Document:

EX-10.3

 Exhibit 10.3 

EXECUTION VERSION 
 STOCK
PURCHASE AGREEMENT 
 By and Between 

JOHNSON & JOHNSON INNOVATION-JJDC, INC. 

AND 
 ACHILLION
PHARMACEUTICALS, INC. 
 Dated as of May 19, 2015 

 TABLE OF CONTENTS 

 

									
	 	  	 	  	 	  	Page	 
			
	 1.
	  	 Definitions
	  	 	1	  
				
		  	 1.1
	  	 Defined Terms
	  	 	1	  
				
		  	 1.2
	  	 Additional Defined Terms
	  	 	4	  
			
	 2.
	  	 Purchase and Sale of Common Stock
	  	 	5	  
			
	 3.
	  	 Closing Date; Deliveries
	  	 	5	  
				
		  	 3.1
	  	 Closing Date
	  	 	5	  
				
		  	 3.2
	  	 Deliveries
	  	 	5	  
			
	 4.
	  	 Representations and Warranties of the Company
	  	 	6	  
				
		  	 4.1
	  	 Organization, Good Standing and Qualification
	  	 	6	  
				
		  	 4.2
	  	 Capitalization and Voting Rights
	  	 	6	  
				
		  	 4.3
	  	 Subsidiaries
	  	 	7	  
				
		  	 4.4
	  	 Authorization
	  	 	7	  
				
		  	 4.5
	  	 No Defaults
	  	 	8	  
				
		  	 4.6
	  	 No Conflicts
	  	 	8	  
				
		  	 4.7
	  	 No Governmental Authority or Third Party Consents
	  	 	8	  
				
		  	 4.8
	  	 Valid Issuance of Shares
	  	 	8	  
				
		  	 4.9
	  	 Litigation
	  	 	9	  
				
		  	 4.10
	  	 Licenses and Other Rights; Compliance with Laws
	  	 	9	  
				
		  	 4.11
	  	 Company SEC Documents; Financial Statements; Nasdaq Stock Market
	  	 	9	  
				
		  	 4.12
	  	 Absence of Certain Changes
	  	 	11	  
				
		  	 4.13
	  	 Offering
	  	 	11	  
				
		  	 4.14
	  	 No Integration
	  	 	11	  
				
		  	 4.15
	  	 Brokers’ or Finders’ Fees
	  	 	11	  
				
		  	 4.16
	  	 Investment Company
	  	 	11	  
				
		  	 4.17
	  	 No General Solicitation
	  	 	11	  
				
		  	 4.18
	  	 Foreign Corrupt Practices
	  	 	12	  
				
		  	 4.19
	  	 Regulation M Compliance
	  	 	12	  
				
		  	 4.20
	  	 Office of Foreign Assets Control
	  	 	12	  
				
		  	 4.21
	  	 Intellectual Property
	  	 	12	  
				
		  	 4.22
	  	 Full Disclosure
	  	 	12	  

									
	 5.
	  	 Representations and Warranties of the Investor
	  	 	13	  
				
		  	 5.1
	  	 Organization; Good Standing
	  	 	13	  
				
		  	 5.2
	  	 Authorization
	  	 	13	  
				
		  	 5.3
	  	 No Conflicts
	  	 	13	  
				
		  	 5.4
	  	 No Governmental Authority or Third Party Consents
	  	 	14	  
				
		  	 5.5
	  	 Purchase Entirely for Own Account
	  	 	14	  
				
		  	 5.6
	  	 Disclosure of Information
	  	 	14	  
				
		  	 5.7
	  	 Investment Experience and Accredited Investor Status
	  	 	14	  
				
		  	 5.8
	  	 Acquiring Person
	  	 	14	  
				
		  	 5.9
	  	 Restricted Securities
	  	 	14	  
				
		  	 5.10
	  	 Legends
	  	 	15	  
				
		  	 5.11
	  	 Financial Assurances
	  	 	15	  
				
		  	 5.12
	  	 Stock Ownership
	  	 	15	  
			
	 6.
	  	 Investor’s Conditions to Closing
	  	 	15	  
				
		  	 6.1
	  	 Representations and Warranties
	  	 	15	  
				
		  	 6.2
	  	 Representations and Warranties in the Collaboration Agreement
	  	 	16	  
				
		  	 6.3
	  	 Covenants
	  	 	16	  
				
		  	 6.4
	  	 Investor Agreement
	  	 	16	  
				
		  	 6.5
	  	 Collaboration Agreement
	  	 	16	  
				
		  	 6.6
	  	 No Material Adverse Effect
	  	 	16	  
				
		  	 6.7
	  	 Listing
	  	 	16	  
			
	 7.
	  	 Company’s Conditions to Closing
	  	 	16	  
				
		  	 7.1
	  	 Representations and Warranties
	  	 	16	  
				
		  	 7.2
	  	 Covenants
	  	 	17	  
				
		  	 7.3
	  	 Investor Agreement
	  	 	17	  
				
		  	 7.4
	  	 Collaboration Agreement
	  	 	17	  
			
	 8.
	  	 Mutual Conditions to Closing
	  	 	17	  
				
		  	 8.1
	  	 HSR Act Qualification
	  	 	17	  
				
		  	 8.2
	  	 Absence of Litigation
	  	 	17	  
				
		  	 8.3
	  	 No Prohibition
	  	 	17	  
			
	 9.
	  	 Termination
	  	 	17	  
				
		  	 9.1
	  	 Ability to Terminate
	  	 	17	  
				
		  	 9.2
	  	 Effect of Termination
	  	 	18	  

  
 - ii - 

									
	 10.
	  	 Additional Covenants and Agreements
	  	 	18	  
				
		  	 10.1
	  	 Market Listing
	  	 	18	  
				
		  	 10.2
	  	 Notification under the HSR Act
	  	 	19	  
				
		  	 10.3
	  	 Assistance and Cooperation
	  	 	20	  
				
		  	 10.4
	  	 Form D; Blue Sky Filings
	  	 	20	  
				
		  	 10.5
	  	 Legend Removal
	  	 	20	  
				
		  	 10.6
	  	 Conduct of Business
	  	 	21	  
			
	 11.
	  	 Miscellaneous
	  	 	21	  
				
		  	 11.1
	  	 Governing Law; Submission to Jurisdiction
	  	 	21	  
				
		  	 11.2
	  	 Waiver
	  	 	21	  
				
		  	 11.3
	  	 Notices
	  	 	22	  
				
		  	 11.4
	  	 Entire Agreement
	  	 	22	  
				
		  	 11.5
	  	 Amendments
	  	 	22	  
				
		  	 11.6
	  	 Headings; Nouns and Pronouns; Section References
	  	 	22	  
				
		  	 11.7
	  	 Severability
	  	 	22	  
				
		  	 11.8
	  	 Assignment
	  	 	22	  
				
		  	 11.9
	  	 Successors and Assigns
	  	 	23	  
				
		  	 11.10
	  	 Counterparts
	  	 	23	  
				
		  	 11.11
	  	 Third Party Beneficiaries
	  	 	23	  
				
		  	 11.12
	  	 No Strict Construction
	  	 	23	  
				
		  	 11.13
	  	 Survival of Warranties
	  	 	23	  
				
		  	 11.14
	  	 Remedies
	  	 	23	  
				
		  	 11.15
	  	 Expenses
	  	 	23	  
				
		  	 11.16
	  	 No Publicity
	  	 	23	  
				
		  	 11.17
	  	 Limitation of Liability
	  	 	23	  
		
	 Exhibit A – Form of Investor Agreement
	  			
	 Exhibit B – Notices
	  			

  
 - iii - 

 STOCK PURCHASE AGREEMENT 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of May 19, 2015, by and between Johnson &
Johnson Innovation-JJDC, Inc. (the “Investor”), a New Jersey corporation with its principal place of business at 410 George Street, New Brunswick, New Jersey 08901, and Achillion Pharmaceuticals, Inc. (the
“Company”), a Delaware corporation, with its principal place of business at 300 George Street, New Haven, CT 06511. 

WHEREAS, pursuant to the terms and subject to the conditions set forth in this Agreement, the Company desires to issue and sell to the
Investor, and the Investor desires to subscribe for and purchase from the Company, certain shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”); and 

WHEREAS, simultaneously with the execution of this Agreement, the Company and Janssen Pharmaceuticals, Inc.
(“Janssen”), an Affiliate of the Investor, are entering into the Collaboration Agreement. 
 NOW, THEREFORE, in
consideration of the following mutual promises and obligations, and for good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the Investor and the Company agree as follows: 

1. Definitions. 
 1.1
Defined Terms. When used in this Agreement, the following terms shall have the respective meanings specified therefor below: 

“Affiliate” shall mean, with respect to any Person, another Person that controls, is controlled by or is under common control
with such Person; provided, that with respect to the Investor, “Affiliate” shall mean the Investor’s subsidiaries that are wholly-owned directly or indirectly, by the Investor and any Person that wholly-owns, directly or
indirectly, the Investor. A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of
voting securities, by contract or otherwise. Without limiting the generality of the foregoing, a Person shall be deemed to control another Person if any of the following conditions is met: (i) in the case of corporate entities, direct or
indirect ownership of more than fifty percent (50%) of the stock or shares having the right to vote for the election of directors, and (ii) in the case of non-corporate entities, direct or indirect ownership of more than fifty percent
(50%) of the equity interest with the power to direct the management and policies of such non-corporate entities. For the purposes of this Agreement, in no event shall the Investor or any of its Affiliates be deemed Affiliates of the Company or
any of its Affiliates, nor shall the Company or any of its Affiliates be deemed Affiliates of the Investor or any of its Affiliates. 

“Agreement” shall have the meaning set forth in the Preamble, including all Exhibits attached hereto. 

 “Business Day” shall mean a weekday on which banking institutions in the United
States are generally open for business. 
 “Collaboration Agreement” shall mean the Collaboration and License Agreement, of
even date herewith, between Janssen and the Company. 
 “Collaboration Assets” shall mean the Achillion Background IP (as
defined in the Collaboration Agreement) licensed by the Company to Janssen pursuant to Section 2.1.1 or 2.1.2 of the Collaboration Agreement. 

“Collaboration Material Adverse Effect” shall mean any effect that, individually or when taken together with all other
Effects, has had, or would reasonably be expected to have, (i) a material adverse effect on the Collaboration Assets, taken as a whole, or (ii) a material adverse effect on the Company’s ability to perform its obligations under the
Collaboration Agreement. 
 “DOJ” means the U.S. Department of Justice. 

“Effect” shall have the meaning set forth in the definition of “Material Adverse Effect.” 

“FTC” means the U.S. Federal Trade Commission. 

“Governmental Authority” shall mean any court, agency, authority, department, regulatory body or other instrumentality of any
government or country or of any national, federal, state, provincial, regional, county, city or other political subdivision of any such government or country or any supranational organization of which any such country is a member. 

“Intellectual Property” shall mean trademarks, trade names, trade dress, service marks, copyrights, and similar rights
(including registrations and applications to register or renew the registration of any of the foregoing), patents and patent applications, trade secrets, and any other similar intellectual property rights. 

“Intellectual Property License” shall mean any license, permit, authorization, approval, contract or consent granted, issued
by or with any Person relating to the use of Intellectual Property. 
 “Investor Agreement” shall mean that certain
Investor Agreement between the Investor and the Company, to be dated as of the Closing Date, in substantially the form of Exhibit A attached hereto, as the same may be amended from time to time. 

“Law” or “Laws” shall mean all laws, statutes, rules, regulations, orders, judgments, injunctions and/or
ordinances of any Governmental Authority. 
 “Material Adverse Effect” shall mean any change, event or occurrence (each, an
“Effect”) that, individually or when taken together with all other Effects, has had, or would reasonably be expected to have, (i) a material adverse effect on the business, financial condition, assets or results of operations
of the Company and its subsidiaries, taken as a whole, or (ii) a 

  
 - 2 - 

 
material adverse effect on the Company’s ability to perform its obligations, or consummate the Transaction, in accordance with the terms of this Agreement, except in the case of (i) to
the extent that any such Effect results from or arises out of: (A) changes in conditions in the United States or global economy or capital or financial markets generally, including changes in interest or exchange rates, (B) changes in
general legal, regulatory, political, economic or business conditions or changes in generally accepted accounting principles in the United States or interpretations thereof, (C) acts of war, sabotage or terrorism, or any escalation or worsening
of any such acts of war, sabotage or terrorism, (D) earthquakes, hurricanes, floods or other natural disasters, (E) the announcement of this Agreement or the Transaction, (F) any change in the Company’s stock price or trading
volume or any failure to meet internal projections or forecasts or published revenue or earnings projections of industry analysts (provided that the underlying events giving rise to any such change shall not be excluded), (G) any breach,
violation or non-performance by the Investor or any of its Affiliates under the Collaboration Agreement, provided, however, that the Effects excluded in clauses (A), (B), (C) and (D) shall only be excluded to the extent such
Effects are not disproportionately adverse on the Company and its subsidiaries as compared to other companies operating in the Company’s industry. 

“Organizational Documents” shall mean (i) the Restated Certificate of Incorporation of the Company, as amended through
the date of this Agreement and (ii) the Amended and Restated By-laws of the Company, as amended through the date of this Agreement. 

“Per Share Purchase Price” shall mean $12.25; provided, however, that in the event of any stock dividend, stock
split, combination of shares, recapitalization or other similar change in the capital structure of the Company after the date hereof and on or prior to the Closing which affects or relates to the Common Stock, the Per Share Purchase Price shall be
appropriately adjusted. 
 “Person” shall mean any individual, partnership, limited liability company, firm, corporation,
trust, unincorporated organization, government or any department or agency thereof or other entity, as well as any syndicate or group that would be deemed to be a Person under Section 13(d)(3) of the Exchange Act. 

“Third Party” shall mean any Person (other than a Governmental Authority) other than the Investor, the Company or any
Affiliate of the Investor or the Company. 
 “Trading Market” means The Nasdaq Stock Market. 

“Transaction” means the issuance and sale of the Shares by the Company, and the purchase of the Shares by the Investor, in
accordance with the terms hereof. 
 “Transaction Agreements” shall mean this Agreement and the Investor Agreement. 

  
 - 3 - 

 1.2 Additional Defined Terms. In addition to the terms defined in Section 1.1, the
following terms shall have the respective meanings assigned thereto in the sections indicated below: 
  

			
	 Defined Term
	  	 Section

		
	Aggregate Purchase Price	  	Section 2
		
	Closing	  	Section 3.1
		
	Closing Date	  	Section 3.1
		
	Common Stock	  	Preamble
		
	Company	  	Preamble
		
	Company Rights	  	Section 4.21(b)
		
	Company SEC Documents	  	Section 4.11(a)
		
	Exchange Act	  	Section 4.11(a)
		
	GAAP	  	Section 4.11(c)
		
	HSR Act	  	Section 4.7
		
	Investor	  	Preamble
		
	LAS	  	Section 4.7
		
	Permits	  	Section 4.10
		
	Proprietary Rights	  	Section 4.21(b)
		
	Rule 144	  	Section 5.9
		
	SEC	  	Section 4.7
		
	Securities Act	  	Section 4.11(a)
		
	Shares	  	Section 2
		
	Subsidiaries	  	Section 4.3
		
	Termination Date	  	Section 9.1(b)
		
	Transfer Agent	  	Section 10.5(c)

  
 - 4 - 

 2. Purchase and Sale of Common Stock. Subject to the terms and conditions of this
Agreement, at the Closing, the Company shall issue and sell to the Investor, free and clear of all liens, other than any liens arising as a result of any action by the Investor, and the Investor shall purchase from the Company, a number of shares of
Common Stock (the “Shares”) equal to the amount obtained by dividing the aggregate purchase price of US $225,000,000 (the “Aggregate Purchase Price”) by the Per Share Purchase Price. 

3. Closing Date; Deliveries. 

3.1 Closing Date. Subject to the satisfaction or waiver of all the conditions to the Closing set forth in Sections 6, 7 and 8 hereof,
the closing of the purchase and sale of the Shares hereunder (the “Closing”) shall be held on the third (3rd) Business Day after the satisfaction of the conditions to Closing
set forth in Sections 6, 7 and 8 (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction at such time of such conditions), at 9:00 a.m. Boston time, at the offices of Wilmer Cutler
Pickering Hale and Dorr LLP, 60 State Street, Boston, Massachusetts 02109, or at such other time, date and location as the parties may agree. The date the Closing occurs is hereinafter referred to as the “Closing Date.” 

3.2 Deliveries. 
 (a)
Deliveries by the Company. At the Closing, the Company shall deliver to the Investor the Shares, registered in the name of the Investor, and the Company shall instruct its transfer agent to register such issuance at the time of such issuance.
The Company shall also deliver at the Closing: (i) a certificate in form and substance reasonably satisfactory to the Investor and duly executed on behalf of the Company by an authorized executive officer of the Company, certifying that the
conditions to Closing set forth in Sections 6 and 8.2 of this Agreement have been fulfilled; (ii) a duly executed Investor Agreement; and (iii) a certificate of the secretary of the Company dated as of the Closing Date certifying
(A) that attached thereto is a true and complete copy of the Amended and Restated By-laws of the Company as in effect at the time of the actions by the Board of Directors of the Company referred to in clause (B) below, and on the Closing
Date; (B) that attached thereto is a true and complete copy of all resolutions adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of the Transaction Agreements and the Transaction and that all
such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby as of the Closing Date; (C) that attached thereto is a true and complete copy of the Company’s
Restated Certificate of Incorporation as in effect at the time of the actions by the Board of Directors of the Company referred to in clause (B) above, and on the Closing Date; and (D) as to the incumbency and specimen signature of any
officer of the Company executing a Transaction Agreement on behalf of the Company. 
 (b) Deliveries by the Investor. At the
Closing, the Investor shall deliver, or cause to be delivered, to the Company the Aggregate Purchase Price by wire transfer of immediately available United States funds to an account designated by the Company. The Company shall notify the Investor
in writing of the wiring instructions for such account not less than five (5) Business Days before the Closing Date. The Investor shall also deliver, or cause to be 

  
 - 5 - 

 
delivered, at the Closing: (i) a certificate in form and substance reasonably satisfactory to the Company duly executed by an authorized executive officer of the Investor certifying that the
conditions to Closing set forth in Section 7 of this Agreement have been fulfilled; (ii) a duly executed Investor Agreement; and (iii) a certificate of the secretary or assistant secretary of the Investor dated as of the Closing Date
certifying as to the incumbency and specimen signature of any officer executing a Transaction Agreement on behalf of the Investor. 
 4.
Representations and Warranties of the Company. The Company hereby represents and warrants to the Investor that: 
 4.1
Organization, Good Standing and Qualification. 
 (a) The Company is a corporation duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company
has all requisite corporate power and corporate authority to own, lease and operate its properties and assets, to carry on its business as now conducted, and as proposed to be conducted as described in the Company SEC Documents, the Company has all
requisite corporate power and corporate authority to enter into the Transaction Agreements and the Collaboration Agreement, to issue and sell the Shares and to perform its obligations under and to carry out the other transactions contemplated by the
Transaction Agreements and the Collaboration Agreement. 
 (b) The Company is qualified to transact business and is in good standing in
each jurisdiction in which the character of the properties owned, leased or operated by the Company, or the nature of the business conducted by the Company, makes such qualification necessary, except where the failure to be so qualified would not
have a Material Adverse Effect. 
 4.2 Capitalization and Voting Rights. 

(a) The authorized capital of the Company as of the date hereof consists of: (i) 200,000,000 shares of Common Stock of which, as of the
date of this Agreement, (x) 117,972,461 shares are issued and outstanding, (y) 10,680,711 shares are reserved for issuance pursuant to the Company’s stock incentive and employee stock purchase plans, of which 8,733,997 shares are
issuable upon the exercise of stock options outstanding on the date hereof, and (z) 2,832,612 shares are reserved for issuance upon the exercise of warrants to purchase Common Stock that are outstanding on the date hereof, and
(ii) 5,000,000 shares of preferred stock, par value $0.01 per share, of which no shares are issued and outstanding as of the date of this Agreement. All of the issued and outstanding shares of Common Stock (A) have been duly authorized and
validly issued, (B) are fully paid and nonassessable and (C) were issued in compliance with all applicable federal and state securities Laws and not in violation of any preemptive rights. 

(b) All of the authorized shares of Common Stock are entitled to one (1) vote per share. 

  
 - 6 - 

 (c) Except as described or referred to in Section 4.2(a) above and as provided in the
Investor Agreement, as of the date hereof, there are not: (i) any outstanding equity securities, options, warrants, rights (including conversion or preemptive rights) or other agreements pursuant to which the Company is or may become obligated
to issue, sell or repurchase any shares of its capital stock or any other securities of the Company or (ii) any restrictions on the transfer of capital stock of the Company other than pursuant to state and federal securities Laws. 

(d) Except as provided in the Investor Agreement or as disclosed in the Company SEC Documents, the Company is not a party to or subject to
any agreement or understanding relating to the voting of shares of capital stock of the Company or the giving of written consents by a stockholder or director of the Company. 

(e) Except as provided in the Investor Agreement or disclosed in the Company SEC Documents, no Person has any right to cause the Company to
effect the registration under the Securities Act of any securities of the Company. 
 (f) The Common Stock is registered pursuant to
Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company
received any notification that the SEC is contemplating terminating such registration. 
 4.3 Subsidiaries. The Company has no
subsidiaries. 
 4.4 Authorization. 

(a) All requisite corporate action on the part of the Company, its directors and stockholders required by applicable Law for the
authorization, execution and delivery by the Company of the Transaction Agreements and the Collaboration Agreement, and the performance of all obligations of the Company hereunder and thereunder, including the authorization, issuance and delivery of
the Shares, has been taken. 
 (b) This Agreement and the Collaboration Agreement have been, and upon the execution and delivery of the
Investor Agreement by the Company at the Closing, the Investor Agreement will be, duly executed and delivered by the Company, and upon the due execution and delivery of this Agreement by the Investor and the Collaboration Agreement by Janssen, this
Agreement and the Collaboration Agreement will constitute, and upon the due execution and delivery of the Investor Agreement by the Investor, the Investor Agreement will constitute, valid and legally binding obligations of the Company, enforceable
against the Company in accordance with their respective terms (except with respect to the Investor Agreement and the Collaboration Agreement as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other Laws of general application relating to or affecting enforcement of creditors’ rights and (ii) rules of Law governing specific performance, injunctive relief or other equitable remedies and limitations of public
policy). 
 (c) No stop order or suspension of trading of the Common Stock has been imposed by Nasdaq, the SEC or any other Governmental
Authority and remains in effect. 

  
 - 7 - 

 4.5 No Defaults. The Company is not in default under or in violation of (a) its
Organizational Documents, (b) any provision of applicable Law or any ruling, writ, injunction, order, Permit, judgment or decree of any Governmental Authority or (c) any agreement, arrangement or instrument, whether written or oral, by
which the Company or any of its assets are bound, except, in the case of subsections (b) and (c), as would not have a Material Adverse Effect. There exists no condition, event or act which after notice, lapse of time, or both, would constitute
a default or violation by the Company under any of the foregoing, except, in the case of subsections (b) and (c), as would not have a Material Adverse Effect. 

4.6 No Conflicts. The execution, delivery and performance of the Transaction Agreements and the Collaboration Agreement, and compliance
with the provisions hereof and thereof by the Company do not and shall not: (a) violate any provision of applicable Law or any ruling, writ, injunction, order, permit, judgment or decree of any Governmental Authority, (b) constitute a
breach of, or default under (or an event which, with notice or lapse of time or both, would become a default under) or conflict with, or give rise to any right of termination, cancellation or acceleration of, any agreement, arrangement or
instrument, whether written or oral, by which the Company or any of its assets are bound, (c) violate or conflict with any of the provisions of the Company’s Organizational Documents or (d) result in any encumbrance upon any of the
Shares, other than restrictions pursuant to the Investor Agreement or securities Laws, or on any of the properties or assets of the Company, except, in the case of subsections (a) and (b), as would not have a Material Adverse Effect with
respect to this Agreement or the Investor Agreement or a Collaboration Material Adverse Effect with respect to the Collaboration Agreement. 

4.7 No Governmental Authority or Third Party Consents. No consent, approval, authorization or other order of, or filing with, or notice
to, any Governmental Authority or other Third Party is required to be obtained or made by the Company in connection with the authorization, execution and delivery by the Company of any of the Transaction Agreements or the Collaboration Agreement, or
with the authorization, issue and sale by the Company of the Shares, except (i) such filings as may be required to be made with the Securities and Exchange Commission (the “SEC”) and with any state blue sky or securities
regulatory authority, which filings shall be made in a timely manner in accordance with all applicable Laws, (ii) as required pursuant to the Hart-Scott-Rodino Antitrust Improvements Act, as amended (the “HSR Act”) and
(iii) with respect to the Shares, the filing with The Nasdaq Stock Market LLC of, and the absence of unresolved issues with respect to, a Notification Form: Listing of Additional Shares (the “LAS”). 

4.8 Valid Issuance of Shares. When issued, sold and delivered at the Closing in accordance with the terms hereof for the Aggregate
Purchase Price, the Shares shall be duly authorized, validly issued, fully paid and nonassessable, free from any liens, encumbrances or restrictions on transfer, including preemptive rights, rights of first refusal or other similar rights, other
than as arising pursuant to the Transaction Agreements, as a result of any action by the Investor or under federal or state securities Laws. 

  
 - 8 - 

 4.9 Litigation. Except as set forth in the Company SEC Documents filed prior to the date
of this Agreement, there is no action, suit, proceeding or investigation pending (of which the Company has received notice or otherwise has knowledge) or, to the Company’s knowledge, threatened, against the Company or which the Company intends
to initiate which has had or is reasonably likely to have a Material Adverse Effect. 
 4.10 Licenses and Other Rights; Compliance with
Laws. The Company has all franchises, permits, licenses and other rights and privileges (“Permits”) necessary to permit it to own its properties and to conduct its business as presently conducted and is in compliance thereunder,
except where the failure to be in compliance does not and would not have a Material Adverse Effect. The Company has not taken any action that would interfere with the Company’s ability to renew all such Permit(s), except where the failure to
renew such Permit(s) would not have a Material Adverse Effect. The Company is and has been in compliance with all Laws applicable to its business, properties and assets, and to the products and services sold by it, except where the failure to be in
compliance does not and would not have a Material Adverse Effect. 
 4.11 Company SEC Documents; Financial Statements; Nasdaq Stock
Market. 
 (a) Since January 1, 2014, the Company has timely filed all required reports, schedules, forms, statements and other
documents (including exhibits and all other information incorporated therein), and any required amendments to any of the foregoing, with the SEC (the “Company SEC Documents”). As of their respective filing dates, each of the Company
SEC Documents complied in all material respects with the requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
the rules and regulations of the SEC promulgated thereunder applicable to such Company SEC Documents, and no Company SEC Documents when filed, declared effective or mailed, as applicable, contained any untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

(b) As of the date of this Agreement, there are no outstanding or unresolved comments in comment letters received from the SEC or its staff.

 (c) The financial statements of the Company included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2014
and in its quarterly report on Form 10-Q for the quarterly period ended March 31, 2015 comply as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto,
have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present in
all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended. Except (i) as set forth in the Company SEC Documents or (ii) for liabilities

  
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incurred in the ordinary course of business subsequent to the date of the most recent balance sheet contained in the Company SEC Documents, the Company has no liabilities, whether absolute or
accrued, contingent or otherwise, other than those that would not, individually or in the aggregate, have a Material Adverse Effect. There are no material unconsolidated subsidiaries of the Company or any material off-balance sheet arrangements of
any type (including any off balance sheet arrangements required to be disclosed pursuant to Item 303(a)(4) of Regulation S-K promulgated under the Securities Act) that have not been so described in the Company SEC Reports filed prior to the
date hereof nor any obligations to enter into any such arrangements. 
 (d) The Common Stock is listed on The Nasdaq Global Select Market,
and the Company has taken no action designed to, or which is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from The Nasdaq Global Select Market. The Company has
not received any notification that, and has no knowledge that, the SEC or The Nasdaq Stock Market LLC is contemplating terminating such listing or registration. 

(e) The Company has implemented and maintains a system of internal control over financial reporting (to the extent required by Rule 13a-15(a)
under the Exchange Act) that is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes, and, to the knowledge of the Company, such
system of internal control over financial reporting is effective. For purposes of this Section 4.11(e), “knowledge of the Company” means the actual knowledge of the Chief Executive Officer and the Chief Financial Officer of the
Company. The Company has implemented and maintains disclosure controls and procedures (to the extent required by Rule 13a-15(a) of the Exchange Act) that are designed to ensure that information required to be disclosed by the Company in the reports
it files or submits under the Exchange Act is recorded, processed, summarized and reported within the timeframes specified by the SEC’s rules and forms (and such disclosure controls and procedures are effective), and has disclosed, based on its
most recent evaluation of its system of internal control over financial reporting prior to the date of this Agreement, to the Company’s outside auditors and the audit committee of the Company Board (i) any significant deficiencies and
material weaknesses known to it in the design or operation of its internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that would reasonably be expected to adversely affect the Company’s ability to
record, process, summarize and report financial information and (ii) any fraud known to it, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting. 

(f) To the knowledge of the Company, as of the date hereof, no employee of the Company has provided since January 1, 2013 or is
providing information to any law enforcement agency regarding the violation of any applicable Law of the type described in Section 806 of the Sarbanes-Oxley Act by the Company. The Company has not discharged, demoted or suspended an employee of
the Company in the terms and conditions of employment because of any lawful act of such employee described in Section 806 of the Sarbanes-Oxley Act. 

  
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 4.12 Absence of Certain Changes. 

(a) Except as disclosed in the Company SEC Documents, since December 31, 2013, there has not occurred any event that has caused or would
reasonably be expected to cause a Material Adverse Effect. 
 (b) Except as set forth in the Company SEC Documents filed prior to the date
hereof, since December 31, 2013, the Company has not (i) declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock, or (ii) sold, exchanged or otherwise
disposed of any of its material assets or rights. 
 (c) Since December 31, 2013, the Company has not admitted in writing its
inability to pay its debts generally as they become due, filed or consented to the filing against it of a petition in bankruptcy or a petition to take advantage of any insolvency act, made an assignment for the benefit of creditors, consented to the
appointment of a receiver for itself or for the whole or any substantial part of its property, or had a petition in bankruptcy filed against it, been adjudicated a bankrupt, or filed a petition or answer seeking reorganization or arrangement under
the federal bankruptcy laws or any other laws of the United States or any other jurisdiction. 
 4.13 Offering. Subject to the
accuracy of the Investor’s representations set forth in Sections 5.5, 5.6, 5.7, 5.9 and 5.10, the offer, sale and issuance of the Shares to be issued in conformity with the terms of this Agreement constitute transactions which are exempt from
the registration requirements of the Securities Act and from all applicable state registration or qualification requirements. Neither the Company nor any Person acting on its behalf will take any action that would cause the loss of such exemption.

 4.14 No Integration. The Company has not, directly or through any agent, sold, offered for sale, solicited offers to buy or
otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or will be integrated with the Shares sold pursuant to this Agreement in a manner that would require the registration of the Shares under the Securities
Act. 
 4.15 Brokers’ or Finders’ Fees. Other than Centerview Partners LLC, no broker, finder, investment banker or other
Person is entitled to any brokerage, finder’s or other fee or commission from the Company in connection with the transactions contemplated by the Transaction Agreements and the Collaboration Agreement. 

4.16 Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended. 
 4.17 No General Solicitation. Neither the Company
nor any person acting on behalf of the Company has offered or sold any of the Shares by any form of general solicitation or general advertising. The Company has offered the Shares for sale only to the Investor. 

  
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 4.18 Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company,
any agent or other person acting on behalf of the Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity,
(ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company
(or made by any person acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable non-U.S.
anti-bribery Law. 
 4.19 Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has,
(i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Shares, (ii) sold, bid for,
purchased, or paid any compensation for soliciting purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company. 

4.20 Office of Foreign Assets Control. Neither the Company nor, to the Company’s knowledge, any director, officer, agent, employee
or Affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department. 

4.21 Intellectual Property. 

(a) The Intellectual Property that is owned by the Company is owned free from any liens or restrictions (other than any restrictions set
forth in any Intellectual Property License relating to such Intellectual Property), and all of the Company’s material Intellectual Property Licenses are in full force and effect in accordance with their terms, are, to the Company’s
knowledge, free of any liens or restrictions, and neither the Company nor to the Company’s knowledge any other party thereto, is in material breach of any such material Intellectual Property License, and no event has occurred that with notice
or lapse of time or both would constitute such a breach or default thereunder or would result in the termination thereof or would cause or permit the acceleration or other change of any right or obligation of the loss of any benefit thereunder by
the Company except (i) for such failures to be in full force and effect, such liens or restrictions, and such material breaches that would not reasonably be expected to have a Material Adverse Effect, or (ii) as set forth in any such
Intellectual Property License. Except as set forth in the Company SEC Documents filed prior to the date hereof, there is no material legal claim or demand of any Person pertaining to, or any proceeding which is pending (of which the Company has
received notice or otherwise has knowledge) or, to the knowledge of the Company, threatened, (i) challenging the right of the Company in respect of any Company Intellectual Property, or (ii) that claims that any default exists under any
Intellectual Property License, except, in the case of (i) and (ii) above, where any such claim, demand or proceeding would not have or reasonably be expected to have a Material Adverse Effect. 

(b) Except as set forth in the Company’s SEC Documents: (i) the Company owns, free and clear of any lien or encumbrance, or has a
valid license to, or has an enforceable right to use, as it is used or held for use, all U.S. and non-U.S. patents, trade secrets, know-how, trademarks, service marks, copyrights, and other proprietary and intellectual property rights, and all
grants and applications with respect to the foregoing (collectively, the “Proprietary Rights”) necessary for the conduct of the Company’s business, the absence of which would not have or reasonably be expected to have a
Material Adverse Effect (such Proprietary Rights owned by or licensed to the Company collectively, the “Company Rights”); and (ii) the Company has taken reasonable measures to protect the Company Rights, consistent with prudent
commercial practices in the biotechnology industry, except where failure to take such measures would not have or reasonably be expected to have a Material Adverse Effect. 

4.22 Full Disclosure. As of the date hereof, and other than the transactions that are the subject of this Agreement and the
Collaboration Agreement, no material fact or circumstance exists that would be required to be disclosed in a current report on Form 8-K or in a registration statement filed under the Securities Act, were
such a registration statement filed on the date hereof, that has not been disclosed in an SEC Report filed on or after March 5, 2013. 

  
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 5. Representations and Warranties of the Investor. The Investor hereby represents and
warrants to the Company that: 
 5.1 Organization; Good Standing. The Investor is a corporation duly organized, validly existing and
in good standing under the laws of New Jersey. The Investor has or will have all requisite power and authority to enter into the Transaction Agreements, to purchase the Shares and to perform its obligations under and to carry out the other
transactions contemplated by the Transaction Agreements. 
 5.2 Authorization. All requisite action on the part of the Investor and
its directors and stockholders, required by applicable Law for the authorization, execution and delivery by the Investor of the Transaction Agreements, and the performance of all of its obligations thereunder, including the subscription for and
purchase of the Shares, has been taken. This Agreement has been, and upon the execution and delivery of the Investor Agreement at the Closing by the Investor, the Investor Agreement will be, duly executed and delivered by the Investor and upon the
due execution and delivery thereof by the Company, will constitute valid and legally binding obligations of the Investor, enforceable against the Investor in accordance with their respective terms (except as such enforceability may be limited by
(a) applicable bankruptcy, insolvency, reorganization, moratorium or other Laws of general application relating to or affecting enforcement of creditors’ rights and (b) rules of Law governing specific performance, injunctive relief or
other equitable remedies and limitations of public policy). 
 5.3 No Conflicts. The execution, delivery and performance of the
Transaction Agreements and compliance with the provisions thereof by the Investor do not and shall not: (a) violate any provision of applicable Law or any ruling, writ, injunction, order, permit, judgment or decree of any Governmental
Authority, (b) constitute a breach of, or default under (or an event which, with notice or lapse of time or both, would become a default under) or conflict with, or give 

  
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rise to any right of termination, cancellation or acceleration of, any agreement, arrangement or instrument, whether written or oral, by which the Investor or any of its assets, are bound, or
(c) violate or conflict with any of the provisions of the Investor’s organizational documents (including any articles or memoranda of organization or association, charter, bylaws or similar documents), except as would not impair or
adversely affect the ability of the Investor to consummate the Transactions and perform its obligations under the Transaction Agreements and except, in the case of subsections (a) and (b) as would not have a material adverse effect on the
Investor’s ability to perform its obligations or consummate the Transaction in accordance with the terms of this Agreement. 
 5.4
No Governmental Authority or Third Party Consents. No consent, approval, authorization or other order of any Governmental Authority or other Third Party is required to be obtained by the Investor in connection with the authorization,
execution and delivery of any of the Transaction Agreements or with the subscription for and purchase of the Shares, except as required pursuant to the HSR Act. 

5.5 Purchase Entirely for Own Account. The Shares shall be acquired for investment for the Investor’s own account, not as a
nominee or agent, and not with a view to the resale or distribution of any part thereof, and the Investor has no present intention of selling, granting any participation or otherwise distributing the Shares. The Investor does not have and will not
have as of the Closing any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participation to a Person any of the Shares. 

5.6 Disclosure of Information. The Investor has received all the information from the Company and its management that the Investor
considers necessary or appropriate for deciding whether to purchase the Shares hereunder. The Investor further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the Company, its financial
condition, results of operations and prospects and the terms and conditions of the offering of the Shares sufficient to enable it to evaluate its investment. 

5.7 Investment Experience and Accredited Investor Status. The Investor is an “accredited investor” (as defined in Regulation
D under the Securities Act). The Investor has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Shares to be purchased hereunder. 

5.8 Acquiring Person. As of the date of this Agreement and immediately prior to the Closing, neither the Investor nor any of its
Affiliates beneficially owns, or will beneficially own (as determined pursuant to Rule 13d-3 under the Exchange Act without regard for the number of days in which a Person has the right to acquire such beneficial ownership, and without regard to
Investor’s rights under this Agreement), any securities of the Company, except for securities that may be owned by employee benefit plans of the Investor or any of its Affiliates. 

5.9 Restricted Securities. The Investor understands that the Shares, when issued, shall be “restricted securities” under the
federal securities Laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such 

  
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Laws the Shares may be resold without registration under the Securities Act only in certain limited circumstances. The Investor represents that it is familiar with Rule 144 of the Securities Act
(“Rule 144”), as presently in effect. 
 5.10 Legends. The Investor understands that any certificates representing
the Shares shall bear the following legends: 
 (a) “These securities have not been registered under the Securities Act of 1933. They
may not be sold, offered for sale, pledged or hypothecated in the absence of a registration statement in effect with respect to the securities under the Securities Act or an opinion of counsel (which counsel shall be reasonably satisfactory to the
Company) that such registration is not required or unless sold pursuant to Rule 144 of the Securities Act.”; 
 (b) any legend
required by applicable state securities Laws; and 
 (c) “The securities represented by this certificate are subject to and shall be
transferable only upon the terms and conditions of an Investor Agreement dated as of                  , 2015, by and between Achillion Pharmaceuticals, Inc. and
Johnson & Johnson Innovation-JJDC, Inc., a copy of which is on file with the Secretary of Achillion Pharmaceuticals, Inc.” 

5.11 Financial Assurances. As of the date hereof and as of the Closing Date, the Investor has and will have access to cash in an amount
sufficient to pay to the Company the Aggregate Purchase Price. 
 5.12 Stock Ownership. As of the date hereof, neither the Investor
nor any of its Affiliates (excluding for this purpose any employee benefit plan of the Investor) own any shares of capital stock of the Company. 

6. Investor’s Conditions to Closing. The Investor’s obligation to purchase the Shares at the Closing is subject to the
fulfillment as of the Closing of the following conditions (unless waived in writing by the Investor): 
 6.1 Representations and
Warranties. The representations and warranties made by the Company in Section 4 hereof shall be true and correct as of the date of this Agreement and as of the Closing Date as though made on and as of such Closing Date, except to the extent
such representations and warranties are specifically made as of a particular date, in which case such representations and warranties shall be true and correct as of such date; provided, however, that for purposes of this
Section 6.1, all such representations and warranties of the Company (other than Sections 4.1(a), 4.2, 4.3, 4.4, 4.5(a), 4.6(c), 4.8, and 4.11 of this Agreement) shall be deemed to be true and correct for purposes of this Section 6.1 unless
the failure or failures of such representations and warranties to be so true and correct, without regard to any “material,” “materiality” or “Material Adverse Effect” qualifiers set forth therein, constitute a Material
Adverse Effect. 

  
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 6.2 Representations and Warranties in the Collaboration Agreement. The representations and
warranties made by the Company in Article XII (Sections 12.1 through 12.6 and 12.8 through 12.10) of the Collaboration Agreement shall be true and correct as of the Closing Date as though made on and as of such Closing Date, except to the extent
such representations and warranties are specifically made as of a particular date, in which case such representations and warranties shall be true and correct as of such date; provided, however, that for purposes of this
Section 6.2, all such representations and warranties of the Company shall be deemed to be true and correct for purposes of this Section 6.2 unless the failure or failures of such representations and warranties to be so true and correct,
without regard to any “material” or “materiality” qualifiers set forth therein, individually or in the aggregate, has had or would reasonably be expected to have a Collaboration Material Adverse Effect. 

6.3 Covenants. All covenants and agreements contained in this Agreement to be performed or complied with by the Company on or prior to
the Closing Date shall have been performed or complied with in all material respects. 
 6.4 Investor Agreement. The Company shall
have duly executed and delivered to the Investor, pursuant to Section 3.2(a) of this Agreement, the Investor Agreement, and (subject to execution by the Investor) such agreement shall be in full force and effect. 

6.5 Collaboration Agreement. The Company shall have duly executed and delivered to the Investor the Collaboration Agreement, and there
shall have been no termination of the Collaboration Agreement that, as of the Closing, is effective. 
 6.6 No Material Adverse
Effect. From and after the date of this Agreement until the Closing Date, there shall have occurred no event that has caused a Material Adverse Effect or a Collaboration Material Adverse Effect. 

6.7 Listing. The Shares shall be eligible and approved for listing on the Nasdaq Global Select Market. 

7. Company’s Conditions to Closing. The Company’s obligation to issue and sell the Shares at the Closing is subject to the
fulfillment as of the Closing of the following conditions (unless waived in writing by the Company): 
 7.1 Representations and
Warranties. The representations and warranties made by the Investor in Section 5 hereof shall be true and correct as of the date of this Agreement and as of the Closing Date as though made on and as of such Closing Date, except to the
extent such representations and warranties are specifically made as of a particular date, in which case such representations and warranties shall be true and correct as of such date, in the case of Sections 5.1-5.4, and 5.11, except where any
failure to be true and correct would not have a material adverse effect on the Investor’s ability to perform its obligations, or consummate the Transaction in accordance with the terms of this Agreement, in the case of Section 5.5, 5.6 and
5.7, except where any inaccuracy would not result in the issuance of the Shares hereunder failing to qualify as an offering of securities not involving any public offering under the federal securities Laws, and in

  
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the case of Section 5.8, except where any inaccuracy would not be material on the Investor’s ability to perform its obligations, or consummate the Transaction in accordance with the
terms of this Agreement. 
 7.2 Covenants. All covenants and agreements contained in this Agreement to be performed or complied with
by the Investor on or prior to the Closing Date shall have been performed or complied with in all material respects. 
 7.3 Investor
Agreement. The Investor shall have duly executed and delivered to the Company, pursuant to Section 3.2(b) of this Agreement, the Investor Agreement, and (subject to execution by the Company) such agreement shall be in full force and effect.

 7.4 Collaboration Agreement. Janssen shall have duly executed and delivered to the Company the Collaboration Agreement, and there
shall have been no termination of the Collaboration Agreement that, as of the Closing, is effective. 
 8. Mutual Conditions to
Closing. The obligations of the Investor and the Company to consummate the Closing are subject to the fulfillment as of the Closing Date of the following conditions: 

8.1 HSR Act Qualification. The filings required under the HSR Act in connection with this Agreement shall have been made and the
required waiting period shall have expired or been terminated as of the Closing Date. 
 8.2 Absence of Litigation. There shall be no
action, suit, proceeding or investigation by a Governmental Authority pending or currently threatened in writing against the Company or the Investor that questions the validity of any of the Transaction Agreements, the right of the Company or the
Investor to enter into any Transaction Agreement or to consummate the transactions contemplated hereby or thereby or which, if determined adversely, would impose substantial monetary damages on the Company or the Investor as a result of the
consummation of the transactions contemplated by any Transaction Agreement. 
 8.3 No Prohibition. No provision of any applicable Law
and no judgment, injunction (preliminary or permanent), order or decree that prohibits, makes illegal or enjoins the consummation of the Transaction shall be in effect. 

9. Termination. 
 9.1
Ability to Terminate. This Agreement may be terminated at any time prior to the Closing by: 
 (a) mutual written consent of the
Company and the Investor; 
 (b) either the Company or the Investor, upon written notice to the other no earlier than August 31, 2015
(the “Termination Date”), if the Transaction shall not have been consummated by the Termination Date; 

  
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 (c) either the Company or the Investor, upon written notice to the other, if any of the mutual
conditions to the Closing set forth in Section 8 shall have become incapable of fulfillment by the Termination Date and shall not have been waived in writing by the other party within ten business days after receiving receipt of written notice
of an intention to terminate pursuant to this clause (c) provided, however, that the right to terminate this Agreement under this Section 9.1(c) shall not be available to any party whose failure to fulfill any obligation under this
Agreement has been the cause of, or resulted in, the failure to consummate the transactions contemplated hereby prior to the Termination Date; 

(d) the Company, upon written notice to the Investor, so long as the Company is not then in breach of its representations, warranties,
covenants or agreements under this Agreement such that any of the conditions set forth in Section 6.1 or 6.2, as applicable, could not be satisfied by the Termination Date, (i) upon a material breach of any covenant or agreement on the
part of the Investor set forth in this Agreement, or (ii) if any representation or warranty of the Investor shall have been or become untrue, in each case such that any of the conditions set forth in Section 7.1, 7.2, 7.3 or 7.4, as
applicable, could not be satisfied by the Termination Date; 
 (e) the Investor, upon written notice to the Company, so long as the
Investor is not then in breach of its representations, warranties, covenants or agreements under this Agreement such that any of the conditions set forth in Section 7.1, 7.2 or 7.3, as applicable, could not be satisfied by the Termination Date,
(i) upon a breach of any covenant or agreement on the part of the Company set forth in this Agreement, or (ii) if any representation or warranty of the Company shall have been or become untrue, in each case such that any of the conditions
set forth in Section 6.1, 6.2, 6.3 or 6.4, as applicable, could not be satisfied by the Termination Date. 
 9.2 Effect of
Termination. In the event of the termination of this Agreement pursuant to Section 9.1 hereof, (a) this Agreement (except for this Section 9.2 and Section 11 hereof (other than Section 11.13), and any definitions set
forth in this Agreement and used in such sections) shall forthwith become void and have no effect, without any liability on the part of any party hereto or its Affiliates, and (b) all filings, applications and other submissions made pursuant to
this Agreement, to the extent practicable, shall be withdrawn from the agency or other Person to which they were made or appropriately amended to reflect the termination of the transactions contemplated hereby; provided, however, that
nothing contained in this Section 9.2 shall relieve any party from liability for fraud or any intentional or willful breach of this Agreement. 

10. Additional Covenants and Agreements. 

10.1 Market Listing. From the date hereof through the Closing Date, Company shall use all reasonable efforts to (a) maintain the
listing and trading of the Common Stock on The Nasdaq Global Select Market and (b) effect the listing of the Shares on The Nasdaq Global Select Market, including submitting the LAS to The Nasdaq Stock Market LLC no later than fifteen
(15) calendar days prior to the Closing Date. 

  
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 10.2 Notification under the HSR Act. 

(a) As a result of the aggregate consideration being paid by the Investor under this Agreement and the Collaboration Agreement, which
satisfies the size of transaction jurisdictional threshold under the HSR Act, the parties shall, as soon as practicable, and, in any event, no later than ten (10) Business Days after the date of this Agreement, file or cause to be filed with
the Federal Trade Commission and the Department of Justice the notifications required to be filed under the HSR Act and the rules and regulations promulgated thereunder with respect to the transactions contemplated by this Agreement. The parties
will use all reasonable efforts to respond on a timely basis to any requests for additional information made by either of such agencies. 

(b) Each of Investor and Company shall: (i) reasonably cooperate with each other in connection with any investigation or other inquiry
relating to the transactions contemplated by the Transaction Agreements and the Collaboration Agreement; (ii) reasonably keep the other party informed of any communication received by such party from, or given by such party to, the FTC, the DOJ
or any other Merger Control Authority and of any communication received or given in connection with any proceeding by a private party, in each case regarding the transactions contemplated by the Transaction Agreements or the Collaboration Agreement;
(iii) promptly respond to and certify substantial compliance with any inquiries or requests received from the FTC or the DOJ for additional information or documentation; (iv) reasonably consult with each other in advance of any meeting or
conference with the FTC, the DOJ or any other Merger Control Authority, and to the extent permitted by the FTC, the DOJ or such other Merger Control Authority and reasonably determined by such party to be appropriate under the circumstances, give
the other party or their counsel the opportunity to attend and participate in such meetings and conferences; and (v) permit the other party or their counsel to the extent reasonably practicable to review in advance, and in good faith consider
the views of the other party or their counsel concerning, any submission, filing or communication (and documents submitted therewith) intended to be given by it to the FTC, the DOJ or any other Merger Control Authority; provided,
however, such party shall be under no obligation to reschedule any meetings or conferences with the FTC, the DOJ or any other Merger Control Authority to enable the other party to attend. 

(c) Notwithstanding anything to the contrary in this Agreement, the terms “commercially reasonable efforts” or “reasonable
efforts” do not require that either party (i) offer, negotiate, commit to or effect, by consent decree, hold separate order, trust or otherwise, the sale, divestiture, license or other disposition of any capital stock, assets, rights,
products or businesses of Investor, Company or their respective Affiliates, (ii) agree to any restrictions on the activities of Investor, Company or their respective Affiliates, or (iii) pay any material amount or take any other action to
prevent, effect the dissolution of, vacate, or lift any decree, order, judgment, injunction, temporary restraining order, or other order in any suit or proceeding that would otherwise have the effect of preventing or delaying any of the transactions
contemplated by the Transaction Agreements or the Collaboration Agreement. 

  
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 10.3 Assistance and Cooperation. Prior to the Closing, upon the terms and subject to the
conditions set forth in this Agreement, each of the parties agrees to use all reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, and to assist and cooperate with the other party in doing, all things
necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement, including using all reasonable efforts to accomplish the following: (a) taking all
reasonable acts necessary to cause the conditions precedent set forth in Sections 6, 7 and 8 to be satisfied (including, in the case of the Company, promptly notifying the Investor of any notice from The Nasdaq Stock Market LLC with respect to the
LAS); (b) taking all reasonable actions necessary to obtain all necessary actions or non-actions, waivers, consents, approvals, orders and authorizations from Governmental Authorities and the making of all necessary registrations, declarations
and filings (including registrations, declarations and filings with Governmental Authorities, if any); (c) taking all reasonable actions necessary to obtain all necessary consents, approvals or waivers from Third Parties; and (d) except as
otherwise provided for in Section 10.2, defending any suits, claims, actions, investigations or proceedings, whether judicial or administrative, challenging this Agreement or the consummation of the transactions contemplated hereby, including
seeking to have any stay or temporary restraining order entered by any court or other Governmental Authority vacated or reversed. 
 10.4
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Shares as required under Regulation D and to provide a copy thereof, promptly upon request of the Investor. The Company shall take such action as the
Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Shares for, sale to the Investor at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and
shall provide evidence of such actions promptly upon request of the Investor. 
 10.5 Legend Removal. 

(a) Certificates evidencing the Shares shall not contain the legend set forth in Section 5.10(a): (i) following a sale of such
Shares pursuant to a registration statement covering the resale of such Shares, while such registration statement is effective under the Securities Act, (ii) following any sale of such Shares pursuant to Rule 144, (iii) if such Shares are
eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Shares and without volume or manner-of-sale restrictions under Rule 144 or
(iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). 

(b) Certificates evidencing the Shares shall not contain the legend set forth in Section 5.10(c) following: (i) a sale of such
Shares pursuant to a registration statement covering the resale of such Shares, while such registration statement is effective under the Securities Act, (ii) any sale of such Shares pursuant to Rule 144 or (iii) the expiration of the
Standstill Term (as defined in the Investor Agreement), the Lock-Up Term (as defined in the Investor Agreement) and the Voting Agreement (as defined in the Investor Agreement); provided that any transfer described in clause (i) or
(ii) above shall have been in compliance with all applicable provisions of the Investor Agreement. 
 (c) The Company agrees that at
such time as any legend set forth in Section 5.10 is no longer required under this Section 10.5, the Company will, no later than three (3) Business Days following the delivery by the Investor to the Company or the Company’s
transfer agent (the “Transfer Agent”) of a certificate representing Shares issued with such legend, deliver or cause to be delivered to the Investor a certificate representing such Shares that is free from such legend, or, in the
event that such shares are uncertificated, remove any such legend in the Company’s stock records. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set
forth in Section 5.10. 

  
 - 20 - 

 10.6 Conduct of Business. During the period from the date hereof until the Closing, except
as consented to in writing by the Investor, the Company shall not (i) declare, set aside or pay any dividend or make any other distribution or payment (whether in cash, stock or property or any combination thereof) in respect of its capital
stock, or establish a record date for any of the foregoing, or (ii) make any other actual, constructive or deemed distribution in respect of any shares of its capital stock or otherwise make any payments to stockholders in their capacity as
such, except pursuant to repurchases of equity pursuant to the terms of its equity compensation plans. 
 11. Miscellaneous. 

11.1 Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the Laws of the
State of Delaware, without regard to the conflict of laws principles thereof that would require the application of the Law of any other jurisdiction. Any action brought, arising out of, or relating to this Agreement shall be brought in the Court of
Chancery of the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of said Court in respect of any claim relating to the validity, interpretation and enforcement of this Agreement, and hereby waives, and agrees
not to assert, as a defense in any action, suit or proceeding in which any such claim is made that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in such courts, or that the venue thereof
may not be appropriate or that this agreement may not be enforced in or by such courts. The parties hereby consent to and grant the Court of Chancery of the State of Delaware jurisdiction over such parties and over the subject matter of any such
claim and agree that mailing of process or other papers in connection with any such action, suit or proceeding in the manner provided in Section 11.3 or in such other manner as may be permitted by law, shall be valid and sufficient thereof.

 11.2 Waiver. Waiver by a party of a breach hereunder by the other party shall not be construed as a waiver of any subsequent
breach of the same or any other provision. No delay or omission by a party in exercising or availing itself of any right, power or privilege hereunder shall preclude the later exercise of any such right, power or privilege by such party. No waiver
shall be effective unless made in writing with specific reference to the relevant provision(s) of this Agreement and signed by a duly authorized representative of the party granting the waiver. 

  
 - 21 - 

 11.3 Notices. All notices, instructions and other communications hereunder or in
connection herewith shall be in writing, shall be sent to the address of the relevant party set forth on Exhibit B attached hereto and shall be (a) delivered personally, (b) sent by registered or certified mail, return receipt requested,
postage prepaid, (c) sent via a reputable nationwide overnight courier service or (d) sent by facsimile transmission or electronic mail, with a confirmation copy to be sent by registered or certified mail, return receipt requested, postage
prepaid. Any such notice, instruction or communication shall be deemed to have been delivered upon receipt if delivered by hand, three (3) Business Days after it is sent by registered or certified mail, return receipt requested, postage
prepaid, one (1) Business Day after it is sent via a reputable nationwide overnight courier service or when transmitted with electronic confirmation of receipt, if transmitted by facsimile or electronic mail (if such transmission is made during
regular business hours of the recipient on a Business Day; or otherwise, on the next Business Day following such transmission). Either party may change its address by giving notice to the other party in the manner provided above. 

11.4 Entire Agreement. This Agreement, the Investor Agreement (once executed) and the Collaboration Agreement, contain the entire
agreement among the parties with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous arrangements or understandings, whether written or oral, with respect hereto and thereto. 

11.5 Amendments. No provision in this Agreement shall be supplemented, deleted or amended except in a writing executed by an authorized
representative of each of the Investor and the Company. 
 11.6 Headings; Nouns and Pronouns; Section References. Headings in this
Agreement are for convenience of reference only and shall not be considered in construing this Agreement. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the
singular form of names and pronouns shall include the plural and vice-versa. References in this Agreement to a section or subsection shall be deemed to refer to a section or subsection of this Agreement unless otherwise expressly stated. 

11.7 Severability. If, under applicable Laws, any provision hereof is invalid or unenforceable, or otherwise directly or indirectly
affects the validity of any other material provision(s) of this Agreement in any jurisdiction (“Modified Clause”), then, it is mutually agreed that this Agreement shall endure and that the Modified Clause shall be enforced in such
jurisdiction to the maximum extent permitted under applicable Laws in such jurisdiction; provided that the parties shall consult and use all reasonable efforts to agree upon, and hereby consent to, any valid and enforceable modification of this
Agreement as may be necessary to avoid any unjust enrichment of either party and to match the intent of this Agreement as closely as possible, including the economic benefits and rights contemplated herein. 

11.8 Assignment. Except for an assignment of this Agreement or any rights hereunder by the Investor to an Affiliate, neither this
Agreement nor any of the rights or obligations hereunder may be assigned by either the Investor or the Company without (a) the prior written consent of Company in the case of any assignment by the Investor or (b) the prior written consent
of the Investor in the case of an assignment by the Company. 

  
 - 22 - 

 11.9 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns. 
 11.10 Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument. 
 11.11 Third
Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable by any Third Party, including any creditor of any party hereto. No Third Party shall obtain any right under any provision of this Agreement
or shall by reason of any such provision make any claim in respect of any debt, liability or obligation (or otherwise) against any party hereto. 

11.12 No Strict Construction. This Agreement has been prepared jointly and will not be construed against either party. 

11.13 Survival of Warranties. The representations and warranties of the Company and the Investor contained in this Agreement shall
survive the Closing and the delivery of the Shares. 
 11.14 Remedies. The rights, powers and remedies of the parties under this
Agreement are cumulative and not exclusive of any other right, power or remedy which such parties may have under any other agreement or Law. No single or partial assertion or exercise of any right, power or remedy of a party hereunder shall preclude
any other or further assertion or exercise thereof. 
 11.15 Expenses. Each party shall pay its own fees and expenses in connection
with the preparation, negotiation, execution and delivery of the Transaction Agreements. 
 11.16 No Publicity. The parties hereto
agree that the provisions of Section 11.5 of the Collaboration Agreement shall be applicable to the parties to this Agreement with respect to any public disclosures regarding the proposed transactions contemplated by the Purchase Agreement and
the Collaboration Agreement or regarding the parties hereto or their Affiliates (it being understood that the provisions of Section 11.5 of the Collaboration Agreement shall be read to apply to disclosures of information relating to this
Agreement and the transactions contemplated hereby). 
 11.17 Limitation of Liability. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE
OTHER PARTY (OR THE OTHER PARTY’S AFFILIATES OR SUBLICENSEES) IN CONNECTION WITH THIS AGREEMENT FOR LOST REVENUE, LOST PROFITS, LOST SAVINGS, LOSS OF USE, DAMAGE TO GOODWILL, OR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR
INDIRECT DAMAGES UNDER ANY THEORY, INCLUDING CONTRACT, NEGLIGENCE, OR STRICT LIABILITY, EVEN IF THAT PARTY HAS BEEN PLACED ON NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. 

  
 - 23 - 

 (Signature Page Follows) 

  
 - 24 - 

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

					
	JOHNSON & JOHNSON INNOVATION-JJDC, INC.
		
	By:	 	 Marian T. Nakada

		 	Name:	 	Marian T. Nakada
		 	Title:	 	VP Venture Investments
	
	ACHILLION PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Milind Deshpande

	Name:	 	Milind Deshpande
	Title:	 	President & CEO

 (Signature Page to Stock Purchase Agreement) 

 EXHIBIT A 

FORM OF INVESTOR AGREEMENT 
 Incorporated
by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the fiscal period ended June 30, 2015EX-10.4

 Exhibit 10.4 

Confidential Materials omitted and filed separately with the 

Securities and Exchange Commission. Double asterisks denote omissions. 

INVESTOR AGREEMENT 
 By
and Between 
 JOHNSON & JOHNSON INNOVATION-JJDC, INC. 

AND 
 ACHILLION
PHARMACEUTICALS, INC. 
 Dated as of July 1, 2015 

 TABLE OF CONTENTS 

 

									
	 1.
	 	 Definitions
	  	 	1	  
			
	 2.
	 	 Registration Rights
	  	 	7	  
				
		 	 2.1
	  	 Required Registration
	  	 	7	  
		 	 2.2
	  	 Shelf Takedown Request
	  	 	9	  
		 	 2.3
	  	 Company Registration
	  	 	9	  
		 	 2.4
	  	 Underwritten Required Registration
	  	 	10	  
		 	 2.5
	  	 Revocation of Required Registration
	  	 	11	  
		 	 2.6
	  	 Effective Required Registrations
	  	 	11	  
		 	 2.7
	  	 Continuous Effectiveness of Registration Statement
	  	 	12	  
		 	 2.8
	  	 Obligations of the Company
	  	 	12	  
		 	 2.9
	  	 Furnish Information
	  	 	15	  
		 	 2.10
	  	 Expenses
	  	 	15	  
		 	 2.11
	  	 Indemnification
	  	 	15	  
		 	 2.12
	  	 SEC Reports
	  	 	18	  
		 	 2.13
	  	 Assignment of Registration Rights
	  	 	18	  
			
	 3.
	 	 Restrictions on Beneficial Ownership
	  	 	18	  
				
		 	 3.1
	  	 Standstill
	  	 	18	  
			
	 4.
	 	 Restrictions on Dispositions
	  	 	19	  
				
		 	 4.1
	  	 Lock-Up
	  	 	19	  
		 	 4.2
	  	 Certain Tender Offers
	  	 	20	  
			
	 5.
	 	 Voting Agreement
	  	 	20	  
				
		 	 5.1
	  	 Voting of Securities
	  	 	20	  
		 	 5.2
	  	 Certain Extraordinary Matters
	  	 	21	  
		 	 5.3
	  	 Quorum
	  	 	22	  
			
	 6.
	 	 Termination of Certain Rights and Obligations
	  	 	22	  
				
		 	 6.1
	  	 Termination of Registration Rights Term
	  	 	22	  
		 	 6.2
	  	 Termination of Standstill Term
	  	 	22	  
		 	 6.3
	  	 Termination of Lock-Up Term
	  	 	23	  
		 	 6.4
	  	 Termination of Voting Agreement Term
	  	 	23	  
		 	 6.5
	  	 Effect of Termination
	  	 	23	  
			
	 7.
	 	 Miscellaneous
	  	 	24	  
				
		 	 7.1
	  	 Governing Law; Submission to Jurisdiction
	  	 	24	  
		 	 7.2
	  	 Waiver
	  	 	24	  
		 	 7.3
	  	 Notices
	  	 	24	  

									
		 	 7.4
	  	 Entire Agreement
	  	 	24	  
		 	 7.5
	  	 Amendments
	  	 	25	  
		 	 7.6
	  	 Headings; Nouns and Pronouns; Section References
	  	 	25	  
		 	 7.7
	  	 Severability
	  	 	25	  
		 	 7.8
	  	 Assignment
	  	 	25	  
		 	 7.9
	  	 Successors and Assigns
	  	 	25	  
		 	 7.10
	  	 Counterparts
	  	 	25	  
		 	 7.11
	  	 Third Party Beneficiaries
	  	 	25	  
		 	 7.12
	  	 No Strict Construction
	  	 	25	  
		 	 7.13
	  	 Remedies
	  	 	25	  
		 	 7.14
	  	 Specific Performance
	  	 	26	  
		 	 7.15
	  	 No Conflicting Agreements
	  	 	26	  
		 	 7.16
	  	 Use of Proceeds
	  	 	26	  
		 	 7.17
	  	 No Publicity
	  	 	26	  
		 	 7.18
	  	 Limitation of Liability
	  	 	26	  
		
	 Exhibit A – Form of Irrevocable Proxy
	  			
		
	 Exhibit B – Notices
	  			

  
 - ii - 

 INVESTOR AGREEMENT 

THIS INVESTOR AGREEMENT (this “Agreement”) is made as of
                 , 2015, by and among Johnson & Johnson Innovation-JJDC, Inc., a New Jersey corporation with its principal place of business at 410 George
Street, New Brunswick, New Jersey 08901 (“Investor”) and Achillion Pharmaceuticals, Inc. (the “Company”), a Delaware corporation with its principal place of business at 300 George Street, New Haven, CT 06511. 

WHEREAS, the Stock Purchase Agreement, dated as of May 19, 2015 by and between the Investor and the Company (the “Purchase
Agreement”) provides for the issuance and sale by the Company to the Investor, and the purchase by the Investor, of a number of shares (such shares, the “Purchased Shares”) of the Company’s common stock, par value
$0.01 per share (the “Common Stock”); 
 WHEREAS, as a condition to consummating the transactions contemplated by the
Purchase Agreement, the Investor and the Company have agreed upon certain rights and restrictions as set forth herein with respect to the Purchased Shares and other securities of the Company beneficially owned by the Investor and its Affiliates, and
it is a condition to the closing under the Purchase Agreement that this Agreement be executed and delivered by the Investor and the Company; and 

WHEREAS, simultaneously with the execution of the Purchase Agreement, the Company and Janssen Pharmaceuticals, Inc.
(“Janssen”), an Affiliate of the Investor, entered into the Collaboration Agreement. 
 NOW, THEREFORE, in consideration of
the premises and mutual agreements hereinafter set forth, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Definitions. As used in this Agreement, the following terms shall have the following meanings: 

(a) “Affiliate” shall mean, with respect to any Person, another Person that controls, is controlled by or is under common
control with such Person; provided, that with respect to the Investor, “Affiliate” shall mean the Investor’s subsidiaries that are wholly-owned directly or indirectly, by the Investor and any Person that wholly-owns, directly
or indirectly, the Investor; provided further, that with respect to the Investor, the term “Affiliate” shall not include any employee benefit plan of the Investor. A Person shall be deemed to control another Person if such Person
possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. Without limiting the generality of the
foregoing, a Person shall be deemed to control another Person if any of the following conditions is met: (i) in the case of corporate entities, direct or indirect ownership of more than fifty percent (50%) of the stock or shares having the
right to vote for the election of directors, and (ii) in the case of non-corporate entities, direct or indirect ownership of more than fifty percent (50%) of the equity interest with the power to direct the management and policies of such
non-corporate entities. For the purposes of this Agreement, in no event shall the Investor or any of its Affiliates be deemed Affiliates of the Company or any of its Affiliates, nor shall the Company or any of its Affiliates be deemed Affiliates of
the Investor or any of its Affiliates. 

 (b) “Agreement” shall have the meaning set forth in the Preamble to this
Agreement, including all Exhibits attached hereto. 
 (c) “Beneficial owner,” “beneficially
owns,” “beneficial ownership” and terms of similar import used in this Agreement shall, with respect to a Person, have the meaning set forth in Rule 13d-3 under the Exchange Act (i) assuming the full conversion into,
and exercise and exchange for, shares of Common Stock of all Common Stock Equivalents beneficially owned by such Person and (ii) determined without regard for the number of days in which such Person has the right to acquire such beneficial
ownership. 
 (d) “Business Day” shall mean a weekday on which banking institutions in the United States are
generally open for business. 
 (e) “Change of Control” shall occur if: (a) any Third Party acquires directly
or indirectly the beneficial ownership of any voting security of the Company, or if the percentage ownership of such person or entity in the voting securities of the Company is increased through stock redemption, cancellation or other
recapitalization, and immediately after such acquisition or increase such Third Party is, directly or indirectly, the beneficial owner of voting securities representing more than fifty percent (50%) of the total voting power of all of the then
outstanding voting securities of the Company; (b) a merger, consolidation, recapitalization, or reorganization of the Company is consummated, other than any such transaction, which would result in stockholders or equity holders of the Party
immediately prior to such transaction, owning at least fifty percent (50%) of the outstanding securities of the surviving entity (or its parent entity) immediately following such transaction; (c) the stockholders or equity holders of the
Company approve a plan of complete liquidation of the Company, or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than pursuant to the transaction described above or to an
Affiliate; (d) individuals who, as of the date hereof, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of the Company
(provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was recommended or approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an
actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board of Directors of the Company); or
(e) the sale or transfer to a Third Party of (i) all or substantially all of the Company’s assets taken as a whole or (ii) a majority of the Company’s assets which relate to the Collaboration Agreement, is effected.

 (f) “Closing Date” shall have the meaning set forth in the Purchase Agreement. 

  
 - 2 - 

 (g) “Collaboration Agreement” shall mean the Collaboration and License
Agreement, of even date herewith, between Janssen and the Company. 
 (h) “Common Stock” shall have the meaning set
forth in the Preamble to this Agreement. 
 (i) “Common Stock Equivalents” shall mean any options, warrants or
other securities or rights convertible into or exercisable or exchangeable for, whether directly or following conversion into or exercise or exchange for other options, warrants or other securities or rights, shares of Common Stock or any swap,
hedge or similar agreement or arrangement that transfers in whole or in part, the economic risk of ownership of, or voting or other rights of, the Common Stock. 

(j) “Company” shall have the meaning set forth in the Preamble to this Agreement. 

(k) “Demand Request” shall have the meaning set forth in Section 2.1. 

(l) “Disposition” or “Dispose of” shall mean any (i) pledge, sale, contract to sell, sale of
any option or contract to purchase, purchase of any option or contract to sell, grant of any option, right or warrant for the sale of, or other disposition of or transfer of any shares of Common Stock, or any Common Stock Equivalents, including,
without limitation, any “short sale” or similar arrangement, or (ii) swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of shares of Common
Stock, whether any such swap or transaction is to be settled by delivery of securities, in cash or otherwise. 
 (m)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 

(n) “Extraordinary Matter” shall have the meaning set forth in Section 5.2. 

(o) “Filing Date” shall mean (i) with respect to any Registration Statement to be filed on Form S-1 (or any applicable
successor form), sixty (60) days after receipt by the Company of a Demand Request for such Registration Statement and (ii) with respect to any Registration Statement to be filed on Form S-3 (or any applicable successor form), thirty
(30) Business Days after receipt by the Company of a Demand Request for such Registration Statement. 
 (p)
“Governmental Authority” shall mean any court, agency, authority, department, regulatory body or other instrumentality of any government or country or of any national, federal, state, provincial, regional, county, city or other
political subdivision of any such government or country or any supranational organization of which any such country is a member. 

  
 - 3 - 

 (q) “Holders” shall mean (but, in each case, only for so long as such
Person remains an Affiliate of the Investor) the Investor and any Permitted Transferee thereof, if any, in accordance with Section 2.13. 

(r) “Initiating Holder” shall have the meaning set forth in Section 2.4. 

(s) “Interference” shall have the meaning set forth in Section 2.6. 

(t) “Investor” shall have the meaning set forth in the Preamble to this Agreement. 

(u) “Irrevocable Proxy” shall have the meaning set forth in Section 5.1. 

(v) “Law” or “Laws” shall mean all laws, statutes, rules, regulations, orders, judgments,
injunctions and/or ordinances of any Governmental Authority. 
 (w) “Lock-Up Securities” shall have the meaning set
forth in Section 4.1. 
 (x) “Lock-Up Term” shall mean the period from and after the date of this Agreement until the
occurrence of any event set forth in Section 6.3. 
 (y) “Modified Clause” shall have the meaning set forth in Section
7.7. 
 (z) “Offeror” shall have the meaning set forth in Section 6.2. 

(aa) “Other Holders” shall mean any Person having rights to participate in a registration of the Company’s securities.

 (bb) “Permitted Transferee” shall mean (i) a controlled Affiliate of the Investor that is wholly owned, directly
or indirectly, by the Investor, or (ii) a controlling Affiliate of the Investor (or any controlled Affiliate of such controlling Affiliate) that wholly owns, directly or indirectly, the Investor, or the acquiring Person in the case of a Change
of Control of the Investor; it being understood that for purposes of this definition “wholly owned” shall mean an Affiliate in which the Investor owns, or an Affiliate that owns, as applicable, directly or indirectly, at least ninety-nine
percent (99%) of the outstanding capital stock of such Affiliate or the Investor, as applicable. 
 (cc) “Permitted Transferee
Irrevocable Proxy” shall have the meaning set forth in Section 5.1. 
 (dd) “Person” shall mean any individual,
limited liability company, partnership, firm, corporation, association, trust, unincorporated organization, government or any department or agency thereof or other entity, as well as any syndicate or group that would be deemed to be a Person under
Section 13(d)(3) of the Exchange Act. 

  
 - 4 - 

 (ee) “Prospectus” shall mean the prospectus forming a part of any
Registration Statement, as supplemented by any and all prospectus supplements and as amended by any and all amendments (including post-effective amendments) and including all material incorporated by reference or explicitly deemed to be incorporated
by reference in such prospectus. 
 (ff) “Purchase Agreement” shall have the meaning set forth in the
Preamble to this Agreement, and shall include all Exhibits attached thereto. 
 (gg) “Purchased Shares”
shall have the meaning set forth in the Preamble to this Agreement, and shall be adjusted for (i) any stock split, stock dividend, share exchange, merger, consolidation or similar recapitalization and (ii) any Common Stock issued as (or
issuable upon the exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange or in replacement of, the Purchased Shares. 

(hh) “registers,” “registered,” and “registration” refer to a registration effected
by preparing and filing a Registration Statement or similar document in compliance with the Securities Act, and the declaration or ordering of effectiveness of such Registration Statement or document by the SEC. 

(ii) “Registrable Securities” shall mean (i) the Purchased Shares, together with any shares of Common Stock
issued in respect thereof as a result of any stock split, stock dividend, share exchange, merger, consolidation or similar recapitalization and (ii) any Common Stock issued as (or issuable upon the exercise of any warrant, right or other
security that is issued as) a dividend or other distribution with respect to, or in exchange or in replacement of, the shares of Common Stock described in clause (i) of this definition, excluding in all cases, however, (A) any Registrable
Securities if and after they have been transferred to a Permitted Transferee in a transaction in connection with which registration rights granted hereunder are not assigned, (B) any Registrable Securities sold to or through a broker or dealer
or underwriter in a public distribution or a public securities transaction, or (C) if the Investor and its Affiliates together own less than five percent (5%) of the Shares of Then Outstanding Common Stock, Purchased Shares eligible for
resale pursuant to Rule 144(b)(1)(i) under the Securities Act. 
 (jj) “Registration Expenses” shall mean all
expenses incurred by the Company in connection with any Required Registration pursuant to Section 2.1 or Company’s compliance with Section 2.8, including, without limitation, all registration and filing fees, fees and expenses of
compliance with securities or blue sky Laws (including reasonable fees and disbursements of counsel in connection with blue sky qualifications) or any Registrable Securities), expenses of printing (i) certificates for any Registrable Securities
in a form eligible for deposit with the Depository Trust Company or (ii) Prospectuses if the printing of Prospectuses is requested by Holders, messenger and delivery expenses, fees and disbursements of counsel for the Company and its
independent certified public accountants (including the expenses of any management review, cold comfort letters or any special audits required by or incident to such performance and compliance), Securities Act liability insurance (if the Company
elects to obtain such insurance), the reasonable fees and expenses of any special experts retained by the Company in connection with such registration, fees and expenses of other Persons retained by the Company and the reasonable fees and expenses
(such fees and expenses not to exceed $75,000) of one (1) counsel for the Holders of Registrable Securities in each Required Registration, selected by the 

  
 - 5 - 

 
Holders of a majority of the Registrable Securities to be included in such Required Registration. In addition, the Company will pay its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Purchased Shares to be registered on each securities
exchange, if any, on which equity securities issued by the Company are then listed or the quotation of such securities on any national securities exchange on which equity securities issued by the Company are then quoted. 

(kk) “Registration Notice” shall have the meaning set forth in Section 2.3 

(ll) “Registration Rights Term” shall mean the period from and after the expiration of the Lock-Up Term until the occurrence
of any event set forth in Section 6.1. 
 (mm) “Registration Statement” shall mean any registration statement of the
Company under the Securities Act that covers any of the Registrable Securities pursuant to the provisions of this Agreement, including the related Prospectus, all amendments and supplements to such registration statement (including post-effective
amendments), and all exhibits and all materials incorporated by reference or explicitly deemed to be incorporated by reference in such Registration Statement. 

(nn) “Required Period” with respect to a Required Registration shall mean the earlier of (i) the date on which all
Registrable Securities covered by such Required Registration are sold pursuant thereto and (ii) one-hundred twenty (120) days following the first day of effectiveness of the Registration Statement for such Required Registration, in each
case subject to extension as set forth herein; provided, however, that in no event will the Required Period expire prior to the expiration of the applicable period referred to in Section 4(3) of the Securities Act and Rule 174 promulgated
thereunder; provided, further, however, that (i) such one-hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other
securities) of the Company, from selling any securities included in such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered on a continuous or delayed basis, subject to
compliance with applicable SEC rules, such one hundred twenty (120) day period shall be extended, if necessary, to keep the Registration Statement effective until the earlier of (A) such time as all such Registrable Securities registered
on such Registration Statement are sold or (B) all such Registrable Securities on such Registration Statement may be sold in any three month period pursuant to Rule 144. 

(oo) “Required Registration” shall have the meaning set forth in Section 2.1. 

(pp) “SEC” shall mean the United States Securities and Exchange Commission. 

(qq) “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the SEC
promulgated thereunder. 

  
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 (rr) “Selling Expenses” shall mean all underwriting discounts and
selling commissions applicable to the sale of Registrable Securities pursuant to this Agreement. 
 (ss) “Shares of
Then Outstanding Common Stock” shall mean, at any time, the issued and outstanding shares of Common Stock at such time, as well as all capital stock issued and outstanding as a result of any stock split, stock dividend, or reclassification
of Common Stock distributable, on a pro rata basis, to all holders of Common Stock. 
 (tt) “Shelf Registration
Statement” shall have the meaning set forth in Section 2.2. 
 (uu) “Standstill Parties” shall have
the meaning set forth in Section 3.1. 
 (vv) “Standstill Term” shall mean the period from and after the
date of this Agreement until the occurrence of any event set forth in Section 6.2. 
 (ww) “Third Party”
shall mean any Person (other than a Governmental Authority) other than the Investor, the Company or any of their respective Affiliates. 

(xx) “Underwritten Registration” or “Underwritten Offering” shall mean a registration in which
Registrable Securities are sold to an underwriter for reoffering to the public. 
 (yy) “Violation” shall
have the meaning set forth in Section 2.11(a). 
 (zz) “Voting Agreement Term” shall mean the period from
and after the date of this Agreement until the occurrence of any event set forth in Section 6.4. 
 2. Registration Rights.

 2.1 Required Registration. If, during the Registration Rights Term (or prior to the Registration Rights Term in the event of the
filing of a Registration Statement that will not become effective until the Registration Rights Term has begun), the Company receives from any Holder or Holders a written request or requests (each, a “Demand Request”) that the
Company file a Registration Statement under the Securities Act to effect the registration (a “Required Registration”) of Registrable Securities, the Company shall use all reasonable efforts to file a Registration Statement covering
such Holders’ Registrable Securities as soon as practicable (and by the applicable Filing Date) and shall use all reasonable efforts to, as soon as practicable thereafter, effect the registration of the Registrable Securities to permit or
facilitate the sale and distribution in an Underwritten Offering of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such Demand Request, subject however, to the conditions and limitations set
forth herein; provided however, that the Company shall not be obligated to effect any registration of Registrable Securities upon receipt of a Demand Request pursuant to this Section 2.1 if: 

(a) the Company has already completed two (2) Required Registrations; 

  
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 (b) (i) in the event that the market value of all Registrable Securities outstanding is equal to
or greater than forty million dollars ($40,000,000), the market value of the Registrable Securities proposed to be included in the registration, based on the average closing price during the ten (10) consecutive trading days period prior to the
making of the Demand Request, is less than forty million dollars ($40,000,000) or (ii) in the event that the market value of all Registrable Securities outstanding is less than forty million dollars ($40,000,000), the market value of the
Registrable Securities proposed to be included in the registration, based on the average closing price during the ten (10) consecutive trading days period prior to the making of the Demand Request, is less than the lesser of (x) twenty
million dollars ($20,000,000) or (y) the total market value of Registrable Securities outstanding; 
 (c) the Company furnishes to the
Holders a certificate signed by an authorized officer of the Company stating that (i) within sixty (60) days of receipt of the Demand Request under this Section 2.1, the Company expects to file a registration statement for the public
offering of securities for the account of the Company (other than a registration of securities (x) issuable pursuant to an employee stock option, stock purchase or similar plan, (y) issuable pursuant to a merger, exchange offer or a
transaction of the type specified in Rule 145(a) under the Securities Act or (z) in which the only securities being registered are securities issuable upon conversion of debt securities which are also being registered), provided, that the
Company is actively employing good faith efforts to cause such registration statement to become effective, or (ii) the Company is engaged in a material transaction or has an undisclosed material corporate development, in either case, which
would be required to be disclosed in the Registration Statement, and in the good faith judgment of the Company’s Board of Directors, such disclosure would be materially detrimental to the Company and its stockholders at such time (in which
case, the Company shall disclose the matter as promptly as reasonably practicable and thereafter file the Registration Statement, and each Holder agrees not to disclose any information about such material transaction to Third Parties until such
disclosure has occurred or such information has entered the public domain other than through breach of this provision by such Holder), provided, however, that the Company shall have the right to defer the filing of the Registration Statement
pursuant to this subsection only twice in any twelve (12) month period and such deferral may not exceed a period of more than sixty (60) days in the aggregate during such twelve-month period; 

(d) the Company has, within the twelve (12) month period preceding the date of the Demand Request, already effected one
(1) Required Registration for any Holder pursuant to this Section 2.1; or 
 (e) at any time during the period between the
Company’s receipt of the Demand Request and the completion of the Required Registration, any Holder is in breach of or has failed to cause its Affiliates to comply with the obligations and restrictions of Sections 3 or 4 of this Agreement, the
Company has provided notice of such breach to a Holder and such breach or failure is ongoing and has not been remedied; it being understood that (i) a one-time, inadvertent and de minimis breach of Section 4 shall not be deemed to be a
breach of the obligations and restrictions under Section 4 for purposes of this Section 2.1(e) and (ii) a de minimis breach of Section 3.1(a) hereof, or an inadvertent breach of Section 3.1(g) hereof arising from informal
discussions covering general corporate or other business matters the purpose of which is not intended to effectuate or lead to any of the actions referred to in paragraphs (a) through (f) of Section 3.1, shall not be deemed to be a
breach of the obligations and restrictions under Section 3.1 for purposes of this Section 2.1(e). 

  
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 2.2 Shelf Takedown Request. At any time the Company has an effective shelf
registration statement pursuant to Rule 415 of the Securities Act (a “Shelf Registration Statement”) with respect to a Holder’s Registrable Securities, by notice to the Company specifying the intended method or methods of
disposition thereof, the Investor may make a written request to the Company to effect a public offering of all or a portion of such Holder’s Registrable Securities that may be registered under such Shelf Registration Statement, and as soon as
practicable the Company shall amend or supplement the Shelf Registration Statement as necessary for such purpose. 
 2.3 Company
Registration. 
 (a) Until the seventh (7th) anniversary of the
expiration of the Lock-Up Term, the Company shall notify (“Registration Notice”) the Holders in writing at least five (5) Business Days prior to (i) the filing of any registration statement (other than any registration
effected solely to implement an employee benefit plan or a transaction to which Rule 145 is applicable, Form S-4, Form S-8, or any successor forms thereto or other form not available for registering the Registrable Securities for sale to the public
and any related Prospectuses, amendments or supplements thereto) or (ii) in the case of a Shelf Registration Statement (including a previously filed Shelf Registration Statement), the anticipated pricing or trade date and will afford each
Holder an opportunity, subject to the terms and conditions of this Agreement, to include in such registration statement or sale transaction the number of Registrable Securities then held by such Holder that such Holder wishes to include in such
registration statement. Each Holder desiring to include in any such registration statement or sale transaction all or any part of the Registrable Securities held by such Holder shall, within ten (10) Business Days after receipt of the
Registration Notice (“Registration Notice Period”), so notify the Company in writing, and in such notification, inform the Company of the number of Registrable Securities such Holder wishes to include in such registration statement
or sale transaction. The Company may not sell any securities pursuant to such registration statement until the Registration Notice Period has expired. If a Holder decides not to include Registrable Securities in any registration statement thereafter
filed by the Company, such Holder shall nevertheless continue to have the right to include Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with respect to offerings of its
securities (either by the Company or by its stockholders), all upon the terms and conditions set forth herein.  
 (b) Each Holder
shall keep confidential and not disclose to any third party (i) its receipt of any Registration Notice and (ii) any information regarding the proposed offering as to which such notice is delivered, except as required by law, regulation or
as compelled by subpoena. 
 (c) If a registration pursuant to this Section 2.3 is an Underwritten Offering, the right of any such
Holder to include Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided
herein. The Company and all Holders proposing to distribute their Registrable Securities through such underwriting shall 

  
 - 9 - 

 
enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this Section 2, if
the managing underwriter for the Underwritten Offering determines in good faith that marketing factors require a limitation of the number of shares of Registrable Securities to be included in such Underwritten Offering and advises the Holders of
such determination in writing, such Underwritten Offering shall include (i) first, all securities proposed to be included in the Underwritten Offering by the Company, (ii) second, all Registrable Securities of the Holders allocated, if the
amount is less than all the Registrable Securities requested to be sold, pro rata on the basis of the total number of Registrable Securities held by such Holders; and (iii) third, as many other securities proposed to be included in the
Underwritten Offering by any Other Holders, allocated pro rata among such Other Holders, on the basis of the amount of securities requested to be included therein by such Other Holder so that the total amount of securities to be included in
such Underwritten Offering is the full amount that, in the written opinion of such managing underwriter, can be sold without materially and adversely affecting the success of such Underwritten Offering. 

(d) Notwithstanding the foregoing, the Company shall have the right to terminate or withdraw any registration initiated by it under this
Section 2.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. 

2.4 Underwritten Required Registration. If, pursuant to Section 2.1, the Holders intend to distribute the Registrable Securities
covered by their request by means of an underwriting, the Holders shall so advise the Company as a part of their request made pursuant to Section 2.1. The underwriter(s) will be selected by the Company, subject to approval by a majority in
interest of the Holders initiating the Required Registration hereunder (such Holder(s) initiating the registration request, the “Initiating Holders”), which approval shall not be unreasonably withheld or delayed. With respect to any
Required Registration of Registrable Securities requested pursuant to Section 2.1 that is an Underwritten Offering, the Company may also (i) propose to sell shares of Common Stock on its own behalf and (ii) provide written notice of
such Required Registration to Other Holders and permit all such Other Holders who request to be included in the Required Registration to include any or all Company securities held by such Other Holders in such Required Registration on the same terms
and conditions as the Registrable Securities. If a registration pursuant to Section 2.1 is an Underwritten Offering, the right of any Holder to include its Registrable Securities in the Underwritten Offering shall be conditioned upon such
Holder’s participation in such Underwritten Offering and the inclusion of such Holder’s Registrable Securities to the extent provided herein. All Holders requesting the inclusion of their Registrable Securities in such Underwritten
Offering pursuant to Section 2.1 shall (together with the Company as provided in Section 2.8(h)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such Underwritten Offering.
Notwithstanding any other provision of this Section 2, if the managing underwriter for such Underwritten Offering pursuant to Section 2.1 determines in good faith that marketing factors require a limitation of the number of shares of
Registrable Securities to be included in such Underwritten Offering and advises the Initiating Holders of such determination in writing, then the Company shall so advise all Holders which requested inclusion of their Registrable Securities in such
Underwritten Offering, and such Underwritten Offering shall include (i) first, all Registrable Securities of the Holders allocated, if the amount is less than all the Registrable Securities 

  
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requested to be sold, pro rata on the basis of the total number of Registrable Securities held by such Holders; and (ii) second, as many other securities proposed to be included in
the Underwritten Offering by the Company and any Other Holders, allocated pro rata among the Company and such Other Holders, on the basis of the amount of securities requested to be included therein by the Company and each such Other Holder
so that the total amount of securities to be included in such Underwritten Offering is the full amount that, in the written opinion of such managing underwriter, can be sold without materially and adversely affecting the success of such Underwritten
Offering; provided, however, that the number of shares of Registrable Securities to be included in such Underwritten Offering shall not be reduced unless all other securities are first entirely excluded from such Underwritten Offering. 

2.5 Revocation of Required Registration. With respect to one (1) Required Registration only, the Holders of at least a majority of
the Registrable Securities to be included in a Registration Statement with respect to such Required Registration may, at any time prior to the effective date of such Registration Statement, on behalf of all Holders of all Registrable Securities
requested to be included therein, revoke the request to have Registrable Securities included therein and revoke the request for such Required Registration by providing a written notice to the Company, in which case such Required Registration that
has been revoked will be deemed not to have been effected and will not count as a Required Registration for purposes of Section 2.1 (i) if, and only if, the Holders of Registrable Securities which had requested inclusion of Registrable
Securities in such Required Registration promptly reimburse the Company for all Registration Expenses incurred by the Company in connection with such Required Registration. Notwithstanding the foregoing sentence, the parties agree and acknowledge
that the Holders of a majority of the Registrable Securities requested to be included in such Required Registration, may revoke any Required Registration (without any obligation to reimburse the Company for Registration Expenses incurred in
connection therewith) if such revocation is based on (i) a material adverse change in circumstances with respect to the Company and its subsidiaries, taken as a whole, caused by an act or failure to act by the Company or any of its subsidiaries
and not known to any Holder at the time the Required Registration was first made, (ii) the Company’s failure to comply in any material respect with its obligations hereunder, or (iii) a decrease in the total number of Registrable
Securities that may be included by the Holders in a Required Registration under Section 2.4 such that the number of Registrable Securities that may be included in such Required Registration is less than seventy-five percent (75%) of all
Registrable Securities which the Holders requested to be included in such Required Registration and any such revocation based on an event described in (i), (ii) or (iii) above shall be exercisable at any time and shall not be counted as
the one (1) revocation of a Required Registration permitted by the first sentence of this Section 2.5. 
 2.6 Effective
Required Registrations. A Required Registration will not be deemed to be effected for purposes of Section 2.1(a) if the Registration Statement for such Required Registration has (a) not been declared effective by the SEC or
(b) become effective in accordance with the Securities Act and the rules and regulations thereunder and not been kept effective for the Required Period. In addition, if after such Registration Statement has been declared or becomes effective,
(i) the offering of Registrable Securities pursuant to such Registration Statement is interfered with by any stop order, injunction, or other order or requirement of the SEC or other governmental agency or court such that the continued offer
and sale of Registrable Securities being offered pursuant to such Registration Statement would violate 

  
 - 11 - 

 
applicable Law and such stop order, injunction or other order or requirement of the SEC or other governmental agency or court does not result from any act or omission of any Holder whose
Registrable Securities are registered pursuant to such Registration Statement (an “Interference”) and (ii) any such Interference is not cured within ninety (90) days thereof, such Required Registration will be deemed not
to have been effected and will not count as a Required Registration. In the event such Interference occurs and is cured, the Required Period relating to such Registration Statement will be extended by the number of days of such Interference,
including the date such Interference is cured. 
 2.7 Continuous Effectiveness of Registration Statement. The Company will use all
reasonable efforts to cause each Registration Statement filed pursuant to this Section 2 to be declared effective by the SEC or to become effective under the Securities Act as promptly as practicable and to keep each such Registration Statement
that has been declared or becomes effective continuously effective for the Required Period. 
 2.8 Obligations of the Company.
Whenever required under Section 2.1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 

(a) prepare and file with the SEC a Registration Statement with respect to such Registrable Securities sought to be included therein;
provided that at least five (5) Business Days prior to filing any Registration Statement or Prospectus or any amendments or supplements thereto, the Company shall furnish to the Holders of the Registrable Securities covered by such Registration
Statement, their counsel and the managing underwriter copies of all such documents proposed to be filed, and any such Holder shall have the opportunity to comment on any information pertaining solely to such Holder and its plan of distribution that
is contained therein and the Company shall make the corrections reasonably requested by such Holder or the managing underwriter with respect to such information prior to filing any such Registration Statement or amendment; 

(b) prepare and file with the SEC such amendments and post-effective amendments to any Registration Statement and any Prospectus used in
connection therewith as may be necessary to keep such Registration Statement effective for the Required Period, and cause the Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule
424 under the Securities Act, to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such registration statement for the Required Period; provided that at least five
(5) Business Days prior to filing any such amendments and post effective amendments or supplements thereto, the Company shall furnish to the Holders of the Registrable Securities covered by such Registration Statement, their counsel and the
managing underwriter copies of all such documents proposed to be filed, and any such Holder or managing underwriter shall have the opportunity to comment on any information pertaining solely to such Holder and its plan of distribution that is
contained therein and the Company shall make the corrections reasonably requested by such Holder and the managing underwriter with respect to such information prior to filing any such Registration Statement or amendment; 

  
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 (c) furnish to the Holders of Registrable Securities covered by such Registration Statement and
the managing underwriter such numbers of copies of such Registration Statement, each amendment and supplement thereto, the Prospectus included in such Registration Statement (including each preliminary prospectus or free writing prospectus) in
conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 

(d) notify the Holders of Registrable Securities covered by such Registration Statement, promptly after the Company shall receive notice
thereof, of the time when such Registration Statement becomes or is declared effective or when any amendment or supplement or any Prospectus forming a part of such Registration Statement has been filed; 

(e) notify the Holders of Registrable Securities covered by such Registration Statement promptly of any request by the SEC for the amending
or supplementing of such Registration Statement or Prospectus or for additional information and promptly deliver to such Holders copies of any comments received from the SEC; 

(f) notify the Holders promptly of any stop order suspending the effectiveness of such Registration Statement or Prospectus or the initiation
of any proceedings for that purpose, and use all reasonable efforts to obtain the withdrawal of any such order or the termination of such proceedings; 

(g) use all reasonable efforts to register and qualify the Registrable Securities covered by such Registration Statement under such other
securities or blue sky Laws of such jurisdictions as shall be reasonably requested by the Holders, use all reasonable efforts to keep each such registration or qualification effective, including through new filings, or amendments or renewals, during
the Required Period, and notify the Holders of Registrable Securities covered by such Registration Statement of the receipt of any written notification with respect to any suspension of any such qualification; provided, however, that
the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in
such jurisdiction and except as may be required by the Securities Act; 
 (h) in the event of any Underwritten Offering, enter into and
perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of the Underwritten Offering pursuant to which such Registrable Securities are being offered; 

(i) use all reasonable efforts to obtain: (A) at the time of effectiveness of the Registration Statement covering such Registrable
Securities, a “cold comfort letter” from the Company’s independent certified public accountants covering such matters of the type customarily covered by “cold comfort letters” as the underwriters may reasonably request; and
(B) at the time of any underwritten sale pursuant to such Registration Statement, a “bring-down comfort letter,” dated as of the date of such sale, from the Company’s independent certified public accountants covering such matters
of the type customarily covered by “bring-down comfort letters” as the underwriters may reasonably request. 

  
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 (j) promptly notify each Holder of Registrable Securities covered by such Registration Statement
at any time when a Prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the Prospectus included in such Registration Statement or any offering memorandum or other
offering document includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and
promptly prepare a supplement or amendment to such Prospectus or file any other required document so that, as thereafter delivered to the purchasers of such Registrable Securities, such Prospectus will not contain an untrue statement of material
fact or omit to state any fact necessary to make the statements therein not misleading; 
 (k) permit any Holder of Registrable Securities
covered by such Registration Statement, which Holder in its reasonable judgment could reasonably be deemed to be an underwriter with respect to the Underwritten Offering pursuant to which such Registrable Securities are being offered, or to be a
controlling Person of the Company, to reasonably participate in the preparation of such Registration Statement and to require the insertion therein of information to the extent concerning such Holder, furnished to the Company in writing, which in
the reasonable judgment of such Holder and its counsel should be included; 
 (l) in connection with any Underwritten Offering, use all
reasonable efforts to obtain an opinion or opinions addressed to the underwriter or underwriters in customary form and scope from counsel for the Company; 

(m) upon reasonable notice and during normal business hours, subject to the Company receiving customary confidentiality undertakings or
agreements from any Holder of Registrable Securities covered by such Registration Statement or other person obtaining access to Company records, documents, properties or other information pursuant to this subsection (m), make available for
inspection by a representative of such Holder and any underwriter participating in any disposition of such Registrable Securities and any attorneys or accountants retained by any such Holder or underwriter, relevant financial and other records,
pertinent corporate documents and properties of the Company, and use all reasonable efforts to cause the officers, directors and employees of the Company to supply all information reasonably requested by any such representative, underwriter,
attorneys or accountants in connection with the Registration Statement; 
 (n) with respect to one (1) Required Registration which
includes Registrable Securities the market value of which is at least forty million United States dollars ($40,000,000), participate, to the extent requested by the managing underwriter, in efforts extending for no more than three (3) days
scheduled by such managing underwriter and reasonably acceptable to the Company’s senior management, to sell the Registrable Securities being offered pursuant to such Required Registration (including participating during such period in
customary “roadshow” meetings with prospective investors); 
 (o) use all reasonable efforts to comply with all applicable rules
and regulations of the SEC relating to such registration and make generally available to its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act, provided that the Company will be deemed to have
complied with this Section 2.8(o) with respect to such earning statements if it has satisfied the provisions of Rule 158; 

  
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 (p) if requested by the managing underwriter or any selling Holder, promptly incorporate in a
prospectus supplement or post-effective amendment such information as the managing underwriter or any selling Holder reasonably requests to be included therein, with respect to the Registrable Securities being sold by such selling Holder, including,
without limitation, the purchase price being paid therefor by the underwriters and with respect to any other terms of the Underwritten Offering of Registrable Securities to be sold in such offering, and promptly make all required filings of such
prospectus supplement or post-effective amendment; 
 (q) cause the Registrable Securities covered by such Registration Statement to be
listed on each securities exchange, if any, on which equity securities issued by the Company are then listed; and 
 (r) reasonably
cooperate with each selling Holder and each underwriter participating in the disposition of such Registrable Securities and their respective counsel in connection with filings required to be made with the Financial Industry Regulatory Authority,
Inc., if any. 
 2.9 Furnish Information. It shall be a condition precedent to the obligations of the Company to take any action
pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself and the Registrable Securities held by it as shall be reasonably
necessary to effect the registration of such Holder’s Registrable Securities. 
 2.10 Expenses. Except as specifically provided
herein, all Registration Expenses shall be borne by the Company. All Selling Expenses incurred in connection with any registration hereunder shall be borne by the Holders of Registrable Securities covered by a Registration Statement, pro rata on the
basis of the number of Registrable Securities registered on their behalf in such Registration Statement. 
 2.11 Indemnification. In
the event any Registrable Securities are included in a Registration Statement under this Agreement: 
 (a) The Company shall indemnify and
hold harmless each Holder including Registrable Securities in any such Registration Statement, any underwriter (as defined in the Securities Act) for such Holder and each Person, if any, who controls such Holder or underwriter within the meaning of
Section 15 of the Securities Act or Section 20 of Exchange Act and the officers, directors, owners, agents and employees of such controlling Persons, against any and all losses, claims, damages or liabilities (joint or several) to which
they may become subject under any securities Laws including, without limitation, the Securities Act, the Exchange Act, or any other statute or common law of the United States or any other country or political subdivision thereof, or otherwise,
including the amount paid in settlement of any litigation commenced or threatened (including any amounts paid pursuant to or in settlement of claims made under the indemnification or contribution provisions of any underwriting or similar agreement
entered into by such Holder in connection with any offering or sale of securities covered by this Agreement), 

  
 - 15 - 

 
and shall promptly reimburse them, as and when incurred, for any legal or other expenses incurred by them in connection with investigating any claims and defending any actions, insofar as any
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (each, a “Violation”): (i) any untrue statement or
alleged untrue statement of a material fact contained in or incorporated by reference into such Registration Statement, including any preliminary prospectus or final prospectus contained therein or any free writing prospectus or any amendments or
supplements thereto, or in any offering memorandum or other offering document relating to the offering and sale of such securities, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading or (iii) any violation or alleged violation by the Company (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities Law, or any rule or regulation
promulgated under any state securities Law; provided however, the Company shall not be liable in any such case for any such loss, claim, damage, liability or action to the extent that it (A) arises out of or is based upon a Violation
which occurs solely in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by such Holder; or (B) is caused by such Holder’s disposition of Registrable Securities during
any period during which such Holder is obligated to discontinue any disposition of Registrable Securities as a result of any stop order suspending the effectiveness of any registration statement or prospectus with respect to Registrable Securities
of which such Holder has received written notice. The Company shall pay, as incurred, any legal or other expenses reasonably incurred by any Person intended to be indemnified pursuant to this Section 2.11(a), in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 2.11(a) shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without consent of the Company, which consent shall not be unreasonably withheld. 
 (b)
Each Holder including Registrable Securities in a registration statement shall indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each Person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and the officers, directors, owners, agents and employees of such controlling Persons, any underwriter, any other Holder selling securities in
such registration statement and any controlling Person of any such underwriter or other Holder, against any losses, claims, damages or liabilities (joint or several) to which any of the foregoing Persons may become subject, under liabilities (or
actions in respect thereto) which arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation: (i) arises out of or is based upon a Violation which occurs solely in reliance upon and in
conformity with written information furnished expressly for use in connection with such registration by such Holder; or (ii) is caused by such Holder’s disposition of Registrable Securities during any period during which such Holder is
obligated to discontinue any disposition of Registrable Securities as a result of any stop order suspending the effectiveness of any registration statement or prospectus with respect to Registrable Securities of which such Holder has received
written notice. Each such Holder shall pay, as incurred, any legal or other expenses reasonably incurred by any Person intended to be indemnified pursuant to this Section 2.11(b), in connection with investigating or defending any such loss,
claim, damage, liability or action; provided however, that the indemnity agreement contained in this Section 2.11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is
effected without consent of the Holder, which consent shall not be unreasonably withheld. 

  
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 (c) Promptly after receipt by an indemnified party under this Section 2.11 of notice of the
commencement of any action (including any action by a Governmental Authority), such indemnified party shall, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.11, deliver to the indemnifying party a
written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain
its own counsel, with the reasonable fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if
prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 2.11, but the omission so to deliver written notice to the indemnifying party shall not relieve
it of any liability that it may have to any indemnified party otherwise than under this Section 2.11. 
 (d) In order to provide for
just and equitable contribution to joint liability in any case in which a claim for indemnification is made pursuant to this Section 2.11 but it is judicially determined (by the entry of a final judgment or decree by a court of competent
jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 2.11 provided for indemnification in such case,
the Company and each Holder of Registrable Securities shall contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in proportion to the relative fault of the Company, on the
one hand, and such Holder, severally, on the other hand; provided, however, that in any such case, no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation; provided further, however, that in no event shall any contribution under this Section 2.11(d) on the part of any Holder exceed the net proceeds
received by such Holder from the sale of Registrable Securities giving rise to such contribution obligation, except in the case of willful misconduct or fraud by such Holder. 

(e) The obligations of the Company and the Holders under this Section 2.11 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Agreement and otherwise. 

  
 - 17 - 

 2.12 SEC Reports. With a view to making available to the Holders the benefits of Rule 144
under the Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell Registrable Securities of the Company to the public without registration or pursuant to a registration on Form S-3, for so long as any
Holder owns Purchased Shares, the Company agrees to: 
 (a) make and keep available adequate current public information, as those terms are
understood and defined in SEC Rule 144; and 
 (b) furnish to any Holder, forthwith upon request (i) a written statement by the
Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC (exclusive of Rule 144A) which permits the selling of any Purchased Shares without registration or pursuant to Form S-3. 

2.13 Assignment of Registration Rights. The rights to cause the Company to register any Registrable Securities pursuant to this
Agreement may be assigned in whole or in part (but only with all restrictions and obligations set forth in this Agreement) by a Holder to a Permitted Transferee which acquires at least 1,000,000 Registrable Securities (subject to adjustment in the
event of any stock split, stock dividend, share exchange, merger, consolidation or similar recapitalization) from such Holder; provided, however, (a) such Holder shall, within five (5) days prior to such transfer, furnish to
the Company written notice of the name and address of such Permitted Transferee, details of its status as a Permitted Transferee and details of the Registrable Securities with respect to which such registration rights are being assigned,
(b) the Permitted Transferee, prior to or simultaneously with such transfer or assignment, shall agree in writing to be subject to and bound by all restrictions and obligations set forth in this Agreement, (c) the Investor shall continue
to be bound by all restrictions and obligations set forth in this Agreement and (d) such transfer or assignment shall be effective only if immediately following such transfer or assignment the further disposition of such Registrable Securities
by the Permitted Transferee is restricted under the Securities Act and other applicable securities Law. 
 3. Restrictions on Beneficial
Ownership. 
 3.1 Standstill. During the Standstill Term neither the Investor nor any of its Affiliates (collectively, the
“Standstill Parties”) shall (and the Investor shall cause its Affiliates not to), except as expressly approved or invited in writing by the Company: 

(a) directly or indirectly, acquire beneficial ownership of Shares of Then Outstanding Common Stock and/or Common Stock Equivalents, or make
a tender, exchange or other offer to acquire Shares of Then Outstanding Common Stock and/or Common Stock Equivalents; provided, however, that notwithstanding the provisions of this Section 3.1(a), if the number of shares
constituting Shares of Then Outstanding Common Stock is reduced or if the aggregate ownership of the Standstill Parties is increased as a result of (i) the participation in any offering by the Company of any securities offered pro-rata to all
stockholders of the Company or (ii) a repurchase by the Company of Shares of Then Outstanding Common Stock, stock split, stock dividend or a recapitalization of the Company, the Standstill Parties shall not be required to dispose of any of
their holdings of Shares of Then Outstanding Common Stock even though such action resulted in the Standstill Parties’ beneficial ownership increasing; 

(b) directly or indirectly, seek to have called any meeting of the stockholders of the Company, propose or nominate for election to the
Company’s Board of Directors any person whose nomination has not been approved by a majority of the Company’s Board of Directors or cause to be voted in favor of such person for election to the Company’s Board of Directors any Shares
of Then Outstanding Common Stock; 

  
 - 18 - 

 (c) directly or indirectly, solicit proxies or consents or become a participant in a
solicitation (as such terms are defined in Regulation 14A under the Exchange Act) in opposition to the recommendation of a majority of the Company’s Board of Directors with respect to any matter, or seek to advise or influence any Person, with
respect to voting of any Shares of Then Outstanding Common Stock of the Company; 
 (d) deposit any Shares of Then Outstanding Common Stock
in a voting trust or subject any Shares of Then Outstanding Common Stock to any arrangement or agreement with respect to the voting of such Shares of Then Outstanding Common Stock; 

(e) publicly propose (i) any merger, consolidation, business combination, tender or exchange offer, purchase of the Company’s
assets or businesses, or similar transaction involving the Company or (ii) any recapitalization, restructuring, liquidation or other extraordinary transaction with respect to the Company; 

(f) act in concert with any Third Party to take any action in clauses (a) through (e) above, or form, join or in any way
participate in a “partnership, limited partnership, syndicate, or other group” within the meaning of Section 13(d)(3) of the Exchange Act; or 

(g) enter into discussions, negotiations, arrangements or agreements with any Person relating to the foregoing actions referred to in
(a) through (e) above; provided, however, that (A) nothing in the foregoing clause (b) shall prohibit the Investor from proposing to the Company’s Nominating and Corporate Governance Committee (and not pursuant
to the advance notice provisions set forth in the Company’s bylaws), in a confidential, nonpublic manner, potential director candidates for consideration by the Company’s Nominating and Corporate Governance Committee, which candidates the
Investor believes would be in the best interest of the Company and its stockholders; and (B) nothing contained in this Section 3.1 prohibits the Investor or its Affiliates from acquiring a company or business that owns Shares of Then
Outstanding Common Stock and/or Common Stock Equivalents provided that any such securities of the Company so acquired will be subject to the provisions of this Section 3. 

4. Restrictions on Dispositions. 

4.1 Lock-Up. During the Lock-Up Term, without the prior approval of the Company, the Investor shall not, and shall cause its Affiliates
not to, Dispose of (x) any of the Purchased Shares, together with any shares of Common Stock issued in respect thereof as a result of any stock split, stock dividend, share exchange, merger, consolidation or similar recapitalization, and
(y) any Common Stock issued as (or issuable upon the exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange or in replacement of, the shares of Common Stock described
in clause (x) of this sentence (collectively, the “Lock-Up Securities”); provided, however, that the foregoing shall not prohibit the Investor from (A) transferring Lock-Up Securities to a Permitted
Transferee or (B) Disposing of any Lock-Up Securities in order to reduce the beneficial ownership of the Standstill Parties to 19.9%, or such lesser percentage as advised in good faith and in writing by the Investor’s

  
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certified public accountants that would be necessary pursuant to applicable accounting rules and guidelines so as to not require the Investor to include in its financial statements its portion of
the Company’s financial results, of the Shares of Then Outstanding Common Stock. 
 4.2 Certain Tender Offers. Notwithstanding
any other provision of this Section 4, this Section 4 shall not prohibit or restrict any Disposition of Shares of Then Outstanding Common Stock and/or Common Stock Equivalents by the Standstill Parties into (a) a tender offer by a
Third Party which is not opposed by the Company’s Board of Directors (but only after the Company’s filing of a Schedule 14D-9, or any amendment thereto, with the SEC disclosing the recommendation of the Company’s Board of Directors
with respect to such tender offer) or (b) an issuer tender offer by the Company. 
 5. Voting Agreement. 

5.1 Voting of Securities. During the Voting Agreement Term, other than as permitted by Section 5.2 with respect to Extraordinary
Matters, in any vote or action by written consent of the stockholders of the Company (including, without limitation, with respect to the election of directors), the Investor shall, and shall cause any Permitted Transferees to, vote or execute a
written consent with respect to the Purchased Shares, in the sole discretion of the Investor, either (a) in accordance with the recommendation of the Company’s Board of Directors or (b) in the case of a meeting of stockholders, if the
Investor or a Permitted Transferee has delivered written notice to the Company at any time prior to the vote on any given matter (but in any event not less than five (5) Business Days prior to such vote), setting forth its intent to vote
pursuant to this clause (b), in the same proportion as the votes cast by all other holders of all classes of voting securities of the Company (as estimated by the inspector of election immediately prior to the closing of the polls with respect to
the vote on any given matter, subject to adjustment for the inspector of election’s final tabulation of votes cast). In the event that the Investor or a Permitted Transferee does not deliver timely written notice to the Company as provided in
Section 5.1(b), such Person shall be deemed to have elected to vote the Purchased Shares of the Company as to which it is entitled to vote as provided in clause (a) above. In furtherance of this Section 5.1, the Investor hereby
irrevocably appoints the Company and any individuals designated by the Company (such designated individuals to be limited to the Chairman, Chief Executive Officer, Chief Financial Officer or Secretary of the Company), and each of them individually,
as the attorneys, agents and proxies, with full power of substitution and re-substitution in each of them, for the Investor, and in the name, place and stead of the Investor, to vote (or cause to be voted) in such manner as set forth in this
Section 5.1 (but in any case, (i) in accordance with any written instruction from the Investor, properly delivered under this Section 5.1, to vote as contemplated by clause (b) above, and (ii) excluding any matter that is an
Extraordinary Matter described in Section 5.2) with respect to the Purchased Shares to which the Investor is or may be entitled to vote at any meeting of the Company held after the date hereof, whether annual or special and whether or not an
adjourned meeting (the “Irrevocable Proxy”). This Irrevocable Proxy is coupled with an interest, shall be irrevocable and binding on any successor in interest of the Investor and shall not be terminated by operation of law upon the
occurrence of any event. This Irrevocable Proxy shall operate to revoke and render void any prior proxy as to voting securities heretofore granted by the Investor which is inconsistent herewith. Notwithstanding the foregoing, the Irrevocable Proxy
shall be effective if, at any annual or special meeting of the stockholders of the Company and at any adjournments or postponements of any such meetings, the Investor (A) fails to appear or 

  
 - 20 - 

 
otherwise fails to cause its voting securities of the Company to be counted as present for purposes of calculating a quorum, or (B) fails to vote such voting securities in accordance with
this Section 5.1, in each case at least two (2) Business Days prior to the date of such stockholders’ meeting. The Irrevocable Proxy shall terminate upon the earlier of the expiration or termination of the Voting Agreement Term. The
Investor shall cause any Permitted Transferee to promptly execute and deliver to the Company an irrevocable proxy, substantially in the form of Exhibit A attached hereto, and irrevocably appoint the Company and any individuals designated by
the Company, and each of them individually, with full power of substitution and resubstitution, as its attorney, agent and proxy to vote (or cause to be voted) such Purchased Shares of the Company as to which such Permitted Transferee is entitled to
vote, in such manner as each such attorney, agent and proxy or his substitute shall in its, his or her sole discretion deem appropriate or desirable with respect to the matters set forth in this Section 5.1 (the “Permitted Transferee
Irrevocable Proxy”). The Investor acknowledges, and shall cause any Permitted Transferees to acknowledge, that any such proxy executed and delivered shall be coupled with an interest, shall constitute, among other things, an inducement for
the Company to enter into this Agreement, shall be irrevocable and binding on any successor in interest of such Permitted Transferee and shall not be terminated by operation of Law upon the occurrence of any event. Such proxy shall operate to revoke
and render void any prior proxy as to any voting securities of the Company heretofore granted by such Permitted Transferee, to the extent it is inconsistent herewith. The Investor acknowledges and agrees that it shall be a condition to any proposed
transfer of voting securities of the Company by the Investor to such Permitted Transferee that such Permitted Transferee execute and deliver to the Company a Permitted Transferee Irrevocable Proxy, and that any purported transfer shall be void and
of no force or effect if such Permitted Transferee Irrevocable Proxy is not so executed and delivered at the closing of such transfer. Such proxy shall terminate upon the earlier of the expiration or termination of the Voting Agreement Term. The
Investor acknowledges and agrees that it shall be a condition to any proposed transfer of voting securities of the Company by the Investor to any Permitted Transferee during the Voting Agreement Term that such Permitted Transferee shall agree in
writing to be subject to and bound by all restrictions and obligations set forth in this Section 5.1. 
 In the event the
Company’s stockholders are permitted to act by written consent, the Company and the Investor shall each negotiate in good faith with the other provisions as consistent as possible with the foregoing to govern the voting of the Investor’s
and its Permitted Transferees’ Shares of Then Outstanding Common Stock as closely as practicable to the foregoing. 
 5.2 Certain
Extraordinary Matters. The Investor and its Permitted Transferees may vote, or execute a written consent with respect to, any or all of the voting securities of the Company as to which they are entitled to vote or execute a written consent, as
they may determine in their sole discretion, with respect to the following matters (each such matter being an “Extraordinary Matter”): 

(a) any transaction which would result in a Change of Control; 

(b) any issuance of Common Stock presented to stockholders for approval (which for avoidance of doubt shall not include the approval of any
stock option, employee stock purchase or similar equity plan, or any amendment thereto, whether or not for the purpose of establishing or increasing the number of shares of Common Stock that may be awarded or sold thereunder); and 

(c) any liquidation or dissolution of the Company. 

  
 - 21 - 

 5.3 Quorum. In furtherance of Section 5.1, the Investor shall be, and shall cause
each of its Permitted Transferees to be, present in person or represented by proxy at all meetings of stockholders to the extent necessary so that all voting securities of the Company as to which they are entitled to vote shall be counted as present
for the purpose of determining the presence of a quorum at such meeting. 
 6. Termination of Certain Rights and Obligations. 

6.1 Termination of Registration Rights Term. Except for Section 2.11, which shall survive until the expiration of any applicable
statutes of limitation, Section 2 shall terminate automatically and have no further force or effect upon the earliest to occur of: 

(a) the seventh (7th) anniversary of the expiration of the Lock-Up Term; 

(b) the date on which the Common Stock ceases to be registered pursuant to Section 12 of the Exchange Act; and 

(c) a liquidation or dissolution of the Company. 

6.2 Termination of Standstill Term. Section 3 shall terminate and have no further force or effect, upon the earliest to occur of:

 (a) the date [**] months after of the Closing Date; 

(b) provided that none of the Standstill Parties has materially violated Section 3.1(d) or (f) with respect to any other Person or
group (an “Offeror”) referred to in this Section 6.2, the date on which an Offeror publicly announces a tender, exchange or other offer for the Company’s Common Stock that, if consummated, would result in a Change of
Control of the Company; 
 (c) the date that the Company enters into a letter of intent relating to a Change of Control of the Company,
announces its intent to do so or announces that it is pursuing a transaction that would result in a Change of Control of the Company; 

(d) the date on which the Common Stock ceases to be registered pursuant to Section 12 of the Exchange Act; and 

(e) a liquidation or dissolution of the Company; 

provided, however, that if Section 3 terminates due to clauses (b) or (c) above and such agreement is abandoned and no other
similar transaction has been announced and not abandoned or terminated within ninety (90) days thereafter, the restrictions contained in Section 3 shall again be applicable until otherwise terminated pursuant to this Section 6.2. 

  
 - 22 - 

 6.3 Termination of Lock-Up Term. Section 4 shall terminate and have no further force
or effect upon the earliest to occur of: 
 (a) the date [**] months after of the Closing Date; 

(b) the expiration or earlier valid termination of the Collaboration Agreement; 

(c) the consummation by an Offeror of a Change of Control of the Company, which, in the case of a tender offer, shall be deemed to occur upon
the commencement of a tender offer for all outstanding shares of Common Stock; 
 (d) the date on which the Investor and any Permitted
Transferees together beneficially own less than five percent (5%) of the Shares of Then Outstanding Common Stock; 
 (e) a liquidation
or dissolution of the Company; and 
 (f) the date on which the Common Stock ceases to be registered pursuant to Section 12 of the
Exchange Act. 
 6.4 Termination of Voting Agreement Term. Section 5 shall terminate and have no further force or effect upon
the earliest to occur of: 
 (a) the date [**] months after the Closing Date; 

(b) the expiration or earlier valid termination of the Collaboration Agreement; 

(c) the consummation by an Offeror of a Change of Control of the Company, which, in the case of a tender offer, shall be deemed to occur upon
the commencement of a tender offer for all outstanding shares of Common Stock; 
 (d) the date on which the Investor and any Permitted
Transferees together beneficially own less than five percent (5%) of the Shares of Then Outstanding Common Stock; 
 (e) a liquidation
or dissolution of the Company; and 
 (f) the date on which the Common Stock ceases to be registered pursuant to Section 12 of the
Exchange Act. 
 6.5 Effect of Termination. No termination pursuant to any of Sections 6.1, 6.2, 6.3 or 6.4 shall relieve any of the
parties (or the Permitted Transferee, if any) for liability for breach of or default under any of their respective obligations or restrictions under any terminated provision of this Agreement, which breach or default arose out of events or
circumstances occurring or existing prior to the date of such termination. 

  
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 7. Miscellaneous. 

7.1 Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the Laws of the
State of Delaware, without regard to the conflict of laws principles thereof that would require the application of the Law of any other jurisdiction. Any action brought, arising out of, or relating to this Agreement shall be brought in the Court of
Chancery of the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of said Court in respect of any claim relating to the validity, interpretation and enforcement of this Agreement, and hereby waives, and agrees
not to assert, as a defense in any action, suit or proceeding in which any such claim is made that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in such courts, or that the venue thereof
may not be appropriate or that this agreement may not be enforced in or by such courts. The parties hereby consent to and grant the Court of Chancery of the State of Delaware jurisdiction over such parties and over the subject matter of any such
claim and agree that mailing of process or other papers in connection with any such action, suit or proceeding in the manner provided in Section 7.3 or in such other manner as may be permitted by law, shall be valid and sufficient thereof. 

7.2 Waiver. Waiver by a party of a breach hereunder by another party shall not be construed as a waiver of any subsequent breach of the
same or any other provision. No delay or omission by a party in exercising or availing itself of any right, power or privilege hereunder shall preclude the later exercise of any such right, power or privilege by such party. No waiver shall be
effective unless made in writing with specific reference to the relevant provision(s) of this Agreement and signed by a duly authorized representative of the party granting the waiver. 

7.3 Notices. All notices, instructions and other communications hereunder or in connection herewith shall be in writing, shall be sent
to the address of the relevant party set forth on Exhibit A attached hereto and shall be (a) delivered personally, (b) sent by registered or certified mail, return receipt requested, postage prepaid, (c) sent via a reputable
nationwide overnight courier service or (d) sent by facsimile transmission or electronic mail, with a confirmation copy to be sent by registered or certified mail, return receipt requested, postage prepaid. Any such notice, instruction or
communication shall be deemed to have been delivered upon receipt if delivered by hand, three (3) Business Days after it is sent by registered or certified mail, return receipt requested, postage prepaid, one (1) Business Day after it is
sent via a reputable nationwide overnight courier service or when transmitted with electronic confirmation of receipt, if transmitted by facsimile or electronic mail (if such transmission is made during regular business hours of the recipient on a
Business Day; or otherwise, on the next Business Day following such transmission). Any party may change its address by giving notice to the other parties in the manner provided above. 

7.4 Entire Agreement. This Agreement, the Purchase Agreement and the Collaboration Agreement contain the entire agreement among the
parties with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous arrangements or understandings, whether written or oral, with respect hereto and thereto. 

  
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 7.5 Amendments. No provision in this Agreement shall be supplemented, deleted or amended
except in a writing executed by an authorized representative of each of the parties hereto. 
 7.6 Headings; Nouns and Pronouns; Section
References. Headings in this Agreement are for convenience of reference only and shall not be considered in construing this Agreement. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine
or neuter forms, and the singular form of names and pronouns shall include the plural and vice-versa. References in this Agreement to a section or subsection shall be deemed to refer to a section or subsection of this Agreement unless otherwise
expressly stated. 
 7.7 Severability. If, under applicable Laws, any provision hereof is invalid or unenforceable, or otherwise
directly or indirectly affects the validity of any other material provision(s) of this Agreement in any jurisdiction (“Modified Clause”), then, it is mutually agreed that this Agreement shall endure and that the Modified Clause
shall be enforced in such jurisdiction to the maximum extent permitted under applicable Laws in such jurisdiction; provided that the parties shall consult and use all reasonable efforts to agree upon, and hereby consent to, any valid and enforceable
modification of this Agreement as may be necessary to avoid any unjust enrichment of either party and to match the intent of this Agreement as closely as possible, including the economic benefits and rights contemplated herein. 

7.8 Assignment. Except for an assignment of this Agreement by the Investor to a Permitted Transferee, neither this Agreement nor any
rights or duties of a party hereto may be assigned by such party, in whole or in part, without (a) the prior written consent of the Company in the case of any assignment by the Investor; or (b) the prior written consent of the Investor in
the case of an assignment by the Company. 
 7.9 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns. 
 7.10 Counterparts. This Agreement may be
executed in counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument. 
 7.11
Third Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable by any Third Party other than any Affiliate of the Investor. No Third Party with the exception of any Affiliate of the Investor
shall obtain any right under any provision of this Agreement or shall by reason of any such provision make any claim in respect of any debt, liability or obligation (or otherwise) against any party hereto. 

7.12 No Strict Construction. This Agreement has been prepared jointly and will not be construed against any party. 

7.13 Remedies. The rights, powers and remedies of the parties under this Agreement are cumulative and not exclusive of any other right,
power or remedy which such parties may have under any other agreement or Law. No single or partial assertion or exercise of any right, power or remedy of a party hereunder shall preclude any other or further assertion or exercise thereof. 

  
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 7.14 Specific Performance. The Company and the Investor hereby acknowledge and agree that
the rights of the parties hereunder are special, unique and of extraordinary character, and that if any party refuses or otherwise fails to act, or to cause its Affiliates to act, in accordance with the provisions of this Agreement, such refusal or
failure would result in irreparable injury to the Company or the Investor, as the case may be, the exact amount of which would be difficult to ascertain or estimate and the remedies at law for which would not be reasonable or adequate compensation.
Accordingly, if any party refuses or otherwise fails to act, or to cause its Affiliates to act, in accordance with the provisions of this Agreement, then, in addition to any other remedy which may be available to any damaged party at law or in
equity, such damaged party will be entitled to seek specific performance and injunctive relief, without posting bond or other security, and without the necessity of proving actual or threatened damages, which remedy such damaged party will be
entitled to seek in any court of competent jurisdiction. 
 7.15 No Conflicting Agreements. The Investor hereby represents and
warrants to the Company that neither it nor any of its Affiliates is, as of the date of this Agreement, a party to, and agrees that neither it nor any of its Affiliates shall, on or after the date of this Agreement, enter into any agreement that
conflicts with the rights granted to the Company in this Agreement. The Company hereby represents and warrants to each Holder that it is not, as of the date of this Agreement, a party to, and agrees that it shall not, on or after the date of this
Agreement, enter into any agreement or approve any amendment to its Organizational Documents (as defined in the Purchase Agreement) with respect to its securities that conflicts with the rights granted to the Holders in this Agreement. The Company
further represents and warrants that the rights granted to the Holders hereunder do not in any way conflict with the rights granted to any other holder of the Company’s securities under any other agreements. 

7.16 Use of Proceeds. The Company shall use the proceeds from the sale of the Shares for research and development and other working
capital purposes and shall not use such proceeds for the redemption of any shares of Common Stock or for the payment of any dividends on shares of Common Stock. 

7.17 No Publicity. The parties hereto agree that the provisions of Section [11.5] of the Collaboration Agreement shall be applicable to
the parties to this Agreement with respect to any public disclosures regarding the proposed transactions contemplated by the Purchase Agreement and the Collaboration Agreement or regarding the parties hereto or their Affiliates (it being understood
that the provisions of Section [11.5] of the Collaboration Agreement shall be read to apply to disclosures of information relating to this Agreement and the transactions contemplated hereby). 

7.18 Limitation of Liability. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY (OR THE OTHER PARTY’S AFFILIATES OR
SUBLICENSEES) IN CONNECTION WITH THIS AGREEMENT FOR LOST REVENUE, LOST PROFITS, LOST SAVINGS, LOSS OF USE, DAMAGE TO GOODWILL, OR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR INDIRECT DAMAGES UNDER ANY THEORY, INCLUDING CONTRACT,
NEGLIGENCE, OR STRICT LIABILITY, EVEN IF THAT PARTY HAS BEEN PLACED ON NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. 

  
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 (Signature Page Follows) 

  
 - 27 - 

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

					
	JOHNSON & JOHNSON INNOVATION-JJDC, INC.
		
	By:	 	 Marian T. Nakada

		 	Name:	 	Marian T. Nakada
		 	Title:	 	VP Venture Investments
	
	ACHILLION PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Milind Deshpande

	Name:	 	Milind Deshpande
	Title:	 	President & CEO

 [Signature Page to Investor Agreement] 

 EXHIBIT A 

FORM OF IRREVOCABLE PROXY 

In order to secure the performance of the duties of the undersigned pursuant to Section 5.1 of the Investor Agreement, dated as of
May 19, 2015 (the “Agreement”), by and between Johnson & Johnson Innovation-JJDC, Inc. and Achillion Pharmaceuticals, Inc. (the “Company”), the undersigned hereby irrevocably appoints the Company and any
individual designated by the Company, and each of them individually, as the attorneys, agents and proxies, with full power of substitution and resubstitution in each of them, for the undersigned, and in the name, place and stead of the undersigned,
to vote (or cause to be voted) in such manner as set forth in Section 5.1 of the Agreement (but in any case, (i) in accordance with any written instruction from the undersigned, properly delivered under Section 5.1 of the Agreement,
to vote as contemplated by Section 5.1(b) of the Agreement and (ii) excluding any matter that is an Extraordinary Matter described in Section 5.2) with respect to all Purchased Shares, which the undersigned is or may be entitled to
vote at any meeting of the Company held after the date hereof, whether annual or special and whether or not an adjourned meeting. This proxy is coupled with an interest, shall be irrevocable and binding on any successor in interest of the
undersigned and shall not be terminated by operation of law upon the occurrence of any event. This proxy shall operate to revoke and render void any prior proxy as to voting securities heretofore granted by the undersigned which is inconsistent
herewith. Notwithstanding the foregoing, this irrevocable proxy shall be effective if, at any annual or special meeting of the stockholders of the Company (or any consent in lieu thereof) and at any adjournments or postponements of any such
meetings, the undersigned (A) fails to appear or otherwise fails to cause its voting securities of the Company to be counted as present for purposes of calculating a quorum, or (B) fails to vote such voting securities in accordance with
Section 5.1 of the Agreement, in each case at least two (2) Business Days prior to the date of such stockholders’ meeting. This proxy shall terminate upon the earlier of the expiration or termination of the Voting Agreement Term.

  

			
	JOHNSON & JOHNSON INNOVATION-JJDC, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-1 

 EXHIBIT B 

NOTICES 
  

	(a)	If to the Investor: 

 Johnson & Johnson Innovation-JJDC, Inc. 

410 George Street 
 New Brunswick,
NJ 08901 
 Attention: General Manager 

with a copy to: 

Johnson & Johnson Law Department 

One Johnson & Johnson Plaza 

New Brunswick, NJ 08534 

Attention: General Counsel 
  

	(b)	If to the Company: 

 Achillion Pharmaceuticals, Inc. 

300 George Street 
 New Haven, CT
06511 
 Attention: CEO 
 with a
copy to: 
 Wilmer Cutler Pickering Hale and Dorr LLP 

60 State Street 
 Boston, MA 02109

 Attention: Steven D. Singer 

  
 B-1

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