Document:

Exhibit 10.11

 

EXECUTION VERSION

 

ARBOR REALTY COMMERCIAL REAL ESTATE NOTES 2016-FL1, LTD.
  CLASS A NOTES, CLASS B NOTES AND CLASS C NOTES

 

 

Placement Agreement

 

Dated as of August 5, 2016

 

J.P. Morgan Securities LLC
 383 Madison Avenue, 8th Floor
 New York, New York 10179

 

Ladies and Gentlemen:

 

ARBOR REALTY COMMERCIAL REAL ESTATE NOTES 2016-FL1, LTD. (the “Issuer”) and ARBOR REALTY COMMERCIAL REAL ESTATE NOTES 2016-FL1, LLC (the “Co-Issuer” and, together with the Issuer, the “Co-Issuers”), propose to issue their $183,625,000 Class A Senior Secured Floating Rate Notes Due 2026 (the “Class A Notes”), their $22,750,000 Class B Secured Floating Rate Notes Due 2026 (the “Class B Notes”) and their $43,875,000 Class C Secured Floating Rate Notes Due 2026 (the “Class C Notes” and, together with the Class A Notes and the Class B Notes, the “Notes”).  The Issuer intends to issue 74,750 preferred shares, with a par value of U.S.$0.0001 per share and a notional amount of U.S.$1,000 per share (the “Preferred Shares” and, together with the Notes, the “Securities”).  The Co-Issuers have engaged J.P. Morgan Securities LLC (the “Placement Agent”) to act as placement agent in conjunction with the offer and sale of the Notes pursuant to this Placement Agreement (this “Agreement”).

 

The Notes shall be issued pursuant to an Indenture, to be dated as of August 18, 2016 (the “Indenture”), among the Co-Issuers, Arbor Realty SR, Inc. (including any successor by merger, the “Seller” or “Parent”), as Advancing Agent, and U.S. Bank National Association, as Trustee (in such capacity, the “Trustee”), and the Preferred Shares shall be issued pursuant to the Governing Documents (as defined in the Indenture) of the Issuer, certain resolutions of the board of directors of the Issuer passed prior to the issuance of the Preferred Shares and the Preferred Shares Paying Agency Agreement, dated as of August 18, 2016 (the “Preferred Shares Paying Agency Agreement”), among the Issuer, U.S. Bank National Association, as preferred shares paying agent (the “Preferred Shares Paying Agent”), and MaplesFS Limited, as share registrar.  Capitalized terms used but not defined herein shall have the meanings specified in the Offering Memorandum (as hereinafter defined) or, to the extent not defined therein, in the Indenture.

 

On the Closing Date, the Issuer will purchase the Loan Obligations described and listed in Annex A to the Offering Memorandum (collectively, the “Loan Obligations” and, with all other assets pledged to the Trustee on behalf of the Secured Parties pursuant to the Indenture, the “Collateral”) from the Parent.

 

 

The Co-Issuers, the Parent and the Placement Agent agree as follows:

 

1.                                      Appointment of Placement Agent; Offer and Sale of Notes.

 

(a)                                 The Co-Issuers and the Parent hereby appoint the Placement Agent to act as placement agent in connection with the offer and sale of the Notes in accordance with the terms hereof, and the Placement Agent hereby accepts such appointment in accordance with the terms hereof.  Subject to the terms and conditions hereof and in reliance on the representations and warranties herein set forth, the Co-Issuers and the Parent agree to sell or cause to be sold the Notes and the Placement Agent agrees, on a best efforts basis, to (i) solicit offers to purchase the Notes on behalf of the Co-Issuers from time to time in negotiated transactions at various prices to be determined at the time of the sale and (ii) provide customary facilitation of the offering and sale of the Notes.  In connection with acting as placement agent hereunder, the Placement Agent shall have the right (but not the obligation) to purchase the Notes and resell the Notes pursuant to the terms of this Agreement.  Each of the Co-Issuers, the Parent and the Placement Agent agrees that, as to any and all of the Notes with respect to which the Placement Agent arranges the sale pursuant to this Agreement, such Notes shall be offered and sold in reliance on, among other things, the agreements, representations, warranties and covenants of the Co-Issuers and the Parent contained herein and on the terms and conditions and in the manner provided for herein; provided, however, that the Placement Agent shall have no liability to the Co-Issuers in the event that any purchase or sale is not consummated for any reason.  The Co-Issuers and the Parent shall have the sole right to accept or reject any or all offers presented by the Placement Agent in the sole and absolute discretion of the Co-Issuers and the Parent.  The Co-Issuers shall direct the Placement Agent to remit the aggregate purchase price for the Notes (net of the advisory, structuring and placement agent fee (the “Advisory, Structuring and Placement Agent Fee”) set forth on Schedule I, which shall be retained by the Placement Agent) placed pursuant hereto to an account specified by the Issuer.

 

(b)                                 The Placement Agent hereby represents, warrants and agrees that:

 

(i)                                     it understands that the offer and sale of the Notes have not and will not be registered under the Securities Act or registered or qualified under any applicable state securities laws and that none of the Co-Issuers or the Parent is obligated to so register or qualify the Notes;

 

(ii)                                  it is a qualified institutional buyer within the meaning of Rule 144A under the Securities Act (a “QIB”);

 

(iii)                               (x) it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer to sell, the Notes or any interest therein by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D under the Securities Act (“Regulation D”), including, but not limited to, any advertisement, article, magazine or similar medium or broadcast over television or radio or any seminar or meeting whose attendees have been invited by any general solicitation or advertising (as those terms are used in Regulation D), or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act and (y) it has not solicited offers for or offered or sold, and will not solicit offers for, or offer or sell,

 

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the Notes as part of their initial offering except on the terms set forth in the Offering Memorandum (as defined below):  (A) within the United States to persons each of whom it reasonably believes to be a Qualified Purchaser within the meaning of the Investment Company Act of 1940 and either (1) QIBs in transactions pursuant to Rule 144A under the Securities Act (“Rule 144A”) and as to which in connection with each such sale, it has taken or will take reasonable steps to ensure that the purchaser of the Notes is aware that such sale is being made in reliance on Rule 144A or (2) institutions that are “accredited investors” as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D (“Institutional Accredited Investors”), who, in the case of purchasers described in this clause (2), purchase the Notes in certificated form for their own account and for any discretionary account for which they are acquiring securities and provide a letter in the form required under the Indenture or (B) in accordance with the restrictions set forth in Annex A hereto;

 

(iv)                              (x) it has not provided, as of the date of this Agreement, and covenants with the Co-Issuers that it will not provide, on or prior to the Closing Date, to any Rating Agency or other “nationally recognized statistical rating organization” (within the meaning of the Exchange Act), any information, written or oral, relating to the Notes, the Collateral, the transactions contemplated by this Agreement or the Indenture or any other information, that could be reasonably determined to be relevant to determining an initial credit rating for the Notes (as contemplated by Rule 17g-5(a)(3)(iii)(C) of the Exchange Act), without the prior consent of the Co-Issuers, and (y) covenants with the Co-Issuers that it will not provide to any Rating Agency or other “nationally recognized statistical rating organization” (within the meaning of the Exchange Act), any information, written or oral, relating to the Notes, the Collateral, the transactions contemplated by this Agreement or the Indenture or any other information, that could be reasonably determined to be relevant to undertaking credit rating surveillance for the Notes (as contemplated by Rule 17g-5(a)(iii)(3)(D) under the Exchange Act), without the prior consent of the Co-Issuers; provided, in the case of both (x) and (y), the Co-Issuers acknowledge that they have requested that the Placement Agent participate in or initiate communications with the Rating Agencies with respect to information posted on the website established pursuant to Rule 17g-5 of the Exchange Act (“Rule 17g-5”) throughout the transactions contemplated hereby or by the Indenture and to provide for posting to such website any information relayed in such communications to the extent not already posted on such website without requesting the Co-Issuers’ specific prior consent and without the Co-Issuers’ participation, and any and all such communication shall be deemed to have been consented to by the Co-Issuers; and

 

(v)                                 other than the Time of Sale Information, the Indenture, the Offering Memorandum and the other Basic Documents, neither it nor any of its affiliates (including its agents and representatives) has furnished or made available, or will furnish or make available, to potential investors in the Notes, without the prior consent of the Co-Issuers and the Parent, any written communication that constitutes an offer to sell or solicitation of an offer to buy the Notes.

 

(c)                                  In connection with the issuance of the Notes, the Co-Issuers and the Parent have prepared an Offering Memorandum, dated August 5, 2016 (including any exhibits and

 

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annexes thereto and any accompanying electronic media, the “Offering Memorandum”), in form and substance acceptable to the Placement Agent.  Copies of the Offering Memorandum will be delivered by the Co-Issuers and the Parent to the Placement Agent pursuant to the terms of this Agreement.  At or prior to the time when sales of the Notes were first made, which was approximately 1:00 PM (prevailing Eastern time) on August 5, 2016 (the “Time of Sale”), the Co-Issuers and the Parent have prepared the following documents: a Preliminary Offering Memorandum, dated August 2, 2016 (including any exhibits and annexes thereto and any accompanying electronic media, the “Preliminary Offering Memorandum” and, together with any Additional Disclosure Materials (as defined below), the “Time of Sale Information”).  If, subsequent to the date of this Agreement, (x) the Co-Issuers, the Parent and the Placement Agent determine that, as to any investors in the Notes, the Time of Sale Information as of the Time of Sale included an untrue statement of material fact or omitted to state a material fact necessary in order to make the statement therein, in the light of the circumstances under which it was made, not misleading and the Placement Agent terminates its old purchase contracts and enters into new purchase contracts with investors in the Notes, then “Time of Sale Information” shall also include such additional information conveyed to investors as of the time of entry into the new purchase contracts, including any information that corrects such material misstatements or omissions and “Time of Sale” shall refer to the time and date on which such new purchase contracts were entered into.  Any Time of Sale Information furnished to the Placement Agent subsequent to the date of this Agreement shall be in form and substance satisfactory to the Placement Agent and shall be listed on Annex B hereto.

 

(d)                                 Except as otherwise set forth in paragraph (e) below, the Notes to be placed by the Placement Agent shall be represented by one or more definitive global notes in book-entry form, which shall be deposited by or on behalf of the Co-Issuers with the Depository Trust Company (the “DTC”) or its designated custodian.  The Co-Issuers shall deliver the applicable Notes to the Placement Agent, acting on behalf of the purchasers of the applicable Notes, by causing DTC to credit such Notes to the account of the Placement Agent (or its designee) at DTC.  The Notes shall be registered in such names and such authorized denominations as the Placement Agent may request in writing not less than forty-eight (48) hours prior to the Closing Date.  The Co-Issuers shall cause the Notes to be made available to the Placement Agent for inspection at least twenty-four (24) hours prior to the Closing Date at the offices of Cadwalader, Wickersham & Taft LLP at 200 Liberty Street, New York, New York 10281 (the “Closing Location”).  The time and date of delivery of the Notes shall be 10:00 a.m., New York City time, on August 18, 2016, or such other time and date as the Placement Agent and the Co-Issuers may agree upon in writing.  The time and date of such payment and delivery is referred to herein as the “Closing Date”.  On the Closing Date, the Co-Issuers and the Parent (jointly and severally) agree to pay to the Placement Agent the Advisory, Structuring and Placement Agent Fee set forth on Schedule I hereto.

 

(e)                                  The Notes sold to Institutional Accredited Investors that are not QIBs, as specified by the Placement Agent upon at least forty-eight (48) hours’ prior notice to the Co-Issuers (such request to include the authorized denominations and the names in which they are to be registered), shall be delivered in definitive certificated form to or upon the instructions of the Placement Agent, acting on behalf of the applicable purchasers of the Notes, against payment of the purchase price therefor by wire transfer of immediately available funds.  The Notes shall be

 

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made available for inspection and packaging in New York, New York, not later than 1:00 p.m. on the business day prior to the Closing Date at the Closing Location.

 

(f)                                   The documents to be delivered at the Closing Date by or on behalf of the parties hereto pursuant to Section 5 hereof and the Notes shall be delivered at the Closing Location on the Closing Date.  A meeting shall be held at the Closing Location at 5:00 p.m., New York City time, on the New York Business Day next preceding the Closing Date, or such other time agreed to by the parties hereto, at which meeting the final drafts of the documents to be delivered pursuant to the preceding sentence shall be available for review by the parties hereto.  For the purposes of this Section 1(f), “New York Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York City are generally authorized or obligated by law or executive order to close.

 

(g)                                  The Placement Agent acknowledges and agrees that the Co-Issuers and, for purposes of the opinions to be delivered to the Placement Agent pursuant to Sections 5(h) and 5(i) hereof, counsel for the Co-Issuers and counsel for the Placement Agent, respectively, may rely upon the accuracy of the representations and warranties of the Placement Agent, and compliance by the Placement Agent with its agreements contained in Section 1(b) (including Annex A hereto), and the Placement Agent hereby consents to such reliance.

 

(h)                                 The Co-Issuers and the Parent acknowledge and agree that the Placement Agent is acting solely in the capacity of an arm’s-length contractual counterparty to the Co-Issuers and the Parent with respect to the offering and sale of the Notes if and to the extent contemplated hereby (including in connection with determining the terms of the offering) and not as a financial advisor or fiduciary to, or agent of, the Co-Issuers, the Parent or any other person in connection with each transaction contemplated hereby and the process leading to such transaction.  Additionally, the Placement Agent is not advising the Co-Issuers, the Parent or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction.  The Co-Issuers and the Parent shall consult with their own advisors concerning such matters and shall be responsible for making their own independent investigation and appraisal of the transactions contemplated hereby, and the Placement Agent shall not have any responsibility or liability to the Co-Issuers, the Parent or any other person with respect thereto.  Any review by the Placement Agent of the Co-Issuers and the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Placement Agent, and shall not be on behalf of the Co-Issuers, the Parent or any other person.  Each of the Co-Issuers and the Parent agree that it will not claim that the Placement Agent has rendered financial advisory services of any nature or respect, or owes a fiduciary or similar duty to the Co-Issuers or the Parent in connection with such transaction or the process leading thereto.

 

(i)                                     The Placement Agent may provide to prospective investors Additional Disclosure Materials (as defined below), subject to the following conditions:  (i) the Placement Agent shall provide to the Issuer any Additional Disclosure Materials that the Placement Agent has prepared prior to providing such materials to investors; and (ii) in the event that the Issuer or the Placement Agent discovers an error in the Additional Disclosure Materials, the Issuer, if it has discovered such error, shall notify the Placement Agent in writing and, in either case, the Placement Agent shall correct such error prior to providing such materials to any prospective investors.  “Additional Disclosure Materials” shall mean any “flip” book or similar marketing

 

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materials or any term sheet or similar marketing materials and any and all other summaries, reports, documents, in written or electronic form, (i) provided to the Placement Agent by or on behalf of the Issuer or any of its affiliates or (ii) prepared by the Placement Agent and provided to the Issuer prior to distribution to prospective investors in accordance with the preceding sentence.

 

(j)                                    Except for the Accountants’ Due Diligence Report (as defined in Section 3(a) below), it has not obtained any Due Diligence Report (as defined in Section 3(a) below) in connection with the offering contemplated hereby.

 

2.                                      Representations and Warranties of the Co-Issuers.  The Co-Issuers represent and warrant to the Placement Agent that:

 

(a)                                 Time of Sale Information and Offering Memorandum.  The Time of Sale Information, as of the Time of Sale, did not, and as of the Closing Date, will not, and the Offering Memorandum, as of the date thereof, did not, and as of the Closing Date, will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the Co-Issuers do not make any representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with information relating to the Placement Agent furnished to the Co-Issuers in writing by the Placement Agent expressly for use in the Time of Sale Information and the Offering Memorandum and any amendment or supplement thereto (such information, as identified in Section 12, the “Placement Agent Information”).

 

(b)                                 Additional Written Communications.  Other than the Time of Sale Information and the Offering Memorandum, neither the Co-Issuers nor any of their affiliates (including their agents and representatives) have made, used, prepared, authorized, approved or referred to or will prepare, make, use, authorize, approve or refer to any written communication that constitutes an offer to sell or solicitation of an offer to buy the Notes.

 

(c)                                  No Material Adverse Change.  Other than as set forth in the Time of Sale Information, since the Time of Sale and other than as set forth in the Offering Memorandum, since the date thereof, there has not been any material adverse change or any development involving a prospective material adverse change, in or affecting the business, properties, management, financial position, stockholders’ equity or results of operations of the Co-Issuers or the Parent.

 

(d)                                 Organization and Good Standing.  Each of the Co-Issuers and the Parent has been duly organized and is a validly existing organization in good standing under the laws of its jurisdiction of organization, is duly qualified to do business and is in good standing as a foreign entity in each jurisdiction in which the conduct of its business requires such qualification, and has all power and authority necessary to enter into and perform its obligations under each of the Basic Documents (as defined in Section 2(g) below) to which it is a party and to own or hold its properties and to conduct the business in which it is engaged.

 

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(e)                                  Due Authorization.  Each of the Co-Issuers and the Parent has full right, power and authority to execute and deliver each of the Basic Documents to which it is a party, and to perform its obligations hereunder and thereunder; and all action required to be taken for the due and proper authorization, execution and delivery of each of the Basic Documents to which it is a party and the consummation of the transactions contemplated thereby have been duly and validly taken.

 

(f)                                   The Notes.  The Notes have been duly authorized and, when duly executed, authenticated, issued and delivered as provided in the Indenture and paid for as provided herein, will be duly and validly issued and outstanding and will be entitled to the benefits and security afforded by the Indenture.

 

(g)                                  Indenture and the other Basic Documents; Description of Basic Documents.  When used in this agreement, the term “Basic Documents” shall mean this Agreement, the Indenture, the Notes, the Servicing Agreement, the Securities Account Control Agreement, the Preferred Shares Paying Agency Agreement, the Loan Obligations Purchase Agreement, the Loan Obligation Management Agreement and any other contract or agreement that is, or is to be, entered into by the Issuer on the Closing Date or otherwise in connection with any of the foregoing or this Agreement.  Each Basic Document to which the Issuer, Co-Issuer or Parent is a party has been duly authorized by the Issuer, Co-Issuer and Parent, as applicable, and when duly executed and delivered in accordance with its terms by each of the parties thereto (other than the Co-Issuers or the Parent, as applicable), will constitute a valid and legally binding agreement of the Co-Issuers or the Parent, as applicable, enforceable against the Co-Issuers or the Parent, as applicable, in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability.  The Basic Documents described in the Time of Sale Information or the Offering Memorandum will conform in all material respects to the descriptions thereof contained in the Time of Sale Information and in the Offering Memorandum.

 

(h)                                 No Violation or Default.  None of the Co-Issuers or Parent is (A) in violation of its charter, by-laws or similar organizational documents; (B) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or by which it is bound or to which any of its property or assets are subject; or (C) in violation of any law or statute or any judgment, order or regulation of any court or governmental agency or body having jurisdiction over it or any of its properties (“Governmental Authority”).

 

(i)                                     No Conflicts with Existing Instruments.  The execution, delivery and performance by the Issuer, Co-Issuer and Parent of the Basic Documents to which it is a party, the issuance and sale of the Notes and compliance by it with the terms thereof and the consummation of the transactions contemplated by such Basic Documents will not (A) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or, except as contemplated by the Basic Documents, result in the creation or imposition of any lien, charge or encumbrance upon any of its property or assets pursuant to any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or

 

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by which it is bound or to which any of its property or assets are subject; (B) result in any violation of the provisions of the charter, by-laws or similar organizational documents of the Issuer, Co-Issuer or Parent; or (C) result in the violation of any law or statute or any judgment, order or regulation of any Governmental Authority.

 

(j)                                    No Consents Required.  Assuming compliance by the Placement Agent with its agreement in Section 1(b) hereof, no consent, approval, authorization, order, registration or qualification of or with any Governmental Authority is required for the execution, delivery and performance by the Issuer, Co-Issuer or Parent of each of the Basic Documents to which it is a party, the issuance and sale of the Securities and compliance by such Issuer, Co-Issuer or Parent with the terms thereof and the consummation of the transactions contemplated by the Basic Documents, except for such consents, approvals, authorizations, orders and registrations or qualifications as have already been obtained, or as of the Closing Date will have been obtained or as may be required under applicable state securities laws in connection with the placement of the Notes by the Placement Agent or any purchase and resale of the Notes by the Placement Agent.

 

(k)                                 Legal Proceedings.  Except as described in the Time of Sale Information and the Offering Memorandum, there are no legal, governmental or regulatory investigations, actions, suits or proceedings pending to which the Issuer, Co-Issuer or Parent is a party or to which any property of the Issuer, Co-Issuer or Parent is the subject that, individually or in the aggregate, if determined adversely to such Issuer, Co-Issuer or Parent, could reasonably be expected to have a material adverse effect on (A) the ability of any of the Issuer, Co-Issuer or Parent to perform its obligations under any Basic Document to which it is a party or (B) the transactions contemplated herein or in the Basic Documents; to the knowledge after due inquiry of the Co-Issuers and the Parent, no such investigations, actions, suits or proceedings are threatened or contemplated by any Governmental Authority or threatened by others.

 

(l)                                     Title to Assets.  Parent will, at the Closing Date, own and transfer the Loan Obligations, free and clear of any lien, mortgage, pledge, charge, security interest or other encumbrance, and, at the Closing Date, Parent will have full power and authority to sell the Loan Obligations to the Issuer under the Loan Obligations Purchase Agreement and deliver the Loan Obligations to the Issuer thereunder, and at the Closing Date will have duly authorized such sale and delivery to the Issuer by all necessary action; and (C) the Issuer will, at the Closing Date, own the related Collateral, free and clear of any lien, mortgage, pledge, charge, security interest or other encumbrance, and will have full power and authority to pledge such Collateral to the Trustee pursuant to the terms of the Indenture.

 

(m)                             Investment Company Act.  None of the Issuer or the Co-Issuer are, nor after giving effect to the offering and sale of the Notes and the application of the proceeds thereof as described in the Time of Sale Information and the Offering Memorandum, (i) will be an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Securities Exchange Commission thereunder (collectively, the “Investment Company Act”) or (ii) are relying on the exemptions from the requirements of the Investment Company Act pursuant to Section 3(c)(5)(C) thereof or Rule 3a-7 thereunder.

 

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(n)                                 Integration.  None of Issuer, Co-Issuer, or Parent or any of their respective affiliates (as defined in Rule 501(b) of Regulation D) has directly, or through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) that is or will be integrated with the sale of the Notes in a manner that would require registration of the Securities under the Securities Act.

 

(o)                                 No General Solicitation or Directed Selling Efforts.  None of Issuer, Co-Issuer, or Parent or any of their respective affiliates or any other person acting on its or their behalf (other than, in the case of the Notes, the Placement Agent, as to which no representation or warranty is made) has (A) solicited offers for, or offered or sold any of the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act or (B) engaged in any directed selling efforts within the meaning of Regulation S, and all such persons have complied with the offering restrictions requirement of Regulation S.

 

(p)                                 Securities Law Exemptions.  Assuming the accuracy of the representations and warranties of the Placement Agent contained in Section l(b) hereof (including Annex A hereto) and its compliance with the agreements set forth therein, it is not necessary in connection with the offer, sale, resale and delivery of the Notes in the manner contemplated by this Agreement, the Time of Sale Information or the Offering Memorandum to register the Notes under the Securities Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended.

 

(q)                                 Taxes and Fees.  Any taxes, fees and other governmental charges in connection with the execution, delivery and performance of each Basic Document and the Securities (other than such federal, state and local taxes as may be payable on the income or gain recognized therefrom), in all cases to the extent material to any of Issuer, Co-Issuer, or Parent, have been or will be paid at or prior to the Closing Date.

 

(r)                                    Rule 144A Eligibility.  When the Securities are executed, authenticated and delivered pursuant to the Indenture, the Securities will not be (and will not be convertible or exchangeable into securities that are) of the same class as securities listed on a national securities exchange registered under Section 6 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or quoted in an automated inter-dealer quotation system; and the Offering Memorandum, as of its date, contains or, as of the Closing Date, will contain, or the Co-Issuers will otherwise provide or cause to be provided, all the information that, if requested by a prospective purchaser of the Notes, would be required to be provided to such prospective purchaser pursuant to Rule 144A(d)(4) under the Securities Act.

 

(s)                                   Representations in Basic Documents.  The representations and warranties of the Co-Issuers and the Parent contained in the Basic Documents, respectively, shall be true and correct as of the Closing Date in all material respects.

 

(t)                                    17g-5 Compliance.  The Arbor Realty Trust, Inc. (“ART”) has executed and delivered a written representation to Moody’s Ratings Services Inc. (“Moody’s”) and DBRS, Inc. (“DBRS” and, together with Moody’s, the “Rating Agencies”) that it will take the actions

 

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specified in paragraphs (a)(3)(iii)(A) through (D) of Rule 17g-5 of the Exchange Act, and ART has complied with each such representation in all material respects.

 

3.                                      Representations and Warranties of the Parent.  The Parent represents and warrants to the Placement Agent that:

 

(a)                                 The Parent has not obtained any third-party due diligence report contemplated by Rule 15Ga-2 under the Exchange Act (“Rule 15Ga-2”) (each, a “Due Diligence Report”) in connection with the transactions contemplated by this Agreement and the Offering Memorandum other than the agreed-upon procedures report (the “Accountants’ Due Diligence Report”), in form and substance reasonably satisfactory to the Placement Agent, obtained from the accounting firm (the “Accountants”) engaged to provide procedures involving a comparison of information in the loan files for the loans backing the Notes (the “Loans”) to information on a data tape relating to the Loans (“Due Diligence Services”), a copy of which has been furnished to the Placement Agent, at the request of the Parent, and addressed to the Placement Agent.  The Accountants have consented to the use of the Accountants’ Due Diligence Report in the preparation of a Form 15G (as defined below) furnished on EDGAR as required by Rule 15Ga-2.

 

(b)                                 Any certification on Form ABS Due Diligence-15E received by the Parent from the Accountants in connection with the Due Diligence Services provided by the Accountants was promptly posted, after receipt, on the Rule 17g-5 website established by or on behalf of the Parent as required by Rule 17g-5.

 

(c)                                  The Parent (A) prepared one or more reports on Form ABS-15G (each, a “Form 15G”) containing the findings and conclusions of the Accountants’ Due Diligence Report and meeting all other requirements of Rule 15Ga-2, any other rules and regulations of the SEC and the Exchange Act; (B) provided a copy of the final draft of each Form 15G to the Placement Agent at least seven Business Days before the Time of Sale; and (C) furnished each Form 15G to the SEC on EDGAR at least five Business Days before the Time of Sale as required by Rules 15Ga-2.

 

(d)                                 No portion of any Form 15G contains any names, addresses, other personal identifiers or zip codes with respect to any individuals, or any other personally identifiable or other information that would be associated with an individual, including without limitation any “nonpublic personal information” within the meaning of Title V of the Gramm-Leach-Bliley Financial Services Modernization Act of 1999.

 

4.                                      Further Agreements of the Co-Issuers and the Parent.  Each of the Co-Issuers and the Parent jointly and severally covenants and agrees with the Placement Agent that:

 

(a)                                 Delivery of Copies.  It will deliver to the Placement Agent as many printed copies of the Preliminary Offering Memorandum, any other Time of Sale Information and the Offering Memorandum (including all amendments and supplements thereto) as the Placement Agent may reasonably request.

 

(b)                                 Amendments or Supplements.  Before making or distributing any amendment or supplement to any Time of Sale Information or the Offering Memorandum, the Co-Issuers and the Parent will furnish to the Placement Agent and counsel for the Placement

 

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Agent a copy of the proposed amendment or supplement for review and will not distribute any such proposed amendment or supplement to which the Placement Agent reasonably objects.

 

(c)                                  Notice to the Placement Agent.  The Co-Issuers and the Parent will advise the Placement Agent promptly, and confirm such advice in writing:  (i) of the issuance by any governmental or regulatory authority of any order preventing or suspending the use of either any Time of Sale Information or the Offering Memorandum or the initiation or threatening of any proceeding for that purpose; (ii) of the occurrence of any event at any time prior to the completion of the initial offering of the Notes as a result of which any Time of Sale Information or the Offering Memorandum as then amended or supplemented would include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing when the Time of Sale Information and the Offering Memorandum are delivered to a purchaser, not misleading; and (iii) of the receipt by the Co-Issuers or the Parent or any of their affiliates of any notice with respect to any suspension of the qualification of the Notes for offer and sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and the Co-Issuers and the Parent will use their commercially reasonable efforts to prevent the issuance of any such order preventing or suspending the use of any Time of Sale Information or the Offering Memorandum or suspending any such qualification of the Notes and, if any such order is issued, will obtain as soon as possible the withdrawal thereof.

 

(d)                                 Ongoing Compliance.  If, at any time prior to the Time of Sale, (i) any event shall occur or condition shall exist as a result of which any of the Time of Sale Information would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement any of the Time of Sale Information so that any of the Time of Sale Information will not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, the Co-Issuers and the Parent will promptly notify the Placement Agent thereof and forthwith prepare (in a form reasonably acceptable to the Placement Agent) and, subject to paragraph (b) above in this Section 4, furnish to the Placement Agent such amendments or supplements to any of the Time of Sale Information as may be necessary so that the statements in any of the Time of Sale Information as so amended or supplemented will not, in light of the circumstances under which they were made, be misleading.  If at any time prior to the Closing Date, (x) any event shall occur or condition shall exist as a result of which the Offering Memorandum as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances existing (A) when the Offering Memorandum is delivered to a purchaser and (B) at the Closing Date, not misleading or (y) it is necessary to amend or supplement the Offering Memorandum to comply with applicable law, the Co-Issuer and the Parent will promptly notify the Placement Agent thereof and forthwith prepare (in a form reasonably acceptable to the Placement Agent) and, subject to paragraph (b) above in this Section 4, furnish to the Placement Agent such amendments or supplements to the Offering Memorandum as may be necessary so that the statements in the Offering Memorandum as so amended or supplemented will not, in the light of the circumstances existing when the Offering Memorandum as so amended or supplemented is

 

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delivered to a purchaser and at the Closing Date, be misleading or so that the Offering Memorandum will comply with applicable law.

 

(e)                                  Blue Sky Compliance.  The Co-Issuers and the Parent will use commercially reasonable efforts to qualify the Notes for offer and sale under the securities or “blue sky” laws of such jurisdictions in the United States as the Placement Agent shall reasonably request and will continue such qualifications in effect so long as required for the initial offering and sale of the Notes; provided that none of the Co-Issuers and the Parent shall be required to:  (i) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify; (ii) file any general consent to or take any action that would subject itself to service of process in such jurisdiction; or (iii) subject itself to taxation in any such jurisdiction.  Prior to the Time of Sale, the Placement Agent shall notify the Co-Issuers and the Parent of any jurisdictions that would require qualifications or legends or disclaimers in the Preliminary Offering Memorandum.

 

(f)                                   Copies of Reports.  So long as the Notes are outstanding, the Co-Issuers shall furnish, or cause to be furnished, to the Placement Agent copies of all reports or other communications (financial or other) furnished to holders of the Notes.

 

(g)                                  Use of Proceeds.  The Co-Issuers shall apply the net proceeds from the sale of the Securities as described in the Time of Sale Information and the Offering Memorandum under the heading “Use of Proceeds”.

 

(h)                                 Rating Agencies.  The Notes shall have been assigned ratings no lower than those set forth on Schedule I hereto by the Rating Agencies.  To the extent, if any, that the ratings provided with respect to the Notes by the Rating Agencies are conditional upon the furnishing of documents or the taking of any other action by the Co-Issuers or the Parent, the Co-Issuers and the Parent shall use their commercially reasonable efforts to furnish such documents and take any other such action.

 

(i)                                     No Integration.  None of the Co-Issuers and the Parent or any of their respective affiliates (as defined in Rule 501(b) of Regulation D) will, directly or through any agent, sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined in the Securities Act), that is or will be integrated with the sale of the Notes in a manner that would require registration of any of the Securities under the Securities Act.

 

(j)                                    No Solicitation or Directed Selling Efforts.  None of the Co-Issuers, the Parent or any of their respective affiliates or any person acting on its or their behalf (other than, with respect to the Notes, the Placement Agent, as to which no covenant is given) will (i) solicit offers for, or sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act or (ii) engage in any directed selling efforts within the meaning of Regulation S, and all such persons will comply with the offering restrictions requirement of Regulation S.

 

(k)                                 Supplying Information.  While the Notes remain outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Co-

 

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Issuers and the Parent will, during any period in which they are not subject to and in compliance with Section 13 or 15(d) under the Exchange Act, furnish to holders of the Notes and prospective purchasers of the Notes designated by such holders, in each case upon request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

 

(l)                                     DTC.  The Co-Issuers will assist the Placement Agent in arranging for the Notes to be eligible for clearance and settlement through DTC.

 

(m)                             Sale Treatment.  Parent agrees that its transfer of the Loan Obligations shall be reflected on its balance sheet and other financial statements as a sale and/or contribution of the Loan Obligations to the Issuer and not as a financing.  Issuer agrees that the transfer to the Issuer of the Loan Obligations shall be reflected on Issuer’s balance sheet and other financial statements as the purchase and/or acquisition of such Loan Obligations by Issuer from the Parent and not as a loan to Issuer from Parent.  Parent is not selling the Loan Obligations and the Co-Issuers are not selling the Notes with any intent to hinder, delay or defraud any of the creditors of the Parent or the Co-Issuers, as applicable.

 

(n)                                 Rule 17g-5 Compliance.  The Co-Issuers, ART and the Parent shall take reasonable efforts to cause the Trustee (pursuant to the Trustee’s related obligations under the Basic Documents) to comply with each representation made by it to the Rating Agencies with respect to the Notes pursuant to paragraph (a)(3)(iii) of Rule 17g-5.

 

5.                                      Conditions to Placement Agent’s Obligations.  The obligations of the Placement Agent hereunder are subject to the performance by the Co-Issuers and the Parent of their respective covenants and other obligations hereunder and to the following additional conditions:

 

(a)                                 Representations and Warranties.  The representations and warranties of the Co-Issuers and the Parent contained herein shall be true and correct on the date hereof, on and as of the date of the Time of Sale and on and as of the Closing Date; and the statements of the Co-Issuers and the Parent and their respective officers made in any certificates delivered pursuant to this Agreement shall be true and correct in all material respects on and as of the date of the Time of Sale and on and as of the Closing Date.

 

(b)                                 No Material Adverse Change.  Subsequent to the execution and delivery of this Agreement, no event or condition of a type described in Section 2(c) hereof shall have occurred or shall exist, which event or condition is not described in the Time of Sale Information and the Offering Memorandum (excluding any amendment or supplement thereto) and the effect of which, in the judgment of the Placement Agent, makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Notes on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum.

 

(c)                                  Officer’s Certificate of the Co-Issuers.  The Placement Agent shall have received on and as of the Closing Date a certificate of an executive officer of each of the Issuer and the Co-Issuer satisfactory to the Placement Agent:  (i) confirming that such officer has carefully reviewed the Time of Sale Information and the Offering Memorandum and to the knowledge of such officer, after due inquiry, the representation set forth in Section 2(a) hereof is

 

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true and correct; (ii) confirming that the other representations and warranties of the Issuer and Co-Issuer, as applicable, in this Agreement are true and correct in all material respects on and as of the date of the Time of Sale and on and as of the Closing Date and that each of the Issuer and the Co-Issuer, as applicable, have complied in all material respects with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date; and (iii) to the effect set forth in Section 2(c) hereof as to such Issuer.

 

(d)                                 Officer’s Certificate of the Parent.  The Placement Agent shall have received on and as of the Closing Date a certificate of an executive officer of the Parent satisfactory to the Placement Agent:  (i) confirming that such officer has carefully reviewed the Time of Sale Information and the Offering Memorandum and, to the knowledge of such officer, after due inquiry, the representation set forth in Section 2(a) hereof is true and correct; (ii) confirming that the Parent has complied in all material respects with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date; and (iii) to the effect set forth in Section 2(c) hereof as to the Parent, as applicable.

 

(e)                                  Officer’s Certificate of the Loan Obligation Manager.  The Placement Agent shall have received on and as of the Closing Date a certificate of an authorized officer of Arbor Realty Collateral Management, LLC, dated as of the Closing Date, substantially in the form attached hereto as Exhibit A.

 

(f)                                   Officer’s Certificate of the Seller.  The Placement Agent shall have received on and as of the Closing Date a certificate of authorized officers of the Seller, dated as of the Closing Date, substantially in the form attached hereto as Exhibit B.

 

(g)                                  Comfort Letters.  On the date of the Preliminary Offering Memorandum and on the date of this Agreement, Ernst & Young LLP shall have furnished to the Co-Issuers and the Placement Agent, at the request of the Co-Issuers, letters dated the respective dates of delivery thereof and addressed to the Placement Agent, in form and substance reasonably satisfactory to the Placement Agent.

 

(h)                                 Opinion of Counsel for the Co-Issuers and the Parent.  Cadwalader, Wickersham & Taft LLP, special counsel to the Co-Issuers and the Parent, Richards, Layton & Finger, P.A. counsel to the Co-Issuer, Maples and Calder, Cayman Islands counsel to the Issuer, and other applicable counsel to the Parent shall have furnished to the Placement Agent their respective written opinions with respect to such matters as the Placement Agent may reasonably request, each dated the Closing Date and addressed to the Placement Agent and in form and substance reasonably satisfactory to the Placement Agent.  Except with respect to any negative assurance letter relating to the Time of Sale Information or the Offering Memorandum, each such opinion (a) may express counsel’s reliance as to factual matters on certificates of government and agency officials and the representations and warranties made by, and on certificates or other documents furnished by officers of, the parties to the Basic Documents and (b) may be qualified as an opinion only on the law of the State of New York, the Delaware Limited Liability Company Act and the federal law of the United States of America.

 

(i)                                     Opinion of Counsel for the Placement Agent.  The Placement Agent shall have received on and as of the Closing Date an opinion of Clifford Chance US LLP, counsel for

 

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the Placement Agent, with respect to such matters as the Placement Agent may reasonably request, and such counsel shall have received such documents and information as they may reasonably request to enable them to pass upon such matters.

 

(j)                                    Opinion of Counsel for the Trustee, the Preferred Shares Paying Agent, the Loan Obligation Manager, the CLO Servicer, Arbor Realty SR, Inc. and ARMS Equity.  Prior to the placement of the Notes hereunder, the Placement Agent shall have received the opinions, dated as of the Closing Date, of the respective counsel to the Trustee, the Preferred Shares Paying Agent, the Loan Obligation Manager, the CLO Servicer, the Seller and ARMS Equity, each in form and substance reasonably satisfactory to the Placement Agent.

 

(k)                                 Rating Agency Opinions.  The Placement Agent shall be addressed in any opinion from any counsel delivering any written opinion to the Rating Agencies in connection with the transaction described herein which is not otherwise described in this Agreement.

 

(l)                                     Rating Agency Letters.  The Placement Agent shall have received copies of letters from the Rating Agencies stating that the Notes are rated as set forth on Schedule I hereto by the Rating Agencies.

 

(m)                             No Legal Impediment to Issuance.  No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any Governmental Authority that would, as of the Closing Date, prevent the issuance or sale of the Notes; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Notes.

 

(n)                                 Good Standing.  The Placement Agent shall have received on and as of the Closing Date satisfactory evidence of the good standing of each of the Issuer, Co-Issuer, and the Parent in its jurisdiction of organization, dated not earlier than 30 days prior to the Closing Date, in each case, in writing or any standard form of telecommunication from the appropriate Governmental Authorities of such jurisdiction.

 

(o)                                 DTC.  All the Notes shall be eligible for clearance and settlement through DTC.

 

(p)                                 Additional Documents.  On or prior to the Closing Date, the Co-Issuers and the Parent shall have furnished to the Placement Agent such other certificates and documents as the Placement Agent may reasonably request.

 

(q)                                 Compliance with Rule 15Ga-2 and Rule 17g-5.                                   The Co-Issuers shall have complied with all requirements of Rule 15Ga-2 and Rule 17g-5 under the Exchange Act to the satisfaction of the Placement Agent.

 

6.                                      Indemnification and Contribution.

 

(a)                                 Indemnification of the Placement Agent by Co-Issuers and ART  Each of the Co-Issuers and ART (jointly and severally) agree to indemnify and hold harmless the Placement Agent, its affiliates, directors and officers and each person, if any, who controls the Placement Agent within the meaning of Section 15 of the Securities Act or Section 20 of the

 

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Exchange Act (each a “Placement Agent Indemnitee”), from and against any and all losses, claims, damages and liabilities (including, without limitation, out-of-pocket legal fees and other out-of-pocket expenses incurred in connection with any suit, action, investigations or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Time of Sale Information or the Offering Memorandum (or any amendment or supplement thereto), or any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with information with respect to which the Placement Agent has agreed to indemnify each of the Issuer, Co-Issuer and ART pursuant to Section 6(b) hereof; provided that with respect to any such untrue statement in or omission from the Time of Sale Information, the indemnity agreement contained in this paragraph (a) with respect to the Time of Sale Information shall not inure to the benefit of a Placement Agent Indemnitee, to the extent that the sale to the person asserting any such loss, claim, damage or liability was an initial sale by the Placement Agent and any such loss, claim, damage or liability of or with respect to the Placement Agent results from the fact that (i) prior to the occurrence of the events described in clause (ii) below, and prior to the Time of Sale, the Co-Issuers or ART shall have notified the Placement Agent that the Time of Sale Information contains an untrue statement of material fact or omits to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, (ii) such untrue statement or omission of a material fact was corrected in an amended or supplemented Time of Sale Information and such corrected Time of Sale Information was provided to the Placement Agent far enough in advance of the Time of Sale (but not less than one (1) Business Day) so that such corrected Time of Sale Information could have been provided (electronically or otherwise) to such person asserting any such loss, claim, damage or liability prior to the Time of Sale and (iii) the Placement Agent did not send or give such corrected Time of Sale Information to such person at or prior to the Time of Sale.

 

(b)                                 Indemnification of the Co-Issuers and ART by Placement Agent.  The Placement Agent agrees to indemnify and hold harmless the Co-Issuers and ART and their respective affiliates, directors and officers and each person, if any, who controls any of the Co-Issuers or ART within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the indemnity set forth in subsection (a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with the Placement Agent Information.

 

(c)                                  [Reserved]

 

(d)                                 Notice and Procedures.  If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to paragraph (a) or (b) above, such person (the “Indemnified Person”) shall promptly notify the person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may

 

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have under this Section 6 except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure (in which case the Indemnifying Person shall be relieved of its indemnification obligation only to the extent of any loss caused by the Indemnified Person’s failure to provide notice); and provided further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under this Section 6.  If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 6 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred.  In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; or (iii) the use of counsel chosen by the Indemnifying Person to represent the Indemnified Person would present such counsel with a conflict of interest.  It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are incurred.  Any such separate firm for the Placement Agent, its affiliates, directors, officers and any control persons of the Placement Agent shall be designated in writing by the Placement Agent and any such separate firm for the Co-Issuers and ART, their respective directors and officers and any person who controls the Co-Issuers or ART, as applicable, within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall be designated in writing by the Co-Issuers and ART.  Upon receipt of notice from the Indemnifying Person to such Indemnified Person of its election to assume the defense of such action and approval by the Indemnified Person of counsel, the Indemnifying Person will not be liable to such Indemnified Person under this Section 6 for any legal or other expenses subsequently incurred by such Indemnified Person in connection with the defense thereof unless the Indemnified Person shall have employed separate counsel in accordance with the third immediately preceding sentence (it being understood, however, that the Indemnifying Person shall not be liable for the expenses of more than one separate counsel (in addition to local counsel).  The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there is a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than forty-five (45) days after receipt by the Indemnifying Person of such request, (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement and (iii) such settlement does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of the Indemnifying Person.  No Indemnifying Person shall, without the written consent of the

 

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Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes an unconditional release of such Indemnified Person, in form and substance satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

 

(e)                                  Contribution.  If the indemnification provided for in subsections (a) or (b) above is unavailable to an Indemnified Person or is insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Co-Issuers and ART on the one hand and the Placement Agent on the other from the offering of the Notes or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Co-Issuers or ART on the one hand and the Placement Agent on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.  The relative benefits received by the Co-Issuers and ART on the one hand and the Placement Agent on the other shall be deemed to be in the same respective proportions as the net proceeds (before deducting expenses) received by the Co-Issuers and/or ART from the sale of the Notes and the total fees, discounts and commissions received by the Placement Agent in connection therewith bear to the aggregate offering price of the Notes.  The relative fault of the Co-Issuers and ART on the one hand and the Placement Agent on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Co-Issuers or ART or by the Placement Agent and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances.

 

(f)                                   Limitation on Liability.  Each of the Co-Issuers, ART and the Placement Agent agrees that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (e) above.  The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (e) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 6, in no event shall the Placement Agent be required to contribute any amount in excess of the amount by which the total fees, discounts and commissions received by it with respect to the offering of the Notes exceeds the amount of any damages that the Placement Agent has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  Further, ART and the Co-Issuers each acknowledge

 

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and agree that the Placement Agent has no responsibility and shall not assume any liability for (i) any information that is posted to the internet website established and maintained by ART, the Parent, the Co-Issuers or any other party pursuant to Rule 17g-5 of the Exchange Act (such internet website, the “17g-5 Website”), or (ii) the failure of any information to be posted to the 17g-5 Website by any party.

 

(g)                                  Non-Exclusive Remedies.  The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.

 

7.                                      Effectiveness of Agreement.  This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.

 

8.                                      Termination.  This Agreement may be terminated in the absolute discretion of the Placement Agent solely with respect to its role in this transaction, by notice to the Co-Issuers and the Parent if, after the execution and delivery of this Agreement and prior to the Closing Date (a) trading generally shall have been suspended or materially limited on or by any of the New York Stock Exchange or the over-the-counter market; (b) a general moratorium on commercial banking activities shall have been declared by federal or New York State authorities or there is a material disruption in commercial banking or securities settlement or clearance services in the United States generally; or (c) there shall have occurred any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis, either within or outside the United States, that in the judgment of the Placement Agent is material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Notes on the terms and in the manner contemplated by this Agreement, the Time of Sale Information or the Offering Memorandum.

 

9.                                      Payment of Expenses.

 

(a)                                 Regardless of whether the transactions contemplated by this Agreement are consummated or whether this Agreement is terminated, the Co-Issuers and the Parent shall pay or cause to be paid all costs and expenses incident to the performance of their obligations hereunder, including without limitation, (i) the costs incident to the authorization, issuance, sale, preparation and delivery of the Notes and any taxes payable in connection therewith; (ii) the costs and expenses incident to the preparation and printing of the Time of Sale Information and the Offering Memorandum (including all exhibits, attachments, amendments and supplements thereto) and the distribution thereof in connection with the offering, purchase, sale, resale and delivery of the Notes; (iii) the costs of reproducing and distributing each of the Basic Documents; (iv) the reasonable costs and expenses of the Placement Agent, including the fees and expenses of its counsel, transfer taxes on resale of any of the Notes by the Placement Agent, any advertising expenses and other expenses incurred by the Placement Agent in connection with offering or reoffering the Notes and/or entering into purchase contracts with investors in the Notes; (v) the fees and expenses of the counsel to the Co-Issuers, the Parent and independent accountants; (vi) the fees and expenses incurred in connection with the registration or qualification and determination of eligibility for investment of the Notes under the laws of such jurisdictions as the Placement Agent may designate and the preparation, printing and distribution of any “blue sky” memorandum (including the related reasonable fees and expenses of counsel

 

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for the Placement Agent); (vii) any fees charged by the Rating Agencies for rating and surveillance of the Notes; (viii) the fees and expenses of the Trustee and the CLO Servicer (including related reasonable fees and expenses of any counsel to such parties), except to the extent otherwise set forth in the Basic Documents; (ix) all expenses and application fees incurred in connection with the application for the approval of all the Notes for book-entry transfer by DTC; (x) all reasonable expenses incurred in connection with any “road show” presentation to potential investors; (xi) the costs and expenses of the Co-Issuers in connection with the purchase of the Loan Obligations; and (xii) all other costs and expenses incident to the performance of the obligations of the Co-Issuers and the Parent hereunder that are not otherwise specifically provided for in this Section 9(a).

 

(b)                                 If (i) this Agreement is terminated pursuant to Section 8 hereof, (ii) the Co-Issuers for any reason fail to tender the Notes for delivery to the Placement Agent, (iii) the Issuer, Co-Issuer, or Parent fail or refuse to comply with this Agreement, or (iv) the Placement Agent fails to place the Notes, each of the Issuer, the Co-Issuer, and the Parent (jointly and severally) agrees to reimburse the Placement Agent for all out-of-pocket costs and expenses (including the fees and expenses of its counsel) reasonably incurred by the Placement Agent in connection with this Agreement and the offer and sale of the Notes contemplated hereby.

 

10.                               Persons Entitled to Benefit of Agreement.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors.  Nothing in this Agreement is intended or shall be construed to give any other person, other than the affiliates, officers, directors and controlling persons referred to in Section 6 hereof and their respective heirs and legal representatives any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein.  No purchaser of Notes from the Placement Agent shall be deemed to be a successor merely by reason of such purchase.

 

11.                               Survival.  The respective indemnities, rights of contribution, representations, warranties and agreements of the Co-Issuers, the Parent and the Placement Agent contained in this Agreement or made by or on behalf of the Co-Issuers, the Parent or the Placement Agent pursuant to this Agreement or any certificate delivered pursuant hereto shall survive the delivery of and payment for the Notes and shall remain in full force and effect, regardless of any termination of this Agreement or any investigation made by or on behalf of the Co-Issuers and the Parent or the Placement Agent.

 

12.                               Placement Agent Information.  The parties hereto acknowledge and agree that the Placement Agent Information shall consist solely of the fourth and fifth sentences of the first paragraph under the heading “Placement of the Notes” in the Offering Memorandum.

 

13.                               Certain Defined Terms.  For purposes of this Agreement, except where otherwise expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the Securities Act.

 

14.                               Miscellaneous.

 

(a)                                 Notices.  All notices and other communications hereunder shall be in writing and effective only upon receipt, and shall be deemed to have been duly given if mailed or

 

20

 

transmitted and confirmed by any standard form of telecommunication.  Notices to the Placement Agent shall be given to it at J.P. Morgan Securities LLC, 383 Madison Avenue, 8th Floor, New York, New York  10179, Attention:  ABS Syndicate, fax:  212-834-6754, email:  andy.cherna@jpmorgan.com, with copies to J.P. Morgan Securities LLC, 383 Madison Avenue, 32nd Floor, New York, New York  10179, Attention: Bianca A. Russo, fax: (917) 464-6116, email:  russo_bianca@jpmorgan.com, and Clifford Chance US LLP, 31 West 52nd Street, New York, New York 10019, Attention: Steven T. Kolyer, fax: (212) 878-8375, email: steven.kolyer@cliffordchance.com.  Notices to the Issuer shall be given to it at Arbor Realty Commercial Real Estate Notes 2016-FL1, Ltd., c/o MaplesFS Limited, Queensgate House, P.O. Box 1093, Queensgate House, KY1 1102, Grand Cayman, Cayman Islands, Attention:  The Directors, telephone:  (345) 945 7099, fax:  (345) 945 7100 with a  copy to the Parent at the address below.  Notices to ART or the Parent shall be given to them at Arbor Realty Collateral Management, LLC, 333 Earle Ovington Boulevard, 9th Floor, Uniondale, New York  11553, Attention:  Executive Vice President, Structured Securitization, fax:  (212) 389 6573, telephone:  (212) 389 6546.  Notices to the Co-Issuer shall be given to it at Arbor Realty Commercial Real Estate Notes 2016-FL1, LLC, c/o Puglisi & Associates, 850 Library Avenue, Suite 204, Newark, Delaware 19711, Attention:  Donald J. Puglisi, telephone:  (302) 738 6680, fax:  (302) 738 7210 with a copy to the Parent at the address above.

 

(b)                                 Governing Law.  THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT, THE RELATIONSHIP OF THE PARTIES TO THIS AGREEMENT, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES TO THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAW RULES THEREOF.  THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

 

(c)                                  Integration.  This Agreement supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof and contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof.

 

(d)                                 Counterparts.  This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Agreement in Portable Document Format (PDF) or by facsimile transmission shall be as effective as delivery of a manually executed original counterpart of this Agreement.

 

(e)                                  Amendments or Waivers.  No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto.

 

(f)                                   Headings.  The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

 

21

 

(g)                                  No Bankruptcy Petition/Limited Recourse.  The Placement Agent covenants and agrees that, prior to the date which is one year and one day (or, if longer, the applicable preference period then in effect plus one day) after the payment in full of all of the Notes issued by the Co-Issuers, it will not institute against, or join any other person in instituting against, any of the Co-Issuers any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy, insolvency, reorganization or similar law in any jurisdiction.  Notwithstanding any other provision of this Agreement, the obligations of the Issuer hereunder are limited-recourse obligations and the obligations of the Co-Issuer hereunder are non-recourse obligations, in each case, payable solely from the Collateral in accordance with the terms of the Indenture and following realization thereof and reduction thereof to zero, all obligations of and all claims against the Co-Issuers hereunder or arising in connection herewith shall be extinguished and shall not thereafter revive.  No recourse may be had under this Agreement against any employee, agent, officer, partner, member, shareholder or director of any party hereto (collectively, the “Associated Persons”), in respect of the transactions contemplated by this Agreement, it being expressly agreed and understood that this Agreement is solely an obligation of each of the parties hereto and that no personal liability whatever shall attach to or be incurred by any Associated Person under or by reason of the obligations, representations and agreements of the parties contained in this Agreement, or implied therefrom.  This Section 14(g) shall survive the termination or expiration of this Agreement.

 

(h)                                 Waiver of Jury Trial.  EACH OF THE CO-ISSUERS, THE PARENT AND THE PLACEMENT AGENT HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY PARTY AGAINST THE OTHER PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  EACH PARTY HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

 

(i)                                     Exclusive Jurisdiction.  EACH OF THE PARTIES HERETO IRREVOCABLY (I) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT; (II) WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM IN ANY ACTION OR PROCEEDING IN ANY SUCH COURT; (III) AGREES THAT A FINAL JUDGMENT IN ANY ACTION OR PROCEEDING IN ANY SUCH COURT SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER

 

22

 

JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (IV) CONSENTS TO SERVICE OF PROCESS UPON IT BY MAILING A COPY THEREOF BY CERTIFIED MAIL ADDRESSED TO IT AS PROVIDED FOR NOTICES HEREUNDER.

 

[SIGNATURE PAGES FOLLOW]

 

23

 

If the foregoing is in accordance with your understanding, please indicate your acceptance of this Agreement by signing in the space provided below.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
ISSUER:
    
	
 
    	
 
    
	
 
    	
ARBOR REALTY COMMERCIAL REAL ESTATE NOTES 2016-FL1, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

[Signatures continue on following page]

 

[Placement Agreement]

 

 

	
 
    	
CO-ISSUER:
    
	
 
    	
 
    
	
 
    	
ARBOR REALTY COMMERCIAL REAL ESTATE NOTES 2016-FL1, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signatures continue on following page]

 

[Placement Agreement]

 

 

	
 
    	
PARENT:
    
	
 
    	
 
    
	
 
    	
ARBOR REALTY SR, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signatures continue on following page]

 

[Placement Agreement]

 

 

	
 
    	
ART:
    
	
 
    	
 
    
	
 
    	
ARBOR REALTY TRUST, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signatures continue on following page]

 

[Placement Agreement]

 

 

	
Accepted:                        ,   2016
    	
 
    
	
 
    	
 
    
	
PLACEMENT   AGENT:
    	
 
    
	
 
    	
 
    
	
J.P. MORGAN SECURITIES LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Placement Agreement]

 

 

SCHEDULE I

 

NOTES

 

	
 
    	
 
    	
Initial Note
   Principal
   Balance
    	
 
    	
Interest Rate
    	
 
    	
Ratings
   (Moody’s/ DBRS)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A Notes
    	
 
    	
U.S.$
    	
183,625,000
    	
 
    	
One-month LIBOR + 1.70%
    	
 
    	
Aaa(sf)/AAA(sf)
    
	
Class B Notes
    	
 
    	
U.S.$
    	
22,750,000
    	
 
    	
One-month LIBOR + 2.95%
    	
 
    	
Baa2(sf)/AA(sf)
    
	
Class C Notes
    	
 
    	
U.S.$
    	
43,875,000
    	
 
    	
One-month LIBOR + 5.50%
    	
 
    	
NR/BBB(low)(sf)
    

 

The aggregate combined Advisory, Structuring and Placement Agent Fee paid to the Placement Agent is U.S.$2,502,500.

 

Sch. I-1

 

ANNEX A

 

Restrictions on Offers and Sales Outside the United States

 

In connection with offers and sales of the Notes outside the United States:

 

(a)                                 The Placement Agent acknowledges that the Notes have not been registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in transactions not subject to, the registration requirements of the Securities Act.

 

(b)                                 The Placement Agent represents, warrants and agrees that:

 

(A) It has offered and sold the Notes, and will offer and sell the Notes, (A) as part of their distribution at any time and (B) otherwise until forty (40) days after the later of the commencement of the offering of the Notes and the Closing Date, only in accordance with Regulation S or Rule 144A or any other available exemption from registration under the Securities Act.

 

(B) Neither it nor any of its affiliates or any other person acting on its or their behalf has engaged or will engage in any directed selling efforts with respect to the Notes, and all such persons have complied and shall comply with the offering restrictions requirement of Regulation S.

 

(C) At or prior to the confirmation of sale of any Notes sold in reliance on Regulation S, it will have sent to each distributor, dealer or other person receiving a selling concession, fee or other remuneration that purchases Notes from it during the distribution compliance period a confirmation or notice to substantially the following effect:

 

“The Notes offered hereby have not been registered under Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until forty (40) days after the later of the commencement of the offering of the Notes and the date of original issuance of the Notes, except in accordance with Regulation S or Rule 144A or any other available exemption from registration under the Securities Act.  Terms used above have the meanings given to them in Regulation S.”

 

(D) It has not and will not enter into any contractual arrangement with any distributor with respect to the distribution of the Notes, except with its affiliates or with the prior written consent of the Co-Issuers.

 

Annex A-1

 

(E) It has not made and will not make any invitation to any member of the public in the Cayman Islands, within the meaning of Section 175 of the Cayman Islands Companies Law (2013 Revision), to subscribe for the Notes.

 

Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in this Agreement have the meanings given to them in Regulation S.

 

(c)                                  The Placement Agent further represents, warrants and agrees that:

 

(A) it has only communicated or caused to be communicated and will only communicate or cause to be communicated in the United Kingdom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the FSMA does not apply to the Co-Issuers and (B) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom;

 

(B) it, in relation to each member state of the European Economic Area which has implemented the Prospectus Directive (each, a “Relevant Member State”), has represented and agreed that, with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State, has not made and will not make an offer of the Notes which are the subject of the offering contemplated by the Offering Memorandum as completed by the accompanying prospectus to the public in that Relevant Member State other than:  (A) to any legal entity which is a “qualified investor” as defined in the Prospectus Directive; (B) to fewer than 100 or, if the Relevant Member State has implemented the relevant provisions of the 2010 PD Amending Directive, 150 natural or legal persons (other than “qualified investors” as defined in the Prospectus Directive) subject to obtaining the prior consent of the Placement Agent nominated by the issuing entity for any such offer; or (C) in any other circumstances falling within Article 3(2) of the Prospectus Directive;  provided that, no such offer of the Notes referred to in (A) to (C) above shall require the Co-Issuers or the Placement Agent to publish a prospectus pursuant to Article 3 of the Prospectus Directive.  For the purposes of this Section 1(b)(viii), (1) the expression an “offer of the Notes which are subject of the offering contemplated by the Offering Memorandum to the public” in relation to any Notes in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase or subscribe to the Notes, as the same may be varied in that Relevant Member State by any measure implementing the Prospectus Directive in that Relevant Member State, (2) the expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including by the 2010 PD Amending Directive to the extent implemented in each Relevant Member State) and includes any relevant implementing measure in the

 

Annex A-2

 

Relevant Member State, and (3) the expression “2010 PD Amending Directive” means Directive 2010/73/EU; and

 

(C)  The Notes have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended, (the “FIEA”)).  Accordingly, the Placement Agent represents and agrees that it has not, directly or indirectly, offered or sold and will not, directly or indirectly, offer or sell any Notes in Japan or to, or for the benefit of, a resident of Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan) or to others for re-offering or resale, directly or indirectly, in Japan or to, or for the benefit of, any resident in Japan, except pursuant to an exemption from the registration requirements of, and otherwise in compliance with the FIEA and other relevant laws and regulations of Japan.

 

(d)                                 The Placement Agent acknowledges that no action has been or will be taken by the Co-Issuers that would permit a public offering of the Notes, or possession or distribution of the Time of Sale Information, the Offering Memorandum or any other offering or publicity material relating to the Notes, in any country or jurisdiction where action for that purpose is required.

 

Annex A-3

 

ANNEX B

 

Subsequent Time of Sale Information

 

Annex B-1

 

EXHIBIT A

 

ARBOR REALTY COLLATERAL MANAGEMENT, LLC

Officer’s Certificate

 

The undersigned, Paul Elenio, pursuant to Section 5(e) of that certain Placement Agreement dated as of August 5, 2016 by and among Arbor Realty Commercial Real Estate Notes 2016-FL1, Ltd., Arbor Realty Commercial Real Estate Notes 2016-FL1, LLC, Arbor Realty SR, Inc., Arbor Realty Trust, Inc. and J.P. Morgan Securities LLC (the “Placement Agreement”) does HEREBY CERTIFY that:

 

(a)                                 The Loan Obligation Manager (i) is a limited liability company, duly organized, is validly existing and is in good standing under the laws of the State of Delaware, (ii) has full power and authority to own its assets and to transact the business in which it is currently engaged, and (iii) is duly qualified and is in good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires, or the performance of the Loan Obligation Management Agreement and the Indenture would require, such qualification, except for failures to be so qualified that would not in the aggregate have a material adverse effect on the business, operations, assets or financial condition of the Loan Obligation Manager or on the ability of the Loan Obligation Manager to perform its obligations thereunder, or on the validity or enforceability of, the Loan Obligation Management Agreement and the provisions of the Indenture applicable to the Loan Obligation Manager; the Loan Obligation Manager has full power and authority to execute, deliver and perform the Loan Obligation Management Agreement and its obligations thereunder and the provisions of the Indenture applicable to it; the Loan Obligation Management Agreement has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding agreement of the Loan Obligation Manager, enforceable against it in accordance with the terms thereof, except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law);

 

(b)                                 Neither the Loan Obligation Manager nor any of its Affiliates is in violation of any federal or state securities law or regulation promulgated thereunder that would have a material adverse effect upon the ability of the Loan Obligation Manager to perform its duties under the Loan Obligation Management Agreement or the Indenture, and there is no charge, investigation, action, suit or proceeding before or by any court or regulatory agency pending or, to the best knowledge of the Loan Obligation Manager, threatened which could reasonably be expected to have a material adverse effect upon the ability of the Loan Obligation Manager to perform its duties under the Loan Obligation Management Agreement or the Indenture;

 

(c)                                  Neither the execution and delivery of the Loan Obligation Management Agreement nor the performance by the Loan Obligation Manager of its duties thereunder or under the Indenture conflicts with or will violate or result in a breach or violation of any of the terms or provisions of, or constitutes a default under:  (i) the limited liability company agreement of the Loan Obligation Manager, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement or other evidence of indebtedness or other agreement, obligation, condition, covenant or instrument to which the Loan Obligation Manager is a party or is bound,

 

A-1

 

(iii) any law, decree, order, rule or regulation applicable to the Loan Obligation Manager of any court or regulatory, administrative or governmental agency, body or authority or arbitrator having jurisdiction over the Loan Obligation Manager or its properties, and which would have, in the case of any of (i), (ii) or (iii) of this subsection (c), either individually or in the aggregate, a material adverse effect on the business, operations, assets or financial condition of the Loan Obligation Manager or the ability of the Loan Obligation Manager to perform its obligations under the Loan Obligation Management Agreement or the Indenture;

 

(d)                                 No consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality or court or other person is required for the performance by the Loan Obligation Manager of its duties under the Loan Obligation Management Agreement and under the Indenture, except such as have been duly made or obtained;

 

(e)                                  The Offering Memorandum, as of the date thereof (including as of the date of any supplement thereto) and as of the Closing Date does not contain any untrue statement of a material fact and does not omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading;

 

(f)                                   On the Closing Date, there shall not have been, since the respective dates as of which information is given in the Offering Materials, any material adverse change or prospective material adverse change with respect to the Issuer, the Co-Issuer or the pool of Assets; and

 

(g)                                  The Loan Obligation Manager is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

 

Capitalized terms not set forth herein shall have the meaning ascribed thereto in the Indenture.

 

[Signature page follows]

 

A-2

 

IN WITNESS WHEREOF, the undersigned has hereunto set his hand this     day of                        , 2016.

 

 

	
 
    	
ARBOR REALTY COLLATERAL   MANAGEMENT, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[Officer Certificate pursuant to Placement Agreement]

 

 

EXHIBIT B

 

ARBOR REALTY SR, INC.

 

Officer’s Certificate

 

The undersigned, Valerie Rubin, pursuant to Section 5(f) of that certain Placement Agreement dated as of August 5, 2016, by and among Arbor Realty Commercial Real Estate Notes 2016-FL1, Ltd., Arbor Realty Commercial Real Estate Notes 2016-FL1, LLC, Arbor Realty SR, Inc., Arbor Realty Trust, Inc. and J.P. Morgan Securities LLC (the “Placement Agreement”) does HEREBY CERTIFY that:

 

(a)                                 Arbor Realty SR, Inc. (“Seller”) (i) is a corporation, duly incorporated, is validly existing and is in good standing under the laws of the State of Maryland, (ii) has full power and authority to own its assets and to transact the business in which it is currently engaged, and (iii) is duly qualified and is in good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires, or the performance of the Loan Obligation Purchase Agreement and the Indenture would require, such qualification, except for failures to be so qualified that would not in the aggregate have a material adverse effect on the business, operations, assets or financial condition of Seller or on the ability of Seller to perform its obligations thereunder, or on the validity or enforceability of, the Loan Obligation Purchase Agreement and the provisions of the Indenture applicable to Seller; Seller has full power and authority to execute, deliver and perform the Loan Obligation Purchase Agreement and its obligations thereunder and the provisions of the Indenture applicable to it; the Loan Obligation Purchase Agreement has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding agreement of Seller, enforceable against it in accordance with the terms thereof, except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights and (ii) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law);

 

(b)                                 Neither Seller nor any of its Affiliates is in violation of any federal or state securities law or regulation promulgated thereunder that would have a material adverse effect upon the ability of Seller to perform its duties under the Loan Obligation Purchase Agreement or the Indenture, and there is no charge, investigation, action, suit or proceeding before or by any court or regulatory agency pending or, to the best knowledge of Seller, threatened which could reasonably be expected to have a material adverse effect upon the ability of Seller to perform its duties under the Loan Obligation Purchase Agreement or the Indenture;

 

(c)                                  Neither the execution and delivery of the Loan Obligation Purchase Agreement nor the performance by Seller of its duties thereunder or under the Indenture conflicts with or will violate or result in a breach or violation of any of the terms or provisions of, or constitutes a default under:  (i) the articles of incorporation or by-laws of Seller, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement or other evidence of indebtedness or other agreement, obligation, condition, covenant or instrument to which Seller is

 

B-1

 

a party or is bound, (iii) any law, decree, order, rule or regulation applicable to Seller of any court or regulatory, administrative or governmental agency, body or authority or arbitrator having jurisdiction over Seller or its properties, and which would have, in the case of any of (i), (ii) or (iii) of this subsection (c), either individually or in the aggregate, a material adverse effect on the business, operations, assets or financial condition of Seller or the ability of Seller to perform its obligations under the Loan Obligation Purchase Agreement or the Indenture;

 

(d)                                 No consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality or court or other person is required for the performance by Seller of its duties under the Loan Obligation Purchase Agreement and under the Indenture, except such as have been duly made or obtained; and

 

(e)                                  With respect to any information in the Offering Memorandum regarding Seller, the Offering Memorandum, as of the date thereof (including as of the date of any supplement thereto) and as of the Closing Date does not contain any untrue statement of a material fact and does not omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(f)                                   With respect to Section 5(d) of the Placement Agreement, (i) the undersigned has carefully reviewed the Time of Sale Information (as defined in the Placement Agreement) and the Offering Memorandum and hereby confirms, to the knowledge of the undersigned, after due inquiry, the representation set forth in Section 2(a) of the Placement Agreement is true and correct; (ii) the undersigned further confirms that the Seller has complied in all material respects with all agreements and satisfied all conditions on its part to be performed or satisfied under the Placement Agreement at or prior to the Closing Date; and (iii) other than as set forth in the Time of Sale Information, since the Time of Sale (as defined in the Placement Agreement) and other than as set forth in the Offering Memorandum, since the date thereof, there has not been any material adverse change or any development involving a prospective material adverse change, in or affecting the business, properties, management, financial position, stockholders’ equity or results of operations of the Seller.

 

Capitalized terms not set forth herein shall have the meaning ascribed thereto in the Indenture.

 

[Signature page follows]

 

B-2

 

IN WITNESS WHEREOF, the undersigned has hereunto set his hand this      day of          , 2016.

 

	
 
    	
ARBOR REALTY   SR, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[Officer Certificate pursuant to Placement Agreement]EX-10.11

 Exhibit 10.11 

SERIES C CONVERTIBLE PREFERRED STOCK 

AND WARRANT PURCHASE AGREEMENT 

VISTERRA, INC. 

June 29, 2016 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
	 1.
	 	 Authorization; Sale and Issuance of Series C Convertible Preferred Stock and
Warrants
	  	 	1	  
				
		 	 1.1
	  	 Authorization
	  	 	1	  
		 	 1.2
	  	 Sale and Issuance of Shares and Warrants
	  	 	1	  
		 	 1.3
	  	 Use of Proceeds
	  	 	3	  
			
	 2.
	 	 Representations of the Company
	  	 	3	  
				
		 	 2.1
	  	 Organization; Good Standing and Qualification
	  	 	3	  
		 	 2.2
	  	 Authorization
	  	 	3	  
		 	 2.3
	  	 Valid Issuance of Stock and Warrants
	  	 	4	  
		 	 2.4
	  	 Governmental Consents
	  	 	4	  
		 	 2.5
	  	 Capitalization
	  	 	5	  
		 	 2.6
	  	 Subsidiaries
	  	 	7	  
		 	 2.7
	  	 Environmental and Safety Laws
	  	 	7	  
		 	 2.8
	  	 Litigation
	  	 	7	  
		 	 2.9
	  	 Intellectual Property
	  	 	7	  
		 	 2.10
	  	 Compliance with Other Instruments
	  	 	8	  
		 	 2.11
	  	 Contracts and Commitments
	  	 	8	  
		 	 2.12
	  	 Related-Party Transactions
	  	 	9	  
		 	 2.13
	  	 Permits
	  	 	10	  
		 	 2.14
	  	 Information Supplied to Purchasers
	  	 	10	  
		 	 2.15
	  	 Corporate Documents
	  	 	10	  
		 	 2.16
	  	 Title to Property and Assets
	  	 	10	  
		 	 2.17
	  	 Financial Statements
	  	 	10	  
		 	 2.18
	  	 Employee Benefit Plans
	  	 	10	  
		 	 2.19
	  	 Tax Returns, Payments and Elections
	  	 	11	  
		 	 2.20
	  	 Corporate Records
	  	 	11	  
		 	 2.21
	  	 Proprietary Information and Inventions Agreements
	  	 	11	  
		 	 2.22
	  	 Employee Matters
	  	 	11	  
		 	 2.23
	  	 Qualified Small Business Stock
	  	 	12	  
		 	 2.24
	  	 Foreign Corrupt Practices Act
	  	 	12	  
		 	 2.25
	  	 Government Contracts
	  	 	12	  
		 	 2.26
	  	 Insurance
	  	 	13	  
		 	 2.27
	  	 Section 83(b) Elections
	  	 	13	  
			
	 3.
	 	 Representations of the Purchasers
	  	 	13	  
				
		 	 3.1
	  	 Authorization
	  	 	13	  
		 	 3.2
	  	 Purchase Entirely for Own Account
	  	 	13	  
		 	 3.3
	  	 Disclosure of Information
	  	 	13	  
		 	 3.4
	  	 Investment Experience
	  	 	14	  

  
 - i - 

									
		 	 3.5
	  	 Accredited Investor
	  	 	14	  
		 	 3.6
	  	 Restricted Securities
	  	 	14	  
		 	 3.7
	  	 No Public Market
	  	 	14	  
		 	 3.8
	  	 Legends
	  	 	14	  
			
	 4.
	 	 Conditions to the Obligations of the Purchasers
	  	 	14	  
				
		 	 4.1
	  	 Representations and Warranties
	  	 	15	  
		 	 4.2
	  	 Performance
	  	 	15	  
		 	 4.3
	  	 Opinion of Counsel
	  	 	15	  
		 	 4.4
	  	 Securities Law Approvals
	  	 	15	  
		 	 4.5
	  	 Voting Agreement
	  	 	15	  
		 	 4.6
	  	 Right of First Refusal and Co-Sale Agreement
	  	 	15	  
		 	 4.7
	  	 Certificates and Documents
	  	 	15	  
		 	 4.8
	  	 Management Rights Letter
	  	 	16	  
		 	 4.9
	  	 Compliance Certificate
	  	 	16	  
		 	 4.10
	  	 Board of Directors
	  	 	16	  
		 	 4.11
	  	 Indemnification Agreements
	  	 	16	  
		 	 4.12
	  	 Absence of Litigation
	  	 	16	  
		 	 4.13
	  	 Other Matters
	  	 	16	  
			
	 5.
	 	 Conditions to Obligations of the Company
	  	 	16	  
				
		 	 5.1
	  	 Representations and Warranties
	  	 	16	  
		 	 5.2
	  	 Payment of Purchase Price
	  	 	16	  
		 	 5.3
	  	 Absence of Litigation
	  	 	16	  
		 	 5.4
	  	 Other Matters
	  	 	17	  
			
	 6.
	 	 Covenants of the Company
	  	 	17	  
				
		 	 6.1
	  	 Financial Statements
	  	 	17	  
		 	 6.2
	  	 Operating Plan; Other Reporting
	  	 	17	  
		 	 6.3
	  	 Inspection
	  	 	18	  
		 	 6.4
	  	 Employee Agreements
	  	 	18	  
		 	 6.5
	  	 Employee Stock Options
	  	 	18	  
		 	 6.6
	  	 Reservation of Conversion Stock
	  	 	18	  
		 	 6.7
	  	 Board Meetings
	  	 	18	  
		 	 6.8
	  	 Qualified Small Business Stock
	  	 	18	  
			
	 7.
	 	 Participation Rights
	  	 	19	  
				
		 	 7.1
	  	 Definitions
	  	 	19	  
		 	 7.2
	  	 Participation Right
	  	 	19	  
		 	 7.3
	  	 Notice; Exercise of Right
	  	 	19	  
		 	 7.4
	  	 Overallotment
	  	 	20	  
		 	 7.5
	  	 Closing
	  	 	20	  
		 	 7.6
	  	 Failure to Exercise Right
	  	 	21	  
		 	 7.7
	  	 Transfer of Participation Right
	  	 	21	  

  
 - ii - 

									
	 8.
	 	 Registration Rights
	  	 	21	  
				
		 	 8.1
	  	 Definitions
	  	 	21	  
		 	 8.2
	  	 Demand Registration
	  	 	23	  
		 	 8.3
	  	 “Piggy-Back” Registration
	  	 	25	  
		 	 8.4
	  	 Form S-3 Registration
	  	 	26	  
		 	 8.5
	  	 Obligations of the Company
	  	 	27	  
		 	 8.6
	  	 Furnish Information
	  	 	29	  
		 	 8.7
	  	 Expenses of Demand and S-3 Registrations
	  	 	29	  
		 	 8.8
	  	 Expenses of “Piggy-Back” Registration
	  	 	30	  
		 	 8.9
	  	 Delay of Registration
	  	 	30	  
		 	 8.10
	  	 Indemnification
	  	 	30	  
		 	 8.11
	  	 Reports Under the 1934 Act
	  	 	32	  
		 	 8.12
	  	 “Market Stand-Off” Agreement
	  	 	33	  
		 	 8.13
	  	 Limitations on Subsequent Registration Rights
	  	 	34	  
		 	 8.14
	  	 Termination of Registration Rights
	  	 	34	  
			
	 9.
	 	 Transfers and Assignment
	  	 	34	  
				
		 	 9.1
	  	 Assignment of Certain Rights
	  	 	34	  
		 	 9.2
	  	 Subsequent Transfers
	  	 	34	  
			
	 10.
	 	 Confidentiality
	  	 	35	  
				
		 	 10.1
	  	 Confidential Information
	  	 	35	  
		 	 10.2
	  	 Foundation
	  	 	35	  
			
	 11.
	 	 Miscellaneous
	  	 	35	  
				
		 	 11.1
	  	 Survival of Representations and Warranties
	  	 	35	  
		 	 11.2
	  	 Termination of Certain Provisions
	  	 	36	  
		 	 11.3
	  	 Expenses
	  	 	36	  
		 	 11.4
	  	 Successors and Assigns
	  	 	36	  
		 	 11.5
	  	 Governing Law
	  	 	36	  
		 	 11.6
	  	 Counterparts
	  	 	36	  
		 	 11.7
	  	 Construction
	  	 	36	  
		 	 11.8
	  	 Notices
	  	 	36	  
		 	 11.9
	  	 Brokers
	  	 	37	  
		 	 11.10
	  	 Amendments and Waivers
	  	 	37	  
		 	 11.11
	  	 Severability
	  	 	38	  
		 	 11.12
	  	 Aggregation of Stock
	  	 	38	  
		 	 11.13
	  	 Entire Agreement
	  	 	38	  
		 	 11.14
	  	 Delays or Omissions
	  	 	38	  

  
 - iii - 

			
		
	EXHIBITS	  	
		
	Exhibit A	  	Form of Restated Certificate
		
	Exhibit B	  	Form of Warrant
		
	Exhibit C	  	Form of Fifth Amended and Restated Voting Agreement
		
	Exhibit D	  	Form of Fifth Amended and Restated Right of First Refusal and Co-Sale Agreement
		
	Exhibit E	  	Form of Proprietary Information and Inventions Agreement
		
	Exhibit F	  	Form of Legal Opinion
		
	Exhibit G	  	Form of Indemnification Agreement
		
	SCHEDULE	  	
		
	Schedule 1	  	Schedule of Purchasers
	
	Disclosure Schedule

  
 - iv - 

 SERIES C CONVERTIBLE PREFERRED STOCK 

AND WARRANT PURCHASE AGREEMENT 

This Series C Convertible Preferred Stock and Warrant Purchase Agreement dated as of June 29, 2016 (this “Agreement”) is
made by and among (i) Visterra, Inc., a Delaware corporation (the “Company”), (ii) the persons and entities listed on Schedule 1 hereto (each individually, a “Purchaser” and collectively, the
“Purchasers”), (iii) solely for the purposes of Sections 6 through 11 of this Agreement, the “Preferred Holders” (as defined in Section 8.1 below) who are not Purchasers, and,
(iv) solely for the purposes of Sections 8 through 11 of this Agreement, the “Founder Holders” (as defined in Section 8.1 below), who are not Purchasers. 

In consideration of the mutual promises and covenants contained in this Agreement, the parties hereby agree as follows: 

1. Authorization; Sale and Issuance of Series C Convertible Preferred Stock and Warrants. 

1.1 Authorization 
 (a)
The Company shall adopt and file with the Secretary of State of the State of Delaware on or before the First Closing (as defined below) an Amended and Restated Certificate of Incorporation (the “Restated Certificate”) in the form of
Exhibit A attached to this Agreement, which shall set forth the terms of the Series C Convertible Preferred Stock, $0.01 par value per share (the “Series C Preferred Stock”), to be purchased under this Agreement. 

(b) Prior to the First Closing, the Company duly authorized (i) the sale and issuance, pursuant to the terms of this Agreement, of up to
an aggregate of 25,250,000 shares of Series C Preferred Stock, (ii) the sale and issuance, pursuant to the terms of this Agreement, of warrants to purchase up to 1,310,344 shares of the Company’s common stock, $0.0001 par value per share
(the “Common Stock”), in substantially the form attached hereto as Exhibit B (the “Warrants”) and (iii) the reservation of shares of the Company’s Common Stock, for issuance upon conversion of the
Series C Shares (as defined below) to be sold at the Closings (as defined below) and the Warrants to be issued upon satisfaction of the conditions in Section 1.2(b). The shares of Series C Preferred Stock sold under this Agreement
(including any shares issued at the First Closing (as defined below) and any Additional Shares (as defined below)) are referred to herein as the “Series C Shares.” 

1.2 Sale and Issuance of Shares and Warrants 

(a) The initial purchase and sale of Series C Shares under this Agreement (the “First Closing”) shall take place remotely
via the exchange of documents and signatures on June 29, 2016. At the First Closing, subject to the terms and conditions of this Agreement, the Company will sell and issue to each of the Purchasers, and each Purchaser will purchase, for the
purchase price of $1.45 per share (the “Purchase Price”), the number of Series C Shares set forth opposite such Purchaser’s name on Schedule 1 under the heading “Number of Series C Shares.” As an
additional inducement to purchase Series C Shares and in consideration of the aggregate purchase price paid for the Series C Shares purchased by such Purchasers, the 

  
 -1- 

 
Company will issue and sell, subject to Section 1.2(b), such number of Warrants as each such Purchaser is entitled to acquire pursuant to Section 1.2(b). In the event there is
more than one closing, the term “Closing” shall apply to each such closing unless otherwise specified. 
 (b) Unless waived by
the Purchasers in accordance with Section 11.10, the Purchasers have the right to acquire a Pro Rata Portion (as defined below) of such number of Warrants as is equal to the quotient obtained by dividing the difference between the
Financing Milestone (as defined below) and the gross proceeds raised from Financing Activities (as defined below) by the Purchase Price; provided, however, that the Purchasers will only receive such Warrants if, between the date of this
Agreement and February 28, 2017 (the “Financing Milestone Deadline”), the Company has not raised an aggregate of $25,000,000 in gross proceeds (the “Financing Milestone”) from (a) the sale of Series C
Shares and Warrants pursuant to this Agreement and (b) any payments to the Company prior to the Financing Milestone Deadline pursuant to any business development, licensing or similar agreement, either currently existing or which the Company
enters into prior to the Financing Milestone Deadline (clause (a) and (b), together, the “Financing Activities”). For the avoidance of doubt, the Financing Milestone shall not include any payments made by third parties to the
Company as reimbursement for research and development expenses, or any payments to the Company pursuant to the Company’s Cost Plus Fixed Fee Contract for Research and Development, dated September 28, 2015, between the Company and
ASPR-BARDA. The Board (as defined below) shall determine, in its sole discretion, whether the Company has or has not achieved the Financing Milestone by the Financing Milestone Deadline. For the purposes of this Section 1.2(b), “Pro
Rata Portion” shall mean, for each Purchaser, such percentage as is equal the number of Series C Shares such Purchaser purchased under this agreement at the Closing divided by the total number of Series C Shares sold to all the Purchasers
under this agreement at the Closing. 
 (c) After the First Closing, the Company may sell, on the same terms and conditions as those
contained in this Agreement, up to 9,318,965 additional shares (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or similar recapitalization affecting such shares) of Series C Preferred Stock (the
“Additional Shares”), to one or more purchasers reasonably acceptable to Purchasers holding a majority of the then outstanding Series C Shares, provided that (i) such subsequent sale is consummated prior to 60 days after the
First Closing and (ii) each Additional Purchaser shall become a party to the Financing Agreements (as defined below), by executing and delivering a counterpart signature page substantially in the form attached to this Agreement. Schedule
1 to this Agreement shall be updated to reflect the number of Additional Shares purchased at each such Closing and the parties purchasing such Additional Shares. 

(d) At each Closing, the Company shall deliver to each Purchaser a certificate representing the number of Series C Shares being purchased by
and issued to such Purchaser at such Closing, in each case against payment of the Purchase Price by check payable to the Company, by wire transfer to a bank account designated by the Company, by cancellation or conversion of indebtedness of the
Company to Purchasers, including interest, or by any combination of such methods. In the event that payment by a Purchaser is made, in whole or in part, by cancellation of indebtedness, then such Purchaser shall surrender to the Company for
cancellation at the Closing any evidence of such indebtedness or shall execute an instrument of 

  
 -2- 

 
cancellation in form and substance acceptable to the Company. Any Purchaser who did not purchase Series C Shares in the First Closing shall become a party to the Financing Agreements (as defined
below) by executing and delivering a counterpart signature page to such agreements substantially in the form attached to this Agreement. If the Company does not achieve the Financing Milestone by the Financing Milestone Deadline, each
Purchaser’s Warrants shall be certificated within five (5) business days after the Board determines such Financing Milestone has not been achieved and will be deemed issued as of the Financing Milestone Deadline. 

1.3 Use of Proceeds. In accordance with the directions of the Company’s board of directors (the “Board”), as it
shall be constituted in accordance with the Voting Agreement (as defined below), the Company will use the proceeds from the sale of the Series C Shares for general corporate purposes, including, but not limited to, funding the portion of the VIS410
manufacturing costs and the portion of the planned VIS410 Phase 2b clinical trial in hospitalized patients diagnosed with influenza A that may not be funded by the U.S. Biomedical Advanced Research and Development Authority; advancing current
early-stage programs, including VIS-FLX, VIS-GMN and VIS-IGA; and funding new and ongoing research activities, including the continued expansion of the Hierotope platform. 

2. Representations of the Company. The Company hereby represents and warrants to each Purchaser that, except as set forth in the
Disclosure Schedule attached hereto, the following representations and warranties are true and complete as of such Closing, as applicable, except with respect to any representation or warranty that is expressly made as of a different date, in which
case such representation or warranty shall be true and correct as of such date. The Disclosure Schedule is arranged in sections corresponding to the numbered and lettered sections and subsections contained in this Section 2, and the
disclosures in any section or subsection of the Disclosure Schedule shall qualify other sections and subsections in this Section 2 to the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable
to such other sections and subsections. 
 2.1 Organization; Good Standing and Qualification. The Company is a corporation duly
organized, validly existing, and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own its property, to carry on its business as now conducted and as proposed to be conducted, to execute,
deliver and perform its obligations under this Agreement, the Fifth Amended and Restated Voting Agreement, in the form of Exhibit C hereto (the “Voting Agreement”), and the Fifth Amended and Restated Right of First
Refusal and Co-Sale Agreement, in the form of Exhibit D hereto (the “Right of First Refusal and Co-Sale Agreement” and, collectively with the Voting Agreement and this Agreement, the “Financing
Agreements”) and to consummate the transactions contemplated hereby and thereby. The Company is duly qualified to transact business and is in good standing in the Commonwealth of Massachusetts and in each other foreign jurisdiction in which
the failure to so qualify would have a material adverse effect on its business or properties. 
 2.2 Authorization. The Financing
Agreements and the Warrants constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms, subject to and limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, and other laws
generally applicable to creditors’ rights, (ii) judicial discretion in the availability of equitable relief, and (iii) federal and state securities laws to the extent applicable 

  
 -3- 

 
to the indemnification provision set forth in Section 8 (the “Bankruptcy and Equitable Remedies Exception”). The execution, delivery and performance of the Financing
Agreements and the Warrants and the performance of all obligations of the Company thereunder have been duly authorized by all necessary corporate, stockholder or other action of the Company. Prior to any Closing, the Company shall take all necessary
corporate action to authorize the (a) issuance, sale and delivery of the Series C Shares to be sold and delivered at such Closing, in accordance with this Agreement, (b) the issuance and delivery of the shares of Common Stock upon
conversion of the Series C Shares to be sold at such Closing, (c) the issuance, sale and delivery of the Warrants, to be delivered pursuant to Section 1.2(d), in accordance with this Agreement, and (d) the issuance, sale and delivery
of the shares of Common Stock upon conversion of the Warrants. 
 2.3 Valid Issuance of Stock and Warrants.

(a) The Series C Shares and Warrants, when issued, sold, and delivered in accordance with this Agreement for the consideration set forth on
Schedule 1, and the shares of Common Stock issuable upon conversion of the Series C Shares and Warrants, when issued upon such conversion, will be duly and validly issued, fully paid, and nonassessable and, based in part upon the
representations of the Purchasers in this Agreement, will (i) be issued in compliance with all applicable U.S. federal and state securities laws, subject to the securities law filings described in Section 2.4 below and (ii) be
free and clear of all mortgages, liens, charges, security interests, adverse claims, pledges, encumbrances and demands whatsoever (other than those created by the Purchasers); provided, however, that such shares may be subject to
restrictions on transfer imposed or created under the Financing Agreements or Warrants or by applicable law. 
 (b) The outstanding shares
of Seed Preferred Stock (as defined below), Series A Preferred Stock (as defined below), Series B Preferred Stock (as defined below), and Common Stock were all duly and validly authorized and issued, fully paid, and nonassessable, and were
issued in compliance with all applicable federal and state securities laws. 
 (c) No “bad actor” disqualifying event (a
“Disqualification Event”) described in Rule 506(d)(1)(i)-(viii) of the Securities Act of 1993, as amended (the “Securities Act”), is applicable to the Company or, to the Company’s knowledge, any Company
Covered Person (as defined below), except for a Disqualification Event as to which Rule 506(d)(2)(ii)-(iv) or (d)(3) is applicable. “Company Covered Person” means, with respect to the Company as an “issuer” for
purposes of Rule 506, any Person listed in the first paragraph of Rule 506(d)(1). 
 2.4 Governmental Consents. The Company is not
required to obtain the consent, approval, order, or authorization of, or complete any registration, qualification, designation, declaration, or filing with, any U.S. federal, state, local, or provincial governmental authority in connection with the
execution, delivery and performance of the Financing Agreements and Warrants and the consummation of the transactions contemplated thereby, except for certain U.S. federal and state securities law filings that are permitted or required to be filed
following any Closing. 

  
 -4- 

 2.5 Capitalization. The authorized capital of the Company consists, as of the date hereof
(immediately prior to the First Closing), of the following: 
 (a) Preferred Stock. 88,195,998 shares of preferred stock, $0.01 par
value per share (“Preferred Stock”), of which (i) 6,178,926 shares have been designated Seed Convertible Preferred Stock (“Seed Preferred Stock”), 6,091,426 of which are issued and outstanding,
(ii) 32,447,072 shares have been designated Series A Convertible Preferred Stock (“Series A Preferred Stock”), all of which are issued and outstanding, (iii) 24,320,000 shares have been designated Series B
Convertible Preferred Stock (“Series B Preferred Stock”), 24,000,000 of which are issued and outstanding and (iv) 25,250,000 shares have been designated Series C Preferred Stock, none of which are issued and outstanding.
The rights, privileges and preferences of the Seed Preferred Stock, Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock are as stated in the Restated Certificate. 

(b) Common Stock. 126,000,000 shares of Common Stock, of which, as of the date hereof, 18,547,405 shares are issued and outstanding.

 (c) The outstanding shares of capital stock of the Company (i) have been duly authorized and validly issued in compliance with
applicable laws, and are fully paid and nonassessable, and (ii) with respect to the outstanding shares of Common Stock held by the holders of at least one percent (1%) or more of the Company’s issued and outstanding securities on an
as converted fully diluted basis, are subject to a right of first refusal in favor of the Company upon transfer, subject to standard exceptions. All outstanding securities of the Company held by the holders of at least one percent (1%) or more
of the Company’s issued and outstanding securities on an as converted fully diluted basis, including, without limitation, all shares of capital stock of the Company issuable upon conversion or exercise of all convertible or exercisable
securities, are subject to a one hundred eighty (180) day “market stand-off” restriction upon an initial public offering of the Company’s securities pursuant to a registration statement filed with the SEC. 

(d) The Company has reserved: 

(A) 25,250,000 shares of Common Stock for issuance upon the conversion of the Series C Shares; 

(B) 88,195,998 shares of Common Stock (as may be adjusted in accordance with the provisions of the Amended and Restated Certificate) for
issuance upon conversion of the Preferred Stock; and 
 (C) 10,903,649 shares of Common Stock authorized for issuance to employees,
consultants and directors pursuant to its 2008 Stock Incentive Plan, as amended, of which options to purchase 10,267,303 shares have been granted and are currently outstanding and 636,346 shares of Common Stock remain available for issuance to
employees, consultants and directors pursuant to the 2008 Stock Incentive Plan, as amended. 
 (e) Warrants. 87,500 shares of Seed
Preferred Stock, 320,000 shares of Series B Preferred Stock and 4,270,624 shares of Common Stock of the Company have been 

  
 -5- 

 
reserved for issuance upon exercise of warrants issued or potentially to be issued by the Company. 

(f) Rights To Acquire Stock. Except as set forth on Section 2.5(f) of the Disclosure Schedule and in the Financing
Agreements and Warrants, there are no outstanding options, warrants, rights (including conversion rights, preemptive rights or rights of first refusal) or agreements for the purchase or acquisition from the Company of any shares of its capital
stock. 
 (g) Securityholder Lists and Agreements. Set forth in Section 2.5(g)(i) of the Disclosure Schedule is a true
and complete list of all securityholders of the Company, showing the number of shares of Series C Preferred Stock, Series B Preferred Stock, Series A Preferred Stock, Seed Preferred Stock, Common Stock or other securities of the Company held by
each such securityholder as of immediately following the First Closing. Except as disclosed in Section 2.5(g)(ii) of the Disclosure Schedule and except as set forth in the Financing Agreements and Warrants, there are no agreements,
written or oral, between the Company and any holder of its capital stock, or, to the best knowledge of the Company, between or among any holders of its capital stock, relating to the acquisition (including the redemption by the Company),
disposition, registration or voting of the capital stock of the Company or rights for stockholders information about the Company. Except as set forth in Section 2.5(g)(iii) of the Disclosure Schedule and except as set forth in the
Financing Agreements and Warrants, the Series C Shares and Warrants covered by this Agreement and the shares of Common Stock issuable upon conversion of the Series C Shares and Warrants are not subject to any preemptive rights or rights of first
refusal, and there are no other agreements that provide any person with the right to purchase any shares of capital stock of the Company, regardless of whether such shares are currently outstanding. 

(h) Vesting Schedule. Except as set forth in Section 2.5(h) of the Disclosure Schedule, all options granted vest as follows:
(i) twenty-five percent (25%) of the shares vest one (1) year following the vesting commencement date, with the remaining seventy-five percent (75%) vesting in equal installments over the next three (3) years or
(ii) one hundred percent (100%) of the shares vest in equal monthly installments over the four years following the grant date. Except as set forth in Section 2.5(h) of the Disclosure Schedule, no stock plan, stock purchase, stock
option or other agreement or understanding between the Company and any holder of any equity securities or rights to purchase equity securities provides for acceleration or other changes in the vesting provisions or other terms of such agreement or
understanding as the result of (i) termination of employment (whether actual or constructive); (ii) any merger, consolidated sale of stock or assets, change in control or any other transaction(s) by the Company; or (iii) the
occurrence of any other event or combination of events. Except as set forth in Section 2.5(h) of the Disclosure Schedule, the Company has no obligation (contingent or otherwise) to purchase or redeem any of its capital stock. 

(i) Compliance with Securities Laws. All issued and outstanding shares of the Company’s Common Stock and Preferred Stock
(i) have been duly authorized and validly issued and are fully paid and nonassessable, and (ii) were issued in compliance with all applicable U.S. state and federal laws concerning the issuance of securities. 

  
 -6- 

 (j) The Company has obtained valid waivers of any rights by other parties to purchase any of the
Series C Shares and Warrants covered by this Agreement. 
 2.6 Subsidiaries. Except as set forth on Section 2.6 of the
Disclosure Schedule, the Company does not own or control, directly or indirectly, any interest in any other corporation, association, or other business entity. The Company is not a participant in any joint venture, partnership or similar
arrangement. 
 2.7 Environmental and Safety Laws. The Company is not in material violation of any applicable statute, law, or
regulation relating to the environment or occupational health and safety, and to the best of its knowledge, no material expenditures are or will be required by the Company in order to comply with any such existing statute, law, or regulation. 

2.8 Litigation. There is no action, suit, proceeding, or investigation currently pending or, to the best knowledge of the Company,
currently threatened against the Company or any of its officers or directors that (i) challenges the validity of the Financing Agreements or Warrants or the authority of the Company to execute the Financing Agreements or Warrants or to
consummate the transactions contemplated therein, (ii) might result in any material adverse change in the assets, condition, prospects, or affairs, of the Company, financially or otherwise, or (iii) might result in any material change in
the current equity ownership of the Company, nor is the Company aware of any basis for the foregoing. There is no action, suit, proceeding, or investigation by the Company currently pending or that the Company intends to initiate. 

2.9 Intellectual Property. Except as set forth in Section 2.9 of the Disclosure Schedule, the Company has sufficient rights
in or ownership of all patents, patent applications, trademarks, trademark applications, service marks, service mark applications, tradenames, copyrights, trade secrets, domain names, mask works, information and proprietary rights and processes,
similar or other intellectual property rights, subject matter of any of the foregoing, tangible embodiments of any of the foregoing, licenses in, to and under any of the foregoing, and any and all such cases that are owned or used by the Company in
the conduct of the Company’s business as now conducted and as presently proposed to be conducted (“Company Intellectual Property”), without, to its knowledge, any material conflict with or infringement of the intellectual
property rights of others. Section 2.9 of the Disclosure Schedule lists all of the Company’s issued patents, published patent applications and trademarks. Except for the Exclusive Patent License Agreement entered into by the Company
and MIT on April 28, 2008, as it may be amended from time to time (the “2008 Patent License Agreement”), and that certain Exclusive Patent License Agreement entered into by the Corporation and MIT on November 15, 2013, as
it may be amended from time to time (together with the 2008 Patent License Agreement, the “Patent License Agreements”) and as set forth in Section 2.9 of the Disclosure Schedule, the Company is not bound by or a
party to any options, licenses, or agreements with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, proprietary rights, or processes of any other person or entity. The Company has not
received any communications alleging that the Company has infringed or misappropriated or, by conducting its business as proposed, would infringe, violate or misappropriate any of the patents, trademarks, service marks, trade names, copyrights,
trade secrets, or other proprietary rights, or processes of any other person or entity. The Company has satisfied and/or met all milestones and similar requirements set forth in the Patent License 

  
 -7- 

 
Agreements that, if not so satisfied or met, would result in the termination thereof. The Company has no knowledge that any of its officers, employees or consultants is obligated under any
contract (including licenses, covenants, or commitments of any nature) or other agreement, or is subject to any judgment, decree, or order of any court or administrative agency, that would interfere with his or her ability to perform his or her
intended duties for the Company or that would conflict with the intended business of the Company, the execution and delivery of the Financing Agreements and Warrants, the conduct of the intended duties of officers, employees and consultants of the
Company, and to the best knowledge of the Company, the conduct of the business of the Company as currently conducted and as proposed to be conducted, will not conflict with or result in a breach of the terms, conditions, or provisions of, or
constitute a default under, any contract, covenant, or instrument which legally binds any of such officers, employees or consultants. The Company does not believe it is or will be necessary to utilize any inventions made by its current officers,
employees or consultants prior to their association with the Company, except for inventions covered by the Patent License Agreements. 

2.10 Compliance with Other Instruments. The Company is not in violation or default of (i) any provision of the Restated
Certificate or its By-Laws, (ii) any legally binding instrument, judgment, order, writ, decree, or contract, other than any such violations or defaults that do not and will not, individually or in the aggregate, have a material adverse effect
on the Company or (iii) any provision of federal or state statute, rule, or regulation applicable to the Company, other than any such violations or defaults that do not and will not, individually or in the aggregate, have a material adverse
effect on the Company. The execution, delivery, and performance of the Financing Agreements and Warrants and the consummation of the transactions contemplated therein will not, with or without the passage of time and giving of notice,
(a) conflict with, nor result in any violation of or default under any such instrument, judgment, order, writ, decree, contract, or provision or (b) give rise to any event that results in the creation of any lien, charge, or encumbrance
upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization, or approval that applies to the Company, its business or operations, or any of its assets or
properties. The Company has not performed any act or failed to perform any act, the occurrence of which would result in the Company’s loss of any right granted under any license or other agreement set forth in the Disclosure Schedule, except
where the loss of such right would not, individually or in the aggregate, be reasonably likely to have a material adverse effect on the Company or its assets, liabilities, financial conditions, prospects or operations. 

2.11 Contracts and Commitments. 

(a) Section 2.11(a) of the Disclosure Schedule contains a list of all agreements, contracts, obligations, or commitments, of any
nature to which the Company is a party or by which it or any of its properties are bound, other than the Financing Agreements and Warrants, that are material to the conduct and operations of its business and properties, including any such contracts
that are employment contracts; stock redemption or purchase agreements; loan agreements, security agreements and guaranties; licenses, distributor or sales representative agreements; agreements with officers, directors, employees or shareholders of
the Company or persons or organizations related to or affiliated with any such persons; leases; agreements relating to product development; or pension, profit-sharing, retirement or stock option plans (collectively, the “Material
Contracts”). Each Material Contract constitutes a valid and legally 

  
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binding obligation of the Company, enforceable in accordance with its respective terms, and is in full force and effect. The Company is not in material default under any Material Contract and
there is no state of facts which upon notice or lapse of time or both would constitute such a default. To the best knowledge of the Company, no other party to a Material Contract is in default thereunder and to the best knowledge of the Company,
there is no state of facts which upon notice or lapse of time or both would constitute such a default. The performance of each Material Contract by the Company will not violate any other agreement, judgment, order, writ or decree binding upon the
Company or materially violate any provision of any federal or state statute, rule or regulation applicable to the Company. To the best of the Company’s knowledge, the performance of each Material Contract by each other party thereto will not
violate any other agreement, judgment, order, writ or decree binding upon such other party or materially violate any provision of any federal or state statute, rule or regulation applicable to such other party. The Company is not a party to any
contract or arrangement that is reasonably likely to have a material adverse effect on the business, properties, or prospects of the Company. 

(b) To the best knowledge of the Company, no employee of the Company is in default under any outstanding contract, obligation, or commitment
of such employee with any prior employer. Neither the Company nor, to the best knowledge of the Company, any of its employees, officers, directors or consultants is a party to any contract or agreement, oral or written, that prohibits them from
freely competing or engaging in the business of the Company. 
 (c) A true and complete copy of each Material Contract has been made
available to counsel to the Purchasers and the Company. 
 (d) Except as set forth in the Financing Agreements, the Company is presently
not under any obligation, and has not granted any rights, to register under the Securities Act any of the Company’s presently outstanding securities or any of its securities that may hereafter be issued. To the Company’s knowledge, except
as contemplated in the Voting Agreement, no stockholder of the Company has entered into any agreement with respect to the voting of equity securities of the Company. 

(e) The Company is not a guarantor or indemnitor of any indebtedness of any other person or entity. 

2.12 Related-Party Transactions. No employee, officer, director or consultant of the Company or member of his or her immediate family
is indebted to the Company, nor is the Company indebted (or committed to make loans or extend or guarantee credit) to any of them. To the best knowledge of the Company, none of such persons has any direct or indirect ownership interest in any firm
or corporation with which the Company is affiliated or with which the Company has a business relationship, or any firm or corporation that competes with the Company, except that employees, officers, directors or consultants of the Company and
members of their immediate families may own stock in publicly traded companies that may compete with the Company where such interest does not exceed one percent (1%) of the outstanding voting stock of any such publicly traded company. Except as
set forth on Section 2.12 of the Disclosure Schedule, no officer or director of the Company or member of the immediate family of any officer or director of the Company is directly or indirectly interested in any Material Contract.

  
 -9- 

 
Section 2.12 of the Disclosure Schedule sets forth, as of the date hereof (or the date of the relevant Closing), the cash, equity and other compensation paid or promised to be paid to
each officer of the Company. 
 2.13 Permits. The Company has obtained all franchises, permits, licenses, and any similar authority
necessary for the conduct of its current operations, the lack of which could materially and adversely affect the business, properties, or financial condition of the Company. The Company is not in violation in any material respect of any of such
franchises, permits, licenses, or other similar authority. 
 2.14 Information Supplied to Purchasers. Neither this Agreement, as
qualified by the Schedules, nor any certificate furnished to the Purchasers at any Closing, when read together, contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained
herein or therein not misleading. There is no material fact relating to the business, prospects, operations, affairs, or conditions of the Company which adversely affects the same which has not been set forth in this Agreement or in the Schedules or
Exhibits. The Company has made available to each Purchaser all the information reasonably available to the Company that such Purchaser has requested for deciding whether to purchase the Series C Shares and Warrants. 

2.15 Corporate Documents. The Restated Certificate and By-Laws of the Company are in the form previously provided to the Purchasers.

 2.16 Title to Property and Assets. The Company has good title to, or a valid leasehold interest in, all of its material property
and assets and none of such property or assets is subject to any mortgages, liens, loans or encumbrances, except (i) for statutory liens for the payment of current taxes that are not yet delinquent and (ii) such encumbrances and liens
which arise in the ordinary course of business and which, either singly or in the aggregate, do not materially impair the Company’s ownership or use of such property or assets. 

2.17 Financial Statements. The Company has delivered to the Purchasers (a) the unaudited balance sheet of the Company at
December 31, 2015 and the related unaudited statements of operations and cash flows for the fiscal year then ended and (b) the unaudited balance sheet of the Company at and for the three-month period ended March 31, 2016 (together,
the “Financial Statements”). The Financial Statements are correct and complete in all material respects as of the dates indicated therein, have been prepared in accordance with generally accepted accounting principles applied on a
consistent basis through the periods indicated therein, and fairly and accurately present the financial position of the Company as of the dates indicated therein, except that the unaudited Financial Statements may not contain all footnotes required
by generally accepted accounting principles (“GAAP”). The Financial Statements have been prepared from the books and records of the Company, which books and records accurately and fairly reflect the financial position of the
Company. 
 2.18 Employee Benefit Plans. Section 2.18 of the Disclosure Schedule lists all employee benefit plans (as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) maintained by the Company. Each of such employee 

  
 -10- 

 
benefit plans complies in all material respects with (a) all applicable requirements of ERISA and (b) all applicable requirements of the Internal Revenue Code of 1986, as amended (the
“Code”). 
 2.19 Tax Returns, Payments and Elections. The Company has duly and timely filed all tax returns and tax
reports (including information returns and reports) as required by law. Such returns and reports are true and correct in all material respects, including the amount shown as due from the Company. The Company has paid all taxes and other assessments
due to the Internal Revenue Service or any state taxing authority. The Company’s tax returns have not been audited by the United States Internal Revenue Service or by any state taxing authority and, to the Company’s knowledge, no such
audit has been threatened by any such federal or state authority. 
 2.20 Corporate Records. The minute books of the Company provided
to the Purchasers contain complete records of all meetings and other corporate actions of the Board and the Company’s stockholders since the time of incorporation and reflect all transactions referred to in such minutes and corporate actions
accurately in all material respects. 
 2.21 Proprietary Information and Inventions Agreements. Each current and former employee,
consultant and officer of the Company has executed a Proprietary Information and Inventions Agreement in substantially the form attached hereto as Exhibit E, or an agreement containing substantially similar terms, and, except as set
forth in Section 2.21 of the Disclosure Schedule, has not excluded works or inventions made prior to his or her employment with the Company from his or her assignment of inventions pursuant thereto. The Company has no knowledge that any
of its current or former employees, consultants or officers are in violation of these agreements. Except to the extent assigned, licensed or otherwise transferred to the Company, to the Company’s knowledge, it will not be necessary to use any
inventions of any of its employees or consultants (or Persons it currently intends to hire) made prior to their employment by the Company. 

2.22 Employee Matters. 

(a) Except as set forth on Section 2.22(a) of the Disclosure Schedule, the Company is not delinquent in payments to any of its
employees, consultants, or independent contractors for any wages, salaries, commissions, bonuses, or other direct compensation for any service performed for it to the date hereof or, to the Company’s knowledge, amounts required to be reimbursed
to such employees, consultants or independent contractors. To the Company’s knowledge, the Company has complied in all material respects with all applicable state and federal equal employment opportunity laws and with other laws related to
employment, including those related to wages, hours, worker classification and collective bargaining. The Company has withheld and paid to the appropriate governmental entity or is holding for payment not yet due to such governmental entity all
amounts required to be withheld from employees of the Company. No current or former employee of the Company has initiated or threatened to initiate any action that alleges a violation of federal or state employment law. 

(b) To the Company’s knowledge, no Key Employee intends to terminate employment with the Company or is otherwise likely to become
unavailable to continue as a Key Employee, nor does the Company have a present intention to terminate the 

  
 -11- 

 
employment of any of the foregoing. The employment of each employee of the Company is terminable at the will of the Company and no employee of the Company has been granted the right to continued
employment by the Company. Except as set forth on Section 2.22(b) of the Disclosure Schedule, the Company has not granted to any employee the right to any compensation (including without limitation, severance) following termination of
employment with the Company. The Company has no policy, practice, plan or program of paying severance pay or any form of severance compensation in connection with the termination of employment services. For purposes of this Agreement, “Key
Employee” means any executive-level employee and vice president-level positions). 
 (c) The Company has not made any
representations regarding equity incentives to any officer, employee, director or consultant that are inconsistent with the share amounts and terms set forth in the minutes of meetings of the Board. 

2.23 Qualified Small Business Stock. As of and immediately following any Closing: (i) the Company will be an eligible corporation
as defined in Section 1202(e)(4) of the Code, (ii) the Company will not have made any purchases of its own stock described in Code Section 1202(c)(3)(B) during the one-year period preceding any Closing, except for purchases that are
disregarded for such purposes under Treasury Regulation Section 1.1202-2 and (iii) the Company’s aggregate gross assets, as defined by Code Section 1202(d)(2), at no time between formation and through the First Closing have
exceeded $50 million, taking into account the assets of any corporations required to be aggregated with the Company in accordance with Code Section 1202(d)(3); provided, however, that in no event shall the Company be liable to the Purchasers or
any other party for any damages arising from any subsequently proven or identified error in the Company’s determination with respect to the applicability or interpretation of Section 1202 unless such determination shall have been given by
the Company in a manner that was either grossly negligent or fraudulent. 
 2.24 Foreign Corrupt Practices Act. Neither the Company
nor any of the Company’s directors, officers, employees or agents have, directly or indirectly, made, offered, promised or authorized any payment or gift of any money or anything of value to or for the benefit of any “foreign
official” (as such term is defined in the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”)), foreign political party or official thereof or candidate for foreign political office for the purpose of
(i) influencing any official act or decision of such official, party or candidate, (ii) inducing such official, party or candidate to use his, her or its influence to affect any act or decision of a foreign governmental authority, or
(iii) securing any improper advantage, in the case of (i), (ii) and (iii) above in order to assist the Company or any of its affiliates in obtaining or retaining business for or with, or directing business to, any person. Neither the
Company nor any of its directors, officers, employees or agents have made or authorized any bribe, rebate, payoff, influence payment, kickback or other unlawful payment of funds or received or retained any funds in violation of any law, rule or
regulation. Neither the Company, or, to the Company’s knowledge, any of its officers, directors or employees are the subject of any allegation, voluntary disclosure, investigation, prosecution or other enforcement action related to the FCPA or
any other anti-corruption law. 
 2.25 Government Contracts. The Company has complied in all material respects with all applicable
laws, regulations, and provisions of each contract, subcontract and 

  
 -12- 

 
outstanding bid or proposal with any government or any instrumentality or agency thereof (“Government Contracts”). All technical data, computer software and computer software
documentation developed, delivered, or used under or in connection with such Government Contracts have been properly and sufficiently marked and protected so that no more than the minimum rights or licenses required under applicable laws,
regulations and Government Contract terms, if any, have been provided. 
 2.26 Insurance. The Company has in full force and effect
fire and casualty insurance policies with extended coverage, sufficient in amount (subject to reasonable deductions) to allow it to replace any of its properties that might be damaged or destroyed. 

2.27 Section 83(b) Elections. To the Company’s knowledge, all elections and notices under Section 83(b) of the Code have
been or will be timely filed by all individuals who have acquired unvested shares of the Common Stock. 
 3. Representations of the
Purchasers. Each of the Purchasers, severally and not jointly, hereby represents and warrants to the Company, as of each Closing, as follows: 

3.1 Authorization. The Purchaser has full power and authority to enter into and perform its obligations under the Financing Agreements
and Warrants in accordance with their terms. Any Purchaser which is a corporation, limited liability company, partnership, foundation or trust represents that it has not been organized, reorganized or recapitalized specifically for the purpose of
investing in the Company. The Financing Agreements and Warrants constitute valid and legally binding obligations of the Purchaser, enforceable against such Purchaser in accordance with their terms, subject to and limited by the Bankruptcy and
Equitable Remedies Exception. 
 3.2 Purchase Entirely for Own Account. This Agreement is made with each Purchaser in reliance in
part upon such Purchaser’s representation to the Company, which such Purchaser hereby confirms by execution of this Agreement, that the Series C Shares to be received, and the Warrants that may be received, by the Purchaser and the shares of
Common Stock into which the Series C Shares and Warrants may be converted (collectively, the “Securities”) will be acquired for investment for Purchaser’s own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that such Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, Purchaser further represents that, other than
normal duties under any partnership agreement under which Purchaser may have been formed, such Purchaser does not have any contract, undertaking, agreement, or arrangement with any person to sell, transfer, or grant participation to such person or
to any third person, with respect to any of the Securities. 
 3.3 Disclosure of Information. Purchaser has received all the
information that it considers necessary or appropriate for deciding whether to purchase the Series C Shares and Warrants. Purchaser further represents that it has had sufficient opportunity to ask questions and receive answers from the Company
regarding the terms and conditions of the offering of the Series C Shares and Warrants. The foregoing, however, does not limit or modify the 

  
 -13- 

 
representations and warranties of the Company in Section 2 of this Agreement or the right of the Purchasers to rely thereon. 

3.4 Investment Experience. Purchaser acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and
has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Securities. Purchaser also represents it has not been organized for the purpose of acquiring the
Securities. 
 3.5 Accredited Investor. Purchaser is an “accredited investor” within the meaning of SEC Rule 501(a) of
Regulation D promulgated under the Securities Act. 
 3.6 Restricted Securities. Purchaser understands that the Securities it is
purchasing are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable
regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this regard, Purchaser represents that it is familiar with SEC Rule 144, as currently in effect, and understands the
resale limitations imposed thereby and by the Securities Act. 
 3.7 No Public Market. The Purchaser understands that no public
market now exists for the Securities, and that the Company has made no assurances that a public market will ever exist for the Securities. 

3.8 Legends. The Purchaser understands that the Securities and any securities issued in respect of or exchange for the Securities may
bear one or more of the following legends: 
 (a) “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION
OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.” 
 (b)
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.” 

(c) Any legend set forth in, or required by, the other Financing Agreements or Warrants. 

(d) Any legend required by the securities laws of any state to the extent such laws are applicable to the Securities represented by the
certificate so legended. 
 4. Conditions to the Obligations of the Purchasers. The obligations of the Purchasers under this
Agreement at each Closing are subject to the fulfillment, or waiver by the Purchasers, of each of the following conditions of the Company on or before such Closing: 

  
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 4.1 Representations and Warranties. The representations and warranties of the Company
contained in this Agreement shall be true as of such Closing (or such other date as specified in Section 2) with the same effect as though such representations and warranties had been made on and as of the date of such Closing (or such
other date as specified in Section 2), except as set forth in the Disclosure Schedule delivered by the Company in connection with such Closing. 

4.2 Performance. The Company shall have performed and complied with all agreements, obligations, and conditions contained in this
Agreement that are required to be performed or complied with by the Company as of such Closing. 
 4.3 Opinion of Counsel. In the
case of the First Closing, the Purchasers shall have received an opinion from WilmerHale LLP, counsel to the Company, dated as of the First Closing, addressed to the Purchasers, and substantially in the form of Exhibit F hereto. 

4.4 Securities Law Approvals. The Company shall have received all requisite approvals, if any, of the securities authorities of each
jurisdiction in which such approval is required, and such approvals shall be in full force and effect as of such Closing. 
 4.5 Voting
Agreement. The Company, each Purchaser (other than the Purchaser relying upon this condition to excuse such Purchaser’s performance hereunder), and the requisite other stockholders of the Company named as parties thereto shall have executed
and delivered the Voting Agreement. 
 4.6 Right of First Refusal and Co-Sale Agreement. The Company, each Purchaser (other than the
Purchaser relying upon this condition to excuse such Purchaser’s performance hereunder), and the requisite other stockholders of the Company named as parties thereto shall have executed and delivered the Right of First Refusal and Co-Sale Agreement. 
 4.7 Certificates and Documents. The Company shall have delivered to counsel
to the Purchasers: 
 (a) a copy of the Restated Certificate as in effect immediately prior to the First Closing, certified by the
Secretary of State of the State of Delaware and certificates, as of the most recent practicable date, of the Secretary of State of the State of Delaware and the Commonwealth of Massachusetts as to the Company’s corporate good standing and
qualification to do business as a foreign corporation, respectively; and 
 (b) a certificate of the Secretary of the Company dated as of
such Closing, certifying as to (i) the incumbency of officers of the Company executing the Financing Agreements and Warrants and all other documents executed and delivered in connection herewith, (ii) a copy of the By-Laws of the Company,
as in effect as of such Closing, (iii) a copy of the resolutions of the Board authorizing and approving the Company’s execution, delivery, and performance of the Financing Agreements and Warrants, all matters in connection with the
Financing Agreements and Warrants, and the transactions contemplated thereby and a statement to the effect that such resolutions are in full force and (iv) a copy of the resolutions of the stockholders of the Company authorizing and approving
the filing of the Restated Certificate. 

  
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 4.8 Management Rights Letter. The Company shall execute and deliver a management rights
letter to any Purchaser so requesting, in the form reasonably satisfactory to such Purchaser(s). 
 4.9 Compliance Certificate. The
President of the Company shall deliver to the Purchasers at such Closing a certificate certifying that the conditions specified in Sections 4.1 and 4.2 have been fulfilled. 

4.10 Board of Directors. As of the First Closing, the authorized size of the Board shall be ten (10) members, and the Board shall
be comprised of Lincoln Chee Wang Jin, Bernadette Connaughton, Alan L. Crane, Steven Holtzman, Edwin M. Kania, Jr., Brian Pereira, Ram Sasisekharan and Akshay Vaishnaw, with two vacancies. 

4.11 Indemnification Agreements. The Company and each individual who was not a director of the Company prior to the First Closing but
who shall become a director of the Company effective upon the First Closing shall have executed and delivered an indemnification agreement in the form attached as Exhibit G. 

4.12 Absence of Litigation. No action, suit or proceeding shall have been instituted before any court or governmental or regulatory
body or instituted or threatened by any governmental or regulatory body, to restrain, modify or prevent the carrying out of such Closing or of the transactions contemplated hereby or by the other Financing Agreements or Warrants, or to seek damages
or a discovery order in connection with such transactions, or that has or may have, in the reasonable opinion of the Purchasers, a materially adverse effect on the assets, properties, business, operations or condition (financial or otherwise) of the
Company. 
 4.13 Other Matters. All corporate and other proceedings in connection with the transactions contemplated at such Closing
by this Agreement, and all documents and instruments incident to such transactions, shall be reasonably satisfactory in substance and form to the Purchasers, and the Purchasers shall have received all such counterpart originals or certified or other
copies of such documents as they may reasonably request. 
 5. Conditions to Obligations of the Company. The obligations of the
Company under this Agreement are subject to the fulfillment, or waiver by the Company, of each of the following conditions of the Purchasers purchasing shares at such Closing, on or before such Closing: 

5.1 Representations and Warranties. The representations and warranties of each Purchaser contained in this Agreement shall be true as
of such Closing with the same effect as though such representations and warranties had been made on and as of the date of such Closing. 

5.2 Payment of Purchase Price. Each Purchaser shall have delivered the purchase price in the amount specified with respect to such
Purchaser in Schedule 1 for all Shares purchased by such Purchaser at such Closing. 
 5.3 Absence of Litigation. No
action, suit or proceeding shall have been instituted before any court or governmental or regulatory body or instituted or threatened by any 

  
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governmental or regulatory body, to restrain, modify or prevent the carrying out of such Closing or of the transactions contemplated hereby or by the other Financing Agreements and Warrants, or
to seek damages or a discovery order in connection with such transactions, or that has or may have, in the reasonable opinion of the Company, a materially adverse effect on the assets, properties, business, operations or condition (financial or
otherwise) of the Company. 
 5.4 Other Matters. All corporate and other proceedings in connection with the transactions contemplated
at the applicable Closing by this Agreement, and all documents and instruments incident to such transactions, shall be reasonably satisfactory in substance and form to the Company and its counsel. 

6. Covenants of the Company. The Company covenants and agrees that so long as twenty percent (20%) of the shares of Preferred
Stock outstanding as of the date hereof (after giving effect to the transactions contemplated to occur at the First Closing), or shares of Common Stock issued upon conversion thereof, remain outstanding, it will perform and observe the following
covenants and provisions: 
 6.1 Financial Statements. The Company will maintain books of account in accordance with GAAP applied on
a consistent basis, keep full and complete financial records, and furnish the following reports to each holder of at least 1,000,000 shares of Preferred Stock (each, a “Preferred Investor,” and together, the “Preferred
Investors”): 
 (a) beginning with the financial statements for the fiscal year ending December 31, 2016, as soon as
practicable, but in any event within one hundred eighty (180) days after the end of the applicable fiscal year, an income statement for such fiscal year, a balance sheet of the Company, a statement of cash flows and a statement of
stockholders’ equity as of the end of such year, such year-end financial reports to be in reasonable detail, prepared in accordance with GAAP, and audited and certified by independent public accountants of nationally recognized standing
selected by the Company and approved by the Requisite Preferred Directors (as defined below); 
 (b) as soon as practicable, but in any
event within thirty (30) days after the end of each month and within forty five (45) days after the end of each of the first three quarters of each fiscal year of the Company, an unaudited income statement for such month or quarter, as
applicable, a balance sheet as of the end of such month or quarter, as applicable, and a statement of cash flows as of the end of such month or quarter, as applicable; and 

(c) such other financial information of the Company as such Preferred Investor may reasonably request, including certificates of the
principal financial officer of the Company concerning compliance with the covenants of the Company under this Section 6. 
 6.2
Operating Plan; Other Reporting. The Company will prepare and deliver to each Preferred Investor at least thirty (30) days prior to the end of each fiscal year, an annual operating plan (including a budget) prepared on a monthly basis
and, promptly after preparation, any revisions to such operating plan. In addition, the Company will promptly provide to each Preferred Investor other customary information and materials, including reports of adverse developments, management
letters, communications with stockholders or directors, press releases, and registration statements. 

  
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 6.3 Inspection. The Company shall, upon reasonable prior notice to the Company, permit
authorized representatives of the Preferred Investors to visit and inspect any of the properties of the Company including its books of account (and to make copies thereof and take extracts therefrom), and to discuss the affairs, finances, and
accounts of the Company with its officers, administrative employees, and independent accountants, all at the expense of such Preferred Investors and at such reasonable times and as often as may be reasonably requested. 

6.4 Employee Agreements. The Company shall require all its present and future employees and consultants to enter into suitable
agreements with provisions governing, among other things, the protection of confidential information, assignment of intellectual property, competition with the Company, development rights and non-solicitation of the Company’s employees and
consultants. The agreements relating to competition with the Company and non-solicitation of the Company’s employees and consultants shall be, to the extent permitted by applicable state law, for terms of not less than a period of twelve
(12) months from the date of termination of employment of any such employee or consultant with the Company. The Company shall require all employees to execute and deliver a Proprietary Information and Inventions Agreement substantially in the
form attached hereto as Exhibit E. 
 6.5 Employee Stock Options. Except as otherwise approved by the Board, including
the Requisite Preferred Directors, any stock options or restricted stock awards granted by the Company to its employees shall vest according to one of the following schedules: (a) 1/4th of the total number of shares subject to a stock option
will vest on the first anniversary of the date such option was granted and 1/48th of such number of shares will vest for each month of continuous service thereafter over the next 36 months or (b) 1/48th of the number of shares subject to a
stock option will vest ratably for each month of continuous service for 48 months. For purposes of this Agreement, the term “Requisite Preferred Directors” shall mean (i) all of the Preferred Directors at such times as there
are four (4) or fewer Preferred Directors sitting on the Board, (ii) four (4) of the Preferred Directors at such times as there are five (5) Preferred Directors sitting on the Board, and (iii) a majority of the Preferred
Directors at such times as there are six (6) or more Preferred Directors. The term “Preferred Directors” shall have the meaning ascribed thereto in the Voting Agreement. 

6.6 Reservation of Conversion Stock. The Company will, upon any increase in the number of shares of Common Stock issuable upon
conversion of the Preferred Stock or any other security convertible into Common Stock, reserve additional shares of Common Stock for issuance upon such conversion, so that the number of shares of Common Stock so reserved will be adequate in the
event of such conversion. 
 6.7 Board Meetings. The Company agrees to hold meetings of its Board at least on a quarterly basis or as
agreed by the directors, including the Requisite Preferred Directors. 
 6.8 Qualified Small Business Stock. The Company shall submit
to the Internal Revenue Service any reports that may be required under Section 1202(d)(1)(C) of the Code and the related Treasury Regulations. In addition, within a commercially reasonable time after any Preferred Investor has delivered to the
Company a written request therefor, the Company shall deliver to such Preferred Investor a written statement indicating whether, to the 

  
 -18- 

 
knowledge of the Company, such Preferred Investor’s interest in the Company constitutes “qualified small business stock” as defined in Section 1202(c) of the Code, or, at the
election of the Company, a written statement containing such factual information available to the Company as may be reasonably required by the Preferred Investor to permit the Preferred Investor or the Preferred Investor’s advisors to determine
whether the Preferred Investor’s interest in the Company constitutes “qualified small business stock” as defined in Section 1202(c) of the Code. 

7. Participation Rights. 

7.1 Definitions. 
 (a)
“New Securities” shall mean (i) any capital stock of the Company whether or not currently authorized, (ii) all Options and (iii) all Convertible Securities. For purposes of this Section 7.1,
“Option” shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire either Common Stock or Convertible Securities (as hereafter defined) and “Convertible Securities” shall mean any
evidences of indebtedness, shares (other than Common Stock or other stock issued on conversion of the Preferred Stock) or other securities, including preferred stock, directly or indirectly convertible into or exchangeable for capital stock of the
Company or other securities convertible into capital stock of the Company, but excluding Options. Notwithstanding the foregoing, the term “New Securities” shall not include the issuances or deemed issuances listed in Article Fourth,
Section 3.3(d)(i)(4)(A)-(L) of the Restated Certificate. 
 (b) “Preferred Holder” shall include, for the
purposes of this Section 7, the general partners, officers, or other affiliates of such Preferred Holder, and a Preferred Holder may apportion its Pro Rata Share (as defined in Section 7.2 below) among itself and such general
partners, officers, and other affiliates in such proportions as it deems appropriate. 
 7.2 Participation Right. So long as at least
fifteen percent (15%) of the shares of Preferred Stock outstanding on the date hereof remain outstanding (after giving effect to the transactions contemplated to occur at the First Closing), each Preferred Holder (as defined below) shall be
entitled to a right to purchase, on a pro rata basis, all or any part of New Securities which the Company may, from time to time, propose to sell and issue, subject to the terms and conditions set forth below. Such Preferred Holder’s pro rata
share (the “Pro Rata Share”) shall equal the product of (a) the New Securities being issued, multiplied by (b) a fraction, the numerator of which is the sum of (i) the number of shares of Common Stock issued or
issuable upon conversion of the Preferred Stock then held by such Preferred Holder and (ii) the number of Common Shares then held by such Preferred Holder that were sold and issued to such Preferred Holder pursuant to Section 1.2 of
that certain Amended and Restated Series B Convertible Preferred Stock Purchase Agreement, by and among the Company and certain of its stockholders, dated May 15, 2014, as amended (the “Series B Stock Purchase Agreement”), and
the denominator of which is the total number of shares of Common Stock then outstanding plus the number of shares of Common Stock issuable upon (x) conversion of then outstanding Preferred Stock; or other Convertible Securities and
(y) exercise of then outstanding Options. 
 7.3 Notice; Exercise of Right. In the event the Company intends to issue New
Securities, it shall give each Preferred Holder written notice of such intention, describing the 

  
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type of New Securities to be issued, the price thereof, and the general terms upon which the Company proposes to effect such issuance (the “Sale Notice”). Each Preferred Holder
shall have twenty (20) days from the date of any Sale Notice to agree to purchase all or part of its Pro Rata Share of such New Securities for the price and upon the general terms and conditions specified in the Sale Notice by giving written
notice to the Company stating the quantity of New Securities to be so purchased (the “Exercise Notice”); provided, however, that in the event that the transaction described in a Sale Notice involves in whole or in part
the payment of non-cash consideration, or the payment of consideration over time, the Preferred Holders shall have the right to elect, upon exercise of their rights set forth in this Section 7, to pay to the Company in full consideration
for the New Securities the market price of such securities which shall be the present cash value of the consideration described in the Sale Notice as determined by the Board in good faith. 

7.4 Overallotment. In the event any Preferred Holder fails to exercise its right to purchase its Pro Rata Share of New Securities, each
Preferred Holder who delivered an Exercise Notice for such Preferred Holder’s total Pro Rata Share of New Securities (an “Overallotment Purchaser”) shall have a right to purchase such Overallotment Purchaser’s pro rata
share of the New Securities with respect to which Preferred Holders have failed to exercise their rights hereunder (the “Remaining New Securities”). In such case, within twenty-five (25) days after the date of the Sale Notice,
the Company shall provide written notice (the “Overallotment Notice”) to each Overallotment Purchaser, which shall state the total amount of Remaining New Securities, and the pro rata portion of such Remaining New Securities which
each Overallotment Purchaser is entitled to purchase. Each Overallotment Purchaser wishing to purchase such Remaining Securities shall amend such Overallotment Purchaser’s Exercise Notice in writing within ten (10) days from the date of
the Overallotment Notice. For the purpose of this Section 7.4, an Overallotment Purchaser’s pro rata share of the Remaining New Securities shall be calculated as provided in Section 7.2, except that the denominator of
the fraction shall be the sum of the total number of shares of Common Stock issued or issuable upon conversion of shares of Preferred Stock held by all of the Overallotment Purchasers and the total number of Common Shares then held by such
Overallotment Purchaser that were sold and issued to such Overallotment Purchaser pursuant to Section 1.2 of the Series B Stock Purchase Agreement, but shall exclude shares of Common Stock issuable on conversion of other preferred stock
or other convertible securities or on exercise of options, rights, or warrants. 
 7.5 Closing. The closing of the purchase of New
Securities by the Preferred Holders exercising their rights hereunder (“Participating Purchasers”) shall take place at such location, date and time as the parties shall agree but not later than the later of (i) sixty
(60) days following the date of the Sale Notice or (ii) thirty (30) days following the date of the Overallotment Notice. At the closing, the Company shall deliver to the Participating Purchasers certificates representing all of the
New Securities to be purchased and such other agreements executed by the Company which grant any rights or privileges to the Participating Purchasers as are being granted to the other purchasers in such issuance, and in any event, at the
request of the Participating Purchasers, a duly executed certificate reasonably satisfactory to the Participating Purchasers containing a representation and warranty that, upon issuance or transfer of such securities to the Participating Purchasers
that the Participating Purchasers will be the legal and beneficial owners of such securities with good title thereto, free and clear of all mortgages, liens, charges, security interests, adverse claims, pledges, encumbrances and demands whatsoever,
and 

  
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that the Company has the absolute right to issue or transfer such securities to the Participating Purchasers without the consent or approval of any other person. At the closing, the Participating
Purchasers shall deliver to the Company (i) payment for the New Securities and (ii) such other agreements executed by the other purchasers in such issuance which include representations by such purchasers to the Company or restrict such
purchaser’s rights with respect to the New Securities, and in any event, at the request of the Company, a duly executed certificate reasonably satisfactory to the Company containing such representations and warranties of the Participating
Purchasers with respect to federal and state securities laws. The certificates representing the equity securities may contain a legend stating that they are issued subject to the registration requirements of the Securities Act and applicable state
securities laws. 
 7.6 Failure to Exercise Right. In the event the Preferred Holders fail to exercise the foregoing participation
right with respect to any New Securities within the periods specified by Sections 7.3 and 7.4 above, the Company may within one hundred and twenty (120) days after the delivery of the Sale Notice sell any or all of such New
Securities not agreed to be purchased by the Preferred Holders, at a price and upon general terms no more favorable to the purchasers thereof than specified in the Sale Notice. In the event the Company has not sold such New Securities within such
120-day period, the Company shall not thereafter issue or sell any New Securities without first offering such New Securities to the Preferred Holders in the manner provided in Section 7.3. 

7.7 Transfer of Participation Right. The participation right set forth in this Section 7 may not be assigned or
transferred, except that (i) such right is assignable by each Preferred Holder to any wholly owned subsidiary or parent of, or to any corporation or entity that is, within the meaning of the Securities Act, controlling, controlled by or under
common control with, any such Preferred Holder, (ii) such right is assignable between and among any of the Preferred Holders, (iii) such right is assignable by a Preferred Holder that is a venture capital fund to an affiliated venture
capital fund or partner or retired partner of such fund and (iv) such right is assignable to a holder of Registrable Securities (as defined below). 

8. Registration Rights. The Company covenants and agrees as follows: 

8.1 Definitions. As used in this Section 8, the following terms shall have the following meanings: 

(a) “Act” means the Securities Act of 1933, as amended. 

(b) “Form S-1” means such form under the Act as in effect on the date hereof, or any registration form under the Act
subsequently adopted by the SEC which permits the registration of securities under the Act for which no other form is authorized or prescribed. 

(c) “Form S-3” means such form under the Act as in effect on the date hereof or any registration form under the Act
subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC. 

(d) “Preferred Holder” means (i) a Purchaser and any persons or entities to whom the rights granted under this
Section 8 are transferred by the Purchaser, 

  
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(ii) permitted transferees, successors or assigns as permitted under Section 9 below, (iii) a holder of shares of Seed Preferred Stock, Series A Preferred Stock or
Series B Preferred Stock, (iv) with respect to Sections 8.2 to 8.13 inclusive (the “Applicable Sections”) only, a holder of shares of Common Stock issued upon conversion of Seed Preferred Stock, Series A
Preferred Stock or Series B Preferred Stock, (v) with respect to the Applicable Sections only, Pacific Western Bank and any registered assigns to which it transfers the rights granted under this Section 8 in accordance with
Section 9(b) hereof (the “Pacific Western Entities”), (vi) with respect to the Applicable Sections only, Oxford Finance LLC and any registered assigns to which it transfers the rights granted under this
Section 8 in accordance with Section 9(b) hereof (the “Oxford Entities”) and (vii) with respect to the Applicable Sections only, Lighthouse Capital Partners VI, L.P. and any registered assigns to which
it transfers the rights granted under this Section 8 in accordance with Section 9(b) hereof (“Lighthouse”); provided, however, that none of the Pacific Western Entities, the Oxford Entities or Lighthouse
shall be permitted to be an Initiating Holder (as hereinafter defined) under Section 8.2. 
 (e) “Holders” means
(i) a Preferred Holder, including the Pacific Western Entities, the Oxford Entities and Lighthouse for purposes of the Applicable Sections and (ii) Ram Sasisekharan, Alan L. Crane, The Crane Family Irrevocable Trust – 2002, the
Sasisekharan Family 2006 Irrevocable Trust, the Sasisekharan Parents 2006 Irrevocable Trust, the Narayanasami Parents 2006 Irrevocable Trust, S. Raguram and Mahesh Narayanasami and their Permitted Transferees (the “Founder
Holders”). 
 (f) “Immediate Family” shall mean any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, sibling, nephew, niece, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law and shall include adoptive relationships. 

(g) “Permitted Transferee” means, with respect to the Founder Holders, (i) any member or members of a Founder
Holder’s or such Founder Holder’s spouse’s Immediate Family to whom Registrable Securities are transferred; and (ii) any trust to which Registrable Securities are transferred (A) in respect of which such Founder Holder
serves as trustee, provided that the trust instrument governing such trust shall provide that such Founder Holder, as trustee, shall retain sole and exclusive control over the voting and disposition of such Registrable Securities until the
termination of this Section 8 or (B) for the benefit solely of any member or members of such Founder Holder’s or such Founder Holder’s spouse’s Immediate Family; provided, that no person or entity shall be a
Permitted Transferee unless (x) a written notice is furnished to the Company at the time of such transfer stating the name and address of the transferee and identifying the Registrable Securities with respect to which such rights are being
assigned and (y) the transferee agrees in writing to become bound by the terms and conditions of this agreement with respect to such Registrable Securities. 

(h) “1934 Act” shall mean the Securities Exchange Act of 1934, as amended. 

(i) The terms “register,” “registered,” and “registration” refer to a registration
effected by preparing and filing a registration statement or similar document in 

  
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compliance with the Act, and the declaration or ordering of effectiveness of such registration statement or document. 

(j) “Registrable Securities” means (i) the Common Stock held by the Founder Holders and their Permitted Transferees,
(ii) the Common Stock issuable or issued upon conversion of the Preferred Stock, (iii) the Common Shares issued pursuant to Section 1.2 of the Series B Stock Purchase Agreement, (iv) the Common Stock issued or issuable
upon conversion of the shares of Preferred Stock issued or issuable upon exercise of the Warrants to Purchase Stock issued by the Company to Pacific Western Bank and Oxford Finance LLC (the “Warrants”) in connection with that
certain Loan and Security Agreement, dated as of September 9, 2014, as amended, among the Company, Pacific Western Bank and Oxford Finance LLC or, at all times when the Class (as defined in the Warrants) shall be Common Stock, the shares of
Common Stock issued and issuable upon exercise or conversion of the Warrants, (v) any additional shares of Common Stock issued to Pacific Western Bank or Oxford Finance LLC in connection with the exercise of the Warrants, (vi) the Common
Stock issued or issuable upon conversion of the shares of Preferred Stock issued or issuable upon exercise of the Preferred Stock Purchase Warrants issued by the Company to Lighthouse (the “Lighthouse Warrants”) or, at all times
when the Lighthouse Warrants are exercisable for Common Stock pursuant to their terms, the shares of Common Stock issued and issuable upon exercise of the Lighthouse Warrants, (vii) the Common Stock issued or issuable upon exercise of the
Warrants, which may be issued pursuant to Section 1.2(b) of this Agreement and (viii) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right, or other security which is issued
as) a stock split, dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in (i) through (vi) above, excluding in all cases, however, any Registrable Securities sold by a person in a
transaction in which the rights under this Section 8 are not properly assigned. 
 (k) “Outstanding Registrable
Securities” shall mean the number of shares of Common Stock outstanding that are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are, Registrable Securities. 

(l) “SEC” shall mean the U.S. Securities and Exchange Commission. 

8.2 Demand Registration. 

(a) If the Company shall receive, at any time after the earlier of (i) four years after the date of this Agreement or (ii) one
hundred eighty (180) days after the effective date of the registration statement for the Company’s first underwritten public offering of its common stock under the Act (such offering, the “IPO”), a written notice from the
Preferred Holders holding at least fifty percent (50%) of the Outstanding Registrable Securities then held by Preferred Holders requesting that the Company effect a registration statement under the Act with respect to all or a part of the
Registrable Securities held by such Preferred Holder or Preferred Holders, then the Company shall: 
 (i) within ten (10) days of the
receipt thereof, give written notice of such request to all Preferred Holders, other than the Initiating Holders (as defined below) (the “Demand Notice”); and 

  
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 (ii) use its best efforts to effect as soon as practicable, and in any event within ninety
(90) days of the receipt of such request by the Initiating Holders, the registration under the Act of all Registrable Securities which the Preferred Holders request to be registered, by notice to the Company within thirty (30) days of the
mailing of the Demand Notice sent by the Company in accordance with Section 8.2(a)(i), subject to the limitations of subsections 8.2(b), 8.2(c) and 8.2(d). 

(b) If the Preferred Holders initiating the registration request hereunder (“Initiating Holders”) intend to distribute the
Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to subsection 8.2(a) and the Company shall include such information in the Demand
Notice. The underwriter will be selected by the Company and shall be reasonably acceptable to the Initiating Holders holding a majority of the Outstanding Registrable Securities requested to be included in such registration. In such event, the right
of any Preferred Holder to include Registrable Securities in such registration shall be conditioned upon such Preferred Holder’s participation in such underwriting and the inclusion of such Preferred Holder’s Registrable Securities in the
underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Preferred Holder) to the extent provided herein. All Preferred Holders proposing to distribute their securities through such underwriting
shall (together with the Company as provided in subsection (e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this
Section 8.2, if the underwriter advises the Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Initiating Holders shall so advise all Preferred Holders of
Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all Preferred Holders thereof, including the
Initiating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company owned by each Preferred Holder; provided, however, that the number of shares of Registrable Securities to be included
in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting. 
 (c)
Notwithstanding the foregoing, if the Company shall furnish to Preferred Holders requesting registration pursuant to this Section 8.2 a certificate signed by the President of the Company stating that in the good faith judgment of the
Board it would be materially detrimental to the Company and its stockholders for such registration statement to be filed or to either become effective or remain effective for as long as such registration statement otherwise would be required to
remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information
that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Act or 1934 Act, then the Company shall have the right to defer taking action with
respect to such filing for a period of not more than one hundred twenty (120) days after receipt of the request of the Initiating Holders. 

(d) In addition, the Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this
Section 8.2 after the Company has effected 

  
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two (2) registrations on Form S-1 pursuant to this Section 8.2 and each such registration statement has been declared or ordered effective and the sales of Registrable Securities
under such registration statement have closed. 
 (e) No incidental right under this Section 8.2 shall be construed to limit
any registration required under Section 8.3 or Section 8.4 herein. 
 8.3 “Piggy-Back”
Registration. 
 (a) If (but without any obligation to do so) the Company proposes to register (including for this purpose a
registration effected by the Company for stockholders other than the Holders) any of its stock or other securities under the Act in connection with the public offering of such securities solely for cash, other than (i) a registration relating
solely to the sale of securities to participants in a stock plan, (ii) a registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of the
Registrable Securities, or (iii) a registration on Form S-4 (or any successor form) relating solely to a transaction pursuant to the SEC’s Rule 145 (each of (i)-(iii), an “Excluded Registration”), the Company shall, at
such time, promptly give each Holder written notice of such registration. Upon the written request of each Holder given within twenty (20) days after the mailing of such notice by the Company in accordance with Section 11.7, the
Company shall, subject to the provisions of subsection 8.3(b), cause to be registered under the Act all of the Registrable Securities that each such Holder has requested to be registered. 

(b) In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be
required under this Section 8.3 to include any of the Holders’ securities in such underwriting unless such Holders accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or by
other persons entitled to select the underwriters), and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of securities, including
Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities to be sold (other than by the Company) that the underwriters determine in their sole discretion is compatible with the success of the
offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering;
provided, however, there shall first be excluded from such registration statement all shares of Common Stock sought to be included therein by (i) any director, consultant, officer, or employee of the Company or any subsidiary
thereof other than the Founder Holders and (ii) stockholders exercising any contractual or incidental registration rights subordinate and junior to the rights of the Preferred Holders of Registrable Securities. If after such shares are
excluded, the underwriters shall determine in their sole discretion that the number of securities which remain to be included in the offering exceeds the amount of securities to be sold that the underwriters determine is compatible with the success
of the offering, then there shall second be excluded from such registration statement all shares of Common Stock sought to be included therein by the Founder Holders. If after such additional shares are excluded, the underwriters shall determine in
their sole discretion that the number of securities which remain to be included in the offering exceeds the amount of securities to be sold that the underwriters determine is compatible 

  
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with the success of the offering, then the Registrable Securities to be included, if any, shall be apportioned pro rata among the Holders other than Founder Holders providing notice of their
desire to participate in the offering according to the total amount of securities entitled to be included therein owned by each such selling Holder or in such other proportions as shall mutually be agreed to by such Holders, provided,
however, that no exclusion of such Holders’ Registrable Securities shall be made unless all other stockholders’ securities are first excluded. For purposes of the preceding sentence concerning apportionment, for any selling Holder
which is a partnership or corporation, the partners, retired partners, and stockholders of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall
be deemed to be a single “selling Holder,” and any pro-rata reduction with respect to such “selling Holder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals
included in such “selling Holder,” as defined in this sentence. 
 (c) No incidental right under this Section 8.3
shall be construed to limit any registration required under Section 8.2 or Section 8.4 herein. 
 8.4 Form S-3
Registration. In case the Company shall receive from one or more Preferred Holders that, individually or together with such Preferred Holder’s affiliates, hold at least $10,000,000 of the Registrable Securities a written request or requests
that the Company effect a registration on Form S-3 with respect to all or a part of the Registrable Securities owned by such Preferred Holder(s), the Company agrees: 

(a) to promptly give written notice of the proposed registration (the “S-3 Notice”) to all other Preferred Holders, if any;
and 
 (b) as soon as practicable after receiving such a request, use its commercially reasonable efforts to effect such registration as
would permit or facilitate the sale and distribution of all or such portion of such Preferred Holder’s or Preferred Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable
Securities of any other Preferred Holder(s) joining in such request as are specified in a written request given within fifteen (15) days after the S-3 Notice is given by the Company; provided, however, that the Company shall not
be obligated to effect any such registration pursuant to this Section 8.4 (i) if Form S-3 is not available for such offering by the Preferred Holder(s); (ii) if the Preferred Holder(s), together with the holders of any other
securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public of less than $1,000,000; (iii) if the Company shall furnish to
the Preferred Holder(s) a certificate signed by the President of the Company stating that it would be in the good faith judgment of the underwriters materially detrimental to the Company and its stockholders for such registration statement to be
filed or to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (x) materially interfere with a significant acquisition, corporate
reorganization, or other similar transaction involving the Company; (y) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (z) render the Company unable
to comply with requirements under the Act or 1934 Act, then the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than sixty (60) days after

  
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receipt of the request of the Preferred Holder(s) under this Section 8.4; provided, however, that the Company shall not utilize this right more than once in any eighteen
month period and provided further that the Company shall not register any securities for its own account or that of any other stockholder during such sixty (60) day period (or such shorter period during which registration of the
Preferred Holders’ Registrable Securities is defered pursuant to clauses 8.4(b)(iii)(x) through 8.4(b)(iii)(y), above), other than an Excluded Registration; or (iv) if the Company has effected two (2) registrations on Form S-3 (or its
then equivalent) pursuant to this Section 8.4 within the previous 12-month period and such registrations have been declared or ordered effective and the sales of Registrable Securities under such registration statement have closed. 

(c) Registrations effected pursuant to this Section 8.4 shall not be counted as demands for registration or registrations
effected pursuant to Sections 8.2 or 8.3, respectively. 
 8.5 Obligations of the Company. Whenever required under
this Section 8 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible (but subject to providing counsel to the Holders with a reasonable opportunity to review and comment on
all documents): 
 (a) Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its best
efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred
twenty (120) days or, if earlier, until the distribution contemplated in the Registration Statement has been completed; provided, however, that (i) such 120-day period shall be extended for a period of time equal to the
period the Holder refrains from selling any securities included in such registration at the request of an underwriter of Common Stock (or other securities) of the Company and (ii) in the case of any registration of Registrable Securities on
Form S-3 which are intended to be offered on a continuous or delayed basis, such 120-day period shall be extended, if necessary, to keep the registration statement effective until all such Registrable Securities are sold or could be sold without
restriction under SEC Rule 144(b)(1)(i); provided, that SEC Rule 415, or any successor rule under the Act, permits an offering on a continuous or delayed basis; and provided further that applicable rules under the Act governing
the obligation to file a post-effective amendment permit, in lieu of filing a post-effective amendment which (x) includes any prospectus required by Section 10(a)(3) of the Act or (y) reflects facts or events representing a material
or fundamental change in the information set forth in the registration statement, the incorporation by reference of information required to be included in (x) and (y) above to be contained in periodic reports filed pursuant to
Section 13 or 15(d) of the 1934 Act in the registration statement. 
 (b) Prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all securities covered by such
registration statement in accordance with each Holder’s intended method of disposition. 

  
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 (c) Furnish to the Holders such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by the Holders. 

(d) Use its best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue
Sky laws of such jurisdictions as shall be reasonably requested by the Holders and any managing underwriter; provided, that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Act. 

(e) In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement. 

(f) Promptly notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating
thereto is required to be delivered under the Act as a result of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. 

(g) Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities
issued by the Company are then listed. 
 (h) Provide a transfer agent and registrar for all Registrable Securities registered pursuant
hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration. 

(i) Furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 8, on the
date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 8, if such securities are being sold through underwriters, copies of (i) the opinion, dated
as of such date, of the counsel representing the Company for the purposes of such registration given to the underwriters in such underwritten public offering, which opinion shall be in such form as is reasonably satisfactory to counsel to the
underwriters, and (ii) the letter dated as of such date, from the independent certified public accountants of the Company, to the underwriters in such underwritten public offering, addressed to the underwriters, which letter shall be in such
form as is reasonably satisfactory to counsel to the underwriters. 
 (j) promptly make available for inspection by the selling Holders,
any underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling

  
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Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers, directors, employees, and independent accountants to
supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate
due diligence in connection therewith. 
 (k) notify each selling Holder, promptly after the Company receives notice thereof, of the time
when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed. 

(l) after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or
supplement such registration statement or prospectus. 
 8.6 Furnish Information. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 8 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder’s Registrable Securities. 

8.7 Expenses of Demand and S-3 Registrations. The Company shall pay all expenses other than underwriting discounts and commissions
incurred in connection with registrations, filings, or qualifications pursuant to Sections 8.2 and 8.4, including (i) all registration, filing, and qualification fees (including filing fees with the SEC, fees due to the
Financial Industry Regulatory Authority and fees due for listing on any stock exchange); (ii) printers and accounting fees; (iii) fees and disbursements of counsel for the Company; and (iv) the reasonable fees and disbursements of one
counsel for the selling Preferred Holders; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Sections 8.2 or 8.4 if the registration
request is subsequently withdrawn at the request of the holders of a majority of the Registrable Securities then held by Preferred Holders to be registered (in which case all Preferred Holders participating in the aborted registration shall bear
such expenses on a pro rata basis in accordance with the number of Registrable Securities requested to be registered by such Preferred Holders), unless the holders of a majority of the Registrable Securities then held by Preferred Holders agree to
forfeit their rights to one registration under, as the case may be, Section 8.2 (demand registration) or Section 8.4 (S-3 registration); provided further, however, that if at the time of such withdrawal,
the Preferred Holders have either (i) learned of a material adverse change in the condition or business, or prospects of the Company from that known to the Preferred Holders at the time of their request or (ii) been informed by the
underwriters of such registration that more than twenty percent (20%) of the Registrable Securities requested for registration shall not be includable therein due to market factors, and in either such case the Preferred Holders have withdrawn
the request with reasonable promptness following such disclosure, then the Preferred Holders shall not be required to pay such expenses and shall retain their rights pursuant to Sections 8.2 and 8.4. 

  
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 8.8 Expenses of “Piggy-Back” Registration. The Company shall pay all expenses
incurred in connection with any registration, filing, or qualification of Registrable Securities with respect to the registrations pursuant to Section 8.3 for each Holder, including all registration, filing, and qualification fees,
printers and accounting fees relating or apportionable thereto, and the reasonable fees and disbursements of one counsel for the selling Holders selected by them, but excluding underwriting discounts and commissions relating to the Registrable
Securities. 
 8.9 Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise
delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 8. 

8.10 Indemnification. In the event any Registrable Securities are included in a registration statement under this
Section 8: 
 (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, any underwriter (as
defined in the Act) for such Holder, the members, partners, officers, directors and stockholders of each Holder, and each person (if any) who controls such Holder or underwriter within the meaning of the Act or the 1934 Act, against any losses,
claims, damages, or liabilities, joint or several, to which they may become subject under the Act, the 1934 Act, other federal or state law, or the laws of any other jurisdiction insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements, omissions, or violations (collectively a “Violation”) (i) any untrue statement or alleged untrue statement of a material fact contained in any
registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Act, the 1934 Act, any state securities law, or any rule or regulation promulgated under the Act, the 1934 Act, or any
state securities law; and the Company will pay to each such Holder, underwriter, controlling person, or other aforementioned person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending
any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 8.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action to the
extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter, controlling person,
or other aforementioned person,. 
 (b) To the extent permitted by law, each selling Holder severally and not jointly will indemnify and
hold harmless the Company, each of its directors, each of its officers, each person (if any) who controls the Company within the meaning of the Act, any underwriter, any other Holder selling securities in such registration statement, and any
controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities, joint or several to which any of the foregoing persons may become subject, under 

  
 -30- 

 
the Act, the 1934 Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each
case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will pay, as
incurred, any legal or other expenses reasonably incurred by any person intended to be indemnified pursuant to this subsection 8.10(b), in connection with investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that the indemnity agreement contained in this subsection 8.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without
the consent of the Holder, which consent shall not be unreasonably withheld; and further provided that in no event shall any indemnity under this subsection 8.10(b) exceed the proceeds from the offering received by such Holder
(net of any selling expenses paid by such Holder). 
 (c) Promptly after receipt by an indemnified party under this
Section 8.10 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 8.10,
deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by
one counsel) shall have the right to retain one separate counsel and participate in the defense, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying
party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action, if and only to the extent materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of liability to the indemnified party under this
Section 8.10, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 8.10. 

(d) If the indemnification provided for in this Section 8.10 is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any loss, liability, claim, damage, action or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such loss, liability, claim, damage, action or expense (after contribution from others) in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and of the
indemnified party, on the other, in connection with the statements, omissions or violations that resulted in such loss, liability, claim, damage, action or expense as well as any other relevant equitable considerations; provided,
however, that no contribution by any Holder, when combined with any amounts paid by such Holder pursuant to Section 8.10(b), shall exceed the proceeds from the offering received by such Holder (net of any selling expenses paid by
such Holder). The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of competent jurisdiction by 

  
 -31- 

 
reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, relates to information supplied
by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case
(x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation; and provided further that in no
event shall a Holder’s liability pursuant to this Section 8.10(d), when combined with the amounts paid or payable by such Holder pursuant to Section 8.10(b), exceed the proceeds from the offering received by such
Holder (net of any selling expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder. 

(e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control; provided, however, that the failure of the
underwriting agreement to address a provision addressed in this Agreement shall not be deemed a conflict. 
 (f) Unless otherwise
superseded by an underwriting agreement as provided in Section 8.10(e) above, the obligations of the Company and Holders under this Section 8.10 shall survive the completion of any offering of Registrable Securities in a
registration statement under this Section 8, and otherwise shall survive termination of this Agreement. 
 8.11 Reports Under
the 1934 Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or
pursuant to a registration on Form S-3, the Company agrees to use its best efforts: 
 (a) to make and keep available public information,
as those terms are understood and defined in SEC Rule 144, at all times after ninety (90) days after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public; 

(b) to take such action, including the voluntary registration of its Common Stock under Section 12 of the 1934 Act, as is necessary to
enable the Holders to utilize Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of
its securities to the general public is declared effective; 
 (c) to file with the SEC in a timely manner all reports and other documents
required of the Company under the Act and the 1934 Act; and 

  
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 (d) to furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the first registration statement filed by the
Company), the Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a
copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of
the SEC which permits the selling of any such securities without registration or pursuant to Form S-3. 
 8.12 “Market
Stand-Off” Agreement. Each Holder hereby agrees that, during a period of 180 days following the effective date of a registration statement of the Company filed under the Act relating to the IPO of the Company, or (to the extent that the
company is not an “emerging growth company” (as defined in the Jumpstart Our Business Startups Act, as amended)) such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the
publication or other distribution of research reports, and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in or policies required by FINRA Rule 2241(b)(2)(I) or NYSE Rule 472(f)(4), or any
successor provisions or amendments thereto), (such period, the “Lock-Up Period”), such Holder shall not, to the extent requested by the Company and such managing underwriter(s) (other than with the prior written consent of the
managing underwriter(s)), directly or indirectly sell, offer to sell, contract to sell (including any short sale), grant any option to purchase, or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any
securities of the Company held by it at any time during such period except Common Stock included in such registration; provided, however, that all officers and directors of the Company, Founder Holders and stockholders holding in
excess of one percent (1%) of the outstanding Common Stock of the Company (treating all Preferred Stock on an as-converted to Common Stock basis) enter into similar agreements. Any discretionary waiver or termination by the Company or the
underwriters of the restrictions described in this Section 8.12 as applied to any Holder, officer or director or stockholder holding in excess of one percent (1%) of the outstanding Common Stock of the Company (treating all
Preferred Stock on an as-converted to Common Stock basis) (the “Subject Parties”) shall apply pro rata to all Holders subject to such restrictions, based on the number of shares held by each Holder that are subject to such
restrictions, except that, notwithstanding the foregoing, the Company and the underwriters may, in their sole discretion, waive or terminate these restrictions with respect to (i) the exercise or conversion of stock options, warrants and other
convertible securities that would otherwise expire during the Lock-Up Period and (ii) up to an aggregate of 100,000 shares of Common Stock held by the Subject Parties. 

In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of a
Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period. 

Notwithstanding the foregoing, the obligations described in this Section 8.12 shall not apply to a registration relating solely to
employee benefit plans on Form S-1 or Form S-8 or 

  
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similar forms which may be promulgated in the future, or a registration relating solely to a SEC Rule 145 transaction on Form S-4 or similar forms which may be promulgated in the future. 

8.13 Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior
written consent of the Preferred Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company that (i) would allow such holder or
prospective holder to include such securities in any registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such
securities will not reduce the number of the Registrable Securities of the Holders that are included; or (ii) allow such holder or prospective holder to initiate a demand for registration of any securities held by such holder or prospective
holder; provided that this limitation shall not apply to any Additional Purchaser who becomes a party to this Agreement in accordance with Section 1.2(b). 

8.14 Termination of Registration Rights. No Holder shall be entitled to exercise any right provided for in this Section 8
following the earliest to occur of: 
 (a) when all of such Holder’s Registrable Securities have been sold; 

(b) when (i) the Company has completed its IPO and (ii) all of such Holder’s (and its affiliates’) Registrable Securities
may be sold without restriction under SEC Rule 144(b)(1)(i); and 
 (c) the fifth anniversary of the IPO. 

9. Transfers and Assignment. 

9.1 Assignment of Certain Rights.

(a) The rights granted to the Preferred Holders under Sections 7 and 8 of this Agreement may be transferred or assigned to
(i) any other Preferred Investor or any current or former general or limited partner, retired partner, member, shareholder, parent, child, spouse, trust or other affiliate of any Preferred Investor, (ii) any Permitted Transferees or
(iii) any other person or entity that acquires at least 25% of the transferor’s Registrable Securities. 
 (b) Notwithstanding
anything to the contrary in clause 9(a) above, (i) no such transfer or assignment may be made to a party that is reasonably deemed a competitor of the Company by the Board, (ii) the Company must be, within a reasonable time after such
transfer or assignment, furnished with written notice of the transfer or assignment, including the name and address of such transferee or assignee; and (iii) no such transfer or assignment may be made unless such transferee or assignee agrees
in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of Section 8.12. 

9.2 Subsequent Transfers. A transferee to whom rights are transferred or assigned pursuant to this Section 9 may not again
transfer or assign such rights to any other person or entity, other than as provided in Section 9.1 above. 

  
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 10. Confidentiality. 

10.1 Confidential Information. Each Preferred Holder and Founder Holder agrees that such Preferred Holder or Founder Holder shall keep
confidential and shall not disclose or use (other than to monitor its investment in the Company) this Agreement and all Schedules and Exhibits hereto, the Financing Agreements and Warrants, and all other documents delivered in connection with any
Closing, and also any confidential, proprietary, or secret information that it has or may obtain from the Company, unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach
of this Section 10 by such Preferred Holder), (b) is or has been independently developed or conceived by the Preferred Holder or Founder Holder without use of the Company’s confidential information, or (c) is or has been
made known or disclosed to the Preferred Holder or Founder Holder by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that a Preferred Holder or Founder
Holder may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company and negotiating
the terms thereof; (ii) to any prospective purchaser of any Registrable Securities from such Preferred Holder or Founder Holder, if such prospective purchaser agrees to be bound by the provisions of this Section 10; (iii) to
any affiliate, partner, member, stockholder, or wholly owned subsidiary of such Preferred Holder or Founder Holder in the ordinary course of business, provided that such Preferred Holder or Founder Holder informs such Person that such
information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, court order or subpoena, provided that the Preferred Holder or Founder Holder promptly
notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure. 
 10.2
Foundation. Any announcement of the investment by the Bill & Melinda Gates Foundation (the “Foundation”) in the Company by any other party, including the Company, its representatives, directors, stockholders and
agents, or any Purchaser, Preferred Investor, Preferred Holder or Founder Holder, will require the Foundation’s prior written approval. Such parties shall also obtain the Foundation’s prior written approval for any other use of the
Foundation’s name or logo in any respect; provided, however, that the Company may use the Foundation’s name for any uses that have been pre-approved in writing by the Foundation. Notwithstanding the foregoing, the
Foundation’s name and logo will not be used by any party in any manner to market, sell or otherwise promote such party, its products, services and/or other business. 

11. Miscellaneous. 
 11.1
Survival of Representations and Warranties. The warranties, representations, and covenants of the Company and the Purchasers contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and such
Closing. Notwithstanding the right of the Company and the Purchasers to fully investigate the affairs of the other party and notwithstanding any knowledge of facts determined or determinable by such party pursuant to such investigation or right of
investigation, each party has the right to rely fully upon the representations, warranties, covenants and agreements of each other party in 

  
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this Agreement or in any Schedule, Exhibit, certificate or financial statement delivered by any party pursuant hereto. 

11.2 Termination of Certain Provisions. The obligations of the Company set forth in Sections 6 and 7 shall terminate
upon the consummation of a Qualified IPO (as defined in the Restated Certificate). 
 11.3 Expenses. Except as otherwise expressly
provided in this Agreement, each of the parties will bear its own expenses in connection with the preparation of the Financing Agreements and Warrants and the consummation of the transactions contemplated thereby; provided, however, that the
Company will pay reasonable fees for a single legal counsel selected jointly by the holders of Series B Preferred Stock that are Purchasers, which counsel shall represent all such Purchasers with their due diligence review of the Company, the
negotiation and execution of the Financing Agreements and Warrants and the consummation of the transactions contemplated thereby in an amount not to exceed $50,000.00. 

11.4 Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit
of and be binding upon the respective successors and assigns of the Company and the Holders (including transferees of any shares of Preferred Stock or Warrants or any Common Stock issued upon conversion thereof, and the Permitted Transferees of the
Founder Holders with respect to their rights and obligations under Section 8 hereof). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

11.5 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the state of
Delaware without regard to its principles of conflicts of laws. 
 11.6 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed by facsimile signatures or as a pdf or similar attachment to an electronic transmission.

 11.7 Construction. A reference to a Section or Schedule shall mean a Section in or Schedule to this Agreement unless otherwise
expressly stated. The titles and headings herein are for reference purposes only and are not to be considered in construing or interpreting this Agreement. The words “include,” “includes” and “including” when used
herein shall be deemed in each case to be followed by the words “without limitation.” Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of
names and pronouns shall include the plural and vice-versa. 
 11.8 Notices. All notices, requests, consents, and other
communications under this Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if

  
 -36- 

 
sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one (1) business day after the business day of deposit with a nationally recognized overnight courier, specifying next business day delivery, with written verification of receipt. All
communications shall be sent to the respective parties as follows: 
 If to the Company: 

Visterra, Inc. 
 One Kendall
Square, Suite B3301 
 Cambridge, MA 02139 

Attn: Brian Pereira 
 Email:

 Fax: (617) 498-1073 

with a copy to: 
 Lia Der
Marderosian, Esq. 
 WilmerHale LLP 

60 State Street 
 Boston, MA
02109 
 Email: 
 Fax:
617-526-5000 
 If to the Purchasers, to their respective addresses set forth on Schedule 1 to this Agreement. 

If to the Founder Holders, to their respective addresses provided to the Company. 

Any party may change its address or facsimile number at any time upon written notice as provided in this Section. 

11.9 Brokers. The Company and the Purchasers, each severally and not jointly, (i) represent and warrant to the other parties
hereto that it has retained no finder or broker in connection with the transactions contemplated by this Agreement and (ii) shall indemnify and hold harmless the other parties from and against any and all claims, liabilities, or obligations
with respect to brokerage or finders’ fees or commissions or consulting fees in connection with the transactions contemplated by this Agreement, asserted by any person on the basis of any statement or representation alleged to have been made by
such indemnifying party. 
 11.10 Amendments and Waivers. Except as otherwise expressly set forth in this Agreement, any term of this
Agreement, including the requirement of the Company to issue the Warrants pursuant to Section 1.2(b), may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), with the written consent of the Company and the holders of more than seventy 

  
 -37- 

 
percent (70%) of the then outstanding Series C Shares being sold pursuant to this Agreement or shares of Common Stock issued upon conversion thereof; provided, however,
(i) Sections 6 and 7 may be amended, and the observance of any term of such sections may be waived, with the written consent of the Company and holders of more than seventy percent (70%) of the then outstanding shares of
Preferred Stock, with each share of Seed Preferred Stock, Series A Preferred Stock, and Series C Preferred Stock having one vote, each share of Series B Preferred Stock having 1.25 votes for purposes of such vote, or shares of Common Stock
issued upon conversion thereof, and (ii) Sections 8 and 9 may be amended, and the observance of any term of such Sections may be waived, with the written consent of the Company and the holders of more than seventy percent
(70%) of the Outstanding Registrable Securities held by Preferred Holders entitled to rights, or subject to obligations, under such subsection, in each case, either generally or in a particular instance and either retroactively or
prospectively. Any amendment, termination, or waiver effected in accordance with this Section 11.10 shall be binding on all parties hereto, regardless of whether any such party has consented thereto. No waivers of or exceptions to any
term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition, or provision. 

11.11 Severability. If one or more provisions of this Agreement are held to be invalid, illegal or unenforceable under applicable law,
it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be invalid, illegal or unenforceable only to the extent of such
invalidity, illegality or limitation on enforceability without affecting the remaining provisions of this Agreement, or the validity, legality or enforceability of such provision in any other jurisdiction. 

11.12 Aggregation of Stock. All shares of Registrable Securities, Preferred Stock or Common Stock held or acquired by Purchasers or
Holders shall be aggregated together with the Registrable Securities, Preferred Stock or Common Stock held or acquired by any entity with which such Purchaser or Holder is affiliated for the purpose of determining the availability of any rights
under this Agreement. 
 11.13 Entire Agreement. This Agreement and the documents referred to herein constitute the entire agreement
among the parties relating to the subject matter set forth herein and therein, and supersede any other agreement, written or oral, among the parties relating to such subject matter, provided that Section 6 through 11 will be
deemed to amend Sections 6 through 11 of the Series B Stock Purchase Agreement. No party shall be liable or bound to any other party in any manner relating to the subject matter set forth herein or therein by any warranties, representations, or
covenants except as specifically set forth herein or therein. 
 11.14 Delays or Omissions. No delay or omission to exercise any
right, power or remedy accruing to any party upon any breach or default of another party under this Agreement shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any holder of any breach or 

  
 -38- 

 
default under this Agreement, or any waiver on the part of any holder of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party shall be cumulative and not alternative. 

[Remainder of page intentionally left blank.] 

  
 -39- 

 IN WITNESS WHEREOF, the parties have executed this Series C Convertible Preferred Stock and
Warrant Purchase Agreement as of the date first written above. 
  

					
	VISTERRA, INC.
		
	By:	 	 /s/ Brian Pereira

		 	Name:	 	Brian Pereira
		 	Title:	 	President and Chief Executive Officer

 PURCHASERS: 
  

											
	MERCK SHARP & DOHME CORP.	 		 	
				
	By:	 	 /s/ Reza Halse
	 		 	
		 	Name:	 	Reza Halse	 		 	
		 	Title:	 	Partner, MRLV	 		 	
			
	POLARIS VENTURE PARTNERS	 		 	POLARIS VENTURE PARTNERS V, L.P.
	FOUNDERS’ FUND V, L.P.	 		 	
			
	By: POLARIS VENTURE MANAGEMENT	 		 	By: POLARIS VENTURE MANAGEMENT
	CO. V, L.L.C.	 		 	CO. V, L.L.C.
	Its: General Partner	 		 	Its: General Partner
					
	By:	 	 /s/ William Bilodeau
	 		 	By:	 	 /s/ William Bilodeau

	Name:	 	William Bilodeau	 		 	Name:	 	William Bilodeau
	Title:	 	Attorney-in-fact	 		 	Title:	 	Attorney-in-fact
			
	POLARIS VENTURE PARTNERS SPECIAL	 		 	POLARIS VENTURE PARTNERS
	FOUNDERS’ FUND V, L.P.	 		 	ENTREPRENEURS’ FUND V, L.P.
			
	By: POLARIS VENTURE MANAGEMENT	 		 	By: POLARIS VENTURE MANAGEMENT
	CO. V, L.L.C. its General Partner	 		 	CO. V, L.L.C. its General Partner
					
	By:	 	 /s/ William Bilodeau
	 		 	By:	 	 /s/ William Bilodeau

	Name:	 	William Bilodeau	 		 	Name:	 	William Bilodeau
	Title:	 	Attorney-in-fact	 		 	Title:	 	Attorney-in-fact

  
 [Signature Page to
Series C Convertible Preferred Stock and Warrant Purchase Agreement] 

			
	PURCHASERS (CONT.):
	
	FLAGSHIP VENTURES FUND IV, L.P.
	
	By: FLAGSHIP VENTURES FUND IV GENERAL PARTNER L.L.C.
	Its: General Partner
		
	By:	 	 /s/ Edwin M. Kania, Jr.

	Name:	 	Edwin M. Kania, Jr.
	Title:	 	Manager
	
	FLAGSHIP VENTURES FUND IV-Rx, L.P.
	
	By: FLAGSHIP VENTURES FUND IV GENERAL PARTNER L.L.C.
	Its: General Partner
		
	By:	 	 /s/ Edwin M. Kania, Jr.

	Name:	 	Edwin M. Kania, Jr.
	Title:	 	Manager
	
	VERTEX GLOBAL HEALTHCARE FUND I PTE. LTD.
		
	By:	 	 /s/ Chua Kee Lock

	Name:	 	Chua Kee Lock
	Title:	 	Director

  
 [Signature Page to
Series C Convertible Preferred Stock and Warrant Purchase Agreement] 

			
	PURCHASERS (CONT.):
	
	CYCAD GROUP, LLC,
a California limited liability company
		
	By:	 	 /s/ K. Leonard Judson

	Name:	 	K. Leonard Judson
	Title:	 	President and Managing Director
	
	ALEXANDRIA REAL ESTATE EQUITIES, INC.
a Maryland corporation, managing member
		
	By:	 	 /s/ Dean A. Shigenaga

	Name:	 	Dean A. Shigenaga
	Title:	 	Executive Vice President
Chief Financial Officer
	
	OMEGA CAMBRIDGE SPV, L.P.
	By: Omega Cambridge SPV GP, LLC
	Its: General Partner
		
	By:	 	 /s/ Richard Lim

	Name:	 	Richard Lim
	Title:	 	Manager
	
	CTI LIFE SCIENCES
		
	By:	 	 /s/ Ken Pastor

	Name:	 	Ken Pastor
	Title:	 	General Partner

  
 [Signature Page to
Series C Convertible Preferred Stock and Warrant Purchase Agreement] 

			
	PURCHASERS (CONT.):
	
	WEIDENBRUCH FAMILY TRUST DATED 11/24/2009
		
	By:	 	 /s/ John Weidenbruch

	Name:	 	John Weidenbruch
	Title:	 	Trustee
	
	 /s/ Alan Crane

	Alan Crane
	
	 /s/ James Delaney

	James Delaney

  
 [Signature Page to
Series C Convertible Preferred Stock and Warrant Purchase Agreement] 

			
	ACCEPTED AND AGREED TO AS TO
	THE PROVISIONS OF SECTIONS 6
	THROUGH 11:
	
	LUX VENTURES II, L.P.
	
	By: Lux Venture Partners II, L.P.
	Its: General Partner
	By: Lux Venture Associates II, LLC
	Its: General Partner
	By: Lux Capital Management, LLC
	Its: Sole Member
		
	By:	 	 /s/ Peter Hebert

	Name:	 	Peter Hebert
	Title:	 	Managing Director
	
	LUX VENTURES II SIDECAR, L.P.
	
	By: Lux Venture Partners II, L.P.
	Its: General Partner
	By: Lux Venture Associates II, LLC
	Its: General Partner
	By: Lux Capital Management, LLC
	Its: Sole Member
		
	By:	 	 /s/ Peter Hebert

	Name:	 	Peter Hebert
	Title:	 	Managing Director

  
 [Signature Page to
Series C Convertible Preferred Stock and Warrant Purchase Agreement] 

			
	ACCEPTED AND AGREED TO AS TO
	THE PROVISIONS OF SECTIONS 6
	THROUGH 11:
	
	BILL & MELINDA GATES FOUNDATION
		
	By:	 	 /s/ Andrew Farnum

	Name:	 	Andrew Farnum
	Title:	 	Director, Program-Related Investments

  
 [Signature Page to
Series C Convertible Preferred Stock and Warrant Purchase Agreement] 

			
	ACCEPTED AND AGREED TO AS TO
	THE PROVISIONS OF SECTIONS 6
	THROUGH 11:
	
	FLAGSHIP VENTURES FUND 2007, L.P.
	
	By: FLAGSHIP VENTURES 2007 GENERAL
	PARTNER L.L.C.
	Its: General Partner
		
	By:	 	 /s/ Edwin M. Kania, Jr.

	Name:	 	Edwin M. Kania, Jr.
	Title:	 	Manager

  
 [Signature Page to
Series C Convertible Preferred Stock and Warrant Purchase Agreement] 

			
	ACCEPTED AND AGREED TO AS TO
	THE PROVISIONS OF SECTIONS 6
	THROUGH 11:
	
	 /s/ Ram Sasisekharan

	Ram Sasisekharan
	
	The Crane Family Irrevocable Trust – 2002
		
	By:	 	 /s/ Howard R. Crane

	Name:	 	Howard R. Crane
	Title:	 	Trustee
	
	Sasisekharan Family 2006 Irrevocable Trust
		
	By:	 	 /s/ S. Raguram

	Name:	 	S. Raguram
	Title:	 	Trustee
	
	Sasisekharan Parents 2006 Irrevocable Trust
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Narayanasami Parents 2006 Irrevocable Trust
		
	By:	 	 /s/ S. Raguram

	Name:	 	S. Raguram
	Title:	 	Trustee
	
	 /s/ S. Raguram

	S. Raguram

  
 [Signature Page to
Series C Convertible Preferred Stock and Warrant Purchase Agreement] 

 VISTERRA, INC. 

Counterpart Signature Page 

to 
 Fifth Amended and
Restated Voting Agreement 
 Fifth Amended and Restated Right of First Refusal and Co-Sale Agreement 

By executing and delivering this signature page, the undersigned Purchaser hereby joins in, becomes a party to and agrees to be bound by the
terms and conditions of: 
 (i) that certain Fifth Amended and Restated Voting Agreement, dated as of June 29, 2016, and as may be
further amended and/or restated from time to time, by and among the Company and the Stockholders named therein (the “Voting Agreement”) as an “Investor” and “Stockholder” thereunder; and 

(ii) that certain Fifth Amended and Restated Right of First Refusal and Co-Sale Agreement, dated as of June 29, 2016, and as may be
further amended and/or restated from time to time, by and among the Company and the Stockholders named therein (the “Right of First Refusal and Co-Sale Agreement”) as an “Investor” thereunder. 

The undersigned Purchaser hereby authorizes this signature page to be attached to the Voting Agreement and the Right of First Refusal and
Co-Sale Agreement or counterparts thereof. 
  

									
	AGREED TO AND ACCEPTED:	 		 	PURCHASER:
			
	VISTERRA, INC.	 		 	[Name]
					
	By:	 	  
	 		 	By:	 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	
			
	Date:              , 2016	 		 	Date:              , 2016

 SCHEDULE 1 

PURCHASERS 
  

									
	 Name and Contact

Information
	 	Number of Series C
Shares	 	 	Purchase Price for
Series C Shares and
Warrants	 
	 Merck Sharp & Dohme Corp.

One Merck Drive

P.O. Box 100

Whitehouse Station, NJ 08889

Attn: Office of the Secretary

Email:
	 	 	3,448,276	  	 	$	5,000,000.20	  
			
	 Vertex Global Healthcare Fund
I Pte. Ltd.

250 North Bridge Road

#05-01 Raffles City Tower

Singapore 179101

Email:
	 	 	3,448,276	  	 	$	5,000,000.20	  
			
	 Polaris Venture Partners V, L.P.

Bay Colony Corporate Center

1000 Winter Street, Suite 3350

Waltham, MA 02457

Attention: 

Email: 
	 	 	2,329,151	  	 	$	3,377,268.95	  
			
	 Polaris Venture Partners
Entrepreneurs’ Fund V, L.P.

Bay Colony Corporate Center

1000 Winter Street, Suite 3350

Waltham, MA 02457

Attention: 

Email: 
	 	 	45,395	  	 	$	65,822.75	  

									
	 Polaris Venture Partners
 Founders’ Fund V,
L.P.
 Bay Colony Corporate Center

1000 Winter Street, Suite 3350

Waltham, MA 02457

Attention: 

Email: 
	  	 	15,955	  	  	$	23,134.75	  
			
	 Polaris Venture Partners Special
 Founders’
Fund V, L.P.
 Bay Colony Corporate Center

1000 Winter Street, Suite 3350

Waltham, MA 02457

Attention: 

Email: 
	  	 	23,292	  	  	$	33,773.40	  
			
	 Flagship Ventures Fund IV, L.P.

One Memorial Drive

7th Floor

Cambridge, MA 02457

Email: 
	  	 	1,931,034	  	  	$	2,799,999.30	  
			
	 Flagship Ventures Fund IV-Rx, L.P.

One Memorial Drive

7th Floor

Cambridge, MA 02457

Email: 
	  	 	482,759	  	  	$	700,000.55	  
			
	 CTI Life Sciences

1 Place Ville-Marie, Bureau 1050

Montréal (Québec)

H3B 4S6
	  	 	1,379,310	  	  	$	1,999,999.50	  

									
	 Cycad Group, LLC

1270 Coast Village Circle,

Suite 100

Santa Barbara, CA 93108

Attn: 
	  	 	1,034,483	  	  	$	1,500,000.35	  
			
	 Omega Cambridge SPV, L.P.

USA Credit Suisse Securities

(USA), LLC

1 Federal Street, 36th Floor

Boston, MA 02110

Attention: 

Email:
	  	 	689,655	  	  	$	999,999.75	  
			
	 Alexandria Equities

385 E. Colorado Boulevard,

Suite 299

Pasadena, CA 91101

Attention: 

Email:
	  	 	344,828	  	  	$	500,000.60	  
			
	 Alan Crane

Email: 
	  	 	344,828	  	  	$	500,000.60	  
			
	 Weidenbruch Family Trust

Dated 11/24/2009

Email: 
	  	 	137,931	  	  	$	199,999.95	  
			
	 James Delaney

Email: 
	  	 	275,862	  	  	$	399,999.90	  
			
	 TOTAL
	  	 	15,931,035	  	  	$	23,100,000.75

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