Document:

CONFIDENTIAL

    

 

Exhibit 10.1

 

INTELLECTUAL PROPERTY LICENSE AGREEMENT

 

This INTELLECTUAL PROPERTY
LICENSE AGREEMENT (this “Agreement”) is entered into as of May 14, 2015 (the “Effective Date”),
by and between ATOSSA GENETICS INC., a Delaware Corporation, with its principal offices located at 2345 Eastlake Ave E.,
Seattle, WA 98102, U.S.A. (“Atossa”), and BESINS HEALTHCARE LUXEMBOURG SARL., a corporation, with its
principal office located at 2-8 rue Julien Vesque, L-2668 Luxembourg, acting on behalf of itself and its Affiliates (collectively
“Besins”). Atossa and Besins may be referred to herein individually as a “Party” or collectively
as the “Parties.”

 

RECITALS

 

WHEREAS, the
Parties are engaged in the research, development, formulation, manufacturing, and marketing of new pharmaceutical products;

 

WHEREAS, Atossa
desires to obtain certain rights and licenses from Besins in order to develop, formulate, manufacture, and market new pharmaceutical
products on the terms and conditions set forth herein;

 

WHEREAS,
Besins desires to grant certain rights and licenses to Atossa to enable Atossa to develop, formulate, manufacture, and market new
pharmaceutical products on the terms and conditions set forth herein;
and

 

NOW, THEREFORE,
in consideration of the mutual promises hereinafter set forth, and intending to be legally bound hereby, Atossa and Besins hereby
agree as follows.

 

ARTICLE 1

Defined Terms

1.1General. Capitalized terms
and expressions in this Agreement will have the meanings set forth herein, whether used in their singular or plural form. Non-capitalized
terms and expressions will have their common and ordinary meaning.

 

1.2“Action” shall
have the meaning set forth in Section 3.2(b).ii.b.

 

1.3“Additional Indication”
means (i) breast cancer and (ii) other breast diseases described in Besins Core IP or Besins Regulatory Information.

 

1.4“Affiliate” means,
with respect to a Party, a corporation, partnership or other entity controlling, controlled by or under common control with such
Party, but only for so long as such relationship exists, where the word “control,” as used in this Section
1.4, means ownership, directly or indirectly, of at least fifty percent (50%) of the stock or shares having the right to vote
for the election of directors or, in the case of a non-corporate entity, the power to direct the management of such entity.

 

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1.5“Afimoxifene Gel”
means API in the form of a hydroalcoholic gel or solution that is formulated for dosing a mammal. “Besins Afimoxifene
Gel” means any Afimoxifene Gel described in Besins Platform IP or Besins Core IP, whether or not encompassed by a Valid
Claim thereof.

 

1.6 “Agreement”
shall have the meaning set forth in the preamble to this Agreement.

 

1.7 “API” means
4-Hydroxytamoxifen (4-OHT). For clarity, the term “API” includes the E-isomer form of 4-OHT, and the Z-isomer form
of 4-OHT, either alone or in a combination thereof.

 

1.8“Applicable Law”
means all international, national, state, regional and local laws, regulations, rules and guidelines applicable to performing under
this Agreement, including without limitation, all Regulatory Requirements.

 

1.9“Atossa Background IP”
means all Intellectual Property conceived, discovered, developed, acquired, made, reduced to practice, owned or Controlled by or
for Atossa or an Affiliate thereof before the Effective Date. For clarity, Atossa Background IP includes (i) any patent claiming
Afimoxifene Gel as described in Exhibit A and any patent issuing from a pending patent application claiming Afimoxifene
Gel as described in Exhibit A, such Exhibit A shall be a part of this Agreement; (ii) any continuation or divisional patents
and patent applications based on, corresponding to, or claiming the priority date(s) of the foregoing (i); (iii) any reissues,
re-examinations, substitutions, supplementary protection certificates, registrations, validations, continued prosecutions, continuations
or divisions of or to any of the foregoing (i) – (ii); (iv) any continuation-in-part of or to any of the foregoing (i) –
(iii) wherein any added material in the continuation-in-part does not claim any Besins Afimoxifene Gel or the use of any Afimoxifene
Gel in the Field; (v) any term extension or other right which provides exclusive rights beyond the original patent expiration date
of the foregoing (i) – (iv); and (vi) all foreign counterparts of any of the foregoing (i)-(v), whether filed before or after
the Effective Date. For avoidance of doubt, all Intellectual Property conceived discovered, developed, acquired, made, or reduced
to practice by or for Atossa or an Affiliate thereof, which does not claim any Besins Afimoxifene Gel or the use of any Afimoxifene
Gel in the Field, shall not be considered Atossa Foreground IP; such Intellectual Property shall be Background IP regardless of
when it was conceived, discovered, developed, acquired, made, or reduced to practice.

 

1.10 “Atossa Foreground IP”
means all Intellectual Property claiming any Besins Afimoxifene Gel or claiming any uses of any Afimoxifene Gel in the Field conceived,
discovered, developed, made or reduced to practice by or for Atossa or an Affiliate thereof during the Term in connection with
obtaining Regulatory Approval, Development, and/or Commercialization of Afimoxifene Gel in the Field, including (i) any new patent
applications and issued or granted patents claiming any Besins Afimoxifene Gel or the use of any Afimoxifene Gel in the Field filed
or authorized to be filed by or for Atossa or an Affiliate thereof, (ii) any new patent applications and issued patents based on,
corresponding to, or claiming the priority date(s) of the foregoing (i); (iii) any reissues, re-examinations, substitutions, supplementary
protection certificates, registrations, validations, continuations, continued prosecutions, divisions, or continuations-in-part
of or to any of the foregoing (i) – (ii), to the extent any such continuation-in-part claims any Besins Afimoxifene Gel or
the use of any Afimoxifene Gel in the Field; (iv) any term extension or other right which provides exclusive rights beyond the
original patent expiration date of any of the foregoing (i) – (iii); and (v) all foreign counterparts of any of the foregoing
(i) – (iv). For clarity, Atossa Foreground IP may include claims in continuations-in-part of Atossa Background IP if any
added claims in such continuation-in-part describes any Besins Afimoxifene Gel or the use of any Afimoxifene Gel in the Field.
Atossa Foreground IP does not include any Atossa Background IP, Atossa Regulatory Information or Atossa Know-How owned or Controlled
by Atossa or an Affiliate thereof, Besins Core IP, Besins Platform IP, or Regulatory Information or Know-How owned or Controlled
by Besins or an Affiliate thereof before the Effective Date. Atossa Foreground IP shall be listed in an Exhibit B, such
Exhibit B shall become of this Agreement and be updated bi-annually.

 

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1.11“Atossa Indemnitees”
shall have the meaning set forth in Section 9.2.

 

1.12“Besins Core IP”
means all Intellectual Property directed to the use of Afimoxifene Gel in the Field and Controlled by Besins or an Affiliate thereof
before the Effective Date. For clarity, Besins Core IP includes (i) any patents described in Exhibit C and any patents issuing
from a pending patent application described in Exhibit C, which shall be a part of this Agreement and be updated bi-annually;
(ii) any continuation, continuation-in-part, or divisional patents and patent applications based on, corresponding to, or claiming
the priority date(s) of the foregoing (i); (iii) any reissues, re-examinations, substitutions, supplementary protection certificates,
registrations, validations, continued prosecutions, continuations, continuations-in-part, or divisions of or to any of the foregoing
(i) – (ii); (iv) any term extension or other right which provides exclusive rights beyond the original patent expiration
date of the foregoing (i) – (iii); and (v) all foreign counterparts of any of the foregoing (i) – (iv), whether filed
before or after the Effective Date.

 

1.13“Besins Platform IP”
means any Besins Intellectual Property directed to Afimoxifene Gel and Controlled by Besins or an Affiliate thereof before the
Effective Date. For clarity, Besins Platform IP includes (i) any patents described in Exhibit D and any patents issuing
from a pending patent application described in Exhibit D, which shall be a part of this Agreement and be updated bi-annually;
(ii) any continuation, divisional or continuation-in-part patents and patent applications based on, corresponding to, or claiming
the priority date(s) of the foregoing (i); (iii) any reissues, re-examinations, substitutions, supplementary protection certificates,
registrations, validations, continued prosecutions, continuations, divisions or continuations-in-part of or to any of the foregoing
(i) – (ii); (iv) any term extension or other right which provides exclusive rights beyond the original patent expiration
date of the foregoing (i) – (iii); and (v) all foreign counterparts of any of the foregoing (i) – (iv), whether filed
before or after the Effective Date.

 

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1.14“cGMP” means
the current Good Manufacturing Practices as promulgated under the U.S. Food & Drug Administration regulations at 21 C.F.R.,
Parts 210, 211, 600 and 610, FDA guidance, FDA current review and inspection standards, and current industry standards, as the
same may be amended or re-enacted from time to time.

 

1.15“Clinical Development”
means clinical drug development activities with respect to, or required or necessary for, IND and/or Regulatory Approval of Afimoxifene
Gel, or for Commercialization of Afimoxifene Gel, including, among other things: analytical, test method development, stability
testing, formulation, process development, manufacturing scale-up, development stage manufacturing, pre-clinical studies, Clinical
Studies (including pre- and post-approval clinical studies), and/or other studies or activities (including regulatory affairs and
activities, quality assurance/control activities, and performance with respect to clinical materials, statistical analysis and
report writing, product approval and product registration.

 

1.16“Clinical Study”
means a clinical research study involving human subjects, and for a Phase 2 Clinical Study, its principal purpose is determining
dose and evaluating safety and efficacy of the Afimoxifene Gel in the target patient population, or a similar clinical study prescribed
by the Regulatory Authority in the Territory, which is equivalent of the clinical trial described in 21 C.F.R. § 312.21(b),
as may be amended, in the United States of America, and for a Phase 3 Clinical Study, it is designed to establish safety and efficacy
of the Afimoxifene Gel, which trial is intended to support Regulatory Filing and Regulatory Approval for the Afimoxifene Gel in
the Territory, as the case may be, and which is equivalent of the clinical trial described in 21 C.F.R. § 312.21(c), as may
be amended, in the United States of America..

 

1.17“Commercialize,”
“Commercialization” “Commercializing” or “Commercialized” means any and
all activities relating to and including promotion, marketing, distribution, selling, having sold, offering for sale, having offered
for sale, manufacturing, having manufactured, importing, having imported, exporting, having exported, and sales of Afimoxifene
Gel in the Territory in accordance with Applicable Law, including advertising, product support, consumer and physician education,
managed market activities, market share generation trials, market and consumer research, customer support, detailing, distributing,
labeling, pricing, coverage, and reimbursement.

 

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1.18“Commercially Reasonable
Efforts” means those efforts employed by a Party, consistent with that level of attention and care, and providing of
funding and manpower, that such Party devotes to its other programs and products of similar market potential, and which efforts
are consistent with pharmaceutical industry custom and practice and with the then-current stage of pharmaceutical product life
cycle.

 

1.19“Confidential Information”
means any and all non-public data, information and technology and all tangible and intangible embodiments thereof, that is (i)
Controlled by a Party or its Affiliates (“Disclosing Party”) and is disclosed or supplied in any form by or
on behalf of such Disclosing Party to the other Party or its Affiliates (“Receiving Party”) in any media or
format, whether written, oral, graphic, or other tangible form or electronic form, in connection with this Agreement or otherwise
observed by the Receiving Party, and (ii) is not published or otherwise in the public domain, including, without limitation: (a)
Intellectual Property, Data and Development Records of a Party; (b) information or material provided in written, oral, graphic
or other tangible form or electronic form that is marked as “Confidential” at the time it is delivered to the Receiving
Party or confirmed and marked as “Confidential” within thirty days after disclosure; and (c) any information or material
that, by its nature or by the circumstances surrounding its disclosure, ought, in good faith, to be treated as confidential.

 

1.20“Control” when
used in reference to a particular item of information (including Information) or Intellectual Property right, means the legal authority
or right of a Party (i) to grant a license or sublicense of Intellectual Property rights to the other Party, or (ii) to grant access
and/or a right to use, or to otherwise disclose, proprietary or Trade Secret Information to the other Party, without breaching
the terms of any agreement with a Third \Party, infringing upon the Intellectual Property rights of a Third Party, or misappropriating
the proprietary or Trade Secret Information of a Third Party, and without incurring material additional costs to procure such Third
Party rights beyond those already incurred. The terms “Controlled” and “Controlling” shall
be interpreted accordingly.

 

1.21“Data” means
any and all analyses, computations, charts, computer or device readings or outputs, data, diagrams, graphs, information, results
(whether qualitative, quantitative, or otherwise) pertaining to Afimoxifene Gel and obtained or produced by or for either Party,
its officers, directors, employees, subcontractors, agents and Affiliates, together with all documentation thereof.

 

1.22“Development,”
“Develop,” or “Developing” means to engage in Pre-Clinical Development or Clinical Development
of Afimoxifene Gel.

 

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1.23“Development Plan”
means Atossa’s plan for Developing Afimoxifene Gel in the Field in the Territory under this Agreement as amended, modified,
or supplemented from time to time by Atossa in good faith, and includes Development milestones and periods for accomplishing those
milestones in accordance with industry standards. Atossa’s Development Plan is listed in Appendix E, which shall be part
of this Agreement.

 

1.24“Development Record”
means all documentation that is owned or Controlled by a Party (e.g., “Besins Development Record” or
“Atossa Development Record”) that relates to Data and/or to performance of Development and Commercialization
of Afimoxifene Gel and necessary to support the filing of patent and/or regulatory application(s) and to obtain Regulatory Approval
of and Commercialize Afimoxifene Gel in the Field including, without limitation, all applications, submissions, licenses, registrations
for Regulatory Approval, know-how, primary source documents, testing results, manufacturing records including manufacturing designs
and protocols, compliance and quality assurance documents, research notes and records, Clinical Development notes and records,
regulatory filings and communications, including without limitation, any INDs and NDAs related to Afimoxifene Gel, drug master
files, packaging and labeling information, clinical trial protocols and amendments thereof, investigator brochures, safety reports,
annual reports, raw data, and other related Development records regardless of format or media.

 

1.25“Effective Date”
shall have the meaning set forth in the preamble.

 

1.26“Encumbered”
means any encumbrance or restriction on the right of Besins to grant a license to the full extent described in Sections 2.1
of this Agreement, as applicable, that was (i) licensed by Besins to a Third Party under an agreement executed prior to the Effective
Date, or (ii) subject to a security interest or lien.

 

1.27“Field” initially
means the treatment and prevention of Hyperplasia of the breast, and may be expanded to include one or both Additional Indications
in accordance with Section 4.2 of this Agreement.

 

1.28“First Commercial Sale”
means the first arm’s length commercial sale of Afimoxifene Gel in the Territory to a Third Party by Atossa, or its Affiliate
or Sublicensees, after Regulatory Approval has been obtained in the country of sale, but excluding: (i) any sale or other transfer
of a Afimoxifene Gel by Atossa or any of its Affiliates or Sublicensees to a Third Party for use solely in Clinical Trial(s) in
connection with obtaining Regulatory Approval; and (ii) any sale or other transfer between or among Atossa and its Affiliates or
its Sublicensees for resale by Atossa, such Affiliate or Sublicensee to a Third Party, until such time as there is a subsequent
resale to a Third Party by Atossa or any such Affiliate or Sublicensee.

 

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1.29“Force Majeure”
means any event beyond the reasonable control of a Party, including, acts of public enemy, acts of God, fires, floods, epidemics,
and unusually severe weather, embargoes, war, riot, or acts of terrorism.

 

1.30“IND” means
(i) an Investigational New Drug Application, as defined in the U.S. Federal Food, Drug and Cosmetic Act, as amended, and the regulations
promulgated thereunder, that is required to be filed with the FDA before beginning clinical testing of a pharmaceutical product
in human subjects; and (ii) any foreign counterpart of a U.S. IND.

 

1.31“Indication”
shall mean any human therapeutic and prophylactic use(s) for Afimoxifene Gel.

 

1.32“Intellectual Property”
means (i) Know-How, (ii) any (a) patents and patent applications, (b) any reissues, re-examinations, substitutions, supplementary
protection certificates, registrations, validations, continuations, continuations-in-part, continued prosecutions, or divisions
of or to any of the foregoing (a); (c) any term extension or other right which provides exclusive rights beyond the original patent
expiration date of any of the foregoing (a) – (b); and (d) all foreign counterparts of any of the foregoing (a) – (c),
whether filed before or after the Effective Date, (iii) any information, data, know-how, invention (whether patentable or not),
technology, techniques, Development Records, Manufacturing Information, and Regulatory Information that derives actual or potential
economic value from not being generally known to or readily ascertainable by proper means by other persons who can obtain economic
value from its disclosure or use and is the subject of reasonable efforts to maintain its secrecy; (iv) all Trade Secret-associated
rights or protections granted under applicable laws of the United States, applicable state laws, and/or applicable laws in foreign
jurisdictions; and (v) all other intellectual property and proprietary rights, including Copyrights, Trade Dress, and Trademarks,
in each case whether or not subject to statutory registration or protection.

 

1.33 “Losses” shall
have the meaning set forth in Section 9.2.

 

1.34“Know-How” means
any proprietary or non-public information and/or data related to the Field, Afimoxifene Gel, or Regulatory Information, or which
are otherwise necessary or useful to Development, Commercialization, or obtaining Regulatory Approval of Afimoxifene Gel for use
in the Field, and which are possessed, known, learned, invented, developed, owned, or controlled by a Party (e.g., “Besins
Know-How” or “Atossa Know-How”), whether or not protected by Intellectual Property rights or any applications
for such rights, including but not limited to: (i) information relating to concepts, discoveries, Data, designs, technical information,
know-how, knowledge, clinical data, formulations, ideas, inventions, methods, models, procedures, processes, specifications, designs
for experiments and tests (including processing testing), test results, and assays; (ii) information related to identity, specification,
release, stability indication of API, excipient, finished goods, rework criteria, batch records, suppliers, and laboratory records;
(iii) information germane to making, using, selling, offering for sale, importing, exporting Afimoxifene Gel or practicing methods
related to Afimoxifene Gel in the Field; and (iv) information contained in submissions to regulatory authorities.

 

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1.35 “Manufacturing Information”
means information, Data, Know-How, technology, techniques and any other information that is owned or Controlled by or for a Party
(e.g., “Besins Manufacturing Information” or “Atossa Manufacturing Information”) that
relates to manufacturing of Afimoxifene Gel. Such manufacturing information includes, without limitation, all information related
to GMP and cGMP protocols, development data, Development Records, pilot phase and commercial process development, scale up, qualification,
calibration, maintenance, validation and testing protocols, specifications, and data, and includes information related to identity,
specification, release, stability indication of API, excipient, formulation, finished goods, rework criteria, batch records, suppliers,
and tangible materials, and true, accurate and complete books, records, reports and accounts in connection with the Afimoxifene
Gel manufacturing as well as any other books and records as may be required from time to time by any applicable legal and regulatory
requirement such as drug master files and regulatory audits, facility audits, audit reports, warning letters, and remediation activities
and reports, and other regulatory communications regarding manufacturing activities.

 

1.36 “Net Sales”
means the gross revenue received by Atossa, its Affiliates, their respective Sublicensees and Atossa Third-Party Resellers for
the sale of Afimoxifene Gel to Third Parties other than Besins and its Affiliates and Sublicensees (whether end-users, wholesalers
or otherwise) in an arm’s-length transaction, less the amount of the following deductions: (i) normal and customary trade,
cash and quantity discounts actually given, credits, price adjustments or allowances for damaged products, returns or rejections
of products, and allowance or rebates for retroactive price reductions; (ii) chargeback payments and rebates (or the equivalent
thereof), if any, granted to group purchasing organizations, managed health care organizations or to federal, state/provincial,
local and other governments, including their agencies, or to trade customers, wholesalers or other distributors; (iii) freight,
shipping insurance and other transportation expenses directly related to shipments or deliveries of Afimoxifene Gel (if actually
borne by Atossa, its Affiliates or Sublicenses without reimbursement from any Third Party); (iv) sales taxes, value-added taxes,
excise taxes, tariffs and duties of importation, and other taxes and any other similar government charges actually borne by Atossa,
its Affiliates or Sublicensees in connection with the sale or delivery of Afimoxifene Gel without reimbursement from any Third
Party (but not including taxes assessed against the income derived from such sale); and (v) provisions for actual uncollectible
accounts determined in accordance with U.S. generally accepted accounting principles, International Financial Reporting Standards,
or such other accounting practices as Atossa or its Affiliates or Sublicensees may, at their sole discretion, adopt, as consistently
applied by Atossa, its Affiliates, or Sublicensees (as applicable).

 

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1.37“NDA” means
a New Drug Application or similar application or submission filed with a Regulatory Authority in a country or a group of countries
to obtain marketing approval for a Afimoxifene Gel in that country or in that group of countries.

 

1.38“Pre-Clinical Development”
means drug development activities, including toxicology studies, bioanalytical test method development, pre-formulation and formulation,
process development, manufacturing design and scale up, quality assurance/control and performance with respect to studies and materials.

 

1.39“Regulatory Approval”
means any approval, authorization, license, permit or registration granted or issued by a Regulatory Authority necessary for, or
that otherwise governs, the research and development, Clinical Study, manufacture, handling, use, storage, import, export, transport,
distribution or Commercialization of Afimoxifene Gel, including without limitation, where applicable, labeling, pricing and/or
reimbursement approval.

 

1.40“Regulatory Authority”
means, with respect to any particular country, territory or union, the governmental authority, body, commission, agency or other
instrumentality of such country, territory or union with the primary responsibility for the evaluation or approval of pharmaceutical
products before such pharmaceutical product may be tested, marketed, promoted, distributed or sold in such country, including such
governmental bodies that have jurisdiction over the pricing of such pharmaceutical product.

 

1.41“Regulatory Information”
means information, data, know-how, technology, techniques, and any other information that is owned or Controlled by a Party (e.g.,
“Besins Regulatory Information” or “Atossa Regulatory Information”) that relates to Regulatory
Approval of Afimoxifene Gel, including Data, practices, methods, techniques, preclinical and clinical results, including safety
and efficacy, regulatory filings, IND, drug master files, regulatory audits and audit reports, warning letters, remediation activities,
and remediation reports, packaging, compositions of matter, specifications, tests (including processing testing), assays, and methods.
Besins Regulatory Information includes IND 59,081 and IND 66,076.

 

1.42“Regulatory Requirements”
means all applicable approvals, licenses, registrations, and authorizations and all other requirements of each applicable Regulatory
Authority in relation to Afimoxifene Gel, including each of the foregoing which is necessary for, or otherwise governs, the research
(clinical and non-clinical) and Development, manufacture, handling, use, storage, import, transport, distribution or Commercialization
of Afimoxifene Gel.

 

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1.43 “Sublicensee”
means any Party or Third Party to which a Party has granted a sublicense under the licenses granted to the Party herein.

 

1.44“Supplier” means
any supplier operating under an agreement with a Party or an Affiliate or Sublicensee thereof (e.g. “Atossa Supplier”
or “Besins Supplier”) to manufacture or supply Afimoxifene Gel.

 

1.45“Term” shall
have the meaning set forth in Section 8.1.

 

1.46“Terminated Country”
means a country in the Territory wherein rights of Atossa granted hereunder have been terminated in accordance with Section
4.3(a), 4.3(b), 4.3(c) or 4.3(d).

 

1.47“Terminated Indication”
means an Indication in the Field to which the rights granted to Atossa hereunder have been terminated in accordance with Section
4.3(a), 4.3(b), 4.3(c) or 4.3(d).

 

1.48“Territory”
means worldwide.

 

1.49“Third Party”
means any person or entity other than Atossa or Besins and their respective Affiliates.

 

1.50“Third Party Action”
shall have the meaning set forth in Section 3.2(b).iii.a.

 

1.51“Third Party Resellers”
means Sublicensees, Suppliers, and distributors engaged by a Party and/or its Affiliates and Sublicensees (e.g., “Atossa
Third Party Resellers” or “Besins Third Party Resellers”) to distribute the Afimoxifene Gel.

 

1.52“Valid
Claim” means a claim of (a) an issued and unexpired patent (the term of such patent to include any term extension or
other right which provides exclusive rights beyond the original patent expiration date) included within the Besins Core IP or Besins
Platform IP unless the claim has been held revoked, unenforceable or invalid by the final, un-reversed, and un-appealable decision
of a court or other body of competent jurisdiction, has been irretrievably abandoned or disclaimed, or has otherwise been finally
admitted or finally determined by the relevant authority to be invalid, un-patentable or unenforceable, whether through reissue,
reexamination, disclaimer, consent decree, or otherwise, (b) a pending patent application within the Besins Core IP or Besins Platform
IP, to the extent the claim continues to be prosecuted in good faith, or (c) a pending patent application or issued patent within
the Atossa Foreground IP that describes Besins Afimoxifene Gel or the use of any Afimoxifene Gel in the Field.

 

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ARTICLE 2

License Grants

 

		2.1	Besins Core IP, Besins Platform IP, and Afimoxifene
Gel.

 

Subject to terms and
conditions set forth in this Agreement, during the Term, Besins hereby grants to Atossa and its Affiliates:

 

(a)an exclusive
(even as to Besins and its Affiliates), transferable license (with the right to sublicense in accordance with Section 2.1(d)
through multiple tiers under terms and conditions at least as restrictive as this Agreement) under Besins Core IP and under Besins
Platform IP to make, have made, manufacture, have manufactured, use, sell, have sold, offer to sell, have offered to sell, import,
have imported, export, have exported, and otherwise transfer, dispose of, distribute, or Develop and improve Afimoxifene Gel for
the sole purposes of obtaining Regulatory Approval and Commercialization of Afimoxifene Gel in the Field in the Territory during
the Term and practicing any method claimed in the Besins Core IP and Besins Platform IP in the Field in the Territory during the
Term; and

 

(b) a right to
access, review and reference Besins IND 59,081 and IND 66,076 to the extent that such access, review, and reference may be useful
to Develop Afimoxifene Gel for the sole purposes of obtaining Regulatory Approval and Commercialization of Afimoxifene Gel in the
Field in the Territory, which right shall be exclusive in the Field in the Territory.

 

(c)Notwithstanding
the licenses granted under Section 2.1(a), Atossa acknowledges that Besins retains for itself and its Affiliates and Sublicensees
the right to make, have made, manufacture, have manufactured, use, sell, have sold, offer to sell, have offered to sell, import,
have imported, export, have exported, and otherwise transfer, dispose of, distribute, or Develop and improve Afimoxifene Gel for
use outside the Field worldwide or for use in the Field on a Terminated Indication-by-Terminated Indication basis and/or in a Terminated
Country. Atossa hereby recognizes that Besins or its Affiliates may establish a direct relationship with any Atossa Supplier with
a prior ninety (90) business days’ notice in writing to Atossa of its intent to do so and that Atossa may not take any action
to restrict this right, provided that (i) Atossa Supplier provides written assurance to Besins that any relationship between
Besins and Atossa Supplier shall not negatively impact the ability of Atossa Supplier to satisfy its supply obligations to Atossa,
and (ii) Besins will ensure that any Afimoxifene Gel supplied to Besins by Atossa Supplier is labeled only for uses outside the
Field. Further, for the same purpose, Besins shall be granted reasonable access from Atossa to any Afimoxifene Gel specifications,
Data, Information and Development Records inclusive, as may be updated or modified from time to time during the Term, in reasonably
completed and accurate form, and Besins shall treat the foregoing as Confidential Information pursuant to Article 6.

 

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(d)Sublicense(s):
The term of the sublicenses hereunder granted by Atossa to Third Parties through multiple tiers shall be equal to the Term of this
Agreement. In the event of any sublicense of any rights hereunder, the sublicensor of such rights shall provide Besins with written
notice of, and a copy of the agreement memorializing such sublicense within thirty (30) days of execution of the sublicense. For
any country of the Territory for which Commercialization has not been (or is not anymore) sublicensed by Atossa, Besins shall have
a right of first refusal to Commercialize the Afimoxifene Gel in the Field during the Term on terms as least as favorable to Besins
as Atossa or its Affiliates would offer to a Third Party, provided however that Besins has its own commercial operations
of breadth, depth and scope equal to such Third Party and including having sufficient manpower in this country.

 

		2.2	Atossa Foreground IP.

 

Subject to terms and
conditions set forth in this Agreement, Atossa hereby grants to Besins and its Affiliates an irrevocable, perpetual, non-exclusive,
royalty-free, fully paid, non-transferable license (with the right to sublicense through multiple tiers under terms and conditions
at least as restrictive as this Agreement) under Atossa Foreground IP to make, have made, use, sell, have sold, offer to sell,
have offered to sell, import, have imported, export, have exported, and otherwise transfer, dispose of, and distribute Afimoxifene
Gel outside the Field worldwide or in the Field on a Terminated Indication-by-Terminated Indication basis and/or in a Terminated
Country.

 

		2.3	Covenants Not to Sue.

 

(a) Besins hereby covenants,
on behalf of itself and its Affiliates, successors and assigns, not to sue or otherwise bring a claim against Atossa or its Affiliates
or Atossa Third Party Resellers, during the Term, asserting that their conduct of the following activities infringes any Regulatory
Information and/or Intellectual Property that is Controlled by Besins and not licensed to Atossa pursuant to this Agreement: (i)
making, having made, manufacturing, having manufactured, using, selling, having sold, offering to sell, having offered to sell,
importing, having imported, exporting, have exported, or otherwise transferring, disposing of, distributing, or Developing Afimoxifene
Gel for the sole purposes of obtaining Regulatory Approval and Commercialization of Afimoxifene Gel for any Indication in the Field
and practicing in the Field in the Territory any method using Afimoxifene Gel claimed by intellectual property that is Controlled
by Besins and not licensed to Atossa pursuant to this Agreement. In addition to Atossa and its Affiliates, the covenant set forth
in this Section 2.3(a) shall extend to (1) Third Parties, including Sublicensees and Atossa Suppliers, to whom Atossa has
granted sublicenses to the rights obtained by Atossa under Section 2 of this Agreement, or who purchase or otherwise receive
Afimoxifene Gel for use in the Field from Atossa consistent with the terms of this Agreement; (2) other of Atossa’s Sublicensees
of the rights obtained by Atossa under Section 2 of this Agreement, including Atossa Third Party Resellers and customers
who receive Afimoxifene Gel for use in the Field in the Territory consistent with the terms of this Agreement; and (3) any successors
and assigns of Atossa or Affiliates thereof.

 

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(b) Atossa hereby covenants,
on behalf of itself and its Affiliates, successors and assigns, not to sue or otherwise bring a claim against Besins or its Affiliates
or Besins Third Party Resellers, during the Term, asserting that their conduct of the following activities infringes any Regulatory
Information and/or Intellectual Property that is Controlled by Atossa and not licensed to Besins pursuant to this Agreement: (i)
making, having made, manufacturing, having manufactured, using, selling, having sold, offering to sell, having offered to sell,
importing, having imported, exporting, have exported, or otherwise transferring, disposing of, distributing, or Developing Afimoxifene
Gel for the sole purposes of obtaining Regulatory Approval and Commercialization of any Besins Afimoxifene Gel for any Indication
outside the Field worldwide or inside the Field on a Terminated Indication-by-Terminated Indication basis and/or in a Terminated
Country and practicing any method using Besins Afimoxifene Gel outside the Field worldwide or inside the Field on a Terminated
Indication-by-Terminated Indication basis and/or in a Terminated Country claimed by intellectual property that is Controlled by
Atossa and not licensed to Besins pursuant to this Agreement, provided however, such conduct shall not infringe any
Regulatory Information and/or Intellectual Property conceived, developed or Controlled by Atossa which does not claim Besins Afimoxifene
Gel. In addition to Besins and its Affiliates, the covenant and restrictions set forth in this Section 2.3(b) shall extend
to (1) Third Parties, including Sublicensees and Besins Suppliers, to whom Besins has granted sublicenses to the rights obtained
by Besins under Section 2 of this Agreement, or who purchase or otherwise receive Besins Afimoxifene Gel from Besins consistent
with the terms of this Agreement; (2) other of Besins’ Sublicensees of the rights obtained by Besins under Section 2
of this Agreement, including Besins Third Party Resellers and customers who receive Besins Afimoxifene Gel consistent with the
terms of this Agreement; and (3) any successors and assigns of Besins or Affiliates thereof.

 

		2.4	No Implied Right or License.

 

Nothing contained in
this Agreement will be implied to grant to one Party any ownership right or license right with respect to the other Party’s
Intellectual Property other than as expressly provided herein.

 

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ARTICLE 3

Intellectual Property

		3.1	Ownership.

 

		(a)	Besins Intellectual Property.

 

Notwithstanding the
licenses granted hereunder, Besins shall retain sole and exclusive ownership of all rights, title, and interest in and to Besins
Core IP and Besins Platform IP.

 

		(b)	Atossa Background Intellectual Property.

 

Atossa shall retain
sole and exclusive ownership of all rights, title, and interest in and to Atossa Background IP at all times.

 

		(c)	Atossa Foreground Intellectual Property.

 

Notwithstanding the
licenses granted hereunder, Atossa shall retain sole and exclusive ownership of all rights, title, and interest in and to Atossa
Foreground IP.

 

		3.2	Protection of Intellectual Property.

 

(a) Patent Filing,
Prosecution and Maintenance.

 

i. Rights and Obligations
of Besins

 

Besins shall retain
the exclusive right, but not the obligation, to prepare, file, prosecute and maintain all registerable rights in the Besins Core
IP and Besins Platform IP (collectively “Besins IP”) at all times during the Term of this Agreement at the sole
expense of Besins. Besins shall provide Atossa a reasonable and meaningful opportunity to review and comment on such patent preparation,
filing, prosecution and maintenance related to the Besins Core IP and Besins Platform IP and shall consider such input from Atossa.

 

ii. Rights and Obligations
of Atossa

 

Atossa shall have the
exclusive right, but not the obligation, to prepare, file, prosecute, and maintain, at the sole expense of Atossa, all registerable
rights in the Atossa Background IP, Atossa Data, Atossa Regulatory Information, Atossa Manufacturing Information, and Atossa Developments
Records at all times. During the Term, Atossa shall have the exclusive right, but not the obligation, to prepare, file, prosecute,
and maintain, at its sole cost and sole discretion, all registerable rights in the Atossa Foreground IP with a legal counsel of
Atossa’s sole choosing. Inventorship and authorship regarding Atossa Foreground IP shall be determined in accordance with
U.S. patent and copyright laws. Atossa shall provide Besins a reasonable and meaningful opportunity to review and comment on such
patent preparation, filing, prosecution and maintenance related to the Atossa Foreground IP and shall consider such input from
Besins. Besins shall reasonably assist Atossa and Atossa’s patent counsel, by consulting with Atossa’s patent counsel
regarding any Atossa Foreground IP and its preparation, filing, prosecution and maintenance; by providing technical and scientific
advice; and by executing all papers and documents reasonably required to effectuate this Section 3.2(a).ii.

 

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iii. Option to Continue
to Prosecute and Maintain Patents included in Besins IP.

 

In the event Besins
or its Affiliates or any of their respective successors in interest desires to cease prosecution and/or maintenance of any patents
or patent applications (“Besins Discontinued Patent”) within the Besins IP, it will promptly notify Atossa in
writing of its intent to do so. If such Besins Discontinued Patent is within Besins Core IP, Besins shall permit Atossa to continue
prosecution or maintenance of such Besins Discontinued Patent within Besins Core IP at Atossa’s sole expense. If such Besins
Discontinued Patent is within Besins Platform IP and if such Discontinued Patent is not licensed to a Third Party as of the date
Besins sends notification in accordance with this subsection, Besins shall permit Atossa to continue prosecution or maintenance
of such Besins Discontinued Patent within Besins Platform IP. If Atossa elects to continue prosecution or maintenance of any such
Besins Discontinued Patent, Besins shall execute such documents and perform such acts at Atossa’s sole expense as may be
reasonably necessary to permit Atossa to prosecute and maintain such Besins Discontinued Patent.

 

iv. Option to Continue to Prosecute
and Maintain patents included in Atossa Foreground IP

 

In the event Atossa
or its Affiliates or any of their respective successors in interest desires to cease prosecution and/or maintenance of any patents
or patent applications (“Atossa Discontinued Patent”) within the Atossa Foreground IP, it will promptly
notify Besins in writing of its intent to do so, and if such Discontinued Patent is not licensed to a Third Party as of the date
Atossa sends notification in accordance with this subsection, Atossa shall permit Besins to continue prosecution or maintenance
of such Atossa Discontinued Patent(s), at Besins’ sole expense. If Besins elects to continue prosecution or maintenance of
such Atossa Discontinued Patent(s), Atossa shall execute such documents and perform such acts at Besins’ sole expense as
may be reasonably necessary to permit Besins to prosecute and maintain such Atossa Discontinued Patent.

 

v. Notice of Patent
Events.

 

Starting from the Effective
Date of this Agreement, (i) Besins shall provide to Atossa semiannually a written update of any change in status of the patent
portfolio in Besins Core IP and Besins Platform IP (Exhibits C and D), and (ii) Atossa shall provide to Besins semiannually a written
update to the status of Atossa Foreground IP (Exhibit B).

 

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vi. Trademarks.

 

Atossa, at its sole
discretion, may elect to use Trademarks and trade dress licensed to it under Besins Core IP and Besins Platform IP, or to develop
and use trademarks and trade dress of its own selection for use with Afimoxifene Gel.

 

(b) Enforcement
and Defense of Intellectual Property. 

 

i. Notice. If
either Party becomes aware or reasonably believes that any Besins IP is being infringed in the Territory by a Third Party, or if
a Third Party claims that any Besins IP is invalid or unenforceable in the Territory, it shall immediately disclose to the other
Party in writing any such actual, threatened or suspected infringement of, or any action alleging invalidity or unenforceability
of, any Besins IP.

 

ii. Infringement
by Third Party.

 

a.Besins shall
have the first right, but not the obligation, to enforce and defend any Besins IP in the Territory at its sole cost, including,
without limitation, to sue and collect damages for infringement, including past infringement or misappropriation, occurring prior
to the Effective Date of this Agreement. Atossa shall have the first right, but not the obligation, to enforce any Atossa Background
IP, Atossa Foreground IP, and Besins Discontinued Patents (collectively “Atossa IP”), including, without limitation,
to sue and collect damages for infringement, including past infringement or misappropriation, and/or to defend against any Third
Party claim of invalidity or unenforceability of any Atossa IP.

 

b.During the Term, Besins shall continue
to have the right, but not the obligation, to enforce and defend any Besins IP, including any Atossa Discontinued Patents (each,
an “Action”).

 

(i) If the alleged
infringing activities are outside the Field or in a Terminated Country, then the right is exclusive to Besins, at Besins’
sole cost and expense, and Besins shall be entitled to retain any monetary recovery received by way of judgment or settlement or
any other amounts collected relating to the Action or settlement or termination thereof. Atossa agrees to assist Besins, at Besins’
expense, in any such Action, including by signing (or causing its Affiliates or personnel to sign) such documents as Besins shall
reasonably request and, if necessary for Besins to bring or maintain such Action, joining in the Action as a party at Besins’
sole expense.

 

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(ii) If the alleged
infringing activities are in the Field in the Territory, then Atossa shall have the right, but not the obligation, to participate
in such an Action at Atossa’s sole expense. If Atossa elects not to join in the Action, Atossa nevertheless agrees to assist
Besins, at Besins’ expense, in any such Action, including by signing (or causing its Affiliates or personnel to sign) such
documents as Besins shall reasonably request and, if necessary for Besins to bring or maintain such Action, joining in the Action
as a party at Besins’ sole expense, and Besins shall be entitled to retain any monetary recovery received by way of judgment
or settlement or any other amounts collected relating to the Action or settlement or termination thereof. If Atossa elects to join
the Action, then Besins and Atossa shall reasonably cooperate in such Action and the settlement or termination thereof, and each
Party shall be entitled to share any monetary recovery received by way of judgment or settlement or any other amounts collected
relating to the Action or settlement or termination thereof, to the extent such monetary recovery exceeds the Parties’ legal
fees and costs incurred in such enforcement or defensive Action.

 

(iii) If the alleged
infringing activities are in the Field in the Territory, and Besins notifies Atossa in writing of its intent not to take any measures
against the alleged infringing activities, or fails to take any action within 45 days of a written request from Atossa that it
do so, then Atossa shall have the right, but not the obligation, to do so at Atossa’s sole expense, and Atossa will retain
any monetary recovery received by way of judgment or settlement or any other amounts collected relating to the Action or settlement
or termination thereof. Besins agrees to assist Atossa, at Atossa’s expense, in any such Action, including by signing (or
causing its Affiliates or personnel to sign) such documents as Atossa shall reasonably request and, if necessary for Atossa to
bring or maintain such Action, joining in the Action as a party at Atossa’s sole expense.

 

iii. Third Party
Claims.

 

a. Notice. Each
Party shall immediately disclose to the other Party in writing any warning letter or other written notice of infringement or misappropriation
received by a Party, or any action, suit or proceeding brought against a Party alleging infringement of a patent or misappropriation
of intellectual property of any Third Party with regard to any aspect of the conduct by or for either Party pursuant to Development
and Commercialization activities, or with respect to Afimoxifene Gel under this Agreement (each, a “Third Party Action”).

 

b. Right to Defend.
Atossa shall have the first right, but not the obligation, to defend against any Third Party Action in the Territory, through counsel
of its choosing reasonably satisfactory to Besins. Besins shall have the right, but not the obligation, to participate, at its
own cost, in such an Action with counsel reasonably satisfactory to Atossa. If Atossa declines or fails to assert its intention
to defend such claim within sixty (60) days of receipt/sending of notice thereof, then Besins shall have the right, but not the
obligation, to defend such Third Party claim at its sole cost. If only one Party defends such a Third Party Action, the Party defending
the Action shall have the sole and exclusive right to select counsel for such Third Party Action.

 

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c. Consultation;
Settlement. If both Besins and Atossa elect to participate in the Action, the Parties shall consult with one another on all
material aspects of the defense of Third Party Actions. Each Party shall have a reasonable opportunity for meaningful participation
in decision-making and formulation of defense strategy. The Parties shall reasonably cooperate with each other in all such Third
Party Actions or proceedings, including in the settlement or termination thereof.

 

ARTICLE 4

Further Development, Regulatory Activities,
and Commercialization

 

		4.1	Responsibilities and Rights.

 

During the Term and
except as otherwise expressly provided herein, Atossa, at its sole discretion, will have the exclusive right and be responsible
for Developing and Commercializing Afimoxifene Gel in the Field in the Territory, filing applications for, and obtaining Regulatory
Approvals for Afimoxifene Gel in the Field throughout the Territory. Atossa shall exclusively oversee, monitor, and coordinate
all regulatory actions, communications and filings with and submissions to Regulatory Authorities, with respect to Afimoxifene
Gel in the Field in the Territory, unless otherwise determined by Atossa. Atossa shall have the sole right, and shall be exclusively
responsible, for corresponding and meeting with Regulatory Authorities with regard to Afimoxifene Gel in the Field in the Territory.
Atossa shall have the exclusive right to file for, request, obtain and maintain any regulatory exclusivity rights conferred or
granted by Regulatory Approval for Afimoxifene Gel and to conduct or prosecute any proceedings or actions to enforce such regulatory
exclusivity rights. Atossa shall provide non-proprietary Data that it determines is reasonably necessary to obtain any such approvals,
authorizations, permits or licenses. Upon sixty (60) business day prior written request by Besins, Atossa will provide Besins the
opportunity to review any Atossa IND. The Parties agree that Atossa, at its sole discretion, will select dose concentrations for
use of Afimoxifene Gel in the Field in the Territory.

 

Except as otherwise
expressly provided herein, Atossa shall have the sole discretion to, determine and manage its own commercial strategy to market,
promote and sell Afimoxifene Gel in the Field in the Territory.

 

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		4.2	Expansion of Field

 

Atossa may expand the
Field to include an Additional Indication for which Besins or its Affiliates or Sublicensees has not already started Development
or authorized a Third Party to start Development, upon sixty (60) business days’ prior written notice to Besins and upon
providing Besins with a Development Plan for the Additional Indication that shall supplement and become part of the Development
Plan disclosed in Exhibit E (see below). The following Milestone Payments by Atossa will be due:

 

IND Milestone: $5,000,000 for
the exclusive right to review, access, and reference a Besins IND for each Additional Indication.

 

Phase 3 Milestone: $20,000,000
when Atossa or its Affiliate or Sublicensee commences a Phase 3 clinical trial for each Additional Indication.

 

If Besins has started
Development in an Additional Indication, Atossa may nevertheless request to expand the Field to include the Additional Indication,
and Atossa may expand the Field to include the Additional Indication with Besins’ written consent and payment of the above
Milestone Payments.

 

Atossa or its Affiliate
or Sublicensee shall not initiate any Clinical Study for an Additional Indication without first expanding the Field as described
in this section.

 

		4.3	Development, Commercialization, Reversion of Rights.

 

(a) Development Plan.
During the Term of the Agreement, the Parties shall meet in person, by video conference or telephonically, approximately every
six months, to discuss the status of Development of Afimoxifene Gel under the Development Plan (the “Half-Yearly Meeting”).
Atossa shall provide Besins with an initial Development Plan which shall cover an eighteen (18) month period commencing
on the Effective Date and which shall become a part of this Agreement as Exhibit E. Atossa shall provide Besins with updated
Development Plan at each Half-Yearly Meeting, such updated Development Plan shall include Development plans for additional six
(6) months and such updated Development Plan shall become a part of Exhibit E and this Agreement. Thirty (30) days before
any Half-Yearly Meeting Atossa shall provide to Besins a written half-yearly status report, which shall be ratified at the Half-Yearly
Meeting, such ratification shall not be unreasonably withheld, denied or delayed. Atossa shall use Commercially Reasonable Efforts
to follow the Development Plan. Upon request by Besins in writing, Atossa within ninety (90) days of receiving such request will
provide Besins with copies of Atossa Data, Atossa Regulatory Information, Atossa Manufacturing Information, and Atossa Development
Records on the use of Afimoxifene Gel in the Field in the Territory.

 

(b) Atossa may, in
its sole discretion, stop the Development and/or Commercialization of Afimoxifene Gel for an Indication in the Field in the Territory,
as a whole or on a country-by-country basis, for any reason, upon sixty (60) business days’ prior written notice to Besins.
If Atossa elects to stop Developing or Commercializing Afimoxifene Gel for an Indication in the Field in the Territory, as a whole
or on a country-by-country basis, the rights and license granted to Atossa under Article 2 shall terminate as to that Indication
(a “Terminated Indication”) and/or country (a “Terminated Country”) and revert to Besins on the date of
receipt by Besins of such written notice.

 

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(c) Notwithstanding
anything to the contrary in this Agreement, Besins, in its sole discretion, may terminate the licenses granted under Sections
2.1(a) and (b) on an Indication-by-Indication or a country-by-country basis if (i) Atossa fails to Commercialize Afimoxifene
Gel for such Indication (a “Terminated Indication”) and/or in such country (a “Terminated Country”) in
the Territory within three (3) years of the First Commercial Sale of Afimoxifene Gel for use in such Indication anywhere in the
Territory (which failure to launch was not caused by Besins’ breach of its obligations hereunder or otherwise due to matters
outside of Atossa’s control) or (ii) the First Commercial Sale has not occurred five (5) years after the Effective Date (which
failure to launch was not caused by Besins’ breach of its obligations hereunder), and Besins notifies Atossa in writing that
such licenses are being terminated, and such licenses shall revert to Besins on the date of receipt by Atossa of such written notice.

 

(d) If Atossa fails
to accomplish any aspect of the Development Plan for an Indication or in a country within the Territory within 6 months of date
set forth in the Development Plan (which failure to accomplish was not caused by Besins’ breach of its obligations hereunder
and/or due to circumstances reasonably outside of Atossa’s control), then Besins shall send Atossa a written notice of such
defect and give Atossa a reasonable opportunity and time to cure such defect. In the event that Atossa fails to cure such defect,
Besins in its sole discretion may terminate the licenses granted under Sections 2.1(a) and (b) as to that Indication (a
“Terminated Indication”) and/or country (a “Terminated Country”), provided that Besins
notifies Atossa in writing that such licenses are being terminated. Such licenses shall revert to Besins on the date of receipt
by Atossa of such written notice.

 

(e) In the event that
any licenses granted under Sections 2.1(a) and (b) revert to Besins under Section 4.3(b), (c), or (d), all rights
and licenses granted by Atossa or its Affiliates to Atossa Affiliates, Atossa Sublicensees and any Third Party shall be terminated
for any Terminated Indication(s) and/or in any Terminated Country(ies), and Atossa (for itself and its Affiliates) shall grant
Besins and its Affiliates (i) irrevocable, perpetual, exclusive, royalty-free, fully paid, transferable license to continue the
Development and/or Commercialization of Afimoxifene Gel for any Terminated Indication(s) and/or in any Terminated Country(ies),
and (ii) irrevocable, perpetual, exclusive, royalty-free, fully paid license to rights existing as of the date of termination under
Sections 4.3(b), (c), and (d) under Atossa Foreground IP, Atossa Know-How, Atossa Manufacturing Information, Atossa Data,
Atossa Development Records, Atossa Regulatory Information, and Atossa Regulatory Approvals to Develop and Commercialize Afimoxifene
Gel for any Terminated Indication(s) and/or in any Terminated Country(ies).

 

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		4.4	Obligations of Besins.

 

The Parties agree that
an important purpose of this Agreement is to increase patient access to Afimoxifene Gel in the Field in the Territory. Besins agrees
that Atossa shall have the exclusive right to make decisions in all matters regarding Development, Regulatory Approval and Commercialization
of Afimoxifene Gel in the Field in the Territory.

 

Besins shall timely
file all appropriate and necessary notices, documents, licenses and registrations with all Regulatory Authorities within the Territory
(including, without limitation, Food and Drug Administration (FDA), European Medicines Agency (EMEA), The National Institute for
Health and Care Excellence (NICE), granting Atossa the authorization to review, access, and reference Besins Regulatory Information
solely with respect to Afimoxifene Gel in the Field in the Territory. Besins will furnish, at its sole cost, copies of IND 59,081
and IND 66,076 within ten (10) days of the Effective Date to permit Atossa to engage in Development and Commercialization activities
and obtain Regulatory Approval under this Agreement. Besins will promptly provide Atossa with all Besins Regulatory Information,
Besins Developmental Records, Besins Manufacturing Information, Besins Know-How, and such other information as necessary to accomplish
Development and Commercialization of Afimoxifene Gel under this Agreement. Besins will promptly notify and disclose in writing
any past, present and future violations of applicable laws and regulations, including regulatory compliance warning letters related
to any Afimoxifene Gel. The obligation to disclose regulatory compliance violations regarding Afimoxifene Gel shall survive the
expiration or termination of this Agreement.

 

Besins shall cooperate
and use Commercially Reasonable Efforts to assist Atossa and/or any Sublicensee in procuring supply of the API for use in the Field
in the Territory. In the event Atossa supplies the APIto Besins, Besins shall manufacture or have manufactured Afimoxifene Gel
for Atossa at a cGMP quality that is at least the minimum acceptable to Regulatory Authorities in amounts sufficient to conduct
at least Phase II clinical trials according to the Development Plan. Besins shall further cooperate and assist with technology
transfer of all Manufacturing Information, packaging and labeling information to Atossa and/or Atossa Supplier or Sublicensee in
order for Atossa to manufacture Afimoxifene Gel and perform Development and Commercialization activities under this Agreement and
prepare all filings and submissions necessary to obtain Regulatory Approval of Afimoxifene Gel. Besins will provide Atossa any
exclusivity or other regulatory exclusivity waivers as may be required by the applicable Regulatory Authority in order to use,
make, have made manufacture, have manufactured, sell, offer for sale, import, have imported, export, have exported, distribute,
or otherwise transfer Afimoxifene Gel in the Territory for use in the Field. Besins shall cooperate with Atossa to provide all
other commercially reasonable assistance reasonably requested by Atossa, its Affiliates and Sublicensees in order to enable compliance
with Atossa’s obligations under Section 4.1.

 

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ARTICLE 5

Financial Consideration

 

 

		5.1	Intellectual Property Royalties to Besins.

 

(a) Royalties.

 

i. Know-How and
Regulatory Information Royalties

 

As consideration for
the licenses granted to Atossa and its Affiliates under this Agreement as of the Effective Date under Besins Know-How and Regulatory
Information, beginning on the date of a First Commercial Sale of Afimoxifene Gel in the Field Atossa shall pay to Besins royalties
equal to 8% (eight percent) of Net Sales of Afimoxifene Gel for use in the Field, on a country-by-country basis in the Territory.

 

ii. Patent Royalties

 

In addition to the
Know-How and Regulatory Information Royalties, as consideration for the licenses granted to Atossa and its Affiliates under this
Agreement under Besins patents, beginning on the date of a First Commercial Sale of Afimoxifene Gel in the Field, Atossa shall
pay to Besins additional royalties equal to 1% (one percent) of Net Sales of Afimoxifene Gel for use in the Field in countries
with a Valid Claim, on a country-by-country basis in the Territory, subject to the following adjustments:

 

If pursuant to Section
3.2.iii, Atossa elects to prosecute and maintain Besins Discontinued Patents, or if Besins elects not to enforce and defend
any Besins Discontinued Patents in the Territory during the Term and Atossa elects to enforce and defend such Besins Discontinued
Patents, royalty payments due to Besins under this Section 5.1(a)ii will be reduced by the costs, including attorney fees,
incurred by Atossa of such prosecution, maintenance, enforcement and defense of such Besins Discontinued Patents. For clarity,
adjustments under this Section 5.1(a)ii shall not exceed 1% (one percent) of Net Sales of Afimoxifene Gel for use in the
Field in countries with a Valid Claim, on a country-by-country basis in the Territory.

 

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(b) Payment.
All such royalty payments shall be paid semi-annually, within sixty (60) days after close of each six month period as provided
below. Royalty payments shall be paid in US Dollars. With regards to sales in currencies other than US Dollars, conversion from
local currency into US Dollars shall be the rate of exchange of the local currency to the US Dollar on the last day of the applicable
6-month period, as reported in The Wall Street Journal.

 

(c) Late Payments.
Late royalty payments shall incur interest at the rate equal to the one percent (1.0%) per month, calculated from the date such
payments were originally due.

 

(d) Mode of Payment:
Payments will be made by wire transfer, and shall be sent to an account specified in writing by Besins.

 

(e) Records.
For the purpose of computing royalties due to Besins hereunder, the year shall be divided into two parts ending on June 30 and
December 31. Not later than sixty (60) days after each June 30 and December 31 in each calendar year during the Term, Atossa shall
submit to Besins a full and detailed report of royalty payments due to Besins under the terms of this Agreement for the preceding
half year (hereinafter the “Half-Year Report”), setting forth the Net Sales upon which such royalties are computed.
If no royalty payments are due, a statement shall be sent to Besins stating such fact. Payment of the full amount of any royalty
payments due to Besins for the half year represented in any Half Year Report shall accompany each such Half-Year Report. Atossa
shall keep for a period of at least three (3) years after the date of entry, full, accurate and complete books and records consistent
with sound business and accounting practices and in such form and in such detail as to enable the determination of the royalty
payment amounts due to Besins pursuant to the terms of this Agreement.

 

(f) Audit. Upon
at least twenty (20) business days advance written notice and during Atossa’s regular business hours, Besins’ authorized
representatives shall have the right to inspect the books of accounts and records of Atossa insofar as they relate to the sale
of Afimoxifene Gel, or performance of Atossa’s, its Affiliates, or any of their Sublicensees’ obligations hereunder,
in order to ascertain or verify the amount of royalty payments due to Besins hereunder and the accuracy of the information provided
to Besins in the Half-Year Reports. Such audits shall be conducted during normal business hours and shall not unreasonably interfere
with Atossa’s conduct of its business. Each such audit shall be at Besins’ expense unless a particular audit reveals
an underpayment of greater than five percent (5%) of the amount that should have been paid to Besins for the period audited, in
which case Atossa shall bear the reasonable expense of such audit. Besins will direct its representative to provide a copy of the
audit report to Atossa. If any such audit reveals any inaccuracy in any statement, the necessary adjustments in such statements
and the payments thereof will be promptly made and shall bear interest calculated at the late payment rate identified in Section
5.1(c) from the date the underpayment was made until paid. All audit rights shall survive the termination of this Agreement
in full for a period of two (2) years (except with respect to audit rights as to any taxes or government surcharges which shall
survive for the applicable statute of limitations, including any extensions thereof).

 

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(g) Challenge.
Besins shall have 60 days from receipt or acceptance by Besins of any Half-Year Report or corresponding royalty payment to challenge
the validity or accuracy of such report or payment. Notwithstanding the foregoing, in the event any audit conducted pursuant to
Section 5.1 reveals any underpayment for a prior period, nothing in this Section 5.1(g) shall serve to limit any
rights of Besins relating to such underpayment.

 

		5.2	Taxes.

 

In the event that Atossa
determines it is required by any Applicable Law to withhold any taxes from any payment made pursuant to this Agreement (“Withholding
Taxes”), Atossa shall promptly provide written notice of the same to Besins and (i) withhold such Withholding Taxes from
such payment; (ii) remit such Withholding Taxes to the appropriate governmental authority; (iii) pay to Besins the amount due as
set forth in this Agreement, reduced by the amount of Withholding Taxes withheld and remitted to the appropriate governmental authority;
and (iv) obtain and furnish to Besins a Withholding Tax receipt or other evidence of such remittance from the appropriate governmental
authority. Notwithstanding the foregoing, if Besins is entitled under any applicable tax treaty to a reduction of rate of, or the
elimination of, applicable Withholding Tax, it may deliver to Atossa or the appropriate governmental authority (with the assistance
of Atossa to the extent that this is reasonably required and is expressly requested in writing) the prescribed forms necessary
to reduce the applicable rate of withholding or to relieve Atossa of its obligation to withhold tax, and Atossa shall apply the
reduced rate of withholding, or dispense with withholding, as the case may be, provided that Atossa has received evidence
of Besins’ delivery of all applicable forms (and, if necessary, its receipt of appropriate governmental authorization).

 

		5.3	Other Taxes.

 

Except as provided
in Section 5.2, all taxes or duties in connection with payments made by Atossa shall be borne by Besins.

  

ARTICLE 6

Confidentiality and Publications

 

		6.1	Confidential Information.

 

The Receiving Party
will not use any Confidential Information of a Disclosing Party except for the purposes of performing its respective obligations
under this Agreement. Each Receiving Party will maintain Confidential Information of the other Party in strict confidence and will
use a standard of care, including procedures to prevent unauthorized disclosure or use of the other Party’s Confidential
Information and to prevent it from becoming disclosed or being accessed by unauthorized persons, that is at least as stringent
as those used to protect Confidential Information of Receiving Party’s own, but which shall in no event be less than a reasonable
degree of care. The Receiving Party shall immediately advise the Disclosing Party of any unauthorized disclosure, loss, or use
of Confidential Information of which Receiving Party becomes aware. Upon any termination or expiration of this Agreement, each
Receiving Party agrees that all Confidential Information of the Disclosing Party, whether in written, graphic, or other tangible
form, shall be returned to the Disclosing Party upon written request or destroyed at Disclosing Party’s instruction, and
a certificate of destruction duly signed by an authorized person on behalf of Receiving Party will be provided to the Disclosing
Party. A single archival copy may be retained by the Receiving Party’s legal department or counsel to meet Receiving Party’s
obligations under this Agreement and any requirements of Applicable Law. A deletion of electronic files containing or constituting
Confidential Information shall be considered to be the destruction or return of such Confidential Information for purposes of this
Agreement, provided that the deleted files must not be retrievable other than through extraordinary data salvage methods.

 

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		6.2	Restrictions.

 

Unless required by
Applicable Law, the Receiving Party will not to disclose any Confidential Information of the Disclosing Party to any Third Party
without the prior written consent of the Disclosing Party, except to its employees, agents, consultants, directors and officers
that have a need to know such information to effectuate the purpose of this Agreement (each, a “Representative”);
provided, that any such Representative shall be informed of the confidentiality provisions of this Agreement and shall be
bound by a confidentiality agreement with the Receiving Party containing terms at least as restrictive as those contained in this
Agreement and including post-employment confidentiality survival terms consistent with Section 6.1 of this Agreement (the
"Representative Agreement"). The Receiving Party shall be liable for the actions or inactions of its Representatives
that would constitute a breach of Article 6 of this Agreement were such Representatives a party hereto.

 

		6.4	Exclusions.

 

Notwithstanding anything
herein to the contrary, Confidential Information will not include information that: (i) is now or subsequently becomes generally
available to the public through no act or omission of the Receiving Party or its Representatives; (ii) the Receiving Party can
demonstrate in its contemporaneous written records to have had lawfully in its possession prior to disclosure to it by or on behalf
of the Disclosing Party; (iii) is independently developed by the Receiving Party or individuals obligated to assign to the Receiving
Party without use, directly or indirectly, of any Confidential Information of the Disclosing Party as evidenced by its contemporaneous
written records; (iv) the Receiving Party lawfully obtains without obligation of confidentiality from a Third Party who has the
right to disclose; or (v) is required by law or regulation to be disclosed, provided that the Receiving Party has provided
prompt, advance written notice to the Disclosing Party so as to enable the Disclosing Party to seek a protective order or otherwise
seek to prevent or limit disclosure of such Confidential Information, and the Receiving Party will reasonably cooperate in such
efforts by the Disclosing Party; or (vi) pursuant to Section 6.9 of this Agreement; provided that if any disclosure
must be made, the Receiving Party will only disclose Confidential Information to the extent it is required to be disclosed.

 

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		6.5	Third Party Information.

 

Further, for avoidance
of doubt, Confidential Information of the Disclosing Party shall include Confidential Information received by the Disclosing Party
from a Third Party. Prior to disclosure of such Third Party Confidential Information to the Receiving Party, the Disclosing Party
shall determine that it has the right to make such disclosure, and will use its Commercially Reasonable Efforts to advise the Receiving
Party that the disclosure includes Third Party Confidential Information.

 

		6.6	Affiliates and Sublicensees.

 

This Article 6
and the obligations herein shall apply to each Party and its officers, directors, employees, subcontractors, agents, Affiliates,
Representatives, and Sublicensees. Each Receiving Party shall be responsible for causing such persons to comply with the obligations
set forth in this Article 6.

 

		6.7	Term.

 

A Receiving Party’s
obligations under this Article 6 will continue for a period of seven (7) years following expiration or termination of this
Agreement, or, with respect to Trade Secrets, for such longer period as may be provided by applicable law.

 

		6.8	Relief.

 

Each Receiving Party
agrees that any unauthorized disclosure, loss or use of Confidential Information may cause irreparable harm entitling the Disclosing
Party to seek injunctive relief, in addition to any other remedies available to it at law or in equity.

 

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		6.9	Public Announcements.

 

Except as required
by Applicable Law, the material terms of this Agreement will be considered Confidential Information of both Parties. Notwithstanding
the foregoing sentence, (a) either Party may disclose such terms as are required, in the reasonable judgment of such Party and
its counsel, to be disclosed in its publicly-filed financial statements or other public statements, pursuant to Applicable Laws,
regulations and stock exchange rules (e.g., the rules of the U.S. Securities and Exchange Commission, NASDAQ, NYSE or any
other stock exchange on which securities issued by either Party may be listed); and (b) either Party shall have the further right
to disclose the material financial terms of this Agreement under a confidentiality obligation no less protective than those set
forth in this Agreement, to any potential acquirer, licensee, lender, merger partner or potential providers of financing and their
respective advisors. Neither Party shall make any other statement to the public regarding the execution and/or any other aspect
of the subject matter of this Agreement without the prior review and consent of the other Party, except: (i) where a Party reasonably
believes disclosure is required under Applicable Laws, (ii) the Parties shall have the right to announce the terms and existence
of this Agreement in a press release at its execution, and (ii) either Party may use the text of a public statement previously
approved by the other Party for disclosure. Attached as Exhibit F is the form of press release mutually agreed to by the
Parties that either Party may release to announce the entry into this Agreement.

 

		6.10	Publications.

 

Atossa shall have the
exclusive right to publish the Atossa Data, Atossa Development Record, Atossa Background IP, and Atossa Foreground IP at its sole
discretion in the Territory. For avoidance of doubt, Besins shall have no right of publication of Atossa Data, Atossa Development
Records, Atossa Background IP, Atossa Foreground IP, Atossa Know-How, and Atossa Manufacturing Information under this Agreement
without Atossa’s prior written consent, and Atossa shall have no right of publication of Besins Core IP or Besins Platform
IP without Besins’ prior written consent, which shall not be unreasonably withheld, conditioned, or delayed.

 

ARTICLE 7

Representations and Warranties

 

		7.1	Authority.

 

Each Party represents
and warrants to the other Party that, as of the Effective Date:

 

(a) it is a corporation
duly organized, validly existing, and in good standing under the laws of the jurisdiction wherein it is organized;

 

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(b) it has the full
power and authority under the laws of the state or country of its incorporation to enter into this Agreement and carry out its
provisions, that the person executing this Agreement on its behalf has been authorized to do so by all requisite corporate action;

 

(c) that its execution
of and performance under this Agreement will not violate or breach any obligation or restriction (including, without limitation,
any confidentiality or non-competition obligation or any exclusivity restriction) to which such Party is legally bound by contract,
judicial order or otherwise; and no notice is required to or from any Third Party in connection with the transactions contemplated
by this Agreement; and

 

(d) upon full execution
of this Agreement by the Parties hereto, this Agreement is a legal and valid obligation of the Party, binding upon the Party, and
enforceable against the Party in accordance with the terms of this Agreement.

 

		7.2	Besins Representations and Warranties.

 

As of the Effective
Date and throughout the Term, Besins represents, warrants, and covenants that to the best of its knowledge:

 

(a) its officers, directors,
employees, subcontractors, agents, and Affiliates and any person who is performing or has performed under this Agreement is not
under investigation by: (i) the FDA for debarment or disqualification action or is presently not debarred or disqualified pursuant
to the Generic Drug Enforcement Act of 1992 (21 U.S.C. 301 et seq.); or (ii) any other Regulatory Authority for debarment or disqualification
action or is not presently debarred or disqualified by any other Regulatory Authority;

 

(b) it will provide
a written certification, if requested by Atossa, to the representation and warranty of Section 7.2.a, and to promptly notify
Atossa if any person who has performed activities under this Agreement is debarred or disqualified by the FDA or any other Regulatory
Authority, but no later than ten (10) days after such disbarment or disqualification;

 

(c) there is no action,
suit, claim, investigation or proceeding pending or, to the best of its knowledge, threatened in writing against it that, if adversely
decided, would be likely to adversely affect Besins’ ability to enter into this Agreement or perform its obligations hereunder;

 

(d) there is no action,
claim, demand, suit, proceeding, arbitration, grievance, citation, summons or subpoena served upon it and it has not received any
written notice of any ongoing inquiry, investigation or threat of any nature, civil, criminal, regulatory or otherwise, in law
or in equity, relating to the activities contemplated and rights granted under this Agreement;

 

(e) it is not a party
to any agreement that would prevent it from fulfilling its obligations under this Agreement;

 

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(f) there are no Encumbrances
on Besins IP, Besins Manufacturing Information, INDs, Besins Regulatory Information, and Besins Development Record and it owns
or upon their creation will own the rights and has or will have the right and power to grant the license rights granted to Atossa
under this Agreement;

 

(g) its performance
under this Agreement does not and will not violate any Intellectual Property or proprietary rights of any Third Party, nor has
any claim of such infringement been threatened or asserted; and

 

(h) it has provided
Atossa with all material information responsive to Atossa’s diligence inquiries and such information in true and correct
and does not contain any material omissions.

 

		7.3	FCPA.

 

(a) Each of the Parties
warrants that it shall not make any payment, either directly or indirectly, of money or other assets, including but not limited
to the compensation Parties derives from this Agreement, or provide any gifts, entertainment or other thing of value (hereinafter
collectively referred as a “Payment”) to government or political party officials, employees of state-owned entities,
specifically including employees of state-owned medical/clinical facilities, officials of international organizations, candidates
for public office, or representatives of other businesses or persons acting on behalf of any of the foregoing (collectively “Officials”)
where such Payment would constitute violation of any law, including the U.S. Foreign Corrupt Practices Act of 1977, 15 U.S.C. §§
78dd-1, et seq. (“FCPA”). In addition, regardless of legality, the Parties shall make no Payment either directly or
indirectly to Officials if such Payment is for the purpose of influencing decisions or actions with respect to the subject matter
of this Agreement or any other aspect of its business.

 

(b) Each Party warrants
that it is familiar with the restrictions of all applicable anti-bribery/anti-corruption laws, including the FCPA, and that such
Party shall provide appropriate training and education to anyone performing work on such Party’s behalf under this Agreement
on all such laws, including the FCPA.

 

(c) Each Party shall
report to the other in writing any suspected or actual violation of any anti-bribery/anti-corruption laws relating to this agreement
immediately.

 

		7.4	Atossa Representations and Warranties.

 

As of the Effective
Date, Atossa represents, warrants, and agrees that to the best of its knowledge:

 

(a)   
its officers, directors, employees, subcontractors, agents, and Affiliates and any person who is performing or has performed under
this Agreement is not under investigation by: (i) the FDA for debarment or disqualification action or is presently not debarred
or disqualified pursuant to the Generic Drug Enforcement Act of 1992 (21 U.S.C. 301 et seq.); or (ii) any other Regulatory Authority
for debarment or disqualification action or is not presently debarred or disqualified by any other Regulatory Authority;

 

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(b)   it
will provide a written certification, if requested by Besins, to the representation and warranty of Section 7.4.a, and to
promptly notify Besins if any person who has performed activities under this Agreement is debarred or disqualified by the FDA or
any other Regulatory Authority, but no later than ten (10) days after such disbarment or disqualification;

 

(c)   
its officers, directors, employees, subcontractors, agents, and Affiliates shall comply with all Applicable Law, during the Term
of and in the performance of this Agreement, and that Atossa’s actions in establishing and performing this Agreement have
been and will be consistent with ethical business practices and without the influence of any association with an Besins employee,
officer or director that would amount to a conflict of interest;

 

(d)   there
is no action, suit, claim, demand, or proceeding pending or, to the best of its knowledge, threatened in writing against it that,
if adversely decided, would be likely to adversely affect Atossa’s ability to enter into this Agreement or perform its obligations
hereunder; and there is no action, claim, demand, suit, proceeding, arbitration, grievance, citation, summons or subpoena served
upon it and it has not received any written notice of any ongoing inquiry, investigation or threat of any nature, civil, criminal,
regulatory or otherwise, in law or in equity, relating to the activities contemplated and rights granted under this Agreement;
and it is not a party to any agreement that would prevent it from fulfilling its obligations under this Agreement there are no
Encumbrances on Atossa Know-How, Atossa Data, Atossa Background IP, Atossa Development Record, and Atossa Foreground IP, Atossa
Manufacturing Information, and Atossa Regulatory Information and it owns or upon their creation will own the rights and has or
will have the right and power to grant the license rights granted to Besins under this Agreement; and

 

(e)   
its performance under this Agreement does not and will not violate any Intellectual Property or proprietary rights of any Third
Party, nor has any claim of such infringement been threatened or asserted.

 

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ARTICLE 8

Term and Termination

 

		8.1	Expiration.

 

This Agreement will
commence on the Effective Date and, unless otherwise earlier terminated pursuant to Section 8.2, will expire on a country-by-country
basis, fifteen (15) years after the First Commercial Sale of Afimoxifene Gel in the Field in the applicable country in the Territory.

 

		8.2	Termination.

 

(a) Mutual Termination.
The Parties may terminate this Agreement at any time upon their mutual written agreement.

 

(b) Unilateral Termination.
Besins may unilaterally terminate this Agreement in accordance with Sections 4.3(c) and (d). Atossa may unilaterally terminate
this Agreement in accordance with Section 4.3(b).

 

(c) Breach.
Either Party, in its sole discretion, may terminate this Agreement if the other Party has materially breached this Agreement upon
delivery of a sixty (60) days advance written notice to the other Party describing the breach and demanding its cure, and if the
breaching Party has not cured the breach within the sixty (60) day period following receipt of such written notice of breach.

 

(d) Bankruptcy.
Either Party, in its sole discretion, may terminate this Agreement, effective immediately, upon written notice to the other Party
upon: (i) the making by the other Party of an assignment for the benefit of creditors; (ii) the filing by the other Party of a
voluntary petition in bankruptcy; (iii) the failure by the other Party to dismiss, within ninety (90) days of filing, a proceeding
in bankruptcy against the other Party; (iv) appointment of a trustee or receiver (or similar official) of all or a substantial
part of the property of the other Party under bankruptcy, insolvency or receivership laws; or (v) assumption of this Agreement
by or on behalf of the other Party in any bankruptcy, insolvency or receivership proceeding.

 

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		8.3	Effect of Expiration or Termination.

 

(a) In the event of
expiration or termination of this Agreement, (i) Atossa shall remain the sole and exclusive owner of Atossa IP, Atossa Know-How,
Atossa Regulatory Information, Atossa Development Record, and Atossa Manufacturing Information, subject to licenses granted under
Sections 2.2, 4.3(e) and 8.3(c), and (ii) Besins shall remain the sole and exclusive owner of Besins IP, Besins Regulatory
Information, Besins Manufacturing Information, and Besins Development Record, subject to the licensed rights under Section 8.3(b).

 

(b) Non-exclusive
License to Atossa. Upon expiration of this entire Agreement under Section 8.1 (but not termination under Section
8.2), and to the extent not terminated under Section 4.3, the exclusive royalty-bearing right and license granted to
Atossa under Section 2.1(a) and (b) of this Agreement shall be converted to an irrevocable, perpetual, world-wide, royalty
free, fully paid-up, non-exclusive, transferable right and license in the Field in the Territory.

 

(c) Non-exclusive
License to Besins. Upon expiration of this entire Agreement under Section 8.1 (but not termination under Section 8.2),
and to the extent not terminated under Section 4.3, Atossa hereby grants to Besins and its Affiliates an irrevocable, perpetual,
worldwide, non-exclusive right and license under Atossa Foreground IP to Develop and Commercialize Afimoxifene Gel in the Field
in the Territory. As consideration for the license granted in this Section 8.3(c), Besins shall pay to Atossa royalties
equal to 4% (four percent) of Besins Nets Sales in the Field in any country of the Territory with a Valid Claim, on a country-by-country
basis. “Besins Nets Sales” means the gross revenue received by Besins, its Affiliates, their respective Sublicensees
and Besins Third Party Resellers for the sale of Afimoxifene Gel to Third Parties other than Atossa and its Affiliates and Sublicensees
(whether end-users, wholesalers or otherwise) in an arm’s-length transaction, less the amount of the following deductions:
(i) normal and customary trade, cash and quantity discounts actually given, credits, price adjustments or allowances for damaged
products, returns or rejections of products, and allowance or rebates for retroactive price reductions; (ii) chargeback payments
and rebates (or the equivalent thereof), if any, granted to group purchasing organizations, managed health care organizations or
to federal, state/provincial, local and other governments, including their agencies, or to trade customers, wholesalers or other
distributors; (iii) freight, shipping insurance and other transportation expenses directly related to shipments or deliveries of
Afimoxifene Gel (if actually borne by Besins, its Affiliates or Sublicenses without reimbursement from any Third Party); (iv) sales
taxes, value-added taxes, excise taxes, tariffs and duties of importation, and other taxes and any other similar government charges
actually borne by Besins, its Affiliates or Sublicensees in connection with the sale or delivery of Afimoxifene Gel without reimbursement
from any Third Party (but not including taxes assessed against the income derived from such sale); and (v) provisions for actual
uncollectible accounts determined in accordance with U.S. generally accepted accounting principles, International Financial Reporting
Standards, or such other accounting practices as Besins or its Affiliates or Sublicensees may, at their sole discretion, adopt,
as consistently applied by Besins, its Affiliates, or Sublicensees (as applicable).

 

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(d) Accrued Obligation.
Expiration or termination of this Agreement for any reason will not release either Party from any liability which has already accrued
to the other Party or which is attributable to any event occurring or failing to occur during the Term of this Agreement prior
to such expiration or termination.

 

(e) Survival.
As between the Parties, the rights and obligations of Atossa and Besins which by intent or meaning have validity beyond expiration
or termination of this Agreement as set forth above, including, but not limited to, rights with respect to confidentiality, indemnification
and liability limitations, shall survive the termination or expiration of this Agreement.

 

(f) Termination of
the entire Agreement under Section 8.2 by either Party terminates all rights and licenses granted by such Party and its
Affiliates to its Affiliates, Sublicensees and any Third Party. Termination of this Agreement by Atossa shall automatically terminate
any and all sublicenses given by Atossa that grant to any Third Party any right under any Besins Intellectual Property.

 

(g) Remedies in
Addition. The termination provisions of this Article 8 will not be exclusive, but rather will be in addition to any
rights or remedies at law or in equity, or under this Agreement.

 

ARTICLE 9

Indemnification

 

		9.1	Generally.

 

Each Party specifically
reserves any common law right of indemnity and/or contribution which such Party may have against the other.

 

		9.2	Indemnification of Atossa.

 

Besins shall indemnify,
defend and hold Atossa, its officers, directors, employees, subcontractors, agents and Affiliates (“Atossa Indemnitees”),
harmless from and against any and all liabilities, obligations, claims, demands, judgments, losses, deficiencies, costs, damages,
expenses, fines, royalties, governmental penalties or punitive damages, interest, settlement amounts, awards, and judgments, (including
reasonable, out-of-pocket attorneys’, consultants’ and other professional fees and disbursements) (collectively, “Losses”)
sustained by the Atossa Indemnitees arising from or out of any Third Party action, claim, demand, injunction, investigation, inquiry,
proceeding, regulatory action, request or suit (collectively, “Claim(s)”) related to:

 

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(a) Besins’,
its officers’, directors’, employees’, subcontractors’, agents’ or Affiliates’: (i) breach
of any of its representations, warranties, agreements, covenants or obligations contained in or made pursuant to this Agreement;
(ii) performance of Development under this Agreement by any of the Besins’ Indemnitees; (iii) acts or omissions in performance
by any of the Besins’ Indemnitees of this Agreement; (iv) failure by any of the Besins’ Indemnitees to comply with
Applicable Law; (v) Development, manufacturing or other activities related to Afimoxifene Gel prior to the Effective Date and any
commercialization of Afimoxifene Gel by any of the Besins’ Indemnitees prior to the Effective Date, and (vi) negligence,
gross negligence or willful misconduct of any of Besins’ Indemnities, except in each case, to the extent such Losses arise
from the gross negligence or willful misconduct of the Atossa; or a material breach of this Agreement by Atossa, which is not timely
cured.

 

(b) Infringement, misappropriation
or encroachment of any Third Party’s personal, contractual or property rights by any of the Besins’ Indemnitees.

 

		9.3	Indemnification of Besins.

 

Atossa shall indemnify,
defend and hold Besins, its officers, directors, employees, subcontractors, agents or Affiliates (“Besins Indemnitees”)
harmless from and against any and all Losses sustained by the Besins Indemnitees arising from or out of any Third Party Claims
related to:

 

(a)
Atossa’s, its officers’, directors’, employees’, subcontractors’, agents’, or Affiliates’:
(i) breach of any of its representations, warranties, agreements, covenants or obligations contained in or made pursuant to this
Agreement; (ii) performance of Development under this Agreement by any of the Atossa Indemnitees; (iii) acts or omissions in performance
of this Agreement by any of the Atossa Indemnitees; (iv) failure
by any of the Atossa Indemnitees to comply with Applicable Law; (v) Development, manufacturing or other activities related to Afimoxifene
Gel following the Effective Date and commercialization of Afimoxifene Gel by any of the Atossa Indemnitees; and (vi) negligence,
gross negligence or willful misconduct of any of the Atossa Indemnities, except in each case, to the extent such Losses arise from
the gross negligence or willful misconduct of the Besins or a material breach of this Agreement by Besins, which is not timely
cured; and 

 

(b) Infringement, misappropriation
or encroachment of any Third Party’s personal, contractual or property rights by any of the Atossa’s Indemnitees.

 

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		9.4	Notice; Settlement.

 

Each Party will promptly
notify the other Party of any claim or liability for which indemnification is sought upon becoming aware thereof, provided
that any delay or failure to give such notice will not relieve the indemnifying Party of its obligations hereunder except to the
extent that the indemnifying Party is actually and materially prejudiced by such delay or failure. The Atossa Indemnitee(s) and
Besins Indemnitees may respectively each, at their sole discretion and expense, participate and appear with the indemnifying Party
in the defense of any Claim conducted by the indemnifying Party. The indemnifying Party may not settle any Claim, and no Party
shall be responsible for or be bound by any settlement that imposes an obligation on it, without the prior written consent of the
other Party, which consent shall not be unreasonably withheld, conditioned or delayed. Each indemnified Party shall cooperate with
and provide to the other all information and assistance which the other Party may reasonably request in connection with any Claim
entitling any Party to indemnification hereunder.

 

		9.5	No Action.

 

If the indemnifying
Party does not acknowledge its indemnification obligation hereunder with respect to a Claim and/or elects not to defend such Claim,
the indemnified Party shall have the right, but not the obligation, to defend and settle such Claim until such time as the indemnifying
Party acknowledges in writing its indemnification obligation hereunder with respect to such Claim and/or elects in writing to defend
and settle such Claim in accordance with the indemnification provisions of this Article 9.

  

ARTICLE 10

Limitation of Liability and Insurance

 

		10.1	Limitation of Liability.

 

Except for the Parties’
obligations of Confidentiality set forth in Article 6 and the Parties’ obligations of Indemnification pursuant to
Article 10, IN NO EVENT SHALL EITHER PARTY (INCLUDING THE BESINS INDEMNITEES OR ATOSSA INDEMNITEES, AS APPLICABLE) OR ANY
OF ITS AFFILIATES BE LIABLE TO THE OTHER PARTY (INCLUDING THE BESINS INDEMNITEES OR ATOSSA INDEMNITEES, AS APPLICABLE) OR ANY OF
ITS AFFILIATES FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, NEGLIGENCE,
STRICT LIABILITY OR OTHERWISE ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY BREACH THEREOF, EXCEPT TO THE EXTENT THAT ANY
SUCH DAMAGES ARE PAYABLE TO A THIRD PARTY AS PART OF INDEMNIFICATION OF A THIRD PARTY CLAIM.

 

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		10.2	Insurance - Minimum Requirements.

 

(a) Except as stated
in Section 10.2.b below, from the Effective Date and for so long as Atossa is conducting the Development and Commercialization
of Afimoxifene Gel hereunder, Atossa will, at its own cost, procure and continue in effect comprehensive general liability insurance
that includes product liability coverage and coverage at the Commercialization stage for claims related to the Development and
Commercialization of Afimoxifene Gel, with limits of not less than one million dollars ($1,000,000.00) per occurrence for death
or bodily injury and not less than three million dollars ($3,000,000.00) in aggregate.

 

(b) If Besins receives
a license pursuant to Section 5.2 hereto, during the Term and for five years after expiration or termination of this Agreement,
Besins will, at its own cost, procure and continue in effect comprehensive general liability insurance that includes product liability
coverage at the Commercialization stage and coverage for claims related to the Development and Commercialization of Afimoxifene
Gel, with limits of not less than one million dollars ($1,000,000.00) per occurrence for death or bodily injury and not less than
three million dollars ($3,000,000.00) in aggregate.

 

(c) Notice.
Each Party shall provide evidence of such insurance upon written request by the other Party. Each Party shall notify the other
Party in writing at least thirty (30) days prior to any cancellation, reduction in coverage or non-renewal of such policy.

 

(d) Non-limiting.
It is understood that this insurance shall not be construed as limiting either Party’s indemnification obligations under
this Agreement.

  

ARTICLE 11

Dispute Resolution

 

		11.1	General.

 

Any occurrence of any
breach, controversy, claim, default, or dispute relating to, arising out of or in any way connected to any provision or performance
of this Agreement between the Parties (“Dispute”) shall be discussed in good faith by the Parties in an effort to resolve
the Dispute.

 

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		11.2	Officers.

 

If a Dispute cannot
be resolved within thirty (30) days pursuant to discussions conducted in accordance with Section 11.1, either Party may,
by written notice to the other Party, have such Dispute referred to the EVP of Research & Development for Besins and to the
Chief Executive Officer at Atossa for resolution in which case the Parties shall cause the EVP of Research & Development for
Besins and the Chief Executive Officer at Atossa to meet (in person or telephonically) during the following thirty (30) day period
to discuss resolution of the Dispute.

 

		11.3	Venue.

 

If a Dispute cannot
be resolved in accordance with Sections 11.1 and 11.2, each of the Parties (i) agree that any legal suit, action or proceeding
arising out of or relating to this Agreement and/or the transactions contemplated hereby will be instituted exclusively in the
courts located in the State of Delaware (ii) waive any objection which it may have or hereafter to the venue of any such suit,
action or proceeding, and (iii) irrevocably consents to the jurisdiction of the courts located in the State of Delaware, in any
such suit, action or proceeding.

  

ARTICLE 12

Miscellaneous Provisions

 

		12.1	Accounting Procedures.

 

All monetary amounts
expressed in this Agreement are expressed in U.S. dollars. Each Party shall calculate all amounts hereunder and perform other accounting
procedures required hereunder and applicable to it in accordance with the conventions, rules and procedures promulgated by the
U.S. generally accepted accounting principles.

 

		12.2	Affiliates.

 

Each Party shall have
the right to have any of its obligations hereunder performed, or its rights hereunder exercised, by, any of its Affiliates with
prior written notice to the other Party, and the performance of such obligations by any such Affiliate(s) shall be deemed to be
performance by the Party; provided, that any such delegation by a Party to any of its Affiliates shall not relieve the delegating
Party of any of its obligations under this Agreement and the delegating Party shall ensure the performance of its obligations under
this Agreement in accordance with the terms and conditions of this Agreement and that any failure of any Affiliate performing any
obligations of the delegating Party hereunder shall be deemed to be a failure by the delegating Party to perform such obligations.
Each Party and any of its Affiliate performing any of the Party’s obligations or receiving any benefits under this Agreement
shall be responsible for all acts or omissions of the Party or its Affiliates’ directors, officers, employees, contractors
or consultants, and each Party and any such Affiliate shall be jointly and severally liable hereunder, and each Party shall have
the right to enforce the terms of this Agreement against any such Affiliate of the other Party as if it were a Party.

 

    	37

    	CONFIDENTIAL

    

 

		12.3	Amendments.

 

No waiver, modification
or amendment of any provision of this Agreement shall be valid or effective unless made in a writing referencing this Agreement
and signed by a duly authorized officer of each Party.

 

		12.4	Assignment; Binding.

 

Parties will have the
right at its sole discretion to, assign, delegate or otherwise transfer (whether voluntarily, by operation of law or otherwise)
this Agreement, or any of its rights or obligations hereunder with prior written consent of the other Party which shall not be
unreasonably withheld, delayed or conditioned; provided, however, that either Party may assign this contract to an
Affiliate or to an acquirer in connection with the merger or acquisition of the Party or all or substantially all the assets of
the Party. Subject to the foregoing, this Agreement will be binding upon and will inure to the benefit of the Parties and their
respective successors and permitted assigns. Any assignment by a Party in violation of this provision shall be void.

 

		12.5	Compliance with Laws.

 

Each Party shall conduct,
and shall use Commercially Reasonable Efforts to cause its Affiliates and subcontractors and its and its Affiliates’ and
subcontractors’ employees, contractors and consultants to conduct, all activities contemplated under this Agreement in accordance
with all Applicable Law. Each Party shall be liable for any action or inaction that would constitute a breach of this Agreement
or breach of any Applicable Laws by its respective Affiliates, subcontractors and/or their respective employees or consultants,
were such Affiliates, subcontractors and/or their respective employees or consultants a party hereto.

 

		12.6	Construction.

 

This Agreement has
been negotiated by the Parties and their respective counsel and will be interpreted fairly in accordance with its terms and without
any strict construction in favor of or against either Party. Except where expressly stated otherwise in this Agreement, the following
rules of interpretation apply to this Agreement: (a) “include,” “includes” and “including”
are not limiting and shall be deemed to be followed by “without limitation”; (b) definitions contained in this Agreement
are applicable to the singular as well as the plural forms of such terms; (c) references to an agreement, statute or instrument
mean such agreement, statute or instrument as from time to time amended, modified or supplemented; (d) captions and other headings
to this Agreement are for convenience only, and shall have no force or effect in construing or interpreting any of the provisions
of this Agreement or any other legal effect; (e) references to “Parties,” “Article,” “Section,”
“Exhibit” or “Schedule” refer to the Parties to, an Article or Section of, or any Exhibit or Schedule to,
this Agreement unless otherwise indicated; (f) the word “will” shall be construed to have the same meaning and effect
as the word “shall” and vice versa; and (g) the word “or” has, except where otherwise indicated, the inclusive
meaning represented by the phrase “and/or”.

 

    	38

    	CONFIDENTIAL

    

 

		12.7	Counterparts.

 

This Agreement may
be executed (including, without limitation, by facsimile, electronic, or PDF signature) in one or more counterparts, each of which
will be deemed an original instrument, and all of which will constitute one and the same agreement.

 

		12.8	Force Majeure.

 

If the performance
by a Party of any obligation under this Agreement, is prevented or impaired by an event of Force Majeure, the affected Party claiming
an event of Force Majeure shall be excused from performance so long as such situation continues to prevent or impair performance,
provided that the affected Party: promptly notifies the other Party in writing of the full particulars of the cause or event
and the date of first occurrence thereof as soon as possible after the event; provides a date when full performance is expected
to be resumed; and keeps the other Party informed of any further developments. The Party so affected shall use all Commercially
Reasonable Efforts to remove the cause of non-performance, and each Party shall resume performance hereunder with the utmost dispatch
when such cause is removed, unless this Agreement has been terminated according to its terms

 

		12.9	Governing Law.

 

This Agreement will
be governed by the laws of the State of Delaware applied to contracts made and to be wholly performed in the State of Washington.

 

		12.10	Limited Rights and Obligations.

 

Each Party hereby acknowledges
and agrees that the scope of the relationship between the Parties will be limited to the purposes and activities expressly set
forth herein, and that the rights and obligations of the Parties with respect to each other will be limited to those expressly
prescribed in this Agreement. Neither Party has any right, obligation or responsibility not specifically provided herein or authorized
after the Effective Date by the mutual written agreement of the Parties, and nor will such right, obligation or responsibility
will be implied by the terms and conditions of this Agreement or the conduct of the Parties hereunder.

 

    	39

    	CONFIDENTIAL

    

 

		12.11	Notices.

 

Any consent, notice
or report required or permitted to be given or made under this Agreement by one of the Parties to the other shall be in writing
and addressed to such other Party at its address indicated below, or to such other address as the addressee Party shall have last
furnished in writing to the addressor Party, and shall be considered effective and/or received: (i) upon the date of receipt by
the addressee Party if hand delivered; (ii) if sent via electronic mail, upon the date a personalized electronic mail confirmation
or acknowledgment of receipt is sent; (iii) upon the date delivered by the U.S. postal service via registered or certified mail,
or by reputable courier service, in each case, as indicated with a written confirmation or acknowledgement of receipt.

 

	If to Atossa:	Steven Quay, CEO and President
	 	ATOSSA GENETICS, INC.
	 	2345 Eastlake Ave E, Suite 201
	 	Seattle, WA, 98102. U.S.A.
	 	 
	 	 
	If to Besins:	Leslie Grunfeld, CEO
	 	Besins Healthcare Holding Ltd
	 	AGildo Pastor Center
	 	7 rue du Gabian,
	 	98000 Monaco
	 	lgrunfeld@besins-healthcare.com
	 	 
	 	With a copy to:
	 	François Brault, Head of Legal Affairs:
	 	fbrault@besins-healthcare.com

 

		12.12	Relationship of the Parties.

 

The Parties acknowledge
that this Agreement does not create a fiduciary relationship between them, and that the Parties are independent contractors of
the other, and that nothing in this Agreement is to make either Party an agent, legal representative, subsidiary, joint venturer,
partner, employee or servant of the other for any purpose whatsoever. Neither Party nor its agents have any authority of any kind
to bind the other Party in any respect whatsoever, and the relationship of the Parties is, and at all times will continue to be,
that of independent contractors.

 

    	40

    	CONFIDENTIAL

    

 

		12.13	Severability.

 

In the event that any
provisions of this Agreement are determined for any reason to be invalid or unenforceable by a court of competent jurisdiction,
the remainder of the Agreement will remain in full force and effect without that provision. In such event, the Parties will in
good faith negotiate a substitute clause for any provision declared invalid or unenforceable, which will most nearly approximate
the intent of the Parties.

 

		12.14	Use of Names.

 

Except as provided
in Section 6.10, neither Party will use the name, symbol or logo of the other Party without the other Party’s prior
written consent except as required by law. Each Party shall keep the other Party informed about any of its activities that involve
using the other Party’s name.

 

		12.15	Waiver.

 

The waiver of or failure
to enforce by one Party any breach of any term, covenant, or condition contained in this Agreement will not be construed or deemed
to be a waiver of any subsequent or similar breach of the same or any other term, covenant, representation, warranty, or condition;
nor will any delay or omission on the part of either Party to exercise or avail itself of any right or remedy that it has or may
have hereunder operate as a waiver of any right or remedy.

 

		12.16	Solicitation of Employees.

 

The Parties agree that
during the term of this Agreement and during the twelve (12) month period commencing on the date that such term expires or is terminated,
they shall not for any reason, either directly or indirectly, on their own behalf or in the service of or on behalf of others,
solicit, recruit or attempt to persuade any person to terminate such person’s employment with the other Party, whether or
not such person is a full-time employee or whether or not such employment is pursuant to a written agreement or is at-will; provided
that either Party may hire an employee of the other in the event such employee answers a general advertisement for employment (not
targeted to employees of the other Party) or seeks employment without any prior solicitation by the hiring Party.

 

SIGNATURES FOLLOW ON
THE NEXT PAGE

 

    	41

    	CONFIDENTIAL

    

 

IN WITNESS WHEREOF,
the undersigned, intending to be legally bound, have duly executed this Agreement as of the date first above written.

 

	BESINS HEALTHCARE. 	ATOSSA GENETICS INC.
	 	 
	By: /s/ Leslie Grunfeld 	By: /s/ Steven C. Quay
	 	 
	[signature]	[signature]
	 	 
	Name: Leslie Grunfeld	Name: Steven C. Quay
	 	 
	Title: CEO	Title: CEO

 

    	42

    	CONFIDENTIAL

    

 

Exhibit A – Atossa Background
IP Claiming Afimoxifene Gel. 

 

None

 

    	43

    	CONFIDENTIAL

    

 

Exhibit B – Atossa Foreground
IP 

 

None. To be completed after execution of
Agreement when IP is developed.

 

    	44

    	CONFIDENTIAL

    

 

Exhibit C – Besins Core IP

 

	A	Hyperplasia & Benign Breast Disease	 
	 	Country	Application #	Registration #	Status
	1	Australia                                                                       	2005227072	2005227072	Granted/Registered
	2	Austria                                                                         	05716433.7	1748770	Granted/Registered
	3	Belgium                                                                         	05716433.7	1748770	Granted/Registered
	4	Canada                                                                          	2559748	2559748	Granted/Registered
	5	China                                                                           	200580009172.4	1946387	Granted/Registered
	6	Denmark                                                                         	05716433.7	1748770	Granted/Registered
	7	European Patent Application                                                     	05716433.7	1748770	Granted/Registered
	8	Finland                                                                         	05716433.7	1748770	Granted/Registered
	9	France                                                                          	05716433.7	1748770	Granted/Registered
	10	Germany                                                                         	05716433.7	1748770	Granted/Registered
	11	Greece                                                                          	05716433.7	1748770	Granted/Registered
	12	Hong Kong                                                                       	07102275.5	HK1096595	Granted/Registered
	13	Ireland                                                                         	05716433.7	1748770	Granted/Registered
	14	Italy                                                                           	05716433.7	1748770	Granted/Registered
	15	Japan                                                                           	2007-504377	5072588	Granted/Registered
	16	Luxembourg                                                                      	05716433.7	1748770	Granted/Registered
	17	Mexico                                                                          	PA/A/2006/010914	262962	Granted/Registered
	18	Monaco                                                                          	05716433.7	1748770	Granted/Registered
	19	Netherlands                                                                     	05716433.7	1748770	Granted/Registered
	20	New Zealand                                                                     	549817	549817	Granted/Registered
	21	Norway                                                                          	20064609	 	Application Pending
	22	PCT Application                                                                 	PCT/EP2005/003286	 	Case Closed
	23	Poland                                                                          	05716433.7	1748770	Granted/Registered
	24	Portugal                                                                        	05716433.7	1748770	Granted/Registered
	25	Russian Federation                                                              	2006137280	2357726	Granted/Registered
	26	Spain                                                                           	05716433.7	1748770	Granted/Registered
	27	Sweden                                                                          	05716433.7	1748770	Granted/Registered
	28	Switzerland                                                                     	05716433.7	1748770	Granted/Registered
	29	Turkey                                                                          	05716433.7	1748770	Granted/Registered
	30	United Kingdom                                                                  	05716433.7	1748770	Granted/Registered
	31	USA                                                                             	10/805528	7507769	Granted/Registered
	32	USA                                                                             	12/397487	8048927	Granted/Registered

 

    	45

    	CONFIDENTIAL

    

 

	B	Breast
    Cancer	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	Australia                                                                       	2003294973	2003294973	Granted/Registered
	2	Canada                                                                          	2519980	2519980	Granted/Registered
	3	European
    Patent Application                                                     	03785958.4	1608353	Granted/Registered
	4	European
    Patent Application                                                     	08103007.4	1952810	Granted/Registered
	5	European
    Patent Application                                                     	08103014.0	1941871	Granted/Registered
	6	France                                                                          	03785958.4	1608353	Granted/Registered
	7	France                                                                          	08103007.4	1952810	Granted/Registered
	8	France                                                                          	08103014.0	1941871	Granted/Registered
	9	Germany                                                                         	03785958.4	1608353	Granted/Registered
	10	Germany                                                                         	08103007.4	1952810	Granted/Registered
	11	Germany                                                                         	08103014.0	1941871	Granted/Registered
	12	Hong
    Kong                                                                       	06107310.2	HK1086193	Granted/Registered
	13	Hong
    Kong                                                                       	08113909.5	HK1119950	Granted/Registered
	14	Ireland                                                                         	03785958.4	1608353	Granted/Registered
	15	Ireland                                                                         	08103007.4	1952810	Granted/Registered
	16	Ireland                                                                         	08103014.0	1941871	Granted/Registered
	17	Israel                                                                          	170807	170807	Granted/Registered
	18	Italy                                                                           	03785958.4	1608353	Granted/Registered
	19	Italy                                                                           	08103007.4	1952810	Granted/Registered
	20	Italy                                                                           	08103014.0	1941871	Granted/Registered
	21	Japan                                                                           	2004-570040	5490346	Granted/Registered
	22	Luxembourg                                                                      	03785958.4	1608353	Granted/Registered
	23	Luxembourg                                                                      	08103007.4	1952810	Granted/Registered
	24	Luxembourg                                                                      	08103014.0	1941871	Granted/Registered
	25	Mexico                                                                          	PA/a/2005/010597	279293	Granted/Registered
	26	Netherlands                                                                     	03785958.4	1608353	Granted/Registered
	27	Netherlands                                                                     	08103007.4	1952810	Granted/Registered
	28	Netherlands                                                                     	08103014.0	1941871	Granted/Registered
	29	New
    Zealand                                                                     	542499	542499	Granted/Registered
	30	Norway                                                                          	20054526	333805	Granted/Registered
	31	PCT
    Application                                                                 	PCT/EP2003/015029	 	Case
    Closed
	32	Spain                                                                           	03785958.4	1608353	Granted/Registered
	33	Spain                                                                           	08103007.4	1952810	Granted/Registered
	34	Spain                                                                           	08103014.0	1941871	Granted/Registered
	35	Switzerland                                                                     	03785958.4	1608353	Granted/Registered
	36	Switzerland                                                                     	08103007.4	1952810	Granted/Registered
	37	Switzerland                                                                     	08103014.0	1941871	Granted/Registered
	38	United
    Kingdom                                                                  	03785958.4	1608353	Granted/Registered
	39	United
    Kingdom                                                                  	08103007.4	1952810	Granted/Registered
	40	United
    Kingdom                                                                  	08103014.0	1941871	Granted/Registered
	41	USA                                                                             	12/353890	8475814	Granted/Registered

 

    	46

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	C	Mastalgia	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	Australia                                                                       	2003303033	2003303033	Granted/Registered
	2	Austria                                                                         	03813146.2	1572178	Granted/Registered
	3	Belgium                                                                         	03813146.2	1572178	Granted/Registered
	4	Bulgaria                                                                        	03813146.2	1572178	Granted/Registered
	5	Canada                                                                          	2509660	2509660	Granted/Registered
	6	Cyprus                                                                          	03813146.2	1572178	Granted/Registered
	7	Czech
    Republic                                                                	03813146.2	1572178	Granted/Registered
	8	Denmark                                                                         	03813146.2	1572178	Granted/Registered
	9	Estonia                                                                         	03813146.2	1572178	Granted/Registered
	10	European
Patent Application                                             	03813146.2	1572178	Granted/Registered
	11	Finland                                                                         	03813146.2	1572178	Granted/Registered
	12	France                                                                          	03813146.2	1572178	Granted/Registered
	13	Germany                                                                         	03813146.2	1572178	Granted/Registered
	14	Greece                                                                          	03813146.2	1572178	Granted/Registered
	15	Hong
    Kong                                                                       	05108810.6	HK1075403	Granted/Registered
	16	Hungary                                                                         	03813146.2	1572178	Granted/Registered
	17	Ireland                                                                         	03813146.2	1572178	Granted/Registered
	18	Italy                                                                           	03813146.2	1572178	Granted/Registered
	19	Japan                                                                           	2004-560487	4938237	Granted/Registered
	20	Luxembourg                                                                      	03813146.2	1572178	Granted/Registered
	21	Mexico                                                                          	PA/A/2005/006526	256654	Granted/Registered
	22	Monaco                                                                          	03813146.2	1572178	Granted/Registered
	23	Netherlands                                                                     	03813146.2	1572178	Granted/Registered
	24	New
    Zealand                                                                     	540494	540494	Granted/Registered
	25	PCT
    Application                                                                 	PCT/EP2003/015028	 	Case
    Closed
	26	Portugal                                                                        	03813146.2	1572178	Granted/Registered
	27	Romania                                                                         	03813146.2	1572178	Granted/Registered
	28	Slovakia                                                                        	03813146.2	1572178	Granted/Registered
	29	Slovenia                                                                        	03813146.2	1572178	Granted/Registered
	30	Spain                                                                           	03813146.2	1572178	Granted/Registered
	31	Sweden                                                                          	03813146.2	1572178	Granted/Registered
	32	Switzerland                                                                     	03813146.2	1572178	Granted/Registered
	33	Turkey                                                                          	03813146.2	1572178	Granted/Registered
	34	United
    Kingdom                                                             	03813146.2	1572178	Granted/Registered
	35	USA                                                                             	10/734640	7786172	Granted/Registered

 

    	47

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	D	Breast
    Density	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	European
    Patent Application                                                     	03813147.0	1572171	Granted/Registered
	2	European
    Patent Application                                                     	08103001.7	 	Application
    Pending
	3	European
    Patent Application                                                     	09000839.2	 	Application
    Pending
	4	France                                                                          	03813147.0	1572171	Granted/Registered
	5	Germany                                                                         	03813147.0	1572171	Granted/Registered
	6	Hong
    Kong                                                                       	05110203.7	HK1077512	Granted/Registered
	7	Hong
    Kong                                                                       	09100877.9	 	Application
    Pending
	8	Hong
    Kong                                                                       	09109465.8	 	Application
    Pending
	9	Japan                                                                           	2004-560488	4684655	Granted/Registered
	10	Japan                                                                           	2010-279107	 	Case
    Closed
	11	PCT
    Application                                                                 	PCT/EP2003/015030	 	Case
    Closed
	12	United
    Kingdom                                                                  	03813147.0	1572171	Granted/Registered
	13	USA                                                                             	10/734644	7485623	Granted/Registered

 

    	48

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	E	Gynomastia	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	Australia                                                                       	2004298349	2004298349	Granted/Registered
	2	Austria                                                                         	04803913.5	1694319	Granted/Registered
	3	Belgium                                                                         	04803913.5	1694319	Granted/Registered
	4	Canada                                                                          	2549824	2549824	Granted/Registered
	5	Czech
    Republic                                                                  	04803913.5	1694319	Granted/Registered
	6	Denmark                                                                         	04803913.5	1694319	Granted/Registered
	7	European
    Patent Application                                                     	04803913.5	1694319	Granted/Registered
	8	Finland                                                                         	04803913.5	1694319	Granted/Registered
	9	France                                                                          	04803913.5	1694319	Granted/Registered
	10	Germany                                                                         	04803913.5	1694319	Granted/Registered
	11	Greece                                                                          	04803913.5	1694319	Granted/Registered
	12	Hong
    Kong                                                                       	07100340.0	HK1094768	Granted/Registered
	13	Hungary                                                                         	04803913.5	1694319	Granted/Registered
	14	Ireland                                                                         	04803913.5	1694319	Granted/Registered
	15	Italy                                                                           	04803913.5	1694319	Granted/Registered
	16	Japan                                                                           	2006-543519	5069469	Granted/Registered
	17	Luxembourg                                                                      	04803913.5	1694319	Granted/Registered
	18	Mexico                                                                          	PA/A/2006/006834	262238	Granted/Registered
	19	Monaco                                                                          	04803913.5	1694319	Granted/Registered
	20	Netherlands                                                                     	04803913.5	1694319	Granted/Registered
	21	New
    Zealand                                                                     	547744	547744	Granted/Registered
	22	Norway                                                                          	20062904	 	Application
    Pending
	23	PCT
    Application                                                                 	PCT/EP2004/014295	 	Case
    Closed
	24	Poland                                                                          	04803913.5	1694319	Granted/Registered
	25	Portugal                                                                        	04803913.5	1694319	Granted/Registered
	26	Romania                                                                         	04803913.5	1694319	Granted/Registered
	27	South
    Africa                                                                    	2006/05579	2006/05579	Granted/Registered
	28	Spain                                                                           	04803913.5	1694319	Granted/Registered
	29	Sweden                                                                          	04803913.5	1694319	Granted/Registered
	30	Switzerland                                                                     	04803913.5	1694319	Granted/Registered
	31	Turkey                                                                          	04803913.5	1694319	Granted/Registered
	32	United
    Kingdom                                                                  	04803913.5	1694319	Granted/Registered
	33	USA                                                                             	11/009390	7968532	Granted/Registered

 

    	49

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	F	Breast
    Scarring 	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	Australia                                                                       	2004246812	2004246812	Granted/Registered
	2	Austria                                                                         	04740032.0	1631275	Granted/Registered
	3	Belgium                                                                         	04740032.0	1631275	Granted/Registered
	4	Canada                                                                          	2528431	2528431	Granted/Registered
	5	Denmark                                                                         	04740032.0	1631275	Granted/Registered
	6	European
    Patent Application                                                     	04740032.0	1631275	Granted/Registered
	7	France                                                                          	04740032.0	1631275	Granted/Registered
	8	Germany                                                                         	04740032.0	1631275	Granted/Registered
	9	Hong
    Kong                                                                       	06103609.1	HK1082203	Granted/Registered
	10	Ireland                                                                         	04740032.0	1631275	Granted/Registered
	11	Italy                                                                           	04740032.0	1631275	Granted/Registered
	12	Japan                                                                           	2006-515986	4682129	Granted/Registered
	13	Luxembourg                                                                      	04740032.0	1631275	Granted/Registered
	14	Mexico                                                                          	PA/A/2005/013435	257512	Granted/Registered
	15	Monaco                                                                          	04740032.0	1631275	Granted/Registered
	16	Netherlands                                                                     	04740032.0	1631275	Granted/Registered
	17	New
    Zealand                                                                     	544031	544031	Granted/Registered
	18	PCT
    Application                                                                 	PCT/EP2004/006583	 	Case
    Closed
	19	Portugal                                                                        	04740032.0	1631275	Granted/Registered
	20	Spain                                                                           	04740032.0	1631275	Granted/Registered
	21	Sweden                                                                          	04740032.0	1631275	Granted/Registered
	22	Switzerland                                                                     	04740032.0	1631275	Granted/Registered
	23	Turkey                                                                          	04740032.0	1631275	Granted/Registered
	24	United
    Kingdom                                                                  	04740032.0	1631275	Granted/Registered
	25	USA                                                                             	10/858399	7767717*	Granted/Registered

 

* As this specific patent (US7,767,717) is co-owned by Besins
with Northwestern University, U.S.A., the Parties agree that, should Atossa exercise its option under Section 4.2 to expand
the Field to the Additional Indication “other breast diseases” to include equivalent licenses under US7,767,717, then
Besins shall make its best efforts to ensure that Atossa be authorized to obtain licensing rights from the co-owner and to assist
Atossa in negotiating exclusivity with the co-owner.

 

    	50

    	CONFIDENTIAL

    

 

Exhibit D – Besins Platform
IP

 

	A	Formulations	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	Australia                                                                       	2003294973	2003294973	Granted/Registered
	2	Canada                                                                          	2519980	2519980	Granted/Registered
	3	European
    Patent Application                                                     	08103014.0	1941871	Granted/Registered
	4	France                                                                          	08103014.0	1941871	Granted/Registered
	5	Germany                                                                         	08103014.0	1941871	Granted/Registered
	6	Hong
    Kong                                                                       	08113909.5	HK1119950	Granted/Registered
	7	Ireland                                                                         	08103014.0	1941871	Granted/Registered
	8	Italy                                                                           	08103014.0	1941871	Granted/Registered
	9	Japan                                                                           	2004-570040	5490346	Granted/Registered
	10	Luxembourg                                                                      	08103014.0	1941871	Granted/Registered
	11	Mexico                                                                          	PA/a/2005/010597	279293	Granted/Registered
	12	Netherlands                                                                     	08103014.0	1941871	Granted/Registered
	13	New
    Zealand                                                                     	542499	542499	Granted/Registered
	14	Norway                                                                          	20054526	333805	Granted/Registered
	15	PCT
    Application                                                                 	PCT/EP2003/015029	 	Case
    Closed
	16	Spain                                                                           	08103014.0	1941871	Granted/Registered
	17	Switzerland                                                                     	08103014.0	1941871	Granted/Registered
	18	United
    Kingdom                                                                  	08103014.0	1941871	Granted/Registered
	19	USA                                                                             	10/734638	7704516	Granted/Registered

 

    	51

    	CONFIDENTIAL

    

 

	B	E/Z
    Isomers	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	Argentina                                                                       	P050101125	 	Application
    Pending
	2	Australia                                                                       	2005227073	2005227073	Granted/Registered
	3	Austria                                                                         	05735277.5	1727532	Granted/Registered
	4	Belgium                                                                         	05735277.5	1727532	Granted/Registered
	5	Bulgaria                                                                        	05735277.5	1727532	Granted/Registered
	6	Canada                                                                          	2557806	2557806	Granted/Registered
	7	China                                                                           	200580009171.X	101080222	Granted/Registered
	8	Czech
    Republic                                                                  	05735277.5	1727532	Granted/Registered
	9	Denmark                                                                         	05735277.5	1727532	Granted/Registered
	10	European
    Patent Application                                                     	05735277.5	1727532	Granted/Registered
	11	European
    Patent Application                                                     	09175781.5	2147670	Granted/Registered
	12	European
    Patent Application                                                     	10180921.8	2269599	Granted/Registered
	13	Finland                                                                         	05735277.5	1727532	Granted/Registered
	14	France                                                                          	05735277.5	1727532	Granted/Registered
	15	France                                                                          	09175781.5	2147670	Granted/Registered
	16	France                                                                          	10180921.8	2269599	Granted/Registered
	17	Germany                                                                         	05735277.5	1727532	Granted/Registered
	18	Germany                                                                         	09175781.5	2147670	Granted/Registered
	19	Germany                                                                         	10180921.8	2269599	Granted/Registered
	20	Greece                                                                          	05735277.5	1727532	Granted/Registered
	21	Hong
    Kong                                                                       	07104159.2	HK1098674	Granted/Registered
	22	Hong
    Kong                                                                       	10106178.9	 	Application
    Pending
	23	Hungary                                                                         	05735277.5	1727532	Granted/Registered
	24	India                                                                           	2453/KOLNP/2006	251984	Granted/Registered
	25	Ireland                                                                         	05735277.5	1727532	Granted/Registered
	26	Ireland                                                                         	09175781.5	2147670	Granted/Registered
	27	Ireland                                                                         	10180921.8	2269599	Granted/Registered
	28	Israel                                                                          	177778	177778	Granted/Registered
	29	Israel                                                                          	215897	 	Granted/Registered
	30	Italy                                                                           	05735277.5	1727532	Granted/Registered
	31	Italy                                                                           	09175781.5	2147670	Granted/Registered
	32	Italy                                                                           	10180921.8	2269599	Granted/Registered
	33	Japan                                                                           	2007-504378	5489407	Granted/Registered
	34	Luxembourg                                                                      	05735277.5	1727532	Granted/Registered
	35	Luxembourg                                                                      	09175781.5	2147670	Granted/Registered
	36	Luxembourg                                                                      	10180921.8	2269599	Granted/Registered
	37	Mexico                                                                          	PA/A/2006/010928	279114	Granted/Registered
	38	Monaco                                                                          	05735277.5	1727532	Granted/Registered
	39	Netherlands                                                                     	05735277.5	1727532	Granted/Registered
	40	Netherlands                                                                     	09175781.5	2147670	Granted/Registered
	41	Netherlands                                                                     	10180921.8	2269599	Granted/Registered
	42	New
    Zealand                                                                     	549664	549664	Granted/Registered
	43	Norway                                                                          	20064765	 	Application
    Pending
	44	PCT
    Application                                                                 	PCT/EP2005/003455	 	Case
    Closed
	45	Poland                                                                          	05735277.5	1727532	Granted/Registered
	46	Portugal                                                                        	05735277.5	1727532	Granted/Registered
	47	Romania                                                                         	05735277.5	1727532	Granted/Registered
	48	Russian
    Federation                                                              	2006137282	2389483	Granted/Registered
	49	South
    Africa                                                                    	2006/07291	2006/07291	Granted/Registered
	50	Spain                                                                           	05735277.5	1727532	Granted/Registered
	51	Spain                                                                           	09175781.5	2147670	Granted/Registered
	52	Spain                                                                           	10180921.8	2269599	Granted/Registered
	53	Sweden                                                                          	05735277.5	1727532	Granted/Registered
	54	Switzerland                                                                     	05735277.5	1727532	Granted/Registered
	55	Switzerland                                                                     	09175781.5	2147670	Granted/Registered
	56	Switzerland                                                                     	10180921.8	2269599	Granted/Registered
	57	Taiwan                                                                          	094108588	I401078	Granted/Registered
	58	Turkey                                                                          	05735277.5	1727532	Granted/Registered
	59	United
    Kingdom                                                                  	05735277.5	1727532	Granted/Registered
	60	United
    Kingdom                                                                  	09175781.5	2147670	Granted/Registered
	61	United
    Kingdom                                                                  	10180921.8	2269599	Granted/Registered
	62	USA                                                                             	10/805530	 	Application
    Pending

 

    	52

    	CONFIDENTIAL

    

 

	C	4X
    Formulation	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	Algeria                                                                         	070224	5132	Granted/Registered
	2	Armenia                                                                         	200700834	011295	Granted/Registered
	3	Australia                                                                       	2005293712	2005293712	Granted/Registered
	4	Austria                                                                         	05803579.1	1799201	Granted/Registered
	5	Azerbaijan                                                                      	200700834	011295	Granted/Registered
	6	Belarus                                                                         	200700834	011295	Granted/Registered
	7	Belgium                                                                         	05803579.1	1799201	Granted/Registered
	8	Brazil                                                                          	PI0518139-9	 	Application
    Pending
	9	Bulgaria                                                                        	05803579.1	1799201	Granted/Registered
	10	Canada                                                                          	2582174	2582174	Granted/Registered
	11	China                                                                           	200580035353.4	101065120	Granted/Registered
	12	Colombia                                                                        	07036907	1377	Granted/Registered
	13	Croatia                                                                         	05803579.1	1799201	Granted/Registered
	14	Cyprus                                                                          	05803579.1	1799201	Granted/Registered
	15	Czech
    Republic                                                                  	05803579.1	1799201	Granted/Registered
	16	Denmark                                                                         	05803579.1	1799201	Granted/Registered
	17	Ecuador                                                                         	SP-07-7396	 	Application
    Pending
	18	Estonia                                                                         	05803579.1	1799201	Granted/Registered
	19	Eurasian
    Patent                                                                 	200700834	011295	Granted/Registered
	20	European
    Patent Application                                                     	05803579.1	1799201	Granted/Registered
	21	Finland                                                                         	05803579.1	1799201	Granted/Registered
	22	France                                                                          	05803579.1	1799201	Granted/Registered
	23	Georgia                                                                         	9987/01	P
    2010 4889 B	Granted/Registered
	24	Germany                                                                         	05803579.1	1799201	Granted/Registered
	25	Greece                                                                          	05803579.1	1799201	Granted/Registered
	26	Hong
    Kong                                                                       	07111311.2	HK1103027	Granted/Registered
	27	Hungary                                                                         	05803579.1	1799201	Granted/Registered
	28	Iceland                                                                         	05803579.1	1799201	Granted/Registered
	29	India                                                                           	1133/KOLNP/2007	 	Application
    Pending
	30	Ireland                                                                         	05803579.1	1799201	Granted/Registered
	31	Israel                                                                          	182298	182298	Granted/Registered
	 	Italy                                                                           	05803579.1	1799201	Granted/Registered
	32	Japan                                                                           	2007-536126	5047800	Granted/Registered
	33	Kazakhstan                                                                      	200700834	011295	Granted/Registered
	34	Kyrgyzstan                                                                      	200700834	011295	Granted/Registered
	35	Latvia                                                                          	05803579.1	1799201	Granted/Registered
	36	Lithuania                                                                       	05803579.1	1799201	Granted/Registered
	37	Luxembourg                                                                      	05803579.1	1799201	Granted/Registered
	38	Macedonia                                                                       	05803579.1	1799201	Granted/Registered
	39	Mexico                                                                          	MX/A/2007/004371	263103	Granted/Registered
	40	Moldova                                                                         	200700834	011295	Granted/Registered
	41	Monaco                                                                          	05803579.1	1799201	Granted/Registered
	42	Morocco                                                                         	PV29815	28927	Granted/Registered
	43	Netherlands                                                                     	05803579.1	1799201	Granted/Registered
	44	New
    Zealand                                                                     	554206	554206	Granted/Registered
	45	Nigeria                                                                         	186/07	NG/C/2007/909	Granted/Registered
	46	Norway                                                                          	20072463	 	Application
    Pending
	47	OAPI                                                                            	1200700149	13780	Granted/Registered
	48	PCT
    Application                                                                 	PCT/EP2005/011654	 	Case
    Closed
	49	Poland                                                                          	05803579.1	1799201	Granted/Registered
	50	Portugal                                                                        	05803579.1	1799201	Granted/Registered
	51	Romania                                                                         	05803579.1	1799201	Granted/Registered
	52	Russian
    Federation                                                              	200700834	011295	Granted/Registered
	53	Serbia                                                                          	05803579.1	1799201	Granted/Registered
	54	Singapore                                                                       	2007027055	131527	Granted/Registered
	55	Slovakia                                                                        	05803579.1	1799201	Granted/Registered
	56	Slovenia                                                                        	05803579.1	1799201	Granted/Registered
	57	South
    Africa                                                                    	2007/03016	2007/03016	Granted/Registered
	58	South
    Korea                                                                     	10-2007-7008384	10-1294947	Granted/Registered
	59	Spain                                                                           	05803579.1	1799201	Granted/Registered
	60	Sweden                                                                          	05803579.1	1799201	Granted/Registered
	61	Switzerland                                                                     	05803579.1	1799201	Granted/Registered
	62	Tajikistan                                                                      	200700834	011295	Granted/Registered
	63	Tunisia                                                                         	SN07.139	 	Application
    Pending
	64	Turkey                                                                          	05803579.1	1799201	Granted/Registered
	65	Turkmenistan                                                                    	200700834	011295	Granted/Registered
	66	Ukraine                                                                         	a200705192	87335	Granted/Registered
	67	United
    Kingdom                                                                  	05803579.1	1799201	Granted/Registered
	68	USA                                                                             	60/638359	 	Case
    Closed
	69	USA                                                                             	11/249122	 	Application
    Pending
	70	Uzbekistan                                                                      	IAP20070138	IAP03817	Granted/Registered
	71	Viet
    Nam                                                                        	1-2007-00777	 	Application
    Pending

 

    	53

    	CONFIDENTIAL

    

 

	D	Dermis	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	Australia                                                                       	2010311523	2010311523	Granted/Registered
	2	Brazil                                                                          	BR112012010083.1	 	Application
    Pending
	3	Canada                                                                          	2778689	 	Application
    Pending
	4	China                                                                           	201080059696.5	 	Application
    Pending
	5	European
    Patent Application                                                     	10768983.8	 	Application
    Pending
	6	Hong
    Kong                                                                       	12112691.3	 	Application
    Pending
	7	India                                                                           	1111/MUMNP/2012	 	Application
    Pending
	8	Israel                                                                          	219236	 	Application
    Pending
	9	Japan                                                                           	2012-535814	5727494	Granted/Registered
	10	PCT
    Application                                                                 	PCT/EP2010/066283	 	Case
    Closed
	11	Russian
    Federation                                                              	2012121708	 	Application
    Pending
	12	South
    Africa                                                                    	2012/02855	2012/02855	Granted/Registered
	13	USA                                                                             	12/912310	 	Application
    Pending

 

	E	Stable
    Gel	 	 	 
	 	Country	Application
    #	Registration
    #	Status
	1	European
    Patent Application                                                     	04712591.9	1594545	Granted/Registered
	2	France                                                                          	0302083	2851470	Granted/Registered
	3	France                                                                          	04712591.9	1594545	Granted/Registered
	4	Germany                                                                         	04712591.9	1594545	Granted/Registered
	5	Hong
    Kong                                                                       	06105598.9	HK1084590	Granted/Registered
	6	Japan                                                                           	2006-502159	4925103	Granted/Registered
	7	PCT
    Application                                                                 	PCT/FR2004/000393	 	Case
    Closed
	8	United
    Kingdom                                                                  	04712591.9	1594545	Granted/Registered
	9	USA                                                                             	10/436380	7611727	Granted/Registered

 

    	54

    	CONFIDENTIAL

    

 

Exhibit E – Afimoxifene Gel
Development Plan 

 

 

 

    	55

    	CONFIDENTIAL

    

 

Exhibit F – Press Release

 

 

 

 

Atossa Genetics Acquires

 

Rights to Clinical Stage Proprietary
Afimoxifene Gel for 

 

Potential Treatment of Hyperplasia of
the Breast

 

Sixteen Completed Clinical Studies Provide Support
for Phase 2 Program

  

SEATTLE, May __, 2015 -- Atossa Genetics, Inc. (NASDAQ:
ATOS) today announced that it has acquired from Besins Healthcare an exclusive license to Besins’ patented gel formulation
of 4-Hydroxytamoxifen, or Afimoxifene Gel, which Atossa intends to develop for the potential treatment of hyperplasia of the breast.

 

Steven C. Quay, M.D., Ph.D., President
and CEO, commented, “Atossa’s strategy is to improve breast health through a three step approach: providing our patented
medical devices to collect nipple aspirate fluid, testing the fluid for the presence of hyperplasia, and then treating the hyperplasia
with the local delivery of a proprietary pharmaceutical. Obtaining the rights to Besins’ Afimoxifene Gel represents considerable
advancement towards developing the crucial third step of this process.”

 

”Besins has developed substantial
pre-clinical and clinical data that we intend to utilize to advance the Afimoxifene Gel, to be used in conjunction with our devices
and laboratory tests. We intend to secure a manufacturing source for a clinical supply of Afimoxifene Gel and to advance the clinical
development into a Phase II clinical trial using our proprietary devices, laboratory tests and the Afimoxifene Gel. Besins is a
recognized leader in the development and commercialization of hormone therapies and we believe their proprietary Afimoxifene Gel
may, in conjunction with our breast aspirator devices and cytology tests, be developed as a local treatment for hyperplasia,”
commented Dr. Quay.

 

Leslie Grunfeld, CEO of Besins Healthcare, commented, “
Besins Healthcare has spent a number of years developing and advancing Afimoxifene Gel. We are pleased that Atossa, who are focused
on breast health, will continue the development for the treatment of local hyperplasia in conjunction with their existing technology.
Various studies have shown that Afimoxifene Gel could be effective for other related indications and we are hopeful to be able
to develop these in the future”.

 

    	56

    	CONFIDENTIAL

    

 

Key terms of the license are:

 

		·	Exclusive world-wide rights to develop and commercialize Afimoxifene
Gel for the potential treatment and prevention of hyperplasia of the breast.

 

		·	No upfront or milestone payments to Besins.

 

		·	Royalty of 8% - 9% of net sales for the first 15 years of commercialization.

 

		·	Atossa has the non-exclusive right to also develop Afimoxifene Gel
for breast cancer and other breast diseases (subject to milestone payments for these additional indications).

 

		·	Atossa obtains access to Besins’ pre-clinical and clinical studies
and data for the treatment of breast pain with Afimoxifene Gel, which include animal, toxicity, and clinical trials with 144 patients.
Results from additional 82 patients have been published from pre-surgical studies in invasive breast cancer and ductal carcinoma
in situ, or DCIS, conducted respectively in France and the United States. Across all indications, over 450 patients have been treated
with Afimoxifene Gel. 

 

		·	Besins has the right of first refusal to commercialize the Afimoxifene
Gel on a country-by-country basis in countries where they have a marketing presence.

 

“One of our four key objectives for
2015 is to commence a clinical study using a local therapy to treat a serious breast health condition. This new exclusive license
arrangement with Besins significantly advances this key objective,” continued Dr. Quay.

 

About Atossa Genetics

 

Atossa Genetics Inc. is focused on improving
breast health through the development of laboratory services, medical devices and therapeutics. The laboratory services are being
developed by its subsidiary, The National Reference Laboratory for Breast Health, Inc. The laboratory services and the Company's
medical devices are being developed so they can be used as companions to therapeutics to treat various breast health conditions.
For more information, please visit www.atossagenetics.com.

 

About Besins Healthcare

 

Besins Healthcare is a privately owned pharmaceutical
company specialized in the development and worldwide diffusion of innovative drugs for the well-being of men and women throughout
their lives. Over the last 30 years Besins Healthcare has established a strong and reputable name in the production of innovative
drugs for the treatment of gynecological, fertility and obstetrical conditions as well as androgen deficiency.

 

    	57

    	CONFIDENTIAL

    

 

Besins has become a renowned player in the area of hormonal
therapies. Innovative products from Besins Healthcare are distributed in more than 90 countries around the world through subsidiary
companies as well as a network of business partners.

 

About Afimoxifene and Afimoxifene Gel

 

Afimoxifene (4-hydroxytamoxifen), an active
metabolite of tamoxifen, is an anti-estrogen with an affinity for estrogen receptor that is up to 50 fold higher compared with
that of tamoxifen. Afimoxifene Gel is a proprietary transdermal gel formulation of Afimoxifene protected by 10 patent families.
It can be dispensed from a convenient metered-dose container. Besins has completed a comprehensive preclinical pharmacology and
toxicology package on Afimoxifene Gel and its manufacturing CMC package is expected to be sufficient to support Atossa’s
Phase 3 Program. A total of 16 Phase-1 and -2 studies have been conducted in a variety of indications in the United States, United
Kingdom, France, Poland, and Czech Republic. These studies enrolled over 450 patients total, and results were published in leading
medical journals such as the Journal of Clinical Oncology (J Clin Oncol 2005;23:2980-87), Clinical Cancer Research (Clin
Cancer Res 2014;20:3672-82), and Breast Cancer Research and Treatment (Breast Cancer Res Treat 2007;106:389-97).
Systemic distribution of topically delivered Afimoxifene Gel was minimal with little difference in adverse events between Afimoxifene
Gel and placebo. The occurrence of hot flushes or night sweats, vaginal dryness, vaginal bleeding, and nipple discharge were similar
between the treatment arm and placebo.

 

Forward-Looking Statements

 

Forward-looking statements in this press
release are subject to risks and uncertainties that may cause actual results to differ materially from the anticipated or estimated
future results, including the risks and uncertainties associated with actions by the FDA, the outcome or timing of regulatory approvals
needed by Atossa to sell its products, responses to regulatory matters, Atossa's ability to achieve its objectives, continue to
manufacture and sell its products, recalls of products, the safety and efficacy of Atossa's products and services, performance
of distributors, whether Atossa can launch and commercialize in the United States and foreign markets the additional tests, devices
and therapeutics in its pipeline in a timely and cost effective manner, and other risks detailed from time to time in Atossa's
filings with the Securities and Exchange Commission, including without limitation its periodic reports on Form 10-K and 10-Q, each
as amended and supplemented from time to time. Atossa does not undertake any obligation to update any forward looking statement.

 

    	58

    	CONFIDENTIAL

    

 

Contact:

 

	Atossa Genetics, Inc.:	 
	 	 	 
	 	Steven C. Quay, Ph.D., M.D.	 
	 	Chief Executive Officer and President	 
	 	(O) 800-351-3902	 
	 	 	 
	 	Kyle Guse	 
	 	CFO and General Counsel	 
	 	(O) 800-351-3902	 
	 	 	 
	 	Investor Relations:	 
	 	CorProminence LLC	 
	 	Scott Gordon	 
	 	President	 
	 	516-222-2560	 
	 	scottg@corprominence.com	 
	 	 	 
	Besins:	 
	 	 	 
	Leslie Grunfeld	 
	 	 	 
	CEO	 	 
	 	 	 
	(O) +377 97 98 32 38	 

 

    	59EX-10.4

 Exhibit 10.4 

2015 STOCK INCENTIVE PLAN 

APPFOLIO, INC. 

 APPFOLIO, INC. 

2015 STOCK INCENTIVE PLAN 

As adopted by the Board of Directors on May 13, 2015 

ARTICLE 1 
 PURPOSES OF
THE PLAN; TERM 
 1.1 Purposes. The purposes of the Plan are (a) to enhance the Company’s ability to attract and retain
the services of qualified employees, officers, directors, consultants and other service providers upon whose judgment, initiative and efforts the successful conduct and development of the Company’s business largely depends and (b) to
provide additional incentives to such persons or entities to devote their utmost effort and skill to the advancement and betterment of the Company, by providing them an opportunity to participate in the ownership of the Company and thereby have an
interest in the success and increased value of the Company. 
 1.2 Term. Unless earlier terminated as provided herein, this Plan will
become effective on the Effective Date and will terminate ten (10) years from the date this Plan is adopted by the Board. 
 ARTICLE
2 
 DEFINITIONS 

For purposes of this Plan, terms not otherwise defined herein will have the meanings indicated below: 

2.1 “Affiliate” means (i) any entity that, directly or indirectly, is controlled by, controls or is under
common control with, the Company and (ii) any entity in which the Company has a significant equity interest, in either case as determined by the Committee, whether now or hereafter existing. 

2.2 “Award” means any award under the Plan, including any Option, Restricted Stock, Stock Bonus, Stock
Appreciation Right, Restricted Stock Unit or Performance Awards. 
 2.3 “Award Agreement” means, with respect
to each Award, the written or electronic agreement between the Company and the Participant setting forth the terms and conditions of the Award, and country-specific appendix thereto for grants to non-U.S. Participants, which will be in substantially
a form (which need not be the same for each Participant) that the Committee (or in the case of Award agreements that are not used for Insiders, the Committee’s delegate(s)) has from time to time approved, and will comply with and be subject to
the terms and conditions of this Plan. 
 2.4 “Award Transfer Program” means any program instituted by the
Committee which would permit Participants the opportunity to transfer any outstanding Awards to a financial institution or other person or entity approved by the Committee. 

2.5 “Board” means the Board of Directors of the Company. 

 2.6 “Cause” means termination of Service because of (a) any
willful, material violation by the Participant of any law or regulation applicable to the business of the Company or a Parent, Subsidiary or Affiliate of the Company, the Participant’s conviction for or guilty plea to a felony or a crime
involving moral turpitude or any willful perpetration by the Participant of a common law fraud; (b) the Participant’s commission of an act of personal dishonesty which involves personal profit in connection with the Company or any other
entity having a business relationship with the Company; (c) any material breach by the Participant of any provision of any agreement or understanding between the Company or any Parent, Subsidiary or Affiliate of the Company and the Participant
regarding the terms of the Participant’s Service, including the willful and continued failure or refusal of the Participant to perform the material duties required of such Participant as an Employee, Officer, Director, Non-Employee Director or
Consultant of the Company or a Parent, Subsidiary or Affiliate of the Company, other than as a result of having a Disability or a breach of any applicable invention assignment and confidentiality agreement or similar agreement between the Company or
a Parent, Subsidiary or Affiliate of the Company and the Participant; (d) Participant’s disregard of the policies of the Company or any Parent, Subsidiary or Affiliate of the Company so as to cause loss, damage or injury to the property,
reputation or employees of the Company or a Parent, Subsidiary or Affiliate of the Company or (e) any other misconduct by the Participant which is materially injurious to the financial condition or business reputation of or is otherwise
materially injurious to the Company or a Parent, Subsidiary or Affiliate of the Company. The determination as to whether a Participant is being terminated for Cause will be made in good faith by the Company and will be final and binding on the
Participant. The foregoing definition does not in any way limit the Company’s ability to terminate a Participant’s employment or consulting relationship at any time as provided in Section 13.12, and the term “Company” will
be interpreted to include any Affiliate, Subsidiary or Parent, as appropriate. Notwithstanding the foregoing, the foregoing definition of “Cause” may, in part or in whole, be modified or replaced in each individual employment agreement or
Award Agreement with any Participant, provided that such document supersedes the definition provided in this Section 2.6. 
 2.7
“Class A Common Stock” means the Class A Common Stock, par value $0.0001 per share, of the Company. 

2.8 “Code” means the United States Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder. 
 2.9 “Committee” means the Compensation Committee of the Board or those persons to whom
administration of the Plan or part of the Plan has been delegated as permitted by law. 
 2.10 “Company”
means AppFolio, Inc. or any successor corporation. 
 2.11 “Consultant” means any natural person, including
an advisor or independent contractor, engaged by the Company or a Parent, Subsidiary or Affiliate to render services to such entity. 

2.12 “Corporate Transaction” means the occurrence of any of the following events: (a) any
“Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more
than fifty percent (50%) of the total voting power represented by the Company’s then-outstanding voting securities; provided, however, that for purposes of this clause (a) the acquisition of additional securities by any one Person who
is 

  
 2 

 
considered to own more than fifty percent (50%) of the total voting power of the securities of the Company will not be considered a Corporate Transaction; (b) the consummation of the
sale or disposition by the Company of all or substantially all of the Company’s assets; (c) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent
(50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; (d) any other transaction which qualifies as a
“corporate transaction” under Section 424(a) of the Code wherein the stockholders of the Company give up all of their equity interest in the Company (except for the acquisition, sale or transfer of all or substantially all of the
outstanding shares of the Company) or (e) a change in the effective control of the Company that occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by member of the Board whose
appointment or election is not endorsed by as majority of the members of the Board prior to the date of the appointment or election; provided, however, that for purposes of this clause (e), if any Person is considered to be in effective control of
the Company, the acquisition of additional control of the Company by the same Person will not be considered a Corporate Transaction. For purposes of this definition, Persons will be considered to be acting as a group if they are owners of a
corporation that enters into a merger, consolidation, purchase or acquisition of stock or similar business transaction with the Company. Notwithstanding the foregoing, to the extent that any amount constituting deferred compensation (as defined in
Section 409A of the Code) would become payable under this Plan by reason of a Corporate Transaction, such amount will become payable only if the event constituting a Corporate Transaction would also qualify as a change in ownership or effective
control of the Company or a change in the ownership of a substantial portion of the assets of the Company, each as defined within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final
Treasury Regulations and IRS guidance that has been promulgated or may be promulgated thereunder from time to time. 
 2.13
“Director” means a member of the Board. 
 2.14 “Disability” means in the case of
incentive stock options, total and permanent disability as defined in Section 22(e)(3) of the Code and in the case of other Awards, that the Participant is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. 

2.15 “Dividend Equivalent Right” means the right of a Participant, granted at the discretion of the Committee
or as otherwise provided by the Plan, to receive a credit for the account of such Participant in an amount equal to the cash, stock or other property dividends in amounts equal equivalent to cash, stock or other property dividends for each Share
represented by an Award held by such Participant. 
 2.16 “Effective Date” means the business day immediately
prior to the IPO Effective Date. 
 2.17 “Employee” means any person, including Officers and Directors,
providing services as an employee to the Company or any Parent, Subsidiary or Affiliate. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company. 

  
 3 

 2.18 “Exchange Act” means the United States Securities Exchange
Act of 1934, as amended. 
 2.19 “Exchange Program” means a program pursuant to which (a) outstanding
Awards are surrendered, cancelled or exchanged for cash, the same type of Award or a different Award (or combination thereof) or (b) the exercise price of an outstanding Award is increased or reduced. 

2.20 “Exercise Price” means, with respect to an Option, the price at which a holder may purchase the Shares
issuable upon exercise of an Option and with respect to a SAR, the price at which the SAR is granted to the holder thereof. 
 2.21
“Fair Market Value” means, as of any date, the value of a share of the Company’s Class A Common Stock determined as follows: (a) if such Class A Common Stock is publicly traded and is then listed on a
national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Class A Common Stock is listed or admitted to trading as reported in The Wall Street Journal or such other
source as the Committee deems reliable; (b) if such Class A Common Stock is publicly traded but is neither listed nor admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of
determination as reported in The Wall Street Journal or such other source as the Committee deems reliable or (c) if none of the foregoing is applicable, by the Board or the Committee in good faith using any reasonable method of evaluation in a
manner consistent with the valuation principles under Section 409A of the Code. 
 2.22 “Insider” means
an officer or director of the Company or any other person whose transactions in the Company’s Class A Common Stock are subject to Section 16 of the Exchange Act. 

2.23 “IPO Effective Date” means the date on which the underwritten initial public offering of the
Company’s Class A Common Stock pursuant to a registration statement is declared effective by the SEC. 
 2.24
“IRS” means the United States Internal Revenue Service. 
 2.25 “Non-Employee
Director” means a Director who is not an Employee of the Company or any Parent or Subsidiary. 
 2.26
“Option” means an award of an option to purchase Shares pursuant to Article 4 or Article 10. 
 2.27
“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company if each of such corporations other than the Company owns stock possessing fifty percent (50%) or
more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
 2.28
“Participant” means a person who holds an Award under this Plan. 

  
 4 

 2.29 “Performance Award” means cash or stock granted pursuant to
Article 9 or Article 10. 
 2.30 “Performance Factors” means any of the factors selected by the
Committee and specified in an Award Agreement, from among the following objective measures, either individually, alternatively or in any combination, applied to the Company as a whole or any business unit or Subsidiary, either individually,
alternatively or in any combination, on a GAAP or non-GAAP basis, and measured, to the extent applicable on an absolute basis or relative to a pre-established target, to determine whether the performance goals established by the Committee with
respect to applicable Awards have been satisfied: (a) profit before tax; (b) billings; (c) revenue; (d) net revenue; (e) earnings (which may include earnings before interest and taxes, earnings before taxes and net
earnings); (f) operating income; (g) operating margin; (h) operating profit; (i) controllable operating profit; (j) net operating profit; (k) net profit; (l) gross margin; (m) operating expenses or operating
expenses as a percentage of revenue; (n) net income; (o) earnings per share; (p) total stockholder return; (q) market share; (r) return on assets or net assets; (s) the Company’s stock price; (t) growth in
stockholder value relative to a pre-determined index; (u) return on equity; (v) return on invested capital; (w) cash flow (including free cash flow or operating cash flows); (x) cash conversion cycle; (y) economic value
added; (z) individual confidential business objectives; (aa) contract awards or backlog; (bb) overhead or other expense reduction; (cc) credit rating; (dd) strategic plan development and implementation; (ee) succession
plan development and implementation; (ff) improvement in workforce diversity; (gg) customer indicators; (hh) new product invention or innovation; (ii) attainment of research and development milestones; (jj) improvements in
productivity; (kk) bookings; (ll) attainment of objective operating goals and employee metrics and (mm) any other metric that is capable of measurement as determined by the Committee. The Committee may, in recognition of unusual or
non-recurring items such as acquisition-related activities or changes in applicable accounting rules, provide for one or more equitable adjustments (based on objective standards) to the Performance Factors to preserve the Committee’s original
intent regarding the Performance Factors at the time of the initial award grant. It is within the sole discretion of the Committee to make or not make any such equitable adjustments. 

2.31 “Performance Period” means the period of service determined by the Committee, not to exceed five
(5) years, during which years of service or performance is to be measured for the Award. 
 2.32 “Performance
Share” means an Award granted pursuant to Article 9 or Article 10. 
 2.33 “Permitted
Transferee” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law (including
adoptive relationships) of the Employee, any person sharing the Employee’s household (other than a tenant or employee), a trust in which these persons (or the Employee) have more than 50% of the beneficial interest, a foundation in which these
persons (or the Employee) control the management of assets, and any other entity in which these persons (or the Employee) own more than 50% of the voting interests. 

2.34 “Plan” means this AppFolio, Inc. 2015 Stock Incentive Plan. 

2.35 “Purchase Price” means the price to be paid for Shares acquired under the Plan, other than Shares acquired
upon exercise of an Option or SAR. 

  
 5 

 2.36 “Restricted Stock Award” means an award of Shares pursuant to
Article 5 or Article 10 or issued pursuant to the early exercise of an Option. 
 2.37 “Restricted Stock
Unit” means an Award granted pursuant to Article 8 or Article 10. 
 2.38 “SEC” means
the United States Securities and Exchange Commission. 
 2.39 “Securities Act” means the United States
Securities Act of 1933, as amended. 
 2.40 “Service” means service as an Employee, Consultant, Director or
Non-Employee Director, to the Company or a Parent, Subsidiary or Affiliate, subject to such further limitations as may be set forth in the Plan or the applicable Award Agreement. An Employee will not be deemed to have ceased to provide Service in
the case of (a) sick leave; (b) military leave or (c) any other leave of absence approved by the Company; provided, that such leave is for a period of not more than 90 days (x) unless reemployment upon the expiration of such
leave is guaranteed by contract or statute or (y) unless provided otherwise pursuant to formal policy adopted from time to time by the Company and issued and promulgated to employees in writing. In the case of any Employee on an approved leave
of absence or a reduction in hours worked (for illustrative purposes only, a change in schedule from that of full-time to part-time), the Committee may make such provisions respecting suspension of or modification of vesting of the Award while on
leave from the employ of the Company or a Parent, Subsidiary or Affiliate or during such change in working hours as it may deem appropriate, except that in no event may an Award be exercised after the expiration of the term set forth in the
applicable Award Agreement. In the event of military leave, if required by applicable laws, vesting will continue for the longest period that vesting continues under any other statutory or Company approved leave of absence and, upon a
Participant’s returning from military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she will be given vesting credit with respect
to Awards to the same extent as would have applied had the Participant continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave. An employee will have
terminated employment as of the date he or she ceases provide services (regardless of whether the termination is in breach of local employment laws or is later found to be invalid) and employment will not be extended by any notice period or garden
leave mandated by local law, provided however, that a change in status from an employee to a consultant or advisor will not terminate the service provider’s Service, unless determined by the Committee, in its discretion. The Committee will have
sole discretion to determine whether a Participant has ceased to provide Services and the effective date on which the Participant ceased to provide Services. 

2.41 “Shares” means shares of the Company’s Class A Common Stock and the common stock of any
successor entity. 
 2.42 “Stock Appreciation Right” means an Award granted pursuant to Article 7 or
Article 10. 
 2.43 “Stock Bonus” means an Award granted pursuant to Article 6 or Article 10.

 2.44 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 

  
 6 

 2.45 “Treasury Regulations” means regulations promulgated by the
United States Treasury Department. 
 2.46 “Unvested Shares” means Shares that have not yet vested or are
subject to a right of repurchase in favor of the Company (or any successor thereto). 
 ARTICLE 3 

PLAN SHARES 
 3.1
Number of Shares Available. Subject to Sections 3.4 and 3.6 and Article 12 and any other applicable provisions hereof, the total number of Shares reserved and available for grant and issuance pursuant to this Plan as of the date of adoption
of the Plan by the Board, is 8,000,000 Shares. 
 3.2 Lapsed, Returned Awards. Shares subject to Awards, and Shares issued under the
Plan under any Award, will again be available for grant and issuance in connection with subsequent Awards under this Plan to the extent such Shares: (a) are subject to issuance upon exercise of an Option or SAR granted under this Plan but which
cease to be subject to the Option or SAR for any reason other than exercise of the Option or SAR; (b) are subject to Awards granted under this Plan that are forfeited or are repurchased by the Company at the original issue price; (c) are
subject to Awards granted under this Plan that otherwise terminate without such Shares being issued or (d) are surrendered pursuant to an Exchange Program. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash
payment will not result in reducing the number of Shares available for issuance under the Plan. Shares used to pay the exercise price of an Award or withheld to satisfy the tax withholding obligations related to an Award will become available for
future grant or sale under the Plan. 
 3.3 Minimum Share Reserve. At all times the Company will reserve and keep available a
sufficient number of Shares as will be required to satisfy the requirements of all outstanding Awards granted under this Plan. 
 3.4
Automatic Share Reserve Increase. The number of Shares available for grant and issuance under the Plan shall be increased on January 1, of each calendar year, by the lesser of (a) the number of Shares subject to Awards granted during
the preceding calendar year and (b) such lesser number of Shares determined by the Board. 
 3.5 Limitations; Eligibility. No
more than 20,000,000 Shares will be issued pursuant to the exercise of ISOs. ISOs may be granted only to Employees. All other Awards may be granted to Employees, Consultants, Directors and Non-Employee Directors; provided such Consultants, Directors
and Non-Employee Directors render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction. No Participant will be eligible to receive an Award or Awards for more than 2,000,000 Shares in any
calendar year under this Plan except that new Employees of the Company or of a Parent or Subsidiary of the Company are eligible to be granted up to a maximum of an Award or Awards for 3,000,000 Shares in the calendar year in which they commence
their employment. 

  
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 3.6 Adjustment of Shares. If the number of outstanding Shares is changed by a stock
dividend, extraordinary dividends or distributions (whether in cash, shares or other property, other than a regular cash dividend) recapitalization, stock split, reverse stock split, subdivision, combination, reclassification, spin-off or similar
change in the capital structure of the Company, then (a) the number of Shares reserved for issuance and future grant under the Plan set forth in Section 3.1, (b) the Exercise Prices of and number of Shares subject to outstanding
Options and SARs; (c) the number of Shares subject to other outstanding Awards; (d) the maximum number of shares that may be issued as ISOs or other Awards set forth in Section 3.5; (e) the maximum number of Shares that may be
issued to an individual or to a new Employee in any one calendar year set forth in Section 3.5 and (f) the number of Shares that may be granted as Awards to Non-Employee Directors as set forth in Article 10, will be proportionately
adjusted, subject to any required action by the Board or the stockholders of the Company and in compliance with applicable securities laws, provided that fractions of a Share will not be issued. 

ARTICLE 4 
 OPTIONS

 4.1 Options. An Option is the right but not the obligation to purchase a Share, subject to certain conditions, if applicable.
The Committee may grant Options to eligible Employees, Consultants and Directors and will determine whether such Options will be Incentive Stock Options within the meaning of the Code (“ISOs”) or Nonqualified Stock Options
(“NSOs”), the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may vest and be exercised, and all other terms and conditions of the Option, subject to the following
terms of this Section 4.1. 
 4.2 Option Grant. Each Option granted under this Plan will identify the Option as an ISO or an
NSO. An Option may be, but need not be, awarded upon satisfaction of such Performance Factors during any Performance Period as are set out in advance in the Participant’s individual Award Agreement. If the Option is being earned upon the
satisfaction of Performance Factors, then the Committee will: (a) determine the nature, length and starting date of any Performance Period for each Option and (b) select from among the Performance Factors to be used to measure the
performance, if any. Performance Periods may overlap and Participants may participate simultaneously with respect to Options that are subject to different performance goals and other criteria. 

4.3 Date of Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant such Option
or a specified future date. The Award Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after the granting of the Option. 

4.4 Exercise Period. Options may be vested and exercisable within the times or upon the conditions as set forth in the Award Agreement
governing such Option; provided, however, that no Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and provided further that no ISO granted to a person who, at the time the ISO is granted,
directly or by attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Parent or Subsidiary of the Company (“Ten Percent Stockholder”) will be
exercisable after the expiration of five (5) years from the date the ISO is granted. The Committee also may provide for Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or
percentage of Shares as the Committee determines. 

  
 8 

 4.5 Exercise Price. The Exercise Price of an Option will be determined by the Committee
when the Option is granted, provided that (a) the Exercise Price of an Option will be not less than one hundred percent (100%) of the Fair Market Value of the Shares on the date of grant and (b) the Exercise Price of any ISO granted
to a Ten Percent Stockholder will not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with Section 13.1 and the Award
Agreement and in accordance with any procedures established by the Company. 
 4.6 Method of Exercise. Any Option granted hereunder
will be vested and exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Committee and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. An Option
will be deemed exercised when the Company receives: (a) notice of exercise (in such form as the Committee may specify from time to time) from the person entitled to exercise the Option (and/or via electronic execution through the authorized
third party administrator) and (b) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes). Full payment may consist of any consideration and method of payment authorized by the
Committee and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of
a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares, notwithstanding the exercise of the Option. The Company will issue (or cause to be
issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 3.6. Exercising an Option
in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 

4.7 Termination of Service. If the Participant’s Service terminates for any reason except for Cause or the Participant’s
death or Disability, then the Participant may exercise such Participant’s Options only to the extent that such Options would have been exercisable by the Participant on the date Participant’s Service terminates no later than three
(3) months after the date Participant’s Service terminates (or such shorter or longer time period as may be determined by the Committee, with any exercise beyond three (3) months after the date Participant’s Service terminates
deemed to be the exercise of an NSO), but in any event no later than the expiration date of the Options. If the Participant’s Service terminates because of the Participant’s death (or the Participant dies within three (3) months after
Participant’s Service terminates other than for Cause or because of the Participant’s Disability), then the Participant’s Options may be exercised only to the extent that such Options would have been exercisable by the Participant on
the date Participant’s Service terminates and must be exercised by the Participant’s legal representative or authorized assignee no later than twelve (12) months after the date Participant’s Service terminates (or such shorter
time period or longer time period as may be determined by the Committee), but in any event no later than the expiration date of the Options. If the Participant’s Service terminates because of the Participant’s Disability, then the
Participant’s Options may be exercised only to the extent that such Options would have been exercisable by the Participant on the date Participant’s Service terminates and must be exercised by the Participant (or the Participant’s
legal representative or authorized assignee) no later than twelve (12) months after the date Participant’s Service terminates (or such shorter or longer 

  
 9 

 
time period as may be determined by the Committee, with any exercise beyond (a) three (3) months after the date Participant’s Service terminates when the termination of Service is
for a Disability that is not a “permanent and total disability” as defined in Section 22(e)(3) of the Code or (b) twelve (12) months after the date Participant’s Service terminates when the termination of Service is for
a Disability that is a “permanent and total disability” as defined in Section 22(e)(3) of the Code, deemed to be exercise of an NSO), but in any event no later than the expiration date of the Options. If the Participant is terminated
for Cause, then Participant’s Options will expire on such Participant’s date of termination of Service or at such later time and on such conditions as are determined by the Committee, but in any no event later than the expiration date of
the Options. Unless otherwise provided in the Award Agreement, Cause will have the meaning set forth in the Plan. 
 4.8 Limitations on
Exercise. The Committee may specify a minimum number of Shares that may be purchased on any exercise of an Option, provided that such minimum number will not prevent any Participant from exercising the Option for the full number of Shares for
which it is then exercisable. 
 4.9 Limitations on ISOs. With respect to Awards granted as ISOs, to the extent that the aggregate
Fair Market Value of the Shares with respect to which such ISOs are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars
($100,000), such Options will be treated as NSOs. For purposes of this Section 4.9, ISOs will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with
respect to such Shares is granted. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISOs, such
different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment. 

4.10 Modification, Extension or Renewal. The Committee may modify, extend or renew outstanding Options and authorize the grant of new
Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such Participant’s rights under any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to Section 13.9, by written notice to affected Participants, the Committee may reduce the Exercise Price of outstanding Options without the
consent of such Participants; provided, however, that the Exercise Price may not be reduced below the Fair Market Value on the date the action is taken to reduce the Exercise Price. 

4.11 No Disqualification. Notwithstanding any other provision in this Plan, no term of this Plan relating to ISOs will be interpreted,
amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code. 
 ARTICLE 5 

RESTRICTED STOCK AWARDS 

5.1 Restricted Stock Awards. A Restricted Stock Award is an offer by the Company to sell to an eligible Employee, Consultant or
Director Shares that are subject to restrictions (“Restricted Stock”). The Committee will determine to whom an offer will be made, the number of Shares the Participant may purchase, the Purchase Price, the restrictions under
which the Shares will be subject and all other terms and conditions of the Restricted Stock Award, subject to the Plan. 

  
 10 

 5.2 Restricted Stock Purchase Agreement. All purchases under a Restricted Stock Award will
be evidenced by an Award Agreement. Except as may otherwise be provided in an Award Agreement, a Participant accepts a Restricted Stock Award by signing and delivering to the Company an Award Agreement with full payment of the Purchase Price, within
thirty (30) days from the date the Award Agreement was delivered to the Participant. If the Participant does not accept such Award within thirty (30) days, then the offer of such Restricted Stock Award will terminate, unless the Committee
determines otherwise. 
 5.3 Purchase Price. The Purchase Price for a Restricted Stock Award will be determined by the Committee and
may be less than Fair Market Value on the date the Restricted Stock Award is granted. Payment of the Purchase Price must be made in accordance with Section 13.1, the Award Agreement and any procedures established by the Company. 

5.4 Terms of Restricted Stock Awards. Restricted Stock Awards will be subject to such restrictions as the Committee may impose or are
required by law. These restrictions may be based on completion of a specified number of years of service with the Company or upon completion of Performance Factors, if any, during any Performance Period as set out in advance in the
Participant’s Award Agreement. Prior to the grant of a Restricted Stock Award, the Committee will: (a) determine the nature, length and starting date of any Performance Period for the Restricted Stock Award; (b) select from among the
Performance Factors to be used to measure performance goals, if any and (c) determine the number of Shares that may be awarded to the Participant. Performance Periods may overlap and a Participant may participate simultaneously with respect to
Restricted Stock Awards that are subject to different Performance Periods and having different performance goals and other criteria. 

5.5 Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such date
Participant’s Service terminates (unless determined otherwise by the Committee). 
 ARTICLE 6 

STOCK BONUS AWARDS 

6.1 Stock Bonus Awards. A Stock Bonus Award is an award to an eligible Employee, Consultant or Director of Shares for Services to be
rendered or for past Services already rendered to the Company or any Parent or Subsidiary. All Stock Bonus Awards will be made pursuant to an Award Agreement. No payment from the Participant will be required for Shares awarded pursuant to a Stock
Bonus Award. 
 6.2 Terms of Stock Bonus Awards. The Committee will determine the number of Shares to be awarded to the Participant
under a Stock Bonus Award and any restrictions thereon. These restrictions may be based upon completion of a specified number of years of service with the Company or upon satisfaction of performance goals based on Performance Factors during any
Performance Period as set out in advance in the Participant’s Stock Bonus Agreement. Prior to the grant of any Stock Bonus Award the Committee will: (a) determine the nature, length and starting date of any Performance Period for the Stock
Bonus Award; (b) select from among the Performance 

  
 11 

 
Factors to be used to measure performance goals and (c) determine the number of Shares that may be awarded to the Participant. Performance Periods may overlap and a Participant may
participate simultaneously with respect to Stock Bonus Awards that are subject to different Performance Periods and different performance goals and other criteria. 

6.3 Form of Payment to Participant. Payment may be made in the form of cash, whole Shares or a combination thereof, based on the Fair
Market Value of the Shares earned under a Stock Bonus Award on the date of payment, as determined in the sole discretion of the Committee. 

6.4 Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such date
Participant’s Service terminates (unless determined otherwise by the Committee). 
 ARTICLE 7 

STOCK APPRECIATION RIGHTS 

7.1 Stock Appreciation Rights. A Stock Appreciation Right (“SAR”) is an award to an eligible Employee,
Consultant or Director that may be settled in cash or Shares (which may consist of Restricted Stock) having a value equal to (a) the difference between the Fair Market Value on the date of exercise over the Exercise Price multiplied by
(b) the number of Shares with respect to which the SAR is being settled (subject to any maximum number of Shares that may be issuable as specified in an Award Agreement). All SARs will be made pursuant to an Award Agreement. 

7.2 Terms of SARs. The Committee will determine the terms of each SAR, including: (a) the number of Shares subject to the SAR;
(b) the Exercise Price and the time or times during which the SAR may be settled; (c) the consideration to be distributed on settlement of the SAR and (d) the effect of the Participant’s termination of Service on each SAR. The
Exercise Price of the SAR will be determined by the Committee when the SAR is granted, and may not be less than Fair Market Value. A SAR may be awarded upon satisfaction of Performance Factors, if any, during any Performance Period as are set out in
advance in the Participant’s individual Award Agreement. If the SAR is being earned upon the satisfaction of Performance Factors, then the Committee will: (x) determine the nature, length and starting date of any Performance Period for
each SAR and (y) select from among the Performance Factors to be used to measure the performance, if any. Performance Periods may overlap and Participants may participate simultaneously with respect to SARs that are subject to different
Performance Factors and other criteria. 
 7.3 Exercise Period and Expiration Date. A SAR will be exercisable within the times or
upon the occurrence of events determined by the Committee and set forth in the Award Agreement governing such SAR. The SAR Agreement will set forth the expiration date; provided that no SAR will be exercisable after the expiration of ten
(10) years from the date the SAR is granted. The Committee may also provide for SARs to become exercisable at one time or from time to time, periodically or otherwise (including upon the attainment during a Performance Period of performance
goals based on Performance Factors), in such number of Shares or percentage of the Shares subject to the SAR as the Committee determines. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on the date
Participant’s Service terminates (unless determined otherwise by the Committee). Notwithstanding the foregoing, the rules of Section 4.7 also will apply to SARs. 

  
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 7.4 Form of Settlement. Upon exercise of a SAR, a Participant will be entitled to receive
payment from the Company in an amount determined by multiplying (a) the difference between the Fair Market Value of a Share on the date of exercise over the Exercise Price; times (b) the number of Shares with respect to which the SAR is
exercised. At the discretion of the Committee, the payment from the Company for the SAR exercise may be in cash, in Shares of equivalent value or in some combination thereof. The portion of a SAR being settled may be paid currently or on a deferred
basis with such interest or dividend equivalent, if any, as the Committee determines, provided that the terms of the SAR and any deferral satisfy the requirements of Section 409A of the Code. 

7.5 Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such date
Participant’s Service terminates (unless determined otherwise by the Committee). 
 ARTICLE 8 

RESTRICTED STOCK UNITS 

8.1 Restricted Stock Units. A Restricted Stock Unit (“RSU”) is an award to an eligible Employee, Consultant or
Director covering a number of Shares that may be settled in cash and/or by issuance of Shares (which may consist of Restricted Stock). All RSUs will be made pursuant to an Award Agreement. 

8.2 Terms of RSUs. The Committee will determine the terms of an RSU including: (a) the number of Shares subject to the RSU;
(b) the time or times during which the RSU may be settled; (c) the amount (including any minimum amount), nature (which may include cash, Shares or a combination of both) and valuation of the consideration to be paid or distributed on
settlement; (d) the effect of the Participant’s termination of Service on each RSU; and (e) such other terms as the Committee may determine. An RSU may be awarded upon satisfaction of such performance goals based on Performance
Factors during any Performance Period as are set out in advance in the Participant’s Award Agreement. If the RSU is being earned upon satisfaction of Performance Factors, then the Committee will: (x) determine the nature, length and
starting date of any Performance Period for the RSU; (y) select from among the Performance Factors to be used to measure the performance, if any and (z) determine the number of Shares deemed subject to the RSU. Performance Periods may
overlap and participants may participate simultaneously with respect to RSUs that are subject to different Performance Periods and different performance goals and other criteria. 

8.3 Timing of Settlement. Payment of earned RSUs will be made as soon as practicable after the date(s) determined by the Committee and
set forth in the Award Agreement. The Committee may permit a Participant to defer payment under a RSU to a date or dates after the RSU is earned provided that the terms of the RSU and any deferral satisfy the requirements of Section 409A of the
Code. 
 8.4 Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such
date Participant’s Service terminates (unless determined otherwise by the Committee). 

  
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 ARTICLE 9 

PERFORMANCE AWARDS 

9.1 Performance Awards. A Performance Award is an award to an eligible Employee, Consultant or Director of a cash bonus or an award of
Performance Shares denominated in Shares that may be settled in cash or by issuance of those Shares (which may consist of Restricted Stock). Grants of Performance Awards will be made pursuant to an Award Agreement. 

9.2 Terms of Performance Shares. The Committee will determine, and each Award Agreement will set forth, the terms of each Performance
Award including: (a) the amount of any cash bonus; (b) the number of Shares deemed subject to an award of Performance Shares; (c) the Performance Factors and Performance Period that will determine the time and extent to which each
award of Performance Shares will be settled; (d) the consideration to be distributed on settlement and (e) the effect of the Participant’s termination of Service on each Performance Award. In establishing Performance Factors and the
Performance Period the Committee will: (x) determine the nature, length and starting date of any Performance Period; (y) select from among the Performance Factors to be used and (z) determine the number of Shares deemed subject to the
award of Performance Shares. Prior to settlement the Committee will determine the extent to which Performance Awards have been earned. Performance Periods may overlap and Participants may participate simultaneously with respect to Performance Awards
that are subject to different Performance Periods and different performance goals and other criteria. No Participant will be eligible to receive more than $2,000,000 in Performance Awards in any calendar year under this Plan. 

9.3 Value, Earning and Timing of Performance Shares. Each Performance Share will have an initial value equal to the Fair Market Value
of a Share on the date of grant. After the applicable Performance Period has ended, the holder of Performance Shares will be entitled to receive a payout of the number of Performance Shares earned by the Participant over the Performance Period, to
be determined as a function of the extent to which the corresponding Performance Factors or other vesting provisions have been achieved. The Committee, in its sole discretion, may pay earned Performance Shares in the form of cash, in Shares (which
have an aggregate Fair Market Value equal to the value of the earned Performance Shares at the close of the applicable Performance Period) or in a combination thereof. 

9.4 Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on the date
Participant’s Service terminates (unless determined otherwise by the Committee). 
 ARTICLE 10 

GRANTS TO NON-EMPLOYEE DIRECTORS 

10.1 Grants To Non-Employee Directors. Non-Employee Directors are eligible to receive any type of Award offered under this Plan except
ISOs. Awards pursuant to this Article 10 may be automatically made pursuant to policy adopted by the Board or made from time to time as determined in the discretion of the Board. The aggregate number of Shares subject to Awards granted to a
Non-Employee Director pursuant to this Article 10 in any calendar year will not exceed 250,000, provided, however, that this maximum number can later be increased by the Board effective for the calendar year next commencing thereafter without
further stockholder approval. 

  
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 10.2 Eligibility. Awards pursuant to this Article 10 will be granted only to
Non-Employee Directors. A Non-Employee Director who is elected or re-elected as a member of the Board will be eligible to receive an Award under this Article 10. 

10.3 Vesting, Exercisability and Settlement. Except as set forth in Article 12, Awards will vest, become exercisable and be
settled as determined by the Board. With respect to Options and SARs, the exercise price granted to Non-Employee Directors will not be less than the Fair Market Value of the Shares at the time that such Option or SAR is granted. 

10.4 Election to receive Awards in Lieu of Cash. A Non-Employee Director may elect to receive his or her annual retainer payments
and/or meeting fees from the Company in the form of cash or Awards or a combination thereof, as determined by the Committee. Such Awards will be issued under the Plan. An election under this Section 10.4 will be filed with the Company on the
form prescribed by the Company. 
 ARTICLE 11 

ADMINISTRATION OF THE PLAN 

11.1 Committee Composition; Authority. This Plan will be administered by the Committee or by the Board acting as the Committee. Subject
to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan, except, however, the Board will establish the terms for the grant of an Award to
Non-Employee Directors. The Committee will have the authority to: (a) construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan; (b) prescribe, amend and rescind rules and
regulations relating to this Plan or any Award; (c) select persons to receive Awards; (d) determine the form and terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder, including the exercise
price, the time or times when Awards may vest and be exercised (which may be based on performance criteria) or settled, any vesting acceleration or waiver of forfeiture restrictions, the method to satisfy tax withholding obligations or any other tax
liability legally due and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Committee will determine; (e) determine the number of Shares or other consideration subject to
Awards; (f) determine the Fair Market Value in good faith and interpret the applicable provisions of this Plan and the definition of Fair Market Value in connection with circumstances that impact the Fair Market Value, if necessary;
(g) determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of or as alternatives to other Awards under this Plan or any other incentive or compensation plan of the Company or any Parent or
Subsidiary of the Company; (h) grant waivers of Plan or Award conditions; (i) determine the vesting, exercisability and payment of Awards; (j) correct any defect, supply any omission or reconcile any inconsistency in this Plan, any
Award or any Award Agreement; (k) determine whether an Award has been earned; (l) institute any Exchange Program and determine the terms and conditions thereof; (m) reduce or waive any criteria with respect to Performance Factors;
(n) adjust Performance Factors to take into account changes in law and accounting or tax rules as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls
or hardships provided that such adjustments are consistent with the regulations promulgated under Section 162(m) of the Code with respect to persons whose compensation is subject to Section 162(m) of the Code; (o) adopt terms and
conditions, rules and procedures (including the adoption of any sub-plan under this Plan) relating to the operation and administration of the Plan to accommodate 

  
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requirements of local law and procedures outside of the United States; (p) make all other determinations necessary or advisable for the administration of this Plan and (q) delegate any
of the foregoing to one or more officers, each of whom is also a Director, pursuant to a specific delegation as permitted by applicable law, including Section 157(c) of the Delaware General Corporation Law, provided, however, that any such
delegation may only be with respect to Employees who are not Insiders. 
 11.2 Committee Interpretation and Discretion. Any
determination made by the Committee with respect to any Award will be made in its sole discretion at the time of grant of the Award or, unless in contravention of any express term of the Plan or Award, at any later time, and such determination will
be final and binding on the Company and all persons having an interest in any Award under the Plan. Any dispute regarding the interpretation of the Plan or any Award Agreement will be submitted by the Participant or Company to the Committee for
review. The resolution of such a dispute by the Committee will be final and binding on the Company and the Participant. The Committee may delegate to one or more officers, each of whom is also a Director, the authority to review and resolve disputes
with respect to Awards held by Participants who are not Insiders, and such resolution will be final and binding on the Company and the Participant. 

11.3 Section 162(m) of the Code and Section 16 of the Exchange Act. When necessary or desirable for an Award to qualify as
“performance-based compensation” under Section 162(m) of the Code the Committee will include at least two persons who are “outside directors” (as defined under Section 162(m) of the Code) and at least two (or a majority
if more than two then serve on the Committee) such “outside directors” will approve the grant of such Award and timely determine (as applicable) the Performance Period and any Performance Factors upon which vesting or settlement of any
portion of such Award is to be subject. When required by Section 162(m) of the Code, prior to settlement of any such Award at least two (or a majority if more than two then serve on the Committee) such “outside directors” then serving
on the Committee will determine and certify in writing the extent to which such Performance Factors have been timely achieved and the extent to which the Shares subject to such Award have thereby been earned. Awards granted to Participants who are
subject to Section 16 of the Exchange Act must be approved by two or more “non-employee directors” (as defined in the regulations promulgated under Section 16 of the Exchange Act). With respect to Participants whose compensation
is subject to Section 162(m) of the Code, and provided that such adjustments are consistent with the regulations promulgated under Section 162(m) of the Code, the Committee may adjust the performance goals to account for changes in law and
accounting and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships, including (a) restructurings, discontinued
operations, extraordinary items, and other unusual or non-recurring charges; (b) an event either not directly related to the operations of the Company or not within the reasonable control of the Company’s management or (c) a change in
accounting standards required by generally accepted accounting principles. 
 11.4 Documentation. The Award Agreement for a given
Award, the Plan and any other documents may be delivered to, and accepted by, a Participant or any other person in any manner (including electronic distribution or posting) that meets applicable legal requirements. 

11.5 Foreign Award Recipients. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws and
practices in other countries in which the Company and its Subsidiaries operate or have employees or other individuals eligible for Awards, the Committee, in its sole discretion, will have the power and authority to: (a) determine which
Subsidiaries and 

  
 16 

 
Affiliates will be covered by the Plan; (b) determine which individuals outside the United States are eligible to participate in the Plan, which may include individuals who provide services
to the Company, Subsidiary or Affiliate under an agreement with a foreign nation or agency; (c) modify the terms and conditions of any Award granted to individuals outside the United States or foreign nationals to comply with applicable foreign
laws, policies, customs and practices; (d) establish sub-plans and modify exercise procedures and other terms and procedures, to the extent the Committee determines such actions to be necessary or advisable (and such sub-plans and/or
modifications will be attached to this Plan as appendices); provided, however, that no such sub-plans and/or modifications will increase the share limitations contained in Section 3.5 hereof and (e) take any action, before or after an
Award is made, that the Committee determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals. Notwithstanding the foregoing, the Committee may not take any actions hereunder,
and no Awards will be granted, that would violate the Exchange Act or any other applicable United States securities law, the Code or any other applicable United States governing statute or law. 

ARTICLE 12 
 CORPORATE
TRANSACTIONS 
 12.1 Assumption or Replacement of Awards by Successor. In the event of a Corporate Transaction, any or all
outstanding Awards may be assumed or replaced by the successor corporation, which assumption or replacement will be binding on all Participants. In the alternative, the successor corporation may substitute equivalent Awards or provide substantially
similar consideration to Participants as was provided to stockholders (after taking into account the existing provisions of the Awards). The successor corporation may also issue, in place of outstanding Shares of the Company held by the Participant,
substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant. In the event such successor or acquiring corporation (if any) refuses to assume, convert, replace or substitute Awards, as
provided above, pursuant to a Corporate Transaction, then notwithstanding any other provision in this Plan to the contrary, such Awards will have their vesting accelerate as to all shares subject to such Award (and any applicable right of repurchase
fully lapse) immediately prior to the Corporate Transaction. In addition, in the event such successor or acquiring corporation (if any) refuses to assume, convert, replace or substitute Awards, as provided above, pursuant to a Corporate Transaction,
the Committee will notify the Participant in writing or electronically that such Award will be exercisable for a period of time determined by the Committee in its sole discretion, and such Award will terminate upon the expiration of such period.
Awards need not be treated similarly in a Corporate Transaction. 
 12.2 Assumption of Awards by the Company. The Company, from time
to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either; (a) granting an Award under this Plan in substitution of such other
company’s award or (b) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the holder
of the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by another company, the
terms and conditions of such award will remain unchanged (except that the Purchase Price or the Exercise Price, as the case may be, and the number and nature of Shares issuable upon exercise or settlement of any such Award will be adjusted
appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option in substitution rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price. 

  
 17 

 12.3 Non-Employee Directors’ Awards. Notwithstanding any provision to the contrary
herein, in the event of a Corporate Transaction, the vesting of all Awards granted to Non-Employee Directors will accelerate and such Awards will become exercisable (as applicable) in full prior to the consummation of such event at such times and on
such conditions as the Committee determines. 
 ARTICLE 13 

MISCELLANEOUS 
 13.1
Payment For Share Purchases. Payment from a Participant for Shares purchased pursuant to this Plan may be made in cash or by check or, where expressly approved for the Participant by the Committee and where permitted by law (and to the extent
not otherwise set forth in the applicable Award Agreement): (a) by cancellation of indebtedness of the Company to the Participant; (b) by surrender of shares of the Company held by the Participant that have a Fair Market Value on the date
of surrender equal to the aggregate exercise price of the Shares as to which said Award will be exercised or settled; (c) by waiver of compensation due or accrued to the Participant for services rendered or to be rendered to the Company or a
Parent or Subsidiary of the Company; (d) by consideration received by the Company pursuant to a broker-assisted or other form of cashless exercise program implemented by the Company in connection with the Plan; (e) by any combination of
the foregoing or (f) by any other method of payment as is permitted by applicable law. 
 13.2 Withholding Taxes. Whenever
Shares are to be issued in satisfaction of Awards granted under this Plan or the applicable tax event occurs, the Company may require the Participant to remit to the Company or to the Parent or Subsidiary employing the Participant an amount
sufficient to satisfy applicable U.S. federal, state, local and international withholding tax requirements or any other tax or social insurance liability legally due from the Participant prior to the delivery of Shares pursuant to exercise or
settlement of any Award. Whenever payments in satisfaction of Awards granted under this Plan are to be made in cash, such payment will be net of an amount sufficient to satisfy applicable U.S. federal, state, local and international withholding tax
or social insurance requirements or any other tax liability legally due from the Participant. The Fair Market Value of the Shares will be determined as of the date that the taxes are required to be withheld and such Shares will be valued based on
the value of the actual trade or, if there is none, the Fair Market Value of the Shares as of the previous trading day. The Committee, or its delegate(s), as permitted by applicable law, in its sole discretion and pursuant to such procedures as it
may specify from time to time and to limitations of local law, may require or permit a Participant to satisfy such tax withholding obligation or any other tax liability legally due from the Participant, in whole or in part by paying cash, electing
to have the Company withhold otherwise deliverable cash or Shares having a Fair Market Value equal to the minimum statutory amount required to be withheld, delivering to the Company already-owned Shares having a Fair Market Value equal to the
minimum amount required to be withheld or withholding from the proceeds of the sale of otherwise deliverable Shares acquired pursuant to an Award either through a voluntary sale or through a mandatory sale arranged by the Company. 

13.3 Transferability. Unless determined otherwise by the Committee or pursuant to Section 13.4, an Award may not be sold, pledged,
assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution. If the Committee makes 

  
 18 

 
an Award transferable, including by instrument to an inter vivos or testamentary trust in which the Awards are to be passed to beneficiaries upon the death of the trustor (settlor) or by gift or
by domestic relations order to a Permitted Transferee, such Award will contain such additional terms and conditions as the Committee deems appropriate. All Awards will be exercisable: (a) during the Participant’s lifetime only by
(i) the Participant or (ii) the Participant’s guardian or legal representative; (b) after the Participant’s death, by the legal representative of the Participant’s heirs or legatees and (c) in the case of all
awards except ISOs, by a Permitted Transferee. 
 13.4 Award Transfer Program. Notwithstanding any contrary provision of the Plan,
the Committee will have all discretion and authority to determine and implement the terms and conditions of any Award Transfer Program instituted pursuant to this Section 13.4 and will have the authority to amend the terms of any Award
participating, or otherwise eligible to participate in, the Award Transfer Program, including the authority to (a) amend (including to extend) the expiration date, post-termination exercise period and/or forfeiture conditions of any such Award;
(b) amend or remove any provisions of the Award relating to the Award holder’s continued service to the Company or its Parent or any Subsidiary; (c) amend the permissible payment methods with respect to the exercise or purchase of any
such Award; (d) amend the adjustments to be implemented in the event of changes in the capitalization and other similar events with respect to such Award and (e) make such other changes to the terms of such Award as the Committee deems
necessary or appropriate in its sole discretion. 
 13.5 Voting and Dividends. No Participant will have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to the Participant, except for any Dividend Equivalent Rights permitted by an applicable Award Agreement. Any Dividend Equivalent Rights will be subject to the same vesting or
performance conditions as the underlying Award. In addition, the Committee may provide that any Dividend Equivalent Rights permitted by an applicable Award Agreement will be deemed to have been reinvested in additional Shares or otherwise
reinvested. After Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and receive all dividends or other distributions made or
paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock
split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock; provided, further, that the Participant will have no right to retain such stock dividends or stock
distributions with respect to Shares that are repurchased at the Participant’s Purchase Price or Exercise Price, as the case may be, pursuant to Section 13.6. 

13.6 Restrictions on Shares. At the discretion of the Committee, the Company may reserve to itself and/or its assignee(s) a right to
repurchase (a “Right of Repurchase”) a portion of any or all Unvested Shares held by a Participant following such Participant’s termination of Service at any time within ninety (90) days (or such longer or shorter
time determined by the Committee) after the later of the date Participant’s Service terminates and the date the Participant purchases Shares under this Plan, for cash and/or cancellation of purchase money indebtedness, at the Participant’s
Purchase Price or Exercise Price, as the case may be. 
 13.7 Certificates. All Shares or other securities whether or not
certificated, delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable U.S. federal, state or foreign
securities law or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted and any non-U.S. exchange controls or securities law restrictions to which
the Shares are subject. 

  
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 13.8 Escrow; Pledge of Shares. To enforce any restrictions on a Participant’s Shares,
the Committee may require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent
designated by the Company to hold in escrow until such restrictions have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. Any Participant who is permitted to
execute a promissory note as partial or full consideration for the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of the
Participant’s obligation to the Company under the promissory note; provided, however, that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will
have full recourse against the Participant under the promissory note notwithstanding any pledge of the Participant’s Shares or other collateral. In connection with any pledge of the Shares, the Participant will be required to execute and
deliver a written pledge agreement in such form as the Committee will from time to time approve. The Shares purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid. 

13.9 Repricing; Exchange and Buyout of Awards. Without prior stockholder approval the Committee may (a) reprice Options or SARs
(and where such repricing is a reduction in the Exercise Price of outstanding Options or SARs, the consent of the affected Participants is not required provided written notice is provided to them, notwithstanding any adverse tax consequences to them
arising from the repricing) and (b) with the consent of the respective Participants (unless not required pursuant to Section 4.10), pay cash or issue new Awards in exchange for the surrender and cancellation of any, or all, outstanding
Awards. 
 13.10 Deferrals. The Committee may determine that the delivery of Shares, payment of cash or a combination thereof upon
the exercise, vesting or settlement of all or a portion of any Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants. Deferrals by Participants will be made only in accordance with
Section 409A of the Code. Consistent with Section 409A of the Code, the Committee may provide for distributions while a Participant is providing Services to the Company or any Parent or Subsidiary. 

13.11 Securities Law and Other Regulatory Compliance. An Award will not be effective unless such Award is in compliance with all
applicable U.S. and foreign federal and state securities and exchange control laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or
quoted, as they are in effect on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver certificates for Shares
under this Plan prior to: (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable and (b) completion of any registration or other qualification of such Shares under any state or federal
or foreign law or ruling of any governmental body that the Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the registration, qualification or
listing requirements of any foreign or state securities laws, exchange control laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so. 

  
 20 

 13.12 No Obligation To Employ. Nothing in this Plan or any Award granted under this Plan
will confer or be deemed to confer on any Participant any right to continue in the employ of or to continue any other relationship with the Company or any Parent, Subsidiary or Affiliate or limit in any way the right of the Company or any Parent,
Subsidiary or Affiliate to terminate Participant’s employment or other relationship at any time. 
 13.13 Adoption and Stockholder
Approval. This Plan will be subject to the approval of the Company’s stockholders, consistent with applicable laws, within twelve (12) months after the date this Plan is adopted by the Board. 

13.14 Governing Law. This Plan and all Awards granted hereunder will be governed by and construed in accordance with the laws of the
State of Delaware (excluding its conflict of law rules). 
 13.15 Amendment or Termination of Plan. The Board may at any time
terminate or amend this Plan in any respect, including amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan; provided, however, that the Board will not, without the approval of the stockholders of the Company,
amend this Plan in any manner that requires such stockholder approval; provided further, that a Participant’s Award will be governed by the version of this Plan then in effect at the time such Award was granted. 

13.16 Nonexclusivity of the Plan. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of
the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including the granting of stock awards and
bonuses otherwise than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 

13.17 Insider Trading Policy. Each Participant who receives an Award will comply with any policy adopted by the Company from time to
time covering transactions in the Company’s securities by Employees, officers and/or directors of the Company. 
 13.18 All Awards
Subject to Company Clawback or Recoupment Policy. All Awards, subject to applicable law, will be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term
of Participant’s employment or other service with the Company that is applicable to executive officers, employees, directors or other service providers of the Company, and in addition to any other remedies available under such policy and
applicable law, may require the cancellation of outstanding Awards and the recoupment of any gains realized with respect to Awards. 

13.19 Electronic Delivery. Any reference herein to a “written” agreement or document will include any agreement or document
delivered electronically, filed publicly at www.sec.gov (or any successor website thereto) or posted on the Company’s intranet (or other shared electronic medium controlled by the Company to which the Participant has access). 

  
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 NOTICE OF STOCK OPTION GRANT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 Unless otherwise defined herein, the terms defined in the AppFolio, Inc. (the “Company”)
2015 Stock Incentive Plan (the “Plan”) shall have the same meanings in this Notice of Stock Option Grant (the “Notice of Grant”) and the attached Stock Option Agreement (the “Option
Agreement”). You have been granted an Option to purchase shares of Class A Common Stock of the Company under the Plan subject to the terms and conditions of the Plan, this Notice of Grant and the attached Option Agreement. 

 

			
	Name:		
		
	Address:		
		
	Date of Grant:		
		
	Vesting Commencement Date:		
		
	Exercise price per Share:		
		
	Total Number of Shares:		
		
	Type of Option:		 ̈ Non-Qualified Stock Option
		
			 ̈ Incentive Stock Option
		
	Expiration Date:		            , 20    ; This Option expires earlier if your Service terminates earlier, as described in the Stock Option Agreement.
		
	Vesting Schedule:		[INSERT VESTING SCHEDULE].
		
	Additional Terms:		 ̈ If this box is checked, the additional terms and conditions set forth on Attachment 1 hereto (as executed by the Company) are applicable and are incorporated herein by
reference. No document need be attached as Attachment 1 if the box is not checked.

 By accepting this Option, you and the Company agree that this Option is granted under and governed by the terms and conditions
of the Plan, the Notice of Grant and the Option Agreement. You acknowledge and agree that the Vesting Schedule may change prospectively in the event that your Service status changes between full and part-time status in accordance with Company
policies relating to work schedules and vesting of awards. You further acknowledge that the grant of this Option by the Company is at the Company’s sole discretion, and does not entitle you to further grant(s) of Option(s) or any other award(s)
under the Plan or any other plan or program maintained by the Company or any Parent, Subsidiary or Affiliate of the Company. By accepting this Option, you consent to electronic delivery as set forth in the Option Agreement. 

  
 2 

									
	PARTICIPANT:				APPFOLIO, INC.
					
	Signature:		  
				By:		  

	Print Name:		  
				Name:		  

							Its:		  

  
 3 

 STOCK OPTION AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 STOCK OPTION AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 You have been granted an Option by AppFolio, Inc. (the “Company”) under the 2015 Stock
Incentive Plan (the “Plan”) to purchase Shares (the “Option”), subject to the terms, restrictions and conditions of the Plan, the Notice of Stock Option Grant (the “Notice of
Grant”) and this Stock Option Agreement (the “Agreement”). 
 1. Grant of Option. You
have been granted an Option for the number of Shares set forth in the Notice of Grant at the exercise price per Share set forth in the Notice of Grant (the “exercise price”). In the event of a conflict between the terms and
conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of the Plan shall prevail. If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is intended to
qualify as an Incentive Stock Option under Section 422 of the Code. However, if this Option is intended to be an ISO, to the extent that it exceeds the $100,000 rule of Code Section 422(d), it shall be treated as a Nonqualified Stock
Option (“NSO”). 
 2. Termination Period. 

(a) General Rule. If your Service terminates for any reason except death or Disability, and other than for Cause, then this Option will
expire at the close of business at Company headquarters on the date three (3) months after your termination of Service (subject to the expiration detailed in Section 6). If your Service is terminated for Cause, this Option will expire upon
the date of such termination. The Company determines when your Service terminates for all purposes under this Agreement. 
 (b) Death;
Disability. If you die before your Service terminates (or you die within three months of your termination of Service other than for Cause), then this Option will expire at the close of business at Company headquarters on the date twelve
(12) months after the date of death (subject to the expiration detailed in Section 6). If your Service terminates because of your Disability, then this Option will expire at the close of business at Company headquarters on the date twelve
(12) months after your termination date (subject to the expiration detailed in Section 6). 
 (c) No Notice. You are
responsible for keeping track of these exercise periods following your termination of Service for any reason. The Company will not provide further notice of such periods. In no event shall this Option be exercised later than the Expiration Date set
forth in the Notice of Grant. 
 3. Exercise of Option. 

(a) Right to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set forth in the Notice of
Grant and the applicable provisions of the Plan and this Agreement. In the event of your death, Disability, or other cessation of Service, the exercisability of the Option is governed by the applicable provisions of the Plan, the Notice of Grant and
this Agreement. This Option may not be exercised for a fraction of a Share. 

  
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 (b) Method of Exercise. This Option is exercisable by delivery of an exercise notice in a
form specified by the Company (the “Exercise Notice”), which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised
Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be delivered in person, by mail, via electronic mail or facsimile or by other
authorized method to the Secretary of the Company or other person designated by the Company. The Exercise Notice shall be accompanied by payment of the aggregate exercise price as to all Exercised Shares. This Option shall be deemed to be exercised
upon receipt by the Company of a fully executed Exercise Notice accompanied by the aggregate exercise price and any applicable tax withholding due upon exercise of the Option. 

(c) Exercise by Another. If another person wants to exercise this Option after it has been transferred to him or her in compliance with
this Agreement, that person must prove to the Company’s satisfaction that he or she is entitled to exercise this Option. That person must also complete the proper Exercise Notice form (as described above) and pay the exercise price (as
described below) and any applicable tax withholding due upon exercise of the Option (as described below). 
 4. Method of
Payment. Payment of the aggregate exercise price shall be by any of the following, or a combination thereof, at your election: 

(a) your personal check, wire transfer, or a cashier’s check; 

(b) certificates for shares of Company stock that you own, along with any forms needed to effect a transfer of those shares to the Company;
the value of the shares, determined as of the effective date of the Option exercise, will be applied to the Option exercise price. Instead of surrendering shares of Company stock, you may attest to the ownership of those shares on a form provided by
the Company and have the same number of shares subtracted from the Option shares issued to you. However, you may not surrender, or attest to the ownership of, shares of Company stock in payment of the exercise price of your Option if your action
would cause the Company to recognize compensation expense (or additional compensation expense) with respect to this Option for financial reporting purposes; 

(c) waiver of compensation due or accrued to you for your services rendered or to be rendered to the Company or a Parent or Subsidiary of the
Company; 
 (d) cashless exercise through irrevocable directions to a securities broker approved by the Company to sell all or part of the
Shares covered by this Option and to deliver to the Company from the sale proceeds an amount sufficient to pay the Option exercise price and any withholding taxes. The balance of the sale proceeds, if any, will be delivered to you. The directions
must be given by signing a special notice of exercise form provided by the Company; or 
 (e) other method authorized by the Company. 

5. Non-Transferability of Option. In general, except as provided below, only you may exercise this Option prior to your death.
You may not transfer or assign this Option, except as provided below. For instance, you may not sell this Option or use it as security for a loan. If you attempt to do any of these things, this Option will immediately become invalid. You may,
however, dispose of this Option in your will or in a beneficiary designation. However, if this Option is designated as a NSO in the Notice of Grant, then the Committee (as defined in the Plan) may, in its sole discretion, allow you to transfer this
Option as a gift to one or more family members. For purposes of this Agreement, “family member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law (including adoptive relationships), any individual sharing your household (other than a tenant or employee), a trust in which one or more of

  
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these individuals have more than 50% of the beneficial interest, a foundation in which you or one or more of these persons control the management of assets, and any entity in which you or one or
more of these persons own more than 50% of the voting interest. In addition, if this Option is designated as a NSO in the Notice of Grant, then the Committee may, in its sole discretion, allow you to transfer this Option to your spouse or former
spouse pursuant to a domestic relations order in settlement of marital property rights. The Committee will allow you to transfer this Option only if both you and the transferee(s) execute the forms prescribed by the Committee, which include the
consent of the transferee(s) to be bound by this Agreement. This Option may not be transferred in any manner other than by will or by the laws of descent or distribution or court order and may be exercised during the lifetime of you only by you,
your guardian, or legal representative, as permitted in the Plan. The terms of the Plan and this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of you. 

6. Term of Option. This Option shall in any event expire on the expiration date set forth in the Notice of Grant, which date is
ten (10) years after the grant date (five years after the grant date if this Option is designated as an ISO in the Notice of Grant and Section 4.4 of the Plan applies). 

7. Tax Consequences. You should consult a tax adviser for tax consequences relating to this Option in the jurisdiction in which
you are subject to tax. YOU SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 
 (a) Exercising the
Option. You will not be allowed to exercise this Option unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the Option exercise. 

(b) Notice of Disqualifying Disposition of ISO Shares. If you sell or otherwise dispose of any of the Shares acquired pursuant to an
ISO on or before the later of (i) two years after the grant date, or (ii) one year after the exercise date, you shall immediately notify the Company in writing of such disposition. You agree that you may be subject to income tax
withholding by the Company on the compensation income recognized from such early disposition of ISO Shares by payment in cash or out of the current compensation paid to you. 

8. Withholding Taxes and Stock Withholding. Regardless of any action the Company or your actual employer (the
“Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), you acknowledge that the ultimate
liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with
any aspect of the Option grant, including the grant, vesting or exercise of the Option, the subsequent sale of Shares acquired pursuant to such exercise and the receipt of any dividends; and (2) do not commit to structure the terms of the grant
or any aspect of the Option to reduce or eliminate your liability for Tax-Related Items. You acknowledge that if you are subject to Tax-Related Items in more than one jurisdiction, the Company and/or the Employer may be required to withhold or
account for Tax-Related Items in more than one jurisdiction. 
 Prior to exercise of the Option, you shall pay or make adequate arrangements satisfactory to
the Company and/or the Employer to satisfy all withholding and payment on account obligations of the Company and/or the Employer. In this regard, you authorize the Company and/or the Employer to withhold all applicable Tax-Related Items legally
payable by you from your wages or other cash 

  
 4 

 
compensation paid to you by the Company and/or the Employer. With the Company’s consent, these arrangements may also include, if permissible under local law, (a) withholding Shares that
otherwise would be issued to you when you exercise this Option, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum statutory withholding amount, (b) having the Company withhold taxes from the proceeds
of the sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf and you hereby authorize such sales by this authorization), (c) your payment of a cash amount, or (d) any other
arrangement approved by the Company; all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable; provided however, that if you are a
Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) shall establish the method of withholding from alternatives (a)-(d) above, and the Committee
shall establish the method prior to the Tax-Related Items withholding event. The Fair Market Value of these Shares, determined as of the effective date of the Option exercise, will be applied as a credit against the withholding taxes. You shall pay
to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of your participation in the Plan or your purchase of Shares that cannot be satisfied by the means previously
described. Finally, you acknowledge that the Company has no obligation to deliver Shares to you until you have satisfied the obligations in connection with the Tax-Related Items as described in this Section. 

9. Acknowledgement. The Company and you agree that the Option is granted under and governed by the Notice of Grant, this
Agreement and the provisions of the Plan (incorporated herein by reference). You: (a) acknowledge receipt of a copy of the Plan and the Plan prospectus, (b) represent that you have carefully read and are familiar with their provisions, and
(c) hereby accept the Option subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice of Grant. You hereby agree to accept as binding, conclusive and final all decisions or interpretations of
the Committee upon any questions relating to the Plan, the Notice of Grant and the Agreement. 
 10. Consent to Electronic Delivery of
All Plan Documents and Disclosures. By your acceptance of this Option, you consent to the electronic delivery of the Notice of Grant, this Agreement, the Plan, account statements, Plan prospectuses required by the Securities and Exchange
Commission, U.S. financial reports of the Company, and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information
related to the Option. Electronic delivery may include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined
at the Company’s discretion. You acknowledge that you may receive from the Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or electronic mail at [insert
email]. You further acknowledge that you will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, you understand that you must provide on request to the Company or any designated third
party a paper copy of any documents delivered electronically if electronic delivery fails. Also, you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you
have provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail at [insert email]. Finally, you understand that you are not required to consent to
electronic delivery. 

  
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 11. Compliance with Laws and Regulations. The exercise of this Option will be
subject to and conditioned upon compliance by the Company and you with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the
Company’s Class A Common Stock may be listed or quoted at the time of such issuance or transfer. The Shares issued pursuant to this Agreement shall be endorsed with appropriate legends, if any, determined by the Company. 

12. Governing Law; Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law,
the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement,
(b) the balance of this Agreement shall be interpreted as if such provision were so excluded and (c) the balance of this Agreement shall be enforceable in accordance with its terms. This Agreement and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. For purposes of litigating any
dispute that may arise directly or indirectly from the Plan, the Notice and this Agreement, the parties hereby submit and consent to litigation in the exclusive jurisdiction of the State of California and agree that any such litigation shall be
conducted only in the courts of California in Santa Barbara County or the federal courts of the United States for the Central District of California and no other courts. 

13. No Rights as Employee, Director or Consultant. Nothing in this Agreement shall affect in any manner whatsoever the right or
power of the Company, or a Parent, Subsidiary or Affiliate of the Company, to terminate your Service, for any reason, with or without Cause. 

14. Adjustment. In the event of a stock split, a stock dividend or a similar change in Company stock, the number of Shares
covered by this Option and the exercise price per Share may be adjusted pursuant to the Plan. 
 15. Lock-Up Agreement. In
connection with the initial public offering of the Company’s securities and upon request of the Company or the underwriters managing any underwritten offering of the Company’s securities, you hereby agree not to sell, make any short sale
of, loan, grant any Option for the purchase of, or otherwise dispose of any securities of the Company however and whenever acquired (other than those included in the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days) from the effective date of such registration as may be requested by the Company or such managing underwriters and to execute an agreement
reflecting the foregoing as may be requested by the underwriters at the time of the public offering; provided however that, if during the last seventeen (17) days of the restricted period the Company issues an earnings release or material news
or a material event relating to the Company occurs, or prior to the expiration of the restricted period the Company announces that it will release earnings results during the sixteen (16)-day period beginning on the last day of the restricted
period, then, upon the request of the managing underwriter, to the extent required by any FINRA rules, the restrictions imposed by this Section shall continue to apply until the end of the third trading day following the expiration of the fifteen
(15)-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. In no event will the restricted period extend beyond two hundred sixteen (216) days after the effective date of the
registration statement. 

  
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 16. Award Subject to Company Clawback or Recoupment. To the extent permitted by
applicable law, the Option shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of your employment or other Service that is applicable to you.
In addition to any other remedies available under such policy, applicable law may require the cancellation of your Option (whether vested or unvested) and the recoupment of any gains realized with respect to your Option. 

17. Entire Agreement; Enforcement of Rights. This Agreement, the Plan and the Notice constitute the entire agreement and
understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning this Option are superseded. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver
of any rights of such party. 
 BY ACCEPTING THIS OPTION, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. 

  
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 NOTICE OF RESTRICTED STOCK AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 NOTICE OF RESTRICTED STOCK AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 Unless otherwise defined herein, the terms defined in the AppFolio, Inc. (the “Company”) 2015 Stock
Incentive Plan (the “Plan”) shall have the same meanings in this Notice of Restricted Stock Award (the “Notice”) and the attached Restricted Stock Agreement (the “Restricted Stock
Agreement”). You have been granted the opportunity to purchase Shares of the Company that are subject to restrictions (the “Restricted Shares”) and the terms and conditions of the Plan, this Notice and the
attached Restricted Stock Agreement. 
  

			
	Name:		
		
	Address:		
		
	Total Number of Restricted Shares Awarded:		
		
	Fair Market Value per Restricted Share:		$
		
	Total Fair Market Value of Award:		$
		
	Purchase Price per Restricted Share:		$
		
	Total Purchase Price for all Restricted Shares:		$
		
	Date of Grant:		
		
	Vesting Commencement Date:		
		
	Vesting Schedule:		[INSERT VESTING SCHEDULE].
		
	Additional Terms:		 ̈ If this box is checked, the additional terms and conditions set forth on Attachment 1 hereto (as executed by the Company) are applicable and are incorporated herein by
reference. No document need be attached as Attachment 1 if the box is not checked.

 You acknowledge that the vesting of the Restricted Shares pursuant to this Notice is earned only by continuing Service. By
accepting the Restricted Shares, you and the Company agree that the Restricted Shares are granted under and governed by the terms and conditions of the Plan, the Notice and the Restricted Stock Agreement. You acknowledge and agree that the Vesting
Schedule may change prospectively in the event that your Service status changes between full and part-time status in accordance with Company policies relating to work schedules and vesting of awards. You further acknowledge that the grant of the
Restricted Shares by the Company is at the Company’s sole discretion, and does not entitle you to further grant(s) of Restricted Shares or any other award(s) under the Plan or any other plan or program maintained by the Company or any Parent,
Subsidiary or Affiliate of the Company. By accepting the Restricted Shares, you consent to electronic delivery as set forth in the Restricted Stock Agreement. If the Restricted Stock Agreement is not executed by you within thirty (30) days of
the Company’s delivery of this Agreement to you, then this grant shall be void. 

  
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	PARTICIPANT:				APPFOLIO, INC.
					
	Signature:		  
				By:		  

	Print Name:		  
				Name:		  

							Its:		  

  
 3 

 RESTRICTED STOCK AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 RESTRICTED STOCK AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made as of
            , 2015 by and between AppFolio, Inc., a Delaware corporation (the “Company”), and
                     (“you”) pursuant to the Company’s 2015 Stock Incentive Plan (the “Plan”).
Unless otherwise defined herein, the terms defined in the Plan shall have the same meanings in this Agreement. 
 1. Sale of
Stock. Subject to the terms and conditions of this Agreement, on the Purchase Date (as defined below) the Company will issue and sell to you, and you agree to purchase from the Company, the number of Shares shown on the Notice of Restricted
Stock Award (the “Notice”) at a purchase price of $         per Share. The term “Shares” refers to the purchased Shares and all securities received in replacement of or in
connection with the Shares pursuant to stock dividends or splits, all securities received in replacement of the Shares in a recapitalization, merger, reorganization, exchange or the like, and all new, substituted or additional securities or other
properties to which you are entitled by reason of your ownership of the Shares. 
 2. Time and Place of Purchase. The purchase
and sale of the Shares under this Agreement shall occur at the principal office of the Company simultaneously with the execution of this Agreement by the parties, or on such other date as the Company and you shall agree (the “Purchase
Date”). On the Purchase Date, the Company will issue uncertificated shares designated for you in book entry form on the records of the Company’s transfer agent, representing the Shares to be purchased by you against payment of the
purchase price therefor by you by (a) check made payable to the Company, (b) cancellation of indebtedness of the Company to you, (c) your personal Services that the Committee has determined have already been rendered to the Company,
or (d) a combination of the foregoing. 
 3. Restrictions on Resale. By signing this Agreement, you agree not to sell any
Shares acquired pursuant to the Plan and this Agreement at a time when applicable laws, regulations or Company or underwriter trading policies prohibit exercise or sale. This restriction will apply as long as you are providing Service to the Company
or a Subsidiary of the Company. 
 3.1 Repurchase Right on Termination Other Than for Cause. For the purposes of this
Agreement, a “Repurchase Event” shall mean an occurrence of one of the following: 
 (i) termination of your
Service, whether voluntary or involuntary and with or without cause; 
 (ii) your resignation, retirement or death; or 

(iii) any attempted transfer by you of the Shares, or any interest therein, in violation of this Agreement. 

Upon the occurrence of a Repurchase Event, the Company shall have the right (but not an obligation) to purchase your Shares at a price equal to the Purchase
Price per Share (the “Repurchase Right”). The Repurchase Right shall lapse in accordance with the vesting schedule set forth in the Notice of Restricted Stock Award. For purposes of this Agreement, “Unvested
Shares” means Stock pursuant to which the Company’s Repurchase Right has not lapsed. 

  
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 3.2 Exercise of Repurchase Right. Unless the Company provides written notice to you
within 90 days from the date of termination of your Service to the Company that the Company does not intend to exercise its Repurchase Right with respect to some or all of the Unvested Shares, the Repurchase Right shall be deemed automatically
exercised by the Company as of the 90th day following such termination, provided that the Company may notify you that it is exercising its Repurchase Right as of a date prior to such 90th day. Unless you are otherwise notified by the Company
pursuant to the preceding sentence that the Company does not intend to exercise its Repurchase Right as to some or all of the Unvested Shares, execution of this Agreement by you constitutes written notice to you of the Company’s intention to
exercise its Repurchase Right with respect to all Unvested Shares to which such Repurchase Right applies at the time of your termination of Service. The Company, at its choice, may satisfy its payment obligation to you with respect to exercise of
the Repurchase Right by either (A) delivering a check to you in the amount of the purchase price for the Unvested Shares being repurchased, or (B) in the event you are indebted to the Company, canceling an amount of such indebtedness equal
to the purchase price for the Unvested Shares being repurchased, or (C) by a combination of (A) and (B) so that the combined payment and cancellation of indebtedness equals such purchase price. In the event of any deemed automatic
exercise of the Repurchase Right by canceling an amount of such indebtedness equal to the purchase price for the Unvested Shares being repurchased, such cancellation of indebtedness shall be deemed automatically to occur as of the 90th day following
termination of your Service unless the Company otherwise satisfies its payment obligations. As a result of any repurchase of Unvested Shares pursuant to the Repurchase Right, the Company shall become the legal and beneficial owner of the Unvested
Shares being repurchased and shall have all rights and interest therein or related thereto, and the Company shall have the right to transfer to its own name the number of Unvested Shares being repurchased by the Company, without further action by
you. 
 3.3 Acceptance of Restrictions. Acceptance of the Shares shall constitute your agreement to such restrictions and the
notation in the Company’s direct registration system for stock issuance and transfer of such restrictions set forth in Section 4.1 with respect thereto. Notwithstanding such restrictions, however, so long as you are the holder of the
Shares, or any portion thereof, he or she shall be entitled to receive all dividends declared on and to vote the Shares and to all other rights of a stockholder with respect thereto. 

3.4 Non-Transferability of Unvested Shares. In addition to any other limitation on transfer created by applicable securities
laws or any other agreement between the Company and you, you may not transfer any Unvested Shares, or any interest therein, unless consented to in writing by a duly authorized representative of the Company. Any purported transfer is void and of no
effect, and no purported transferee thereof will be recognized as a holder of the Unvested Shares for any purpose whatsoever. Should such a transfer purport to occur, the Company may refuse to carry out the transfer on its books, set aside the
transfer, or exercise any other legal or equitable remedy. In the event the Company consents to a transfer of Unvested Shares, all transferees of Shares or any interest therein will receive and hold such Shares or interest subject to the provisions
of this Agreement, including, insofar as applicable, the Repurchase Right. In the event of any purchase by the Company hereunder where the Shares or interest are held by a transferee, the transferee shall be obligated, if requested by the Company,
to transfer the Shares or interest you for consideration equal to the amount to be paid by the Company hereunder. In the event the Repurchase Right is deemed exercised by the Company, the Company may deem any transferee to have transferred the
Shares or 

  
 3 

 
interest to you prior to their purchase by the Company, and payment of the purchase price by the Company to such transferee shall be deemed to satisfy your obligation to pay such transferee for
such Shares or interest, and also to satisfy the Company’s obligation to pay you for such Shares or interest. 
 3.5
Assignment. The Repurchase Right may be assigned by the Company in whole or in part to any persons or organization. 
 4.
Stop Transfer Orders. 
 4.1 Stop-Transfer Notices. You agree that, in order to ensure compliance with the
restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in
its own records. 
 4.2 Refusal to Transfer. The Company shall not be required (a) to transfer on its books any Shares
that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (b) to treat as the owner or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall
have been so transferred. 
 5. No Rights as Employee, Director or Consultant. Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a Parent, Subsidiary or Affiliate of the Company, to terminate your Service, for any reason, with or without Cause. 

6. Miscellaneous. 

6.1 Acknowledgement. The Company and you agree that the Restricted Shares are granted under and governed by the Notice, this
Agreement and the provisions of the Plan (incorporated herein by reference). You: (a) acknowledge receipt of a copy of the Plan and the Plan prospectus, (b) represent that you have carefully read and are familiar with their provisions, and
(c) hereby accept the Restricted Shares subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice. You hereby agree to accept as binding, conclusive and final all decisions or interpretations of
the Committee upon any questions relating to the Plan, the Notice and the Restricted Stock Agreement. 
 6.2 Entire Agreement;
Enforcement of Rights. This Agreement, the Plan and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements,
commitments or negotiations concerning the purchase of the Shares hereunder are superseded. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the
parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party. 

6.3 Compliance with Laws and Regulations. The issuance of Shares will be subject to and conditioned upon compliance by the
Company and you with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Class A Common Stock may be listed or
quoted at the time of such issuance or transfer. The Shares issued pursuant to this Agreement shall be endorsed with appropriate legends, if any, determined by the Company. 

  
 4 

 6.4 Governing Law; Severability. If one or more provisions of this Agreement are
held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of this Agreement shall be interpreted as if such provision were so excluded and (c) the balance of this Agreement shall be enforceable in accordance with its terms. This
Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of
conflicts of law. For purposes of litigating any dispute that may arise directly or indirectly from the Plan, the Notice and this Agreement, the parties hereby submit and consent to litigation in the exclusive jurisdiction of the State of California
and agree that any such litigation shall be conducted only in the courts of California in Santa Barbra County or the federal courts of the United States for the Central District of California and no other courts. 

6.5 Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and
their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto. 

6.6 Notices. Any notice to be given under the terms of the Plan shall be addressed to the Company in care of its principal
office, and any notice to be given to you shall be addressed to you at the address maintained by the Company for such person or at such other address as you may specify in writing to the Company. 

6.7 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall he deemed an original and all
of which together shall constitute one instrument. 
 6.8 U.S. Tax Consequences. Unless an Election (defined below) is made,
upon vesting of Shares, you will include in taxable income the difference between the fair market value of the vesting Shares, as determined on the date of their vesting, and the price paid for the Shares. This will be treated as ordinary income by
you and will be subject to withholding by the Company when required by applicable law. In the absence of an Election, the Company shall satisfy the withholding requirements as set forth in Section 7 below. If you make an Election, then you
must, prior to making the Election, pay in cash (or check) to the Company an amount equal to the amount the Company is required to withhold for income and employment taxes. 

7. Withholding Taxes and Stock Withholding. Regardless of any action the Company or your actual employer (the
“Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), you acknowledge that the ultimate
liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with
any aspect of the Shares received under this award, including the award or vesting of such Shares, the subsequent sale of Shares under this award and the receipt of any dividends; and (2) do not commit to structure the terms of the award or any
aspect of the Restricted Shares to reduce or eliminate your liability for Tax-Related Items. You acknowledge that if you are subject to Tax-Related Items in more than one jurisdiction, the Company and/or the Employer may be required to withhold or
account for Tax-Related Items in more than one jurisdiction. 

  
 5 

 The Company will only recognize you as a record holder of Shares if you have paid or made adequate arrangements
satisfactory to the Company and/or the Employer to satisfy all withholding and payment on account obligations of the Company and/or the Employer. In this regard, you authorize the Company and/or the Employer to withhold all applicable Tax-Related
Items legally payable by you from your wages or other cash compensation paid to you by the Company and/or the Employer. With the Company’s consent, these arrangements may also include, if permissible under local law, (a) withholding Shares
that otherwise would be released from the Repurchase Right when they vest, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum statutory withholding amount, (b) having the Company withhold taxes from
the proceeds of the sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf and you hereby authorize such sales by this authorization), (c) your payment of a cash amount, or
(d) any other arrangement approved by the Company; all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable; provided however,
that if you are a Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) shall establish the method of withholding from alternatives (a)-(d) above,
and the Committee shall establish the method prior to the Tax-Related Items withholding event. The Fair Market Value of these Shares, determined as of the effective date when taxes otherwise would have been withheld in cash, will be applied as a
credit against the withholding taxes. You shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of your participation in the Plan or your purchase of Shares
that cannot be satisfied by the means previously described. Finally, you acknowledge that the Company has no obligation to deliver Shares to you until you have satisfied the obligations in connection with the Tax-Related Items as described in this
Section. 
 8. Section 83(b) Election. You hereby acknowledges that he or she has been informed that, with respect to the
purchase of the Shares, an election may be filed by you with the Internal Revenue Service, within 30 days of the purchase of the Shares, electing pursuant to Section 83(b) of the Code to be taxed currently on any difference between the purchase
price of the Shares and their Fair Market Value on the date of purchase (the “Election”). Making the Election will result in recognition of taxable income to you on the date of purchase, measured by the excess, if any, of the
Fair Market Value of the Shares over the purchase price for the Shares. Absent such an Election, taxable income will be measured and recognized by you at the time or times on which the Company’s Repurchase Right lapses. You are strongly
encouraged to seek the advice of his or her own tax consultants in connection with the purchase of the Shares and the advisability of filing of the Election. YOU ACKNOWLEDGE THAT IT IS SOLELY YOUR RESPONSIBILITY, AND NOT THE COMPANY’S
RESPONSIBILITY, TO TIMELY FILE THE ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF YOU REQUEST THE COMPANY, OR ITS REPRESENTATIVE, TO MAKE THIS FILING ON YOUR BEHALF. 

9. Consent to Electronic Delivery of All Plan Documents and Disclosures. By acceptance of this Restricted Stock Award, you
consent to the electronic delivery of the Notice, this Agreement, the Plan, account statements, Plan prospectuses required by the Securities and Exchange Commission, U.S. financial reports of the Company, and all other documents that the Company is
required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the Restricted Stock Award. Electronic delivery may include the delivery of a link to
a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion. You acknowledge that you may receive from the

  
 6 

 
Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or electronic mail at [insert email]. You further
acknowledge that you will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, you understand that you must provide on request to the Company or any designated third party a paper copy of
any documents delivered electronically if electronic delivery fails. Also, you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an
electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail at [insert email]. Finally, you understand that you are not required to consent to electronic delivery.

 10. Adjustment. In the event of a stock split, a stock dividend or a similar change in Company stock, the number of Shares
covered by the Restricted Stock Award and the purchase price per share may be adjusted pursuant to the Plan. 
 11. Award Subject
to Company Clawback or Recoupment. To the extent permitted by applicable law, the Shares shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the
term of your employment or other Service with the Company that is applicable to you. In addition to any other remedies available under such policy, applicable law may require the cancellation of your Shares (whether vested or unvested) and the
recoupment of any gains realized with respect to your Shares. 
 BY ACCEPTING THIS RESTRICTED STOCK AWARD, YOU AGREE TO ALL OF THE TERMS AND
CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. 
 The parties have executed this Agreement as of the date first set forth above. 

 

			
	APPFOLIO, INC.
		
	By:		  

	Name:		  

	Its:		  

	
	RECIPIENT:
		
	Signature:		  

	Print Name:		  

  
 7 

 RECEIPT 

AppFolio, Inc. hereby acknowledges receipt of (check as applicable): 

 ̈ A check or wire transfer in the amount of $         

 ̈ The cancellation of indebtedness in the amount of $         

 ̈ Given by
                     as consideration for the book entry in your name for
                 shares of Class A Common Stock of AppFolio, Inc. 
  ̈ Other method as permitted by the Plan and specifically approved by the Board or Committee, and described here: 

Dated:                      

 

			
	APPFOLIO, INC.
		
	By:		  

	Print Name:		  

	Its:		  

  
 [Receipt] 

 NOTICE OF PERFORMANCE SHARES AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 NOTICE OF PERFORMANCE SHARES AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 Unless otherwise defined herein, the terms defined in the AppFolio, Inc. (the “Company”) 2015 Stock
Incentive Plan (the “Plan”) shall have the same meanings in this Notice of Performance Shares Award (the “Notice”) and the attached Performance Shares Award Agreement (the “Performance
Shares Agreement”). You have been granted an award of Performance Shares (the “Performance Shares Award”) under the Plan subject to the terms and conditions of the Plan, this Notice and the attached Performance
Shares Agreement. 
  

			
	Name:		
		
	Address:		
		
	Number of Shares:		
		
	Date of Grant:		
		
	Fair Market Value on Date of Grant:		
		
	Vesting Commencement Date:		
		
	Vesting Schedule:		Subject to the limitations set forth in this Notice, the Plan and the Performance Shares Agreement, the Shares will vest in accordance with the following schedule: [INSERT VESTING SCHEDULE].

 You acknowledge that the vesting of the Performance Shares Award pursuant to this Notice is earned only by continuing Service.
By accepting the Performance Shares Award, you and the Company agree that the Performance Shares Award is granted under and governed by the terms and conditions of the Plan, the Notice and the Performance Shares Agreement. You acknowledge and agree
that the Vesting Schedule may change prospectively in the event that your service status changes between full and part-time status in accordance with Company policies relating to work schedules and vesting of awards. You further acknowledge that the
grant of this Performance Shares Award by the Company is at the Company’s sole discretion, and does not entitle you to further grant(s) of Performance Share Award(s) or any other award(s) under the Plan or any other plan or program maintained
by the Company or any Parent, Subsidiary or Affiliate of the Company. By accepting the Performance Shares Award, you consent to electronic delivery as set forth in the Performance Shares Agreement. 

  
 2 

									
	PARTICIPANT:				APPFOLIO, INC.
					
	Signature:		  
				By:		  

	Print Name:		  
				Name:		  

							Its:		  

  
 3 

 PERFORMANCE SHARES AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 PERFORMANCE SHARES AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 You have been granted a Performance Shares Award (“Performance Shares Award”) by AppFolio, Inc. (the
“Company”), subject to the terms, restrictions and conditions of the Plan, the Notice of Performance Shares Award (“Notice”) and this Performance Shares Agreement (this
“Agreement”). 
 1. Settlement. Your Performance Shares Award shall be settled in Shares and the Company’s
transfer agent shall record ownership of such Shares in your name as soon as reasonably practicable after achievement of the Performance Factors enumerated in the Notice. 

2. No Stockholder Rights. Unless and until you are recorded as the holder of such Shares on the stock records of the Company and its transfer
agent, you shall have no right to dividends or to vote Shares. 
 3. No-Transfer. Your interest in this Performance Shares Award shall not be
sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of. 
 4. Termination. If your Service terminates for any reason,
all of your rights under the Plan, this Agreement and the Notice in respect of this Award shall immediately terminate. In case of any dispute as to whether a termination of Service has occurred, the Committee shall have sole discretion to determine
whether such termination has occurred and the effective date of such termination. 
 5. Construction. This Agreement is the result of
negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor
of or against any one of the parties hereto. 
 6. Notices. Any notice to be given under the terms of the Plan shall be addressed to the
Company in care of its principal office, and any notice to be given to you shall be addressed to you at the address maintained by the Company for such person or at such other address as you may specify in writing to the Company. 

7. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall he deemed an original and all of which together
shall constitute one instrument. 
 8. Tax Consequences. YOU SHOULD CONSULT A TAX ADVISER BEFORE ACQUIRING THE SHARES IN THE JURISDICTION IN
WHICH HE OR SHE IS SUBJECT TO TAX. Shares shall not be issued under this Agreement unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the acquisition or vesting of Shares. 

(a) U.S. Tax Consequences. Upon vesting of Shares, you will include in taxable income the difference between the fair market
value of the vesting Shares, as determined on the date of their vesting. This will be treated as ordinary income by you and will be subject to withholding by the Company when required by applicable law. The Company shall satisfy the withholding
requirements as set forth in Section 9 below. 

  
 2 

 9. Withholding Taxes and Stock Withholding. Regardless of any action the Company or your actual
employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), you acknowledge
that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in
connection with any aspect of the award, including the award or vesting of such Shares, the subsequent sale of Shares under this award and the receipt of any dividends; and (2) do not commit to structure the terms of the award to reduce or
eliminate your liability for Tax-Related Items. You acknowledge that if you are subject to Tax-Related Items in more than one jurisdiction, the Company and/or the Employer may be required to withhold or account for Tax-Related Items in more than one
jurisdiction. 
 The Company will only recognize you as a record holder of Shares if you have paid or made adequate arrangements
satisfactory to the Company and/or the Employer to satisfy all withholding and payment on account obligations of the Company and/or the Employer. In this regard, you authorize the Company and/or the Employer to withhold all applicable Tax-Related
Items legally payable by you from your wages or other cash compensation paid to you by the Company and/or the Employer. With the Company’s consent, these arrangements may also include, if permissible under local law, (a) withholding Shares
that otherwise would be issued to you when they vest, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum statutory withholding amount, (b) having the Company withhold taxes from the proceeds of the
sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf and you hereby authorize such sales by this authorization), (c) your payment of a cash amount, or (d) any other
arrangement approved by the Company; all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable; provided however, that if you are a
Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) shall establish the method of withholding from alternatives (a)-(d) above, and the
Committee shall establish the method prior to the Tax-Related Items withholding event. The Fair Market Value of these Shares, determined as of the effective date when taxes otherwise would have been withheld in cash, will be applied as a credit
against the withholding taxes. You shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of your participation in the Plan or your purchase of Shares that
cannot be satisfied by the means previously described. Finally, you acknowledge that the Company has no obligation to deliver Shares to you until you have satisfied the obligations in connection with the Tax-Related Items as described in this
Section. 
 10. Acknowledgement. The Company and you agree that the Performance Shares Award is granted under and governed by the Notice, this
Agreement and the provisions of the Plan (incorporated herein by reference). You: (a) acknowledge receipt of a copy of the Plan and the Plan prospectus, (b) represent that you have carefully read and are familiar with their provisions, and
(c) hereby accept the Performance Shares Award subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice. You hereby agree to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions relating to the Plan, the Notice and this Agreement. 
 11. Entire Agreement; Enforcement of
Rights. This Agreement, the Plan and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or

  
 3 

 
negotiations concerning the purchase of the Shares hereunder are superseded. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be
effective unless in writing and signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party. 

12. Compliance with Laws and Regulations. The issuance of Shares will be subject to and conditioned upon compliance by the Company and you with
all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Class A Common Stock may be listed or quoted at the time of such
issuance or transfer. The Shares issued pursuant to this Agreement shall be endorsed with appropriate legends, if any, determined by the Company. 
 13.
Governing Law; Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of this Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of this Agreement shall be enforceable in accordance with its terms. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance
with the laws of the State of Delaware, without giving effect to principles of conflicts of law. For purposes of litigating any dispute that may arise directly or indirectly from the Plan, the Notice and this Agreement, the parties hereby submit and
consent to litigation in the exclusive jurisdiction of the State of California and agree that any such litigation shall be conducted only in the courts of California in Santa Barbra County or the federal courts of the United States for the Central
District of California and no other courts. 
 14. No Rights as Employee, Director or Consultant. Nothing in this Agreement shall affect in
any manner whatsoever the right or power of the Company, or a Parent, Subsidiary or Affiliate of the Company, to terminate your Service, for any reason, with or without Cause. 

15. Consent to Electronic Delivery of All Plan Documents and Disclosures. By acceptance of this Performance Shares Award, you consent to the
electronic delivery of the Notice, this Agreement, the Plan, account statements, Plan prospectuses required by the Securities and Exchange Commission, U.S. financial reports of the Company, and all other documents that the Company is required to
deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the Performance Shares Award. Electronic delivery may include the delivery of a link to a Company
intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion. You acknowledge that you may receive from the Company a
paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or electronic mail at [insert email]. You further acknowledge that you will be provided with a paper copy of any
documents delivered electronically if electronic delivery fails; similarly, you understand that you must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery
fails. Also, you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an electronic mail address), at any time by notifying the Company of
such revised or revoked consent by telephone, postal service or electronic mail at [insert email]. Finally, you understand that you are not required to consent to electronic delivery. 

  
 4 

 16. Adjustment. In the event of a stock split, a stock dividend or a similar change in Company
stock, the number of Shares covered by the Performance Shares Award may be adjusted pursuant to the Plan. 
 17. Award Subject to Company Clawback or
Recoupment. To the extent permitted by applicable law, Performance Shares Award shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of
your employment or other Service with the Company that is applicable to you. In addition to any other remedies available under such policy, applicable law may require the cancellation of your Performance Shares Award (whether vested or unvested) and
the recoupment of any gains realized with respect to your Performance Shares Award. 
 BY ACCEPTING THE PERFORMANCE SHARES AWARD, YOU AGREE
TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. 

  
 5 

 NOTICE OF STOCK BONUS AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 NOTICE OF STOCK BONUS AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 Unless otherwise defined herein, the terms defined in the AppFolio, Inc. (the “Company”) 2015 Stock
Incentive Plan (the “Plan”) shall have the same meanings in this Notice of Stock Bonus Award (the “Notice”) and the attached Stock Bonus Award Agreement (the “Stock Bonus
Agreement”). You have been granted an award of Shares under the Plan (the “Stock Bonus Award”) subject to the terms and conditions of the Plan, this Notice and the attached Stock Bonus Agreement. 

 

			
	 Name:
		
		
	 Address:
		
		
	 Number of Shares:
		
		
	 Date of Grant:
		
		
	 Vesting Commencement Date:
		[INSERT DATE HERE].
		
	 Vesting Schedule:
		[INSERT VESTING SCHEDULE HERE].

 You acknowledge that the vesting of the Shares pursuant to this Notice is earned only by continuing Service. By accepting this
Stock Bonus Award, you and the Company agree that this Stock Bonus Award is granted under and governed by the terms and conditions of the Plan, the Notice and the Stock Bonus Agreement. You acknowledge and agree that the Vesting Schedule may change
prospectively in the event that your Service status changes between full and part-time status in accordance with Company policies relating to work schedules and vesting of awards. You further acknowledge that the grant of this Stock Bonus Award by
the Company is at the Company’s sole discretion, and does not entitle you to further grant(s) of Stock Bonus Award(s) or any other award(s) under the Plan or any other plan or program maintained by the Company or any Parent, Subsidiary or
affiliate of the Company. By accepting this Stock Bonus Award, you consent to electronic delivery as set forth in the Stock Bonus Agreement. 
  

									
	PARTICIPANT:				APPFOLIO, INC.
					
	Signature:		  
				By:		  

	Print Name:		  
				Name:		  

							Its:		  

 STOCK BONUS AWARD AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 STOCK BONUS AWARD AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 You have been granted a Stock Bonus Award (“Stock Bonus Award”) by AppFolio, Inc. (the
“Company”), subject to the terms, restrictions and conditions of the Plan, the Notice of Stock Bonus Award (the “Notice”) and this Stock Bonus Award Agreement (this
“Agreement”). 
 1. Issuance. Your Stock Bonus Award shall be issued in Shares, and the Company’s transfer agent
shall record ownership of such Shares in your name as soon as reasonably practicable. 
 2. No Stockholder Rights. Unless and until you are
recorded as the holder of such Shares on the stock records of the Company and its transfer agent, you shall have no right to dividends or to vote Shares. 

3. No Transfer. In addition to any other limitation on transfer created by applicable securities laws or any other agreement between the Company
and you, you may not transfer any Unvested Shares, or any interest therein, unless consented to in writing by a duly authorized representative of the Company. Any purported transfer is void and of no effect, and no purported transferee thereof will
be recognized as a holder of the Unvested Shares for any purpose whatsoever. Should such a transfer purport to occur, the Company may refuse to carry out the transfer on its books, set aside the transfer, or exercise any other legal or equitable
remedy. In the event the Company consents to a transfer of Unvested Shares, all transferees of Shares or any interest therein will receive and hold such Shares or interest subject to the provisions of this Agreement. “Unvested
Shares” are Shares that have not yet vested pursuant to the terms of the vesting schedule set forth in the Notice. 
 4.
Termination. If your Service terminates for any reason, all Unvested Shares shall immediately be forfeited to the Company, and all rights you have to such Unvested Shares shall immediately terminate. In case of any dispute as to whether a
termination of Service has occurred, the Committee shall have sole discretion to determine whether such termination has occurred and the effective date of such termination. 

5. Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto. 

6. Notices. Any notice to be given under the terms of the Plan shall be addressed to the Company in care of its principal office, and any notice
to be given to you shall be addressed to you at the address maintained by the Company for such person or at such other address as you may specify in writing to the Company. 

7. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall he deemed an original and all of which together
shall constitute one instrument. 
 8. Tax Consequences. YOU SHOULD CONSULT A TAX ADVISER BEFORE ACQUIRING THE SHARES IN THE JURISDICTION IN
WHICH YOU ARE SUBJECT TO TAX. Shares shall not be issued under this Agreement unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the acquisition or vesting of Shares. 

  
 2 

 (a) U.S. Tax Consequences. Upon vesting of Shares, you will include in taxable
income the difference between the fair market value of the vesting Shares, as determined on the date of their vesting. This will be treated as ordinary income by you and will be subject to withholding by the Company when required by applicable law.
The Company shall satisfy the withholding requirements as set forth in Section 9 below. 
 9. Withholding Taxes and Stock Withholding.
Regardless of any action the Company or your actual employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding
(“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the Employer (1) make no representations or
undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the award, including the award or vesting of such Shares, the subsequent sale of Shares under this award and the receipt of any dividends; and (2) do
not commit to structure the terms of the award to reduce or eliminate your liability for Tax-Related Items. You acknowledge that if you are subject to Tax-Related Items in more than one jurisdiction, the Company and/or the Employer may be required
to withhold or account for Tax-Related Items in more than one jurisdiction. 
 The Company will only recognize you as a record holder of
Shares if you have paid or made adequate arrangements satisfactory to the Company and/or the Employer to satisfy all withholding and payment on account obligations of the Company and/or the Employer. In this regard, you authorize the Company and/or
the Employer to withhold all applicable Tax-Related Items legally payable by you from your wages or other cash compensation paid to you by the Company and/or the Employer. With the Company’s consent, these arrangements may also include, if
permissible under local law, (a) withholding Shares that otherwise would be released when they vest, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum statutory withholding amount, (b) having
the Company withhold taxes from the proceeds of the sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf and you hereby authorize such sales by this authorization), (c) your
payment of a cash amount, or (d) any other arrangement approved by the Company; all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if
applicable; provided however, that if you are a Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) shall establish the method of withholding
from alternatives (a)-(d) above, and the Committee shall establish the method prior to the Tax-Related Items withholding event. The Fair Market Value of these Shares, determined as of the effective date when taxes otherwise would have been
withheld in cash, will be applied as a credit against the withholding taxes. You shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of your participation
in the Plan or your purchase of Shares that cannot be satisfied by the means previously described. Finally, you acknowledge that the Company has no obligation to deliver Shares to you until you have satisfied the obligations in connection with the
Tax-Related Items as described in this Section. 
 10. Acknowledgement. The Company and you agree that the Stock Bonus Award is granted under
and governed by the Notice, this Agreement and the provisions of the Plan (incorporated herein by reference). You: (a) acknowledge receipt of a copy of the Plan and the Plan prospectus, 

  
 3 

 
(b) represent that you have carefully read and are familiar with their provisions, and (c) hereby accept the Stock Bonus Award subject to all of the terms and conditions set forth
herein and those set forth in the Plan and the Notice. You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice and the Stock Bonus Award. 

11. Entire Agreement; Enforcement of Rights. This Agreement, the Plan and the Notice constitute the entire agreement and understanding of the
parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Shares hereunder are superseded. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver
of any rights of such party. 
 12. Compliance with Laws and Regulations. The issuance of Shares will be subject to and conditioned upon
compliance by the Company and you with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Class A Common Stock may
be listed or quoted at the time of such issuance or transfer. The Shares issued pursuant to this Agreement shall be endorsed with appropriate legends, if any, determined by the Company. 

13. Governing Law; Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties
agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the
balance of this Agreement shall be interpreted as if such provision were so excluded and (c) the balance of this Agreement shall be enforceable in accordance with its terms. This Agreement and all acts and transactions pursuant hereto and the
rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. For purposes of litigating any dispute that may
arise directly or indirectly from the Plan, the Notice and this Agreement, the parties hereby submit and consent to litigation in the exclusive jurisdiction of the State of California and agree that any such litigation shall be conducted only in the
courts of California in Santa Barbra County or the federal courts of the United States for the Central District of California and no other courts. 
 14.
No Rights as Employee, Director or Consultant. Nothing in this Agreement shall affect in any manner whatsoever the right or power of the Company, or a Parent, Subsidiary or Affiliate of the Company, to terminate your Service, for any
reason, with or without Cause. 
 15. Consent to Electronic Delivery of All Plan Documents and Disclosures. By acceptance of this Stock Bonus
Award, you consent to the electronic delivery of the Notice, this Agreement, the Plan, account statements, Plan prospectuses required by the Securities and Exchange Commission, U.S. financial reports of the Company, and all other documents that the
Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the Stock Bonus Award. Electronic delivery may include the delivery of a
link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion. You acknowledge that you may receive
from the Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, 

  
 4 

 
through a postal service or electronic mail at [insert email]. You further acknowledge that you will be provided with a paper copy of any documents delivered electronically if electronic delivery
fails; similarly, you understand that you must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, you understand that your consent may be revoked
or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service
or electronic mail at [insert email]. Finally, you understand that you are not required to consent to electronic delivery. 
 16. Adjustment.
In the event of a stock split, a stock dividend or a similar change in Company stock, the number of Shares covered by the Stock Bonus Award may be adjusted pursuant to the Plan. 

17. Award Subject to Company Clawback or Recoupment. To the extent permitted by applicable law, the Stock Bonus Award shall be subject to
clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of your employment or other Service with the Company that is applicable to you. In addition to any other
remedies available under such policy, applicable law may require the cancellation of your Stock Bonus Award (whether vested or unvested) and the recoupment of any gains realized with respect to your Stock Bonus Award. 

BY ACCEPTING THE STOCK BONUS AWARD, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. 

  
 5 

 NOTICE OF STOCK APPRECIATION RIGHT AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 NOTICE OF STOCK APPRECIATION RIGHT AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 Unless otherwise defined herein, the terms defined in the AppFolio, Inc. (the “Company”) 2015 Stock
Incentive Plan (the “Plan”) shall have the same meanings in this Notice of Stock Appreciation Right Award (the “Notice of Grant”) and the attached Stock Appreciation Right Agreement (the
“SAR Agreement”). You have been granted an award of Stock Appreciation Rights (the “SAR”) of the Company under the Plan subject to the terms and conditions of the Plan, this Notice of Grant and the SAR
Agreement. 
  

			
		
	Name:		
		
	Address:		
		
	Date of Grant:		
		
	Vesting Commencement Date:		
		
	Fair Market Value on Date of Grant:		
		
	Total Number of Shares:		
		
	Expiration Date:		
		
	Vesting Schedule:		[INSERT VESTING SCHEDULE].

 You acknowledge that the vesting of the SAR pursuant to this Notice of Grant is earned only by continuing Service. By
accepting the SAR, you and the Company agree that the SAR is granted under and governed by the terms and conditions of the Plan, the Notice of Grant and the SAR Agreement. You acknowledge and agree that the Vesting Schedule may change prospectively
in the event that your Service status changes between full and part-time status in accordance with Company policies relating to work schedules and vesting of awards. You further acknowledge that the grant of this SAR by the Company is at the
Company’s sole discretion, and does not entitle you to further grant(s) of SAR(s) or any other award(s) under the Plan or any other plan or program maintained by the Company or any Parent, Subsidiary or Affiliate of the Company. By accepting
the SAR, you consent to electronic delivery as set forth in the SAR Agreement. 
  

									
	PARTICIPANT:				APPFOLIO, INC.
					
	Signature:		  
				By:		  

	Print Name:		  
				Name:		  

							Its:		  

 STOCK APPRECIATION RIGHT AWARD AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 STOCK APPRECIATION RIGHT AWARD AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 You have been granted an award of Stock Appreciation Rights (the “SAR”) by AppFolio, Inc. (the
“Company”) under the 2015 Stock Incentive Plan (the “Plan”), subject to the terms and conditions of the Plan, the Notice of Stock Appreciation Right Award (the “Notice of
Grant”) and this Stock Appreciation Right Agreement (the “Agreement”). 
 1. Grant of
SAR. You have been granted a SAR for the number of Shares set forth in the Notice of Grant at the fair market value set forth in the Notice of Grant. In the event of a conflict between the terms and conditions of the Plan and the terms and
conditions of this Agreement, the terms and conditions of the Plan shall prevail. 
 2. Termination Period. 

(a) General Rule. If your Service terminates for any reason except death or Disability, and other than for Cause, then this SAR will
expire at the close of business at Company headquarters on the date three (3) months after your termination of Service (subject to the expiration detailed in Section 6). In no event shall this SAR be exercised later than the Expiration
Date set forth in the Notice of Grant. If your Service is terminated for Cause, this SAR will expire upon the date of such termination. The Company determines when your Service terminates for all purposes under this Agreement. 

(b) Death; Disability. If you die before your Service terminates (or you die within three (3) months of your termination of
Service to the Company other than for Cause), then this SAR will expire at the close of business at Company headquarters on the date twelve (12) months after the date of death (subject to the expiration detailed in Section 6). If your
Service terminates because of your Disability, then this SAR will expire at the close of business at Company headquarters on the date twelve (12) months after your termination date (subject to the expiration detailed in Section 6). 

(c) No Notice. You are responsible for keeping track of these exercise periods following your termination of Service for any reason.
The Company will not provide further notice of such periods. In no event shall this SAR be exercised later than the Expiration Date set forth in the Notice of Grant. 

3. Vesting Rights. Subject to the applicable provisions of the Plan and this Agreement, this SAR may be exercised, in whole or
in part, in accordance with the schedule set forth in the Notice of Grant. 
 4. Exercise of SAR. 

(a) Right to Exercise. This SAR is exercisable during its term in accordance with the Vesting Schedule set forth in the Notice of Grant
and the applicable provisions of the Plan and this Agreement. In the event of your death, Disability, or other cessation of Service, the exercisability of the SAR is governed by the applicable provisions of the Plan, the Notice of Grant and this
Agreement. This SAR may not be exercised for a fraction of a Share. 

  
 2 

 (b) Method of Exercise. This SAR is exercisable by delivery of an exercise notice in a
form specified by the Company (the “Exercise Notice”), which shall state the election to exercise the SAR, the number of Shares in respect of which the SAR is being exercised (the “Exercised Shares”),
and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be delivered in person, by mail, via electronic mail or facsimile or by other authorized method to the
Secretary of the Company or other person designated by the Company. This SAR shall be deemed to be exercised upon receipt by the Company of a fully executed Exercise Notice and any applicable tax withholding due upon exercise of the SAR. 

(c) No Shares shall be issued pursuant to the exercise of this SAR unless such issuance and exercise complies with all relevant provisions of
law and the requirements of any stock exchange or quotation service upon which the Shares are then listed. Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to you on the date the SAR is exercised
with respect to such Exercised Shares. 
 5. Non-Transferability of SAR. This SAR may not be transferred in any manner
other than by will or by the laws of descent or distribution or court order and may be exercised during your lifetime only by you unless otherwise permitted by the Committee on a case-by-case basis. The terms of the Plan and this Agreement shall be
binding upon your executors, administrators, heirs, successors and assign. 
 6. Term of SAR. This SAR shall in any
event expire on the expiration date set forth in the Notice of Grant, which date is ten (10) years after the Date of Grant. 
 7.
Tax Consequences. You should consult a tax adviser for tax consequences relating to this SAR in the jurisdiction in which you are subject to tax. YOU SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS SAR OR DISPOSING OF THE
SHARES. If you are an Employee or a former Employee, the Company may be required to withhold from your compensation an amount equal to the minimum amount the Company is required to withhold for income and employment taxes or collect from you and pay
to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise. 
 8.
Withholding Taxes and Stock Withholding. Regardless of any action the Company or your actual employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on
account or other tax-related withholding (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the
Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the SAR, including the grant, vesting or exercise of the SAR, the subsequent sale of Shares acquired pursuant
to such exercise and the receipt of any dividends; and (2) do not commit to structure the terms of the grant or any aspect of the SAR to reduce or eliminate your liability for Tax-Related Items. You acknowledge that if you are subject to
Tax-Related Items in more than one jurisdiction, the Company and/or the Employer may be required to withhold or account for Tax-Related Items in more than one jurisdiction. 

Prior to exercise of the SAR, you shall pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all withholding and
payment on account obligations of the Company and/or the Employer. In this regard, you authorize the Company and/or the Employer to 

  
 3 

 
withhold all applicable Tax-Related Items legally payable by you from your wages or other cash compensation paid to you by the Company and/or the Employer. With the Company’s consent, these
arrangements may also include, if permissible under local law, (a) withholding Shares that otherwise would be issued to you when you exercise this SAR, provided that the Company only withholds the amount of Shares necessary to satisfy the
minimum statutory withholding amount, (b) having the Company withhold taxes from the proceeds of the sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf and you hereby
authorize such sales by this authorization), (c) your payment of a cash amount, or (d) any other arrangement approved by the Company; all under such rules as may be established by the Committee and in compliance with the Company’s
Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable; provided however, that if you are a Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the
Exchange Act) shall establish the method of withholding from alternatives (a)-(d) above, and the Committee shall establish the method prior to the Tax-Related Items withholding event. The Fair Market Value of these Shares, determined as of the
effective date of the SAR exercise, will be applied as a credit against the withholding taxes. You shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of
your participation in the Plan or your purchase of Shares that cannot be satisfied by the means previously described. Finally, you acknowledge that the Company has no obligation to honor the exercise or deliver Shares to you until you have satisfied
the obligations in connection with the Tax-Related Items as described in this Section. 
 9. Acknowledgement.
The Company and you agree that the SAR is granted under and governed by the Notice of Grant, this Agreement and the provisions of the Plan (incorporated herein by reference). You: (a) acknowledge receipt of a copy of the Plan and the Plan
prospectus, (b) represent that you have carefully read and are familiar with their provisions, and (c) hereby accept the SAR subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice of
Grant. You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice of Grant and the SAR Agreement. 

10. Entire Agreement; Enforcement of Rights. This Agreement, the Plan and the Notice of Grant constitute the
entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Shares hereunder are
superseded. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the parties to this Agreement. The failure by either party to enforce any rights
under this Agreement shall not be construed as a waiver of any rights of such party. 
 11. Compliance with Laws and
Regulations. The issuance of Shares will be subject to and conditioned upon compliance by the Company and you with all applicable state, federal and foreign laws and regulations and with all applicable requirements of
any stock exchange or automated quotation system on which the Company’s Class A Common Stock may be listed or quoted at the time of such issuance or transfer. The Shares issued pursuant to this Agreement shall be endorsed with appropriate
legends, if any, determined by the Company. 
 12. Governing Law; Severability. If one or more provisions of
this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good 

  
 4 

 
faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement,
(b) the balance of this Agreement shall be interpreted as if such provision were so excluded and (c) the balance of this Agreement shall be enforceable in accordance with its terms. This Agreement and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. For purposes of litigating any
dispute that may arise directly or indirectly from the Plan, the Notice of Grant and this Agreement, the parties hereby submit and consent to litigation in the exclusive jurisdiction of the State of California and agree that any such litigation
shall be conducted only in the courts of California in Santa Barbra County or the federal courts of the United States for the Central District of California and no other courts. 

13. No Rights as Employee, Director or Consultant. Nothing in this Agreement shall affect in any manner whatsoever the right or
power of the Company, or a Parent, Subsidiary or Affiliate of the Company, to terminate your Service, for any reason, with or without Cause. 

14. Consent to Electronic Delivery of All Plan Documents and Disclosures. By your acceptance of this SAR, you
consent to the electronic delivery of the Notice of Grant, this Agreement, the Plan, account statements, Plan prospectuses required by the Securities and Exchange Commission, U.S. financial reports of the Company, and all other documents that the
Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the SAR. Electronic delivery may include the delivery of a link to a
Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion. You acknowledge that you may receive from the
Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or electronic mail at [insert email]. You further acknowledge that you will be provided with a paper copy of
any documents delivered electronically if electronic delivery fails; similarly, you understand that you must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic
delivery fails. Also, you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an electronic mail address), at any time by notifying the
Company of such revised or revoked consent by telephone, postal service or electronic mail at [insert email]. Finally, you understand that you are not required to consent to electronic delivery. 

15. Adjustment. In the event of a stock split, a stock dividend or a similar change in Company stock, the number
of Shares covered by this SAR and the exercise price per Share may be adjusted pursuant to the Plan. 
 16. Lock-Up
Agreement. In connection with the initial public offering of the Company’s securities and upon request of the Company or the underwriters managing any underwritten offering of the Company’s securities, you hereby
agree not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company however and whenever acquired (other than those included in the registration) without the prior written
consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days) from the effective date of such registration as may be requested by the Company or such managing underwriters
and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the public offering; provided 

  
 5 

 
however that, if during the last seventeen (17) days of the restricted period the Company issues an earnings release or material news or a material event relating to the Company occurs, or
prior to the expiration of the restricted period the Company announces that it will release earnings results during the sixteen (16)-day period beginning on the last day of the restricted period, then, upon the request of the managing underwriter,
to the extent required by any FINRA rules, the restrictions imposed by this Section shall continue to apply until the end of the third trading day following the expiration of the fifteen (15)-day period beginning on the issuance of the earnings
release or the occurrence of the material news or material event. In no event will the restricted period extend beyond two hundred sixteen (216) days after the effective date of the registration statement. 

17. Award Subject to Company Clawback or Recoupment. To the extent permitted by applicable law, the SAR shall be
subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of your employment or other Service that is applicable to you. In addition to any other remedies
available under such policy, applicable law may require the cancellation of your SAR (whether vested or unvested) and the recoupment of any gains realized with respect to your SAR. 

BY ACCEPTING THIS SAR, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. 

  
 6 

 NOTICE OF RESTRICTED STOCK UNIT AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 NOTICE OF RESTRICTED STOCK UNIT AWARD 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 Unless otherwise defined herein, the terms defined in the AppFolio, Inc. (the “Company”) 2015 Stock
Incentive Plan (the “Plan”) shall have the same meanings in this Notice of Restricted Stock Unit Award (the “Notice”) and the attached Restricted Stock Unit Agreement (the “RSU
Agreement”). You have been granted an award of Restricted Stock Units (“RSUs”) under the Plan subject to the terms and conditions of the Plan, this Notice and the attached RSU Agreement. 

 

			
	Name:		
		
	Address:		
		
	Number of RSUs:		
		
	Date of Grant:		
		
	Vesting Commencement Date:		
		
	Expiration Date:		The date on which settlement of all RSUs granted hereunder occurs. This RSU expires earlier if your Service terminates earlier, as described in the RSU Agreement.
		
	Vesting Schedule:		[INSERT VESTING SCHEDULE].
		
	Additional Terms:		 ̈ If this box is checked, the additional terms and conditions set forth on Attachment 1 hereto (as executed by the Company) are applicable and are incorporated herein by
reference. No document need be attached as Attachment 1 if the box is not checked.

 You acknowledge that the vesting of the RSUs pursuant to this Notice is earned only by continuing Service. By accepting this
award, you and the Company agree that this award is granted under and governed by the terms and conditions of the Plan, the Notice and the RSU Agreement. You acknowledge and agree that the Vesting Schedule may change prospectively in the event that
your Service status changes between full and part-time status in accordance with Company policies relating to work schedules and vesting of awards. You further acknowledge that the grant of this RSU by the Company is at the Company’s sole
discretion, and does not entitle you to further grant(s) of RSU(s) or any other award(s) under the Plan or any other plan or program maintained by the Company or any Parent, Subsidiary or Affiliate of the Company. By accepting this RSU, you consent
to electronic delivery as set forth in the RSU Agreement. 

  
 2 

									
	PARTICIPANT:				APPFOLIO, INC.
					
	Signature:		  
				By:		  

	Print Name:		  
				Name:		  

							Its:		  

  
 3 

 RESTRICTED STOCK UNIT AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 

 RESTRICTED STOCK UNIT AGREEMENT 

APPFOLIO, INC. 
 2015
STOCK INCENTIVE PLAN 
 You have been granted Restricted Stock Units (“RSUs”) by AppFolio, Inc. (the
“Company”) subject to the terms, restrictions and conditions of the Plan, the Notice of Restricted Stock Unit Award (the “Notice”) and this Restricted Stock Unit Agreement (this “RSU
Agreement”). 
 1. Settlement. Settlement of RSUs shall be made in the same calendar year as the applicable date of vesting under
the vesting schedule set forth in the Notice; provided, however, that if the vesting date under the vesting schedule set forth in the Notice is in December, then settlement of any RSUs that vest in December shall be within 30 days of vesting.
Settlement of RSUs shall be in Shares. Settlement means the delivery of the Shares vested under an RSU. No fractional RSUs or rights for fractional Shares shall be created pursuant to this RSU Agreement. 

2. No Stockholder Rights. Unless and until such time as Shares are issued in settlement of vested RSUs, you shall have no ownership of the
Shares allocated to the RSUs and shall have no right to dividends or to vote such Shares. 
 3. Dividend Equivalents. Dividends, if any
(whether in cash or Shares), shall not be credited to you. 
 4. No Transfer. RSUs may not be sold, assigned, transferred, pledged,
hypothecated, or otherwise disposed of in any manner other than by will or by the laws of descent or distribution or court order or unless otherwise permitted by the Committee on a case-by-case basis. 

5. Termination. If your Service terminates for any reason, all unvested RSUs shall be forfeited to the Company forthwith, and all rights you
have to such RSUs shall immediately terminate. In case of any dispute as to whether your termination of Service has occurred, the Committee shall have sole discretion to determine whether such termination has occurred and the effective date of such
termination. 
 6. Construction. This RSU Agreement is the result of negotiations between and has been reviewed by each of the parties hereto
and their respective counsel, if any; accordingly, this RSU Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto. 

7. Notices. Any notice to be given under the terms of the Plan shall be addressed to the Company in care of its principal office, and any notice
to be given to you shall be addressed to you at the address maintained by the Company for such person or at such other address as you may specify in writing to the Company. 

8. Counterparts. This RSU Agreement may be executed in two or more counterparts, each of which shall he deemed an original and all of which
together shall constitute one instrument. 
 9. Tax Consequences. You acknowledge that you will recognize tax consequences in connection with
the RSUs. You should consult a tax adviser regarding your tax obligations in the jurisdiction where you are subject to tax. 

  
 2 

 (a) U.S. Tax Consequences. You will not recognize taxable income when you are
granted or vest in the RSUs. In general, the RSUs will be taxed when they are settled and you will recognize ordinary income equal to the value of the Shares that you receive from the Company. 

10. Withholding Taxes and Stock Withholding. Regardless of any action the Company or your actual employer (the
“Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), you
acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any
Tax-Related Items in connection with any aspect of the award, including the grant, vesting or settlement of the RSUs, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends; and (2) do not commit to
structure the terms of the award or any aspect of the RSUs to reduce or eliminate your liability for Tax-Related Items. You acknowledge that if you are subject to Tax-Related Items in more than one jurisdiction, the Company and/or the Employer may
be required to withhold or account for Tax-Related Items in more than one jurisdiction. 
 Prior to the settlement of your RSUs, you shall pay or
make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all withholding and payment on account obligations of the Company and/or the Employer. In this regard, you authorize the Company and/or the Employer to withhold
all applicable Tax-Related Items legally payable by you from your wages or other cash compensation paid to you by the Company and/or the Employer. With the Company’s consent, these arrangements may also include, if permissible under local law,
(a) withholding Shares that otherwise would be issued to you when your RSUs are settled, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum statutory withholding amount, (b) having the Company
withhold taxes from the proceeds of the sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf and you hereby authorize such sales by this authorization), (c) your payment of a
cash amount, or (d) any other arrangement approved by the Company; all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable;
provided however, that if you are a Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) shall establish the method of withholding from alternatives
(a)-(d) above, and the Committee shall establish the method prior to the Tax-Related Items withholding event. The Fair Market Value of these Shares, determined as of the effective date when taxes otherwise would have been withheld in cash, will
be applied as a credit against the withholding taxes. You shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of your participation in the Plan or your
purchase of Shares that cannot be satisfied by the means previously described. Finally, you acknowledge that the Company has no obligation to deliver Shares to you until you have satisfied the obligations in connection with the Tax-Related Items as
described in this Section. 
 11. Acknowledgement. The Company and you agree that the RSUs are granted under and governed by the
Notice, this RSU Agreement and the provisions of the Plan (incorporated herein by reference). You: (a) acknowledge receipt of a copy of the Plan and the Plan prospectus, (b) represent that you have carefully read and are familiar with
their provisions, and (c) hereby accept the RSUs subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice. You hereby agree to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions relating to the Plan, the Notice and this RSU Agreement. 

  
 3 

 12. Entire Agreement; Enforcement of Rights. This RSU Agreement, the Plan and the Notice constitute
the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Shares hereunder are
superseded. No modification of or amendment to this RSU Agreement, nor any waiver of any rights under this RSU Agreement, shall be effective unless in writing and signed by the parties to this RSU Agreement. The failure by either party to enforce
any rights under this RSU Agreement shall not be construed as a waiver of any rights of such party. 
 13. Compliance with Laws and
Regulations. The issuance of Shares will be subject to and conditioned upon compliance by the Company and you with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or
automated quotation system on which the Company’s Class A Common Stock may be listed or quoted at the time of such issuance or transfer. The Shares issued pursuant to this RSU Agreement shall be endorsed with appropriate legends, if any,
determined by the Company. 
 14. Governing Law; Severability. If one or more provisions of this RSU Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be
excluded from this RSU Agreement, (b) the balance of this RSU Agreement shall be interpreted as if such provision were so excluded and (c) the balance of this RSU Agreement shall be enforceable in accordance with its terms. This RSU
Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of
conflicts of law. For purposes of litigating any dispute that may arise directly or indirectly from the Plan, the Notice and this RSU Agreement, the parties hereby submit and consent to litigation in the exclusive jurisdiction of the State of
California and agree that any such litigation shall be conducted only in the courts of California in Santa Barbra County or the federal courts of the United States for the Central District of California and no other courts. 

15. No Rights as Employee, Director or Consultant. Nothing in this RSU Agreement shall affect in any manner whatsoever the right or power of the
Company, or a Parent, Subsidiary or Affiliate of the Company, to terminate your Service, for any reason, with or without Cause. 
 16. Consent
to Electronic Delivery of All Plan Documents and Disclosures. By your acceptance of this RSU, you consent to the electronic delivery of the Notice, this RSU Agreement, the Plan, account statements, Plan prospectuses required by the
Securities and Exchange Commission, U.S. financial reports of the Company, and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other
communications or information related to the RSU. Electronic delivery may include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such
other delivery determined at the Company’s discretion. You acknowledge that you may receive from the Company a paper copy of any documents delivered electronically at no cost if you contact the Company by telephone, through a postal service or
electronic mail at [insert email]. You further acknowledge that you will be provided with a paper copy of any documents delivered electronically if electronic delivery fails;  

  
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similarly, you understand that you must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also,
you understand that your consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if you have provided an electronic mail address), at any time by notifying the Company of such revised
or revoked consent by telephone, postal service or electronic mail at [insert email]. Finally, you understand that you are not required to consent to electronic delivery. 

17. Code Section 409A. For purposes of this RSU Agreement, a termination of employment will be determined consistent with the rules
relating to a “separation from service” as defined in Section 409A of the Internal Revenue Code and the regulations thereunder (“Section 409A”). Notwithstanding anything else provided herein,
to the extent any payments provided under this RSU Agreement in connection with your termination of employment constitute deferred compensation subject to Section 409A, and you are deemed at the time of such termination of employment to be a
“specified employee” under Section 409A, then such payment shall not be made or commence until the earlier of (a) the expiration of the six-month period measured from your separation from service or (b) the date of your
death following such a separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you including, without limitation, the additional tax for which you would otherwise
be liable under Section 409A(a)(1)(B) in the absence of such a deferral. To the extent any payment under this RSU Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be
deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant to this Section are intended to constitute separate payments for purposes of
Section 1.409A-2(b)(2) of the Treasury Regulations. 
 18. Adjustment. In the event of a stock split, a stock dividend or a
similar change in Company stock, the number of Shares covered by the RSUs may be adjusted pursuant to the Plan. 
 19. Lock-Up
Agreement. In connection with the initial public offering of the Company’s securities and upon request of the Company or the underwriters managing any underwritten offering of the Company’s securities, you hereby agree not to sell,
make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company however and whenever acquired (other than those included in the registration) without the prior written consent of the Company
or such underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days) from the effective date of such registration as may be requested by the Company or such managing underwriters and to execute an
agreement reflecting the foregoing as may be requested by the underwriters at the time of the public offering; provided however that, if during the last seventeen (17) days of the restricted period the Company issues an earnings release or
material news or a material event relating to the Company occurs, or prior to the expiration of the restricted period the Company announces that it will release earnings results during the sixteen (16)-day period beginning on the last day of the
restricted period, then, upon the request of the managing underwriter, to the extent required by any FINRA rules, the restrictions imposed by this Section shall continue to apply until the end of the third trading day following the expiration of the
fifteen (15)-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. In no event will the restricted period extend beyond two hundred sixteen (216) days after the effective date of
the registration statement. 

  
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 20. Award Subject to Company Clawback or Recoupment. To the extent permitted by applicable law, the
RSUs shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of your employment or other Service that is applicable to you. In addition to any
other remedies available under such policy, applicable law may require the cancellation of your RSUs (whether vested or unvested) and the recoupment of any gains realized with respect to your RSUs. 

BY ACCEPTING THIS RSU, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. 

  
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