Document:

July 2004 Series D Warrant

 Exhibit 4.6 
  
 THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW, THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO AN EXEMPTION TO THE SECURITIES ACT.

  
 THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS WARRANT HAS NOT BEEN
QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA OR ANY OTHER STATE AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION FOR SUCH SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL,
UNLESS THE SALE OF SUCH SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 2511, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE OR SUCH PROVISIONS OF THE CORPORATIONS CODE OF ANY SUCH OTHER STATE. THE RIGHTS OF THE HOLDER OF THIS WARRANT ARE
EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT. 
  

			
	 WD III –1
	  	Void after
	 	  	July 9, 2011

  
 WARRANT TO PURCHASE
SHARES 
 OF PREFERRED STOCK 
  
 of 
  
 SKINMEDICA, INC., 
 INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

  
 THIS CERTIFIES THAT, for value received,
SILICON VALLEY BANK together with its permitted successors and assigns (“Holder”) is entitled, subject to the terms set forth below, to subscribe for and
purchase shares of Series D Preferred Stock (the “Preferred Stock”) of SKINMEDICA, INC., a Delaware corporation (the “Company”), subject to
adjustment as provided herein. This warrant and any warrant subsequently issued upon exchange or transfer hereof are hereinafter referred to collectively as the “Warrant.” 
  
 This Warrant is subject to the following terms and conditions: 
  
 1. Loan Agreement. This Warrant is issued in connection with, and
shall be effective only upon the funding of the initial credit extension under, that certain Loan and Security Agreement dated July 9, 2004 by and among the Company and Holder and the other parties named therein. 
  

 1 

 2. Exercise of Warrant. The terms and conditions upon which this Warrant may be exercised, and the
shares covered hereby may be purchased, are as follows: 
  
 2.1
Term. Subject to the terms hereof, this Warrant may be exercised at any time after the date hereof, or from time to time, in whole or in part; provided, however, that in no event may this Warrant be exercised (the “Exercise
Date”) later than 5:00 p.m. (Pacific Time) on the close of business on July 9, 2011 (the “Exercise Period”). 
  
 2.2 Number of New Preferred Stock Shares. This Warrant may be exercised for 125,523 shares of Preferred Stock (the “New Preferred Stock
Shares” and also sometimes referred to as the “Shares”), subject to adjustment as provided herein. 
  
 2.3 Exercise Price. The “Exercise Price” shall be equal to $2.39, subject to adjustment as provided herein. 
  
 2.4 Method of Exercise. Subject to the terms and conditions contained
herein and while this Warrant remains outstanding and exercisable, from and after the date hereof, this Warrant is exercisable with respect to any or all New Preferred Stock Shares, at the option of Holder, upon surrender of this Warrant to the
Company together with (a) a duly completed (i) Notice of Exercise, in the form attached hereto as Exhibit A, or (ii) Net Issue Election Notice, in the form attached hereto as Exhibit B and (b) payment of an amount equal to the Exercise
Price multiplied by the number of New Preferred Stock Shares with respect to which this Warrant is being exercised as provided in Section 2.5 below. If Holder exercises this Warrant with respect to less than all of the New Preferred Stock Shares
represented by this Warrant, the Company shall cancel this Warrant upon the surrender thereof and shall execute and deliver to Holder a new Warrant for the balance of such New Preferred Stock Shares. 
  
 2.5 Payment. Payment of the Exercise Price for the New Preferred Stock
Shares with respect to which this Warrant is being exercised by Holder shall be made, at the option of Holder, (a) by delivery of cash payable by wire transfer of immediately available funds, (b) by the delivery of a cashier’s check or
certified check, (c) by net issue election as set forth in Section 2.6 below, or (d) by any combination of (a) – (c). 
  
 2.6 Net Issue Election Holder may elect to receive, without payment by Holder of any additional consideration, New Preferred Stock Shares equal to
the value of the “spread” on the New Preferred Stock Shares or any portion thereof by the surrender of the Warrant to the Company, together with a duly completed Net Issue Election Notice, in the form attached hereto as Exhibit B,
at the principal office of the Company, in which event the Company shall issue to Holder such number of New Preferred Stock Shares as is computed using the following formula: 
  

									
	 	 	X =	 	 Y (A – B)

	 	 	 	 
	 	 	A	 	 

  

					
	Where:	  	X =	  	The number of New Preferred Stock Shares to be issued to Holder pursuant to the net issue election;
			
	 	  	Y =	  	The number of New Preferred Stock Shares in respect of which the net issue election is made;
			
	 	  	A =	  	The fair market value (as determined below) of one New Preferred Stock Shares at the time the net issue election is made;
			
	 	  	B =	  	The Exercise Price in effect under this Warrant as of the date of the net issue election.

  

 2 

 For purposes of this Section 2.6, the fair market value of one New Preferred Stock Share as of a particular date shall be
mutually determined in good faith by the Board of Directors of the Company. In the event the Holder disagrees with the Board of Directors’ determination of such fair market value, the Holder shall provide written notice thereof to the Company
(the “Appraisal Notice”), and the valuation shall be made by an appraiser of recognized standing selected by the Company and the Holder or, if they cannot agree on an appraiser within twenty (20) days after delivery of the
Appraisal Notice, each shall select an appraiser of recognized standing and the two (2) appraisers shall designate a third (3rd) appraiser of recognized standing, whose appraisal shall be determinative of such value. The cost of such appraisal shall be shared equally by the Holder and the Company. 
  
 2.7 Treatment of Warrant Upon Acquisition of Company. 
  
 2.7.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any sale, license, or
other disposition of all or substantially all of the assets of the Company, or any reorganization, consolidation, or merger of the Company where the holders of the Company’s securities before the transaction beneficially own less than 50% of
the outstanding voting securities of the surviving entity after the transaction. 
  
 2.7.2 Treatment of Warrant at Acquisition. 
  
 A) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition in which the sole consideration is cash, either (a) Holder shall exercise its conversion or purchase right under this Warrant and such exercise
will be deemed effective immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant will expire upon the consummation of such Acquisition. The Company shall provide the Holder with
written notice of its request relating to the foregoing (together with such reasonable information as the Holder may request in connection with such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less
than ten (10) days prior to the closing of the proposed Acquisition. 
  
 B) Upon
the written request of the Company, Holder agrees that, in the event of an Acquisition that is an “arms length” sale of all or substantially all of the Company’s assets (and only its assets) to a third party that is not an Affiliate
(as defined below) of the Company (a “True Asset Sale”), either (a) Holder shall exercise its conversion or purchase right under this Warrant and such exercise will be deemed effective immediately prior to the consummation of such
Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant will continue until the Expiration Date if the Company continues as a going concern following the closing of any such True Asset Sale. The Company shall provide the Holder
with written notice of its request relating to the foregoing (together with such reasonable information as the Holder may request in connection with such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not
less than ten (10) days prior to the closing of the proposed Acquisition. 
  
 C)
Upon the closing of any Acquisition other than those particularly described in subsections (A) and (B) above, the successor entity shall assume the obligations of this Warrant, and this Warrant shall be exercisable for the same securities, cash, and
property as would be payable for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent closing. The Exercise Price and/or number of
Shares shall be adjusted accordingly. 
  

 3 

 As used herein “Affiliate” shall mean any person or entity that owns or controls directly or indirectly
ten percent (10%) or more of the stock of Company, any person or entity that controls or is controlled by or is under common control with such persons or entities, and each of such person’s or entity’s officers, directors, joint venturers
or partners, as applicable. 
  
 3. Adjustment of Exercise Price
and Number of Shares. The Exercise Price and the number of New Preferred Stock Shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time to time upon the happening of certain events as follows: 
  
 3.1 Conversion of New Preferred Stock Shares into Common Stock. Upon
conversion of all of the issued and outstanding shares of the Company’s Preferred Stock into Common Stock (“Common Stock”), this Warrant shall be automatically exercisable only for such number of shares of Common Stock
as Holder would have received had this Warrant been exercised in full for the New Preferred Stock Shares and then converted into Common Stock on the date all issued and outstanding shares of the Company’s Preferred Stock converted into Common
Stock. The Exercise Price in effect immediately prior to such conversion shall, concurrently with the effectiveness of such conversion, be proportionally adjusted, and until such time as the Company has completed an initial public offering of its
Common Stock, the adjusted Exercise Price shall be adjusted from to time to time in accordance with Article IV, Section 5(f) of the Company’s Restated Certificate of Incorporation in connection with any issuance or sale by the Company of any
“Additional Shares of Common Stock” (as such term is defined in the Restated Certificate of Incorporation) at a price pr share less than the adjusted Exercise Price. Upon such conversion of the Preferred Stock into Common Stock, all
references under this Warrant to New Preferred Stock Shares shall be deemed references to Common Stock. 
  
 3.2 Split, Subdivision or Combination. If the Company should at any time or from time to time fix a record date for (a) the effectuation of a split
or subdivision of the outstanding New Preferred Stock Shares or (b) the determination of Holders of New Preferred Stock Shares entitled to receive a dividend or other distribution payable in additional New Preferred Stock Shares or other securities
or rights convertible into, or entitling Holder thereof to receive directly or indirectly, additional New Preferred Stock Shares (hereinafter referred to as the “New Preferred Stock Equivalents”), without payment of any
consideration by such holder for the additional New Preferred Stock Shares or New Preferred Stock Equivalents, then, as of such record date (or the date of such distribution, split or subdivision if no record date is fixed), the Exercise Price shall
be appropriately decreased and the number of New Preferred Stock Shares which this Warrant is exercisable for, if any, shall be appropriately increased in proportion to such increase of outstanding shares. Notwithstanding the foregoing, in any such
case, the aggregate purchase price payable by Holder for the total number of New Preferred Stock Shares (as adjusted) shall remain the same. 
  
 3.3 Combination of Shares. If the number of New Preferred Stock Shares outstanding at any time after the date hereof is decreased by a combination
of the outstanding New Preferred Stock Shares, the Exercise Price shall be appropriately increased and the number of New Preferred Stock Shares for which this Warrant is exercisable, if any, shall be appropriately decreased in proportion to such
decrease in outstanding shares. Notwithstanding the foregoing, in any such case, the aggregate purchase price payable by Holder for the total number of New Preferred Stock Shares (as adjusted) shall remain the same. 
  
 3.4 Reclassification or Reorganization. If the New Preferred Stock
Shares shall be changed into the same or different number of shares of any class or classes of stock, whether by capital reorganization, reclassification or otherwise (other than a subdivision, conversion or combination of shares or stock dividend
provided for in Sections 3.1, 3.2 and 3.3 above), then and in each such event Holder shall be entitled to receive upon the exercise of this Warrant the kind and amount of shares of stock and other securities and property receivable upon 

 

 4 

 such reorganization, reclassification or other change, to which a holder of the number of New Preferred Stock Shares (or
any shares of stock or other securities which may be) issuable upon the exercise of this Warrant would have received if this Warrant had been exercised immediately prior to such reorganization, reclassification or other change, all subject to
further adjustment as provided herein. At the request of Holder, this Warrant will thereupon be cancelled and upon its surrender to the Company, the Company will execute and deliver at its expense a new Warrant reflecting the foregoing adjustment,
but otherwise identical to the replaced Warrant. 
  
 3.5 Notice
of Adjustments and Record Dates. The Company shall promptly notify Holder in writing of each adjustment or readjustment of the Exercise Price hereunder and the number of New Preferred Stock Shares issuable upon the exercise of this Warrant. Such
notice shall state the adjustment or readjustment and show in reasonable detail the facts on which that adjustment or readjustment is based. In the event of any taking by the Company of a record of holders of New Preferred Stock Shares for the
purpose of determining holders thereof who are entitled to receive any dividend or other distribution, the Company shall notify Holder in writing of such record date at least twenty (20) days prior to the date specified therein. 
  
 3.6 Fractional Shares. No fractional shares shall be issued upon the
exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Equity Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the
issuance of a fractional share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay Holder otherwise entitled to such fraction a sum in cash
equal to the product resulting from multiplying the then current fair market value of a New Preferred Stock Shares by such fraction. 
  
 3.7 Issue Tax. The issuance of certificates for the New Preferred Stock Shares upon exercise of this Warrant shall be made without charge to Holder
for any issuance tax in respect thereof provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of Holder.

  
 3.8 No Impairment. The Company shall not avoid or seek
to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but shall at all times in good faith assist in the carrying out of all the provisions of this Warrant. Without limiting the generality
of the foregoing, the Company shall take all such action as may be necessary or appropriate in order that all shares of New Preferred Stock Shares as may be issued pursuant to the exercise of this Warrant shall, upon issuance, be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof. 
  
 3.9 Anti-Dilution Adjustment. For the avoidance of doubt, if at any time after the date of issuance of this Warrant there is an adjustment to the
Series D Conversion Price pursuant to the Company’s Restated Certificate of Incorporation, or if no Preferred Shares are then outstanding, there would have been an adjustment if any such shares were outstanding, then the New Preferred Stock
Shares issued upon exercise of this Warrant shall receive the benefit of any such adjustment to the Series D Conversion Price upon the execution of this Warrant as if the holder thereof held the New Preferred Stock Shares issued upon exercise of
this Warrant at the time of such adjustment. 
  
 4. Replacement
of Warrants. On receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an
indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of such Warrant, the Company at its expense shall execute and deliver to Holder, in lieu thereof, a
new Warrant of like tenor. 
  

 5 

 5. No Rights or Liability as a Stockholder. This Warrant does not entitle Holder hereof to any
voting rights or other rights as a stockholder of the Company. No provisions hereof, in the absence of affirmative action by Holder to purchase New Preferred Stock Shares, and no enumeration herein of the rights or privileges of Holder, shall give
rise to any liability of Holder as a shareholder of the Company. 
  
 6. Representations and Warranties. The Company represents and warrants to the Holder as follows: 
  
 (a) The initial Exercise Price referenced on the first page of this Warrant is not greater than (i) the price per share at which the Shares and related
warrants were last issued in an arms-length transaction in which at least $500,000 of the Shares were sold and (ii) the fair market value of the Shares and related warrants to be sold by the Company to certain venture capital investors concurrently
with the issuance of this Warrant. 
  
 (b) All Shares which may
be issued upon the exercise of the purchase right represented by this Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon payment of the exercise price therefor (or otherwise through effecting a Net Issuance
Election) and issuance by the Company, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances imposed on or created by the Company except for restrictions on transfer provided for herein or under
applicable federal and state securities laws. 
  
 (c) As of the
date of this Warrant, giving effect to the issuance of this Warrant and the contemporaneous closing of the Company’s sale and issuance of shares of Preferred Stock and warrants, the capitalization of the Company shall consist of: 
  
 (1) Series A Preferred Stock. One Million Two Hundred Twenty-Five
Thousand (1,225,000) shares of Series A Preferred Stock, $.001 par value per share (“Series A Preferred Stock”), all of which shall be issued and outstanding. Each share of Series A Preferred Stock is presently convertible into one
(1) share of Common Stock. 
  
 (2) Series B Preferred
Stock. Four Million Six Hundred Thirty-Three Thousand Six Hundred Seventy-Three (4,633,673) shares of Series B Preferred Stock, $.001 par value per share (“Series B Preferred Stock”), of which Four Million Five Hundred
Ninety-One Thousand Eight Hundred Thirty-Seven (4,591,837) shares shall be issued and outstanding. Each share of Series B Preferred Stock is presently convertible into one (1) share of Common Stock. In addition, warrants to purchase Forty-One
Thousand Eight Hundred Thirty-Six (41,836) shares of the Series B preferred Stock at an exercise price of $1.96 per share shall be issued and outstanding. 
  
 (3) Series C Preferred Stock. Four Million Six Hundred Eighty Thousand Eight Hundred Fifty-Two (4,680,852) shares of Series C Preferred Stock,
$.001 par value per share (“Series C Preferred Stock”), all of which shall be issued and outstanding. Each share of Series C Preferred Stock is presently convertible into one (1) share of Common Stock. 
  
 (4) Series D Preferred Stock. Twenty-Five Million Two Hundred
Seventy-Six Thousand Two Hundred Eighteen (25,276,218) shares of Preferred Stock, of which Twenty-three Million Three Hundred Twenty-Nine Thousand Three Hundred Eighteen (23,329,318) shall be issued and outstanding. Each share of Preferred Stock is
presently 
  

 6 

 convertible into one (1) share of Common Stock. In addition, warrants to purchase One Million Nine Hundred Forty-Six
Thousand Nine Hundred (1,946,900) shares of the Preferred Stock (i.e., Series D Preferred Stock) at an exercise price of $2.39 per share be issued and outstanding. 
  
 (5) Common Stock and Options. Fifty Million (50,000,000) shares of Common Stock, $.001 par value per share (the
“Common Stock”), of which One Million Five Hundred Thirty-Three Thousand Two Hundred (1,533,200) shares shall be issued and outstanding. In addition, (i) Options to purchase Four Million One Hundred Seventy Thousand Two Hundred
Twenty-Six (4,170,226) shares of Common Stock held by directors, employees and consultants at varying exercise prices shall be issued and outstanding; and (ii) One Million Four Hundred Six Thousand Six Hundred Fifteen (1,406,615) additional shares
of Common Stock shall be reserved under the Company’s 2002 Stock Incentive plan for future issuance in the form of option grants or other awards to the Company’s directors, employees and consultants. 
  
 7. Notice of Certain Events. If the Company proposes at any time (a)
to declare any dividend, distribution or subscription right upon any of its Preferred Stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to effect any reclassification or recapitalization of
any of its stock; or (c) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind up, then, in connection with each such event, the
Company shall give Holder: (1) at least 10 days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the holders of common stock will be entitled
thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) above; and (2) in the case of the matters referred to in (b) and (c) above at least 10 days prior written notice of the date when the same will take
place (and specifying the date on which the holders of common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event). 
  
 8. Registration Under Securities Act of 1933, as amended. The
Company agrees that the Shares or, if the Shares are convertible into common stock of the Company, such common stock, shall have certain incidental, or “Piggyback,” registration rights pursuant to and as set forth in Section 3.2 of the
Company’s Amended and Restated Investor Rights Agreement dated July 9, 2004, with the Shares hereunder being considered “Registrable Securities” for purposes of such Section 3.2 only and with the Holder hereunder being considered a
“Holder” for the purposes of Section 3.2 only. The provisions set forth in such Investors’ Right Agreement may not be amended, modified or waived without the prior written consent of Holder unless such amendment, modification or
waiver affects the rights associated with the Shares in the same manner as such amendment, modification, or waiver affects the rights associated with all other shares of the same series and class as the Shares granted to the Holder.

  
 9. Representations and Warranties of Holder. The Holder
represents and warrants to the Company as follows: 
  
 9.1
Purchase for Own Account. Except for transfers to Holder’s affiliates, this Warrant and the securities issuable upon exercise of this Warrant by the Holder and the common stock issuable upon conversion of the Shares will be acquired for
investment for the Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), and the Holder has no
present intention of selling, granting any participation in, or otherwise distributing the same. If not an individual, the Holder also represents that the Holder has not been formed for the specific purpose of acquiring this Warrant or the Shares.

  

 7 

 9.2 Disclosure of Information. The Holder has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities. The Holder further has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable
effort or expense) necessary to verify any information furnished to the Holder or to which the Holder has access. 
  
 9.3 Investment Experience. The Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk. The
Holder: (i) has experience as an investor in securities of companies in the development stage and acknowledges that the Holder is able to fend for itself, can bear the economic risk of such Holder’s investment in this Warrant and its underlying
securities and has such knowledge and experience in financial or business matters that the Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or (ii) has a preexisting personal or
business relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables the Holder to be aware of the character, business acumen and financial circumstances of such persons.

  
 9.4 Accredited Investor Status. The Holder is an
“accredited investor” within the meaning of Regulation D promulgated under the Securities Act. 
  
 10. Miscellaneous. 
  
 10.1 Limitations on Disposition. 
  
 10.1.1 Holder, by acceptance hereof, agrees to comply in all respects with the provisions of this Section 9.1. Holder agrees not to make any disposition
of this Warrant or any New Preferred Stock Shares, unless and until the transferee has agreed in writing for the benefit of the Company to be bound by this Section 9.1 and the other provisions of this Warrant as if such transferee were the original
Holder hereof, provided and to the extent such provisions are then applicable, and: 
  
 10.1.2 There is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or 
  
 10.1.3 (A) Holder shall have notified the Company of the proposed
disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and (B) if reasonably requested by the Company, Holder shall have furnished the Company with an opinion of counsel,
reasonably satisfactory to the Company, that such disposition will not require registration of the Warrant and/or the New Preferred Stock Shares under the Securities Act. It is agreed that the Company will not require opinions of counsel for
transactions made pursuant to Rule 144 except in unusual circumstances. 
  
 10.2 Permitted Transfers. Notwithstanding the provisions of paragraphs 10.1.1, 10.1.2 and 10.1.3 above, (i) no such registration statement, prior consent or opinion of counsel shall be necessary for a transfer (A) by Holder if Holder
is a partnership to a partner of such 
  

 8 

 partnership or a retired partner of such partnership who retires after the date hereof, or to the estate of any such
partner or retired partner or to the transfer by gift, will or intestate succession of any partner to his spouse or to the siblings, lineal descendants, including adopted children, or ancestors of such partner or his spouse, or (B) to an
“affiliate” of Holder as that term is defined in Rule 405 promulgated by the Securities and Exchange Commission under the Securities Act, including, without limitation, Silicon Valley Bancshares (“Holder’s parent company), if the
transferee agrees in writing to be subject to the terms hereof to the same extent as if it were an original Holder hereunder, and (ii) no transferee shall be required, as a condition to any transfer of the Warrant or the New Preferred Stock Shares
by Holder, to agree to be bound by this Section 10.2, if the transferee is acquiring the Warrant and/or New Preferred Stock Shares pursuant to a registration statement under the Securities Act or in a transaction made pursuant to Rule 144. And, in
connection with the foregoing, the Company shall not require an opinion of counsel if there is no material question as to the availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d)
and (e) in reasonable detail, the selling broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of Holder’s notice of proposed sale. Each new certificate evidencing the Warrant and/or New Preferred
Stock Shares so transferred shall bear the appropriate restrictive legends, except that such certificate shall not bear such restrictive legend if, in the opinion of counsel for the Company, such legend is not required in order to establish or
assist in compliance with any provisions of the Securities Act or any applicable state securities laws. 
  
 11. Titles and Subtitles. The titles and subtitles used in this Warrant are for convenience only and are not to be considered in construing or
interpreting this Warrant. 
  
 12. Notices. All notices and
other communications under this Warrant shall be in writing and shall be deemed given upon receipt if delivered personally, or when sent if mailed by registered or certified mail (return receipt requested) or by reputable overnight express courier
(charges prepaid) or transmitted by facsimile (with confirmation of transmittal) to the party to be notified at the address indicated for such party on the signature page hereof, or at such other address as such party may designate by advance
written notice to the other parties. 
  
 13. Attorneys’
Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Warrant, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which
such party may be entitled. 
  
 14. Amendments and Waivers.
This Warrant may be amended and the observance of any other term of this Warrant may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the holder of this
Warrant. 
  
 15. Severability. If one or more provisions of
this Warrant are held to be unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with
its terms. 
  
 16. Governing Law. This Warrant shall be
governed by and construed and enforced in accordance with the laws of the State of California, without giving effect to its conflicts of laws principles. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 9 

 This Warrant may be executed in one or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. 
  

					
	Date: July 9, 2004	 	SKINMEDICA, INC.,
	 	 	a Delaware corporation
			
	 	 	By:	 	 /s/ Rex Bright

	 	 	 	 	Rex Bright, President and Chief
	 	 	 	 	Executive Officer

  

									
	 	 	 	 	Address:	  	5909 Sea Lion Place, Suite H	  	 
	 	 	 	 	 	  	Carlsbad, CA 92008	  	 
	 	 	 	 	 	  	Facsimile No.: (760) 448-3601	  	 

  
 ACKNOWLEDGED AND AGREED: 

 
 SILICON VALLEY BANK 
  

			
	 By:
	 	 /s/ Susan L. Worsham

	 Title:
	 	 

  

			
	Address:	 	Silicon Valley Bancshares
	 	 	Attn: Treasury Department
	 	 	3003 Tasman Drive, HA 200
	 	 	Santa Clara, CA 95054
	 	 	Telephone: 408-654-7400
	 	 	Facsimile: 408-496-2405

  
 SKINMEDICA, INC. 
 SERIES D PREFERRED STOCK
WARRANT 
 SIGNATURE PAGE 

 EXHIBIT A 
  

FORM OF NOTICE OF EXERCISE 
  
 The undersigned, the holder of the within Warrant, hereby irrevocably elects to exercise this Warrant for, and to purchase thereunder,
             New Preferred Stock Shares (as defined in the attached Warrant)* of SKINMEDICA, INC., a Delaware corporation and
herewith makes payment of $             therefor and requests that the certificates for such shares be issued in the name of, and delivered to,
                    , federal taxpayer identification number             ,
whose address is                                 . 
  
 In exercising this Warrant, the undersigned hereby confirms and acknowledges
that the              New Preferred Stock Shares (as defined in the attached Warrant) are being acquired solely for the account of the undersigned and not as a nominee for any other
party, and for investment, and the undersigned will not offer, sell or otherwise dispose of any such New Preferred Stock Shares except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any state
securities laws. 
  
 Please issue a new Warrant for the
unexercised portion of the attached Warrant in the name of, and delivered to,                     , federal taxpayer identification number
            , whose address is
                                . 
  
 Dated:
                     
  

	
	

	 (Signature must conform to name of holder

	 as specified on the face of the Warrant)

  

	*	Insert here the number of shares as to which the Warrant is being exercised. 

  

 A-1 

 EXHIBIT B 
  

FORM OF NET ISSUE ELECTION NOTICE 
 (To be
signed only on net issue exercise of the Warrant) 
  
 The
undersigned, the holder of the within Warrant, hereby irrevocably elects to exercise this Warrant with respect to              New Preferred Stock Shares (as defined in the attached
Warrant) of SKINMEDICA, INC., a Delaware corporation, pursuant to the net issue election provisions set forth in Section 2.6 of the Warrant and requests that the certificates for the number of New
Preferred Stock Shares issuable pursuant to said Section 2.6 after application of the net issue election formula to such New Preferred Stock Shares be issued in the name of, and delivered to,
                    , federal taxpayer identification number             ,
whose address is                                 . 
  
 In exercising this Warrant, the undersigned hereby confirms and acknowledges
that the New Preferred Stock Shares are being acquired solely for the account of the undersigned and not as a nominee for any other party, and for investment, and the undersigned will not offer, sell or otherwise dispose of any such New Preferred
Stock Shares except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws. 
  
 Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of, and delivered to,
                    , federal taxpayer identification number             ,
whose address is                                 . 
  
 Dated:
                     
  

	
	

	 (Signature must conform to name of holder

	 as specified on the face of the Warrant)

 ASSIGNMENT 
  
 For value received, Silicon Valley Bank hereby sells, assigns and transfers unto 
  

			
	Name:	  	Silicon Valley Bancshares
	Address:	  	3003 Tasman Drive (HA-200)
	 	  	Santa Clara, CA 95054
		
	Tax ID:	  	91-1962278

  
 that certain Warrant to
Purchase Stock issued by SkinMedica, Inc. (the “Company”), on                      (the “Warrant”) together with all
rights, title and interest therein. 
  

			
	 SILICON VALLEY BANK

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 Date:
                     
  
 By its execution below, and for the benefit of the Company, Silicon Valley Bancshares makes each of the representations and warranties set forth in
Section 6 of the Warrant as of the date hereof. 
  

			
	 SILICON VALLEY BANCSHARES

		
	 By:
	 	  

	 Name:
	 	  

	 Title:1999 Stock Option Plan

 Exhibit 10.1 
  
 SKINMEDICA, INC.  
 STOCK OPTION PLAN 
  
 As adopted by the Board of
Directors on August 6, 1999 
  
 1. Purpose. 
  
 The purpose of this Non-Qualified Stock Option Plan (the
“Plan”) of SkinMedica, Inc., a California corporation (the “Company”), is to secure for the Company and its stockholders the benefits arising from stock ownership by selected directors, officers, key employees and
consultants of the Company. The Plan will provide a means whereby such persons may purchase shares of the Common Stock of the Company pursuant to “non-incentive” or “non-qualified” stock options and will provide a means to
attract, retain and motivate people whose contribution is important to the success of the Company. The Plan does not limit the power of the Board of Directors of the Company (the “Board”) to adopt such additional compensation or
benefit arrangements as it may deem desirable, including the granting of stock options outside the Plan. 
  
 2. Administration. 
  
 The Plan shall be administered by the Board. Any Board action with respect to administration of the Plan shall be taken by a majority vote or written
consent of the majority of its members entitled to vote. Individual members of the Board shall not be entitled or permitted to vote with respect to matters directly involving such individuals as Optionees. 
  
 Subject to the provisions of the Plan, the Board shall have authority: (i) to
construe and interpret the Plan and all other agreements or documents executed pursuant to the Plan; (ii) to define the terms used therein; (iii) to prescribe, amend and rescind rules and regulations relating to the Plan; (iv) to determine the times
at which and the individuals to whom options shall be granted (“Optionees”), the number of shares to be subject to each option, the exercise price at which such shares are to be purchased pursuant to each option (the
“Exercise Price”), vesting and exercisability of options and the duration of each option; (v) to approve and determine the duration of leaves of absence which may be granted to Optionees without constituting a termination of their
employment for the purposes of the Plan; and (vi) to make all other determinations necessary or advisable for the administration of the Plan. All Board determinations and interpretations shall be binding and conclusive on the Company and on all
Optionees and their permitted successors, assigns, legal representatives and beneficiaries. 
  
 The Plan and all agreements, documents and instruments entered into pursuant to the Plan shall be governed by and construed in accordance with the laws of the State of California. 
  
 3. Shares Subject to the Plan. 
  
 Subject to adjustments as provided in Section 16 hereof, the shares to be
offered under the Plan (the “Shares”) shall consist of the Company’s authorized but unissued Common Stock, no par value, and the total number of Shares which may be issued upon exercise of all 
  

 Page 1 of 10 

 options under the Plan shall not exceed 150,000 Shares. If Shares subject to issuance upon exercise of any option shall
cease to be subject to such option for any reason other than exercise, such Shares shall again be available for options to be granted under the Plan. 
  
 4. Eligibility and Participation. 
  
 All directors, officers, regular salaried employees and consultants of any of the following shall be eligible for selection as Optionees under the Plan:
(i) the Company; (ii) any parent corporation or stockholder of the Company; (iii) any subsidiary corporation of the Company (as defined in Section 425(f) of the Internal Revenue Code of 1986 as amended (the “Code”)); (iv) a
subsidiary corporation of a subsidiary of the Company; or (v) other affiliates (as defined in Rule 405 of Regulation C promulgated under the Securities Act of 1933, as amended (the “1933 Act”)) (the foregoing entities are
hereinafter collectively referred to as the “Affiliates”). An individual who has been granted an option may, if such individual is otherwise eligible, be granted one or more additional options under the Plan if the Board shall so
determine, subject to the other provisions of the Plan. 
  
 5.
Grant and Duration of Options. 
  
 The Board shall grant
and determine the terms of grant of all options under the Plan, and each option grant shall be evidenced by an option agreement in such form and with such provisions as the Board shall determine when the option is granted (the “Option
Agreement”). The Option Agreement and a copy of the Plan will be delivered to each recipient of the grant within a reasonable time after the option grant date. 
  
 The option grant date shall be the date on which the Board determines to grant an option. Each option and all rights
associated therewith shall expire on such date as the Board may determine, but in no event later than the “Expiration Date”, which shall be One Hundred Twenty (120) months from the adoption of this Option Plan by the Board as
indicated on the first page hereof or such earlier date of termination as provided herein by Sections 11, 12, 16 or 17 or as determined by the Board and set forth in the Option Agreement. 
  
 As a condition to and in partial consideration for the grant of each option, each Optionee must agree not to disclose or
misuse any of the Company’s or any of its Affiliates’ confidential or proprietary information, and further agree not to breach any fiduciary obligation or agreements with the Company or its Affiliates. The Company may refuse to allow an
Option to be exercised if the Board determines, in good faith and in its sole discretion, that the Optionee has breached the foregoing requirement. Notwithstanding anything to the contrary in the Plan or in any option grant or Option Agreement, the
Board may immediately cancel an option during the term of any option or during any post employment exercise period if the Optionee breaches any confidentiality or fiduciary obligations or other agreements with the Company or any of its Affiliates.

  
 6. Exercise Price. 
  
 The Exercise Price of each option shall be determined by the Board and shall
not be less than eighty-five percent (85%) of the fair market value of the Shares on the option grant 
  

 Page 2 of 10 

 date, provided, however, that the Exercise Price shall be not less than one hundred ten percent (110%) of fair market
value in the case of any person who owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or its parent or subsidiary corporations. 
  
 Unless the Shares are publicly traded on a stock exchange or otherwise, the
fair market value of a Share shall be determined for purposes of the Plan in good faith by the Company’s Board by reference to the recent sale prices of a Share and such other factors as the Board may deem appropriate to reflect the fair market
value thereof. 
  
 If Shares are publicly traded on a stock
exchange or otherwise, the fair market value of a Share shall be determined by reference to the average closing price of a Share on the principal stock exchange on which such Shares are traded, or, if such Shares are not then traded on a principal
stock exchange, the average mean between the bid and asked price of a Share as supplied by the National Association of Securities Dealers through NASDAQ (or its successor in function), in each case as reported by the Western Edition of The Wall
Street Journal, for the ten business days immediately preceding the date on which the option is granted or exercised. 
  
 7. Exercise of Options. 
  
 An Optionee may exercise an option by delivery to the Company of a signed stock option exercise agreement (the “Exercise Agreement”)
together with payment of the aggregate Exercise Price for the number of Shares being purchased, together with any amount required by the Company to be withheld pursuant to Section 8 hereof. The Exercise Agreement shall be in a form approved by the
Board (which need not be the same for each Optionee), stating such particulars regarding the Shares and restrictions thereon and such representations and agreements regarding Optionee’s investment intent and access to information, if any, as
the Board deems necessary or advisable to comply with applicable securities laws. The payment shall be in cash or by certified or cashier’s check payable to the order of the Company. 
  
 No option granted under the Plan shall be exercisable if such exercise would violate any applicable law or regulation
(including, without limitation, federal and state securities laws and regulations). Subject to the foregoing, each option shall be exercisable in such installments during the period prior to the Expiration Date as the Board shall determine; provided
that, except for options granted to officers, directors or consultants of the Company, each option hereunder shall become exercisable at a cumulative rate of at least twenty percent (20%) per year over the five (5) years following the option grant
date. Unless otherwise determined by the Board, if an Optionee does not in any given installment period purchase all of the Shares which Optionee is entitled to purchase in such installment period, Optionee’s right to purchase any Shares not
purchased in such installment period shall continue and carry over until the Expiration Date of Optionee’s option. 
  
 No option may be exercised for a fraction of a Share. 
  

 Page 3 of 10 

 8. Withholding Tax. 
  
 Upon the exercise of the non-qualified options granted hereunder, the Company shall have the right to require Optionee or
Optionee’s permitted successor in interest to pay the Company the amount of any taxes which the Company may be required to withhold with respect to such Shares prior to delivery to Optionee or such successor of any certificates representing
such Shares. 
  
 9. Nontransferability. 
  
 An option granted under the Plan shall, by its terms, be nontransferable
(whether by operation of law, sale, assignment, pledge, hypothecation or otherwise) by Optionee, except by will or the laws of descent and distribution, and, during Optionee’s lifetime, shall be exercisable only by Optionee and any elections
relating thereto may be made only by Optionee, regardless of any community property interest therein of Optionee’s spouse or such spouse’s successor in interest. If Optionee’s spouse shall have acquired a community property interest
in such option, only Optionee, or Optionee’s permitted successors in interest, may nevertheless exercise the option on behalf of Optionee’s spouse or such spouse’s successor in interest. Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of an option contrary to the provisions of the Plan and/or the applicable Option Agreement or Exercise Agreement, such option and all rights and privileges thereof will immediately become null and void and of no
further force and effect as to all Shares which are the subject of said options, provided, however, that all restrictions on Shares purchased by Optionee through exercise of such option, including, but not limited to, the Company’s Right of
Repurchase and Right of First Refusal, shall remain in full force and effect as to such Shares. 
  
 10. Holding of Shares After Exercise of Option. 
  
 At the discretion of the Board, any Option Agreement may provide that Optionee, by accepting such Option Agreement, represents and agrees, for Optionee
and Optionee’s permitted transferees (by will or the laws of descent and distribution), that none of the Shares purchased upon exercise of such option will be acquired with a view to, or for resale in connection with, any
“distribution” (as defined in the 1933 Act) in violation of the 1933 Act or transfer in violation of any state securities or “blue sky” laws or rules and regulations promulgated thereunder, and the person entitled to exercise the
option shall, upon the request of the Company made upon any exercise of any portion of such option, furnish evidence satisfactory to the Company (including a written and signed representation) to that effect in form and substance satisfactory to the
Company, including an indemnification of the Company in the event of any violation of the 1933 Act or other applicable laws by such person. 
  
 11. Termination of Employment. 
  
 If Optionee ceases to be a director, officer, employee or consultant of the Company or its Affiliates as a result of a termination for cause, as
determined by the Board in good faith and subject to applicable law, Optionee’s options and all rights under any Option Agreements shall immediately terminate upon such cessation. A determination by the Board that a cessation constitutes a
termination for cause shall be final and conclusive. In no event shall all or any portion of any option be exercisable following a termination for cause. 
  

 Page 4 of 10 

 If Optionee ceases to be a director, officer, employee or consultant of the Company or its Affiliates for
any reason other than a termination for cause or Optionee’s death or permanent disability (within the meaning of Section 22(e)(3) of the Code), then Optionee may, at any time within a period of thirty (30) days after the date he so ceases to be
an officer, director, employee or consultant of the Company or any of its Affiliates, and not thereafter, exercise the option granted Optionee to the extent such option was exercisable by Optionee on the date of such cessation, but not after the
Expiration Date otherwise applicable. A leave of absence approved in writing by the Board shall not be deemed a termination of employment for the purposes of this Section, but no option may be exercised during any such leave of absence. 

 
 The Board may, in its sole discretion, include a provision in the Option
Agreement providing that if Optionee’s employment with or service to the Company or an Affiliate terminates as a result of the retirement of the Optionee with the prior written consent of the Board, then Optionee may, at any time within a
period of one year after the date he so retires, and not thereafter, exercise the option granted Optionee to the extent such option was exercisable by Optionee on the date of such retirement, but not after the Expiration Date otherwise applicable.
In no event shall a termination for cause be treated as a retirement with the consent of the Board. In the absence of any such retirement provision, the option granted shall terminate in accordance with the provisions of the proceeding paragraph.

  
 Nothing in the Plan or in any option grant or any Option
Agreement shall confer or be deemed to confer on any Optionee any right to continue such Optionee’s employment or other relationship with the Company or any Affiliate or limit in any way the right of the Company or such Affiliate to terminate
Optionee’s employment or other relationship at any time, with or without cause. 
  
 12. Death or Permanent Disability of Optionee. 
  
 If an Optionee dies or becomes permanently disabled while Optionee is employed by or in service to the Company or an Affiliate, Optionee’s option shall expire six (6) months after the date of such death or
permanent disability, but not after the Expiration Date otherwise applicable. During such period, such option may, to the extent that it remained unexercised (but exercisable by Optionee according to such option’s terms) on the date of such
death or disability be exercised by the person or persons to whom Optionee’s rights under the option shall pass by Optionee’s will or by the laws of descent and distribution. 
  
 13. Company’s Right to Repurchase Shares. 
  
 At the discretion of the Board, any Option Agreement may provide that, within ninety (90) days of the later to occur of any
termination of Optionee’s employment with or service to the Company or an Affiliate or the date Optionee last purchased Shares through the exercise of options which are the subject of such Option Agreement, the Company shall have the right, but
not the obligation, to repurchase (effective upon notice to Optionee [the “Repurchase Notice”]) all, but not less than all, the Shares which have been purchased by Optionee pursuant to the exercise of such option and which Optionee
then holds. All of the Company’s repurchase rights hereunder shall be freely assignable, in whole or in part. 
  

 Page 5 of 10 

 Shares issued upon exercise of an option shall not be transferable by Optionee in any manner except with
the Company’s written consent and subject to applicable law, and, if the Board so requires in the Option Agreement or Exercise Agreement for such Shares, shall be held in escrow as long as a repurchase right applies to such Shares. Immediately
upon receipt of a Repurchase Notice, Optionee shall deliver certificates representing the Shares to be repurchased to the Company for cancellation upon the closing of such repurchase. 
  
 The repurchase price payable by the Company if it exercises its right of repurchase shall be the greater of the fair market
value of the Shares or the aggregate Exercise Price for such Shares paid by Optionee. No person shall have the right to retain dividends or distributions of shares of the Company’s common stock or other securities issued by the Company or an
Affiliate with respect to Shares repurchased as provided in this section, but such dividends or distributions of such securities shall be returned to the Company within sixty (60) days of the Repurchase Notice and the Company shall repurchase the
same at the repurchase price provided herein, adjusted as provided in Section 16 hereof. 
  
 The repurchase price shall be payable within sixty (60) days after the Repurchase Notice and shall be paid, at the Company’s election, (i) in cash, (ii) by cancellation of an amount of purchase money indebtedness
owed by Optionee to the Company equal to the aggregate repurchase amount or (iii) a combination of (i) and (ii), provided, however, that the repurchase price shall not be paid until Optionee shall have delivered certificates representing the Share
repurchased, together with all non-cash dividends and all distributions thereon, to the Company. 
  
 The Company’s right to repurchase Shares under this Section will terminate as to all Shares on the effective date of the first sale of the class of
stock of which the Shares are part to the general public pursuant to a registration statement filed with and declared effective by the SEC under the 1933 Act (other than a registration statement relating solely to the issuance of Common Stock
pursuant to a business combination or an employee incentive or benefit plan). 
  
 14. Right of First Refusal. 
  
 At the discretion of the Board, any Option Agreement may require that, before any Shares held by Optionee or any transferee of Optionee (either being the “Holder”) may be sold or otherwise transferred (including, without
limitation, a transfer by gift or operation of law), the Company and/or its assignees shall have an assignable right of first refusal (the “Right of First Refusal”) to purchase the Shares to be sold or transferred (the
“Offered Shares”) on the terms and conditions of this Section. 
  
 Prior to any sale of Shares by the Holder, Holder shall deliver a notice to the Company stating: (a) Holder’s good faith intention to sell or otherwise transfer the Offered Shares; (b) the name of each proposed
transferee; (c) the number of Offered Shares to be transferred to each proposed transferee; (d) the good faith cash price or other consideration for which Holder proposes to transfer the Shares (the “Offer Price”); and (e) that
Holder by such notice offers to sell the Offered Shares to the Company and/or its assignees at the Offer Price. 
  
  

 Page 6 of 10 

 The Company or its assignees may exercise the Right of First Refusal by delivering a notice to Holder,
within thirty (30) days of Holder’s notice to them, electing to purchase all of the Offered Shares offered to any or all proposed transferees (but, unless Holder consents, not less than all shares offered to any particular proposed transferee).

  
 The purchase price for the Offered Shares purchased under this
section will be the Offer Price. If the Offer Price includes consideration other than cash, then the cash equivalent value of the non-cash consideration shall conclusively be deemed to be the fair market value of such non-cash consideration as
determined in good faith by the Board. The purchase price for Offered Shares will be payable, at the option of the Company and/or its assignees (as applicable), by check or by cancellation of all or a portion of any outstanding indebtedness of the
Holder to the Company (or to such assignees, in the case of a purchase of Offered Shares by such assignees) or by any combination thereof. The purchase price will be paid without interest within sixty (60) days after the Company’s receipt of
Holder’s notice, or, at the option of the Company and/or its assignees, in the manner and at the times set forth in Holder’s notice. 
  
 If all of the Offered Shares proposed in Holder’s notice to be transferred to a given proposed transferee are not purchased by the Company and/or its
assignees as provided in this section, then Holder may sell or otherwise transfer such Offered Shares to the proposed transferee at the Offer Price or at a higher price, provided that such sale or other transfer is consummated within one hundred
twenty (120) days after the date of Holder’s notice, and provided further that (i) any such sale or other transfer is effected in compliance with all applicable securities laws and (ii) the proposed transferee agrees in writing that the
provisions hereof and in any applicable Option Agreement or Exercise Agreement will continue to apply to the Offered Shares in the hands of such proposed transferee. If the Offered Shares described in Holder’s notice are not transferred to the
proposed transferee within such one hundred twenty (120) day period, then Holder must give a new notice to the Company, and the Company will again be offered the Right of First Refusal before any Shares held by Holder may be sold or otherwise
transferred. 
  
 Notwithstanding anything to the contrary in this
Section, the following transfers of Shares will be exempt from the Right of First Refusal: (i) the transfer of any or all of the Shares on the Holder’s death by will or intestacy or during the Holder’s lifetime to a trust for the benefit
of the Holder or the Holder’s beneficiaries, provided that each transferee or other recipient agrees in a writing satisfactory to the Company that the provisions of this Section will continue to apply to the transferred Shares in the hands of
such transferee or other recipient; (ii) any transfer of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations (except that the Right of First Refusal will continue to
apply thereafter to such Shares, in which case the surviving corporation of such merger or consolidation shall succeed to the rights of the Company hereunder unless the agreement of merger or consolidation expressly otherwise provides); or (iii) any
transfer of Shares pursuant to the winding up and dissolution of the Company. 
  
 The Right of First Refusal will terminate as to all Shares on the effective date of the first sale of shares of the class of stock of which the Shares are part to the general public pursuant to a registration
statement filed with and declared effective by the SEC under the 1933 Act (other than a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an employee incentive or benefit plan). 

 

 Page 7 of 10 

 15. Privileges of Stock Ownership. 
  
 Neither any Optionee nor any other person legally entitled to exercise any option hereunder shall be entitled to any of the
rights or privileges of a stockholder of the Company in respect of any Shares issuable upon any exercise of such option unless and until certificates representing such Shares shall have been actually issued and delivered following exercise of such
option and payment for the Shares. 
  
 No Shares shall be issued
and delivered upon exercise of any option unless and until, in the opinion of counsel for the Company, there shall have been full compliance with the applicable registration requirements of the 1933 Act, any applicable listing requirements of any
national securities exchange or automated quotation system on which stock of the same class is then listed and any other applicable requirements of law or of any regulatory bodies having jurisdiction over such issuance and delivery, including the
application of such stock transfer orders, legends and other restrictions as the Board may deem necessary or advisable pursuant to any of the foregoing. Optionee may be required to cooperate with the Company in taking such action as the Company
deems necessary or advisable to comply with any regulatory or governmental requirements. 
  
 Notwithstanding anything to the contrary in the foregoing, the Board shall annually provide each Holder with financial statements believed by the Company to meet the requirements of Section 260.140.46 of the Rules of
the Commissioner of Corporations of the State of California (the “Commissioner’s Rules”). 
  
 16. Adjustments. 
  
 If the outstanding shares of the Common Stock of the Company are increased, decreased, changed into or exchanged for a different number or kind of shares
or securities of the Company through a reorganization, combination, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar transaction, an appropriate and proportionate adjustment shall be made in the
maximum number and kind of Shares as to which options may be granted under the Plan. A corresponding adjustment changing the number or kind of Shares allocated to unexercised options or portions thereof, which shall have been granted prior to any
such change, shall likewise be made to the end that after such event all unexercised options or portions thereof shall maintain their proportionate interest in the Company. Any such adjustment in the outstanding options shall be made without change
in the aggregate purchase price applicable to the unexercised portions of the options (other than a change due to rounding of fractional shares), but with a corresponding adjustment in the Exercise Price for each Share or other unit of any security
covered by such options, provided, however, that no adjustment may decrease the Exercise Price of any option to below the par value of the Shares. 
  
 The Plan shall terminate, and any option previously granted hereunder shall terminate, upon (i) the dissolution or liquidation of the Company, (ii) a
reorganization, merger or 
  

 Page 8 of 10 

 consolidation of the Company with one or more corporations as a result of which the Company is not the surviving
corporation (other than a merger or consolidation with an Affiliate, a reincorporation of the Company in a different jurisdiction or another transaction in which there is no substantial change in the stockholders of the Company and the options
granted under the Plan are assumed or replaced by the successor corporation, which assumption shall be binding on all Optionees), or (iii) a sale of substantially all the property or more than eighty percent (80%) of the then outstanding stock of
the Company to another corporation other than an Affiliate. 
  
 Notwithstanding the foregoing, the Board may provide in writing in connection with such transaction or in connection with any private or public offering of shares of the class of stock of which the Shares are a part, for any or all of the
following alternatives (separately or in combinations): (i) for all or part of the options previously granted to become immediately vested and exercisable notwithstanding the provisions of Section 7 hereof or the Option Agreement; (ii) for the
assumption by the successor corporation of the options previously granted or the substitution by such corporation for such options of new options covering the stock of the successor corporation, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of Shares and Exercise Prices; or (iii) for the continuance of the Plan by such successor corporation, in which event the Plan and the options previously granted shall continue in the manner and under the terms
so provided. 
  
 Adjustments under this Section shall be made by
the Board, whose determination as to what adjustments shall be made, and the extent thereof, shall be final, binding and conclusive. No fractional Shares shall be issued under the Plan on any such adjustment; fractions of a Share shall be rounded
down to the nearest whole Share or paid in cash at fair market value, all as determined by the Board. 
  
 17. Amendment and Termination of Plan. 
  
 The Board may at any time suspend or terminate the Plan. The Board may also at any time amend or revise the terms of the Plan, provided that no such
amendment or revisions shall, unless appropriate stockholder approval of such amendment or revision is obtained, increase the maximum number of Shares in the aggregate which may be sold pursuant to the options granted under the Plan, except as
permitted under the provisions of Section 16, change the minimum Exercise Prices set forth in Section 6 or permit the granting of options to anyone other than as provided in Section 4. 
  
 The Board may modify, extend or renew outstanding options or reduce their Exercise Prices without prior notice to Optionee,
but no such change and no amendment, suspension or termination of the Plan shall, without the consent of Optionee, impair any rights or obligations under any option previously granted under the Plan. No option may be granted during any period of
suspension of nor after termination of the Plan, and the Plan shall terminate upon and in no event may any option be granted under the Plan after the first to occur of the following events: (i) the expiration of one hundred twenty (120) months from
the date the Plan is adopted; or (ii) the expiration of one hundred twenty (120) months after the date the Plan is approved by the Company’s stockholders pursuant to Section 18 hereof. 
  

 Page 9 of 10 

 18. Effective Date of Plan. 
  
 The Plan shall be submitted for approval by the holders of the outstanding voting stock of the Company (excluding Shares
issued upon exercise of options under the Plan) within twelve (12) months from the date the Plan is adopted by the Board. The Plan shall be deemed approved by the holders of the outstanding voting stock of the Company by (i) the affirmative vote of
the holders of a majority of the voting shares of the Company represented and voting at a duly held meeting at which a quorum is present or (ii) the written consent of the holders of a majority of the outstanding voting shares of the Company. Any
options granted under the Plan prior to obtaining such stockholder approval shall be granted under the conditions that the options so granted: (1) shall not be exercisable prior to such approval, and (2) shall become null and void if such approval
is not obtained. If stockholder approval is not obtained within twelve (12) months before or after the Plan is adopted, any option exercises under the Plan prior to stockholder approval must be rescinded. 
  
 19. Notices. 
  
 Except as otherwise provided herein, all notices, requests, demands and
other communications made under the Plan shall be in writing and shall be deemed to be duly given: (a) upon delivery, if served personally on the party to whom notice is to be given; (b) on the date of receipt, refusal or nondelivery indicated on
the receipt if mailed to the party to whom notice is to be given by first-class mail, registered or certified, postage prepaid, or by air courier; or (c) on confirmation of receipt if delivered by facsimile transmission or electronic-mail. Any
notice required to be given or delivered to the Company shall be properly addressed to the Secretary of the Company at its principal corporate offices. Any notice required to be given or delivered to an Optionee shall be properly addressed to such
Optionee at the address indicated in such Optionee’s Option Agreement or to such other address as Optionee may designate in writing to the Company from time to time. Notices to other persons shall be properly addressed to them at their last
mailing address as shown on the records of the Company or to such other nominee or address as such person may designate in writing from time to time. 
  

 Page 10 of 10

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