Document:

2011 Equity Incentive Plan and Form of Stock Option Agreement

 Exhibit 10.3 
 CEMPRA, INC. 
 2011 EQUITY INCENTIVE PLAN 

Approved by the Board: October 11, 2011 
 Approved by the Stockholders:                     , 2011 

Termination Date:
                    , 2021 
  

	1.	GENERAL.

 (a)
Establishment. Cempra, Inc., a Delaware corporation, hereby establishes the Cempra, Inc. 2011 Equity Incentive Plan (as may be amended from time to time, the “Plan”) effective as
of                     , 2011, the date of its approval by the stockholders of the Company (the “Effective
Date”). 
 (b) Successor to Prior Plan. This Plan is intended as the
successor to the Company’s Sixth Amended and Restated 2006 Stock Plan (the “Prior Plan”). Following the Effective Date, no additional stock awards shall be granted under the Prior Plan. Any shares remaining available for
issuance pursuant to the exercise of options or settlement of stock awards under the Prior Plan shall become available for issuance pursuant to Stock Awards granted hereunder, as provided in Section 3(a) hereof. Any shares subject to
outstanding stock awards granted under the Prior Plan that expire or terminate for any reason prior to exercise or settlement shall become available for issuance pursuant to Stock Awards granted hereunder, as provided in Section 3(b) hereof.
All outstanding stock awards granted under the Prior Plan shall remain subject to the terms of the Prior Plan with respect to which they were originally granted. 
 (c) Eligible Award Recipients. The persons eligible to receive Stock Awards are Employees, Directors and Consultants. 
 (d) Available Awards. The Plan provides for the grant of the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Restricted Stock Awards,
(iv) Restricted Stock Unit Awards, (v) Stock Appreciation Rights, (vi) Performance Stock Awards and (vii) Other Stock Awards. 
 (e) Purpose. The purpose of the Plan is to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward persons eligible to receive Stock
Awards as set forth in Section 1(c), and by motivating such persons to contribute to the growth and profitability of the Company. 
  

	2.	ADMINISTRATION.

 (a)
Administration by Board. The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as provided in Section 2(c). 

(b) Powers of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of the
Plan: 
 (i) To determine from time to time (A) which of the persons eligible under the Plan shall be
granted Stock Awards; (B) when and how each Stock Award shall be granted; (C) what type or combination of types of Stock Awards shall be granted; (D) the provisions of each Stock Award granted (which need not be identical), including
the time or times when a person shall be permitted to receive cash or Common Stock pursuant to a Stock Award; and (E) the number of shares of Common Stock with 

 
respect to which a Stock Award shall be granted to each such person. 
 (ii) To determine the provisions of each Stock Award granted (which need not be identical), including without limitation, (A) the exercise or purchase price of shares of Common Stock purchased
pursuant to any Stock Award, (B) the method of payment for shares of Common Stock purchased pursuant to any Stock Award, (C) the method for satisfaction of any tax withholding obligation arising in connection with Stock Award, including by
the withholding or delivery of shares of Common Stock, (D) the timing, terms and conditions of the exercisability or vesting of any Stock Award or any shares acquired pursuant thereto, (E) the Performance Criteria necessary to satisfy
Performance Goals applicable to any Stock Award and the extent to which such Performance Goals have been attained, (F) the time of the expiration of any Stock Award, (G) the effect of the Participant’s termination of Continuous
Service on any of the foregoing, and (H) all other terms, conditions and restrictions applicable to any Stock Award or shares acquired pursuant thereto not inconsistent with the terms of the Plan. 

(iii) To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke
rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient
to make the Plan or Stock Award fully effective. 
 (iv) To settle all controversies regarding the Plan
and Stock Awards granted under it. 
 (v) To accelerate, continue, extend or defer the time at which a
Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time
during which it will vest. 
 (vi) To suspend or terminate the Plan at any time. Suspension or termination
of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant. 

(vii) To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation,
relating to Incentive Stock Options and certain nonqualified deferred compensation under Section 409A of the Code and/or to bring the Plan or Stock Awards granted under the Plan into compliance therewith, subject to the limitations, if any, of
applicable law. However, except as provided in Section 9(a) relating to Capitalization Adjustments, stockholder approval shall be required for any amendment of the Plan that either (A) materially increases the number of shares of Common
Stock available for issuance under the Plan, (B) materially expands the class of individuals eligible to receive Stock Awards under the Plan, (C) materially increases the benefits accruing to Participants under the Plan or materially
reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (D) materially extends the term of the Plan, or (E) expands the types of Stock Awards available for issuance under the Plan, but in each of
(A) through (E) only to the extent required by applicable law or listing requirements. Except as provided above, rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless
(1) the Company requests the consent of the affected Participant, and (2) such Participant consents in writing. 
 (viii) To submit any amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of (A) Section 162(m) of
the Code and the regulations thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation paid to Covered Employees, (B) Section 422 of the Code regarding Incentive Stock
Options, or (C) Rule 16b-3. 

  
 2 

 (ix) To approve forms of Stock Award Agreements for use under the
Plan and to amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide terms more favorable than previously provided in the Stock Award Agreement, subject to any specified limits in the Plan that are not
subject to Board discretion; provided however, that a Participant’s rights under any Stock Award shall not be impaired by any such amendment unless (A) the Company requests the consent of the affected Participant, and (B) such
Participant consents in writing. Notwithstanding the foregoing, subject to the limitations of applicable law, if any, the Board may amend the terms of any one or more Stock Awards without the affected Participant’s consent if necessary to
maintain the qualified status of the Stock Award as an Incentive Stock Option or to bring the Stock Award into compliance with Section 409A of the Code and the related guidance thereunder. 

(x) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to
promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Stock Awards. 
 (xi) To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Directors or Consultants who are foreign nationals or employed outside
the United States. 
 (xii) To effect, at any time and from time to time, with the consent of any
adversely affected Participant, (A) the reduction of the exercise price (or strike price) of any outstanding Option or Stock Appreciation Right under the Plan; (B) the cancellation of any outstanding Option or Stock Appreciation Right
under the Plan and the grant in substitution therefor of (1) a new Option or Stock Appreciation Right under the Plan or another equity plan of the Company covering the same or a different number of shares of Common Stock, (2) a Restricted
Stock Award, (3) a Restricted Stock Unit Award, (4) an Other Stock Award, (5) cash and/or (6) other valuable consideration (as determined by the Board, in its sole discretion); or (C) any other action that is treated as a
repricing under generally accepted accounting principles. 
 (c) Delegation to Committee.

(i) General. The Board may delegate some or all of the administration of the Plan to a Committee or
Committees. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to
delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in the Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such
resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some
or all of the powers previously delegated. 
 (ii) Section 162(m) and Rule 16b-3
Compliance. In the sole discretion of the Board, the Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, or solely of two or more Non-Employee Directors, in accordance with
Rule 16b-3. In addition, the Board or the Committee, in its sole discretion, may (A) delegate to a Committee who need not be Outside Directors the authority to grant Stock Awards to eligible persons who are either (I) not then Covered
Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Stock Award, or (II) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code, or
(B) delegate to a Committee who need not be Non-Employee Directors the authority to grant Stock Awards to eligible persons who are not then 

  
 3 

 
subject to Section 16 of the Exchange Act. 
 (d) Delegation to
Officers. The Board may delegate to one or more Officers the authority to do one or both of the following (i) designate Employees of the Company or any of its Subsidiaries to be recipients of Options (and, to the extent permitted by
Delaware law, other Stock Awards) and the terms thereof, and (ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such Employees; provided, however, that the Board resolutions regarding such
delegation shall specify the total number of shares of Common Stock that may be subject to the Stock Awards granted by such Officer and that such Officer may not grant a Stock Award to himself or herself. Notwithstanding anything to the contrary in
this Section 2(d), the Board may not delegate to an Officer authority to determine the Fair Market Value of the Common Stock pursuant to Section 12(u)(ii) below. 

(e) Repricing. The Board shall not approve a program providing for either (a) the cancellation of outstanding Stock Awards
and the grant in substitution therefor of new Stock Awards having a lower exercise or purchase price or (b) the amendment of outstanding Stock Awards to reduce the exercise price thereof, unless the stockholders of the Company have approved
such an action within twelve (12) months prior to such an event. This paragraph shall not be construed to apply to “issuing or assuming a stock option in a transaction to which section 424(a) applies,” within the meaning of
Section 424 of the Code.
 (f) Effect of Board’s Decision. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 
 (g) Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or the Committee or as officers or employees of the Company, members of the Board
or the Committee and any officers or employees of the Company to whom authority to act for the Board, the Committee or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees,
actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in
connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a
judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties;
provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 

 

	3.	SHARES SUBJECT TO THE PLAN.

(a) Share Reserve. Subject to the provisions of Section 9(a) relating to Capitalization Adjustments, the aggregate number
of shares of Common Stock that may be issued pursuant to Stock Awards under the Plan is equal to fourteen million five hundred thousand (14,500,000) shares (the “Share Reserve”). In addition, the number of shares of
Common Stock available for issuance under the Plan shall automatically increase on January 1st of each year for a period of nine (9) years commencing on January 1, 2013 and ending on (and including) January 1, 2021, in an amount
equal to the lesser of (i) four percent (4%) of the total number of shares of Common Stock outstanding on December 31st of the preceding calendar year, or (ii) one million 

  
 4 

 
(1,000,000) shares. Notwithstanding the foregoing, the Board may act prior to the first day of any calendar year, to provide that there shall be no increase in the share reserve for such calendar
year or that the increase in the share reserve for such calendar year shall be a lesser number of shares of Common Stock than would otherwise occur pursuant to the preceding sentence. For clarity, the limitation in this Section 3(a) is a
limitation in the number of shares of Common Stock that may be issued pursuant to the Plan. Accordingly, this Section 3(a) does not limit the granting of Stock Awards except as provided in Section 7(a). Shares may be issued in connection
with a merger or acquisition as permitted by, as applicable, NASDAQ Marketplace Rule 4350(i)(1)(A)(iii), NYSE Listed Company Manual Section 303A.08, AMEX Company Guide Section 711 or other applicable stock exchange rules, and such issuance
shall not reduce the number of shares available for issuance under the Plan. If an outstanding Stock Award for any reason expires or is terminated or canceled without having been exercised or settled in full, or if shares of Common Stock acquired
pursuant to a Stock Award subject to forfeiture or repurchase are forfeited or repurchased by the Company at the Participant’s purchase price to effect a forfeiture of unvested shares upon termination of Continuous Service, the shares of Common
Stock allocable to the terminated portion of such Stock Award or such forfeited or repurchased shares of Common Stock shall be added back to the Share Reserve and again be available for issuance under the Plan. Shares of Common Stock shall not be
deemed to have been issued pursuant to the Plan with respect to any portion of a Stock Award (other than a Stock Appreciation Right that may be settled in shares of Common Stock and/or cash) that is settled in cash. Shares withheld in satisfaction
of tax withholding obligations pursuant to Section 8(g) shall not again become available for issuance under the Plan. Upon exercise of a Stock Appreciation Right, whether in cash or shares of Common Stock, the number of shares available for
issuance under the Plan shall be reduced by the gross number of shares for which the Stock Appreciation Right is exercised. If the exercise price of an Option is paid by “net exercise” (as described in Section 5(c)(iv)) or tender to
the Company, or attestation to the ownership, of shares of Common Stock owned by the Participant, the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which the Option is exercised.

 (b) Additions to the Share Reserve. The Share Reserve also shall be increased from time to time by a number of
shares equal to the number of shares of Common Stock that (i) are issuable pursuant to awards outstanding under the Prior Plan as of the Effective Date and (ii) but for the termination of the Prior Plan as of the Effective Date, would
otherwise have reverted to the share reserve of the Prior Plan pursuant to the provisions thereof. 
 (c) Incentive Stock
Option Limit. Notwithstanding anything to the contrary in this Section 3(c), subject to the provisions of Section 9(a) relating to Capitalization Adjustments, the aggregate maximum number of shares of Common Stock that may be
issued pursuant to the exercise of Incentive Stock Options shall be fourteen million five hundred thousand (14,500,000) shares of Common Stock. 
 (d) Source of Shares. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market.

  

	4.	ELIGIBILITY.

 (a)
Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to Employees. Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants. 

(b) Ten Percent Stockholders. A Ten Percent Stockholder shall not be granted an Incentive

  
 5 

 
Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant and the Option is not
exercisable after the expiration of five (5) years from the date of grant. 
 (c) Section 162(m)
Limitation. Subject to the provisions of Section 9(a) relating to Capitalization Adjustments, at such time as the Company may be subject to the applicable provisions of Section 162(m) of the Code, no Employee shall be eligible to
be granted during any calendar year Stock Awards whose value is determined by reference to an increase over an exercise or strike price of at least one hundred percent (100%) of the Fair Market Value of the Common Stock on the date the Stock
Award is granted covering more than seven million two hundred fifty thousand (7,250,000) shares of Common Stock. 
 (d)
Consultants. A Consultant shall be eligible for the grant of a Stock Award only if, at the time of grant, a Form S-8 Registration Statement under the Securities Act (“Form S-8” ) is available to
register either the offer or the sale of the Company’s securities to such Consultant. 
  

	5.	OPTION PROVISIONS.

 Each
Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates
are issued, a separate certificate or certificates shall be issued for shares of Common Stock purchased on exercise of each type of Option. If an Option is not specifically designated as an Incentive Stock Option, then the Option shall be a
Nonstatutory Stock Option. The provisions of separate Options need not be identical; provided, however, that each Option Agreement shall conform to (through incorporation of provisions hereof by reference in the Option Agreement or otherwise)
the substance of each of the following provisions: 
 (a) Term. Subject to the provisions of Section 4(b)
regarding Ten Percent Stockholders, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Option Agreement. 

(b) Exercise Price. Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, the exercise price of
each Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Option may be granted with an exercise price
lower than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option if such Option is granted pursuant to an assumption or substitution for another option in a manner consistent with the provisions of
Section 409A and Section 424(a) of the Code (whether or not such options are Incentive Stock Options). 
 (c)
Consideration. The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the
methods of payment set forth below. The Board shall have the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the
consent of the Company to utilize a particular method of payment. The methods of payment permitted by this Section 5(c) are: 
 (i) by cash, check, bank draft or money order payable to the Company; 
 (ii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the
receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate 

  
 6 

 
exercise price to the Company from the sales proceeds; 

(iii) by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock; 

(iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of
Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash or other payment from the
Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, further, that shares of Common Stock will no longer be subject to an
Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are reduced to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of
such exercise, and (C) shares are withheld to satisfy tax withholding obligations; or 
 (v) in any
other form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law. 
 (d) Transferability of Options. The Board may, in its sole discretion, impose such limitations on the transferability of Options as the Board shall determine. In the absence of such a
determination by the Board to the contrary, the following restrictions on the transferability of Options shall apply: 
 (i) Restrictions on Transfer. An Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by
the Optionholder; provided, however, that the Board may, in its sole discretion, permit transfer of the Option in a manner that is not prohibited by applicable tax and securities laws upon the Optionholder’s request. 

(ii) Domestic Relations Orders. Notwithstanding the foregoing, an Option may be transferred pursuant to a domestic
relations order, provided, however, that if an Option is an Incentive Stock Option, such Option may be deemed to be a Nonstatutory Stock Option as a result of such transfer. 

(iii) Beneficiary Designation. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to
the Company, in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect Option exercises, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled
to exercise the Option. In the absence of such a designation, the executor or administrator of the Optionholder’s estate shall be entitled to exercise the Option. 
 (e) Vesting of Options Generally. The total number of shares of Common Stock subject to an Option may vest and therefore become exercisable in periodic installments that may or may not be
equal. The Option may be subject to such other terms and conditions on the time or times when it may or may not be exercised (which may be based on the satisfaction of Performance Goals or other criteria) as the Board may deem appropriate. The
vesting provisions of individual Options may vary. The provisions of this Section 5(e) are subject to any Option provisions governing the minimum number of shares of Common Stock as to which an Option may be exercised. 

(f) Termination of Continuous Service. In the event that an Optionholder’s Continuous Service terminates (other than for
Cause or upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as 

  
 7 

 
of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the
Optionholder’s Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the
Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 
 (g) Extension of Termination Date. An Optionholder’s Option Agreement may provide that if the exercise of the Option following the termination of the Optionholder’s Continuous
Service (other than for Cause or upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the
Option shall terminate on the earlier of (i) the expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such
registration requirements, or (ii) the expiration of the term of the Option as set forth in the Option Agreement. In addition, unless otherwise provided in an Optionholder’s Option Agreement, if the sale of the Common Stock received upon
exercise of an Option following the termination of the Optionholder’s Continuous Service (other than for Cause) would violate the Company’s Insider Trading Policy, then the Option shall terminate on the earlier of (i) the expiration
of a period equal to the post-termination exercise period described in Section 5(f) above or Sections 5(h) or 5(i) below after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not
be in violation of the Company’s Insider Trading Policy; or (ii) the expiration of the term of the Option as set forth in the Option Agreement. 
 (h) Disability of Optionholder. In the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or
her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date twelve (12) months
following such termination of Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous
Service, the Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 
 (i) Death of Optionholder. In the event that (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death, or (ii) the Optionholder dies
within the period (if any) specified in the Option Agreement after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise
such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder’s death, but only
within the period ending on the earlier of (A) the date twelve (12) months following the date of death (or such longer or shorter period specified in the Option Agreement), or (B) the expiration of the term of such Option as set forth
in the Option Agreement. If, after the Optionholder’s death, the Option is not exercised within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 

(j) Termination for Cause. Except as explicitly provided otherwise in an Optionholder’s Option Agreement, in the event
that an Optionholder’s Continuous Service is terminated for Cause, the Option shall terminate upon the termination date of such Optionholder’s Continuous Service, and the Optionholder shall be prohibited from exercising his or her Option
from and after the time of such termination of Continuous Service. 

  
 8 

 (k) Non-Exempt Employees. No Option granted to an Employee who is a non-exempt
employee for purposes of the Fair Labor Standards Act shall be first exercisable for any shares of Common Stock until at least six months following the date of grant of the Option. The foregoing provision is intended to operate so that any income
derived by a non-exempt employee in connection with the exercise or vesting of an Option will be exempt from his or her regular rate of pay. 
  

	6.	PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

 (a) Restricted Stock Awards. Each Restricted Stock Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. To the extent
consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be (x) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse;
or (y) evidenced by a certificate, which certificate shall be held in such form and manner as determined by the Board. The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of
separate Restricted Stock Award Agreements need not be identical, provided, however, that each Restricted Stock Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the
substance of each of the following provisions: 
 (i) Consideration. A Restricted Stock Award may be
awarded in consideration for (A) cash, check, bank draft or money order payable to the Company; (B) past or future services actually or to be rendered to the Company or an Affiliate; or (C) any other form of legal consideration that
may be acceptable to the Board in its sole discretion and permissible under applicable law. 
 (ii)
Vesting. Shares of Common Stock awarded under a Restricted Stock Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board. 

(iii) Termination of Participant’s Continuous Service. In the event a Participant’s Continuous
Service terminates, the Company may receive via a forfeiture condition or a repurchase right, any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination of Continuous Service under the terms
of the Restricted Stock Award Agreement. 
 (iv) Transferability. Rights to acquire shares of Common
Stock under the Restricted Stock Award Agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board shall determine in its sole discretion, so long as
Common Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement. 
 (b) Restricted Stock Unit Awards. Each Restricted Stock Unit Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms
and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical, provided, however, that each Restricted Stock Unit
Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

(i) Consideration. At the time of grant of a Restricted Stock Unit Award, the Board will determine the
consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award. The consideration to be paid (if any) by the Participant for each share of Common Stock subject to a
Restricted Stock Unit Award may be paid in any 

  
 9 

 
form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law. 

(ii) Vesting. At the time of the grant of a Restricted Stock Unit Award, the Board may impose such
restrictions or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate. 
 (iii) Payment. A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as
determined by the Board and contained in the Restricted Stock Unit Award Agreement. 
 (iv) Additional
Restrictions. At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject
to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award. 
 (v)
Dividend Equivalents. Dividend equivalents may be credited in respect of shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement. At the sole
discretion of the Board, such dividend equivalents may be converted into additional shares of Common Stock covered by the Restricted Stock Unit Award in such manner as determined by the Board. Any additional shares covered by the Restricted Stock
Unit Award credited by reason of such dividend equivalents will be subject to all the terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they relate. 

(vi) Termination of Participant’s Continuous Service. Except as otherwise provided in the applicable
Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service. 

(vii) Compliance with Section 409A of the Code. Notwithstanding anything to the contrary set forth
herein, any Restricted Stock Unit Award granted under the Plan that is not exempt from the requirements of Section 409A of the Code shall incorporate terms and conditions necessary to avoid the consequences of Section 409A(a)(1) of the
Code. Such restrictions, if any, shall be determined by the Board and contained in the Restricted Stock Unit Award Agreement evidencing such Restricted Stock Unit Award. 
 (c) Stock Appreciation Rights. Each Stock Appreciation Right Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. Stock Appreciation
Rights may be granted as stand-alone Stock Awards or in tandem with other Stock Awards. The terms and conditions of Stock Appreciation Right Agreements may change from time to time, and the terms and conditions of separate Stock Appreciation Right
Agreements need not be identical; provided, however, that each Stock Appreciation Right Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the
following provisions: 
 (i) Term. No Stock Appreciation Right shall be exercisable after the
expiration of ten (10) years from the date of its grant or such shorter period specified in the Stock Appreciation Right Agreement. 
 (ii) Strike Price. Each Stock Appreciation Right will be denominated in shares of Common Stock equivalents. The strike price of each Stock Appreciation Right shall not be less than one hundred
percent (100%) of the Fair Market Value of the Common Stock equivalents subject to the Stock 

  
 10 

 
Appreciation Right on the date of grant. 
 (iii)
Calculation of Appreciation. The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise
of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of shares of Common Stock equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is
exercising the Stock Appreciation Right on such date, over (B) the strike price. 
 (iv)
Vesting. At the time of the grant of a Stock Appreciation Right, the Board may impose such restrictions or conditions to the vesting of such Stock Appreciation Right as it, in its sole discretion, deems appropriate. 

(v) Exercise. To exercise any outstanding Stock Appreciation Right, the Participant must provide written
notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 
 (vi) Payment. The appreciation distribution in respect of a Stock Appreciation Right may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration,
as determined by the Board and set forth in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 
 (vii) Termination of Continuous Service. In the event that a Participant’s Continuous Service terminates (other than for Cause), the Participant may exercise his or her Stock Appreciation
Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (A) the date three
(3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the Stock Appreciation Right Agreement), or (B) the expiration of the term of the Stock Appreciation Right as
set forth in the Stock Appreciation Right Agreement. If, after termination of Continuous Service, the Participant does not exercise his or her Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as
applicable), the Stock Appreciation Right shall terminate. 
 (viii) Termination for Cause. Except as
explicitly provided otherwise in an Participant’s Stock Appreciation Right Agreement, in the event that a Participant’s Continuous Service is terminated for Cause, the Stock Appreciation Right shall terminate upon the termination date of
such Participant’s Continuous Service, and the Participant shall be prohibited from exercising his or her Stock Appreciation Right from and after the time of such termination of Continuous Service. 

(ix) Compliance with Section 409A of the Code. Notwithstanding anything to the contrary set forth herein,
any Stock Appreciation Rights granted under the Plan that are not exempt from the requirements of Section 409A of the Code shall incorporate terms and conditions necessary to avoid the consequences described in Section 409A(a)(1) of the
Code. Such restrictions, if any, shall be determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 
 (d) Performance Stock Awards. A Performance Stock Award is either a Restricted Stock Award or Restricted Stock Unit Award that may be granted or may vest based upon the attainment during a
Performance Period of certain Performance Goals. A Performance Stock Award may, but need not, require the completion of a specified period of Continuous Service. The length of any Performance Period, the Performance Goals to be achieved during the
Performance Period, and the measure of whether 

  
 11 

 
and to what degree such Performance Goals have been attained shall be conclusively determined by the Committee in its sole discretion. Subject to the provisions of Section 9(a) relating to
Capitalization Adjustments, the maximum number of shares that may be granted to any Participant in a calendar year attributable to Performance Stock Awards described in this Section 6(d)(i) shall not exceed seven million two hundred fifty
thousand (7,250,000) shares of Common Stock. In addition, to the extent permitted by applicable law and the applicable Stock Award Agreement, the Board may determine that cash may be used in payment of Performance Stock Awards. 

(e) Other Stock Awards. Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Common
Stock may be granted either alone or in addition to Stock Awards provided for under Section 5 and the preceding provisions of this Section 6. Subject to the provisions of the Plan, the Board shall have sole and complete authority to
determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and
conditions of such Other Stock Awards. 
  

	7.	COVENANTS OF THE COMPANY.

(a) Availability of Shares. During the terms of the Stock Awards, the Company shall keep available at all times the number of
shares of Common Stock required to satisfy such Stock Awards. 
 (b) Securities Law Compliance. The Company shall
seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided,
however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure
to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained. 
 (c) No
Obligation to Notify. The Company shall have no duty or obligation to any holder of a Stock Award to advise such holder as to the time or manner of exercising such Stock Award. Furthermore, the Company shall have no duty or obligation to
warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock Award may not be exercised. The Company has no duty or obligation to minimize the tax consequences of a Stock Award
to the holder of such Stock Award. 
  

	8.	MISCELLANEOUS.

 (a) Use
of Proceeds. Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute general funds of the Company. 
 (b) Corporate Action Constituting Grant of Stock Awards. Corporate action constituting a grant by the Company of a Stock Award to any Participant shall be deemed completed as of the date of
such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received or accepted by, the Participant. 

(c) Stockholder Rights. No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares of Common Stock subject to such Stock Award unless 

  
 12 

 
and until (i) such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms, and (ii) the issuance of the Common Stock pursuant to such exercise
has been entered into the books and records of the Company. 
 (d) No Employment or Other Service Rights. Nothing in
the Plan, any Stock Award Agreement or other instrument executed thereunder or in connection with any Stock Award granted pursuant to the Plan shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the
capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without Cause, (ii) the service of a
Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law
of the state in which the Company or the Affiliate is incorporated, as the case may be. 
 (e) Incentive Stock Option
$100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any
calendar year (under all plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as
Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s). 
 (f) Investment
Assurances. The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and
experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone
or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award
for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (x) the
issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (y) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued
under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock. 

(g) Withholding Obligations. Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole
discretion, satisfy any federal, state or local tax withholding obligation relating to a Stock Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or
by a combination of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock
Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid classification of the Stock Award as a
liability for financial accounting purposes); (iii) withholding cash from a Stock Award settled in cash; (iv) withholding payment from any amounts otherwise payable to the Participant; or (v) by such other method as may be set forth
in the Stock Award Agreement. 

  
 13 

 (h) Electronic Delivery. Any reference herein to a “written”
agreement or document shall include any agreement or document delivered electronically or posted on the Company’s intranet. 
 (i) Deferrals. To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting
or settlement of all or a portion of any Stock Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants. Deferrals by Participants will be made in accordance with Section 409A of the
Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee. The Board is authorized to make deferrals of Stock Awards and determine when, and in what annual percentages,
Participants may receive payments, including lump sum payments, following the Participant’s termination of employment or retirement, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with
applicable law. 
 (j) Compliance with Section 409A. To the extent that the Board determines that any Stock
Award granted under the Plan is subject to Section 409A of the Code, the Stock Award Agreement evidencing such Stock Award shall incorporate the terms and conditions necessary to avoid the consequences described in Section 409A(a)(1) of
the Code. To the extent applicable, the Plan and Stock Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without
limitation any such regulations or other guidance that may be issued or amended after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Board determines that any Stock
Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Board may adopt such amendments to the Plan and the
applicable Stock Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Board determines are necessary or appropriate to (1) exempt the
Stock Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Stock Award, or (2) comply with the requirements of Section 409A of the Code and related Department of
Treasury guidance. 
 9. ADJUSTMENTS UPON CHANGES IN COMMON STOCK; OTHER CORPORATE EVENTS.

(a) Capitalization Adjustments. In the event of a Capitalization Adjustment, the Board shall appropriately and proportionately
adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a); (ii) the class(es) and maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options
pursuant to Section 3(d); (iii) the class(es) and maximum number of securities that may be awarded to any person pursuant to Section 4(c) and 6(d); and (iv) the class(es) and number of securities and price per share of stock
subject to outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. 
 (b) Dissolution or Liquidation. Except as otherwise provided in a Stock Award Agreement, in the event of a dissolution or liquidation of the Company, all outstanding Stock Awards (other than
Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) shall terminate immediately prior to the completion of such dissolution or liquidation, and the
shares of Common Stock subject to the Company’s repurchase rights may be repurchased by the Company notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in
its sole discretion, cause 

  
 14 

 
some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated)
before the dissolution or liquidation is completed but contingent on its completion. 
 (c) Corporate
Transaction. The following provisions shall apply to Stock Awards in the event of a Corporate Transaction unless otherwise provided in the instrument evidencing the Stock Award or any other written agreement between the Company or any
Affiliate and the holder of the Stock Award. 
 (i) Stock Awards May Be Assumed. Except as otherwise
stated in the Stock Award Agreement, in the event of a Corporate Transaction, any surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) may assume or continue any or all Stock Awards
outstanding under the Plan or may substitute similar stock awards for Stock Awards outstanding under the Plan (including but not limited to, awards to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate
Transaction), and any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to Stock Awards may be assigned by the Company to the successor of the Company (or the successor’s parent company, if any),
in connection with such Corporate Transaction. A surviving corporation or acquiring corporation (or its parent) may choose to assume or continue only a portion of a Stock Award or substitute a similar stock award for only a portion of a Stock Award.
The terms of any assumption, continuation or substitution shall be set by the Board in accordance with the provisions of Section 2 hereof. Notwithstanding the foregoing, if such Stock Awards are so assumed, continued or substituted as set forth
above, in the event of a termination of a grantee’s employment or consulting relationship by the Company or its successor other than for Cause in connection with the Corporate Transaction or within one year after the effective time of the
Corporate Transaction, then the greater of (i) fifty percent (50%) of the shares subject to such grantee’s Stock Awards which remain unvested at the effective time of such Corporate Transaction and (ii) the shares subject to such grantee’s
Stock Awards which remain unvested at the effective time of such Corporate Transaction which are scheduled to otherwise vest over the twelve (12) month period after the effective time of such Corporate Transaction shall vest on the date of such
termination and become immediately exercisable, any reacquisition rights or repurchase rights held by the Company with respect to the Stock Awards shall lapse and any of such grantee’s additional remaining unvested Stock Awards that remain
outstanding after the effective time of such Corporate Transaction shall be deemed to vest ratably over the remaining scheduled vesting period, subject to all other terms of the Plan and the applicable Stock Award Agreement. 

(ii) Stock Awards Held by Current Participants. Except as otherwise stated in the Stock Award Agreement, in
the event of a Corporate Transaction in which the surviving corporation or acquiring corporation (or its parent company) does not assume or continue such outstanding Stock Awards or substitute similar stock awards for such outstanding Stock Awards
in accordance with subsection (i) above, then with respect to Stock Awards that have not been assumed, continued or substituted and that are held by Participants whose Continuous Service has not terminated (except for such purposes, a
termination in connection with a Corporate Transaction) prior to the effective time of the Corporate Transaction (referred to as the “Current Participants” ), the vesting of such Stock Awards (and, with respect to
Options and Stock Appreciation Rights, the time at which such Stock Awards may be exercised) shall (contingent upon the effectiveness of the Corporate Transaction), unless otherwise provided by the Board, in its sole discretion, be accelerated in
full to a date prior to the effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall not determine such a date, to the date that is five (5) days prior to the effective time of the Corporate
Transaction), and such Stock Awards shall terminate if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction, and any reacquisition or repurchase rights held by the Company with respect to such Stock Awards
shall lapse (contingent upon the effectiveness of the Corporate Transaction). Notwithstanding the foregoing, if the Board determines in its sole discretion not to vest in full the unvested Stock Awards at the effective time of the Corporate
Transaction and a grantee is terminated other than for Cause at the effective time of the Corporate Transaction or in connection with the Corporate Transaction, then, taking into account for such purpose any partial vesting of unvested Stock Awards
provided by the Board, and subject to the effectiveness of the Corporate Transaction, a minimum of (i) fifty percent (50%) of the shares subject to such grantee’s Stock Awards which remain unvested at the effective time of such Corporate
Transaction and (ii) the shares subject to such grantee’s Stock Awards which remain unvested at the effective time of such Corporate Transaction and are scheduled to otherwise vest over the twelve (12) month period after the effective time of
such Corporate Transaction shall vest and become immediately exercisable as of a date prior to the effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall not determine such a date, to the date that is five
(5) days prior to the effective time of such Corporate Transaction), any reacquisition rights or repurchase rights held by the Company with respect to the Stock Awards shall lapse, and such Stock Awards not exercised at the effective time of such
Corporate Transaction shall terminate, subject to all other terms of the Plan and the applicable Stock Award Agreement. 
 (iii) Stock Awards Held by Persons other than Current Participants. Except as otherwise stated in the Stock Award Agreement, in the event of a Corporate Transaction in which the surviving
corporation or acquiring corporation (or its parent company) does not assume or continue such outstanding Stock Awards or substitute similar stock awards for such outstanding Stock Awards in accordance with subsections (i) or (ii) above,
respectively, then with respect to Stock Awards that have not been assumed, continued or substituted and that are held by persons other than Current Participants, the vesting of such Stock Awards (and, if applicable, the time at which such Stock
Award may be exercised) shall not be accelerated and such Stock Awards (other than a Stock Award consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) shall
terminate if not exercised (if applicable) prior to the effective time of the Corporate Transaction; provided, however, that any reacquisition or repurchase rights held by the Company with respect to such Stock Awards shall not terminate and
may continue to be exercised notwithstanding the Corporate Transaction. 

  
 15 

 (iv) Payment for Stock Awards in Lieu of
Exercise. Notwithstanding the foregoing, in the event a Stock Award will terminate if not exercised prior to the effective time of a Corporate Transaction, the Board may provide, in its sole discretion, that the holder of such Stock Award
may not exercise such Stock Award but will receive a payment, in such form as may be determined by the Board, equal in value to the excess, if any, of (A) the value of the property the holder of the Stock Award would have received upon the
exercise of the Stock Award (including, at the discretion of the Board, any unvested portion of such Stock Award), over (B) any exercise price payable by such holder in connection with such exercise. 

(d) Change in Control. A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after a
Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant. A Stock Award may vest as to all or any portion of
the shares subject to the Stock Award (i) immediately upon the occurrence of a Change in Control, whether or not such Stock Award is assumed, continued, or substituted by a surviving or acquiring entity in the Change in Control, or (ii) in
the event a Participant’s Continuous Service is terminated, actually or constructively, within a designated period before or after the occurrence of a Change in Control. In the absence of such provisions, no such acceleration shall occur.

  

	10.	TERMINATION OR SUSPENSION OF THE PLAN.

 (a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless terminated sooner, the Plan shall terminate on the day before the tenth (10th) anniversary of the earlier of
(i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved by the stockholders of the Company. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 

(b) No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Stock
Award granted while the Plan is in effect except with the written consent of the affected Participant. 
  

	11.	CHOICE OF LAW.

 The law of
the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that state’s conflict of laws rules. 

 

	12.	DEFINITIONS.

 As used in
the Plan, the following definitions shall apply to the capitalized terms indicated below: 
 (a)
“Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 of the Securities Act. The Board shall have the authority to
determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition. 
 (b) “Board” means the Board of Directors of the Company. 
 (c) “Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock
Award after the Effective Date without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split,

  
 16 

 
liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company). Notwithstanding the
foregoing, the conversion of any convertible securities of the Company shall not be treated as a transaction “without the receipt of consideration” by the Company. 
 (d) “Cause” means with respect to a Participant, the occurrence of any of the following events: (i) such Participant’s conviction of, or a plea of nolo contendere
to, a felony; (ii) such Participant’s theft or embezzlement, or attempted theft or embezzlement, of money or property or assets of the Company; (iii) such Participant’s violation of the Company’s drug policy; or
(iv) such Participant’s intentional and willful engagement in misconduct which is materially injurious to the Company. 
 (e) “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events: 

(i) any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control
shall not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company in a transaction or series of related transactions the primary
purpose of which is to obtain financing for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person” ) exceeds the
designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur
(but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or
other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur; 

(ii) there is consummated a merger, consolidation or similar transaction involving (directly or indirectly)
the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities
representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting
power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such
transaction; 
 (iii) the stockholders of the Company approve or the Board approves a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation; 

(iv) there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of
the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than fifty percent
(50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions relative to each other as their Ownership of the outstanding voting securities of the Company
immediately prior to such sale, lease, license or other disposition; or 

  
 17 

 (v) individuals who, on the date the Plan is adopted by the
Board, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for
election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of the Plan, be considered as a member of the Incumbent Board.

 For avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction effected
exclusively for the purpose of changing the domicile of the Company. 
 Notwithstanding the foregoing or any other provision of
the Plan, the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards subject to such
agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply. 

The Board may, in its sole discretion and without a Participant’s consent, amend the definition of “Change in Control” to
conform to the definition of “Change in Control” under Section 409A of the Code, and the regulations thereunder. 

(f) “Code” means the Internal Revenue Code of 1986, as amended. 

(g) “Committee” means a committee of one (1) or more Directors to whom authority has been delegated
by the Board in accordance with Section 2(c). 
 (h) “Common Stock” means the common stock
of the Company. 
 (i) “Company” means Cempra, Inc., a Delaware corporation. 

(j) “Consultant” means any person, including an advisor, who is (i) engaged by the Company or an
Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services. However, service solely as a Director, or
payment of a fee for such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan. 
 (k) “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or
terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no
interruption or termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service; provided, however, if the Entity for which a Participant is rendering services ceases
to qualify as an “Affiliate,” as determined by the Board in its sole discretion, such Participant’s Continuous Service shall be considered to have terminated on the date such Entity ceases to qualify as an Affiliate. To the extent
permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of: (i) any leave of absence approved by the
Board or the chief executive officer of the Company, including sick leave, military leave or any other personal leave; or (ii) transfers between the Company, an Affiliate, or their successors. Notwithstanding the foregoing, a leave of absence
shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any

  
 18 

 
leave of absence agreement or policy applicable to the Participant, or as otherwise required by law. 
 (l) “Corporate Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events: 

(i) a sale or other disposition of all or substantially all, as determined by the Board in its sole
discretion, of the consolidated assets of the Company and its Subsidiaries; 
 (ii) a sale or other
disposition of at least ninety percent (90%) of the outstanding securities of the Company; 

(iii) the consummation of a merger, consolidation or similar transaction following which the Company is not
the surviving corporation; or 
 (iv) the consummation of a merger, consolidation or similar
transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation
or similar transaction into other property, whether in the form of securities, cash or otherwise. 
 (m)
“Covered Employee” shall have the meaning provided in Section 162(m)(3) of the Code. 
 (n)
“Director” means a member of the Board. 
 (o) “Disability” means,
with respect to a Participant, the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, as provided in Section 22(e)(3) and 409A(a)(2)(c)(i) of the Code. 
 (p) “Effective Date” means the date the Plan is approved by the stockholders of the Company, as set forth in Section 1(a) hereof. 

(q) “Employee” means any person employed by the Company or an Affiliate. However, service solely as a
Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for purposes of the Plan. 
 (r) “Entity” means a corporation, partnership, limited liability company or other entity. 
 (s) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (t) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that
“Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the
Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities. 

  
 19 

 (u) “Fair Market Value” means, as of any date, the value of
the Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock
exchange or traded on the Nasdaq Global Select Market or the Nasdaq Global Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock as quoted on such exchange (or the exchange or market with the
greatest volume of trading in the Common Stock) on the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable. 

(ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be determined by the
Board in good faith and in a manner that complies with Section 409A of the Code. 
 (v) “Incentive Stock
Option” means an Option which qualifies as an “incentive stock option” within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 

(w) “Non-Employee Director” means a Director who either (i) is not a current employee or officer of
the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which
disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure
would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
“non-employee director” for purposes of Rule 16b-3. 
 (x) “Nonstatutory Stock
Option” means an Option that does not qualify as an Incentive Stock Option. 
 (y)
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 

(z) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares of Common
Stock granted pursuant to the Plan. 
 (aa) “Option Agreement” means a written agreement between
the Company and an Optionholder evidencing the terms and conditions of an Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 
 (bb) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option. 

(cc) “Other Stock Award” means an award based in whole or in part by reference to the Common Stock which
is granted pursuant to the terms and conditions of Section 6(e). 
 (dd) “Outside Director”
means a Director who either (i) is not a current employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the
Company or an “affiliated corporation” who receives compensation for prior services (other than benefits under a tax-qualified retirement plan) during the taxable year, has not been an officer of the Company or an “affiliated
corporation,” and does not receive remuneration from the Company or an “affiliated corporation,” either directly or indirectly, in any 

  
 20 

 
capacity other than as a Director, or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code. 

(ee) “Own,” “Owned,” “Owner,”
“Ownership” A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or
indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities. 

(ff) “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable,
such other person who holds an outstanding Stock Award. 
 (gg) “Performance Criteria” means the
one or more criteria that the Board shall select for purposes of establishing the Performance Goals for a Performance Period. The Performance Criteria that shall be used to establish such Performance Goals may be based on any one of, or combination
of, the following: (i) earnings per share; (ii) earnings before interest, taxes and depreciation; (iii) earnings before interest, taxes, depreciation and amortization (EBITDA); (iv) total stockholder return; (v) return on
equity; (vi) return on assets, investment, or capital employed; (vii) operating margin; (viii) gross margin; (ix) operating income; (x) net income (before or after taxes); (xi) net operating income; (xii) net
operating income after tax; (xiii) pre- and after-tax income; (xiv) pre-tax profit; (xv) operating cash flow; (xvi) sales or revenue targets; (xvii) orders and revenue; (xviii) increases in revenue or product revenue;
(xix) expenses and cost reduction goals; (xx) improvement in or attainment of expense levels; (xxi) improvement in or attainment of working capital levels; (xxii) economic value added (or an equivalent metric);
(xxiii) market share; (xxiv) cash flow; (xxv) cash flow per share; (xxvi) share price performance; (xxvii) debt reduction; (xxviii) implementation or completion of projects or processes; (xxix) achievement of
product development or commercialization milestones; (xxx) stockholders’ equity; (xxxi) quality measures; and (xxxii) to the extent that a Stock Award is not intended to comply with Section 162(m) of the Code, other measures
of performance selected by the Board. Partial achievement of the specified criteria may result in the payment or vesting corresponding to the degree of achievement as specified in the Stock Award Agreement. The Board shall, in its sole discretion,
define the manner of calculating the Performance Criteria it selects to use for such Performance Period. 
 (hh)
“Performance Goals” means, for a Performance Period, the one or more goals established by the Board for the Performance Period based upon the satisfaction of the Performance Criteria. Performance Goals may be based on a
Company-wide basis, with respect to one or more business units, divisions, Affiliates, or business segments, and in either absolute terms or relative to the performance of one or more comparable companies or the performance of one or more relevant
indices. At the time of the grant of any Stock Awards, the Board is authorized to determine whether, when calculating the attainment of Performance Goals for a Performance Period: (i) to exclude restructuring and/or other nonrecurring charges;
(ii) to exclude exchange rate effects, as applicable, for non-U.S. dollar denominated net sales and operating earnings; (iii) to exclude the effects of changes to generally accepted accounting standards required by the Financial Accounting
Standards Board; (iv) to exclude the effects of any statutory adjustments to corporate tax rates; and (v) to exclude the effects of any “extraordinary items” as determined under generally accepted accounting principles. In
addition, the Board retains the discretion to reduce or eliminate the compensation or economic benefit due upon attainment of Performance Goals. 
 (ii) “Performance Period” means one or more periods of time, which may be of varying and overlapping duration, as the Committee may select, over which the attainment of one
or more Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance Stock Award. 

  
 21 

 (jj) “Performance Stock Award” means an award of shares of
Common Stock which is granted pursuant to the terms and conditions of Section 6(d). 
 (kk)
“Plan” means this Cempra, Inc. 2011 Equity Incentive Plan. 
 (ll) “Prior
Plan” means the Company’s 2004 Stock Plan, as in effect immediately prior to the Effective Date. 
 (mm)
“Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(a). 
 (nn) “Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a
Restricted Stock Award grant. Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

(oo) “Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted
pursuant to the terms and conditions of Section 6(b). 
 (pp) “Restricted Stock Unit Award
Agreement” means a written agreement between the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant. Each Restricted Stock Unit Award Agreement shall be
subject to the terms and conditions of the Plan. 
 (qq) “Rule 16b-3” means Rule 16b-3
promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time. 
 (rr)
“Securities Act” means the Securities Act of 1933, as amended. 
 (ss) “Stock
Appreciation Right” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 6(c). 
 (tt) “Stock Appreciation Right Agreement” means a written agreement between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a
Stock Appreciation Right grant. Each Stock Appreciation Right Agreement shall be subject to the terms and conditions of the Plan. 
 (uu) “Stock Award” means any Option, Restricted Stock Award, Restricted Stock Unit Award, Stock Appreciation Right, Performance Stock Award, or any Other Stock Award granted
under the Plan. 
 (vv) “Stock Award Agreement” means a written agreement between the Company and
a Participant evidencing the terms and conditions of a Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
 (ww) “Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary
voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any
contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, 

  
 22 

 
limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than
fifty percent (50%). 
 (xx) “Ten Percent Stockholder” means a person who Owns (or is deemed to
Own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Affiliate. 

  
 23 

 CEMPRA, INC. 
 2011 EQUITY INCENTIVE PLAN 
 NOTICE OF STOCK OPTION GRANT 

Cempra, Inc. (the “Company”), pursuant to its 2011 Equity Incentive Plan (the “Plan”),
hereby grants to Optionholder an option to purchase the number of shares of the Company’s Common Stock set forth below. This option is subject to all of the terms and conditions as set forth herein and in the Option Agreement, the Plan,
and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. 
  

			
	Optionholder:	  	_____________________________
	Date of Grant	  	__________________
	Grant Number:	  	__________________
	Vesting Commencement Date	  	__________________
	Exercise Price per Share	  	__________________
	Total Number of Shares Granted	  	__________________
	Total Exercise Price	  	__________________
		
	Type of Option:	  	 ̈    Incentive Stock Option
		  	 ̈    Nonstatutory Stock Option
		
	Term/Expiration Date:	  	10 Years/________
		
	Vesting Schedule: 	  	[Insert applicable vesting schedule].
		
	Termination Period:	  	Option may be exercised for up to three (3) months after termination of Continuous Service, except as set out in Section 7 of the Option Agreement (but in no event
later than the Expiration Date); provided that a termination for “Cause” is governed by Section 9 of the Plan, which provides for immediate termination of the Option upon such termination for “Cause.”

 Additional Terms/Acknowledgements: The undersigned Optionholder acknowledges receipt of, and understands and
agrees to, this Option Grant Notice, the Option Agreement, and the Plan. Optionholder also acknowledges receipt of the Cempra, Inc. 2011 Equity Incentive Plan Prospectus. Optionholder further acknowledges that as of the Date of Grant, this
Option Grant Notice, the Option Agreement, and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that subject
with the exception of options previously granted and delivered to Optionholder. 
  

							
	OPTIONHOLDER:	 		 	CEMPRA, INC.
				
	 	 		 	By:	 	 
	 	 		 	Name:	 	 
	Print Name	 		 	Title:	 	 

 Appendix A 

CEMPRA, INC. 
 2011 EQUITY INCENTIVE PLAN 
 OPTION AGREEMENT 

(INCENTIVE STOCK OPTION OR NONSTATUTORY STOCK OPTION) 
 Pursuant to your Option Grant Notice (“Grant Notice”) and this Option Agreement, Cempra, Inc. (the “Company”) has granted you an option under its 2011
Equity Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock indicated in your Grant Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly
defined in this Option Agreement but defined in the Plan shall have the same definitions as in the Plan. 
 The details of your
option are as follows: 
 1. VESTING. Subject to the limitations contained herein, your option will vest as provided
in your Grant Notice, provided that vesting will cease upon the termination of your Continuous Service. 
 2. NUMBER OF
SHARES AND EXERCISE PRICE. The number of shares of Common Stock subject to your option and your exercise price per share referenced in your Grant Notice may be adjusted from time to time for Capitalization Adjustments. 

3. EXERCISE RESTRICTION FOR NON-EXEMPT EMPLOYEES. In the event that you are an Employee eligible for overtime compensation
under the Fair Labor Standards Act of 1938, as amended (i.e., a “Non-Exempt Employee”), you may not exercise your option until you have completed at least six (6) months of Continuous Service measured from
the Date of Grant specified in your Grant Notice, notwithstanding any other provision of your option. 
 4. METHOD OF
PAYMENT. Payment of the exercise price is due in full upon exercise of all or any part of your option. You may elect to make payment of the exercise price in cash or by check or in one or more of the following manners: 

(a) Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall
Street Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of
irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds. 
 (b)
Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, by delivery to the Company (either by actual delivery or attestation) of already-owned shares of Common Stock that
are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes, in the sole discretion of the Company at the time you
exercise your option, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form approved by the Company. Notwithstanding the foregoing, you may not exercise your option by tender to the Company
of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. 

  
 A-1

 (c) Provided that at the time of exercise the Common Stock is
publicly traded and quoted regularly in The Wall Street Journal, and subject to the consent of the Company at the time of exercise, by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of
Common Stock issued upon exercise of your option by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash or other payment from you to
the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided further, however, that shares of Common Stock will no longer be outstanding under your option
and will not be exercisable thereafter to the extent that (1) shares are used to pay the exercise price pursuant to the “net exercise,” (2) shares are delivered to you as a result of such exercise, and (3) shares are
withheld to satisfy tax withholding obligations. 
 5. WHOLE SHARES. You may exercise your option only for whole
shares of Common Stock. 
 6. SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary contained herein,
you may not exercise your option unless the shares of Common Stock issuable upon such exercise are then registered under the Securities Act or, if such shares of Common Stock are not then so registered, the Company has determined that such exercise
and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option also must comply with other applicable laws and regulations governing your option, and you may not exercise your option if the Company
determines that such exercise would not be in material compliance with such laws and regulations. 
 7. TERM. You
may not exercise your option before the commencement or after the expiration of its term. The term of your option commences on the Date of Grant and expires upon the earliest of the following: 

(a) immediately upon the termination of your Continuous Service for Cause; 

(b) three (3) months after the termination of your Continuous Service for any reason other than Cause, your
Disability or death; provided, however, that (i) if during any part of such three (3) month period your option is not exercisable solely because of the condition set forth in Section 6, your option shall not expire until the
earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service and (ii) if (x) you are a Non-Exempt Employee, (y) you terminate
your Continuous Service within six (6) months after the Date of Grant specified in your Grant Notice, and (z) you have vested in a portion of your option at the time of your termination of Continuous Service, your option shall not expire
until the earlier of (A) the later of the date that is seven (7) months after the Date of Grant specified in your Grant Notice or the date that is three (3) months after the termination of your Continuous Service, or (B) the
Expiration Date; 
 (c) twelve (12) months after the termination of your Continuous Service due to
your Disability; 
 (d) twelve (12) months after your death if you die either during your Continuous
Service or within three (3) months after your Continuous Service terminates for any reason other than Cause; 
 (e) the Expiration Date indicated in your Grant Notice; or 

(f) the day before the tenth (10th) anniversary of the Date of Grant. 

  
 A-2

 If your option is an Incentive Stock Option, note that to obtain the federal income tax
advantages associated with an Incentive Stock Option, the Code requires that at all times beginning on the date of grant of your option and ending on the day three (3) months before the date of your option’s exercise, you must be an
employee of the Company or an Affiliate, except in the event of your death or Disability. The Company has provided for extended exercisability of your option under certain circumstances for your benefit but cannot guarantee that your option will
necessarily be treated as an Incentive Stock Option if you continue to provide services to the Company or an Affiliate as a Consultant or Director after your employment terminates or if you otherwise exercise your option more than three
(3) months after the date your employment with the Company or an Affiliate terminates. 
 8. EXERCISE.

(a) You may exercise the vested portion of your option during its term by delivering a Notice of Exercise (in a
form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then
require. 
 (b) By exercising your option you agree that, as a condition to any exercise of your option,
the Company may require you to enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (i) the exercise of your option, or (ii) the disposition of
shares of Common Stock acquired upon such exercise. 
 (c) If your option is an Incentive Stock Option, by
exercising your option you agree that you will notify the Company in writing within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your option that occurs within two
(2) years after the date of your option grant or within one (1) year after such shares of Common Stock are transferred upon exercise of your option. 
 9. TRANSFERABILITY. Your option is not transferable, except by will or by the laws of descent and distribution, and is exercisable during your life only by you. Notwithstanding the foregoing,
by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. In addition, you may transfer your option to a
trust if you are considered to be the sole beneficial owner (determined under Section 671 of the Code and applicable state law) while the option is held in the trust, provided that you and the trustee enter into transfer and other agreements
required by the Company. 
 10. OPTION NOT A SERVICE CONTRACT. Your option is not an employment or service contract,
and nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to continue your employment. In addition, nothing in
your option shall obligate the Company or an Affiliate, their respective stockholders, Boards of Directors, Officers or Employees to continue any relationship that you might have as a Director or Consultant for the Company or an Affiliate.

 11. WITHHOLDING OBLIGATIONS.
 (a) At the time you exercise your option, in whole or in part, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to
you, and otherwise agree to make adequate provision for (including by means of a “cashless exercise” pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the
Company), any sums required to satisfy the federal, state, local and 

  
 A-3

 
foreign tax withholding obligations of the Company or an Affiliate, if any, which arise in connection with the exercise of your option. 

(b) Upon your request and subject to approval by the Company, in its sole discretion, and compliance with any
applicable legal conditions or restrictions, the Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the exercise of your option a number of whole shares of Common Stock having a Fair Market Value, determined
by the Company as of the date of exercise, not in excess of the minimum amount required to be withheld by law (or such lower amount as may be necessary to avoid classification of your option as a liability for financial accounting purposes). Any
adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility. 
 (c) You may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly, you may not be able to exercise your option when desired
even though your option is vested, and the Company shall have no obligation to issue a certificate for such shares of Common Stock or release such shares of Common Stock from any escrow provided for herein unless such obligations are satisfied.

 12. NOTICES. Any notices provided for in your option or the Plan shall be given in writing and shall be deemed
effectively given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.

 13. HEADINGS. The headings of the Sections in this Agreement are inserted for convenience only and shall not
be deemed to constitute a part of this Agreement or to affect the meaning of this Agreement. 
 14. MISCELLANEOUS.

 (a) The rights and obligations of the Company under your option shall be transferable by the
Company to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by, the Company’s successors and assigns. Your rights and obligations under your option may only be
assigned with the prior written consent of the Company. 
 (b) You agree upon request to execute any
further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your option. 
 (c) You acknowledge and agree that you have reviewed your option in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your option and fully
understand all provisions of your option. 
 (d) This Agreement shall be subject to all applicable
laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 (e) All obligations of the Company under the Plan and this Agreement shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 

  
 A-4

 15. GOVERNING PLAN DOCUMENT. Your option is subject to all the provisions
of the Plan, the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In
the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. 
 16. CHOICE OF LAW. The interpretation, performance and enforcement of this Agreement shall be governed by the law of the state of Delaware without regard to such state’s conflicts of
laws rules. 
 17. SEVERABILITY. If all or any part of this Agreement or the Plan is declared by any court or
governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any Section of this Agreement (or part of such a Section)
so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid. 

18. OTHER DOCUMENTS. You hereby acknowledge receipt or the right to receive a document providing the information
required by Rule 428(b)(1) promulgated under the Securities Act.
 19. APPLICATION OF
SECTION 409A. This option is intended to be exempt from the application of Section 409A of the Code (“Section 409A”) pursuant to Treasury Regulation 1.409A-1(b)(6). Notwithstanding the
foregoing or any other provision of this Agreement to the contrary, to the extent that (a) one or more of the payments or benefits received or to be received by you pursuant to this Agreement would constitute deferred compensation subject to
the requirements of Section 409A, and (b) you are a “specified employee” within the meaning of Section 409A, then such payment or benefit (or portion thereof) will be delayed until the earliest date following your
“separation from service” with the Company within the meaning of Section 409A on which the Company can provide such payment or benefit to you without your incurrence of any additional tax or interest pursuant to Section 409A,
with all payments or benefits due thereafter occurring in accordance with the original schedule. 

  
 A-5

 Appendix B 

CEMPRA, INC. 
 2011 EQUITY INCENTIVE PLAN 
 2011 Equity Incentive Plan in the form filed
with this Registration Statement 

 Appendix C 

CEMPRA, INC. 
 2011 EQUITY INCENTIVE PLAN 
 NOTICE OF EXERCISE 

Cempra, Inc.
 Date of Exercise:
                                         
        
 Ladies and Gentlemen: 
 This constitutes notice under my stock option that I elect to purchase the number of shares for the price set forth below. 
  

			
	 Type of option (check one):
	  	 ̈ Incentive                  ̈ Nonstatutory
	 Stock option dated:
	  	___________
	 Number of shares as to which option is exercised:
	  	___________
	 Shares to be issued in name of:
	  	______________________
	 Total exercise price:
	  	$ ___________
	 Cash payment delivered herewith:
	  	$ ___________
	 Value of                  shares of
Cempra, Inc. Common Stock delivered herewith
(1):
	  	$ ___________

 By this exercise, I agree (i) to provide such additional documents as you may require pursuant to
the terms of the Cempra, Inc. 2011 Equity Incentive Plan, (ii) to provide for the payment by me to you (in the manner designated by you) of your withholding obligation, if any, relating to the exercise of this option, and (iii) if this
exercise relates to an incentive stock option, to notify you in writing within fifteen (15) days after the date of any disposition of any of the shares of Common Stock issued upon exercise of this option that occurs within two (2) years
after the date of grant of this option or within one (1) year after such shares of Common Stock are issued upon exercise of this option. 
  

	
	Very truly yours,
	
	  
	 Name:

  
  

	(1)	Shares must meet the public trading requirements set forth in the option. Shares must be valued on the date of exercise in accordance with the terms of the Plan
and the option being exercised, and must be owned free and clear of any liens, claims, encumbrances or security interests. Certificates must be endorsed or accompanied by an executed assignment separate from certificate.Office Lease Agreement

 Exhibit 10.6 
 OFFICE LEASE AGREEMENT 
 between 

PROPERTY RESERVE, INC. 
 as “Landlord” 
 and 

CEMPRA PHARMACEUTICALS, INC., 
 as “Tenant” 
 [Quadrangle IV] 

 TABLE OF CONTENTS 

 

							
	 1.
	  	 DEFINITIONS
	  	 	2	  
	 2.
	  	 BASIC LEASE TERMS
	  	 	2	  
	 3.
	  	 PREMISES
	  	 	3	  
	 4.
	  	 TERM
	  	 	4	  
	 5.
	  	 RENT
	  	 	4	  
	 6.
	  	 SECURITY DEPOSIT
	  	 	5	  
	 7.
	  	 ALTERATIONS
	  	 	5	  
	 8.
	  	 USE AND COMPLIANCE WITH LAWS
	  	 	7	  
	 9.
	  	 MAINTENANCE AND REPAIRS
	  	 	8	  
	 10.
	  	 TENANT’S TAXES
	  	 	9	  
	 11.
	  	 UTILITIES AND SERVICES
	  	 	9	  
	 12.
	  	 RELEASE AND INDEMNIFICATION
	  	 	11	  
	 13.
	  	 INSURANCE
	  	 	11	  
	 14.
	  	 DAMAGE OR DESTRUCTION
	  	 	14	  
	 15.
	  	 CONDEMNATION
	  	 	15	  
	 16.
	  	 ASSIGNMENT AND SUBLETTING
	  	 	15	  
	 17.
	  	 DEFAULT AND REMEDIES
	  	 	17	  
	 18.
	  	 LATE CHARGE AND INTEREST
	  	 	20	  
	 19.
	  	 WAIVER
	  	 	20	  
	 20.
	  	 ENTRY, INSPECTION AND CLOSURE
	  	 	20	  
	 21.
	  	 SURRENDER AND HOLDING OVER
	  	 	21	  
	 22.
	  	 ENCUMBRANCES
	  	 	21	  
	 23.
	  	 ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS
	  	 	22	  
	 24.
	  	 NOTICES
	  	 	22	  
	 25.
	  	 ATTORNEYS’ FEES
	  	 	23	  
	 26.
	  	 QUIET POSSESSION
	  	 	23	  
	 27.
	  	 FORCE MAJEURE
	  	 	23	  
	 28.
	  	 RULES AND REGULATIONS
	  	 	23	  
	 29.
	  	 LANDLORD’S LIABILITY
	  	 	23	  
	 30.
	  	 CONSENTS AND APPROVALS
	  	 	24	  
	 31.
	  	 PARKING
	  	 	24	  
	 32.
	  	 BROKERS
	  	 	24	  
	 33.
	  	 RELOCATION OF PREMISES
	  	 	24	  
	 34.
	  	 ENTIRE AGREEMENT
	  	 	24	  
	 35.
	  	 MISCELLANEOUS
	  	 	24	  
	 36.
	  	 INDEPENDENT COVENANTS/CONTROLLING NATURE OF LEASE
	  	 	25	  
	 37.
	  	 REPRESENTATION OF AUTHORITY
	  	 	25	  
	 38.
	  	 SECURITY INTEREST
	  	 	25	  
	 39.
	  	 OFAC REPRESENTATION
	  	 	25	  
	 40.
	  	 SECURITY OF PREMISES
	  	 	25	  
	 41.
	  	 OTHER OCCUPANTS
	  	 	26	  
	 42.
	  	 BUILDING NAME AND SIGNAGE
	  	 	26	  
	 43.
	  	 SIGNS
	  	 	26	  
	 44.
	  	 BUILDING RENOVATIONS
	  	 	26	  
	 45.
	  	 LIMITATION OF ACTIONS AGAINST LANDLORD
	  	 	27	  
	 46.
	  	 NONDISCLOSURE OF LEASE TERMS
	  	 	27	  
	 47.
	  	 CHANGES REQUESTED BY LENDER
	  	 	27	  
	 48.
	  	 TRANSPORTATION MANAGEMENT
	  	 	27	  
	 49.
	  	 PRIOR DRAFTS
	  	 	27	  
	 50.
	  	 PRIOR LEASE
	  	 	27	  
	 51.
	  	 SEC FILINGS
	  	 	27	  

 EXHIBITS: 
  

							
	 Exhibit A:
	  	Defined Terms	  	Exhibit D:	 	Memorandum of Term
	 Exhibit B:
	  	Floor Plan of Premises	  	Exhibit E:	 	Building Rules
	 Exhibit C:
	  	Work Letter	  		 	

 OFFICE LEASE AGREEMENT 

This Office Lease Agreement is made and entered into as of the 9th day of November, 2011 by and between Property Reserve, Inc., a Utah
nonprofit corporation, as Landlord, and Cempra Pharmaceuticals, Inc., a Delaware corporation, as Tenant. 
 1. DEFINITIONS.
Capitalized terms used in this Lease have the meanings ascribed to them on the attached Exhibit “A”. 
 2. BASIC
LEASE TERMS. The following Basic Lease Terms are hereby incorporated into the Lease: 
  

	 	2.1 Building:	The building commonly known as Quadrangle IV, with an address of 6340 Quadrangle Drive, Chapel Hill, North Carolina. 

 

	 	2.2 Premises:	Suite 100 consisting of approximately 6,074 RSF located on the first floor of the Building. The Premises are depicted on the floor plan(s) attached hereto as Exhibit
B. 

 2.3 Permitted Use: General office. 

2.4 Omitted 
 2.5 Commencement Date of Term: June 1, 2011. 
 2.6 Length
of Term: Forty-Two (42) months. 
 2.7 Base Rent: 

 

													
	Period	  	Rate Per RSF	 	  	Annual Base Rent	 	 	Monthly Base Rent	 
	 6/1/11 – 11/30/11
	  	$	9.75	  	  	$	29,610.75 	(6 mos) 	 	$	4,935.13	  
	 12/1/11 – 5/31/12
	  	$	19.50	  	  	$	59,221.50 	(6 mos) 	 	$	9,870.25	  
	 6/1/12 – 5/31/13
	  	$	20.09	  	  	$	122,026.66	  	 	$	10,168.89	  
	 6/1/13 – 5/31/14
	  	$	20.69	  	  	$	125,671.06	  	 	$	10,472.59	  
	 6/1/14 – 11/30/14
	  	$	21.31	  	  	$	64,718.47 	(6 mos) 	 	$	10,786.41	  

 2.8 Base Year: Calendar year: 2011 

2.9 Tenant’s Share: 9.39% (est.); proportional, based upon 95% of the total RSF in the Building. 

2.10 Work Letter: Work Letter attached as Exhibit C. 

2.11 Security Deposit: $9,870.25 (which the parties acknowledge has been paid by Tenant to Landlord) 

 

					
	2.12 Landlord’s Address for Payment of Rent:	  	Property Reserve, Inc.
		  		  	c/o Cassidy Turley
		  		  	P.O. Box 198975
		  		  	Atlanta, GA 30384-8975
		
	 2.13 Landlord’s Address for Notices:
	  	Property Reserve, Inc.
		  		  	Attn: VP of Property Management
		  		  	5 Triad Center, Suite 450
		  		  	Salt Lake City, Utah 84180

  
 -2-

					
			
		  		  	With a copy to:
			
		  		  	Kilpatrick, Townsend & Stockton, LLP
		  		  	Attn: James C. McCaskill
		  		  	4208 Six Forks Road, Suite 1400
		  		  	Raleigh, North Carolina 27609
		
	 2.14 Tenant’s Address for Notices:
	  	Cempra Pharmaceuticals, Inc.
		  		  	6340 Quadrangle Drive
		  		  	Chapel Hill, North Carolina 27517
		  		  	Attn: Cali Downs
		
	 2.15 Tenant’s Telephone Number:
	  	(919) 313-6616
		
	 2.16 Tenant’s Facsimile Number:
	  	(919) 313-6620
		
	 2.17 Tenant’s Social Security Number or Tax Identification Number:
	  	203905814
		
	 2.18 Tenant’s Information:         Entity Type:
	  	Corporation
		  	                     State
of Origin:
	  	Delaware
		
	 2.19 Tenant’s Broker(s):
	  	Deborah Boucher, Cassidy Turley
		
	 2.20 Omitted
	  	
	
	 2.21 Exhibits. The following Exhibits are attached hereto and incorporated herein by this
reference:

  

			
	 Exhibit A:
	  	Defined Terms
	 Exhibit B:
	  	The Premises
	 Exhibit C:
	  	Work Letter
	 Exhibit D:
	  	Memorandum of Term
	 Exhibit E:
	  	Building Rules
	 Exhibit F:
	  	Description of Project Real Property

 2.22 Memorandum of Lease Terms/First Lease Amendment. Within thirty (30) days after the
Commencement Date of the Term, Landlord and Tenant shall confirm the basic terms and conditions of the Lease using a Memorandum of Lease Terms/First Lease Amendment substantially in the form and content attached hereto as Exhibit D. The terms
set forth in the Memorandum of Lease Terms/First Lease Amendment shall be controlling and supersede any conflicting terms set forth in this Section 2, Basic Lease Terms. 
 The failure of Tenant to execute such Confirmation of Lease Terms/First Lease Amendment shall not affect any obligation of Tenant hereunder or Landlord’s determination of the Commencement Date. If
Tenant fails to execute and deliver such Confirmation of Lease Terms/First Lease Amendment in the form proposed by Landlord, Landlord and any prospective purchaser or encumbrancer may conclusively presume and rely upon the following facts:
(a) that the Premises were in acceptable condition and were delivered in compliance with all of the requirements of this Lease and any Work Letter attached hereto and (b) the Commencement Date is the date specified in the Memorandum of
Lease Terms/First Lease Amendment executed by Landlord. 
 3. PREMISES. Landlord hereby leases to Tenant, and Tenant hereby leases
from Landlord, upon the terms and subject to the conditions of this Lease, the Premises (defined in Subsection 2.2), together with use of all appurtenant exterior common areas, sidewalks, walkways, drive aisles, parking areas and landscaping.

  
 -3-

 4. TERM. The Term shall commence on the Commencement Date of the Term and, unless sooner
terminated, shall expire upon the last day of the calendar month following the length of the Term (defined in Subsection 2.6). Landlord shall deliver possession of the Premises to Tenant on the Commencement Date. 

5. RENT. 
 5.1
Base Rent. Tenant agrees to pay to Landlord the Base Rent (defined in Subsection 2.7) on the first day of each and every calendar month during the Term without notice, deduction or set off. The schedule of Base Rent in Subsection 2.7 is based
upon full calendar months during the Term. 
 5.2 Direct Costs. Tenant shall pay to Landlord the amount of any Direct
Costs within thirty (30) days after receipt of a statement from Landlord for any such Direct Costs. 
 5.3 Expenses.
Prior to the commencement of each calendar year, Landlord shall notify Tenant of Landlord’s estimate of the Expenses for the following calendar year. Commencing on the first day of January of each calendar year and continuing on the first day
of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th) of Tenant’s Share of the estimated Expenses. If Landlord thereafter estimates that Expenses for such year will vary from Landlord’s prior
estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Tenant shall pay the accrued difference between the original and the revised estimate of Expenses within fifteen (15) days after receipt of the revised
estimate, and thereafter pay the revised estimate). Notwithstanding the above, if during any calendar year of the Term the occupancy of the Building is less than ninety-five percent (95%), then Landlord may, in Landlord’s sole discretion, make
an appropriate adjustment of the variable components of Expenses, as reasonably determined by Landlord, to determine the amount of Expenses that would have been incurred had the Building been ninety-five percent (95%) occupied during that
calendar year. This adjusted amount shall be deemed the amount of Expenses for that calendar year. For purposes hereof, “variable components” shall include only those Expenses that are affected by variations in occupancy levels.

 Notwithstanding the above, if the Premises are separately assessed for any utility service (such as electricity), upon mutual
agreement by Landlord and Tenant, Tenant shall pay the charges for such utility services directly to the utility provider. In addition, upon mutual agreement of Landlord and Tenant, Tenant may provide Tenant’s own janitorial service to the
Premises. In such an event, Tenant’s obligation to contribute toward the cost of such utility service or janitorial service shall be appropriately adjusted by Landlord. Tenant, however, shall continue to be responsible to pay Tenant’s
Share of the cost of utility service and janitorial service for the common areas and facilities of the Building. 
 5.4
Annual Statement. Within one hundred eighty (180) days after the end of each calendar year during the Term, and as soon as reasonably practicable after the expiration of the Term, Landlord shall furnish Tenant a statement with respect to
the previous calendar year showing the total Expenses and Tenant’s Share of Expenses for such calendar year, and the total payments made by Tenant with respect thereto. Unless Tenant objects to Landlord’s statement within ninety
(90) days after receipt of the same, such statement shall conclusively be deemed correct and accepted by Tenant. If Tenant does timely object to such statement, Landlord shall provide Tenant with reasonable verification of the disputed figures
shown on the statement and the parties shall negotiate in good faith to resolve any disputes. Any objection of Tenant to Landlord’s statement and resolution of any dispute shall not postpone the payment of any undisputed amounts due Tenant or
Landlord based on Landlord’s statement. Failure of Landlord to deliver Landlord’s statement in a timely manner does not relieve Tenant of Tenant’s obligation to pay any amounts due Landlord pursuant to a subsequently delivered
statement. 
 5.5 Reconciliation of Expenses. If Tenant’s Share of Expenses as finally determined for the year
exceeds the total payments made by Tenant on account thereof, Tenant shall pay Landlord the deficiency within thirty (30) days of Tenant’s receipt of Landlord’s statement. If the total payments made by Tenant on account thereof exceed
Tenant’s Share of Expenses as finally determined for the year, Tenant’s excess payment shall be credited toward Tenant’s payment toward Expenses next due under this Lease; provided that Landlord shall reimburse any overpayment of
Expenses after the expiration of the Term. For any partial calendar year at the beginning or end of the Term, Tenant’s Share of Expenses shall be prorated on the basis of a 365-day year by

  
 -4-

 
computing Tenant’s Share for the entire year and then prorating such amount for the number of days during such year included in the Term. 

Landlord shall maintain complete and accurate records of all Expenses. Landlord’s records of its Expenses shall be kept using
accounting practices consistently maintained on a year-to-year basis, in accordance with good accounting practices, consistently applied. Tenant shall have the right, at Tenant’s expense and no more frequently than once per calendar year, to
inspect Landlord’s books and records showing Expenses for the calendar year in question; provided, however, Tenant shall not have the right to withhold any payments of Tenant’s Share of Expenses due and payable hereunder the amount of
which may be in dispute, and Tenant must pay the entire amount due and payable hereunder prior to reviewing Landlord’s books and records. In the event Tenant’s inspection of Landlord’s books and records reveals a verifiable error in
Landlord’s computation of Tenant’s Share of Expenses resulting in an overpayment by Tenant in excess of five percent (5%) of Tenant’s actual Share of Expenses, Landlord shall promptly reimburse the amount of such overpayment to
Tenant, together with interest thereon from the date of overpayment until the date of reimbursement at the Interest Rate. The foregoing notwithstanding, Landlord shall be permitted to dispute Tenant’s determination of actual Expenses prior to
its obligation to reimburse Tenant for any overpayment of Expenses. 
 5.6 Miscellaneous. If Taxes are temporarily
reduced as a result of space in the Building (defined in Subsection 2.1) being leased to a tenant that is entitled to an exemption from property taxes or other taxes, then for purposes of determining Taxes for each year in which Taxes are reduced by
any such exemption, Taxes for such year shall be calculated on the basis of the amount the Taxes were reduced. 
 5.7 Payment
of Rent. All amounts of Rent shall be paid by Tenant within the time periods as set forth in this Lease without prior notice or demand (unless otherwise set forth herein), or, if no time period is specified, within thirty (30) days after
notice from Landlord of the amounts due. All Rent shall be paid without offset, recoupment or deduction (unless otherwise specifically permitted in this Lease and agreed to by Landlord), in lawful money of the United States of America to Landlord at
Landlord’s Address for Payment of Rent (defined in Subsection 2.12), or to such other person or at such other place as Landlord may from time to time designate. Tenant’s obligation to pay any amount of Rent accruing during the Term shall
survive the expiration or earlier termination of the Lease. 
 5.8 No “Key Money”. Tenant agrees that
Tenant’s obligation to pay all sums owing under this Lease (including, without limitation, any sum payable prior to the Commencement Date, such as any Security Deposit under Section 6, or any sum payable thereafter, such as Base Rent under
Subsection 5.1, Direct Costs under Subsection 5.2, Expenses under Subsection 5.3, or Landlord’s fees and costs incurred in connection with any proposed Transfer pursuant to Subsection 16.6), are clearly stated and to Tenant’s knowledge do
not violate any applicable Laws. 
 6. SECURITY DEPOSIT. The parties acknowledge Landlord currently holds the amount of the
Security Deposit (defined in Subsection 2.11), in cash, as security for the performance of Tenant’s obligations under this Lease. Landlord may (but shall have no obligation to) use the Security Deposit or any portion thereof to cure any Event
of Default under this Lease or to compensate Landlord for any damage, cost, or expense Landlord incurs as a result of Tenant’s failure to perform any of Tenant’s obligations hereunder (including the costs to repair and clean the Premises
upon vacation by Tenant to the extent necessary to satisfy Tenant’s obligations set forth in Subsection 21.1). In such event Tenant shall immediately pay to Landlord an amount sufficient to replenish the Security Deposit to the sum initially
deposited with Landlord. If Tenant is not in default at the expiration or termination of this Lease, within thirty (30) days from the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance
thereof then held by Landlord and not applied as provided above. Landlord may commingle the Security Deposit with Landlord’s general and other funds, and Landlord shall not be required to pay interest on the Security Deposit. Tenant shall not
assign or encumber the Security Deposit without the consent of Landlord; any attempt to do so shall be void and not binding on Landlord. If Landlord disposes of its interest in the Premises, Landlord will deliver or credit the Security Deposit to
Landlord’s successor in interest and upon such transfer be relieved of all further responsibility with respect to the Security Deposit. 

7. ALTERATIONS. 

  
 -5-

 7.1 Acceptance of Premises. By taking possession of the Premises, Tenant acknowledges
and agrees that the Premises are then in good and tenantable condition, and hereby accepts the Premises and all aspects thereof in “AS-IS,” “WHERE-IS” condition and “WITH ALL FAULTS,” subject to the terms and conditions
of the Work Letter and any punch list items, if applicable, and Landlord’s maintenance and repair obligations set forth herein. Tenant acknowledges and agrees that, except as specifically provided in this Lease and the Work Letter, Seller and
any person acting on behalf of Seller has not made, and Seller hereby specifically disclaims, any warranty, promise, guarantee, and/or representation, oral or written, express or implied, past, present, or future, of, as to, or concerning the
Premises, the Building, and the Project in any manner whatsoever. 
 7.2 Consent. Tenant shall not make any Alterations
to the Premises without Landlord’s prior written consent. Landlord may withhold its consent to such Alterations in its sole discretion if (a) the proposed Alterations would adversely affect the structure or safety of the Building, the
HVAC, or the Building Systems, (b) lower the value of the Building or the Premises, or (c) the proposed Alterations would create an obligation on Landlord’s part to make modifications to the Building (in order, for example, to comply
with laws such as the ADA mandating Building accessibility for persons with disabilities), incur any expense, or be subject to any liability; in all other circumstances, Landlord agrees not to unreasonably withhold or delay its consent to proposed
Alterations. Upon request of Landlord, Landlord and Tenant shall enter into a Work Letter pertaining to any Alterations. Any such Alterations shall be completed by Tenant at Tenant’s sole cost and expense. All Alterations performed by Tenant
shall be performed in a good workmanlike manner using good materials and in a diligent manner and under the supervision of a licensed architect or structural engineer and made in accordance with plans and specifications approved by Landlord. If any
work outside the Premises or any work on or adjustment to any of the Building Systems, is required in connection with or as a result of the Alterations, such work shall be performed at Tenant’s expense by contractors designated by Landlord.

 7.3 Liens. Tenant shall keep the Premises and the Property free and clear of all liens arising out of any work
performed, materials furnished or obligations incurred by Tenant. If any such lien attaches to the Premises or the Property, and Tenant does not cause the same to be released by payment, bonding or otherwise within thirty (30) days after the
attachment thereof, Landlord shall have the right but not the obligation to cause the same to be released, and any sums expended by Landlord in connection therewith shall be payable by Tenant within thirty (30) days of demand with interest
thereon from the date of expenditure by Landlord at the Interest Rate. Tenant shall give Landlord at least five (5) days’ notice before Tenant commences any Alterations or Tenant’s Work. 

7.4 Trade Fixtures. Subject to the provisions of Section 8 - Use and Compliance with Laws and the
foregoing provisions of this Section 7, Tenant may install and maintain Trade Fixtures in the Premises, provided that the Trade Fixtures do not become an integral part of the Premises or the Building. Tenant shall promptly repair any damage to
the Premises or the Building caused by any installation or removal of such Trade Fixtures. 
 7.5
Telecommunications. 
 (a) Tenant may not install any Telecommunications Facilities on the roof of the
Building or in any risers, shafts, equipment rooms or any other part of the Building, except as expressly provided below. If Tenant desires to install, operate or maintain any such telecommunication facilities within the Building and Landlord is
willing to permit such installation and operation, Tenant shall enter into a separate Telecommunications License Agreement with Landlord. Notwithstanding the above, Tenant may install, maintain, replace, remove, and use Telecommunications Lines
within the Premises, subject to the following: (1) the Telecommunication Lines shall use the existing facilities and telecommunications pathways located within the Premises for such Telecommunications Lines, including any existing equipment and
telecommunications rooms or closets and conduits designated by Landlord to service the Premises; (2) Tenant at the origination point, every twenty-five (25) feet thereafter and at the termination point shall label the Telecommunication
Lines placed within the Premises and in the telecommunications pathways and in each telecommunications room or closet through which the Telecommunication Lines pass, with identification information including, but not limited to, the floor where
cable originates and floor and room where cable terminates, the name of the Tenant, and any other information as may be required by the Building Rules; (3) Tenant shall obtain, at its sole cost and expense, prior to construction and work, any
necessary federal, state, and municipal permits, licenses and approvals, copies of which will be delivered to 

  
 -6-

 
Landlord prior to commencement of construction and work; and (4) all Telecommunication Lines shall satisfy all applicable Laws, including building codes, and have sufficient insulation to
minimize any Interference. Upon request by Landlord, Tenant shall provide Landlord with detailed plans, schematics, and specifications identifying the Telecommunication Lines located or placed within the Premises. Landlord disclaims all
responsibility for the condition or utility of the intra-building cabling network, and makes no representation regarding the suitability of such network for Tenant’s intended use. 

(b) The Telecommunications Lines and any other equipment placed within the Premises, including any equipment that uses
wireless transmission of data, shall not cause any Interference with other communications, computing, electronic, building or life safety services in the Building or with any other tenant’s or occupant’s use or operation of communications,
computer or electronic equipment or devices within or on the Building or neighboring properties. In the event of any Interference, Tenant shall use diligent efforts to immediately remedy the Interference. If Tenant fails to remedy the Interference
within forty-eight (48) hours after notice from Landlord, Landlord shall have the right, but not the obligation, to take any reasonable actions to correct the same at Tenant’s expense; provided that Landlord may take immediate action in
the event any Interference causes a threat to the safety to persons or the Building or in the event of a viable claim by any third party. Tenant indemnifies, holds harmless and agrees to defend Landlord from any Claims arising from any Interference
caused by the use or presence of any Telecommunications Facilities or other equipment or devices that may be placed within the Premises or the Building by Tenant or Tenant’s Representatives. 

(c) Tenant, at its sole cost and expense, shall maintain and repair the Telecommunication Lines exclusively servicing the
Premises from the demarcation point into the Building, including within the Premises. Tenant shall remove all such Telecommunication Lines on or before the expiration or earlier termination of this Lease. If Tenant fails to remove any such
Telecommunication Lines, Landlord, at is sole option, may remove such s Telecommunication Lines at Tenant’s expense. If Landlord elects not to remove such Telecommunication Lines, such Telecommunication Lines shall be deemed abandoned and
become the property of Landlord. Tenant shall not, without the prior written consent of Landlord in each instance, grant to any third party a security interest or lien in or on such Telecommunication Lines, and any such security interest or lien
granted without Landlord’s written consent shall be null and void. 
 8. USE AND COMPLIANCE WITH LAWS. 

8.1 Use. The Premises shall be used solely for the Permitted Use (defined in Subsection 2.3) and for no other use or purpose.
Tenant shall comply with all present and future Laws relating to Tenant’s use or occupancy of the Premises, and shall make any repairs, alterations or improvements to the Building as required to comply with all such Laws to the extent that such
Laws relate to or are triggered by: (a) Tenant’s particular use of the Premises, (b) the Improvements, or (c) any Alterations. Tenant shall observe all Building Rules. Tenant shall not do, bring, keep or sell anything in or about
the Premises that is prohibited by, or that will cause a cancellation of or an increase in the existing premium for, any insurance policy covering the Building or any part thereof. Tenant shall not permit the Premises to be occupied or used in any
manner that will constitute waste or a nuisance, or disturb the quiet enjoyment of or otherwise unreasonably disturb other tenants in the Building. Tenant shall not, without the prior consent of Landlord, (i) bring into the Building or the
Premises anything that may cause substantial noise, odor or vibration, overload the floors in the Premises or the Building or any of the HVAC, the Building Systems, or jeopardize the structural integrity of the Building or any part thereof;
(ii) connect to the utility systems of the Building any apparatus, machinery or other equipment other than typical office equipment; or (iii) connect (directly, or indirectly through use of intermediate devices, electrified strip molding,
or otherwise) to any electrical circuit in the Premises any equipment or other load with aggregate connected load requirements in excess of 20 amps; or (iv) place any signs or placard on the exterior of the Premises, the Building or within any
window without the prior written consent of Landlord. 
 8.2 Hazardous Materials. To Landlord’s Knowledge, the
Premises are in compliance with all Environmental Requirements as of the Commencement Date of Term. Tenant shall not cause or permit any Hazardous Materials to be generated, brought onto, used, stored, or disposed of in or about the Premises or the
Building by Tenant or Tenant’s Representatives or Visitors except for deminimus quantities of substances that are normally associated with general office duties (such as copier fluids and cleaning supplies) or which are otherwise

  
 -7-

 
approved by Landlord. Tenant shall use, store, transport and/or dispose of all such Hazardous Materials in strict compliance with all Environmental Requirements, and shall comply at all times
during the Term with all Environmental Requirements. 
 8.3 Prohibited Activities. Tenant shall not do or allow any of
the following acts to be done or conditions to exist upon the Premises: (a) any violation of any Law concerning the use and safety of the Premises as such Laws now exist or may hereafter be established or amended; (b) any public or private
nuisance; (c) the practice of medicine or any of the healing arts, unless otherwise granted in Subsection 2.3; (d) the sale or promotion of alcoholic beverages, marijuana, tobacco products, or illicit drugs; (e) the sale, rental,
display, or distribution of any sexually explicit or morally inappropriate (as determined by Landlord in its sole discretion) or pornographic, lewd, obscene, or adult-oriented material; (f) gambling; (g) any smoking within the Building or
on the Property; (h) overnight sleeping; and (i) any use or occupancy by a governmental entity or governmental contractor. Notwithstanding anything in this Lease to the contrary, in Landlord’s discretion, the common areas in the
Building and any ground floor retail spaces shall not be open or available for use by the public, customers or clients on Sundays. If Tenant or Tenant’s business operations results in any protests, riots, or disturbance of the peace, which
shall not include the lawful exercise of First Amendment rights, Landlord, in its sole and absolute discretion, shall have the right to: (1) require Tenant to cease business operations for a reasonable period of time to cease such disturbance,
in which event Rent payable hereunder shall not abate; or (2) if such disturbance continues for a period of at least five (5) Business Days from the date of Landlord’s notice to cease operations, such disturbance shall constitute an
Event of Default (with no additional notice required to be given, notwithstanding the terms of Subsection 17.1 below), and Landlord may immediately terminate this Lease. 
 8.4 Governmental Use. As a material condition of this Lease, Tenant represents and warrants that: (1) it is not a federal governmental entity or instrumentality, nor that the Premises will be
used to support a federal government contract or subcontract whereby the Tenant would be considered a federal government contractor or subcontractor in the context of this Lease, (2) this Lease is not, and shall not be, or considered to be, a
governmental contract, subcontract or third party contract, and (3) by entering into this Lease Landlord does not become a subrecipient, a subgrantee, a project participant, or a third party contractor or subcontractor. In the event,
(a) this Lease is considered or alleged to be a federal government contract, subcontract or third party contract, or (b) Landlord is considered or alleged to be a subrecipient, a subgrantee, a project participant, a third party contractor,
or a government contractor or subcontractor under federal contracting law, or (c) if due to this Lease Landlord, the Premises or the Building become or is alleged to become subject to any federal laws, statutes, rules or regulations, including,
without limitation, any civil rights statutes, such as Title VI and VII of the Civil Rights Act, Executive Order 11246, as amended, 29 U.S.C. Section 793, et seq., 38. U.S.C. Section 4212, et. seq., 41 U.S.C. Section 601, et. seq., or
the regulations promulgated in 41 C.F.R. 60-1 or 41 C.F.R. 60-2, and/or any other laws, rules, or regulations that would impose any obligation on Landlord to comply with any affirmative action, equal opportunity, or similar program required of
federal or state government contractors and subcontractors arising from this Lease, the relationship with Tenant or Tenant’s use of the Premises, Tenant shall be in default of this Lease and this Lease shall, at the option of Landlord,
terminate. Notwithstanding the above, Landlord, in its sole and absolute discretion, shall have the right to waive such default and/or the termination of the Lease. Nothing herein shall prevent Landlord from pursuing any other rights or remedies
that it may pursue in the event of a default of this Lease. 
 9. MAINTENANCE AND REPAIRS. 

9.1 Landlord’s Maintenance Obligations. During the Term, Landlord shall maintain or cause to be maintained in reasonably good
order, condition and repair, the roof, foundations, exterior walls of the Building, the Building Systems (except for the portion of such systems installed by Tenant and/or located within the Premises and exclusively servicing the Premises), and the
public and common areas of the Property. Tenant shall pay the cost of repairs for damage occasioned by Tenant’s use of the Premises or the Property or any act or omission of Tenant or Tenant’s Representatives or Visitors, and such costs
may be billed to Tenant as Direct Costs. Tenant shall promptly report in writing to Landlord any defective condition known to Tenant which Landlord is required to repair. The costs incurred by Landlord to maintain and repair the Building as set
forth herein may be included as part of the Operating Costs. 

  
 -8-

 9.2 Tenant’s Maintenance Obligations. During the Term, Tenant at Tenant’s
expense but under the direction of Landlord, shall maintain and repair the Premises, including, but not limited to any and all Improvements, Alterations, Trade Fixtures, Telecommunications Facilities, and any appliances, such as dishwashers, hot
water heaters, refrigerators, garbage disposers, and any Dedicated HVAC Unit (as defined in Subsection 11.2(d) below), in or servicing the Premises, and Tenant’s personal property and inventory, in good order and condition, and keep the
Premises in a clean, safe and orderly condition. 
 9.3 Landlord’s Rights. Landlord hereby reserves the right, at
any time and from time to time, without liability to Tenant and provided such changes do not materially interfere with or adversely impact Tenant’s access to the Building or Tenant’s use of the Premises: (a) to make alterations,
additions, repairs, improvements to or in all or any part of the Building, the fixtures and equipment therein, and the Building Systems; (b) to change the Building’s name or street address; (c) to install and maintain any and all
signs on the exterior and interior of the Building; (d) to reduce, increase, enclose or otherwise change the size, number, location, lay-out and nature of the common areas and other tenancies and premises in the Building and to create
additional rentable areas through use or enclosure of common areas; and (e) to comply with any Governmental Controls, whether mandatory or voluntary, and make any alterations to the Building related thereto. 

If Landlord performs any activity on a floor of the Building where the Tenant is located, Landlord will provide Tenant with reasonable
prior notice of such activity. Landlord’s performance of the above activities shall not constitute an eviction, constructive or otherwise, and Tenant shall not be entitled to any abatement of Rent, to terminate this Lease, nor to any waiver or
release of Tenant’s obligations under this Lease as a result thereof. 
 10. TENANT’S TAXES. Tenant shall pay all
Tenant’s Taxes before delinquency (and, at Landlord’s request, shall furnish Landlord satisfactory evidence thereof). If Tenant fails to pay such Taxes before delinquency, Landlord may thereafter pay Tenant’s Taxes or any portion
thereof, whereupon Tenant shall reimburse Landlord upon demand for the amount of such payment, together with interest at the Interest Rate from the date of Landlord’s payment to the date of Tenant’s reimbursement. In addition, if any
Rental Taxes are due and payable, Tenant shall pay any Rental Tax to Landlord in addition to and at the same time as Base Rent is payable under this Lease. 
 11. UTILITIES AND SERVICES. 
 11.1 Description of Services.
Landlord shall make available to the Premises reasonable amounts of electricity, water, heat and air-conditioning, and janitorial service, and sewer and water service to any restrooms and/or break rooms in the Premises. Landlord shall also furnish
Building Standard fluorescent tube replacement, window washing, elevator service, and toilet room supplies. Landlord shall furnish heat, ventilation and air-conditioning during Business Hours. The cost incurred by Landlord to provide such services
shall be included as part of the Operating Costs. Any additional utilities or services that Landlord may agree to provide (including lamp or tube replacement for Improvements) shall be at Tenant’s sole expense. 

11.2 Payment for Additional Utilities and Services. 

(a) Upon request by Tenant in accordance with the procedures established by Landlord from time to time, Landlord shall
furnish such HVAC service to Tenant at times other than during Business Hours and Tenant shall pay for such services on an hourly basis at the then prevailing rate established for the Building by Landlord. 

(b) If the temperature otherwise maintained in any portion of the Premises by the HVAC systems of the Building exceeds the
capacity provided by the Building Standard as a result of (1) any Improvements (i.e., lights, machines or equipment) used by Tenant in the Premises, or (2) the occupancy of the Premises by more than one person per 150 RSF, then Landlord
shall have the right to install any machinery or equipment reasonably necessary to restore the temperature, including modifications to the Building Standard air-conditioning equipment to the extent following notice from Landlord and Tenant fails to
take action necessary to correct the same. The cost of any such equipment and modifications, including the cost of installation and any additional cost of operation and maintenance of the same, shall be paid by Tenant to Landlord within thirty
(30) days of invoice. 

  
 -9-

 (c) If Tenant’s usage of electricity exceeds the Building’s
standard electrical usage, Landlord may determine the amount of such excess use by any reasonable means (including the installation at Landlord’s request but at Tenant’s expense of a separate meter or other measuring device) and charge
Tenant for the cost of such excess usage. In addition, Landlord may impose a reasonable charge for the use of any additional or unusual janitorial services required by Tenant because of any unusual Improvements or Alterations, the carelessness of
Tenant or the nature of Tenant’s business (including hours of operation). 
 (d) If there is any Dedicated
HVAC Unit, HVAC or other cooling system located in the Premises that is dedicated to Tenant’s computers or other equipment, Landlord may determine the amount of gas, electricity or other utility costs attributable to such Dedicated HVAC Unit by
any reasonable means (including the installation by Landlord but at Tenant’s expense of a separate meter or other measuring device) and charge Tenant for such cost. 

(e) Tenant acknowledges that Landlord’s obligations pursuant to Subsection 11.1 to provide janitorial services to the
Premises excludes any portions of the Premises not used as office areas (e.g., closets, storage rooms, mailrooms, computer areas, laboratories, and areas used for the storage, preparation, service, or consumption of food or beverages). Tenant, at
its sole cost and expense, shall cause all portions of the Premises not used as office areas to be cleaned on a regular basis in a manner and by a person or entity satisfactory to Landlord. Tenant shall contract directly with Landlord or, at
Landlord’s option, directly with Landlord’s contractor for cleaning services in excess of those furnished by Landlord in accordance with this Lease. 

11.3 Interruption of Services. In the event of a Service Failure, the Service Failure shall not, regardless of
its duration or cause (except as otherwise provided herein): (a) impose upon Landlord any liability whatsoever, (b) constitute an eviction of Tenant, constructive or otherwise, (c) entitle Tenant to an abatement of Rent or to
terminate this Lease, or (d) otherwise release Tenant from any of Tenant’s obligations under this Lease; provided, however, if a Service Failure occurs during Business Hours and is caused by the gross negligence or willful misconduct of
Landlord and Tenant cannot and does not conduct business operations in the Premises, Tenant shall be entitled to an abatement of Base Rent commencing as of the fifth (5th) consecutive Business Day of such Service Failure and ceasing upon the date the Service Failure ceases or Tenant
recommences operations within the Premises. If the Service Failure continues more than thirty (30) consecutive days and (i) the failure or delay is not the result of a casualty or condemnation, (ii) the repair of such service is
within Landlord’s reasonable control and (iii) Landlord is not diligently pursuing such repair, then Tenant may terminate this Lease on that date ten (10) days after Landlord’s receipt of written notice to Landlord from Tenant
given immediately after such thirty (30) day period, provided if Landlord cures such Service Failure within such ten (10) day period, Tenant’s termination notice shall be of no force and effect. Except as provided above, Tenant waives
and releases any and all Claims against Landlord associated with a Service Failure, including, without limitation, any consequential or special damages. Landlord shall use good faith and diligent efforts to cure any Service Failure and restore
service and utilities to the Premises. 
 11.4 Utility Providers. Landlord may, in Landlord’s sole and absolute
discretion, at any time and from time to time, contract, or require Tenant to contract, for utility services (including generation, transmission, or delivery of the utility service) with a utility service provider of Landlord’s choosing;
provided, however, before contracting with an alternative utility service provider, Landlord shall use good faith efforts to ensure that such service provider’s rates shall be customary and in line with rates for the market area. Tenant shall
fully cooperate with Landlord and any utility service provider selected by Landlord. Tenant shall permit Landlord and the utility service provider to have reasonable access to the Premises and the utility equipment serving the Premises, including
lines, feeders, risers, wiring, pipes, and meters. Tenant shall either pay or reimburse Landlord for all costs associated with any change of utility service, including the cost of any new utility equipment, within ten (10) days after
Landlord’s written demand for payment or reimbursement. Except as otherwise provided for herein, unless due to Landlord, its agents or employee’s negligence or willful misconduct, Landlord shall not be responsible or liable for any loss,
damage, or expense that Tenant may incur as a result of any change of utility service, including any change that makes the utility supplied less suitable for Tenant’s needs, or for any failure, interference, or defect in any utility service. No
such change, failure, interference, or defect shall constitute an actual or constructive eviction of Tenant, or entitle Tenant to any abatement of rent, or relieve Tenant from any of Tenant’s obligations under this Lease. 

  
 -10-

 12. RELEASE AND INDEMNIFICATION.  

12.1 Release. Landlord and Landlord Parties shall not be liable to Tenant for any loss, harm, or damage to any property (including
Tenant’s property) in or about the Premises or the Building from any cause whatsoever, (including, but not limited to: defects in the Building or in any equipment in the Building; fire, explosion or other casualty; bursting, rupture, leakage or
overflow of any plumbing or other pipes or lines, sprinklers, tanks, drains, drinking fountains or wash stands in, above, or about the Premises or the Building; or acts of other tenants in the Building), except for loss, harm or damage arising from
the gross negligent or intentional misconduct of Landlord or Landlord’s employees acting within the scope of their employment. In addition, Landlord and Landlord Parties shall not be liable to Tenant for any bodily injury in or about the
Premises or the Building from any cause (including the acts of other tenants or their agents, servants, contractors, employees, guests or invitees), except for bodily injury arising from the sole negligence or intentional misconduct of Landlord or
Landlord’s employees acting within the scope of their employment. Tenant hereby releases and waives all Claims against Landlord and Landlord Parties for any such loss, harm, damage, and/or injury and the cost and expense of defending against
such Claims, provided that Tenant does not release Landlord from any Claims for loss, harm or damage to any property (including Tenant’s Property) arising from the gross negligent or intentional misconduct of Landlord or Landlord’s
employees acting within the scope of their employment or for bodily injury arising from the sole negligence or intentional misconduct of Landlord or Landlord’s employees acting within the scope of their employment. In no event, however, shall
Landlord or Landlord Parties be liable to Tenant for any punitive or consequential damages or damages for loss of business by Tenant. The terms of this Subsection 12.1 shall not relieve Landlord of its obligations under Subsection 14.1 of this
Lease. 
 12.2 Indemnification. Tenant shall indemnify, defend and hold Landlord and Landlord Parties harmless for, from
and against Claims arising from: (a) the acts or omissions of Tenant or Tenant’s Representatives or Visitors in or about the Property, (b) Tenant’s use or occupancy of the Premises, or (c) any construction or other work
undertaken by Tenant on the Premises (including any design defects), or (d) any breach or default under this Lease by Tenant, or (e) any accident, injury or damage to any person or property, occurring in or about the Premises during the
Term regardless of the cause; except that Tenant does not indemnify Landlord from any Claims for bodily injury solely arising from the negligent acts or omissions of Landlord or its authorized representatives. Subject to Tenant’s
indemnification obligations above, Landlord shall indemnify, defend and hold Tenant harmless from and against Claims solely arising from the negligent acts or omissions of Landlord or Landlord’s Representatives resulting in any harm or injury
to persons in or about the Property; except that Landlord does not indemnify Tenant from any Claims for personal injury arising in any degree from the negligent acts or omissions of Tenant, Tenant’s Representatives or Visitors. Tenant’s
indemnification obligation is independent of Tenant’s obligation to maintain insurance, and the minimum limits on Tenant’s insurance coverage set forth in this Lease shall not limit the Tenant’s indemnification obligations under this
Lease. 
 12.3 Miscellaneous. The obligations of the parties under this Section 12 (a) are independent of, and
will not be limited by, each other or any insurance obligations set forth in this Lease or comparative negligence statutes or principles or damages or benefits payable under workers compensation or other employee benefit acts, and (b) shall
survive the expiration or earlier termination or this Lease until such time as all related Claims against the benefited parties are fully and finally barred by applicable laws. All applicable Laws affecting the validity or enforceability of any
portion of the waivers, releases and indemnities contained in this Section 12 are made a part of this Section 12, Release and Indemnification, and will operate to amend such obligations to the minimum extent necessary to bring the
provisions into conformity with applicable Laws and cause the provisions, as modified, to continue in full force and effect. 
 13.
INSURANCE.  
 13.1 Tenant’s Insurance. 

(a) Tenant shall maintain in full force throughout the Term, commercial general liability insurance providing coverage on
an occurrence basis with limits of not less than Two Million Dollars ($2,000,000.00) each occurrence; Two Million Dollars ($2,000,000.00) annual general aggregate, Two Million Dollars ($2,000,000.00) products and completed operations annual
aggregate. Tenant’s liability insurance policy or 

  
 -11-

 
policies shall: (1) be on ISO form CG 00 01 12 04 or equivalent, (2) include premises and operations liability coverage, products and completed operations liability coverage, broad form
property damage coverage including completed operations, blanket contractual liability coverage, and personal and advertising injury coverage; (3) provide that the insurance company has the duty to defend all insureds under the policy or
policies (separation of insured language will not be modified); (4) provide that defense costs are paid in addition to and do not deplete any of the policy(ies) limits; and (5) cover liabilities arising out of or incurred in connection
with Tenant’s use or occupancy of the Premises or the Property. 
 (b) Intentionally deleted 

(c) Tenant shall at all times maintain in effect with respect to any Alterations, Improvements, Trade Fixtures and
Tenant’s goods, inventory and personal property, commercial property insurance (cause of loss – special form) (formerly “all-risk”) providing coverage for one-hundred percent (100%) of the full replacement cost of the
covered property. Tenant’s commercial property insurance policy or policies shall: (1) be on ISO form CP 10 30 or equivalent, (2) name Landlord and any Mortgagee (if notified by Landlord) as “insured as its interest may
appear,” (3) contain only standard printed exclusions, (4) contain an ordinance of law coverage endorsement; and (5) contain an equipment floater to cover Tenant’s Trade Fixtures and equipment. Tenant may carry such
insurance under a blanket policy, provided that such policy provides equivalent coverage to a separate policy. During the Term, the proceeds from any such policies of insurance shall be used for the repair or replacement of the Alterations,
Improvements, Trade Fixtures and Tenant’s goods, inventory and personal property so insured. Landlord shall be provided coverage under such insurance to the extent of its insurable interest and, if requested by Landlord, both Landlord and
Tenant shall sign all documents reasonably necessary or proper in connection with the settlement of any claim or loss under such insurance. Landlord will have no obligation to carry insurance on any Alterations, Improvements, Trade Fixtures, or
Tenant’s goods, inventory and personal property. 
 (d) Beginning on the date Tenant is given access to the
Premises for any purpose and continuing until expiration of the Term, Tenant shall procure, pay for and maintain in effect Workers’ Compensation Insurance for all of its employees who work at or visit the Premises and Employers Liability
Insurance with coverage and minimum limits of the greater of: (i) bodily injury by accident ($500,000.00 each accident); (ii) bodily injury by disease ($500,000 policy limit); and (iii) bodily injury by disease ($500,000 each
employee). 
 (e) Beginning on the Commencement Date of the Term and continuing throughout the Term, Tenant shall
maintain a policy of Business Interruption Insurance and Extra Expense Insurance covering at least a one-year period. Such policy shall contain an endorsement covering losses arising from interruption of utilities outside the Premises and a waiver
of subrogation in favor of Landlord and Property Manager and any Mortgagee (if requested by Landlord). 
 (f)
Each policy of insurance required under this Section 13 shall: (1) be in a form, and written by an insurer, reasonably acceptable to Landlord, (2) be maintained at Tenant’s sole cost and expense, and (3) be endorsed as
primary with the policies of Landlord, Property Manager and any Mortgagee (if requested by Landlord) being excess, secondary and noncontributing; (4) unless the Tenant’s right to waiver subrogation is permitted in the insurance policy, be
endorsed to provide a waiver of subrogation in favor of Landlord and Landlord Parties; (5) require at least thirty (30) days’ written notice to Landlord prior to any cancellation, non-renewal or modification of insurance coverage; and
(6) be issued by insurance companies that have rating classifications of “A” or better and financial size category ratings of “VIII” or better according to the latest edition of the A.M. Best Key Rating Guide. All insurance
companies issuing such policies shall be licensed to do business in the state where the Property is located. Any deductible amount under such insurance shall not exceed Twenty Thousand Dollars ($20,000.00). Tenant shall provide to Landlord, upon
request, evidence that the insurance required to be carried by Tenant pursuant to this Section 13, including any endorsement affecting the additional insured status, is in full force and effect and that premiums therefor have been paid.

 (g) Each policy of commercial general liability insurance required by Subsection 13.1(a) shall:
(1) contain a cross liability endorsement or separation of insureds clause; (2) provide that any waiver of subrogation rights or release prior to a loss does not void coverage; (3) provide that any failure to comply with the reporting
provisions shall not affect coverage provided to Landlord, the Property Manager, and any Mortgagee; (4)

  
 -12-

 
provide that the coverage is available in the aggregate to the Premises pursuant to a CG 25 04 endorsement or an equivalent endorsement acceptable to Landlord; and (5) name Landlord, the
Property Manager, and any Mortgagee (if requested by Landlord) and such other parties in interest as Landlord may from time to time reasonably designate to Tenant in writing, as additional insureds. All endorsements creating such additional insured
status shall be acceptable to Landlord and shall be at least as broad as additional insured endorsement form number CG 20 11 01 96 promulgated by the Insurance Services Office. 

(h) A review of the Tenant’s insurance requirement shall be made periodically, but, not more frequently than once
every three (3) years. If any Mortgagee or Landlord’s insurance broker or other risk management consultant determines in the opinion of any of them that the amount of insurance then required under this Lease is not adequate, Tenant agrees
to increase the amounts and limits of insurance as recommended by such professionals or any Mortgagee. 
 (i)
Prior to occupancy of the Premises by Tenant, and not less than thirty (30) days prior to expiration of any policy thereafter, Tenant shall furnish to Landlord a certificate of insurance in the form of: (a) ACORDTM Form 25-S
(1/95) (or its replacement) Certificates of Liability Insurance for liability coverages accompanied by the endorsement form CG 20 11 01 96 and the endorsement form 25 04 as referred to in (g) above, showing the required additional
insureds satisfactory to Landlord in substance and form, and (b) ACORDTM Form 28 (or its replacement) Evidence of Property Insurance for property coverages. Each certificate of insurance must: (i) show the Landlord, the Property
Manager and any Mortgagee (if requested by Landlord) as certificate holders (with Landlord’s mailing address); (ii) show Tenant as the “Named Insured,” (iii) show the insurance companies producing each coverage and the
policy number and policy date of each coverage; (iv) name the producer of the certificate (with correct address and telephone number) and have the signature of the authorized representative of the producer; (v) specify the additional
insured status (on ACORDTM Form 45) and/or waivers of subrogation; (vi) show the amounts of all deductibles and self-insured retentions; (vii) show the primary status and aggregate limit per project where required; and (viii) the
phrases “endeavor” and “but failure to mail such notice will impose no obligation or liability of any kind upon Company, its agents or representatives” are deleted from the cancellation provision of the ACORDTM Form 25
certificate and the following express provision added: “This is to certify that the policies of insurance described herein have been issued to the Insured for whom this certificate is executed and are in force at this time. In the event of
cancellation, non-renewal, or material reduction in coverage affecting the certificate holder, 30 days’ prior written notice will be given to the certificate holder by certified mail or registered mail, return receipt requested.” If the
insurance carrier is unwilling to provide such certification, Tenant shall provide Landlord with thirty (30) days’ prior written notice of the modification or cancellation of Tenant’s insurance policies. Notwithstanding the
requirements of this paragraph, Tenant shall at Landlord’s request provide to Landlord a complete copy of each insurance policy required to be in force at any time pursuant to the requirements of this Lease or its Exhibits. 

13.2 Insurance Coverage During Construction. Intentionally Deleted 

13.3 Landlord’s Insurance. Landlord may manage a program of alternative risk transfer related to risk of harm, loss or damage
to the Building and the Property to the extent and degree that Landlord deems necessary in Landlord’s reasonable judgment. Landlord’s risk management program may include elements of traditional insurance, self-insurance, large deductibles,
or risk assumption. The cost of Landlord’s risk management program shall be deemed to be the cost of obtaining and managing an insurance policy covering the risk managed or assumed by Landlord, which cost shall be determined by an estimate or
quote from a reputable insurance company regarding such insurance coverage. The cost of Landlord’s risk management program, as determined above, shall be deemed the cost of insurance for expense reimbursement purposes and Landlord may, in its
discretion, include such costs as part of Expenses. Landlord shall not be required to carry insurance of any kind on Tenant’s personal property, and shall not be obligated to repair any damage thereto or replace the same for any reason.

 13.4 Property Insurance - Waiver of Subrogation. Landlord and Tenant each hereby waive any right of recovery against
the other(s) (Tenant’s waiver of subrogation shall be in favor of Landlord and Property Manager and any Mortgagee (if notified by Landlord) and the partners, members, shareholders, officers, directors and authorized representatives of the other
for any loss or damage that is covered by any policy of property insurance 

  
 -13-

 
maintained by either party (or required by this Lease to be maintained) with respect to the Premises or the Building or any operation therein. If any such policy of insurance relating to this
Lease or to the Premises or the Building does not permit the foregoing waiver or if the coverage under any such policy would be invalidated as a result of such waiver, the party maintaining such policy shall obtain from the insurer under such policy
a waiver of all right of recovery by way of subrogation against either party in connection with any claim, loss or damage covered by such policy. 
 14. DAMAGE OR DESTRUCTION. 
 14.1 Landlord’s Duty to
Repair 
 (a) If all or a substantial part of the Premises are rendered untenantable or inaccessible by
damage to any part of the Property from fire or other casualty then, unless either party is entitled to and elects to terminate this Lease pursuant to Subsection 14.3 - Landlord’s Right to Terminate and 14.4—Tenant’s Right
to Terminate, Landlord shall, at its expense, use reasonable efforts to repair and restore the Premises and/or the Building, as the case may be, to substantially their former condition to the extent permitted by then applicable Laws; provided,
however, that in no event shall Landlord have any obligation for repair or restoration beyond the extent of insurance proceeds received by Landlord for such repair or restoration, or for any Alterations, Improvements, Trade Fixtures or Tenant’s
goods, inventory and personal property. 
 (b) If Landlord is required or elects to repair damage to the Premises
and/or the Building, this Lease shall continue in effect. Tenant hereby acknowledges and agrees that Tenant may obtain business interruption insurance to mitigate against the risk of damage or destruction of the Premises or the Building. If Tenant
is prevented from using any portion of the Premises by reason of such damage or its repair or due to damage to any fixtures or equipment within the Premises, Rent shall not abate. In no event shall Landlord be liable to Tenant by reason of any
injury to or interference with Tenant’s business or property arising from fire or other casualty or by reason of any repairs to any part of the Property necessitated by such casualty. 

14.2 Tenant’s Duty to Repair. If any Alterations, Improvements, Trade Fixtures or Tenant’s goods, inventory or personal
property is damaged or destroyed, Tenant shall repair and/or replace such damaged items as soon as possible after the restoration of the Premises. 
 14.3 Landlord’s Right to Terminate. Landlord may elect to terminate this Lease following damage by fire or other casualty under the following circumstances: 

(a) If, in the reasonable judgment of Landlord, the Premises and the Building cannot be substantially repaired and
restored under applicable Laws within one hundred eighty (180) days from the date of the casualty; 
 (b)
If, in the reasonable judgment of Landlord, adequate proceeds are not, for any reason, made available to Landlord from Landlord’s insurance policies (and/or from Landlord’s funds made available for such purpose, at Landlord’s sole
option) to make the required repairs; provided that Landlord has maintained the insurance coverage required by this Lease; 
 (c) If the Building is damaged or destroyed to the extent that, in the reasonable judgment of Landlord, the cost to repair and restore the Building would exceed twenty-five percent (25%) of the full
replacement cost of the Building, whether or not the Premises are at all damaged or destroyed; or 
 (d) If the
fire or other casualty occurs during the last two (2) years of the Term. 
 If any of the circumstances described in subparagraphs (a),
(b), (c) or (d) of this Subsection 14.3 occur or arise, Landlord shall notify Tenant in writing of that fact within one hundred twenty (120) days after the date of the casualty and in such notice Landlord shall also advise Tenant
whether Landlord has elected to terminate this Lease as provided above; provided, however, Landlord shall provide such notice to Tenant within sixty (60) days if the damage to the Building is not structural in nature and concerns less then
twenty-five percent (25%) of the Building. 

  
 -14-

 
If Landlord elects not to terminate this Lease, Landlord will specify in such notice the estimated completion date of the restoration of the Premises and/or the Building. Tenant acknowledges and
agrees that any estimate of the completion date to repair and restore the Premises and Building is an estimate subject to force majeure. Tenant releases Landlord from any damages or Claims and waives any right to terminate this Lease if the
completion date of such restoration exceeds the estimated completion date. 
 14.4 Tenant’s Right to Terminate. If
all or a substantial part of the Premises are rendered untenantable or inaccessible by damage to all or any part of the Property from fire or other casualty, then Tenant may elect to terminate this Lease under the following circumstances:

 (a) Where Landlord fails to commence the required repairs within one hundred and twenty (120) days after
the date of the casualty, in which event Tenant may elect to terminate this Lease upon notice to Landlord given within ten (10) days after such one hundred and twenty (120) day period; or 

(b) If the estimated completion date of the restoration of the Premises and/or the Building is in excess of one
(1) year from the date of the casualty, in which event Tenant may elect to terminate this Lease by giving Landlord notice of such election to terminate within ten (10) days after Landlord’s notice to Tenant pursuant to Subsection 14.3
- Landlord’s Right to Terminate. 
 14.5 Waiver. Intentionally deleted. 

15. CONDEMNATION.  
 15.1 Effect on Lease. If the Premises, or any portion thereof, are taken by Condemnation, this Lease shall terminate as of the Date of Condemnation as to that portion of the Premises that is taken.
If the portion of the Premises remaining after the Condemnation is unsuitable for Tenant’s continued use as reasonably determined by the parties, then Tenant may terminate this Lease upon thirty (30) days’ written notice to Landlord
after the Date of Condemnation. If the entire Premises is not taken and the Lease is not terminated by Tenant as provided herein, this Lease shall remain in effect and Landlord shall diligently proceed to repair and restore the Premises to an
architecturally complete office space; provided, however, that Landlord’s obligations to so repair and restore shall be limited to the amount of any Award received by Landlord and not required to be paid to any Mortgagee. Landlord shall not be
obligated to repair or replace any Alterations, Improvements, Trade Fixtures, or Tenant’s goods, inventory or personal property. From and after the Date of Condemnation, Tenant shall not be obligated to pay any Rent applicable to such portion
of the Premises taken based upon the percentage of RSF in the Premises so taken from and after the Date of Condemnation. 
 15.2
Awards. Any Award made shall be paid to Landlord, and Tenant hereby assigns to Landlord, and waives all interest in or claim to, any such Award, including any claim for the value of the unexpired Term; provided, however, that Tenant shall be
entitled to receive, or to prosecute a separate claim for, an Award for a temporary taking of the Premises or a portion thereof by a Condemnor where this Lease is not terminated (to the extent such Award relates to the unexpired Term), or an Award
or portion thereof separately designated for relocation expenses of, or for the interruption of or damage to Tenant’s business or as compensation for Trade Fixtures and Tenant’s personal property. 

15.3 Waiver. Intentionally deleted. 
 16. ASSIGNMENT AND SUBLETTING.  
 16.1 Landlord’s Consent
Required. Tenant shall not Transfer this Lease nor any part of the Premises, without the prior written consent of Landlord, which (subject to the other provisions of this Section 16) shall not be unreasonably withheld. If Tenant is a
business entity, any direct or indirect transfer of fifty percent (50%) or more of the ownership interest of the entity (whether in a single transaction or in the aggregate through more than one transaction) shall be deemed a Transfer.
Notwithstanding any provision in this Lease to the contrary, Tenant shall not mortgage, pledge, hypothecate or otherwise encumber all or any portion of Tenant’s interest under this Lease. In

  
 -15-

 
addition, Tenant shall not make any Transfer to a Prohibited Person and any Transferee shall make the representation and warranty contained in Section 39 hereof to Landlord and Tenant in any
Transfer document. 
 16.2 Reasonable Consent. 

(a) If Tenant complies with the following conditions, Landlord shall not unreasonably withhold its consent to the
subletting of the Premises or any portion thereof or the assignment of this Lease. Prior to any proposed Transfer, Tenant shall submit in writing to Landlord (1) the name and legal composition of the proposed Transferee; (2) the nature of
the business proposed to be carried on in the Premises; (3) a current balance sheet, income statements for the last two years and such other reasonable financial and other information concerning the proposed Transferee as Landlord may request;
and (4) a copy of the proposed assignment, sublease or other agreement governing the proposed Transfer, which must contain the following: (i) Transferee’s waiver, release and indemnification of Landlord as set forth in
Section 12; (ii) representation and indemnification of Landlord consistent with Section 39; and (iii) Transferee’s agreement to maintain the insurance required by Section 13, including endorsing Landlord as an
additional insured on Transferee’s liability insurance policy. Within fifteen (15) days after Landlord receives all such information it shall notify Tenant whether it approves or disapproves such Transfer or if it elects to proceed under
Subsection 16.8 - Landlord’s Right to Space. 
 (b) The parties hereto agree and acknowledge that,
among other circumstances for which Landlord could reasonably withhold consent to a proposed Transfer, it shall be reasonable for Landlord to withhold consent where (1) the proposed Transferee does not intend itself to occupy the entire portion
of the Premises assigned or sublet, (2) Landlord reasonably disapproves of the Transferee’s business operating ability or history, reputation or creditworthiness or the character of the business to be conducted by the Transferee at the
Premises, (3) the Transferee is a governmental agency or unit or an existing tenant in the Building, (4) the proposed Transfer would violate any exclusive rights of any tenants in the Building, (5) the rental and other consideration
payable by the Transferee is less than that currently being paid by tenants under new leases of comparable space in the Building, (6) the Transferee’s financial strength is less than the financial strength of Tenant, (7) the proposed
use does not conform to the Permitted Use, or (8) Landlord otherwise determines that the proposed Transfer would have the effect of decreasing the value of the Building or increasing the expenses associated with operating, maintaining and
repairing the Building. 
 16.3 Advertisement. Tenant shall not publicly offer or advertise all or any portion of the
Premises for assignment or sublease at a Rent less than that then being sought by Landlord for a direct lease (non-sublease) of comparable space in the Building. 
 16.4 Excess Consideration. If Landlord consents to the assignment or sublease, Landlord shall be entitled to receive as increased Rent hereunder an amount equal to fifty percent (50%) of the
amount (if any) by which the total value of (a) any consideration paid by the Transferee for the assignment or sublease and, in the case of a sublease, the excess of the rent and other consideration payable by the subtenant over the amount of
Base Rent and Additional Rent payable hereunder applicable to the subleased space, exceeds (b) the reasonable direct, out-of-pocket costs (such as, but not necessarily limited to, reasonable brokerage commissions, tenant improvement costs,
attorneys’ fees, and other cash concessions as may be typical, reasonable and appropriate under then prevailing conditions) actually and necessarily paid by Tenant to third parties not affiliated with Tenant to procure the assignment or
sublease. 
 16.5 No Release of Tenant. Unless granted to Tenant by Landlord in writing, no consent by Landlord to any
Transfer shall relieve Tenant of any obligation to be performed by Tenant under this Lease, whether occurring before or after such consent, assignment, subletting or other Transfer. Each Transferee shall be jointly and severally liable with Tenant
(and Tenant shall be jointly and severally liable with each Transferee) for the payment of Rent (or, in the case of a sublease, rent in the amount set forth in the sublease) and for the performance of all other terms and provisions of this Lease.
The consent by Landlord to any Transfer shall not relieve Tenant or any such Transferee from the obligation to obtain Landlord’s prior written consent to any subsequent Transfer by Tenant or any Transferee. The acceptance of Rent by Landlord
from any other person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any Transfer. 

  
 -16-

 16.6 Administrative Review Fee and Attorneys’ Fees. Concurrently with submitting
each request for Landlord’s consent to any Transfer, Tenant shall pay Landlord an administrative review fee of Three Hundred Dollars ($300.00). In addition to the administrative review fee, Tenant shall pay to Landlord on demand all costs and
expenses (including reasonable attorneys’ and consultant’s fees) incurred by Landlord in connection with reviewing or consenting to any proposed Transfer, such costs not to exceed $1,500.00. 

16.7 Effectiveness of Transfer. Prior to the date on which any permitted Transfer (whether or not requiring Landlord’s
consent) becomes effective, Tenant shall deliver to Landlord a counterpart of the fully executed transfer document and Landlord’s then standard form of “Consent to Assignment” or “Consent to Sublease” executed by Tenant and
the Transferee in which each of Tenant and the Transferee confirms its obligations pursuant to this Lease. Failure or refusal of a Transferee to execute any such instrument shall not release or discharge the Transferee from liability as provided
herein. The voluntary, involuntary or other surrender of this Lease by Tenant, or a mutual cancellation by Landlord and Tenant, shall not work a merger, and any such surrender or cancellation shall, at the option of Landlord, either terminate all or
any existing subleases or operate as an assignment to Landlord of any or all of such subleases. 
 16.8 Landlord’s Right
to Space. Notwithstanding any of the above provisions of this Section 16 to the contrary, if Tenant notifies Landlord that it desires to enter into a Transfer, Landlord, in lieu of consenting to such Transfer, may elect (a) in the case
of an assignment or a sublease of the entire Premises, to terminate this Lease, or (b) in the case of a sublease of less than the entire Premises, to terminate this Lease as it relates to space proposed to be subleased by Tenant. In such event,
this Lease will terminate (or the space proposed to be subleased will be removed from the Premises subject to this Lease and the Base Rent and Tenant’s Share under this Lease shall be proportionately reduced) on the date the Transfer was
proposed to be effective, and Landlord may lease such space to any party, including the prospective Transferee identified by Tenant. 
 16.9 Assignment of Sublease Rents. Tenant hereby absolutely and irrevocably assigns to Landlord any and all rights to receive rent and other consideration from any sublease and agrees that
Landlord, as assignee or as an attorney-in-fact for Tenant for purposes hereof, or a receiver for Tenant appointed on Landlord’s application may (but shall not be obligated to) collect such rents and other consideration and apply the same
toward Tenant’s obligations to Landlord under this Lease; provided, however, that Landlord grants to Tenant at all times prior to occurrence of any breach or default by Tenant a revocable license to collect such rents (which license shall
automatically and without notice be and be deemed to have been revoked and terminated immediately upon any Event of Default). 

16.10 Transfer to Affiliate. Tenant may assign this Lease or sublet the Premises or any portion thereof, without Landlord’s
written consent, but upon prior written notice to Landlord and subject to all other provisions of this Lease, to any Affiliate, subject to all the terms of this Lease (except only that Landlord shall not be entitled to any excess consideration
pursuant to Subsection 16.4 - Excess Consideration or to terminate this Lease pursuant to Subsection 16.8 - Landlord’s Right to Space upon such an assignment or sublease to an Affiliate), provided that (i) the Affiliate
assumes in writing all of Tenant’s obligations under this Lease, (ii) the original entity executing this Lease as “Tenant” remains fully liable under this Lease, (iii) Landlord receives written notification of such Transfer,
and all relevant documents requested by Landlord, at least twenty (20) days prior to the effective date of such Transfer, (iv) no Event of Default is ongoing, (v) the intended Transferee has a tangible net worth, as evidenced by
financial statements delivered to Landlord and certified by an independent certified public accountant in accordance with generally accepted accounting principles that are consistently applied at least equal to Tenant’s net worth either
immediately before the Transfer or as of the date of this Lease, whichever is greater; (vi) the nature of the business of the occupant of the Premises is reasonably acceptable and approved by Landlord; and (vii) such Transfer is not a
subterfuge by Tenant to avoid its obligations under this Lease or the restrictions on Transfers under this Section 16. Tenant shall have the burden of establishing that all the terms of this Subsection 16.10 have been satisfied. 

17. DEFAULT AND REMEDIES.  
 17.1 Event of Default. The occurrence of any of the following shall constitute an Event of Default by Tenant: 

  
 -17-

 (a) Tenant fails to make any payment of Rent, or any amount required to
replenish the Security Deposit as provided in Section 6 - Security Deposit, within ten (10) days after the date of a notice from Landlord; 
 (b) Tenant abandons or vacates the Premises; 
 (c) Tenant makes any
material misrepresentation to Landlord or violates any term or condition of Section 8 - Use and Compliance with Laws; 
 (d) Tenant fails to deliver any estoppel certificate requested by Landlord within the period described in Subsection 23.1 - Estoppel Certificates; 

(e) Tenant violates the restrictions on Transfer set forth in Section 16 - Assignment and Subletting.

 (f) Tenant fails to maintain the insurance required to be maintained by Tenant pursuant to Subsections 13.1
and 13.2 and/or otherwise fails to perform its obligations under such subsections; 
 (g) To the extent permitted
by law, Tenant ceases doing business as a going concern; makes an assignment for the benefit of creditors; is adjudicated an insolvent, files a petition (or files an answer admitting the material allegations of a petition) seeking relief under any
state or federal bankruptcy or other statute, law or regulation affecting creditors’ rights’; all or substantially all of Tenant’s assets are subject to judicial seizure or attachment and are not released within thirty (30) days,
or Tenant consents to or acquiesces in the appointment of a trustee, receiver or liquidator for Tenant or for all or any substantial part of Tenant’s assets; 

(h) Tenant fails, within ninety (90) days after the commencement of any state or federal bankruptcy or other statute,
law or regulation affecting creditors’ rights, to have such proceedings dismissed, or Tenant fails, within ninety (90) days after an appointment, without Tenant’s consent or acquiescence, of any trustee, receiver or liquidator for
Tenant or for all or any substantial part of Tenant’s assets, to have such appointment vacated; or 
 (i)
Tenant fails to perform or comply with any provision of this Lease other than those described in (a) through (g) above, and does not fully cure such failure within fifteen (15) days after notice to Tenant or, if such failure cannot be
cured within such fifteen (15) day period, Tenant fails within such fifteen (15) day period to commence, and thereafter diligently proceed with, all actions necessary to cure such failure as soon as reasonably possible but in all events
within ninety (90) days of such notice; provided, however, that if Landlord in Landlord’s reasonable judgment determines that such failure cannot or will not be cured by Tenant within such ninety (90) day period, then such failure
shall constitute an Event of Default immediately upon such notice to Tenant. 
 17.2 Remedies. Upon the occurrence of an
Event of Default, Landlord shall have the following remedies, which shall not be exclusive but shall be cumulative and shall be in addition to any other remedies now or hereafter allowed by law or in equity, including injunctive relief: 

(a) Landlord may terminate Tenant’s right to possession of the Premises at any time by written notice to Tenant.
Tenant expressly acknowledges that in the absence of such written notice from Landlord, no other act of Landlord, including re-entry into the Premises, efforts to relet the Premises, reletting of the Premises for Tenant’s account, storage of
Trade Fixtures and Tenant’s goods, inventory and personal property, acceptance of keys to the Premises from Tenant or exercise of any other rights and remedies under this Section 17, shall constitute a termination of this Lease or of
Tenant’s rights to possession of the Premises. Upon such termination in writing of Tenant’s right to possession of the Premises, as herein provided, this Lease shall terminate and Landlord shall be entitled to recover damages from Tenant,
including the amount by which the Rent payable by Tenant hereunder for the remainder of the Term exceeds the amount of Rent loss Tenant proves could have been reasonably avoided, discounted at the discount rate published by the Federal Reserve Bank
of San Francisco for member banks at the time of the award plus one percent (1%). 

  
 -18-

 (b) Landlord may continue this Lease in effect after Tenant’s breach
and/or abandonment and recover Rent as it becomes due. 
 (c) Landlord may cure the Event of Default at
Tenant’s expense. If Landlord pays any sum or incurs any expense in curing the Event of Default, Tenant shall reimburse Landlord upon demand for the amount of such payment or expense with interest at the Interest Rate from the date the sum is
paid or the expense is incurred until Landlord is reimbursed by Tenant. 
 (d) Landlord may maintain the Lease in
full force and effect, recover the Rent and other monetary charges as they become due, and re-enter the Premises. If Landlord desires to re-enter the Premises, Landlord shall notify Tenant and Tenant shall peacefully vacate the Premises and remove
Tenant’s fixtures, furnishings, equipment, and personal property from the Premises within ten (10) days after Landlord’s notice and grant Landlord the right to enter and possess the Premises. Landlord’s re-entry into the Premises
shall not be deemed a surrender of the Premises by Tenant, an acceptance of the Premises by Landlord, a termination of the Lease, nor constructive eviction of Tenant. If Tenant fails to peacefully vacate the Premises after receipt of Landlord’s
notice exercising its rights under this paragraph, Landlord may obtain an order of restitution pursuant to applicable Laws. In such an event, Tenant hereby unconditionally stipulates to the order of restitution and waives any and all defenses and
claims to the contrary and agrees that Landlord may obtain the order of restitution through summary proceedings. If Landlord pursues an action for an order of restitution, Landlord shall be entitled to recover any past due Rent, damages and
reasonable attorneys’ fees as permitted by applicable Laws. The process of obtaining an order of restitution (including the filing of notices, the pleading or finding of unlawful detainer, and the issuance of the order itself) shall not be
deemed to terminate/forfeit the Lease nor operate as a surrender and acceptance of the Premises. Landlord shall have the right to make any repairs, alterations, modifications or tenant improvements to the Premises, which Landlord, in its sole
discretion, deems reasonable and necessary, and to lease the Premises (which may be for a term extending beyond the term of this Lease) at such rental and upon such other terms and conditions as Landlord deems advisable using reasonable business
judgment under the circumstances. Tenant shall pay to Landlord any and all reasonable costs incurred by Landlord in readying the Premises and reletting or attempting to relet the Premises, including, without limitation, the costs of repairs,
alterations, modification, and/or tenant improvements to the Premises, brokers’ commissions and fees, advertising expenses, concessions to obtain new tenants, and legal expenses and costs. Tenant shall pay Landlord the difference between the
rent actually received by Landlord from any new tenant of all or a portion of the Premises (based upon Landlord taking reasonable efforts to relet all or a portion of the Premises upon terms and conditions reasonably acceptable to Landlord) and the
Rent payable by Tenant under this Lease. 
 (e) Upon termination of the Lease or re-entry into the Premises by
Landlord as permitted herein, Landlord may remove all of Tenant’s property from the Premises, and such property may be stored by Landlord in a public warehouse or elsewhere at the sole cost and for the account of Tenant. If Landlord does not
elect to store any or all of Tenant’s property left in the Premises, Landlord may consider such property to be abandoned by Tenant, and Landlord may thereupon dispose of such property in any manner deemed appropriate by Landlord. Any proceeds
realized by Landlord on the disposal of any such property shall be applied first to offset all expenses of storage and sale, then credited against Tenant’s outstanding obligations to Landlord under this Lease, and any balance remaining after
satisfaction of all obligations of Tenant under this Lease shall be delivered to Tenant. 
 (f) Intentionally
Deleted. 
 (g) Intentionally deleted. 

(h) Whether or not Landlord elects to terminate this Lease on account of any Event of Default by Tenant, as set forth in
this Subsection 17.2, Landlord shall have the right to terminate any and all Transfers entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such Transfers. In the event of
Landlord’s election to succeed to Tenant’s interest in any such Transfers, Tenant shall, as of the date of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder.

  
 -19-

 17.3 Landlord’s Default and Remedies. If Landlord fails to perform any of its
obligations under the Lease, Tenant may give written notice to Landlord. Landlord shall be in default of this Lease if Landlord receives written notice of any failure to perform and Landlord fails to cure such non-performance within thirty
(30) days after receipt of Tenant’s notice. However, if such non-performance reasonably requires more than thirty (30) days to cure, Landlord shall not be in default if such cure is commenced within such thirty (30) day period
and thereafter diligently pursues such non-performance to completion. If Landlord fails to cure a default within the time period set forth above, Tenant will provide a notice to any Mortgagee of such default pursuant to the terms and conditions of
Subsection 22.2 of this Lease. In the event of a default by Landlord, Tenant, at its option, without further notice or demand and as its sole and exclusive remedies (but subject to the limitations set forth in Subsection 30.1 below), may:
(i) pursue the remedy of specific performance or injunction; or (ii) seek declaratory relief; or (iii) pursue an action for actual and direct damages for loss. Notwithstanding anything herein to the contrary, Landlord shall not be
subject to consequential or special damages, such as damages resulting from loss of business or revenue. Nothing herein contained shall relieve Landlord from its obligations hereunder, nor shall this Section be construed to obligate Tenant to
perform Landlord’s repair obligations. 
 18. LATE CHARGE AND INTEREST.  

18.1 Late Charge. If any payment of Rent is not received by Landlord within ten (10) days after its due date (and whether or
not Landlord has notified Tenant of such delinquency), Tenant shall pay to Landlord on demand as a late charge an additional amount equal to five percent (5%) of the overdue payment. A late charge shall not be imposed more than once on any
particular installment not paid when due, but imposition of a late charge on any payment not made when due does not eliminate or supersede late charges imposed on other (prior) payments not made when due or preclude imposition of a late charge on
other installments or payments not made when due. 
 18.2 Interest. In addition to the late charges referred to above,
which are intended to defray Landlord’s costs resulting from late payments, any payment from Tenant to Landlord not paid when due (including any late charges) shall at Landlord’s option bear interest from the date due until paid to
Landlord by Tenant at the Interest Rate. Acceptance of any late charge and/or interest shall not constitute a waiver of Tenant’s default with respect to the overdue sum/or prevent Landlord from exercising any of its other rights and remedies
under this Lease. 
 18.3 Dishonored Check. If Tenant presents a Dishonored Check to Landlord, in addition to any late
charges and interest Tenant shall pay to Landlord a fee in the amount of $20.00 (or the amount charged by local banks for dishonored checks, whichever is greater) for each instance. If Tenant presents more than two Dishonored Checks to Landlord
during the Term, Landlord may require Tenant to make future Rent payments by certified or cashier’s check. 
 19. WAIVER. No
provisions of this Lease shall be deemed waived by Landlord or Tenant unless such waiver is in a writing signed by the waiving party. The waiver by Landlord or Tenant of any breach of any provision of this Lease shall not be deemed a waiver of such
provision or of any subsequent breach of the same or any other provision of this Lease. No delay or omission in the exercise of any right or remedy of Landlord upon any default by Tenant, or of Tenant upon any default of Landlord, shall impair such
right or remedy or be construed as a waiver. Landlord’s acceptance of any payments of Rent due under this Lease shall not be deemed a waiver of any default by Tenant under this Lease (including Tenant’s recurrent failure to timely pay
Rent) other than Tenant’s nonpayment of the accepted sums, and no endorsement or statement on any check or accompanying any check or payment shall be deemed an accord and satisfaction. Landlord’s or Tenant’s consent to or approval of
any act requiring Landlord’s or Tenant’s consent or approval shall not be deemed to waive or render unnecessary Landlord’s or Tenant’s consent to or approval of any subsequent act. 

20. ENTRY, INSPECTION AND CLOSURE. Upon reasonable oral or written notice to Tenant (and without notice in emergencies), Landlord and its
authorized representatives may enter the Premises at all reasonable times to determine whether the Premises are in good condition, to determine whether Tenant is complying with its obligations under this Lease, to perform any maintenance, repair or
structural enhancement of the Premises or the Building that Landlord has the right or obligation to perform, to install or repair improvements for other tenants where access to the Premises is required for such installation or repair, to serve, post
or keep posted any notices 

  
 -20-

 
required or allowed under the provisions of this Lease, to show the Premises to prospective brokers, agents, buyers, transferees, Mortgagees or tenants, or to do any other act or thing necessary
for the safety or preservation of the Premises or the Building. In cases where prior notice is necessary, Tenant may require that Landlord or its agents be accompanied by a Tenant representative during such entry. When reasonably necessary, Landlord
may temporarily close entrances, doors, corridors, elevators or other facilities in the Building without liability to Tenant by reason of such closure. Landlord shall conduct its activities under this Section 20 in a manner that will minimize
inconvenience to Tenant without incurring additional expense to Landlord. No action by Landlord or Landlord’s Representatives pursuant to this Section 20 shall constitute an eviction of Tenant (constructive or otherwise), entitle Tenant to
an abatement of Rent or to terminate this Lease or otherwise release Tenant from any of Tenant’s obligations under this Lease, and Landlord shall not be liable in any manner for any inconvenience, loss of business or other damage to Tenant or
other persons. 
 21. SURRENDER AND HOLDING OVER.  
 21.1 Surrender. Upon the expiration of the Term of this Lease or termination for any other reason, Tenant shall surrender the Premises and all Improvements and Alterations (which shall then become
the property of Landlord at such time) to Landlord broom-clean and in their original condition, except for reasonable wear and tear, damage from casualty or Condemnation and any changes resulting from approved Alterations. Notwithstanding the above
or anything to the contrary contained in this Lease, prior to the expiration or termination of this Lease, Tenant shall remove from the Premises all (a) telephone, computer, and other cabling installed in the Building by Tenant, (b) Trade
Fixtures, and (c) Tenant’s goods, inventory and personal property, and if requested by Landlord, all Alterations and Improvements, and repair any damage caused by such removal. If such removal is not completed before the expiration or
termination of the Term, Landlord shall have the right (but no obligation) to remove the same, and Tenant shall pay Landlord on demand for all costs of removal and storage thereof and for the Rent value of the Premises for the period from the end of
the Term through the end of the time reasonably required for such removal. Landlord shall also have the right to retain or dispose of all or any portion of such property if Tenant does not pay all such costs and retrieve the property within ten
(10) days after notice from Landlord (in which event title to all such property described in Landlord’s notice shall be transferred to and vest in Landlord). Tenant waives all Claims against Landlord for any damage or loss to Tenant
resulting from Landlord’s removal, storage, retention, or disposition of any such property. Upon expiration or termination of this Lease or of Tenant’s possession, whichever is earliest, Tenant shall surrender all keys to the Premises or
any other part of the Building and shall deliver to Landlord all keys for or make known to Landlord the combination of locks on all safes, cabinets and vaults that may be located in the Premises. Tenant’s obligations under this Subsection 21.1
shall survive the expiration or termination of this Lease. 
 21.2 Holding Over. If Tenant (directly or through any
Transferee or other successor-in-interest of Tenant) remains in possession of the Premises after the expiration or termination of this Lease, Tenant’s continued possession shall be on the basis of a month to month tenancy. In such event, Tenant
shall continue to comply with or perform all the terms and obligations of Tenant under this Lease, except that the monthly Base Rent during Tenant’s holding over shall be one hundred fifty percent (150%) of the Base Rent payable in the
last full month prior to the termination hereof. Acceptance by Landlord of Rent after such termination shall not constitute a renewal of this Lease; and nothing contained in this provision shall be deemed to waive Landlord’s right of re-entry
or any other right hereunder or at law. Tenant shall indemnify, defend and hold Landlord harmless from and against all Claims arising or resulting directly or indirectly from Tenant’s failure to timely surrender the Premises, including
(a) any rent payable by or any loss, cost, or damages claimed by any prospective tenant of the Premises, and (b) Landlord’s foreseeable damages as a result of such prospective tenant rescinding or refusing to enter into the
prospective lease of the Premises by reason of such failure to timely surrender the Premises. 
 22. ENCUMBRANCES.  

22.1 Subordination. This Lease is expressly made subject and subordinate to any Encumbrance. Tenant shall execute and deliver to
Landlord, within ten (10) days after written request therefor by Landlord and in a form reasonably requested by Landlord, any additional documents evidencing the subordination of this Lease with respect to any such Encumbrance and the
non-disturbance agreement of the holder of any such Encumbrance. If the interest of Landlord in the Property is transferred pursuant to or in lieu of proceedings for enforcement of any 

  
 -21-

 
Encumbrance, Tenant shall immediately and automatically attorn to the new owner, and this Lease shall continue in full force and effect as a direct lease between the Purchaser and Tenant on the
terms and conditions set forth in this Lease. 
 22.2 Mortgagee Protection. Tenant agrees to give any Mortgagee, by
registered mail, a copy of any notice of default served upon Landlord, provided that prior to such notice Tenant has been notified in writing (by way of notice of assignment of rents and leases, or otherwise) of the address of such Mortgagee. If
Landlord shall have failed to cure such default within thirty (30) days from the effective date of such notice of default, then Mortgagee shall have an additional thirty (30) days within which to cure such default or if such default cannot
be cured within that time, then such additional time as may be necessary to cure such default (including the time necessary to foreclose or otherwise terminate its Encumbrance, if necessary to effect such cure), and this Lease shall not be
terminated so long as such remedies are being diligently pursued. 
 23. ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS. 

 23.1 Estoppel Certificates. Within ten (10) Business Days after written request therefor, Tenant shall execute
and deliver to Landlord, a certificate stating that this Lease is in full force and effect, describing any amendments or modifications hereto, acknowledging that this Lease is subordinate or prior, as the case may be, to any Encumbrance and stating
any other information Landlord may reasonably request, including the Term, the monthly Base Rent, the date to which Rent has been paid, the amount of any Security Deposit or prepaid Rent, whether either party hereto is in default under the terms of
the Lease, and whether Landlord has completed its construction obligations hereunder (if any), and providing such other information concerning this Lease or the Premises as Landlord may reasonably request. Any person or entity purchasing, acquiring
an interest in or extending financing with respect to the Property shall be entitled to rely upon any such certificate. If Tenant fails to deliver such certificate within ten (10) days after Landlord’s second written request therefor,
Tenant shall be in default of this Lease. 
 23.2 Financial Statements. Upon request by Landlord, not more than once a
year (unless an Event of Default has occurred or Tenant is late in the payment of Rent twice in any calendar year), Tenant shall deliver to Landlord a copy of Tenant’s financial statements (including at least a year end balance sheet and a
statement of profit and loss) for each of the three most recently completed years, prepared in accordance with generally accepted accounting principles (and, if such is Tenant’s normal practice, audited by an independent certified public
accountant), all then available subsequent interim statements, and such other financial information as may reasonably be requested by Landlord or required by any Mortgagee. All such financial statements shall be received by Landlord on confidence
and shall be used by Landlord only for the purposes herein set forth. Landlord shall not deliver any such financial statements to third parties other than (i) parties involved with the sale or financing of the real property or
(ii) Landlord’s advisors (such as attorneys of accountants). 
 24. NOTICES.  

24.1 Notices Generally. Any notice, demand, request, consent or approval that either party desires or is required to give to the
other party under this Lease shall be in writing and shall be served personally, delivered by messenger or courier service (such as Federal Express or any other overnight delivery service), or sent by U.S. certified mail, return receipt requested,
postage prepaid, addressed to the other party at the party’s address for notices set forth in Subsections 2.13 and 2.14 of the Basic Lease Terms. Notices delivered personally will be effective immediately upon receipt (or refusal of delivery or
receipt); notices sent by independent messenger or courier service will be effective one (1) day after acceptance by the independent service for delivery; notices sent by mail in accordance with this Section 24 will be effective three
(3) days after mailing. Either party may change its address for notices hereunder by a notice to the other party complying with this Subsection 24.1. If Tenant sublets the Premises, notices from Landlord shall be effective on the subtenant when
given to Tenant pursuant to this Subsection 24.1. 
 24.2 Replacement of Statutory Notice Requirements. When this Lease
requires service of a notice, that notice shall replace rather than supplement any equivalent or similar statutory notice. When a statute requires 

  
 -22-

 
service of a notice in a particular manner, service of that notice (or a similar notice required by this Lease) in the manner required by Subsection 24.1 shall replace and satisfy the statutory
service-of-notice procedures. 
 25. ATTORNEYS’ FEES.  

25.1 Disputes between Landlord and Tenant. In the event of any Legal Proceedings involving Landlord and Tenant related to this
Lease, the Prevailing Party shall be entitled to recover reasonable attorneys’ fees and court costs in addition to any other relief which may be granted. 
 25.2 Other Litigation. If Landlord, without fault on Landlord’s part, is made a party to any litigation instituted by Tenant or by any third party against Tenant, or by or against any
Transferee or other occupant of the Premises, or otherwise arising out of or resulting from any act or transaction of Tenant or of any such Transferee or occupant, Tenant shall hold Landlord harmless from any judgment rendered against Landlord or
the Premises or any part thereof, and reimburse Landlord upon demand for all costs and expenses, including reasonable attorneys’ fees, incurred by Landlord in connection with such litigation. 

26. QUIET POSSESSION. Subject to Tenant’s full and timely performance of all of Tenant’s obligations under this Lease and subject
to the terms of this Lease, including Section 22 - Encumbrances, Tenant shall have the quiet possession of the Premises throughout the Term as against any persons or entities lawfully claiming by, through or under Landlord.
Notwithstanding the above or anything herein to the contrary, Landlord represents and Tenant acknowledges and agrees that: (a) buildings and structures adjacent to the Property may be demolished, renovated, remodeled, reconstructed, or
constructed, (b) the plaza, walkways, lobbies, and sidewalks immediately within the lobby of and adjacent to the Building may be repaired and/or reconstructed, (c) the proposed construction and repair activity on the Property and on
adjacent property may cause periodic disturbance to Tenant’s use, enjoyment and occupation of the Premises, including, but not limited to, noise and vibration and any other affect that may be classified as a nuisance, (d) Landlord may
establish construction zones on the Property, the adjacent property, the parking areas servicing the Building and within the Building to accommodate the proposed construction and repair activity. Landlord will use economically reasonable efforts to
minimize any disruption to Tenant’s business operations during business hours during the construction/renovation activity, and, to the extent possible, will perform work on the plaza, walkways, lobbies, and sidewalks immediately outside of the
Premises outside of Tenant’s business hours. Tenant acknowledges and agrees that the construction and repair activity on the Property and the adjacent property as set forth above, shall not be deemed to violate the covenant of quiet enjoyment,
constitute constructive eviction, nor entitle Tenant to any abatement of Rent. 
 27. FORCE MAJEURE. If either Landlord or Tenant
is delayed, interrupted or prevented from performing any of their obligations under this Lease, including Landlord’s obligations under the Work Letter (if any), and such delay, interruption or prevention is due to fire, act of God, governmental
act or failure to act, labor dispute, unavailability of materials or any cause outside the reasonable control of the performing party, then the time for performance of the affected obligations of such performing party shall be extended for a period
equivalent to the period of such delay, interruption or prevention. 
 28. RULES AND REGULATIONS. Tenant shall be bound by and
shall comply with the Building Rules. Landlord shall not be responsible to Tenant or to any person for any violation of, or failure to observe, the Building Rules by any other tenant or person. 

29. LANDLORD’S LIABILITY. Except as provided in Section 12 - Release and Indemnification, the term “Landlord”,
as used in this Lease, shall mean Property Reserve, Inc. From and after the date of any conveyance of title to the Building, the transferor Landlord shall be relieved of all liability with respect to Landlord’s obligations to be performed under
this Lease after the date of such conveyance. Notwithstanding any other term or provision of this Lease, the liability of Landlord for its/their obligations under this Lease is limited solely to Landlord’s interest in the Building as the same
may from time to time be encumbered, and no personal liability shall at any time be asserted or enforceable against any other assets of Landlord, nor against Landlord’s partners, members or Affiliates or their respective partners, trustees,
shareholders, members, directors, officers or managers on account of any of Landlord’s obligations or actions under this Lease. Notwithstanding any contrary provision herein, neither Landlord nor the Landlord Representatives shall be liable
under any circumstances for injury or damage to, or interference 

  
 -23-

 
with, Tenant’s business, including but not limited to, loss of profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use, in each case, however
occurring. 
 30. CONSENTS AND APPROVALS.  
 30.1 Determination in Good Faith. Wherever the consent, approval, judgment or determination of Landlord is required or permitted under this Lease and no express standard is specified (e.g.,
“reasonableness”), Landlord shall exercise Landlord’s business judgment in good faith in granting or withholding such consent or approval or in making such judgment or determination. If it is determined that Landlord failed to give
its consent where it was required to do so under this Lease, Tenant shall be entitled to injunctive or declaratory relief but shall not to be entitled to monetary damages or to terminate this Lease for such failure. 

30.2 Limitation of Review. The review and/or approval by Landlord of any item or matter to be reviewed or approved by Landlord
under the terms of this Lease or any Exhibits or Addenda hereto shall not impose upon Landlord any liability for the accuracy or sufficiency of any such item or matter or the quality or suitability of such item for its intended use. Any such review
or approval is for the sole purpose of protecting Landlord’s interest in the Property, and no third parties, including Tenant or Tenant’s Representatives or Visitors or any person or entity claiming by, through or under Tenant, shall have
any rights as a consequence thereof. 
 31. PARKING. Tenant shall be entitled to use the drive aisles in common with all other
tenants of the Property. Tenant shall have the non-exclusive right to use the parking spaces allocated to the Building for Tenant’s employees, guests and invitees in the parking areas on a first-come first-served basis with other tenants of the
Building. Tenant agrees not to use more parking spaces than Tenant’s Share of the parking spaces allocated to the Building or otherwise overburden the parking areas. Tenant agrees to cooperate with Landlord and the other tenants in the use of
the parking areas. Landlord reserves the right to grant exclusive or reserved parking spaces to any tenant of the Property, and to otherwise allocate parking spaces between Tenant and the other tenants of the Property. Landlord also reserves the
right to designate handicapped, loading, and visitor parking stalls. Landlord shall not be responsible for monitoring or enforcing the parking rules and regulations and shall have no liability for failing to so enforce the parking rules and
regulations. 
 32. BROKERS. Landlord shall pay the fee or commission of Tenant’s Broker (defined in Subsection 2.19) in
accordance with Landlord’s separate written agreement with Tenant’s Broker, if any. Each of Landlord and Tenant warrants and represents to the other that in the negotiating or making of this Lease such representing party nor anyone acting
on its behalf has dealt with any broker or finder who might be entitled to a fee or commission for this Lease other than as disclosed herein. Each of Landlord and Tenant shall indemnify and hold the other harmless from any Claims asserted by any
other broker or finder for a fee or commission based upon any dealings with or statements made by the representing party (including Tenant’s Representatives). 
 33. RELOCATION OF PREMISES. Intentionally Omitted. 
 34. ENTIRE AGREEMENT.
This Lease, including the Exhibits and any Addenda attached hereto, and the documents referred to herein, if any, constitute the entire agreement between Landlord and Tenant with respect to the leasing of space by Tenant in the Building, and
supersede all prior or contemporaneous agreements, understandings, proposals and other representations by or between Landlord and Tenant, whether written or oral. Neither Landlord nor Landlord’s Representatives have made any representations or
warranties with respect to the Premises, the Building, the Property or this Lease except as expressly set forth herein, and no rights, easements or licenses shall be acquired by Tenant by implication or otherwise unless expressly set forth herein.
The submission of this Lease for examination does not constitute an option for the Premises and this Lease shall become effective as a binding agreement only upon execution and delivery thereof by both Landlord to Tenant. 

35. MISCELLANEOUS. This Lease may not be amended or modified except by a writing signed by Landlord and Tenant. Subject to Section 16
- Assignment and Subletting and Section 29 - Landlord’s Liability, this Lease shall be binding on and shall inure to the benefit of the parties and their respective successors, assigns and legal representatives. The
determination that any provisions hereof may be void, invalid, illegal or unenforceable shall not impair any other provisions hereof and all such other provisions of this Lease shall remain in full force and

  
 -24-

 
effect. The unenforceability, invalidity or illegality of any provision of this Lease under particular circumstances shall not render unenforceable, invalid or illegal other provisions of this
Lease, or the same provisions under other circumstances. This Lease shall be construed and interpreted in accordance with the Laws (excluding conflict of laws principles) of the State. The provisions of this Lease shall be construed in accordance
with the fair meaning of the language used and shall not be strictly construed against either party. When required by the context of this Lease, the singular includes the plural. Wherever the term “including” is used in this Lease, it
shall be interpreted as meaning “including, but not limited to” the matter or matters thereafter enumerated. The captions contained in this Lease are for purposes of convenience only and are not to be used to interpret or construe this
Lease. If more than one person or entity is identified as Tenant hereunder, the obligations of each and all of them under this Lease shall be joint and several. Time is of the essence with respect to this Lease, except as to the conditions relating
to the delivery of possession of the Premises to Tenant. Neither Landlord nor Tenant shall record this Lease; provided, however, either party hereto, at their cost, may record a memorandum of lease containing the information required by law for such
memorandum. This Lease may be executed in any number of counterparts, each of which shall be deemed an original and when combined together shall constitute one and the same instrument. Any facsimile or copies of original signatures (including those
in electronic medium, such as .pdf, .tif or other electronic files) shall be considered and treated as if they were original signatures. 

36. INDEPENDENT COVENANTS/CONTROLLING NATURE OF LEASE. The parties agree that the terms and conditions of the Lease define and control
their relationship and obligations regarding the Premises, the Building, and the Property. This Lease shall be construed as though the covenants of Tenant are independent and Tenant hereby expressly waives the benefit of any laws to the contrary and
agrees that if Landlord fails to perform its obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord’s expense or to any setoff of the Rent or other amounts owing hereunder
against Landlord (unless that right is expressly set forth herein); provided, however, that the foregoing shall in no way impair the right of Tenant to commence a separate action against Landlord for any violation by Landlord of the provisions
hereof. In addition, Tenant hereby waives any benefits of any applicable existing or future Laws that may permit the termination of this Lease due to any Service Failure or other interruption or failure of any utility or other service, or due to any
damage or destruction to or partial taking of the Premises or the Building under any circumstances. 
 37. REPRESENTATION OF
AUTHORITY. In the event the Tenant hereunder is a corporation, a limited liability company or some other legal entity, the person signing this Lease on behalf of Tenant hereby represents and warrants that he/she has the full right, power and
authority to enter into this Lease without the consent or approval of any other entity or person and make these representations knowing that Landlord will rely thereon, and that this Lease is a binding contract and obligation on Tenant. 

38. SECURITY INTEREST. Tenant hereby grants Landlord a security interest in any Alterations, Improvements, Trade Fixtures, and
Tenant’s goods, inventory and personal property that may be located on or within the Premises from time to time, and authorizes Landlord to file a UCC-1 Financing Statement to perfect such security interest. Tenant hereby represents and
warrants that Tenant’s name is its full and complete name and that the Tenant’s address and other information provided by Tenant in Section 2 - Basic Lease Terms is accurate and true. 

39. OFAC REPRESENTATION. Tenant represents and warrants as of the date of this Lease and continuing throughout the Term of this Lease that
neither Tenant nor any of its respective Affiliates is a Prohibited Person and Tenant and all of its respective Affiliates are in full compliance with all applicable orders, rules, regulations and recommendations of The Office of Foreign Assets
Control of the U.S. Department of the Treasury. Tenant hereby indemnifies, holds harmless and agrees to defend (with counsel acceptable to Landlord) Landlord from any claims, fines, penalties, judgments, costs, and expenses (including, but not
limited to attorney and paralegal fees and costs) that may arise from any violation or alleged violation of the above representation and warranty. In the event of a breach of this representation or warranty, Landlord may immediately terminate this
Lease. 
 40. SECURITY OF PREMISES. Tenant, at its sole cost and expense, shall be solely responsible for providing and
maintaining any security systems servicing solely the Premises. Any alarms emanating from or in connection with the Premises shall be promptly answered and responded to by Tenant. Neither Landlord nor any of Landlord’s Representatives shall be
responsible for or required to take any action to prevent, stop, protect against, 

  
 -25-

 
apprehend, detain or otherwise become involved with any person or persons engaged in any robbery, pilferage, theft, burglary or other illegal action committed against or with respect to the
Premises, the contents within the Premises, Tenant, Tenant’s Representatives or Visitors, notwithstanding the possibility that Landlord may maintain a security system within the Building. Tenant assumes all risk of loss to any of Tenant’s
inventory and property within the Premises and indemnifies, holds harmless, acquits, releases and waives Landlord and Landlord’s Representatives for from, and against all Claims (including damage to the business of Tenant) associated therewith.

 41. OTHER OCCUPANTS. Landlord reserves the absolute right to effect such other tenancies in the Property and the Building in
the exercise of its sole business judgment shall determine to best promote the interests of the Building or Property. Tenant does not rely on the fact, nor does Landlord represent, that any specific tenant or type or number of tenants shall, during
the Lease Term, occupy any space in the Building, Property, or Project. 
 42. BUILDING NAME AND SIGNAGE. Tenant shall not use the
name of the Property or the Building or use pictures or illustrations of the Property, the Building or the Project, in advertising or other publicity or for any purpose other than as the address of the business to be conducted by Tenant in the
premises, without the prior written consent of Landlord. 
  

	43.	SIGNS. 

 43.1
Full Floors. Subject to Landlord’s prior written approval, in its sole discretion, and provided all signs are in keeping with the quality, design and style of the Building, Tenant, if the Premises comprise an entire floor of the
Building, at its sole cost and expense, may install identification signage anywhere in the Premises including in the elevator lobby of the Premises, provided that such signs must not be visible from the exterior of the Building. 

43.2 Multi-Tenant Floors. If other tenants occupy space on the floor on which the Premises are located, Tenant’s identifying
signage shall be provided by Landlord, at Tenant’s cost, and such signage shall be comparable to that used by Landlord for other similar floors in the Building and shall comply with Landlord’s then-current Building standard signage
program. 
 43.3 Prohibited Signage and Other Items. Any signs, notices, logos, pictures, names or advertisements which
are installed and that have not been separately approved by Landlord may be removed without notice by Landlord at the sole expense of Tenant. Tenant may not install any signs on the exterior or roof of the Building or the common areas of the
Property. Any signs, window coverings, or blinds (even if the same are located behind the Landlord-approved window coverings for the Building), or other items visible from the exterior of the Premises or Building, shall be subject to the prior
approval of Landlord, in its sole discretion. 
 43.4 Building Directory. A building directory will be located in the
lobby of the Building. Tenant shall have the right, at Tenant’s sole cost and expense, to designate name strips to be displayed under Tenant’s entry in such directory, provided that in no event shall Tenant be entitled to use a percentage
of such directory that exceeds Tenant’s Share. 
 44. BUILDING RENOVATIONS. It is specifically understood and agreed that
Landlord has made no representation or warranty to Tenant and has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, the Building, the Property, or any part thereof and that no
representations respecting the condition of the Premises, the Building, the Property or the Project have been made by Landlord to Tenant, except as specifically set forth in this Lease or in the Work Letter. However, Tenant hereby acknowledges that
Landlord may during the Lease Term make Renovations to the Property, the Building and/or the Premises including without limitation the parking facilities, common areas, systems and equipment, roof, and structural portions of the same, and in
connection with any Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in the Building or at the Property, limit or eliminate access to portions of the Property, including portions of the common areas, or
perform work in the Building or at the Property, which work may create noise, dust or leave debris in the Building or at the Property. Tenant hereby agrees that such Renovations and Landlord’s actions in connection with such Renovations shall
in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility or for any reason be liable to 

  
 -26-

 
Tenant for any direct or indirect injury to or interference with Tenant’s business arising from the renovations, nor shall Tenant be entitled to any compensation or damages from Landlord for
loss of the use of the whole or any part of the Premises or of Tenant’s personal property or improvements resulting from the Renovations or Landlord’s actions in connection with such Renovations, or for any inconvenience or annoyance
occasioned by such Renovations or Landlord’s actions. 
 45. LIMITATION OF ACTIONS AGAINST LANDLORD. Any claim, demand or
right of any kind by Tenant which is based upon or arises in connection with this Lease shall be barred unless Tenant commences an action thereon within twelve (12) months after the date that the act, omission, event or default upon which the
claim, demand or right arises, has occurred. 
 46. NONDISCLOSURE OF LEASE TERMS. Tenant acknowledges and agrees that the terms of
this Lease are confidential and constitute proprietary information of Landlord. Disclosure of the terms could adversely affect the ability of Landlord to negotiate other leases and impair Landlord’s relationship with other tenants. Accordingly,
Tenant agrees that it, and its partners, officers, directors, employees and attorneys shall not intentionally and voluntarily disclose the terms and conditions of this Lease to any other tenant or apparent prospective tenant of the Building or
Property, either directly or indirectly, without the prior written consent of Landlord, provided, however, that Tenant may disclose the terms to prospective subtenants or assignees under this Lease. 

47. CHANGES REQUESTED BY LENDER. If, in connection with obtaining financing for the Property, Landlord’s lender shall request
reasonable modifications in this Lease as a condition to the financing, Tenant will not unreasonably withhold or delay its consent, provided that the modifications do not materially increase the obligations of Tenant or materially and adversely
affect the leasehold interest created by this Lease. Under no circumstances shall Tenant be obligated to agree to any modification of the Lease that increases the amount payable by Tenant under the Lease, affects the length of the Term or any
renewal or termination rights granted to Tenant or changes the size or location of the Premises. 
 48. TRANSPORTATION MANAGEMENT.
Tenant shall fully comply with all current or future compulsory programs imposed by any public authority, intended to manage parking, transportation, or traffic in and around the Building and Property. In connection with this compliance, Tenant
shall take responsible action for the transportation planning and management of all employees located at the Premises by working directly with Landlord, any government transportation management organizations, or other transportation-related
committees or entities. This provision includes programs such as the following: (a) restrictions on the number of peak-hour vehicle trips generated by Tenant; (b) encouragement of increased vehicle occupancy through employer-sponsored
financial or in-kind incentives; (c) implementation of an in-house or area-wide ridesharing program and appointment of an employee transportation coordinator; and (d) flexible work shifts for employees. 

49. PRIOR DRAFTS. If the parties delete any provision appearing in any prior drafts of this Lease, this Lease shall be interpreted as if
the deleted language were never part of this Lease. 
 50. PRIOR LEASE. The parties acknowledge and agree that they are parties to
that certain Quadrangle Business Park Office Lease Agreement dated April 21, 2006 (collectively, as amended and assigned, the “Prior Lease”). It is the intention of the parties that this Lease shall, effective as of the Commencement
Date of the Term, supersede and replace the Prior Lease in its entirety, and the Prior Lease shall be and become null and void as of such date. In the event this Lease is not fully executed by both Landlord and Tenant, the Prior Lease shall remain
in full force and effect. 
 51. SEC FILING. Tenant shall have the right to file this Lease with the U.S. Securities and Exchange
Commission without giving prior notice to or obtaining consent from the Landlord. 
 [SIGNATURES ON NEXT PAGE] 

  
 -27-

 IN WITNESS WHEREOF, Landlord and Tenant have entered into this Lease as of the date first
above written. 
  

			
	LANDLORD:
	
	
	PROPERTY RESERVE, INC.,
	a Utah nonprofit corporation
		
	By:	 	/s/ Kent C. Gibson
	Name (Print):	 	Kent C. Gibson
	Title:	 	Vice-President

  

			
		
	By:	 	/s/ Matthew A. Baldwin
	Name (Print):	 	Matthew A. Baldwin
	Title:	 	Vice-President

  

			
	TENANT:
	
	CEMPRA PHARMACEUTICALS, INC.,
	a Delaware corporation
		
	By:	 	/s/ Prabhavathi Fernandes Ph.D.
	Name (Print):	 	Prabhavathi Fernandes Ph.D
	Title:	 	President and CEO

  
 -28-

 Cempra 
 Quadrangle IV 
  

 EXHIBIT “A” 

DEFINED TERMS 

“Additional Rent” means any charge, fee or expense, including any parking charges, Tenant’s Share of Expenses, any late fees,
and/or interest, but excluding Base Rent, payable by Tenant under this Lease, however denoted. 
 “Affiliate” means any
corporation, person or other entity that, directly or indirectly controls, is controlled by, or is under common control with Tenant or Landlord, or to any corporation or other entity resulting from a merger or consolidation with Tenant or Landlord,
as the case may be. As used herein, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a person or entity, whether through ownership of
voting securities, by contract or otherwise. 
 “Alterations” mean any alterations, improvements or changes to the Premises
(including installation of any security system or telephone or data communication wiring), other than the Improvements. 

“Award” shall mean all compensation, sums, or anything of value awarded, paid or received on a total or partial Condemnation.

 “Base Year Insurance Costs” mean the Insurance Costs for the calendar year specified as the Base Year in Subsection 2.8
(excluding therefrom any deductibles paid during such year). 
 “Base Year Operating Costs” mean the Operating Costs for the
calendar year specified as the Base Year in Subsection 2.8 (excluding therefrom, however, any Operating Costs of a nature that would not ordinarily be incurred on an annual, recurring basis). 
 “Base Rent” means the base rent specified in Subsection 2.7. 
 “Base Year
Taxes” mean Taxes for the calendar year specified as the Base Year in Subsection 2.8. 
 “Basic Lease Terms” mean the
basic lease terms set forth in Section 2 of this Lease. 
 “Building” means the building described in Subsection 2.1.

 “Building Rules” mean the rules and regulations attached to and made a part of this Lease as Exhibit E as well as any
reasonable rules and regulations hereafter adopted by Landlord for all tenants of the Building, upon notice to Tenant thereof. 

“Building Systems” mean the mechanical, elevator, plumbing, electrical, fire protection, life safety, security or other systems in the
Building. 
 “Business Days” mean weekdays except not more than twelve (12) holiday days per calendar year as designated
by Landlord and any holidays or non-working days designated by executive order or necessitated by war, riots, civil disturbances, emergencies, a risk of health or safety (as reasonably determined by Landlord in its sole discretion), or natural
catastrophes. In designating holidays Landlord will, as closely as possible, follow the state and national holidays. 
 “Business
Hours” mean the business hours set forth in the Building Rules attached hereto as Exhibit E. 
 “Capital
Improvements” mean improvements to the Building or the Property (excluding any maintenance, repairs, replacements of components of Building Systems, and any improvements that cost less than $25,000) that are required to be capitalized over
a period in excess of 10 years. 

  
 A-1

 Cempra 
 Quadrangle IV 
  

 “Claims” mean claims, actions, demands, liabilities, damages, costs, penalties, fines,
losses, or expenses, including, without limitation, reasonable attorneys’ and paralegal fees, consulting fees, expert and witness fees, investigative and discovery costs, copy costs, and other costs incurred in defending against the same.

 “Commencement Date of Term” means the date set forth in Basic Terms as the Commencement Date of the Term, subject to the
terms and conditions of Section 4 - Term. 
 “Condemnation” means (a) a permanent taking (or a temporary
taking for a period extending beyond the end of the Term) pursuant to the exercise of the power of condemnation or eminent domain by any Condemnor, whether by Legal Proceedings or otherwise, or (b) a voluntary sale or transfer by Landlord to
any such authority, either under threat of condemnation or while Legal Proceedings for condemnation are pending. 
 “Condemnor”
means any public or quasi-public authority, private corporation or individual having the power of condemnation. 
 “Date of
Condemnation” means the earlier of the date that title to the property taken is vested in the Condemnor or the date the Condemnor has the right to possession of the property being condemned. 

“Dedicated HVAC Unit” means a system dedicated to Tenant’s computers or other equipment. 

“Direct Costs” mean all costs and expenses incurred by Landlord related to the maintenance or repair of the Premises or for the sole
benefit of Tenant that are not included as Operating Costs. 
 “Dishonored Check” means any check or draft not honored for lack
of sufficient funds or any other reason by the institution upon which it is issued. 
 “Encumbrance” means any mortgage, deed
of trust, ground lease, underlying lease or like encumbrance affecting any part of the Property or any interest of Landlord therein which is now existing or hereafter executed or recorded. 
 “Environmental Requirements” mean all present and future Laws, orders, permits, licenses, approvals, authorizations and other requirements of any kind applicable to Hazardous Materials.

 “Event of Default” means the occurrence of any of the events specified in Subsection 17.1 of this Lease. 

“Expenses” mean the total amount of: (a) Taxes in excess of the Base Year Taxes, if applicable, (b) Operating Costs in excess
of the Base Year Operating Costs, if applicable, and (c) Insurance Costs in excess of the Base Year Insurance Costs, if applicable, due and payable with respect to the Property during any calendar year of the Term. 

“Final Plans” mean the final plans and specifications for the Improvements and any Alterations, or any other improvements to the
Building, as the case may be, that reflect the agreed upon resolution of Landlord’s Comments. 
 “Governmental Controls”
mean mandatory or voluntary controls or guidelines on Landlord or the Property relating to the use or conservation of energy or utilities or the reduction of automobile or other emissions or reduction or management of traffic or parking related to
the Property. 
 “Hazardous Materials” mean any substance: (a) that now or in the future is regulated or governed by,
requires investigation or remediation under, or is defined as a hazardous waste, hazardous substance, pollutant or containment under any governmental statute, code, ordinance, regulation, rule or order, and any amendment thereto, including for
example only the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §9601 et seq., and the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., or (b) that is toxic, explosive, corrosive,
flammable, radioactive, carcinogenic, dangerous or otherwise hazardous, including gasoline, diesel fuel, petroleum hydrocarbons, polychlorinated biphenyls (PCBs), asbestos, radon and urea formaldehyde foam insulation. 

“HVAC” means the heating, ventilating and air-conditioning systems of the Building. 

  
 A-2

 Cempra 
 Quadrangle IV 
  

 “Improvements” mean the improvements to be made to the Premises pursuant to the Work
Letter. 
 “Insurance Costs” means the costs and expenses associated with obtaining and maintaining property (including
coverage for earthquake and flood if carried by Landlord), liability, rent income, boiler and machinery, and any and all other insurance, including deductibles relating to the Property, and expenditures for deductible amounts paid under such
insurance, as the same may be calculated pursuant to Section 13.3. 
 “Interest Rate” means the rate of eighteen percent
(18%) per annum or the maximum lawful rate that Landlord may charge to Tenant under applicable Laws, whichever is less. 

“Interference” means any electromagnetic field, radio frequency, audio frequency, radiation, or other emission that may interfere with,
disrupt, or adversely affect the use or operation of any electronic or other equipment or devices. 
 “Landlord” means Property
Reserve, Inc., a Utah non-profit corporation, and its successors and assigns; provided, however, as used in this Lease, so far as covenants or agreements on the part of Landlord are concerned, the term Landlord shall be limited to mean and include
only the owner or owners of Landlord’s interest in this Lease at the time in question, and in the event of any transfer or transfers of such interest Landlord herein named (and in case of any subsequent transfer, the then transferor) shall be
automatically freed and relieved from and after the date of the assumption of all responsibility on the part of Landlord contained in this Lease thereafter to be performed. 
 “Landlord Parties” means the Landlord, the Property Manager, any Mortgagee and any Affiliates of the foregoing, and all of their respective officers, directors, employees, shareholders,
members, partners, agents, servants, and contractors. 
 “Landlord’s Knowledge” means the actual knowledge of the Property
Manager’s manager of the Building. 
 “Landlord’s Representatives” mean Landlord, its employees, agents, and
servants. 
 “Laws” mean any law, regulation, rule, order, statute or ordinance of any governmental or private entity in effect
at any time during the Term and applicable to the Property and Tenant’s use thereof, including, but not limited to, building, fire and safety codes and regulations, conditional use permits, certificates of occupancy, Environmental Requirements,
and the Americans with Disabilities Act. 
 “Lease” means this Office Lease Agreement. 

“Lease Year” means the period commencing the first day of the first calendar month following the Commencement Date of the Term and
continuing for twelve consecutive calendar months. 
 “Legal Proceedings” mean any arbitration, litigation or judicial
proceeding including any bankruptcy proceeding and appeals. 
 “Mortgagee” means the holder of any Encumbrance covering any
part of the Property. 
 “Operating Costs” mean all costs of managing, operating, insuring, maintaining, repairing, renewing,
and replacing the Property, including, without limitation, all costs, expenditures, fees and charges for: (a) operation, maintenance and repair of the Property (including, without limitation, maintenance, repair, renewal, and replacement of
glass, the roof covering or membrane, and landscaping; (b) utilities and services (including telecommunications facilities and equipment, recycling programs and trash removal), and associated supplies and materials; (c) compensation
(including employment taxes and fringe benefits) for persons who perform duties in connection with the management, operation, maintenance and repair of the Building; (d) licenses, permits and inspections; (e) complying with the
requirements of any Laws; (f) amortization of Capital Improvements, with interest on the unamortized balance at the rate paid by Landlord on funds borrowed to finance such Capital Improvements (or, if Landlord finances such Capital Improvements
out of Landlord’s funds without borrowing, the rate that Landlord would have paid to borrow such funds, as reasonably determined by Landlord), over such useful life as Landlord shall 

  
 A-3

 Cempra 
 Quadrangle IV 
  

 
reasonably determine; (g) an office in the Building for the management of the Property, including expenses of furnishing and equipping such office and the rent value of any space occupied
for such purposes; (h) property management fees (which may be paid to an Affiliate of Landlord), or in lieu of such management fees, a reasonable administrative fee to compensate Landlord for managing the Property; (i) accounting, legal
and other professional services incurred in connection with the operation of the Property and the calculation of Operating Costs and Taxes; (j) contesting the validity or applicability of any Laws that may affect the Property; (k) the
Building’s share of any shared or common area maintenance fees and expenses (including, without limitation, fees and expenses relating to common areas and facilities shared with other occupants in the Project); and (l) any other expense or
charge, which in accordance with generally accepted property management practices would be considered an expense of managing, operating, maintaining, repairing and replacing the Property, the Building Systems, and the components thereof; excluding,
however, any Operating Costs Exclusions. The above enumeration of services and facilities shall not be deemed to impose an obligation on Landlord to make available or provide such services or facilities except to the extent if any that Landlord has
specifically agreed elsewhere in this Lease to make the same available or provide the same. 
 “Operating Costs Exclusions”
mean (a) Capital Improvements (except as otherwise provided above); (b) costs of special services rendered to individual tenants (including Tenant) for which a special charge is made; (c) interest and principal payments on loans or
indebtedness secured by the Building; (d) costs of leasehold improvements for Tenant or other tenants of the Building; (e) costs of services or other benefits of a type which are not available to Tenant but which are available to other
tenants or occupants, and costs for which Landlord is reimbursed by other tenants of the Building other than through payment of tenants’ shares of increases in Operating Costs and Taxes; (f) leasing commissions, attorneys’ fees and
other expenses incurred in connection with leasing space in the Building or enforcing such leases; (g) costs, fines or penalties incurred due to Landlord’s violation of any Law; (h) advertising and promotional expenses;
(i) nonrecurring costs incurred to remedy structural defects in the original construction of the Building; and (j) repairs or other work needed due to fire, windstorms, or other casualty or cause actually insured against by Landlord or to
the extent the Landlord’s insurance required under Subsection 13.3 - Landlord’s Insurance would have provided coverage, whichever is greater. 
 “Permitted Use” means the use set forth in Subsection 2.3. 

“Premises” means the premises described in Subsection 2.2. 
 “Prevailing Party” means the party receiving substantially the relief desired whether by settlement, dismissal, summary judgment, judgment, or otherwise. 

“Prohibited Person” means any person or entity; (a) listed in the Annex to, or otherwise subject to the provisions of, the
Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (the “Executive
Order”); (b) that is owned or controlled by, or acting for or on behalf of, any person or entity that is listed to the Annex to, or is otherwise subject to the provisions of, the Executive Order; (c) with whom Landlord is prohibited
from dealing or otherwise engaging in any transaction by any terrorism or money laundering law, including the Executive Order; (d) who commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive
Order; (e) that is named as a “specially designated national and blocked person” on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official website,
www.ustreas.gov/offices/enforcement/ofac or at any replacement website or other replacement official publication of such list; or (f) who is an Affiliate of or affiliated with a person or entity listed above. 

“Prime Rate” means the prime lending rate published in the Wall Street Journal. If the Wall Street Journal is no longer published or no
longer publishes the Prime Rate, the parties shall mutually agree upon a substitute publication or financial institution. 

“Project” means Quadrangle Business Park being an office park consisting of five (5) buildings located on real property described
on Exhibit “F” attached hereto, as the same may be expanded or otherwise revised from time to time. 

  
 A-4

 Cempra 
 Quadrangle IV 
  

 “Property” means the Building and the real property upon which the Building is built
including adjacent walkways, sidewalks, landscaping, etc. 
 “Property Manager” means Cassidy Turley, or any other party
appointed from time to time by Landlord to act as the property manager. 
 “Rent” means Base Rent and Additional Rent.

 “Renovations” means any renovations, alterations, improvements or modifications made to the Building or the Property by
Landlord. 
 “RSF” means Rentable Square Feet, the total number of square feet of both the Building and the Premises, including
an allocation of common area, in accordance with the method for calculating “rentable area” under the Building Owners and Managers Association Standard Method for Measuring Floor Area in Office Buildings (ANSI Z65.1-1996). 

“Rental Tax” means rent, excise, sales or transaction privilege taxes arising out of this Lease (excluding, however, state and federal
personal or corporate income taxes measured by the income of Landlord from all sources) imposed by any taxing authority upon Landlord or upon Landlord’s receipt of any Rent payable by Tenant pursuant to the terms of this Lease. 

“Security Deposit” means the amount set forth in Subsection 2.11. 
 “Service Failure” means an interruption in, a disruption of, or failure or inability to provide any services or utilities to the Premises or Building for any reason. 

“Standard Tenant Finishes” mean all Improvements and Alterations of substantially the same quality and nature as the other Improvements
constructed within the Building by other tenants. 
 “State” means the state where the Premises are located. 

“Taxes” mean: all real property taxes and general, special or district assessments or other governmental impositions, of whatever kind,
nature or origin, imposed on or by reason of the ownership or use of the Property; governmental charges, fees or assessments for transit or traffic mitigation (including area-wide traffic improvement assessments and transportation system management
fees), housing, police, fire or other governmental service or purported benefits to the Property; personal property taxes assessed on the personal property of Landlord used in the operation of the Property; service payments in lieu of or in
substitution for existing or additional real or personal property taxes on the Property or the personal property described above; any increases in the foregoing caused by changes in assessed valuation, tax rate or other factors or circumstances; and
the reasonable cost of contesting by appropriate proceedings the amount or validity of any taxes, assessments or charges described above. To the extent paid by Tenant or other tenants as Tenant’s Taxes, Tenant’s Taxes shall be excluded
from Taxes. 
 “Telecommunication Equipment” means satellite dishes, antenna, or other equipment and related devices,
associated with the transmission of data (either analog or digital). 
 “Telecommunication Facilities” mean Telecommunication
Lines and Telecommunication Equipment. 
 “Telecommunication Lines” mean telecommunication, telephone, speaker, or data lines,
cables, wires, or conduits. 
 “Tenant” means the person or entity identified as the tenant in this Lease. 

“Tenant Delays” mean any delays caused by Tenant’s failure to comply with the time deadlines set forth in the Lease or the Work
Letter, if applicable, Tenant’s failure to provide any plans, comments or approvals when due hereunder or the Work Letter, if applicable, Tenant’s requests for any change orders, Tenant’s failure to deposit any

  
 A-5

 Cempra 
 Quadrangle IV 
  

 
amounts to be deposited with Landlord hereunder, or the Work Letter, if applicable, or Tenant’s acts, failure to act or interference of any kind that causes a delay the completion of any
Improvements or the performance of Landlord’s obligations under the Lease or the Work Letter, if applicable. 
 “Tenant’s
Broker” means the broker retained by Tenant and described in Subsection 2.19. 
 “Tenant’s Representatives” means
Tenant, its partners, members, managers, officers, directors, employees, agents, servants, contractors, assigns, representatives, licensees, and permitted subtenants. 
 “Tenant’s Share” means a fraction, the numerator of which is the RSF of the Premises and the denominator of which is ninety-five percent (95%) of the RSF of the Building. An
approximation of Tenant’s Share as of the date of this Lease is set forth in Subsection 2.9. 
 “Tenant’s Taxes” mean
(a) all taxes, assessments, license fees and other governmental charges or impositions levied or assessed against or with respect to Alterations, Improvements, Trade Fixtures, and Tenant’s goods, inventory and personal property in the
Premises, whether any such imposition is levied directly against Tenant or levied against Landlord or the Property, (b) all Rental Tax, and (c) any increase in Taxes attributable to inclusion of a value placed on Alterations, Improvements,
Trade Fixtures, and Tenant’s goods, inventory and personal property. 
 “Term” means the period of time commencing as of
the Commencement Date of the Term and continuing for the length of the Term as set forth Subsection 2.6. 
 “Trade Fixtures”
mean any and all furnishings, fixtures, equipment, Lines, movable partitions, business equipment and other trade fixtures. 

“Transfer” means an assignment, mortgage, pledge, hypothecation or encumbrance of this Lease or any interest therein, or subletting or
granting a license, concession or any other interest in the Premises, or permitting the use or occupancy of the Premises or any part thereof by or for the benefit of anyone other than Tenant, or in any other manner transferring all or any part of
Tenant’s rights or interests under this Lease. 
 “Transferee” means an assignee, mortgagee, subtenant, licensee,
concessionaire, user or other transferee. 
 “Visitors” mean Tenant’s guests, customers, visitors, and invitees.

 “Work Letter” means the work letter attached to this Lease as Exhibit C. 

  
 A-6

 Cempra 
 Quadrangle IV 
  

 EXHIBIT “B” 

FLOOR PLAN OF PREMISES 
 

 

  
 B-1

 Cempra 
 Quadrangle IV 
  

 EXHIBIT “C” 

WORK LETTER 
 Prior to or
within a reasonable period of time following the Commencement Date Landlord to clean/shampoo carpets and apply touch-up paint where needed. 

  
 C-1

 Cempra 
 Quadrangle IV 
  

 EXHIBIT “D” 

MEMORANDUM OF LEASE TERMS/ 
 FIRST LEASE AMENDMENT 
 Re: Lease dated
                     between PROPERTY RESERVE, INC., Landlord, and
                                    , Tenant, concerning Suite
                     located in
                    . 
 In
accordance with the Lease, we wish to advise and/or confirm as follows: 
  

	1.	That the Premises have been accepted herewith by the Tenant as being substantially complete in accordance with the Lease and the Work Letter, and that there is no
deficiency in construction. 

  

	2.	That the Tenant has accepted possession of the Premises in its “AS-IS” condition and “WITH ALL FAULTS”, subject only to Landlord’s warranty in
the Work Letter. 

  

	3.	That Tenant has received any improvement allowance payable by Landlord to Tenant under the Lease. 

 

	4.	That the rentable square footage of the Premises is
                     and the usable square footage is
                    . 

  

	5.	That the Term of the Lease commenced as of
                            , for a term of
             months, ending on
                                . 

 

	6.	That the amount of Base Rent payable during the Term is as follows: 

  

							
	Period	 	Rate Per RSF	 	Annual Base Rent	  	Monthly Base Rent
		 		 		  	

  

	7.	That Tenant’s proportionate share of Expenses is             %. 

 

	8.	That the Base Year is the calendar year             . 

 

	9.	Tenant has deposited with Landlord a security deposit in the amount of
                        . 

  

	10.	That the undersigned Tenant claims no right, title or interest in the Premises, or right to the possession of said Premises other than under the terms of said Lease,
and that there are no written or oral agreements between Landlord and Tenant that modify the Lease. 

  

	11.	Landlord is not in default or breach of any of Landlord’s obligations under the Lease. 

 The terms set forth herein shall supervise any contrary or inconsistent terms in the Lease, and in such an event, this document shall operate as an amendment to the lease, whereby any contrary and
inconsistent terms in the Lease are amended hereby. 

  
 D-1

 Cempra 
 Quadrangle IV 
  

 AGREED AND ACCEPTED 
  

									
	
                         
                           ,
 a
                                         
       
	 		 	 PROPERTY RESERVE, INC.,
 a Utah nonprofit corporation

					
	By:	 	 	 		 	By:	 	 
	Title:	 	 	 		 	Title:	 	 
	Date:	 	 	 		 	Date:	 	 

  
 D-2

 Cempra 
 Quadrangle IV 
  

 EXHIBIT “E” 

BUILDING RULES 
  

	1.	The doors, sidewalks, passages, exits, and entrances shall be used for ingress and egress and shall not be obstructed. Tenant shall use reasonable efforts to keep such
areas clean and free from rubbish. 

  

	2.	Loitering anywhere in the Property shall not be permitted. Landlord reserves the right to exclude or expel from the Property any person who, in the judgment of
Landlord, is under the influence of liquor or drugs or who shall in any manner do any act in violation of the Building Rules. 

  

	3.	Alterations in any way to the interior or exterior of the Premises including attaching pictures, certificates, licenses, and similar items may be done only in a
reasonable manner, subject to review by Landlord. 

  

	4.	Tenant shall not alter, paint, cover, obstruct, screen, tint, install curtains, draperies, blinds, or shades, or obscure any window, shall not affix any signs,
advertisements, or notices on or to any window, and shall not have any window treatment other than building standard as established by Landlord, without the written consent of Landlord. 

 

	5.	All Tenant identification in the public areas of the Property must be installed and approved by Landlord based on the standard signage as established by Landlord.

  

	6.	The location of electrical, telephone, computer or other wiring and of related outlets must be pre-approved prior to installation in writing by Landlord. Such items
shall be installed by qualified personnel in accordance with building codes applicable to the Property and the Premises and scheduled with the Landlord’s property manager. 

 

	7.	No items of unusual size or weight shall be used or placed in the Property without Landlord’s written permission. In no event shall any floor be overloaded as
determined by a competent engineer. 

  

	8.	The moving of any of Tenant’s business or personal furniture, equipment, inventory, or other items in or out of the Building or Premises will be at a time and in a
manner designated by Landlord. 

  

	9.	No Tenant shall use or keep any foul or noxious gas or substance which may in any manner be offensive or objectionable to Landlord or other occupants of the Property.
No noises, vibrations, odors, or activities bothersome to other Tenants will be allowed in the Premises or on the grounds of the Property. 

  

	10.	No animals, fish, birds, etc., are allowed within the Building without Landlord’s written permission. 

 

	11.	The Tenant is prohibited from storing goods, wares, or merchandise other than normal office supplies in the Building or Premises in areas not acceptable to Landlord for
storage. No auction, public or private, will be permitted in the Premises. 

  

	12.	All Tenant requests for service or maintenance to the Landlord will be made by notifying the Landlord or its agents at a designated location. Landlord’s agents or
contractors shall not perform any work or do anything outside of their regular or contracted duties unless under special written instructions from the Landlord. 

 

	13.	 All keys shall be obtained from Landlord, and all keys shall be returned to Landlord upon termination or expiration of Tenant’s Lease. No
duplicate keys shall be made without Landlord’s approval. Tenant is responsible to control the keys to the Premises, and Tenant shall pay for lost keys. Tenant shall not change the locks or install other locks on the doors without
Landlord’s written approval. If Landlord 

  

 Cempra 
 Quadrangle IV 
  

	 	
gives Tenant written approval to change locks, then Tenant will provide Landlord with keys. Keys shall include any key cards used in a card access system. 

 

	14.	Tenant is responsible to lock and secure all doors to the Premises after regular business hours or after entering or leaving on non-business days. Landlord is not
responsible to respond to after-hours tenant lockouts. Tenant is responsible for the security of the Premises and under no circumstances shall Landlord be responsible for any theft, pilferage or loss occurring within the Premises or Property.

  

	15.	The following acts shall not be allowed or suffered to be done nor conditions allowed to exist upon the Premises or any part thereof: 

 

	 	a.	Any violation of any federal, state, or municipal statute or ordinance, or any regulation, order, or directive of a governmental agency, as such statutes, ordinances,
regulations, orders or directives now exist or may hereafter provide concerning the use and safety of the Premises. 

  

	 	b.	Any violation of any certificate of occupancy covering of affecting the use of the Premises or any part hereof. 

 

	 	c.	Any public or private nuisance. 

  

	 	d.	The display or distribution of drug paraphernalia or sexually related paraphernalia, except as the same may be legally dispensed by a physician or surgeon, dentist, or
pharmacist, duly licensed to practice such profession in the State. 

  

	 	e.	The manufacture, distribution, sales, or dispensing in any manner of illegal drugs, or any type of illegal drug activity or consumption. 

 

	 	f.	The sale or dispensing of alcoholic beverages. 

  

	 	g.	The showing, displaying, viewing, renting, or selling of movie films within the Premises which would be classified as “X” or “R”-rated under present
standards of criteria for such classification and rating. 

  

	 	h.	Gambling. 

  

	 	i.	The establishment or maintenance of a bawdy house, bar, nightclub, or tavern. 

 

	 	j.	Any other act or condition, which shall be lewd, obscene, or licentious. 

  

	 	k.	Performance of abortions 

  

	 	l.	Mark, or drive nails, screw or drill into the partitions, woodwork or plaster or otherwise deface its Premises or any part hereof. This shall exclude the hanging of
pictures, artwork, etc. 

  

	 	m.	Smoking shall not be permitted within the Building or other areas of the Property designated as “non-smoking.” Landlord may designate “smoking
areas” outside of the Building. 

  

	16.	 Landlord shall have the right to regulate parking on the Property in a manner beneficial to the Property. Landlord shall have the right to re-stripe
parking stalls, lanes, and other areas as the Landlord deems reasonably necessary to control parking access. Landlord may refuse to permit any person who violates the rules to park in the parking lot, and any violation of the rules shall subject the
car to removal. No 

  

 Cempra 
 Quadrangle IV 
  

	 	
extended period parking for campers, trailers, motor homes, emergency equipment, or other nonstandard sized vehicles is permitted. 

 

	17.	Tenant shall not use the Property, Premises, or parking facilities for housing or sleeping without the written consent of the Landlord. 

 

	18.	Landlord shall in no case be liable for damages for any error with regard to the admission to or exclusion from the Premises of any person. In the case of invasion, mob
riot, public excitement, or other circumstances rendering such action advisable in Landlord’s opinion, Landlord reserves the right to prevent access to the Building, the Premises and/or the Property during the continuance of the same by such
action as Landlord may deem appropriate, including closing doors and restricting access to public areas of the Property. 

  

	19.	Each Tenant shall see that appliances and utilities are shut off as appropriate before Tenant or Tenant’s employees leave the Premises. Tenant is required to
prevent controllable waste or damage in all aspects of the Premises from any default or carelessness. All tenants shall keep the doors to the Building’s corridors closed at all times, except for ingress and egress, unless door is equipped with
an approved magnetic door holder. 

  

	20.	Except as provided in the Lease, Tenant shall not install any radio or television antenna, or satellite dish, loudspeaker, or other device on the roof or exterior walls
of the Building without Landlord’s written permission, which may be granted or withheld in Landlord’s sole and absolute discretion. 

  

	21.	Each Tenant shall store all its refuse or waste within its Premises and dispose of such refuse or waste only in accordance with all applicable local, state, and federal
regulations and laws. 

  

	22.	Tenant is not allowed to disturb, solicit, or canvass any occupant of the Building and shall cooperate to prevent same. Canvassing, soliciting, distributing handbills
or any other written material, or peddling on the Property is prohibited. 

  

	23.	Tenant agrees to enforce and, as necessary, to acquaint all persons doing business with Tenant with the Building Rules. 

 

	24.	The failure of Landlord to enforce any of the Building Rules against any other tenant in the Building shall not be deemed a waiver of any of such Building Rules.
Landlord shall not be liable to Tenant for violation of any of the Building Rules or the breach of any covenant or condition in any lease by any other Tenant in the Building. 

 

	25.	Landlord shall control and operate the public portions of the Building, and the public facilities, and heating and air conditioning, as well as facilities furnished for
the common use of Tenant. Such control and operation shall be accomplished in a manner consistent with the best interests of the tenants in general. Tenant shall not obstruct, alter or in any way impair the effective operation of the heating and air
conditioning, electrical, fire, safety, or lighting systems, and Tenant shall not tamper with or change any of the thermostats or temperature control valves in the Building except those that are in Tenant’s Premises and are provided exclusively
for Tenant’s use. 

  

	26.	Tenant shall not use or keep in the Premises or on the Property any kerosene, gasoline, or other flammable or combustible fluid or material, and shall not use any
method of heating or air conditioning not acceptable to Landlord. 

  

	27.	All damage done to the Premises, the Building or the Property by the installation or removal of any property of Tenant, or done by Tenant’s property while in the
Premises, shall be repaired at the expense of Tenant. 

  

 Cempra 
 Quadrangle IV 
  

	28.	Plumbing fixtures and appliances shall be used only for their intended purposes, and Tenant shall not deposit any sweepings, rubbish, rags, or other unsuitable
substances therein. Damage resulting from misuse shall be paid for by Tenant. 

  

	29.	Landlord shall not be responsible for any loss or theft or damage to personal property in the Premises or the Property from any cause whatsoever, whether or not such
loss, theft, or damage occurs when the Premises or other portions of the Property are locked against entry. 

  

	30.	Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency.

  

	31.	In the event of any conflict between these Building Rules and the Lease with Tenant, the provisions of the Lease shall be controlling. 

 

	32.	Tenant shall participate in, to the extent possible and under the direction of the Landlord, the preparation and implementation of an emergency response plan. The
Tenant shall provide individuals to assist with the carrying-out of any emergency response plan. 

  

	33.	Tenant shall only permit smoking in areas designated from time-to-time by Landlord 

  

 Cempra 
 Quadrangle IV 
  

 EXHIBIT “F” 

DESCRIPTION OF PROJECT REAL PROPERTY 
 Being all of Lot 1, containing 16.377 acres, more or less, Lot 3, containing 9.427 acres, more or less, Lot 5,containing 2.816 acres, more or less, the property marked “Open Space,” containing
0.788 acres, more or less, and Quadrangle Drive all as shown on plat and survey thereof entitled, “The Quadrangle, Lot 5-Final Plat,” dated October 1985, by The John R. McAdams Company, Project #LIN-8503, and recorded in Book 109, Page
188, Durham County Registry.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]