Document:

EX-10.3

 Exhibit 10.3 
 CONFIDENTIAL TREATMENT REQUESTED UNDER RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

[*****] INDICATES OMITTED MATERIAL THAT IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH THE COMMISSION. THE OMITTED MATERIAL HAS
BEEN FILED SEPARATELY WITH THE COMMISSION. 
 AMENDED 

RESEARCH AND LICENSE AGREEMENT 
 Execution Copy 
 This AMENDED RESEARCH AND LICENSE AGREEMENT (the
“Agreement”) is made between Prosensa Holding B.V., a company organized under the laws of The Netherlands, having its principal place of business at Leiden at Wassenaarseweg 72 (2333 AL) Leiden (“Prosensa”) and Academisch
Ziekenhuis Leiden, acting under the name of Leiden University Medical Center, organized under the laws of The Netherlands, having its principal place of business at Albinusdreef 2, 2333 ZA Leiden (“LUMC”); 

WHEREAS 
 A The Parties have entered into
a research and license agreement dated September 1, 2003, aimed at the (further) development and commercialization of a treatment against Duchenne Muscular Dystrophy, based on LUMC’s and Prosensa’s intellectual property (the
“Original Agreement”); 
 B Prosensa wishes to extend and amend the license granted by LUMC to Prosensa under the Original Agreement
to (amongst other things) not limit its scope to a certain field and include Products useful for other human indications and Products for non-human applications; 
 C LUMC is willing to extend the license granted by LUMC to Prosensa under the Original Agreement under the terms and conditions set forth herein; 

  
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 D In view of the above, the Parties wish to amend the Original Agreement in its entirety as follows with
effect as from March 1, 2008 (the “Effective Amendment Date”): 
 ARTICLE 1. DEFINITIONS 

For purposes of this Agreement, the terms defined in this Article 1 shall have the meanings specified below. Certain terms are defined in other sections
of this Agreement. 
  

	1.1	***** 

  

	1.2	Affiliate shall mean any corporation or other entity which controls, is controlled by, or is under common control with a Party. A corporation or other entity
shall be regarded as in control of another corporation or entity if it owns or directly or indirectly controls more than fifty percent (50%) of the voting stock or other ownership interest of the other corporation or entity, or if it possesses,
directly or indirectly, the power to direct or cause the direction of the management and policies of the corporation or other entity or the power to elect or appoint more than fifty percent (50%) of the members of the governing body of the
corporation or other entity. 

  

	1.3	Broad Claim shall mean a patent claim within the LUMC Patent Rights that covers the manufacture and/or sale of at least one Product in at least one of the
following subfields within Europe or the United States: down regulation or modulation function. 

  

	1.4	Collaborative Research Projects shall have the meaning assigned to it in Article 2.1 of this Agreement. 

 

	1.5	Effective Amendment Date shall mean March 1, 2008. 

  

	1.6	Existing Joint Patent Rights shall mean the 5 joint Patent Rights of LUMC and Prosensa as identified and named in Exhibit 2 to this Agreement.

  

	1.7	Future Joint Patent Rights shall mean joint Patent Rights of LUMC and Prosensa developed in the course of and arising out of one or more Collaborative Research
Projects and in the scope of the exon skipping methodology as described in the LUMC and Existing Joint Patent Rights. 

  

	1.8	Human Field shall mean therapeutic, diagnostic and preventive applications in a human disease or condition. 

 

	1.9	Initial Indication shall mean Duchenne Muscular Dystrophy, spinal muscular atrophy (SMA), bethlem myopathy, myotubular myopathy, limb-girdle muscular dystrophy
2A and 2B, Miyoshi myopathy and merosin deficient muscular dystrophy. 

  

	1.10	Joint Patent Rights shall mean the Existing Joint Patent Rights and the Future Joint Patent Rights. 

 

	1.11	LUMC Patent Rights shall mean the Patent Rights exclusively owned by LUMC and identified and named on Exhibit 1 hereto. 

 

	1.12	 LUMC Technology shall mean the Technology which is useful for the development, production and/or commercialization of the Products and which has
been discovered, made or 

  
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conceived solely by LUMC employees, agents or consultants in the research group of Prof. Van Ommen and have been shared by LUMC with Prosensa before the Effective Amendment Date and which is
described in Exhibit 3A hereto. 

  

	1.13	LUMC Tangible Technology shall mean the standard operation procedures and/or other information and/or materials described in Exhibit 3B hereto.

  

	1.14	Net Licensing Income shall, for the calculation of royalties under this Agreement, mean any and all income received by Prosensa or any of its Affiliates from a
sublicensee in consideration for the sublicensing of the LUMC Patent Rights and/or LUMC’s interest in the Joint Patent Rights, other than (i) equity investments in Prosensa or its Affiliates; (ii) amounts paid by such sublicensee
and/or subsidies/grants received for research and/or development work actually performed by Prosensa or its Affiliates in connection with such sublicense and (iii) running royalties on Net Sales (which are subject to pass through royalties set
forth in Section 6.4.2. hereof). 

  

	1.15	Net Sales shall mean, for each Product, the gross invoiced sales price billed by Prosensa or its Affiliates or (as to pass through royalties referred to in
Section 6.4.2.) a sublicensee to unrelated Third Parties who can set their sales price independently from Prosensa, its Affiliates or its sublicensees, therefore including distributors, less, to the extent such amounts are included in the gross
invoiced sales price, actual (a) trade quantity and cash discounts and rebates and retroactive price reductions or allowances actually allowed or granted from the billed amount, (b) freight, packaging and insurance costs, (c) taxes,
import duties, custom duties, etc. and (d) amounts repaid or credited. 

  

	1.16	Non Human Field shall mean all applications other than the Human Field. 

 

	1.17	Non Orphan Drug Indication shall mean a human disease or condition other than an Orphan Drug Indication or an Initial Indication 

 

	1.18	Original Agreement shall mean the Research and License Agreement between Prosensa and LUMC of September 1, 2003. 

 

	1.19	Orphan Drug Indication shall mean a human disease or condition that is not an Initial Indication and that is designated as a rare disease or condition under the
US FDA Orphan Drug Act or similar legislation or regulation in Europe. 

  

	1.20	Patent Rights shall mean any patents, patent applications, certificates of invention, or applications for certificates of invention, together with any
extensions, registrations, confirmations, reissues, divisionals, continuations or continuations in part, reexaminations or renewals that may be sought, filed or obtained and patent term extensions and supplementary protection certificates granted on
such patents. 

  

	1.21	Parties shall mean the parties to this Agreement. 

  

	1.22	Phase I study shall mean a human clinical trial utilizing a Product formulation and intended to demonstrate safety. 

  
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	1.23	Products shall mean any product that harbors the LUMC Technology or the manufacture, development, use, marketing and/or sale of which would infringe, on a
country by country basis, all or some of the Valid Claims of the LUMC Patents or Joint Patent Rights if no license would have been granted hereunder. 

  

	1.24	Prosensa Patent Rights shall mean those Patent Rights that exclusively owned by Prosensa, are, as of the Effective Amendment Date, used by LUMC pursuant to a
research license granted by Prosensa to LUMC and are identified and named on Exhibit 4 hereto. 

  

	1.25	Prosensa Technology shall mean the Technology that is exclusively owned by Prosensa, is as of the Effective Amendment Date, used by LUMC pursuant to a research
license granted by Prosensa to LUMC and is identified and named on Exhibit 4 hereto. 

  

	1.26	 Quarter shall mean a period of three calendar months commencing on 1st January, 1st April, 1st July and 1st October in each year during the term of this Agreement. 

 

	1.27	Regulatory Approvals shall mean all approvals from regulatory authorities in any country required lawfully to manufacture market and sell the Products in any
such country including, where applicable, grants of orphan drug status for the Products. 

  

	1.28	***** 

  

	1.29	Technology shall mean inventions, trade secrets, know-how, data and other intellectual property of any kind, excluding Patent Rights. 

 

	1.30	Territory shall mean the world. 

  

	1.31	Third Party shall mean any entity other than the Parties and their respective Affiliates. 

 

	1.32	Valid Patent Claim shall mean a claim of a valid patent application or an issued and unexpired patent within the LUMC Patent Rights and/or Joint Patent Rights,
whatever is the case, that has not been finally denied by a patent authority, has not been disclaimed or abandoned or withdrawn and has not been held unenforceable or invalid or permanently revoked by a decision of a court or other governmental
agency of competent jurisdiction, un-appealable or un-appealed within the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through reissue or written disclaimer or otherwise, including patent term extensions
and supplementary protection certificates granted on such patents. If there should be two or more decisions within the same country that are conflicting with respect to the invalidity of the same claim, the decision of the highest tribunal shall
thereafter control. However, should the tribunals be of equal authority, then the decision or decisions holding the claim valid shall prevail where the conflicting decisions are equal in number and the majority of decisions shall prevail where the
conflicting decisions are not equal in number 

  
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 ARTICLE 2. COLLABORATIVE RESEARCH PROJECTS 

 

	2.1	LUMC and Prosensa may decide to jointly conduct future bilateral collaborative research projects, all as to be further agreed in writing (“Collaborative Research
Projects”). Where such Collaborative Research Projects generate Future Joint Patent Rights, the license rights granted in Article 3 of the Agreement will be extended to cover such Future Joint Patent Rights. For the avoidance of doubt, any
joint research initiative involving Third Parties, falls out of the scope of this section. Any other terms and conditions of such Collaborative Research Projects, including the grant to LUMC of a royalty-free, non-exclusive, research license under
Prosensa’s intellectual property rights that might be required by LUMC to execute the activities assigned to it under such Collaborative Research Project, will be agreed in good faith on a per Collaborative Research Project basis
(notwithstanding the research license by Prosensa to LUMC referred to in Section 3.5 hereof). 

 ARTICLE 3. GRANTS AND
RESERVATION OF RIGHTS 
  

	3.1	Grant of rights on Patent Rights and LUMC Tangible Technology by LUMC to Prosensa. LUMC hereby grants to Prosensa an exclusive right and license under the LUMC
Patent Rights, LUMC’s interest in the Joint Patent Rights and the LUMC Tangible Technology without any limitation as to a field of application to develop, make, have made, use, offer for sale, sell, have sold, import and export the Products
within the Territory. Said license includes the right to grant sublicenses subject to Section 6.4 hereof. 

  

	3.2	Grant of rights on LUMC Technology other than LUMC Tangible Technology by LUMC to Prosensa. LUMC hereby grants to Prosensa a non-exclusive right and
license, with the right to sublicense (subject to Section 6.4 hereof), to use the LUMC Technology other than the LUMC Tangible Technology without any limitation as to a field of application to develop, make, have made, use, offer for sale,
sell, have sold, import and export the Products within the Territory. 

  

	3.3	Reservation of Rights. Notwithstanding the license granted under Section 3.1 and 3.2 hereof, LUMC at all times reserves the right to use the LUMC Patents,
LUMC’s rights in the Joint Patents, The LUMC Tangible Technology and the LUMC Technology (a) to perform or have performed research projects and (b) for educational purposes and (c) for all purposes that are not subject to this
Agreement, in which regard Prosensa acknowledges that it has received only those rights from LUMC that are granted by LUMC to it hereunder. 

  
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	3.4	Grant of rights by Prosensa to LUMC. Prosensa hereby grants to LUMC a non-exclusive, royalty free license under the Prosensa Patent Rights and the Prosensa
Technology for the sole purpose of enabling LUMC to perform internal, non commercial, research. 

  

	3.5	Joint Patent Rights. Without the prior written consent of the other Party, neither Party will be entitled to any other rights under the Joint Patent Rights than
those which have been mutually agreed on in this Agreement. 

  

	3.6	Right to data. Each Party shall own or continue to own at their discretion all data incorporated in the Patent Rights and/or the Technology owned solely by such
Party in accordance with this Agreement. The Parties shall jointly own all data incorporated in the Joint Patent Rights and (joint) Technology. 

  

	3.7	Transfer of data. As soon as practical, LUMC shall transfer to Prosensa all materials, know-how, data and underlying documents in LUMC’s possession
necessary to enable Prosensa to obtain in accordance with this Agreement Regulatory Approvals and to manufacture, market and sell the Products. 

  

	3.8	Annual Review. From March 2011 onwards an annual review will be conducted by Prosensa and LUMC. This review will be attended by a minimum of two and a maximum of
four representatives of each Prosensa and LUMC (in principle including G.J. van Ommen). Parties will use its best effort to provide for representatives with decision making authority to be present at the annual review. 

 

	 	3.8.1	In this review ***** will provide ***** in writing with a list of all ***** where ***** is ***** of the LUMC Patent Rights and/or the Joint Patent Rights.

  

	 	3.8.2	 If ***** recognizes an opportunity ***** of an ***** in a certain ***** that is not on the latest *****, whether by itself or by being approached by a
***** may submit such opportunity to ***** together with at least the following information: *****. ***** and ***** will in good faith discuss whether or not ***** is willing of ***** this ***** further (whether or not through *****). If *****
wishes to ***** the ***** or ***** for such ***** it shall submit to *****, within ***** from the day that in the discussions ***** indicated to be interested in *****, proof that it has initiated or recommenced ***** the LUMC Patent Rights and/or
Joint Patent Rights in such *****. If ***** notifies ***** in writing that it is not interested or does not provide such ***** in time, its ***** under this Agreement will be *****. If, however,

  
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***** can not show ***** by ***** in such ***** within ***** after such rights have been ***** will ***** an ***** within such *****. Such a ***** shall again be subject to all the terms and
conditions of this Agreement. 

  

	 	3.8.3	In the event a ***** wishes to obtain ***** under the LUMC Patent Rights and/or Joint Patents Rights for the development thereof, the following shall apply. ***** will
only be able not to enter into such good faith negotiations with ***** on a license, if the required license is within a ***** that is on the ***** or if ***** provides ***** in writing ***** within the ***** in which the ***** is interested within
***** of the request by ***** . If the ***** requested by ***** is not on the ***** and/or ***** does not timely submit abovementioned ***** is obliged to enter into a ***** agreement with ***** and ***** shall keep ***** informed.

  

	 	3.8.4	If ***** is approached by ***** with regard to an ***** will directly inform ***** hereof and refer ***** to ***** for further discussions. ***** shall not negotiate or
discuss directly with *****, subject to article 3.8.3 of this Agreement. 

  

	 	3.8.5	***** may also identify previous *****. If ***** chooses to ***** in this ***** and ***** has already developed ***** may (but is not obliged to) offer such *****. If
***** is willing to offer *****, the Parties will negotiate in good faith ***** arising from *****. 

 ARTICLE 4. DEVELOPMENT /
REGULATORY APPROVAL 
  

	4.1	General. Prosensa shall be responsible for (further) developing, distributing, marketing and selling the Products. 

 

	4.2	Responsibilities of Prosensa. Prosensa shall be responsible for: 

  

	 	(i)	further development of the Product towards obtaining Regulatory Approval; 

  

	 	(ii)	obtaining Regulatory Approval for the Products in all countries within the Territory where sale of the Products is commercially viable, such commercial viability to be
assessed at Prosensa’s absolute discretion. The Products shall be sold under trademarks selected by Prosensa. 

  

	4.3	Regulatory Licenses. Prosensa shall hold the licenses issued in respect of Regulatory Approval submissions made pursuant to this Agreement. Each Party shall have
an irrevocable right of access and reference, during the term of this Agreement, to such Regulatory Approval licenses for uses set forth in or consistent with this Agreement. 

  
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 ARTICLE 5. PRODUCTION 

 

	5.1	Process Development. Prosensa will use commercially reasonable and diligent efforts to (further) develop a process for the manufacture of the Products and to
scale up that process to levels sufficient for clinical and commercial supply, respectively. Prosensa may, if it so elects, subcontract with Third Parties for the execution of clinical trials and/or the manufacture of the Products.

 ARTICLE 6. CONSIDERATION 
  

	6.1	Initial Payments. 

  

	 	6.1.1	Upfront. Within 30 days after the signing of this Agreement, Prosensa shall pay to LUMC the following amounts: 

 

	 	a.	In partial consideration for the abandonment of the restrictions to the field, an amount of € 488.746,46 (four hundred eighty-eight thousand seven hundred and
forty-six euros and forty-six cents) being the total out-of-pocket-expenses incurred by LUMC from September 1, 2003 until the Effective Amendment Date pursuant to Sections 7.4.1 and 7.4.3 of the Original Agreement as demonstrated by LUMC in the
form of invoices from its external patent attorney(s); plus 

  

	 	b.	an amount of € 100,000 (one hundred thousand euro), being the milestone event set forth in Section 6.2(a) of the Original Agreement for the Initial
Indication, which milestone event is deemed to be achieved; plus 

  

	 	c.	An upfront signing fee of € 100,000 (one hundred thousand euro). 

  
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	 	6.1.2	Patent milestone payments. In further consideration for the abandonment of the restriction to the field and in addition to other amounts payable by Prosensa
under this Agreement, Prosensa shall pay to LUMC the following non-refundable, non-creditable amounts upon achievement of the following events: 

  

	 	a	An amount of ***** upon granting of the first claim on the parent patent application “induction of exon skipping in eukaryotic cells” with priority date
21 September 2000 in either Europe or the United States (regardless whether such a claim is a Broad Claim or a claim in the field of DMD only). 

  

	 	b	An amount of ***** on 31 December 2009 or, if earlier, upon the grant of the first Broad Claim on the parent patent application titled: “induction of exon
skipping in eukaryotic cells” with priority date 21 September 2000 in either Europe or the United States. 

  

	 	c	The payments mentioned above will not be affected by the outcome of a review as agreed in Section 3.8 hereof nor by the termination of this Agreement. Any payment
mentioned above will be immediately due and payable upon termination of the Agreement 

  

	6.2	Milestone Payments within Human Field 

  

	 	6.2.1	In further consideration of the rights granted by LUMC to Prosensa, Prosensa shall make the following non-refundable, non-creditable, milestone payments to LUMC:

 Milestone 1: Upon start of the first formal toxicity study with a
(potential) Product: 
  

			
	 Orphan Drug Indication
	  	Non-Orphan Drug Indication
	 *****
	  	*****

 Milestone 2: Within 30 days from the successful completion of the first Phase I study with
a (potential) Product. 
  

			
	 Orphan Drug Indication
	  	Non-Orphan Drug Indication
	 *****
	  	*****

 Milestone 3: Within 30 days from filing for Regulatory Approval at
either the US FDA or the European EMEA of a Product, whatever comes first, provided that at the date of filing, both the Product and the indication are covered by a Valid Patent Claim. 

 

					
	 Initial Indication
	  	Other Orphan Drug
Indications	 	Non-Orphan Drug
Indication
	 *****
	  	*****	 	*****

  
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 Milestone 4: Within 30 days of reaching cumulative Net Sales and Net
Licensing Income of ***** per Indication per Product, provided that at the date of reaching such cumulative income the Products that are generating the income are covered by a Valid Patent Claim.  

 

					
	 Initial Indication
	  	Other Orphan Drug
Indications	 	Non-Orphan Drug Indication
	 *****
	  	*****	 	*****

  

	 	6.2.2	Milestones only payable once. Regardless of how many Products will be developed per *****, the payment of the milestones shall only be payable once per *****
whereby the Initial Indication is one *****. 

  

	 	6.2.3	Milestone under Valid Claim of Existing Joint Patents Rights. In the event that upon the occurrence of milestone 3 or milestone 4 for a certain Product, other
than an Initial Indication Product, there is no Valid Claim of a LUMC Patent Right, but there is a Valid Claim of an Existing Joint Patent Right, the milestone payment due will be discounted by *****. 

 

	 	6.2.4	Milestones under Valid Claims of Future Joint Patents Rights. In the event that upon the occurrence of milestone 3 or milestone 4 for a certain Product there is
no Valid Claim of a LUMC Patent Right or an Existing Joint Patent Right, but there is a Valid Claim of a Future Joint Patent Right, the milestone payment due will be discounted ***** in such a Future Joint Patent Right (in accordance with
Section 6.6. of this Agreement). 

  

	 	6.2.5	Survival of Milestone Payments. Any payment mentioned above that has become due during the term of this Agreement will not be affected by the outcome of a review
as agreed in section 3.8 of this Agreement and will – if not yet paid – be immediately payable upon termination of the Agreement. 

  
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	6.3	Prosensa’s royalty obligations on Net Sales by Prosensa and its Affiliates in Human Field. 

 

	 	6.3.1	Running royalties on Net Sales. In further consideration of the rights granted by LUMC to Prosensa, Prosensa shall pay to LUMC a percentage royalty on Net Sales
generated by Prosensa and/or its Affiliates. The percentages of royalties to be paid on Net Sales generated by Prosensa and/or its Affiliates will be the following: 

 

							
	 Royalties on Net Sales made by Prosensa and Affiliates (on a country-by-country basis)
	  	 Initial
Indication
	  	 Orphan Drug
Indications
	  	 Non-Orphan
Drug
Indications

	On Net Sales of Products the sale or manufacture of which is covered by a Valid Claim of a LUMC Patent Right	  	*****	  	*****	  	*****
				
	On Net Sales of Products the sale or manufacture of which is not covered by at least one Valid Claim of the LUMC Patent Rights but is covered by at least one Valid Claim of an
Existing Joint Patent Right	  	*****	  	*****	  	*****
				
	On Net Sales of Products the sale or manufacture of which is not covered by a Valid Claim of an LUMC Patent Right or an Existing Joint Patent Right, but is covered by a Valid Claim
of a Future Joint Patent Right	  	*****	  	***** is applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is *****	  	***** is applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is *****
				
	On Net Sales of Products not covered by any Valid Claim of LUMC or Joint Patent Rights in the country of sale or manufacture of such Product	  	*****	  	*****	  	*****

  

	 	6.3.2	Option to reduce milestones / increase royalty for Non Orphan Drug Indication Products. Until filing for Regulatory Approval for a Product at either the US FDA
or the European EMEA whatever comes first (so before payment of Milestone 3), Prosensa may elect to reduce the milestone payments of an Non-Orphan Drug Indication to the amount of milestone payments of an Orphan Drug Indication as included in
article 6.2, provided that in such an event the royalty rates included in this article 6.3 on Net Sales of such Non Orphan Drug Indication Products will be (a) ***** in the event of Net Sales of Products covered by LUMC Patent Rights,
(b) ***** in the event of Net Sales of Products covered by Existing Joint Patent Rights and (c) ***** in the event of Net Sales of Products covered by Future Joint Patent Rights, to be discounted pro rata ownership percentage of Prosensa
in such Future Joint Patent Rights in accordance with ***** hereof. 

  

	 	6.3.3	Third Party royalty obligations. If Prosensa, in the reasonable exercise of its business judgment, determines after the Effective Amendment Date that it must
license Third Party Patent Rights in order to develop, make, have made, use, market and/or sell Products within the Territory, the royalty due to LUMC, “R” *****. 

  
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	6.4	Prosensa’s royalty obligations in the event of sublicensing in Human Field. Prosensa has the right to sublicense the LUMC Patent Rights or LUMC’s
interest in the Joint Patent Rights within the Human Field, provided the sub license(s) include exploitation obligations for the sub licensee(s) as well as (Net Sales) royalty provisions. 

 

	 	6.4.1.	Royalties on Net Licensing Income. In the event Prosensa chooses to sublicense, the percentages of royalties to be paid on Net Licensing Income generated by
Prosensa and/or its Affiliates will be the following: (remainder of page intentionally left blank) 

  
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	 Royalties on Net Licensing Income
	  	 Initial Indications
	  	 Orphan

Drug
Indications
	  	 Non-Orphan
Drug
Indications

	As long as there is a Valid Claim of a LUMC Patent Right	  	*****	  	*****	  	*****
				
	As long as there is a Valid Claim of an Existing Joint Patent Right, but no Valid Claim of a LUMC Patent Right	  	*****	  	*****	  	*****
				
	As long as there is a Valid Claim on a Future Joint Patent Right, but no Valid Claim of a LUMC Patent Right or Existing Joint Patent Right	  	 ***** on Net Licensing Income received prior to Regulatory Approval of the Product.

 
 ***** thereof on Net Licensing Income received after Regulatory Approval of the
Product
	  	***** are applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is respectively *****.	  	***** are applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is respectively *****.
				
	When there is no Valid Claim of a LUMC Patent Right or a Joint Patent Right but products do harbour (unpatented) LUMC Technology	  	 ***** on Net Licensing Income received prior to Regulatory Approval of the Product.

 
 ***** thereof on Net Licensing Income received after Regulatory Approval, for a
maximum of ***** after first commercial sale of that Product.
	  	 *****
 maximum duration of
***** after first commercial sale of that Product
	  	 *****
 maximum duration of
***** after first commercial sale of that Product

  
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	 	6.4.2.	Pass Through Royalties. In the event of sublicensing, Prosensa shall, in addition to the royalties on Net Licensing Income, pay a royalty on Net Sales generated
by the sublicensees as follows: 

  

							
	 Royalties on Net Sales made by sublicensees (“pass through royalties”)
	  	 Initial
Indication
	  	 Orphan

Drug
Indication
	  	 Non-Orphan
Drug
Indication

	On Net Sales of Products the sale or manufacture of which is covered by a Valid Claim of a LUMC Patent Right	  	*****	  	*****	  	*****
				
	On Net Sales of Products the sale or manufacture of which is not covered by at least one Valid Claim of the LUMC Patents Rights but is covered by at least one Valid Claim of an
Existing Joint Patent Right	  	*****	  	*****	  	*****
				
	On Net Sales of Products the sale or manufacture of which is not covered by a Valid Claim of an LUMC Patent Right or an Existing Joint Patent Right, but is covered by a Valid Claim
of a Future Joint Patent Right	  	***** is applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is *****	  	***** is applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is *****	  	***** is applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is *****
				
	On Net Sales of Products not covered by any Valid Claim of a LUMC Patent Right or Joint Patent Rights in the country of sale or manufacture of such Product	  	*****	  	*****	  	*****

  

	 	6.4.3.	Option to reduce milestone payments for Non Orphan Drug Indication Products. Until filing for Regulatory Approval for a Product at either the US FDA or the
European EMEA whatever comes first, (so before payment of Milestone 3), Prosensa may elect to reduce the milestone payments of an Non-Orphan Drug Indication to the amount of milestone payments of an Orphan Drug Indication as included in article 6.2,
provided that in such an event the royalty rates on Net Licensing Income for such Non Orphan Drug Indication Product on sublicenses will be increased to the royalty percentages as reflected in the table below. 

 

			
	 Royalties on Net Licensing Income
	  	 Non-Orphan Drug Indications when Orphan Drug
Indication
Milestones were paid

	As long as there is a Valid Claim of a LUMC Patent Right	  	*****
		
	As long as there is a Valid Claim of an Existing Joint Patent Right, but no Valid Claim on a LUMC Patent Right	  	*****
		
	As long as there is a Valid Claim on a Future Joint Patent Right, but no Valid Claim of a LUMC Patent Right or Existing Joint Patent Right	  	***** is applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is respectively *****.
		
	When there is no Valid Claim of a LUMC Patent Right or a Joint Patent Right but products do harbour (unpatented) LUMC Technology	  	***** maximum duration of ***** after first commercial sale

  
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	6.5	Non Human Field consideration 

  

	 	6.5.1.	Royalties on Net Sales. In further consideration of the rights granted by LUMC to Prosensa, upon signing of this Agreement, Prosensa shall make a non-refundable,
non-creditable payment of ***** to LUMC. In addition thereto, Prosensa shall pay to LUMC a ***** royalty on Net Sales generated by Prosensa and/or its Affiliates on Products in Non Human Fields to the extent the manufacture or sale thereof is
covered by a Valid Claim of the LUMC Patent Rights in such country. 

  

	 	6.5.2.	Royalties on Net Licensing Income. Prosensa shall pay to LUMC the following royalty percentages on Net Licensing Income generated by Prosensa and/or its
Affiliates on sublicenses in Non Human Fields: 

  

			
	 Royalties on Net Licensing Income made by Prosensa
and Affiliates
	  	 Non Human Fields

	As long as there is a Valid Claim of a LUMC Patent Right	  	*****
		
	As long as there is a Valid Claim of an Existing Joint Patent, but no Valid Claim of a LUMC Patent Right	  	*****
		
	As long as there is a Valid Claim of a Future Joint Patent Right, but no Valid Claim of a LUMC Patent Right or Existing Joint Patent Right	  	***** is applicable in the default situation of article *****. If the ownership percentages differ, the starting point for deductions is *****
		
	When there is no Valid Claim of a LUMC Patent or a Joint Patent Right but products do harbour (unpatented) LUMC Technology	  	 *****
 For a maximum of ***** after first commercial sale

  

	6.6	Ownership percentage of Future Joint Patent Rights. 

 In the event Prosensa and LUMC file a Future Joint Patent Right, the ownership percentages will be *****, unless , based on each party’s intellectual contribution to the invention a different
ownership percentage is justified. In that case Parties will in good faith agree on a different ownership percentage, that reflects each party’s intellectual contribution to the 

  
 Page 15 of 32

 
invention. If no consensus on ownership percentages is reached within 3 months after the PCT filing date of the Future Joint Patent Right, a ***** will be assumed for the calculation of the
milestone and royalty rates of this article 6. If consensus is reached on a different ownership percentage, the reduction in royalties will not be ***** but will be adjusted in correspondence with the relative ownership percentages. 

 

	6.7	Payment of royalties. All amounts due to LUMC under Section 6.3, Section 6.4 and Section 6.5 hereof (royalties) shall be computed on the basis of
Net Licensing Income and Net Sales in each Quarter, and the royalties due for Net Licensing Income and Net Sales in a Quarter shall be remitted to LUMC within thirty (30) days after the end of such Quarter, which payment shall be accompanied by
a summary of the Net Licensing Income and Net Sales in such Quarter. 

  

	6.8	Interest on late payments. Any payment to be made hereunder that is not made on or before the date such payment is due under this Agreement, shall bear interest
at the rate equal to the wettelijke rente as set by the Netherlands Ministry of Justice from time to time, the interest amount due to be calculated on the basis of the actual number of days payment is overdue divided by 365.

  

	6.9	Audit. LUMC shall at all times have the right to have its auditor or, at LUMC’s election, an external auditor (LUMC’s Auditor) review the calculation
of Net Sales Income and Net Licensing Income by Prosensa and by its Affiliates or sublicensees, to the extent relevant for LUMC to verify whether all royalties due to LUMC under this Agreement have been paid to LUMC. The costs of such audit shall be
borne by LUMC unless such audit reveals a difference between the amount due to LUMC and the amount actually paid to LUMC of more than seven percent (7%) in which event the costs of such audit shall be borne by Prosensa. For the avoidance of
doubt, such rights of LUMC shall not extend to review of the administration of sublicensees, provided Prosensa has the right to audit its sublicensees, at the request of LUMC’s Auditor, and LUMC’s Auditor shall have access to the results
of such an audit. 

  

	6.10	Withholding taxes. 

Prosensa shall withhold any taxes on such royalties as required by law and pay them to the proper tax authorities to the extent required
by applicable laws. Prosensa shall maintain official receipts of payment of any withholding taxes and forward these receipts to LUMC within 60 days. The Parties will exercise diligent efforts to ensure that any withholding taxes imposed are reduced
as far as possible under the provisions of any treaties applicable to any payment made there under. 

  
 Page 16 of 32

 ARTICLE 7. PATENT RIGHTS 

 

	7.1	Trademarks. Prosensa shall devise and own all trademarks for the sale and use of the Products and all expenses thereof shall be borne by Prosensa. All such
trademarks shall be registered in the name of Prosensa if and when registered anywhere in the Territory. 

  

	7.2	Filing, Prosecution and Maintenance of Patent Rights: 

  

	 	7.2.1	Filing of Future Joint Patent Rights. Prosensa and LUMC shall jointly file any Future Joint Patent Right. 

 

	 	7.2.2	Prosecution and Maintenance. Prosensa shall take all reasonable steps to maintain and prosecute the LUMC Patent Rights and the Joint Patent Rights (including
Future Joint Patent Rights, if any) during the term of this Agreement and shall pay all costs and fees associated therewith promptly when due. Prosensa agrees to consult with LUMC and keep LUMC informed concerning such patent matters and Prosensa
shall not abandon any application or cease to maintain any granted or issued patent in any part of the Territory without prior consultation with LUMC. Notwithstanding the foregoing, Prosensa reserves the right to abandon any patent application or
patent which is part of the LUMC Patent Rights or the Joint Patent Rights during the term of this Agreement, if it reasonably determines that the benefit to be gained from continuing with that application or maintaining that patent is outweighed by
the costs of prosecution or maintenance. In such cases of non-prosecution or abandonment, Prosensa shall notify LUMC in writing at least sixty (60) days prior to taking such action so to enable LUMC to take such actions itself at LUMC’s
expense. LUMC shall, at Prosensa’s expense, make available to Prosensa any documentation, data and other information, and shall render the assistance, necessary to enable Prosensa to file, prosecute and maintain Patent Rights hereunder.
Prosensa shall do the same in case of its abandonment of the patent and the notification of LUMC that it wishes to continue said patent. 

  

	 	7.2.3	Prosecution and Maintenance after termination. In the event of termination of this Agreement the patent management of all Joint Patent Rights will be done and
all costs will be borne by LUMC and Prosensa jointly. 

  

	 	7.2.4	Notice of Infringement. Each Party shall inform the other Party promptly in writing of any alleged infringement of patents issued from the LUMC Patent Rights or
Joint Patent Rights by a third party of which such Party becomes aware and of any available evidence thereof. 

  
 Page 17 of 32

	7.3	Right to Enforce  

  

	 	7.3.1	First Rights to Enforce LUMC Patent Rights and Joint Patent Rights. During the term of this Agreement, Prosensa shall have the first right, but shall not be
obligated, to take action at its own expense against all (alleged) infringements of LUMC Patent Rights and/or Joint Patent Rights. Prosensa may include LUMC as a Party plaintiff in any such infringement action, without expense to LUMC. The total
cost of any such infringement action commenced or defended solely by Prosensa shall be borne by Prosensa and Prosensa shall keep any recovery or damages for past infringement derived there from. Any un-reimbursable infringement action costs incurred
by Prosensa shall be deducted from the Net Sales Income and/or the Net Licensing Income, before calculation of the royalty fee, provided, however, that (i) Prosensa will not detract more than ***** of Net Sales Income or the Net Licensing
Income over which the royalty should be calculated in one year, but remains entitled to the compensation of the rest of the un-reimbursable infringement action costs in further years and that (ii) any rewards obtained by Prosensa as a result
from such enforcement action will be considered Net Sales and subject to royalties. Prosensa will not enter into any settlement, consent judgment or other voluntary final disposition of the infringement action without the consent of LUMC, such
consent not to be unreasonably withheld or delayed. 

  

	 	7.3.2	Second Right to Enforce LUMC Patent Rights and/or Joint Patent Rights. If within three (3) months after having been notified, or having given notice, of any
alleged infringement, Prosensa shall have been unsuccessful in persuading the alleged infringer to desist and shall not have brought and shall not be diligently prosecuting an infringement action, or if Prosensa shall notify LUMC at any time prior
thereto of its intention not to bring an infringement claim against any alleged infringer, then, LUMC shall have the right to take enforcement actions at its own expense against any (alleged) infringers of LUMC Patent Rights and/or Joint Patent
Rights and LUMC may, for such purposes, use the name of Prosensa as party plaintiff. The total cost of any such infringement action commenced or defended solely by LUMC shall be borne by LUMC and LUMC shall keep any recovery or damages for past
infringement derived there from. LUMC will not enter into any settlement, consent judgment or other voluntary final disposition of the infringement action without the consent of Prosensa, such consent not to be unreasonably withheld or delayed.

  
 Page 18 of 32

	7.4	Defense of Patent Rights.  

  

	 	7.4.1	LUMC and Prosensa shall each promptly notify the other in writing of any challenge (including an interference or opposition proceeding) relating to any of the LUMC
Patent Rights and Joint Patent Rights. 

  

	 	7.4.2	First Right to Respond to challenge of LUMC Patent Rights and/or Joint Patent Rights. Prosensa shall have the first right to respond to a challenge (invalidity
action, opposition proceeding, interference proceeding or otherwise) of the LUMC Patent Rights or Joint Patent Rights at Prosensa’s expense. Prosensa shall exercise its right to respond in a diligent and timely manner in order to protect the
rights of LUMC under the applicable Patent Rights. In the event Prosensa elects to so respond, LUMC will cooperate with Prosensa’s legal counsel and be available and assist in such proceedings at Prosensa’s reasonable request and at
Prosensa’s cost. Any un-reimbursable costs of such a defense action incurred by Prosensa shall be deducted from the Net Sales Income and/or the Net Licensing Income, before calculation of the royalty fee, provided, however, that
(i) Prosensa will not detract more than ***** of the Net Sales Income or the Net Licensing Income over which the royalty should be calculated in one year, but remains entitled to the compensation of the rest of the un-reimbursable defense
action costs in further years and that (ii) any rewards obtained by Prosensa as a result from such defense action will be considered Net Sales and subject to royalties. 

 

	 	7.4.3	Second Right to Respond to challenge of LUMC Patent Rights and/or Joint Patent Rights. If Prosensa does not exercise its right to respond as provided in Article
7.4.2 within sixty (60) days of becoming aware of or being notified of such challenge, then LUMC shall have the option to do so at its sole cost. LUMC shall keep any recovery or damages derived there from. 

 

	 	7.4.4	Serious weakening of LUMC Patent Rights. In the event of a challenge of the LUMC Patent Rights that results in a serious weakening of the LUMC Patent Rights, the
Parties shall in good faith renegotiate a reduction in the royalty. 

  

	7.5	 Registration of License. To the extent not yet executed, LUMC will, within sixty (60) days after signing of this Agreement, at its own
expense, diligently begin the process whereby the 

  
 Page 19 of 32

	 	
license rights granted under this Agreement will be recorded at each patent register, where possible, in territories where there are LUMC Patent Rights. LUMC should confirm to Prosensa in writing
that this has been done. 

 ARTICLE 8. CONFIDENTIALITY 

 

	8.1	Maintenance of Confidentiality. Each Party (the “Receiving Party”) agrees, both during the term of this Agreement and for a period of five
(5) years thereafter, to hold all information given to it by the other Party (the “Disclosing Party”) that is identified or should reasonably be regarded as confidential (the “Confidential Information”) in confidence and not
to make the Confidential Information available in any form to any third party (provided that Prosensa may disclose Confidential Information to its Affiliates, agents, and actual and potential sublicensees under appropriate confidentiality
agreements) or to use the Confidential Information for any purpose other than the purposes described in this Agreement. The Receiving Party agrees to take all reasonable steps to ensure that Confidential Information is not disclosed or distributed
by its employees or agents in violation of this Agreement, including limiting disclosure to employees or other persons who have a need to know and who have signed appropriate confidentiality agreements. These restrictions on use and disclosure shall
not apply to the extent that any Confidential Information (a) is or becomes a part of the public domain through no act or omission of the Receiving Party in violation of this Agreement; (b) was in the Receiving Party’s lawful
possession prior to the disclosure and had not been obtained by the Receiving Party from the Disclosing Party as evidenced by written records; (c) is lawfully disclosed to the Receiving Party by a third party without restriction on disclosure;
(d) is independently developed by the Receiving Party by personnel not having access to the Confidential Information as evidenced by written records; or (e) is required to be disclosed by law, order or regulation of a government agency or
court of competent jurisdiction; provided the Receiving Party shall use reasonable efforts to notify the Disclosing Party of such obligated disclosure. 

  

	8.2	Public Announcement. Each Party agrees not to disclose any term of this Agreement without the prior written consent of the other Party (provided, however, that
Prosensa may disclose the terms of this Agreement to potential financial investors under appropriate confidentiality agreements). The Parties agree that all press releases related to any announcement (if at all) of the execution of this Agreement
shall be issued jointly by and be subject to the mutual written approval of Prosensa and LUMC and that the Party preparing any such press release shall provide the other Party with a draft thereof reasonably in advance of disclosure so as to permit
the other Party to review and comment on such press release. 

  
 Page 20 of 32

 ARTICLE 9. REPRESENTATIONS, WARRANTIES AND INDEMNITIES 

 

	9.1	Authorization. Each Party warrants and represents to the other Party that (a) it has the legal right and power to enter into this Agreement, to extend the
rights and licenses granted to the other Party, and to perform fully its obligations hereunder, (b) this Agreement has been duly executed and delivered and is a valid and binding agreement of such Party, enforceable in accordance with its
terms, (c) such Party has obtained all necessary approvals to the transactions contemplated hereby, and (d) such Party has not made and, for as long as it is legally bound hereunder, will not make any commitments to Third Parties in
conflict with or in derogation of said rights and licenses of this Agreement. 

  

	9.2	Intellectual Property Rights.  

  

	9.2.1	LUMC. LUMC hereby represents and warrants as of the Effective Amendment Date that (a) it is sole owner of the LUMC Patent Rights (b) that the LUMC
Patent Rights are free and clear of any lien or other encumbrance; (c) that it has not granted any license under the LUMC Patent Rights; (d) to the best of its knowledge no Third Party has filed suit for alleged infringement by the LUMC
Patent Rights upon the rights of such party; and (e) to the best of its knowledge no patent office or other relevant patent authority of any jurisdiction within the Territory has issued final notice that it rejects to any pending patent
application under the LUMC Patent Rights or that any Third Party has filed opposition proceedings or objection to any pending patent application under the LUMC Patent Rights. 

 

	9.3	Covenant. Prosensa hereby covenants that it will use commercially reasonable and diligent efforts to (further) develop the Products towards obtaining Regulatory
Approval, to obtain Regulatory Approvals and to commercialize the Products in the Territory, including (but not limited to) prosecution, maintenance and defense of intellectual property rights of Prosensa related to such Products.

  

	9.4	Limitation of Liability. Notwithstanding anything else in this Agreement, neither Party will be liable with respect to any subject matter of this Agreement under
any contract, negligence, strict liability or other legal or equitable principle for (a) any indirect, incidental, consequential or punitive damages, or (b) loss of profits, or (c) cost of procurement of substitute goods, technology
or services. 

  
 Page 21 of 32

	9.5	LUMC Indemnification. LUMC shall indemnify, defend and hold harmless Prosensa, its Affiliates and their respective directors, officers, employees, and agents and
their respective successors, heirs and permitted assigns (the “Prosensa Indemnitees”), and shall not take any recourse actions towards Prosensa, against any liability, damage, loss or expense (including reasonable attorneys’ fees and
expenses of litigation) incurred by or imposed upon the Prosensa Indemnitees, or any of them, in connection with any claims, suits, actions, demands or judgments of Third Parties, including without limitation personal injury and product liability
matters arising out of or relating to (a) any breach by LUMC of its obligations or representations and warranties set forth in this Agreement; or (b) any actions caused by LUMC or any Affiliate, licensee, sublicensee, distributor or agent
of LUMC under this Agreement (including the Collaborative Research Projects), save for gross negligence or willful misconduct of Prosensa or breach of warranties or representations by Prosensa. The Prosensa Indemnitees shall promptly notify LUMC of
any action or claim for which they are to be indemnified. 

  

	9.6	Prosensa Indemnification. Prosensa shall indemnify, defend and hold harmless LUMC, its Affiliates and their respective directors, officers, employees, and agents
and their respective successors, heirs and permitted assigns (the “LUMC Indemnitees”), and shall not take any recourse actions towards LUMC, against any liability, damage, loss or expense (including reasonable attorneys’ fees and
expenses of litigation) incurred by or imposed upon the LUMC Indemnitees, or any of them, in connection with any claims, suits, actions, demands or judgments of third parties, including without limitation personal injury and product liability
matters arising out of or relating to (a) any breach by Prosensa of its obligations or representations and warranties set forth in this Agreement; (b) any actions caused by Prosensa or any Affiliate, licensee, sublicensees, distributor or
agent of LUMC under this Agreement (including the Collaborative Research Projects) or (c) the use, development, manufacture, import, promotion, distribution and sale of the Products (save for gross negligence or willful misconduct of LUMC or
breach of any warranty or representation by LUMC). The LUMC Indemnitees shall promptly notify Prosensa of any action or claim for which they are to be indemnified. 

 

	9.6	Disclaimer of Representations and Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PROSENSA NOR LUMC MAKES ANY REPRESENTATIONS OR
EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

  
 Page 22 of 32

 ARTICLE 10. TERM AND TERMINATION 

 

	10.1	Term. This Agreement enters into force on the Effective Amendment Date and shall, unless terminated sooner pursuant to Section 10.2 hereof, expire on a
country-by-country basis upon the expiration date of the last to expire of the LUMC Patent Rights or Joint Patent Rights issued in such country, or upon the expiration date of the last to expire grant of orphan drug status issued in such country, or
15 years from the first commercial sale of Product in such country, whichever of these three moments occurs later. 

  

	10.2	Termination. This Agreement may be terminated in the following circumstances: 

 

	 	10.2.1	For Prosensa’s failure to perform. If Prosensa fails to use commercially reasonable and diligent efforts to perform any material duty imposed upon Prosensa
under this Agreement and such failure to perform is not cured within six (6) months of written notice thereof from LUMC (which notification should clearly state the grounds for non performance), LUMC may elect, in its sole discretion, to
terminate this Agreement. 

  

	 	10.2.2	Partial Termination. This agreement can be partly terminated (only for a certain *****), pursuant to the procedure as laid down in Section 3.8 of this
Agreement.  

  

	 	10.2.3	For Material Breach. If either Party commits a breach of any material obligation under this Agreement, and such breach is not cured within ninety (90) days
of written notice thereof from the non-breaching Party, the non-breaching Party may elect, in its sole discretion, to terminate this Agreement. 

  

	 	10.2.4	Upon Insolvency. Either Party may terminate this Agreement upon the bankruptcy, insolvency, dissolution or winding-up of the other Party.

  

	 	10.2.5	For Convenience. Prosensa may elect to terminate this Agreement without cause upon 6 (six) months’ written notice. 

 

	 	10.2.6	With mutual consent. The Parties may at any time terminate this Agreement by mutual written consent. 

 

	10.3	Effect of Termination: 

  

	 	10.3.1	Termination by LUMC. Upon termination of this Agreement by LUMC pursuant to Sections 10.2.1, 10.2.3 or 10.2.4 hereof, 

 

	 	a)	Prosensa shall cease all uses of the LUMC Patent Rights and LUMC Technology pertaining thereto, as well as sales of the Products; 

  
 Page 23 of 32

	 	b)	The licenses granted by LUMC to Prosensa under this Agreement shall terminate automatically and revert to LUMC. 

 

	 	c)	The (research) license granted by Prosensa to LUMC set forth in Section 3.4 shall survive. 

 

	 	10.3.2	Termination by Prosensa. Upon termination of this Agreement by Prosensa pursuant to Sections 10.2.3 or 10.2.4 hereof, the licenses granted by LUMC to Prosensa
hereunder shall survive such termination (provided that Prosensa’s financial obligations hereunder shall only survive to the extent these existed prior to such termination). 

 

	 	10.3.3	Termination by Prosensa for Convenience. Upon termination by Prosensa on the basis of Section 10.2.4 hereof (termination for convenience), the provisions of
Section 10.3.1 shall apply. 

  

	 	10.3.4	Termination by mutual consent. Upon termination by the Parties with mutual consent as referred to in Section 10.2.5, the Parties shall jointly decide what
the effects of the terminations shall be. 

  

	10.4	Surviving Provisions. Notwithstanding any provision to the contrary herein, the rights and obligations set forth in Sections 3.2, 3.4, 7, 8, 9, 11 and 12 hereof
shall survive the expiration or termination of this Agreement. 

 ARTICLE 11. MISCELLANEOUS 

 

	11.1	Force Majeure. Neither Party shall be held liable or responsible to the other Party nor be deemed to have defaulted under or breached this Agreement for failure
or delay in fulfilling or performing any term of this Agreement if such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party, including, without limitation, fire, floods, embargoes, war, acts of
war, insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, acts of God or acts, omissions or delays in acting by any governmental authority; provided, however, that the Party so affected shall use commercially
reasonable and diligent efforts to avoid or remove such causes of non-performance, and shall continue performance hereunder with reasonable dispatch wherever such causes are removed. Each Party shall provide the other Party with prompt written
notice of any delay or failure to perform that occurs by reason of force majeure. The Parties shall mutually seek a resolution of the delay or the failure to perform in good faith. 

  
 Page 24 of 32

	11.2	Assignment. This Agreement may not be assigned or otherwise transferred by either Party without the consent of the other Party, such consent not to be
unreasonably withheld or delayed, provided, however, that either Party may, without such consent, assign its rights and obligations under this Agreement (a) in connection with a corporate reorganization, to any Affiliate, or (b) in
connection with a merger, consolidation or sale of substantially all of such Party’s assets to a Third Party. Any purported assignment in violation of this Section 11.2 shall be void. 

 

	11.3	Severability. If one or more of the provisions of this Agreement shall be held invalid, illegal or unenforceable, the remaining provisions shall not in any way
be affected or impaired thereby. In the event any provision is held invalid, illegal or unenforceable, the Parties shall use reasonable efforts to substitute a valid, legal and enforceable provision which, insofar as is practical, implements the
purposes of the provision held invalid, illegal or unenforceable. 

  

	11.4	Exhibits. The Exhibits attached to this Agreement form an integral part of this Agreement. 

 

	11.5	Notices. Any consent, notice or report required or permitted to be given or made under this Agreement by one Party to the other shall be in writing (by courier,
facsimile or registered mail), for each Party to the address indicated below, or to such other address as the addressee shall have last furnished in writing to the addressor in accordance with this Section 11.5 and shall be effective upon
receipt by the addressee: 

  

			
	If to LUMC:	  	LUMC
		  	T.a.v. Prof. G.J.B. van Ommen
		  	Postbus 9600
		  	2300 RC Leiden
		  	Einthovenweg 20
		  	2333 ZC Leiden
		  	Postzone: S4-P
		  	cc. Dr. R. Smailes
		  	Rijnsburgerweg 10
		  	2333 AA Leiden
		
	If to Prosensa:	  	Prosensa
		  	Attn. Mr. H. Schikan, CEO
		  	Wassenaarseweg 72
		  	2333 AL Leiden

  
 Page 25 of 32

	11.6	Entire Agreement. This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof. All express or implied agreements
and understandings, either oral or written, including the Original Agreement, are expressly merged into and made a part of this Agreement and this Agreement, therefore, sets aside any and all of such earlier agreements and understandings. This
Agreement may not be amended other than with the written consent of both Parties. 

  

	11.7	Headings. The headings to the several Articles and Sections in this Agreement are not a part of this Agreement, but are merely guides to assist in locating and
reading the several Articles and Sections hereof. 

  

	11.8	Waiver. Except as expressly provided herein, the waiver by either Party of any right hereunder or of any failure to perform or any breach by the other Party
shall not be deemed a waiver of any other right hereunder or of any other failure to perform or breach by said other Party, whether of a similar nature or otherwise. 

 ARTICLE 12. APPLICABLE LAW / COMPETENT COURT 
  

	12.1	Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of The Netherlands. 

 

	12.2	Competent Court. Any disputes arising between the Parties relating to, arising out of or in any way connected with this Agreement or any term or condition hereof
or the performance by either Party of its obligations hereunder, whether before or after termination of this Agreement, that the Parties fail to settle amicably within a reasonable period of time shall be exclusively submitted to the competent court
of The Hague, The Netherlands, including summary proceedings and notwithstanding the right of appeal in first and second instance. 

 *The remainder of this page intentionally left blank* 

  
 Page 26 of 32

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above.

  

									
	LUMC	 		 		 	Prosensa Holding B.V.
					
	Signature:	 	 /s/ Ir. H.M. le Clercq
	 		 	Signature:	 	 /s/ H.G.C.P. Schikan

					
	Name:	 	Ir. H.M. le Clercq	 		 	Name:	 	H.G.C.P. Schikan
	Title:	 	Chairman, Executive Board	 		 	Title:	 	Chief Executive Officer
					
	Signature:	 	 /s/ Dr. J.P. Rotmans
	 		 		 	
	Name:	 	Dr. J.P. Rotmans	 		 		 	
	Title:	 	Division Manager	 		 		 	

  
 Page 27 of 32

 EXHIBIT 1 
 LUMC PATENT RIGHTS 
  

											
	 *****
	  	Priority	 	  	 Applicant
	  	Inventors	  	 Patent Agent

					
	 *****
	  	 	*****	  	  	LUMC	  	*****	  	P54258 - Vereenigde
	 *****
	  	 	*****	  	  	LUMC	  	*****	  	P63917 - Vereenigde
					
	 *****
	  	Priority	 	  	 Applicant
	  	Inventors	  	 Patent Agent

					
	 *****
	  	 	*****	  	  	LUMC	  	*****	  	P72834 - Vereenigde
	 *****
	  	 	*****	  	  	LUMC	  	*****	  	P77466 - Vereenigde
	 *****
	  	 	*****	  	  	LUMC	  	*****	  	P73951 - Vereenigde

  
 Page 28 of 32

 EXHIBIT 2 
 EXISTING JOINT PATENT RIGHTS 
 EXHIBIT 2 EXSISTING JOINT PATENTS

  

									
	 *****
	  	Priority	  	 Applicant
	  	Inventors	  	 Patent Agent

					
	 *****
	  	*****	  	LUMC & Prosensa	  	*****	  	P81820 - Vereenigde
	 *****
	  	*****	  	LUMC & Prosensa	  	*****	  	P84297 - Vereenigde
	 *****
	  	*****	  	LUMC & Prosensa	  	*****	  	P6024691 - NOB
	 *****
	  	*****	  	LUMC & Prosensa	  	*****	  	P6024689 - NOB
	 *****
	  	*****	  	LUMC & Prosensa	  	*****	  	P6010208 - NOB

  
 Page 29 of 32

 EXHIBIT 3A 
 LUMC TECHNOLOGY 
 LUMC Technology means: 

 

	 	1.	Patient material e.d. 

	 	a.	Patient derived and control cell cultures 

	 	b.	Tissue biopsies (tissue bank) 

	 	c.	Blood, and tissue biopsy sampling 

	 	d.	Screening capacity 

	 	i.	LGTC sequencing facility, 

	 	ii.	MLPA, 

	 	iii.	prescreening back up, 

	 	iv.	protein sample analysis, 

	 	v.	FACS, 

	 	vi.	Q-PCR, 

	 	vii.	FISH and immunofluorescence analysis 

	 	e.	Virus stocks for screening (back up) 

	 	f.	Storage tissue samples (back up) 

	 	g.	Patient databases 

	 	h.	Diagnostic materials (e.g. antibodies) 

  

	 	2.	AON 

	 	a.	AON testing in vitro and vivo (RNA and protein level) 

	 	b.	Complement activation and cytotoxicity assay 

	 	c.	Analytical support assays (e.g. MS, MALDI-TOF etc) 

  

	 	3.	Animals 

	 	a.	In situ imaging 

	 	b.	Animal models in the field (e.g. hDMD, mdx) 

	 	c.	Functional outcome analysis in animal models (e.g. muscle strength) 

	 	d.	Sample collection 

	 	e.	Administration routes 

  

	 	4.	Lab technology 

	 	a.	Odyssey imaging system 

	 	b.	Agilent LabChip analysis system 

	 	c.	Cryostat 

	 	d.	Microscopy 

	 	e.	FACS 

	 	f.	Library (array) screening technology 

 The
materials described under 1a, b, c and g will only be considered LUMC Technology if and for as far as it is legally possible to grant Prosensa the rights as described in the Agreement and only if and for as far as all the relevant parties have given
their consent to the use by Prosensa of these materials as described in this Agreement. 

  
 Page 30 of 32

 EXHIBIT 3B 
 LUMC TANGIBLE TECHNOLOGY 

  
 Page 31 of 32

 EXHIBIT 4 
 PROSENSA TECHNOLOGY 
 Prosensa Technology means: 

 

	 	•	 	 Optimalised Western blot protocol 

  

	 	•	 	 Ligatie-hybridisatie technology (‘the ELISA’) to determine AON concentrates in tissue 

 

	 	•	 	 Production of AONs, sugar-AON conjugates, peptide-AON conjugates, fluorescent peptides (fee for service) 

 

	 	•	 	 Patient derived and control cell cultures. These patient derived and control cell cultures will only be considered Prosensa Technology if and for as
far as it is legally possible to grant LUMC the rights as described in the Agreement and only if and for as far as all the relevant parties have given their consent to the use by LUMC of these materials as described in this Agreement.

  
 Page 32 of 32EX 4.2

 Exhibit 4.2 
 EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

June 1, 2007 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 SECTION 1.
	 	CERTAIN DEFINITIONS.	  	 	1	  
			
	 SECTION 2.
	 	COVENANTS OF THE COMPANY	  	 	3	  
			
	 2.1
	 	Financial Statements and Reports to Stockholders; Budget	  	 	3	  
			
	 2.2
	 	Inspection	  	 	3	  
			
	 2.3
	 	Confidentiality	  	 	4	  
			
	 2.4
	 	Proprietary Information and Inventions Agreements	  	 	4	  
			
	 2.5
	 	Restriction on Sales by Employees, Directors and Certain Stockholders	  	 	4	  
			
	 2.6
	 	Qualified Small Business	  	 	5	  
			
	 2.7
	 	Real Property Holding Corporation	  	 	5	  
			
	 2.8
	 	Board Meeting; Compensation of Directors	  	 	5	  
			
	 2.9
	 	Board Observer Rights	  	 	5	  
			
	 2.10
	 	Employee Stock	  	 	6	  
			
	 2.11
	 	Termination of Covenants	  	 	6	  
			
	 SECTION 3.
	 	REGISTRATION RIGHTS	  	 	6	  
			
	 3.1
	 	Demand Registration	  	 	6	  
			
	 3.2
	 	Piggyback Registration	  	 	10	  
			
	 3.3
	 	Expenses of Registration	  	 	11	  
			
	 3.4
	 	Registration Procedures	  	 	12	  
			
	 3.5
	 	Information Furnished by Holder	  	 	13	  
			
	 3.6
	 	Indemnification	  	 	13	  
			
	 3.7
	 	Limitations on Registration Rights Granted to Other Securities	  	 	15	  
			
	 3.8
	 	Transfer of Rights	  	 	15	  
			
	 3.9
	 	Market Stand-off	  	 	16	  
			
	 3.10
	 	Sale of Convertible Securities to Underwriter	  	 	16	  
			
	 3.11
	 	Rule 144 Requirements	  	 	16	  
			
	 3.12
	 	Termination of Company Agreements	  	 	16	  
			
	 SECTION 4.
	 	RIGHT OF FIRST REFUSAL	  	 	17	  
			
	 4.1
	 	Right of First Refusal	  	 	17	  
			
	 4.2
	 	Definition of New Securities	  	 	17	  
			
	 4.3
	 	Notices	  	 	18	  
			
	 4.4
	 	Failure to Exercise Right	  	 	18	  

  
 - i -

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 4.5
	 	Rights of Affiliated Investors	  	 	18	  
			
	 4.6
	 	Assignment	  	 	18	  
			
	 4.7
	 	Termination	  	 	19	  
			
	 SECTION 5.
	 	TRANSFERS OF SECURITIES BY INVESTORS	  	 	19	  
			
	 5.1
	 	Notices	  	 	19	  
			
	 5.2
	 	Acceptance of Offer	  	 	19	  
			
	 5.3
	 	Allocation of Securities and Payment	  	 	19	  
			
	 5.4
	 	Failure to Exercise	  	 	20	  
			
	 5.5
	 	Assignment	  	 	20	  
			
	 5.6
	 	Permitted Transfers	  	 	20	  
			
	 5.7
	 	Termination	  	 	20	  
			
	 SECTION 6.
	 	MISCELLANEOUS	  	 	21	  
			
	 6.1
	 	Entire Agreement; Successors and Assigns	  	 	21	  
			
	 6.2
	 	Aggregation of Stock	  	 	21	  
			
	 6.3
	 	Governing Law	  	 	21	  
			
	 6.4
	 	Counterparts	  	 	21	  
			
	 6.5
	 	Headings	  	 	21	  
			
	 6.6
	 	Notices	  	 	21	  
			
	 6.7
	 	Amendment of Agreement; Waivers	  	 	21	  
			
	 6.8
	 	Additional Investors	  	 	21	  

  
 - ii -

 EVOKE PHARMA, INC. 

INVESTOR RIGHTS AGREEMENT 
 THIS INVESTOR RIGHTS AGREEMENT (this “Agreement”) is made as of June 1, 2007,
by and among EVOKE PHARMA, INC., a Delaware corporation (the “Company”), and each of the entities and persons listed on Schedule A hereto
(collectively, the “Investors”). 
 RECITALS 

A. The Investors are purchasing shares of the Company’s Series A Preferred Stock, par value $0.0001 per share (the “Series A
Preferred Stock”), pursuant to that certain Series A Preferred Stock Purchase Agreement of even date herewith (the “Purchase Agreement”). 
 B. The obligations in the Purchase Agreement are conditioned upon the execution and delivery of this Agreement. 
 THE PARTIES AGREE AS FOLLOWS: 
  

	SECTION 1.	CERTAIN DEFINITIONS. 

 As
used in this Agreement, the following terms shall have the following respective meanings: 
 (a) “Affiliate”
shall mean with respect to any Person, any Person which directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person. 

(b) “Board” shall mean the Board of Directors of the Company. 

(c) “Commission” shall mean the Securities and Exchange Commission or any other federal agency at the time administering
the Securities Act. 
 (d) “Common Stock” shall mean the Company’s common stock, par value $0.0001 per
share. 
 (e) “Convertible Promissory Notes” shall mean those certain convertible promissory notes dated as of
March 12, 2007 issued by the Company in the aggregate principal amount of $250,000. 
 (f) “Convertible
Securities” shall mean the Company’s Series A Preferred Stock. 
 (g) “Form S-3” shall mean Form
S-3 issued by the Commission or any substantially similar form then in effect. 
 (h) “Holder” shall mean any
Person entering into this Agreement and any holder of outstanding Registrable Securities or an assignee or transferee of Registration rights as permitted by Section 3.8. 
 (i) “Initiating Holders” shall mean Holders who in the aggregate hold more than fifty percent (50%) of the Registrable Securities, excluding shares under clause (ii) of the
definition of “Registrable Securities” below. 

 (j) “Material Adverse Event” shall mean an occurrence having a consequence
that either (a) is materially adverse as to the business, properties, prospects or financial condition of the Company or (b) is reasonably foreseeable, has a reasonable likelihood of occurring, and if it were to occur would reasonably be
expected to materially adversely affect the business, properties, prospects or financial condition of the Company. 
 (k)
“Person” shall mean an individual, a corporation, a partnership, a trust or unincorporated organization or any other entity or organization. 
 (l) “Qualified Public Offering” shall mean a firmly underwritten public offering of the Company’s Common Stock Registered under the Securities Act and (i) involving gross
proceeds to the Company of at least Twenty Five Million Dollars ($25,000,000) (prior to deduction for underwriters’ discounts and other expenses relating to such public offering, including, without limitation, fees of the Company’s
counsel) and the price to the public is at least Four Dollars and Fifty Cents ($4.50) per share (equitably adjusted for all stock splits, sub-divisions, stock dividends, combinations and the like with respect to such shares) or (ii) approved by
holders of at least sixty-six and two-thirds percent (66 2/3%) of the then outstanding shares of Series A Preferred Stock. 

(m) The terms “Register,” “Registered” and “Registration” refer to a registration
effected by preparing and filing a registration statement in compliance with the Securities Act (“Registration Statement”), and the declaration or ordering of the effectiveness of such Registration Statement. 

(n) “Registrable Securities” shall mean (i) all Common Stock not previously sold to the public issued or issuable
upon conversion of any of the Convertible Securities purchased by or issued to the Investors, (ii) all of the shares of Common Stock owned by the Investors, (iii) any shares of Common Stock issued or issuable upon conversion of any
Convertible Securities granted registration rights pursuant to Section 3.7 of this Agreement, and (iv) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is
issued as) a dividend or other distribution with respect to, or in exchange for, or in replacement of, the Common Stock described in clauses (i) through (iii) of this definition. 

(o) “Registration Expenses” shall mean all expenses incurred by the Company in complying with Sections 3.1 or 3.2 of
this Agreement, including, without limitation, all federal and state registration, qualification and filing fees, printing expenses, fees and disbursements of counsel for the Company and fees and disbursements, in an aggregate amount not to exceed
$25,000, of not more than one (1) special counsel for the Holders, blue sky fees and expenses, and the expense of any special audits incident to or required by any such Registration. 

(p) “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute, and the rules
and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
 (q) “Selling
Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of Registrable Securities pursuant to this Agreement. 
 (r) “Special Registration Statement” shall mean (i) a registration statement relating to any employee benefit plan, (ii) with respect to any corporate reorganization or
transaction under Rule 145 of the Securities Act, including any registration statements related to the resale of securities issued in such a transaction, or (iii) a registration related to stock issued upon conversion of debt securities.

  
 - 2 -

	SECTION 2.	COVENANTS OF THE COMPANY 

2.1 Financial Statements and Reports to Stockholders; Budget. For so long as an Investor or subsequent holder of Convertible
Securities holds or is deemed to hold at least Two Hundred Fifty Thousand (250,000) shares of Registrable Securities (equitably adjusted for all stock splits, subdivisions, stock dividends, combinations and the like with respect to such
shares), the Company shall deliver to each Investor: 
 (a) As soon as practicable after the end of each fiscal year, and in any
event within one hundred twenty (120) days thereafter, audited consolidated balance sheets of the Company and its subsidiaries, if any, as of the end of such fiscal year, and consolidated statements of income, stockholders’ equity and
consolidated statements of cash flow of the Company and its subsidiaries, if any, for such year, prepared in accordance with generally accepted accounting principles, consistently applied, and setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail. Such financial statements shall be accompanied by a report and opinion thereon by independent public accountants of national standing selected by the Board. 

(b) As soon as practicable after the end of each fiscal quarter, and in any event within forty-five (45) days after the end of each
such fiscal quarter, an unaudited consolidated balance sheet of the Company as at the end of such quarter, and unaudited consolidated statements of income, stockholders’ equity and statements of cash flow for such quarter and for the current
fiscal year to date. Such financial statements shall be prepared in accordance with generally accepted accounting principles consistently applied (other than accompanying notes and subject to normal year-end adjustments), all in reasonable detail,
including detailed quarterly comparisons to budget. 
 (c) As soon as practicable after the end of each month, and in any event
within thirty (30) days after the end of each such month, an unaudited consolidated balance sheet of the Company as at the end of such month, and unaudited consolidated statements of income, stockholders’ equity and statements of cash flow
for such month and for the current fiscal year to date. Such financial statements shall be prepared in accordance with generally accepted accounting principles consistently applied (other than accompanying notes and subject to year-end adjustments),
all in reasonable detail, including detailed monthly comparisons to budget. 
 (d) As soon as practicable, and in any event
within thirty (30) days prior to the beginning of the fiscal year, a copy of the Company’s annual operating plan and budget for the upcoming fiscal year, which shall include without limitation forecasts of the Company’s revenues,
expenses and cash position on a month-to-month basis for such upcoming fiscal year together with any other budgets or revised budgets as they become available throughout the fiscal year. 

(e) Contemporaneously with delivery to holders of Common Stock, a copy of each report of the Company delivered to holders of Common
Stock. 
 2.2 Inspection. For so long as an Investor or subsequent holder of Convertible Securities holds or is deemed to
hold at least Two Hundred Fifty Thousand (250,000) shares of Registrable Securities (equitably adjusted for all stock splits, subdivisions, stock dividends, combinations and the like with respect to such shares), the Company shall permit such
Investor, at such Investor’s expense, to visit and inspect the Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable
times and as often as may be reasonably requested by each such Investor; provided, however, that the Company shall not be obligated pursuant to this Section 2.2 with respect to a competitor of the Company or with respect to any
information which it reasonably considers to be a trade secret or confidential information. The rights of an 

  
 - 3 -

 
Investor under this Section 2.2 may not be assigned as part of such Investor’s sale of any of the Registrable Securities or Convertible Securities except with the consent of the
Company, which consent shall not be unreasonably withheld. 
 2.3 Confidentiality. Each Investor agrees and will cause
any representative of the Investor to hold in confidence and trust and not use or disclose any information provided to or learned by it in connection with its rights under this Section 2, except that such Investor may disclose such information
to any general partner, limited partner, member, subsidiary or parent (and their respective representatives) of such Investor for the purpose of evaluating its investment in the Company as long as (a) such general partner, limited partner,
member, subsidiary or parent is advised of the confidentiality provisions of this Section 2.3 and (b) such Investor uses its commercially reasonable best efforts to ensure that such general partner, limited partner, member, subsidiary or
parent holds such information in confidence and trust and will not use or disclose any information provided to or learned by it except as required by law. Notwithstanding the foregoing, however, the obligation of each Investor to hold information
confidential as provided herein or any other document or agreement relating thereto shall not prohibit such Investor from disclosing such information: (i) to its board of directors, investment advisers, attorneys, accountants, consultants and
other professionals to the extent necessary to obtain their services in connection with its investment in the Company, provided that such persons agree to hold such information confidential as provided herein and in such provisions (as
modified by this paragraph); (ii) to any prospective purchaser of any shares of the Company owned by such Investor as long as such prospective purchaser agrees in writing to be bound by the confidentiality provisions as provided herein or in
such provisions (as modified by this paragraph); (iii) to such Investor’s investment advisor or any investment companies managed by such Investor’s investment advisor, provided that such persons agree to hold such information
confidential as provided herein or in such provisions (as modified by this paragraph); or (iv) as required by applicable law or regulation, regulatory body, stock exchange, court or administrative order, or any listing or trading agreement
concerning such Investor or the Company. Furthermore, nothing in this Section 2.3 shall restrict any Investor’s ability to disclose the existence or nature of its relationship with the Company, the nature or amount of its investment in
securities of the Company or to provide its affiliates with quarterly, annual or other reports and such other information about the Company prepared by such Investor in the ordinary course of its business, provided that said Investor takes
commercially reasonable measures to ensure that any such affiliates protect the confidential nature of such confidential information. The Company understands that the Investors are in the business of making investments in early stage companies
involved in various life science fields and, therefore, engage in discussions with numerous entities that are seeking capital. The Residuals resulting from access to or work with such confidential information shall not be subject to the
confidentiality and non-use obligations contained in this Agreement. For the purposes hereof, the term “Residuals” means know-how and experience gained from the information delivered by the Company to the Investors hereunder, and
retained in the unaided memories of the Investors without reference to any material that is written, stored in magnetic, electronic or physical form or otherwise fixed. “Residuals” specifically excludes any works protected by
patent. 
 2.4 Proprietary Information and Inventions Agreements. The Company agrees to require each employee and officer
of the Company to execute a proprietary information and inventions agreement and each consultant and advisor of the Company to execute an agreement that provides for confidential treatment of the Company’s proprietary information as a condition
of employment or engagement or continued employment or engagement, as the case may be, unless otherwise approved by the Board. 

2.5 Restriction on Sales by Employees, Directors and Certain Stockholders. The Company and Holders agree that, until the time of a
Qualified Public Offering, first, the Company, and second, the Investors will have a right of first refusal on all transfers of Common Stock by employees, directors and stockholders who individually, or together with his, her or its Affiliates, hold
more than one percent (1%) of the outstanding capital stock of the Company (“1% Stockholders”), subject to transfers to family 

  
 - 4 -

 
members or trusts for the benefit of family members and other limited exceptions as determined by the Board. The Company agrees to include appropriate language to this effect in its Bylaws or in
future employment agreements, stock option and/or restricted stock grants, or other similar agreements with employees, directors and 1% Stockholders, as applicable. 
 2.6 Qualified Small Business. The Company covenants that so long as any Convertible Securities, or the Common Stock into which such shares are converted, are held by a Holder in whose hands such
shares of Common Stock are eligible to qualify as “qualified small business stock” as defined in Section 1202(c) of the of the Internal Revenue Code of 1986, as amended (the “Code”) (“Qualified Small Business
Stock”), it will (i) comply with any applicable filing or reporting requirements imposed by the Code on issuers of Qualified Small Business Stock and (ii) execute and deliver to each Holder, from time to time, such forms,
documents, schedules and other instruments as may be reasonably requested thereby to cause the Convertible Securities, or the Common Stock into which such shares are converted, to qualify as Qualified Small Business Stock. 

2.7 Real Property Holding Corporation. The Company is not a “United States real property holding corporation,” as that
term is defined in Internal Revenue Code (“IRC”) Section 897(c)(2) and Treasury Regulation Section 1.897-2(b). If at any time in the future the Company shall become a “United States real property holding
corporation,” the Company shall notify each foreign investor of such event as promptly as practicable. Within thirty (30) days after receipt of a request from a foreign investor, the Company shall prepare and deliver to such foreign
investor the statement required under Treasury Regulation Section 1.897-2(h) and, subject to the succeeding sentence, either or both of the following documents: (i) an affidavit in conformance with the requirements of IRC
Section 1445(b)(3) and the regulations thereunder or (ii) a notarized statement, executed by an officer having actual knowledge of the facts, that the shares of Company stock held by such foreign investor are of a class that is regularly
traded on an established securities market, within the meaning of IRC Section 1445(b)(6) and the regulations thereunder. If the Company is unable to provide either of the documents described in (i) or (ii) above upon request, it shall
promptly, in any event within thirty (30) days, notify such foreign investor in writing of the reason for such inability. Finally, upon the request of a foreign investor and without regard to whether either document described in (i) or
(ii) above has been requested, the Company shall reasonably cooperate with the efforts of such foreign investor to obtain a “qualifying statement” within the meaning of IRC Section 1445(b)(4) and the regulations thereunder or
such other documents as would excuse a transferee of a foreign investor’s interest from withholding of income tax imposed pursuant to IRC Section 897(a). 
 2.8 Board Meeting; Compensation of Directors. The Company hereby covenants that so long as the holders of the Convertible Securities are entitled to appoint any members of the Board pursuant to the
Company’s Restated Certificate of Incorporation, as amended, the Board shall not meet less frequently than quarterly. All non-employee directors will be compensated by the Company identically; provided however, that additional
compensation may be provided to the Chairman of the Board or the Chairman of any Committee of the Board; provided, that such compensation is approved by the Board. All out-of-pocket and travel expenses of the directors incurred in attending
Board meetings (or meetings of committees thereof) or in connection with the performance of their duties as directors shall be paid or reimbursed promptly by the Company. The Company shall also agree to indemnify each of its officers and directors
to the fullest extent permitted by the Delaware General Corporation Law and enter into customary indemnification agreements with each of its officers and directors evidencing such indemnification obligation. 

2.9 Board Observer Rights. For so long as an Investor or subsequent holder of Convertible Securities holds or is deemed to hold
(or is obligated to purchase under the Purchase Agreement) an aggregate of at least Two Million (2,000,000) shares of Registrable Securities (equitably adjusted for 

  
 - 5 -

 
all stock splits, subdivisions, stock dividends, combinations and the like with respect to such shares), the Company shall allow one representative designated by such Investor (the
“Observer”) to attend meetings of the Board in a non-voting capacity. The Company shall provide the Observer with copies of all materials that are provided by the Company to its directors; provided, however, that a majority
of the members of the Board shall be entitled to recuse the Observer from portions of any Board meeting and to redact portions of any Board or Board committee materials delivered to the Observer where and to the extent that such majority determines,
in good faith that (i) such recusal is reasonably necessary, in the opinion of counsel to the Company, to preserve attorney-client privilege with respect to a material matter, (ii) there exists, with respect to any deliberation or Board
materials, an actual or potential conflict of interest between the Investor who has appointed such Observer and the Company or (iii) the presence of the Observer would otherwise be materially injurious to the Company in such circumstances. Any
Observer will be subject to the confidentiality provisions set forth in Section 2.3. The Observer shall receive no compensation from the Company for service as an Observer and shall not be reimbursed for any expenses incurred by the Observer in
connection with attendance of any meeting of the Board. 
 2.10 Employee Stock. With respect to any shares issued or
options or rights granted to employees after the date hereof, unless otherwise approved by the Board, the Company shall cause each employee of the Company to enter into an agreement providing for vesting of such shares or options or rights over
forty-eight (48) months, with no shares or options or rights being vested for twelve (12) months from the date of commencement of services in the case of stock or option grants for new hires, or the date of issuance or grant in the case of
subsequent stock or option grants, at which time 1/4th of the shares or options or rights shall be vested and 1/36th of the remaining shares, options or rights shall be vested monthly thereafter. Any options providing for early exercise and any
grant of restricted stock shall provide for a repurchase option so that upon termination of the employment relationship of the stockholder, the Company or its assignee (to the extent permissible under applicable securities law qualification) retains
the option to repurchase at cost any unvested shares held by such stockholder. 
 2.11 Termination of Covenants. The
covenants of the Company set forth in this Section 2 shall be terminated and be of no further force or effect upon the earlier of (a) the closing of the first Qualified Public Offering, (b) the closing of a sale, lease, or other
disposition of all or substantially all of the Company’s assets or the Company’s merger into or consolidation with any other corporation or other entity, or any other corporate reorganization, in which the holders of the Company’s
outstanding voting stock immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the corporation or other entity surviving such transaction,
provided that this Section 2.11 shall not apply to a merger effected exclusively for the purpose of changing the domicile of the Company or a sale of shares by the Company for primarily equity financing purposes, and (c) the date
when no shares of Registrable Securities or Convertible Securities shall be outstanding. 
  

	SECTION 3.	REGISTRATION RIGHTS 

 3.1
Demand Registration. 
 3.1.1. Request for Registration on Form other than Form S-3. Subject to the terms of this
Agreement, in the event that the Company shall receive from the Initiating Holders at any time after the earlier of (i) three (3) years after the date of this Agreement and (ii) six (6) months after the effective date of the
Company’s initial public offering of shares of Common Stock under a Registration Statement, a written request that the Company effect any Registration with respect to all or a part of the Registrable Securities on a form other than Form S-3 for
an offering reasonably anticipated to have an aggregate offering price to the public which would exceed Five Million Dollars ($5,000,000), the Company shall (i)

  
 - 6 -

 
promptly give written notice of the proposed Registration to all other Holders and shall (ii) as soon as practicable, use its reasonable best efforts to effect Registration of the
Registrable Securities specified in such request, together with any Registrable Securities of any Holder joining in such request as are specified in a written request given within twenty (20) days after written notice from the Company. The
Company shall not be obligated to take any action to effect any such Registration pursuant to this Section 3.1.1: 
 (i)
after the Company has effected two (2) such Registrations pursuant to this Section 3.1.1 and such Registrations have been declared effective; provided that either (A) the conditions of Section 3.4(a) have been satisfied or
(B) the registration statements continue to remain effective and there are no stop orders in effect with respect to such registration statements; 
 (ii) during the period starting with the date of filing of, and ending on the date one hundred eighty (180) days following the effective date of the registration statement pertaining to the
Company’s initial public offering, other than pursuant to a Special Registration Statement; provided that the Company makes reasonable good faith efforts to cause such registration statement to become effective; 

(iii) if within thirty (30) days of receipt of a written request from the Initiating Holders pursuant to Section 3.1.1, the
Company gives notice to the Holders of the Company’s intention to file a registration statement for a public offering, other than pursuant to a Special Registration Statement, within ninety (90) days; or 

(iv) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3
pursuant to a request made pursuant to Section 3.1.3 below. 
 3.1.2. Right of Deferral of Registration on Form other
than Form S-3. If the Company shall furnish to all such Holders who joined in the request a certificate signed by the President of the Company stating that, in the good faith judgment of the Board, it would be seriously detrimental to the
Company for any Registration to be effected as requested under Section 3.1.1, the Company shall have the right to defer the filing of a Registration Statement with respect to such offering for a period of not more than ninety (90) days
from delivery of the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve (12)-month period. 
 3.1.3. Request for Registration on Form S-3. Subject to the terms of this Agreement, in the event that the Company receives from one or more Holders a written request that the Company effect any
Registration on Form S-3 (or any successor form to Form S-3 regardless of its designation) at a time when the Company is eligible to Register securities on Form S-3 (or any successor form to Form S-3 regardless of its designation) for an offering of
Registrable Securities which such Holders in their good faith discretion determine would have an anticipated offering price of at least One Million Dollars ($1,000,000), the Company will promptly give written notice of the proposed Registration to
all the Holders and will as soon as practicable use its best efforts to effect Registration of the Registrable Securities specified in such request, together with all or such portion of the Registrable Securities of any Holder joining in such
request as are specified in a written request delivered to the Company within thirty (30) days after written notice from the Company of the proposed Registration. There shall be no limit to the number of occasions on which the Company shall be
obligated to effect Registration under this Section 3.1.3, but the Company shall not be required to effect more than two (2) such Registrations in any twelve (12)-month period. Notwithstanding the foregoing, the Company shall not be
obligated to effect any Registration pursuant to this Section 3.1.3: 
 (i) if Form S-3 is not available for such offering
by the Holders; 

  
 - 7 -

 (ii) if the Holders, together with the holders of any other securities of the Company
entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public of less than One Million Dollars ($1,000,000); 

(iii) if within thirty (30) days of receipt of a written request from any Holder or Holders pursuant to this Section 3.1.3,
the Company gives notice to such Holder or Holders of the Company’s intention to make a public offering within ninety (90) days, other than pursuant to a Special Registration Statement; or 

(iv) if the Company shall furnish to the Holders a certificate signed by the President of the Company stating that, in the good faith
judgment of the Board, it would be seriously detrimental to the Company for any Registration to be effected as requested under Section 3.1.3, the Company shall have the right to defer the filing of a Registration Statement with respect to such
offering for a period of not more than ninety (90) days from delivery of the request of the Holders requesting such Registration; provided, however, that the Company may not utilize this right more than once in any twelve (12)-month
period. 
 3.1.4. Registration of Other Securities in Demand Registration. Any Registration Statement filed pursuant to
the request of the Initiating Holders under this Section 3 may, subject to the provisions of Section 3.1.5, include securities of the Company other than Registrable Securities. 

3.1.5. Underwriting in Demand Registration. 
 a. Notice of Underwriting. 
 If the Initiating Holders intend to
distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company, as a part of their request made pursuant to this Section 3.1, and the Company shall include such information in the
written notice referred to in Section 3.1.1 or 3.1.3. The right of any Holder to Registration pursuant to Section 3 shall be conditioned upon such Holder’s agreement to participate in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting. 
 b. Inclusion of other Holders in Demand Registration.

 If the Company, officers or directors of the Company holding Common Stock other than Registrable Securities or holders of
securities issued by the Company other than Registrable Securities, request inclusion in such Registration, the Initiating Holders, to the extent they deem advisable and consistent with the goals of such Registration, shall, on behalf of all
Holders, offer to any or all of the Company, such officers or directors and such holders of securities other than Registrable Securities that such securities other than Registrable Securities be included in the underwriting and may condition such
offer on the acceptance by such persons of the terms of this Section 3.1. 
 c. Selection of Underwriter in Demand
Registration. 
 The Company shall (together with all Holders proposing to distribute their securities through such
underwriting) enter into an underwriting agreement with the representative (“Underwriter’s Representative”) of the underwriter or underwriters selected for such underwriting by the Holders of a majority of the Registrable
Securities being Registered by the Initiating Holders and agreed to by the Company, which agreement shall not be unreasonably withheld or delayed. 

  
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 d. Marketing Limitation in Demand Registration. 

In the event the Underwriter’s Representative advises the Initiating Holders in writing that market factors (including, without
limitation, the aggregate number of shares of Common Stock requested to be Registered, the general condition of the market, and the status of the persons proposing to sell securities pursuant to the Registration) require a limitation of the number
of shares to be underwritten, then (i) first the securities other than Registrable Securities and (ii) next the securities requested to be registered by the Company, shall be excluded from such Registration to the extent required by such
limitation. If a limitation of the number of shares is still required, the Initiating Holders shall so advise all Holders and the number of shares of Registrable Securities that may be included in the Registration and underwriting shall be allocated
among all Holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities entitled to inclusion in such Registration held by such Holders at the time of filing the Registration Statement. No Registrable
Securities or other securities excluded from the underwriting by reason of this Section 3.1.5(d) shall be included in such Registration Statement. To facilitate the allocation of shares in accordance with the above provisions, the Company or
the Underwriter’s Representative may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. 
 e. Right of Withdrawal in Demand Registration. 
 If any Holder of
Registrable Securities, or a holder of other securities entitled (upon request) to be included in such Registration, disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by written notice to the Company, the
underwriter and the Initiating Holders delivered at least seven (7) business days prior to the effective date of the Registration Statement. The securities so withdrawn shall also be withdrawn from the Registration Statement. 

3.1.6. Blue Sky in Demand Registration. In the event of any Registration pursuant to Section 3.1, the Company will exercise
its reasonable best efforts to Register and qualify the securities covered by the Registration Statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably appropriate for the distribution of such securities;
provided, however, that (i) the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, and (ii) notwithstanding anything in this Agreement to
the contrary, in the event any jurisdiction in which the securities shall be qualified imposes a non-waivable requirement that expenses incurred in connection with the qualification of the securities be borne by selling stockholders, such expenses
shall be payable pro rata by selling stockholders. 

  
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 3.2 Piggyback Registration. 

3.2.1. Notice of Piggyback Registration and Inclusion of Registrable Securities. Subject to the terms of this Agreement, in the
event the Company decides to Register any of its Common Stock (either for its own account or the account of a security holder or holders exercising their respective demand Registration rights) on a form (other than a Registration on Form S-4 and
Form S-8, as those forms are issued by the Commission or any substantially similar forms then in effect) that would be suitable for a Registration involving solely Registrable Securities, the Company will: (i) promptly give each Holder written
notice thereof (which shall include a list of the jurisdictions in which the Company intends to attempt to qualify such securities under the applicable Blue Sky or other state securities laws) and (ii) include in such Registration (and any
related qualification under Blue Sky laws or other compliance), and in any underwriting involved therein, all the Registrable Securities specified in a written request delivered to the Company by any Holder within fifteen (15) days after
delivery of such written notice from the Company. 
 3.2.2. Underwriting in Piggyback Registration. 

a. Notice of Underwriting in Piggyback Registration. 
 If the Registration of which the Company gives notice pursuant to Section 3.2.1 is for a Registered public offering involving an underwriting, the Company shall so advise the Holders as a part of the
written notice given pursuant to Section 3.2.1. In such event the right of any Holder to Registration shall be conditioned upon such underwriting and the inclusion of such Holder’s Registrable Securities in such underwriting to the extent
provided in this Section 3. All Holders proposing to distribute their securities through such underwriting shall (together with the Company and the other holders distributing their securities through such underwriting) enter into an
underwriting agreement with the Underwriter’s Representative for such offering. The Holders shall have no right to participate in the selection of the underwriters for an offering pursuant to this Section 3.2. 

b. Marketing Limitation in Piggyback Registration. 
 In the event the Underwriter’s Representative advises the Holders seeking Registration of Registrable Securities pursuant to Section 3.2 in writing that market factors (including, without
limitation, the aggregate number of shares of Common Stock requested to be Registered, the general condition of the market, and the status of the persons proposing to sell securities pursuant to the Registration) require a limitation of the number
of shares to be underwritten, the Underwriter’s Representative (subject to the allocation priority set forth in Section 3.2.2(c)) may: 
 i. in the case of the Company’s initial Registered public offering, exclude some or all Registrable Securities from such Registration and underwriting; and 

ii. in the case of any subsequent registered public offering, limit the number of shares of Registrable Securities to be included in
such Registration and underwriting to not less than twenty percent (20%) of the securities included in such Registration (based on aggregate market values). 
 c. Allocation of Shares in Piggyback Registration. 
 In the event that the
Underwriter’s Representative limits the number of shares to be included in a Registration pursuant to Section 3.2.2(b), the number of shares to be included in such Registration shall be allocated (subject to Section 3.2.2(b)) in the
following manner: The number of 

  
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shares, if any, that may be included in the Registration and underwriting by selling stockholders shall first be allocated among all the requesting Holders pro rata according to the respective
amounts of Registrable Securities entitled to be included in such offering by such requesting Holders and then among all other holders of securities other than Registrable Securities requesting and legally entitled to include shares in such
Registration, in proportion, as nearly as practicable, to the respective amounts of securities (including Registrable Securities) which such Holders and such other holders would otherwise be entitled to include in such Registration. No Registrable
Securities or other securities excluded from the underwriting by reason of this Section 3.2.2(c) shall be included in the Registration Statement. To facilitate the allocation of shares in accordance with the above provisions, the Company or the
Underwriter’s Representative may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. 
 d. Withdrawal in Piggyback Registration. 
 If any Holder disapproves of
the terms of any such underwriting, he may elect to withdraw therefrom by written notice to the Company and the underwriter delivered at least seven (7) business days prior to the effective date of the Registration Statement. Any Registrable
Securities or other securities excluded or withdrawn from such underwriting shall be withdrawn from such Registration. 
 3.2.3.
Blue Sky in Piggyback Registration. In the event of any Registration of Registrable Securities pursuant to Section 3.2, the Company will exercise its best efforts to Register and qualify the securities covered by the Registration
Statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably appropriate for the distribution of such securities; provided, however, that (i) the Company shall not be required to qualify to do
business or to file a general consent to service of process in any such states or jurisdictions, and (ii) notwithstanding anything in this Agreement to the contrary, in the event any jurisdiction in which the securities shall be qualified
imposes a non-waivable requirement that expenses incurred in connection with the qualification of the securities be borne by selling stockholders, such expenses shall be payable pro rata by selling stockholders. 

3.3 Expenses of Registration. All Registration Expenses incurred in connection with two (2) Registrations pursuant to
Section 3.1.1, all Registrations pursuant to Section 3.1.3 (Form S-3) and all Registrations pursuant to Section 3.2 shall be borne by the Company. All Registration Expenses incurred in connection with any other registration,
qualification or compliance shall be apportioned among the Holders and other holders of the securities so registered on the basis of the number of shares so registered. Notwithstanding the above, the Company shall not be required to pay for any
expenses of any Registration proceeding begun pursuant to Section 3.1 if the Registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be Registered (which Holders shall bear
such expenses), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one (1) demand Registration pursuant to Section 3.1; provided further, however, that if at the time of such withdrawal,
the Holders have learned of a Material Adverse Event either (i) not known to the Holders at the time of their request or (ii) not made known to the Holders within fifteen (15) days after their request, then the Holders shall not be
required to pay any of such expenses and shall retain their rights pursuant to Section 3.1. All Selling Expenses relating to securities held by stockholders and being sold in such registration shall be borne by the respective holders of such
securities Registered pro rata on the basis of the number of shares registered. 

  
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 3.4 Registration Procedures. In the case of each registration, qualification or
compliance effected by the Company pursuant to this Section 3, the Company will: 
 (a) Keep each Holder whose Registrable
Securities are included in any Registration pursuant to this Agreement advised as to the initiation and completion of such Registration. At its expense the Company will: (i) use its best efforts to keep such Registration effective for a period
of one hundred twenty (120) days or until the Holder or Holders have completed the distribution described in the Registration Statement relating thereto, whichever first occurs; and (ii) furnish such number of prospectuses (including
preliminary prospectuses) in conformity with the Securities Act and such other documents as a Holder from time to time may reasonably request. With respect to clause (i) of the preceding sentence, the Company may at any time upon written notice
to the participating Holders and for a period not to exceed sixty (60) days thereafter (the “Suspension Period”) delay the filing or effectiveness of any registration statement or suspend the use or effectiveness of any
registration statement (and the Holders hereby agree not to offer or sell any Registrable Securities pursuant to such registration statement during the Suspension Period) if the Company reasonably believes that the Company may, in the absence of
such delay or suspension hereunder, be required under state or federal securities laws to disclose any corporate development the disclosure of which could reasonably be expected to have an adverse effect upon the Company, its stockholders, a
potentially significant transaction or event involving the Company, or any negotiations, discussions, or proposals directly relating thereto. In the event that the Company shall exercise its rights hereunder, the applicable time period during which
the registration statement is to remain effective shall be extended by a period of time equal to the duration of the Suspension Period. The Company may extend the Suspension Period for an additional consecutive sixty (60) days with the consent
of the holders of a majority of the Registrable Securities proposed to be sold by the Holders in the applicable Registration, which consent shall not be unreasonably withheld. If so directed by the Company, the Holders shall use their best efforts
to deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holders’ possession, of the prospectus relating to such Registrable Securities current at the time of receipt of such notice.

 (b) Prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus
used in connection with such registration statements as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for the periods specified in
Section 3.4(a) above; 
 (c) Promptly notify each Holder of Registrable Securities covered by the registration statement at
any time when the Company becomes aware of the happening of any event as a result of which the registration statement or the prospectus included in such registration statement or any supplement to the prospectus (as then in effect) contains any
untrue statement of a material fact or omits to state a material fact necessary to make the statements therein (in the case of the prospectus, in light of the circumstances under which they were made) not misleading or, if for any other reason it
shall be necessary during such time period to amend or supplement the registration statement or the prospectus in order to comply with the Securities Act, whereupon, in either case, each Holder shall immediately cease to use such registration
statement or prospectus for any purpose and, as promptly as practicable thereafter, the Company shall prepare and file with the Commission, and furnish without charge to the appropriate Holders and managing underwriters, if any, a supplement or
amendment to such registration statement or prospectus which will correct such statement or omission or effect such compliance and such copies thereof as the Holders and any underwriters may reasonably request; 

(d) Use its best efforts to register and qualify the 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, provided 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 except as may be required by law; 

  
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 (e) Cause all such Registrable Securities to be listed on each securities exchange on which
similar securities issued by the Company are then listed; 
 (f) Provide a transfer agent and registrar for all Registrable
Securities and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; 
 (g) In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering.
Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement; and 

(h) Use its best efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this
Section 3, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 3, if such securities are being sold through underwriters, or, if such securities
are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and (ii) a letter dated
such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters,
if any, and to the Holders requesting registration of Registrable Securities (to the extent the then applicable standards of professional conduct permit said letter to be addressed to the Holders). 

3.5 Information Furnished by Holder. It shall be a condition precedent of the Company’s obligations under this Agreement that
each Holder of Registrable Securities included in any Registration furnish to the Company such information regarding such Holder and the distribution proposed by such Holder or Holders as the Company may reasonably request. 

3.6 Indemnification. 
 3.6.1. Company’s Indemnification of Holders. To the extent permitted by law, the Company will indemnify each Holder, each of its officers, directors and constituent partners, members,
managers, legal counsel for the Holders, and each person controlling such Holder, with respect to which Registration, qualification or compliance of Registrable Securities has been effected pursuant to this Agreement, and each underwriter, if any,
and each person who controls any underwriter, against all claims, losses, damages or liabilities (or actions in respect thereof) to the extent such claims, losses, damages or liabilities arise out of or are based upon any untrue statement (or
alleged untrue statement) of a material fact contained in any prospectus or other document (including any related Registration Statement) incident to any such Registration, qualification or compliance, or are based on any 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 any violation by the Company of any rule or regulation promulgated under the Securities Act or Exchange Act or
state or federal law applicable to the Company and relating to action or inaction required of the Company in connection with any such Registration, qualification or compliance; and the Company will reimburse each such Holder, each of its officers,
directors and constituent partners, members, managers, legal counsel for the Holders, each such underwriter and each person who controls any such Holder or underwriter for any legal and any other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action; provided, however, that the indemnity contained in this Section 3.6.1 shall not apply to amounts paid in

  
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settlement of any such claim, loss, damage, liability or action if settlement is effected without the consent of the Company (which consent shall not unreasonably be withheld); and provided
further, that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based upon any untrue statement or omission based upon written information furnished to the
Company by such Holder, underwriter, or controlling person and stated to be for use in connection with the offering of securities of the Company. 
 3.6.2. Holder’s Indemnification of Company. To the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such
Registration, qualification or compliance is being effected pursuant to this Agreement, indemnify the Company, each of its directors and officers who has signed the registration statement, each underwriter, if any, of the Company’s securities
covered by such a Registration Statement, each person who controls the Company or such underwriter within the meaning of the Securities Act, and each other such Holder, each of its officers, directors and constituent partners, members, managers and
each person controlling such other Holder, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based upon any untrue statement (or alleged untrue statement) of a material fact contained in any such
Registration Statement, prospectus, offering circular or other document, or any 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 any
violation by such Holder of any rule or regulation promulgated under the Securities Act or Exchange Act or state or federal law applicable to such Holder and relating to action or inaction required of such Holder in connection with any such
Registration, qualification or compliance; and will reimburse the Company, such Holders, such directors, officers, partners, persons, underwriters or control persons for any legal and any other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Registration
Statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company, and duly executed, by such Holder and stated to be specifically for use in connection with the offering
of securities of the Company; provided, however, that the indemnity contained in this Section 3.6.2 shall not apply to amounts paid in settlement of any such claim, loss, damage, liability or action if settlement is effected without the
consent of such Holder (which consent shall not unreasonably be withheld); and provided further, that each Holder’s liability under this Section 3.6.2 shall be several, and not joint with other Holders, and shall not exceed such
Holder’s net proceeds from the offering of securities made in connection with such Registration. 
 3.6.3.
Indemnification Procedure. Promptly after receipt by an indemnified party under this Section 3.6 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party under this Section 3.6, notify the indemnifying party in writing of the commencement thereof and generally summarize such action. The indemnifying party shall have the right to participate in and to assume the defense of such
claim; provided, however, that the indemnifying party shall be entitled to select counsel for the defense of such claim with the approval of any parties entitled to indemnification, which approval shall not be unreasonably withheld;
provided further, however, that if either party reasonably determines that there may be a conflict between the position of the indemnifying party and the indemnified party in conducting the defense of such action, suit or proceeding by reason
of recognized claims for indemnity under this Section 3.6, then counsel for such party shall be entitled to conduct the defense to the extent reasonably determined by such counsel to be necessary to protect the interest of such party. The
failure to notify an indemnifying party promptly of the commencement of any such action, if prejudicial to the ability of the indemnifying party to defend such action, shall relieve such indemnifying party, to the extent so prejudiced, of any
liability to the indemnified party under this Section 3.6, but the omission so to notify the indemnifying party will not relieve such party of any liability that such party may have to any indemnified party otherwise other than under this
Section 3.6. 

  
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 3.6.4. Contribution. If the indemnification provided for in this Section 3.6 is
held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations; provided that, in no event
shall any contribution by a Holder under this Subsection 3.6 exceed the net proceeds from the offering received by such Holder. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 3.6.5. Underwriting
Agreement. Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the
foregoing provisions, the provisions in the underwriting agreement shall control. 
 3.6.6. Survival. The obligations of
the Company and Holders under this Section 3.6 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 3, and otherwise. No indemnifying party, in defense of any claim of
litigation set forth under this Section 3.6, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation. 
 3.7
Limitations on Registration Rights Granted to Other Securities. From and after the date of this Agreement, the Company shall not enter into any other agreement with any holder or prospective holder of any securities of the Company providing
for the granting to such holder of any information or Registration rights, except that, with the consent of the Holders of at least sixty-six and two-thirds percent (66 2/3%) of the Registrable Securities then outstanding, additional holders may be
added as parties to this Agreement with regard to any or all securities of the Company held by them. Any such additional parties shall execute a counterpart of this Agreement, and upon execution by such additional parties and by the Company, shall
be considered an Investor for all purposes of this Agreement. The additional parties and the additional Registrable Securities shall be identified in an amendment to Schedule A hereto. 

3.8 Transfer of Rights. The rights to information under Section 2 and the right to cause the Company to Register securities
granted by the Company to the Investors under Sections 3.1 and 3.2 may be assigned by any Holder to a transferee or assignee of any Convertible Securities or Registrable Securities not sold to the public acquiring at least One Hundred Twenty-Five
Thousand (125,000) shares of such Holder’s Registrable Securities (equitably adjusted for all stock splits, subdivisions, stock dividends, combinations and the like with respect to such shares); provided, however, that (i) the
Company must receive written notice prior to the time of said transfer, stating the name and address of said transferee or assignee and identifying the securities with respect to which such rights are being assigned, and (ii) with respect to
the rights to information and inspection under Section 2, the transferee or assignee of such rights must not be a person deemed by the Board, in its best judgment, to be a competitor or potential competitor of the Company. Notwithstanding the
limitation set forth in the foregoing sentence respecting the minimum number of shares which must be transferred, (a) any Holder which is a partnership may transfer such Holder’s rights to such Holder’s constituent partners, retired
partners (including spouses, ancestors, lineal descendants and siblings of such partners or spouses who 

  
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acquire Convertible Securities or Registrable Securities by gift, will or intestate succession), (b) any Holder which is a limited liability company may transfer such Holder’s rights to
such Holder’s constituent members or retired members (including spouses, ancestors, lineal descendants and siblings of such members or spouses who acquire Convertible Securities or Registrable Securities by gift, will or intestate succession),
(c) any Holder which is a natural person may transfer such Holder’s rights to any immediate family member or to any trust created for the benefit of such Holder or his or her immediate family members, (d) any Holder that is a
partnership or limited liability company may transfer such Holder’s rights to an Affiliate, subject in each case to such transferee’s agreeing to be bound by the rights and restrictions of this Agreement, and (e) any Holder may
transfer such Holder’s rights to any other Holder who has the right to cause the Company to Register securities granted by the Company to the Investors under Sections 3.1 and 3.2. The rights under Sections 4 and 5 may be assigned by an Investor
only as provided in such Sections. 
 3.9 Market Stand-off. If requested in writing by the underwriters for the initial
public offering of the Company’s Common Stock, each holder of Registrable Securities who is a party to this Agreement shall agree not to sell publicly any shares of Registrable Securities or any other securities of the Company (other than
shares of Registrable Securities or other securities of the Company being registered in such offering), without the consent of such underwriters, for a period of not more than one hundred eighty (180 days) following the effective date of the
registration statement relating to such offering; provided, however, that the Company shall use commercially reasonable efforts to convince such managing underwriters to allow for alternative means of liquidity for the holders if, in the
opinion of such managing underwriters, such liquidity can be provided without an adverse impact on such initial public offering; and, provided, further, however, that all persons entitled to registration rights with respect to shares of
Common Stock who are not parties to this Agreement, all other persons selling shares of Common Stock in such offering and all executive officers and directors of the Company and holders of at least one percent (1%) of the Company’s voting
securities shall also have agreed not to sell publicly their Common Stock under the circumstances and pursuant to the terms set forth in this section. Each Holder agrees to execute and deliver such other agreements as may be reasonably requested by
the Company, or the Company’s underwriters, which are consistent with the foregoing, or which are reasonably necessary to give further effect thereto. 
 3.10 Sale of Convertible Securities to Underwriter. Notwithstanding any provision in this Agreement to the contrary, in lieu of converting any Convertible Securities prior to the filing of any
Registration Statement filed pursuant to this Agreement, the holder of such Convertible Securities may sell such Convertible Securities to the underwriters of the offering being Registered upon the undertaking of such underwriters to convert the
Convertible Securities on or prior to the closing date of the offering. If and when the Convertible Securities are converted in accordance with their applicable terms and conditions, the Company agrees to cause the Common Stock issuable on the
conversion of the Convertible Securities to be issued within such time period as will permit the underwriters to make and complete the distribution contemplated by the underwriting. 

3.11 Rule 144 Requirements. Immediately after the date on which a Registration Statement filed by the Company under the Securities
Act becomes effective, the Company shall undertake to make publicly available, and available to the Holders of Registrable Securities, such information as is necessary to enable the holders of Registrable Securities to make sales of Registrable
Securities pursuant to Rule 144 of the Commission under the Securities Act. The Company shall furnish to any holder of Registrable Securities, upon request, a written statement executed by the Company as to the steps it has taken to comply with the
current public information requirements of Rule 144. 
 3.12 Termination of Company Agreements. The Registration
rights set forth in Sections 3.1 and 3.2 shall terminate seven (7) years after the effective date of the Company’s Registration Statement 

  
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filed in connection with the Company’s first Qualified Public Offering or, as to any Holder, at any time following the effective date of the Company’s first Qualified Public Offering,
when such Holder is entitled to sell all of such Investor’s Registrable Securities pursuant to Rule 144 (including Rule 144(k)) of the Commission under the Securities Act. 

 

	SECTION 4.	RIGHT OF FIRST REFUSAL 

4.1 Right of First Refusal. The Company hereby grants to each Investor the right of first refusal to purchase such Investor’s
pro rata share of New Securities (as defined in Section 4.2) which the Company may from time to time propose to sell and issue (the “Right of First Refusal”); provided that the Investors may waive the Right of First
Refusal as to all Investors with the consent of the Investors holding at least sixty-six and two-thirds percent (66 2/3%) of the Convertible Securities then outstanding. For purposes of the Right of First Refusal an Investor’s pro rata share
(the “ROFR Pro Rata Share”) shall be equal to that number or amount of New Securities to be sold multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock owned by such Investors (including
shares of Common Stock issuable upon the conversion of all Convertible Securities and the exercise of all options and warrants owned by such Investor) and the denominator of which shall be the total number of shares of the Company’s Common
Stock deemed to be outstanding assuming the conversion of all outstanding convertible securities. Notwithstanding the foregoing, any Investor (the “Subscribing Investor”) may, at the time it accepts the Company’s offer,
subscribe to purchase any or all of the securities offered (“Oversubscription Securities”) which may be available as a result of the rejection, or partial rejection, of the offer by other Investors. All such Oversubscription
Securities shall be allocated on a pro rata basis among those Investors subscribing to purchase them. For purposes of the Oversubscription Securities a Subscribing Investor’s pro rata share (the “Oversubscription Pro Rata
Share”) shall be equal to that number or amount of Oversubscription Securities to be sold multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock owned by such Subscribing Investor (including shares of
Common Stock issuable upon the conversion of all Convertible Securities and the exercise of all options and warrants owned by such Investor) and the denominator of which shall be the total number of shares of the Common Stock owned in aggregate by
all of the Subscribing Investors (including shares of Common Stock issuable upon the conversion of all Convertible Securities and the exercise of all options and warrants owned by such Investors). Notwithstanding the foregoing, the Company shall not
be required to offer or sell such New Securities to any Investor who would cause the Company to be in violation of applicable federal securities laws by virtue of such offer or sale. The Right of First Refusal shall be subject to the following
provisions: 
 4.2 Definition of New Securities. “New Securities” shall mean any shares of Common Stock
or Preferred Stock of the Company, whether now authorized or not, and rights, options, or warrants to purchase such shares of Common Stock or Preferred Stock, and all other securities having equity features, such as convertible notes or notes issued
in conjunction with options or warrants; provided that “New Securities” shall not include: 
 (a)
securities issued upon the conversion of any shares of the Series A Preferred Stock; 
 (b) securities issued to the
Company’s employees or officers or directors or outside consultants or contractors pursuant to a plan, agreement or arrangement duly approved by the Board; 
 (c) securities issued pursuant to a Qualified Public Offering; 
 (d) securities
issued or issuable pursuant to the exercise or conversion of options, warrants or convertible securities (including, without limitation, the Convertible Promissory Notes) outstanding as of the date hereof; 

  
 - 17 -

 (e) securities issued to effect any stock split, stock dividend or recapitalization of the
Company; 
 (f) securities issued in connection with any borrowings, direct or indirect, from financial institutions or other
persons by the Company, provided that such issuance is pursuant to an agreement or arrangement duly approved by the Board; 
 (g) securities issued in connection with the Company obtaining lease financing, whether issued to a lessor, guarantor or other person, provided that such issuance is pursuant to an agreement or
arrangement duly approved by the Board; 
 (h) securities issued in connection with the acquisition of all or a substantial
portion of the assets or the business of another entity by the Company provided that such issuance is pursuant to an agreement or arrangement duly approved by the Board; 

(i) securities issued in connection with a corporate partnering transaction, strategic alliance, technology acquisition or transfer, or
similar transaction, provided such issuance is pursuant to an agreement or arrangement duly approved by the Board; and 

(j) any right, option or warrant to acquire any security convertible into the securities excluded from the definition of New Securities
pursuant to subsections (a) through (i) above. 
 4.3 Notices. In the event the Company proposes to undertake
an issuance of New Securities, it shall give each Investor written notice (the “Notice”) of its intention, describing the type of New Securities, the price, and the principal terms upon which the Company proposes to issue the same.
Each Investor shall have twenty (20) days from the delivery of the Notice to agree to purchase up to the Investor’s ROFR Pro Rata Share plus any Oversubscription Pro Rata Share for the price and upon the terms specified in the Notice by
giving written notice to the Company and stating therein the quantity of New Securities and Oversubscription Securities to be purchased. 
 4.4 Failure to Exercise Right. In the event an Investor does not elect to purchase all of such Investor’s ROFR Pro Rata Share of the New Securities pursuant to Section 4.1 and such New
Securities are not purchased by other Investors, the Company shall have sixty (60) days after the last date on which any Investor’s right to purchase lapsed to sell or enter into an agreement (pursuant to which the sale of New Securities
covered thereby shall be closed, if at all, within twenty (20) days from the date of said agreement) to sell the New Securities respecting which such Investor’s option was not exercised, at or above the price and upon terms not materially
more favorable to the purchasers of such securities than the terms specified in the initial Notice given in connection with such sale. In the event the Company has not sold the New Securities within said 60-day period (or sold and issued New
Securities in accordance with the foregoing within twenty (20) days from the date of said agreement), the Company shall not thereafter issue or sell any New Securities without first offering such New Securities to the Investors in the manner
provided in this Section 4. 
 4.5 Rights of Affiliated Investors. For the purposes of this Section 4,
Investors who are Affiliates of one or more other Investors shall, at the election of an Investor and one or more such Affiliates, be treated as a group (an “Investor Group”). Members of an Investor Group shall have the right to
reallocate the rights granted by this Section 4 among themselves as they determine. 
 4.6 Assignment. The Right of
First Refusal set forth in this Section 4 may not be assigned or transferred, except that each Investor shall have the right to assign its right to purchase securities under this Section 4 to any Affiliate of such Investor, partner,
member, retired partner or retired member; provided such Affiliate agrees in writing with the Company and the Investors, prior to and as a condition precedent to such transfer, to be bound by all the provisions of Sections 3.9, 5 and 6 of
this Agreement. 

  
 - 18 -

 4.7 Termination. The Right of First Refusal granted under this Section 4 shall
not apply to, and shall terminate on and be of no further force or effect upon the earlier of (a) the closing of the first Qualified Public Offering and (b) the date of the closing of a sale, lease, or other disposition of all or
substantially all of the Company’s assets or the Company’s merger into or consolidation with any other corporation or other entity, or any other corporate reorganization, in which the holders of the Company’s outstanding voting stock
immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the corporation or other entity surviving such transaction, provided that this
Section 4.7 shall not apply to a merger effected exclusively for the purpose of changing the domicile of the Company or a sale of shares by the Company for primarily equity financing purposes. 

 

	SECTION 5.	TRANSFERS OF SECURITIES BY INVESTORS. 

 5.1 Notices. If any Investor (the “Transferor”) proposes to sell, assign, hypothecate or otherwise transfer (a “Transfer”) any securities of the Company owned by
such Investor from and after the date of this Agreement, other than pursuant to the provisions of Section 5.6 of this Agreement, the Transferor shall first give each of the other Investors the right to purchase such securities by delivering to
them a written offer which shall state the price and other terms and conditions of the proposed Transfer. If the Transferor proposes to Transfer the securities for consideration other than solely cash and/or promissory notes, the offer to the
Investors shall, to the extent of such consideration, permit each Investor to pay in lieu thereof, cash equal to the fair market value of such consideration, and the offer shall state the estimate of such fair market value as determined by the
Board. The Transferor shall fix the period of the offer which shall be a minimum of thirty (30) days or such longer period as is necessary to determine the fair market value of the consideration referred to in the preceding sentence.

 5.2 Acceptance of Offer. An Investor may accept an offer (“Purchasing Investor”) only by giving
written notice to the Transferor before the offer expires that such Purchasing Investor has accepted the offer to purchase some or all of the securities offered (the “Accepted Securities”); provided, however, that the maximum
number or amount of securities a Purchasing Investor shall be entitled to purchase shall be equal to that number or amount of securities to be transferred multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock
owned by such Purchasing Investor (including shares of Common Stock issuable upon the conversion of all Convertible Securities and the exercise of all options and warrants owned by such Investor) and the denominator of which shall be the aggregate
number of shares of Common Stock held by all Investors (including shares of Common Stock issuable upon the conversion of all Convertible Securities and the exercise of all options and warrants owned by all Investors), excluding the Transferor’s
shares of Common Stock. Notwithstanding the foregoing, any Purchasing Investor may, at the time it accepts the offer, subscribe to purchase any or all securities offered which may be available as a result of the rejection, or partial rejection, of
the offer by other Investors, which securities shall be allocated on a pro rata basis among those Purchasing Investors subscribing to purchase them. 
 5.3 Allocation of Securities and Payment. Promptly following the expiration of an offer, the Transferor shall allocate the securities subscribed for among the Purchasing Investors accepting or
partially accepting the offer, pro rata, based upon their respective holdings as aforesaid, and shall by written notice (the “Acceptance Notice”) advise all Purchasing Investors of the number or amount of securities allocated to
each of the Purchasing Investors. Within ten (10) days following receipt of the Acceptance Notice, each of the Purchasing Investors shall deliver to the Transferor payment in full for the Accepted Shares purchased by it against delivery by the
Transferor to each Purchasing Investor of a certificate or certificates evidencing the Accepted Securities purchased by it. 

  
 - 19 -

 5.4 Failure to Exercise. To the extent an offer pursuant to Section 5.1 is not
accepted by the other Investors, the Transferor may, for a period of ninety (90) days thereafter, transfer the unaccepted securities, or any of them, at or above the price, and upon the other terms and conditions specified in such offer, to any
Person or Persons; provided that such Person or Persons agrees in writing with the Company and the Investors, prior to and as a condition precedent to such Transfer, to be bound by all of the provisions of Sections 3.9, 5 and 6 of this
Agreement and the provisions of the Voting Agreement. 
 5.5 Assignment. The right of first refusal set forth in this
Section 5 may not be assigned or transferred, except that each Investor shall have the right to assign its rights to purchase such securities under this Section 5 to any Affiliate of such Investor; provided such Affiliate agrees in
writing with the Company and the Investors, prior to and as a condition precedent to such assignment, to be bound by all of the provisions of Sections 3.9, 5 and 6 of this Agreement and the provisions of the Voting Agreement. 

5.6 Permitted Transfers. 
 (a) Notwithstanding anything to the contrary contained herein, any Investor which is a partnership may transfer, without first offering any securities of the Company to the other Investors, all or any of
its securities to any of its Affiliates or successor funds or to a partner or retired partner or member or retired member of such partnership or limited liability company, as the case may be, or to one or more direct or indirect partners, members or
other equity holders of any such Affiliates, successor funds, partners or retired partners, members or retired members, or to the estate of any of the foregoing or transfer by will or intestate succession to the spouse or to the siblings, lineal
descendants or ancestors of any of the foregoing or the spouse of any of the foregoing; provided such transferee agrees in writing with the Company and the Investors, prior to and as a condition precedent to such Transfer, to be bound by all
of the provisions of Sections 3.9, 5 and 6 of this Agreement and the provisions of the Voting Agreement. 
 (b) Notwithstanding
anything to the contrary contained herein, any Investor which is a corporation may Transfer, without first offering any securities of the Company to the other Investors, all or any of its securities to any of its Affiliates; provided such
Affiliate agrees in writing with the Company and the Investors, prior to and as a condition precedent to such Transfer, to be bound by all of the provisions of Sections 3.9, 5 and 6 of this Agreement and the provisions of the Voting Agreement.

 (c) Notwithstanding anything to the contrary contained herein, any Investor who is an individual may Transfer, without first
offering any securities of the Company to the other Investors, all or any of his or her securities to his or her spouse or their spouse’s siblings, lineal descendants or ancestors, nieces or nephews, or any entity that is an Affiliate of such
Investor; provided such transferee agrees in writing with the Company and the Investors, prior to and as a condition precedent to such Transfer, to be bound by all of the provisions of Sections 3.9, 5 and 6 of this Agreement and the
provisions of the Voting Agreement. 
 (d) Notwithstanding the foregoing, any Investor may Transfer, without first offering any
securities of the Company to the other Investors, all or any of its securities to one or more other Investors hereunder. 
 5.7
Termination. The right of first refusal granted under this Section 5 shall expire upon the closing of the first Qualified Public Offering and shall not be applicable to any shares sold pursuant thereto. 

  
 - 20 -

	SECTION 6.	MISCELLANEOUS. 

 6.1
Entire Agreement; Successors and Assigns. This Agreement constitutes the entire contract between the Company and the Investors relative to the subject matter hereof. Any previous agreement between the Company, the Investors and the Holders
concerning Registration rights and the other matters set forth herein, is superseded by this Agreement. Subject to the exceptions specifically set forth in this Agreement, the terms and conditions of this Agreement shall inure to the benefit of and
be binding upon the respective executors, administrators, heirs, successors and assigns of the parties. 
 6.2 Aggregation of
Stock. All Convertible Securities and Registrable Securities held or acquired by affiliated entities or persons shall be aggregate together for the purpose of determining the availability of any rights under this Agreement. 

6.3 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA
APPLICABLE TO CONTRACTS ENTERED INTO AND WHOLLY TO BE PERFORMED WITHIN THE STATE OF CALIFORNIA BY CALIFORNIA RESIDENTS. 
 6.4
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

6.5 Headings. The headings of the Sections of this Agreement are for convenience and shall not by themselves determine the
interpretation of this Agreement. 
 6.6 Notices. Any notice required or permitted hereunder shall be given in writing
and shall be conclusively deemed effectively given upon personal delivery, or five (5) days after deposit in the United States mail, by registered or certified mail (or airmail, if notice shall be sent outside the United States), postage
prepaid, or two (2) days after delivery to a nationally known air courier company, addressed (i) if to the Company, to the Company’s address as set forth below the Company’s name on the signature page of this Agreement and
(ii) if to an Investor, to such Investor’s address as set forth on the signature page of this Agreement, or at such other address as the Company or such Investor may designate by ten (10) days, advance written notice to the other
parties hereto. Any notice sent outside the United States shall also be telexed or telecopied. 
 6.7 Amendment of Agreement;
Waivers. Subject to Section 3.7 and Section 4.1, any provision of this Agreement may be amended or waived by a written instrument signed by the Company and by Persons holding at least sixty-six and two-thirds percent (66 2/3%) of,
prior to the closing of the first Qualified Public Offering, the Series A Preferred Stock, and after such closing, the Registrable Securities. Any amendment or waiver effected in accordance with Section 3.7, Section 4.1 or this
Section 6.7 shall be binding upon the Company and all Holders and each of their respective successors and assigns. 
 6.8
Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company shall issue additional shares of its Series A Preferred Stock pursuant to the Purchase Agreement, any purchaser of such shares of Series A
Preferred Stock shall become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement and shall be deemed an “Investor” hereunder and Schedule A shall be amended accordingly.

 [Remainder of Page Intentionally Left Blank] 

  
 - 21 -

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

			
	COMPANY:
	
	EVOKE PHARMA, INC.
		
	By:	 	 /s/ DAVID A. GONYER

		 	David A. Gonyer
		 	President

  

			
	Address:	 	12636 High Bluff Drive, Suite 400
		 	San Diego, California 92130

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written. 
  

							
	INVESTORS:
	
	GARNER INVESTMENTS, L.L.C.
		
	By:	 	 /s/ CAM L. GARNER

		 	Name:	 	Cam L. Garner
		 	Title:	 	President

 

					
		 	Address:	 	 P.O. Box 675866
 5949 Greenview
Court

		 		 	Rancho Santa Fe, CA 92067

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written. 
  

							
	INVESTORS:
	
	WINDAMERE III, LLC
		
	By:	 	 /s/ SCOTT L. GLENN

		 	Name:	 	Scott L. Glenn
		 	Title:	 	Managing Member

 

					
		 	Address:	 	6402 Cardeno Drive
		 		 	La Jolla, CA 92037
		 		 	Fax No.: (858) 456-2295

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written. 
  

							
	INVESTORS:
	
	HALE BIOPHARMA VENTURES, LLC
		
	By:	 	 /s/ DAVID F. HALE

		 	Name:	 	David F. Hale
		 	Title:	 	Chief Executive Officer

 

							
		 	Address:	 	1042-B El Camino Real, Suite 430
		 		 	Encinitas, CA 92024-1322

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written. 
  

					
	INVESTORS:
	
	DOMAIN PARTNERS VII, L.P.
		
	By:	 	One Palmer Square Associates VII, L.L.C.
	Its:	 	General Partner
		
	By:	 	 /s/ KATHLEEN K. SCHOEMAKER

		 	Name:	 	Kathleen K. Schoemaker
		 	Title:	 	Managing Member

  

					
		 	Address:	 	One Palmer Square, Suite 515
		 		 	Princeton, NJ 08542

 

					
	DP VII ASSOCIATES, L.P.
		
	By:	 	One Palmer Square Associates VII, L.L.C.
	Its:	 	General Partner
		
	By:	 	 /s/ KATHLEEN K. SCHOEMAKER

		 	Name:	 	Kathleen K. Schoemaker
		 	Title:	 	Managing Member

  

					
		 	Address:	 	One Palmer Square, Suite 515
		 		 	Princeton, NJ 08542

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written. 
  

			
	INVESTORS:
	
	LATTERELL VENTURE PARTNERS III, L.P.
		
	By:	 	Latterell Capital Management III, L.L.C.
	Its:	 	General Partner
		
	By:	 	 /s/ PATRICK F. LATTERELL

	Name:	 	Patrick F. Latterell
	Its:	 	Managing Member
	
	LVP III ASSOCIATES, L.P.
		
	By:	 	Latterell Capital Management III, L.L.C.
	Its:	 	General Partner
		
	By:	 	 /s/ PATRICK F. LATTERELL

	Name:	 	Patrick F. Latterell
	Its:	 	Managing Member
	
	LVP III PARTNERS, L.P.
		
	By:	 	Latterell Capital Management III, L.L.C.
	Its:	 	General Partner
		
	By:	 	 /s/ PATRICK F. LATTERELL

	Name:	 	Patrick F. Latterell
	Its:	 	Managing Member

  

			
	Address:	 	1 Embarcadero Center
		 	Suite 4050
		 	San Francisco, CA 94111

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	CAM GALLAGHER
	
	 /s/ CAM GALLAGHER

		
	Address:	 	3888 Quarter Mile Drive
		 	San Diego, CA 92130

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

					
	INVESTORS:
	
	STEPHEN F. GALLAGHER, TRUSTEE WITH FIRST NATIONAL BANK, N.A., AS SUCCESSOR TRUSTEE U/A DATED MARCH 21, 2005 AS MAY BE AMENDED
		
	By:	 	 /s/ STEPHEN F. GALLAGHER, TRUSTEE

		 	Name:	 	Stephen F. Gallagher
		 	Title:	 	Trustee

  

					
	Address:	 	4101 Beachside One Drive
		 	Destin, FL 32550

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	MICHAEL J. POLLOCK
	
	 /s/ MICHAEL J. POLLOCK

		
	Address:	 	3721 Roosevelt Blvd.
		 	Middletown, OH 45044

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	ADAM COHEN
	
	 /s/ ADAM COHEN

		
	Address:	 	One McKittrick Court
		 	Old Tappan, NJ 07675

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	LARRY TIFFANY
	
	 /s/ LARRY TIFFANY

		
	Address:	 	21504 Quick Fox Lane
		 	Gaithersburg, MD 20882

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	KEN WORMSER
	
	 /s/ KEN WORMSER

		
	Address:	 	31 Boset Rd.
		 	Demerst, NJ 07627

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	DAVID PARKS
	
	 /s/ DAVID PARKS

		
	Address:	 	64 East 86th Street, #12C
		 	New York, NY 10028

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	ROEY EYAL
	
	 /s/ ROEY EYAL

		
	Address:	 	120 w. 21st St., # 1502
		 	New York, NY 10011

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

					
	INVESTORS:
	
	NERVEDA, INC.
		
	By:	 	 /s/ CAM GALLAGHER

		 	Name:	 	Cam Gallagher
		 	Title:	 	President and Chief Executive Officer

 

					
	Address:	 	3888 Quarter Mile Drive
		 	San Diego, CA 92130

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

					
	INVESTORS:
	
	VP COMPANY INVESTMENTS 2008, LLC
		
	By:	 	 /s/ ALAN C. MENDELSON

		 	Name:	 	Alan C. Mendelson
		 	Title:	 	Managing Member

  

					
	Address:	 	555 W. Fifth Street, Suite, 800
		 	Los Angeles, CA 90013-1010
		 	Attn.: Alfred Harutunian

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	SCOTT N. WOLFE
	
	 /s/ SCOTT N. WOLFE

		
	Address:	 	c/o Latham & Watkins LLP
		 	12636 High Bluff Drive, Suite 400
		 	San Diego, CA 92130

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

					
	INVESTORS:
	
	FAYE HUNTER RUSSELL TRUST U/T/D 7/11/88
		
	By:	 	 /s/ FAYE H. RUSSELL

		 	Name:	 	Faye H. Russell
		 	Title:	 	Trustee

  

					
	Address:	 	c/o Latham & Watkins LLP
		 	12636 High Bluff Drive, Suite 400
		 	San Diego, CA 92130

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	CHESTON J. LARSON
	
	 /s/ CHESTON J. LARSON

		
	Address:	 	c/o Latham & Watkins LLP
		 	12636 High Bluff Drive, Suite 400
		 	San Diego, CA 92130

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

			
	INVESTORS:
	
	MATTHEW T. BUSH
	
	 /s/ MATTHEW T. BUSH

		
	Address:	 	c/o Latham & Watkins LLP
		 	12636 High Bluff Drive, Suite 400
		 	San Diego, CA 92130

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 16th day of June 2010. 

 

					
	INVESTORS:
	
	WS INVESTMENT COMPANY, LLC (2010A)
		
	By:	 	 /s/ [ILLEGIBLE]

		 	Name:	 	
		 	Title:	 	

  

			
	Address:	 	60 Page Mill Road
		 	Palo Alto, CA 94304-1050

  

EVOKE PHARMA, INC. 
 INVESTOR RIGHTS AGREEMENT 

COUNTERPART SIGNATURE PAGE 

 SCHEDULE A 

June 1, 2007 
 INVESTORS 
 Investors 

GARNER INVESTMENTS, L.L.C. 
 WINDAMERE III, LLC

 HALE BIOPHARMA VENTURES, LLC 

DOMAIN PARTNERS VII, L.P. 
 DP VII ASSOCIATES,
L.P. 
 LATTERELL VENTURE PARTNERS III, L.P. 
 LVP III ASSOCIATES, L.P. 
 LVP III PARTNERS, L.P 

Additional Investors as of June 16, 2010 
 Investors 
 CAM GALLAGHER 
 STEPHEN F. GALLAGHER, TRUSTEE WITH FIRST 
 NATIONAL BANK, N.A., AS SUCCESSOR TRUSTEE 

U/A DATED MARCH 21, 2005 AS MAY BE AMENDED 

MICHAEL J. POLLOCK 
 ADAM COHEN 

LARRY TIFFANY 
 KEN WORMSER 

DAVID PARKS 
 ROEY EYAL 

NERVEDA, INC. 
 VP COMPANY INVESTMENTS 2008,
LLC 
 SCOTT N. WOLFE 
 FAYE HUNTER
RUSSELL TRUST U/T/D 7/11/88 
 CHESTON J. LARSON 
 MATTHEW T. BUSH 
 WS INVESTMENT COMPANY, LLC (2010A)

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