Shares when the
Transferee completes each month of continuous Service thereafter.

 By signing below, the Transferee and the Company agree that the acquisition of the Transferred Shares is
governed by the terms and conditions of the 2016 Stock Plan and the Stock Grant Agreement. Both of these documents are attached to, and made a part of, this Summary of Stock Grant. The Transferee agrees to accept by email all documents relating to
the Company, the Plan or this grant and all other documents that the Company is required to deliver to its security holders (including, without limitation, disclosures that may be required by the Securities and Exchange Commission). The Transferee
also agrees that the Company may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company. If the Company posts these documents on a website, it shall notify the Transferee by
email of their availability. The Transferee acknowledges that he or she may incur costs in connection with electronic delivery, including the cost of accessing the internet and printing fees, and that an interruption of internet access may interfere
with his or her ability to access the documents. This consent shall remain in effect until the Transferee gives the Company written notice that it should deliver paper documents. 

 

							
	 TRANSFEREE:
	 		  	 TARSUS PHARMACEUTICALS, INC.

				
	  	 	 	  	By:	  	  
	 Address for Mailing Stock Certificate:
	 		  	 Title:
	  	 
	 	 		  		  	
	 	 		  		  	

 TARSUS PHARMACEUTICALS, INC. 2016
STOCK PLAN: 
 STOCK GRANT AGREEMENT (FOR
SERVICES) 
 SECTION 1.     ACQUISITION OF SHARES. 

(a)        Transfer. On the terms and conditions set forth in the Summary of
Stock Grant and this Agreement, the Company agrees to transfer to the Transferee the number of Shares set forth in the Summary of Stock Grant. The transfer shall occur at the offices of the Company on the date of transfer set forth in the Summary of
Stock Grant or at such other place and time as the parties may agree. 

(b)        Consideration. The Transferee and the Company agree that the
Transferred Shares are being issued to the Transferee as consideration for a portion of the services performed by the Transferee for the Company. The value of such portion is agreed to be not less than 100% of the Fair Market Value of the
Transferred Shares. 
 (c)        Stock Plan and Defined Terms. The transfer
of the Transferred Shares is subject to the Plan, a copy of which the Transferee acknowledges having received. The provisions of the Plan are incorporated into this Agreement by this reference. Except as otherwise defined in this Agreement
(including without limitation Section 11 hereof), capitalized terms shall have the meaning ascribed to such terms in the Plan. 
 SECTION 2.
    FORFEITURE CONDITION. 
 (a)        Scope of
Forfeiture Condition. All Transferred Shares initially shall be Restricted Shares and shall be subject to forfeiture to the Company. The Transferee shall not transfer, assign, encumber or otherwise dispose of any Restricted Shares without the
Company’s written consent, except as provided in the following sentence. The Transferee may transfer Restricted Shares to one or more members of the Transferee’s Immediate Family or to a trust established by the Transferee for the benefit
of the Transferee and/or one or more members of the Transferee’s Immediate Family, provided in either case that the Transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Agreement. If the
Transferee transfers any Restricted Shares, then this Agreement shall apply to the Subsequent Transferee to the same extent as to the Transferee. 

(b)        Vesting. The Forfeiture Condition shall lapse and the Restricted
Shares shall become vested in accordance with the vesting schedule set forth in the Summary of Stock Grant. 

(c)        Execution of Forfeiture. The Forfeiture Condition shall be
applicable only if the Transferee’s Service terminates for any reason, with or without cause, including (without limitation) death or disability, before all Restricted Shares have become vested. In the event that the Transferee’s Service
terminates for any reason, the certificate(s) representing any remaining Restricted Shares shall be delivered to the Company. The Company shall make no payment for Restricted Shares that are forfeited. 

(d)        Additional or Exchanged Securities and Property. In the event of a
merger or consolidation of the Company, a sale of all or substantially all of the Company’s stock or assets, any other corporate reorganization, the declaration of a stock dividend, the declaration of an extraordinary dividend payable in a form
other than stock, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities, any securities or other property
(including cash or cash equivalents) that are by reason of such transaction exchanged for, or distributed with respect to, any Restricted Shares or into which such Restricted Shares thereby become convertible shall immediately be subject to the
Forfeiture Condition. Appropriate adjustments to reflect the exchange or distribution of such securities or property shall be made to the number and/or class of the Restricted Shares. 

 (e)        Termination of Rights as
Stockholder. If Restricted Shares are forfeited in accordance with this Section 2, then the person who is to forfeit such Restricted Shares shall no longer have any rights as a holder of such Restricted Shares. Such Restricted Shares shall
be deemed to have been forfeited in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Agreement. 

(f)        Escrow. Upon issuance, the certificates for Restricted Shares shall
be deposited in escrow with the Company to be held in accordance with the provisions of this Agreement. Any new, substituted or additional securities or other property described in Subsection (d) above shall immediately be delivered to the
Company to be held in escrow, but only to the extent the Transferred Shares are at the time Restricted Shares. All regular cash dividends on Restricted Shares (or other securities at the time held in escrow) shall be paid directly to the Transferee
and shall not be held in escrow. Restricted Shares, together with any other assets or securities held in escrow hereunder, shall be (i) surrendered to the Company for forfeiture and cancellation in the event that the Forfeiture Condition or
Right of First Refusal applies or (ii) released to the Transferee upon the Transferee’s request to the extent the Transferred Shares are no longer Restricted Shares (but not more frequently than once every six months). In any event, all
Transferred Shares that have vested (and any other vested assets and securities attributable thereto) shall be released within 60 days after the earlier of (i) the termination of the Transferee’s Service or (ii) the lapse of the Right
of First Refusal. 
 (g)        Part-Time Employment and Leaves of Absence.
If the Transferee commences working on a part-time basis, then the Company may adjust the vesting schedule set forth in the Summary of Stock Grant. If the Transferee goes on a leave of absence, then the Company may adjust the vesting schedule set
forth in the Summary of Stock Grant in accordance with the Company’s leave of absence policy or the terms of such leave. Except as provided in the preceding sentence, Service shall be deemed to continue while the Transferee is on a bona
fide leave of absence, if (i) such leave was approved by the Company in writing and (ii) continued crediting of Service is expressly required by the terms of such leave or by applicable law (as determined by the Company). Service shall
be deemed to terminate when such leave ends, unless the Transferee immediately returns to active work. 
 SECTION 3.     RIGHT OF
FIRST REFUSAL. 
 (a)        Right of First Refusal. In the event that
the Transferee proposes to sell, pledge or otherwise transfer to a third party any Transferred Shares, or any interest in Transferred Shares, the Company shall have the Right of First Refusal with respect to all (and not less than all) of such
Transferred Shares. If the Transferee desires to transfer Transferred Shares, the Transferee shall give a written Transfer Notice to the Company describing fully the proposed transfer, including the number of Transferred Shares proposed to be
transferred, the proposed transfer price, the name and address of the proposed Subsequent Transferee and proof satisfactory to the Company that the proposed sale or transfer will not violate any applicable federal, State or foreign securities laws.
The Transfer Notice shall be signed both by the Transferee and by the proposed Subsequent Transferee and must constitute a binding commitment of both parties to the transfer of the Transferred Shares. The Company shall have the right to purchase
all, and not less than all, of the Transferred Shares on the terms of the proposal described in the Transfer Notice (subject, however, to any change in such terms permitted under Subsection (b) below) by delivery of a notice of exercise of the
Right of First Refusal within 30 days after the date when the Transfer Notice was received by the Company. 

(b)        Transfer of Shares. If the Company fails to exercise its Right of
First Refusal within 30 days after receiving the Transfer Notice, the Transferee may, not later than 90 days after the Company received the Transfer Notice, conclude a transfer of the Transferred Shares subject to the Transfer Notice on
the terms and conditions described in the Transfer Notice, provided that any such sale 

  
 2 

 
is made in compliance with applicable federal, State and foreign securities laws and not in violation of any other contractual restrictions to which the Transferee is bound. Any proposed transfer
on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by the Transferee, shall again be subject to the Right of First Refusal and shall require compliance with the procedure
described in Subsection (a) above. If the Company exercises its Right of First Refusal, the parties shall consummate the sale of the Transferred Shares on the terms set forth in the Transfer Notice within 60 days after the Company received
the Transfer Notice (or within such longer period as may have been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provided that payment for the Transferred Shares was to be made in a form other than cash
or cash equivalents paid at the time of transfer, the Company shall have the option of paying for the Transferred Shares with cash or cash equivalents equal to the present value of the consideration described in the Transfer Notice. 

(c)        Additional or Exchanged Securities and Property. In the event of a
merger or consolidation of the Company, a sale of all or substantially all of the Company’s stock or assets, any other corporate reorganization, a stock split, the declaration of a stock dividend, the declaration of an extraordinary dividend
payable in a form other than stock, a spin-off, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities, any securities or other
property (including cash or cash equivalents) that are by reason of such transaction exchanged for, or distributed with respect to, any Transferred Shares subject to this Section 3 shall immediately be subject to the Right of First Refusal.
Appropriate adjustments to reflect the exchange or distribution of such securities or property shall be made to the number and/or class of the Transferred Shares subject to this Section 3. 

(d)        Termination of Right of First Refusal. Any other provision of this
Section 3 notwithstanding, in the event that the Stock is readily tradable on an established securities market when the Transferee desires to transfer Transferred Shares, the Company shall have no Right of First Refusal, and the Transferee
shall have no obligation to comply with the procedures prescribed by Subsections (a) and (b) above. 

(e)        Permitted Transfers. This Section 3 shall not apply to
(i) a transfer by beneficiary designation, will or intestate succession or (ii) a transfer to one or more members of the Transferee’s Immediate Family or to a trust established by the Transferee for the benefit of the Transferee
and/or one or more members of the Transferee’s Immediate Family, provided in either case that the Transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Agreement. If the Transferee transfers any
Transferred Shares, either under this Subsection (e) or after the Company has failed to exercise the Right of First Refusal, then this Agreement shall apply to the Subsequent Transferee to the same extent as to the Transferee. 

(f)        Termination of Rights as Stockholder. If the Company makes
available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Shares to be purchased in accordance with this Section 3, then after such time the person from whom such Shares are to be
purchased shall no longer have any rights as a holder of such Shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such Shares shall be deemed to have been purchased in accordance with the
applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Agreement. 

(g)        Assignment of Right of First Refusal. The Board of Directors may
freely assign the Company’s Right of First Refusal, in whole or in part. Any person who accepts an assignment of the Right of First Refusal from the Company shall assume all of the Company’s rights and obligations under this
Section 3. 

  
 3 

 SECTION 4.     OTHER RESTRICTIONS ON TRANSFER. 

(a)        Transferee Representations. In connection with the issuance and
acquisition of Shares under this Agreement, the Transferee hereby represents and warrants to the Company as follows: 

(i)        The Transferee is acquiring and will hold the Transferred
Shares for investment for his or her account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act. 

(ii)        The Transferee understands that the Transferred Shares
have not been registered under the Securities Act by reason of a specific exemption therefrom and that the Transferred Shares must be held indefinitely, unless their sale or other transfer is subsequently registered under the Securities Act or the
Transferee obtains an opinion of counsel, in form and substance satisfactory to the Company and its counsel, that such registration is not required. The Transferee further acknowledges and understands that the Company is under no obligation to
register the Transferred Shares. 
 (iii)        The Transferee is
aware of Rule 144 under the Securities Act, which permits limited public resales of securities acquired in a non-public offering, subject to the satisfaction of certain conditions. These conditions may
include (without limitation) that certain current public information about the issuer be available, that the resale occur only after a holding period required by Rule 144 has been satisfied, that the sale occur through an unsolicited
“broker’s transaction,” and that the amount of securities being sold during any three-month period not exceed specified limitations. The Transferee acknowledges and understands that the
conditions for resale set forth in Rule 144 have not been satisfied as of the Date of Transfer and that the Company is not required to take action to satisfy any such conditions. 

(iv)        The Transferee will not sell, transfer or otherwise
dispose of the Transferred Shares in violation of the Securities Act, the Securities Exchange Act of 1934, or the rules promulgated thereunder, including Rule 144 under the Securities Act. The Transferee agrees that he or she will not dispose
of the Transferred Shares unless and until he or she has complied with all requirements of this Agreement applicable to the disposition of Transferred Shares and he or she has provided the Company with written assurances, in substance and form
satisfactory to the Company, that (A) the proposed disposition does not require registration of the Transferred Shares under the Securities Act or all appropriate action necessary for compliance with the registration requirements of the
Securities Act or with any exemption from registration available under the Securities Act (including Rule 144) has been taken and (B) the proposed disposition will not result in the contravention of any transfer restrictions applicable to
the Transferred Shares under applicable state law. 
 (v)        The
Transferee has received and has had access to such information as he or she considers necessary or appropriate for deciding whether to invest in the Transferred Shares, and the Transferee has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the issuance of the Transferred Shares. 

(vi)        The Transferee is aware that his or her investment in the
Company is a speculative investment that has limited liquidity and is subject to the risk of complete loss. The Transferee is able, without impairing his or her financial condition, to hold the Transferred Shares for an indefinite period and to
suffer a complete loss of his or her investment in the Transferred Shares. 

  
 4 

 (b)        Securities Law
Restrictions. Regardless of whether the offer and sale of Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws of any State or other relevant jurisdiction, the Company
at its discretion may impose restrictions upon the sale, pledge or other transfer of the Transferred Shares (including the placement of appropriate legends on the stock certificates (or electronic equivalent) or the imposition of stop-transfer instructions) and may refuse (or may be required to refuse) to transfer Shares acquired hereunder (or Shares proposed to be transferred in a subsequent transfer) if, in the judgment of the Company,
such restrictions, legends or refusal are necessary or appropriate to achieve compliance with the Securities Act or other relevant securities or other laws, including without limitation under Regulation S of the Securities Act or pursuant to another
available exemption from registration. 
 (c)        Market Stand-Off. In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company’s
initial public offering, the Transferee or a Subsequent Transferee shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option
or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Transferred Shares without the prior written consent of the Company or its managing underwriter.
Such restriction (the “Market Stand-Off”) shall be in effect for such period of time following the date of the final prospectus for the offering as may be requested by the Company or such
underwriter. In no event, however, shall such period exceed 180 days plus such additional period as may reasonably be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other
distribution of research reports or (ii) analyst recommendations and opinions, including (without limitation) the restrictions set forth in Rule 2711(f)(4) of the National Association of Securities Dealers and Rule 472(f)(4) of the
New York Stock Exchange, as amended, or any similar successor rules. The Market Stand-Off shall in any event terminate two years after the date of the Company’s initial public offering. In the event of
the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without
receipt of consideration, any new, substituted or additional securities which are by reason of such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares
thereby become convertible, shall immediately be subject to the Market Stand-Off. In order to enforce the Market Stand-Off, the Company may impose stop-transfer
instructions with respect to the Transferred Shares until the end of the applicable stand-off period. The Company’s underwriters shall be beneficiaries of the agreement set forth in this
Subsection (c). This Subsection (c) shall not apply to Shares registered in the public offering under the Securities Act. 

(d)        Rights of the Company. The Company shall not be required to
(i) transfer on its books any Transferred Shares that have been sold or transferred in contravention of this Agreement or (ii) treat as the owner of Transferred Shares, or otherwise to accord voting, dividend or liquidation rights to, any
Subsequent Transferee to whom Transferred Shares have been transferred in contravention of this Agreement. 
 SECTION 5.
    SUCCESSORS AND ASSIGNS. 
 Except as otherwise expressly provided to the contrary, the
provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and be binding upon the Transferee and the Transferee’s legal representatives, heirs, legatees, distributees, assigns
and transferees by operation of law, whether or not any such person has become a party to this Agreement or has agreed in writing to join herein and to be bound by the terms, conditions and restrictions hereof. 

  
 5 

 SECTION 6.     NO RETENTION RIGHTS. 

Nothing in this Agreement or in the Plan shall confer upon the Transferee any right to continue providing services to the
Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Transferee) or of the Transferee, which rights are hereby expressly
reserved by each, to terminate his or her Service at any time and for any reason, with or without cause. 
 SECTION 7.     TAX
ELECTION. 
 The acquisition of the Transferred Shares may result in adverse tax consequences that may be avoided or
mitigated by filing an election under Code Section 83(b). Such election may be filed only within 30 days after the date of transfer set forth in the Summary of Stock Grant. The form for making the Code Section 83(b) election is attached to
this Agreement as an Exhibit. The Transferee should consult with his or her tax advisor to determine the tax consequences of acquiring the Transferred Shares and the advantages and disadvantages of filing the Code Section 83(b)
election. The Transferee acknowledges that it is his or her sole responsibility, and not the Company’s, to file a timely election under Code Section 83(b), even if the Transferee requests the Company or its representatives to
make this filing on his or her behalf. 
 SECTION 8.     LEGENDS. 

All certificates evidencing Transferred Shares shall bear the following legends: 

“THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN
COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED
TRANSFER OF THE SHARES AND IMPOSES CERTAIN FORFEITURE CONDITIONS UPON TERMINATION OF SERVICE WITH THE COMPANY. IN ADDITION, THE SHARES ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A LIMITED PERIOD FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN
PUBLIC OFFERING OF THE COMPANY’S SECURITIES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER WITHOUT THE CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH
AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.” 
 All certificates evidencing the Transferred Shares acquired under this Agreement in
an unregistered transaction shall bear the following legend (and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law): 

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”) OR ANY SECURITIES LAWS OF ANY U.S. STATE, AND MAY NOT BE SOLD, REOFFERED, PLEDGED, ASSIGNED, ENCUMBERED OR OTHERWISE TRANSFERRED OR DISPOSED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL,
SATISFACTORY 

  
 6 

 
TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY (CONFIRMED BY OPINION OF COUNSEL) OF AN ALTERNATIVE EXEMPTION FROM
REGISTRATION UNDER THE ACT (INCLUDING WITHOUT LIMITATION IN ACCORDANCE WITH REGULATION S UNDER THE ACT), THESE SHARES MAY NOT BE SOLD, REOFFERED, PLEDGED, ASSIGNED, ENCUMBERED OR OTHERWISE TRANSFERRED OR DISPOSED OF. HEDGING TRANSACTIONS INVOLVING
THESE SHARES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.” 
 If required by the authorities of any State in connection with
the issuance of the Transferred Shares, the legend or legends required by such State authorities shall also be endorsed on all such certificates. 

SECTION 9.     MISCELLANEOUS PROVISIONS. 

(a)        Choice of Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State. 

(b)        Notice. Any notice required by the terms of this Agreement shall be
given in writing. It shall be deemed effective upon (i) personal delivery, (ii) deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid, (iii) deposit with Federal Express
Corporation, with shipping charges prepaid or (iv) deposit with any internationally recognized express mail courier service. Notice shall be addressed to the Company at its principal executive office and to the Transferee at the address that he
or she most recently provided to the Company in accordance with this Subsection (b). 

(c)        Entire Agreement. The Summary of Stock Grant, this Agreement and the
Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to
the subject matter hereof. 
 SECTION 10.     ACKNOWLEDGEMENTS OF THE TRANSFEREE. 

In addition to the other terms, conditions and restrictions imposed on the Shares acquired pursuant to this Agreement, the
Transferee expressly acknowledges being subject to Sections 2 (Forfeiture Condition), 3 (Right of First Refusal) and 4 (Other Restrictions on Transfer, including without limitation the Market Stand-Off), as
well as the following provisions: 
 (a)        Waiver of Statutory Information
Rights. The Transferee acknowledges and agrees that, until the first sale of the Company’s Stock to the general public pursuant to a registration statement filed under the Securities Act, he or she will be deemed to have waived any rights
the Transferee might otherwise have had under Section 220 of the Delaware General Corporation Law (or under similar rights under other applicable law) to inspect for any proper purpose and to make copies and extracts from the Company’s
stock ledger, a list of its stockholders and its other books and records or the books and records of any subsidiary. This waiver applies only in the Transferee’s capacity as a stockholder and does not affect any other inspection rights the
Transferee may have under other law or pursuant to a written agreement with the Company.

  
 7 

 (b)        Plan Discretionary. The
Transferee understands and acknowledges that (i) the Plan is entirely discretionary, (ii) the Company and the Transferee’s employer have reserved the right to amend, suspend or terminate the Plan at any time, (iii) the
transfer of the Transferred Shares does not in any way create any contractual or other right to receive additional awards under the Plan at any time or in any amount and (iv) all determinations with respect to any additional awards, including
(without limitation) the times when awards will be granted, the number of Shares offered and the vesting schedule, will be at the sole discretion of the Company. 

(c)        Termination of Service. The Transferee understands and acknowledges
that participation in the Plan ceases upon termination of his or her Service for any reason, except as may explicitly be provided otherwise in the Plan or this Agreement. 

(d)        Extraordinary Compensation. The value of the Transferred Shares
shall be an extraordinary item of compensation outside the scope of the Transferee’s employment contract, if any, and shall not be considered a part of his or her normal or expected compensation for purposes of calculating severance,
resignation, redundancy or end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. 

(e)        Authorization to Disclose. The Transferee hereby authorizes and
directs the Transferee’s employer to disclose to the Company or any Subsidiary any information regarding the Transferee’s employment, the nature and amount of the Transferee’s compensation and the fact and conditions of the
Transferee’s participation in the Plan, as the Transferee’s employer deems necessary or appropriate to facilitate the administration of the Plan. 

(f)        Personal Data Authorization. The Transferee consents to the
collection, use and transfer of personal data as described in this Subsection (f). The Transferee understands and acknowledges that the Company, the Transferee’s employer and the Company’s other Subsidiaries hold certain personal
information regarding the Transferee for the purpose of managing and administering the Plan, including (without limitation) the Transferee’s name, home address, telephone number, date of birth, social insurance number, salary, nationality, job
title, any Shares or directorships held in the Company and details of all options or any other entitlements to Shares awarded, canceled, exercised, vested, unvested or outstanding in the Transferee’s favor (the “Data”). The
Transferee further understands and acknowledges that the Company and/or its Subsidiaries will transfer Data among themselves as necessary for the purpose of implementation, administration and management of the Transferee’s participation in the
Plan and that the Company and/or any Subsidiary may each further transfer Data to any third party assisting the Company in the implementation, administration and management of the Plan. The Transferee understands and acknowledges that the recipients
of Data may be located in the United States or elsewhere. The Transferee authorizes such recipients to receive, possess, use, retain and transfer Data, in electronic or other form, for the purpose of administering the Transferee’s participation
in the Plan, including a transfer to any broker or other third party with whom the Transferee elects to deposit Shares acquired under the Plan of such Data as may be required for the administration of the Plan and/or the subsequent holding of Shares
on the Transferee’s behalf. The Transferee may, at any time, view the Data, require any necessary modifications of Data or withdraw the consents set forth in this Subsection (f) by contacting the Company in writing. 

SECTION 11.     DEFINITIONS. 

(a)        “Agreement” shall mean this Stock Grant Agreement. 

(b)        “Board of Directors” shall mean the Board of Directors of
the Company, as constituted from time to time or, if a Committee has been appointed, such Committee. 

  
 8 

 (c)        “Company”
shall mean Tarsus Pharmaceuticals, Inc., a Delaware corporation. 

(d)        “Forfeiture Condition” shall mean the forfeiture condition
described in Section 2. 
 (e)        “Immediate Family” shall
mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law
and shall include adoptive relationships. 
 (f)        “Plan”
shall mean the Tarsus Pharmaceuticals, Inc. 2016 Stock Plan, as amended. 

(g)        “Restricted Share” shall mean a Transferred Share that is
subject to the Forfeiture Condition. 
 (h)        “Right of First
Refusal” shall mean the Company’s right of first refusal described in Section 3. 

(i)        “Service” shall mean service as an Employee, Outside
Director or Consultant. 
 (j)        “Subsequent Transferee” shall
mean any person to whom the Transferee has directly or indirectly transferred any Transferred Shares. 

(k)        “Transferee” shall mean the individual named in the
Summary of Stock Grant. 
 (l)        “Transfer Notice” shall mean
the notice of a proposed transfer of Transferred Shares described in Section 3. 

(m)        “Transferred Shares” shall mean the Shares acquired by the
Transferee pursuant to this Agreement. 

  
 9 

 EXHIBIT I 

SECTION 83(b) ELECTION 

The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, and pursuant to
Treasury Regulations Section 1.83-2, to include in gross income as compensation for services the fair market value of the shares described below. 

 

	 	(1)	 The taxpayer who performed the services is: 

 

			
	 Name: _________________________

			
	
	 Address: _______________________

	
	
              
________________________

			
	
	 Social Security No.: ___________________

  

	 	(2)	 The property with respect to which the election is made is ______ shares of the common stock of Tarsus
Pharmaceuticals, Inc. 

  

	 	(3)	 The property was transferred to the taxpayer on __________ __, ____. 

 

	 	(4)	 The taxable year for which the election is made is the calendar year ____. 

 

	 	(5)	 The property is subject to forfeiture if for any reason taxpayer’s service with the issuer terminates.
The forfeiture condition lapses in a series of installments over a ____-year period ending on __________ __, ____. 

  

	 	(6)	 The fair market value of such property at the time of transfer (determined without regard to any restriction
other than a restriction that by its terms will never lapse) is $______ per share x ______ shares = $__________. 

  

	 	(7)	 No amount was paid for such property. 

 

	 	(8)	 The amount to include in gross income is $______. [The amount in Line 6.]

  

	 	(9)	 A copy of this statement was furnished to Tarsus Pharmaceuticals, Inc., for whom taxpayer rendered the
services underlying the transfer of such property. 

  

	 	(10)	 This statement is executed on __________ __, ____. 

 

					
	 	 		 	 
	Spouse (if any)	 		 	 Taxpayer

 Within 30 days after the date of transfer of the property, this election must be filed with the Internal Revenue Service
office where the taxpayer files his or her annual federal income tax return. The filing should be made by registered or certified mail, return receipt requested. The taxpayer must deliver a copy of the completed form to the Company.

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