Document:

EX-10.11

 Exhibit 10.11 

CIDARA THERAPEUTICS, INC. 

LOAN AND SECURITY AGREEMENT 

 This LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into as of December 29, 2014, by
and between Comerica Bank (“Bank”) and Cidara Therapeutics, Inc., a Delaware corporation (“Borrower”). 

RECITALS 
 Borrower wishes to
obtain credit from time to time from Bank, and Bank desires to extend credit to Borrower. This Agreement sets forth the terms on which Bank will advance credit to Borrower, and Borrower will repay the amounts owing to Bank. 

AGREEMENT 
 The parties agree as
follows: 
  

	1.	DEFINITIONS AND CONSTRUCTION. 

 1.1 Definitions. As used in this Agreement, all
capitalized terms shall have the definitions set forth on Exhibit A. Any term used in the Code and not defined herein shall have the meaning given to the term in the Code. 

1.2 Accounting Terms. Any accounting term not specifically defined on Exhibit A shall be construed in accordance with GAAP and all
calculations shall be made in accordance with GAAP. The term “financial statements” shall include the accompanying notes and schedules. 
  

	2.	LOAN AND TERMS OF PAYMENT. 

 2.1 Credit Extensions. 

(a) Promise to Pay. Borrower promises to pay to Bank, in lawful money of the United States, the aggregate unpaid principal amount of
all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof. 

(b) Term Loan Advances. 

(i) Subject to and upon the terms and conditions of this Agreement, Bank agrees to make Term Loan Advances to Borrower. Borrower may request
Term Loan Advances from the date hereof through December 29, 2015. The aggregate amount of Term Loan Advances shall not exceed the Term Loan. 

(ii) Interest shall accrue from the date of each Term Loan Advance at the rate specified in the Pricing Addendum, and shall be payable in
accordance with Section 2.3(b) and on the terms set forth in the Pricing Addendum. Any Term Loan Advances that are outstanding on December 29, 2015 shall be payable in thirty six (36) equal monthly installments of principal, plus
all accrued interest, beginning on January 1, 2016, and continuing on the same day of each month thereafter until the Term Loan Maturity Date, at which time all Term Loan Advances made under this Section 2.1(b) and any other amounts due
under this Agreement shall be immediately due and payable. Term Loan Advances, once repaid, may not be reborrowed. Except as set forth in the Pricing Addendum, Borrower may prepay any Term Loan Advances without penalty or premium. 

(iii) When Borrower desires to obtain an Term Loan Advance, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile
transmission to be received no later than 3:00 p.m. Pacific time three (3) Business Days before the day on which the Term Loan Advance is to be made. Such notice shall be substantially in the form of Exhibit C. The notice shall be signed
by a Responsible Officer. Bank shall be entitled to rely on any facsimile or telephonic notice given by a person who Bank reasonably believes to be a Responsible Officer, and Borrower shall indemnify and hold Bank harmless for any damages or loss
suffered by Bank as a result of such reliance. 
 2.2 [Intentionally Deleted.] 

2.3 Interest Rates, Payments, and Calculations. 

 (a) Interest Rates. The Term Loan Advances shall bear interest, on the outstanding daily
balance thereof, on the terms set forth in the Pricing Addendum. 
 (b) Payments. Bank shall, at its option, charge such interest,
all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit accounts or against the Term Loan, in which case those amounts shall thereafter accrue interest at the rate then applicable hereunder. Any interest not paid when due
shall be compounded by becoming a part of the Obligations, and such interest shall thereafter accrue interest at the rate then applicable hereunder. 

2.4 Crediting Payments. While no Event of Default has occurred and is continuing, Bank shall credit a wire transfer of funds, check or
other item of payment to such deposit account or Obligation as Borrower specifies. After the occurrence and during the continuance of an Event of Default, Bank shall have the right, in its sole discretion, to immediately apply any wire transfer of
funds, check, or other item of payment Bank may receive to conditionally reduce Obligations, but such applications of funds shall not be considered a payment on account unless such payment is of immediately available federal funds or unless and
until such check or other item of payment is honored when presented for payment. Notwithstanding anything to the contrary contained herein, any wire transfer or payment received by Bank after 12:00 noon Pacific time shall be deemed to have been
received by Bank as of the opening of business on the immediately following Business Day. Whenever any payment to Bank under the Loan Documents would otherwise be due (except by reason of acceleration) on a date that is not a Business Day, such
payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for the period of such extension. 

2.5 Fees and Bank Expenses. Borrower shall pay to Bank the following: 

(a) Bank Expenses. (i) On the Closing Date, all Bank Expenses incurred through the Closing Date, provided, however,
Borrower’s obligation to reimburse Bank for legal fees (excluding expenses incurred in connection with such legal fees) shall be limited to Twenty Five Thousand Dollars ($25,000) so long as there are no more than three (3) turns of the
Loan Documents based on comments received from Borrower or any third party, and (ii) thereafter, all Bank Expenses, as and when they become due. 

2.6 Term. This Agreement shall become effective on the Closing Date and, subject to Section 13.8, shall continue in full force and
effect for so long as any Obligations (other than inchoate indemnity obligation) remain outstanding or Bank has any obligation to make Credit Extensions under this Agreement. Notwithstanding the foregoing, Bank shall have the right to terminate its
obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of Default. Borrower may terminate this Agreement at any time upon five (5) days prior written
notice to Bank provided that all outstanding Obligations have been paid in full as of the effective date of such termination. In connection with the satisfaction of all of the Obligations and the termination of Bank’s commitment to extend
additional credit to Borrower, Bank shall, upon the request of Borrower, prepare a payoff letter that will provide, among other things, for the release of Bank’s liens against Borrower’s assets. 

 

	3.	CONDITIONS OF LOANS. 

 3.1 Conditions Precedent to Initial Credit Extension. The
obligation of Bank to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the following: 

(a) this Agreement and the other Loan Documents required by Bank; 

(b) an officer’s certificate of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this
Agreement and the other Loan Documents; 
 (c) the Pricing Addendum; 

(d) a financing statement (Form UCC-1); 

  

					
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 (e) agreement to furnish insurance; 

(f) for Borrower’s leased property located at 6310 Nancy Ridge Drive, Suite 101, San Diego, CA 92121, a lessor’s acknowledgment and
subordination, executed by the lessor, together with a copy of the lease; 
 (g) payment of the fees and Bank Expenses then due as specified
in Section 2.5; 
 (h) current SOS Reports indicating that except for Permitted Liens, there are no other security interests or Liens
of record in the Collateral; 
 (i) current financial statements, including statements for Borrower’s most recently ended fiscal year,
company prepared consolidated and consolidating balance sheets and income statements for the most recently ended month in accordance with Section 6.2, and such other updated financial information as Bank may reasonably request; 

(j) current Compliance Certificate in accordance with Section 6.2; 

(k) a Warrant in form and substance satisfactory to Bank, together with a copy of (i) Borrower’s capitalization table and
(ii) Borrower’s investors rights agreement; 
 (l) a Collateral Information Certificate; 

(m) an Automatic Loan Payment Authorization; and 

(n) such other documents or certificates, and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 

3.2 Conditions Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit
Extension, is further subject to the following conditions: 
 (a) timely receipt by Bank of the Payment/Advance Form as provided in
Section 2.1; and 
 (b) the representations and warranties contained in Article 5 shall be true and correct in all material respects on
and as of the date of such Payment/Advance Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event of Default shall have occurred and be continuing, or would exist after giving effect to such
Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date). The making of each Credit Extension shall be deemed to
be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2. 
  

	4.	CREATION OF SECURITY INTEREST. 

 4.1 Grant of Security Interest. Borrower grants
and pledges to Bank a continuing security interest in the Collateral to secure prompt repayment of any and all Obligations and to secure prompt performance by Borrower of each of its covenants and duties under the Loan Documents (other than the
Warrant). Except as set forth in the Schedule and Permitted Liens that are not required to be subordinate to the Bank’s Liens, such security interest constitutes a valid, first priority security interest in the presently existing Collateral,
and will constitute a valid, first priority security interest in later-acquired Collateral. Notwithstanding any termination of this Agreement, Bank’s Lien on the Collateral shall remain in effect for so long as any Obligations (other than
inchoate indemnity obligations) are outstanding. 
 4.2 Perfection of Security Interest. Borrower authorizes Bank to file at any time
financing statements, continuation statements, and amendments thereto that (i) either specifically describe the Collateral or describe the Collateral as all assets of Borrower of the kind pledged hereunder, and (ii) contain any other
information required by the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or 

  

					
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amendment, including whether Borrower is an organization, the type of organization and any organizational identification number issued to Borrower, if applicable. Any such financing statements
may be filed by Bank at any time in any jurisdiction whether or not Division 9 of the Code is then in effect in that jurisdiction. Borrower shall from time to time endorse and deliver to Bank, at the request of Bank, all Negotiable Collateral and
other documents that Bank may reasonably request, in form satisfactory to Bank, to perfect and continue perfection of Bank’s security interests in the Collateral and in order to fully consummate all of the transactions contemplated under the
Loan Documents. Borrower shall have possession of the Collateral, except where expressly otherwise provided in this Agreement or where Bank chooses to perfect its security interest by possession in addition to the filing of a financing statement.
Where Collateral is in possession of a third party bailee, Borrower shall take such steps as Bank reasonably requests for Bank to (i) obtain an acknowledgment, in form and substance reasonably satisfactory to Bank, of the bailee that the bailee
holds such Collateral for the benefit of Bank, and (ii) obtain “control” of any Collateral consisting of investment property, deposit accounts, securities accounts, letter-of-credit rights or electronic chattel paper (as such items
and the term “control” are defined in Division 9 of the Code) by causing the securities intermediary or depositary institution or issuing bank to execute a control agreement in form and substance reasonably satisfactory to Bank. Borrower
will not create any chattel paper without placing a legend on the chattel paper acceptable to Bank indicating that Bank has a security interest in the chattel paper. 

4.3 Right to Inspect. Bank (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from
time to time during Borrower’s usual business hours, to inspect Borrower’s Books and to make copies thereof and to check, test, and appraise the Collateral in order to verify Borrower’s financial condition or the amount, condition of,
or any other matter relating to, the Collateral. 
  

	5.	REPRESENTATIONS AND WARRANTIES. 

 Borrower represents and warrants as follows: 

5.1 Due Organization and Qualification. Borrower and each Subsidiary is an entity duly existing under the laws of the jurisdiction in
which it is organized and qualified and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified, except where the failure to do so could not reasonably be expected to
cause a Material Adverse Effect. 
 5.2 Due Authorization; No Conflict. The execution, delivery, and performance of the Loan
Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower’s organizational documents, nor will they constitute an event of default under
any material agreement by which Borrower is bound. Borrower is not in default under any agreement by which it is bound, except to the extent such default would not reasonably be expected to cause a Material Adverse Effect. 

5.3 Collateral. Borrower has rights in or the power to transfer the Collateral, and its title to the Collateral is free and clear of
Liens, adverse claims, and restrictions on transfer or pledge except for Permitted Liens. All Inventory is in all material respects of good and merchantable quality, free from all material defects, except for Inventory for which adequate reserves
have been made. Except as set forth in the Schedule, or as permitted by Section 6.6, none of the Collateral is maintained or invested with a Person other than Bank. 

5.4 Intellectual Property. Borrower is the sole owner of the Intellectual Property, except for licenses granted by Borrower to third
parties in the ordinary course of business. To the best of Borrower’s knowledge, each of the Copyrights, Trademarks and Patents is valid and enforceable, and no part of the Intellectual Property has been judged invalid or unenforceable, in
whole or in part, and no claim has been made to Borrower that any part of the Intellectual Property violates the rights of any third party except to the extent such invalidity, unenforceability or claim could not reasonably be expected to cause a
Material Adverse Effect. Other than this Agreement, Borrower is not a party to, nor bound by, any agreement that restricts the grant by Borrower of a security interest in the Intellectual Property. 

5.5 Name; Location of Chief Executive Office; Location of Inventory and Equipment. Except as disclosed in the Schedule, Borrower has
not done business under any name other than that specified on the signature page hereof, and its exact legal name is as set forth in the first paragraph of this Agreement. The chief executive 

  

					
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office of Borrower is located at the address indicated in Section 10 hereof. Except as disclosed in the Schedule, all Collateral of Borrower is located at the address indicated in
Section 10 hereof. 
 5.6 Actions, Suits, Litigation, or Proceedings. Except as set forth in the Schedule, there are no actions,
suits, litigation or proceedings, at law or in equity, pending by or against Borrower or any Subsidiary before any court, administrative agency, or arbitrator in which a likely adverse decision could reasonably be expected to have a Material Adverse
Effect. 
 5.7 No Material Adverse Change in Financial Statements. All consolidated and consolidating financial statements related to
Borrower and any Subsidiary that are delivered by Borrower to Bank fairly present in all material respects Borrower’s consolidated and consolidating financial condition as of the date thereof and Borrower’s consolidated and consolidating
results of operations for the period then ended, except in the case of unaudited financial statements, for (a) the omission of footnotes, (b) accounting adjustments relating to stock compensation, equity, partnership and collaboration
agreements, (c) normal year-end adjustments, and (d) adjustments required or permitted to conform to GAAP. There has not been a material adverse change in the consolidated or in the consolidating financial condition of Borrower since the
date of the most recent of such financial statements submitted to Bank. 
 5.8 Solvency, Payment of Debts. Borrower is able to pay
its debts (including trade debts) as they mature; the fair saleable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small capital
after the transactions contemplated by this Agreement. 
 5.9 Compliance with Laws and Regulations. Borrower and each Subsidiary have
met the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s
incurring any liability that could reasonably be expected to have a Material Adverse Effect. Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940. Borrower is not engaged principally, or as one of the important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T, U, and X of
the Board of Governors of the Federal Reserve System). Borrower has complied in all material respects with all the provisions of the Federal Fair Labor Standards Act. Borrower has complied in all material respects with all environmental laws,
regulations and ordinances. Borrower has not violated any statutes, laws, ordinances or rules applicable to it, the violation of which could reasonably be expected to have a Material Adverse Effect. Borrower and each Subsidiary have filed or caused
to be filed all tax returns required to be filed or extensions therefor, and have paid, or have made adequate provision for the payment of, all taxes reflected therein except those being contested in good faith with adequate reserves under GAAP or
where the failure to file such returns or pay such taxes could not reasonably be expected to have a Material Adverse Effect. 
 5.10
Investments. Borrower does not own any Equity Interests of any Person, except for Permitted Investments. 
 5.11 Government
Consents. Borrower and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of
Borrower’s business as currently conducted, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect. 

5.12 Restricted Agreements. Except as disclosed on the Schedule, or as timely disclosed in writing to Bank pursuant to
Section 6.9, Borrower is not a party to, nor is bound by, any Restricted Agreement. 
 5.13 Full Disclosure. No representation,
warranty or other statement made by Borrower in any certificate or written statement furnished to Bank taken together with all such certificates and written statements furnished to Bank contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained in such certificates or statements not misleading, it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable
assumptions are not to 

  

					
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be viewed as facts and that actual results during the period or periods covered by any such projections and forecasts may differ from the projected or forecasted results. 

 

	6.	AFFIRMATIVE COVENANTS. 

 Borrower covenants that, until payment in full of all
outstanding Obligations, and for so long as Bank may have any commitment to make a Credit Extension hereunder, Borrower shall do all of the following: 

6.1 Good Standing and Government Compliance. Borrower shall maintain its, and each of its Subsidiaries’ organizational existence
and good standing in the Borrower State and the respective state of organization with respect to the Subsidiaries, shall maintain qualification and good standing in each other jurisdiction in which the failure to so qualify could reasonably be
expected to have a Material Adverse Effect, and shall furnish to Bank the organizational identification number issued to Borrower by the authorities of the jurisdiction in which Borrower is organized, if applicable. Borrower shall meet, and shall
cause each Subsidiary to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA. Borrower shall comply in all material respects with all applicable Environmental Laws, and maintain all material
permits, licenses and approvals required thereunder where the failure to do so could reasonably be expected to have a Material Adverse Effect. Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes, laws, ordinances and
government rules and regulations to which it is subject, and shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which or failure to comply with which would reasonably be
expected to have a Material Adverse Effect. 
 6.2 Financial Statements, Reports, Certificates. Borrower shall deliver to Bank:
(i) as soon as available, but in any event within thirty (30) days after the end of each calendar month, a company prepared consolidated and consolidating balance sheet and income statement covering Borrower’s and each
Subsidiaries’ operations during such period, prepared in accordance with GAAP (except for (a) the omission of footnotes, (b) accounting adjustments relating to stock compensation, equity, partnership and collaboration agreements,
(c) normal year-end adjustments, and (d) adjustments required or permitted to conform to GAAP), and in a form reasonably acceptable to Bank and certified by a Responsible Officer; provided, that after a Qualified Public Offering, the
foregoing interim financial statements shall be delivered no later than thirty (30) days after the filing with the SEC for each fiscal quarter then ended; (ii) as soon as available, but in any event within one hundred eighty
(180) days after the end of Borrower’s fiscal year, commencing with the fiscal year ending December 31, 2014, audited consolidated and consolidating financial statements of Borrower prepared in accordance with GAAP, consistently
applied, together with an opinion which is unqualified (except for going concern comments or qualifications based upon the history of accumulated losses and related impact upon the amount of cash shown in the financial statements of Borrower or the
need to raise additional capital) or otherwise consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; (iii) if applicable, copies of all statements, reports
and notices sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission; (iv) promptly upon receipt of
notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of Two Hundred Fifty Thousand Dollars ($250,000) or more; (v) promptly
upon receipt, each management letter prepared by Borrower’s independent certified public accounting firm regarding Borrower’s management control systems; (vi) as soon as available, but in any event not later than March 1 of each
calendar year, Borrower’s financial and business projections and budget for the then current or immediately following year, as applicable, with evidence of approval thereof by Borrower’s Board of Directors; and (vii) such budgets,
sales projections, operating plans or other financial information as Bank may reasonably request from time to time. 
 (a) Within thirty
(30) days after the last day of each month, Borrower shall deliver to Bank with the monthly financial statements a Compliance Certificate certified as of the last day of the applicable month and signed by a Responsible Officer in substantially
the form of Exhibit D hereto. 
 (b) As soon as possible and in any event within three Business Days after becoming aware of the
occurrence or existence of an Event of Default hereunder, a written statement of a Responsible Officer setting forth details of the Event of Default, and the action which Borrower has taken or proposes to take with respect thereto. 

  

					
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 (c) Bank shall have a right from time to time hereafter to audit Borrower’s Accounts and
appraise Collateral at Borrower’s expense, provided that such audits will be conducted no more often than once a year unless an Event of Default has occurred and is continuing. 

Borrower may deliver to Bank on an electronic basis any certificates, reports or information required pursuant to this Section 6.2, and
Bank shall be entitled to rely on the information contained in the electronic files, provided that Bank in good faith believes that the files were delivered by a Responsible Officer. If Borrower delivers this information electronically, it shall
also deliver to Bank by U.S. Mail, reputable overnight courier service, hand delivery, facsimile or .pdf file within five (5) Business Days of submission of the unsigned electronic copy the certification of monthly financial statements, the
intellectual property report and the Compliance Certificate, each bearing the physical signature of the Responsible Officer. 

Notwithstanding the foregoing, documents to be delivered pursuant to the terms of this Section 6.2 (to the extent any such documents are
included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a link thereto, on Borrower’s website
on the internet at Borrower’s website address. 
 6.3 Inventory; Returns. Borrower shall keep all Inventory in good and
merchantable condition, free from all material defects except for Inventory for which adequate reserves have been made. Returns and allowances, if any, as between Borrower and its account debtors shall be on the same basis and in accordance with the
usual customary practices of Borrower, as they exist on the Closing Date. Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims involving more than One Hundred Thousand Dollars ($100,000). 

6.4 Taxes. Borrower shall make, and cause each Subsidiary to make, due and timely payment or deposit of all material federal, state,
and local taxes, assessments, or contributions required of it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A. and state disability, and will execute and deliver to Bank, on demand, proof satisfactory to
Bank indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate certificates attesting to the payment or deposit thereof; provided that Borrower or a Subsidiary need not make any payment if the amount or validity
of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower or its Subsidiary, as applicable. 

6.5 Insurance. 
 (a)
Borrower, at its expense, shall keep the Collateral insured against loss or damage by fire, theft, explosion, sprinklers, and all other hazards and risks, and in such amounts, as ordinarily insured against by other owners in similar businesses
conducted in the locations where Borrower’s business is conducted on the date hereof. Borrower shall also maintain liability and other insurance in amounts and of a type that are customary to businesses similar to Borrower’s. 

(b) All such policies of insurance shall be in such form, with such companies, and in such amounts as reasonably satisfactory to Bank. All
policies of property insurance shall contain a lender’s loss payable endorsement, in a form satisfactory to Bank, showing Bank as an additional loss payee, and all liability insurance policies shall show Bank as an additional insured and
specify that the insurer must give at least twenty (20) days (ten (10) days for non-payment of premium) notice to Bank before canceling its policy for any reason. Upon Bank’s request, Borrower shall deliver to Bank certified copies of
the policies of insurance and evidence of all premium payments. If no Event of Default has occurred and is continuing, proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to replace the property subject
to the claim, provided that any such replacement property shall be deemed Collateral in which Bank has been granted a first priority security interest. If an Event of Default has occurred and is continuing, all proceeds payable under any such policy
shall, at Bank’s option, be payable to Bank to be applied on account of the Obligations. 
 6.6 Accounts. Commencing February
    , 2015, and at all times thereafter, Borrower shall maintain all of its primary depository, operating and investment accounts with Bank or Bank’s Affiliates (covered by satisfactory control agreements). 

  

					
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 6.7 [Intentionally Deleted.] 

6.8 Registration of Intellectual Property Rights. 

(a) Borrower shall register or cause to be registered (to the extent not already registered) with the United States Patent and Trademark
Office or the United States Copyright Office, as the case may be, those registrable intellectual property rights now owned or hereafter developed or acquired by Borrower, to the extent that Borrower, in its reasonable business judgment, deems it
appropriate to so protect such intellectual property rights. 
 (b) Borrower shall use commercially reasonable efforts to (i) protect,
defend and maintain the validity and enforceability of the material Trademarks, Patents, Copyrights, and trade secrets, (ii) detect infringements of the material Trademarks, Patents and Copyrights and promptly advise Bank in writing of material
infringements detected and (iii) not allow any material Trademarks, Patents or Copyrights to be abandoned, forfeited or dedicated to the public without the written consent of Bank, which shall not be unreasonably withheld. 

6.9 Restricted Agreement Consents. Prior to entering into or becoming bound by any Restricted Agreement, Borrower shall provide written
notice to Bank of the material terms of such Restricted Agreement with a description of its likely impact on Borrower’s business or financial condition. 

6.10 Further Assurances. At any time and from time to time Borrower shall execute and deliver such further instruments and take such
further action as may reasonably be requested by Bank to effect the purposes of this Agreement. 
  

	7.	NEGATIVE COVENANTS. 

 Borrower covenants and agrees that, so long as any credit hereunder
shall be available and until the outstanding Obligations are paid in full or for so long as Bank may have any commitment to make any Credit Extensions, Borrower shall not do any of the following: 

7.1 Dispositions. Convey, sell, lease, license, transfer or otherwise dispose of (collectively, to “Transfer”), or permit any
of its Subsidiaries to Transfer, all or any part of its business or property, or subject to Section 6.6, move cash balances on deposit with Bank to accounts opened at another financial institution, other than Permitted Transfers. 

7.2 Change in Name, Location, Executive Office, or Executive Management; Change in Business; Change in Fiscal Year; Change in Control.
Change its name or the Borrower State or relocate its chief executive office without twenty (20) days prior written notification to Bank; replace its chief executive officer or chief financial officer without written notification to Bank as
soon as possible and in any event, within three (3) days after any such replacement; engage in any business, or permit any of its Subsidiaries to engage in any business, other than or reasonably related or incidental to the businesses currently
engaged in by Borrower; change its fiscal year end; or have a Change in Control. 
 7.3 Mergers or Acquisitions. Merge or
consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other business organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower), or acquire, or permit any of its
Subsidiaries to acquire, all or substantially all of Equity Interests or property of another Person, or enter into any agreement to do any of the same, except where (i) such transactions do not in the aggregate exceed Two Hundred Fifty Thousand
Dollars ($250,000) during any fiscal year, (ii) no Event of Default has occurred, is continuing or would exist after giving effect to such transactions, (iii) such transactions do not result in a Change in Control, and (iv) Borrower
is the surviving entity. 
 7.4 Indebtedness. Create, incur, assume, guarantee or be or remain liable with respect to any
Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose on Borrower an obligation to prepay any Indebtedness, except Indebtedness to Bank. 

7.5 Encumbrances. Create, incur, assume or allow any Lien with respect to any of its property, or assign or otherwise convey any right
to receive income, including the sale of any Accounts, or permit any of its 

  

					
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Subsidiaries so to do, except for Permitted Liens, or covenant to any other Person that Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien with respect to
any of Borrower’s property except in connection with a Permitted Transfer or as otherwise permitted under Section 7.1. 
 7.6
Distributions. Pay any dividends or make any other distribution or payment on account of or in redemption, retirement or purchase of any Equity Interests, except that Borrower may (i) repurchase the Equity Interests of former or current
employees, consultants or directors pursuant to equity repurchase agreements or equity purchase plans in an aggregate amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000) during any fiscal year as long as an Event of Default does not
exist prior to such repurchase or would not exist after giving effect to such repurchase; (ii) repurchase the Equity Interests of former or current employees, officers, consultants or directors pursuant to equity repurchase agreements or equity
purchase plans by the cancellation of indebtedness owed by such former employees, officers, consultants or directors to Borrower regardless of whether an Event of Default exists; (iii) pay dividends in the form of capital stock,
(iv) convert any of its convertible securities (including warrants) into other securities pursuant to the terms of such convertible securities and (v) distribute securities to current or former employees, officers, consultants, or
directors upon the exercise of their options. 
 7.7 Investments. Directly or indirectly acquire or own, or make any Investment in or
to any Person, or permit any of its Subsidiaries to do so, other than Permitted Investments, or maintain or invest any of its property with a Person other than Bank or Bank’s Affiliates permit any Subsidiary to do so unless such Person has
entered into a control agreement with Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying dividends or otherwise distributing
property to Borrower. Further, Borrower shall not enter into any license or agreement with any Prohibited Territory or with any Person organized under or doing business in a Prohibited Territory. 

7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of
Borrower except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated
Person; provided that the foregoing restriction shall not apply to (a) reasonable and customary fees paid to members of the Board of Directors of Borrower and its Subsidiaries, (b) bona fide equity financings, or unsecured Subordinated
Debt financings approved by Bank in writing, from Borrower’s investors or their Affiliates, in each case that does not result in a Change of Control, (c) employment arrangements with executive officers, or (d) Permitted Investments.

 7.9 Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such
payment, except in compliance with the terms of such Subordinated Debt and the terms of the subordination agreement relating to such Subordinated Debt, or amend any provision of any document evidencing such Subordinated Debt, except in compliance
with the terms of the subordination agreement relating to such Subordinated Debt, or amend any provision affecting Bank’s rights contained in any documentation relating to the Subordinated Debt except in compliance with the terms of the
subordination agreement relating to such Subordinated Debt without Bank’s prior written consent. 
 7.10 Inventory and
Equipment. Except for Collateral (i) in-transit or located at contract manufacturers and (ii) depot locations prior to Borrower’s receipt of FDA approval, store the Inventory or the Equipment with a bailee, warehouseman, or
similar third party unless the third party has been notified of Bank’s security interest and Bank (a) has received an acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Bank’s benefit or
(b) is in possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment. Except for Inventory sold in the ordinary course of business and except for such other locations as Bank may approve in writing, Borrower
shall keep the Inventory and Equipment only at the location set forth in Section 10, the current Schedule, and such other locations of which Borrower gives Bank prior written notice. Following FDA approval of Inventory, Borrower shall provide
to Bank executed collateral access agreements and bailment agreements (in form and substance acceptable to Bank) for all then current and future depot locations where finished Inventory is stored prior to shipment. 

7.11 No Investment Company; Margin Regulation. Become or be controlled by an “investment company,” within the meaning of the
Investment Company Act of 1940, or become principally engaged in, or 

  

					
	Comerica Bank – Loan and Security Agreement	 	Page 9	  	

 
undertake as one of its important activities, the business of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such
purpose. 
  

	8.	EVENTS OF DEFAULT. 

 Any one or more of the following events shall constitute an Event of
Default by Borrower under this Agreement: 
 8.1 Payment Default. If Borrower fails to pay any of the Obligations when due; 

8.2 Covenant Default. 

(a) If Borrower fails to perform any obligation under Section 6.2, 6.4, 6.5, 6.6, 6.7 or 6.10, or violates any of the covenants contained
in Article 7 of this Agreement; 
 (b) If Borrower fails or neglects to perform any obligation under Section 6.1, 6.3, 6.8 or 6.9 and
has failed to cure such default within ten (10) days after the earlier to occur of (i) Borrower’s receipt of notice thereof or (ii) the date any officer of Borrower becomes aware thereof; however during such cure period no Credit
Extensions will be made; or 
 (c) If Borrower fails or neglects to perform or observe any other material term, provision, condition,
covenant contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term, provision, condition or covenant that can be cured, has failed to
cure such default within ten (10) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot
after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty
(30) days) to attempt to cure such default, so long as Borrower continues to diligently attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no
Credit Extensions will be made; 
 8.3 Material Adverse Change. If there occurs any circumstance or circumstances that could
reasonably be expected to have a Material Adverse Effect; 
 8.4 Attachment. If any material portion of Borrower’s and/or any of
its Subsidiaries’ assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and such attachment, seizure, writ or
distress warrant or levy has not been removed, discharged or rescinded within five (5) days, or if Borrower and/or any of its Subsidiaries is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any
material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower’s and/or any of its Subsidiaries’ assets, or if a notice of lien, levy, or assessment is filed of
record with respect to any of Borrower’s and/or any of its Subsidiaries’ assets by the United States, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same is not
paid within five (5) days after Borrower and/or any of its Subsidiaries receives notice thereof, provided that none of the foregoing shall constitute an Event of Default where such action or event is stayed or an adequate bond has been posted
pending a good faith contest by Borrower and/or any of its Subsidiaries (provided that no Credit Extensions will be made during such cure period); 

8.5 Insolvency. If Borrower and/or any of its Subsidiaries becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower
and/or any of its Subsidiaries, or if an Insolvency Proceeding is commenced against Borrower and/or any of its Subsidiaries and is not dismissed or stayed within thirty (30) days (provided that no Credit Extensions will be made prior to the
dismissal of such Insolvency Proceeding); 
 8.6 Other Agreements. If there is a default or other failure to perform in any agreement
to which Borrower and/or any of its Subsidiaries is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Two

  

					
	Comerica Bank – Loan and Security Agreement	 	Page 10	  	

 
Hundred Fifty Thousand Dollars ($250,000) or that would reasonably be expected to have a Material Adverse Effect; 

8.7 Subordinated Debt. If Borrower and/or any of its Subsidiaries makes any payment on account of Subordinated Debt, except to the
extent the payment is allowed under any subordination agreement entered into with Bank; 
 8.8 Judgments; Settlements. If one or more
(a) judgments, orders, decrees or arbitration awards requiring the Borrower and/or its Subsidiaries to pay an aggregate amount of Two Hundred Fifty Thousand Dollars ($250,000) or greater (not covered by adequate insurance from a solvent carrier
which is defending such action without reservation of rights) shall be rendered against Borrower and/or any of its Subsidiaries and the same shall not have been satisfied, vacated or stayed within ten (10) days thereafter (provided that no
Credit Extensions will be made prior to such matter being vacated or stayed); or (b) settlements is agreed upon by Borrower and/or its Subsidiaries for the payment by Borrower and/or its Subsidiaries of an aggregate amount of Two Hundred Fifty
Thousand Dollars ($250,000) or greater in excess of any amounts covered by insurance or that could reasonably be expected to have a Material Adverse Effect; or 

8.9 Misrepresentations. If any material misrepresentation or material misstatement exists now or hereafter in any warranty or
representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan Document. 

 

	9.	BANK’S RIGHTS AND REMEDIES. 

 9.1 Rights and Remedies. Upon the occurrence
and during the continuance of an Event of Default, Bank may, at its election, without notice of its election and without demand, do any one or more of the following, all of which are authorized by Borrower: 

(a) Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and
payable (provided that upon the occurrence of an Event of Default described in Section 8.5 (insolvency), all Obligations shall become immediately due and payable without any action by Bank); 

(b) Cease advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between
Borrower and Bank; 
 (c) Settle or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order
that Bank reasonably considers advisable; 
 (d) Make such payments and do such acts as Bank considers necessary or reasonable to protect
its security interest in the Collateral. Borrower agrees to assemble the Collateral if Bank so requires, and to make the Collateral available to Bank as Bank may designate. Borrower authorizes Bank to enter the premises where the Collateral is
located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge, or lien which in Bank’s determination appears to be prior or superior to its security interest
and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such premises and to occupy the same, without charge, in order to
exercise any of Bank’s rights or remedies provided herein, at law, in equity, or otherwise; 
 (e) Set off and apply to the Obligations
any and all (i) balances and deposits of Borrower held by Bank, and (ii) indebtedness at any time owing to or for the credit or the account of Borrower held by Bank; 

(f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Collateral. Bank is hereby granted a license or other right, solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade
names, trademarks, service marks, and advertising matter, or any property of a 

  

					
	Comerica Bank – Loan and Security Agreement	 	Page 11	  	

 
similar nature, as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under
this Section 9.1, Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s benefit; 
 (g)
Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Borrower’s premises) as Bank determines is commercially
reasonable, and apply any proceeds to the Obligations in whatever manner or order Bank deems appropriate. Bank may sell the Collateral without giving any warranties as to the Collateral. Bank may specifically disclaim any warranties of title or the
like. This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. If Bank sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the
purchaser, received by Bank, and applied to the indebtedness of the purchaser. If the purchaser fails to pay for the Collateral, Bank may resell the Collateral and Borrower shall be credited with the proceeds of the sale; 

(h) Bank may credit bid and purchase at any public sale; 

(i) Apply for the appointment of a receiver, trustee, liquidator or conservator of the Collateral, without notice and without regard to the
adequacy of the security for the Obligations and without regard to the solvency of Borrower, any guarantor or any other Person liable for any of the Obligations; and 

(j) Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower. 

Bank may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered
adversely to affect the commercial reasonableness of any sale of the Collateral. 
 9.2 Power of Attorney. Effective only upon the
occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers, or employees) as Borrower’s true and lawful attorney to: (a) send requests for
verification of Accounts or notify account debtors of Bank’s security interest in the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that may come into Bank’s possession; (c) sign
Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts, and notices to account debtors; (d) dispose of any Collateral;
(e) make, settle, and adjust all claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms
which Bank determines to be reasonable; and (g) file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature of Borrower where permitted by law;
provided Bank may exercise such power of attorney to sign the name of Borrower on any of the documents described in clause (g) above, regardless of whether an Event of Default has occurred. The appointment of Bank as Borrower’s attorney in
fact, and each and every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and Bank’s obligation to
provide advances hereunder is terminated. 
 9.3 Accounts Collection. At any time after the occurrence and during the continuation of
an Event of Default, Bank may notify any Person owing funds to Borrower of Bank’s security interest in such funds and verify the amount of such Account. At any time after the occurrence and during the continuation of an Event of Default,
Borrower shall collect all amounts owing to Borrower for Bank, receive in trust all payments as Bank’s trustee, and immediately deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements
for deposit. 
 9.4 Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons
or entities, as required under the terms of this Agreement, then Bank may do any or all of the following after reasonable notice to Borrower: (a) make payment of the same or any part thereof; (b) set up such reserves under the Term Loan as
Bank deems necessary to protect Bank from the exposure created by such failure; or (c) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and take any

  

					
	Comerica Bank – Loan and Security Agreement	 	Page 12	  	

 
action with respect to such policies as Bank deems prudent. Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest
at the then applicable rate hereinabove provided, and shall be secured by the Collateral. Any payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under
this Agreement. 
 9.5 Bank’s Liability for Collateral. Bank has no obligation to clean up or otherwise prepare the Collateral
for sale. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower. 
 9.6 No Obligation to Pursue
Others. Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other Person liable for them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all
without affecting Bank’s rights against Borrower. Borrower waives any right it may have to require Bank to pursue any other Person for any of the Obligations. 

9.7 Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be
cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of
Default on Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver, election, or acquiescence by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and
then shall be effective only in the specific instance and for the specific purpose for which it was given. Borrower expressly agrees that this Section 9.7 may not be waived or modified by Bank by course of performance, conduct, estoppel or
otherwise. 
 9.8 Demand; Protest. Except as otherwise provided in this Agreement, Borrower waives demand, protest, notice of
protest, notice of default or dishonor, notice of payment and nonpayment and any other notices relating to the Obligations. 
  

	10.	NOTICES. 

 Unless otherwise provided in this Agreement, all notices or demands by any
party relating to this Agreement or any other agreement entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid or
electronically in accordance with Section 6.2) shall be personally delivered or sent by a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by facsimile to Borrower or to Bank, as the case may
be, at its addresses set forth below: 
  

			
	If to Borrower:	  	Cidara Therapeutics, Inc.
		  	6310 Nancy Ridge Drive
		  	Suite 101
		  	San Diego, CA 92121
		  	Attn: Kevin Forrest
		  	FAX: (858) 408-3509
		
	If to Bank:	  	Comerica Bank
		  	M/C 7578
		  	39200 Six Mile Rd.
		  	Livonia, MI 48152
		  	Attn: National Documentation Services
		
	with a copy to:	  	Comerica Bank
		  	10500 NE 8th St. Suite 1905
		  	Bellevue, WA 98004
		  	Attn: Douglas Hollenbeck
		  	Phone: (425) 452-2508
		  	Fax: (425) 452-2510

  

					
	Comerica Bank – Loan and Security Agreement	 	Page 13	  	

 The parties hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other. 
  

	11.	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

 This Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of California, without regard to principles of conflicts of law. Each of Borrower and Bank hereby submits to the exclusive jurisdiction of the State and Federal courts located in the State
of California. THE UNDERSIGNED ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO
CONSULT) WITH COUNSEL OF ITS, HIS OR HER CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER DOCUMENT,
INSTRUMENT OR AGREEMENT BETWEEN THE UNDERSIGNED PARTIES. 
  

	12.	REFERENCE PROVISION. 

 12.1 In the event the Jury Trial Waiver set forth above is not
enforceable, the parties elect to proceed under this Judicial Reference Provision. 
 12.2 With the exception of the items specified in
Section 12.3, below, any controversy, dispute or claim (each, a “Claim”) between the parties arising out of or relating to this Agreement or any other document, instrument or agreement between the undersigned parties (collectively in
this Section, the “Comerica Documents”), will be resolved by a reference proceeding in California in accordance with the provisions of Sections 638 et seq. of the California Code of Civil Procedure (“CCP”), or their successor
sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as otherwise provided in the Comerica Documents, venue for the reference proceeding
will be in the Superior Court in the County where the real property involved in the action, if any, is located or in a County where venue is otherwise appropriate under applicable law (the “Court”). 

12.3 The matters that shall not be subject to a reference are the following: (i) foreclosure of any security interests in real or
personal property, (ii) exercise of self-help remedies (including, without limitation, set-off), (iii) appointment of a receiver and (iv) temporary, provisional or ancillary remedies (including, without limitation, writs of
attachment, writs of possession, temporary restraining orders or preliminary injunctions). This Agreement does not limit the right of any party to exercise or oppose any of the rights and remedies described in clauses (i) and (ii) or to
seek or oppose from a court of competent jurisdiction any of the items described in clauses (iii) and (iv). The exercise of, or opposition to, any of those items does not waive the right of any party to a reference pursuant to this Agreement.

 12.4 The referee shall be a retired Judge or Justice selected by mutual written agreement of the parties. If the parties do not agree
within ten (10) days of a written request to do so by any party, then, upon request of any party, the referee shall be selected by the Presiding Judge of the Court (or his or her representative). A request for appointment of a referee may be
heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. 
 12.5
The parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested, subject to change in the time periods specified herein for good cause shown, to (i) set the matter for a status
and trial-setting conference within fifteen (15) days after the date of selection of the referee, (ii) if practicable, try all issues of law or fact within one hundred twenty (120) days after the date of the conference and
(iii) report a statement of decision within twenty (20) days after the matter has been submitted for decision. 
 12.6 The referee
will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever. Unless
otherwise ordered based upon good cause shown, no party shall be entitled to “priority” in conducting discovery, depositions may be taken by either party upon seven (7) days written 

  

					
	Comerica Bank – Loan and Security Agreement	 	Page 14	  	

 
notice, and all other discovery shall be responded to within fifteen (15) days after service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to
the referee whose decision shall be final and binding. 
 12.7 Except as expressly set forth in this Agreement, the referee shall determine
the manner in which the reference proceeding is conducted including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and
hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before the referee, and the referee will be provided
a courtesy copy of the transcript. The party making such a request shall have the obligation to arrange for and pay the court reporter. Subject to the referee’s power to award costs to the prevailing party, the parties will equally share the
cost of the referee and the court reporter at trial. 
 12.8 The referee shall be required to determine all issues in accordance with
existing case law and the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable
as well as legal relief, enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a court proceeding, including without limitation motions for summary judgment or summary adjudication. The
referee shall issue a decision at the close of the reference proceeding which disposes of all claims of the parties that are the subject of the reference. Pursuant to CCP § 644, such decision shall be entered by the Court as a judgment or an
order in the same manner as if the action had been tried by the Court and any such decision will be final, binding and conclusive. The parties reserve the right to appeal from the final judgment or order or from any appealable decision or order
entered by the referee. The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference
proceeding under this provision. 
 12.9 If the enabling legislation which provides for appointment of a referee is repealed (and no
successor statute is enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration will be conducted by a retired judge or Justice, in accordance
with the California Arbitration Act §1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding. 

12.10 THE PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A
REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, AGREES THAT THIS REFERENCE PROVISION
WILL APPLY TO ANY CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE OTHER COMERICA DOCUMENTS. 
  

	13.	GENERAL PROVISIONS. 

 13.1 Successors and Assigns. This Agreement shall bind and
inure to the benefit of the respective successors and permitted assigns of each of the parties and shall bind all persons who become bound as a debtor to this Agreement; provided, however, that neither this Agreement nor any rights hereunder may be
assigned by Borrower without Bank’s prior written consent, which consent may be granted or withheld in Bank’s sole discretion. Bank shall have the right without the consent of or notice to Borrower to sell, transfer, negotiate, or grant
participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits hereunder. 
 13.2
Indemnification. BORROWER SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS BANK AND ITS OFFICERS, EMPLOYEES, AND AGENTS AGAINST: (A) ALL OBLIGATIONS, DEMANDS, CLAIMS, AND LIABILITIES CLAIMED OR ASSERTED BY ANY OTHER PARTY IN CONNECTION WITH THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND/OR THE LOAN DOCUMENTS; AND (B) ALL LOSSES OR BANK EXPENSES IN ANY WAY SUFFERED, INCURRED, OR PAID BY BANK, ITS OFFICERS, EMPLOYEES AND AGENTS AS A RESULT OF OR IN ANY WAY ARISING OUT OF,
FOLLOWING, OR CONSEQUENTIAL TO TRANSACTIONS BETWEEN 

  

					
	Comerica Bank – Loan and Security Agreement	 	Page 15	  	

 
BANK AND BORROWER WHETHER UNDER THIS AGREEMENT, OR OTHERWISE (INCLUDING WITHOUT LIMITATION REASONABLE ATTORNEYS FEES AND EXPENSES), EXCEPT FOR LOSSES CAUSED BY BANK’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT. 
 13.3 Time of Essence. Time is of the essence for the performance of all obligations set forth in this
Agreement. 
 13.4 Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this
Agreement for the purpose of determining the legal enforceability of any specific provision. 
 13.5 Amendments in Writing,
Integration. All amendments to or terminations of this Agreement or the other Loan Documents must be in writing signed by the parties. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto
with respect to the subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the Loan Documents. 

13.6 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each
of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. 

13.7 Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long as
any Obligations (other than inchoate indemnity obligations) remain outstanding or Bank has any obligation to make any Credit Extension to Borrower. The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs
and liabilities described in Section 13.2 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have run. 

13.8 Confidentiality. In handling any confidential information, Bank and all employees and agents of Bank shall exercise the same
degree of care that Bank exercises with respect to its own proprietary information of the same types to maintain the confidentiality of any non-public information thereby received or received pursuant to this Agreement except that disclosure of such
information may be made (i) to the parent, subsidiaries, or Affiliates and service providers of Bank, (ii) to prospective transferees, participants, or purchasers of any interest in the Obligations, (iii) as required by law,
regulations, rule or order, subpoena, judicial order or similar order, (iv) as may be required in connection with the examination, audit or similar investigation of Bank, (v) to Bank’s accountants, auditors and regulators, and
(vi) as Bank may determine in connection with the enforcement of any remedies hereunder. Confidential information hereunder shall not include information that either: (a) is in the public domain or in the knowledge or possession of Bank
when disclosed to Bank, or becomes part of the public domain after disclosure to Bank through no fault of Bank; or (b) is disclosed to Bank by a third party, provided Bank does not have actual knowledge that such third party is prohibited from
disclosing such information. 
 [signatures on following page] 

  

					
	Comerica Bank – Loan and Security Agreement		Page 16		

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

	
	CIDARA THERAPEUTICS, INC.

  

			
	By:		 /s/ Kevin Forrest

		
	Name:		 Kevin Forrest

		
	Title:		 Chief Operating Officer

	
	COMERICA BANK
		
	By:		 /s/ J.P. Michael

		
	Name:		 J.P. Michael

		
	Title:		 Senior Vice President

  
 [Signature Page to Loan
and Security Agreement (4354663)] 

 EXHIBIT A 

DEFINITIONS 
 “Accounts” means all presently existing
and hereafter arising accounts, contract rights, payment intangibles and all other forms of obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or
the rendering of services by Borrower and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing. 

“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls or is
controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors, and partners. 
 “Bank
Expenses” means all costs or expenses of Bank, or any other holder or owner of the Loan Documents (including, without limit, court costs, legal expenses and reasonable attorneys’ fees and expenses, whether generated in-house or by outside
counsel, whether or not suit is instituted, and, if suit is instituted, whether at trial court level, appellate court level, in a bankruptcy, probate or administrative proceeding or otherwise) incurred in connection with the preparation,
negotiation, execution, delivery, amendment, administration, and performance, or incurred in collecting, attempting to collect under the Loan Documents or the Obligations, or incurred in defending the Loan Documents, or incurred in any other matter
or proceeding relating to the Loan Documents or the Obligations; and reasonable Collateral audit fees. 
 “Board of Directors” means the Board of
Directors of Borrower. 
 “Borrower State” means Delaware, the state under whose laws Borrower is organized. 

“Borrower’s Books” means all of Borrower’s books and records including: ledgers; records concerning Borrower’s assets or liabilities,
the Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment, containing such information. 

“Business Day” means any day that is not a Saturday, Sunday, or other day on which banks in the State of California are authorized or required to
close. 
 “Change in Control” shall mean any transaction or series of related transactions in which any “person” or “group”
(within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient
number of shares of all classes of Equity Interests then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a majority of the Board of Directors of
Borrower, who did not have such power before such transaction (other than in connection with a Qualified Public Offering). 
 “Closing Date” means
the date of this Agreement. 
 “Code” means the California Uniform Commercial Code as amended or supplemented from time to time. 

“Collateral” means the property described on Exhibit B attached hereto and all Negotiable Collateral to the extent not described on
Exhibit B, except to the extent any such property (i) is nonassignable by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law,
including, without limitation, Sections 9406 and 9408 of the Code), (ii) the granting of a security interest therein is contrary to applicable law, provided that upon the cessation of any such restriction or prohibition, such property shall
automatically become part of the Collateral, or (iii) constitutes the Equity Interests of a controlled foreign corporation (as defined in the IRC), in excess of sixty five percent (65%) of the voting power of all classes of Equity
Interests of such controlled foreign corporations entitled to vote. 

  

					
		 	Exhibit A – Page 1	  	

 “Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent
or otherwise, of that Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or
discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued
or provided for the account of that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designed
to protect such Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary
course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable,
the maximum reasonably anticipated liability in respect thereof as determined by Bank in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support
arrangement. 
 “Copyrights” means any and all copyright rights, copyright applications, copyright registrations and like protections in each work
or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held. 

“Dollars” mean lawful money of the United States. 

“Environmental Laws” means all laws, rules, regulations, orders and the like issued by any federal state, local foreign or other governmental or
quasi-governmental authority or any agency pertaining to the environment or to any hazardous materials or wastes, toxic substances, flammable, explosive or radioactive materials, asbestos or other similar materials. 

“Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in
which Borrower has any interest. 
 “Equity Interests” means, with respect to any Person, the capital stock, partnership or limited liability
company interest, or other equity securities or equity ownership interests of such Person. 
 “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, and the regulations thereunder. 
 “Event of Default” has the meaning assigned in Article 8. 

“GAAP” means generally accepted accounting principles, consistently applied, as in effect from time to time in the United States of America. 

“Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without
limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, and (d) all
Contingent Obligations. 
 “Insolvency Proceeding” means any proceeding commenced by or against any Person or entity under any provision of the
United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings
seeking reorganization, arrangement, or other relief. 
 “Intellectual Property” means any Copyrights, Patents, Trademarks, servicemarks and
applications therefor, now owned or hereafter acquired, or any claims for damages by way of any past, present and future infringement of any of the foregoing. 

“Inventory” means all present and future inventory in which Borrower has any interest. 

  

					
		 	Exhibit A – Page 2	  	

 “Investment” means any beneficial ownership (including Equity Interests) of any Person, or any loan,
advance or capital contribution to any Person. 
 “IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 

“Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 

“Loan Documents” means, collectively, this Agreement, the Pricing Addendum, any guaranty, any note or notes executed by Borrower, and any other
document, instrument or agreement entered into in connection with this Agreement, all as amended or extended from time to time. 
 “Material Adverse
Effect” means (i) a material adverse change in Borrower’s business or financial condition, (ii) a material impairment in the prospect of repayment of all or any portion of the Obligations or in otherwise performing
Borrower’s obligations under the Loan Documents, or (iii) a material impairment in the perfection, value or priority of Bank’s security interests in the Collateral. 

“Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts, instruments
(including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing. 

“Obligations” means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower pursuant to this Agreement or any other
agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing from
Borrower to others that Bank may have obtained by assignment or otherwise. Notwithstanding the foregoing, the “Obligations” shall not include any of Borrower’s obligations under the Warrant. 

“Patents” means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals,
reissues, extensions and continuations-in-part of the same. 
 “Periodic Payments” means all installments or similar recurring payments that
Borrower may now or hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument, or agreement now or hereafter in existence between Borrower and Bank. 

“Permitted Indebtedness” means: 
 (a)
Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan Document; 
 (b) Indebtedness existing on the
Closing Date and disclosed in the Schedule; 
 (c) Indebtedness not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate
in any fiscal year of Borrower secured by a lien described in clause (c) of the defined term “Permitted Liens,” provided such Indebtedness does not exceed the lesser of the cost or fair market value of the equipment financed with such
Indebtedness; 
 (d) Subordinated Debt; 

(e) Indebtedness to trade creditors incurred in the ordinary course of business; 

(f) Indebtedness that constitutes a Permitted Investment; 

(g) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 

  

					
		 	Exhibit A – Page 3	  	

 (h) Unsecured credit card Indebtedness not to exceed Five Hundred Thousand Dollars ($500,000);

 (i) Other indebtedness in the aggregate at any time outstanding not to exceed Two Hundred Fifty Thousand Dollars ($250,000); and 

(j) Extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the
terms modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
 “Permitted Investment” means: 

(a) Investments existing on the Closing Date disclosed in the Schedule; 

(b) (i) Marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof maturing
within one (1) year from the date of acquisition thereof, (ii) commercial paper maturing no more than one (1) year from the date of creation thereof and currently having rating of at least A-2 or P-2 from either Standard &
Poor’s Rating Service or Moody’s Investors Service, Inc., (iii) Bank’s certificates of deposit maturing no more than one (1) year from the date of investment therein, (iv) Bank’s money market accounts and deposit
accounts and (v) subject to Section 6.6 and provided that investments maintained in accounts with entities other than Bank are governed by control agreements reasonably satisfactory to Bank, investments allowed under Borrower’s Board
of Directors approved investment policy, which investment policy (and any modifications, amendments or replacements of such policy), shall have been delivered to, and deemed reasonably acceptable by, Bank; 

(c) Repurchases of Equity Interests from former or current employees, directors, or consultants, or officers of Borrower under the terms of
applicable equity repurchase agreements or equity purchase plans (i) in an aggregate amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in any fiscal year, provided that no Event of Default has occurred, is continuing or would
exist after giving effect to the repurchases, or (ii) in any amount where the consideration for the repurchase is the cancellation of indebtedness owed by such former employees, officers, directors, consultants, or employees to Borrower
regardless of whether an Event of Default exists; 
 (d) Investments accepted in connection with Permitted Transfers; 

(e) Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Subsidiaries not to exceed Two Hundred
Fifty Thousand Dollars ($250,000) in the aggregate in any fiscal year; 
 (f) Investments consisting of deposit accounts or securities
explicitly permitted under Section 6.6; 
 (g) Investments not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate
in any fiscal year consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of
Equity Interests of Borrower or its Subsidiaries pursuant to employee equity purchase agreements approved by Borrower’s Board of Directors; 

(h) Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in
settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business; 

(i) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not
Affiliates, in the ordinary course of business, provided that this subparagraph (h) shall not apply to Investments of Borrower in any Subsidiary; 

  

					
		 	Exhibit A – Page 4	  	

 (j) Joint ventures or strategic alliances in the ordinary course of Borrower’s business
consisting of the licensing of technology, the development of technology or the providing of technical support, provided that any cash Investments by Borrower do not exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate in any fiscal
year. 
 (k) Other investments not to exceed in the aggregate at any time Two Hundred Fifty Thousand Dollars ($250,000). 

“Permitted Liens” means: 
 (a) Any
Liens existing on the Closing Date and disclosed in the Schedule (excluding Liens to be satisfied with the proceeds of the Term Loan) or arising under this Agreement or the other Loan Documents; 

(b) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by
appropriate proceedings and for which Borrower maintains adequate reserves, provided the same have no priority over any of Bank’s security interests; 

(c) Liens securing Indebtedness not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate (i) upon or in any Equipment
(other than Equipment financed by a Term Loan Advance) acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of
such Equipment, or (ii) existing on such Equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such Equipment; 

(d) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in
clauses (a) through (c) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced
does not increase; 
 (e) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under
Sections 8.4 (attachment) or 8.8 (judgments/settlements); 
 (f) Liens in favor of customs and revenue authorities arising as a matter of
law, in the ordinary course of Borrower’s business, to secure payment of customs duties in connection with the importation of goods; 

(g) With respect to accounts explicitly permitted under Section 6.6, Liens in favor of other financial institutions arising in connection
with Borrower’s deposit accounts held at such institutions to secured standard fees for deposit services charged by, but not financing made available by such institutions, provided that Bank has a perfected security interest in the amounts held
in such deposit accounts; 
 (h) Easements, reservations, rights of way, restrictions, minor defects or irregularities in title and other
similar charges or encumbrance affecting real property not causing a material adverse effect on Borrower’s business or operations; 

(i) Licenses or sublicenses and, with respect to any licenses where Borrower is the licensee, any interest or title of a licensor or under any
such license or sublicense; 
 (j) Carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate proceedings if adequate reserves with respect thereto are maintained on the books
of the applicable Person; 

  

					
		 	Exhibit A – Page 5	  	

 (k) Liens to secure payment of workers’ compensation, employment insurance, old-age
pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 
 (l)
deposits to secure the performance of bids, trade contracts (other than for borrowed money), contracts for the purchase of property, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in
each case, incurred in the ordinary course of business and not representing an obligation for borrowed money; 
 (m) deposits or letters of
credit in favor of landlords to secure real estate leases, the aggregate outstanding amount of which, at any time, shall not exceed Two Hundred Fifty Thousand Dollars ($250,000); and 

(n) Liens securing Indebtedness permitted pursuant to clause (i) of the definition of “Permitted Indebtedness”. 

“Permitted Transfer” means the conveyance, sale, lease, transfer or disposition by Borrower or any Subsidiary of: 

(a) Inventory in the ordinary course of business; 

(b) licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of business and other
non-perpetual licenses that could result in a legal transfer of title of the licensed property that may be exclusive; 
 (c) Worn-out,
obsolete, or surplus Equipment; 
 (d) Transfers that are explicitly permitted by Section 7; 

(e) Transfers that constitute Permitted Investments under Clause (e) of the definition of Permitted Investment; 

(f) Transfers of investment property of Borrower for the sole purpose of obtaining replacement investment property with the proceeds of such
transfer, provided that Bank at all times has a perfected security interest therein; or 
 (g) Other assets of Borrower or its Subsidiaries
that were not financed with the proceeds of any Credit Extension, not to exceed One Hundred Thousand Dollars ($100,000) in the aggregate during any fiscal year. 

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency. 
 “Pricing
Addendum” means that certain LIBOR/Prime Referenced Rate Addendum attached hereto as Exhibit E. 
 “Prohibited Territory” means any
person or country listed by the Office of Foreign Assets Control of the United States Department of Treasury as to which transactions between a United States Person and that territory are prohibited. 

“Qualified Public Offering” means the sale of Borrower’s equity securities in a public offering. 

“Responsible Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller of
Borrower. 
 “Restricted Agreement” is any material license or other material agreement (other than over-the-counter software that is commercially
available to the public and “open source” licenses) to which Borrower is a party or under which 

  

					
		 	Exhibit A – Page 6	  	

 
Borrower is bound (including licenses and agreements under which Borrower is the licensee): (a) that prohibits or otherwise restricts Borrower from assigning to Bank, or granting to Bank a
Lien in, Borrower’s interest in such license or agreement, the rights arising thereunder or any other property, or (b) for which a default under or termination of such license or contract could interfere with the Bank’s right to use,
license, sell or collect any Collateral or otherwise exercise its rights and remedies with respect to the Collateral under the Loan Documents or applicable law. 

“Schedule” means the schedule of exceptions attached hereto and approved by Bank, if any, as the same may be updated from time to time (such updates
subject to Bank’s approval). 
 “SOS Reports” mean the official reports from the Secretaries of State of each Borrower State and other
applicable federal, state or local government offices identifying all current security interests filed in the Collateral and Liens of record as of the date of such report. 

“Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt owing by Borrower to Bank on terms reasonably
acceptable to Bank (and identified as being such by Borrower and Bank). 
 “Subsidiary” means any corporation, partnership or limited liability
company or joint venture in which (i) any general partnership interest or (ii) more than fifty percent (50%) of the Equity Interests of which by the terms thereof ordinary voting power to elect the Board of Directors, managers or
trustees of the entity, at the time as of which any determination is being made, is owned by Borrower, either directly or through an Affiliate. 

“Term Loan” means a Credit Extension of up to Ten Million Dollars ($10,000,000). 

“Term Loan Advance(s)” means a cash advance or cash advances under the Term Loan. 

“Term Loan Maturity Date” means December 29, 2018. 

“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like
protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 
 “United States” means the
United States of America. 
 “Warrant” means that certain Warrant to Purchase Stock issued on the Closing Date by Borrower to Bank. 

  

					
		 	Exhibit A – Page 7	  	

			
	DEBTOR:	  	CIDARA THERAPEUTICS, INC.
		
	SECURED PARTY:	  	COMERICA BANK

 EXHIBIT B 

COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT 

Collateral shall mean all personal property of Debtor of every kind, whether presently existing or hereafter created or acquired, and wherever
located, including but not limited to: (a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment
(including all accessions and additions thereto), general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be
furnished under a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any
of the foregoing, and the computers and equipment containing said books and records; and (b) any and all cash proceeds and/or noncash proceeds thereof, including, without limitation, insurance proceeds, and all supporting obligations and the
security therefor or for any right to payment. All terms above have the meanings given to them in the California Uniform Commercial Code, as amended or supplemented from time to time. 

Notwithstanding the foregoing, the Collateral shall not include the Intellectual Property; provided, however, that the Collateral shall
include all accounts and general intangibles that consist of rights to payment from the sale, licensing or disposition of all or any part of, or rights in, the Intellectual Property (the “Rights to Payment”). Notwithstanding the foregoing,
if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically, and
effective as of December 29, 2014, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in the Rights to Payment. 

  

					
		 	Exhibit B – Page 1	  	

 EXHIBIT C 

TECHNOLOGY & LIFE SCIENCES DIVISION 

LOAN ANALYSIS 
 LOAN
ADVANCE/PAYDOWN REQUEST FORM 
 DEADLINE FOR SAME DAY PROCESSING IS 3:00* P.M, P.S.T. 

DEADLINE FOR CREDIT EXTENSIONS IS 3:00 P.M., P.S.T.** 

DEADLINE FOR WIRE TRANSFERS IS 1.30 P.M, P.S.T. 

*At month end and the day before a holiday, the cut off time is 1:30 P.M., P.S.T. 

**Subject to 3 day advance notice. 
  

													
	TO: Loan Analysis	 		  	DATE:	  	  
	  		  	TIME:	 	  

	FAX #: (650) 462-6061	  		  		  		  		 	

  

							
	FROM:	  	 Cidara Therapeutics, Inc.
	  	TELEPHONE REQUEST (For Bank Use Only):
		  	Borrower’s Name	  		  	
	FROM:	  	  
	  	The following person is authorized to request the loan payment transfer/loan advance on the designated account and is known to me.
		  	Authorized Signer’s Name	  		  	
		  		  		  	  

	FROM:	  	  
	  		  	Authorized Requester & Phone #
		  	Authorized Signature (Borrower)	  		  	
		  		  		  	  

	PHONE #	  	  
	  		  	Received by (Bank ) & Phone #
				
	FROM ACCOUNT#:	  	  
	  		  	  

	(please include Note number, if applicable)	  		  	Authorized Signature (Bank)
				
	TO ACCOUNT#:	  	  
	  		  	
	(please include Note number, if applicable)	  		  	

  

									
	REQUESTED TRANSACTION TYPE	  	REQUESTED DOLLAR AMOUNT	  	For Bank Use Only
					
	PRINCIPAL INCREASE* (ADVANCE)	  	$        	  	Date Rec’d:	  		  	
	PRINCIPAL PAYMENT (ONLY)	  	$        	  	Time:	  		  	
		  		  	Comp. Status:	  	YES	  	NO
	OTHER INSTRUCTIONS:	  	Status Date:	  		  	
	  
	  	Time:	  		  	
	  
	  	Approval:	  		  	
	  
	  		  		  	

 All representations and warranties of Borrower stated in the Loan and Security Agreement are true, correct and complete in all
material respects as of the date of the telephone request for an advance confirmed by this Borrowing Certificate, including without limitation the representation that Borrower has paid for and owns the equipment financed by Bank; provided, however,
that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date. 
  

	*	IS THERE A WIRE REQUEST TIED TO THIS LOAN ADVANCE? (PLEASE CIRCLE ONE) YES NO 

 If YES,
the Outgoing Wire Transfer Instructions must be completed below. 
  

							
	OUTGOING WIRE TRANSFER INSTRUCTIONS	  	Fed Reference Number	  		  	Bank Transfer Number
		  	          
	  		  	
         

							
	
	The items marked with an asterisk (*) are required to be completed.
	*Beneficiary Name	  	
	*Beneficiary Account Number	  	
	*Beneficiary Address	  	
	Currency Type	  	US DOLLARS ONLY
	*ABA Routing Number (9 Digits)	  	
	*Receiving Institution Name	  	
	*Receiving Institution Address	  	
	*Wire Amount	  	$        

  

					
		 	Exhibit C – Page 1	  	

 EXHIBIT D 

COMPLIANCE CERTIFICATE 
  

			
	Please send all Required Reporting to:	 	Comerica Bank
		 	Technology & Life Sciences Division
		 	Loan Analysis Department
		 	250 Lytton Avenue
		 	3rd Floor, MC 4240
		 	Palo Alto CA 94301
		 	Phone: (650) 462-6060
		 	Fax: (650) 462-6061
		
	FROM: Cidara Therapeutics, Inc.	 	

 The undersigned authorized Officer of Cidara Therapeutics, Inc. (“Borrower”), hereby certifies that in accordance
with the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the period ending
            , 201     with all required covenants, including without limitation the ongoing registration of intellectual property rights in accordance with
Section 6.8, except as noted below and (ii) all representations and warranties of Borrower stated in the Agreement are true and correct in all material respects as of the date hereof; provided, however, that those representations and
warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date. Attached herewith are the required documents supporting the above certification (“Supporting Documents”). The
Officer further certifies the Supporting Documents are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied form one period to the next except as explained in an accompanying letter or footnotes.

 Please indicate compliance status by circling Yes/No under “Complies” or “Applicable” column, 

 

							
	 REPORTING COVENANTS
	 	 REQUIRED
	 	 COMPLIES

				
	 Company Prepared Monthly F/S
	 	Monthly, within 30 days	 	YES	 	NO
	 Compliance Certificate
	 	Monthly, within 30 days	 	YES	 	NO
	 CPA Audited, Unqualified F/S
	 	Annually, within 180 days of FYE	 	YES	 	NO
	 Annual Business Plan
	 	Annually, on or before 3/1	 	YES	 	NO
				
	 If Public:
	 		 		 	
	 10-Q
	 	Quarterly, within 5 days of SEC filing (50 days)	 	YES	 	NO
	 10-K
	 	Annually, within 5 days of SEC filing (95 days)	 	YES	 	NO
				
	 Total amount of Borrower’s cash and investments
	 	Amount: $                	 	YES	 	NO
	 Total amount of Borrower’s cash and investments maintained with Bank
	 	Amount: $                	 	YES	 	NO
			
	 	 	 DESCRIPTION
	 	 APPLICABLE

				
	 Legal Action > $250,000 (Sect. 6.2(iv))
	 	Notify promptly upon notice                 	 	YES	 	NO
	 Inventory Disputes> $100,000 (Sect. 6.3)
	 	Notify promptly upon notice                 	 	YES	 	NO
	 Mergers & Acquisitions> $100,000 (Sect. 7.3)
	 	Notify promptly upon notice                 	 	YES	 	NO
	 Cross default with other agreements >$100,000 (Sect. 8.6)
	 	Notify promptly upon notice                 	 	YES	 	NO
	 Judgments/Settlements > $250,000 (Sect. 8.8)
	 	Notify promptly upon notice                 	 	YES	 	NO

 
  

													
	FINANCIAL COVENANTS	  	REQUIRED	 	  	ACTUAL	 	  	 COMPLIES

					
	 Permitted Indebtedness for equipment leases
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO
	 Permitted Investments for stock repurchase
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO
	 Permitted Investments for subsidiaries
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO
	 Permitted Investments for employee loans
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO
	 Permitted Investments for joint ventures
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO
	 Permitted Liens for equipment leases
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO
	 Permitted Transfers
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO
	 Permitted Indebtedness for other unsecured indebtedness
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO
	 Permitted Investments for other investments
	  	<$	250,000	  	  	$	        	  	  	YES	  	NO

 Please Enter Below Comments Regarding Violations: 

  

					
		 	Exhibit D – Page 1	  	

 The undersigned further acknowledges that at any time Borrower is not in compliance with all the terms set forth
in the Agreement, including, without limitation, the financial covenants, no Credit Extensions will be made. 
  

	
	Very truly yours,
	
	CIDARA THERAPEUTICS, INC.
	
	  

	Authorized Signer
	
	  

	Name
	
	  

	Title

  

					
		 	Exhibit D – Page 2	  	

 EXHIBIT E 

PRICING ADDENDUM 
 (See
Attached) 

  

					
		 	Exhibit E – Page 1	  	

 SCHEDULE OF EXCEPTIONS 

TO LOAN AND SECURITY AGREEMENT 

Permitted Indebtedness (Exhibit A) 
 None 

Permitted Investments (Exhibit A) 
 None 

Permitted Liens (Exhibit A) 
 None 

Security Interests (Section 4.1) 
 None. 

Collateral (Section 5.3) 
 None. 

Intellectual Property (Section 5.4) 
 None. 

Prior Names (Section 5.5) 
 K2 Therapeutics 

Inventory or Equipment Locations (Section 5.5) 
 6310
Nancy Ridge Drive, Suite 101, San Diego, CA 92121 
 Litigation (Section 5.6) 

None 
 Inbound Licenses (Section 5.12) 

None 
 Inbound Licenses (Section 5.12) 

 To: CIDARA THERAPEUTICS, INC. 

USA PATRIOT ACT 
 NOTICE

 OF 
 CUSTOMER
IDENTIFICATION 
 IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT 

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and
record information that identifies each person who opens an account. 
 WHAT THIS MEANS FOR YOU: when you open an account, we will ask your name, address,
date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. 

			
	DEBTOR:	  	Cidara Therapeutics, Inc.
		
	SECURED PARTY:	  	COMERICA BANK

 EXHIBIT A to UCC Financing Statement 

COLLATERAL DESCRIPTION ATTACHMENT TO UCC NATIONAL FINANCING FORM 

Collateral shall mean all personal property of Debtor of every kind, whether presently existing or hereafter created or acquired, and wherever
located, including but not limited to: (a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment
(including all accessions and additions thereto), general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be
furnished under a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any
of the foregoing, and the computers and equipment containing said books and records; and (b) any and all cash proceeds and/or noncash proceeds thereof, including, without limitation, insurance proceeds, and all supporting obligations and the
security therefor or for any right to payment. All terms above have the meanings given to them in the California Uniform Commercial Code, as amended or supplemented from time to time. 

Notwithstanding the foregoing, the Collateral shall not include any copyrights, patents, trademarks, servicemarks and applications therefor,
now owned or hereafter acquired, or any claims for damages by way of any past, present and future infringement of any of the foregoing (collectively, the “Intellectual Property”); provided, however, that the Collateral shall include all
accounts and general intangibles that consist of rights to payment from the sale, licensing or disposition of all or any part of, or rights in, the Intellectual Property (the “Rights to Payment”). Notwithstanding the foregoing, if a
judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically, and effective
as of December 29, 2014, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in the Rights to Payment.EX-10.12

 Exhibit 10.12 

ASSET PURCHASE AGREEMENT 

ACQUISITION OF CERTAIN ASSETS OF 

SEACHAID PHARMACEUTICALS, INC. 

BY 
 K2 THERAPEUTICS,
INC. 
 DATED AS OF MAY 30, 2014 

 TABLE OF CONTENTS 

 

							
	 	    	 	  	Page 1	 
			
	 ARTICLE I
	    	         DEFINITIONS
	  	 	1	  
			
	 1.1
	    	 Definitions
	  	 	1	  
	 1.2
	    	 Interpretation
	  	 	7	  
			
	 ARTICLE II
	    	         PURCHASE & SALE OF PURCHASED ASSETS
	  	 	7	  
			
	 2.1
	    	 Purchased Assets
	  	 	7	  
	 2.2
	    	 Excluded Assets
	  	 	8	  
	 2.3
	    	 Assumed Liabilities
	  	 	9	  
	 2.4
	    	 Retained Liabilities
	  	 	9	  
	 2.5
	    	 Purchase Price; Payment of Purchase Price
	  	 	10	  
	 2.6
	    	 Allocation of Purchase Price
	  	 	10	  
	 2.7
	    	 Closing
	  	 	10	  
	 2.8
	    	 Transfer Taxes
	  	 	10	  
			
	 ARTICLE III
	    	         REPRESENTATIONS AND WARRANTIES OF SELLER
	  	 	11	  
			
	 3.1
	    	 Organization and Qualification
	  	 	11	  
	 3.2
	    	 Authority Relative to this Agreement
	  	 	11	  
	 3.3
	    	 No Conflict
	  	 	11	  
	 3.4
	    	 Required Filings and Consents
	  	 	12	  
	 3.5
	    	 Intellectual Property
	  	 	12	  
	 3.6
	    	 Contracts
	  	 	14	  
	 3.7
	    	 Compliance with Laws
	  	 	15	  
	 3.8
	    	 Claims and Proceedings
	  	 	15	  
	 3.9
	    	 Regulatory Compliance
	  	 	16	  
	 3.10
	    	 No Finder
	  	 	16	  
	 3.11
	    	 Financial Statements
	  	 	17	  
	 3.12
	    	 Solvency
	  	 	17	  
	 3.13
	    	 Capitalization, Etc.
	  	 	17	  
			
	 ARTICLE IV
	    	         REPRESENTATIONS AND WARRANTIES OF PURCHASER
	  	 	17	  
			
	 4.1
	    	 Organization and Qualification
	  	 	18	  
	 4.2
	    	 Authority Relative to this Agreement
	  	 	18	  
	 4.3
	    	 No Conflict
	  	 	18	  
	 4.4
	    	 Required Filings and Consents
	  	 	19	  
	 4.5
	    	 Capitalization; Subsidiaries
	  	 	19	  
	 4.6
	    	 No Finder
	  	 	20	  
	 4.7
	    	 Liabilities
	  	 	20	  
	 4.8
	    	 Agreements; Action
	  	 	20	  
	 4.9
	    	 Obligations to Related Parties
	  	 	21	  
	 4.10
	    	 Changes
	  	 	21	  
	 4.11
	    	 Title to Properties and Assets; Liens, Etc.
	  	 	22	  
	 4.12
	    	 Intellectual Property
	  	 	22	  
	 4.13
	    	 Litigation
	  	 	23	  
	 4.14
	    	 Tax Returns and Payments
	  	 	23	  

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	    	 	  	Page 2	 
			
	 4.15
	    	 Employees
	  	 	24	  
	 4.16
	    	 Compliance with Laws; Permits
	  	 	24	  
	 4.17
	    	 Environmental and Safety Laws
	  	 	24	  
	 4.18
	    	 Real Property Holding Corporation
	  	 	24	  
			
	 ARTICLE V
	    	         CLOSING DELIVERABLES
	  	 	25	  
			
	 5.1
	    	 Closing Deliverables of Purchaser
	  	 	25	  
	 5.2
	    	 Closing Deliverables of Seller
	  	 	25	  
			
	 ARTICLE VI
	    	         ADDITIONAL COVENANTS
	  	 	26	  
			
	 6.1
	    	 Further Assurances
	  	 	26	  
	 6.2
	    	 Expenses
	  	 	26	  
	 6.3
	    	 Public Announcements
	  	 	26	  
	 6.4
	    	 Confidentiality
	  	 	26	  
	 6.5
	    	 Transfer of Files
	  	 	27	  
	 6.6
	    	 Investor Agreements of Purchaser
	  	 	27	  
	 6.7
	    	 Distribution of Equity Consideration
	  	 	27	  
			
	 ARTICLE VII
	    	         SURVIVAL; INDEMNIFICATION
	  	 	27	  
			
	 7.1
	    	 Survival of Representations and Warranties
	  	 	27	  
	 7.2
	    	 Indemnification by Seller
	  	 	27	  
	 7.3
	    	 Indemnification by Purchaser
	  	 	28	  
	 7.4
	    	 Notice of Claims
	  	 	28	  
	 7.5
	    	 Limitation of Claims
	  	 	28	  
	 7.6
	    	 Objections to Claims
	  	 	29	  
	 7.7
	    	 Resolution of Conflicts
	  	 	29	  
	 7.8
	    	 Third Party Claims
	  	 	29	  
	 7.9
	    	 Survival of Indemnification Claims
	  	 	31	  
	 7.10
	    	 Tax Effect of Indemnification Payments
	  	 	31	  
	 7.11
	    	 Sole Remedy
	  	 	31	  
			
	 ARTICLE VIII
	    	         GENERAL
	  	 	31	  
			
	 8.1
	    	 Notices
	  	 	31	  
	 8.2
	    	 Severability
	  	 	32	  
	 8.3
	    	 Successors and Assigns; Parties In Interest
	  	 	33	  
	 8.4
	    	 Incorporation of Exhibits
	  	 	33	  
	 8.5
	    	 Governing Law
	  	 	33	  
	 8.6
	    	 Headings; Interpretation
	  	 	34	  
	 8.7
	    	 Counterparts; Facsimiles
	  	 	34	  
	 8.8
	    	 Entire Agreement
	  	 	34	  
	 8.9
	    	 Waivers and Amendments; Non-Contractual Remedies
	  	 	34	  
	 8.10
	    	 Knowledge
	  	 	34	  
	 8.11
	    	 Time Of The Essence
	  	 	34	  
	 8.12
	    	 Specific Performance
	  	 	34	  

  
 ii 

 EXHIBIT LIST 
  

			
	EXHIBIT A-1	    	Form of Assignment and Assumption Agreement
		
	EXHIBIT A-2	    	Patent Assignment
		
	EXHIBIT B-1	    	Allocation of Purchase Price Methodology
		
	EXHIBIT B-2	    	Form 8594
		
	EXHIBIT C	    	Purchaser’s Amended and Restated Certificate of Incorporation
		
	EXHIBIT D	    	Form of Consent and Release Agreement
		
	EXHIBIT E	    	Seller’s Capitalization Table
	  
 SCHEDULE LIST

 

	SCHEDULE I	    	Patents and Patent Applications
		
	SCHEDULE II	    	Transferred Agreements

  
 iii 

 ASSET PURCHASE AGREEMENT 

This ASSET PURCHASE AGREEMENT is made as of May 30, 2014 by and between K2 THERAPEUTICS,
INC., a Delaware corporation (“Purchaser”), and SEACHAID PHARMACEUTICALS, INC., a Delaware corporation (“Seller”). 

RECITALS: 
 Subject to the
terms and conditions set forth herein, Seller desires to sell, convey, transfer, assign and deliver to Purchaser, and Purchaser desires to purchase and acquire from Seller, free and clear of all Encumbrances (other than the Assumed Liabilities and
Permitted Encumbrances, and those arising under the Transferred Agreements), all of Seller’s right, title and interest in and to all of the Purchased Assets (the “Acquisition”). 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are
hereby expressly acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 
 1.1
Definitions. As used herein, the following terms shall have the following meanings: 
 “Activities to
Date” shall have the meaning given to such term in Section 3.9(a). 
 “Acquisition” shall have the
meaning given to such term in the Recitals. 
 “Affiliate” means with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control with such Person; provided, that, for purposes of this definition, “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through
the ownership of voting securities or by contract or otherwise. 
 “Agreement” means this Asset Purchase Agreement.

 “Assignment and Assumption Agreement” shall have the meaning given to such term in Section 2.5(b). 

“Assumed Liabilities” shall have the meaning given to such term in Section 2.3. 

“Claim” shall have the meaning given to such term in Section 3.8. 

“Closing” shall have the meaning given to such term in Section 2.7. 

“Closing Date” shall have the meaning given to such term in Section 2.7. 

  
 1 

 “Code” means the Internal Revenue Code of 1986, as it may be amended from
time to time, and any successor thereto. 
 “Confidential Information Agreements” shall have the meaning given to
such term in Section 4.15. 
 “Consent and Release Agreement” shall have the meaning given to such term in
Section 5.2(c). 
 “Contract” means, with respect to any Party, any contract or agreement, whether oral or
written, between such Party and any other Person(s). 
 “Contract Consents” shall have meaning given to such term in
Section 3.6(a). 
 “Control” or “Controlled,” with respect to any Information or
intellectual property right, means possession by an entity of the ability (whether by ownership, license or otherwise) to grant access to, to grant use of, or to grant a license or a sublicense of or under such Information or intellectual property
right, in each case subject to the terms of any agreement or other arrangement with any third party. 
 “Damages”
shall have the meaning given to such term in Section 7.2. 
 “Debarred Entity” shall mean a corporation,
partnership, or association that has been debarred by the FDA pursuant to 21 U.S.C. § 335a(a) or (b) from submitting or assisting in the submission of any abbreviated drug application. 

“Debarred Individual” shall mean an individual who has been debarred by the FDA pursuant to 21 U.S.C. § 335a(a)
or (b) from providing services in any capacity to a Person that has an approved or pending drug product application. 

“EMA” shall mean the European Medicines Agency or any successor agency thereof or, to the extent the mutual
recognition procedure is used for a licensed product in the European Union, any governmental authority having the authority to regulate the sale of medicinal or pharmaceutical products in any country in the European Union through marketing approval,
not including governmental authorities with responsibility solely for pricing or reimbursement approvals. 

“Encumbrance” shall mean any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance, equity,
trust, equitable interest, claim, preference, right of possession, lease, tenancy, license, encroachment, covenant, infringement, interference, Order, proxy, option, right of first refusal, right of first negotiation, preemptive right, community
property interest, legend, defect, impediment, reservation, limitation, impairment, imperfection of title, escrow or restriction of any nature (including any restriction on the transfer or licensing of any asset, any restriction on the receipt of
any income derived from any asset, any restriction on the use of any asset and any restriction on the possession, exercise or transfer of any other attribute of ownership of any asset). 

“Equity Consideration” shall have the meaning set forth in Section 2.5(a). 

  
 2 

 “Excluded Assets” shall have the meaning given to such term in
Section 2.2. 
 “Excluded Patent Applications” shall have the meaning given to such term in
Section 2.2(g). 
 “Excluded Program Therapy Material” shall have the meaning given to such term in
Section 2.2(f). 
 “FDA” shall mean the Food and Drug Administration of the United States Department of Health
and Human Services or any successor agency thereof performing similar functions. 
 “Form 8594” shall have the
meaning given to such term in Section 2.6. 
 “Governmental Authorities” means all agencies, authorities, bodies,
boards, commissions, courts, instrumentalities, legislatures and offices of any nature whatsoever of any government or political subdivision, whether foreign, federal, state, county, district, municipality, city or otherwise. 

“Indemnification Cap” shall have the meaning given to such term in Section 7.5. 

“Indemnified Party” shall have the meaning given to such term in Section 7.4. 

“Indemnifying Party” shall have the meaning given to such term in Section 7.4. 

“Information” shall mean all tangible and intangible (a) techniques, technology, practices, trade secrets, inventions
(whether patentable or not), methods, knowledge, know-how, skill, experience, test data and results (including pharmacological, toxicological and clinical test data and results), formulations, processes, analytical and quality control data, results
or descriptions, software and algorithms and (b) compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material. 

“Intellectual Property” shall mean and include all assay components, biological materials, cell lines, preclinical and
clinical data, study designs, chemical compositions or structures, databases and data collections, diagrams, formulae, gate arrays, inventions (whether or not patentable), know-how, logos, marks (including brand names, product names, logos, and
slogans), methods, processes, proprietary information, protocols, sketches, designs, schematics, specifications, test results, test vectors, techniques, works of authorship, and other forms of technology (whether or not embodied in any tangible form
and including all tangible embodiments of the foregoing such as instruction manuals, laboratory notebooks, prototypes, samples, studies, and summaries). 

“Intellectual Property Rights” shall mean and include all rights of the following types, which may exist or be created
under the laws of any jurisdiction in the world: (a) rights associated with works of authorship, including exclusive exploitation rights, copyrights, moral rights, and mask works; (b) trademark and trade name rights and similar rights; (c) trade
secret rights; (d) patents and industrial property rights; (e) other proprietary rights in Intellectual Property of every kind and nature; and (f) all registrations, renewals, extensions, continuations,

  
 3 

 
divisions, or reissues of, and applications for, any of the rights referred to in clauses (a) through (e) above. 

“IRS” means the United States Internal Revenue Service. 

“Knowledge” shall have the meaning given to such term in Section 8.10. 

“Laws” means any federal, state, foreign or local statute, law, ordinance, regulation, rule, code, Order, other
requirement or rule of law. 
 “Liability” means any direct or indirect indebtedness, liability, assessment,
expense, claim, loss, damage, deficiency, obligation or responsibility, known or unknown, disputed or undisputed, joint or several, vested or unvested, executory or not, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or
unsecured, determinable or undeterminable, accrued or unaccrued, contingent or otherwise (including any liability under any guarantees, letters of credit, performance credits or with respect to insurance loss accruals). 

“Material Adverse Effect” means, with respect to any Party, any circumstances, state of facts or matters which might
reasonably be expected to have a material adverse effect in respect of such Party’s operations, properties, assets, condition (financial or otherwise), results, plans, strategies or prospects, taken as a whole. 

“Notice of Claim” shall have the meaning given to such term in Section 7.4. 

“Orders” shall have the meaning given to such term in Section 3.7. 

“Party” means Seller or Purchaser, individually, as the context so requires, and the term “Parties” means
collectively, Seller and Purchaser. 
 “Patent Assignment” shall have the meaning given to such term in
Section 2.5(c). 
 “Permitted Encumbrance” means (a) Encumbrances for Taxes not yet due and payable or being
contested in good faith by appropriate procedures and (b) other Encumbrances that are individually and in the aggregate immaterial to the operations of the Seller and/or ownership of the Purchased Assets. 

“Person” means an individual, corporation, partnership, limited partnership, limited liability company, limited
liability partnership, syndicate, person (including a “person” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder), trust, association,
entity or government or political subdivision, agency or instrumentality of a government. 
 “Plan” shall have the
meaning given to such term in Section 4.5 
 “Proceeding” shall mean any action, suit, litigation, arbitration,
proceeding (including any civil, criminal, administrative, investigative or appellate proceeding and any informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation

  
 4 

 
commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Authority or any arbitrator or arbitration panel. 

“Product Licenses” shall have the meaning given to such term in Section 3.9(a). 

“Program” shall mean all of Seller’s activities directed specifically to the development and manufacture of the
Program Therapy up to the Closing Date. 
 “Program IP” shall mean all Intellectual Property Rights and other
proprietary rights related to the Program Therapy (other than Program Patents and the Excluded Patent Applications) owned by Seller. 

“Program Know-How” shall mean Information not included in the Program Patents, which Information is: (a) Controlled by
Seller immediately prior to the Closing; and (b) directed to the development, manufacture (including synthesis, formulation, storage, breeding, finishing or packaging), use, offer for sale, sale or import of any Program Therapy. 

“Program Patents” shall mean: 

(a) the patents and patent applications listed on Schedule I; 

(b) any and all divisionals, continuations and continuations-in-part of the patents and patent applications referenced in the preceding
subsection (a); 
 (c) the foreign patent applications associated with the patent applications referenced in the preceding
subsections (a) and (b); 
 (d) the patents issued or issuing from the patent applications referenced in the preceding subsections
(a) through (c); and 
 (e) reissues, reexaminations, restorations (including supplemental protection certificates) and extensions of
any patent or patent application referenced in the preceding subsections (a) through (d). 
 “Program Technology”
shall mean the Program IP, Program Know-How and Program Patents. 
 “Program Therapy” shall mean: (a) the
Seller’s product candidate referred to as SP 3025, an echinocandin antifungal compound currently being developed as an antifungal agent suitable for once weekly intravenous, oral, sub-cutaneous and topical administration; and (b) any derivative
or extension of the therapy described in the preceding clause (a) existing as of the Closing Date. The Program Therapy does not include any right, title or interest in or to the Excluded Patent Applications or any patents issued in connection
therewith, including any divisionals, continuations or continuations-in-part. 
 “Purchase Price” shall have the
meaning given to such term in Section 2.5(a). 
 “Purchased Assets” shall have the meaning given to such term
in Section 2.1. 

  
 5 

 “Purchaser” shall have the meaning given to such term in the preamble of
this Agreement. 
 “Purchaser Disclosure Schedules” shall have the meaning given to such term in the first paragraph
of ARTICLE IV. 
 “Purchaser Indemnitees” shall have the meaning given to such term in Section 7.2. 

“Purchaser Third Party Claim” shall have the meaning given to such term in Section 7.8. 

“Purchaser’s Common Stock” shall have the meaning given to such term in Section 4.4(a). 

“Purchaser’s Preferred Stock” shall have the meaning given to such term in Section 4.4(a). 

“Purchaser’s Restated Charter” shall mean the Purchaser’s Amended and Restated Certificate of Incorporation,
as the same may be amended from time to time. 
 “Purchaser’s Series A Preferred Stock Purchase Agreement”
shall mean that certain Series A Preferred Stock Purchase Agreement, dated on even date herewith, by and among the Purchaser and the Purchasers set forth on Exhibit A thereto. 

“Regulatory Authority” shall mean any regulatory agency, ministry, department or other governmental body having
authority in any country or region to control the development, manufacture, marketing, and sale of any pharmaceutical, therapeutic, biologic or medical device product, including the FDA and EMA. 

“Representatives” means, with respect to any Party, such Party’s directors, officers, members, managers,
Affiliates, attorneys, accountants, representatives and other agents. 
 “Retained Liabilities” shall have the
meaning given to such term in Section 2.4. 
 “Seller” shall have the meaning given to such term in the
preamble of this Agreement. 
 “Seller Disclosure Schedules” shall have the meaning given to such term in the first
paragraph of ARTICLE III. 
 “Seller Indemnitees” shall have the meaning given to such term in
Section 7.3. 
 “Seller Third Party Claim” shall have the meaning given to such term in Section 7.8. 

“Seller-Licensed Patents” shall mean Program Patents owned solely or jointly by any Person other than Seller that are
licensed to the Seller. 
 “Seller-Owned Patents” shall mean Program Patents owned solely by the Seller or
Seller’s joint ownership interest in Program Patents owned jointly by the Seller and any other Person(s). 

  
 6 

 “Tax Return” means any return, report, statement, form or other
documentation (including any additional or supporting material and any amendments or supplements) filed or maintained, or required to be filed or maintained, with respect to or in connection with the calculation, determination, assessment or
collection of any Taxes. 
 “Taxes” means: (i) any and all taxes, fees, levies, duties, tariffs, imposts and other
charges of any kind, imposed by any taxing authority, including taxes or other charges on, measured by, or with respect to income, franchise, windfall or other profits, gross receipts, property, sales, use, capital stock, payroll, employment, social
security, workers’ compensation, unemployment compensation or net worth; taxes or other charges in the nature of excise, withholding, ad valorem, stamp, transfer, value-added or gains taxes; (ii) any Liability for the payment of any amounts of
the type described in (i) as a result of being a member of an affiliated, combined, consolidated or unitary group for any taxable period; (iii) any Liability for the payment of amounts of the type described in (i) or (ii) as a result of being a
transferee of, or a successor in interest to, any Person or as a result of an express or implied obligation to indemnify any Person; and (iv) any and all interest, penalties, additions to tax and additional amounts imposed in connection with or with
respect to any amounts described in (i), (ii) or (iii). 
 “Transaction Documents” means, collectively, this
Agreement, the Patent Assignment, the Consent and Release Agreements, and the Assignment and Assumption Agreement. 

“Transaction Expenses” shall have the meaning given to such term in Section 6.2. 

“Transferred Agreements” shall have the meaning given to such term in Section 2.1(b). 

“Unaudited Financial Statements” shall have the meaning given to such term in Section 3.11. 

1.2 Interpretation. Unless the context otherwise requires, the terms defined in Section 1.1 shall have the meanings herein
specified for all purposes of this Agreement, applicable to both the singular and plural forms of any of the terms defined herein. When a reference is made in this Agreement to Sections, Schedules or Exhibits, such reference shall be to a Section
of, or a Schedule or Exhibit to, this Agreement unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words
“without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this
Agreement. 
 ARTICLE II 

PURCHASE & SALE OF PURCHASED ASSETS 

2.1 Purchased Assets. Subject to the terms and conditions of this Agreement, at the Closing, Seller shall sell, convey, transfer,
assign and deliver to Purchaser, and Purchaser shall purchase and acquire from Seller, free and clear of all Encumbrances (other than the Assumed Liabilities and Permitted Encumbrances, and those arising under the Transferred Agreements), all of
Seller’s right, title and interest in and to all of the following (collectively, the “Purchased Assets”): 

  
 7 

 (a) All Program Technology (including any derivative or extension of the Program Therapy
developed, generated or synthesized by or on behalf of Purchaser or any of its Affiliates or licensees of the Program Patents after the Closing) and all rights to sue for or assert claims against and remedies against past, present or future
infringements of any or all of the Program Technology and rights of priority and protection of interests therein and to retain any and all amounts therefrom; 

(b) All Contracts that are set forth on Schedule II (the “Transferred Agreements”); 

(c) Seller’s interest in and to any Program Therapy material (other than the Excluded Program Therapy Material), starting
materials, intermediates and reference standards for and Program Therapy stock on hand; and 
 (d) All of Seller’s data,
records, files, manuals and other documentation that relate primarily to the Program Technology or the Transferred Agreements, including: (i) studies, reports, publications, correspondence and other similar documents and records, whether in
electronic form or otherwise; (ii) all regulatory submissions and any amendments thereto prepared in connection with the Program Therapy and all related materials and documentation including regulatory correspondence, tracking files, meeting minutes
and strategy materials; and (iii) all files, documents, correspondence, and records of attorneys or consultants of Seller relating to the prosecution of Program Patents; 

in each case, excluding the Excluded Assets. The delivery of all Purchased Assets in a physical form shall be made at such place as designated by Purchaser at
Purchaser’s expense. 
 2.2 Excluded Assets. Notwithstanding anything to the contrary in this Agreement, all assets of Seller
not specifically listed in Section 2.1 (collectively, the “Excluded Assets”) are excluded from the Purchased Assets, are not part of the sale and purchase contemplated hereunder, and shall remain the property of Seller
after the Closing. The Excluded Assets include the following assets: 
 (a) All minute books and corporate seals, Tax Returns and
similar records of Seller; 
 (b) All cash, cash equivalents on hand or in bank accounts and short term investments; 

(c) Any prepayment, refund, claim, offset or other right of Seller with respect to any Tax of the Seller or any Tax arising or
resulting from or in connection with the ownership of the Purchased Assets or operation of the Program attributable to any Tax period ending on or prior to the Closing Date, or, in the case of any Tax period which includes but does not end on the
Closing Date, the portion of such period up to and including the Closing Date; 
 (d) All claims, counterclaims, remedies, rights,
consideration (including contractual rights) and any other rights related to any Excluded Asset, including all claims arising under Transferred Agreements with respect to any period prior to Closing; 

  
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 (e) All rights under insurance policies, including, without limitation, all claims,
refunds and credits due or to become due under such policies; 
 (f) The following Program Therapy material made by Seller for
transfer directly to Purchaser, which will be purchased by Purchaser in a separate transaction with Seller: (i) Lot# 018-231-1: ~5.8g bulk, (ii) Lot# 018-231-2: 6g bulk and (iii) Lot# 018-231-3: 2.8g bulk (collectively, the
“Excluded Program Therapy Material”); and 
 (g) The patent applications listed on Schedule 2.2 of the Seller
Disclosure Schedules (the “Excluded Patent Applications”) and any patents issued in connection therewith, including any and all divisionals, continuations and continuations-in-part. 

2.3 Assumed Liabilities. Upon and subject to the terms, conditions, representations and warranties of Seller contained herein, and
subject to Section 2.4, Purchaser hereby assumes and agrees to pay, perform, and discharge in a timely manner when due the following: (a) any Liabilities of Seller under the Transferred Agreements, but only to the extent such Liabilities (i)
arise after the Closing, (ii) do not arise from or relate to any breach by the Seller of any provision of any of such Transferred Agreements and (iii) do not arise from or relate to any event, circumstance or condition occurring or existing on or
prior to the Closing Date that, with notice or lapse of time, would constitute or result in a breach of any of such Transferred Agreements; and (b) all Liabilities of Seller relating to the prosecution, ownership, operation, maintenance, sale, lease
or use of Purchased Assets by Purchaser but only to the extent that they arise after the Closing (collectively, the “Assumed Liabilities”). Notwithstanding anything to the contrary in the foregoing sentence, Purchaser shall
assume the obligations to pay the following invoice and amounts due (or to become due) under the following purchase orders, and such obligations shall be deemed to be Assumed Liabilities of Purchaser: 

(a) Invoice #JMI-3103 issued by JMI Laboratories to Seller on May 20, 2014 for $2,500 in connection with services provided to
Seller under that certain Publication Plan Using The Initial Development Results Of The Investigational Echinocandin SP3025, executed April 11, 2014, by and among Seller, JMI Laboratories and Mariana Castanheira, Ph.D.; 

(b) Purchase Order Number 2014-027-AF to Concord Biotech Limited, dated March 5, 2014; and 

(c) Purchase Order Number 2014-028-AF to Bachem America, Inc., dated March 17, 2014. 

2.4 Retained Liabilities. Except for the Assumed Liabilities, Purchaser shall not assume, and shall have no Liability for, any
Liabilities of Seller of any kind, character or description, whether accrued, absolute, contingent or otherwise, it being understood that Purchaser is expressly disclaiming any express or implied assumption of any Liabilities other than the Assumed
Liabilities (collectively, the “Retained Liabilities”). 

  
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 2.5 Purchase Price; Payment of Purchase Price. 

(a) The aggregate consideration (the “Purchase Price”) for the Purchased Assets shall consist of: (i) the
assumption of the Assumed Liabilities; and (ii) 17,858,550 shares of Purchaser’s Common Stock (the “Equity Consideration”). 

(b) Purchaser and Seller shall execute and deliver an Assignment and Assumption Agreement, a form of which is attached hereto as
Exhibit A-1 (the “Assignment and Assumption Agreement”), evidencing the assignment by Seller of the Purchased Assets and the assumption by Purchaser of the Assumed Liabilities. 

(c) Purchaser and Seller shall execute and deliver a Patent Assignment, a form of which is attached hereto as Exhibit A-2 (the
“Patent Assignment”), evidencing the assignment by Seller of the issued patents and patent applications included in the Purchased Assets. 

(d) The Equity Consideration shall be issued to Seller by Purchaser at the Closing. 

2.6 Allocation of Purchase Price. Purchaser and Seller agree that the Purchase Price shall be allocated for Tax purposes among the
Purchased Assets in accordance with the methodology set forth on Exhibit B-1 and that the Parties will reflect such allocation on IRS Form 8594: Asset Acquisition Statement under Section 1060, including any required amendments or
supplements thereto, in the form attached hereto as Exhibit B-2 (“Form 8594”). The Parties hereto further agree that: (a) such allocation of Purchase Price shall be used in filing all required forms under
Section 1060 of the Code and all Tax Returns; and (b) they will not take any position inconsistent with such allocation upon any examination of any such Tax Return, in any refund claim or in any Tax litigation. 

2.7 Closing. The consummation of the purchase and sale of the Purchased Assets and the assumption of the Assumed Liabilities in
accordance with this Agreement (the “Closing”) shall take place at the offices of Purchaser concurrently with the execution and delivery of this Agreement by all of the Parties hereto, or at such other time and place as may
be mutually agreed by the Parties. The date of the Closing shall be referred to as the “Closing Date.” The Parties hereby agree to deliver at the Closing such documents, certificates of officers and other instruments as are
set forth in ARTICLE V hereof and as may reasonably be required to effect the transfer by Seller of the Purchased Assets and the issuance by Purchaser of the Equity Consideration pursuant to and as contemplated by this Agreement and to
consummate the Acquisition. All events which shall occur at the Closing shall be deemed to occur simultaneously. 
 2.8 Transfer
Taxes. Purchaser shall be responsible for the payment of all sales taxes, transfer taxes, filing fees and similar taxes, fees and charges arising out of or in connection with the consummation of the transactions contemplated by this Agreement or
the other Transaction Documents (including the Acquisition). 

  
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 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF SELLER 

Seller represents and warrants to Purchaser that the statements contained in this ARTICLE III are true and correct in all material
respects as of the Closing Date, except as specifically disclosed in a document of even date herewith and delivered by Seller to Purchaser referring to the representations and warranties of the Seller in this Agreement (the “Seller
Disclosure Schedules”). The Seller Disclosure Schedules will correspond to the numbered and lettered paragraphs contained in this ARTICLE III, and the disclosure in any such specified schedule of the Seller Disclosure Schedules
shall qualify only the corresponding subsection in this ARTICLE III (except to the extent that the relevance of such disclosure to other sections of the Seller Disclosure Schedules or this Agreement is reasonably apparent on its face from the
content or the disclosure is specifically cross-referenced in another section of the Seller Disclosure Schedules). 
 3.1 Organization
and Qualification. Seller is a corporation duly qualified or licensed to do business and is in good standing in every jurisdiction in which the conduct of its business, or the ownership or lease of its properties, require it to be so qualified
or licensed, except where the failure to be so qualified or licensed would not have a Material Adverse Effect, and has all requisite power and authority to own, operate or lease all of the assets purported to be owned by it, including the Purchased
Assets and all rights of the Seller under Transferred Agreements, and to carry on the Program in all material respects as currently conducted. The Seller has never conducted any business under or otherwise used, for any purpose or in any
jurisdiction, any fictitious name, assumed name, trade name or other name. 
 3.2 Authority Relative to this Agreement. Seller has
all requisite corporate power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby
and thereby (including the Acquisition). The execution, delivery and performance of this Agreement and the other Transaction Documents by Seller and the consummation by Seller of the transactions contemplated hereby and thereby (including the
Acquisition) have been duly and validly authorized by all necessary corporate action of the Seller, and no other corporate action on the part of the Seller is necessary to authorize this Agreement and the other Transaction Documents or to consummate
the transactions contemplated hereby and thereby (including the Acquisition). This Agreement and the other Transaction Documents have been duly executed and delivered by Seller and, assuming the due authorization, execution and delivery by the other
Parties hereto, each such agreement constitutes a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 

3.3 No Conflict. Except as set forth on Schedule 3.3 of the Seller Disclosure Schedules, the execution and delivery of this Agreement
and the other Transaction Documents by Seller do not, and the performance by Seller of its obligations hereunder and thereunder and the consummation by Seller of the transactions contemplated hereby and thereby (including the

  
 11 

 
Acquisition) will not: (a) conflict with or violate any provision of the Certificate of Incorporation of Seller; (b) assuming that all filings and notifications described in Section 3.4 have
been made, conflict with or violate any Law or Order applicable to Seller or by which any of the Purchased Assets or Seller is bound or affected; (c) contravene, conflict with or result in any breach of or result in a default (or an event which with
the giving of notice or lapse of time or both would reasonably be expected to become a default) under, or give to others any right of termination, amendment, acceleration or cancellation or modification of, or result in the creation of an
Encumbrance on any of the Purchased Assets or Transferred Agreements; or (d) contravene, conflict with or result in a violation of any of the terms or requirements of, or give any Governmental Authority or Regulatory Authority the right to revoke,
withdraw, suspend, cancel, terminate or modify, any filing, permit, authorization, consent, approval, right or Order that is to be included in the Purchased Assets or is held by the Seller or relates to the Purchased Assets; except where such
violations, breaches, conflicts, defaults, accelerations, failures to give notice or occurrences of such other events described in clauses (a) through (d) of this Section 3.3 would not, in the aggregate, have a Material Adverse Effect on the
Purchased Assets.
 3.4 Required Filings and Consents. The execution and delivery of this Agreement and the other Transaction
Documents by Seller do not, and the performance by Seller of its obligations hereunder and thereunder and the consummation by Seller of the transactions contemplated hereby and thereby (including the Acquisition) will not, require any consent,
approval, authorization or permit of, or filing by Seller with or notification by Seller to, any Governmental Authority or Regulatory Authority. 

3.5 Intellectual Property. 

(a) Disclosure and Ownership of Program Patents. Schedule 3.5(a) of the Seller Disclosure Schedules lists all of the
Seller-Owned Patents and Seller-Licensed Patents, setting forth in each case the jurisdictions in which the Seller-Owned Patents and Seller-Licensed Patents have been
filed. Except as set forth in Schedule 3.5(a) of the Seller Disclosure Schedules, Seller has a valid, legally enforceable, and exclusive right to use and license all Seller-Owned Patents and
Seller-Licensed Patents. 
 (b) Ownership of and Right to Use Program Know-How and Program IP; No Encumbrances. Except as set forth in Schedule 3.5(b) of the Seller Disclosure Schedules, Seller has good and valid title to, free and clear of all Encumbrances (other than
the Assumed Liabilities and Permitted Encumbrances, and those arising under the Transferred Agreements), or a valid, legally enforceable right to use and license, the Program Know-How and Program IP. 

(c) Agreements Related to Program Technology. The Transferred Agreements constitute all existing Contracts related to the
Program Technology and/or Program Therapy other than (1) non-disclosure agreements and (2) invention assignment agreements with employees, consultants and contractors that assign or grant to the Seller
ownership of inventions and intellectual property developed in the course of providing services to the Seller by such employees, consultants and contractors. 

(d) No Third Party Rights in Program Technology. Except as set forth in Schedule 3.5(d) of the Seller Disclosure Schedules:

  
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 (i) No Employee Ownership. No current or former officer, director, employee,
consultant or independent contractor of the Seller has any right, title or interest in, to or under any Program Technology developed by such person in the course of providing services to the Seller that has not been either (A) irrevocably assigned
or transferred to Seller or (B) licensed (with the right to grant sublicenses) to Seller under an exclusive, irrevocable, worldwide, royalty-free, fully-paid and assignable license. 

(ii) No Challenges. The Seller has not received any written communication from any Person challenging or threatening to
challenge, nor is the Seller a party to any pending and served proceeding or, to Seller’s Knowledge, pending but not served proceeding or threatened proceeding in which any Person is challenging, (A) the Seller’s ownership of, and right to
use and license, any Program Technology owned by the Seller, or (B) the Seller’s right to use and license any Program Technology that is not owned by the Seller. 

(iii) No Restrictions. The Seller is not subject to any outstanding Order or stipulation restricting in any manner the use,
transfer or licensing of the Program Technology by the Seller. 
 (e) Patents. Except as set forth in Schedule 3.5(e) of
the Seller Disclosure Schedules: 
 (i) Proper Filing. All Seller-Owned Patents and
Seller-Licensed Patents for which the Seller has any obligation to file or maintain have been duly filed and maintained, including the timely submission of all necessary filings and fees in accordance with the
legal and administrative requirements of the appropriate Governmental Authority, and have not lapsed (other than lapsed provisional applications that have been converted to non-provisional applications),
expired or been abandoned. 
 (ii) No Challenges. The Seller has not received any written notice of and has no Knowledge of
any basis for any inventorship challenge, interference, invalidity or unenforceability with respect to Program Patents. 
 (f) No
Infringement of Third Party IP Rights. The Seller has never infringed (directly, contributorily, by inducement, or otherwise), misappropriated, or otherwise violated or made unlawful use of any Intellectual Property Right of any other Person or
engaged in unfair competition. No Program IP and no method or process used in the development, current or past manufacturing or use of the Program Therapy infringes, violates, or makes unlawful use of any Intellectual Property Right of, or contains
any Intellectual Property misappropriated from, any other Person. There is no legitimate basis for a claim that the Seller or the Program Therapy has infringed or misappropriated any Intellectual Property Right of another Person or engaged in unfair
competition or that the Program Therapy and any method or process used in the current or past development, manufacturing or use of Program Therapy infringes, violates, or makes unlawful use of any Intellectual Property Right of, or contains any
Intellectual Property misappropriated from, any other Person. Without limiting the generality of the foregoing: 

  
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 (i) Infringement Claims. No infringement, misappropriation, or similar claim or
Proceeding is, to the Seller’s Knowledge, pending or threatened against the Seller or against any other Person who is or may be entitled to be indemnified, defended, held harmless, or reimbursed by the Seller with respect to such claim or
Proceeding. The Seller has never received any written notice or, to the Seller’s Knowledge, other communication (in writing or otherwise) relating to any actual, alleged, or suspected infringement, misappropriation, or violation by the Seller,
any of their employees or agents, or any Program Therapy of any Intellectual Property Rights of another Person, including any letter or other communication suggesting or offering that the Seller obtain a license to any Intellectual Property Right of
another Person. 
 (ii) Infringement Claims Affecting In-Licensed IP. To the Seller’s Knowledge, no claim or Proceeding
involving any Intellectual Property or Intellectual Property Right licensed to the Seller is pending or has been threatened, except for any such claim or Proceeding that, if adversely determined, would not materially adversely affect (a) the use or
exploitation of such Intellectual Property or Intellectual Property Right by the Seller, or (b) the design, development, manufacturing, marketing, distribution, provision, licensing or sale of any Program Therapy. 

(g) Confidentiality. Seller has taken all commercially reasonable and customary measures and precautions necessary to protect
and maintain the confidentiality of the Program Know-How. 
 (h) Employee, Consultant and Contractor Agreements. To the
Seller’s Knowledge, all current and former employees, consultants and contractors of the Seller who are or were involved in, or who have contributed to, the creation or development of any Program Technology have executed and delivered to the
Seller a written agreement regarding the protection of proprietary information and the irrevocable assignment to the Seller of any intellectual property rights in Program Technology arising from services performed by such Persons. To the
Seller’s Knowledge, no current or former employee, consultant or contractor is in violation of any term of any such agreement. 

(i) No Government Funding. Except as set forth in Schedule 3.5(i) of the Seller Disclosure Schedule, no funding, facilities
or personnel of any Governmental Authority were used, directly or indirectly, to develop or create, in whole or in part, any Program Technology owned by the Seller. 

3.6 Contracts. 

(a) Schedule 3.6(a) of the Seller Disclosure Schedules contains a true and accurate list of all material Contracts pursuant to
which Seller enjoys any right or benefit or undertakes any obligation related to the Purchased Assets, other than (i) non-disclosure agreements, (ii) licenses granted to the Seller for off-the-shelf software,
and (iii) invention assignment agreements with employees, consultants and contractors that assign or grant to the Seller ownership of inventions and intellectual property developed in the course of providing services to the Seller by such employees,
consultants and contractors. Each of the Transferred Agreements is valid and binding on Seller in accordance with its terms and is in full force and 

  
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effect and enforceable by Seller in accordance with its terms. Except as set forth on Schedule 3.6(a) of the Seller Disclosure Schedules, no consents are necessary for the effective
assignment to and assumption by the Purchaser of any of the Transferred Agreements or for the consummation of the transactions contemplated hereby (the “Contract Consents”). 

(b) Subject to receipt on or prior to the Closing Date of any Contract Consent disclosed on Schedule 3.6(a), the consummation of the
transactions contemplated by this Agreement will not result in a material breach of any Transferred Agreement. 
 (c) There exists no
default or event of default or event, occurrence, condition or act, with respect to Seller, or to Seller’s Knowledge, with respect to the other contracting party, which, with the giving of notice, the lapse of the time or the happening of any
other event or conditions, would become a default or event of default under any Transferred Agreement. Seller has not received written or, to the Seller’s Knowledge, oral notice of, and has no Knowledge of any intent to effect, the
cancellation, modification or termination of any Transferred Agreement. True, correct and complete copies of all Transferred Agreements have been delivered to Purchaser. 

3.7 Compliance with Laws. Except as set forth on Schedule 3.7 of the Seller Disclosure Schedules, Seller is not in conflict in any
respect with or in default or violation of any material order, judgment, preliminary or permanent injunction, temporary restraining order, award, citation, decree, consent decree or writ (collectively, “Orders”)
of any Governmental Authority or Regulatory Authority, materially affecting the Purchased Assets or the Program, or the Laws of any Governmental Authority, materially affecting the Purchased Assets or the Program. Except as set forth on Schedule 3.7
of the Seller Disclosure Schedules, Seller has not received from any Governmental Authority any written notification with respect to possible conflicts, defaults or violations of Laws materially affecting the Purchased Assets or the Program.

 3.8 Claims and Proceedings. Except as set forth on Schedule 3.8 of the Seller Disclosure Schedules, there is no
outstanding Order of any Governmental Authority or Regulatory Authority against or involving the Purchased Assets, the Assumed Liabilities or any Program Therapy. To the Seller’s Knowledge, and except as set forth on Schedule 3.8 of the
Seller Disclosure Schedules, there is no action, suit, claim or counterclaim or legal, administrative or arbitral proceeding or investigation (collectively, “Claim”) (whether or not the defense thereof or
Liabilities in respect thereof are covered by insurance), pending or threatened against or involving the Purchased Assets, the Assumed Liabilities or any Program Therapy. To the Seller’s Knowledge, there is no proposed Order that, if issued or
otherwise put into effect, (i) may have an adverse effect on the ownership of the Purchased Assets or on the ability of the Seller to comply with or perform any covenant or obligation under any of the Transaction Documents, or (ii) may have the
effect of preventing, delaying, making illegal or otherwise interfering with the Acquisition or the consummation of the transactions contemplated by any of the Transaction Documents. 

  
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 3.9 Regulatory Compliance. 

(a) With respect to the Program Therapy, (A) the Seller has obtained all necessary and applicable approvals, authorizations,
licenses and registrations required by the FDA (collectively, the “Product Licenses”) for the conduct of its development and commercialization activities conducted to date (the “Activities to
Date”); (B) the Seller is in material compliance with all terms and conditions of each Product License and with all applicable legal requirements pertaining to the Activities to Date which are not required to be the subject
of a Product License; and (C) to the Seller’s Knowledge, the Seller is in compliance in all material respects with all legal requirements regarding registration, license or certification for each site at which the Program Therapy is
manufactured. The Seller is in compliance in all material respects with all applicable reporting requirements for all Product Licenses described in the immediately preceding sentence. 

(b) The Seller is in material compliance with all FDA, EMA and any other Governmental Authority requirements applicable to the
maintenance, compilation and filing of reports with regard to the Program Therapy. 
 (c) The Seller has not received any written
notice or other written communication from the FDA, EMA or any other Governmental Authority alleging any violation of any laws by the Seller with respect to the Program Therapy. 

(d) There have been no recalls, field notifications or seizures ordered or adverse regulatory actions taken (or, to the Knowledge of
the Seller, threatened) by the FDA, EMA or any other Governmental Authority with respect to the Program Therapy, including, to the Seller’s Knowledge, any facilities where the Program Therapy is produced, processed, packaged or stored. 

(e) All filings with and submissions to the FDA, EMA or any other Governmental Authority made by the Seller with regard to the Program
Therapy, whether oral, written or electronically delivered, were true and accurate in all material respects as of the date made, and, to the extent required to be updated, as so updated were true and accurate in all material respects as of the date
of such update and did not materially misstate any of the statements or information included therein, or, to the Seller’s Knowledge, omit to state a material fact necessary to make the statements therein not misleading. 

(f) The Seller is not, nor, to the Seller’s Knowledge, are any of its directors, officers, employees, agents, representatives or
consultants, currently a Debarred Entity or Debarred Individual, as applicable, or is the subject of an investigation or proceeding that could lead to such Person becoming a Debarred Entity or Debarred Individual, as applicable. 

3.10 No Finder. Neither Seller nor any Person acting on behalf of Seller has agreed to pay to any broker, finder, investment banker or
any other Person, a brokerage, finder’s or other brokerage fee or commission in connection with this Agreement or any matter related hereto, nor has any broker, finder, investment banker or any other Person taken any action on which a Claim for
any such payment would be based. Seller shall be solely responsible for paying any and all 

  
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fees, commissions or other compensation to which any party disclosed on Schedule 3.10 of the Seller Disclosure Schedules is entitled or claims on account of the Acquisition. 

3.11 Financial Statements. The Seller has delivered to the Purchaser the unaudited balance sheets of the Seller as of December 31,
2013 and March 31, 2014 and the related statements of operations and cash flows for the year ended December 31, 2013 and the three months ended March 31, 2014 (collectively, the “Unaudited Financial
Statements”). The Unaudited Financial Statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods covered, except for the non-application of certain
accounting requirements with respect to the Seller’s stock options and preferred stock and the absence of notes and, with respect to the unaudited balance sheet of the Seller as of March 31, 2014 and the related statements of operations
and cash flows for the three months ended March 31, 2014, subject to year-end adjustments. The Unaudited Financial Statements present fairly the financial position of the Seller as of the respective dates thereof and the results of operations
and cash flows of the Seller for the periods covered thereby. As of the Closing Date, Seller has no outstanding indebtedness. 
 3.12
Solvency. Immediately after giving effect to the consummation of the Acquisition and the other transactions contemplated by the Transaction Documents, Seller will be able to pay its debts as they come due and Seller will not have unreasonably
small assets with which to conduct its present or proposed business. The cash and other assets available to Seller, after taking into account all other anticipated uses of the cash, will be sufficient to pay all debts of Seller promptly and in
accordance with their terms. Seller has not, at any time, made a general assignment for the benefit of creditors, or filed, or had filed against it, any bankruptcy petition or similar Proceeding. As used in this Section 3.12, “debts”
includes any legal Liability that is reasonably likely to occur or accrue. 
 3.13 Capitalization, Etc. The Seller has provided to
the Purchaser accurate and complete copies of the certificate of incorporation and bylaws of the Seller, including all amendments thereto. Attached hereto as Exhibit E is a current list of all outstanding shares of the Seller’s capital
stock and a list of stockholders of the Seller. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF PURCHASER 

Purchaser represents and warrants to Seller that the statements contained in this ARTICLE IV are true and correct in all material respects as
of the Closing Date, except as specifically disclosed in a document of even date herewith and delivered by Purchaser to Seller referring to the representations and warranties of Purchaser in this Agreement (the “Purchaser Disclosure
Schedules”). The Purchaser Disclosure Schedules will correspond to the numbered and lettered paragraphs contained in this ARTICLE IV, and the disclosure in any such specified schedule of the Purchaser Disclosure Schedules shall qualify
only the corresponding subsection in this ARTICLE IV (except to the extent that the relevance of such disclosure to other sections of the Purchaser Disclosure Schedules or this Agreement is reasonably apparent on its face from the content or the
disclosure is specifically cross-referenced in another section of the Purchaser Disclosure Schedules). 

  
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 4.1 Organization and Qualification. Purchaser is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has all requisite corporate or other power and authority and all necessary governmental approvals to own, lease and operate its properties and to carry on its business as now
being conducted and is in good standing in every jurisdiction in which the conduct of its business, or the ownership or lease of its properties, require it to be qualified or licensed to do business, except where the failure to be so qualified or
licensed would not have a Material Adverse Effect. 
 4.2 Authority Relative to this Agreement. Purchaser has all necessary corporate
power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby (including
the Acquisition). The execution and delivery of this Agreement and the other Transaction Documents by Purchaser and the consummation by Purchaser of the transactions contemplated hereby and thereby (including the Acquisition) have been duly and
validly authorized by all necessary corporate action of the Purchaser and its board of directors, and no other corporate proceedings on the part of Purchaser are necessary to authorize this Agreement and the other Transactions Documents or to
consummate transactions contemplated hereby and thereby (including the Acquisition). This Agreement and the other Transaction Documents have been, or when executed and delivered will be, duly executed and delivered by Purchaser and, assuming the due
authorization, execution and delivery by the other Parties hereto, each such agreement constitutes a legal, valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law
or in equity). 
 4.3 No Conflict. Except as set forth on Schedule 4.3 of the Purchaser Disclosure Schedules, the execution and
delivery of this Agreement and the other Transaction Documents by Purchaser do not, and the performance by Purchaser of its obligations hereunder and thereunder and the consummation by Purchaser of the transactions contemplated hereby and thereby
(including the Acquisition) will not: (a) conflict with or violate any provision of the Certificate of Incorporation of Purchaser; (b) assuming that all filings and notifications described in Section 4.4 have been made, conflict with
or violate any Law or Order applicable to Purchaser or by which Purchaser is bound; (c) contravene, conflict with or result in any breach of or result in a default (or an event which with the giving of notice or lapse of time or both would
reasonably be expected to become a default) under, or give to others any right of termination, amendment, acceleration or cancellation or modification of, or result in the creation of an Encumbrance on, any material contract or asset of Purchaser;
or (d) contravene, conflict with or result in a violation of any of the terms or requirements of, or give any Governmental Authority or Regulatory Authority the right to revoke, withdraw, suspend, cancel, terminate or modify, any filing,
permit, authorization, consent, approval, right or Order that is held by or relates to the Purchaser; except where such violations, breaches, conflicts, defaults, accelerations, failures to give notice or occurrences of such other events described
in clauses (a) through (d) of this Section 4.3 would not, in the aggregate, have a Material Adverse Effect on Purchaser.

  
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 4.4 Required Filings and Consents. The execution and delivery of this Agreement and the
other Transaction Documents by Purchaser do not, and the performance by Purchaser of its obligations hereunder and thereunder and the consummation by Purchaser of the transactions contemplated hereby and thereby (including the Acquisition) will not,
require any consent, approval, authorization or permit of, or filing by Purchaser with or notification by Purchaser to, any Governmental Authority. 

4.5 Capitalization; Subsidiaries. 

(a) The authorized capital stock of the Purchaser, immediately prior to the Closing, consists of (i) 185,000,000 shares of Common
Stock, par value $0.001 per share (the “Purchaser’s Common Stock”), 11,892,000 shares of which are issued and outstanding, and (ii) 127,214,000 shares of Preferred Stock, par value $0.001 per share (the
“Purchaser’s Preferred Stock”), no shares of which are designated Series A Preferred Stock, none of which are issued and outstanding. 

(b) All issued and outstanding shares of the Purchaser’s Common Stock and the Purchaser’s Preferred Stock (i) have been
duly authorized and validly issued and are fully paid and nonassessable and (ii) were issued in compliance with all applicable state and federal laws concerning the issuance of securities. 

(c) The rights, preferences, privileges and restrictions of the Purchaser’s Common Stock and Purchaser’s Preferred Stock are
as stated in the Purchaser’s Restated Charter attached hereto as Exhibit C. The consummation of the transactions contemplated hereunder will not result in any anti-dilution adjustment or other similar adjustment to the outstanding shares
of Purchaser’s Preferred Stock. When issued in compliance with the provisions of this Agreement and the Purchaser’s Restated Charter, the shares that comprise the Equity Consideration will be validly issued, fully paid and nonassessable,
and will be free of any Encumbrances other than Encumbrances created by or imposed upon the holders of such shares by this Agreement or any other agreement to which the holder is a party; provided, however, that the shares of Purchaser’s
Common Stock may be subject to restrictions on transfer under state and/or federal securities laws as set forth herein or as otherwise required by such laws at the time a transfer is proposed. The issuance of the Equity Consideration pursuant to
this Agreement (and the subsequent distribution of such Equity Consideration pursuant to Section 6.7 hereof) will not be subject to any preemptive rights or rights of first refusal or similar right on, or similar agreement, arrangement or
commitment with respect to, the capital stock of the Purchaser that have not been properly waived or complied with. All of the shares that comprise the Equity Consideration were issued in compliance with applicable Laws. 

(d) Under the Purchaser’s 2013 Stock Option and Grant Plan (the “Plan”), (i) 11,892,000 shares have
been issued pursuant to restricted stock purchase agreements and/or the exercise of outstanding options and are included in Section 4.5(a)(i) above, (ii) options to purchase no shares have been granted and are currently outstanding, and
(iii) 21,096,208 shares of Purchaser’s Common Stock remain available for future issuance to officers, directors, employees and consultants of the Purchaser. Other than (i) the shares reserved for issuance under the Plan, and except as
may be granted pursuant to the Purchaser’s Series A Preferred Stock Purchase Agreement and the Related Agreements (as defined in the Purchaser’s Series A 

  
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Preferred Stock Purchase Agreement), there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), proxy or stockholder agreements,
or agreements of any kind for the purchase or acquisition from the Purchaser of any of its securities. There are no voting trusts, stockholder agreements, proxies or other agreements or understandings in effect with respect to the voting or transfer
of any of the shares that compromise the Equity Consideration. 
 (e) The Purchaser does not own or control any equity security or
other interest of any other corporation, partnership, limited liability company or other business entity. The Purchaser is not a participant in any joint venture, partnership, limited liability company or similar arrangement. Since its inception,
the Purchaser has not consolidated or merged with, acquired all or substantially all of the assets of, or acquired the stock of or any interest in any corporation, partnership, limited liability company or other business entity. 

4.6 No Finder. Neither Purchaser nor any Person acting on behalf of Purchaser has agreed to pay to any broker, finder, investment
banker or any other Person, a brokerage, finder’s or other fee or commission in connection with this Agreement or any matter related hereto, nor has any broker, finder, investment banker or any other Person taken any action on which a Claim for
any such payment could be based. 
 4.7 Liabilities. The Purchaser has no material liabilities and, to the best of its knowledge no
material contingent liabilities, except current liabilities incurred in the ordinary course of business which have not been, either in any individual case or in the aggregate, materially adverse. 

4.8 Agreements; Action. 

(a) Except for agreements contemplated hereby and by the Purchaser’s Series A Preferred Stock Purchase Agreement and agreements
between the Purchaser and its directors, officers and employees with respect to the provision of services or the sale of the Purchaser’s Common Stock, there are no agreements, understandings or proposed transactions between the Purchaser and
any of its officers, directors, employees, affiliates or any affiliate thereof. 
 (b) Except for agreements contemplated hereby and
by the Purchaser’s Series A Preferred Stock Purchase Agreement, there are no agreements, understandings, instruments, contracts, proposed transactions, judgments, orders, writs or decrees to which the Purchaser is a party or, to its knowledge,
by which it is bound which may involve (i) future obligations (contingent or otherwise) of, or payments to, the Purchaser in excess of $25,000, or (ii) the transfer or license of any patent, copyright, trade secret or other proprietary
right to or from the Purchaser (other than licenses by the Purchaser of “off the shelf” or other standard products), or (iii) indemnification by the Purchaser with respect to infringements of proprietary rights. 

(c) The Purchaser has not (i) accrued, declared or paid any dividends, or authorized or made any distribution upon or with
respect to any class or series of its capital stock, (ii) incurred or guaranteed any indebtedness for money borrowed or any other liabilities 

  
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(other than trade payables incurred in the ordinary course of business) individually in excess of $25,000 or, in the case of indebtedness and/or liabilities individually less than $25,000, in
excess of $50,000 in the aggregate, other than indebtedness that will convert into shares of the Purchaser’s Preferred Stock pursuant to the Purchaser’s Series A Preferred Stock Purchase Agreement, (iii) made any loans or advances to
any person, other than ordinary advances for travel expenses, or (iv) sold, exchanged or otherwise disposed of any of its assets or rights, other than the sale of its inventory in the ordinary course of business. 

(d) For the purposes of subsections (b) and (c) above, all indebtedness, liabilities, agreements, understandings,
instruments, contracts and proposed transactions involving the same person or entity (including persons or entities the Purchaser has reason to believe are affiliated therewith) shall be aggregated for the purpose of meeting the individual minimum
dollar amounts of such subsections. 
 4.9 Obligations to Related Parties. There are no obligations of the Purchaser to officers,
directors, stockholders, or employees of the Purchaser other than (a) for payment of salary for services rendered, (b) reimbursement for reasonable expenses incurred on behalf of the Purchaser and (c) for other standard employee
benefits made generally available to all employees (including stock option agreements outstanding under any stock option plan approved by the Purchaser’s Board of Directors). None of the officers, directors or, to the best of the
Purchaser’s knowledge, key employees or stockholders of the Purchaser or any members of their immediate families, is indebted to the Purchaser or has any direct or indirect ownership interest in any firm or corporation with which the Purchaser
is affiliated or with which the Purchaser has a business relationship, or any firm or corporation that competes with the Purchaser, other than (i) passive investments in publicly traded companies (representing less than 1% of such company)
which may compete with the Purchaser and (ii) investments by venture capital funds with which directors of the Purchaser may be affiliated and service as a board member of a Purchaser in connection therewith due to a person’s affiliation
with a venture capital fund or similar institutional investor in such Purchaser. No officer, director or stockholder, or any member of their immediate families, is, directly or indirectly, interested in any material contract with the Purchaser
(other than such contracts as relate to any such person’s ownership of capital stock or other securities of the Purchaser). 
 4.10
Changes. Since inception of the Purchaser, there has not been to the Purchaser’s knowledge: 
 (a) Any change in the assets,
liabilities, financial condition or operations of the Purchaser, other than changes in the ordinary course of business, none of which individually or in the aggregate has had or is reasonably expected to have a material adverse effect on such
assets, liabilities, financial condition or operations of the Purchaser; 
 (b) Any resignation or termination of any officer, key
employee or group of employees of the Purchaser; 
 (c) Any material change, except in the ordinary course of business, in the
contingent obligations of the Purchaser by way of guaranty, endorsement, indemnity, warranty or otherwise; 

  
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 (d) Any damage, destruction or loss, whether or not covered by insurance, materially and
adversely affecting the properties, business or prospects or financial condition of the Purchaser; 
 (e) Any waiver by the Purchaser
of a valuable right or of a material debt owed to it; 
 (f) Any material change in any compensation arrangement or agreement with
any employee, officer, director or stockholder; 
 (g) Any labor organization activity related to the Purchaser; 

(h) Any sale, assignment, or exclusive license or transfer of any patents, trademarks, copyrights, trade secrets or other intangible
assets; 
 (i) Any change in any material agreement to which the Purchaser is a party or by which it is bound which materially and
adversely affects the business, assets, liabilities, financial condition, operations or prospects of the Purchaser; 
 (j) Any other
event or condition of any character that, either individually or cumulatively, has materially and adversely affected the business, assets, liabilities, financial condition or operations of the Purchaser; or 

(k) Any arrangement or commitment by the Purchaser to do any of the acts described in subsection (a) through (j) above. 

4.11 Title to Properties and Assets; Liens, Etc. The Purchaser has good and marketable title to its properties and assets and good
title to its leasehold estates, in each case subject to no mortgage, pledge, lien, lease, encumbrance or charge, other than (a) those resulting from taxes which have not yet become delinquent, (b) minor liens and encumbrances which do not
materially detract from the value of the property subject thereto or materially impair the operations of the Purchaser, and (c) those that have otherwise arisen in the ordinary course of business. 

4.12 Intellectual Property. 

(a) The Purchaser owns or possesses sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade
secrets, licenses, information and other proprietary rights and processes necessary for its business as now conducted and as presently proposed to be conducted, without any known infringement of the rights of others. There are no outstanding
options, licenses or agreements of any kind relating to the foregoing proprietary rights, nor is the Purchaser bound by or a party to any options, licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade
names, copyrights, trade secrets, licenses, information and other proprietary rights and processes of any other person or entity other than such licenses or agreements arising from the purchase of “off the shelf” or standard products. 

  
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 (b) The Purchaser has not received any communications alleging that the Purchaser has
violated or, by conducting its business as presently proposed to be conducted, would violate any of the patents, trademarks, service marks, trade names, copyrights or trade secrets or other proprietary rights of any other person or entity. 

(c) The Purchaser is not aware that any of its employees is obligated under any contract (including licenses, covenants or commitments
of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would interfere with their duties to the Purchaser or that would conflict with the Purchaser’s business as proposed to be
conducted. Each former and current employee, officer and consultant of the Purchaser has executed a proprietary information and inventions agreement in the form as delivered to Purchasers. No former and current employee, officer or consultant of the
Purchaser has excluded works or inventions made prior to his or her employment with the Purchaser from his or her assignment of inventions pursuant to such employee, officer or consultant’s proprietary information and inventions agreement. The
Purchaser does not believe it is or will be necessary to utilize any inventions, trade secrets or proprietary information of any of its employees made prior to their employment by the Purchaser, except for inventions, trade secrets or proprietary
information that have been assigned to the Purchaser and which are disclosed in the Schedule of Exceptions hereto. 
 4.13
Litigation. There is no claim, action, suit, proceeding or investigation pending or, to the Purchaser’s knowledge, currently threatened in writing against the Purchaser or any officers, directors or employees of the Purchaser that would
reasonably be expected to result, either individually or in the aggregate, in any material adverse change in the assets, condition, affairs or prospects of the Purchaser, financially or otherwise, or any change in the current equity ownership of the
Purchaser or that questions the validity of this Agreement or the right of the Purchaser to enter into such agreement, or to consummate the transactions contemplated hereby. The foregoing includes, without limitation, actions pending or, to the
Purchaser’s knowledge, threatened in writing involving the prior employment of any of the Purchaser’s employees, their use in connection with the Purchaser’s business of any information or techniques allegedly proprietary to any of
their former employers, or their obligations under any agreements with prior employers. Neither the Purchaser nor, to the Purchaser’s knowledge, any of its officers, directors or employees is a party or subject to the provisions of any order,
writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no claim, action, suit, proceeding or investigation by the Purchaser currently pending or which the Purchaser intends to initiate. 

4.14 Tax Returns and Payments. The Purchaser is and always has been a subchapter C corporation. The Purchaser has timely filed all tax
returns (federal, state and local) required to be filed by it. All taxes shown to be due and payable on such returns, any assessments imposed, and to the Purchaser’s knowledge all other taxes due and payable by the Purchaser on or before the
Closing, have been paid or will be paid prior to the time they become delinquent. The Purchaser has not been advised (a) that any of its returns, federal, state or other, have been or are being audited as of the date hereof, or (b) of any
deficiency in assessment or proposed judgment to its federal, state or other taxes. The Purchaser has no knowledge of any liability of any tax to be imposed upon its properties or assets as of the date of this Agreement that is not adequately
provided for. 

  
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 4.15 Employees. The Purchaser has no collective bargaining agreements with any of its
employees. There is no labor union organizing activity pending or, to the Purchaser’s knowledge, threatened with respect to the Purchaser. The Purchaser is not a party to or bound by any currently effective employment contract, deferred
compensation arrangement, bonus plan, incentive plan, profit sharing plan, retirement agreement or other employee compensation plan or agreement. No employee of the Purchaser has been granted the right to continued employment by the Purchaser or to
any material compensation following termination of employment with the Purchaser. To the Purchaser’s knowledge, no employee of the Purchaser, nor any consultant with whom the Purchaser has contracted, is in violation of any term of any
employment contract, proprietary information agreement or any other agreement relating to the right of any such individual to be employed by, or to contract with, the Purchaser; and to the Purchaser’s knowledge the continued employment by the
Purchaser of its present employees, and the performance of the Purchaser’s contracts with its independent contractors, will not result in any such violation. The Purchaser has not received any notice alleging that any such violation has
occurred. The Purchaser is not aware that any officer, key employee or group of employees intends to terminate his, her or their employment with the Purchaser, nor does the Purchaser have a present intention to terminate the employment of any
officer, key employee or group of employees. There are no actions pending, or to the Purchaser’s knowledge, threatened, by any former or current employee concerning such person’s employment by the Purchaser. Each current and former
employee, consultant and officer of the Purchaser has executed an agreement with the Purchaser regarding confidentiality and proprietary information substantially in the form or forms delivered to the counsel for the Purchasers (the
“Confidential Information Agreements”). No current or former key employee has excluded works or inventions from his or her assignment of inventions pursuant to such key employee’s Confidential Information Agreement. The
Purchaser is not aware that any of its key employees is in violation of any agreement covered by this Section 4.15. 
 4.16
Compliance with Laws; Permits. To its knowledge, the Purchaser is not in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the
conduct of its business or the ownership of its properties, which violation would materially and adversely affect the business, assets, liabilities, financial condition, operations or prospects of the Purchaser. The Purchaser has all franchises,
permits, licenses and any similar authority necessary for the conduct of its business as now being conducted by it, the lack of which could materially and adversely affect the business, assets, properties or financial condition of the Purchaser and
believes it can obtain, without undue burden or expense, any similar authority for the conduct of its business as planned to be conducted. 

4.17 Environmental and Safety Laws. To its knowledge, the Purchaser is not in violation of any applicable statute, law or regulation
relating to the environment or occupational health and safety, and to its knowledge, no material expenditures are or will be required in order to comply with any such existing statute, law or regulation. 

4.18 Real Property Holding Corporation. The Purchaser is not a real property holding corporation within the meaning of Code
Section 897(c)(2) and any regulations promulgated thereunder. 

  
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 ARTICLE V 

CLOSING DELIVERABLES 

5.1 Closing Deliverables of Purchaser. At the Closing, Purchaser shall deliver to Seller the following: 

(a) The Assignment and Assumption Agreement, duly executed by Purchaser; 

(b) The Patent Assignment, duly executed by Purchaser; 

(c) A stock certificate representing the Equity Consideration; 

(d) A certificate of good standing, dated as of a date not more than five days prior to Closing, certifying that Purchaser is in good
standing in the State of Delaware; 
 (e) A certificate of the Secretary or an Assistant Secretary (or equivalent officer) of
Purchaser certifying (i) that attached thereto are true and complete copies of all resolutions adopted by the board of directors of Purchaser authorizing the execution, delivery and performance of this Agreement and the other Transaction
Documents and the consummation of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby
and (ii) the names and signatures of the signatories authorized to sign this Agreement, the other Transaction Documents and the other documents to be delivered hereunder and thereunder on behalf of Purchaser; and 

(f) Such other documents as are required to be delivered by Purchaser to Seller pursuant to this Agreement. 

5.2 Closing Deliverables of Seller. At the Closing, Seller shall deliver to Purchaser the following: 

(a) The Assignment and Assumption Agreement, duly executed by Seller; 

(b) The Patent Assignment, duly executed by Seller; 

(c) A consent and release agreement, in the form attached hereto as Exhibit D (the “Consent and Release
Agreement”), duly executed by each stockholder of Seller; 
 (d) A certificate of good standing, dated as of a date not
more than five days prior to Closing, certifying that Seller is in good standing in the State of Delaware and the State of North Carolina; and 

(e) A certificate of the Secretary or an Assistant Secretary (or equivalent officer) of Seller certifying (i) that attached
thereto are true and complete copies of all resolutions adopted by the board of directors of Seller authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions
contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated 

  
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hereby and thereby and (ii) the names and signatures of the signatories authorized to sign this Agreement, the other Transaction Documents and the other documents to be delivered hereunder
and thereunder on behalf of Seller. 
 ARTICLE VI 

ADDITIONAL COVENANTS 

6.1 Further Assurances. Each Party hereby agrees, without further consideration, to execute and deliver following the Closing such
other instruments of transfer and take such other action as the other Party or its counsel may reasonably request in order to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other
Transaction Documents, including putting Purchaser in possession of, and to vest in Purchaser, good, valid and unencumbered title to the Purchased Assets in accordance with this Agreement.  

6.2 Expenses. Other than as contemplated by Section 2.8, each of the Parties shall bear its own
expenses incurred in connection with the preparation, execution and performance of this Agreement and the other Transaction Documents and the Acquisition, including all fees and expenses of its Representatives (the “Transaction
Expenses”); provided that the Purchaser shall, promptly following an initial closing of its Series A Preferred Stock financing in which Aisling Capital LLC, or one of its Affiliates, is an investor, reimburse Seller for up to $10,000 of
Seller’s Transaction Expenses. 
 6.3 Public Announcements. The Parties agree that no Party shall publish any
press release, make any other public announcement or communicate with any news media concerning this Agreement or the transactions contemplated hereby without consulting with the other Party and giving the other Party a reasonable opportunity to
review and comment upon any press release or other public statements and shall not issue any such press release or make any such public statement prior to such reasonably practicable consultation; provided, however, that nothing contained herein
shall prevent a Party from promptly making all filings with Governmental Authorities as may, in its judgment, be advisable or required (i) in connection with the execution and delivery of this Agreement or the consummation of the transactions
contemplated hereby or (ii) by applicable Laws or the rules, regulations or other requirement of any Governmental Authority. 

6.4 Confidentiality. Except as otherwise provided herein or in the other Transaction Documents, (i) Seller shall, and shall cause
its Representatives to treat after the date hereof as strictly confidential (unless compelled to disclose by judicial or administrative process or, in the opinion of legal counsel, by other requirements of law, or comes into the public domain
through no fault of Seller) all nonpublic, confidential or proprietary information concerning the Purchased Assets, and Seller shall not, after the date hereof, use such information to the detriment of the Purchaser and (ii) Purchaser shall,
and shall cause its Representatives to treat after the date hereof as strictly confidential (unless compelled to disclose by judicial or administrative process or, in the opinion of legal counsel, by other requirements of law, or comes into the
public domain through no fault of Purchaser) all nonpublic, confidential or proprietary information concerning the Seller that does not relate to the Purchased Assets or the Assumed 

  
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Liabilities, and Purchaser shall not, after the date hereof, use such information to the detriment of the Seller. 

6.5 Transfer of Files. With respect to data, records, files, manuals and other documentation that embody the Program Technology or the
Transferred Agreements, including: (i) studies, reports, correspondence and other similar documents and records, whether in electronic form or otherwise; and (ii) all files, documents, correspondence, and records of attorneys or
consultants of Seller relating to the prosecution of Program Patents, constituting Purchased Assets, Seller shall transfer and deliver all of the aforementioned items, on the Closing Date or thereafter on such date or dates as may be requested by
Purchaser, to the locations, and in accordance with the instructions, specified by Purchaser at the Purchaser’s expense. In the event that any of the abovementioned items reside in digital or electronic format on any equipment that is not
included in the Purchased Assets, then the hard drive or other medium shall be imaged and provided to Purchaser in a reasonably accessible format at the Purchaser’s expense.  

6.6 Investor Agreements of Purchaser. Seller shall execute and become a party to each of the Amended and Restated Right of First
Refusal and Co-Sale Agreement and Voting Agreement as a “Key Holder” (as such term is defined in each such agreement), effective and contingent upon the initial issuance by Purchaser of shares of its preferred stock to investors, which
agreements shall be substantially in the forms provided to Seller immediately prior to the Closing. 
 6.7 Distribution of Equity
Consideration. After the Closing, the Seller shall have the right to transfer all or a portion of the Equity Consideration provided for in Section 2.5(a) to the Seller’s debt and equity holders as of the Closing Date that are
accredited investors (as defined in Regulation D, promulgated under the Securities Act of 1933, as amended); provided that the Seller first provides notice to the Purchaser of any such transfer. 

ARTICLE VII 
 SURVIVAL;
INDEMNIFICATION 
 7.1 Survival of Representations and Warranties. All representations and warranties made by Seller and
Purchaser contained in this Agreement shall survive for a period of twelve (12) months after the Closing. All covenants and agreements made by Seller or Purchaser in or pursuant to this Agreement or any other Transaction Document shall survive
the Closing and remain in full force and effect indefinitely to give effect to their respective terms, unless otherwise expressly provided for by their terms.  

7.2 Indemnification by Seller. Subject to the limitations set forth in Section 7.5, Seller shall indemnify, defend, save and hold
Purchaser and its Representatives (collectively, “Purchaser Indemnitees”) harmless from and against all losses, costs, damages and expenses, including reasonable attorneys’ fees and expenses and reasonable fees and
expenses of other professionals and experts, but excluding unforeseeable, speculative, special, indirect, consequential, exemplary and punitive damages (“Damages”) (but net of the amount of (x) any insurance proceeds
realized by such Purchaser Indemnitees from insurance policies with respect 

  
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to such matters or (y) any recoveries by any Purchaser Indemnitees from any third party, without duplication) resulting proximately from: 

(a) Seller’s breach of any of the representations or warranties of Seller contained in this Agreement; 

(b) Seller’s breach or nonfulfillment of any covenant or agreement made by Seller in or pursuant to this Agreement or in any
Transaction Document; or 
 (c) Seller’s failure to satisfy any Liabilities relating to any Excluded Asset and any of its
obligations relating to any of the Retained Liabilities. 
 7.3 Indemnification by Purchaser. Purchaser shall indemnify, defend, save
and hold Seller and its Representatives (collectively, “Seller Indemnitees”) harmless from and against any and all Damages (but net of the amount of (a) any insurance proceeds realized by such Seller Indemnitees from
insurance policies with respect to such matters or (b) any recoveries by any Seller Indemnitees from any third party, without duplication) resulting proximately from: 

(a) Purchaser’s breach of any of the representations or warranties of Purchaser contained in this Agreement; 

(b) Purchaser’s breach or nonfulfillment of any covenant or agreement made by Purchaser in or pursuant to this Agreement or in any
Transaction Document; or 
 (c) Purchaser’s failure to fully assume and satisfy any Assumed Liabilities. 

7.4 Notice of Claims. If (i) any Purchaser Indemnitee or Seller Indemnitee (an “Indemnified Party”)
believes that it has suffered or incurred any Damages for which it is entitled to indemnification under this ARTICLE VII, or (ii) any Claim is instituted by or against a third party with respect to which any Indemnified Party intends to
claim any Damages, such Indemnified Party shall so notify the party or parties from whom indemnification is being claimed (the “Indemnifying Party”) with reasonable promptness and reasonable particularity in light of the
circumstances then existing (the “Notice of Claim”). The Notice of Claim delivered pursuant to this Section 7.4 shall describe the Damages and/or Claim in reasonable detail and shall indicate the amount of the Damages
that have been suffered by the Indemnified Party. The failure of an Indemnified Party to give any notice required by this Section shall not affect any of such Party’s rights under this ARTICLE VII or otherwise except and to the
extent that such failure is prejudicial to the rights or obligations of the Indemnifying Party. 
 7.5 Limitation of Claims. The
liability of Seller or Purchaser for indemnifiable Damages pursuant to Section 7 shall not be payable unless and until the aggregate amount of all Damages suffered or incurred by the Purchaser Indemnitees or Seller Indemnitees, as the case may
be, collectively exceeds $50,000; thereafter, a Purchaser Indemnitee or Seller Indemnitee shall be entitled to seek compensation for Damages, and Seller or Purchaser, as applicable, shall be responsible for the payment of Damages to the extent in
excess of $50,000. The aggregate liability of Seller or Purchaser for indemnifiable Damages pursuant to Section 7.2(a), Section 7.2(b), Section 7.3(a) or Section 7.3(b) hereof shall in no event exceed $1,200,000 (the 

  
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“Indemnification Cap”). Notwithstanding the foregoing, the limitations on Damages set forth in this Section 7.5 shall not apply to any Damages arising from, or
directly or indirectly relating to, any fraud by or on behalf of Seller or Purchaser, as applicable. Notwithstanding anything herein to the contrary, at the option of Seller, any Damages for which Purchaser Indemnitees may be entitled to pursuant to
Section 7.2 may be satisfied by return of Equity Consideration to Purchaser, with each share thereof being valued at $0.336. 
 7.6
Objections to Claims. In case an Indemnifying Party shall object in writing to any Claim or Claims by an Indemnified Party made in any Notice of Claim, the Indemnified Party shall have twenty (20) days following the receipt of such written
objection to respond in a written statement to the objection of Indemnifying Party. If after such twenty- (20) day period there remains a dispute as to any claims, Seller and Purchaser shall attempt in good faith for thirty (30) days to
agree upon the rights of the respective parties with respect to each of such claims. 
 7.7 Resolution of Conflicts. If no agreement
can be reached after good faith negotiation between the parties pursuant to Section 7.6, Purchaser or Seller may initiate formal legal action pursuant to Section 8.5 to resolve such dispute. 

7.8 Third Party Claims. Should any Claim be made or suit or proceeding be instituted against any Purchaser Indemnitee, which, if
prosecuted successfully, would be a matter for which such Purchaser Indemnitee is entitled to indemnification pursuant to Section 7.2 (a “Purchaser Third Party Claim”), Purchaser shall notify Seller within five
(5) days after Purchaser’s receipt of notification of the Purchaser Third Party Claim, including a description of the factual basis of the Purchaser Third Party Claim and shall indicate the amount of the Damages. Thereafter, Purchaser
shall promptly deliver to Seller copies of all notices and documents (including court papers) received by Purchaser relating to the Purchaser Third Party Claim. Seller shall be entitled to participate in the defense of the Purchaser Third Party
Claim and, if it so chooses, to assume the defense thereof at its own expense with counsel selected by Seller, if Seller gives written notice to Purchaser of its election to assume the defense of such Purchaser Third Party Claim within ten
(10) days after Seller receives notice of such claim from Purchaser; provided, however, that Seller shall not be entitled to assume the defense of any Claim related to, either directly or indirectly, (i) the Program
Technology or any intellectual property acquired by Purchaser in connection with this Agreement, (ii) criminal liability, (iii) in which equitable relief is sought against a Purchaser Indemnitee or (iv) with respect to which the
potential Damages (estimated in good faith by the Purchaser Indemnitee) could be reasonably expected to exceed 200% of the then-existing balance of the Indemnification Cap. If Seller assumes the defense of a Purchaser Third Party Claim, Seller may
not consent to the entry of any judgment or enter into any settlement with respect to the Purchaser Third Party Claim without the prior written consent of the Purchaser Indemnitee (not to be unreasonably withheld, conditioned or delayed) if
(A) such judgment or settlement does not include as an unconditional term thereof the giving by each claimant or plaintiff to each Purchaser Indemnitee of a full release from all liability in respect to such Purchaser Third Party Claim,
(B) such judgment or settlement would result in the finding or admission of any violation of Law by Purchaser or the rights of any person, (C) the sole relief provided is anything other than monetary damages or (D) as a result of such
consent or settlement, injunctive or other equitable relief would be imposed against the Purchaser Indemnitee. Purchaser will cooperate, at the expense of Seller, as Seller 

  
 29 

 
may reasonably request in investigating, defending and, subject to the terms set forth above, settling such Purchaser Third Party Claim. If Seller elects not to defend a Purchaser Third Party
Claim, is not permitted to defend such Purchaser Third Party Claim or fails to notify Purchaser of its election as herein provided, Purchaser may pay, compromise, settle or defend such Purchaser Third Party Claim at the sole cost and expense of
Seller if Seller is determined to be liable to Purchaser hereunder, provided, however, that no such payment in compromise or settlement of, or other compromise or settlement of, may be effected by Purchaser without the Seller’s
consent (which shall not be unreasonably withheld, conditioned or delayed). In any event, Seller shall be entitled, at its expense, to participate in any defense of such Purchaser Third Party Claim with the consent of Purchaser, which shall not be
unreasonably withheld, conditioned or delayed. Should any Claim be made or suit or proceeding be instituted against any Seller Indemnitee, which, if prosecuted successfully, would be a matter for which such Seller Indemnitee is entitled to
indemnification pursuant to Section 7.3 (a “Seller Third Party Claim”), Seller shall notify Purchaser within twenty (20) days after Seller’s receipt of notification of the Seller Third Party Claim, including a
description of the factual basis of the Seller Third Party Claim and shall indicate the amount of the Damages. Thereafter, Seller shall promptly deliver to Purchaser copies of all notices and documents (including court papers) received by Seller
relating to the Seller Third Party Claim. Purchaser shall be entitled to participate in the defense of the Seller Third Party Claim and, if it so chooses, to assume the defense thereof at its own expense with counsel selected by Purchaser, if
Purchaser gives written notice to Seller of its election to assume the defense of such Seller Third Party Claim within five (5) days after Purchaser receives notice of such claim from Seller; provided, however, that Purchaser
shall not be entitled to assume the defense of any Claim related to, either directly or indirectly, (i) criminal liability, (ii) in which equitable relief is sought against a Seller Indemnitee or (iii) with respect to which the
potential Damages (estimated in good faith by the Seller Indemnitee) could be reasonably expected to exceed 200% of the then-existing balance of the Indemnification Cap. If Purchaser assumes the defense of a Seller Third Party Claim, Purchaser may
not consent to the entry of any judgment or enter into any settlement with respect to the Seller Third Party Claim without the prior written consent of the Seller Indemnitee (not to be unreasonably withheld or delayed) if (A) such judgment or
settlement does not include as an unconditional term thereof the giving by each claimant or plaintiff to each Seller Indemnitee of a full release from all liability in respect to such Seller Third Party Claim, (B) such judgment or settlement
would result in the finding or admission of any violation of Law by Seller or the rights of any person, (C) the sole relief provided is anything other than monetary damages or (D) as a result of such consent or settlement, injunctive or
other equitable relief would be imposed against the Seller Indemnitee. Seller will cooperate, at the expense of Purchaser, as Purchaser may reasonably request in investigating, defending and, subject to the terms set forth above, settling such
Seller Third Party Claim. If Purchaser elects not to defend a Seller Third Party Claim, is not permitted to defend such Seller Third Party Claim or fails to notify Seller of its election as herein provided, Seller may pay, compromise, settle or
defend such Seller Third Party Claim at the sole cost and expense of Purchaser if Purchaser is determined to be liable to Seller or Seller Indemnitee hereunder, provided, however, that no such payment in compromise or settlement of, or
other compromise or settlement of, may be effected by Seller without the Purchaser’s consent (which shall not be unreasonably withheld or delayed). In any event, Purchaser shall be entitled, at its expense, to participate in any defense of such
Seller Third Party Claim with the consent of Seller, which shall not be unreasonably withheld. 

  
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 7.9 Survival of Indemnification Claims. The indemnification obligations set forth in this
ARTICLE VII shall survive the Closing. 
 7.10 Tax Effect of Indemnification Payments. All indemnity payments made by Seller
to Purchaser Indemnitees, or by Purchaser to Seller Indemnitees, pursuant to this Agreement shall be treated for all Tax purposes as adjustments to the Purchase Price. 

7.11 Sole Remedy. Subject to Section 8.12, each of the Purchaser and Seller acknowledges and agrees that (a) following the
Closing, the indemnification provisions set forth in this Article VII shall be the sole and exclusive remedies of the Purchaser and Seller for any Damages related to a breach by the other Party of the representations or warranties in this Agreement
and for any failure by the other Party to perform and comply with any covenants, obligations or agreements in this Agreement other than Damages arising from, or directly or indirectly relating to, any fraud by or on behalf of Seller or Purchaser, as
applicable (which Damages arising from or relating to any fraud by or on behalf of Seller may, at Seller’s option, be satisfied by return of Equity Consideration to Purchaser, with each share thereof being valued at $0.336). In furtherance of
the foregoing sentence, each Party hereby waives, to the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or
otherwise relating to the subject matter of this Agreement that it may have against the other Party and its Affiliates and each of their respective representatives arising under or based upon any Law, except pursuant to the indemnification
provisions set forth in this Article VII and the remedies set forth in Section 8.12. 
 ARTICLE VIII 

GENERAL 
 8.1
Notices. All notices, requests, claims, demands or other communications that are required or may be given pursuant to the terms of this Agreement shall be in writing and shall be deemed to have been duly given (a) when delivered, if
delivered by hand, (b) one day after transmitted, if transmitted by a nationally recognized overnight courier service, (c) when telecopied, if telecopied (which is confirmed), (d) at the time transmitted by electronic mail, if
transmitted during normal business hours of the recipient, and on the next business day if transmitted after normal business hours of the recipient or (e) three days after mailing, if mailed by registered or certified mail (return receipt
requested), to the parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 8.1): 

(a) If to Purchaser: 
 K2
Therapeutics, Inc. 
 C/O 5AM Ventures 

890 Winter Street, Suite 140 

Waltham, MA 02451 
 Attention:
Chief Executive Officer 
 Email: jstein@k2rx.com 

Telephone: (858) 230-8519 

  
 31 

 Fax: 

With a simultaneous copy to: 

Cooley LLP 
 4401 Eastgate Mall

 San Diego, California 92121 

Attention: Charles Bair 
 Email:
cbair@cooley.com 
 Telephone: (858) 550-6142 

Fax: (858) 550-6420 

(b) If to Seller: 

Seachaid Pharmaceuticals, Inc. 

c/o Aisling Capital LLC 
 888
Seventh Avenue 
 New York, NY 10106 

Attention: Chief Executive Officer 

Email: selms@aislingcapital.com 

Telephone: (212) 651-6388 

Fax: (212) 651-6379 
 With
a simultaneous copy to: 
 McDermott Will and Emery LLP 

340 Madison Avenue 
 New York,
NY 10173 
 Attention: Todd Finger 

Email: tfinger@mwe.com 

Telephone: (212) 547-5352 

Fax: (212) 547-5444 

8.2 Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall
not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of
competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the Parties hereto agree that the court making such determination shall have the power to limit the term or provision, to delete specific words or
phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement
shall be enforceable as so modified. In the event such court does not exercise the power granted to it in the prior sentence, the Parties hereto agree to replace such invalid or unenforceable term or provision with a valid and enforceable term or
provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term. 

  
 32 

 8.3 Successors and Assigns; Parties In Interest. 

(a) This Agreement shall be binding upon: the Seller and its successors and assigns (if any) and the Purchaser and its successors and
assigns (if any). This Agreement shall inure to the benefit of: the Seller, the Purchaser; the other Indemnified Parties; and the respective successors and assigns (if any) of the foregoing. 

(b) No Party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of
the other Party, which shall not be unreasonably withheld, conditioned or delayed; provided that Purchaser may assign any of its rights or delegate any of its obligations under this Agreement without consent of Seller if (i) such
assignment is in connection with a merger or consolidation of Purchaser or the sale of the assets of Purchaser that are related hereto, with or to any entity which has aggregate assets that equal or exceed the aggregate assets of Purchaser at the
time of such assignment, or (ii) such assignment is in connection with a merger or consolidation of Purchaser or the sale of the assets of Purchaser that are related hereto and, following such merger, consolidation or sale, Purchaser shall
remain liable for the obligations set forth in Section 7 hereof. 
 (c) Except for the provisions of Section 7 hereof, none
of the provisions of this Agreement is intended to provide any rights or remedies to any Person other than the Parties to this Agreement and their respective successors and assigns (if any). Without limiting the generality of the foregoing,
(i) no employee of the Seller shall have any rights under this Agreement or under any of the other Transaction Documents (other than in his or her capacity as a shareholder of Seller), and (ii) no creditor of the Seller shall have any
rights under this Agreement or any of the other Transaction Documents. 
 8.4 Incorporation of Exhibits. All Exhibits and Schedules
attached hereto and referred to herein are hereby incorporated herein and made a part of this Agreement for all purposes as if fully set forth herein. 

8.5 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
DELAWARE OTHER THAN CONFLICT OF LAWS PRINCIPLES THEREOF DIRECTING THE APPLICATION OF ANY LAW OTHER THAN THAT OF DELAWARE. COURTS WITHIN THE STATE OF DELAWARE WILL HAVE JURISDICTION OVER ALL DISPUTES BETWEEN THE PARTIES HERETO ARISING OUT OF OR
RELATING TO THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY. THE PARTIES HEREBY CONSENT TO AND AGREE TO SUBMIT TO THE JURISDICTION OF SUCH COURTS. EACH OF THE PARTIES HERETO WAIVES, AND AGREES NOT TO ASSERT IN ANY
SUCH DISPUTE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY CLAIM THAT (I) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, (II) SUCH PARTY AND SUCH PARTY’S PROPERTY IS IMMUNE FROM ANY LEGAL PROCESS ISSUED
BY SUCH COURTS OR (III) ANY LITIGATION COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT FORUM. 

  
 33 

 8.6 Headings; Interpretation. The descriptive headings contained in this Agreement are
included for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of
this Agreement. 
 8.7 Counterparts; Facsimiles. This Agreement may be executed and delivered (including by electronic or facsimile
transmission) in two or more counterparts, and by the different Parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same
agreement. 
 8.8 Entire Agreement. This Agreement (including the Schedules and Exhibits attached hereto) and the Transaction
Documents executed in connection with the consummation of the Acquisition contain the entire agreement between the Parties with respect to the subject matter hereof and related transactions and supersede all prior agreements, written or oral, with
respect thereto. 
 8.9 Waivers and Amendments; Non-Contractual Remedies. This Agreement may be amended, superseded, canceled,
renewed or extended only by a written instrument signed by all of the Parties. The provisions hereof may be waived only in writing signed by all of the Parties. No delay on the part of any Party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any such right, power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise
of any other such right, power or privilege. 
 8.10 Knowledge. For purposes of this Agreement, (i) the Seller shall be deemed
to have “Knowledge” of a particular fact or other matter if any of Steve Elms, Balasingam Radhakrishnan (also known as Radha Krishnan) or Kenneth James has knowledge of such fact or other matter and (ii) the Purchaser
shall be deemed to have “Knowledge” of a particular fact or other matter if any of Jeff Stein or Kevin Forrest has knowledge of such fact or other matter. 

8.11 Time Of The Essence. Time is of the essence of this Agreement. 

8.12 Specific Performance. Each Party agrees that: (a) in the event of any breach or threatened breach by a Party of any covenant,
obligation or other provision set forth in this Agreement, the other Party shall be entitled (in addition to any other remedy that may be available to it) to seek (i) a decree or order of specific performance or mandamus to enforce the
observance and performance of such covenant, obligation or other provision, and (ii) an injunction restraining such breach or threatened breach; and (b) neither the other Party nor its Representatives shall be required to provide any bond
or other security in connection with any such decree, order or injunction or in connection with any related action or Proceeding. 

[Signatures appear on next page] 

  
 34 

 IN WITNESS WHEREOF, intending to be legally bound hereby, the Parties have caused this Agreement
to be signed in their respective names by their duly authorized representatives as of the date first above written. 
  

			
	K2 THERAPEUTICS, INC.
		
	By:	 	 /s/ Jeffrey Stein

	Name:	 	 Jeffrey Stein

	Title:	 	 CEO

	
	SEACHAID PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Steve Elms

	Name:	 	 Steve Elms

	Title:	 	 CEO

 [SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT]

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