Document:

Amended & Restated Registration Rights Agreement

 Exhibit 4.2 
 AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT 
 This Amended and Restated Registration Rights
Agreement dated as of January 31, 2007 (the “Agreement”) by and between Targanta Therapeutics Inc., a corporation duly incorporated under the Canada Business Corporations Act having its head office and principal place of
business in the City of Montreal, Province of Québec (“Targanta Québec”), Targanta Therapeutics (Ontario) Inc., a corporation duly incorporated under the Canada Business Corporations Act having its head office
and principal place of business in the City of Toronto, Province of Ontario (“Targanta Ontario,” with Targanta Québec, the “Canadian Corporations” and, individually, a “Canadian
Corporation”), Targanta Therapeutics Corporation, a corporation duly incorporated under the Delaware General Corporation Law having its head office and principal place of business in the City of Indianapolis, Indiana
(“Targanta U.S.”) and the Investors parties to this Agreement listed on Schedule A hereto (the “Investors”). 
 WHEREAS in accordance with the Québec Articles of Incorporation, each Québec Class A Exchangeable Share and Québec Class B Exchangeable Share may, at the holder’s option, at any
time or automatically, subject to certain conditions, be converted into one (subject to adjustment as provided in such articles) Québec Common Exchangeable Share. 
 WHEREAS in accordance with the Ontario Articles of Incorporation, each Ontario Class B Exchangeable Share and Ontario Class C Exchangeable Share
may, at the holder’s option, at any time or automatically, subject to certain conditions, be converted into one (subject to adjustment as provided in such articles) Ontario Common Exchangeable Share. 
 WHEREAS in accordance with the Québec Articles of Incorporation and the Exchange Agreement, each Québec Class A Exchangeable
Share, Québec Class B Exchangeable Share and Québec Common Exchangeable Share is exchangeable for a share of Series A Preferred Stock, Series B Preferred Stock and Common Stock, respectively, at the option of the holder and, under
certain circumstances, at the option of Targanta Québec. 
 WHEREAS in accordance with the Ontario Articles of Incorporation
and the Exchange Agreement, each Ontario Class B Exchangeable Share, Ontario Class C-1 Exchangeable Share, Ontario Class C-2 Exchangeable Share, Ontario Class C-3 Exchangeable Share and Ontario Common Exchangeable Share is exchangeable for a
share of Series B Preferred Stock, Series C-1 Preferred Stock, Series C-2 Preferred Stock, Series C-3 Preferred Stock and Common Stock, respectively, at the option of the holder and, under certain circumstances, at the option of Targanta Ontario.

 WHEREAS, on or prior to the date hereof, Targanta U.S. will have issued the InterMune Note. 
 WHEREAS in order to induce the Investors to subscribe for shares in the Canadian Corporations and Targanta U.S., Targanta U.S. and the Canadian
Corporations have agreed to grant the rights provided in this Agreement. 

 NOW THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: 
  

	1.	DEFINITIONS 

 1.1 For the purposes of this
Agreement: 
 “1934 Act” means the United States Securities Exchange Act of 1934, as amended; 
 “2005 Registration Rights Agreement” shall mean that Registration Rights Agreement, by and among Targanta U.S., the Canadian Corporations and the other
parties thereto, dated as of December 23, 2005, as amended and restated from time to time; 
 “Act” means the United States Securities
Act of 1933, as amended; 
 “Canadian Corporations” has the meaning ascribed thereto in the preamble hereof; 
 “Canadian Securities Laws” means all applicable securities laws in each of the provinces of Canada, or such provinces in Canada as may be acceptable to
the Investors, acting reasonably, and the respective regulations and rules under such laws together with applicable published policy statements, notices and orders of the securities regulatory authorities in such provinces; 
 “Certificate of Incorporation” means the Second Amended and Restated Certificate of Incorporation of Targanta U.S. as filed with the Secretary of the
State of Delaware, as amended and restated from time to time; 
 “Class A Exchangeable Shares” means Québec Class A Exchangeable
Shares, collectively, and, individually, a “Class A Exchangeable Share”; 
 “Class B Exchangeable Shares” means Ontario
Class B Exchangeable Shares and Québec Class B Exchangeable Shares, collectively, and, individually, a “Class B Exchangeable Share”; 
 “Class C Exchangeable Shares” means Ontario Class C-1 Exchangeable Shares, Ontario Class C-2 Exchangeable Shares and Ontario Class C-3 Exchangeable Shares, collectively, and, individually, a “Class C Exchangeable
Share”; 
 “Common Exchangeable Shares” means Ontario Common Exchangeable Shares and Québec Common Exchangeable Shares,
collectively, and, individually, a “Common Exchangeable Share”; 
 “Common Stock” means the Common Stock, par value $0.0001
per share, of Targanta U.S.; 
 “Converted Basis” means, when referring to a number of: 
  

	 	(a)	shares of Common Stock or Preferred Stock, the number of shares of Common Stock determined when assuming the conversion into shares of Common Stock of all then outstanding shares of
Preferred Stock at the then applicable conversion rates under the Certificate of Incorporation, except that, for the purpose of determining voting rights or approval thresholds, any declared but unpaid dividends on shares of Preferred Stock shall
not be taken into account; 

  

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	 	(b)	Common Exchangeable Shares or Preferred Exchangeable Shares, the number of Common Exchangeable Shares determined when assuming the conversion into Common Exchangeable Shares of all
then outstanding Preferred Exchangeable Shares at the then applicable conversion rates under the Ontario Articles of Incorporation and Québec Articles of Incorporation, as applicable, except that, for the purpose of determining voting rights
or approval thresholds, any declared but unpaid dividends on shares of Preferred Stock shall not be taken into account; 

 “Diluted
Basis” means when referring to a number of shares of Series C-2 Preferred Stock and Series C-3 Preferred Stock, the number of shares of such series determined when assuming the full conversion of all principal amounts outstanding on the
InterMune Note, provided, however, that the InterMune Note will be deemed to convert into the lesser of (a) the number of shares of Series C Preferred Stock (of the applicable series) at the applicable issue price that would
represent 19.9% of the shares of Common Stock on a Fully Diluted, Converted and Exchanged Basis, and (b) the actual number of shares of Series C Preferred Stock (of the applicable series) to which InterMune would then be entitled if the
InterMune Note were converted or deemed to have been converted into the Series C Preferred Stock (of the applicable series) at the applicable issue price for such series; 
 “Exchange Agreement” means the Amended and Restated Exchange Agreement, dated on or around the date hereof, by and among Targanta U.S., the Canadian Corporations and their respective shareholders and
certain others, as amended and restated from time to time; 
 “Exchangeable Shares” means the Common Exchangeable Shares and the Preferred
Exchangeable Shares; 
 “Exchanged Basis” means, when referring to a number of shares of Common Stock or Preferred Stock, the number of
shares of Common Stock or Preferred Stock determined when assuming the exchange for such shares of all then outstanding Common Exchangeable Shares and Preferred Exchangeable Shares, respectively; 
 “Form F-1” means such form under the Act as is in effect on the date hereof or any similar registration form under the Act subsequently adopted by the
SEC; 
 “Form F-3” means such form under the Act as is in effect on the date hereof or any similar registration form under the Act
subsequently adopted by the SEC that permits inclusion or incorporation of substantial information by reference to other documents filed by Targanta U.S. with the SEC; 
 “Form S-1” means such form under the Act as is in effect on the date hereof or any similar registration form under the Act subsequently adopted by the SEC; 
 “Form S-3” means such form under the Act as is in effect on the date hereof or any registration form under the Act subsequently adopted by the SEC that
permits inclusion or incorporation of substantial information by reference to other documents filed by Targanta U.S. with the SEC; 
 “Fully Diluted,
Converted and Exchanged Basis” means, when referring to a number of shares of Common Stock, the number of shares of Common Stock determined on a Diluted Basis, Converted Basis and Exchanged Basis; 
  

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 “Holder” means any person owning or having the right to acquire, directly or indirectly, Registrable
Securities (including, without limitation, upon conversion of the InterMune Note) or any assignee thereof in accordance with subsection 8.1 hereof; 
 “Initial Offering” means the sale by Targanta U.S. of shares of Common Stock in its first underwritten public offering pursuant to a registration statement under the Act pursuant to which shares of Common Stock will be
listed on the Nasdaq Global Market or another United States-based securities exchange or quotation system; 
 “Initiating Holders” shall
have the meaning ascribed thereto in subsection 2.1; 
 “InterMune” means InterMune, Inc., a Delaware corporation; 
 “InterMune Note” means the Senior Secured Convertible Acquisition Note issued by Targanta U.S. pursuant to the Asset Purchase Agreement, by and between
Targanta U.S. and InterMune, dated as of December 23, 2005, as amended, and in accordance with a related Note Issuance Agreement, by and between Targanta U.S. and InterMune, dated as of December 23, 2005, as amended; 
 “Investment Shares” means the Exchangeable Shares, the shares of Preferred Stock and the shares of Common Stock issued or issuable to the Investors,
including for these purposes: (a) shares of Preferred Stock or Common Stock issued or issuable upon the exchange of the Exchangeable Shares owned by the Investors; (b) shares of Preferred Stock issuable upon the conversion of the InterMune
Note (and shares of Common Stock issuable upon conversion of such shares of Preferred Stock); and (c) shares of Series C-1 Preferred Stock or Ontario Class C-1 Exchangeable Shares issuable upon exercise of warrants outstanding as of the date
hereof (and shares of Common Stock issuable upon conversion and/or exchange of such shares of Preferred Stock or Preferred Exchangeable Shares); 
 “Investors” has the meaning ascribed thereto in the preamble hereof; 
 “Ontario Articles of Incorporation” means
the articles of incorporation of Targanta Ontario, as amended and restated from time to time; 
 “Ontario Class B Exchangeable Shares”
means Class B Exchangeable Preferred Shares in the share capital of Targanta Ontario; 
 “Ontario Class C Exchangeable Shares”
means Class C Preferred Exchangeable Shares in the share capital of Targanta Ontario; 
 “Ontario Class C-1 Exchangeable Shares” means
Class C-1 Preferred Exchangeable Shares in the share capital of Targanta Ontario; 
 “Ontario Class C-2 Exchangeable Shares” means Class C-2
Preferred Exchangeable Shares in the share capital of Targanta Ontario; 
  

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 “Ontario Class C-3 Exchangeable Shares” means Class C-3 Preferred Exchangeable Shares in the share
capital of Targanta Ontario; 
 “Ontario Common Exchangeable Shares” means Common Exchangeable Shares in the share capital of Targanta
Ontario; 
 “Preferred Exchangeable Shares” means, collectively, the Class A Exchangeable Shares, the Class B Exchangeable Shares and
the Class C Exchangeable Shares; 
 “Preferred Stock” means, collectively, the Series A Preferred Stock, Series B Preferred Stock and
Series C Preferred Stock; 
 “Principal Shareholders Agreement” means the Amended and Restated Agreement among Principal Shareholders, by
and among Targanta U.S., the Canadian Corporations, certain of the shareholders of such corporations, and the other parties thereto, dated as of the date hereof; 
 “Québec Articles of Incorporation” means the articles of incorporation of Targanta Québec, as amended and restated from time to time; 
 “Québec Class A Exchangeable Shares” means Class A Preferred Exchangeable Shares in the share capital of Targanta Québec; 
 “Québec Class B Exchangeable Shares” means Class B Preferred Exchangeable Shares in the share capital of Targanta Québec;

 “Québec Common Exchangeable Shares” means Common Exchangeable Shares in the share capital of Targanta Québec; 

“register,” “registered” and “registration” refer to a registration effected by preparing and filing a registration
statement or similar document in compliance with the Act, and the declaration or ordering of effectiveness of such registration statement or document; 
 “Registrable Securities” means: (i) any shares of Common Stock issued or issuable upon the conversion and/or exchange of the Investment Shares held by an Investor; (ii) any shares of Common Stock and any shares of
Common Stock issued or issuable upon the conversion or exchange, directly or indirectly, of any securities acquired or received by Investors on or after the date hereof; and (iii) any share of Common Stock issued or issuable as (or issuable
upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange for, or in replacement of, Investment Shares; provided, however, that such
shares of Common Stock shall no longer be deemed to be Registrable Securities when (x) such shares have been registered under the Act pursuant to an effective registration statement filed thereunder, (y) all such shares have been sold
through a broker dealer in the public market in compliance with Regulation S or Rule 144 promulgated under the Act or (z) such shares are sold by an Investor in a transaction in which such Holder’s rights under this Agreement are not
assigned to the purchaser of the Registrable Securities being sold. Whenever reference is made in this Agreement to a request or consent of Investors, Initiating Holders or Holders, as the case may be, holding a certain percentage of Registrable
Securities, the determination of such percentage shall be calculated on a Fully Diluted, Converted and Exchanged Basis; 
  

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 “Registration Expenses” shall have the meaning ascribed thereto in subsection 5.4; 
 “SEC” means the U.S. Securities and Exchange Commission; 
 “Selling Expenses” shall have the meaning ascribed thereto in subsection 5.4; 
 “Series A Preferred Stock” means
the Series A Preferred Stock, par value $0.0001 per share, of Targanta U.S.; 
 “Series B Preferred Stock” means the Series B Preferred
Stock, par value $0.0001 per share, of Targanta U.S.; 
 “Series C Preferred Stock” means the Series C-1 Preferred Stock, the Series C-2
Preferred Stock and the Series C-3 Preferred Stock in the share capital of Targanta U.S.; 
 “Series C-1 Preferred Stock” means the Series
C-1 Preferred Stock, par value $0.0001 per share, of Targanta U.S.; 
 “Series C-2 Preferred Stock” means the Series C-2 Preferred Stock,
par value $0.0001 per share, of Targanta U.S.; 
 “Series C-3 Preferred Stock” means the Series C-3 Preferred Stock, par value $0.0001 per
share, of Targanta U.S.; 
 “Targanta Ontario” has the meaning ascribed thereto in the preamble hereof; 
 “Targanta Québec” has the meaning ascribed thereto in the preamble hereof; 
 “Targanta U.S.” has the meaning ascribed thereto in the preamble hereof; and, 
 “Violation” shall has the meaning ascribed thereto in subsection 6.1.1. 
  

	2.	REQUEST FOR REGISTRATION 

 2.1 If Targanta U.S. shall receive at any
time after the date that is 180 days after the effective date of the Initial Offering a written request from the Holders of at least a majority of the Registrable Securities then outstanding (the “Initiating Holders”) that Targanta
U.S. file a registration statement under the Act, provided the Registrable Securities as to which each registration is so requested have a proposed aggregate offering price to the public of at least US$30,000,000, then Targanta U.S. shall
immediately upon receipt thereof, give written notice of such request to all Holders, and shall, subject to the limitations of this Section 2, use its commercially reasonable efforts to effect, as soon as practicable, the registration under the
Act of all Registrable Securities that the Holders request to be registered (subject to any limitations in this Agreement) in a written request received by Targanta U.S. within 30 days of the mailing of notice by Targanta U.S. pursuant to this
subsection 2.1. 
  

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 2.2 If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an
underwriting, they shall so advise Targanta U.S., in writing, as a part of their written request made pursuant to this Section 2 and Targanta U.S. shall include such information in the written notice referred to in subsection 2.1. The
underwriter will be selected by Targanta U.S. and shall be reasonably acceptable to the Initiating Holders holding at least 60% of the Registrable Securities to be sold in such offering. The right of any Holder to include its Registrable
Securities in such registration shall be conditional upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing
to distribute their securities through such underwriting shall (together with Targanta U.S. as provided in subsection 5.1.5) enter into an underwriting agreement in customary form, and reasonably acceptable to such Initiating Holders. A Holder may
elect to include in such underwriting all or a part of the Registrable Securities it holds. Notwithstanding any other provision of this Section 2, if the underwriter advises Targanta U.S. that marketing factors require a limitation of the
number of shares to be underwritten (including Registrable Securities), then Targanta U.S. shall so advise all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares that may be included in
the underwriting shall be allocated to the Holders of such Registrable Securities on a pro rata basis based on the number of shares of Preferred Stock and Exchangeable Shares held by all such Holders (including the Initiating Holders). If all such
shares are included in the underwritten offering, the number of additional shares that may be included in the underwriting shall be allocated to the Holders of such Registrable Securities on a pro rata basis based on the number of shares of
Preferred Stock and Exchangeable Shares held by all such Holders (including the Initiating Holders). If all such shares are included in the underwritten offering, the number of additional shares that may be included in the underwriting shall be
allocated to the Holders of such Registrable Securities on a pro rata basis based on the number of shares of Common Stock and Common Exchangeable Shares held by all such Holders (including the Initiating Holders); provided, however, in
no event shall securities of the Holders be excluded unless all securities of all other shareholders and Targanta U.S. are first entirely excluded. Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the
registration. Notwithstanding the foregoing, if Targanta U.S. shall furnish to Holders within 10 days of receipt of a written request for registration pursuant to this Section 2, a certificate signed by the chief executive officer of Targanta
U.S. stating that in the good faith judgment of the Board of Directors of Targanta U.S. it would be contrary to the best interest of Targanta U.S. and the Canadian Corporations, taken as a whole, for such registration to be effected at such time,
Targanta U.S. shall have the right to defer such filing for a period of not more than 120 days after receipt of the written request of the Initiating Holders, provided that such right to delay a written request shall be exercised by Targanta
U.S. not more than once in any 12-month period. 
 2.3 Targanta U.S. shall not be required to effect a registration pursuant to subsection 2.1 if Targanta
U.S. has effected three registrations pursuant to subsection 2.1, and such registrations have been declared or ordered effective. 
 2.4 In addition to the
rights provided for in subsection 2.1, in the event the Investors own Registrable Securities at such time as Targanta U.S. shall have qualified for the use of Form S-3, the Investors shall have the right to request an unlimited number of, and
Targanta U.S. shall file, additional registrations on Form S-3; provided, however, that Targanta U.S. shall not be obligated to file and cause to become effective any registration statement on Form S-3 (i) where 

  

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the proposed aggregate offering price of the Registrable Securities to be sold is less than US$3,000,000 or (ii) if, within the calendar year of the
request for registration on Form S-3 by the Investors pursuant to this subsection 2.4, Targanta U.S. has effected two such registrations, and such registrations have been declared or ordered effective. Whenever Targanta U.S. is required by this
subsection 2.4 to effect the registration of the Registrable Securities, each of the procedures and requirements of subsections 2.1 and 2.2, including but not limited to the requirement that Targanta U.S. notify all Holders from whom notice has not
been received and provide them with the opportunity to participate in the offering, shall apply to the registration under this subsection 2.4, provided, however, that the period of time in which such Holders are entitled to notify
Targanta U.S. in writing of their intention to participate shall be 15 days instead of 30 days. 
 2.5
If, however, after the 12th full calendar month after the effective date of the Initial Offering, Targanta U.S. is
not eligible for the use of Form S-3 for secondary sales and the Investors shall thereafter make a request in writing to effect the registration under the Act of an offering of Registrable Securities pursuant to subsection 2.4, Targanta U.S. shall,
as expeditiously as practicable, use its best efforts to effect the registration, on a form of general use under the Act, of all of the shares of Registrable Securities that Targanta U.S. has been requested to register and such registration shall be
in addition to the number of registrations provided in subsection 2.3. 
 2.6 Targanta U.S. shall be entitled to include in any registration statement
referred to in this Section 2, for sale in accordance with the method of disposition specified by the Initiating Holders, shares of Common Stock to be sold by Targanta U.S. for its own account, except as and to the extent that, in the
reasonable opinion of the managing underwriter (if such method of disposition shall be an underwritten public offering), marketing factors require a limitation on the number of the Registrable Securities to be sold by and for the account of the
Holders, in which case the shares of Common Stock to be sold by Targanta U.S. for its own account would be reduced first before any reductions of the Registrable Securities in the manner contemplated in subsection 2.2 of this Agreement. Except for
registration statements on Forms S-4, S-8 or any successor thereto, Targanta U.S. will not file with the SEC any other registration statement with respect to its shares of Common Stock, whether for its own account or that of other shareholders, from
the date of receipt of a written notice from Holders pursuant to this Section 2 until the completion of the period of distribution of the shares of Registrable Securities registered thereby. 
 2.7 Targanta U.S. shall not be required to effect a registration pursuant to this Section 2: 
  

	2.7.1	of any Registrable Securities that an Investor can resell to the public pursuant to Rule 144 under the Act in any 90-day period without registration or any restriction as to volume;

  

	2.7.2	 during the period starting with the date 60 days prior to Targanta U.S.’s good faith estimate of the date of the filing of (provided that Targanta U.S.
has notified the Initiating Holders thereof within 30 days of their registration request), and ending on a date 180 days following the effective date of, a Targanta U.S.-initiated registration or Initial Offering subject to Section 3 below,
provided that (x) Targanta U.S. is actively employing in good faith all reasonable efforts to cause such registration statement to become effective and (y) if such registration statement is not filed at the expiration of 

  

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such 60-day period, then Targanta U.S. may not invoke this subsection 2.7.2 again for 12 months; in which case such registration request by Holders shall not
be counted as a request for registration pursuant to subsection 2.1. 

 2.8 Targanta U.S. will not complete an Initial Offering unless:

 2.8.1 Targanta U.S. becomes a reporting issuer in Ontario at the time of the Initial Offering; or 
 2.8.2 prior to the time at which Targanta U.S. would otherwise be required to do so, Targanta U.S.: 
  

	 	A.	obtains an order or ruling from the Ontario Securities Commission exempting the Holders resident in Ontario from the prospectus requirements of Ontario securities laws with respect
to sales of Registrable Securities on a stock exchange or market on which the Registrable Securities are listed; 

  

	 	B.	provides the Holders with evidence satisfactory to the Holders that the Ontario Securities Commission considers the sale of Registrable Securities of Holders resident in Ontario on
a stock exchange or market on which the Registrable Securities are listed is exempt from, or not subject to, the prospectus requirements of Ontario securities laws; or 

  

	 	C.	provides the Holders with an opinion (unqualified except with respect to customary qualifications contained in opinions of such nature) of legal counsel knowledgeable in matters of
Ontario securities laws that the sale of Registrable Securities of Holders resident in Ontario on a stock exchange or market on which the Registrable Securities are listed is exempt from, or not subject to, the prospectus requirements of Ontario
securities laws; and 

  

	2.8.3	Targanta U.S. becomes a reporting issuer in Québec at the time of the Initial Offering; or 

  

	2.8.4	prior to the time at which Targanta U.S. would otherwise be required to do so, Targanta U. S.: 

  

	 	A.	obtains an order or ruling from the Québec Securities Commission exempting the Holders resident in Québec from the prospectus requirements of Québec securities
laws with respect to sales of Registrable Securities on a stock exchange or market on which the Registrable Securities are listed; 

  

	 	B.	provides the Holders with evidence satisfactory to the Holders that the Québec Securities Commission considers the sale of Registrable Securities of Holders resident in
Québec on a stock exchange or market on which the Registrable Securities are listed is exempt from, or not subject to, the prospectus requirements of Québec securities laws; or 

  

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	 	C.	provides the Holders with an opinion (unqualified except with respect to customary qualifications contained in opinions of such nature) of legal counsel knowledgeable in matters of
Québec securities laws that the sale of Registrable Securities of Holders resident in Québec on a stock exchange or market on which the Registrable Securities are listed is exempt from, or not subject to, the prospectus requirements of
Québec securities laws. 

  

	3.	PIGGY-BACK REGISTRATION 

 3.1 If Targanta U.S. proposes to register
(including for this purpose a registration effected by Targanta U.S. for shareholders other than the Holders, whether under a registration right or otherwise) any of its stock or other securities under the Act (other than a registration relating
solely to the sale of securities to participants in a Targanta U.S. stock option plan, a registration relating to a corporate reorganization or other transaction under Rule 145 of the Act, a registration on any form that does not include
substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, or a registration in which the only shares of Common Stock being registered are shares of Common
Stock issuable upon conversion of debt securities that are also being registered), Targanta U.S. shall, at such time, promptly give each Holder written notice of such registration prior to the filing of the registration statement. Upon the written
request of each Holder given within 15 days after receipt or deemed receipt of such notice by the Holder in accordance with subsection 8.10, Targanta U.S. shall, subject to the provisions of subsection 3.3, cause to be registered under the Act all
of the Registrable Securities that each such Holder has requested to be registered. 
 3.2 Targanta U.S. shall have the right to terminate or withdraw any
registration initiated by it under this Section 3 prior to the effectiveness of such registration, upon written notice to each Holder, whether or not any Holder has elected to include securities in such registration. The expenses of such
withdrawn registration shall be borne by Targanta U.S. in accordance with subsections 5.4 and 5.5 hereof. 
 3.3 In connection with any offering involving an
underwriting of shares being issued by Targanta U.S., Targanta U.S. shall not be required under this Section 3 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon
between Targanta U.S. and the underwriters selected by it (or by other persons entitled to select the underwriters) and enter into an underwriting agreement in customary form and reasonably acceptable to such Holders with an underwriter or
underwriters selected by Targanta U.S. If the total number of securities, including Registrable Securities, requested by shareholders to be included in such offering exceeds the number of securities sold other than by Targanta U.S. that the
underwriters determine in their sole discretion is compatible with the success of the offering, then Targanta U.S. shall be required to include in the offering only that number of such securities, including Registrable Securities, that the
underwriters determine in their sole discretion will not jeopardize the success of the offering (the Registrable Securities so included to be apportioned pro rata among the selling Holders according to the total amount of Registrable Securities
entitled to be included therein owned by each selling Holder in accordance with the inclusion procedure set forth in Section 2.2 mutatis mutandis or in such other 

  

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proportions as shall mutually be agreed to by such selling Holders), but in no event shall (i) the number of Registrable Securities of the selling
Holders included be reduced if any securities of other shareholders are included in the offering or (ii) any shares being sold by a shareholder exercising a registration right pursuant to Section 2 (for which Targanta U.S. has received
notice pursuant to subsection 2.1 prior to it sending notice pursuant to subsection 3.1) be excluded from such offering pursuant to this subsection; provided, however, that in both events, unless the registration is with respect to the
Initial Offering, in no event shall the number of Registrable Securities to be sold by the Holders be reduced below 25% of the total amount of the securities included in such registration. For purposes of the first parenthetical in the preceding
sentence concerning apportionment, for any selling shareholder that is a Holder of Registrable Securities and that is a partnership or corporation, the partners, retired partners and shareholders of such Holder, or the estates and family members of
any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such “selling Holder” shall be
based upon the aggregate amount of Registrable Securities owned by all such related entities and individuals. 
  

	4.	CANADIAN REGISTRATION RIGHTS 

 4.1 After such time as Targanta U.S.
has sold shares of Common Stock in an Initial Offering, Targanta U.S. agrees to comply with the Canadian Securities Laws so as to remain a reporting issuer in good standing in the provinces of Québec and Ontario and to take such other
reasonable action as is necessary to enable the Holders to sell securities of Targanta U.S. to the public in Canada without resale restrictions under the Canadian Securities Laws for 90 days following the date of such Initial Offering in Canada.

  

	5.	OBLIGATIONS OF TARGANTA U.S. 

 5.1 Whenever required under this
Agreement to effect the registration of any Registrable Securities, Targanta U.S. shall, as expeditiously as reasonably possible: 
  

	5.1.1	prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective
and keep such registration statement effective for a period of the earlier of (i) 180 days or (ii) until the distribution contemplated in the registration statement has been completed. This 180-day period shall be extended by any period of
time in which the sellers are prohibited by law or this Agreement from selling Registrable Securities pursuant to such registration statements; 

  

	5.1.2	prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Act with respect to the disposition of all securities covered by such registration statement; 

  

	5.1.3	furnish to the Holders such numbers of copies of the prospectus, including a preliminary prospectus, in conformity with the requirements of the Act, and such other documents as they
may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 

  

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	5.1.4	use its best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be
reasonably requested by the Holders, provided that Targanta U.S. shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such jurisdiction;

  

	5.1.5	enter into and perform its obligations under such customary agreements (including underwriting agreements in customary form) and take all such other actions as the underwriters, if
any, or the Holders of at least 60% of the Registrable Securities being sold reasonably request in order to expedite or facilitate the disposition of such Registrable Securities (including, without limitation, effecting a stock split or a
combination of shares); 

  

	5.1.6	notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Act of the
happening of any event as a result of which the prospectus, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading
in the light of the circumstances then existing, and at the request of any such Holder, prepare and furnish to such Holder a reasonable number of copies of a supplement or an amendment of such prospectus as may be necessary so that as thereafter
delivered to the purchasers of such shares, such prospectus shall not include an untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing. In addition, Targanta U.S. shall immediately notify each seller of Registrable Securities of the issuance of any stop order by the SEC or the relevant officials in Canada suspending the effectiveness of such
registration statement or the initiation or threatening of any proceeding for such purpose and Targanta U.S. shall use its best efforts to prevent the issuance of any stop order or to obtain its withdrawal if such stop order should be issued;

  

	5.1.7	use its best efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Agreement, on the date that such Registrable
Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Agreement, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date
that the registration statement with respect to such securities becomes effective, an opinion, dated such date, of the counsel representing Targanta U.S. for purposes of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and a letter dated such date from the independent public accountants retained by Targanta
U.S., addressed to the underwriters, if any, and such Holders, stating that in the opinion of such accountants, the financial statements of Targanta U.S. included in the registration statement or the prospectus, or any amendment or supplement
thereof, comply as to form in all material respects with the applicable accounting requirements of the Act or Canadian Securities Laws, and such letter shall additionally cover such other financial matters with respect to such registration as such
underwriters, if any, and such Holders may reasonably request; 

  

 - 12 - 

	5.1.8	subject to applicable restrictions necessary or advisable in order to comply with applicable securities laws, use its reasonable best efforts to market the securities covered by
such registration statement; 

  

	5.1.9	cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by Targanta U.S. are then listed. If
no such listing or qualification has then occurred, Targanta U.S. shall use its best efforts to cause such securities to be so listed or qualified on an exchange or in a trading system that is reasonably acceptable to the Holders of a majority of
the Registrable Securities being sold; 

  

	5.1.10	provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later
than the effective date of such registration; 

  

	5.1.11	notify the Holders participating in such registration, promptly after it shall receive notice thereof, of the time when such registration statement has become effective or a
supplement to any prospectus forming a part of such registration statement has been filed or if Targanta U.S. receives a stop order from the SEC; 

  

	5.1.12	subject to the execution by the relevant parties of a confidentiality undertaking in favor of Targanta U.S. and reasonably acceptable to it, make available for inspection upon
reasonable notice during Targanta U.S.’s regular business hours by each Holder selling its Registrable Securities, any underwriter participating in any distribution pursuant to such registration statement, and any attorney, accountant or other
agent retained by such Holder or underwriter, all financial and other records, pertinent corporate documents and properties of Targanta U.S., and cause Targanta U.S.’s officers, directors and employees to supply all information reasonably
requested by such selling Holder, underwriter, attorney, accountant or agent in connection with such registration statement; and 

  

	5.1.13	comply with all applicable rules and regulations under the Act and the 1934 Act or the Canadian Securities Laws. 

 5.2 Notwithstanding any provision hereof, the period of distribution of Registrable Securities in a firm commitment underwritten public offering shall be deemed to
extend until each underwriter has completed the distribution of all securities purchased by it. 
 5.3 It shall be a condition precedent to the obligations
of Targanta U.S. to take any action pursuant to this Agreement with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to Targanta U.S. such information regarding itself, the Registrable Securities held by it,
and the intended method of disposition of such securities as shall be reasonably required to effect the registration of such Holder’s Registrable Securities. 
 5.4 All expenses incurred by Targanta U.S. and its subsidiaries in complying with Sections 2, 3 and 4, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel and independent
public accountants for Targanta U.S. and its subsidiaries, fees and expenses (including counsel fees) incurred in connection with complying with state securities or “blue sky” laws, fees of the National Association of Securities Dealers,

  

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Inc., transfer taxes, fees of transfer agents and registrars and reasonable fees and disbursements of one counsel for the sellers of Registrable Securities
selected by the Investors, but excluding any Selling Expenses, are called “Registration Expenses.” All underwriting discounts and selling commissions applicable to the sale of Registrable Securities are called “Selling
Expenses.” 
 5.5 Targanta U.S. will pay all Registration Expenses in connection with each registration statement under Sections 2 or 3. All Selling
Expenses in connection with each registration statement under Sections 2 or 3 shall be borne by the participating sellers in proportion to the number of shares sold by each, or by such participating sellers other than Targanta U.S. (except to the
extent Targanta U.S. shall be a seller) as they may agree. 
 5.6 With a view to making available to the Holders the benefits of Rule 144 promulgated under
the Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of Targanta U.S. to the public without registration or pursuant to a registration on Form F-3 or Form S-3, Targanta U.S. agrees to:

  

	5.6.1	make and keep public information available, as those terms are understood and defined in SEC Rule 144; 

  

	5.6.2	take such action, including the voluntary registration of its shares of Common Stock under Section 12 of the 1934 Act, as is necessary to enable the Holders to utilize Form S-3
or Form F-3 for the sale of their Registrable Securities, such action to be taken as soon as reasonably practicable after the end of the fiscal year in which the registration statement for the Initial Offering is declared effective;

  

	5.6.3	file with the SEC in a timely manner all reports and other documents required of Targanta U.S. under the Act and the 1934 Act; 

  

	5.6.4	furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by Targanta U.S. that it has complied with the
reporting requirements of SEC Rule 144 (at any time after 90 days after the effective date of the first registration statement filed by Targanta U.S.), the Act, the 1934 Act (at any time after it has become subject to such reporting requirements)
and the applicable Canadian Securities Laws, or that it qualifies as a registrant whose securities may be resold pursuant to Form F-3 or Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of
Targanta U.S. and such other reports and documents so filed by Targanta U.S. and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC or provided in Canadian Securities Laws
that permits the selling of any such securities without registration or pursuant to such form; and 

  

	5.6.5	at any time, at the request of any holder of shares of Registrable Securities, make available to such holder and to any prospective transferee of such Registrable Securities the
information concerning Targanta U.S. described in Rule 144A(d)(4) under the Act. 

  

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	6.	INDEMNIFICATION 

 6.1 In the event any Registrable Securities are
included in a registration statement under this Agreement: 
  

	6.1.1	to the extent permitted by law, Targanta U.S. will indemnify and hold harmless, and hereby does indemnify and hold harmless, each Holder, the partners, members or officers,
directors and shareholders of each Holder, legal counsel and accountants for each Holder, any underwriter (as defined in the Act or Canadian Securities Laws, as applicable) for such Holder and each person, if any, who controls or is alleged to
control such Holder or underwriter within the meaning of the Act or the 1934 Act, as applicable, against any losses, claims, damages or liabilities to which they may become subject under the Act, the 1934 Act, any state securities laws or Canadian
Securities Laws, in each case only insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (each, a “Violation”):
(i) any untrue statement of a material fact contained in such registration statement, including any preliminary prospectus, free writing prospectus or final prospectus contained therein or used in connection therewith or any amendments or
supplements thereto, (ii) the omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, (iii) any violation by Targanta U.S. of the Act, the 1934 Act, any state
securities laws or Canadian Securities Laws or any rule or regulation promulgated under the Act, the 1934 Act, any state securities laws or Canadian Securities Laws, or (iv) any failure to comply with the provisions of this Agreement; and
Targanta U.S. will reimburse each such Holder, underwriter or controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the indemnity agreement contained in this subsection 6.1.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of
Targanta U.S. (which consent shall not be unreasonably withheld), nor shall Targanta U.S. be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation that occurs
in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter or controlling person; 

  

	6.1.2	 to the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless, and hereby does indemnify and hold harmless,
Targanta U.S. and its subsidiaries, each of their directors, each of their officers who has signed the registration statement, each person, if any, who controls or is alleged to control Targanta U.S. and its subsidiaries within the meaning of the
Act, legal counsel and accountants for Targanta U.S. and its subsidiaries, any underwriter, any other Holder selling securities in such registration statement, and any controlling person of any such underwriter or other Holder, against any losses,
claims, damages or liabilities to which any of the foregoing persons may become subject under the Act, the 1934 Act, any state securities laws or Canadian Securities Laws, insofar as such losses, claims, damages or liabilities (or actions in respect
thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in 

  

 - 15 - 

	 	 
conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will reimburse any
person intended to be indemnified pursuant to this subsection 6.1.2 for any legal or other expenses reasonably incurred by such person in connection with investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the indemnity agreement contained in this subsection 6.1.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder
(which consent shall not be unreasonably withheld), provided that in no event shall any indemnity under this subsection 6.1.2 exceed the net proceeds from the offering received by such Holder; 

  

	6.1.3	promptly after receipt by an indemnified party under this subsection 6.1 of notice of the commencement of any action (including any governmental action), such indemnified party
will, if a claim in respect thereof is to be made against any indemnifying party under this subsection 6.1, deliver to the indemnifying party a written notice of the commencement thereof with a copy of all relevant documents and the indemnifying
party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually and reasonably satisfactory to the
parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses
to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve
such indemnifying party of any liability to the indemnified party under this subsection 6.1, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party
otherwise than under this subsection 6.1. After notice from an indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party will not be liable to such indemnified party pursuant to the provisions
of this subsection 6.1 for any legal or other expense subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation, unless (i) the indemnified party shall have employed
counsel in accordance with the first sentence of this subsection 6.1.3, (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time
after the notice of the commencement of the action or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at the expense of the indemnifying party; 

  

	6.1.4	 if the indemnification provided for in this subsection 6.1 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to
any loss, liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such
loss, liability, claim, damage or 

  

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expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the
other in connection with the statements or omissions that resulted in such loss liability, claim, damage or expense, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party
shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party
and the parties’ relative knowledge, access to information, and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, in no event shall any Holder be required to contribute an amount that exceeds the net
proceeds from the offering received by such Holder, or the amount such Holder would have been required to pay had indemnification been available; 

  

	6.1.5	notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions of this subsection 6.1, the provisions in the underwriting agreement shall control; and 

  

	6.1.6	the obligations of Targanta U.S. and Holders under this subsection 6.1 shall survive the completion of any offering of Registrable Securities in a registration statement under this
Agreement and otherwise and shall survive any transfer of any Registrable Securities by such Holder in the manner contemplated in this Agreement. 

  

	7.	REPRESENTATIONS AND WARRANTIES OF TARGANTA U.S. AND THE CANADIAN CORPORATIONS 

 7.1 Each of Targanta U.S. and the Canadian Corporations represents and warrants with respect to itself to the Investors as follows: 
  

	7.1.1	the execution, delivery and performance of this Agreement by each of Targanta U.S. and the Canadian Corporations has been duly authorized by all requisite corporate action and will
not cause a material violation of any provision of any law applicable to Targanta U.S. or the Canadian Corporations, any order of any court or other agency of government applicable to Targanta U.S. and the Canadian Corporations, the Certificate of
Incorporation or By-Laws of Targanta U.S. and the Articles of Incorporation or By-Laws of the Canadian Corporations or any provision of any indenture, agreement or other instrument to which it or any or its properties or assets is bound, conflict
with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument or result in the creation or imposition of any lien, charge or encumbrance of any nature
whatsoever upon any of the properties or assets of Targanta U.S. or the Canadian Corporations; 

  

	7.1.2	this Agreement has been duly executed and delivered by each of Targanta U.S. and each of the Canadian Corporations and constitutes the legal, valid and binding obligation of
Targanta U.S. and each of the Canadian Corporations, enforceable in accordance with its terms, subject to laws of general application from time to time in effect affecting creditors’ rights and the exercise of judicial discretion in accordance
with general equitable principles. 

  

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	8.	MISCELLANEOUS. 

 8.1 The rights to cause Targanta U.S. to register
Registrable Securities pursuant to this Agreement may be assigned (but only with all related obligations under this Agreement) by a Holder to a transferee or assignee of all or any part of such securities provided: (a) such transferee or
assignee is a permitted transferee under the terms of the Principal Shareholders Agreement, (b) such transferee or assignee has acquired at least 25% of the Registrable Securities of the transferor or assignor, (c) Targanta U.S. is, within
a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned, and (d) such transferee or
assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including without limitation the provisions of subsection 8.3 below. 
 8.2 From and after the date of this Agreement, Targanta U.S. and the Canadian Corporations shall not, without the prior written consent of the Holders collectively holding at least 60% of the Registrable Securities,
enter into any binding agreement with any holder or prospective holder of any securities of Targanta U.S. or the Canadian Corporations that would grant such holder or prospective holder rights (a) to include such securities in any registration
filed under Sections 2, 3 or 4 hereof (other than piggyback rights to Targanta U.S. registrations, provided that the Registrable Securities held by such holders must be excluded entirely before any Registrable Securities of any Holder may be
excluded under subsection 3.3 from any registration) or (b) to demand registration of their securities, if such rights, in any respect, would conflict or be on a parity with or superior to the rights granted pursuant to this Agreement.

 8.3 Each Holder hereby agrees, severally and not jointly, that upon the request of Targanta U.S. and the managing underwriter, it will not, without the
prior written consent of the managing underwriter, during the period commencing on the effective date of the registration statement relating to the Initial Offering and ending on the date specified by Targanta U.S. and the managing underwriter
(which period shall not exceed 180 days or such longer period, not to exceed 18 days after the expiration of the 180-day period, as the underwriters or Targanta U.S. shall request in order to facilitate compliance with NASD Rule 2711), directly or
indirectly sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any Registrable Securities
other than Registrable Securities included in the Initial Offering held by it at any time during such period, provided, however, that (a) each Holder shall only be bound by such lock-up for so long as all officers, directors and
shareholders, other than the Holders, holding more than 1% of the voting shares on a Fully Diluted, Converted and Exchanged Basis of Targanta U.S. are bound by such agreements and (b) such agreements provide that any discretionary waiver or
termination by Targanta U.S. or the underwriters of such shareholders’ obligations under this subsection 8.3 or any similar “Market Stand-Off’ Agreements relating to Targanta U.S.’s equity securities shall be applied to all such
persons obligated under such agreements pro rata based on the number of shares of Common Stock, determined on a Fully Diluted, Converted and Exchanged Basis, held by such persons at such time. The making of any request for registration under
Section 2 or 3 shall not be deemed a violation of this subsection 8.3. 
  

 - 18 - 

 8.4 No Holder shall be entitled to exercise any right provided for in this Agreement after such time at which all
Registrable Securities held by such Holder (and any affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be sold without restriction as to volume under Rule 144 of the Act. 
 8.5 In addition to any legend setting forth transfer restrictions under Canadian Securities Laws, each certificate representing shares in the capital of Targanta U.S.
and the Canadian corporations shall, except if registered, be stamped or otherwise imprinted with a legend substantially in the following form: 
 “THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER SUCH ACT AND ALL SUCH APPLICABLE LAWS OR AN EXEMPTION FROM
REGISTRATION IS AVAILABLE.” 
 A certificate shall not bear such legend if in the opinion of counsel satisfactory to Targanta U.S. the securities
represented thereby may be publicly sold without registration under the Act and any applicable state securities laws. 
 8.6 Except as otherwise provided
herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties (including permitted transferees of any shares of Registrable Securities). Nothing in this
Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement. 
 8.7 This Agreement shall be governed by and interpreted and enforced in accordance with the laws applicable in the State of
Delaware. 
 8.8 This Agreement may be executed in one or more counterparts and delivered by facsimile, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
 8.9 The titles and subtitles used in this Agreement are used for convenience only and are not
to be considered in construing or interpreting this Agreement. 
 8.10 Unless otherwise provided, any notice required or permitted under this Agreement shall
be given in writing and shall be deemed effectively given upon personal delivery to the party to be notified, with a copy to its legal counsel, or upon delivery by confirmed facsimile transmission, internationally recognized overnight courier
service, or five days after deposit with the Canadian or the United States Post Office, by registered or certified mail, postage prepaid and addressed to the party to be notified, with a copy to its legal counsel at the address or addresses
indicated for such party on the signature page or Schedule A hereof, or at such other address as such party may designate by 10 days’ advance written notice to the other parties. 
  

 - 19 - 

 8.11 The parties hereto hereby acknowledge that this Agreement has been entered into in an English version and will be
entered into in a French version and hereby agree that the English version and the French version shall be of equivalent legal force and effect for all purposes, provided, however, that in the event of any conflict between the English
and French versions, the English version of this Agreement shall govern to the extent permitted by applicable law. Targanta U.S. covenants that it will arrange within 90 days following the execution of this English version, for a French language
version of this Agreement to be delivered to the parties hereto, together with an opinion from counsel, addressed to the parties hereto, stating that the French language version of this Agreement is in all material respects a complete and proper
translation of the English language version and that the English and French versions of this Agreement are not susceptible of any materially different interpretations with respect to any material matter contained therein, upon receipt of which the
parties to this Agreement hereby undertake to execute the French language version of this Agreement. All communications hereunder and under the French version hereof shall be sent in English. 
 8.12 If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable
attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
 8.13 This Agreement
(including the Schedule hereto) constitutes the full and entire understanding and agreement among the parties with regard to the subjects hereof and supersedes and replaces, from the date hereof, all prior agreements, understandings, negotiations
and discussions, whether oral or written, among any or all of the parties pertaining thereto, including, without limitation, the 2005 Registration Rights Agreement, which is hereby amended and restated. 
 8.14 This Agreement may not be amended or modified without the written consent of Targanta U.S., the Canadian Corporations and Investors holding at least 60% of all of
the outstanding Registrable Securities and no provision hereof may be waived without a written notice to Targanta U.S. and the Canadian Corporations signed by Investors holding at least 60% of all of the outstanding Registrable Securities. Sections
2.8 and 4.1 of this Agreement may not be amended or modified without the written consent of Targanta U.S., the Canadian Corporations and Investors holding at least 60% of all of the outstanding Registrable Securities that are Exchangeable Shares and
such provisions may not be waived without a written notice to Targanta U.S. and the Canadian Corporations signed by Investors holding at least 60% of all of the outstanding Registrable Securities that are Exchangeable Shares. Any amendment or waiver
effected in accordance with this paragraph shall be binding upon each Holder of any Registrable Securities, each future Holder of all such Registrable Securities, and Targanta U.S. and the Canadian Corporations. 
 8.15 If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance
of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 
 8.16 All shares of
Registrable Securities held or acquired by affiliated entities or persons or any investment funds receiving investment management or advisory services from the same investment manager or an affiliate thereof shall be aggregated together for the
purpose of determining the availability of any rights under this Agreement. 
  

 - 20 - 

 [SIGNATURE PAGES FOLLOW] 

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

			
	TARGANTA THERAPEUTICS CORPORATION
		
	By:	 	/s/ Mark Leuchtenberger
	Name:	 	Mark Leuchtenberger
	Title:	 	President and Chief Executive Officer

			
		
	Notice Address:	 	222 Third Street, Suite 2300
		 	Cambridge, MA 02142-1122
		 	Attention: President
		 	Telecopier: (617) 577-9021

			
	
	TARGANTA THERAPEUTICS INC.
		
	By:	 	/s/ Mark Leuchtenberger
	Name:	 	Mark Leuchtenberger
	Title:	 	President and Chief Executive Officer

			
		
	Notice Address:	 	7170 Frederick Banting Street, 2nd Floor
		 	St. Laurent, Québec H4S 2A1 Canada
		 	Attention: President
		 	Telecopier: (514) 282-9889

			
	
	TARGANTA THERAPEUTICS (ONTARIO) INC.
		
	By:	 	/s/ Mark Leuchtenberger
	Name:	 	Mark Leuchtenberger
	Title:	 	President and Chief Executive Officer

			
		
	Notice Address:	 	c/o Targanta Therapeutics Corporation
		 	222 Third Street, Suite 2300
		 	Cambridge, MA 02142-1122
		 	Attention: President
		 	Telecopier: (617) 577-9021

 [Signature Page to Registration Rights Agreement] 

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

			
	
	  
	(Print Name of Investor)

  

			
		
	By:	 	  
	Name (printed):
	Title (if not an individual):

  

			
		
	Address:	 	  
	  
	  

  

			
		
	Email Address:	 	  
	Telecopier:	 	  

 [Signature Page to Registration Rights Agreement] 

 Schedule A – Investors 
 CAISSE DE DÉPÔT ET PLACEMENT DU QUEBEC 
 T2C2/BIO 2000, SOCIÉTÉ EN COMMANDITE 
 SEAFLOWER HEALTH VENTURES III, L.P. 
 SEAFLOWER HEALTH VENTURES III COMPANION FUND, L.P. 
 GENECHEM TECHNOLOGIES
VENTURE FUND LP 
 CANADIAN MEDICAL DISCOVERIES FUND INC. 
 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 
 DILIP MEHTA 
 WILLIAM W. CROUSE 
 THE VENGROWTH ADVANCED LIFE SCIENCES FUND INC. 
 THE VENGROWTH III INVESTMENT FUND INC. 
 INTERMUNE, INC. 
 J&L SHERBLOM FAMILY LLC 
 PHILIPPE VILLERS 
 INVESTISSEMENT QUÉBEC 
 SKYLINE VENTURE PARTNERS III, L.P.

 SKYLINE VENTURE PARTNERS QUALIFIED PURCHASER FUND III, L.P. 
 SKYLINE VENTURE PARTNERS QUALIFIED PURCHASER FUND IV, L.P. 
 RADIUS VENTURE PARTNERS II, L.P. 
 RADIUS VENTURE PARTNERS III, L.P. 
 RADIUS VENTURE PARTNERS III QP, L.P.

 ROBERT KHEDERIAN 
 BROOKSIDE CAPITAL PARTNERS FUND, L.P.

 CADUCEUS PRIVATE INVESTMENTS III, LP 
 ORBIMED ASSOCIATES
III, LP 

 MEDIPHASE VENTURE PARTNERS II LIMITED PARTNERSHIP 
 MEDIPHASE VENTURE PARTNERS II (ANNEX FUND) LIMITED PARTNERSHIP 
 MEDIPHASE VENTURE PARTNERS (DP & UP) LIMITED
PARTNERSHIP 
 MEDIPHASE OFFSHORE MASTER FUND, L.P.2005 Stock Option Plan, as amended

 Exhibit 10.1 
  

 Targanta Therapeutics Corporation 
 a Delaware corporation 
 2005 STOCK OPTION PLAN 
 Adopted on December 23, 2005 
 Amended on August 28, 2006, January 31, 2007 and March 27, 2007 
  

 TABLE OF CONTENTS 
  

			
	 	  	Page
		
	 ARTICLE I Purpose
	  	1
		
	 ARTICLE II Definitions
	  	1
		
	 ARTICLE III Shares Subject to Plan
	  	5
		
	 ARTICLE IV Administration
	  	5
		
	 ARTICLE V Eligibility
	  	7
		
	 ARTICLE VI Annual Limitation on Value of Incentive Stock Options
	  	7
		
	 ARTICLE VII Terms and Conditions of Options
	  	8
		
	 ARTICLE VIII Effect of Certain Changes
	  	11
		
	 ARTICLE IX Amendment
	  	13
		
	 ARTICLE X Issuance of Shares and Compliance with Securities Regulations
	  	13
		
	 ARTICLE XI Application of Funds
	  	14
		
	 ARTICLE XII Notice
	  	14
		
	 ARTICLE XIII Term of Plan
	  	14
		
	 ARTICLE XIV No Contract of Employment
	  	14
		
	 ARTICLE XV Effectiveness of the Plan
	  	15
		
	 ARTICLE XVI Captions
	  	15
		
	 ARTICLE XVII Disqualifying Dispositions
	  	15
		
	 ARTICLE XVIII Governing Law
	  	16
		
	 ARTICLE XIX Financial Statements
	  	16

 TARGANTA THERAPEUTICS CORPORATION 
 2005 Stock Option Plan 
 ARTICLE I 
 Purpose 
 The purpose of the
Plan is (i) to further the growth and success of the Company, its Subsidiaries and Affiliated Entities by enabling Employees and Non-employee Directors of, and consultants and service providers to, the Company or any of its Subsidiaries
or Affiliated Entities to acquire shares of the Company’s Common Stock thereby increasing their personal interest in such growth and success, and (ii) to provide a means of rewarding outstanding performance by such persons to the Company
and/or its Subsidiaries and/or its Affiliated Entities. Options granted under the Plan may be either “incentive stock options,” intended to qualify as such under the provisions of Section 422 of the United States Internal Revenue Code
of 1986, as amended, or “non-qualified stock options.” In this Plan, the terms “Parent” and “Subsidiary” mean “Parent Corporation” and “Subsidiary Corporation,”
respectively, as such terms are defined in Sections 424(e) and (f) of the Code. Unless the context otherwise requires, any Incentive Stock Option or Nonqualified Stock Option is referred to in this Plan as an “Option.”

 ARTICLE II 
 Definitions 
 The following words and terms as used herein shall have the meaning set forth therefor in this Article
II, unless a different meaning is clearly required by the context. Whenever appropriate, words used in the singular shall be deemed to include the plural and vice versa, and the masculine gender shall be deemed to include the feminine gender.

 2.1 Affiliated Entity shall mean (i) Targanta Therapeutics, Inc., a Canadian corporation, (ii) Targanta Therapeutics
(Ontario) Inc., a Canadian corporation and (iii) any person or company that is considered to be affiliated entity of the Company within the meaning of the Ontario Rule. 
 2.2 Associate shall have the meaning set forth in Section 1(1) of the Securities Act (Ontario). 
 2.3 Board shall mean the Board of Directors of the Company. 
 2.4 Code shall mean the U.S. Internal Revenue Code of 1986, as now in effect or as hereafter amended. 
  

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 2.5 Committee shall mean the Compensation Committee appointed by the Board in accordance with the
provisions of Article IV to administer the Plan. 
 2.6 Common Stock shall mean the shares of common stock, $0.0001 par value, of the
Company, and any other securities of the Company to the extent provided in Article VIII, and any and all shares of common stock issuable upon the redemption, retraction or exchange of any outstanding common exchangeable shares in the capital of any
Subsidiary or Affiliated Entity. 
 2.7 Company shall mean Targanta Therapeutics Corporation, a Delaware corporation, and any
successor to it. 
 2.8 Date of Exercise shall have the meaning set forth in Section 7.5. 
 2.9 Date of Grant shall have the meaning set forth in Section 4.3. 
 2.10 Director shall mean a member of the Board or the board of directors of any Subsidiary or Affiliated Entity. 
 2.11 Disability shall have the meaning set forth in Section 22(e)(3) of the Code, as that section may be amended from time to time. The
determination under the Plan that a Grantee’s employment, consulting or other service relationship with the Company terminated as a result of Disability shall not be construed as an admission by the Company of the Disability of the Grantee for
any other purpose. 
 2.12 Disqualifying Disposition shall have the meaning set forth in Article XVII hereof. 
 2.13 Employee shall mean: (i) for the purpose of grants of Options to persons other than residents of Ontario, any individual employed by,
and receiving compensation from, the Company or any Subsidiary, and (ii) for the purpose of grants of Options to residents of Ontario, any individual employed by, and receiving compensation from an Affiliated Entity located in Ontario.

 2.14 Executive shall have the meaning ascribed to the term “executive officer” in the Ontario Rule. 
 2.15 Exercise Notice shall have the meaning set forth in Section 7.5 hereof. 
 2.16 Fair Market Value shall have the meaning set forth in Section 7.2 herein. 
 2.17 Grantee or Optionee shall mean an Employee, Non-employee Director, consultant or other person who provides services to the Company, a
Subsidiary or an Affiliated Entity, and who is granted an Option by the Committee under this Plan. 
  

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 2.18 Immediate Family shall mean a spouse, lineal descendent or antecedent, father, mother,
brother, sister, niece or nephew. 
 2.19 Incentive Plan shall mean: (i) a compensation or incentive arrangement for an
executive, or (ii) a plan providing for compensation or incentive arrangements for Executives. 
 2.20 Incentive Stock Option
shall mean any Option designated as an “incentive stock option” within the meaning of Code Section 422. 
 2.21
Non-employee Director shall have the meaning set forth in Rule 16b-3 promulgated by the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934 (“Exchange Act”), as
such rule may be amended from time to time, or any successor definition adopted by the Commission. 
 2.22 Nonqualified Stock Option
or Nonstatutory Stock Option shall mean any Option that is not an Incentive Stock Option, including any Option that provides at the time of grant that it will not be treated as an Incentive Stock Option. 
 2.23 Officer shall mean a person who is an officer of the Company or a Subsidiary within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder. 
 2.24 Ontario Rule means National Instrument 45-106 (Prospectus and Registration
Exemptions), as amended from time to time, and any successor instrument thereto. 
 2.25 Option shall mean both an Incentive Stock
Option and a Nonqualified Stock Option. 
 2.26 Option Agreement shall mean a written agreement evidencing the right to purchase
shares of Common Stock pursuant to the terms of this Plan, which agreement shall be substantially in the form described in Article VII. 
 2.27 Option Price shall have the meaning set forth in Section 7.2. 
 2.28 Outstanding Issue shall mean
(i) for the purposes of Section 5.2.3.2 and 5.2.3.4, the number of shares of Common Stock outstanding, plus the number of shares of Common Stock then issuable on the conversion of the Preferred Stock, immediately before the share issuance
for which the determination is to be made, excluding shares issued as or under Incentive Plans during the preceding 12 month period, or (ii) otherwise, the number of shares of Common Stock outstanding, plus the number of shares of Common Stock
then issuable on the conversion of the Preferred Stock. 
 2.29 Plan shall mean the Targanta Therapeutics Corporation 2005 Stock
Option Plan, as set forth herein and as amended from time to time. 
  

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 2.30 Preferred Stock shall mean the shares of preferred stock, $0.0001 par value, of the Company,
and shall be deemed to include any and all preferred stock of the Company issuable on the redemption, retraction or exchange of any outstanding exchangeable preferred shares in the capital of any Subsidiary or Affiliated Entity. 
 2.31 Related Person shall have the meaning ascribed to the term “related person” in the Ontario Rule. 
 2.32 Securities Act means the U.S. Securities Act of 1933, as amended from time to time. 
 2.33 Securities Act (Ontario) shall mean the Securities Act (Ontario), as amended from time to time. 
 2.34 Service(s) shall mean the provision of services to the Company or any Subsidiary or Affiliated Entity by any person who is (i) an
Employee, (ii) a Non-employee Director, or (iii) a consultant or other service provider to the Company, any Subsidiary or any Affiliated Entity. 
 2.35 Shares shall have the meaning set forth in Section 3.1 hereof. 
 2.36 Subsidiary
shall mean any present or future subsidiary corporations of the Company as defined in Section 424(f) of the Code and shall include, as of the date hereof any Affiliated Entity that is wholly or at least majority-owned by the Company.

 2.37 Termination For Cause shall mean, with respect to the termination by the Company, a Subsidiary or an Affiliated Entity of the
Grantee’s Service, that such termination is for “Cause” as such term is expressly defined in a then-effective written agreement between the Grantee and the Company or such Subsidiary or Affiliated Entity, or in the absence of
such then-effective written agreement and definition, is based on, in the determination of the Board, the Grantee’s: (i) refusal or failure to act in accordance with any specific, lawful direction or order of the Company, a Subsidiary or
Affiliated Entity; (ii) unfitness or unavailability for service or unsatisfactory performance (other than as a result of Disability); (iii) performance of any act or failure to perform any act in bad faith and to the detriment of the
Company, a Subsidiary or Affiliated Entity; (iv) dishonesty, intentional misconduct or material breach of any agreement with the Company, a Subsidiary or Affiliated Entity; (v) commission of a crime involving dishonesty, breach of trust,
or physical or emotional harm to any person; or (vi) any other action constituting “Cause” under applicable law. 
 2.38 U.S. shall mean the United States of America. 
 2.39 Vesting Commencement Date shall have the meaning set forth
in Section 4.3 hereof. 
  

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 2.40 Vesting Schedule shall have the meaning set forth in Section 4.3 hereof. 
 ARTICLE III 
 Shares Subject to
Plan 
 3.1 Number of Shares Available. The total number of shares of Common Stock (“Shares”) that are
available for granting Options hereunder shall be Two Million Thirty Eight Thousand One Hundred and Eighty-Eight (2,038,188) shares (subject to adjustment as provided below in Section 3.3 and in Articles VIII and IX hereof), plus any
shares of Common Stock covered by outstanding options under the Québec Employee Stock Option Plan that are forfeited and returned for reissuance under the Québec Employee Stock Option Plan, such number not to exceed Thirteen Thousand
Five Hundred and Sixty-One (13,561) shares of Common Stock, for a maximum aggregate number of shares of Common Stock reserved for issuance under this Plan of Two Million Fifty One Thousand Seven Hundred and Forty-Nine (2,051,749). 

3.2 Source of Shares. The Shares issued upon the exercise of an Option shall be made available, in the discretion of the Board, either from the
authorized but unissued Shares or from any outstanding Shares which have been reacquired by the Company. 
 3.3 Shares Subject to Expired
Options. In the event that any Option expires or otherwise terminates for any reason (whether such Option is vested or non-vested at the time of termination), without having been exercised in full, the unpurchased Shares subject to that Option
shall once again become available for the granting of Options. 
 ARTICLE IV 
 Administration 
 4.1 Committee to Administer Plan. The Board may
delegate control and management of the operations of the Plan to the Committee, which delegation may be on either an exclusive or a non-exclusive basis in the discretion of the Board. The Board may, however, at any time or times either
(i) terminate any such delegation of authority and assume the control and management of the Plan, or (ii) having terminated such a delegation of authority may again delegate the control and management of the Plan to the Committee. In the
event that and for so long as this Plan is controlled and managed by the Board, the terms and provisions of this Plan, other than Sections 2.3, 2.5, 4.1 and 4.2, shall be applied by substituting the term “Board” for
“Committee” therein. 
 4.2 Appointment of a Committee. In the event that the Board appoints a Committee:
(i) the Committee shall be composed solely of two (2) or more Directors, provided, however, at least one (1) such Director shall be a Non-employee Director; however, if the Plan is required to 

  

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comply with Rule 16b-3 of the Exchange Act in order to permit Officers and Directors of the Company to be exempt from the provisions of Section 16(b) of
the Exchange Act with respect to transactions effected pursuant to the Plan, the Committee shall be composed solely of two or more Non-employee Directors; (ii) all vacancies occurring on the Committee shall be filled by appointment of the
Board; (iii) the members of the Committee shall serve at the pleasure of the Board; (iv) the Committee shall adopt such rules and regulations as it shall deem appropriate concerning the holding of meetings and the administration of the
Plan; and (v) the entire Committee shall constitute a quorum and the actions of the entire Committee present at a meeting, or actions approved in writing by the entire Committee, shall be the actions of the Committee. 
 4.3 Determinations to be Made by the Committee. Subject to the provisions of this Plan, the Committee shall have the exclusive discretion to
determine: (i) the Grantees; (ii) the number of Shares subject to an Option issued to a particular Grantee; (iii) the date or dates upon which an Option may be exercised or is granted (the “Date of Grant”);
(iv) the method of payment by the Grantee for the Shares; (v) such other terms to which an Option is subject (including the manner in which it vests); (vi) whether or to what extent an unvested Option may be exercised; (vii) the
form of any Option Agreements; and (viii) whether the Option is an Incentive Stock Option or a Nonqualified Stock Option. In determining the amount and terms of Options granted under the Plan, the Committee shall review performance measures
that shall influence the number of Options granted and the vesting of such Options. Unless otherwise determined by the Committee, Options issued under the Plan shall vest as follows (the “Vesting Schedule”): (i) 25% on the
first anniversary of the date on which, in the determination of the Committee, vesting commences (the “Vesting Commencement Date”) for the applicable grant, as set forth in the Grantee’s Notice of Stock Option Grant;
(ii) thereafter, in thirty-six (36) successive equal monthly installments upon completion of each of the next thirty-six (36) months. Notwithstanding the foregoing, the Committee is authorized in its sole and absolute discretion to
provide, at any time, for the immediate acceleration of all or any portion of a Grantee’s unvested Options. 
 4.4 Interpretation of
Plan. The Committee shall interpret the Plan and from time to time may adopt such rules and regulations for carrying out the terms and purposes of the Plan and may take such other actions in the administration of the Plan as it deems advisable.
The interpretation and construction by the Committee of any provisions of this Plan, any Option Agreement or any Exercise Notice and the determination of any question arising under this Plan, any such rule or regulation, or any Option Agreement or
Exercise Notice shall be final and binding on all persons interested in the Plan. 
 4.5 Limited Liability. Neither the Board nor any
member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan. 
  

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 ARTICLE V 
 Eligibility 
 5.1 General. Options may be granted under the Plan only to persons who
are (i) Employees or to persons who have entered into written agreements to become an Employee on or before the Date of Grant, or (ii) Non-employee Directors, or (iii) consultants or other service providers to the Company or any of
its Subsidiaries or Affiliated Entities. Notwithstanding anything to the contrary stated herein, Options may be granted to a consultant who is a resident of the Province of Ontario only if such consultant or other service provider is a bona fide
“consultant” as such term is defined in the Ontario Rule. Options granted to individuals who, as of the Date of Grant, are Employees who are not residents of the U.S., Non-employee Directors, consultants, persons not yet Employees and
other service providers shall be Nonqualified Stock Options. Options granted to an Employee who is a resident of the U.S. on the Date of Grant shall be, in the discretion of the Committee, either Incentive Stock Options or Nonqualified Stock Options
on the Date of Grant. 
 5.2 Exceptions. Notwithstanding anything contained in Article V and this Plan to the contrary: 
 5.2.1 no Option may be granted under the Plan to any person who owns, directly or indirectly (within the meaning of Sections 422(b)(6) and
424(d) of the Code), stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any entity owning at least a majority of the voting stock of the Company, if any, or any of its Subsidiaries, unless
(a) the Option Price (as defined in Section 7.2 hereof) of the Shares subject to such Option is fixed at not less than 110% of the Fair Market Value on the Date of Grant (as determined in accordance with Section 7.2 hereof) of such
Shares; and 
 5.2.2 no Options may be granted to any person in any one (1) taxable year of the Company in excess of 25%
of the Options issued or issuable under the Plan. 
 ARTICLE VI 
 Annual Limitation on Value of Incentive Stock Options 
 To the extent
that the aggregate Fair Market Value of the Shares (determined at the time the Incentive Stock Option is granted) with respect to which Incentive Stock Options are exercisable for the first time in any calendar year, together with options granted
under all other incentive stock option plans of the Company, any Subsidiary or any Affiliated Entity exceeds One Hundred Thousand Dollars (US$100,000) for any one Grantee, such Options in excess of such amount shall be treated as Nonqualified Stock
Options. 
  

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 ARTICLE VII 
 Terms and Conditions of Options 
 7.1 Designation and Option Agreement. Each Option
granted under the Plan shall be designated as an Incentive Stock Option or a Nonqualified Stock Option and shall be subject to the terms and conditions applicable to Incentive Stock Options and/or Nonqualified Stock Options (as the case may be) set
forth in the Plan. In addition, each Option shall be evidenced by an Option Agreement in substantially the form of Exhibit A attached hereto and a Notice of Stock Option Grant in substantially the form of Exhibit B attached hereto
(collectively, the “Option Agreement”) with such changes thereto as are consistent with the Plan as the Committee shall deem appropriate, and shall provide in substance as follows: 
 7.2 Number of Shares and Purchase Price; Section 409A Matters. Each Option Agreement shall specify the number of Shares covered by such
Option and the purchase price per share (the “Option Price”). The Option Price at which each Share may be purchased shall be the Fair Market Value of the Shares on the date of the grant (as determined in accordance with this Article
VII); provided, that the Option Price shall comply with Section 5.2.1 herein. The Board and the Committee shall endeavor in good faith to assure that that the terms of any Options shall be such that the Employee to whom such Options are
awarded shall not be subject to the tax or interest charges imposed by Section 409A(a)(1) of the Code. 
 Subject to the requirements of
Section 422 of the Code regarding Incentive Stock Options, for purposes of the Plan, the “Fair Market Value” of Shares shall be equal to: 
 7.2.1 if such Shares are publicly traded, (x) the closing price on the business day immediately preceding the Date of Grant if any
trades were made on such business day and such information is available, otherwise the average of the last bid and asked prices on the business day immediately preceding the Date of Grant, in the over-the-counter market as reported by the National
Association of Securities Dealers Automated Quotations System (“NASDAQ”) or (y) if such Shares are then traded on a national securities exchange, the closing price on the business day immediately preceding the Date of Grant, if
any trades were made on such business day and such information is available, otherwise the average of the high and low prices on the business day immediately preceding the Date of Grant, on the principal national securities exchange on which it is
so traded; or 
 7.2.2 if there is no public trading market for such Shares, the fair value of such Shares on the Date of
Grant as reasonably determined in good faith by the Committee (with the consent of a majority of the Board) after taking into consideration all factors which it deems appropriate, including, without limitation, recent sale and offer prices of such
Shares in private transactions negotiated at arms’ length. 
  

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 Notwithstanding anything contained in the Plan to the contrary, all determinations pursuant to Article
VII hereof shall be made without regard to any restriction other than a restriction that, by its terms, will never lapse. 
 Subsequent to
the Date of Grant of any Nonqualified Stock Options, the Committee may, at its discretion and with the written consent of the Grantee and the prior approval of the Board, establish a new Option Price for such Nonqualified Stock Options so as to
increase or decrease the Option Price of such Nonqualified Stock Options. 
 7.3 Non-Transferability of Options. Each Option Agreement
shall provide that the Option granted therein shall be non-transferable and non-assignable by the Grantee except by will or by the laws of descent and distribution to Grantee’s Immediate Family. During the lifetime of the Grantee such Option
may be exercised only by the Grantee or the Grantee’s legal representative. 
 7.4 Maximum Term; Date of Exercise; Termination.
Each Option Agreement shall set forth the period during which it may be exercised. Each Option granted under the Plan shall automatically terminate and shall become null and void and be of no further force or effect upon the first to occur of the
following: 
 7.4.1 the tenth (10th) anniversary of the Date of Grant or, in the case of any Option granted to a person
described in Section 5.2.1, the fifth (5th) anniversary of the Date of Grant; 
 7.4.2 within ninety (90) days
after the date that Grantee’s Services terminate (other than as a result of death or permanent and total Disability or a Termination For Cause); 
 7.4.3 within 365 days after the date that the Grantee’s Services terminate, if such termination is due to the Grantee’s death or permanent and total Disability (within the meaning of Section 22(e)(3) of
the Code); 
 7.4.4 immediately upon Termination For Cause of Grantee’s Services; and 
 7.4.5 simultaneously with the consummation of a sale of the Company if prior to such time the Grantee is given the opportunity to exercise
all of his or her Options. 
 Notwithstanding any other terms and provisions of this Plan or any Option Agreement, but subject to any
acceleration provisions agreed to in writing between the Company and Grantee: (i) to the extent an Option is not vested at the date of termination of Service for any reason, the Option may not be exercised, and (ii) for the purposes of
clause (i) of this paragraph and Section 7.4.2 of this Plan, the date of termination of Service shall be the date of actual notice of termination of Service as determined by the Company without reference to any period of notice of
termination of employment to which the Grantee may be entitled at law or pursuant to any employment agreement. 
  

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 The Committee shall have the power to determine what constitutes a Termination For Cause for purposes of
the Plan, and the date upon which such Termination For Cause shall occur. All such determinations shall be final and conclusive and binding upon the Grantee. 
 Any Shares that are not acquired as a result of an Option expiring without being fully exercised shall be available for award by the Committee to another eligible person. 
 7.5 Exercise of Options. Each Option Agreement shall provide that Options shall be exercised by delivering a written Exercise Notice and Stock
Purchase Agreement to the Company (an “Exercise Notice”), in substantially the form of Exhibit C attached hereto. Each Exercise Notice shall state the number of Shares with respect to which the Option is being exercised and
shall be signed by the person (or persons) exercising the Option and, in the event the Option is being exercised by any person other than the Grantee, shall be accompanied by proof, satisfactory to counsel for the Company, of the right of such
person to exercise the Option. The Option Price for each Option shall be paid in full for the number of Shares specified in the notice. The method of payment for such Shares shall be determined by the Committee, as set forth more fully in the Option
Agreement. In addition, in the event that the Option being exercised is a Nonqualified Stock Option, (i) cash, (ii) personal, certified or cashier’s check, or (iii) wire transfer to the Company in full payment of the aggregate
amount of any federal, state, provincial and/or local withholding taxes, if any, attributable to the transfer of stock pursuant to the exercise of the Option must accompany such notice. 
 The “Date of Exercise” of an Option shall be the date on which written notice of exercise shall have been delivered to the Company, but
the exercise of an Option shall not be effective until the person (or persons) exercising the Option shall have complied with all provisions of the Option Agreement governing the exercise of the Option. The Company shall deliver as soon as
practicable after receipt of notice and payment, a certificate or certificates for the Shares subject to the Option. No one shall be deemed to be the holder of any Shares subject to an Option, or have any other rights as a stockholder, unless and
until a certificate or certificates for the Shares are issued to that person. 
 7.6 Conditions on Right of Exercise. The Option
Agreement may provide for such conditions on the right of exercise as the Committee, in its sole discretion, deems appropriate, which conditions may, without limitation, be based upon either (i) the completion of a further period of continued
Service or (ii) the performance of the Company, of any Subsidiary or Affiliated Entity or of any division thereof, or of the Grantee. Without limiting the foregoing, an Option Agreement may provide that the Committee may, in its sole
discretion, terminate in whole or in part any portion of the Option that has not yet become exercisable if it determines that the Grantee is not satisfactorily performing his or her Service obligations. The Committee shall have the right at any time
or times to waive any condition on the exercise of any Option whenever it deems such a waiver to be appropriate. 
  

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 7.7 Character of Option Granted. Each Option Agreement shall specifically provide whether the
Option granted thereby is an Incentive Stock Option or a Nonqualified Stock Option. 
 7.8 Other Provisions. The Option Agreement may
include such other terms and conditions, not inconsistent with this Plan, as the Committee in its sole discretion shall determine. 
 ARTICLE VIII 
 Effect of Certain Changes 
 8.1 Anti-Dilution. If there is any change in the number of Shares through the declaration of stock dividends payable in shares of Common Stock or
through a recapitalization that results in stock splits or reverse stock splits, or through the combination or reclassification of such Shares, the Board shall make corresponding adjustments to the number of Shares available for Options, the number
of such Shares covered by outstanding Options, and the exercise price per share of such Options in order to appropriately reflect any increase or decrease in the number of issued Shares; provided, however, that any fractional Shares
resulting from such adjustment shall be eliminated. Any determination made by the Board relating to such adjustments shall be final, binding and conclusive. 
 8.2 Change in Par Value. In the event of a change in the Common Stock of the Company, as constituted as of the date of this Plan, that is limited to a change in all of its authorized shares with par value into
the same number of shares with a different par value or without par value, the shares resulting from any such change shall be deemed to be the Common Stock within the meaning of the Plan. 
 8.3 Mergers and Consolidations. Notwithstanding the other Sections of this Article VIII, upon the dissolution or liquidation of the Company, or
upon any reorganization, merger or consolidation of the Company with one (1) or more corporations where the Company is the surviving corporation and the stockholders of the Company immediately prior to such transaction do not own at least 50%
of the Company’s Common Stock immediately after such transaction, or upon any reorganization, merger or consolidation of the Company with one or more corporations where the Company is not the surviving corporation, or upon a sale of
substantially all of the assets or 50% or more of the then outstanding Shares to another corporation or entity (any such reorganization, merger, consolidation, sale of assets, or sale of Shares being hereinafter referred to as the
“Transaction”), the Plan shall terminate; provided, however, that 
 (i) in the case of a
dissolution or liquidation of the Company, any Options theretofore granted and outstanding under the Plan shall become immediately exercisable in full and shall remain exercisable until the effective date of such dissolution or liquidation;

  

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 (ii) in the event of a Transaction, outstanding Options shall be subject to the plan of
reorganization or the agreement of merger or consolidation. Such plan or agreement, without the Grantees’ consent, may provide for: 
 (a) the continuation or assumption of such outstanding Options under the Plan by the Company (if it is the surviving corporation) or by the surviving corporation or its parent; 
 (b) the substitution by the surviving corporation or its parent of options with substantially the same terms for such outstanding Options;

 (c) the acceleration of the vesting of, or right to exercise such outstanding Options immediately prior to or as of the
date of the merger or consolidation, and the expiration of such outstanding Options to the extent not timely exercised by the date of the merger or consolidation or other date thereafter designated by the Board of Directors; or 
 (d) the cancellation of all or any portion of such outstanding Options by a cash payment of the excess, if any, of the Fair Market Value
of the Shares subject to such outstanding Options or portion thereof being canceled over the Option Price with respect to such Options or portion thereof being canceled; and 
 (iii) the termination of the Plan, and any exercise of any Option (to the extent that the holder’s right to exercise such Option has
been accelerated by the operation of Section 8.3(i)), shall be subject to and conditioned upon the consummation of the Transaction to which such termination and acceleration relates, and if, for any reason, such Transaction is abandoned,
exercise of the Option shall be void and such Option shall thereafter be exercisable only as permitted by the Plan and the Option Agreement, which shall remain in full force and effect. 
 For purposes of applying Section 8.3: (A) the Fair Market Value of Shares underlying the Options shall be determined as of the time of the
Transaction; (B) the Incentive Stock Options shall be transformed, to the extent required by the Code, into Nonqualified Stock Options in reverse chronological order, such that the last-granted Incentive Stock Option shall be the first Option
transformed into a Nonqualified Stock Option and the first granted Incentive Stock Option shall be the last Option so transformed; and (C) the terms and conditions of each Nonqualified Stock Option so created shall be identical, to the extent
possible, in all respects to those of the Incentive Stock Option that it replaces including but not limited to the fact that it shall be immediately exercisable in full and shall remain exercisable until the time at which the Transaction becomes
effective. In the event that Incentive Stock Options are transformed into Nonqualified Stock Options by operation of this Section 8.3, the Board may in its discretion issue replacement Option Agreements that reflect the adjusted number of
Incentive Stock Options and 

  

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Nonqualified Stock Options. The Company shall use its best efforts to give each Grantee written notice of any proposed Transaction at least thirty
(30) days prior to the effective date of any such Transaction. Any Option not exercised by the time the Transaction legally becomes effective shall thereupon terminate. 
 8.4 Rights of Participants. Except as expressly provided in this Article VIII, the Grantee shall have no rights by reason of any subdivision or
consolidation of shares of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution, liquidation, merger, or consolidation or spin-off of
assets or stock of another corporation, and any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of Shares subject to an Option. The grant of an Option shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structures or to
merge or to consolidate or to dissolve, liquidate or sell or transfer all or part of its business or assets. 
 ARTICLE IX 

Amendment 
 9.1 Board
Authority. The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall adversely affect the rights and obligations with respect to Options
at the time outstanding under the Plan unless the Grantee consents to such amendment or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws and regulations. 
 9.2 Additional Options. Options may be granted under the Plan in excess of the number of Options then available for grant under the Plan,
provided any excess Options actually granted shall be held in escrow until there is obtained stockholder approval of an amendment sufficiently increasing the number of Options available for grant under the Plan. If such stockholder approval
is not obtained within twelve (12) months after the date the first such excess grants are made, then all such escrowed Options so granted shall immediately terminate. 
 ARTICLE X 
 Issuance of Shares and Compliance with Securities Regulations 
 The obligation of the Company to sell and deliver the Shares pursuant to Options granted under this Plan shall be subject to all applicable laws,
regulations, rules and approvals, including, but not by way of limitation, the effectiveness of a registration statement under the Securities Act, if deemed necessary or appropriate by the Board to register the Shares under such Act. 
  

 13 

 ARTICLE XI 
 Application of Funds 
 Any proceeds received by the Company as a result of the exercise of
Options granted under the Plan may be used for any valid corporate purpose. 
 ARTICLE XII 
 Notice 
 Any notice to the Company required under this Plan shall be in writing and shall either be delivered in person or sent by registered or certified mail, return receipt requested, postage prepaid, to the Company at its
offices at 7170 Frederick Banting, 2nd Floor, St. Laurent, QC H4S 2A1, Attention: Corporate Secretary. 

ARTICLE XIII 
 Term of Plan

 The Plan shall terminate ten (10) years from the date upon which it is approved by the stockholders of the Company or adopted
by the Board, whichever is earlier, or on such earlier date as may be determined by the Board. In any event, termination shall be deemed to be effective as of the close of business on the day of termination. No Options may be granted after such
termination. Termination of the Plan, however, shall not affect the rights of Grantees under Options previously granted to them, and all unexpired Options shall continue in full force and operation after termination of the Plan until they lapse or
terminate by their own terms and conditions. 
 ARTICLE XIV 
 No Contract of Employment 
 Neither the adoption of this Plan nor the
grant of any Option shall be deemed to obligate the Company, any Subsidiary or any Affiliated Entity to continue the employment of any Employee. 
  

 14 

 ARTICLE XV 
 Effectiveness of the Plan 
 The Plan shall become effective upon adoption by the Board;
provided, however, that the Plan shall be submitted for approval by the holders of a majority of the voting stock of the Company and for such other approval as required by applicable laws and regulations. In the event the stockholders
shall fail to approve the Plan within twelve (12) months before or after the Plan is adopted by the Board, it and all Options granted thereunder shall be and become null and void. Notwithstanding any other provision of the Plan to the contrary,
no Options granted under the Plan may be exercised until after such stockholder approval. 
 ARTICLE XVI 
 Captions 
 The use of captions
in this Plan is for convenience. The captions are not intended to provide substantive rights. 
 ARTICLE XVII 
 Disqualifying Dispositions 
 If
securities acquired by exercise of an Incentive Stock Option granted under this Plan are disposed of within two (2) years following the Date of Grant of the Incentive Stock Option or one (1) year following the issuance of the securities to
the Grantee (a “Disqualifying Disposition”), the holder of such securities shall, immediately prior to such Disqualifying Disposition, notify the Company in writing of the date and terms of such Disqualifying Disposition and provide
such other information regarding the Disqualifying Disposition as the Company may reasonably require. Additionally, at the time of a Disqualifying Disposition, the Grantee shall remit to the Company in cash, personal, certified or cashier’s
check, or wire transfer the amount of any applicable federal, state and local withholding taxes and employment taxes. 
  

 15 

 ARTICLE XVIII 
 Governing Law 
 All questions concerning the construction, interpretation and validity of this
Plan and the instruments evidencing the Options granted hereunder shall be governed by and construed and enforced in accordance with the domestic laws of the State of Delaware, without giving effect to any choice or conflict of law provision or rule
(whether in the State of Delaware or are in any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. In furtherance of the foregoing, the internal law of the State of Delaware will
control the interpretation and construction of this Plan, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply. 
 ARTICLE XIX 
 Financial
Statements 
 19.1 California Securities Law Requirements. The terms of this Article apply only to Options that would be
subject to Section 25110 of the California Corporations Code (or any successor law) but for the exemption contained in Section 25102(o) of the California Corporation Code (or any successor law). For purposes of determining the
applicability of the California securities law requirements contained in this Article, all Options shall be deemed granted in the state or province in which the Grantee is principally employed by the Company or any Parent, Subsidiary or Affiliated
Entity (as determined by the employer’s records) on the Date of Grant. Except as modified by the provisions of this Article, all the other relevant provisions of the Plan shall be applicable to such Options. Options under the Plan to which the
California securities law requirements of this Article do not apply shall not be subject to the terms of this Article. 
 19.1.1 Financial Reports. The Company shall deliver a financial statement at least annually to each Grantee holding Options or Shares issued under the Plan, unless such Grantee is a key employee whose duties in connection with the
Company assure such individual access to equivalent information. 
  

			
	 Approved by the Company’s Board of Directors:
	  	December 23, 2005
		
	 Approved by the Company’s stockholders:
	  	December 23, 2005

  

 16 

 SCHEDULE OF AMENDMENTS 
  

					
	 Approving Party
	  	 Date
	  	 Nature of Amendments

			
	Board of Directors	  	August 21, 2006	  	Increased number of shares available for grant and made certain clarifying changes.
			
	Stockholders	  	August 28, 2006	  	Increased number of shares available for grant and made certain clarifying changes.
			
	Board of Directors	  	January 31, 2007	  	Increased number of shares available for grant and updated shares included in plan to reflect 150:1 reverse stock split.
			
	Stockholders	  	January 31, 2007	  	Increased number of shares available for grant and updated shares included in plan to reflect 150:1 reverse stock split.
			
	Board of Directors	  	March 27, 2007	  	Increasing the number of days that a Grantee may exercise options upon termination from 60 to 90 days.

  

 1

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