Document:

EX 10.11

 Exhibit 10.11 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT (this
“Agreement”) dated as of June 1, 2012 (the “Effective Date”) between SILICON VALLEY BANK, a California corporation (“Bank”), and EVOKE PHARMA, INC., a Delaware corporation
(“Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The parties agree as follows: 
  

	 	1	ACCOUNTING AND OTHER TERMS 

 Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement
shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 

 

	 	2	LOAN AND TERMS OF PAYMENT 

 2.1 Promise to Pay. Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in
accordance with this Agreement. 
 2.1.1 Growth Capital Advances. 

(a) Availability. Subject to the terms and conditions of this Agreement, during the Draw Period, Bank shall make advances (each, a
“Growth Capital Advance” and, collectively, “Growth Capital Advances”) not exceeding the Growth Capital Line. After repayment, no Growth Capital Advance may be reborrowed. 

(b) Repayment. Growth Capital Advances outstanding on the last day of the Draw Period are payable in twenty four
(24) consecutive equal monthly installments of principal and unpaid interest, beginning on the first of each month following the last day of the Draw Period and ending on the Growth Capital Maturity Date. Notwithstanding the foregoing, all
unpaid principal and accrued but unpaid interest on each Growth Capital Advance shall be due on the Growth Capital Maturity Date. 
 (c) Mandatory Prepayments. If the Growth Capital Advances are accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of:
(i) all outstanding principal of the Growth Capital Advances plus accrued unpaid interest thereon through such date, plus (ii) all other sums, that shall have become due and payable but have not been paid, including Bank Expenses and
interest at the Default Rate with respect to any past due amounts. For the avoidance of doubt, payments under this Section 2.1.1(c) shall be made without premium or penalty. 

(d) Permitted Prepayment of Growth Capital Advances. Borrower shall have the option to prepay all, but not less than all, of the
Growth Capital Advances advanced by Bank under this Agreement, provided Borrower (i) provides written notice to Bank of its election to prepay the Growth Capital Advances at least three (3) Business Days prior to such prepayment, and
(ii) pays to Bank on the date of such prepayment, an amount equal to the sum of (A) all outstanding principal of the Growth Capital Advances plus accrued but unpaid interest thereon through the prepayment date plus (B) all other sums,
that shall have become due and payable, including Bank Expenses, if any, and interest at the Default Rate with respect to any past due amounts. For the avoidance of doubt, payments under this Section 2.1.1(d) shall be made without premium or
penalty. 
 2.2 Intentionally Omitted. 

  
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 2.3 Payment of Interest on the Credit Extensions. 

(a) Interest Rate for Growth Capital Advances. Subject to Section 2.3(b), the principal amount outstanding for each Growth
Capital Advance shall accrue interest at a fixed per annum rate equal to the greater of (i) four and one half percent (4.50%) or (ii) the Basic Rate, fixed on the Funding Date of such Growth Capital Advance, which interest shall be
payable monthly, in accordance with Section 2.3(f) below. 
 (b) Default Rate. At Bank’s election, upon the
occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is five percentage points (5.00%) above the rate that is otherwise applicable thereto (the “Default Rate”)
unless Bank otherwise elects from time to time in its sole discretion to impose a smaller increase. Fees and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including, without limitation, Bank Expenses) but are not
paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations. Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely
payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 
 (c) Intentionally Omitted. 
 (d) Computation; 360-Day Year. In
computing interest, the date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be
included in computing interest on such Credit Extension. Interest shall be computed on the basis of a 360-day year for the actual number of days elapsed. 
 (e) Debit of Accounts. Bank may debit, first the Designated Deposit Account, and if insufficient funds are in the Designated Deposit Account, then any of Borrower’s deposit accounts for
principal and interest payments or any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 

(f) Interest Payment Date. Unless otherwise provided, interest is payable monthly on the first calendar day of each month.

 2.4 Bank Expenses. Borrower shall pay to Bank all Bank Expenses (including (i) all costs and expenses for UCC,
IP, Good Standing and other diligence searches and (ii) reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement, which attorney’s fees for the documentation and negotiation of this Agreement will
not exceed Fifteen Thousand Dollars ($15,000) as of the Effective Date) incurred through and after the Effective Date, when due. Bank acknowledges receipt of a good faith deposit from Borrower of Seven Thousand Five Hundred Dollars ($7,500), which
shall be used to pay Bank Expenses on the Effective Date. 
 2.5 Payments; Application of Payments. 

(a) All payments (including prepayments) to be made by Borrower under any Loan Document shall be made in immediately available funds in
U.S. Dollars, without setoff or counterclaim, before 12:00 p.m. Pacific time on the date when due. Payments of principal and/or interest received after 12:00 p.m. Pacific time are considered received at the opening of business on the next Business
Day. When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid. 

(b) Subject to the next sentence, Bank shall apply the whole or any part of collected funds against the Growth Capital Line or credit
such collected funds to a depository account of Borrower with Bank (or an account maintained by an Affiliate of Bank), the order and method of such application to be in the sole discretion of Bank. Borrower shall have no right to specify the order
or the accounts to which Bank shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not specified elsewhere in this Agreement
(including pursuant to Section 2.3(a)). 

  
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	 	3	CONDITIONS OF LOANS 

3.1 Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the
condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 

(a) duly executed original signatures to the Loan Documents; 
 (b) duly executed original signatures to the Warrant; 
 (c) Borrower’s
Operating Documents and a good standing certificate of Borrower certified by the Secretary of State of the State of Delaware as of a date no earlier than thirty (30) days prior to the Effective Date; 

(d) duly executed original signatures to the completed Borrowing Resolutions for Borrower; 

(e) certified copies, dated as of a recent date, of financing statement searches, as Bank shall request, accompanied by written evidence
(including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 

(f) the Perfection Certificate of Borrower, together with the duly executed original signatures thereto; 

(g) Borrower’s audited financial statements for the 2010 fiscal year; 

(h) a copy of its Investors’ Rights Agreement and any amendments thereto; 

(i) evidence satisfactory to Bank that the insurance policies required by Section 6.5 hereof are in full force and effect, together
with appropriate evidence showing lender loss payable and/or additional insured clauses and cancellation notice to Bank (or endorsements reflecting the same) in favor of Bank; and 

(j) payment of the Bank Expenses then due as specified in Section 2.4 hereof. 

3.2 Conditions Precedent to all Credit Extensions. Bank’s obligations to make each Credit Extension, including the initial
Credit Extension, is subject to the following conditions precedent. 
 (a) except as otherwise provided in Section 3.5(a),
timely receipt of an executed Payment/Advance Form; 
 (b) the representations and warranties in this Agreement shall be true,
accurate, and complete in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in
this Agreement remain true, accurate, and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in
the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 

(c) in Bank’s sole but reasonable discretion, there has not been material impairment in the general affairs, management, results of
operation, financial condition or the prospect of repayment of the Obligations, or any material adverse deviation by Borrower from the most recent business plan of Borrower presented to and accepted by Bank. 

  
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 3.3 Covenant to Deliver. Borrower agrees to deliver to Bank each item required to be
delivered to Bank under this Agreement as a condition precedent to any Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s
obligation to deliver such item, and the making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion. 
 3.4 Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of a Growth Capital Advance set forth in this Agreement, to obtain a Growth Capital
Advance, Borrower must notify Bank (which notice shall be irrevocable) by electronic mail or facsimile no later than 12:00 p.m. Pacific time one (1) Business Day before the proposed Funding Date. The notice shall be a Payment/Advance Form and
must be signed by a Responsible Officer or designee. If Borrower satisfies the conditions of each Growth Capital Advance, Bank shall disburse such Growth Capital Advance by transfer to the Designated Deposit Account. 

 

	 	4	CREATION OF SECURITY INTEREST 

 4.1 Grant of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the
Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. 

Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank. Regardless
of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first
priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that may have superior priority to Bank’s Lien in this Agreement). 
 If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are satisfied in full, and at such time, Bank shall, at
Borrower’s sole cost and expense, terminate its security interest in the Collateral and all rights therein shall revert to Borrower. In the event (x) all Obligations (other than inchoate indemnity obligations), except for Bank Services,
are satisfied in full, and (y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral reasonably to Bank in its good faith business judgment consistent with Bank’s
then current practice for Bank Services, if any. In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an amount equal to (i) one hundred five percent (105%) if the
Letter of Credit is denominated in Dollars or (ii) one hundred ten percent (110%) if the Letter of Credit is denominated in a Foreign Currency of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest,
fees, and costs due or to become due in connection therewith (as reasonably estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit. 

4.2 Priority of Security Interest. Borrower represents, warrants, and covenants that the security interest granted herein is and
shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement). If Borrower shall acquire one or more
commercial tort claims in an aggregate amount of One Hundred Thousand Dollars ($100,000), Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security interest
therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. 
 4.3 Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect
Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code. 

  
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	 	5	REPRESENTATIONS AND WARRANTIES 

 Borrower represents and warrants as follows: 
 5.1 Due Organization,
Authorization; Power and Authority. Borrower is duly existing and in good standing in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of its business or
its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement, Borrower has delivered to
Bank a completed certificate signed by Borrower, entitled “Perfection Certificate”. Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the
signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational
identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing
address (if different than its chief executive office); (e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number
assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete (it being understood and agreed that Borrower may from time to time
update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement). If Borrower is not now a Registered Organization but later becomes one, Borrower shall
promptly notify Bank of such occurrence and provide Bank with Borrower’s organizational identification number. 
 The
execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with,
constitute a material default under or violate any material Requirement of Law, (iii) materially contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by
which Borrower or any of its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except
such Governmental Approvals which have already been obtained and are in full force and effect or which would reasonably be expected to have a material adverse effect on Borrower’s business) or (v) constitute an event of default under any
material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s
business. 
 5.2 Collateral. Borrower has good title to, has rights in, and the power to transfer each item of the
Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts other than the deposit accounts with Bank, the deposit accounts, if any, described in the
Perfection Certificate delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as are necessary to give Bank a perfected security interest therein. 

The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection
Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 7.2. 

Borrower is the sole owner of the Intellectual Property which it owns or purports to own except for (a) nonexclusive licenses
granted to its customers in the ordinary course of business, (b) over-the-counter software that is commercially available to the public, and (c) material Intellectual Property licensed to Borrower and noted on the Perfection Certificate.
Each Patent which it owns or purports to own and which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which Borrower owns or purports to own and which is material to Borrower’s
business has been judged invalid or unenforceable, in whole or in part. To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the extent such
claim would not reasonably be expected to have a material adverse effect on Borrower’s business. 

  
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 Except as noted on the Perfection Certificate, Borrower is not a party to, nor is it bound
by, any Restricted License. 
 5.3 Intentionally Omitted. 

5.4 Litigation. There are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in
writing by or against Borrower or any of its Subsidiaries involving more than, individually or in the aggregate, Two Hundred and Fifty Thousand Dollars ($250,000). 
 5.5 Financial Statements. All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Bank fairly present in all material respects Borrower’s consolidated
financial condition and Borrower’s consolidated results of operations. 
 5.6 Solvency. The fair salable value of
Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts
(including trade debts) as they mature. 
 5.7 Regulatory Compliance. Borrower is not an “investment company”
or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T
and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of
a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, the
violation of which could reasonably be expected to have a material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of
Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than in material compliance with applicable law. Borrower and each of its Subsidiaries have obtained all
consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Government Authorities that are necessary to continue their respective businesses as currently conducted except to the extent the failure
to do so would reasonably be expected to have a material adverse effect on Borrower’s business. 
 5.8 Subsidiaries;
Investments. Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments. 
 5.9 Tax Returns and Payments; Pension Contributions. Borrower has timely filed all required tax returns and reports, and Borrower has timely paid all federal, material foreign, state and local
taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and
diligently instituted and conducted, (b) notifies Bank in writing of the commencement of, and any material development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying
such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in
additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from
participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any
liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 5.10 Use of
Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital and to fund its general business requirements and not for personal, family, household or agricultural purposes. 

  
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 5.11 Full Disclosure. No written representation, warranty or other statement of
Borrower in any certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Bank, contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good
faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 

5.12 Definition of “Knowledge.” For purposes of the Loan Documents, whenever a representation or warranty is made
to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers.

  

	 	6	AFFIRMATIVE COVENANTS 

 Borrower shall do all of the following: 
 6.1 Government Compliance.

 (a) Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of
formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary
comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could reasonably be expected to have a material adverse effect on Borrower’s business. 

(b) Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to
which it is a party and the grant of a security interest to Bank in all of its property. Upon Bank’s request, Borrower shall promptly provide copies of any such obtained Governmental Approvals to Bank. 

6.2 Financial Statements, Reports, Certificates. Deliver to Bank: 

(a) Monthly Financial Statements. As soon as available, but no later than thirty (30) days after the last day of each month,
a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations for such month certified by a Responsible Officer and in a form acceptable to Bank (the “Monthly Financial
Statements”); 
 (b) Monthly Compliance Certificate. Within thirty (30) days after the last day of each
month and together with the Monthly Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of
this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank shall reasonably request; 

(c) Annual Audited Financial Statements. As soon as available, but no later than one hundred eight (180) days after the last
day of Borrower’s fiscal year (beginning with the 2012 fiscal year), audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent
certified public accounting firm acceptable to Bank in its reasonable discretion; 
 (d) Other Statements. Within five
(5) days of delivery, copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt (other than any materials provided to the Borrower’s board of directors or
management solely in their roles as a member of Borrower’s board of directors or management and not in their role as a security holder or holder of Subordinated Debt); 

  
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 (e) Legal Action Notice. A prompt report of any legal actions pending or threatened
in writing against Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, Two Hundred Thousand Dollars ($200,000) or more; 

(f) Annual Financial Projections. As soon as available, but no later than the earlier of (i) sixty (60) days after the
last day of Borrower’s fiscal year or (ii) seven (7) days after board approval, annual financial projections approved by Borrower’s board of directors; and 
 (g) Other Financial Information. Such other Budgets, sales projections, operating plans and other financial information reasonably requested by Bank. 

6.3 Inventory; Returns. Keep all Inventory in good and marketable condition, free from material defects. Returns and allowances
between Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date. Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than Two Hundred
Fifty Thousand Dollars ($250,000). 
 6.4 Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely
file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all federal, material foreign, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its
Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.9 hereof, and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all
present pension, profit sharing and deferred compensation plans in accordance with their terms. 
 6.5 Insurance. Keep
its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are
satisfactory to Bank. All property policies shall have a lender’s loss payable endorsement showing Bank as a lender loss payee and waive subrogation against Bank. All liability policies shall show, or have endorsements showing, Bank as an
additional insured. All policies (or their respective endorsements) shall provide that the insurer shall give Bank at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Bank’s request, Borrower
shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy shall, at Bank’s option, be payable to Bank on account of the Obligations. Notwithstanding the foregoing, (a) so long as no
Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to Fifty Thousand Dollars ($50,000) with respect to any loss, but not exceeding One Hundred Thousand Dollars
($100,000) in the aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like
value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event of Default, all
proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on account of the Obligations. If Borrower fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required
proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies Bank deems prudent. 

6.6 Operating Accounts. 
 (a) No later than ten (10) days after the Effective Date, and at all times thereafter, maintain its primary operating and other deposit accounts and securities accounts with Bank and Bank’s
Affiliates. 
 (b) Provide Bank five (5) days prior written notice before establishing any Collateral Account at or with
any bank or financial institution other than Bank or Bank’s Affiliates. For each Collateral Account that Borrower at any time maintains, Borrower shall, no later than ten (10) days after the Effective Date, cause the applicable bank or
financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such
Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for
payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such. 

  
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 6.7 Intentionally Omitted. 

6.8 Protection of Intellectual Property Rights. 
 (a) (i) Protect, defend and maintain the validity and enforceability of its Intellectual Property material to its business; (ii) promptly advise Bank in writing of material infringements of its
Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent. 

(b) Provide written notice to Bank within thirty (30) days of entering or becoming bound by any Restricted License (other than
over-the-counter software that is commercially available to the public). Borrower shall take such commercially reasonable steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any
Restricted License to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the
future, and (ii) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Bank’s rights and remedies under this Agreement and the other Loan Documents. 

6.9 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank,
without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or
against Bank with respect to any Collateral or relating to Borrower. 
 6.10 Access to Collateral; Books and Records.
Allow Bank, or its agents, at reasonable times, on one (1) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), to inspect the Collateral and audit and copy Borrower’s Books.
Such inspections or audits shall be conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing. The foregoing inspections and audits shall be at Borrower’s expense, and the charge
therefor shall be Eight Hundred Fifty Dollars ($850) per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses. In the event Borrower and Bank schedule
an audit more than ten (10) days in advance, and Borrower cancels or seeks to reschedule the audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or remedies), Borrower shall pay Bank
any out-of-pocket expenses reasonably incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 
 6.11 Formation or Acquisition of Subsidiaries. At the time that Borrower forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Effective Date, Borrower
shall (a) cause such new Subsidiary to provide to Bank either a joinder to the Loan Agreement to cause such Subsidiary to become a co-borrower hereunder or a Guaranty, together with such appropriate financing statements and/or Control
Agreements, all in form and substance reasonably satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary), (b) provide to
Bank appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Bank, and (c) provide to Bank all other documentation
in form and substance satisfactory to Bank which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this
Section 6.11 shall be a Loan Document. 
 6.12 Further Assurances. Execute any further instruments and take further
action as Bank reasonably requests to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. Deliver to Bank, within five (5) Business Days after the same are sent or received, copies of all material
correspondence, reports, documents and other filings with any Governmental Authority material to the conduct of Borrower’s business regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or that could
reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the operations of Borrower or any of its Subsidiaries. 

  
 9 

	 	7	NEGATIVE COVENANTS 

Borrower shall not do any of the following without Bank’s prior written consent: 

7.1 Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or
permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete Equipment; (c) in connection with Permitted
Liens and Permitted Investments; and (d) of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business and licenses that could not result in a legal transfer of title of the licensed
property but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States. 

7.2 Changes in Business, Management, Control, or Business Locations. (a) Engage in or permit any of its Subsidiaries to
engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) permit any Key Person to cease holding such
office with Borrower unless a replacement satisfactory to the Borrower’s Board of Directors is made within ninety (90) days after any such Key Person’s departure from Borrower; or (ii) enter into any transaction or series of
related transactions in which the stockholders of Borrower who were not stockholders immediately prior to the first such transaction own more than forty-nine percent (49%) of the voting stock of Borrower immediately after giving effect to such
transaction or related series of such transactions (other than by the sale of Borrower’s equity securities in a public offering or to venture capital investors so long as Borrower identifies to Bank the venture capital investors prior to the
closing of the transaction and provides to Bank a description of the material terms of the transaction). 
 Borrower shall not,
without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain (a) less than Three Hundred Thousand Dollars
($300,000) in Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess of Three Hundred Thousand Dollars ($300,000) to a location other than (i) to a bailee at a location
already disclosed in the Perfection Certificate, or (ii) to a customer that stores / holds such Collateral in the normal course of business, (2) change its jurisdiction of organization, (3) change its organizational structure or type,
(4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of
Three Hundred Thousand Dollars ($300,000) to a bailee and Bank and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower will first
receive the written consent of Bank, and such bailee shall execute and deliver a bailee agreement in form and substance satisfactory to Bank in its reasonable discretion. 
 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or
substantially all of the capital stock or property of another Person except where (a) total consideration including cash and the value of any non-cash consideration, for all such transactions does not in the aggregate exceed Two Hundred Fifty
Thousand Dollars ($250,000) in any fiscal year of Borrower; (b) no Event of Default has occurred and is continuing or would exist after giving effect to the transactions; and (c) Borrower is the surviving legal entity. A Subsidiary may
merge or consolidate into another Subsidiary or into Borrower. 
 7.4 Indebtedness. Create, incur, assume, or be liable
for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
 7.5 Encumbrance. Create,
incur, allow, or suffer any Lien on any of its property or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be
subject to the first priority security interest granted herein, or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of
prohibiting Borrower or any Subsidiary from assigning, 

  
 10 

 
mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise permitted in
Section 7.1 hereof and the definition of “Permitted Liens” herein. 
 7.6 Maintenance of Collateral
Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6(b) hereof. 
 7.7
Distributions; Investments. (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock provided that (i) Borrower may convert any of its convertible securities into other securities
pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in common stock; and (iii) Borrower may repurchase the stock of employees, directors, officers or consultants
pursuant to stock repurchase agreements so long as an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate of Two Hundred
Fifty Thousand Dollars ($250,000) per fiscal year; or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so. 

7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate
of Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated
Person and transactions permitted pursuant to the terms of Section 7.2 hereof and in connection with equity investments and Subordinated Debt. 
 7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such
Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Bank. 

7.10 Compliance. Become an “investment company” or a company controlled by an “investment company”, under the
Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds
of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate
any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation
in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any material liability of
Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
  

	 	8	EVENTS OF DEFAULT 

Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 

8.1 Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date,
or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Growth Capital Maturity Date). During the cure
period, the failure to make or pay any payment specified under clause (a) or (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period); 

  
 11 

	 	8.2	Covenant Default. 

(a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, 6.6 or 6.11 or violates any covenant in
Section 7; or 
 (b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant
or agreement contained in this Agreement or any other Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure
the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten
(10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such
reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Cure periods provided under this section shall not apply, among other things, to
financial covenants or any other covenants set forth in clause (a) above; 
 8.3 Intentionally Omitted; 

8.4 Attachment; Levy; Restraint on Business. 
 (a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under the control of Borrower (including a Subsidiary) on deposit or otherwise
maintained with Bank or any Bank Affiliate, or (ii) a notice of lien or levy is filed against any of Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days
after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; or 

(b) (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver,
or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any material part of its business; 

8.5 Insolvency (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes
insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within forty-five (45) days (but no Credit Extensions shall be made while of any of the
conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other
Agreements. There is, under any agreement to which Borrower is a party with a third party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any
Indebtedness in an amount individually or in the aggregate in excess of Two Hundred Fifty Thousand Dollars ($250,000); or (b) any default by Borrower, the result of which could have a material adverse effect on Borrower’s business.

 8.7 Judgments. One or more final judgments, orders, or decrees for the payment of money in an amount, individually or
in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower and the same are not,
within ten (10) days after the entry thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no Credit Extensions will be made prior
to the discharge, stay, or bonding of such judgment, order, or decree); 
 8.8 Misrepresentations. Borrower or any Person
acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation,
warranty, or other statement is incorrect in any material respect when made; 

  
 12 

 8.9 Subordinated Debt. Any document, instrument, or agreement evidencing any
Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person (other than Bank) shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that
it has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement; or 

8.10 Governmental Approvals. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an
adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that
could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal adversely affects the legal qualifications of Borrower
or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of
Borrower or any of its Subsidiaries to hold any Governmental Approval in any other jurisdiction. 
  

	 	9	BANK’S RIGHTS AND REMEDIES 

 9.1 Rights and Remedies. While an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following: 

(a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations
are immediately due and payable without any action by Bank); 
 (b) stop advancing money or extending credit for Borrower’s
benefit under this Agreement or under any other agreement between Borrower and Bank; 
 (c) for any Letters of Credit, demand
that Borrower (i) deposit cash with Bank in an amount equal to one hundred five percent (105%) of the Dollar Equivalent of the aggregate face amount of all Letters of Credit remaining undrawn (plus all interest, fees, and costs due or to
become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral security for the repayment of any future drawings under such Letters
of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; 

(d) terminate any FX Contracts; 
 (e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, notify any Person owing Borrower money of Bank’s security
interest in such funds, and verify the amount of such account; 
 (f) make any payments and do any acts it considers necessary
or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Bank requests and make it available in a location as Bank reasonably designates. Bank may enter premises where the
Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank
a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies; 
 (g)
apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower; 
 (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to
use, without charge, Borrower’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit;

  
 13 

 (i) place a “hold” on any account maintained with Bank and/or deliver a notice of
exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 
 (j) demand and receive possession of Borrower’s Books; and 
 (k) exercise all
rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 

9.2 Power of Attorney. Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence
and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against
Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance
policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and
(f) transfer the Collateral into the name of Bank or a third party as the Code permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection
of Bank’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations (other than inchoate indemnity obligations) have been satisfied in full and Bank is under no further obligation to make
Credit Extensions hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations)
have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 
 9.3 Protective
Payments. If Borrower fails to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Bank may
obtain such insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Bank will make
reasonable efforts to provide Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s
waiver of any Event of Default. 
 9.4 Application of Payments and Proceeds Upon Default. If an Event of Default has
occurred and is continuing, Bank may apply any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the
Obligations in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrower by credit to the Designated Deposit Account or other Persons legally entitled thereto; Borrower shall remain liable to Bank for any
deficiency. If Bank, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either
reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 
 9.5 Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank
shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman,
bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral. 
 9.6 No Waiver; Remedies
Cumulative. Bank’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, 

  
 14 

 
or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by the party granting the waiver
and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code, by
law, or in equity. Bank’s exercise of one right or remedy is not an election and shall not preclude Bank from exercising any other remedy under this Agreement or other remedy available at law or in equity, and Bank’s waiver of any Event of
Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

9.7 Demand Waiver. To the extent permitted by applicable law, Borrower waives demand, notice of default or dishonor, notice of
payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 

 

	 	10	NOTICES 

 All
notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of
actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile
transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and
sent to the address, facsimile number, or email address indicated below. Bank or Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this
Section 10. 
  

			
	If to Borrower:	  	 EVOKE PHARMA, INC.
 12671 High
Bluff Drive, Suite 200
 San Diego, CA 92130
 Attn: Matt D’Onofrio
 Email: mdonofrio@evokepharma.com

		
	With copies to:	  	 Latham & Watkins LLP
 505
Montgomery Street, Suite 2000
 San Francisco, CA 94111
 Attn: Haim Zaltzman
 Fax: (415) 395-8095
 Email: haim.zaltzman@lw.com

		
		  	 Latham & Watkins LLP
 12636
High Bluff Drive, Suite 400
 San Diego, CA 92130
 Attn: Scott Wolfe
 Fax: 858-523-5450
 Email: scott.wolfe@lw.com

		
	If to Bank:	  	 Silicon Valley Bank
 4370 La
Jolla Village Drive, Suite 860
 San Diego, CA 92122
 Attn: R. Michael White
 Fax: (858) 622-1424
 Email: mwhite@svb.com

  
 15 

	 	11	CHOICE OF LAW, VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE 

 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara
County, California, provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it
may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the
summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in, or
subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) Business Days after
deposit in the U.S. mails, proper postage prepaid. 
 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK
EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A
MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 

WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver
of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the
parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if
the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted
pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation,
entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If
during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior
Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall
be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial
proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of
decision thereon pursuant to California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The
private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
  

	 	12	GENERAL PROVISIONS 

12.1 Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party.
Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion). Bank has the right, without the consent of or notice to Borrower, to
sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents (other than the Warrant, as to which assignment,
transfer and other such actions are governed by the terms of the Warrant). Notwithstanding the foregoing, prior the occurrence of an Event of Default, Bank shall not assign any interest in the Loan Documents to an operating company which is a direct
competitor of Borrower. 

  
 16 

 12.2 Indemnification. Borrower agrees to indemnify, defend and hold Bank and its
directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (a) all obligations, demands, claims, and liabilities (collectively,
“Claims”) claimed or asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or expenses (including Bank Expenses) in any way suffered, incurred, or paid by such
Indemnified Person as a result of, following from, consequential to, or arising from transactions between Bank and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified
Person’s gross negligence or willful misconduct. 
 12.3 Time of Essence. Time is of the essence for the performance
of all Obligations in this Agreement. 
 12.4 Severability of Provisions. Each provision of this Agreement is severable
from every other provision in determining the enforceability of any provision. 
 12.5 Correction of Loan Documents. Bank
may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties so long as Bank provides Borrower with written notice of such correction and allows Borrower at least ten (10) days to object to
such correction. In the event of such objection, such correction shall not be made except by an amendment signed by both Bank and Borrower. 
 12.6 Amendments in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, shall be
enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought. Without limiting the generality of the foregoing, no oral promise or statement, nor any
action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. Any waiver granted shall be limited to the specific
circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents represent
the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents
merge into the Loan Documents. 
 12.7 Counterparts. This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement. 
 12.8 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than
inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full and satisfied. Without limiting the foregoing, except as otherwise provided in Section 4.1,
the grant of security interest by Borrower in Section 4.1 shall survive until the termination of all Bank Services Agreements. The obligation of Borrower in Section 12.2 to indemnify Bank shall survive until the statute of limitations with
respect to such claim or cause of action shall have run. 
 12.9 Confidentiality. In handling any confidential
information, Bank shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates, together
with Bank, collectively, “Bank Entities”); (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, that any prospective transferee or purchaser shall have entered into a
confidentiality agreement containing terms substantially the same as those in this Section); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with
Bank’s examination or audit; (e) as Bank reasonably considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a
confidentiality agreement with Bank with terms no less 

  
 17 

 
restrictive than those contained herein. Confidential information does not include information that is either: (i) in the public domain or in Bank’s possession when disclosed to Bank,
or becomes part of the public domain after disclosure to Bank; or (ii) disclosed to Bank by a third party if Bank does not know that the third party is prohibited from disclosing the information. 

Bank Entities may use the confidential information for reporting purposes and the development and distribution of databases and market
analysis so long as such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower. The provisions of the immediately preceding sentence shall survive the termination of this
Agreement. 
 12.10 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Bank
arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled. 

12.11 Electronic Execution of Documents. The words “execution,” “signed” “signature” and words of
like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use
of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act. 

12.12 Captions. The headings used in this Agreement are for convenience only and shall not affect the interpretation of this
Agreement. 
 12.13 Construction of Agreement. The parties mutually acknowledge that they and their attorneys have
participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist. 

12.14 Relationship. The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement.
The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 

12.15 Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights
or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express party
to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement. 
 12.16 Termination Prior to Growth Capital Maturity Date. This Agreement may be terminated prior to the Growth Capital Maturity Date by Borrower, effective three (3) Business Days after written
notice of termination is given to Bank and repayment in full in cash of all Obligations (other than inchoate indemnity obligations). Bank’s lien and security interest in the Collateral shall continue until Borrower fully satisfies all
outstanding Obligations (other than inchoate indemnity obligations). 
  

	 	13	DEFINITIONS 

13.1 Definitions. As used in the Loan Documents, the word “shall” is mandatory, the word “may” is permissive,
the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and numbers denoting amounts that are set off in brackets are negative. As used in this Agreement,
the following capitalized terms have the following meanings: 
 “Account” is any “account” as defined
in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 
 “Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made. 

  
 18 

 “Affiliate” is, with respect to any Person, each other Person that owns or
controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited
liability company, that Person’s managers and members. 
 “Agreement” is defined in the preamble hereof.

 “Bank” is defined in the preamble hereof. 

“Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and
expenses) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to
Borrower. 
 “Bank Services” are any products, credit services, and/or financial accommodations previously,
now, or hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of
payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank
Services Agreement”). 
 “Basic Rate” is the per annum rate of interest (based on a year of 360 days)
equal to the sum of (a) U.S. Treasury note yield to maturity for a term equal to the Treasury Note Maturity as reported in the Federal Reserve Statistical Release H.15-Selected Interest Rates under the heading “U.S. Government
Securities/Treasury Constant Maturities” on the Funding Date of such Advance, plus (b) the Loan Margin. (In the event Release H.15 is no longer published, Bank shall select a comparably reputable publication, in its reasonable discretion,
to determine the Treasury Note Maturity.) 
 “Borrower” is defined in the preamble hereof. 

“Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns,
records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 

“Borrowing Resolutions” are, with respect to any Person, those resolutions substantially in the form attached hereto as
Exhibit C. 
 “Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is closed.

 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the
United States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating
from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least
ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California; provided, that, to the extent that the Code is used to
define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event
that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other
than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection,
priority, or remedies and for purposes of definitions relating to such provisions. 

  
 19 

 “Collateral” is any and all properties, rights and assets of Borrower
described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity
Account. 
 “Commodity Account” is any “commodity account” as defined in the Code with such additions
to such term as may hereafter be made. 
 “Compliance Certificate” is that certain certificate in the form
attached hereto as Exhibit D. 
 “Contingent Obligation” is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed, endorsed, co-made, discounted or
sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent
Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a
Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such
Deposit Account, Securities Account, or Commodity Account. 
 “Copyrights” are any and all copyright rights,
copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret. 

“Credit Extension” is any Growth Capital Advance or any other extension of credit by Bank for Borrower’s benefit
under this Agreement. 
 “Default Rate” is defined in Section 2.3(b). 

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Designated Deposit Account” is Borrower’s deposit account, account number
                    , maintained with Bank. 
 “Dollars,” “dollars” or use of the sign “$” means only lawful money of the United States and not any other currency, regardless of whether that
currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States. 

“Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and
(b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the
Foreign Currency for transfer to the country issuing such Foreign Currency. 
 “Domestic Subsidiary” means a
Subsidiary organized under the laws of the United States or any state or territory thereof or the District of Columbia. 

“Draw Period” is the period of time from the Effective Date through the earlier to occur of (a) December 31,
2013 or (b) at Bank’s election, an Event of Default. 

  
 20 

 “Effective Date” is defined in the preamble hereof. 

“Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be
made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations. 
 “Event of Default” is defined in Section 8. 

“Exchange Act” is the Securities Exchange Act of 1934, as amended. 

“Foreign Currency” means lawful money of a country other than the United States. 

“Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary. 

“Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower which shall be a
Business Day. 
 “FX Contract” is any foreign exchange contract by and between Borrower and Bank under which
Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date. 

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of
the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General
Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income
and other tax refunds, security and other deposits, payment intangibles, contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise),
insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 
 “Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to,
or other act by or in respect of, any Governmental Authority. 
 “Governmental Authority” is any nation or
government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of
or pertaining to government, any securities exchange and any self-regulatory organization. 
 “Growth Capital
Advance” is defined in Section 2.1.1(a). 
 “Growth Capital Line” is a Growth Capital Advance or
Growth Capital Advances in an aggregate amount of up to Three Million Dollars ($3,000,000). 
 “Growth Capital Maturity
Date” is December 1, 2015. 
 “Indebtedness” is (a) indebtedness for borrowed money or the
deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and
(d) Contingent Obligations. 

  
 21 

 “Indemnified Person” is defined in Section 12.2. 

“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other
bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

“Intellectual Property” means all of Borrower’s right, title, and interest in and to the following: 

(a) its Copyrights, Trademarks and Patents; 
 (b) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how, operating manuals; 

(c) any and all source code; 
 (d) any and all design rights which may be available to a Borrower; 
 (e) any and
all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified
above; and 
 (f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents. 

“Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such
term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out
of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person.

 “Key Person” is any of Borrower’s Chief Executive Officer or Executive Vice President, Corporate
Development. 
 “Letter of Credit” is a standby or commercial letter of credit issued by Bank upon
request of Borrower based upon an application, guarantee, indemnity, or similar agreement. 
 “Lien” is a
claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Loan Documents” are, collectively, this Agreement, the Perfection Certificate, any Bank Services Agreement, any
subordination agreement, any note, or notes or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank, all as amended, restated, or otherwise modified. 

“Loan Margin” is four hundred nineteen (419) basis points. 

“Monthly Financial Statements” is defined in Section 6.2(a). 

“Obligations” are Borrower’s obligation to pay when due any debts, principal, interest, Bank Expenses, and other
amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan Documents (other than Borrower’s obligations under any warrant to purchase stock issued by Borrower to Bank, if any, including conversion of any shares of
Borrower’s capital stock under a warrant into other equity securities of 

  
 22 

 
Borrower and Bank’s right to make equity investments in Borrower, if any), including, without limitation, any interest accruing after Insolvency Proceedings begin and debts, liabilities, or
obligations of Borrower assigned to Bank, and the performance of Borrower’s duties under the Loan Documents. 

“Operating Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of
State of such Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company,
its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 

“Patents” means all patents, patent applications and like protections including without limitation improvements,
divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 
 “Payment/Advance
Form” is that certain form attached hereto as Exhibit B. 
 “Perfection Certificate” is defined
in Section 5.1. 
 “Permitted Indebtedness” is: 

(a) Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents; 

(b) Indebtedness existing on the Effective Date and shown on the Perfection Certificate; 

(c) Subordinated Debt; 
 (d) unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 
 (e) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 
 (f) Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens” hereunder; 

(g) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through
(f) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be; and 

(h) other unsecured Indebtedness not exceeding Twenty Five Thousand Dollars ($25,000) in the aggregate outstanding amount at any time.

 “Permitted Investments” are: 
 (a) Investments (including, without limitation, Subsidiaries) existing on the Effective Date and shown on the Perfection Certificate; 

(b) (i) Investments consisting of Cash Equivalents, and (ii) any Investments permitted by Borrower’s investment policy, as
amended from time to time, provided that such investment policy (and any such amendment thereto) has been approved in writing by Bank; 
 (c) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower; 

  
 23 

 (d) Investments consisting of deposit accounts in which Bank has a perfected security
interest; 
 (e) Investments accepted in connection with Transfers permitted by Section 7.1; 

(f) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the
ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s
Board of Directors; 
 (g) Investments (including debt obligations) received in connection with the bankruptcy or reorganization
of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 
 (h) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that
this paragraph (h) shall not apply to Investments of Borrower in any Subsidiary; and 
 (i) Investments in an aggregate
amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in any fiscal year consisting of cash investments by Borrower in connection with joint ventures or strategic alliances or collaborations of Borrower or a Subsidiary, and,
(y) investments by Borrower of property permitted to be transferred under Section 7.1 in connection with joint ventures or strategic alliances or collaborations of Borrower or a Subsidiary. 

“Permitted Liens” are: 
 (a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents; 

(b) Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being
contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations
adopted thereunder; 
 (c) purchase money Liens (i) on Equipment (other than Financed Equipment) acquired or held by
Borrower incurred for financing the acquisition of the Equipment securing no more than Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate amount outstanding, or (ii) existing on Equipment (other than Financed Equipment) when
acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment; 
 (d) Liens of
carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed Two Hundred Fifty
Thousand Dollars ($250,000) and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the
property subject thereto; 
 (e) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions,
social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 

(f) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c),
but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 

  
 24 

 (g) leases or subleases of real property granted in the ordinary course of Borrower’s
business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, nonexclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the ordinary course
of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest therein; 

(h) non-exclusive license of Intellectual Property granted to third parties in the ordinary course of business, and licenses of
Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the
United States; 
 (i) Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event
of Default under Sections 8.4 and 8.7; 
 (j) Liens in favor of other financial institutions arising in connection with
Borrower’s deposit and/or securities accounts held at such institutions, provided that Bank has a perfected security interest in the amounts held in such deposit and/or securities accounts; and 

(k) Licenses permitted under Section 7.1. 
 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution,
public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Registered
Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made. 
 “Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer, Executive Vice
President, Corporate Development and Controller of Borrower. 
 “Restricted License” is any material license or
other material agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or
(b) for which a default under or termination of could interfere with the Bank’s right to sell any Collateral. 

“SEC” shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental
Authority. 
 “Securities Account” is any “securities account” as defined in the Code with such
additions to such term as may hereafter be made. 
 “Subordinated Debt” is indebtedness incurred by Borrower
subordinated to all of Borrower’s Obligations to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to
Bank. 
 “Subsidiary” is, as to any Person, a corporation, partnership, limited liability company or other
entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of
directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the
context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower. 

  
 25 

 “Trademarks” means any trademark and servicemark rights, whether registered
or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 

“Transfer” is defined in Section 7.1. 
 “Treasury Note Maturity” is twenty four (24) months. 

“Warrant” is that certain Warrant to Purchase Stock dated as of the Effective Date and executed by Borrower in favor of
Bank. 
 [Signature page follows.] 

  
 26 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as
of the Effective Date. 
  

			
	BORROWER:
	
	EVOKE PHARMA, INC.
		
	By	 	 

  

	Name:	 	 David Gonyer, Rph.

	Title:	 	 Chief Executive Officer

	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 

  

	Name:	 	 David Huey

	Title:	 	 Relationship Manager

  
 1 

 EXHIBIT A – COLLATERAL DESCRIPTION 

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases,
license agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts,
fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever
located; and 
 all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the
above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

Notwithstanding the foregoing, the Collateral does not include (i) more than 65% of the presently existing and hereafter arising
issued and outstanding shares of capital stock owned by Borrower of any foreign Subsidiary which shares entitle the holder thereof to vote for directors or any other matter, (ii) nonassignable licenses or contracts, which by their terms require
the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, Sections 9406 and 9408 of the UCC), (iii) contracts where the granting
of a security interest therein is contrary to applicable law, provided that upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral; provided that in no case shall the definition of
Collateral exclude any Accounts, proceeds of the disposition of any property, or general intangibles consisting of rights to payment; or (iv) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all
proceeds of Intellectual Property. If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property
that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in such
Accounts and such other property of Borrower that are proceeds of the Intellectual Property. 
 Pursuant to the terms of a
certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any of its Intellectual Property without Bank’s prior written consent. 

  
 2 

 EXHIBIT B – LOAN PAYMENT/ADVANCE REQUEST FORM 

DEADLINE FOR SAME DAY PROCESSING IS
NOON PACIFIC TIME* 
  

					
	Fax To:	 		  	Date:                     

 LOAN PAYMENT 

EVOKE PHARMA, INC. 
  

 

					
	From Account #	 	  

					
		 		 	 (Deposit Account #)

	Principal $	 	  

		
	Authorized Signature:	 	  

					
	Print Name/Title:	 	  

 

							
	To Account #	 	  

							
		 		 		 	    (Loan Account #)

							
	and/or Interest $	 	  

			
		 	Phone Number:	 	  

 
 

  
 LOAN
ADVANCE: 
 Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are
for an outgoing wire. 

 

							
	From Account #	 	  

		 		 		 	(Loan Account #)
			
	Amount of Advance $	 		 	  

			
	To Account #	 	  

		 	(Deposit Account #)
		
		 	

 
 

  
 All Borrower’s representations
and warranties in the Loan and Security Agreement are true, correct and complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date: 
  

									
	Authorized Signature:	 	 

  
	 		 	Phone Number:	 	 858-967-5454

	Print Name/Title:	 	 Matthew J. D’Onofrio, Executive Vice President, Corporate Development
	 		 		 	

 OUTGOING WIRE REQUEST: 

Complete only if all or a portion of funds from the loan advance above is to be wired. 
 Deadline for same day processing is noon, Pacific Time 
  

 

					
	Beneficiary Name:	 	  

					
	Beneficiary Bank:	 	  

					
	City and State:	 	  

					
		
	Beneficiary Bank Transit (ABA) #:	 	  

		 		 	
		
	Intermediary Bank:	 	  

							
	 Amount of Wire: $
	 	  

	 Account Number:
	 	  

				
		 		 		 	

							
				
	Beneficiary Bank Code (Swift, Sort, Chip, etc.):	 		 		 	  

	 (For International Wire Only)

							
		
	Transit (ABA)#:	 	  

 

					
	For Further Credit to:	 	  

		
	Special Instruction:	 	  

By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and
conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us). 
  

 

			
	Authorized Signature:	 	  

			
	Print Name/Title:	 	  

			
	Telephone #:	 	  

 

			
	2nd Signature (if required):	 	  

			
	Print Name/Title:	 	  

			
	Telephone #:	 	  

 
 

  

	*	Unless otherwise provided for an Advance bearing interest at LIBOR. 

  
 1 

 EXHIBIT C 

BORROWING RESOLUTIONS 
  

 
 CORPORATE BORROWING CERTIFICATE 

 

					
	BORROWER:	  	EVOKE PHARMA, INC.	  	DATE: June 1, 2012            
	BANK:	  	Silicon Valley Bank	  	

 I hereby certify in my capacity as a duly authorized officer of Borrower and not in any individual
capacity as follows, as of the date set forth above: 
 1. I am the Secretary, Assistant Secretary or other officer of the Borrower. My title is
as set forth below. 
 2. Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the State of
Delaware. 
 3. Attached hereto are true, correct and complete copies of Borrower’s Articles/Certificate of Incorporation (including
amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above. Such Articles/Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and
remain in full force and effect as of the date hereof. 
 4. The following resolutions were duly and validly adopted by Borrower’s Board of
Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified,
repealed, rescinded, amended or revoked, and Bank may rely on them until Bank receives written notice of revocation from Borrower. 
 RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

  

							
	 Name
	  	 Title
	 	 Signature
	 	 Authorized to
 Add or Remove

Signatories

				
	 Matthew J. D’Onofrio
	  	 EVP, Corporate Development
	 	 

  
	 	 ̈
				
	 Dave Gonyer
	  	 Chief Executive Officer
	 	 

  
	 	 ̈
				
	  
	  	  
	 	  
	 	 ̈
				
	  
	  	  
	 	  
	 	 ̈

 RESOLVED FURTHER, that any one of
the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 

RESOLVED FURTHER, that such individuals may, on behalf of Borrower: 

Borrow Money. Borrow money from Silicon Valley Bank (“Bank”). 

Execute Loan Documents. Execute any loan documents Bank requires. 

Grant Security. Grant Bank a security interest in any of Borrower’s assets. 

Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has
an interest and receive cash or otherwise use the proceeds. 
 Letters of Credit. Apply for letters of credit from Bank.

 Foreign Exchange Contracts. Execute spot or forward foreign exchange contracts. 

  
 1 

 Issue Warrants. Issue warrants for Borrower’s capital stock. 

Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements
(including documents or agreement that waive Borrowers right to a jury trial) they believe to be necessary to effectuate such resolutions. 
 RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 

5. The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names. 

 

			
	EVOKE PHARMA, INC
		
	By:	 	 

  

	Name:	 	 Matthew J. D’Onofrio

	Title:	 	 EVP, Corporate Development

 *** If the Secretary, Assistant Secretary or other certifying officer executing above is
designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

I, the Chief Executive Officer of Borrower, in such capacity and not in any personal capacity hereby certify as to paragraphs 1
through 5 above, as 
 [print title] 
 of the date set forth above. 
  

			
	By:	 	 

  

	Name:	 	 Dave Gonyer

	Title:	 	 Chief Executive Officer

  
 2 

 EXHIBIT D 

COMPLIANCE CERTIFICATE 
  

					
	TO:	  	SILICON VALLEY BANK	  	Date:
                                
	FROM:	  	EVOKE PHARMA. INC.	  	

 The undersigned authorized officer of EVOKE PHARMA, INC. (“Borrower”) certifies that under the
terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower
is in complete compliance for the period ending                      with all required covenants except as noted below; (2) there are no Events
of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and
contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee
payroll or benefits of which Borrower has not previously provided written notification to Bank. 
 Attached are the required
documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned
acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.
Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance
status by circling Yes/No under “Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No
	Annual financial statements (CPA Audited) + CC	  	FYE within 180 days	  	 Yes    No

	Annual Projections	  	Earlier of FYE within 60 days or 7 days after board approval	  	Yes    No

 The following are the exceptions with respect to the certification above: (If no
exceptions exist, state “No exceptions to note.”) 
  
  

 
  
  

 
  

									
	EVOKE PHARMA, INC.	 		 	BANK USE ONLY
					
		 		 		 	Received by:	 	  

	By:	 	  
	 		 		 	AUTHORIZED SIGNER
	Name:	 	  
	 		 	Date:	 	  

	Title:	 	  
	 		 		 	
		 		 		 	Verified:	 	  

		 		 		 		 	AUTHORIZED SIGNER
		 		 		 	Date:	 	  

				
		 		 		 	Compliance
Status:                            Yes        No

  
 1EX-10.4

 Exhibit 10.4 
 CONFIDENTIAL TREATMENT REQUESTED UNDER RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

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

DATED October 6, 2009 
  

 
  

					
		 	GLAXO GROUP LIMITED	  	(1)
			
		 	and	  	
			
		 	PROSENSA HOLDING BV	  	(2)

  
  

RESEARCH AND DEVELOPMENT 
 COLLABORATION AND LICENSE AGREEMENT 
  

 

 CONTENTS 

 

							
	Clause	 	Heading	  	Page	 
			
	 1
	 	DEFINITIONS	  	 	4	  
	 2
	 	RESEARCH AND DEVELOPMENT	  	 	22	  
	 3
	 	MANAGEMENT OF THE COLLABORATION	  	 	36	  
	 4
	 	GRANT OF RIGHTS	  	 	46	  
	 5
	 	POST-EXERCISE and POST-LICENSE ACTIVITIES	  	 	58	  
	 6
	 	MILESTONES AND ROYALTIES; PAYMENTS	  	 	64	  
	 7
	 	EXCLUSIVITY	  	 	76	  
	 8
	 	INTELLECTUAL PROPERTY	  	 	78	  
	 9
	 	CONFIDENTIALITY	  	 	87	  
	 10
	 	REPRESENTATIONS AND WARRANTIES	  	 	92	  
	 11
	 	INDEMNIFICATION; INSURANCE	  	 	96	  
	 12
	 	TERM AND TERMINATION	  	 	100	  
	 13
	 	MISCELLANEOUS	  	 	110	  

 This RESEARCH, DEVELOPMENT, COLLABORATION AND LICENSE AGREEMENT (the “Agreement”) is
entered into and made effective as of October 6, 2009 (the “Effective Date”) by and between PROSENSA Holding BV, a company incorporated under the laws of the Netherlands and with registered number 28076693, whose offices are
located at Wassenaarseweg 72, 2333 AL Leiden, The Netherlands (“PROSENSA”), and Glaxo Group Limited, a company incorporated under the laws of England and Wales with registered number 00305979, whose registered office is Glaxo
Wellcome House, Berkeley Avenue, Greenford, Middlesex, UB6 0NN, England (“GSK”). PROSENSA and GSK are each referred to herein by name or as a “Party” or, collectively, as “Parties.” 

RECITALS 
 WHEREAS, PROSENSA
possesses an antisense oligonucleotide exon skipping proprietary technology, know-how and certain intellectual property related to the discovery, identification, synthesis and development of antisense oligonucleotides (“AONs”) as drug
candidates for treating patients with Duchenne Muscular Dystrophy (“DMD”); 
 WHEREAS, GSK possesses expertise in the research,
development, manufacturing and commercialization of human pharmaceuticals, and GSK is interested in developing such AONs as drug products; 

WHEREAS, GSK desires to engage in a collaborative effort with PROSENSA for up to four (4) different programs pursuant to which GSK and
PROSENSA will further develop and commercialize the Exon 51 Program for DMD and PROSENSA will carry out up to three (3) additional different research and development programs to discover and develop AONs for the treatment of DMD, and pursuant
to which GSK will have certain options, exercisable at GSK’s sole discretion, to further develop and commercialize such AONs, and GSK will further develop and commercialize all on the terms and conditions set forth herein; and 

WHEREAS, GSK desires to obtain (i) an exclusive, worldwide, royalty-bearing license under the PROSENSA IP to develop and commercialize
Products and (ii) Options to in-license certain PROSENSA Compounds for development and commercialization purposes; and 
 WHEREAS,
PROSENSA desires to grant such license and Options. 

  
 3 

 NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 
  

	1	DEFINITIONS 

 As
used in this Agreement, the following terms will have the meanings set forth in this Article 1 unless context dictates otherwise: 
 “Acceptance” means with respect to an NDA or MAA filed for a Product, (a) in the United States, the receipt by GSK or its Affiliate or Sublicensee of written notice from the FDA in
accordance with 21 CFR 314.101(a)(2) that such NDA is officially “filed”, (b) in the European Union, receipt by GSK or its Affiliate or Sublicensee of written notice of acceptance by the EMEA of such MAA for filing under the
centralized European procedure in accordance with any feedback received from European Regulatory Authorities; provided, that if the centralized filing procedure is not used, then Acceptance shall be determined upon the acceptance of such MAA by the
applicable Regulatory Authority in the first Major EU Country, (c) in Japan, receipt by GSK or its Affiliate or Sublicensee of written notice of acceptance of filing of such MAA from the MHLW and (d) in any Other Major Market Country after
receipt by GSK or its Affiliate or Sublicensee of written notice of acceptance of filing of the applicable applications by the competent Regulatory Authority of that specific country. 

“Affiliate” means any Person, which, directly or indirectly through one (1) or more intermediaries, controls, is
controlled by or is under common control with a Party to this Agreement, regardless of whether such Affiliate is or becomes an Affiliate on or after the Effective Date. A Person shall be deemed to “control” another Person if it
(a) owns, directly or indirectly, beneficially or legally, at least fifty percent (50%) of the outstanding voting securities or capital stock (or such lesser percentage which is the maximum allowed to be owned by a Person in a particular
jurisdiction) of such other Person, or has other comparable ownership interest with respect to any Person other than a corporation; or (b) has the power, whether pursuant to contract, ownership of securities or otherwise, to direct the
management and policies of the Person. 
 “Alliance Director” has the meaning assigned to such term in
Section 3.4. 

  
 4 

 “Annual Net Sales” means total Net Sales in the Territory in a particular
Calendar Year. 
 “Breaching Party” has the meaning assigned to such term in Section 12.2(a). 

“Business Day” means a day on which banking institutions in New York, New York, United States, Amsterdam, The Netherlands
and London, England are open for business, excluding any Saturday or Sunday. 
 “Calendar Day” means any day,
including a Saturday, Sunday, Business Day or public or company holiday. 
 “Calendar Quarter” means a period of
three (3) consecutive months ending on the last day of March, June, September, or December, respectively. 

“Calendar Year” means a period of twelve (12) consecutive months beginning on January 1 and ending on
December 31. 
 “cGMP” means all applicable standards relating to manufacturing practices for fine
chemicals, intermediates, bulk products or Products, including (i) the principles detailed in the U.S. Current Good Manufacturing Practices, 21 CFR Parts 210 and 211 and EU Commission Directives 2003/94/EC and 2005/28/EC and The Rules Governing
Medicinal Products in the European Community, Volume IV, Good Manufacturing Practice for Medicinal Products, as each may be amended from time to time or (ii) standards promulgated by any governmental body having jurisdiction over the
manufacture of a Compound, in the form of laws or regulations. 
 “Chairperson” has the meaning assigned to such
term in Section 3.1(a). 
 “Change of Control Event” means a transaction in which a Party: (a) merges
or consolidates with any other Person (other than an Affiliate or wholly-owned subsidiary not created for the purpose of such merger or consolidation of such Party with a Third Party ); or (b) effects any other transaction or series of
transactions (other than a listing on a public recognised stock exchange or fund raising from existing or new investors in the ordinary course of business), such that the stockholders of such Party immediately prior thereto, in the aggregate, no
longer own, directly or indirectly, beneficially or legally, at least fifty percent (50%) of the outstanding voting securities or capital stock of the surviving entity following the closing of such merger, consolidation, other transaction or
series of transactions. 

  
 5 

 “Claims” has the meaning assigned to such term in Section 11.1.

 “Clinical Candidate Selection Criteria” means the criteria (a) set forth in Exhibit A, and
(b) as modified by the JSC for Compounds in each PROSENSA Collaboration Program pursuant to Section 2.6(a), for achievement of the Clinical Candidate Selection Milestone. 

“Commercially Reasonable Efforts” means the following: (a) with respect to PROSENSA, such efforts that are
consistent with the efforts and resources normally used by PROSENSA in the exercise of its reasonable business discretion relating to the research, development and commercial progression of a potential pharmaceutical product owned by it or to which
it has exclusive rights, with similar product characteristics as the relevant Compound or Product, which is of similar market potential at a similar stage in its development or product life as the relevant Compound or Product, taking into account
issues of scientific risk, patent coverage, safety and efficacy, product profile, competitiveness of the marketplace, proprietary position, the regulatory structure involved and profitability (including pricing and reimbursement status achieved or
likely to be achieved) and other relevant factors, including without limitation, technical, legal, scientific and/or medical factors; and (b) with respect to GSK, such efforts that are consistent with the efforts and resources normally used by
GSK in the exercise of its reasonable business discretion relating to the development and commercialization of a prescription pharmaceutical product or over-the-counter product as appropriate owned by it or to which it has exclusive rights, with
similar product characteristics as the relevant Compound or Product, which is of similar market potential at a similar stage in its development or product life as the relevant Compound or Product, taking into account issues of patent coverage,
safety and efficacy, product profile, the competitiveness of the marketplace, the proprietary position, the regulatory structure involved and profitability (including pricing and reimbursement status achieved or likely to be achieved) and other
relevant factors, including without limitation, technical, legal, scientific and/or medical factors provided that GSK shall not be entitled to factor in amounts that would be owed to PROSENSA relating to the relevant Product. 

  
 6 

 “Competitive Infringement” has the meaning assigned to such term in
Section 8.5(a). 
 “Compound” means any of (i) each of PRO051 and PRO044 and (ii) compounds
comprising an antisense oligonucleotide (“AON”) that is directed to exon skipping by a mechanism intended to directly induce single exon skipping in the dystrophin gene for the treatment of DMD for the relevant exons of the Exon 51
Program, the Exon 44 Program, the DMD Program 3, or the DMD Program 4, as applicable, and meeting the criteria set by the JSC for the relevant PROSENSA Collaboration Program, unless otherwise mutually agreed by the JSC, and, in the case of
(i) or (ii), all derivatives and improvements of such compound, (a) that are existing as of the Effective Date or (b) that are Researched and/or Developed by PROSENSA under a PROSENSA Collaboration Program or (c) as identified,
further modified, optimized or otherwise Researched or Developed by GSK under a GSK Development Program. 
 “Confidential
Information” has the meaning assigned to such term in Section 9.1. 
 “Control,” “Controls,”
“Controlled” or “Controlling” means, with respect to any intellectual property, possession of the ability to grant the licenses or sublicenses as provided herein without violating the terms of any agreement or other
arrangement with any Third Party. A Party shall be deemed to Control Joint IP to the extent of its individual or joint interest therein, as applicable. 
 “Develop” or “Development” means pre-clinical and clinical drug development activities relating to the development of Compounds, Products and/or processes and submission
of information to a Regulatory Authority for the purpose of obtaining Regulatory Approval and Reimbursement Approval of a Product, and activities to develop manufacturing capabilities for Products. Development includes, but is not limited to,
pre-clinical activities, toxicology studies, formulation, manufacturing process development and scale-up (including bulk compound production), manufacturing Compound or Product for Clinical Trials, quality assurance and quality control, technical
support, pharmacokinetic studies, clinical studies and regulatory affairs activities. 
 “Development Plan” has
the meaning assigned to such term in Section 2.2. 

  
 7 

 “Disclosing Party” has the meaning assigned to such term in
Section 9.1. 
 “DMD” means Duchenne Muscular Dystrophy. 

“DMD Program 3” means a program of Research and Development activities for PROSENSA’s proprietary Compounds targeted
to specific exons of the human dystrophin gene existing as of the Effective Date or arising under the collaboration that are directed to exon skipping by a mechanism intended to directly induce single exon skipping in the dystrophin gene for the
treatment of DMD by inducing cells to specifically skip translation of a mutually agreed exon(s) of the dystrophin gene, including any Secondary Compounds developed by PROSENSA, and as further described in Section 2.5(a). 

“DMD Program 3 Initiation Payment” has the meaning assigned to such term in Section 2.5(a). 

“DMD Program 4” means a program of Research and Development activities for PROSENSA’s proprietary Compounds targeted
to specific exons of the human dystrophin gene existing as of the Effective Date or arising under the collaboration that are directed to exon skipping by a mechanism intended to directly induce single exon skipping in the dystrophin gene for the
treatment of DMD by inducing cells to specifically skip translation of a mutually agreed exon(s), but exon(s) that are different from the exon(s) of DMD Program 3, of the dystrophin gene and any Secondary Compounds developed by PROSENSA, and as
further described in Section 2.5(b). 
 “DMD Program 4 Initiation Payment” has the meaning assigned to such
term in Section 2.5(b). 
 “EMEA” means the European Medicines Agency, and any successor entity thereto.

 “EU Commercial Territory” or “ECT” means, collectively, Netherlands, Belgium, Sweden, Denmark,
Norway and Finland. 
 “European Commission” means the executive body of the European Union that has
legal authority to grant marketing authorization approvals for pharmaceutical products in the European Union following scientific evaluation and recommendation from the EMEA or other applicable Regulatory Authorities. 

  
 8 

 “EU Territory” or “ET” means, collectively, * * * * *.

 “European Union” or “EU” means all countries that are officially recognized as member states
of the European Union at any particular time during the Term. 
 “Executive Officers” means the executive
officers designated by each Party as having the final decision-making authority with respect to the particular dispute being presented for resolution pursuant to Section 3.2(d). 

“Exclusively Licensed IP” means (i) with respect to each Compound in the Exon 51 Program, and (ii) with respect
to each Compound in a PROSENSA Collaboration Program for which GSK exercises the Option and receives rights upon exercise pursuant to Section 4.2 or by operation of the applicable provisions of Article 12, in the case of either (i) or
(ii) above shall include both (a) and (b) as follows: (a) any and all PROSENSA Know-How and Joint Know-How, in each case that describes the composition of matter of or is necessary or useful for the making, use (including method
of use) or sale of such Compound, and (b) any and all PROSENSA Patent Rights and Joint Patent Rights, in each case that claims or covers the composition of matter of or the making, use (including method of use) or sale of any such Compound.

 “Exon 44 Program” means a program of Research and Development activities for PROSENSA’s proprietary
Compounds targeted to specific exons of the human dystrophin gene existing as of the Effective Date or arising under this Agreement that are intended to treat DMD by a mechanism of single exon-skipping intended to induce cells to specifically skip
translation of exon 44 of the dystrophin gene, including the Lead Compound “PRO044” and any other Compounds that are Researched or Developed by or on behalf of PROSENSA or its Affiliate qualifying under this definition. 

“Exon 51 Program” means a program of Research and Development activities for PROSENSA’s proprietary Compounds
targeted to specific exons of the human dystrophin gene existing as of the Effective Date or arising under this Agreement that are intended to treat DMD by a mechanism of single exon-skipping intended to induce cells to specifically skip translation
of exon 51 of the dystrophin gene, including the Lead Compound “PRO051” and any other Compounds that are Researched or Developed by or on behalf of PROSENSA or its Affiliate qualifying under this definition. 

  
 9 

 “FDA” means the U.S. Food and Drug Administration, and any successor entity
thereto. 
 “Field” means any purpose including without limitation the treatment, palliation, prevention and/or
diagnosis of any human or animal disease, disorder or condition. 
 “First Commercial Sale” means, with respect
to each Product, the first sale for which revenue has been recognized by GSK or PROSENSA or their respective Affiliate or Sublicensees for use or consumption by the general public of such Product in any country in the Territory after all required
Regulatory Approvals and Reimbursement Approvals have been granted, or such sale is otherwise permitted, by the Regulatory Authority in such country (e.g. ATU sale in France), provided, that, the following shall not constitute a First Commercial
Sale: (a) any sale to an Affiliate or Sublicensee unless the Affiliate or Sublicensee is the last entity in the distribution chain of the Product and (b) any use of such Product in Clinical Trials, preclinical activities or other Research
or Development activities, or disposal or transfer of Products for a bona fide charitable purpose. 
 “Generic
Competition” means with respect to the GSK Product(s) in any particular country, the existence of any Generic Product(s) in direct competition with such GSK Product(s) in such country that amount to * * * * * of the market for such GSK
Product(s) in such country. 
 “Generic Product” means any pharmaceutical product that (a) is sold by a
Third Party that is not a licensee or Sublicensee of GSK or its Affiliates, or any of their licensees or Sublicensees, under a marketing authorization granted by a Regulatory Authority to such Third Party and (b) contains the same or a similar
compound as an active pharmaceutical ingredient as the relevant Product and (c) (i) for purposes of the United States, is approved in reliance, in whole or in part, on the prior approval of a Product or on the safety and efficacy data
generated for the prior approval of a Product, in each case as determined by the FDA, or (ii) for purposes of a country outside the United States, is approved in reliance, in whole or in part, on the prior approval of a Product or on the safety
and efficacy data generated for the prior approval of a Product, in each case as determined by the applicable Regulatory Authority. 

  
 10 

 “Global Brand Team” or “GBT” has the meaning assigned to such
term in Section 3.3. 
 “GSK Development Compound” means any Compound, arising out of (i) the
exclusively licensed Exon 51 Program, pursuant to Section 4 or (ii) a PROSENSA Collaboration Program that has become a GSK Development Program upon GSK’s exercise of the applicable Option. 

“GSK Development Plan” shall have the meaning assigned to it in Section 5.1(d). 

“GSK Development Program” means each of (i) the Exon 51 Program, and (ii) any PROSENSA Collaboration Program
for which GSK has exercised its Option and, for both (i) and (ii), where such Program has not been terminated by GSK or terminated by PROSENSA (i.e for a termination by PROSENSA in the case of an uncured material breach by GSK of its diligence
or other obligations with respect to such Program). 
 “GSK IP” means GSK Know-How and GSK Patent Rights.

 “GSK Know-How” means Know-How that is solely owned or otherwise Controlled by GSK and is (i) discovered,
developed, invented or created solely by or on behalf of GSK as of the Effective Date or at any time during the Term of this Agreement pursuant to, and is utilized and incorporated in, a PROSENSA Collaboration Program or a GSK Development Program
and (ii) necessary or useful for the Research, Development making, use or sale of Compounds. 
 “GSK Patent
Rights” means all Patent Rights solely owned or otherwise Controlled by GSK as of the Effective Date or at any time during the Term of the Agreement which claim or cover GSK Know-How. 

“GSK Product” means a Product Developed and commercialized by GSK or its Affiliate or Sublicensee under or resulting from
a GSK Development Program. 
 “Indemnitee” has the meaning assigned to such term in Section 11.3.

 “Initiation Payment” means a DMD Program 3 Initiation Payment or a DMD Program 4 Initiation Payment as the
case may be. 

  
 11 

 “Joint IP” means Joint Know-How and Joint Patent Rights. [—] 
 “Joint Know-How” means Know-How that is discovered, developed,
invented or created jointly by or on behalf of employees, agents and/or consultants of PROSENSA and/or its Affiliate on the one hand, and by or on behalf of employees, agents and/or consultants of GSK and/or its Affiliate on the other hand, at any
time during the Term of and pursuant to this Agreement. 
 “Joint Patent Rights” means all Patent
Rights owned jointly by PROSENSA and GSK at any time during the Term of this Agreement covering or claiming Joint Know-How. 

“Joint Patent Subcommittee” or “JPS” has the meaning assigned to such term in Section 3.1(h).

 “Joint Project Team” or “JPT” has the meaning assigned to such term in Section 3.2.

 “Joint Steering Committee” or “JSC” has the meaning assigned to such term in
Section 3.1. 
 “Know-How” means all (a) information, techniques, technology, practices,
trade secrets, inventions (whether patentable or not), methods, knowledge, know-how, skill, experience, data, results (including pharmacological, toxicological and clinical test data and results, and Research or Development data, reports and batch
records), clinical, safety, analytical and quality control data, analytical methods (including applicable reference standards), full batch documentation, packaging records, release, stability, storage and shelf-life data, manufacturing process
information and quality control data, results or descriptions, software and algorithms, regulatory filings, pharmaceutical data, instructions, processes, procedures, formulas, drawings, technical and non-technical data and (b) compositions of
matter, cells, cell lines, assays, animal models and physical, biological or chemical material. As used in this definition, “clinical test data” shall be deemed to include all information related to the clinical or pre-clinical
testing of a Compound or Product, including without limitation patient report forms, investigators’ reports, biostatistical, pharmaco-economic and other related analyses, regulatory filings and communications, and the like. 

  
 12 

 “Know-How Royalty” has the meaning assigned to such term in
Section 6.3(b). 
 “Lead Compound” means a Compound which is the most advanced Compound within the Exon 51
Program, Exon 44 Program, DMD Program 3 and DMD Program 4. Specifically, the Lead Compound of the Exon 51 Program is PRO051 and the Lead Compound of the Exon 44 Program is PRO044. 

“Losses” has the meaning assigned to such term in Section 11.1. 

“MAA” means a regulatory application filed with the EMEA or MHLW seeking Regulatory Approval of a Product, and all
amendments and supplements thereto filed with the EMEA or MHLW. 
 “Major EU Country” means any of * * * * *.

 “Market Exclusivity Rights” means (a) a marketing exclusivity right conferred upon the
sponsor of a drug for a rare disease or condition under 21 United States Code Section 360cc, any analogous provision of law applicable in any other country in the Territory, or any provision of law that is a successor to them; and
(b) “market exclusivity” that is additive or complementary to that specified in the preceding clause “a” that is earned and granted as a result of the conduct of specified paediatric studies, under 21 United States Code
Section 355a, any analogous provision of law applicable in any other country in the Territory, or any provision of law that is a successor to them. 
 “Materials” has the meaning assigned to such term in Section 2.9. 
 “MHLW” means the Ministry of Health, Labour and Welfare of Japan, or the Pharmaceuticals and Medical Devices Agency (the “PMDA,” formerly known as IYAKUHIN SOGO KIKO), or any
successor to either of them, as the case may be. 
 “Milestone Criteria” means either * * * * *, as the case may
be. 
 “Milestone Report” has the meaning assigned to such term in Section 2.7(a). 

  
 13 

 “NDA” means a New Drug Application (as more fully defined in 21 C.F.R.
314.5 et seq. or its successor regulation) and all amendments and supplements thereto filed with the FDA. 
 “Net
Sales” means, with respect to any Product, the gross invoiced sales price of such Product sold by GSK or PROSENSA or their respective Affiliates or Sublicensees (the “Selling Party”) in finished product form, packaged and
labelled for sale, under this Agreement in arm’s length sales to Third Parties, less deductions allowed to the Third Party customer by the Selling Party and actually incurred, allowed, paid, accrued or specifically allocated as reported by the
Selling Party in its financial statements in accordance with the International Financial Reporting Standards (“IFRS”) for GSK or PROSENSA (or any other Selling Party which accounts in accordance with IFRS) applied on a consistent basis,
for: 
  

	 	(a)	customary and reasonable trade, quantity, and cash discounts and wholesaler allowances; provided that, in the case of pharmacy incentive research programs, hospital
performance incentive research program chargebacks, disease management research programs, similar research programs or discounts and wholesaler allowances on “bundles” of products, all discounts, wholesaler allowances and the like shall be
applied on a reasonable and proportionate basis; 

  

	 	(b)	customary and reasonable credits, rebates and chargebacks (including those to managed-care entities and government agencies), and allowances or credits to customers on
account of rejection or returns (including, but not limited to, wholesaler and retailer returns) or on account of retroactive price reductions affecting such Product; 

 

	 	(c)	freight, postage and duties, and transportation charges relating to such Product, including handling and insurance thereto to the extent included on the invoice;

  

	 	(d)	sales (such as VAT or its equivalent) and excise taxes, other consumption taxes, customs duties and compulsory payments to governmental authorities and any other
governmental charges imposed upon the importation, use or sale of such Product to Third Parties (excluding any taxes paid on the income from such sales) to the extent the Selling Party is not otherwise entitled to a credit or a refund for such
taxes, duties or payments made; 

  
 14 

	 	(e)	the lesser of (a) * * * * * of the aggregate gross amount billed or invoiced on sales of a Product in the relevant country or (b) the actual amount of any
write offs for bad debt relating to such sales during the period in which a Selling Party has the obligation to pay a royalty; and 

  

	 	(f)	other items actually deducted from gross sales in relation to changes in accounting guidelines as per IFRS and to the extent that such deductions are consistently
applied across the relevant Party’s business. 

 Sales between GSK and its Affiliates or Sublicensees, or
PROSENSA and its Affiliates or Sublicensees, as applicable, shall be excluded from the computation of Net Sales, and no payments will be payable on such sales except where such Affiliate or Sublicensee is the end user in the distribution chain for
the Product, in which case such sales shall be deemed to be at a price which is equivalent to the price which would normally be charged on an arms’ length basis for equivalent sales. 

For purposes of determining royalties and sales milestones payable on Combination Products, Net Sales will be calculated as follows, in
each Calendar Quarter: 
 If a Product is sold as part of a Combination Product (as defined below), Net Sales will be * * * * *
where: 
 A is * * * * *; and 
 B is * * * * *. 

  
 15 

 * * * * * If the Parties are unable to reach such an agreement prior to the end of the
applicable accounting period, then the Parties will refer such matter to a jointly selected Third Party with expertise in the pricing of pharmaceutical products that is not an employee, consultant, legal advisor, officer, director or stockholder of,
and does not have any conflict of interest with respect to, either Party for resolution in accordance with Section 13.1(b). 

As used in this Agreement, “Combination Product” means a Product that contains one or more additional active ingredients
(whether coformulated or copackaged) that are neither Compounds nor generic or other non-proprietary compositions-of-matter. Pharmaceutical dosage form vehicles, adjuvants and excipients shall be deemed not to be “active ingredients”.

 “Non-breaching Party” has the meaning assigned to such term in Section 12.2(a). 

“Option” has the meaning assigned to such term in Section 4.2(a). 

“Option Exercise Fee” means the fee payable by GSK on exercise of an Option as set out in Section 6.2. 

“Option Period Start” has the meaning assigned to such term in Section 4.2(c). 

“Other Major Market Country” means any country or economic region having a population greater than * * * * *, other than
the United States, any Major EU Country, or Japan. 
 “Party” or “Parties” has the meaning assigned to
such term in the Preamble. 

  
 16 

 “Patent Costs” means the reasonable fees and expenses paid to outside legal
counsel, and filing, maintenance and other out-of-pocket expenses paid to Third Parties, incurred in connection with the Prosecution and Maintenance of Patents. 
 “Patent/Market Exclusivity Royalty” has the meaning assigned to such term in Section 6.3(a). 
 “Patent Rights” means (a) all patents and patent applications in any country or supranational jurisdiction in the Territory, (b) any substitutions, divisions, continuations,
continuations-in-part, provisional applications, reissues, renewals, registrations, confirmations, re-examinations, extensions, utility models, inventors certificates, supplementary protection certificates and the like of any such patents or patent
applications, and (c) foreign counterparts of any of the foregoing. 
 “Payee” has the meaning assigned to
such term in Section 6.7. 
 “Payor” has the meaning assigned to such term in Section 6.7. 

“Person” means any individual, partnership, joint venture, limited liability company, limited liability partnership,
corporation, firm, trust, association, unincorporated organization, governmental authority or agency, or any other entity not specifically listed herein. 
 “Primary Compound” means a Compound selected by the JSC for progression to a POC Study as set forth in Section 2.5. 

“Product” means any product that includes a Compound, whether or not as the sole active ingredient and in any dosage form
or formulation. 
 “Program” means the Exon 51 Program, a PROSENSA Collaboration Program, a PROSENSA Development
Program, or a GSK Development Program, as applicable. 
 “Proof of Concept” or “POC” means the
stage of Development at which a Lead Compound has successfully satisfied the Proof of Concept Criteria. 
 “Proof of
Concept Criteria” or “POC Criteria” means the clinical and the non-clinical criteria established by the JSC, pursuant to Section 2.6(c), which is designed to determine whether a Lead Compound demonstrates Proof of
Concept, that is, (i) the endpoints and parameters for the Proof of Concept Study designed 

  
 17 

 
to indicate a degree of efficacy, for example determined by the level of dystrophin expression, required to signal differentiation in a particular indication in patients with the disease under
study with the appropriate safety profile for such indication, and (ii) the associated non-clinical Proof of Concept Criteria, that is, the non-clinical safety assessment, metabolism, pharmacokinetics and chemical manufacture and control
criteria to be defined by the JSC on a PROSENSA Collaboration Program-by-PROSENSA Collaboration Program basis. 
 “Proof
of Concept Study or “POC Study” shall mean, with respect to a particular Lead Compound, the first human Clinical Trial of such Lead Compound, carried out in accordance with normal industry standards, that meets the requirements
of 21 C.F.R. Section 312.21(b), unless otherwise agreed by the JSC, and is intended to explore the effectiveness and signal for differentiation of the Lead Compound for a particular indication in patients with the disease under study and to
determine the common short-term side effects and risks associated with the drug and thus to satisfy the clinical Proof of Concept Criteria if successful. For clarity, the Proof of Concept Study is intended only to provide evidence of efficacy as
described above of a particular Lead Compound and is not intended to be a pivotal trial or dose-ranging study or otherwise to provide data sufficient to support any Regulatory Approval. 

“Proof of Concept Study Design” or “POC Study Design” means the design, content and endpoints for a
Proof of Concept Study. 
 “PRO044” means a 2’-O-methyl-phosphoro-thioate-oligoribonucleotide with sequence
5’-UCA GCU UCU GUU AGC CAC UG-3’. 
 “PRO051” means a
2’-O-methyl-phosphoro-thioate-oligoribonucleotide with sequence 5’-UCA AGG AAG AUG GCA UUU CU-3’. 

“Prosecution and Maintenance” or “Prosecute and Maintain” means, with regard to a Patent Right, the
preparing, filing, prosecuting and maintenance of such Patent Right, as well as re-examinations, reissues, and requests for patent term adjustments, patent term extensions and supplementary protection certificates with respect to such Patent,
together with the initiation or defense of interferences, the initiation or defense of oppositions, revocation and invalidity proceedings, and other similar proceedings with respect to the particular Patent, and any appeals therefrom. For
clarification, “Prosecution and Maintenance” or “Prosecute and Maintain” shall not include any other enforcement actions taken with respect to a Patent. 

  
 18 

 “PROSENSA Collaboration Program” means each of PROSENSA’s programs of
Research and Development activities for Compounds targeted to specific exons of the human dystrophin gene, and collectively, the PROSENSA Collaboration Programs includes the “Exon 44 Program”, the “DMD Program 3” and the
“DMD Program 4”. 
 “PROSENSA Development Program” means a PROSENSA Collaboration Program for which
GSK fails to exercise its Option before expiration or GSK declines its Option, a PROSENSA Collaboration Program that is terminated by the JSC or GSK, or a terminated GSK Development Program, where such Program has been terminated by GSK or PROSENSA
by operation of the applicable provisions of Article 12 containing Compounds and Products that PROSENSA elects to further Develop and commercialize. 
 “PROSENSA IP” means the PROSENSA Know-How and the PROSENSA Patent Rights. 
 “PROSENSA Know-How” means Know-How that is (i) solely owned or otherwise Controlled by PROSENSA and/or is discovered, developed, invented or created solely by or on behalf of
PROSENSA as of the Effective Date or at any time during the Term of this Agreement pursuant to, and utilized in, a PROSENSA Collaboration Program or GSK Development Program and (ii) necessary or useful to the Research, Development making, use
or sale of Compounds. 
 “PROSENSA Patent Rights” means all Patent Rights solely owned or
otherwise Controlled by PROSENSA as of the Effective Date or at any time during the Term of this Agreement which cover or claim PROSENSA Know-How. 
 “PROSENSA Product” means a Product Developed and commercialized by PROSENSA under a PROSENSA Development Program. 
 “Receiving Party” has the meaning assigned to such term in Section 9.1. 
 “Regulatory Approval” means any and all approvals, licenses, registrations, or authorizations of any country, federal, supranational, state or local regulatory agency, department, bureau
or other government entity that are necessary for the manufacture, use, storage, import, transport and/or sale of a particular Product in the applicable jurisdiction. 

  
 19 

 “Regulatory Authority” means the FDA in the U.S. or any health regulatory
authority in another country in the Territory that is a counterpart to the FDA and holds responsibility for granting regulatory marketing approval for a Product in such country, including the European Commission and the MHLW, and any successor(s)
thereto. 
 “Reimbursement Approval” means any and all pricing and/or reimbursement approvals, licenses,
registrations, or authorizations of any country, federal, supranational, state or local regulatory agency, department, bureau or other government entity, or by a payor or charitable organisation relating to the sale or transfer of a particular
Product in the applicable jurisdiction including in the EU applicable reimbursement in a Major EU Country, in the U.S. applicable first reimbursement by the first applicable agency, payor or organisation, in Japan applicable first reimbursement by
the first applicable agency, payor or organisation, and in any other jurisdiction applicable first reimbursement by the first applicable agency, payor or organisation in such jurisdiction. 

“Research” means the discovery, identification, research, characterization, modification, derivatization, optimization,
and pre-clinical testing of pharmaceutical compounds. 
 “Research Term” has the meaning assigned to such term
in Section 2.3. 
 “Review Period” has the meaning assigned to such term in Section 4.2(d).

 “Secondary Compound” means a Compound in a PROSENSA Collaboration Program that meets the Candidate Selection
Criteria but is not selected for progression to POC studies by the JSC as set forth in Section 2.5. 

“Subcommittee” has the meaning assigned to such term in Section 3.1(g). 

“Sublicense Income” means all consideration, including upfront payments, milestone payments and royalties not
constituting pass-through royalties under this Agreement, received by GSK or its Affiliates under this Agreement from Third Party Sublicensees, excluding (a) pass-through milestones and royalties owed hereunder with respect to Products and
(b) amounts received by GSK or its 

  
 20 

 
Affiliates in consideration for the purchase by Sublicensees of any securities of GSK or its Affiliates at a price equal to the then fair market value of such securities. 

“Sublicensee” means, with respect to a particular Product, an Affiliate or a Third Party to whom GSK or PROSENSA, as
applicable, has granted a sublicense or license under any PROSENSA IP and/or Joint IP and/or GSK IP licensed to such Party, as permitted in accordance with the provisions of this Agreement, but excluding any Third Party acting solely as a
distributor. 
 “Term” has the meaning assigned to such term in Section 12.1. 

“Territory” means the entire world. 
 “Triggering Entity” means (i) any pharmaceutical, biotechnology or biopharmaceutical company that had at least * * * * * in annual aggregate net sales of pharmaceutical products
(based on data provided by IMS International, or, if such data is not available, such other reliable data source as reasonably determined and mutually agreed in writing by the Parties) (ii) any one or more Persons that are direct or indirect
parent holding companies of subsidiaries of the pharmaceutical, biotechnology or biopharmaceutical company described in clause (i) above or (iii) any Affiliate of the pharmaceutical, biotechnology or biopharmaceutical company described in
clause (I) above. 
 “Third Party” means any Person other than PROSENSA or GSK or an Affiliate of PROSENSA
or GSK. 
 “United States” or “U.S.” means the United States of America and all of its territories and
possessions. 
 “VAT” means the tax imposed by Council Directive 2006/112/EC of the European Community and any
national legislation implementing that directive together with legislation supplemental thereto and in particular, in relation to the United Kingdom, the tax imposed by the Value Added Tax Act. 

“Valid Claim” means any claim within a pending, allowed or issued U.S. patent application or patent, or pending, accepted
or issued patent application or patent in a jurisdiction outside the U.S., that: (a) has not expired, lapsed, been 

  
 21 

 
cancelled or abandoned, or been dedicated to the public, disclaimed, or held unenforceable, invalid, or cancelled by a court or administrative agency of competent jurisdiction in an order or
decision from which no appeal has been or can be taken, including without limitation through opposition, re-examination, reissue or disclaimer and (b) in the case of a pending patent application, has not been pending for more than * * * * *
from either (i) the date PROSENSA took over prosecution control of such Patent Rights or (ii) the earliest priority date of patent applications first filed by PROSENSA, provided that in either (i) or (ii), such patent application was
prosecuted in good faith by PROSENSA. 
  

	2	RESEARCH AND DEVELOPMENT 

  

	2.1	Overview 

 PROSENSA has
completed a Phase I/II study with PRO051 and has initiated an open-label extension study. This extension study will be subject to a formal three (3) month safety review as well as a Six Month Safety and Data Review. PROSENSA will grant to GSK
an exclusive commercial license to PRO051 as of the Effective Date. Pursuant to this Agreement and as further provided in this Article 2, PROSENSA will undertake certain activities for the Exon 51 Program (pursuant to Section 2.4 (a)(i)) and
will conduct the PROSENSA Collaboration Programs. The objective of the PROSENSA Collaboration Programs is the identification, optimization, Research and Development of Compounds, which Compounds GSK shall have Options to exclusively license on a
worldwide basis, as provided in Article 4. For clarity, the Exon 44 Program will be undertaken by PROSENSA commencing at the Effective Date, whereas PROSENSA will undertake DMD Program 3 commencing within * * * * * of the Effective Date and DMD
Program 4 commencing within * * * * * of the Effective Date pursuant to Section 2.5 and following payment by GSK pursuant to Section 6.2(c), provided, however, that the Parties will consider the possibility of shortening these timelines
and the actual start of these Programs at the first meeting of the JSC. 
  

	2.2	Development Plans 

 Each
PROSENSA Collaboration Program will be carried out by PROSENSA pursuant to a development plan (each, a “Development Plan”) that will outline anticipated Research and Development activities to be conducted by PROSENSA,

  
 22 

 
the anticipated timelines for carrying out such activities and the criteria to be met in reaching the Program milestones to enable a determination on completion of the relevant activities as to
whether all of the applicable Milestone Criteria have been met. Any estimates regarding the timelines of such activities shall be intended as a general guide only. Development Plans for the Exon 44 Program will be prepared by PROSENSA following the
Effective Date and submitted to the JSC for comment and approval. PROSENSA shall consider all comments of the JSC in good faith and shall prepare a final Development Plan for approval by the JSC promptly following receipt of such comments.
Development Plans for DMD Program 3 and DMD Program 4 will be prepared by PROSENSA following payment by GSK of the DMD Program 3 Initiation Payment and DMD Program 4 Initiation Payment pursuant to Section 6.2(c), respectively, and submitted to
the JSC for comment and approval. PROSENSA shall consider all comments of the JSC in good faith and shall prepare a final Development Plan for approval by the JSC promptly following receipt of such comments. 

From time to time during the Research Term, PROSENSA shall update each Development Plan (or applicable portion thereof) and shall submit
such updated Development Plan to the JSC for review and comment. PROSENSA shall consider all such comments in good faith before preparing an updated Development Plan. Each updated Development Plan shall replace the Development Plan previously in
effect. Each Development Plan will be reviewed as necessary at each meeting of the JSC, and at any other time upon the request of either Party, and the JSC may suggest modifications, as appropriate, to reflect material scientific or commercial
developments. In the event of any inconsistency between any Development Plan and this Agreement, the terms of this Agreement shall prevail and any such inconsistent portion of a Development Plan shall be amended on a timely basis. 

 

	2.3	Research Term 

 The
Research term shall commence on the Effective Date and shall expire, on a Program-by-Program basis, upon the earlier of (i) with respect to the Exon 44 Program, five (5) years after the Effective Date, and with respect to the DMD Program 3
and DMD Program 4, five (5) years after the receipt of the Initiation Payment by PROSENSA for such Program, or (ii) the date that the last Option with respect to such Program is exercised or expires un-exercised by GSK (unless terminated
earlier in accordance with this Agreement) (the “Research Term”), subject to extension if agreed by the Parties. 

  
 23 

	2.4	The Exon 51 Program and the PROSENSA Collaboration Programs 

  

	 	(a)	PROSENSA Rights and Responsibilities. 

  

	 	(i)	The Exon 51 Program. Non-clinical Research Activities: For the Exon 51 Program and subject to the rights granted to GSK in Article 4 and the other
relevant provisions of this Agreement, PROSENSA will continue and finalize only those certain non-clinical Research experiments for PRO051 that are ongoing or specifically planned as of the Effective Date as documented in PROSENSA’s existing
written records, and as more specifically set forth in the protocol entitled “36126 TCP 39-week toxicity study by subcutaneous injection in cynomologus monkeys followed by a 26-week treatment-free period”. GSK shall bear the cost
associated with such study pursuant to this Section 2.4(a)(i), and PROSENSA will invoice GSK for such cost. Development Activities: After the Effective Date, PROSENSA will have the right to conduct only those specific Development
activities, including but not limited to clinical and CMC activities, for the Exon 51 Program that are set forth in Exhibit D, and all such activities shall be subject to the sole decision-making authority of GSK. Subject to a budget agreed upon in
advance by the Parties, GSK shall bear the costs and expenses associated with all such Development activities conducted by PROSENSA pursuant to this Section 2.4(a)(i), and PROSENSA will invoice GSK for such costs and expenses on a Calendar
Quarter basis, including internal PROSENSA FTE costs as well as any agreed-upon pass through expenses. 

  

	 	(ii)	 The PROSENSA Collaboration Programs. Prior to GSK’s exercise of an Option with respect to a PROSENSA Collaboration Program, PROSENSA shall
have responsibility for the conduct of the Research and Development of each Compound (including, but not limited to, Clinical Trials and submissions to Regulatory Authorities) under such PROSENSA Collaboration Program in accordance with the

  
 24 

	 	
applicable Development Plan. PROSENSA shall be solely responsible for all internal and external costs and expenses in connection with the PROSENSA Collaboration Programs up to the date of
GSK’s exercise of an Option in relation to such a PROSENSA Collaboration Program. PROSENSA Development Activities after Option Exercise: After the Option Exercise Date for a given PROSENSA Collaboration Program, and only if and to
the extent mutually agreed in writing by the Parties, PROSENSA will have the limited right to conduct those specific Development activities as may be agreed in writing by the Parties, and all such activities shall be subject to the sole
decision-making authority of GSK. Subject to a budget agreed upon in advance by the Parties, GSK shall bear the costs and expenses associated with all such Development activities, which may also include pre-clinical and CMC activities, conducted by
PROSENSA pursuant to this Section 2.4(a)(ii), and PROSENSA will invoice GSK for such costs and expenses on a Calendar Quarter basis. PROSENSA’s obligation to conduct each PROSENSA Collaboration Program shall terminate at the earlier of
(i) GSK’s exercise of the Option with respect to such PROSENSA Collaboration Program, (ii) expiration of the Research Term, as may be extended pursuant to Section 2.3, or (iii) a decision being made by the JSC to terminate
such PROSENSA Collaboration Program. 

  

	 	(b)	 Diligence. The objective of each PROSENSA Collaboration Program is to (i) discover and Develop a Lead Compound for each Program for further
Development under the terms of this Agreement and (ii) progress each Lead Compound to the completion of the POC Study. The JSC will commence a review at the point at which the first Lead Compound(s) is * * * * * in the
relevant PROSENSA Collaboration Program to determine the liabilities associated with such Lead Compound(s). During the Research Term, PROSENSA shall use Commercially Reasonable Efforts to conduct each PROSENSA Collaboration Program and related
Research and Development activities for such PROSENSA Collaboration Program in accordance with the applicable Development Plan once such plan has been approved by the 

  
 25 

	 	
JSC in accordance with Section 2.2. If in relation to any PROSENSA Collaboration Program PROSENSA is unable to identify a Lead Compound which meets the Clinical Candidate Selection Criteria
within the Research Term, PROSENSA’s obligations under this Section 2 shall cease in relation to that PROSENSA Collaboration Program, unless otherwise agreed by the JSC. 

 

	 	(c)	GSK Research and Funding Responsibilities. 

  

	 	(i)	GSK shall, upon PROSENSA’s reasonable request, consult with PROSENSA regarding the Research and Development of Compounds under each PROSENSA Collaboration Program.

  

	 	(ii)	As of the Effective Date, GSK shall assume all costs and expenses with respect to the continued Development of the Exon 51 Program, including the 9 months toxicology
study as referred to in Section 2.4(a) and CMC costs, including API or finished product costs related to any pivotal studies, and all clinical activities. 

 

	 	(iii)	Upon the exercise of an Option of a PROSENSA Collaboration Program, GSK shall assume all costs and expenses associated with continuing such Program, including all
pre-clinical, clinical development and CMC activities occurring upon and after the exercise of such Option. 

  

	2.5	Initiation of DMD Program 3 and DMD Program 4 

  

	 	(a)	 DMD Program 3 - Within * * * * * after the Effective Date but no later, and at GSK’s sole discretion, GSK will make a
payment, as described in Section 6.2(c) (the “DMD Program 3 Initiation Payment”), in order to secure an exclusive Option to a third DMD Program. PROSENSA will initiate and conduct, at its sole cost, two (2) new DMD exon-skipping
projects (each such project focusing on a separate exon to be skipped whereby the benefiting patient populations have a similar prevalence) upon such payment from GSK and both projects will be considered “DMD Program 3”. Alternatively,
such payment may secure an exclusive Option to an already-existing early stage DMD program(s) already in Development by PROSENSA. PROSENSA will identify * * * * *

  
 26 

	 	
Compounds from each project within Program 3 and progress the Research and Development of each such Compound to a point where it meets the Clinical Candidate Selection Criteria. The JSC will then
select one (1) Compound from each project for progression to a POC Study (each a “Program 3 Primary Compound”). The non-selected Compounds from each such project shall become the Program 3 Secondary Compounds. GSK will have an
exclusive option to obtain an exclusive worldwide license on the terms set forth in this Agreement to all of the DMD Program 3 Compounds from the selected project following the completion, by PROSENSA of all work up to the completion of the POC
Study * * * * * for the Program 3 Primary Compounds. The Program 3 Primary Compound selected by GSK upon exercise of the DMD Program 3 Option will become the Lead Compound for DMD Program 3. Notwithstanding anything to the
contrary contained herein, upon GSK’s exercise of the exclusive Option with respect to a project in the DMD Program 3, PROSENSA shall have no further obligations to GSK to Research or Develop the Program 3 Secondary Compound for the selected
DMD Program 3 project or the Compounds within the non-selected DMD Program 3 project, and PROSENSA shall have the exclusive right, at its sole discretion, to Research, Develop and commercialize any Compounds within the non-selected DMD Program 3
project as PROSENSA Products in the Territory in the Field, alone or with any Third Party or through any Sublicensee, Affiliate or subcontractor. 

  

	 	(b)	 DMD Program 4 - Within * * * * * of the Effective Date but no later, and at GSK’s sole discretion, GSK will make a
payment, as described in Section 6.2(c) (the “DMD Program 4 Initiation Payment”), in order to secure an exclusive Option to a fourth DMD Program. PROSENSA will initiate and conduct, at its sole cost, two (2) new DMD exon-skipping
projects (each such project focusing on a separate exon to be skipped whereby the benefiting patient populations have similar prevalence) upon such payment from GSK and both projects will be considered “DMD Program 4”. Alternatively, such
payment may secure 

  
 27 

	 	
an exclusive Option to an already existing early stage DMD program(s) already in Development by PROSENSA. PROSENSA will identify * * * * * Compounds from each project
within DMD Program 4 and progress each such Compound to a point where it meets the Clinical Candidate Selection Criteria. The JSC will then select one (1) Compound from each project for progression to a POC Study (each a “Program 4 Primary
Compound”). The non-selected Compounds from each such project shall become the Program 4 Secondary Compounds. GSK will have an exclusive Option to obtain an exclusive worldwide license on the terms set forth in this Agreement under
Section 4.2 to all of the DMD Program 4 Compounds from the selected project following the completion, by PROSENSA of all work up to the completion of the Proof of Concept Study * * * * *. Notwithstanding anything to the
contrary contained herein, upon GSK’s exercise of the exclusive Option with respect to a project in the DMD Program 4, PROSENSA shall have no further obligations to GSK to Research or Develop the Program 4 Secondary Compound for the selected
DMD Program 4 project or the Compounds within the non-selected DMD Program 4 project, and PROSENSA shall have the exclusive right, at its sole discretion, to Research, Develop and commercialize any Compounds within the non-selected DMD Program 4
project as PROSENSA Products in the Territory in the Field, alone or with any Third Party or through any Sublicensee, Affiliate or subcontractor. 

  

	 	  	In the two cases above, GSK’s exclusive Option to the DMD Program 3 and the DMD Program 4 will be applied only to the first Program 3 Primary Compound within the
DMD Program 3 and the first Program 4 Primary Compound within the DMD Program 4, respectively, to reach the Option Period Start. 

  

	 	(c)	Reinstated Programs.  

  

	 	(i)	 In the event that, for any PROSENSA Collaboration Program under this Agreement, such Program is terminated by the JSC and PROSENSA subsequently elects
to resume the progression of any 

  
 28 

	 	
new or existing Compound under such terminated Program within * * * * * after the date of such termination, then such activities shall be deemed to be a reinstatement of the applicable PROSENSA
Collaboration Program, and each Party’s terminated rights and obligations with respect to such Program and all Compounds thereunder shall be fully reinstated, and such Option shall be in effect and exercisable upon all the same terms as stated
under this Agreement, and each Party shall have all of its rights and obligations from the termination point forward with respect to the reinstated Program in accordance with the terms of this Agreement. 

 

	 	(ii)	In the event that the GSK Development Program resulting from the Exon 51 Program is terminated by GSK in good faith on the basis of scientific, technical or regulatory
reasons, and PROSENSA subsequently elects to progress any new or existing Compound under the Exon 51 Program, other than PRO051, within * * * * * after the date of such termination, then, at GSK’s discretion, GSK shall have the right, but not
the obligation, upon written notice to PROSENSA, to reinstate the terminated GSK Development Program substituting such Compound for PRO051, and each Party’s terminated rights and obligations with respect to such GSK Development Program
thereunder shall be fully reinstated from the termination point forward (substituting such Compound for PRO051 thereunder) upon all the same terms as stated under this Agreement. 

 

	 	(iii)	 Notwithstanding the foregoing and for clarity, the provisions of this Section 2.5 shall not apply to (i) any Program that is unilaterally
terminated by GSK (other than as provided in paragraph (ii) above) pursuant to Section 12.3, or (ii) any Program terminated by PROSENSA for GSK’s material breach pursuant to Section 12.2 or (iii) any Compound within a
non-selected DMD Program 3 project or non-selected DMD Program 4 project as described in Section 2.5(a) and (b), respectively or (iv) any PROSENSA Collaboration Program for which a Compound under such PROSENSA

  
 29 

	 	
Collaboration Program has met the POC Criteria and GSK has (a) declined the applicable Option under such PROSENSA Collaboration Program or (b) allowed such Option to expire.

  

	2.6	Milestone Criteria 

  

	 	(a)	Clinical Candidate Selection Criteria for DMD Program 3 and DMD Program 4. The JSC shall agree upon the Clinical Candidate Selection Criteria for programs within
the DMD Program 3 and DMD Program 4, within (i) * * * * * of GSK making the payment as per Section 2.5 and 6.2c. Such Clinical Candidate Selection Criteria shall be consistent with the generic criteria attached in
Exhibit A, modified as necessary by mutual agreement of the JSC. 

  

	 	(b)	Six Month Safety and Data Review During PhI/II Extension Study Criteria for the Exon 51 Program and the Exon 44 Program. The Parties have agreed upon the Six
Month Safety and Data Review During PhI/II Extension Study Criteria as set forth on Exhibit B for the Exon 51 Program and Exon 44 Program. 

  

	 	(c)	Proof of Concept Criteria. Prior to the initiation of the first applicable Clinical Trial for a PROSENSA Collaboration Program, the Parties shall through the JSC
agree upon the provisional Proof of Concept Criteria for each PROSENSA Collaboration Program and prior to entering into the relevant Study the Parties shall agree on the final criteria, subject to Section 3.1(d). For the avoidance of doubt, the
Parties acknowledge that the POC Criteria with respect to the Exon 44 Program are established and agreed as set forth on Exhibit C. In addition the general guidelines for non-clinical criteria are set forth in Exhibit C. 

 

	 	(d)	Proof of Concept Study Design. The JSC shall be responsible for Proof of Concept Study Design for each PROSENSA Collaboration Program subject to
Section 3.1(d). 

  

	2.7	Evaluation of Milestone Criteria 

  

	 	(a)	 In the event that a Compound achieves all or substantially all of the Milestone Criteria after PROSENSA has completed the activities required

  
 30 

	 	
to make such an assessment, PROSENSA shall promptly notify GSK in writing of such event and shall provide to the JSC a completed data package containing a set of the analyses, results, raw data,
reports and any related correspondence and information received from or sent to any Regulatory Authority from the PROSENSA Collaboration Program for such Lead Compound (the “Milestone Report”). Unless otherwise agreed to by the
Parties, the JSC will schedule an ad hoc meeting as soon as reasonably possible, but in any event not more than * * * * * after receipt by GSK of such complete Milestone Criteria Report, to review such Milestone Report and to confirm whether or not
such Compound meets all or substantially all of the applicable Milestone Criteria. In the event that the JSC agrees that all or substantially all of the applicable Milestone Criteria have been met, subject to payment of the milestone as outlined in
Section 6.2, PROSENSA shall use its Commercially Reasonable Efforts to continue to progress the PROSENSA Collaboration Program through to completion of the Proof of Concept Study. 

 

	 	(b)	If all or substantially all of the applicable Milestone Criteria have not been met, then PROSENSA shall complete any additional studies as are required by the JSC to
determine if all or substantially all of the applicable Milestone Criteria have been met and if they have, subject to payment of the applicable milestone, progress such Compound through completion of the Proof of Concept Study under the relevant
provisions of Articles 2 and 3. If the Parties disagree as to whether or not the relevant Milestone Criteria can reasonably be achieved for any particular Compound, such dispute will be referred to expert determination in accordance with
Section 13.1(b). 

  

	2.8	Reports  

 PROSENSA shall
provide written progress reports on the status of each PROSENSA Collaboration Program, including without limitation summaries of data associated with PROSENSA’s Research and Development activities and the anticipated timelines for carrying out
such activities. PROSENSA shall provide such written report to JSC members at least * * * * * in advance of the applicable JSC meeting. 

  
 31 

	2.9	Material Transfer 

 To
facilitate the conduct of the Programs, either Party may provide to the other Party certain biological materials or chemical compounds, such as cell-based assays or specific Compounds, owned by or licensed to the supplying Party for use by the other
Party in furtherance of the Research activities, but not Development, under the Development Plans (such materials or compounds provided hereunder are referred to, collectively, as “Materials”). Except as otherwise provided under
this Agreement, all such Materials delivered to the other Party shall remain the sole property of the supplying Party, shall be used only in furtherance of the Programs and expressly in accordance with the applicable Development Plan and solely
under the control of the other Party (or its Affiliates), shall not be used or delivered to or for the benefit of any Third Party without the prior written consent of the supplying Party, and shall not be used in Research or testing involving human
subjects, unless expressly agreed. The Materials supplied under this Section 2.9 are supplied “as is” and must be used with prudence and appropriate caution in any experimental work, since not all of their characteristics may be
known. 
  

	2.10	Regulatory Matters; Compliance 

  

	 	(a)	Compliance. Each Party shall use Commercially Reasonable Efforts to conduct all of the Research and Development activities for which it is responsible as set
forth in section 2.4 and the other relevant provisions under this Agreement in good scientific manner and, depending on the stage of development, in compliance in all material respects with applicable laws, rules and regulations and all other
applicable requirements of cGMP, good laboratory practice and current good clinical practice, and as specifically applicable in accordance with the provisions of this Agreement. 

 

	 	(b)	Data Integrity. 

  

	 	(i)	Each Party acknowledges the importance to the other Party of ensuring that the PROSENSA Collaboration Programs are undertaken in accordance with the following good data
management practices: 

  
 32 

	 	(A)	data are being generated using sound scientific techniques and processes; 

  

	 	(B)	data are being accurately and reasonably contemporaneously recorded in accordance with good scientific practices by Persons conducting Research hereunder;

  

	 	(C)	data are being analyzed appropriately without bias in accordance with good scientific practices; and 

 

	 	(D)	data and results are being stored securely and can be easily retrieved. 

  

	 	(ii)	PROSENSA agrees that it shall use Commercially Reasonable Efforts to carry out the PROSENSA Collaboration Programs and GSK agrees to use Commercially Reasonable Efforts
to carry out the GSK Development Programs so as to collect and record any data generated therefrom in a manner consistent with the above requirements as set forth in subsection (a) above. 

 

	 	(c)	Ownership and Transfer of Regulatory Filings and Regulatory Authorizations. 

 

	 	(i)	The Parties acknowledge that, to the extent existing as of the Effective Date, PROSENSA owns all regulatory filings and Regulatory Approvals (including, orphan drug
designations) with respect to PRO051. As soon as reasonably practical after the Effective Date, PROSENSA will transfer and assign ownership of all such regulatory filings and approvals to GSK (or its designated Affiliate), and send any
correspondence to regulatory authorities, execute any instruments, or take any other steps GSK reasonably deems necessary to effectuate such transfers/assignments, at which time GSK shall own and be fully responsible for all such filings and
approvals, including any resulting Market Exclusivity Rights, at its own expense. 

  
 33 

	 	(ii)	Prior to exercise by GSK of its Option over any PROSENSA Collaboration Program, PROSENSA shall own all regulatory filings and Regulatory Approvals (including orphan
drug designations) for Compounds. Upon GSK exercising its Option with respect to a PROSENSA Collaboration Program, PROSENSA shall provide notice in writing to GSK of all such regulatory filings and approvals as soon as reasonably practicable for the
resulting GSK Development Compounds (including the Secondary Compound), including all relevant INDs, if any, and provide GSK with copies of such INDs and other regulatory filings and approvals and all pre-clinical and clinical data and results
(including pharmacology, toxicology, formulation, and stability studies). Upon exercise of such Option, as soon as reasonably practical thereafter, PROSENSA shall assign and transfer to GSK (or its designated Affiliate), and send any correspondence
to Regulatory Authorities, execute any instruments, or take any other steps GSK reasonably deems necessary to effectuate such transfers/assignments. GSK (or its designated Affiliate) shall thereafter own and be fully responsible for maintaining all
regulatory filings and Regulatory Approvals (including orphan drug designations) and any resulting Market Exclusivity Rights for GSK Development Compounds. 

 

	 	(d)	 Adverse Event Reporting. Beginning on commencement of the first Clinical Trial and during the Term of this Agreement, each Party shall provide
the JSC with a quarterly report summarising all adverse drug reaction experiences related to any Compounds in a PROSENSA Collaboration Program or a GSK Development Program in connection with the Clinical Trial activities of PROSENSA or GSK, as the
case may be, under this Agreement and as required to be reported to the appropriate Regulatory Authorities in the countries in the Territory in which such Compounds are being Developed, in accordance with the appropriate laws and regulations of the
relevant countries and Regulatory Authorities in those countries. Through the JSC, GSK and PROSENSA shall have the right to review from time to time the other Party’s pharmacovigilance policies and procedures. GSK and PROSENSA agree to
cooperate and use good faith efforts to ensure that PROSENSA’s 

  
 34 

	 	
adverse event database is organized in a format that is compatible with GSK’s adverse event databases. The Parties agree that they will enter into a Pharmacovigilance Agreement within * * *
* * after the Effective Date, or any necessary extension of such period as reasonable agreed to by the Parties. 

  

	2.11	PROSENSA Collaboration Program Costs 

 PROSENSA shall be responsible for all internal and external costs and expenses associated with the conduct of the Research and Development activities under each of the PROSENSA Collaboration Programs,
through the earlier of the completion of the Proof of Concept Study or until the exercise of the Option for such PROSENSA Collaboration Program. 
  

	2.12	Subcontracting 

 Subject
to the terms of this Agreement, each Party shall have the right to engage Affiliates or Third Party academic or commercial subcontractors to perform certain of its obligations under this Agreement. * * * * *. Notwithstanding the preceding, any Party
engaging an Affiliate or subcontractor hereunder shall remain principally responsible and obligated for such activities. In addition, each Party engaging a subcontractor with respect to its obligations under a PROSENSA Collaboration Program shall in
all cases (i) retain exclusive Control of any and all intellectual property used with the relevant Party’s permission by such subcontractor and (ii) shall obtain exclusive control of any and all intellectual property created by the
subcontractor in performance of its obligations directly related to such subcontracted activity under the PROSENSA Collaboration Program and directly related to the composition of matter or method of use of a Compound within such PROSENSA
Collaboration Program. The Party engaging a subcontractor under a PROSENSA Collaboration Program shall be solely responsible for all costs associated with obtaining such exclusive Control and rights to such intellectual property. However, it is
understood that, in some cases, it may not be commercially reasonable for such Party to obtain such exclusive Control. To the extent that it 

  
 35 

 
is not possible to obtain such exclusive Control from any such subcontractor under a PROSENSA Collaboration Program, prior to entering into such arrangement with such subcontractor, such Party
shall bring such matter to the JSC for the prior approval of the JSC to enter into such arrangement and for approval by the JSC of the licensing terms and conditions with respect to such arrangement. 

 

	3	MANAGEMENT OF THE COLLABORATION 

  

	3.1	Joint Steering Committee  

Promptly and in any event within * * * * * after the Effective Date, the Parties shall establish a committee (the “Joint Steering
Committee” or “JSC”) as more fully described in this Section 3.1. The JSC shall initially have advisory, oversight and decision-making responsibilities for all Research and Development activities performed under the
Exon 44 Program, DMD Program 3 and DMD Program 4. Upon completion of the Research Term, on a Program-by-Program basis, the role of the JSC will shift from an oversight and decision-making body to a vehicle used to facilitate information exchange
between the Parties regarding the GSK Development Programs, as further described below. Each Party agrees to keep the JSC informed of its progress and activities under the Programs. 

 

	 	(a)	 Membership. The JSC shall be comprised of three (3) representatives (or such other number of representatives as the Parties may agree) from
each of GSK and PROSENSA. Each Party shall provide the other with a list of its initial members of the JSC no later than fifteen (15) Business Days prior to the first scheduled meeting of the JSC, which shall be no later than thirty
(30) Business Days after the Effective Date. Each Party may replace any or all of its representatives on the JSC at any time upon written notice to the other Party in accordance with Section 13.8 of this Agreement. Each representative of a
Party shall have relevant expertise (either individually or collectively) in pharmaceutical drug discovery and/or development. Any member of the JSC may designate a substitute to attend and perform the functions of that member at any meeting of the
JSC. Each Party may, in its reasonable discretion, invite non-member representatives of such Party to attend meetings of the 

  
 36 

	 	
JSC as non-voting participants, subject to the confidentiality obligations of Article 9. The Parties shall designate a chairperson (a “Chairperson”) to oversee the operation of
the JSC and prepare minutes as set forth in Section 3.1(c), each such Chairperson to serve a twelve (12) month term. The right to name the Chairperson shall alternate between the Parties, with PROSENSA designating the first such
Chairperson. 

  

	 	(b)	Meetings. During the Research Term, the JSC shall meet in person or otherwise at least once each Calendar Quarter (with at least one in-person meeting per year),
and more or less frequently as the Parties mutually deem appropriate, on such dates and at such places and times as provided herein or as the Parties shall agree. Upon conclusion of the Research Term, the JSC shall meet, in person or otherwise, at
least once every six (6) months to provide PROSENSA an update regarding GSK’s efforts to Develop and commercialize Compounds and GSK Products in the GSK Development Programs, including without limitation, * * * * *. Meetings of the JSC
that are held in person shall alternate between the offices of the Parties, or such other place as the Parties may agree. The members of the JSC also may convene or be polled or consulted from time to time by means of telecommunications, video
conferences, electronic mail or correspondence, as deemed necessary or appropriate. Each Party will bear all expenses it incurs in regard to participating in all meetings of the JSC, including all travel and living expenses.

  

	 	(c)	 Minutes. Each Party shall nominate an Alliance Director, and the Alliance Directors of the Parties will equally share and be responsible for
preparing and circulating minutes of each meeting of the JSC, setting forth, inter alia, an overview of the discussions at the meeting and a list of any actions, decisions or determinations approved by the JSC and a list of any issues to be
resolved by the Executive Officers pursuant to Section 3.1(d). Such minutes shall be effective only after approval by both Parties. With the sole exception of specific items of the meeting minutes to which the members cannot agree and that are

  
 37 

	 	
escalated to the Executive Officers as provided in Section 3.1(d) below, definitive minutes of all JSC meetings shall be finalized no later than thirty (30) Business Days after the
meeting to which the minutes pertain. If at any time during the preparation and finalization of the JSC minutes, the Parties do not agree on any issue with respect to the minutes, such issue shall be resolved by the escalation process as provided in
Section 3.1(d). The decision resulting from the escalation process shall be recorded by the Alliance Director in amended finalized minutes for such meeting. 

 

	 	(d)	Decisions. 

  

	 	(i)	Except as otherwise provided for herein, the JSC shall have oversight authority and responsibility over matters and decisions relating to Research and Development for
each PROSENSA Collaboration Program up until the conclusion of the Research Term, at which time oversight and decision-making authority regarding the GSK Development Programs that were subject to JSC oversight shall be transferred to GSK. Except as
otherwise provided herein, with respect to a given PROSENSA Collaboration Program or GSK Development Program, all decisions of the JSC shall be made by unanimous agreement of the JSC, with each Party having one (1) vote. Except as otherwise
provided in Section (d)(ii) below, any disagreement in relation to any matter which is governed by the JSC shall be resolved as follows: (i) for any matters arising prior to the exercise of an Option by GSK for a Program, PROSENSA shall have
the final decision-making authority and (ii) for any matters arising after the exercise of an Option by GSK for a Program, GSK shall have the final decision-making authority. The final decision-making authority of a Party shall not be subject
to dispute resolution under Section 13.1 or 13.2. 

  

	 	(ii)	 Notwithstanding the foregoing, GSK shall have final decision-making authority with respect to any Proof of Concept Criteria and the Proof of Concept
Study Design or end points for DMD Program 3 and DMD Program 4. However, the Parties anticipate that the POC Criteria for Programs 3 and 4 will be substantially similar to the POC Criteria established for the Exon 51 Program and the Exon 44

  
 38 

	 	
Program. The Parties agree that GSK may deviate from such established POC Criteria only in the event that: (i) such deviation is required by a Regulatory Authority in the country where such
POC Study will actually be performed or (ii) such deviation is the result of a recommendation or guidance of a Regulatory Authority and will not result in a delay of the progress of a Program of more * * * * *. In the event of any deviation
from the established POC Criteria, any additional cost to PROSENSA resulting from such deviation shall be capped at * * * * * of the cost originally budgeted for the POC Study for such Program, to be adjusted annually for
inflation by * * * * *. If any such additional costs are incurred as a result of such a decision by the JSC, * * * * *. 

 The right of a Party to exercise its final decision-making authority hereunder shall not constitute a waiver by the other Party of any of its rights or remedies otherwise available under this Agreement in
law or equity. 
  

	 	(e)	Responsibilities. The JSC shall perform the following functions and have the following responsibilities and authority with respect only to the PROSENSA
Collaboration Programs, and not the Exon 51 Program, and shall be subject to the final decision-making authority of the respective Parties as set forth in Section 3.1(d), some or all of which may be addressed directly at any given meeting of
the JSC: 

  

	 	(i)	review and comment on the Development Plan for each PROSENSA Collaboration Program and monitor progress of activities under such Development Plan;

  

	 	(ii)	oversee and guide the progress of each PROSENSA Collaboration Program in accordance with the applicable Milestone Criteria; 

 

	 	(iii)	prepare, review, modify, update and approve each Milestone Criteria, Milestone Report and Proof of Concept Study Design; 

  
 39 

	 	(iv)	assess the Proof of Concept Criteria for each PROSENSA Collaboration Program; 

 

	 	(v)	determine that a Compound has satisfied the applicable Milestone Criteria; 

 

	 	(vi)	except as otherwise provided in Section 3.1(h) below, discuss and attempt to resolve any deadlock issues submitted to it by any Subcommittee (as defined in
Section 3.1(g)), in accordance with the procedures established in Section 3.1(d); 

  

	 	(vii)	serve as an information transfer vehicle, from time to time, to facilitate the discussion of Development and commercialization of GSK Products under GSK Development
Programs; 

  

	 	(viii)	periodically review the Development and commercialization of any GSK Product and GSK Development Plan; and 

 

	 	(ix)	such other responsibilities as may be assigned to the JSC pursuant to this Agreement or as may be mutually agreed upon by the Parties from time to time.

 For clarity, the JSC shall not have any authority beyond the specific matters set forth above in this
Section 3.1(e), and in particular shall not have any power to amend or modify the terms or provisions of this Agreement. In addition, GSK (and not PROSENSA or the JSC) shall have the sole right to make decisions with respect to (A) the
exercise of an Option; or (B) subject to GSK’s diligence obligations in Section 5.1(c), the Research, Development, progression, manufacture, and commercialization of any Compounds or Products under a GSK Development Program.

  

	 	(f)	PROSENSA’s Right to Withdraw. PROSENSA will have the right to withdraw from participation on and thereby terminate any of its rights and obligations to
participate in the JSC at any time after the fifth anniversary of the Effective Date upon written notice to GSK. Upon such withdrawal by PROSENSA from participation in the JSC, GSK will have the sole decision-making authority with respect to any
matters that would otherwise have been subject to Sections 3.1(d)(i). 

  
 40 

	 	(g)	Subcommittee(s). From time to time, the JSC may establish subcommittees to oversee particular projects or activities, as it deems necessary or advisable (each, a
“Subcommittee”). Each Subcommittee shall consist of such number of members as the JSC determines is appropriate from time to time. Such members shall be individuals with expertise and responsibilities in the areas of pre-clinical
development, clinical development, patents, process sciences, manufacturing, regulatory affairs, product development and/or product commercialization, as applicable to the stage of development of the project or activity. 

 

	 	(h)	 Joint Patent Subcommittee. Within two (2) months after the Effective Date, the JSC shall establish a Subcommittee (the “Joint
Patent Subcommittee” or “JPS”) to be responsible for the coordination of the Parties’ efforts in accordance with Article 8 of this Agreement, including the review and filing of patent applications and assessments of
inventorship of inventions created during the Research Term under the PROSENSA Collaboration Programs. The JPS shall be comprised of an equal number of representatives from each of GSK and PROSENSA and shall meet on such dates and at such places and
times agreed to by the Parties. All decisions of the JPS on matters for which it has responsibility shall be made by consensus, with each Party having collectively one (1) vote in all decisions. In the event that the JPS is unable to reach a
consensus decision within * * * * * after it has met and attempted to reach such decision, then either Party may, by written notice to the other, have such issue submitted to the chief patent counsel of GSK and of PROSENSA (together, the
“Chief Patent Counsel”), or such other person holding a similar position designated by GSK or PROSENSA (who may be a Third Party) from time to time, for resolution. The Chief Patent Counsel shall meet promptly to discuss the matter
submitted and to determine a resolution. Prior to exercise of an Option for a PROSENSA Collaboration Program, if the Chief Patent Counsel are unable to determine a resolution in a timely manner: (i) with respect to all patent matters relating *
* * * * 

  
 41 

	 	
* * * * *, then the decision of the Chief Patent Counsel of PROSENSA shall be binding upon the Parties without further review, and (ii) with respect to all patent matters
relating PROSENSA Patent Rights and to Joint Patent Rights and related to such Program after exercise by GSK of its Option, then the decision of the Chief Patent Counsel of GSK shall be binding upon the Parties without further review. Each Party
will bear all expenses it incurs in regard to participating in all meetings of the JPS, including all travel and living expenses. 

  

	 	(i)	Joint Development Sub-Committee. Within six (6) months of a Lead Compound achieving the Clinical Candidate Selection Criteria the Parties will establish a
joint development committee comprised of personnel with relevant expertise to oversee the Development of the Lead Compound. 

  

	3.2	Joint Project Team 

Promptly, and in any event within thirty (30) Business Days after the Effective Date, the Parties shall form a joint project team
(“Joint Project Team” or “JPT”) as more fully described in this Section 3.2. The JPT, instead of the JSC, shall have oversight and decision-making responsibility for all Research and Development activities,
Clinical Development, registrations and commercialization of PR0051. 
  

	 	(a)	 Membership. The Joint Project Team will be comprised of representatives from PROSENSA and GSK, the number of which shall be agreed upon by the
Parties. For clarity the JPT is one and the same committee as GSK’s internal Project Team, but shall have representatives from PROSENSA with participation rights as described below, and shall be run by GSK and be operated in the same normal
working manner as GSK would run such committee for an internal project. Each Party shall provide the other with a list of its initial members of the JPT no later than fifteen (15) Business Days prior to the first scheduled meeting of the JPT,
which shall be no later than thirty (30) Business Days after the Effective Date. Each Party may replace any 

  
 42 

	 	
or all of its representatives on the JPT at any time upon written notice to the other Party in accordance with Section 13.8 of this Agreement. Any member of the JPT may designate a
substitute to attend and perform the functions of that member at any meeting of the JPT. Each Party may, in its reasonable discretion, invite non-member representatives of such Party to attend meetings of the JPT as non-voting participants, subject
to the confidentiality obligations of Article 9. The JPT will be led by a leader appointed by GSK, and GSK will have the sole and final decision-making authority over all matters and decisions that are subject to JPT oversight and review. The
structure and operation of the JPT and any related sub-teams will be reviewed by GSK and PROSENSA at as often as necessary based upon the stage of development, but in no event less than quarterly for the first year of the Agreement, and thereafter
at intervals determined by the leader of the JPT. 

  

	 	(b)	Meetings. During the Research Term and continuing until the First Commercial Sale of a GSK Product resulting from the Exon 51 Program, the JPT shall meet in
person or otherwise at least once each Calendar Quarter (with at least one in-person meeting per year), and more or less frequently as the Parties mutually deem appropriate, on such dates and at such places and times as provided herein or as the
Parties shall agree. The members of the JPT also may convene or be polled or consulted from time to time by means of telecommunications, video conferences, electronic mail or correspondence, as deemed necessary or appropriate. Each Party will bear
all expenses it incurs in regard to participating in all meetings of the JPT, including all travel and living expenses. 

  

	 	(c)	Minutes. GSK’s representative (who will also participate in the JPT meetings) will be responsible for preparing and circulating minutes of each meeting of
the JPT, setting forth, inter alia, an overview of the discussions at the meeting and a list of any actions, decisions or determinations approved by the JPT. 

 

	 	(d)	 Decisions. Except as provided for herein, GSK shall have the final decision-making authority for all aspects of the Research, Development

  
 43 

	 	
and commercialization of all Compounds and Products under the Exon 51 Program, including, PRO051, subject only to the limited rights of PROSENSA to participate in certain limited activities, as
expressly set forth in Section 2.4(i) and subject to PROSENSA’s rights as expressly stated under Section 5.2, subject to GSK’s sole decision-making authority. Notwithstanding anything to the contrary herein, in the event a
decision is made under this Section 3.2(d) with respect to the conduct of clinical studies (other than as required pursuant to a specific regulatory requirement) that materially impacts the timing to market or Market Exclusivity Rights of
PRO051, then PROSENSA shall have the right to refer such dispute to the respective Executive Officers, and such Executive Officers shall attempt in good faith to resolve such dispute within * * * * * of referring such dispute to the Executive
Officers (or as otherwise extended by agreement of the Executive Officers), provided, however, that neither Party shall have final decision-making authority with respect to such dispute, and such dispute may only be settled by agreement of the
respective Executive Officers, and shall not be subject to further review under Section 13.1 or 13.2 or otherwise under this Agreement 

  

	 	(e)	Responsibilities. The JPT shall perform the following functions and have the following responsibilities and authority with respect to the Exon 51 Program:

  

	 	(i)	review and comment on the Development Plan for the Exon 51 Program and monitor progress of activities under such Development Plan; 

 

	 	(ii)	oversee and guide the progress of the Exon 51 Program in accordance with the applicable Development Plan; 

 

	 	(iii)	discuss and attempt to resolve any deadlock issues submitted to it by any Sub-team (as defined in Section 3.2(f)), in accordance with the procedures established in
Section 3.2(d); 

  

	 	(iv)	serve as an information transfer vehicle, from time to time, to facilitate the discussion of Development and commercialization of GSK Products under GSK Development
Programs; 

  
 44 

	 	(v)	periodically review the Development and commercialization of PR0051; and 

  

	 	(vi)	such other responsibilities as may be assigned to the JPT pursuant to this Agreement or as may be mutually agreed upon by the Parties from time to time.

  

	 	(f)	Sub-teams. Sub-teams accountable to the Joint Project Team may be formed, if mutually desired by the Parties and appropriate, and such Sub-teams may include, for
example, a joint patent subcommittee, which may be the same committee as the JPS as described in Section 3.1(h), as well as teams responsible for Clinical Development strategy and operations, commercial strategy and new product supply.
Membership on these Sub-teams will be determined by the leader of the JPT, in consultation with PROSENSA, and may, according to relevant experience and capabilities, include representatives from both GSK and PROSENSA. 

 

	3.3	Global Brand Team 

 At
least * * * * * prior to the anticipated filing for Regulatory Approval, or except as otherwise mutually agreed by the Parties, , a Global Brand Team (“GBT”) will be established. * * * * *. 

 

	3.4	Alliance Directors  

Promptly after the Effective Date, each Party shall appoint an individual (who may not be an existing member of the JSC) to act as
alliance manager for such Party (each, an “Alliance Director”). Each Alliance Director shall thereafter be 

  
 45 

 
permitted to attend meetings of the JSC as a non-voting observer, subject to the confidentiality provisions of Article 9. The Alliance Directors shall be the primary point of contact for the
Parties regarding the activities contemplated by this Agreement and shall facilitate all such activities hereunder including, but not limited to, the exchange of information and Know-How described in Section 2.8. The Alliance Directors shall
also be responsible for assisting the JSC and JPT in performing its oversight responsibilities. The name and contact information for each Party’s Alliance Director, as well as any replacement(s) chosen by PROSENSA or GSK, in their sole
discretion, from time to time, shall be promptly provided to the other Party in accordance with Section 13.8 of this Agreement. 
  

	3.5	PROSENSA Access to SciNovo’s Preclinical Services. As a benefit of its relationship with GSK, GSK is offering the opportunity for PROSENSA to have access to
GSK’s expertise in preclinical services for potential assistance from GSK to support the completion of PROSENSA’s responsibility in activities prior to GSK’s Option exercise. Preclinical services might include activities conducted by
GSK in the areas of chemical and pharmaceutical development, safety assessment, and drug metabolism and pharmacokinetics. GSK’s preclinical externalization department, SciNovo, will be the conduit to facilitate these discussions between GSK and
PROSENSA. GSK may offer consultancy services, procurement expertise and services, study conduct, analytical services, manufacturing, access to GSK technologies and equipment, and/or monitoring services. This cooperation may include exploration of
GSK’s preferred supply arrangements or the use of GSK’s reverse auction technology or other procurement expertise. Selection of services options is the right and responsibility of PROSENSA and final decision making for any of these
preclinical Research activities would remain the responsibility of PROSENSA, subject to the applicable terms of this Agreement. 

  

	4	GRANT OF RIGHTS 

  

	4.1	License Grant to GSK for the Exon 51 Program 

 Subject to the terms and conditions of this Agreement, PROSENSA hereby grants to GSK, and GSK hereby accepts and shall have with effect from the Effective Date, an exclusive (even as to PROSENSA and its
Affiliates, save only as expressly stated in Sections 2.4(a)(i), 4.6 and Section 5.2, worldwide sublicenseable (subject to Section 4.11) license in the Territory under all of PROSENSA’s and its

  
 46 

 
Affiliates’ rights, title and interest in and to the Exclusively Licensed IP pertaining to the Exon 51 Program and/or to any Compound(s) therein to make, have made, use, sell, offer for sale
and import Compounds under the Exon 51 Program as and into GSK Products in the Field. For clarity, the exclusive license granted in this section, in addition to granting to GSK the exclusive commercial rights described above, shall also include the
exclusive, sublicenseable (subject to Section 4.11) worldwide right and license in the Territory and in the Field (even as to PROSENSA and its Affiliates, save only as expressly stated in Sections 2.4(a)(1), 4.6 and Section 5.2) to conduct
Research and Development of Compounds in or resulting from the Exon 51 Program. 
  

	4.2	GSK Options, Exercise of Options and Resulting Licenses 

  

	 	(a)	Grant of Option Rights. Subject to the terms and conditions of this Agreement, PROSENSA hereby grants to GSK (i) with respect to the Exon 44 Program, and
(ii) with respect to the DMD Program 3 will grant to GSK upon payment by GSK of the DMD Program 3 Initiation Payment pursuant to and subject to Section 2.5(a) and 6.2(c) or 6.2(d); and (iii) with respect to DMD Program 4 will grant to
GSK upon payment by GSK of the DMD Program 4 Initiation Payment pursuant to and subject to Section 2.5(b) and 6.2(c) or 6.2(d); the exclusive option during the Research Term, which shall be exercisable on a PROSENSA Collaboration
Program-by-PROSENSA Collaboration Program basis at GSK’s sole discretion, to obtain the exclusive license set forth in Section 4.2(c) (each, an “Option”), subject to the terms and conditions described in Sections
4.2(b)—4.2(e) below. GSK shall be limited to exercising one Option per PROSENSA Collaboration Program, and on exercise of an Option and payment of the applicable Option Exercise Fee set out in Section 6.2, GSK shall have exclusive rights
to such PROSENSA Collaboration Program consisting of all Compounds under a given PROSENSA Collaboration Program, excluding the non-selected project Compounds under such Programs. 

 

	 	(b)	Option Period. The Option may be exercised on a PROSENSA Collaboration Program-by-PROSENSA Collaboration Program basis at any time during the Research Term
starting on the Option Period Start (defined in Section 4.2(d) below) and ending when the Review Period (defined in Section 4.2(d) below) expires. 

  
 47 

	 	(c)	Upon Exercise of Option - Grant of License to GSK. Subject to the terms and conditions of this Agreement, upon GSK’s exercise of the relevant Option
with respect to a PROSENSA Collaboration Program in accordance with Section 4.2(d) or by operation of Section 12.5 and PROSENSA’s receipt of the applicable Option Exercise Fee, PROSENSA and its Affiliates shall be hereby deemed to
have granted and hereby grant to GSK, conditional upon such event, an exclusive, worldwide, sublicenseable (subject to Section 4.11) license (which rights shall be exclusive even as to PROSENSA and its Affiliates, save only as expressly stated
in Sections 2.4(a)(ii), 4.6 and Section 5.2, in the Territory under all of PROSENSA’s and its Affiliates’ rights, title and interest in and to the Exclusively Licensed IP pertaining to the relevant PROSENSA Collaboration Program
and/or to Compound(s) therein to make, have made, use, sell, offer for sale and import Compounds under the PROSENSA Collaboration Program as and into Products in the Field. For clarity, the exclusive license granted in this section, in addition to
granting to GSK the exclusive commercial rights described above, shall also include the exclusive, sublicenseable (subject to Section 4.11) worldwide right and license in the Territory and in the Field (even as to PROSENSA and its Affiliates,
save only as expressly stated in Sections 2.4(a)(ii), 4.6 and Section 5.2) to conduct Research and Development of Compounds in or resulting from the PROSENSA Collaboration Program. 

 

	 	(d)	Exercise of Option. 

  

	 	(i)	 The “Option Period Start” with respect to a PROSENSA Collaboration Program will commence upon the receipt by GSK of the Milestone
Report for the Proof of Concept Study or as otherwise agreed or upon GSK’s right to exercise its Option early arising in accordance with Section 4.2(d)(ii) or 4.3(i) below or Section 12.5(c) below. PROSENSA will, in order to enable
GSK to determine whether or not to exercise an Option, provide access to the PROSENSA data room containing the set of material or relevant clinical and preclinical information related to the applicable PROSENSA Collaboration Program. GSK shall
decide whether or not 

  
 48 

	 	
to exercise the Option and may exercise the Option with respect to a PROSENSA Collaboration Program by written notice to PROSENSA at any time within * * * * * after the Option Period Start (the
“Review Period”), unless extended by the mutual written agreement of the Parties. Upon GSK’s exercise of an Option and receipt by PROSENSA of the applicable Option Exercise Fee set forth in Section 6.2, the PROSENSA
Collaboration Program will become a GSK Development Program. Subject to Section 5.3(b), any Option exercise shall be irrevocable. 

  

	 	(ii)	Early Exercise of Option. GSK may at any time during the Research Term exercise early any unexercised Option on a PROSENSA Collaboration
Program-by-PROSENSA Collaboration Program basis by providing written notice to PROSENSA and paying the Option Exercise Fee and all other milestones payments and royalty payments as and when they become due to PROSENSA in accordance with Article 6.
Following such early exercise of an Option, GSK shall be responsible for all costs of the Program that is the subject of such Option. PROSENSA’s involvement in such Program after the exercise of the Option shall be as set forth in
Section 2.4(a)(ii). 

  

	4.3	Change of Control of PROSENSA. In the event that a Change of Control Event occurs in relation to PROSENSA; 

 

	 	(i)	if such Change of Control Event occurs prior to the exercise of the Option for the Exon 44 Program by GSK, GSK shall have the right to exercise such Option immediately
at its sole discretion except that the Option Payment set forth in Section 6.2(b) shall be paid in two (2) equal installments, with the first installment paid upon exercise of the Option, and the remaining installment paid upon completion
of the next milestone point set forth in Section 6.2(b), and GSK shall have the right to terminate the Agreement in the event of a Change of Control Default. 

 

	 	(ii)	 If the Change of Control Event occurs in relation to PROSENSA following exercise of the Option for the Exon 44 Program and prior

  
 49 

	 	
to the exercise of the Option for the DMD Program 3 or DMD Program 4 then within thirty (30) days after the Change of Control Event, and every thirty (30) days thereafter for the first
two (2) quarters, the Parties and the acquiror shall meet to discuss, in good faith and in as much detail and specifics as is practicable at the time, the consequences of such Change of Control Event under this Agreement. If at any time in the
six (6) months following the Change of Control Event, GSK has a reasonable, good faith basis to believe, based on the plans, documents, actions or inactions of PROSENSA and/or its acquiror that PROSENSA and/or its acquiror has not or will not,
with respect to any Program, employ diligent efforts that are at least equivalent to the diligent efforts that were employed by PROSENSA for the Program prior to such Change of Control Event (but excluding any period of delay or disruption due to
such Change of Control Event being pending), then GSK shall provide written notice to PROSENSA, such notice to allege the specific basis for GSK’s view that the diligent efforts are not being or will not be applied to the Program. PROSENSA
and/or its acquiror shall notify GSK whether or not it plans to cure such deficiency, and if it so elects to cure, shall produce a plan within ninety (90) Calendar Days of GSK’s notice to cure any such deficiencies in efforts or resources
so alleged by GSK. In the event that PROSENSA notifies GSK that it does not intend to cure such deficiencies or GSK reasonably believes that such deficiency has not been corrected or cured within a one-hundred and eighty (180) Calendar Day
period following GSK’s notice (the “Change of Control Default”), GSK shall have the right to exercise its Options to any and all PROSENSA Collaboration Programs, at GSK’s sole discretion, by providing written notice to PROSENSA
within thirty (30) Calendar Days after such cure period has expired or such notice from PROSENSA or its acquiror that it does not intend to cure such deficiencies. In the event of a dispute between the Parties as to whether or not any such
deficiency has been cured or as to whether or not any such deficiency exists at all, the Parties shall refer the matter to arbitration in accordance with Section 13.2 below. 

  
 50 

	 	(iii)	Financial Consequences for Change of Control Default. Except with respect to the Exon 44 Program, upon the exercise by GSK of its Option to a
PROSENSA Collaboration Program, pursuant to Section 4.3(i) and due to a Change of Control Default, the Option Exercise Fee (which shall be payable immediately on exercise of the Option) and all the applicable milestone payments and royalty
payments as they become due under Article 6 shall all be reduced as follows on a Program-by-Program basis for each PROSENSA Collaboration Program with respect to which GSK exercises its Option as follows: 

 

	 	1)	if Option exercise occurs for a PROSENSA Collaboration Program with a Lead Compound that has not yet satisfied the Clinical Candidate Selection Criteria, then the
Option Exercise Fee, future milestone payments, and royalty payments payable under Section 6 shall all be reduced * * * * * 

  

	 	2)	if Option exercise occurs for a PROSENSA Collaboration Program with a Lead Compound that has satisfied the Clinical Candidate Selection Criteria but prior to initiation
of the Proof of Concept Study then the Option Exercise Fee, future milestone payments, and the royalty payments payable under Section 6 shall all be reduced * * * * * 

 

	 	3)	if Option exercise occurs for a PROSENSA Collaboration Program after the initiation of a Proof of Concept Study for such Program, but before completion of the Proof of
Concept Study then the Option Exercise Fee shall be reduced * * * * * but all other milestone payments and royalty payments shall be payable under Section 6 in full as though GSK had exercised its Option after the Proof of Concept Study.

  
 51 

	 	(iv)	GSK’s Right to Terminate Certain Development and Commercial Participation Rights of PROSENSA after Change of Control Event. In the event of a Change of
Control Event of PROSENSA in which PROSENSA is acquired by a Triggering Entity, GSK shall have the right, exercisable within one (1) year of the Change of Control Event, at its sole discretion, to immediately terminate any or all of the
following rights of PROSENSA and/or its successor with respect to any or all Programs, regardless of whether such rights are pending or are already being exercised by PROSENSA and/or its successor as of the date GSK elects to terminate them:
(1) PROSENSA’s rights under Section 2.4(a)(i) with respect to the Exon 51 Program to conduct limited non-clinical Research activities and to conduct limited Clinical Development Activities, (2) PROSENSA’s rights after Option
exercise with respect to any PROSENSA Collaboration Program to conduct limited Clinical Development activities under Section 2.4(a)(ii), and (3) PROSENSA’s rights under 5.2(b), including PROSENSA’s rights to participate in the
JPT, GBT and EU Commercial Team. 

  

	 	(v)	In the event of any Change of Control Event of PROSENSA except as expressly set forth in this Section 4.3, the rights and obligations under this Agreement of each
Party, including any successor to PROSENSA, shall remain unchanged and in full force and effect and shall bind PROSENSA and its successor, as the case may be. 

 

	4.4	 Change of Control of GSK. If a Change of Control Event occurs in relation to GSK following the exercise of an Option for any
Program, then within thirty (30) days after the Change of Control Event, and every thirty (30) days thereafter for the first two (2) quarters, the Parties and the acquiror shall meet to discuss, in good faith and in as much detail and
specifics as is practicable at the time, the consequences of such Change of Control Event under this Agreement. If at any time in the six (6) months following the Change of Control Event, PROSENSA has a reasonable, good faith basis to believe,
based on the plans, documents, actions or inactions of GSK and/or its acquiror that GSK and/or its acquiror has not or 

  
 52 

	 	
will not, with respect to any Program, employ Commercially Reasonable Efforts that are at least equivalent to the Commercially Reasonable Efforts that were employed by GSK for the GSK Development
Program prior to such Change of Control Event (but excluding any period of delay or disruption due to such Change of Control Event being pending), then PROSENSA shall provide written notice to GSK, such notice to allege the specific basis for
PROSENSA’s view that the diligent efforts are not being or will not be applied to the Program. GSK and/or its acquiror shall notify PROSENSA whether or not it plans to cure such deficiency, and if it so elects to cure, shall produce a plan
within ninety (90) Calendar Days of PROSENSA’s notice to cure any such deficiencies in efforts or resources so alleged by PROSENSA. In the event that GSK notifies PROSENSA that it does not intend to cure such deficiencies or PROSENSA
reasonably believes that such deficiency has not been corrected or cured within a one-hundred and eighty (180) Calendar Day period following PROSENSA’s notice, PROSENSA shall have the right to terminate any and all GSK Development Programs
that are deficient, at PROSENSA’s sole discretion, by providing written notice to GSK within thirty (30) Calendar Days after such cure period has expired or such notice from GSK or its acquiror that it does not intend to cure such
deficiencies. In the event of a dispute between the Parties as to whether or not any such deficiency has been cured or as to whether or not any such deficiency exists at all, the Parties shall refer the matter to arbitration in accordance with
Section 13.2 below. 

  

	4.5	Expiration or Termination of Option. If GSK does not exercise the Option with respect to a particular PROSENSA Collaboration Program within the applicable
Option Review Period described above or GSK elects not to exercise the Option, then, the Option shall terminate with respect to such PROSENSA Collaboration Program, which shall become a PROSENSA Development Program, and PROSENSA will thereafter have
all rights, itself or with or through an Affiliate or Third Party, (a) to Develop and commercialize all Compounds within the PROSENSA Collaboration Program and (b) to use any data, regulatory filings and know-how generated or used in the
course of the PROSENSA Collaboration Program as further set forth in Section 5.3. 

  

	4.6	 PROSENSA Retained Rights. Notwithstanding anything to the contrary, PROSENSA retains the right to practice under the Exclusively Licensed IP
pertaining to PRO051 or PRO044 for use solely as reference compounds and for 

  
 53 

	 	
double exon skipping and multi-exon skipping for PROSENSA’s internal research and non-primate preclinical development purposes, both inside and outside the scope of the Agreement, but not
for use with any Third Party (academic or commercial) without GSK’s prior written consent, except in the case of a commercial fee-for-service contract research service provider, and further retains all rights as necessary under any of
PROSENSA’s Third Party agreements existing as of the Effective Date, on the terms in effect as of the Effective Date. 

  

	4.7	Grant-back License to PROSENSA. GSK hereby grants to PROSENSA and PROSENSA hereby accepts, a worldwide, non-exclusive, non-transferable and non-sublicensable
(except in connection with fee-for-service contract manufacturing organizations) fully-paid, royalty-free license to practice the GSK IP relating to CMC processes to manufacture AON-based DMD products owned by PROSENSA outside the scope of the
Agreement (which would exclude PRO051, PRO044, DMD Program 3 and DMD Program 4 from such rights). 

  

	4.8	 HSR and Equivalent Foreign Laws. If GSK reasonably determines in good faith prior to the expiration of the Review Period
for exercise of an Option for a Particular PROSENSA Collaboration Program that the exercise of such an Option is required to be filed with the Federal Trade Commission (the “FTC”) under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976 (15 U.S.C. §18a) (“HSR”) or with equivalent foreign governmental authorities under any similar foreign law, GSK shall provide written notice of exercise of the Option to PROSENSA prior to the end of the Review
Period, which notice shall include GSK’s binding commitment to complete the exercise of the Option, subject only to HSR or other governmental clearance by the FTC or other governmental authority, and the Review Period automatically shall be
extended for ninety (90) Calendar Days (the “Review Period Extension”). If the exercise of the Option does not comply with the requirements of Section 4.2 and this Section 4.8, including, for example, because it
includes other conditions to the completion of the exercise of the Option other than the grant of HSR or other governmental clearance, then the Parties shall negotiate in good faith to determine an appropriate way to proceed. If HSR or other
governmental clearance is not granted within the Review Period Extension, or if GSK receives a “Second Request” from the FTC or similar request for additional information from a governmental authority in connection with such filing, the
Review Period Extension shall be extended for an 

  
 54 

	 	
additional period of time as reasonably needed (which additional period is not expected to exceed an additional ninety (90) Calendar Days unless reasonably required to obtain clearance) to
permit GSK to obtain FTC or other governmental clearance or to respond to the Second Request or provide additional information to the governmental authority. If GSK elects not to respond to the Second Request or to withdraw its request for HSR or
other governmental clearance or HSR, the Option shall terminate, and PROSENSA shall have the same rights as are set forth in Section 4.2(d) in respect of the Compounds resulting from the applicable PROSENSA Collaboration Program. If HSR or
other governmental clearance has not been granted by the end of the extended Review Period Extension, PROSENSA and GSK shall promptly meet to discuss in good faith whether an additional extension of the Review Period Extension is reasonable under
the circumstances, and to discuss and consider in good faith, where appropriate, the renegotiation of their financial and other obligations under the Agreement with respect to the affected Program, with the objective of placing each Party, to the
maximum extent possible, in the same economic position that each Party would have occupied if the Program in question had not been included in the Agreement from the beginning as of the Effective Date. Notwithstanding the foregoing, nothing in this
paragraph or the Agreement shall require either Party to divest any assets in such Party’s ownership or Control as of the Effective Date. GSK shall be solely responsible for all reasonable costs and expenses of either Party in connection with
the grant of any exclusive license to GSK hereunder (including all governmental filing or other fees, and any other costs and expenses) arising from pursuing or obtaining any HSR approval. 

 

	4.9	 Tolling of Payment Obligations. If the exercise by GSK of any Option or the grant to GSK of any exclusive license under Article 4
of this Agreement requires or required prior to the same the making of filings under HSR, or under any similar premerger notification provision in the European Union or any other jurisdiction, then all rights and obligations related to the exercise
of such Option or to the grant of such exclusive license (including the payment of any Option Exercise Fee or the payment of any other applicable payment or milestone) shall be tolled until the applicable waiting period has expired or been
terminated or until approval or clearance from the reviewing authority has been received, and each Party agrees to cooperate at the request of the Party which decides in its sole discretion to respond to any such request for information to expedite
review 

  
 55 

	 	
of such transaction. In the event that HSR clearance is not reasonably achievable within one hundred and eighty (180) Calendar Days from notification, the Parties shall discuss in good faith
potential alternatives, including termination of the relevant Program or the Agreement, as may be mutually agreed between the Parties in good faith, and, where appropriate, to discuss and consider in good faith the renegotiation of their financial
and other obligations under the Agreement with respect to the affected Program, with the objective of placing each Party, to the maximum extent possible, in the same economic position that each Party would have occupied if the Program in question
had not been included in the Agreement from the beginning as of the Effective Date. 

  

	4.10	 No Grant of Rights to Third Parties. Until such time as the Review Period (as may be extended), for an Option granted to GSK pursuant to
Section 4.2 with respect to a given PROSENSA Collaboration Program has expired or terminated (including, for example, because the JSC agrees that a PROSENSA Collaboration Program be terminated), PROSENSA and its Affiliates shall not grant to
any Third Party rights in or to any Exclusively Licensed IP that are inconsistent with or that would interfere with the grant of the licenses that may result from the exercise of such Option by GSK hereunder. For the avoidance of doubt, the Parties
understand and agree that for so long as an Option is in effect, such Option shall be exclusive as to the Compounds that are the subject of the relevant PROSENSA Collaboration Program, and PROSENSA and its Affiliates shall have no right to offer or
negotiate with any Third Party with respect to the grant to such Third Party of any right or license, or with respect to any settlement, consent judgment or other disposition of any action or proceeding under Article 8, or with respect to any other
encumbrance of any kind, other than with respect to venture debt financing entered into in the ordinary course of business which does not create liens specific to the PROSENSA IP or the Joint IP and with the prior written consent of GSK (not to be
unreasonably withheld or delayed), in or to any of such Compounds or any Exclusively Licensed IP that would interfere with the grant of the licenses resulting from the exercise of such Option to GSK hereunder, provided, however, that PROSENSA may,
without GSK’s consent, enter into a royalty-interest, milestone-interest, revenue-interest, or similar type transaction with a Third Party which does not include liens or encumbrances specific to the PROSENSA IP, Joint IP, Compounds, Products
or any Exclusively Licensed IP and does not alter the rights or obligations of GSK under this 

  
 56 

	 	
Agreement or pursuant to any license as contemplated under Article 4 to be granted hereunder. The grant of the Options by PROSENSA hereunder is irrevocable except as expressly provided under
Article 12. 

  

	4.11	Sublicensing. In the event GSK intends to grant a sublicense to a Third Party under the licences granted in this Article 4, GSK shall provide written
notice of such proposed sublicense (including the identity of the Third Party Sublicensee), to PROSENSA, which shall have the right to review and approve such Third Party Sublicensee, such approval not to be unreasonably withheld or delayed. If
approved by PROSENSA, GSK shall ensure that such sublicenses are granted on terms which are consistent with this Agreement and GSK shall remain liable for the performance of the obligations under this Agreement of its Sublicensees in connection with
the grant of such sub-licensed rights. GSK shall not enter into any such sublicensing agreements with actual or potential commercial Third Party competitors of PROSENSA with respect to DMD exon skipping. 

 

	4.12	Technology Transfer after Option Exercise 

 As soon as reasonably practicable after GSK exercises its Option for a PROSENSA Collaboration Program pursuant to Section 4.2, PROSENSA shall deliver to GSK, at no cost to GSK, all Know-How and
material in its possession and Control relating to the Compounds in such PROSENSA Collaboration Program, including those documents and materials set out in Exhibit G, and any other such information as may be in PROSENSA’s Control and in
the possession of any subcontractors (including Third Party manufacturers) appointed by PROSENSA under Section 2.12, in each case in a format to be agreed between the Parties but which is in an electronically editable format suitable for eCTD
submission. PROSENSA shall provide such technology transfer services as may be reasonably necessary to transfer the Compound manufacturing processes to GSK’s or GSK’s Third Party manufacturer’s site. PROSENSA shall use Commercially
Reasonable Efforts with respect to those activities for which it is responsible to ensure orderly transition and uninterrupted Development of the GSK Development Program. 

 

	4.13	Third Party Licenses 

  

	 	(a)	 During the Term, PROSENSA shall be responsible for all costs and payments (including without limitation upfront fees, annual fees,

  
 57 

	 	
milestone payments and royalties) associated with all licences of Third Party intellectual property rights (i) required for the exploitation of PROSENSA’s proprietary platform
technology or any other technology used by PROSENSA in conducting a PROSENSA Collaboration Program or PROSENSA Development Program, (ii) obtained by PROSENSA prior to the Effective Date, or (iii) to the extent related to the composition of
matter of a Compound in Clinical Development under a Program or the method of use of a Compound in Clinical Development under a Program. 

  

	 	(b)	PROSENSA and GSK shall be jointly and equally responsible for * * * * * associated with any Third Party intellectual property license necessary for conducting or
practicing the first generation commercial scale manufacturing process for a GSK Product (other than any manufacturing rights the costs for which are absorbed in PROSENSA’s cost of API as of the Effective Date) in a GSK Development Program
(excluding the costs and payments for any license described in Section 4.13), after GSK exercises the Option with respect to such GSK Development Program, and GSK shall be entitled to * * * * * In the event that GSK would be entitled to offset
amounts under this section against royalties owed to PROSENSA, but such offset would result in a reduction below the * * * * * described above, GSK shall be entitled to carry over such offset right into subsequent calendar quarters and offset
royalty payments owed to PROSENSA until such amounts are fully satisfied. 

  

	5	POST-EXERCISE and POST-LICENSE ACTIVITIES 

  

	5.1	GSK Development and Commercialization 

  

	 	(a)	 Subject to PROSENSA’s rights under Sections 2.4(a)(i) and 2.4(a)(ii) and Section 5.2, following the exercise by GSK of an Option with respect
to a PROSENSA Collaboration Program and with respect to the Exon 51 

  
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Program pursuant to Section 4.1, GSK, either itself and/or by and through its Affiliates, Sublicensees or contractors, shall be responsible for all Research, Development, regulatory,
manufacturing, marketing, advertising, promotional, launch and sales and other commercial activities in connection with Compounds and Products resulting from such Programs. 

 

	 	(b)	Except as expressly stated in Section 3.2(d), GSK shall have sole and final decision-making authority with respect to the Research, Development, progression,
regulatory activities, manufacturing, marketing, sales and other commercialization activities for any Compounds or Products within a GSK Development Program, without submitting any such matter for review or decision to the JSC or Executive Officers.

  

	 	(c)	GSK Diligence: Following GSK’s exercise of an Option with respect to a PROSENSA Collaboration Program, and as of the Effective Date for the Exon 51 Program, as a
condition for GSK maintaining the licenses granted to GSK under Article 4 with respect to a GSK Development Program, GSK shall use its Commercially Reasonable Efforts to Develop and commercialize * * * * * from such GSK Development Program as a GSK
Product in the * * * * *. In the event that PROSENSA reasonably believes that GSK has failed to comply with the obligations of this Section 5.1(c) in any Calendar year with respect to a GSK Development Program or GSK Product, PROSENSA shall
have the right to terminate this Agreement by operation of the applicable provisions of Article 12 with respect to such GSK Development Program and/or GSK Product. 

 

	 	(d)	 Other than with respect to the Exon 51 Program, GSK shall submit to the JSC a detailed summary report on progress made by it since the date of the last
report with regard to each GSK Development Compound at least once every * * * * * during Development and commercialization of such Compound (“the GSK Development Plan”). Such GSK Development Plan shall
describe, an assessment of * * * * * 

  
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* * * * *. The GSK Development Plan shall also include an estimated * * * * *. The Parties shall meet at least once every six (6) months to discuss the GSK Development Plan
and progress being made by GSK in relation thereto. Within * * * * * of Regulatory Approval being obtained in relation to a GSK Development Compound GSK shall supply to PROSENSA a summary of GSK’s plans for commercialising the GSK Development
Compound and shall keep PROSENSA updated in writing once every * * * * * following the date of Regulatory Approval with regard to progress made in respect of such plans. 

 

	 	(e)	GSK will endeavour to include PROSENSA brand visibility in all commercial activities, working within the appropriate regulatory and legal frameworks applicable in the
Territory. 

  

	5.2	Post-Option Exercise and Exon 51 Program Limited Commercial Rights of PROSENSA 

 

	 	(a)	 PROSENSA shall have the option, exercisable at its sole discretion, to elect to maintain and have certain limited commercial rights solely as expressly
set forth in this Section 5.2(a) and as defined and further described Exhibit F with respect only to Compounds and Products resulting from the DMD Program 3 and the DMD Program 4, such rights shall apply only in the Netherlands, Belgium,
Sweden, Denmark, Norway and Finland (collectively, the EU Commercial Territory “ECT”), such option to be referred to as PROSENSA’s “ECT Commercial Rights Option”. Such option right is exercisable only after GSK’s Option
to exclusively license DMD Program 3 and/or DMD Program 4 is exercised and only for the relevant Program(s) of those two Programs for which GSK has exercised its Option. If PROSENSA exercises its ECT Commercial Rights Option, then PROSENSA will be
responsible, at its sole cost and 

  
 60 

	 	
expense for all of internal and external costs and expenses, for commercial activities in the ECT relating to Compounds and Products under the DMD Program 3 and/or DMD Program 4, as applicable,
and PROSENSA will have the right to conduct sales and marketing activities in the ECT and to book sales in the ECT. PROSENSA’s commercial activities pursuant to the exercise of its ECT Commercial Rights Option shall at all times be conducted
pursuant to and in accordance with the guidelines, parameters and specific details that are set forth in Exhibit F and a sales and marketing strategy and standards to be set by the EU Commercial Team described in (b) below, and will include the
use of GSK marketing materials and other specifics as is further provided for in Exhibit F. If PROSENSA exercises its ECT Commercial Rights Option, the milestone payments for DMD Program 3 and/or DMD Program 4, as applicable, will be adjusted
pursuant to Section 6.2 (d). Unless otherwise directed in writing by GSK, PROSENSA shall purchase its commercial supplies from GSK for the ECT for Products if PROSENSA exercises its ECT Commercial Rights Option at the same transfer price that
GSK charges to GSK’s own LoCs, but in no event shall the transfer price charged to PROSENSA exceed GSK fully allocated manufacturing cost for the Product. 

 

	 	(b)	PROSENSA’s EU Commercial Participation (“Shadowing”) Rights. In the event that PROSENSA declines to exercise its ECT Commercial Rights Option
where applicable as set forth in paragraph (a) above, and for any Products resulting from Programs other than the DMD Program 3 or DMD Program 4, PROSENSA shall have certain limited rights to participate in GSK’s commercialization efforts
solely in the EU, which rights shall be exercised at all times as follows and solely in accordance with the guidelines and parameters set forth by the EU Commercial Team. The EU Commercial Team * * * * * with GSK having sole and
final decision-making authority over * * * * *. Solely in the EU Territory (“ET”), which shall be defined, collectively, * * * * *, PROSENSA shall have the right to participate, in some activities as set forth in Exhibit E related to the
commercialization of all Products resulting from the GSK Development Programs. 

  
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	 	(c)	GSK Rights and Obligations After Option Exercise regarding Secondary Compounds. If, after exercise of the Option with respect to a PROSENSA Collaboration
Program, GSK determines, after good faith discussions with the JSC, but with GSK retaining final decision-making authority, that the Lead Compound, on the basis of reasonable, commercial or regulatory considerations, is not suitable for further
development, GSK may elect to replace the Lead Compound with the Secondary Compound from such Program. Such Secondary Compounds, as well as all other Compounds under such PROSENSA Collaboration Program, shall be subject to GSK’s Option and
included within the applicable GSK Development Program. For clarity, PROSENSA shall have no obligations to develop, and will not be required to bear any Development costs with respect to, any Secondary Compound beyond Clinical Candidate Selection,
or to any other Compound. 

  

	5.3	PROSENSA Development Compounds 

  

	 	(a)	 Option Expiration; PROSENSA Collaboration Program Termination. Subject to the provisions of Section 2.5, in the event that the Review
Period (as may be extended), for an Option with respect to a particular PROSENSA Collaboration Program expires without exercise, or in the event that the JSC or GSK terminates a PROSENSA Collaboration Program, then such PROSENSA Collaboration
Program shall become a PROSENSA Development Program, and PROSENSA shall have the exclusive right, at its sole discretion, to Research, Develop and commercialize all Compounds within such PROSENSA Collaboration Program as PROSENSA Products in the
Territory in the Field, alone or with any Third Party or through any Sublicensee, Affiliate or subcontractor. GSK will have no further obligations to make any milestone, royalty or other payments to PROSENSA of any kind under Article 6 with respect
to such Compounds, nor shall GSK have any further obligation to make any milestone, royalty or other payments of any kind to any Third Party on account of any Third Party license with respect to such Compounds under Section 4.10 or otherwise
under any 

  
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other provision of this Agreement. GSK hereby grants, conditional upon the occurrence of such expiration or termination, an exclusive licence under any GSK IP and GSK’s rights in any Joint
IP solely as and to the extent necessary to develop, make, use or sell to such Compounds to further Develop and commercialize such Compounds as PROSENSA Products in the Territory in the Field. 

 

	 	(b)	 GSK Development Termination. After exercising an Option with respect to a particular PROSENSA Collaboration Program, GSK may, at its sole
discretion and without any penalty or liability (other than the transfer of any data, regulatory filings and other Know-How and grant of rights contemplated under this Section 5.3(b) and to comply with its obligations in Article 12), terminate
its Development or commercialization of all the Compounds or GSK Products within such Program upon written notice to PROSENSA. In such event and by operation of the applicable provisions of Article 12, (i) all licenses in and to the Exclusively
Licensed IP for such Compounds granted to GSK by PROSENSA shall immediately terminate, (ii) PROSENSA shall have the right to continue Development and commercialization of such Compounds under a PROSENSA Development Program, (iii) the
obligations of PROSENSA and rights of GSK under the JSC with respect to such Program will terminate, and (iv) GSK (A) hereby grants, conditional upon the occurrence of such termination, an exclusive licence under its rights in any GSK IP
and GSK’s rights in any Joint IP to develop, make, use or sell such Compounds or to further Develop and commercialize such Compounds as PROSENSA Products in the Territory in the Field, (B) GSK shall transfer to PROSENSA, free of charge and
within * * * * * any and all data and Know-How pertaining to such Compounds that are necessary for the continued Development and commercialization of such Compounds in its possession and other related materials, including without limitation copies
of all Clinical Trial data and results, and all other Know-How and the like developed by or for the benefit of GSK relating to such Compounds and other documents to the extent relating to such Compounds that are necessary or useful in the continued
Development and commercialization of such Compounds as PROSENSA Products (including without limitation material documents 

  
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and agreements relating to the regulatory filings including all Regulatory Approvals and Reimbursement Approvals) throughout the Territory. In the event of such termination, PROSENSA or its
Sublicensee shall pay to GSK the applicable royalty payments as set forth in Section 6.5 for PROSENSA Products containing any such Compounds. 

  

	5.4	Safety Data Exchange 

 The
Parties shall negotiate in good faith a safety data exchange agreement with respect to GSK Products within sixty (60) Calendar Days of GSK’s exercise of an Option. The safety data exchange agreement shall facilitate management of safety
for all GSK Products covered under such agreement in accordance with standards that are no less stringent than in the ICH guidelines, such that the Parties would be able to comply with all regulatory and legal requirements regarding the management
of safety data, by providing for the exchange of relevant information in appropriate format within applicable timeframes. 
  

	6	MILESTONES AND ROYALTIES; PAYMENTS 

  

	6.1	Upfront Payment 

 GSK
shall pay to PROSENSA a non-refundable, non-creditable payment of sixteen (16) million Pounds Sterling (£16,000,000) within * * * * * after receipt of an invoice by GSK from PROSENSA on or after the Effective Date. 

 

	6.2	Development, Regulatory and Commercial Milestones 

 Subject to Section 6.2(e), GSK shall make the non-refundable, non-creditable milestone payments to PROSENSA that are set forth below on a PROSENSA Collaboration Program-by-PROSENSA Collaboration
Program basis or a GSK Development Program-by-GSK Development Program basis, as the case may be, after receipt of an invoice following achievement of the corresponding milestone event with respect to Compounds and GSK Products resulting from the
relevant PROSENSA Collaboration Program or GSK Development Program, as the case may be: 

  
 64 

	 	(a)	Development, Regulatory and Commercial Milestone Payments for PRO051 Compound of the Exon 51 Program 

 

			
	 * * * * *
	  	
	 Worldwide Net Sales Milestones (thresholds):
	  	
	 * * * * *
	  	

  

	 	(i)	* * * * * 

  

	 	(ii)	* * * * * 

  

	 	(iii)	 For Worldwide Net Sales Milestones, GSK shall pay to PROSENSA a one-time (per GSK Development Program), non-refundable, non-creditable milestone
payments indicated no later than * * * * * after receipt of an invoice when the aggregate 

  
 65 

	 	
Annual Net Sales of all GSK Products in a GSK Development Program in the Territory (for all indications and without regard to formulation) first reaches the corresponding monetary values.

  

	 	(b)	Option Exercise Fee, Development and Regulatory Milestone Payments for PRO044 Compound of the Exon 44 Program 

 

			
	 * * * * * 
	  	
	 Worldwide Net Sales Milestones (thresholds)
	  	
	 * * * * *
	  	

  

	 	(i)	* * * * * 

  

	 	(ii)	* * * * * 

  
 66 

	 	(iii)	For Worldwide Net Sales Milestones, GSK shall pay to PROSENSA a one-time (per GSK Development Program), non-refundable, non-creditable milestone payments indicated no
later than * * * * * after receipt of an invoice when the aggregate Annual Net Sales of all GSK Products in a GSK Development Program in the Territory (for all indications and without regard to formulation) first reaches the corresponding monetary
values. 

  

	 	(c)	Initiation Payment, Option Exercise Fee, Development and Regulatory Milestone Payments for each of DMD Program 3 and DMD Program 4 

 

			
	 * * * * *
	  	
	 Worldwide Net Sales Milestones (thresholds)
	  	
	 * * * * *
	  	

 (i) * * * * * 

  
 67 

 (ii) For Worldwide Net Sales Milestones, GSK shall pay to PROSENSA a one-time (per GSK
Development Program), non-refundable, non-creditable milestone payments indicated no later than * * * * * after receipt of an invoice when the aggregate Annual Net Sales of all GSK Products in a GSK Development Program in the Territory (for all
indications and without regard to formulation) first reaches the corresponding monetary values. 
  

	 	(d)	Initiation Payment, Option Exercise Fee, Development and Regulatory Milestone Payments for each of DMD Program 3 and DMD Program 4 if PROSENSA exercises its Option
pursuant to Section 4.2 

  

			
	 * * * * * 
	  	
	 Worldwide Net Sales Milestones (thresholds)
	  	
	 * * * * *
	  	

 (i) * * * * * 

  
 68 

 (ii) For Worldwide Net Sales Milestones, GSK shall pay to PROSENSA a one-time (per GSK
Development Program), non-refundable, non-creditable milestone payments indicated no later than * * * * * after receipt of an invoice when the aggregate Annual Net Sales of all GSK Products in a GSK Development Program in the Territory (for all
indications and without regard to formulation) first reaches the corresponding monetary values. 
  

	 	(e)	All of the milestones in Section 6.2 are payable only once for the relevant PROSENSA Collaboration Program. If, upon achievement of a milestone for a PROSENSA
Collaboration Program any previous milestone has not been paid for such Program, then each such previous milestone shall be payable along with the payment for the milestone then achieved. 

 

	 	(f)	The payments described in Section 6.2(c) or(d) are in full force and effect, provided that if a Lead Compound from DMD Program 3 or DMD Program 4 reaches the
milestone triggers specified for the Lead Compound of the Exon 44 Program before such triggers are reached for the Lead Compound of the Exon 44 Program itself and provided that the frequency of mutation for the exon of said DMD Program 3 or DMD
Program 4 is equal to or greater than the frequency of exon 44 mutations, the payments specified in Section 6.2(b) relating to the Exon 44 Program shall become payable for the DMD Program 3 or DMD Program 4 instead, and those specified in
Section 6.2(c) or (d) shall become payable for the Exon 44 Program. 

  

	6.3	Royalties 

 (a) Patent
and Drug Market Exclusivity Royalty. GSK shall pay to PROSENSA incremental royalties on the aggregate Annual Net Sales of all GSK Products, on a country-by-country basis, (1) in those countries of the Territory in which the composition of
matter, manufacture, use or sale of such GSK Product(s) is covered by a Valid Claim within the Patent Rights included in the Exclusively Licensed IP, or (2) in any other country in the Territory so long as the composition of matter,
manufacture, use or sale of such GSK Product(s) is covered by a Valid Claim within the Patent Rights included in the Exclusively Licensed IP in either the United States or any Major EU Country, and there is no Generic Competition with respect to the
GSK Product(s) existing in such other 

  
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country, or (3) in those countries in the Territory in which such GSK Product has been granted Market Exclusivity Rights and such Market Exclusivity Rights are in force at the relevant time
of sale in the relevant country, (any of scenarios (1), (2) or (3) shall qualify for the “Patent/Market Exclusivity Royalty”), in the case of scenarios (1) and (3) at * * * * * of the royalty rates set forth in
the table below, and in the case of scenario (2) at * * * * * of the royalty rates set forth in the table below . 
  

					
	 Aggregate Annual Net Sales (£M) Across all

GSK Products
	  	Patent/Market
Exclusivity Royalty
Rate	 
	 First * * * * *
	  	 	* 	* * * * 
	 Portion above * * * * * and up to and including * * * * *
	  	 	* 	* * * * 
	 Portion above * * * * * and up to and including * * * * *
	  	 	* 	* * * * 
	 Portion above * * * * *
	  	 	* 	* * * * 

 The royalty rates above are incremental rates that apply only for the respective increment of worldwide
Annual Net Sales described in the Annual Net Sales column and, thus, once a total Annual Net Sales figure is achieved for the year, the royalties owed on any lower tier portion of Annual Net Sales are not adjusted up to the higher tier rate. The
Patent/Market Exclusivity Royalty as provided in this Section 6.3(a) shall be adjusted as provided in Section 6.3(b) below. GSK’s obligation to pay the Patent/Market Exclusivity Royalty with respect to a GSK Product will continue on a
country-by-country basis, from the date of First Commercial Sale of the GSK Product until the later of (i) for those countries included in 6.3(a)(1) above, the expiration of the last Valid Claim covering the composition of matter, manufacture,
use or sale of the GSK Product within the Patent Rights included in the Exclusively Licensed IP, or (ii) for those countries included in 6.3(a)(2) above, the expiration of the last Valid Claim covering the composition of matter, manufacture,
use or sale 

  
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of the GSK Product within the Patent Rights included in the Exclusively Licensed IP in the United States and all Major EU Countries or (iii) for those countries included in 6.3(a)(3) above,
the date that Market Exclusivity Rights expires in such country with respect to such GSK Product. 
 (b) Know-How
Royalty: On a country-by-country basis, if, at any time after First Commercial Sale of a GSK Product, (i) if the country of sale is initially included in 6.3(a)(1) above, all Valid Claims within the Exclusively Licensed IP covering
the composition of matter, manufacture, use or sale of the Compound included in such GSK Product have expired or no longer exist; and (ii) if the country if sale is initially included in 6.3(a)(2) above, and either (x) all Valid Claims
within the Exclusively Licensed IP covering the composition of matter, manufacture, use or sale of the Compound included in such GSK Product have expired, or otherwise do not exist or no longer exist, in the United States and all Major Market EU
Countries, or (y) there is Generic Competition in the country of sale with respect to such GSK Product; and (iii) if the country of sale is initially included in 6.3(a)(3) above, GSK does not have Market Exclusivity Rights in effect at the
relevant time of sale in the relevant country; then, in lieu of the Patent/Market Exclusivity Royalty, GSK will pay PROSENSA a know-how royalty on Net Sales of such GSK Product(s) at a royalty rate of * * * * * of the royalty
rates as set forth in the table in 6.3(a) above (the “Know-How Royalty”) until the date that is no later than * * * * * years after First Commercial Sale of such GSK Product in such country. Notwithstanding the
foregoing, where a pending patent application that does not include a Valid Claim becomes an issued patent and such issued patent contains a Valid Claim within the Exclusively Licensed IP which covers the composition of matter, manufacture, use or
sale of such GSK Product(s), GSK shall pay * * * * * of the Patent/Market Exclusivity Royalty rate on all Net Sales following the date that such patent application becomes issued, pursuant to and for the term stated in
Section 6.3(a) above. 
 (c) Exchange Rates. For the purposes of determining royalties due Net Sales shall be
converted into Pounds Sterling (a) by GSK using average exchange rates calculated and utilized by GSK’s group reporting system and published accounts; (b) by PROSENSA using thirty (30) day average exchange rate quoted in the
Financial Times on the relevant date. 

  
 71 

	6.4	Sublicense Income. GSK shall pay PROSENSA * * * * * of all Sublicense Income received by GSK or its Affiliates. 

 

	6.5	Royalty Payments by PROSENSA for GSK Development Programs Unilaterally Terminated by GSK. 

(a) With respect to any GSK Development Program resulting from DMD Program 3 or DMD Program 4 that has been terminated by GSK and which
becomes a PROSENSA Development Program upon termination of GSK’s rights with respect thereto, if PROSENSA or its Affiliate or Sublicensee elects to Develop and/or commercialize PROSENSA Products from such Program, PROSENSA shall pay to GSK a
royalty on Net Sales of all such PROSENSA Products at the rate of * * * * * of Net Sales anywhere in the Territory until such time as GSK has recovered (a) all payments made to PROSENSA hereunder directly related to such Program and
(b) GSK’s actual costs for Development under such Program. 
 (b) PROSENSA’s obligation to pay royalties under
this Section 6.5 with respect to a PROSENSA Product shall commence upon the First Commercial Sale by PROSENSA, or its Affiliate or Sublicensee of such PROSENSA Product in a particular country in the Territory and will expire on a
country-by-country and PROSENSA Product-by-PROSENSA Product basis not later than ten (10) years after First Commercial Sale in the relevant Territory. 
  

	6.6	Reports and Payment of Milestones  

 GSK shall make all milestone payments within * * * * * after receipt by GSK of an invoice from PROSENSA with respect to the achievement of such milestone event after GSK has notified PROSENSA or PROSENSA
has notified GSK of achievement of the milestone event in accordance with the terms of this Section 6.6. Upon exercise of an Option by GSK, GSK shall pay the applicable Option Exercise Fee within * * * * * of receipt of an invoice from PROSENSA
after notice from GSK of Option exercise pursuant to Section 4.2(c). PROSENSA shall notify GSK in writing promptly, but in no event later than * * * * *, after each achievement of a milestone in

  
 72 

 
Section 6.2. GSK shall notify PROSENSA in writing promptly, but in no event later than * * * * *, after the achievement of any milestone in Section 6.2. GSK shall pay all milestone
payments due within * * * * * after receipt of an invoice for such payment from PROSENSA following the achievement of the corresponding milestone event. 
  

	6.7	Reports; Royalty Payments; Sublicense Income  

 Until the expiration of a Party’s royalty obligations under this Article 6, such Party agrees to make written reports to the other Party within * * * * * after the end of each Calendar Quarter
covering all sales of Products in the Territory by such Party and its Affiliates and Sublicensees for which invoices were sent during such Calendar Quarter, as well as, in the case of GSK, the amount of Sublicense Income received in such Calendar
Quarter, each such written report in reasonable detail as available to such Party stating for the period in question: (a) the total Net Sales for each Product, (b) a calculation of the royalty payment due on such Net Sales pursuant to
Article 6.3 or 6.5, as the case may be, (c) in the case of GSK, (i) the total amount of Sublicense Income received and (ii) a calculation of Sublicense Income due pursuant to Section 6.4. The information contained in each report
under this Section 6.7 shall be considered Confidential Information of the reporting Party. Concurrent with the delivery of each such report, each Party shall make the applicable royalty payment (and with respect to GSK, Sublicense Income)
payment due to the other Party under this Article 6 for the Calendar Quarter covered by such report. In the case of transfers or sales of any Product between the royalty-paying Party and an Affiliate or Sublicensee of such Party, a royalty shall be
payable only with respect to the sale of such Product to an independent Third Party and not an Affiliate or Sublicensee of the seller. 
  

	6.8	Methods of Payments  

 All
payments due from one Party (the “Payor”) to the other Party (the “Payee”) under this Agreement shall be paid in pounds sterling by wire transfer to a bank designated in writing by the Payee. 

  
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	6.9	Accounting 

 Payor agrees
to keep full, clear and accurate records for a maximum period of three (3) years after the relevant payment is owed pursuant to this Agreement, setting forth the sales and other disposition of Product sold or otherwise disposed of in sufficient
detail to enable royalties and compensation payable to the Payee hereunder to be determined. Payor further agrees, upon not less than sixty (60) Calendar Days prior written notice, to permit the books and records to be examined by an
independent accounting firm selected by Payee and reasonably acceptable to Payor for the purpose of verifying reports provided by Payor under Section 6.7. Such audit shall not be performed more frequently than once in every period of twelve
(12) months and shall be conducted under appropriate confidentiality provisions, for the sole purpose of verifying the accuracy and completeness of all financial, accounting and numerical information and calculations provided under this
Agreement. Such examination is to be made at the expense of Payee, except in the event that the results of the audit reveal an underpayment of royalties, milestones, or other payments to Payee under this Agreement of five (5) per cent or more
per annum over the period being audited, in which case reasonable audit fees for such examination shall be paid by Payor. When calculating Net Sales, the amount of such sales in foreign currencies shall be converted into pounds sterling in
accordance with Section 6.3(c). Payor shall provide reasonable documentation of the calculation and reconciliation of the conversion figures on a country-by-country basis as part of its report of Net Sales for the period covered under the
report. 
  

	6.10	Taxes 

 (a) For VAT, all
amounts in this contract are stated exclusive of VAT and other indirect taxes. If applicable, the paying Party shall be responsible for the payment of all such appropriately levied taxes to the Party issuing a valid VAT invoice. Should such amounts
of VAT be refunded subsequently by the fiscal authorities, the receiving Party shall refund these monies to the paying Party within 30 days of receipt. For withholding taxes, any tax paid or required to be withheld by GSK for the benefit of PROSENSA
on account of any royalties or other payments payable to PROSENSA under this Agreement shall be deducted from the amount of royalties or other payments otherwise due. GSK shall secure and send to PROSENSA proof of any such taxes withheld and paid by
GSK for the benefit of PROSENSA, and shall, at PROSENSA’s request, provide reasonable assistance to PROSENSA in recovering such taxes. 

  
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 (b) PROSENSA hereby represents and warrants that PROSENSA is resident for tax purposes in
the Netherlands and that PROSENSA is entitled to relief from United Kingdom income tax under the terms of the double tax agreement between the UK and the Netherlands. PROSENSA shall notify GSK immediately in writing in the event that PROSENSA ceases
to be entitled to such relief. 
 (c) Pending receipt of formal certification from the UK Inland Revenue, GSK may pay royalty
income and any other payments under this Agreement to PROSENSA by deducting tax at a rate specified in the double tax treaty between the UK and Netherlands. PROSENSA agrees to indemnify and hold harmless GSK against any loss, damage, expense or
liability arising in any way from a breach of the above warranties or any future claim by a UK tax authority or other similar body alleging that GSK was not entitled to deduct withholding tax on such payments at source at the treaty rate.

 (d) Any tax paid or required to be withheld by PROSENSA for the benefit of GSK on account of any royalties or other payments
payable to GSK under this Agreement shall be deducted from the amount of royalties or other payments otherwise due. PROSENSA shall secure and send to GSK proof of any such taxes withheld and paid by PROSENSA for the benefit of GSK, and shall, at
GSK’s request, provide reasonable assistance to GSK in recovering such taxes. 
 (e) GSK hereby represents and warrants that
GSK is resident for tax purposes in the United Kingdom and that GSK is entitled to relief from the Netherlands income tax under the terms of the double tax agreement between the Netherlands and UK. GSK shall notify PROSENSA immediately in writing in
the event that GSK ceases to be entitled to such relief. 
  

	6.11	Late Payments 

 Any
undisputed amount owed by one Party to the other Party under this Agreement that is not paid within the applicable time period set forth herein shall accrue interest at the rate of two (2%) above the then-applicable prime

  
 75 

 
commercial lending rate of Barclays Bank Plc, or, if lower, the highest rate permitted under applicable law. Where the late payment is caused by the Payee, such as non or late communication of
changes to bank details, non response to communications regarding interpretation or dispute of terms etc then no interest will be payable by the Payor. 
  

	6.12	Consideration. The Parties acknowledge that the payments received by PROSENSA hereunder are in consideration for (i) the licenses and Options granted to GSK
hereunder with respect to the Exclusively Licensed IP, including PROSENSA Patent Rights, PROSENSA Know-How, PROSENSA’s interest in Joint Patent Rights and Joint Know-How (ii) data packages, clinical trial results, regulatory filings and
Orphan Drug designations and (iii) PROSENSA’s achievement of milestone events. 

  

	7	EXCLUSIVITY 

  

	7.1	PROSENSA Exclusivity  

Except pursuant to this Agreement, on a Program-by-Program basis during the Term PROSENSA and/or its Affiliates shall not, either alone or
with or for any Third Party, Research (except as permitted under 4.6), Develop or commercialize any compound directed to exon skipping by a mechanism intended to directly induce single exon skipping in the dystrophin gene for the treatment of DMD
for the same exon as is the subject of the relevant Program under this Agreement. During the Term, PROSENSA shall not grant or offer any license or other rights to a Third Party or work independently or with or for the benefit of any Third Party,
with respect to the Research, Development or commercialisation of any Compounds. For the avoidance of doubt, the exclusivity obligation upon PROSENSA as set out in this Section 7.1 for exons which are the subject of a Program under this
Agreement, shall end on a Program-by-Program basis if the relevant Program is terminated or the relevant Option is not exercised by GSK (subject to Section 12.5(c)(iii)). In addition, for a period of * * * * * after the Effective Date, with
respect to any exon which is not the subject of a Program under this Agreement, PROSENSA and its Affiliates shall not Develop or commercialize with or for a Third Party any compound directed to exon skipping by a mechanism intended to directly
induce single exon skipping in the dystrophin gene for the treatment of DMD, without the prior written consent of GSK. 

  
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	7.2	PROSENSA Exclusivity Exceptions 

 Notwithstanding the foregoing in Section 7.1, PROSENSA will have the right to Research and Develop, manufacture or commercialize on its own or with or for a Third Party, Compounds and PROSENSA
Products within a PROSENSA Development Program, if such Program results from the termination or expiration of the Review Period (as may be extended) for an Option without exercise by GSK, the JSC’s decision to terminate a PROSENSA Collaboration
Program, or the termination of a GSK Development Program by GSK or by PROSENSA for an uncured material breach by GSK of its diligence obligations with respect to such Program. 

 

	7.3	GSK Exclusivity  

 Except
pursuant to this Agreement, on a Program-by-Program basis and for a period of * * * * * after First Commercial Sale of the first GSK Product arising from the Exon 51 Program, GSK and/or its Affiliates shall not Develop or commercialize, alone or
with or for any Third Party, or Research with a Third Party, any compound directed to exon skipping by a mechanism intended to directly induce single exon skipping in the dystrophin gene for the treatment of DMD for the same exon as is the subject
of the relevant Program under this Agreement, including any exon which is the subject of a non-selected DMD Program 3 project or non-selected DMD Program 4 project as described in Section 2.5(a) and (b), respectively. For the avoidance of
doubt, the exclusivity obligation upon GSK as set out in this Section 7.3 for exons which are the subject of a Program under this Agreement shall end on a Program-by-Program basis if the relevant Program is terminated or the relevant Option is
not exercised by GSK. Further, other than in the case of approved Sublicensees, for a period of * * * * * after the Effective Date, GSK and/or its Affiliates shall not, either alone or with or for any Third Party, enter into any license or other
commercial agreement with respect to Development or commercialization of compounds directed to exon skipping by a mechanism intended to directly induce single exon skipping in the dystrophin gene for the treatment of DMD for any exon which is not
the subject of a Program under this Agreement without the 

  
 77 

 
prior written consent of PROSENSA. Notwithstanding the foregoing, all of GSK’s exclusivity obligations under this Section 7.3 shall terminate immediately upon the occurrence of any of
the following events: (i) Change of Control of PROSENSA by a Triggering Entity, (ii) PROSENSA entering into a commercial licensing agreement with a Third Party with respect to exon-skipping in DMD as permitted in Section 7.1 above,
(iii) if at least one GSK Product arising from the Exon 51 Program has not achieved Regulatory Approval within * * * * * after a Third Party’s competitive exon-skipping product for exon 51 has entered the market in both the United States
and the EU. 
 In the event that GSK enters into a commercial license agreement with a Third Party for the competitive
exon-skipping product for exon 51 referenced in (iii) above, the GSK Development Program resulting from the Exon 51 Program shall be deemed to be unilaterally terminated by GSK and Section 12.5(b) shall apply. 

 

	8	INTELLECTUAL PROPERTY 

  

	8.1	Ownership 

  

	 	(a)	PROSENSA shall own, Control and retain all of its rights, title and interest in and to the PROSENSA IP except to the extent that any rights or licenses are expressly
granted to GSK under this Agreement. 

  

	 	(b)	GSK shall own, Control and retain all of its rights, title and interest in and to the GSK IP, except to the extent that any rights or licenses are expressly granted to
PROSENSA under this Agreement. 

  

	 	(c)	PROSENSA and GSK shall jointly own and Control, in equal undivided shares, all Joint IP. 

 

	 	(d)	Inventorship and rights governing joint intellectual property shall be determined in accordance with the laws of the U.S. 

 

	8.2	Prosecution and Maintenance of Patent Rights 

  

	 	(a)	 PROSENSA Patent Rights. During the Term and thereafter, as between the Parties, PROSENSA shall be responsible for the Prosecution and
Maintenance of the PROSENSA Patent Rights. PROSENSA will use Commercially Reasonable Efforts to obtain a reasonable scope of patent 

  
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protection for Compounds that satisfy the Clinical Candidate Selection Criteria, using counsel of its own choice but reasonably acceptable to GSK. PROSENSA shall keep GSK informed through the JPS
as to material developments with respect to the Prosecution and Maintenance of the PROSENSA Patent Rights, including by providing copies of all applications, all substantive office actions and responses thereto, or any other substantive documents
that PROSENSA receives from any patent office, including without limitation notice of all interferences, reissues, re-examinations, oppositions or requests for patent term extensions. Notwithstanding the exclusion of the Exon 51 Program from the
JSC, the JPS will also provide oversight of Prosecution and Maintenance, defense and enforcement of the Patent Rights covering the Exon 51 Program to the same extent and in the same manner such oversight is provided to the other Programs under this
Agreement. Input shall be provided and consideration undertaken and concluded by the Parties in a timely manner so as not to jeopardize the pendency of the application under review or otherwise negatively affect or limit the rights of any Party
hereto. GSK shall have the right and reasonable opportunity (at its own expense) to review and make comments and recommendations in relation to the Prosecution and Maintenance and management of the PROSENSA Patent Rights, provided it does so
promptly, consistent with any filing or other procedural deadlines, and PROSENSA will consider in good faith the recommendations of GSK. PROSENSA shall act in good faith, with respect to the Prosecution and Maintenance of any PROSENSA Patent Rights.
Should the Parties fail to agree on any matter in this Section 8.2(a), PROSENSA shall have the final say on such matter. Notwithstanding the foregoing, following the exercise of the Option to a particular Program, in the event that the Parties
fail to agree on any matter covered under this Section 8.2(a) that relates to specific claims with respect to a Compound or its method of use under the applicable Program, such matter shall be resolved in accordance with Section 3.1(h).

  

	 	(b)	 GSK Patent Rights. As between the Parties, GSK shall control the Prosecution and Maintenance of the GSK Patent Rights. Notwithstanding the
foregoing, GSK shall use Commercially Reasonable Efforts to consult 

  
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with PROSENSA through the JPS in connection with the Prosecution and Maintenance of the GSK Patent Rights; provided, however, that GSK shall not be required to disclose any confidential
information that is not specific to the Programs. Input shall be provided and consideration undertaken and concluded by the Parties in a timely manner so as not to jeopardize the pendency of the application under review or otherwise negatively
affect or limit the rights of any Party hereto. PROSENSA shall have the right and reasonable opportunity (at its own expense) to review and make comments and recommendations in relation to the Prosecution and Maintenance and management of the GSK
Patent Rights, provided it does so promptly consistent with any filing or procedural deadlines, and GSK will consider in good faith the recommendations of PROSENSA. GSK shall act in good faith, with respect to the Prosecution and Maintenance of any
GSK Patent Rights. Should the Parties fail to agree on any matter in this Section 8.2(b), GSK shall have the final say on such matter. 

  

	 	(c)	 Joint Patent Rights. GSK shall be responsible for the Prosecution and Maintenance of the Joint Patent Rights. GSK will use Commercially
Reasonable Efforts to obtain a reasonable scope of patent protection for Compounds that satisfy the Clinical Candidate Selection Criteria covered by claims of such Joint Patent Rights, using counsel of its own choice but reasonably acceptable to
PROSENSA. GSK shall keep PROSENSA informed through the JPS as to material developments with respect to the Prosecution and Maintenance of such Joint Patent Rights, including by providing copies of all applications and all substantive office actions
and responses thereto, or any other substantive documents that GSK receives from any patent office, including without limitation notice of all interferences, reissues, re-examinations, oppositions or requests for patent term extensions. Input shall
be provided and consideration undertaken and concluded by the Parties in a timely manner so as not to jeopardize the pendency of the application under review or otherwise negatively affect or limit the rights of any Party hereto. PROSENSA shall have
the right and reasonable opportunity (at its own expense) to review and make comments and recommendations in relation to the Prosecution and Maintenance and management of the Joint Patent

  
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Rights, provided it does so promptly, consistent with any filing deadlines, and GSK will consider in good faith the recommendations of PROSENSA. GSK shall act in good faith with respect to the
Prosecution and Maintenance of any Joint Patent Rights. Any dispute regarding the Prosecution and Maintenance of any Joint Patent Rights shall be resolved in accordance with Section 3.1(h). 

 

	 	(d)	Filing Decision or Prosecution Lapse. If, during the Term, the Party responsible for Prosecuting and Maintaining the PROSENSA Patent Rights, GSK Patent Rights or
Joint Patent Rights, as the case may be, in any country, decides not to file such Patent Rights or intends to allow such Patent Rights to lapse or become abandoned without having first filed a substitute, the Party Prosecuting or Maintaining such
Patent Rights shall notify the other Party of such decision or intention at least * * * * * prior to the date upon which the subject matter of such Patent Rights shall become unpatentable or such Patent Rights shall lapse or become abandoned. The
other Party shall thereupon have the right, but not the obligation, to assume responsibility for the Prosecution and Maintenance of such Patent Rights at its own expense with counsel of its own choice. 

 

	 	(e)	Cooperation Regarding the Filing and Prosecution of Divisional Patent Applications. At either Party’s request, the Parties shall cooperate with one another
in good faith to file and prosecute divisional Patent applications with respect to the PROSENSA Rights and the Joint Patent Rights for which either Party is responsible for Prosecution and Maintenance pursuant to this Section 8.2. if
practicable and if necessary or desirable to divide subject matter relating to one or more Programs from other subject matter that is not subject to this Agreement to facilitate the control by the respective Parties of the Prosecution and
Maintenance of Patents as allocated in accordance with this Article 8. 

  

	8.3	Patent Costs 

  

	 	(a)	PROSENSA Patent Rights and GSK Patent Rights. PROSENSA shall be responsible for all Patent Costs incurred with respect to any PROSENSA Patent Rights. GSK shall
be responsible for all Patent Costs incurred by GSK with respect to GSK Patent Rights. 

  
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	 	(b)	Joint Patent Rights. The Parties shall share equally all Patent Costs associated with the Prosecution and Maintenance of Joint Patent Rights.

  

	8.4	Defense of Infringement Claims Brought by Third Parties. 

  

	 	(a)	Infringement Claims by Third Parties. In the event that a Third Party asserts that the manufacture, use, sale, offer for sale or importation of any Compound or
Product infringes a Patent Right of such Third Party, then the Party receiving notice of such action shall promptly notify the other Party and the following shall apply: 

 

	 	(b)	 Compounds in a PROSENSA Development Program or PROSENSA Collaboration Program. If a Third Party asserts that the manufacture, use, sale, offer
for sale or importation of any Compound in a PROSENSA Collaboration Program or any Compound within a PROSENSA Development Program infringes a Patent Right of such Third Party, then, subject to Section 8.4(d) below, PROSENSA shall have the
primary right but not the obligation to defend against any such assertions at its cost and expense. In the event PROSENSA elects to defend against any such Third Party claims, PROSENSA shall have the sole right to direct the defense of any such
Third Party claims and to elect to settle such claims, but only with the prior written consent of GSK for a proposed settlement in circumstances where GSK has not exercised its Option in relation to that PROSENSA Collaboration Program, such consent
not to be unreasonably withheld or delayed. In the event that PROSENSA elects not to defend against such Third Party claims within * * * * * of learning of same, GSK shall have the right, subject to Section 8.4(d) below, but not the duty, to
defend against such action in circumstances where GSK has not exercised its Option in relation to that PROSENSA Collaboration Program and thereafter shall have the sole right to direct the defense of any such Third Party claim(s), including the
right to settle such claims, but only with the prior written consent of PROSENSA for a proposed settlement, such consent not to be unreasonably withheld or delayed. In any event, the Parties shall reasonably assist one another and cooperate in any
such litigation at the 

  
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other’s request without expense to the requesting Party. Each Party may, at its own expense, and with its own counsel join any defense brought by the other Party. 

 

	 	(c)	GSK Development Compounds. If a Third Party asserts that the manufacture, use, sale, offer for sale or importation of any GSK Development Compound or GSK Product
infringes a Patent Right of such Third Party, then, subject to Section 8.4(d) below, GSK shall have the primary right but not the obligation to defend against any such assertions at its cost and expense. In the event GSK elects to defend
against any such Third Party claims, GSK shall have the sole right to direct the defense of such Third Party claims and to elect to settle such claims. In the event that GSK elects not to defend against such Third Party claims within * * * * * of
learning of same, PROSENSA shall have the right, subject to Section 8.4(d) below, but not the duty, to defend against such an action and thereafter shall have the sole right to direct the defense of any such Third Party claim(s), including the
right to settle such claims. In any event, the Parties shall reasonably assist one another and cooperate in any such litigation at the other’s request without expense to the requesting Party. Each Party may at its own expense and with its own
counsel join any defense brought by the other Party. 

  

	 	(d)	Indemnification Provisions. Notwithstanding the foregoing, in the event that any Third Party claim is brought against a Party as set forth above, and such claim
is subject to indemnification obligations as set forth in Article 11, then the Indemnification provisions shall control with respect to which Party undertakes the defense of such Third Party claim. 

 

	8.5	Enforcement of PROSENSA or GSK Patent Rights. 

  

	 	(a)	 Duty to Notify of Infringement. If either Party learns of an infringement, unauthorized use, misappropriation or threatened infringement by a
Third Party, or that any Third Party has filed a declaratory judgment action against either Party alleging non-infringement of any Patent Rights with respect to any Joint Patent Rights, PROSENSA Patent Rights, or GSK Patent Rights
(“Competitive 

  
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Infringement”), such Party shall promptly notify the other Party, and shall reasonably endeavour to do so, within * * * * * of becoming aware of such infringement
and shall provide such other Party with available evidence of such Competitive Infringement. 

  

	 	(b)	Prior to Exercise of Option. Prior to GSK’s exercise of an Option, with respect to any Joint Rights or any PROSENSA Patent Rights that is the subject of
such Competitive Infringement, PROSENSA shall have the primary right to bring and control any such action. Unless subject to an agreement between PROSENSA and a Third Party in existence as of the Effective Date that would preclude PROSENSA from
granting such right to GSK, if PROSENSA fails to bring any such action or proceeding within a period of * * * * * after first being notified of such Competitive Infringement (or in the case of a declaratory judgment action, within * * * * * after
receiving notice of such declaratory judgment action, to prevent or abate any actual or alleged infringement or defend such declaratory judgment) (“Competitive Infringement Action Period”), then GSK shall have the right, but not the
obligation, to bring and control any such action by counsel of its own choice, and PROSENSA shall have the right to be represented in any such action by counsel of its own choice at its own expense. If GSK fails to bring an action or proceeding with
respect to such Competitive Infringement within a period of * * * * * after the expiration of the Competitive Infringement Action Period, then PROSENSA shall have the on-going right to pursue such action.

  

	 	(c)	 Following Exercise of Option. Following GSK’s exercise of an Option, and before GSK’s termination of Development and
commercialization, with respect to the Program containing Compounds that are the subject of any Competitive Infringement, GSK shall have the primary right, but not the obligation, to institute, prosecute, and control any action or proceeding with
respect thereto by counsel of its own choice, and PROSENSA shall have the right, at its own expense, to be represented in that action by counsel of its own choice. If GSK fails to bring an action or proceeding within a period of
* * * * * after first being notified of such Competitive Infringement, PROSENSA shall have 

  
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the right to bring and control any such action by counsel of its own choice, and GSK shall have the right to be represented in any such action by counsel of its own choice at its own expense.

  

	 	(d)	After GSK’s Termination of a Program. After GSK’s termination of Development and commercialization with respect to a Program containing Compounds that
are the subject of any Competitive Infringement of the PROSENSA Patent Right or Joint Patent Rights, PROSENSA shall have the primary right, but not the obligation, to institute, prosecute, and control any action or proceeding with respect thereto by
counsel of its own choice. Notwithstanding the forgoing, to the extent that (a) such Competitive Infringement occurred prior to the termination of the applicable Program and (b) PROSENSA fails to bring any such action or proceeding within
a period of * * * * * after first being notified of such Competitive Infringement, then GSK shall have the right, but not the obligation, to bring and control any such action by counsel of its own choice at its own expense, and PROSENSA shall have
the right to be represented in any such action by counsel of its own choice at its own expense. 

  

	 	(e)	Settlement. A settlement or consent judgment or other voluntary final disposition of a suit under this Article 8 may not be entered into without the prior
written consent of the Party not bringing the suit, such consent not to be unreasonably withheld or delayed; provided that such settlement, consent judgment or other disposition does not admit the invalidity or unenforceability of the relevant
Patent Rights in the PROSENSA Patent Rights, GSK Patent Rights, or Joint Patent Rights, and provided further, that any rights granted under the relevant Patent Rights to continue the infringing activity in such settlement, consent judgment or other
disposition shall be limited to those rights that the granting Party otherwise has the right to grant, and provided further, that any settlement, consent judgment or other disposition shall not include the grant of any license, covenant or other
rights to any Third Party that would limit or interfere with or reduce the scope of the subject matter included under the exclusive licenses to be granted to GSK pursuant to the exercise of any of its Options to Programs under Section 4.2(b),
and further provided that such settlement does not impose any obligation on, or otherwise adversely affect the other Party. 

  
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	 	(f)	Share of Recoveries. If one Party brings any such action or proceeding in accordance with this Section 8.5, the other Party agrees to be joined as a Party
plaintiff where necessary and to give the first Party reasonable assistance (at the expense of the Party bringing suit) and authority to file and prosecute the suit. Any damages or other monetary awards recovered shall be shared as follows:
(i) the amount of such recovery actually received by the Party controlling such action shall first be applied to the out-of-pocket costs of such action; and then (ii) any remaining proceeds shall be allocated between the Parties such that
the Party bringing suit under this Section 8.5 retains * * * * * and other Party retains * * * * * of such amount. 

  

	 	(g)	35 USC 271(e)(2) Infringement. Notwithstanding anything to the contrary in this Section 8.5, for infringement under 35 USC 271(e)(2) where GSK has exercised
its Option and where GSK is the holder of the applicable NDA, and for so long as GSK maintains or retains its exclusive license under such Option, GSK shall have the sole right to initiate legal action to enforce all GSK Patent Rights and PROSENSA
Patent Rights licensed to it against infringement or misappropriation by Third Parties or defend any declaratory judgment action relating thereto at its sole expense. 

 

	 	(h)	Regulatory Data Protection. To the extent required by law or permitted by law, each Party will use Commercially Reasonable Efforts to promptly, accurately and
completely list, with the applicable Regulatory Authorities during the Term, all applicable Patent Rights for any Product that such Party intends to, or has begun to, commercialize and that have become the subject of a marketing application
submitted to FDA, such listings to include all so called “Orange Book” listings required under the Hatch-Waxman Act and all so called “Patent Register” listings as required in Canada. Prior to such listings, the Parties will meet
to evaluate and identify all applicable Patent Rights. Notwithstanding the preceding sentence, the Party holding the NDA for the applicable Product will retain final decision-making authority as to the listing of all applicable Patent Rights for
such Product, regardless of which Party owns such Patent Rights. 

  
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	9	CONFIDENTIALITY 

  

	9.1	Confidentiality; Exceptions 

 Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the Parties agree that the receiving Party (the “Receiving Party”) shall keep confidential and
shall not publish or otherwise disclose or use for any purpose other than as provided for in this Agreement any Know-How or other confidential and proprietary information and materials, patentable or otherwise, in any form (written, oral,
photographic, electronic, magnetic, or otherwise) which is disclosed to it by the other Party (the “Disclosing Party”) or otherwise received or accessed by a Receiving Party in the course of performing its obligations or exercising
its rights under this Agreement, including but not limited to trade secrets, know-how, inventions or discoveries, proprietary information, formulae, processes, techniques and information relating to a Party’s past, present and future marketing,
financial, and Research and Development activities of any product or potential product or useful technology of the Disclosing Party and the pricing thereof (collectively, “Confidential Information”), except to the extent that it can
be established by the Receiving Party that such Confidential Information: 
  

	 	(a)	was in the lawful knowledge and possession of the Receiving Party prior to the time it was disclosed to, or learned by, the Receiving Party, or was otherwise developed
independently by the Receiving Party, as evidenced by written records kept in the ordinary course of business, or other documentary proof of actual use by the Receiving Party; 

 

	 	(b)	was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party; 

 

	 	(c)	became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the Receiving Party
in breach of this Agreement; or 

  

	 	(d)	was disclosed to the Receiving Party, other than under an obligation of confidentiality, by a Third Party who had no obligation to the Disclosing Party not to disclose
such information to others. 

  
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	9.2	Authorized Disclosure. Except as expressly provided otherwise in this Agreement, a Receiving Party may use and disclose Confidential Information of the
Disclosing Party as follows: (i) under appropriate confidentiality provisions similar to those in this Agreement, in connection with the performance of its obligations or exercise of rights granted or reserved in this Agreement (including the
rights to commercialize Products and to grant licenses and sublicenses hereunder); or (ii) to the extent such disclosure is reasonably necessary in filing or prosecuting patent, copyright and trademark applications, prosecuting or defending
litigation, complying with applicable governmental regulations, obtaining regulatory approval, conducting pre-clinical activities or Clinical Trials, marketing Products, or otherwise required by law; provided, however, that if a Receiving
Party is required by law or regulation to make any such disclosure of a Disclosing Party’s Confidential Information it will, except where impracticable for necessary disclosures, for example in the event of medical emergency, give reasonable
advance notice to the Disclosing Party of such disclosure requirement and, except to the extent inappropriate in the case of patent applications, will use its reasonable efforts to secure confidential treatment of such Confidential Information
required to be disclosed; or (iii) in communication with investors, consultants, advisors or others on a need to know basis, in each case under appropriate confidentiality provisions substantially equivalent to those of this Agreement; or
(iv) to the extent mutually agreed to in writing by the Parties; provided, however, that, in each of the above situations, the Receiving Party shall remain responsible for any failure by any Person who receives the Confidential Information
pursuant to this Section 9.2 to treat such Confidential Information as required under this Article 9. 

  

	9.3	 Press Release; Disclosure of Agreement. On or promptly after the Effective Date, the Parties shall jointly issue a public announcement of the
execution of this Agreement. Neither Party shall be free to issue any press release or other public disclosure regarding the Agreement or the Parties’ activities hereunder, or any results or data arising hereunder, except (a) with the
other Party’s prior written consent, or (b) for any disclosure that is reasonably necessary to comply with applicable national securities exchange listing requirements or laws, rules

  
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or regulations, with the other Party’s consent not to be unreasonably withheld or delayed beyond a time reasonably in advance of the required disclosure deadline necessary to comply with
applicable national securities exchange listing requirements or laws, rules or regulations. The Parties agree to consult with each other reasonably and in good faith with respect to the text and timing of any such press releases prior to the
issuance thereof, and a Party may not unreasonably withhold consent to such releases. Except to the extent required by law or as otherwise permitted in accordance with this Section 9.3, neither Party shall make any public announcements
concerning this Agreement or the subject matter hereof without the prior written consent of the other, which shall not be unreasonably withheld or delayed. Each Party agrees to provide to the other Party a copy of any public announcement regarding
this Agreement or the subject matter thereof as soon as reasonably practicable under the circumstances prior to its scheduled release. Except under extraordinary circumstances, when the following notice may not be possible but in which event the
press release will still be provided to the other Party for comment before release, each Party shall provide the other with an advance copy of any such announcements at least * * * * * prior to its scheduled release. Each Party
shall have the right to expeditiously review and recommend changes to any such announcement and, except as otherwise required by laws, rules or regulations, the Party whose announcement has been reviewed shall remove any Confidential Information of
the reviewing Party that the reviewing Party reasonably deems to be inappropriate for disclosure. The principles to be observed by PROSENSA and GSK in any such permitted public disclosures with respect to this Agreement shall be: accuracy and
completeness, the requirements of confidentiality under this Article 9, and the normal business practice in the pharmaceutical and biotechnology industries for disclosures by companies comparable to PROSENSA and GSK. Notwithstanding the foregoing,
to the extent information regarding this Agreement has already been publicly disclosed in the same context, either Party may subsequently disclose the same information to the public without the consent of the other Party. Each Party shall be
permitted to disclose the terms of this Agreement, in each case under appropriate confidentiality provisions substantially equivalent to those of this Agreement, to any actual or potential acquirors, investors, merger partners, and professional
advisors. 

  
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	9.4	Termination of Prior Agreement. This Agreement supersedes the Confidentiality Agreement between PROSENSA and GSK dated * * * * *, including
any and all amendments thereto. All information exchanged between the Parties under that agreement shall be deemed Confidential Information hereunder and shall be subject to the terms of this Article 9. 

 

	9.5	 Publications. Neither Party nor its Affiliates shall publish or publicly disclose the results of any of the Research and/or Development
activities conducted by either Party under this Agreement without the prior written consent of the JSC, except as expressly permitted in this Section 9.5 or otherwise in this Agreement. The Parties recognize that it may be useful or required to
publish or publicly disclose the results of Research and Development work on Programs, and each Party (and its Affiliates and Sublicensees) shall be free to publish or publicly disclose such results, subject to the prior review by the JSC for
patentability and protection of its Confidential Information as described in this Section 9.5. For PROSENSA, the publication right conveyed by the preceding sentence shall apply solely to Compounds prior to the exercise of an Option by GSK to
the relevant PROSENSA Collaboration Program, if approved by JSC, such approval not to be unreasonably withheld or delayed. The Party that desires to publish results hereunder shall provide to the JSC and JPS a copy of such proposed abstract,
manuscript, or presentation no less than * * * * * prior to its intended submission for publication. The JSC shall respond in writing promptly and in no event later than * * * * * after receipt of the proposed
material, with one or more of the following: (i) comments on the proposed material, which the publishing Party must consider in good faith, (ii) a specific statement of concern, based upon the need to seek patent protection, or to block
publication if the JSC determines that the proposed disclosure is intellectual property that should be maintained as a trade secret to protect a Compound or any Research and/or Development activities conducted under this Agreement, or (iii) an
identification of the other Party’s Confidential Information that is contained in the material reviewed. In the event of concern over patent protection or whether maintaining a trade secret would be a priority, the publishing Party agrees not
to submit such publication or to make such presentation that contains such information until the JSC through the JPS is given a reasonable period of time (such time to be no less than * * * * *)to seek patent protection for any
material in such 

  
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publication or presentation which it believes is patentable, or to resolve any other issues or to abandon such proposed publication if the JSC reasonably determines in good faith that maintaining
such information as a trade secret is a commercially-reasonable priority. Any Confidential Information of such other Party shall be removed. Furthermore, with respect to any proposed abstracts, manuscripts or summaries of presentations by
investigators or other Third Parties, such materials shall be subject to review under this Section 9.5 to the extent that GSK or PROSENSA (as the case may be) has the right to do so. For clarity, (a) prior to the exercise of the relevant
Option to a given PROSENSA Collaboration Program by GSK, any proposed publication by PROSENSA relating to a PROSENSA Collaboration Program or any Compounds shall be subject to review by the JSC in accordance with the terms of this Section 9.5,
but after the expiration of the relevant Option without exercise by GSK or after the termination of a Program which then reverts to PROSENSA, PROSENSA shall then be free to publish or publicly disclose any results that relate to any Compounds or
PROSENSA Products in such PROSENSA Collaboration Program or PROSENSA Development Program without any review by the JSC under this Section 9.5, unless such proposed disclosure or publication contains any GSK IP, in which case JSC shall have the
right to review and approve such disclosure as stated under this Section 9.5 above, and (b) after the exercise by GSK of its Option to a Program, except as required by law or securities regulations, PROSENSA shall not have the right to
make any publication relating to such PROSENSA Collaboration Program or any Compounds or GSK Development Compounds or GSK Products without the prior written consent of the JSC, and GSK shall have the right to make any such publication relating to
such PROSENSA Collaboration Program or any Compounds or GSK Development Compounds or GSK Products subject to review by the JSC under this Section 9.5. Notwithstanding the above, if PROSENSA seeks to publish a publication regarding the Exon 51
Program, it shall provide GSK with an advance copy of such publication and obtain GSK’s prior consent before publication. 

  

	9.6	 Clinical Trial Register. Each of GSK and PROSENSA shall have the right to publish summaries of results from any human Clinical Trials conducted
by such Party under this Agreement on its Clinical Trials registry, without requiring the consent of the other Party, subject to the last sentence of this Section 9.6; provided, however, that GSK shall have no right, without the consent of
PROSENSA, to so 

  
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publish data generated by PROSENSA prior to GSK’s exercise of its Option with respect to the relevant Compounds under the relevant PROSENSA Collaboration Program, and, after the exercise of
its Option to such PROSENSA Collaboration Program, GSK shall have the right to so publish any previously existing and/or any subsequently arising data that is or may be generated by either PROSENSA or GSK or by their respective Affiliates or
Sublicensees with respect to the relevant Compound(s) without obtaining the consent of PROSENSA, except with respect to any Compounds which are being pursued under a PROSENSA Development Program after termination by GSK of such Compounds as GSK
Development Compounds or after GSK declines to exercise its Option with respect to such PROSENSA Collaboration Program. In addition, after the exercise of its Option by GSK to a particular PROSENSA Collaboration Program, PROSENSA shall not have the
right to publish any of such data, without the prior consent of GSK, pertaining to the relevant Compounds or the PROSENSA Collaboration Program, except with respect to any Compounds which are being pursued under a PROSENSA Development Program after
termination by GSK of such Compounds as GSK Development Compounds. The Parties shall discuss and reasonably cooperate in order to facilitate the process to be employed in order to ensure the publication of any such summaries of human Clinical Trials
data and results as required on the Clinical Trial registry of each respective Party, and shall provide the other Party via submission to the Joint Patent Subcommittee established under Section 3.1(h), at least * * * * *
prior notice to review the Clinical Trials results to be published for the purposes of preparing any necessary Patent filings. 

  

	10	REPRESENTATIONS AND WARRANTIES 

  

	10.1	Representations and Warranties of Both Parties. Each Party hereby represents and warrants to the other Party, as of the Effective Date, that:

  

	 	(a)	such Party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has full corporate power and authority
to enter into this Agreement and to carry out the provisions hereof; 

  

	 	(b)	such Party has taken all necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder;

  
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	 	(c)	this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against it in accordance
with the terms hereof; 

  

	 	(d)	the execution, delivery and performance of this Agreement by such Party does not conflict with any agreement or any provision thereof, or any instrument or
understanding, oral or written, to which it is a Party or by which it is bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over such Party; 

 

	 	(e)	no government authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, under any applicable laws, rules or regulations currently in effect, is or will be necessary for, or in connection with, the transaction contemplated by this Agreement or any other agreement or
instrument executed in connection herewith, or for the performance by it of its obligations under this Agreement and such other agreements; and 

  

	 	(f)	it has not employed (and, to the best of its knowledge without further duty of inquiry, has not used a contractor or consultant that has employed) any individual or
entity debarred by the FDA (or subject to a similar sanction of EMEA), or, to the best of its knowledge without further duty of inquiry, any individual who or entity that is the subject of an FDA debarment investigation or proceeding (or similar
proceeding of EMEA), in the conduct of any pre-clinical activities or clinical studies of Compounds. 

  

	10.2	Representations, Warranties and Covenants of PROSENSA. PROSENSA hereby represents and warrants to GSK, as of the Effective Date, and covenants to GSK during the
Term (or the applicable portion thereof) as applicable for Sections 10.2(c) and 10.2.(e), that: 

  

	 	(a)	To its knowledge, PROSENSA is the owner of, or has Control via a license to, the PROSENSA IP; 

  
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	 	(b)	To its knowledge, PROSENSA has the right to grant, and no consent is or will be required from any Third Party in connection with, all rights, licenses and sublicenses
it purports to grant to GSK with respect to the PROSENSA IP or PROSENSA’s interest in Joint IP under this Agreement; 

  

	 	(c)	PROSENSA has not withheld from GSK any material data or any material correspondence, including without limitation any correspondence to or from any Regulatory
Authority, in existence as of the Effective Date with respect to the PROSENSA Collaboration Programs or Compounds that it is aware would have a material adverse effect upon GSK’s scientific, commercial, safety and regulatory assessment of the
liabilities of the collaboration between the Parties as contemplated under this Agreement. Further, Exhibit H includes an index of the data room contents to which GSK has been given access; 

 

	 	(d)	To its knowledge, PROSENSA has disclosed or provided access to as of the Effective Date, and thereafter until the exercise or expiration of the Option with respect to a
PROSENSA Collaboration Program shall disclose to GSK and exchange, all material data and information and all correspondence to or from any Regulatory Authority then available, regardless of whether such data, correspondence and information would
have a positive or negative impact on the potential commercial, scientific or strategic value or attractiveness of the Compounds, that is in PROSENSA’s reasonable business judgment material to a reasonable assessment by GSK of the scientific,
commercial, safety, and regulatory liabilities of the Compounds to be considered by GSK in deciding whether or not to exercise its Option with respect to such PROSENSA Collaboration Program; 

 

	 	(e)	During the Term until the exercise or expiration of an Option with respect to a PROSENSA Collaboration Program, PROSENSA will not knowingly use any compound in such
PROSENSA Collaboration Program that, to its knowledge, is encumbered by any Third Party lien (other than general liens created in the ordinary course of business which are not specific to any of the PROSENSA IP or to any Joint IP) or restriction or
any Third Party right or obligation that would conflict or interfere with any of the rights or licenses granted or to be granted to GSK hereunder pursuant to the exercise of such Option or by operation of the provisions of Article 12; and

  
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	10.3	Mutual Covenants. Each Party hereby covenants to the other Party that: 

 

	 	(a)	All employees of such Party or its Affiliates working under this Agreement will be under the obligation to assign all right, title and interest in and to their
inventions and discoveries, whether or not patentable, to such Party as the sole owner thereof; 

  

	 	(b)	Such Party will not employ (or, to the best of its knowledge without further duty of inquiry, will not use any contractor or consultant that employs) any individual or
entity debarred by the FDA (or subject to a similar sanction of EMEA) or, to the best of its knowledge without further duty of inquiry, any individual who or entity that is the subject of an FDA debarment investigation or proceeding (or similar
proceeding of EMEA), in the conduct of its activities under any Program; 

  

	 	(c)	 Such Party shall (a) perform its activities pursuant to this Agreement in compliance with good laboratory and clinical practices and cGMP, where
appropriate, in each case as applicable under the laws and regulations of the country and the state and local government wherein such activities are conducted; (b) with respect to the care, handling and use in Research and Development
activities hereunder of any non-human animals by or on behalf of such Party, at all times comply (and shall ensure compliance by any of its subcontractors) with all applicable federal, state and local laws, regulations and ordinances, and also with
the most current best practices for comparable-sized pharmaceutical or biotechnology companies for the proper care, handling and use of animals in pharmaceutical Research and Development activities, and at all times with the “3R
Principles” (reducing the number of animals used, replacing animals with non-animal methods whenever possible and refining the Research techniques used), subject to the other Party’s reasonable right of inspection; (c) promptly and in
good faith undertake reasonable corrective steps and measures to remedy the situation to the extent that any significant deficiencies are identified as a result of such inspection; and (d) with respect to any biological samples obtained from

  
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humans, obtain the appropriate informed consents in advance for the use of all such human biological samples, and use such samples at all times within the scope of the relevant informed consents;

  

	 	(d)	Neither Party shall, during the Term, grant any right or license or encumbrance or lien of any kind (other than general liens created in the ordinary course of business
which are not specific to any of the PROSENSA IP, the GSK IP, or to any Joint IP) to any Third Party relating to any of the intellectual property rights it owns or Controls which would conflict or interfere with any of the rights or licenses granted
or to be granted to the other Party hereunder pursuant to the provisions of Article 4 or by operation of the provisions of Article 12; and 

  

	 	(e)	Each Party will notify the other Party in writing promptly in the event that it has actual knowledge of the material breach of any covenant under Section 10.2 or
this Section 10.3 or the material breach of any representation or warranty provided by either Party under Section 10.1 or by PROSENSA under Section 10.2. 

 

	10.4	Disclaimer. Except as otherwise expressly set forth in this Agreement, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS
OR IMPLIED, INCLUDING ANY WARRANTY THAT ANY PATENTS ARE VALID OR ENFORCEABLE OR THAT THEIR EXERCISE DOES NOT INFRINGE ANY PATENT RIGHTS OF THIRD PARTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
Without limiting the generality of the foregoing, each Party disclaims any warranties with regards to: (a) the success of any study or test commenced under this Agreement, (b) the safety or usefulness for any purpose of the technology or
materials, including any Compounds, it provides or discovers under this Agreement; and/or (c) the validity, enforceability, or non-infringement of any intellectual property rights or technology it provides or licenses to the other Party under
this Agreement. 

  

	11	INDEMNIFICATION; INSURANCE 

  

	11.1	 Indemnification by GSK. GSK shall indemnify, defend and hold harmless PROSENSA and its Affiliates, and its or their respective directors,
officers, employees and agents, from and against any and all liabilities, damages, losses, costs and expenses, including, but not limited to, the reasonable fees of 

  
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attorneys (collectively, “Losses”), arising out of or resulting from any and all Third Party suits, claims, actions, proceedings or demands (“Claims”) based
upon: 

  

	 	(a)	the negligence, recklessness or wrongful intentional acts or omissions of GSK and/or its Affiliates and/or Sublicensees and its or their respective directors, officers,
employees and agents, in connection with GSK’s performance of its obligations or exercise of its rights under this Agreement; 

  

	 	(b)	any breach of any representation or warranty or express covenant made by GSK under Article 10; or 

 

	 	(c)	the Development that is actually conducted by and/or on behalf of GSK (excluding any Development carried out by and/or on behalf of PROSENSA hereunder), the handling
and storage by and/or on behalf of GSK of any chemical agents or other compounds for the purpose of conducting Development by or on behalf of GSK, and the manufacture, marketing, commercialization and sale by GSK, its Affiliate or Sublicensee of any
Compound or GSK Product; 

 except, in each case above, to the extent such Claim arose out of or resulted
from or is attributable to the negligence, recklessness or wrongful intentional acts or omissions of PROSENSA and/or its Affiliates and/Sublicensees, or their respective directors, officers, employees or agents. 

 

	11.2	Indemnification by PROSENSA. PROSENSA shall indemnify, defend and hold harmless GSK and its Affiliates, and its or their respective directors, officers,
employees and agents, from and against any and all Losses, arising out of or resulting from any and all Third Party Claims based upon: 

  

	 	(a)	the negligence, recklessness or wrongful intentional acts or omissions of PROSENSA and/or its Affiliates and/or its Sublicensees and/or its or their respective
directors, officers, employees and agents, in connection with PROSENSA’s performance of its obligations or exercise of its rights under this Agreement; 

 

	 	(b)	any breach of any representation or warranty or express covenant made by PROSENSA under Article 10; or 

  
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	 	(c)	the Research and/or Development actually conducted by or on behalf of PROSENSA (excluding any Research and Development carried out by or on behalf of GSK or its
Affiliate, Sublicensee or subcontractor, provided however that the Research and Development which is to be carried out by or on behalf of PROSENSA hereunder shall not be considered or interpreted to be Research and Development carried out by or on
behalf of GSK), the handling and storage by and/or on behalf of PROSENSA of any chemical agents or other compounds for the purpose of conducting Research and/or Development by or on behalf of PROSENSA, and the manufacture, marketing,
commercialization and sale by PROSENSA, its Affiliate or Sublicensee of any Compound or PROSENSA Product; 

except, in each case above, to the extent such Claim arose out of or resulted from or is attributable to the negligence, recklessness or
wrongful intentional acts or omissions of GSK and/or its Affiliate and/or Sublicensees, or their respective directors, officers, employees and agents. 
  

	11.3	Procedure. In the event that any person (an “Indemnitee”) entitled to indemnification under Section 11.1 or Section 11.2 is seeking
such indemnification, such Indemnitee shall (i) inform, in writing, the indemnifying Party of the claim as soon as reasonably practicable after such Indemnitee receives notice of such claim, (ii) permit the indemnifying Party to assume
direction and control of the defense of the claim (including the sole right to settle it at the sole discretion of the indemnifying Party, taking into consideration in good faith any reasonable concerns or objections raised by the Indemnitee;
provided that such settlement does not impose any obligation on, or otherwise adversely affect, the Indemnitee or other Party), (iii) cooperate as reasonably requested (at the expense of the indemnifying Party) in the defense of the
claim, and (iv) undertake all reasonable steps to mitigate any loss, damage or expense with respect to the claim(s). 

  

	11.4	 Settlement. A settlement or consent judgment or other voluntary final disposition of a suit under this Article 11 may not be entered into
without the prior written consent of the Party not bringing the suit, such consent not to be unreasonably withheld or delayed; provided that such settlement, consent 

  
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judgment or other disposition does not admit the invalidity or unenforceability of the relevant Patent Rights in the PROSENSA Patent Rights, GSK Patent Rights, or Joint Patent Rights, and
provided further, that any rights granted under the relevant Patent Rights to continue the infringing activity in such settlement, consent judgment or other disposition shall be limited to those rights that the granting Party otherwise has the right
to grant, and provided further, that any settlement, consent judgment or other disposition shall not include the grant of any license, covenant or other rights to any Third Party that would limit or interfere with or reduce the scope of the subject
matter included under the exclusive licenses to the Exon 51 Program or to be granted to GSK pursuant to the exercise of any of its Options to Programs under Section 4.2, and further provided that such settlement does not impose any obligation
on, or otherwise adversely affect the other Party. 

  

	11.5	Insurance.  

  

	 	(a)	PROSENSA’s Insurance Obligations. PROSENSA shall maintain, at its cost, with effect from the Effective Date and during the Term thereafter, adequate
insurance against liability and other risks associated with its activities contemplated by this Agreement, including but not limited to its Clinical Trials and its indemnification obligations herein, in such amounts and on such terms as are
customary for prudent practices in the biotechnology industry for the activities to be conducted by it under this Agreement. 

  

	 	(b)	GSK’s Insurance Obligations. GSK hereby represents and warrants to PROSENSA that it is self-insured against liability and other risks associated with its
activities and obligations under this Agreement in such amounts and on such terms as are customary for prudent practices for large pharmaceutical companies in the pharmaceutical industry for the activities to be conducted by it under this Agreement.
GSK shall furnish to PROSENSA evidence of such self-insurance upon written request. 

  

	11.6	 LIMITATION OF LIABILITY. EXCEPT FOR A BREACH OF ARTICLE 9 OR FOR CLAIMS OF A THIRD PARTY THAT ARE SUBJECT TO INDEMNIFICATION UNDER THIS ARTICLE
11 OR AS OTHERWISE EXPRESSLY STATED IN THIS AGREEMENT, NEITHER PROSENSA 

  
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NOR GSK, NOR ANY OF THEIR AFFILIATES WILL BE LIABLE TO THE OTHER PARTY TO THIS AGREEMENT OR ITS AFFILIATES FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, RELIANCE OR PUNITIVE DAMAGES OR
LOST PROFITS, LOST DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, WHETHER LIABILITY IS ASSERTED IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT PRODUCT LIABILITY), INDEMNITY OR CONTRIBUTION, AND IRRESPECTIVE OF WHETHER THAT PARTY OR
ANY REPRESENTATIVE OF THAT PARTY HAS BEEN ADVISED OF, OR OTHERWISE MIGHT HAVE ANTICIPATED THE POSSIBILITY OF, ANY SUCH LOSS OR DAMAGE. 

  

	12	TERM AND TERMINATION 

  

	12.1	Term; Expiration. This Agreement shall become effective as of the Effective Date and, unless earlier terminated pursuant to the other provisions of this Article
12, shall expire as follows: 

  

	 	(a)	On a Product-by-Product and country-by-country basis, on the date of the expiration of all payment obligations under this Agreement with respect to such Product in such
country; 

  

	 	(b)	In its entirety upon the expiration of all payment obligations under this Agreement with respect to the last Product in all countries in the Territory; and

  

	 	(c)	On a Program-by-Program basis when no Compound or Product is being Researched, Developed or commercialized by either Party hereunder pursuant to a given PROSENSA
Collaboration Program or GSK Development Program or PROSENSA Development Program. 

 The period from the Effective
Date until the date of expiration of this Agreement in its entirety, or as the case may be, until the date of the expiration of this Agreement in part with respect to a given Product or Program, may be referred to herein as the
“Term.” 
  

	12.2	Termination for Cause.  

  

	 	(a)	 Termination for Material Breach. Either Party (the “Non-breaching Party”) may, without prejudice to any other remedies
available to it at law or in equity, terminate this Agreement, either on a Program-by-

  
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Program basis or in its entirety, as may be appropriate to protect the interest of the Non-breaching Party arising from such alleged breach, in the event the other Party (the “Breaching
Party”) shall have breached or defaulted in the performance of any of its material obligations hereunder either with respect to a particular Program or the Agreement as a whole, and such default shall have continued for
* * * * * after written notice thereof was provided to the Breaching Party by the Non-breaching Party, such notice describing with particularity and in detail the alleged material breach. Subject to Section 12.2(b), any such
termination of the Agreement under this Section 12.2 shall become effective at the end of such * * * * * period, unless the Breaching Party has cured any such breach or default prior to the expiration of such
* * * * * period, or if such breach is not susceptible to cure within such * * * * * period even with the use of Commercially Reasonable Efforts, the Non-Breaching Party’s right to termination shall be
suspended only if and for so long as the Breaching Party has provided to the Non-Breaching Party a written plan that is reasonably calculated to effect a cure, such plan is acceptable to the Non-Breaching Party (or to the arbitrators, in the event
of arbitration pursuant to Section 13.2), and the Breaching Party commits to and does carry out such plan. The right of either Party to terminate this Agreement or a portion of this Agreement, as provided in this Section 12.2 shall not be
affected in any way by such Party’s waiver or failure to take action with respect to any previous default. 

  

	 	(b)	Disagreement. If the Parties reasonably and in good faith disagree as to whether there has been a material breach, the Party that seeks to dispute that there has
been a material breach may contest the allegation in accordance with Section 13.1. The cure period for any allegation made in good faith as to a material breach under this Agreement will run from the date that written notice was first provided
to the Breaching Party by the Non-breaching Party, but shall be suspended if so agreed or ordered pursuant to Sections 13.1 and 13.2. 

  
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	 	(c)	Termination of Patents from the License under Section 4.2 for Patent Challenge by GSK. If GSK or any of its Affiliates, Licensees or Sublicensees:
(a) commences or otherwise voluntarily determines to participate in (other than as may be necessary or reasonably required to assert a cross-claim or a counter-claim or to respond to a court request or order or administrative law request or
order) any action or proceeding (including any patent opposition or re-examination proceeding), challenging or denying the validity of any PROSENSA Patent Rights or Joint Patent Rights or any claim thereof, or (b) actively assists any other
Person (other than as may be necessary or reasonably required to assert a cross-claim or a counter-claim or to respond to a court request or order or administrative law request or order) in bringing or prosecuting any action or proceeding (including
any patent opposition or re-examination proceeding) challenging or denying the validity of any of such Patents or any claim thereof, PROSENSA shall have the right to exclude from the scope of the license granted to GSK or its Affiliate or its or
their Sublicensee under Section 4.2 of this Agreement only the applicable PROSENSA Patent Rights that were specifically cited and challenged by GSK as described above, upon * * * * * written notice to GSK, unless GSK or its
Affiliate or Sublicensee, as applicable, promptly terminates any such challenge within * * * * * after its receipt of such notice from PROSENSA. For clarity, GSK shall not be in material breach of this Agreement, nor shall
PROSENSA have the right to terminate any Program or this Agreement for any action of GSK or its Affiliates or Sublicensees qualifying under this Section 12.2(c). 

 

	12.3	GSK Unilateral Termination Rights. GSK shall have the right, at its sole discretion and without any penalty or liability, exercisable at any time during the
Term, to terminate this Agreement either in its entirety or on a Program-by-Program basis, for any reason or for no reason at all, upon * * * * * prior written notice to PROSENSA, in each case subject to the obligations set forth
in Section 12.5(b). 

  

	12.4	Termination for Insolvency.  

  

	 	(a)	 Either Party may terminate this Agreement if, at any time, the other 

  
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Party shall file in any court or agency pursuant to any statute or regulation of any state or country, a petition in bankruptcy or insolvency or for reorganization (other than reorganization by
virtue of mergers or consolidations with any other entity or as a result of any other transaction or series of transactions (such as a listing on a public recognised stock exchange or fund raising from existing or new investors) all in the ordinary
course of business) or for an arrangement or for the appointment of a receiver or trustee of the Party or of substantially all of its assets, or if the other Party proposes a written agreement of composition or extension of substantially all of its
debts (other than in the ordinary course of business), or if the other Party shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within * * * * *
after the filing thereof, or if the other Party shall propose or be a Party to any dissolution or liquidation, or if the other Party shall make an assignment of substantially all of its assets for the benefit of creditors. 

 

	12.5	Effect of Termination or Expiration. 

  

	 	(a)	Upon Expiration. Following the expiration of the Term pursuant to Section 12.1, the following terms shall apply: 

 

	 	(i)	Subject to the terms and conditions of this Agreement, following expiration of the Term with respect to a GSK Product in a country pursuant to Section 12.1(a), GSK
shall have an exclusive, fully-paid and royalty-free right and license, with the right to grant sublicenses, under the Exclusively Licensed IP solely to continue to make, have made, use, sell, offer to sell and import such GSK Product in the Field
in such country, for so long as it continues to do so. 

  

	 	(ii)	 Subject to the terms and conditions of this Agreement, following expiration of the Term with respect to a PROSENSA Product in a country pursuant to
Section 12.1(a), PROSENSA shall have an exclusive, fully-paid and royalty-free right and license, with the right to grant sublicenses, under the GSK IP and GSK’s share in any

  
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Joint IP solely to continue to make, have made, use, sell, offer to sell and import such PROSENSA Product in the Field in such country, for so long as it continues to do so.

  

	 	(iii)	Subject to the terms and conditions of this Agreement, following expiration of the Term with respect to this Agreement in its entirety pursuant to Section 12.1(b),
GSK shall have an exclusive, fully-paid and royalty-free right and license, with the right to grant sublicenses, under the Exclusively Licensed IP, solely to continue to make, have made, use, sell, offer to sell and import GSK Products in the Field
in the Territory, for so long as it continues to do so. 

  

	 	(iv)	Subject to the terms and conditions of this Agreement, following expiration of the Term with respect to this Agreement in its entirety pursuant to Section 12.1(b),
PROSENSA shall have an exclusive, fully-paid and royalty-free right and license, with the right to grant sublicenses, under the GSK IP and GSK’s share in any Joint IP solely to continue to make, have made, use, sell, offer to sell and import
PROSENSA Products in the Field in the Territory, for so long as it continues to do so. 

  

	 	(b)	Upon Unilateral Termination by GSK. In the event of a unilateral termination of this Agreement in its entirety or any Program by GSK pursuant to Sections 5.3(b),
7.3 or 12.3, the following terms shall apply: 

  

	 	(i)	Notwithstanding anything contained herein to the contrary, all licenses granted to GSK with respect to Compounds and GSK Products in the terminated Program (or, in the
case of termination of the entire Agreement, all Compounds and GSK Products) shall terminate, each such GSK Product shall be deemed to be a PROSENSA Product and PROSENSA shall have the exclusive right, at its sole discretion, to Research, Develop
and commercialize such PROSENSA Product in the Territory in the Field, alone or with any Third Party or through any Sublicensee, Affiliate or subcontractor without any obligation to GSK, subject to the applicable payment obligations under
Section 6.5; 

  
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	 	(ii)	as of the date of notice of such termination, GSK shall not be required to use Commercially Reasonable Efforts to progress any GSK Products in the terminated Program(s)
under this Agreement, and as of the effective date of such termination, GSK will cease any and all Development and commercialization activities with respect to Compounds included in a terminated Program (or in the case of termination of the entire
Agreement, all Programs); provided, however, that nothing in this Section 12.5(b) is intended to limit GSK’s obligations under Section 12.5(e); 

 

	 	(iii)	All unexercised Options with respect to the terminated Program(s) as of the date that PROSENSA receives such notice from GSK shall be cancelled and of no force and
effect; 

  

	 	(iv)	With respect to any Compound in a terminated Program (or in the case of termination of the entire Agreement, all Programs), GSK shall grant, and hereby grants, to
PROSENSA an exclusive right and license, with the right to grant sublicenses, under the GSK IP and GSK’s share in any Joint IP solely to Develop, make, have made, use, sell, offer to sell and import such Compound as a PROSENSA Product in the
Field in the Territory, for so long as it continues to do so, and PROSENSA shall have the exclusive right, at its sole discretion, to Research, Develop and commercialize such Compound as a PROSENSA Product in the Territory in the Field, alone or
with any Third Party or through any Sublicensee, Affiliate or subcontractor without any obligation to GSK; and 

  

	 	(c)	Upon Termination by GSK for Cause or for PROSENSA’s Insolvency. In the event of a termination of this Agreement in its entirety or any Program by GSK
pursuant to Section 12.2(a) for a material breach by PROSENSA, or the entire Agreement pursuant to Section 12.4, the following consequences shall apply, provided however, that no termination shall be effective, and no consequences under
this Section 12.5(c) shall be implemented until a final determination under the provisions of Article 13 has been made with regard to any dispute by a Party as to the existence of an uncured material breach: 

  
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	 	(i)	All Options with respect to the terminated Programs (or in the case of termination of the entire Agreement, all Options) that are unexercised as of the effective date
of termination shall automatically become exercisable, on the effective date of termination, by GSK in accordance with Section 4.2 by written notice to PROSENSA and upon such exercise, the exclusive licence to be granted with respect to each
PROSENSA Collaboration Program to which the Option is being exercised in Section 4.2 shall immediately become effective and PROSENSA hereby grants such exclusive licences to GSK conditional upon the occurrence of such event. Any Options which
are not so exercised upon termination pursuant to this Section 12.5(c)(i) shall be cancelled and of no further force or effect. In respect of any Option which is exercised as a result of the termination, GSK’s obligations to pay the Option
Exercise Fee and any milestone payments that would otherwise be applicable under the provisions of Section 6.2 shall all be cancelled, and the royalty payments that would otherwise be applicable under the provisions of Section 6.3 shall
all be reduced by * * * * *. 

  

	 	(ii)	In the case of termination by GSK of a Program for an uncured material breach or insolvency of PROSENSA that occurred after the exercise by GSK of its Option with
respect to such Program or a termination by GSK of the entire Agreement, in each case pursuant to Section 12.2(a) or Section 12.4, GSK shall retain any exclusive licenses granted in Section 4.1 or 4.2 with respect to the Compounds and
Products in each terminated Program for which GSK has already exercised its Option and GSK shall have the right to exercise any unexercised Options, and GSK’s obligations under Article 6 to make any milestone payments shall remain unchanged,
and the royalty payments that would otherwise be applicable under the provisions of Section 6.3 shall all be reduced by * * * * *. 

 

	 	(iii)	 In the event of termination of the Agreement in its entirety or on a Program-by-Program basis by GSK pursuant to Section 12.2(a),

  
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PROSENSA shall comply with its obligations under Section 4.9 for each terminated Program and all obligations of PROSENSA under Article 7 shall continue in full force and effect on a PROSENSA
Collaboration Program–by-PROSENSA Collaboration Program basis in accordance with its terms; 

  

	 	(iv)	GSK shall cease to have any obligations with respect to diligence or to use Commercially Reasonable Efforts with respect to (i) any Compounds or GSK Products
resulting from any PROSENSA Collaboration Program or any GSK Development Program that was terminated by GSK pursuant to Section 12.2(a), or (ii) all Compounds and GSK Products if the entire Agreement was terminated pursuant to
Section 12.2(a) or 12.4. 

  

	 	(d)	Upon Termination by PROSENSA for Cause or GSK’s Insolvency. In the event that PROSENSA terminates a Program or this Agreement pursuant to
Section 12.2(a) or the entire Agreement pursuant to Section 12.4, the following consequences shall apply, provided however, that no termination shall be effective, and no consequences under this Section 12.5(d) shall be implemented
until a final determination under the provisions of Article 13 has been made with regard to any dispute by a Party as to the existence of an uncured material breach: 

 

	 	(i)	All Options with respect to the terminated Programs (or in the case of termination of the entire Agreement, all Options) that are unexercised as of the effective date
of termination shall be cancelled and of no force and effect. For clarity, GSK shall not be permitted to exercise any Option after receiving notice of PROSENSA’s termination under Section 12.2(a) without PROSENSA’s prior written
consent, unless and until PROSENSA agrees, or it is determined pursuant to the process set forth under Section 13.1 or Section 13.2, that GSK has cured the applicable breach in a timely manner or GSK has not been in material breach or GSK
has been in breach but the matter has been resolved in favor of allowing GSK to exercise its Option; 

  

	 	(ii)	 With respect to any Compound in a terminated Program (or in the 

  
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case of termination of the entire Agreement, any Program), at PROSENSA’s option, GSK will grant, and hereby grants, to PROSENSA an exclusive royalty free right and license, with the right to
grant sublicenses, under any GSK IP and GSK’s share in any Joint IP solely to Develop, make, have made, use, sell, offer to sell and import such Compounds as PROSENSA Products in the Field in the Territory, for so long as it continues to do so,
and PROSENSA shall have the exclusive right, at its sole discretion, to Research, Develop and commercialize such Compound as a PROSENSA Product in the Territory in the Field, alone or with any Third Party or through any Sublicensee, Affiliate or
subcontractor without any obligation to GSK. 

  

	 	(e)	Obligations of GSK with Respect to Compounds in PROSENSA Products. Upon termination of a Program or this Agreement by PROSENSA pursuant to Section 12.2(a)
or the termination of the entire Agreement by PROSENSA pursuant to Section 12.4, or termination of a Program or this Agreement by GSK pursuant to Section 12.3: 

 

	 	(i)	GSK shall complete any ongoing trials of GSK Products; provided, however, that if PROSENSA terminates this Agreement pursuant to Sections 12.2(a) or 12.4, PROSENSA may
instead elect to have GSK (i) transition oversight of such ongoing trials to PROSENSA as soon as reasonably practicable and in any event within * * * * * and (ii) GSK shall reimburse PROSENSA for all costs associated
with PROSENSA completing such trials. Notwithstanding the foregoing, GSK may prematurely suspend or terminate any such trial if (A) a priori protocol defined stopping rules are met for safety or efficacy or (B) unacceptable safety signals
are observed by the Data and Safety Monitoring Board with respect to the Product or related Compound that present an unacceptable risk to patients participating in such trials; 

 

	 	(ii)	GSK shall promptly and in any event within * * * * * return to PROSENSA, free of charge, all Know-How and materials transferred by PROSENSA to GSK
with respect to each such Compound and shall transfer stocks of Product free of charge to PROSENSA; 

  
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	 	(iii)	GSK shall transfer to PROSENSA within * * * * *, at PROSENSA’s request, any and all data and Know-How pertaining to the applicable Compounds
that are necessary for the continued Development and commercialization of such Compounds in its possession and other related materials, including without limitation copies of all Clinical Trial data and results, and all other Know-How and the like
developed by or for the benefit of GSK relating to such Compounds and other documents to the extent relating to such Compounds that are necessary in the continued Development and commercialization of such Compounds as PROSENSA Products (including
without limitation material documents and agreements relating to the sourcing, manufacture, promotion, distribution, sale or use of a Product) throughout the Territory; and 

 

	 	(iv)	GSK will transfer and assign ownership of all regulatory filings and approvals relating to such Compounds (including any NDAs) to PROSENSA (or its designated
Affiliate), and send any correspondence to regulatory authorities, execute any instruments, or take any other steps PROSENSA reasonably deems necessary to effectuate such transfers. 

 

	12.6	Accrued Rights; Surviving Provisions of the Agreement. 

  

	 	(a)	Termination, relinquishment or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of any Party
prior to such termination, relinquishment or expiration including the payment obligations under Article 6 hereof and any and all damages or remedies arising from any breach hereunder. For clarity, all payment obligations which have accrued and
are due as of the termination, relinquishment or expiration date shall immediately become due and payable. Such termination, relinquishment or expiration shall not relieve any Party from obligations which are expressly indicated to survive
termination of this Agreement. 

  

	 	(b)	 The provisions of Articles 9, 11 and 13, 4 (by operation of the provisions 

  
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of Section 12.5 as applicable), Sections 5.3 (by operation of the provisions of Section 12.5, as applicable), 6.2-6.12 (by operation of the provisions of Section 12.5, as
applicable), 8.1, 10.5, 12.5 and 12.6 as well as any applicable definitions in Article 1, shall survive the termination or expiration of this Agreement for any reason, in accordance with their respective terms and conditions, and for the duration
stated, and where no duration is stated, shall survive indefinitely. Article 9 shall survive for a period of five (5) years. 

  

	13	MISCELLANEOUS 

  

	13.1	Dispute Resolution.  

  

	 	(a)	In the event of a dispute arising under this Agreement between the Parties, either Party shall have the right to refer such dispute to the respective Executive
Officers, and such Executive Officers shall attempt in good faith to resolve such dispute. Except to the extent that a Party has final decision-making authority under Section 3.1(d) or 3.2(d), or to the extent that such dispute is subject to
final resolution by the Executive Officers under Section 3.2(d), if the Parties are unable to resolve a given dispute pursuant to this Section 13.1 within thirty (30) Calendar Days of referring such dispute to the Executive Officers,
either Party may have the given dispute settled by binding arbitration pursuant to Section 13.2. Where a Party has final decision-making authority under Section 3.1(d) or 3.2(d), or such dispute is subject to final resolution by the
Executive Officers under Section 3.2(d), such final decision or resolution shall not be subject to further review under this Agreement or otherwise under law or equity, provided, however, that such final decision-making shall not constitute a
waiver by the other Party of any of its rights or remedies for breach of this Agreement in law or equity. 

  

	 	(b)	 In the event of a dispute between the Parties which provides for resolution by expert determination of the matter shall first be referred to the
Executive Officers for resolution under Section 13.1(a), and if not resolved, shall be referred to a mutually agreed independent Third Party with expertise in the issue under dispute who shall be instructed to settle such dispute in a manner
consistent with good industry 

  
 110

	 	
standards in the pharmaceutical industry. In the event that the Parties are unable to agree on the identity of an independent Third Party expert within fourteen (14) Calendar Days of
starting discussions to reach agreement either Party may request that the President of the Association of the British Pharmaceutical Industry and/or the President of the BioIndustry Association (BIA) as may be agreed by the Parties (or his or her
nominee) appoint an expert on behalf of the Parties provided such person is not affiliated with either Party. Such expert determination shall be final. The Parties will cooperate with expert and comply with any procedural rules or requests made by
the expert. The expert’s costs shall be shared equally by the Parties unless otherwise ordered by the expert. 

  

	13.2	Arbitration  

  

	 	(a)	If any controversy, claim or dispute arises under this Agreement which the Parties are unable to resolve in accordance with Section 13.1(a), the Parties shall
negotiate in good faith to resolve such dispute. If the Parties are unable to resolve the dispute to their mutual satisfaction within * * * * * after any Party gives written notice to such effect to the other Party, then any
Party may submit the dispute to arbitration for final settlement, which arbitration shall be conducted in accordance with the procedures set out in this Section 13.2. 

 

	 	(b)	Any controversy, claim or dispute arising out of or relating to this Agreement shall be settled by arbitration in accordance with the rules of the London Court of
International Arbitration, by three (3) arbitrators to be selected in accordance with such rules of that body, provided, that each Party shall choose one arbitrator and the two chosen arbitrators shall choose the third arbitrator. The
arbitrators shall be qualified by education, experience and training to decide the issues to be arbitrated. 

  

	 	(c)	Any such arbitration shall be conducted in English in London, England. The decision of the arbitrators shall be final, binding and conclusive upon the Parties.

  
 111

	 	(d)	The arbitrators shall have the authority to grant any interim award and to order any interim or permanent relief as they may deem necessary or advisable under the
circumstances, including, but not limited to, a grant of injunctive relief or an order of specific performance. 

  

	 	(e)	The Parties shall bear equally the costs and expenses of arbitration, and each such Party shall bear the costs and expenses of its own counsel, technical advisors and
expert witnesses, unless the decision of the arbitrators shall otherwise direct. 

  

	 	(f)	Any arbitration award or any interim relief or award rendered in accordance with this Section 13.2 shall be satisfied promptly and without the need for the
prevailing Party to seek enforcement, which may be sought in any court having competent jurisdiction. In the event resort to enforcement proceedings are required for any interim or final award or decision, the Party which has not complied with the
arbitral award or decision, whether interim or final, shall be responsible for both Parties’ reasonable attorneys’ fees and all direct costs in the enforcement proceeding. 

 

	13.3	Governing Law. This Agreement and any dispute arising from the performance or breach hereof including non-contractual obligations shall be governed by and
construed and enforced in accordance with the laws of England without reference to conflicts of laws principles. 

  

	13.4	 Assignment. Either Party may assign this Agreement to any Affiliate of such Party without the consent of the other Party; provided, that
such Party provides the other Party with written notice of such assignment and remains fully liable for the performance of such Party’s obligations hereunder by such Affiliate. Further, each Party may assign this Agreement without the consent
of the other Party to its successor in interest by way of merger, acquisition, or sale of all or substantially all of its assets to which one or more Programs of this Agreement relates; provided, that such Party provides the other Party with written
notice of such assignment; provided further, that if such assignment involves a Change of Control Event, then PROSENSA will notify GSK prior to the closing of such Change of Control Event and GSK shall have the rights set out in Section 4.3.
The terms and conditions of this Agreement shall be binding upon and shall inure to the 

  
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benefit of the successors, heirs, administrators and permitted assigns of the Parties. Any purported assignment in violation of this Section 13.4 shall be null and void.

  

	13.5	Performance Warranty. Each Party hereby acknowledges and agrees that it shall be responsible for the full and timely performance as and when due under,
and observance of all the covenants, terms, conditions and agreements set forth in this, Agreement by its Affiliate(s) and Sublicensees. 

  

	13.6	Force Majeure. No Party shall be held liable or responsible to the other Party nor be deemed to be in default under, or in breach of any provision of,
this Agreement for failure or delay in fulfilling or performing any obligation (other than a payment obligation) of this Agreement when such failure or delay is due to force majeure, and without the fault or negligence of the Party so failing
or delaying. For purposes of this Agreement, force majeure is defined as causes beyond the control of the Party, including acts of God; acts, acts of terrorism, regulations, or laws of any government; war; civil commotion; destruction of
production facilities or materials by fire, flood, earthquake, explosion or storm; labor disturbances; epidemic; and failure of public utilities or common carriers. In such event PROSENSA or GSK, as the case may be, shall immediately notify the
other Party of such inability and of the period for which such inability is expected to continue. The Party giving such notice shall thereupon be excused from such of its obligations under this Agreement as it is thereby disabled from performing for
so long as it is so disabled for up to a maximum of ninety (90) days, after which time PROSENSA and GSK shall promptly meet to discuss in good faith how to best proceed in a manner that maintains and abides by the Agreement. To the extent
possible, each Party shall use reasonable efforts to minimize the duration of any force majeure. 

  

	13.7	Notices. Any notice or request required or permitted to be given under or in connection with this Agreement shall be deemed to have been sufficiently
given if in writing and personally delivered or sent by certified mail (return receipt requested), facsimile transmission (receipt verified), or overnight express courier service (signature required), prepaid, to the Party for which such notice is
intended, at the address set forth for such Party below: 

  
 113

			
	If to PROSENSA,
addressed to:	  	 Attention: VP Business Development
 Prosensa Therapeutics BV
 Wassenaarseweg 72
 2333 AL Leiden
 The Netherlands
 Fax: +31 71 3322088
  

Attention: Chief Executive Officer
 Prosensa
Holding BV
 Wassenaarseweg 72
 2333 AL
Leiden
 The Netherlands
 Fax: +31 71
3322088

		
	If to GSK, addressed
to:	  	Attention: Worldwide Business Development
		  	GlaxoSmithKline
		  	709 Swedeland Road
		  	P.O. Box 1539, MCULO2318
		  	King of Prussia
		  	PA 19406-0939
		  	USA Fax: +1 610 270 6299
		
	with a copy to:	  	Attention: Vice President and Associate General Counsel,
		  	R&D Legal Operations
		  	GlaxoSmithKline
		  	2301 Renaissance Boulevard
		  	Mail Code RN0220
		  	King of Prussia, PA 19406
		  	Fax: +1 610 787 7084

 or to such other address for such Party as it shall have specified by like notice to
the other Parties, provided that notices of a change of address shall be effective only upon receipt thereof. If delivered personally or by facsimile transmission, the date of delivery shall be deemed to be the date on which such notice or request
was given. If sent by overnight express courier service, the date of delivery shall be deemed to be the next Business Day after such notice or request was deposited with such service. If sent by certified mail, the date of delivery shall be deemed
to be the third (3rd) Business Day after such notice
or request was deposited with the U.S. Postal Service. 
  

	13.8	 Waiver. Neither Party may waive or release any of its rights or interests in this Agreement except in writing. The failure of either Party to
assert a right hereunder or to insist upon compliance with any term or condition of this 

  
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Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition. No waiver by either Party of any condition or term in any one
or more instances shall be construed as a continuing waiver of such condition or term or of another condition or term. 

  

	13.9	Severability. If any provision hereof should be held invalid, illegal or unenforceable in any jurisdiction, the Parties shall negotiate in good faith a valid,
legal and enforceable substitute provision that most nearly reflects the original intent of the Parties and all other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in order to carry out
the intentions of the Parties hereto as nearly as may be possible. Such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction. 

 

	13.10	Entire Agreement. This Agreement, together with the Schedules and Exhibits hereto, set forth all the covenants, promises, agreements, warranties,
representations, conditions and understandings between the Parties hereto and supersede and terminate all prior agreements and understanding between the Parties. There are no covenants, promises, agreements, warranties, representations, conditions
or understandings, either oral or written, between the Parties other than as set forth herein and therein. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties hereto unless reduced to writing
and signed by the respective authorized officers of the Parties. 

  

	13.11	Independent Contractors. Nothing herein shall be construed to create any relationship of employer and employee, agent and principal, partnership or joint venture
between the Parties. Each Party is an independent contractor. Neither Party shall assume, either directly or indirectly, any liability of or for the other Party. Neither Party shall have the authority to bind or obligate the other Party and neither
Party shall represent that it has such authority. 

  

	13.12	Headings; Interpretation. Headings used herein are for convenience only and shall not in any way affect the construction of or be taken into consideration in
interpreting this Agreement. Further, in this Agreement: (a) the word “including” shall be deemed to be followed by the phrase “without limitation” or like expression; (b) the singular shall include the plural and vice
versa; and (c) masculine, feminine and neuter pronouns and expressions shall be interchangeable. 

  
 115

	13.13	Books and Records. Any books and records to be maintained under this Agreement by a Party or its Affiliates or Sublicensees shall be maintained in accordance
with Dutch generally accepted accounting principles or International Financial Reporting Standards (IFRS) in the case of PROSENSA, and shall be maintained in accordance with IFRS in the case of GSK, consistently applied, except that the same need
not be audited. 

  

	13.14	Further Actions. Each Party shall execute, acknowledge and deliver such further instruments, and do all such other acts, as may be reasonably necessary or
appropriate in order to carry out the expressly stated purposes and the clear intent of this Agreement. 

  

	13.15	Parties in Interest. All of the terms and provisions of this Agreement shall be binding upon, and shall inure to the benefit of and be enforceable by the Parties
hereto and their respective successors, heirs, administrators and permitted assigns. 

  

	13.16	Contracts (Rights of Third Parties) Act 1999. A person (other than an Affiliate) who is not a Party to this Agreement has no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third Party which exists or is available apart from that Act. 

 

	13.17	Construction of Agreement. The terms and provisions of this Agreement represent the results of negotiations between the Parties and their representatives, each
of which has been represented by counsel of its own choosing, and neither of which has acted under duress or compulsion, whether legal, economic or otherwise. Accordingly, the terms and provisions of this Agreement shall be interpreted and construed
in accordance with their usual and customary meanings, and each of the Parties hereto hereby waives the application in connection with the interpretation and construction of this Agreement of any rule of law to the effect that ambiguous or
conflicting terms or provisions contained in this Agreement shall be interpreted or construed against the Party whose attorney prepared the executed draft or any earlier draft of this Agreement. 

  
 116

	13.18	Supremacy. In the event of any express conflict or inconsistency between this Agreement and a Development Plan or any Schedule or Exhibit hereto, the terms of
this Agreement shall control. The Parties understand and agree that the Schedules and Exhibits hereto are not intended to be the final and complete embodiment of any terms or provisions of this Agreement, and are to be updated from time to time
during the Term, as appropriate and in accordance with the provisions of this Agreement. 

  

	13.19	Counterparts. This Agreement may be signed in counterparts, each and every one of which shall be deemed an original, notwithstanding variations in format or file
designation which may result from the electronic transmission, storage and printing of copies of this Agreement from separate computers or printers. Facsimile signatures and signatures transmitted via PDF shall be treated as original signatures.

 [Signature page to follow] 

  
 117

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this Research
and Development Collaboration and License Agreement to be executed by their duly authorized representatives as of the Effective Date. 
  

			
	PROSENSA Holding BV
		
	By:	 	 /s/ Hans GCP Schikan

	Name:	 	 Hans GCP Schikan

	Title:	 	 CEO

  

			
	Glaxo Group Limited
		
	By:	 	 /s/ Paul Williamson

	Name:	 	 Paul Williamson

	Title:	 	 For and on behalf of

Edinburgh Pharmaceutical Industries Limited
 Corporate Director

  
 118

 Exhibit A 
 General Guidelines for Clinical Candidate Selection Criteria 
 Candidate Selection
Criteria for DMD Program 3 & 4 
 JSC to prepare, review, modify, update and approve each Milestone Criteria, Milestone Report and
Proof of Concept Study Design 
 * * * * * 

  
 119

 * * * * * 

  
 120

 Exhibit B 
 General Guidelines for criteria for the 6 month Safety & Data review of the PhI/II Extension 
 Study for PRO051 and PRO044 
  

			
	Six month Safety and Data review during PhI/II extension study criteria for the Exon 51 Program and the Exon 44 Program.	  	 Following a discussion with Prosensa on 24 Sept, success criteria for this study are now considered related * * * *
*

  
 121

 Exhibit C 
 Proof of Concept Criteria 
 I. Clinical Proof of Concept Criteria for PRO044

 The following criteria must be met to consider Proof of Concept achieved for PRO044: 

* * * * * 
 II. General Guidelines for
non-clinical POC Criteria for all PROSENSA Collaboration Programs 
 JSC to prepare, review, modify, update and approve each Milestone
Criteria, Milestone Report and Proof of Concept Study Design 
 Non-clinical Safety Assessment 

 

			
	 Study Activity
	  	 Acceptable Profile

	Genotoxicity	  	 * * * * * 

		
	Safety Pharmacology	  	 * * * * *

		
	Repeat Dose Toxicology	  	 * * * * * 

		
	Reprotoxicity	  	 * * * * * 

		
	Immunotoxicity & Carcinogenicity	  	 * * * * * 

		
	Special Toxicity Studies	  	 * * * * * 

  
 122

 Metabolism 
  

			
	 Study Activity
	  	 Acceptable Profile

 * * * * * 
 Pharmacokinetics 

 

			
	 Study Activity
	  	 Acceptable Profile

 * * * * * 
 Chemical Manufacture and Control 

 

			
	 Study Activity
	  	 Acceptable Profile

 * * * * * 

  
 123

 Exhibit D 
 General Guidelines for Prosensa Participation in PRO051 Clinical Development 

Roles & Responsibilities 
 The
next table summarizes the possible roles and responsibilities between both Parties. * * * * * . 
  

			
	 Area and/or activity
	  	 Lead1

	 Non-clinical
	  	
	 * * * * *
	  	
		
	 CMC
	  	
	 Extension Study
	  	
	 * * * * *
	  	
	 Commercialisation
	  	
	 * * * * * 
	  	
	 MAA and NDA
	  	 GSK

  

	1.	* * * * * 

	2.	One or two GSK representatives permitted to attend meetings 

  
 124

 Exhibit E 
 General Guidelines for PROSENSA Participation in Commercial Activities in the EU Territory under Section 5.2(b) for the commercialisation of the Exon 51 Program, the Exon 44 Program, DMD Program 3
and DMD Program 4 
 * * * * * 

  
 125

 Exhibit F 
 General Guidelines for PROSENSA Commercial Rights in the EU Commercial Territory (ECT) if PROSENSA Exercises its ECT Commercial Rights Option under Section 5.2(a) for the commercialisation of DMD
Program 3 and/or DMD Program 4 Products 
 * * * * * 

  
 126

 Exhibit G 
 DOCUMENTATION AND MATERIALS TO BE SUPPLIED, AS AVAILABLE, TO GSK BY LICENSOR AND ANY THIRD PARTY CONTRACTORS 
 * * * * * 

  
 127

 * * * * * 

  
 128

 * * * * * 

  
 129

 EXHIBIT H 
 GSK Due Diligence – list of shared documents 
 Please note that this list is not
exhaustive. Additional documents and information were made available to GSK prior to the Effective Date. 
 * * * * * 

  
 130

 * * * * * 

  
 131

 * * * * * 

  
 132

 * * * * * 

  
 133

 * * * * * 

  
 134

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